DALLAS–(BUSINESS WIRE)–EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced the commencement of a cash tender offer (the “Tender Offer”) for EXCO’s outstanding 7.500% Senior Notes due 2018 (the “2018 Notes”) and EXCO’s outstanding 8.500% Senior Notes due 2022 (the “2022 Notes” and together with the 2018 Notes, the “Notes”). The combined amount of 2018 Notes and 2022 Notes tendered is subject to a cap of $40 million (the “Maximum Tender Cap”) on the aggregate price paid for both series of Notes combined, excluding accrued interest and the Consent Payment (as defined below). EXCO’s credit agreement (the “Revolving Credit Facility”) only permits repurchases of the Notes to the extent EXCO maintains a minimum liquidity (equal to available commitments under the Revolving Credit Facility plus unrestricted cash) of at least $150 million. The Maximum Tender Cap is based on an amount calculated by EXCO to comply with such limitations. In conjunction with the Tender Offer, EXCO is soliciting consents (“Consents”) from registered holders (“Holders”) of the 2022 Notes (the “Consent Solicitation”) to amend certain terms of the indenture governing the 2022 Notes (the “2022 Notes Indenture”).

read more