EXCO Resources, Inc. has signed an agreement to sell its 25% interest in Compass Production Partners, LP (the 'Partnership') and its 50% interest in Compass Production GP, LLC (the 'General Partner') to an affiliate of Harbinger Group, Inc. ('Harbinger') for $118.75 million in cash. The effective date of the transaction is August 1, 2014 and it is expected to close during the fourth quarter of 2014.

The sale reflects EXCO's continued focus on improving its balance sheet and simplifying its corporate structure. EXCO intends to use the proceeds to reduce the revolving commitment under EXCO's Amended and Restated Credit Agreement (the 'EXCO Credit Agreement').

As of September 30, 2014, EXCO had $222.5 million of outstanding indebtedness under the revolving commitment of the EXCO Credit Agreement. Upon the closing of the sale of the Partnership, EXCO will have received cash consideration of $701.8 million from the sale of non-core assets and the rights offering of our common stock since September 30, 2013.

Tags: EXCO Resources