Published on 2/4/2011 in the Prospect News High Yield Daily.
New Issue: GMX sells $200 million 11 3/8% eight-year notes at 96.833 to yield 12%
By Paul A. Harris
Portland, Ore., Feb. 4 - GMX Resources Inc. priced a $200 million issue of 11 3/8% eight-year senior notes (Caa2/B-/) at 96.833 to yield 12% on Friday, according to an informed source.
The yield printed 100 basis points beyond the wide end of the 10¾% to 11% price talk.
Credit Suisse Securities and Morgan Stanley & Co. Inc. were the joint bookrunners.
The Oklahoma City-based oil and gas exploration and production company will use the proceeds to repay its revolver, to refinance its convertibles due 2013, to fund an acquisition and for general corporate purposes.
Issuer: | GMX Resources Inc.
|
Face amount: | $200 million
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Proceeds: | $193,666,000
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Maturity: | Feb. 15, 2019
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Securities: | Senior notes
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Bookrunners: | Credit Suisse Securities, Morgan Stanley & Co. Inc.
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Coupon: | 11 3/8%
|
Price: | 96.833
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Yield: | 12%
|
Spread: | 885 bps
|
First call: | Callable after Feb.15, 2015 at 108.531
|
Equity clawback: | 35% at 111.375 until Feb. 15, 2014
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Change-of-control put: | 101%
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Trade date: | Feb. 4
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Settlement date: | Feb. 9
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Ratings: | Moody's: Caa2
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| Standard & Poor's: B-
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Distribution: | Rule 144A/Regulation S with registration rights
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Price talk: | 10¾% to 11%
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Marketing: | Roadshow
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