By Paul A. Harris
St. Louis, Oct. 22 - Abraxas Petroleum sold $125 million of non-rated five-year senior secured floating-rate notes at par to yield six-month Libor plus 750 basis points, according to market sources and a news release from the company.
Guggenheim Capital Markets ran the books for the Rule 144A issue.
The notes will be fully and unconditionally guaranteed by certain of Abraxas' subsidiaries, the company said in the news release.
The closing of the offering is subject to the concurrent consummation of Abraxas' new senior secured revolving credit facility, its new second-lien bridge loan and Grey Wolf Exploration Inc.'s $35 million term loan.
Proceeds as well as the bridge loan and the Grey Wolf term loan will be used to redeem the company's outstanding 11½% secured notes due 2007 and to repay debt under its existing credit facility.
Abraxas Petroleum is a San Antonio-based oil and gas exploration and production company with operations in Texas, Wyoming and western Canada.
| Issuer: | Abraxas Petroleum
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| Amount: | $125 million
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| Maturity: | Dec. 1, 2009
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| Security description: | Senior secured floating-rate notes
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| Bookrunner: | Guggenheim Capital Markets
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| Coupon: | Six-month Libor plus 750 basis points
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| Price: | Par
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| Yield: | Six-month Libor plus 750 basis points
|
| Trade date: | Oct. 22
|
| Settlement date: | Oct. 27
|
| Ratings: | Not rated
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