Cimarex Energy plans to redeem Magnum Hunter's 9.6% notes

By Angela McDaniels

Seattle, April 11 - Cimarex Energy Co. said it intends to redeem Magnum Hunter Resources, Inc.'s $195 million of 9.6% senior unsecured notes due 2012, which Cimarex assumed when it acquired Magnum Hunter in June 2006.

The notes are currently redeemable at 104.8% of par plus accrued interest, according to a company news release.

Cimarex held a change-of-control tender offer for the notes following the acquisition and received no tenders. The company offered to pay 101% of par.

The Denver-based oil and gas exploration and production company said it will fund the redemption with proceeds from a $300 million offering of senior unsecured notes due 2017. Proceeds will also be used to repay borrowings under Cimarex's revolving credit facility, which totaled $161 million at March 30.

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