Exco $1.5 billion credit facility retail launch expected post-Labor Day

By Sara Rosenberg

New York, July 26 - Exco Resources Inc. anticipates that a general syndication bank meeting for its proposed $1.5 billion credit facility will likely occur in the early September timeframe, after the Labor Day holiday, a company spokesman told Prospect News on Wednesday.

The transaction is being launched to senior managing agents on Thursday.

JPMorgan is the lead bank on the deal.

The facility consists of a $750 million five-year term loan B and a $750 million four-year revolver.

Price talk on the term loan B is still to be determined, while price talk on the revolver is anticipated to range from Libor plus 100 to 175 basis points, depending on use, the spokesman said.

The credit facility is being borrowed by a wholly owned unrestricted subsidiary of Exco to fund the acquisition of Winchester Energy Company, Ltd. from Progress Energy, Inc. for $1.2 billion in cash, subject to purchase price adjustments.

Exco's existing amended and restated revolving credit facility will remain in place following this transaction.

The acquisition is expected to close on Oct. 2, subject to customary conditions to closing and governmental clearance.

Exco is Dallas-based independent energy company.

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