EXCO 7½% notes see 20-point gain on tender results; SunPower under pressure

By Stephanie N. Rotondo

Seattle, Aug. 10 – EXCO Resources Inc. was the day’s most notable distressed name, not in terms of volume, but in terms of price moves.

The Dallas-based oil and gas company released the early tender results for a previously announced discounted offer for its 8½% notes due 2022 and its 7½% notes due 2018. As of the early deadline – 5 p.m. ET on Aug. 9 – 68.3% of the 8½% notes were validly tendered, while only 17.84% of the 7½% notes had been turned over.

The company said that the results from the 8½% notes resulted in the offer being oversubscribed and that it would accept the notes on a prorated basis.

However, none of the 7½% notes were accepted and no more 8½% notes would be taken in.

As a result, the 7½% notes experienced a sizeable pop for the day.

A trader placed the bonds at 47 5/8, calling that up 20 points from the last trades of size about two months ago.

According to TRACE data, the last round-lots occurred on June 1, straddling 29.

Holders of the 8½% notes that participated in the tender will receive $400 per each $1,000 of notes, including a $45 early tender premium.

Elsewhere in the oil and gas space, California Resources Corp.’s 8% second-lien notes due 2022 managed to move up a bit, despite oil prices retreating below $42 a barrel yet again.

A trader called the paper up over half a point at 61 7/8.

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