By Jennifer Chiou
New York, Jan. 19 - Magnum Hunter Resources Corp. again upsized its offering of 8% series D cumulative preferred stock, this time to $100 million from $50 million, according to a 424B5 with the Securities and Exchange Commission.
The deal was originally announced on March 9, 2011 for $10 million, and the company increased the amount to $17.5 million on March 15, 2011 and to $20 million on March 16, 2011. The offering was then raised to $50 million in December.
The company will now sell up to 2 million of the preferreds. Under the original terms, the company was planning to issue 200,000 preferreds, which have a liquidation preference of $50 each. Dividends are payable monthly.
As reported, 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.
MLV & Co. LLC, formerly McNicoll, Lewis & Vlak LLC and Wunderlich Securities, Inc., is the bookrunner for the 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 are listed on the New York Stock Exchange under "MHR.PR.D."
The company stated that its amended certificate of incorporation authorizes it to issue up to 10 million shares of preferreds on terms determined by its board of directors. Of those preferreds, 5.75 million has been designated as series D. As of Jan. 6, 1,437,863 shares of series D preferreds were outstanding.
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: | $100 million (up from original $10 million)
|
| Shares: | 2 million
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| Dividends: | 8%, payable monthly
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| Liquidation preference: | $50 per share
|
| Call option: | At par beginning on March 21, 2014; upon a change of control
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| Bookrunner: | MLV & Co. LLC
|
| Symbol: | NYSE: MHR.PR.D
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