Magnum Hunter talks $450 million eight-year notes with 9½% area yield

By Paul A. Harris

Portland, Ore., May 10 - Magnum Hunter Resources talked its $450 million offering of eight-year senior notes (Caa1) with a yield in the 9½% area on Thursday, according to a syndicate source.

The order books are closed, and the deal is set to price on Friday morning.

Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the joint physical bookrunners and will be joint allocators. Credit Suisse will bill and deliver.

BMO Securities, Capital One Southcoast, Deutsche Bank Securities Inc., Goldman Sachs & Co., RBC Capital Markets and UBS Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes come with four years of call protection. They feature standard high-yield incurrence-based covenants.

The Houston-based independent exploration and production company plans to use the proceeds to fund its acquisition of Baytex Energy Corp., to repay its existing revolver and term loan and for general corporate purposes.

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