Published on 9/10/2010 in the Prospect News High Yield Daily.
New Issue: EXCO Resources prices $750 million 7½% eight-year notes to yield 7¾%
By Paul A. Harris
St. Louis, Sept. 10 - EXCO Resources, Inc. priced a $750 million issue of 7½% eight-year senior notes (B3/B/) at 98.53 to yield 7¾% on Friday, according to a prospectus filed with the Securities and Exchange Commission.
The yield printed at the wide end of the 7½% to 7¾% price talk, according to market sources.
J.P. Morgan Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBC Capital Markets Corp. and Wells Fargo Securities were the joint bookrunners.
Senior co-managers were Barclays Capital Inc., BMO Capital Markets, Credit Agricole CIB, Lloyds TSB Bank, RBS Securities Inc., Scotia Capital and UBS Investment Bank.
Co-managers were Citigroup Global Markets Inc., Comerica Securities, Daiwa Capital Markets, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA), Natixis Bleichroeder and U.S. Bancorp Investments.
Proceeds will be used to redeem all $444.7 million outstanding 7¼% senior notes due 2011 and to pay down a portion of the outstanding balance under EXCO's credit agreement.
EXCO is a Dallas-based oil and natural gas exploration, exploitation, development and production company, with principal operations in East Texas, North Louisiana, Appalachia and West Texas.
| Issuer: | EXCO Resources, Inc.
|
| Face amount: | $750 million
|
| Proceeds: | $738,975,000
|
| Maturity: | Sept. 15, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities Inc., Bank of America Merrill Lynch, BNP Paribas Securities Corp., RBC Capital Markets Corp., Wells Fargo Securities
|
| Senior co-managers: | Barclays Capital Inc., BMO Capital Markets, Credit Agricole CIB, Lloyds TSB Bank, RBS Securities Inc., Scotia Capital, UBS Investment Bank
|
| Co-managers: | Citigroup Global Markets Inc., Comerica Securities, Daiwa Capital Markets, Deutsche Bank Securities Inc., KeyBanc Capital Markets Inc., Mitsubishi UFJ Securities (USA), Natixis Bleichroeder, U.S. Bancorp Investments
|
| Coupon: | 7½%
|
| Price: | 98.53
|
| Yield: | 7¾%
|
| Spread: | 535 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until to Sept. 15, 2014, then callable at 103.75, 101.875, par on and after Sept. 15, 2016
|
| Equity clawback: | 35% at 107.50 until Sept. 15, 2013
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 10
|
| Settlement date: | Sept. 15
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | SEC registered
|
| Price talk: | 7½% to 7¾%
|
| Marketing: | Brief roadshow
|
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