EXCO Resources to tender for $450 million 7¼% notes due 2011 under planned equity buyout

By Jennifer Chiou

New York, Aug. 25 - EXCO Resources, Inc. said it will be required to offer to repurchase all $450 million of its 7¼% senior notes due 2011 at 101% plus accrued interest as part of the proposed equity buyout of its parent company.

Because a change of control will occur, the company will be obligated to buy back the securities upon the closing of the equity buyout of all shares of parent company EXCO Holdings Inc. by EXCO Holdings II, Inc.

EXCO Holdings' board approved the proposed terms of the buyout, which is subject to approval from the company's shareholders. If the transaction is completed, EXCO Resources will become a wholly owned subsidiary of EXCO Holdings II.

The equity buyout is expected to close in the fourth quarter.

Dallas-based EXCO is an oil and natural gas acquisition, exploration and production company.

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