Magnum Hunter amends asset-based revolver, lifting borrowing base

By Sara Rosenberg

New York, Dec. 12 - Magnum Hunter Resources Corp. amended its asset-based senior secured revolving credit facility, increasing the borrowing base to $200 million from $167.5 million, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Also, the revolver amendment and an amendment to the company's second-lien term loan revised the definition of EBITDAX.

Additionally, the debt to EBITDAX ratio under the revolver was changed to 4.25 to 1.00 from 4.00 to 1.00 for the three months ending Dec. 31, and the debt to EBITDAX ratio under the second-lien loan was changed to 5.00 to 1.00 from 4.75 to 1.00 for the three months ending Dec. 31.

Furthermore, the minimum borrowing base availability required under the revolver to make preferred share cash dividends was revised to equal the greater of $5 million or 2.5% of the borrowing base, and the minimum liquidity test required under the second-lien loan to make preferred share cash dividends was revised to equal the greater of $5 million or 2.5% of the borrowing base.

The amendment was completed on Dec. 6.

Bank of Montreal is the administrative agent on the revolver, and Capital One is the agent on the second-lien loan.

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

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