Wilbur Ross Adds to EXCO Resources Inc (XCO) Holding Following the Rights Offering

Wilbur Ross and Invesco Private Capital have disclosed acquiring a significant amount of shares of EXCO Resources Inc (NYSE:XCO). The fund added around 17.72 million common shares, raising its stake to a total of 51.11 million shares. The securities have been acquired at a price of $5.00 apiece.

EXCO Resources Inc (NYSE:XCO)

The holding has been raised through acquiring over 24.57 million subscription rights to Purchase shares that have been converted into common shares. According to the total amount of shares is, the position held currently by Invesco amasses 18.74% of the common stock.

EXCO Resources Inc (NYSE:XCO) has recently conducted a rights offering, under the terms of which it issued 54.5 million shares of common stock, for a total value of $273 million.

A couple of days ago, another shareholder of EXCO disclosed acquiring shares under the rights offering. Howard Marks‘s Oaktree Capital Management reported acquiring 8.4 million shares, raising its holding to 45.25 million shares, which represent 16.6% of the common stock. Another significant investor, which participated in the offering is Hamblin Watsa Investment Counsel Ltd, which currently holds a total of 17.54 million shares, equal to 6.4% of the stock.

Following the offering, EXCO Resources Inc (NYSE:XCO) received net proceeds worth $272 million. Around $28.9 million of this amount was already used to fully repay the company’s indebtedness related to the Asset Sale Requirement and another $243.2 million were used to repay indebtedness related to the revolving commitment under the EXCO Resources Credit Agreement, the company said in a statement.

In an earlier announcement, EXCO Resources Inc (NYSE:XCO) stated that it expects to have an adjusted EBITDA worth between $400 and $425 million for the current year. The company has planned a capital budget of up to $368 million for 2014, out of which $294 million are allocated to drilling and completion activities.

While EXCO Resources Inc (NYSE:XCO) is one of the largest positions in Invesco Private Capital’s equity portfolio, the investor also owns a significant stake in Assured Guaranty Ltd. (NYSE:AGO), which contains 14.84 million shares, and in BankUnited (NYSE:BKU), the stake amassing 8.19 million shares.

Disclosure: none

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