UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 8 - K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report
January 27, 1998
Abraxas Petroleum Corporation
(Exact name of registrant as specified in its charter)
Nevada
(State of other jurisdiction of incorporation)
0-19118 74-2584033
(Commission File Number) (I.R.S. Employer Identification Number)
500 N. Loop 1604 East, Suite 100
San Antonio, Texas 78232
(Address of principal executive offices)
Registrant's telephone number, including area code:
210-490-4788
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Item 5. OTHER EVENTS.
(a) On January 20, 1998 Abraxas Petroleum Corporation announced
the Company has priced a private offering of $60 million
principal amount of 11.5% senior notes. Such notes are an
add-on to the Company's existing $215 million senior notes.
The following exhibits are filed as part of this report:
NUMBER DOCUMENT
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99.5 Press release dated January 21, 1998
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ABRAXAS PETROLEUM CORPORATION
By: _________________________________________
Chris Williford
Executive Vice President, Chief Financial
Officer and Treasurer
Dated: January 27, 1998
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NEWS RELEASE
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FOR IMMEDIATE RELEASE www.abraxaspetroleum.com
FOR MORE INFORMATION CONTACT:
JACK M. RONEY
DIRECTOR OF CORPORATE DEVELOPMENT
ABRAXAS PETROLEUM CORPORATION ANNOUNCES
PRICING OF $60 MILLION SENIOR NOTES OFFERING
SAN ANTONIO, TX - (January 21, 1998) - Abraxas Petroleum Corporation (NASDAQ:
AXAS) announced today that it has priced a private offering of $60 million
principal amount of 11.5% Senior Notes due 2004, Series C, an Add-On to the
Company's existing $215 million Series B Notes. The notes bear a stated coupon
rate of 11.5%, but were priced at approximately 106.75% of par to yield a
minimum "yield to worst" of 9.69%. Canadian Abraxas Petroleum Limited, Abraxas'
Canadian subsidiary, is a co-issuer of the notes.
The net proceeds will be used to re-pay bank debt which was incurred primarily
for corporate acquisitions and to fund a portion of the Company's 1998 capital
expenditure budget. The new notes are being issued pursuant to an underwritten
Rule 144A offering. The notes have not been registered under the Securities Act
of 1933.
Moody's Investor Services and Standard & Poor's confirmed ratings of B-2 and
Single-B, respectively, for both the $60 million proposed issue and the existing
$215 million notes. Closing is expected to occur on January 27, 1998.
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas
exploration and production company that also processes natural gas. It operates
primarily along the Texas Gulf Coast, in the Permian Basin of western Texas,
western Canada and southwestern Wyoming.
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Safe Harbor for forward-looking statement: Statements in this release looking
forward in time involve known and unknown risks and uncertainties, which may
cause the Company's actual results in future periods to be materially different
from any future performance suggested in this release. Such factors may include,
but may not be necessarily limited to, changes in the prices received by the
Company for crude oil and natural gas. In addition, the Company's future crude
oil and natural gas production is highly dependent upon the Company's level of
success in acquiring or finding additional reserves. Further, the Company
operates in an industry sector where securities values are highly volatile and
may be influenced by economic and other factors beyond the Company's control. In
the context of forward-looking information provided for in this release,
reference is made to the discussion of risk factors detailed in the Company's
filing with the Securities and Exchange Commission during the past 12 months.
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