Magnum Hunter Resources Corporation announced it has closed on two new credit facilities and completely refinanced its prior revolving credit facility. Credit Suisse Securities (USA) LLC and BMO Capital Markets acted as joint lead arrangers for the two new credit facilities.

The new credit facilities consist of i) a $50 million senior secured first lien reserve-based revolving credit facility, maturing four years after the closing date, and ii) a $340 million senior secured second lien term loan, maturing five years after the closing date. Proceeds from the new term loan were used to repay 100% of the outstanding borrowings under the Company's prior revolving credit facility (approximately $241 million) along with customary transaction costs. The new available proceeds will be used primarily to fund the Company's upstream operations in the Marcellus and Utica Shale plays of West Virginia and Ohio and for general corporate purposes.

The closing of these new credit facilities has significantly enhanced the Company's current liquidity position and provides it with greater financial flexibility to execute on its upstream development program in West Virginia and Ohio. Following the closing of the new credit facilities, the Company had total liquidity of $212 million, comprised of $164 million of cash and $48 million of borrowing availability under its new senior secured revolving credit facility.

Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, "Completing this new financing during such turbulent times is a testament to the quality of Magnum Hunter's asset base. We have now increased our liquidity position by approximately $128 million, while at the same time maintained full operational flexibility. Maintaining a strong liquidity position to fund any shortfalls in cash flow over the next couple of years so we can remain active in our resource plays was paramount to our funding plans. The fact that we operate close to 90% of our future capital program also gives us greater control of our funding needs as well as timing."

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 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.