By Stephanie N. Rotondo
Portland, Ore., March 15 - Magnum Hunter Resources Corp. increased the size of an offering of 8% series D cumulative preferred stock to $17.5 million from $10 million, according to an FWP filing made with the Securities and Exchange Commission on Tuesday.
The deal was originally announced March 9.
The company will now sell 350,000 of the preferreds at $47 per share for total proceeds of $16.45 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 in March 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: | $17.5 million, upsized from $10 million
|
| Proceeds: | $16.45 million, upsized from $9.4 million
|
| Shares: | 350,000, upsized from 200,000
|
| Dividends: | 8%, payable monthly
|
| Price: | $47 per share
|
| Liquidation preference: | $50 per share
|
| Call option: | At par beginning in March 2014; upon a change of control
|
| Joint bookrunners: | Wunderlich Securities, Inc. and McNicoll, Lewis & Vlak LLC
|
| Pricing date: | March 9; upsized on March 15
|
| Trading symbol: | NYSE: MHR PRD
|
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