Scandinavian Oil-Gas Magazine
http://www.scandoil.com/moxie-bm2/news/exco-resources-closes-eagle-ford-acquisition.shtmlEXCO Resources closes Eagle Ford acquisition
EXCO Resources, Inc. has closed its previously announced acquisition of producing and undeveloped oil and gas assets in the
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EXCO Resources, Inc. has closed its previously announced acquisition of producing and undeveloped oil and gas assets in the Eagle Ford shale formation ('Eagle Ford') from subsidiaries of Chesapeake Energy Corporation for total consideration of approximately $685 million in cash, subject to customary post-closing purchase price adjustments. The acquisition had an effective date of April 1, 2013.
EXCO financed the Eagle Ford acquisition under the Company's recently amended and restated credit agreement which has an initial $1.6 billion borrowing base. The initial borrowing base includes a $1.3 billion revolving facility and a $300 million term loan. The term loan portion of the facility is expected to be replaced with a new term loan containing terms and conditions customary for a transaction of this nature. The credit agreement provides that the initial borrowing base will be reduced by $400 million through the sale of certain selected assets during the next twelve months.
