Abraxas Petroleum Corporation Announces Exchange Offer.SAN ANTONIO--(BUSINESS WIRE)--Nov. 19, 1999-- Abraxas Petroleum Corporation (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:AXAS) announced that on Nov. 18, 1999 it commenced an offer to exchange $274.0 million of its 11 1/2% Senior Notes due 2004 for a new issuance of $196.8 million of 11 1/2% Senior Secured Notes due 2004, shares of Abraxas common stock and contingent value rights. For holders who validly tender and do not withdraw their old notes on or before the expiration date Expiration Date The day on which an options or futures contract is no longer valid and, therefore, ceases to exist. Notes: The expiration date for all listed stock options in the U.S. described below, the Company will pay the following consideration:
-- A new note with a principal amount equal to $700
-- Approximately 59.6184 shares of Abraxas common stock
-- Approximately 59.6184 contingent value rights each of which may
result in the distribution of up to approximately 6.3889 shares
of Abraxas common stock
The expiration date is 12:01 a.m., New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. time, on Dec. 17, 1999, unless extended or earlier terminated. In connection with the exchange offer, the Company is soliciting consents to proposed amendments to the indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. under which the old notes were issued. These amendments delete To remove an item of data from a file or to remove a file from the disk. See file wipe, trash and undelete. 1. (operating system) delete - (Or "erase") To make a file inaccessible. most of the covenants in the old indenture. The exchange offer is conditioned on receipt of tenders of at least 95% of the outstanding principal amount of the old notes and satisfaction of other customary conditions. The Company has entered into agreements with holders owning a total of approximately 89.6% of the principal amount of the old notes under which the holders have agreed, subject to the satisfaction of such conditions, to accept the exchange offer. The exchange offer is being made in reliance on the exemption afforded by Section 3(a)(9) from the registration requirements of the Securities Act of 1933, as amended. 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 The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. of western Texas, western Canada
Western Canada, commonly referred to as the West and southwestern Wyoming. Requests for copies of documents of for technical assistance in participating in the exchange offer should be directed to Chris E. Williford, Executive Vice President of Abraxas Petroleum Corporation at 210/490-4788 or toll free at 888/227-2927. |
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