GMX Resources prices stock, notes offerings

GMX Resources prices 6.95M stock offering at $15 per share, $75M notes offering due 2015

• On 9:10 am EDT, Friday October 23, 2009

OKLAHOMA CITY (AP) -- GMX Resources Inc. on Friday priced a public offering of 6.95 million shares of common stock at $15 per share.

The offering was previously announced for 5.75 million shares.

GMX also priced a public offering of $75 million convertible senior notes due 2015, up from an earlier principal amount of $70 million. The notes bear interest at a fixed rate of 4.5 percent.

The company expects to issue and deliver the shares and notes on Oct. 28. The conversion rate of the notes is equivalent to an initial conversion price of about $18.75 per common stock share.

The company has also granted the underwriters a 30-day option to purchase a maximum of about 1.04 million additional common stock shares, along with a maximum of $11.25 million of additional notes.

GMX said it plans to use net proceeds from these offerings to pay off debt, repay outstanding senior notes and for general corporate purposes.

Shares fell 36 cents, or 2.2 percent, to $15.85 in premarket trading.