Interim DIP Financing Approved for EXCO Resources, Inc.
January 18, 2018 at 12:00 am
Share
The US Bankruptcy Court gave an order to EXCO Resources, Inc, to obtain DIP financing on an interim basis on January 18, 2018. As per the order, the debtor has been authorized to obtain a Revolving Credit facility in the amount of $180.4 million out of a total facility of $250 million i.e. $125 million from revolver A facility and $125 million Revolver B facility from Hamblin Watsa Investment Counsel Ltd., and acting as the administrative agent respectively. The revolver A facility would carry an interest rate of Alternate Base Rate plus 3% p.a. and the revolver B facility would carry an interest rate of Alternate Base Rate plus 4% p.a along with an additional 2% p.a. interest in the event of default. The DIP facility carries an arrangement fee of 1% of the initial borrowing base and a fronting fee greater of (a) $500 and (b) 0.5% p.a. The DIP facility would mature either 12 months after the Effective Date or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $2.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The final hearing is scheduled on February 22, 2018.
EXCO Resources, Inc. is an independent oil and natural gas company. The Company is engaged in the exploration, exploitation, acquisition, development and production of onshore United States oil and natural gas properties with a focus on shale resource plays. Its principal operations are conducted in certain United States oil and natural gas areas, including Texas, Louisiana, and the Appalachia region. Its producing regions include East Texas and North Louisiana, South Texas, and Appalachia. The East Texas and North Louisiana regions are primarily comprised of its Haynesville and Bossier shale assets. It serves as the operator for most of its properties in the East Texas and North Louisiana regions. The South Texas region is primarily comprised of its Eagle Ford shale assets. Its position in this region includes approximately 48,500 net acres. It serves as the operator for most of its properties in the South Texas region. The Appalachia region is comprised of its Marcellus shale assets.