Abraxas Petroleum extends credit facility to 2018, reduces pricing

By Angela McDaniels

Tacoma, Wash., June 12 – Abraxas Petroleum Corp. entered into a $300 million amended and restated credit facility on Wednesday and borrowed about $80 million at closing, according to an 8-K filing with the Securities and Exchange Commission.

The amendment increased the borrowing base to $162.5 million from $130 million, extended the maturity to June 30, 2018, reduced interest by 50 basis points across the grid and reduced the commitment fee to 37.5 bps when utilization is less than 50%.

The interest rate is Libor plus 175 basis points to 275 bps depending on the utilization of the borrowing base. At closing, the interest rate was about 2.9%.

The borrowing base will be redetermined semiannually by the lenders based on the company’s reserve reports.

The facility is guaranteed on a senior secured basis by each of the company’s domestic subsidiaries.

Under the facility’s covenants, the company must maintain a ratio of consolidated current assets to consolidated current liabilities of not less than 1.0 to 1.0, an interest coverage ratio of not less than 2.5 to 1.0 and a ratio of total debt to EBITDAX of not more than 4.0 to 1.0, in each case as of the last day of each quarter.

The $80 million drawn at closing was used to refinance the company’s previous credit facility and for general corporate purposes.

Societe Generale is the administrative agent and issuing lender.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.