Exco Resources expected to issue $300 million of notes to fund Nuon acquisition

By Paul A. Harris

St. Louis, Jan. 6 - Exco Resources Inc. is expected to issue $300 million of senior notes due 2011 to help finance its acquisition of Nuon Energy & Water, according to information obtained from market sources and from Exco's recent filings with the Securities and Exchange Commission.

The deal is expected to surface during the Jan. 5 week, market sources said.

Credit Suisse First Boston is expected to emerge as bookrunner for the Rule 144A deal with Banc One Capital Markets as joint lead manager.

The notes are expected to come with three years of call protection.

Exco plans to acquire Nuon Energy & Water for about $184 million.

Cerberus Capital Management LP owns 100% of the issued and outstanding equity securities of Exco Acquisition LLC, which in turn owns about 60% of the Class A common stock of Exco Holdings.

Exco, a Dallas-based oil and gas exploration and production company, declined to comment on the deal when contacted Tuesday by Prospect News.

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