GMX Resources seeks consents to issue new notes due 2017, retire convertibles with proceeds

By Toni Weeks

San Diego, Nov. 28 - GMX Resources Inc. began a consent solicitation on Nov. 16 in connection with its existing senior secured notes due 2017, according to a press release.

The company is soliciting consents to authorize and permit the issuance of a new series of senior secured notes due 2017 under the indenture as well as to require the company to use cash proceeds from the new series to repay, redeem, repurchase or otherwise acquire or retire the company's outstanding 5% senior convertible notes due 2013 on the date of issuance of the new notes at or prior to their maturity date.

The company will pay to holders of record as of 5 p.m. ET on Nov. 28 a cash consent payment of $5 per $1,000 principal amount of existing notes.

The consent deadline is 5 p.m. ET on Dec. 6, with settlement occurring afterward as soon as is practicable.

As previously reported, GMX expects to issue $30 million of new first-lien senior secured notes due 2017, with about $27.1 million of the proceeds slated for retiring the convertibles.

U.S. Bank NA (713 235-9206) is the tabulation agent.

GMX is an Oklahoma City-based small-cap natural gas exploration and production company.

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