GMX Resources closes oversubscribed tender offer for 5% convertibles

By Susanna Moon

Chicago, March 14 - GMX Resources Inc. said investors tendered $121,534,000 of its 5% convertible senior notes due 2013 as of 5 p.m. ET on March 11 and the company accepted $50 million of the notes.

The total purchase price is $50,312,500, including accrued interest to but not including the settlement date of March 16.

Because the tender offer was oversubscribed, the amount of convertibles purchased was prorated. The proration factor was 41.2%.

On Feb. 28 the company said it extended the tender offer to allow noteholders to consider its 2010 fourth-quarter and annual financial and operational results.

The deadline was pushed back from Feb. 28. The offer began on Jan. 28.

As of 5 p.m. ET on Feb. 28, about $121,284,000 principal amount of the convertibles had been tendered and not withdrawn under the tender offer.

The company offered par plus accrued interest up to but excluding the settlement date for up to $50 million of its $122.75 million outstanding principal amount of 5% convertibles.

Convertibles acquired in the offer will be canceled.

The offer was subject to the satisfaction or waiver of a financing condition. The company expects to use some of the proceeds from a $100 million offering of common stock and a $200 million issue of senior notes due 2019 to fund the tender offer.

Credit Suisse Securities (USA) LLC (800 820-1653) and Morgan Stanley & Co. Inc. (800 624-1808) are the dealer managers for the tender offer. Global Bondholder Services Corp. (212 430-3774 for banks and brokers, others call 866 804-2200) is the information agent.

GMX is an independent oil and natural gas exploration and production company based in Oklahoma City.

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