EXCO Resources (XCO) Begins Rights Offering

December 17, 2013 7:21 AM EST
EXCO Resources, Inc. (NYSE: XCO) announced that it has filed a registration statement on Form S-3 with the Securities and Exchange Commission (the “Commission”) for its previously announced rights offering. The registration statement is automatically effective as of December 17, 2013.

Under the terms of the rights offering, EXCO is distributing to its common shareholders, at no charge, one transferable subscription right for every share of common stock held of record as of 5:00 p.m., New York City time, on December 19, 2013, the previously announced record date. Each subscription right entitles the holder thereof to purchase 0.25 of a share of common stock for each share of common stock owned as of the record date at a purchase price of $5.00 per share. In addition to being able to purchase their pro rata portion of the shares offered based on their ownership as of the record date for the rights offering, shareholders may oversubscribe for additional shares of common stock as described in the registration statement.

As soon as practicable after the record date for the rights offering, EXCO will distribute subscription rights certificates to individuals who owned its common stock at 5:00 p.m., New York City time, on December 19, 2013. The rights offering will expire at 5:00 p.m., New York City time, on January 9, 2014.

In connection with the rights offering, the Company also announced today that it entered into two exercise commitment agreements, one with certain affiliates of WL Ross & Co. LLC, and one with Hamblin Watsa Investment Counsel Ltd. under which, subject to the terms and conditions thereof, each of them has agreed to subscribe for and purchase, in a private placement, their respective pro rata portion of shares under the basic subscription right and all unsubscribed shares under the over-subscription privilege, subject to availability and the pro rata allocation among the subscription rights holders who have elected to exercise their over-subscription privilege and subject to the terms and conditions set forth in their respective agreements.

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