EXCO Resources, Inc. (EXCO) today announced that it closed its Appalachian joint venture with BG Group plc. The total purchase price paid by BG Group to EXCO at the closing was US$ 835.2 million, which is subject to customary post-closing purchase price adjustments.
Cash proceeds received at the closing were used to reduce the outstanding balance under EXCO’s credit facility, to fund EXCO’s share of an operating account for the JV, to pay transaction costs and expenses and for other general corporate purposes. The borrowing base under EXCO’s credit facility was reduced from US$ 1.3 billion to US$ 1.2 billion as a result of the consummation of this transaction.