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ABN AMRO Agents Eureka Hunter’s New $117MM Revolving Credit Facility

April 01, 2014, 07:28 AM
Filed Under: Energy

Eureka Hunter Pipeline, LLC, a majority-owned subsidiary of Magnum Hunter Resources Corporation, has closed on a new $117 million senior secured revolving credit facility. The aggregate commitment may be increased in the future to a principal amount of up to $150 million, subject to the consent of the lenders and the satisfaction of certain conditions. The Revolving Credit Facility is secured by a first lien on substantially all the assets of Eureka Hunter and its subsidiaries. The revolving credit facility is non-recourse to Magnum Hunter.

The initial borrowings under the revolving credit facility were used to pay in full the outstanding $50 million term loan. The primary purpose of the new credit facility is to finance future expansion activities related to Eureka Hunter's pipeline gathering system located in West Virginia and Ohio. Generally, borrowings under the revolving credit facility will bear interest at LIBOR plus a margin ranging from 2.00% to 3.50% per annum. The revolving credit facility has a maturity date of March 28, 2018 and contains other terms and conditions customary for financings of this type.

ABN AMRO Capital USA, LLC serves as Sole Lead Arranger and Administrative Agent under the revolving credit racility, with CIT Bank serving as Syndication Agent. Participating banks include Hillcrest Bank (a division of NBH Bank, N.A.), OneWest Bank, N.A. and Royal Bank of Canada.

Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas-based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the States of West Virginia, Ohio, Kentucky, and North Dakota. The Company is presently active in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, and Williston Basin/Bakken Shale.

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