Eureka Hunter Pipeline, a majority-owned subsidiary of Magnum Hunter Resources, announced Eureka Hunter closed on a new $117 million senior secured revolving credit facility. ABN AMRO Capital 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, OneWest Bank and Royal Bank of Canada.

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 facility, secured by a first lien on substantially all the assets of Eureka Hunter and its subsidiaries, is non-recourse to Magnum Hunter.

Initial borrowings were used to pay in full the outstanding $50 million term loan. The primary purpose of the new facility is to finance future expansion activities related to Eureka Hunter’s pipeline gathering system located in West Virginia and Ohio.

Generally, borrowings will bear interest at LIBOR plus a margin ranging from 2.00% to 3.50% per annum. The facility has a maturity date of March 28, 2018, and contains other terms and conditions customary for financings of this type.

Gary C. Evans, chairman of the board and CEO 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.”

Houston-based Magnum Hunter Resources, and subsidiaries, is an 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.