Finance & Investing | General | Capital Markets
Eureka Hunter Expands Credit Facility to $225 Million
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Eureka Hunter Pipeline, LLC, a subsidiary of Magnum Hunter Resources Corporation, has closed on an expansion of its Senior Secured 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.
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."