Todd Dittmann of Angelo Gordon Energy Joins the Board of Directors
SAN ANTONIO–(BUSINESS WIRE)–Abraxas Petroleum Corporation (“Abraxas” or the “Company”) (NASDAQ:AXAS) today announced that it has completed the final elements of its recent refinancing transactions. As disclosed in the Company’s Form 8-K filed on August 13, 2020 with the Securities and Exchange Commission, the Company issued a Warrant to an affiliate of Angelo Gordon (collectively, “AG”) granting AG the right to purchase up to 33,445,792 shares of the Company’s common stock for a purchase price of $.01 per share, at any time during the next five years. In connection with the issuance of the Warrant, the Company also entered into a Registration Rights Agreement and a Governance Agreement with AG. Please see the Company’s Form 8-K filed on August 13, 2020 for a more detailed summary of those agreements and their full texts.
As disclosed in the Company’s Form 8-K filed on June 26, 2020, the Company amended its credit facilities and agreed to a cash sweep feature to pay down the first lien, with allowances for necessary Capex and G&A expense; AG agreed to PIK interest on the second lien note, enhancing the Company’s ability to generate cash to support the cash sweep feature on the first lien note; and the Company secured covenant relief and relief from periodic borrowing base redeterminations by the first lienholders. Please see the Company’s previously filed Form 8-Ks for a more detailed summary of those agreements and their full texts.
Pursuant to the Governance Agreement, AG designated Todd Dittmann to be appointed as a director of the Company and he was duly appointed by the Company’s Board. Mr. Dittmann is Head of Energy at Angelo Gordon and a member of the AG’s executive committee. He has spent more than 25 years in energy finance with investing and board experience in both public and private companies.
“We are pleased to have Todd Dittmann as a new director,” said Bob Watson, Abraxas CEO. “Now that we have successfully amended our agreements with Angelo Gordon and our banks, the Company’s cash flow is more predictable and should provide time to consider other strategic alternatives.”
The Company also announced that due to a tolling of time periods by NASDAQ due to COVID-19, it has until November 6, 2020 to meet the NASDAQ Minimum Bid Price standard of maintaining a price in excess of $1.00 per share for a minimum period 10 or more consecutive trading days.
Abraxas Petroleum Corporation is a San Antonio based crude oil and natural gas exploration and production company with operations across the Rocky Mountains and Permian Basin.
Safe Harbor for forward-looking statements: Statements in this release looking forward in time involve known and unknown risks and uncertainties, which may cause Abraxas’ 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 Abraxas for crude oil and natural gas. In addition, Abraxas’ future crude oil and natural gas production is highly dependent upon Abraxas’ level of success in acquiring or finding additional reserves. Further, Abraxas operates in an industry sector where the value of securities is highly volatile and may be influenced by economic and other factors beyond Abraxas’ control. In the context of forward-looking information provided for in this release, reference is made to the discussion of risk factors detailed in Abraxas’ filings with the Securities and Exchange Commission during the past 12 months.