Magnum Hunter Resources Corp. (MHR) announced that it plans to offer 400 thousand shares of Series C Cumulative Perpetual Preferred Stock at $25.00 per share in an underwritten offering. The company intends to use the net proceeds to repay current borrowings under its revolving credit facility, to fund proposed acquisition of assets of Triad Energy Corp., to drill new wells, and for general corporate purposes.
The company noted that the Series C Cumulative Perpetual Preferred Stock cannot be converted into Magnum Hunter common stock, but may be redeemed by Magnum Hunter, at Magnum Hunter's option, after two years for $25.00 per share.
Magnum Hunter also intends to grant an option to the underwriter to purchase up to an additional 60 thousand shares of the Series C Cumulative Perpetual Preferred Stock for thirty days.
The company expects the transaction to close prior to December 15, 2009.
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