Magnum Hunter Resources Corp. (MHR) refinanced its existing senior secured revolving credit facility with certain banks and obtained additional liquidity through a new senior secured term loan, the company said Nov. 5.
The refinancing and additional liquidity are being provided, in equal amounts, by holders of more than a majority of the second-lien term loan agreement, and holders of more than a majority of the 9.75% senior notes due 2020.
The new facility has a single-tranche $60 million loan and about $44 million of proceeds from the facility refinanced outstanding loans and supported letters of credit.
The remainder proceeds, roughly $16 million, will support general corporate purposes and fees related to the new facility. The facility matures Dec. 30.
These new lenders will also forbear from exercising certain rights and remedies due to default, the company said.
Magnum Hunter hired PJT Partners LP as financial adviser, and Kirkland & Ellis LLP as special legal adviser, to advise management and the board of directors in ongoing discussions regarding its capital structure.
Magnum Hunter Resources Corp. is based in Irving, Texas.
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