Exco targeting March 1 to launch $1.5 billion revolver

By Sara Rosenberg

New York, Feb. 7 - Exco Resources Inc. is now targeting to hold a bank meeting for its proposed $1.5 billion revolving credit facility on or around March 1, a company spokesman told Prospect News on Wednesday.

JPMorgan is the lead bank on the deal.

Pricing on the revolver will range from Libor plus 100 to 175 basis points, depending on how much is drawn. The initial rate will likely be Libor plus 150 bps, based on the company's current utilization expectations, the spokesman said.

The new revolver will replace the company's existing amended and restated revolver, and help fund two acquisition agreements.

First, the company is buying producing oil and gas properties, acreage and other assets in the Vernon and Ansley Fields located in Jackson Parish, La., from Anadarko Petroleum Corp. for $1.6 billion in cash.

Second, the company is buying producing oil and natural gas properties, acreage and other assets in multiple fields located in the Mid-Continent, South Texas and Gulf Coast areas of Oklahoma and Texas from Anadarko for $860 million in cash.

Most recently, Exco was planning on launching its new revolver around mid-February, but with the second acquisition agreement, timing got pushed out a bit.

A commitment for a $1.1 billion bridge loan has been obtained by the company as additional financing for the transactions, the spokesman added.

Exco is Dallas-based independent energy company.

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