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.
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