Magnum Hunter greenshoe exercised, raising convertibles to $125 million

New York, Dec. 22 - Magnum Hunter Resources Inc. said the underwriters of its recent offering of floating-rate convertible senior notes exercised the $25 million over-allotment option in full, raising the size of the deal to $125 million.

The Irving, Texas, independent oil and gas company originally issued $100 million of the securities after the market closed on Dec. 11 to yield three-month Libor flat with a 45% initial conversion premium.

On conversion, the notes are convertible into cash equivalent to the principal amount and stock for the value of the remainder.

Banc of America Securities and Deutsche Bank Securities were bookrunners of the Rule 144A deal.

Magnum Hunter will use proceeds to repay debt under its revolving credit facility that was recently increased to allow for the redemption of all of its 10% senior unsecured notes due 2007.

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