October 26, 2009 (FinancialWire) — GMX Resources Inc.  (NASDAQ: GMXR) has priced a public offering of 6,950,000 shares of its common stock, which was previously announced at 5,750,000 shares, at $15.00 per share as well as a public offering of $75 million aggregate principal amount of its convertible senior notes due 2015, which was previously announced at $70 million aggregate principal amount, and expects the issuance and delivery of the shares and the notes to occur on October 28, 2009, subject to customary closing conditions.

The company has also granted the underwriters a 30-day option to purchase a maximum of 1,042,500 additional shares of its common stock as well as a 30-day option to purchase a maximum of $11.25 million aggregate principal amount of additional notes, in each case, solely to cover over-allotments. 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 its outstanding senior secured notes and for general corporate purposes.

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 notes bear interest at a fixed rate of 4.50% per year, payable on May 1 and November 1 of each year, beginning May 1, 2010. The notes will mature on May 1, 2015.

The initial conversion rate of the notes is 53.3333 shares of the company’s common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $18.75 per share of the company’s common stock). The conversion rate and the conversion price are subject to adjustment upon the occurrence of certain events.

Credit Suisse Securities  LLC and Jefferies & company, Inc. are acting as joint book-running managers for both offerings.

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