EXCO Resources, Inc. announced that it received approximately $230 million from BG Group, plc in exchange for a 50% interest in oil and natural gas assets prospective for Marcellus shale development that EXCO recently purchased from Chief Oil & Gas LLC and related parties. The development of these assets will be governed by EXCO’s Appalachia joint venture with BG Group.
On January 31, 2011, TGGT Holdings, LLC, a 50%-indirectly owned joint venture subsidiary of EXCO, entered into a credit agreement with commercial banks and BG Group as a co-lender and declared and paid a $250 million cash dividend ($125 million to EXCO). TGGT’s credit agreement has a borrowing base of $500 million and matures on January 31, 2016.
All of the proceeds received from BG Group and TGGT were used to pay down a portion of EXCO’s credit agreement. As of February 8, 2011, the amount of outstanding indebtedness under the EXCO credit agreement is $549 million, resulting in $451 million of available borrowing capacity not considering $15 million of letters of credit outstanding.
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Source: EXCO Resources, February 10, 2011;