Magnum Hunter offers $50 million tap of 8% convertible preferreds

By Jennifer Chiou

New York, Jan. 23 - Magnum Hunter Resources Corp. registered an offering of 2 million depositary shares, each representing a 1/1,000th interest in a share of its 8% series E cumulative convertible preferred stock, according to a filing with the Securities and Exchange Commission.

As of the end of 2012, the company had 3,704,850 depositary shares and 3,704.85 corresponding series E preferreds outstanding.

The company said that it previously issued 2,774,850 depositary shares and the 2,774.85 corresponding series E preferreds and 1 million depositary shares and 1,000 corresponding preferreds in connection with an underwritten public offering.

Sales will be made from time to time through MLV & Co. LLC in privately negotiated transactions.

The conversion price is $8.50 per share of common stock. The company's common stock closed at $4.54 (NYSE: MHR) on Tuesday.

The preferreds are non-callable before Nov. 2, 2015.

Magnum Hunter's depositary shares are traded on the NYSE MKT under "MHR.PRE." The shares closed at $23.75 each on Tuesday.

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

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