Abraxas Petroleum details $300 million amended and restated facility

By Jennifer Chiou

New York, July 6 - Abraxas Petroleum Corp. revealed the specifics on its $300 million amended and restated credit facility entered into on June 30, according to an 8-K filing with the Securities and Exchange Commission.

At closing, the company drew $90 million to refinance its previous facility as well as for general corporate purposes.

The initial borrowing base is $125 million.

Each of Abraxas Petroleum's subsidiaries has guaranteed the company's obligations under the amended credit facility on a senior secured basis.

The filing stated that the company is required to maintain a ratio as of the last day of each quarter of not less than 1 to 1 and an interest coverage ratio of no less than 2.5 to 1.0.

Abraxas is also required to remain under a total debt to EBITDAX ratio as of the last day of each quarter of not more than 4 to 1.

As reported, SG Americas Securities LLC acted as bookrunner and as a joint lead arranger with Royal Bank of Scotland plc and ING Capital LLC for the facility, which matures on June 30, 2015.

Pricing on the facility can range from Libor plus 225 basis points to 325 bps based on use.

Abraxas is a San Antonio, Texas-based crude oil and natural gas exploration and production company.

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