Magnum Hunter Announces Pricing of Private Offering of Senior Unsecured Notes

Magnum Hunter Resources

today announced that it priced a private offering of $450 million in aggregate principal amount of senior unsecured notes due 2020 (the "Senior Notes"). The Senior Notes will bear interest at 9.750% per annum and will be issued at a price of 98.646% of their face amount. Magnum Hunter expects to close the offering on May 16, 2012, subject to the satisfaction of customary closing conditions. Magnum Hunter intends to use the net proceeds of this offering, together with other sources of liquidity (i) to finance a portion of the pending $311 million previously announced acquisition of oil properties in the Williston Basin from Baytex Energy USA Ltd., (ii) to pay off all amounts outstanding under the Company's existing Term Loan, (iii) to repay outstanding debt under the Company's Revolving Credit Facility, (iv) to increase the 2012 upstream capital budget from $150 million to $325 million (92% of capital budget focused on Williston Basin and Eagle Ford) and (v) for general corporate purposes.