Goodrich Petroleum Corp. (GDP) will retire $55 million of its outstanding 5.00% convertible senior notes due 2032 (the existing notes), the company said Sept. 1.
The notes will be exchanged for issuance $27.5 million of a new series of 5.00% convertible exchange senior notes (the new notes) due the same year.
Following these transactions, about $111 million in an aggregate original principal amount of the existing notes will remain outstanding. The exchange is scheduled to close on Sept. 8.
Many terms of the new notes will remain the same as the existing notes they replace. The final maturity date is Oct. 1, 2032.
Goodrich can redeem the new notes on or after Oct. 1, 2017. They can also be converted into underlying common stock, provided the trading price exceeds $2.50 for the required measurement period.
Goodrich also said that it received a notice on Aug. 27 that its average closing share price for common stock has fallen below the minimum average closing price for a 30-day trading period as required by the New York Stock Exchange’s (NYSE) continued listing standards.
Also, Goodrich’s average market capitalization for the prior 30 trading-day period was below $50 million, and its stockholders' equity is less than $50 million. Goodrich will notify the NYSE within 10 business days that it intends fix both deficiencies and return to compliance.
The minimum share price requirement can be regained in six months from the notice date.
Goodrich will submit a business plan to the NYSE, and there is no immediate impact on its common stock, which still trades, but with “.bc” to indicate its below-compliance status.
Houston-based Goodrich Petroleum Corp. Explores and produces domestic oil and natural gas.
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