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Magnum Hunter Resources Corp. Message Board

  • Eighteenth Amendment to Second Amended and Restated Credit Agreement

    On August 7, 2013, Magnum Hunter Resources Corporation (the "Company") entered into an Eighteenth Amendment to Second Amended and Restated Credit Agreement (the "Eighteenth Amendment"), by and among the Company, Bank of Montreal, as administrative agent, and the lenders and guarantors party thereto. The Second Amended and Restated Credit Agreement (the "Credit Agreement") provides for an asset-based, senior secured revolving credit facility (the "Revolving Facility") maturing April 13, 2016. The Revolving Facility is governed by a semi-annual borrowing base redetermination derived from the Company's proved crude oil and natural gas reserves and, based on such redeterminations, the borrowing base can be increased or decreased up to a maximum commitment level of $750 million.

    The Eighteenth Amendment amends the Credit Agreement to, among other things,

    � Implement a new total senior debt to EBITDAX covenant set at 2.00 x EBITDAX while the total debt to EBITDAX covenant is deferred as described below;

    � defer the Company's current total debt to EBITDAX covenant for the period starting June 30, 2013 until June 30, 2014; at which time the level of debt to EBITDAX of less than 4.50 x EBITDAX will be in effect, decreasing to less than 4.25 x EBITDAX starting December 31, 2014;

    � amend the EBITDAX to interest expense covenant to no less than 2.00 x for the quarters ended June 30, 2013 and ending September 30, 2013, increasing to 2.25 x for the quarter ending December 31, 2013 and increasing to 2.50
    x starting March 31, 2014 and thereafter;

    � allow for up to $32 million in investments in the Company's unrestricted subsidiary Eureka Hunter Holdings, LLC provided (a) the investments are made before December 31, 2013 and (b) the borrowing base has availability of at least $75.0 million at the time of such investment, provided that the Company may also invest in Eureka Hunter Holdings, LLC using

 
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