By Evan Weinberger
New York, Feb. 12 - GMX Resources Inc. priced an upsized $105 million in 5% convertible senior notes due 2013 with a 30% initial conversion premium Monday after market close.
The coupon came in at the cheap end of talk, which was 4.5% to 5%, and far below the cheap end of initial conversion premium talk, which was 37.5% to 42.5%.
Jefferies & Co. is the bookrunner on the Rule 144A transaction.
There is an upsized $20 million over-allotment option. The greenshoe was originally announced at $15 million.
The settlement date is expected to be Feb. 15
The conversion price is $32.50 and the conversion ratio is 30.7692, subject to a contingent conversion provision. Conversions have net share settlement.
The notes are non-callable.
GMX entered into a concurrent offering of 2.14 million shares of common stock priced at $25 per share which will be lent to an affiliate of Jefferies. The stock was sold to facilitate hedged transactions.
GMX Resources is an Oklahoma City-based oil driller. The company plans to use the proceeds to repay debt under its bank credit facility.
Issuer: GMX Resources Inc.
Issue: Convertible senior notes
Amount: $105 million
Greenshoe: $20 million
Maturity: 2013
Coupon: 5%
Price: Par
Yield: 5%
Conversion premium: 30%
Conversion price: $32.50
Conversion ratio: 30.7692
| Contingent conversion: | Yes
|
| Bookrunner: | Jefferies & Co.
|
| Distribution: | Rule 144A
|
| Pricing date: | Feb. 11
|
| Settlement date: | Feb. 15
|
| Talk: | $100 million principal amount, $15 million greenshoe; 4.5%-5% coupon; 37.5%-42.5% initial conversion premium
|
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