Eureka Hunter Announces Closing of a New $117 Million Senior Secured Revolving Credit Facility
March 31 2014 - 7:00AM
Marketwired
Eureka Hunter Announces Closing of a New $117 Million Senior
Secured Revolving Credit Facility
HOUSTON, TX--(Marketwired - Mar 31, 2014) - Eureka Hunter
Pipeline, LLC ("Eureka Hunter"), a majority-owned subsidiary of
Magnum Hunter Resources Corporation (NYSE: MHR) (NYSEMKT:
MHR.PRC) (NYSEMKT: MHR.PRD) (NYSEMKT: MHR.PRE) ("Magnum Hunter" or
the "Company"), announced today that Eureka Hunter has closed on a
new $117 million Senior Secured Revolving Credit Facility
("Revolving Credit Facility"). The aggregate commitment may be
increased in the future to a principal amount of up to $150
million, subject to the consent of the lenders and the satisfaction
of certain conditions. The Revolving Credit Facility is secured by
a first lien on substantially all the assets of Eureka Hunter and
its subsidiaries. The Revolving Credit Facility is non-recourse to
Magnum Hunter.
The initial borrowings under the Revolving Credit Facility were
used to pay in full the outstanding $50 million term loan. The
primary purpose of the new Credit Facility is to finance future
expansion activities related to Eureka Hunter's pipeline gathering
system located in West Virginia and Ohio. Generally, borrowings
under the Revolving Credit Facility will bear interest at LIBOR
plus a margin ranging from 2.00% to 3.50% per annum. The Revolving
Credit Facility has a maturity date of March 28, 2018. 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" under the Revolving Credit Facility, with
CIT Bank serving as "Syndication Agent." Participating banks
include Hillcrest Bank (a division of NBH Bank, N.A.), OneWest
Bank, N.A. and Royal Bank of Canada.
Magnum Hunter Management Comments
Mr. Gary C. Evans, Chairman of the Board and Chief Executive
Officer of Eureka Hunter, commented, "Our midstream assets have now
been providing sufficient cash flow to support a traditional bank
credit facility. With the lower cost of capital and greater
financial flexibility offered under this new revolving credit
facility, our ability to grow this asset without further
significant capital contributions from the parent company has
improved. Throughput volumes on Eureka Hunter continue to hit
records. The system has been strategically built in one the most
active regions in the country as a significant number of new wells
are being drilled for both the Marcellus and Utica Shales."
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, Kentucky, 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.
Forward-Looking Statements
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, as
amended, 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.
Contact: Cham King AVP, Investor Relations
ir@magnumhunterresources.com 832-203-4560