Magnum Hunter Resources launches $340 million second-lien term loan

By Sara Rosenberg

New York, Oct. 6 – Magnum Hunter Resources Corp. held a conference call at 3 p.m. ET on Monday to launch a $340 million five-year second-lien term loan, according to a market source.

Credit Suisse Securities (USA) LLC and BMO Capital Markets are the lead banks on the deal.

The term loan is talked at Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 98½, the source said.

Also, the loan is callable at par for 18 months, then at 102 for one year and at 101 for the following year.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Commitments are due on Oct. 15, the source added.

Along with the term loan, the company is planning on getting a $50 million four-year senior secured first lien reserve-based revolving credit facility.

Closing is expected this month.

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

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