Magnum Hunter Resources given until July 10 to raise $65 million

By Angela McDaniels

Tacoma, Wash., June 19 – The lender group for Magnum Hunter Resources Corp.’s senior secured revolving credit facility gave the company more time to meet its obligation to raise $65 million, according to a company news release.

The company now has until July 10, extended from June 19, to raise $65 million of net cash proceeds from the sale of equity securities, asset sales or the entry into a joint venture. The deadline was previously extended from May 29.

The company must raise the funds as a condition to an amendment and waiver granted by the lenders on April 20 that, among other things, waives the company’s compliance with the current ratio and total secured net debt ratio covenants for the quarter ended March 31 and any default or event of default that may have occurred as a result of non-compliance with the accounts payable aging limitation in effect prior to the amendment.

So far, subsidiary Triad Hunter, LLC has sold some acreage in West Virginia to Antero Resources Corp. for $33.6 million, and Magnum Hunter has completed about $22 million of other capital transactions.

The ultimate amount to be received from the asset sale to Antero is subject to post-closing adjustments, and the company expects the ultimate cash sales price to be increased to between $35 million and $40 million by July 15.

Magnum Hunter, a Houston-based oil and gas exploration and development company, said it continues to work on other potential liquidity-enhancing transactions.

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