Abraxas Petroleum to get new facility with Abraxas Energy merger

By Sara Rosenberg

New York, July 1 - Abraxas Petroleum Corp. plans on getting a new credit facility in connection with its merger with Abraxas Energy Partners LP, according to a news release.

In fact, the negotiation of the new credit facility is one of the conditions of the merger agreement. Other conditions include approval by the holders of a majority Abraxas Petroleum's common stock and approval by the holders of 80% of Abraxas Energy's common units.

Under the transaction, Abraxas Petroleum will acquire all common units of Abraxas Energy that it does not currently hold for $6.00 per common unit payable in shares of common stock.

The number of shares of Abraxas Petroleum common stock will range from 4.25 to 6.00 per common unit of Abraxas Energy and will amount to 26 million to 36 million shares of Abraxas Petroleum common stock.

Abraxas Energy also announced on Tuesday night that it finalized agreements with its lenders to amend the terms of its senior credit agreement and its subordinated credit agreement.

Under the amendment, the maturity date on the subordinated credit agreement has been revised to Aug. 14.

And, the senior credit facility amendment called for the payment of a $2.4 million consent fee on June 30, payment of which will be netted from the fees of the new credit facility for the merged entity.

Abraxas Petroleum is a San Antonio, Texas-based crude oil and natural gas exploration and production company. Abraxas Energy is a San Antonio, Texas-based upstream master limited partnership.

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