Goodrich Petroleum Corporation (NYSE:GDP) announced results to date and that it is extending the expiration date of its previously announced tender offer to exchange depositary shares of the Company’s newly created 10.00% Series E Cumulative Convertible Preferred Stock (the “Series E Preferred Stock”) for any and all issued and outstanding shares of the Company’s 5.375% Series B Cumulative Convertible Preferred Stock (“Series B Preferred Stock”), up to 2,390,000 depositary shares of the Company’s outstanding 10.00% Series C Cumulative Preferred Stock (“Series C Preferred Stock”), and up to 2,390,000 depositary shares of the Company’s outstanding 9.75% Series D Cumulative Preferred Stock (“Series D Preferred Stock” and, together with the Series B Preferred Stock and the Series C Preferred Stock, the “Existing Preferred Stock”). The Company has amended the tender offer to extend the tender offer until 5:00 p.m., New York City time, on December 15, 2015.
Similar to the Series B Preferred Stock, the Company will apply to initially list the Series E Preferred Stock on the OTC Markets Group, Inc. and currently expects the shares to be freely tradable upon closing. The Series E Preferred Stock will be immediately eligible for conversion into common stock of the Company per the terms of the Offer to Exchange dated November 6, 2015 (the “Offer to Exchange”). The common stock of the Company received upon conversion of the Series E Preferred Stock will be listed on the NYSE and will be freely tradable.
D.F. King & Co., Inc., the exchange agent and information agent for the exchange offers, has advised the Company that as of 5:00 p.m., New York City time, on December 8, 2015, approximately 52.5% of shares of Existing Preferred Stock eligible for exchange have tendered, broken out as follows:
- 701,492 shares of Series B Preferred Stock have been validly tendered and not properly withdrawn pursuant to the tender offer, representing approximately 31.2% of the Series B Preferred Stock offered for exchange;
- 1,502,488 depositary shares of Series C Preferred Stock have been validly tendered and not properly withdrawn pursuant to the tender offer, representing approximately 62.9% of the maximum 2,390,000 depositary shares offered for exchange; and
- 1,484,381 depositary shares of Series D Preferred Stock have been validly tendered and not properly withdrawn pursuant to the tender offer, representing approximately 62.1% of the maximum 2,390,000 depositary shares offered for exchange.
Holders who have already tendered their shares of Existing Preferred Stock do not have to re-tender their shares or take any other action as a result of the extension of the tender offer.
The terms and conditions of the tender offer, prior to the amendment described in this release, were set forth in the Offer to Exchange and Letter of Transmittal, dated November 6, 2015 (the “Letter of Transmittal”), and the other related materials that the Company distributed to holders of the Existing Preferred Stock, which were filed with the Securities and Exchange Commission (“SEC”) as exhibits to the Schedule TO on November 6, 2015 (the “Original Tender Offer Materials”). The Original Tender Offer Materials have been amended and supplemented by Amendment No. 1 to the Schedule TO, which was filed with the SEC on November 18, 2015 and Amendment No. 2 to the Schedule TO, which was filed with the SEC onDecember 9, 2015 (collectively, the “Schedule TO Amendments”). The term “tender offer,” when used in this release, shall refer to the terms and conditions described in the Original Tender Offer Materials, as amended and supplemented by the Schedule TO Amendments and this release. (Original Source)
Shares of Goodrich Petroleum closed yesterday at $0.28, up $0.02 or 8.95%. GDP has a 1-year high of $5.39 and a 1-year low of $0.25. The stock’s 50-day moving average is $0.53 and its 200-day moving average is $1.07.
On the ratings front, Goodrich Petroleum has been the subject of a number of recent research reports. In a report issued on December 1, Stifel Nicolaus analyst Michael Scialla downgraded GDP to Sell. Separately, on November 9, Northland Securities’ Jeff Grampp reiterated a Hold rating on the stock and has a price target of $0.75.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Michael Scialla and Jeff Grampp have a total average return of -6.8% and -28.9% respectively. Scialla has a success rate of 36.7% and is ranked #3189 out of 3640 analysts, while Grampp has a success rate of 12.5% and is ranked #3616.
The street is mostly Neutral on GDP stock. Out of 4 analysts who cover the stock, 3 suggest a Hold rating and one recommends to Sell the stock.
Goodrich Petroleum Corp is an independent oil & natural gas company engaged in the exploration, development & production of oil & natural gas on properties in South Texas, Northwest Louisiana & East Texas & Southwest Mississippi & Southeast Louisiana.