By Rebecca Melvin
New York, Dec. 5 - Magnum Hunter Resources Corp. priced 1 million depositary shares representing interest in its 8% series E perpetual convertible preferreds, which will be sold on a "best efforts" basis at a discounted $23.50 per share, according to a pricing term sheet filed with the Securities and Exchange Commission.
The shares of series E preferred stock have a $25,000 liquidation price, which is equivalent to a $25.00 stated liquidation preference per depositary share.
The stated dividend rate is 8%, and the penalty dividend rate is 10%.
The company previously issued 2,774,850 depositary shares and 2,774.85 shares of series E preferred stock in connection with an acquisition on Nov. 2, 2012.
The preferred shares are non-callable until Nov. 2, 2015. They have change-of-control protection in which the company must redeem the preferreds in whole.
The company plans to receive proceeds from the sale of about $21.9 million, which will be used to repay debt under its senior revolving credit facility.
The offering is expected to close Dec. 12.
Joint bookrunners are UBS Investment Bank, MLV & Co. Inc. and Wunderlick Securities Inc., with co-managers Maxim Group LLC, National Securities Corp. and Northland Capital Markets.
Magnum Hunter is a Houston-based oil and gas exploration company.
| Issuer: | Magnum Hunter Resources Corp.
|
| Issue: | Perpetual convertible preferreds
|
| Amount: | $23.5 million (estimated)
|
| Maturity: | Perpetual
|
| Bookrunners: | UBS Investment Bank, MLV & Co. Inc., Wunderlick Securities Inc.
|
| Co-managers: | Maxim Group LLC, National Securities Corp., Northland Capital Markets
|
| Dividend: | 8%
|
| Price: | $23.50
|
| Liquidation preference: | $25.00
|
| Yield: | 10%
|
| Call: | Non-callable until Nov. 2, 2015
|
| Takeover protection: | Yes
|
| Pricing date: | Dec. 4, after the close
|
| Settlement date: | Dec. 12
|
| Stock symbol: | NYSE: MHR
|
| Stock reference price: | $3.77
|
| Market capitalization: | $657 million
|
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