NGP Capital Resources Co. senior vice president R. Kelly Plato is leaving the company to pursue other business opportunities. Hans Hubbard and Chris Ryals have each been promoted to the position of managing director.
Stephen K Gardner, president and CEO 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."
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.”
The company also announced recent developments in its investments in Black Pool Energy Partners LLC and GMX Resources Inc.
Black Pool Energy Partners
Effective as of July 31, 2012, the company's Senior Secured Term Loan with Black Pool, which had a balance of $15.7 million 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 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.
On September 19, 2012, GMX consummated its exchange offer for its outstanding 5% Senior Convertible Notes due 2013, pursuant to which holders tendering the 2013 Notes received new Senior Secured Second-Priority Notes due 2018 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.
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."
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.