New Issue: Exco Resources upsized $350 million seven-year notes yield 7¼%

By Paul A. Harris

St. Louis, Jan. 14 - Exco Resources priced an upsized $350 million of seven-year senior notes (B2/B) Wednesday at par to yield 7¼%, or 376 basis points over Treasuries, market sources said.

The issue, which matures Jan. 15, 2011, was increased from $300 million.

Price talk was 7½%-7¾%.

Credit Suisse First Boston ran the books on the Rule 144A deal. Banc One Capital Markets was joint lead manager. The co-managers were Banc of America Securities, BNP Paribas, Comerica Securities, Fleet Securities, Scotia Capital and TD Securities.

The Dallas-based oil and gas exploration and production company plans to use proceeds to fund the acquisition of Nuon Energy & Water.

Issuer:	Exco Resources
Amount:	$350 million (from $300 million)
Maturity:	Jan. 15, 2011
Security description:	Senior notes
Bookrunner:	Credit Suisse First Boston
Joint lead manager:	Banc One Capital Markets
Co-managers:	Banc of America Securities, BNP Paribas, Comerica Securities, Fleet Securities, Scotia Capital, TD Securities
Coupon:	7¼%
Price:	Par
Yield:	7¼%
Spread:	376 basis points
Call features:	Callable after Jan. 15, 2007 at 104.438, 103.625, 101.813, par on Jan. 15, 2010 and thereafter
Equity clawback:	Until Jan. 15, 2007 for 35% at 107.25
Settlement date:	Jan. 20
Ratings:	Moody's: B2
	Standard & Poor's: B
Price talk:	7½%-7¾%

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