Magnum Hunter amends asset-based revolver, revising borrowing base

By Sara Rosenberg

New York, Nov. 14 - Magnum Hunter Resources Corp. amended its senior secured asset-based revolving credit facility, increasing the conforming borrowing base to $325 million from $265 million and implementing a non-conforming borrowing base of $50 million, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The non-conforming borrowing base expires on June 30, 2013 and is subject to some reduction events including a mandatory reduction from any interim increase in the conforming borrowing base.

Furthermore, the total debt to EBITDAX covenant was revised to 4.5 to 1.0 for the fiscal quarter ended Sept. 30 and the fiscal quarter ending Dec. 31, 4.25 to 1.0 for the fiscal quarter ending March 31 and 4.0 to 1.0 thereafter.

Also, the amendment increases the annual preferred stock dividend basket to $40 million from $20 million and permits dividends on the company's series E stock.

The amendment was completed on Nov. 7.

Bank of Montreal is the administrative agent on the deal.

Magnum Hunter is a Houston-based oil and gas exploration company.

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