Abraxas Petroleum to launch $125 million five-year notes, enter into new loans

By Paul A. Harris

St. Louis, Oct. 7 - Abraxas Petroleum Corp. will begin a roadshow next week for its $125 million offering of five-year senior secured notes, according to a market source.

Abraxas also intends to enter into a new $15 million senior secured revolving credit facility and a new $25 million subordinated secured term loan.

Grey Wolf Exploration Inc., Abraxas' Canadian subsidiary, will enter into a new $35 million term loan. Abraxas will use the proceeds of Grey Wolf's loan toward refinancing.

Pricing on the notes is expected to take place later this month.

Guggenheim Capital Markets will run the books for the Rule 144A offering.

The notes will come with 2½ years of call protection.

Abraxas is a San Antonio-based oil and gas exploration and production company.

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