Magnum Hunter to sell up to $50 million additional 10¼% preferreds

By Angela McDaniels

Tacoma, Wash., Nov. 15 - Magnum Hunter Resources Corp. plans to sell up to $50 million of additional 10¼% series C cumulative perpetual preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

The company currently has $38.61 million of the preferreds outstanding.

The additional preferreds will be sold from time to time at variable prices through McNicoll, Lewis & Vlac LLC.

The face value of each preferred is $25.00.

The preferreds are callable at par beginning Dec. 14, 2011.

If the preferreds are not listed on a national exchange or if the company fails to pay dividends in full for any four quarters, the dividend rate will increase to 12½%.

The preferreds are listed on the NYSE Amex under the symbol "MHR.PR.C." They closed at $24.98 on Friday.

Proceeds will be used for capital expenditures, for working capital, to acquire oil and natural gas properties, to repay or refinance debt, to make investments in subsidiaries or for general corporate purposes.

Magnum Hunter is a Houston-based independent oil and gas exploration and production company.

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