Magnum Hunter pricing $150 million tap of 9¾% notes due 2020 Thursday

By Paul A. Harris

Portland, Ore., Dec. 13 - Magnum Hunter Resources Corp. met with high-yield investors on Thursday morning to discuss a $150 million add-on to its 9¾% senior notes due May 15, 2020 (expected ratings Caa1/CCC), according to a syndicate source.

The drive-by deal is also set to price on Thursday.

Citigroup Global Markets Inc. and BMO Securities are the joint physical bookrunners.

Deutsche Bank Securities Inc., Goldman Sachs & Co., Capital One and RBC Capital Markets are the bookrunners.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Investment Bank are the senior co-managers.

ABN Amro, KeyBanc Capital Markets and SunTrust Robinson Humphrey are the co-managers.

The Rule 144A and Regulation S with registration rights notes become callable on May 15, 2016 at 104.875.

The notes feature a 35% equity clawback at 109.75 until May 15, 2015 and a101% poison put.

The Houston-based independent exploration and production company plans to use the proceeds to repay revolver debt.

The original $450 million issue priced at 98.646 to yield 10% on May 11, 2012.

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