Exco, BG Group to sell TGGT for $910M

|About: BG Group Plc (BRGXF)|By:, SA News Editor

Exco Resources (XCO) and BG Group (BRGYY.PK, BRGXF.PK) agree to sell their interests in U.S. gas production joint venture TGGT to Azure Midstream Holdings in a $910M deal.

XCO expects to receive net cash proceeds of ~$230M after TGGT pays off its credit agreement; the cash proceeds will be used to reduce the asset sale tranche under XCO's credit agreement.

TGGT owns and operates natural gas gathering and treating assets in shale gas formations across east Texas and north Louisiana.

XCO +3.4% premarket.

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