The transaction, which covers shares representing approximately 8.5% of Mr. Goodrich's current fully diluted and beneficial stock ownership, provides Mr. Goodrich with a Line of Credit which will be available to him during a three year period. In addition, the structure of the transaction provides Mr. Goodrich with both downside price protection and upside share price appreciation potential. Mr. Goodrich has pledged these shares to the counterparty but, will retain ownership of the shares and the right to vote the shares during the three year period.
Walter G. "Gil" Goodrich commented on the announcement, "This transaction provides me with a line of credit which can be used to pay current and future tax liabilities associated with grants of GDP restricted stock, funds to recover costs associated with past exercises of stock option grants and purchases of GDP stock, as well as for other personal purposes. In addition, this transaction provides for a minimum price on these shares of approximately $38 per share while also allowing me to participate in any upside share price appreciation up to approximately $51 per share. As I remain extremely enthusiastic about our future prospects and the direction of the Company, this transaction was the best method for me to maintain significant upside potential from future share price appreciation."
Goodrich Petroleum is an independent oil and gas exploration and production company listed on the New York Stock Exchange. The majority of its properties are in Louisiana and Texas.
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