DALLAS--(BUSINESS WIRE)--Dec. 8, 2008--EXCO Resources, Inc. (NYSE: XCO) today announced that its wholly-owned
subsidiary, EXCO Operating Company, LP, closed a $300 million Senior
Unsecured Term Credit Agreement with JPMorgan Chase Bank, N.A., as
administrative agent, and various lenders (the Term Loan). The Term Loan
is due January 15, 2010 and bears interest at the greater of 10% or 600
basis points over LIBOR. Fees and expenses under the Term Loan
aggregated $26 million at closing with duration fees due on June 15,
2009 and September 15, 2009 to the extent that the Term Loan remains
outstanding at those dates.
The proceeds of the Term Loan were used to repay and terminate the
original Senior Unsecured Term Credit Agreement due December 15, 2008.
Considering the debt outstanding under our revolving credit agreements,
the 71/4% Senior Notes and the Term Loan, EXCO's weighted average interest
cost will be 5.8% at current LIBOR rates, including the fees and
expenses incurred in connection with the Term Loan.
EXCO is presently reviewing its capital budget for 2009 and in view of
continuing softness in the natural gas and oil prices, contemplates
beginning the year with a capital budget that will be substantially less
than 2008 and that will produce free cash flow for debt reduction. Our
current production level is approximately 74% hedged for 2009 at a
weighted average price of $8.18 per Mcf for natural gas and $80.64 per
Bbl for crude oil. These hedges will help mitigate the recent declines
in product prices and contribute to meeting our cash flow targets and
debt reduction objectives. In addition, EXCO continues to pursue
non-core asset sales.
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, business expectations and business
transactions. 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. EXCO
undertakes no obligation to publicly update or revise any
forward-looking statements.
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.
