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
Proceeds:	$193,666,000
Maturity:	Feb. 15, 2019
Securities:	Senior notes
Bookrunners:	Credit Suisse Securities, Morgan Stanley & Co. Inc.
Coupon:	11 3/8%
Price:	96.833
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
Change-of-control put:	101%
Trade date:	Feb. 4
Settlement date:	Feb. 9
Ratings:	Moody's: Caa2
	Standard & Poor's: B-
Distribution:	Rule 144A/Regulation S with registration rights
Price talk:	10¾% to 11%
Marketing:	Roadshow

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