Exco Resources Inc. - 2015-10-20

Executed an agreement with subsidiaries of Fairfax Financial Holdings Ltd. to provide a senior secured second-lien term loan that has a five-year maturity. Net proceeds from it will repay a portion of the borrowings under the amended and restated credit agreement. Agreements were also entered with certain unsecured noteholders pursuant to which the noteholders have agreed to become lenders under a new $291 million senior secured second-lien term loan in exchange for EXCO repurchasing $577 million of the noteholders’ senior unsecured notes at an average price of 51% of principal amount. The exchange term loan has a five-year maturity. EXCO will repurchase about $376 million of its 7.50% senior unsecured notes due 2018 (50% of the $750 million outstanding) and about $201 million of its 8.50% notes due 2022 (40% of the $500 million outstanding). Borrowing base was reduced to $375 million. Credit Suisse Securities (USA) LLC was the restructuring adviser.