Eureka Hunter Pipeline Announces Expansion of Its Senior Secured Revolving Credit Facility
HOUSTON, TX--(Marketwired - Nov 21, 2014) - Eureka Hunter Pipeline, LLC ("Eureka Hunter"), a subsidiary of Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) ("Magnum Hunter" or the "Company"), announced today that Eureka Hunter has closed on an expansion of its Senior Secured Revolving Credit Facility ("Revolving Credit Facility"). Pursuant to this expansion, the aggregate loan commitment amount under the Revolving Credit Facility increased by $108 million from $117 million to $225 million. The number of participating banks under the facility increased from five to thirteen. The Revolving Credit Facility is non-recourse to Magnum Hunter.
In addition to the increase in commitments, the applicable interest rate margin was reduced across the pricing grid, with the interest rate on LIBOR based loans now at LIBOR plus a margin ranging from 1.75% to 3.00%. The maturity date of the Revolving Credit Facility remains at four years from the date of the initial closing of the facility, which occurred in March 2014. The Revolving Credit Facility contains other terms and conditions customary for financings of this type.
ABN AMRO Capital USA LLC serves as "Sole Lead Arranger" and "Administrative Agent." Participating banks include Amegy Bank National Association, BNP Paribas, Branch Banking and Trust Company (BB&T), CIT Bank, Citibank N.A., Credit Suisse AG, Deutsche Bank AG, The Huntington National Bank, OneWest Bank N.A., Royal Bank of Canada, Santander Bank, N.A. and U.S. Bank National Association.
Magnum Hunter Management Comments
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter and Eureka Hunter, commented, "We are pleased to report this large increase in our credit facility along with the addition of the seven new banks as lenders. This growth in credit availability is supported by the increased throughput volumes and continued expansion efforts being experienced at Eureka Hunter. We continue to position Eureka Hunter in a manner that maximizes our equity ownership interest for our account as well as our partners in preparation for our MLP initial public offering early next year.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the States of West Virginia, Ohio and North Dakota. The Company is presently active in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale and Williston Basin/Bakken Shale.
Availability of Information on the Company's Website
Magnum Hunter is providing a reminder that it makes available on its website (at www.magnumhunterresources.com) a variety of information for investors, analysts and the media, including the following:
- annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after the material is electronically filed with or furnished to the Securities and Exchange Commission;
- the most recent version of the Company's Investor Presentation slide deck;
- announcements of conference calls, webcasts, investor conferences, speeches and other events at which Company executives may discuss the Company and its business and archives or transcripts of such events;
- press releases regarding annual and quarterly earnings, operational developments, legal developments and other matters; and
- corporate governance information, including the Company's corporate governance guidelines, committee charters, code of conduct and other governance-related matters.
Magnum Hunter's goal is to maintain its website as the authoritative portal through which visitors can easily access current information about the Company. Over time, the Company intends for its website to become a primary channel for public dissemination of important information about the Company. Investors, analysts, media and other interested persons are encouraged to visit the Company's website frequently.
Certain information included on the Company's website constitutes forward-looking statements and is subject to the qualifications under the heading "Forward-Looking Statements" below and in the Company's Investor Presentation slide deck.
This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although Magnum Hunter believes that the expectations reflected in the forward-looking statements are reasonable, Magnum Hunter can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings made by Magnum Hunter with the Securities and Exchange Commission (SEC). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Magnum Hunter with the SEC, including Magnum Hunter's Annual Report on Form 10-K for the fiscal year ended December 31, 2013, and its Quarterly Reports on Form 10-Q for the fiscal quarters ended after such fiscal year. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." Forward-looking statements speak only as of the date of the document in which they are contained, and Magnum Hunter does not undertake any duty to update any forward-looking statements except as may be required by law.
(November 21, 2014 - 9:02 AM EST)
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