EXCO Resources 8-K 2007
Washington, D.C. 20549
Date of report (Date of earliest event reported):
March 8, 2007
EXCO RESOURCES, INC.
(Exact name of registrant as specified in its charter)
Registrants telephone number, including area code: (214) 368-2084
(Former name or former address, if changed since last report): Not applicable
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 1.01 Entry Into a Material Definitive Agreement.
On March 8, 2007, EXCO Partners Operating Partnership, LP (EPOP), a subsidiary of EXCO Resources, Inc., and certain of EPOPs subsidiaries entered into an amendment (Amendment) to EPOPs revolving credit facility with a group of lenders led by JPMorgan Chase Bank, N.A. The Amendment was sought due to EPOPs anticipated inability to comply with the leverage ratio and interest coverage ratio tests as of December 31, 2006. The original financial covenant ratios were negotiated assuming a more accelerated drilling program, which would have resulted in higher forecasted production. In addition, interest expense attributable to EPOPs senior term credit agreement was higher than originally forecast as the final negotiated interest rate exceeded our initial estimates when the covenants were being negotiated. Management and the lenders believe these revised covenants are more consistent with the actual operational activities contemplated at EPOP during 2007. The amendment was effective as of December 31, 2006. The foregoing description of the Amendment is not complete and is qualified in its entirety to the full text of the Amendment, a copy of which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
10.1 First Amendment to Senior Revolving Credit Agreement effective as of December 31, 2006 among EXCO Partners Operating Partnership, LP, certain of its subsidiaries, JPMorgan Chase Bank, N.A., as Administrative Agent, and the lenders party thereto, filed herewith.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.