New Issue: EXCO sells upsized $500 million eight-year notes at par to yield 8½%

By Paul A. Harris

Portland, Ore., April 11 - EXCO Resources, Inc. priced an upsized $500 million issue of eight-year senior notes (B3/CCC+/) at par to yield 8½% on Friday, according to a market source.

The deal was upsized from $400 million.

The yield printed 25 basis points higher than the wide end of the 8% to 8¼% yield talk.

J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch and BMO Capital Markets were the joint bookrunners.

The Dallas-based oil and gas company plans to use the proceeds to repay a $297.8 million term loan and a portion of a revolver used to fund the acquisition of the Chesapeake Properties in July 2013 and for general corporate and working capital purposes.

Issuer:	EXCO Resources, Inc.
Amount:	$500 million, increased from $400 million
Maturity:	April 15, 2022
Securities:	Senior notes
Bookrunners:	J.P. Morgan Securities LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, BMO Capital Markets
Senior co-managers:	Credit Suisse Securities (USA) LLC, ING, Natixis Securities, UBS Investment Bank
Co-managers:	Capital One Securities, CIT Capital Securities, Deutsche Bank Securities Inc., Goldman Sachs & Co.
Coupon:	8½%
Price:	Par
Yield:	8½%
Spread:	611 bps
Price talk:	8% to 8¼%
First call:	April 15, 2017 at 106.375
Equity clawback:	35% at 108.5 until April 15, 2017
Trade date:	April 11
Settlement date:	April 16
Ratings:	Moody's: B3
	Standard & Poor's: CCC+
Distribution:	SEC registered
Marketing:	Roadshow

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