Goodrich plans to repurchase rest of 3.25% convertibles due 2026

By Jennifer Chiou

New York, Aug. 5 - Goodrich Petroleum Corp. intends to redeem all of its remaining 3.25% convertible senior notes due 2026 on or prior to Dec. 1. This follows the repurchase of $2.5 million of the notes in June, according to a 10-Q filing with the Securities and Exchange Commission.

Goodrich paid 100.75 plus accrued interest.

The company issued $175 million of the notes in December 2006. Most recently, it repurchased $145.9 million of the convertibles in March at 101.25 plus accrued interest.

For the June repurchase, Goodrich said that it recorded a gain of less than $100,000 on the early extinguishment of debt, and under the terms of the company's senior credit facility, it deposited $26.6 million in escrow to be used for the redemption of the remaining notes, the filing stated.

Due to the repurchase, the debt discount as of June 30 was reduced, resulting in a balance of $500,000 to be amortized over the next five months.

The 10-Q added that interest expense relating to the contractual interest rate and amortization of debt discount and financing cost for the notes for the three and six months ended June 30 was $600,000 and $3.4 million, respectively.

The effective interest rate on the liability component of the convertibles was 8.9% and 9.2%, respectively, for the three- and six-month periods ended June 30.

Goodrich is a Houston-based independent oil and gas exploration and production company.

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