Issue Price Disclosure – March 15, 2017 Term Loan Exchange
Disclosure Pursuant to U.S. Treasury Regulation Section 1.1273-2(f)(9)
for EXCO Resources, Inc. Exchange of Second Lien Term Loans for 1.75 Lien Term Loans Due October 26, 2020
On March 15, 2017, EXCO Resources, Inc. (“EXCO”) closed a series of transactions. The transactions included the exchange of $682.8 million in aggregate principal amount of senior secured second lien term loans due October 26, 2020 for a like amount of senior 1.75 lien term loans due October 26, 2020 (“1.75 Lien Notes”).
Pursuant to U.S. Treasury Regulation Section 1.1273-2(f)(9), EXCO has made the following determination with respect to the 1.75 Lien Notes. This determination is binding on a holder of the 1.75 Lien Notes unless the holder explicitly discloses on the holder’s timely filed federal income tax return for the taxable year that includes its acquisition date of the 1.75 Lien Notes, in accordance with the requirements of the regulations, that its determination is different from EXCO’s determination.
EXCO has determined that the 1.75 Lien Notes are “traded on an established market (publicly traded)” within the meaning of the U.S. Treasury Regulation Section 1.1273-2(f)(1) and the issue price of the 1.75 Lien Notes is 75.00% (expressed as a percentage of face amount).
This notice is only intended to fulfill EXCO’s notification obligation under U.S. Treasury Regulation Section 1.1273-2(f)(9) and does not constitute tax advice. Please consult your own tax advisor.