October 21, 2009 (FinancialWire) — GMX Resources Inc. (NASDAQ: GMXR) has launched an underwritten public offering of 5,750,000 shares of the company’s common stock as well as a concurrent underwritten public offering of $70 million in aggregate principal amount of the company’s convertible senior notes due 2015.

The company intends to use the aggregate net proceeds from these offerings to repay a portion of the outstanding indebtedness under its revolving bank credit facility, to repay all of the company’s outstanding senior secured notes and for general corporate purposes.

The common stock and the notes will be offered pursuant to an effective registration statement filed with the U.S. Securities and Exchange Commission . The company intends to grant the underwriters a 30-day option to purchase a maximum of 862,500 additional shares of its common stock as well as a 30-day option to purchase a maximum of $10.5 million in aggregate principal amount of additional notes, in each case, solely to cover over-allotments.

The notes will be general senior, unsecured obligations of the company and will be convertible, under certain circumstances, into cash, shares of the company’s common stock or a combination of cash and shares of the company’s common stock, at the company’s election. The interest rate, conversion rate and other terms of the notes will be determined at the time of pricing of the notes offering.

Credit Suisse Securities LLC and Jefferies & company, Inc. will act as the joint book-running managers of both offerings.

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