GMX obtains consents to issue notes, retire convertibles with proceeds

New York, Dec. 6 - GMX Resources Inc. said it received the consents it was seeking to amend its existing senior secured notes due 2017, according to a press release.

The company was seeking the ability to issue a new series of senior secured notes due 2017. Cash proceeds from the new series must be used 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 who delivered consents a cash payment of $5 per $1,000 principal amount of existing notes.

The consent deadline was 5 p.m. ET on Dec. 6. The solicitation was announced on Nov. 28.

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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