EXCO Resources gets interim access to $250 million in DIP financing

By Caroline Salls

Pittsburgh, Jan. 19 – EXCO Resources, Inc. received court approval to access $250 million in debtor-in-possessing financing on an interim basis, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.

A further interim hearing is scheduled for Feb. 13, and the final hearing will be held on Feb. 22.

Hamblin Watsa Investment Counsel Ltd. is the administrative agent.

The financing is comprised of two $125 million revolving credit facilities.

The facilities will mature on the earliest of 12 months after the effective date, subject to a maturity extension option, the effective date of a Chapter 11 plan of reorganization, closing of a sale of all or substantially all of EXCO’s properties and the date of termination of the commitments and acceleration of the loans.

The loans will bear interest at the alternate base rate plus 300 basis points or Libor plus 400 bps.

EXCO said proceeds from the DIP facility will be used to refinance the company’s existing reserve-based credit agreement and to support its operations.

EXCO is a Dallas-based oil and gas exploration and production company operating in Texas, North Louisiana and Appalachia. The company filed for bankruptcy on Jan. 15 under Chapter 11 case number 18-30155.

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