By Toni Weeks
San Luis Obispo, Calif., Sept. 4 – Arabella Exploration, Inc. said it has arranged a $45 million senior secured note facility with a single investor, according to a press release. The company already issued $16 million of the notes on Sept. 2 and expects to sell an additional $5 million of notes in the next 60 days. After that, Arabella may sell the remaining notes in tranches until Sept. 2, 2015.
The 15% notes mature one year after issuance.
The investor also received warrants for 1.3 million shares. The warrants are each exercisable at $5.00. The strike price is a 34.21% discount to the Aug. 29 closing share price of $7.60.
Proceeds will be used to reduce payables and provide working capital for development, drilling and completion of the company’s wells in the Southern Delaware Basin.
The oil and gas exploration and production company is based in Midland, Texas.
Issuer: | Arabella Exploration, Inc.
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Issue: | Senior secured note facility
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Amount: | $45 million
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Maturity: | Sept. 2, 2015 for facility; one year after issuance for notes
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Coupon: | 15%
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Warrants: | For 1.3 million shares
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Warrant strike price: | $5.00
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Settlement date: | Sept. 2 (for $16 million)
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Stock symbol: | OTCBB: AXPLF
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Stock price: | $7.60 at close Aug. 29
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Market capitalization: | $35.02 million
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