By Rebecca Melvin
New York, Oct. 22 - GMX Resources Inc. priced $75 million of six-year convertibles after the close of markets on Thursday to yield 4.5% with an initial conversion premium of 25%, according to a syndicate source.
There is a 15% greenshoe for $11.25 million of additional notes.
The deal - originally talked at $70 million - priced at the rich end of talk, which was 4.5% to 5% for the coupon and 20% to 25% for the premium.
GMX also priced an offering of 5.75 million shares of common stock at $15 a share.
Both offerings were sold via joint bookrunners Credit Suisse Securities LLC and Jefferies & Co.
Proceeds will be used to part of the debt outstanding under its revolving bank credit facility, to repay all of the company's outstanding senior secured notes, and for general corporate purposes.
The convertible senior unsecured notes will be non-callable for three years with no puts. They will have standard dividend and takeover protection, and contingent conversion at a price trigger of 130%. The paper will rank pari pasu with its 5% convertibles due 2013.
Oklahoma City-based GMX is an oil and gas exploration and development company.
| Issuer: | GMX Resources Inc.
|
| Issue: | Convertible senior unsecured notes
|
| Amount: | $75 million
|
| Greenshoe: | $11.25 million
|
| Maturity: | 2015
|
| Concurrent offering: | 5.75 million of common shares at $15 a share
|
| Bookrunners: | Credit Suisse and Jefferies
|
| Coupon: | 4.5%
|
| Price: | Par, $1,000
|
| Yield: | 4.5%
|
| Conversion premium: | 25%
|
| Conversion price: | $18.75
|
| Conversion ratio: | 53.3333
|
| Call protection: | Non-callable for three years
|
| Puts: | No puts
|
| Contingent conversion: | At 130%
|
| Price talk: | 4.5%-5%, up 20%-25%
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes |
|
| Pricing date: | Oct. 22
|
| Settlement date: | Oct. 28
|
| Distribution: | Registered
|
| Stock symbol: | Nasdaq: GMXR
|
| Stock reference price: | $15
|
| Market capitalization: | $342 million
|
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