Magnum Hunter amends agreement, cuts borrowing base to $265 million

By Tali David

Minneapolis, April 26 - Magnum Hunter Resources Corp. entered into a seventeenth amendment to its second amended and restated credit agreement and limited consent, according to an 8-K filing with the Securities and Exchange Commission.

The credit agreement provides for an asset-based senior secured revolving credit facility maturing April 13, 2016.

The amendment changes the credit agreement to, among other things, provide for the decrease of the borrowing base to $265 million from $350 million, effective upon the closing of the company's previously announced sale of 100% of the outstanding capital stock of Eagle Ford Hunter, Inc., the company's wholly owned subsidiary, to Penn Virginia Oil & Gas Corp. under a stock purchase agreement dated April 2.

In addition, the deadline for the company's delivery of its audited 2012 annual financial statements to the lenders under the revolver was extended to the earlier of (a) 57 days after notice to the company by the trustee under the company's senior notes of the company's failure to comply with section 4.02(a) of the indenture governing the senior notes and (b) June 17.

The deadline for the company's delivery of its first-quarter 2013 financial statements to the lenders under the revolver was also extended, to the earlier of (a) 30 days after the delivery date of the audited 2012 annual financial statements under the new deadline and (b) July 12.

Magnum Hunter is a Houston-based oil and gas exploration company.

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