EXCO Resources announced that its bank group completed a semi-annual review of the borrowing bases under its revolving credit agreements. The lenders reaffirmed the aggregate borrowing base commitments under the EXCO Resources, Inc. revolving credit agreement and the EXCO Operating Company, LP revolving credit agreement of $1.175 billion and $1.3 billion, respectively, resulting in an aggregate borrowing base equal to $2.475 billion. The credit facilities are provided by a syndicate of 34 banks led by JP Morgan Chase Bank, N.A.
In connection with the reaffirmation, EXCO agreed to amend each of the credit facilities to provide a 75 basis point increase to the interest rate spread. With respect to any Eurodollar loan, the interest rate spread previously ranged from 100 to 175 basis points and now ranges from 175 to 250 basis points depending upon borrowing base usage. With respect to any alternate base rate loan, the interest rate spread previously ranged from 0 to 75 basis points and now ranges from 75 to 150 basis points depending upon borrowing base usage. The maturity date for each of the credit facilities is March 30, 2012.
Douglas H. Miller, EXCO's Chief Executive Officer commented, "EXCO's growth over the last several years would not have been possible without the support of our bank group. Their continued support during these uncertain times, as evidenced by this reaffirmation, is truly appreciated."
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