Each one in plain English, with the numbers worked through for a shareholder.
1 Feb 2008security holder rights change▲ GoodMajor
On January 31, 2008, GMX signed a 10-year gas gathering and processing agreement with PVR East Texas Gas Processing covering all gas from wells jointly owned with PVOG, about 53% of current production. It expects this to raise its average gas price by about $1.25/MMBtu, with processing starting around March 1, 2008 and a $0.30/MMBtu fee rising $0.01 a year. The board also raised the rights plan trigger from 20% to 29% of common stock, which lets investors hold bigger stakes while keeping takeover protection.
Highbridge International LLC, Highbridge Statistical Opportunities Master Fund, L.P., Highbridge Capital Management, LLC, Glenn Dubin, Henry Swieca reported no remaining GMX RESOURCES INC shareholding in its periodic institutional filing.
BARCLAYS GLOBAL INVESTORS, NA. and 1 other reported a GMX RESOURCES INC shareholding of 339,896 shares (2.56% of votes) in a periodic institutional filing.
On December 19, 2007, GMX amended its bank loan to add a temporary $30 million bridge increase in the borrowing base, from $90 million to $120 million, lasting until it completes additional financing or June 30, 2008. The bridge costs 2.25% more interest than regular borrowings and a higher unused-fee, and GMX paid $750,000 in upfront fees (2.5%). The higher-rate portion shrinks if the April 2008 redetermination raises the regular base.
On October 31, 2007, GMX signed a Second Amended and Restated Loan Agreement with Capital One and Union Bank, extending maturity to July 15, 2011 from July 8, 2008. The maximum it may borrow rises from $100 million to $125 million, the borrowing base from $62 million to $90 million, and the hedging cap from 75% to 80% of proved developed producing production.
On July 31, 2007, GMX signed a Note Purchase Agreement with Prudential for up to $100 million of senior subordinated secured notes, and sold an initial $30 million of 7.58% Series A notes due July 31, 2012. The proceeds are for general corporate purposes, including East Texas Cotton Valley drilling. The notes carry a second lien on all assets and covenants including a requirement that Kenworthy Jr. and Sr. remain CEO and CFO, or Prudential can require repurchase. GMX also amended its bank loan to allow the notes, and released Q2 2007 results (no figures given in the filing).
