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

Recommended Reading:

Daniel Loeb Discloses Big Stake in The Dow Chemical Company (DOW); Asks for a Strategic Review

Jeff Smith Sends Letter to Darden Restaurants, Inc. (DRI)’s CEO; Asks to Delay Red Lobster Spin-off

Hedge Fund Highlights: Nelson Peltz, Dan Loeb & Mario Gabelli

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!