NGP Capital Resources Company Announces Organizational Changes And Recent Portfolio Activity
GlobeNewswire
10/16/12 - 06:00 PM EDT
Houston, Oct. 16, 2012 (GLOBE NEWSWIRE) -- NGP Capital Resources Company (NASDAQ: NGPC) (the "Company")
today announced that R. Kelly Plato, the Company's Senior Vice
President, is leaving the Company to pursue other business
opportunities. The Company also announced that Hans Hubbard
and Chris Ryals have each been promoted to the position of Managing
Director.
Mr. Gardner commented, "Kelly has played a vital role in the
growth and development of NGPC over the years. He was
instrumental in helping us work our way through the challenges of
the financial crisis and in rebuilding our investment portfolio
over the last eighteen months. I am truly grateful for
Kelly's contributions and I wish him all the best in his future
endeavors."
Mr. Gardner continued, "I have great confidence in Hans Hubbard
and Chris Ryals. Hans and Chris have been key members of our
investment team since our inception and their extensive backgrounds
in energy-based lending have significantly benefited the Company
over the years. I congratulate them on their much deserved
promotions. I believe our new reporting structure for the
investment team will increase our efficiency and help us be more
responsive to our portfolio companies and potential new
clients."
The Company also announced recent developments in its
investments in Black Pool Energy Partners, LLC ("Black Pool") and
GMX Resources, Inc. ("GMX").
Black Pool
Effective as of July 31, 2012, the Company's
Senior Secured Term Loan with Black Pool, which had a balance of
$15.7 million (the "Term Loan") as of June 30, 2012, was
restructured. Huff Energy Holdings, Inc. ("HEH"), a newly
formed private oil and gas company which merged with Black Pool,
agreed to assume the Term Loan (including accrued and unpaid
interest of $0.4 million, which was rolled into the principal
balance) and became the new borrower under the related credit
agreement. The Company retained its first lien on the
original Black Pool properties and was granted a first lien on
additional proved developed properties of certain HEH
subsidiaries. In exchange for the increased collateral, the
Company agreed to reduce the interest rate under the Term Loan to
11% and to extend the maturity to April 15, 2013. In
connection with the restructuring, the Company agreed to sell its
3% overriding royalty interest ("ORRI") in oil and gas wells
operated by Black Pool, and penny warrants to purchase
approximately 25% membership interest in Black Pool, back to Black
Pool for $0.1 million.
GMX Resources
On September 19, 2012, GMX consummated its
exchange offer for its outstanding 5% Senior Convertible Notes due
2013 (the "2013 Notes"), pursuant to which holders tendering the
2013 Notes received new Senior Secured Second-Priority Notes due
2018 (the "2018 Notes") and shares of GMX common stock. The
Company tendered its 2013 Notes in the exchange offer, and
consequently received 2018 Notes with a face value of $12,661,000
and 3,646,368 shares of GMX common stock. The Company sold
300,000 shares of GMX common stock in September and an additional
254,000 shares in October 2012.
Interest on the 2018 Notes accrues at a rate of
9% per annum and is payable quarterly (commencing March 2, 2013) at
GMX's option, in cash or, with respect to interest paid prior to
September 19, 2014, either in the form of cash, GMX common stock,
or a combination thereof. The number of shares of GMX stock,
if any, to be issued in lieu of cash interest is calculated by
assigning a value per share equal to the product of (a) 0.75 and
(b) the 10-day volume weighted average price, or VWAP, ending the
business day prior to the interest payment date.
Mr. Gardner commented, "We are very pleased to
report the restructuring of the Black Pool Term Loan and the
results of the GMX exchange offer, which we anticipate will
positively impact the net asset value of our investment
portfolio. These transactions were made possible with the
focused efforts, patience and diligence of our investment team,
working together with our portfolio companies, to deliver the most
favorable outcomes for all parties."
About NGP Capital Resources
Company
NGP Capital Resources Company is a closed-end,
non-diversified management investment company that has elected to
be regulated as a business development company under the Investment
Company Act of 1940. We principally invest in private
companies and from time to time, we may also invest in public
companies. We invest primarily in senior secured and
mezzanine loans according to our business plan and in some
instances receive equity interests in portfolio companies in
connection with such investments. Our manager is NGP
Investment Advisor, LP, an affiliate of NGP Energy Capital
Management ("NGP ECM"). Founded in 1988, NGP ECM is a premier
investment franchise in the natural resources industry, which
together with its affiliates has managed $13 billion in cumulative
committed capital since inception.
Forward-Looking Statements
This press release may contain forward-looking
statements. We may use words such as "anticipates,"
"believes," "intends," "plans," "expects," "projects," "estimates,"
"will," "should," "may" and similar expressions to identify
forward-looking statements. These forward-looking statements
are subject to various risks and uncertainties. Certain
factors could cause actual results and conditions to differ
materially from those projected, including the uncertainties
associated with the timing of transaction closings, changes in
interest rates, availability of transactions, the future
operating results of our portfolio companies, regulatory factors,
changes in regional, national, or international economic
conditions and their impact on the industries in which we
invest, other changes in the conditions of the industries in which
we invest and other factors enumerated in our filings with the
Securities and Exchange Commission (the "SEC").
You should not place undue reliance on such
forward-looking statements, which speak only as of the date they
are made. We undertake no obligation to update our
forward-looking statements made herein, unless required by law.
Persons considering an investment in NGP Capital
Resources Company should consider the investment objectives, risks,
and charges and expenses of the Company carefully before
investing. Such information and other information about us is
available in our annual report on Form 10-K, in our quarterly
reports on Form 10-Q and in prospectuses we issue from time to time
in connection with our offering of securities. Such materials
are filed with the SEC and copies are available on the SEC's
website, www.sec.gov, and in the Investor Relations section of our
website at www.ngpcrc.com. Prospective investors should read
such materials carefully before investing.
INVESTMENT CONTACT:
Please send investment proposals to:
NGP Capital Resources Company 713-752-0062
Steve Gardner (sgardner@ngpcrc.com),
Michael Brown (mbrown@ngpcrc.com),
Hans Hubbard (hhubbard@ngpcrc.com), or
Chris Ryals (
cryals@ngpcrc.com).
CONTACT: L. Scott Biar (investor_relations@ngpcrc.com), 713-752-0062.
