Jackson Walker Represents Abraxas Petroleum in Public Offering and Debt Refinancing

July 3, 2014 | Client Results

Jackson Walker successfully represented its client, Abraxas Petroleum Corporation (NASDAQ: AXAS), in a public offering of 11.5 million shares of common stock.

The transaction, which closed on June 24, 2014, included the sale of 1.5 million shares to the underwriters pursuant to the exercise of their full option to purchase additional shares at a price of $5 per share, minus applicable underwriting discounts. Proceeds were used to accelerate Abraxas’ 2014 drilling program on its Bakken and Eagle Ford properties, acquire additional leased acreage primarily in the Eagle Ford, repay indebtedness outstanding under its credit facility and for general corporate purposes.

Jackson Walker also represented Abraxas in amending and restating its $300 million senior secured credit facility with Société Générale, as administrative agent and issuing lender, and certain other lenders. In that transaction, which closed on June 11, 2014, Abraxas increased its borrowing base to $162.5 million from $130 million and borrowed approximately $80 million under the amended credit facility to refinance its previous credit facility and for general corporate purposes. In connection with this redetermination, the existing credit facility terms were modified to extend the maturity to June 30, 2018, reduce the interest rate by 50 basis points across the usage grid and reduce the commitment fees to 37.5 basis points when utilization is less than 50 percent.

Abraxas Petroleum is a San Antonio-based crude oil and natural gas exploration and production company with operations across the Rocky Mountain, Permian Basin and Gulf Coast regions of the United States and in the province of Alberta, Canada.

Jackson Walker partners Steve Jacobs and Mike Laussade and associates Nina Kang, Pete Hyndman, and Amanda Shaw represented Abraxas in these transactions.

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Michael L. Laussade
Partner, Dallas