GMX Proposes Public Offering of 2MM Shares

GMX Resources Inc.

GMX Resources Inc. announced that it intends to commence a public offering of 2 million shares of its common stock. The Company intends to use a substantial portion of the net proceeds from the offering to temporarily repay outstanding indebtedness under its revolving bank credit facility.

The balance of the net proceeds will be used to fund the development of oil and natural gas properties, acquisitions of additional properties and for general corporate purposes. The Company also anticipates reborrowing under its revolving bank credit facility from time to time for the same purposes. The common stock will be offered pursuant to an effective registration statement filed with the Securities and Exchange Commission. The Company intends to grant the underwriters a 30-day option to purchase a maximum of 300,000 additional shares of its common stock.

Jefferies & Company, Inc. will act as sole book-running manager for the offering. The offering is being made only by means of a prospectus and related prospectus supplement, copies of which, when available, may be obtained by mail from Jefferies & Company, Inc., Equity Capital Markets, 520 Madison Avenue, New York, New York 10022 or by telephone request to 888-449-2342 or 212-284-2342.
 


Most Popular Articles