Magnum Hunter Resources announced it has refinanced its existing senior secured revolving credit facility with certain banks and obtained additional liquidity through a new senior secured term loan. The refinancing and additional liquidity are being provided, in equal amounts, by holders of more than a majority of the company’s second lien term loan agreement, and holders of more than a majority of the company’s 9.75% senior notes due 2020.

These new lenders have also agreed to forbear from the exercise of certain rights and remedies with respect to certain events of default and work, in good faith, on negotiating the terms of a consensual restructuring with the company.

The new term loan credit facility consists of a single tranche term loan in the aggregate principal amount of $60 million, which funded on November 5. Approximately $44 million of proceeds from the new term loan credit facility were used to refinance existing loans outstanding and cash collateralize letters of credit outstanding under the prior revolving credit facility with certain banks. The remaining approximately $16 million of proceeds will be used for general corporate purposes of the company and to pay certain transaction fees and expenses related to the new term loan credit facility. Furthermore, the new term loan facility includes an uncommitted incremental credit facility for up to an additional $10 million aggregate principal amount of term loans. The maturity date of the new term loan credit facility is December 30, 2015.

According to a related 8-K filing, the lender group was led by Bank of Montreal as administrative agent.

The new term loan credit facility provides Magnum Hunter with near-term liquidity as the Company continues to work towards a comprehensive strategic alternative to enhance liquidity and address the Company’s current capital structure.

As previously announced, the company has hired PJT Partners as financial advisor, and Kirkland & Ellis, as special legal advisor, to advise the company’s management and board of directors.

Irving, TX-based Magnum Hunter Resources is an independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the States of West Virginia and Ohio.