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EXCO Resources announces definitive agreement to sell TGGT

EXCO Resources announced that its wholly-owned subsidiary, EXCO Operating, and an affiliate of BG Group, have entered into a definitive agreement to convey 100% of the equity interest in TGGT to Azure Midstream for an aggregate sales price of approximately $910M, of which approximately $875M will be in cash and the remaining portion will be in the form of an approximate 8% equity interest in Azure split equally between EXCO and BG Group, subject to closing adjustments and customary terms and conditions. EXCO expects to receive net cash proceeds of approximately $230M after TGGT pays off its credit agreement and net of transaction costs and closing adjustments. The cash proceeds will be used to reduce the asset sale tranche under EXCO’s credit agreement. EXCO anticipates completing the transaction in Q4.