Exco pockets $390 million from convertible preferreds deal; Health Benefits Direct secures $11.25 million

By Sheri Kasprzak

New York, March 30 - After a substantial gain for oil on Thursday, Exco Resources, Inc. closed its previously announced private placement of 6% convertible preferred stock for $390 million. The company also sold $1.61 billion in 11% hybrid preferred stock that is not immediately convertible.

The company's stock gained 12 cents on Friday to settle at $16.58 (Nasdaq: XCO) after completion of the deal was announced in the afternoon.

The 6% preferreds are convertible at $20.00 each, a 10.5% premium to the company's $18.10 closing stock price on Feb. 14, the pricing date.

The company also sold $1.61 billion in 11% hybrid preferreds that may become convertible upon shareholder approval.

Proceeds will be used for the acquisition of oil and natural gas properties in the Vernon and Ansley fields in Louisiana from Anadarko Petroleum Corp. The rest will be used to repay outstanding debt of subsidiary Exco Partners Operating Partners, LP.

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

The Exco placement wrapped up as oil prices closed down 16 cents to end the week at $65.87 per barrel after settling close to $66.00 per barrel on Thursday following a gain of more than $2.00.

The downward move in oil prices shouldn't be enough to impact offerings, especially north of the border in Canada, according to one market source focused on natural resources.

"It's a slight move and oil has been trending upward," he said. "I think if an oil company wanted to price a deal now, this shouldn't stop them."

Health Benefits to raise $11.25 million

Elsewhere in the market on Friday, Health Benefits Direct Corp. said it intends to close an $11.25 million private placement of 5 million units.

The units, priced at $2.25 each, include one share and one half-share warrant. Each whole warrant is exercisable at $3.00 for five years.

Oppenheimer & Co., Inc. was the lead agent for the deal.

Proceeds will be used for working capital.

On Friday, the company's stock gained 10 cents, or 3.7%, to end at $2.80 (OTCBB: HBDT).

Based in Radnor, Pa., Health Benefits provides health and life insurance products to individuals.

Corcept raises $9 million

Moving to the biopharmaceutical sector, Corcept Therapeutics Inc. settled a $9 million private placement with a group of institutional and accredited investors.

The offering sent the company's stock up 26.76%, or 19 cents, to close at $0.90 (Nasdaq: CORT).

The investors bought 9 million shares.

The investor group includes Paperboy Ventures LLC; Sutter Hill Ventures; Alta Partners LLP; members of its board of directors, including Joseph C. Cook Jr., James A. Harper, David L. Mahoney, Alan F. Schatzberg and James N. Wilson; Black Point Group, LLP; Vaughn Bryson; and Daniel Bradbury.

Proceeds will be used for work on the company's phase 3 clinical trial of Corlux to treat psychotic features of psychotic major depression.

Corcept, headquartered in Menlo Park, Calif., develops treatments for severe psychiatric and neurological disorders.

InRob closes deal

In the tech sector, InRob Tech Ltd. closed a $3 million offering of two-year convertible notes.

The 8% notes are convertible into common shares at $0.25 each.

The company may prepay the notes at a 20% premium to the principal plus interest.

The investors also received class A warrants for 6 million shares, exercisable at $0.40 each for five years and class B warrants for 6 million shares, exercisable at $0.50 each for five years.

On Friday, the stock gave up a penny to close at $0.25 (OTCBB: IRBL).

Based in Las Vegas, InRob develops wireless technologies for unmanned ground vehicle robots.

NexrWave gains penny

In secondary market news connected to the tech sector, NextWave Wireless Inc. saw its stock climb by a penny Friday after closing a $355 million offering of convertible preferred stock on Thursday.

The stock closed up 1 cent Friday to end at $10.00, but lost the penny in after-hours trading (Nasdaq: WAVE). On Thursday, the company's stock lost a penny to end at $9.99.

In the placement, the company sold preferred at $1,000 each. The preferreds are convertible $11.05 each, a 10.5% premium to the company's $10.00 closing stock price from Wednesday.

UBS was the placement agent.

Proceeds will be used for the development of new wireless technologies, the expansion of the company's business and for future strategic acquisitions.

NextWave, based in San Diego, develops wireless broadband products and technologies for mobile device and network manufacturers.

Idaho General's stock edges up

In other secondary market news, Idaho General Mines, Inc. saw its stock climb slightly on Friday after announcing a $24.99 million offering of units on Thursday.

The stock gained 4 cents to settle at $4.34, putting on another penny in after-hours trading (Amex: GMO). The stock closed up 17 cents Thursday at $4.30.

Idaho General plans to sell units of one share and one half-share warrant at $3.40 each.

Investors include Sprott Asset Management Inc. on behalf of affiliates Coghill Capital Management, LLC and Huizenga Capital Management, LLC.

Proceeds will be used for permitting and the development of the company's Hall-Tonopah molybdenum project. The rest will be used for general corporate purposes.

Idaho General is a Spokane, Wash.-based mineral exploration company.

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