Moody's rates EXCO add-on B2

Moody's Investors Service said it assigned a B2 rating to EXCO Resources Inc.'s $100 million senior unsecured add-on notes due 2011 with a stable outlook.

Proceeds will repay roughly all of EXCO's senior secured bank debt, leaving a fully-undrawn pro forma $200 million borrowing base.

Moody's said the transaction is debt-neutral in terms of total debt but has the positive impact of extending the maturity on $100 million of debt and fixing the associated interest at attractive long-term levels, and has the negative impact of embedding higher levels of permanent debt and a higher unit interest burden on current pro-forma production.

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