Exco Resources Bonds Tumble After CEO Proposes Buyout |
| Bloomberg - Nov 1, 2010 |
Exco Resources Inc.’s bonds declined to the lowest since they were issued in September after the oil and natural gas producer said today its chief executive officer offered to take the company private.
Exco’s $750 million of 7.5 percent notes due in September 2018 fell as much as 6.7 cents to 92 cents on the dollar, according to Trace, the bond price reporting system of the Financial Industry Regulatory Authority. The Dallas-based company’s debt traded at 95.4 cents on the dollar at 12:12 p.m. in New York, Trace data show.
CEO Douglas H. Miller is offering to pay $20.50 a share in cash for all of Exco’s stock that he doesn’t already own and may use debt financing to take the company private in a $4.36 billion transaction. While the company’s notes include a provision that allows bondholders to force Exco to redeem them at 101 cents on the dollar in the event of a takeover, the clause won’t apply if the company is acquired by a group led by Miller, according to Covenant Review LLC, a research firm that analyzes creditor protections.
Read Full Article from Bloomberg
- Posted: 2010-11-01 13:23:44
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