Abraxas Petroleum Corporation has closed the merger with Abraxas Energy Partners, L.P. (Abraxas Energy).

A special meeting of Abraxas Petroleum stockholders was held on October 5, 2009 and the holders of a majority of the shares voting at the special meeting approved the issuance of Abraxas Petroleum common stock to the holders of common units of Abraxas Energy not held by a wholly-owned subsidiary of Abraxas Petroleum in connection with the merger and further approved an increase in the number of shares of Abraxas Petroleum common stock reserved for issuance under its long-term equity incentive plan.

The unitholders of Abraxas Energy will receive 4.25 shares of Abraxas Petroleum common stock for each common unit of Abraxas Energy. A total of 26.2 million shares of Abraxas Petroleum common stock will be issued in connection with the merger. The shares are subject to an initial 90-day lock-up period followed by a multi-year staggered lock-up period.

Further in connection with the merger, Abraxas Petroleum amended and restated its existing credit facility. The $310 million amended and restated credit facility has an initial borrowing base of $145 million, of which approximately $135 million was drawn at closing. In addition, the amended and restated credit facility provided a $10 million term loan which was drawn at closing. Abraxas Energy’s senior credit agreement and its subordinated credit agreement were refinanced in conjunction with entering into the amended and restated credit facility.

Tags: Abraxas Petroleum Corporation