Magnum Hunter Resources Announces Closing of New Credit Facilities and Refinancing of Prior Revolving Credit Facility
HOUSTON, TX--(Marketwired - Oct 22, 2014) - 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 it has closed on two new credit facilities and completely refinanced its prior revolving credit facility.
The new credit facilities consist of i) a $50 million senior secured first lien reserve-based revolving credit facility, maturing four years after the closing date, and ii) a $340 million senior secured second lien term loan, maturing five years after the closing date. Proceeds from the new term loan were used to repay 100% of the outstanding borrowings under the Company's prior revolving credit facility (approximately $241 million) along with customary transaction costs. The new available proceeds will be used primarily to fund the Company's upstream operations in the Marcellus and Utica Shale plays of West Virginia and Ohio and for general corporate purposes.
The closing of these new credit facilities has significantly enhanced the Company's current liquidity position and provides it with greater financial flexibility to execute on its upstream development program in West Virginia and Ohio. Following the closing of the new credit facilities, the Company had total liquidity of $212 million, comprised of $164 million of cash and $48 million of borrowing availability under its new senior secured revolving credit facility.
Credit Suisse Securities (USA) LLC and BMO Capital Markets acted as joint lead arrangers for the two new credit facilities.
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, "Completing this new financing during such turbulent times is a testament to the quality of Magnum Hunter's asset base. We have now increased our liquidity position by approximately $128 million, while at the same time maintained full operational flexibility. Maintaining a strong liquidity position to fund any shortfalls in cash flow over the next couple of years so we can remain active in our resource plays was paramount to our funding plans. The fact that we operate close to 90% of our future capital program also gives us greater control of our funding needs as well as timing."
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
(October 22, 2014 - 4:26 PM EDT)
News by QuoteMedia