Magnum Hunter widens spread, discount on $340 million second-lien loan

By Paul A. Harris

Portland, Ore., Oct. 16 – Magnum Hunter Resources Corp. revised price talk for its $340 million five-year second-lien term loan (B1/B), according to a market source.

The new talk hikes the Libor spread to 750 basis points from 500 bps and deepens the discount talk to a range of 96 to 97 from earlier talk of 98.5.

The Libor floor remains unchanged at 1%.

The loan remains callable at par for 18 months, following which the first call premium is 101, decreased from 102, and the second call premium is 102, increased from 101.

Commitments under the revised terms were due at 5 p.m. ET Thursday.

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

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

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

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

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