UPDATE 1-GMX backs production view; begins stock, notes offering
Independent oil and natural gas company GMX Resources Inc (GMXR.O) backed its third-quarter production forecast, and announced a stock and notes offering to repay debt.
The company said it will sell 5.75 million shares and $70 million of its convertible senior notes due 2015.
It plans to use the net proceeds to repay a portion of debt under its revolving bank credit facility and settle all of its outstanding senior secured notes.
The company also said it continues to see natural gas production of 3.4 billion cubic feet equivalent in the third quarter, a 2 percent rise from the prior quarter.
GMX also raised its 2009 capital expenditure to a range of $157 million and $175 million after the activation of Haynesville/Bossier Horizontal rig.
Shares of the Oklahoma-based company closed at $18.44 Friday on Nasdaq.
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