Finance & Investing | Debt | Fundraising | Capital Markets

Magnum Hunter Gets Life Line; Loan Payment Extension

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Magnum Hunter Resources Corporation has received an extension from the Company's existing lending group under its senior secured revolving credit facility with respect to the Company's previously disclosed minimum capital raising obligation.

The timeline for satisfying the capital raising obligation has now been extended from June 19, 2015 to July 10, 2015. The capital raising obligation, which requires the Company to raise $65 million of aggregate net cash proceeds from certain specified transactions, arose pursuant to a previous amendment to the Company's senior secured revolving credit facility.

Yesterday, Magnum Hunter announced that Triad Hunter, LLC, a wholly owned subsidiary of the Company, had closed on the previously announced definitive agreement to sell certain non-core undeveloped and unproven leasehold acreage located in Tyler County, West Virginia. At that closing, the Company received consideration of approximately $33.6 million in cash. The ultimate consideration to be received is subject to post-closing adjustments for any title defects and for remediation of asserted title defects, which adjustments are anticipated to increase the ultimate cash sales price to $35.0 to $40.0 million on or before July 15, 2015. Additionally, Magnum Hunter has already completed approximately $22.0 million of other capital transactions. Therefore, to date, a total of $55.6 million has already been raised. Magnum Hunter continues to work on other potential liquidity enhancing transactions in order to satisfy these capital raising obligations and to increase the Company's overall liquidity position. The Company refers investors to its recent public filings with the Securities and Exchange Commission for a more complete description of these potential liquidity enhancing transactions that total in excess of $200 million.