GMX Resources Elects to PIK Interest Payment on Senior Secured Notes ($GMXR)

From today's 8-K filing:

"GMXR's 2017 Senior Secured Notes have a semi-annual interest payment due the first day of June and December. GMXR has an option to pay the interest in cash (11.0% per annum) or a PIK election (9.0% per annum in cash and 4.0% per annum payable in the form of additional notes). GMXR has selected the PIK election for the interest payment due December 1, 2012. The record date for this interest payment is November 15, 2012. The PIK election will increase the outstanding principal balance of the 2017 Senior Secured Notes by $5.8 million."

More of the same. They have a marked tendency to use anything but cash to pay obligations: shares of stock, more debt. It's a trend you can bet on.