By Susanna Moon
Chicago, Dec. 2 - Magnum Hunter Resources Corp. again upsized its offering of 8% series D cumulative preferred stock, this time to $50 million from $20 million, according to a 424B5 with the Securities and Exchange Commission on Friday.
The deal was originally announced on March 9 for $10 million. The company increased the amount to $17.5 million on March 15, 2011 and to $20 million on March 16, 2011.
The company will now sell 1 million of the preferreds at an offering price of $47 per share for total proceeds of $47 million. Under the original terms, the company was planning to issue 200,000 preferreds.
The preferreds have a liquidation preference of $50 each. Dividends are payable monthly.
There are no sinking fund or mandatory redemption clauses.
The preferreds can be redeemed, at the company's option, beginning on March 21, 2014 at a redemption price of $50 each plus accrued dividends. The preferreds can also be redeemed following a change of control.
Wunderlich Securities, Inc. and McNicoll, Lewis & Vlak LLC are acting as the joint bookrunning managers for the underwritten best-efforts offering.
Proceeds will be used for capital expenditures; working capital; acquisitions, directly or indirectly, of oil and natural gas properties; repayment or refinancing of debt; investments in subsidiaries; or general corporate purposes, which may include redeeming a portion of the company's outstanding equity interests.
The new preferreds will be listed on the New York Stock Exchange under the symbol "MHR PRD," pending application approval.
Magnum Hunter is a Houston-based independent exploration and production company engaged in the acquisition of exploratory leases and producing properties, secondary enhanced oil recovery projects, exploratory drilling and production of oil and natural gas in the United States.
| Issuer: | Magnum Hunter Resources Corp.
|
| Securities: | Series D cumulative preferred stock
|
| Amount: | $50 million, upsized from $10 million
|
| Proceeds: | $47 million, upsized from $9.4 million
|
| Shares: | 1 million, upsized from 200,000
|
| Dividends: | 8%, payable monthly
|
| Price: | $47 per share
|
| Liquidation preference: | $50 per share
|
| Call option: | At par beginning on March 21, 2014; upon a change of control
|
| Joint bookrunners: | Wunderlich Securities, Inc. and McNicoll, Lewis & Vlak LLC
|
| Pricing date: | March 9, 2011; upsized on March 15, 2011, March 16, 2011 and Dec. 2
|
| Trading symbol: | NYSE: MHR PRD
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