ABN AMRO Agents Eureka Hunter Facility Expansion
Eureka Hunter Pipeline, a subsidiary of Magnum Hunter Resources, announced Eureka Hunter closed on an expansion of its senior secured revolving credit facility. Pursuant to this expansion, the aggregate loan commitment amount under the revolver increased by $108 million from $117 million to $225 million. The number of participating banks under the facility increased from five to thirteen. The revolver is non-recourse to Magnum Hunter.
ABN AMRO Capital serves as sole lead arranger and administrative agent. Participating banks include Amegy Bank, BNP Paribas, BB&T, CIT Bank, Citibank, Credit Suisse, Deutsche Bank, The Huntington National Bank, OneWest Bank, Royal Bank of Canada, Santander Bank, and U.S. Bank.
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.
Gary C. Evans, chairman of the board and CEO 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.”
Magnum Hunter Resources and subsidiaries are a Houston-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 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 BasinBakken Shale.
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