Daily News: May 12, 2014

BOM Agents Magnum Hunter Resource Revolver Increase

Magnum Hunter Resources announced that the lenders under its senior revolving credit facility completed their regular semi-annual redetermination of the company’s borrowing base under the credit facility, resulting in an increase to the borrowing base from $232.5 million to $325 million, or an increase of $92.5 million.

According to a related SEC filing, the lender group was led by Bank of Montreal as administrative agent.

The company said the credit facility is governed by a semi-annual borrowing base redetermination derived from the company’s proved crude oil and natural gas reserves. The company was successful at increasing the borrowing base notwithstanding several previously reported non-core asset divestitures made by the company in late 2013 and earlier this year. In addition, the lenders have increased the company’s letter of credit sublimit under the credit facility from $10 million to $50 million, and made certain other modifications to the terms of the credit facility, including modifications to the financial ratio requirements under the credit facility that will provide the company greater financial flexibility regarding its ongoing operations.

The next redetermination of the borrowing base is scheduled for November 1, 2014. Based on such redeterminations, the borrowing base may be decreased or increased up to a maximum commitment level of $750 million.

Houston, TX-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 WV, OH and ND.