Each one in plain English, with the numbers worked through for a shareholder.
25 Jan 2013material agreement● Neutral
Magnum Hunter set up an at-the-market program to sell depositary shares representing its new Series E convertible preferred stock through MLV & Co. - yet another ongoing equity-funding channel alongside the Series C and D preferred ATMs.
Magnum Hunter had to get an NYSE waiver after repeatedly postponing its 2012 annual shareholder meeting, which put it at risk of violating the exchange's rule requiring an annual meeting each fiscal year; the NYSE agreed to the extension provided the meeting was held by January 17, 2013.
Magnum Hunter issued another $150 million of its 9.750% senior notes due 2020 (on top of the $450 million sold in May 2012, taking total notes to $600 million), and its bank lenders reduced the revolving credit facility's borrowing base to offset the new bond debt, as required under the credit agreement's debt-substitution formula.
Magnum Hunter's bank lenders raised the annual cap on preferred-stock dividends from $40 million to $45 million, a routine covenant tweak reflecting the growing stack of Series C, D and E preferred stock outstanding.
Bakken Hunter agreed to buy about 20,000 net Williston Basin acres and related well interests in Divide County, North Dakota from Samson Resources - the same operator that held an area-of-mutual-interest option on the earlier Baytex deal - for $30 million cash, further building out the North Dakota position.
Magnum Hunter's lenders raised its credit facility borrowing base again to $325 million (plus a temporary $50 million non-conforming tranche, for $375 million total) and cleared the way for the new Series E convertible preferred stock issued in the Virco deal - the facility had grown roughly fifteenfold in credit-limit terms across amendments since 2009.
Magnum Hunter closed the Virco acquisition, paying the agreed $106.7 million in cash and new Series E convertible preferred depositary shares, and set up the depositary arrangements for the new preferred stock - completing the deal announced two weeks earlier.
30 Oct 2012capital raising announcement▲ GoodMajor
Triad Hunter agreed to buy Viking International Resources (Virco) for about $106.7 million - $37.3 million cash plus $69.4 million in a newly created 8.0% Series E convertible preferred stock, convertible into common stock at $8.50/share - another acquisition funded partly with a new layer of preferred equity stacked below the existing Series C and D preferred.
Magnum Hunter disclosed it had understated non-cash stock-option compensation expense by about $3.8 million in its Q2 2012 10-Q due to a vesting-schedule calculation error, and its Audit Committee concluded that quarter's financial statements could no longer be relied on - an internal-controls stumble discovered right as the company was also replacing its auditor.
Magnum Hunter sold another 1.05 million shares of its Series D preferred stock in a public best-efforts offering at $44 per share, adding roughly $45 million more preferred capital on top of its earlier Series D issuances.
On higher proved reserves, Magnum Hunter's bank lenders raised its credit facility borrowing base again, to $260 million from $212.5 million, and loosened debt and preferred-dividend limits - continued lender support even as leverage kept climbing.