|
Abraxas Petroleum Corporation (NASDAQ:AXAS - News) today announced that it
has priced its previously announced underwritten public offering of
20,503,347 shares of common stock (12,000,000 shares to be sold by Abraxas and 8,503,347 shares to be sold by certain
stockholders) at a public offering price of $4.40 per share. The primary component
of the offering has been upsized by 20% due to demand. Abraxas
has granted the underwriters a 30-day option to purchase up to an additional
3,075,502 shares of common stock on the same terms and conditions to cover
overallotments, if any. The offering is expected to close on February 1,
2011, subject to customary closing conditions.
The net proceeds to Abraxas
from the offering will be approximately $49.3 million, after deducting
underwriting discounts and commissions and estimated offering fees and
expenses. Abraxas intends to use the net proceeds
from the offering to repay indebtedness outstanding under its credit
facility, to increase its 2011 capital expenditure budget and for general
corporate purposes. These net proceeds do not include any proceeds associated
with the underwriters’ over-allotment option. Abraxas
will not receive any proceeds from the sale of shares by the selling
stockholders.
Johnson Rice & Company L.L.C., Canaccord Genuity and Stifel Nicolaus Weisel are acting as joint book-running managers of the
offering and Ladenburg Thalmann & Co. Inc. and Wunderlich Securities are acting as co-managers of the
offering.
The offering is being made only by means
of a prospectus supplement and accompanying base prospectuses which have been
filed with the SEC. Copies of the prospectus supplement and the accompanying
base prospectuses relating to the offering may be obtained from the
following:
Johnson Rice & Company L.L.C.
|
|
|
|
Canaccord Genuity
|
|
|
|
Stifel Nicolaus Weisel
|
Attn: Syndicate
|
|
|
|
Attn: Syndicate
|
|
|
|
Attn: Syndicate
|
639 Loyola Avenue, Suite 2775
|
|
|
|
99 High Street, 12th Floor
|
|
|
|
One South Street, 15th Floor
|
New Orleans, LA 70113
|
|
|
|
Boston, MA 02110
|
|
|
|
Baltimore, MD 21202
|
Telephone: 504-525-3767
|
|
|
|
Telephone: 800-225-6201
|
|
|
|
Telephone: 443-224-1988
|
An electronic copy of the prospectus
supplement and the accompanying base prospectuses may also be obtained at no
charge from the SEC website at www.sec.gov.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy the securities described
herein, nor shall there be any sale of these securities in any state or
jurisdiction in which such an offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such
jurisdiction.
Abraxas Petroleum Corporation is a San Antonio
based crude oil and natural gas exploration and production company with
operations across the Rocky Mountain, Mid-Continent, Permian Basin and Gulf
Coast regions of the United States and in the province of Alberta, Canada.
|
|