Tuesday, April 17, 2012

Updated GMX Resources (GMXR) Cap Table

Latest estimate; this updates the bond prices and reflects the increase in senior secured debt that will occur as a result of the PIK election for the interest payment due June 1, 2012.

Also, adjusting the interest expense in the table for the secured notes to reflect that they will most likely continue to chose the PIK election, which is at a higher interest rate. (I haven't seen a trade on the secureds recently; but I am estimating them to trade at 80.)

Shares Outstanding 69,272

Face Amount Price Market Value Interest Exp
Cash, as of 12/31/11 -102,493 1.00 -102,493
4.5% Senior Note due 2015 86,520 0.49 42,395 3,893
5% Senior Note due 2013 59,372 0.77 45,716 2,969
11.375% Senior Note due 2019 1,970 0.50 985 224
11% Senior Secured Note due 2017 288,620 0.80 230,896 40,407
Total Debt 333,989
217,499 47,493
9.25% Series B Cumulative Preferred 79,418 0.52 41,297 7,346
Enterprise Value through Preferreds 413,407
258,797 54,839
Common Stock 99,752 1.44 99,752
Enterprise Value 513,159

Once again, we see a disparity between the enterprise value implied by the debt and what is implied by the common stock. Buyers of the unsecured debt create the company at a valuation of around $220 million and buyers of the common stock create the company at a valuation of around $510 million.

1 comment:

Jason said...

Either there is a lot of these out there or this is an investment theme of yours? Historically is this disparity common or is this more related to natural gas distress? Thanks for the color.