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Magnum Hunter Resources (MHRC) RSA Approved

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The U.S. Bankruptcy Court issued an order approving Magnum Hunter Resources’ motion to authorize its assumption of the restructuring support agreement (RSA). As previously reported, “The principal amount of the Debtors’ consolidated funded debt obligations totalled approximately $1 billion, comprised of approximately: $70 million in first lien obligations arising under the Fourth Amended and Restated Credit Agreement, by and among MHRC, certain Second Lien Lenders and Noteholders, in their capacity as bridge financing lenders, and Cantor Fitzgerald Securities, as successor to Bank of Montreal, as administrative agent, as amended, (the ‘Bridge Financing Facility’); $336.6 million in second lien obligations arising under that certain Second Lien Credit Agreement, by and among MHRC, each of the guarantors party thereto, Credit Suisse AG, Cayman Islands Branch, as administrative agent and collateral agent, and the lenders party thereto (the ‘Second Lien Lenders’); and $600 million in unsecured notes issued pursuant to that certain Indenture, for the 9.750% Senior Notes Due 2020, among MHRC, each of the guarantors party thereto, Wilmington Trust, National Association, as trustee, and Citibank, as paying agent, registrar, and authenticating agent….The Term Sheet attached to the Restructuring Support Agreement contains the following material terms: Certain Second Lien Lenders and Noteholders will backstop the DIP Facility, a $200 million multi-draw term-loan with the proceeds to be used for general corporate purposes, to fund administration of the Debtors’ chapter 11 cases, and to repay the Bridge Financing Facility; The Bridge Financing Lenders will receive payment in full from the proceeds of the DIP Facility.” Read more energy industry bankruptcy news.