Abraxas Announces Pricing of the Grey Wolf Exploration IPO
Abraxas Petroleum Corporation (AMEX: ABP) announced that Grey Wolf Exploration Inc., its wholly-owned Canadian subsidiary, has priced its previously announced initial public offering of 26.9 million common shares at CDN $2.80 per share.
Utilizing a current exchange rate of 0.81 yields US $2.27 per share. All amounts below are expressed in US dollars.
The 17.8 million treasury shares, offered by Grey Wolf, will generate net proceeds sufficient to repay its $35 million term loan and to eliminate its working capital deficit. Net proceeds from Abraxas' secondary offering of 9.1 million shares (approximately $20 million) will be applied to the repayment of its $25 million bridge loan. If all of the over-allotment shares are exercised, net proceeds of approximately $8 million will be applied to the $25 million bridge loan first, then to general corporate purposes. Closing is anticipated to occur on February 24th.
Abraxas Petroleum Corporation is a San Antonio-based crude oil and natural gas exploitation and production company. Abraxas operates in Texas, Wyoming and western Canada.
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Company: Grey Wolf Exploration more info
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