DALLAS--(BUSINESS WIRE)--July 16, 2008--EXCO Resources, Inc.
(NYSE: XCO) today announced that it will convert all outstanding
shares of its Series A-1, Series B and Series C 7.0% Cumulative
Convertible Perpetual Preferred Stock, par value $0.001 per share, and
Series A-1 Hybrid Preferred Stock, par value $0.001 per share
(collectively, the "Preferred Stock"), into its common stock, par
value $0.001 per share ("Common Stock"), on July 18, 2008 (the
"Conversion Date").
Pursuant to the terms of the Preferred Stock, EXCO has the option
to cause all or any portion of the Preferred Stock to be automatically
converted into Common Stock. Prior to exercising this option, the
volume weighted average price of the Common Stock must equal or exceed
$33.25 for at least 20 trading days in any period of 30 consecutive
trading days, including the last trading day of such 30-day period.
At the close of business on the Conversion Date, approximately
526.3 shares of Common Stock will be issued upon conversion of each
share of Preferred Stock, plus cash in lieu of any fractional shares.
Currently, there are 199,900 shares of Preferred Stock outstanding,
which would result in the issuance of approximately 105.2 million
shares of Common Stock upon conversion. After the conversion, EXCO
will have approximately 210.9 million shares of Common Stock
outstanding. The conversion of the Preferred Stock has the effect of
increasing the book value of shareholders' equity by approximately
$2.0 billion.
Additionally, holders of the Preferred Stock will receive a cash
payment for any accrued but unpaid dividends of approximately $12.8
million with respect to the Preferred Stock through the Conversion
Date. After the Conversion Date, dividends will cease to accrue on the
Preferred Stock and all rights of the holders with respect to the
Preferred Stock will terminate, except for the right to receive the
whole shares of Common Stock issuable upon conversion, accrued
dividends through the Conversion Date and cash in lieu of any
fractional shares, as described above. The conversion of all
outstanding shares of Preferred Stock into Common Stock will eliminate
EXCO's obligation to pay quarterly cash dividends of $35.0 million,
resulting in annual dividend savings of $140.0 million.
A conversion notice will be express mailed to the holders of
record of the Preferred Stock as of the close of business on the
Conversion Date confirming EXCO's election to convert the Preferred
Stock. Continental Stock Transfer and Trust Company will serve as the
conversion agent for the Preferred Stock. For further information
about the conversion, please contact:
Continental Stock Transfer and Trust Company
Attention: Compliance Department
17 Battery Place, 8th Floor
New York, NY 10004
(212) 509-4000
EXCO Resources, Inc. is an oil and natural gas acquisition,
exploitation, development and production company headquartered in
Dallas, Texas with principal operations in Texas, Louisiana, Ohio,
Oklahoma, Pennsylvania and West Virginia.
Additional information about EXCO Resources, Inc. may be obtained
by contacting EXCO's Chairman, Douglas H. Miller, or its President,
Stephen F. Smith, at EXCO's headquarters, 12377 Merit Drive, Suite
1700, Dallas, TX 75251, telephone number (214) 368-2084, or by
visiting EXCO's website at http://www.excoresources.com. EXCO's SEC
filings and press releases can be found under the Investor Relations
tab.
This release may contain forward-looking statements relating to
future financial results or business expectations. Business plans may
change as circumstances warrant. Actual results may differ materially
from those predicted as a result of factors over which EXCO has no
control. Such factors include, but are not limited to: acquisitions,
recruiting and new business solicitation efforts, estimates of
reserves, commodity price changes, the extent to which EXCO is
successful in integrating recently acquired businesses, regulatory
changes and general economic conditions. These risk factors and
additional information are included in EXCO's reports on file with the
Securities and Exchange Commission.
CONTACT: EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen F. Smith, 214-368-2084
President
http://www.excoresources.com
SOURCE: EXCO Resources, Inc.
