Dallas-based E&P company Exco Resources Inc. (NYSE: XCO) has closed its underwritten offering of $750 million aggregate principal amount of 7.500% senior notes due 2018, which were issued at 98.53% of par value. Exco received proceeds of approximately $724.4 million from the offering, after deducting discounts to the underwriters and estimated offering fees and expenses.
With a portion of the net proceeds from the offering, Exco commenced the redemption of all $444.7 million in aggregate principal amount of its outstanding 7¼% senior notes due 2011. The redemption is expected to be completed on Oct. 15. Exco used the remaining net proceeds to pay a portion of the outstanding balance under its credit agreement.
J.P. Morgan Securities LLC, Banc of America Securities LLC, BNP Paribas Securities Corp., RBC Capital Markets Corp. and Wells Fargo Securities LLC are joint book-running managers.
Exco has principal oil and gas operations in East Texas, North Louisiana, Appalachia and West Texas.
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