Magnum Hunter Resources Hires Advisors to Explore Strategic AlternativesSuspends Monthly Preferred Dividend Payments
Magnum Hunter Resources3 hours ago
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IRVING, TX--(Marketwired - Oct 9, 2015) - Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company" or "Magnum Hunter") announced today that it has hired PJT Partners LP (NYSE: PJT) (the combination of Blackstone's advisory businesses and PJT Capital LP, a global financial advisory firm founded by Paul J. Taubman), as financial advisor, and Kirkland & Ellis LLP, as special legal advisor, to advise management and the Company's Board of Directors regarding potential strategic alternatives to enhance liquidity and address the Company's current capital structure. As previously disclosed, the Company has actively worked to manage its balance sheet, including potential consummation of certain asset sales. With the addition of these advisors, the Company will continue to develop and explore all potential strategic alternatives.
To preserve liquidity as the Company considers these strategic alternatives, the Board of Directors of the Company has suspended the monthly dividends on its 10.25% Series C Cumulative Perpetual Preferred Stock ("Series C Preferred Stock"), 8.0% Series D Cumulative Preferred Stock ("Series D Preferred Stock") and 8.0% Series E Cumulative Convertible Preferred Stock ("Series E Preferred Stock"). This suspension commences with the monthly cash dividend that would otherwise have been declared and paid for the month ending October 31, 2015 and will continue indefinitely. The outstanding shares of Series E Preferred Stock are represented by depositary shares (the "Depositary Shares"), each representing a 1/1,000th interest of a share of Series E Preferred Stock. Under the terms of the Series C, Series D and Series E Preferred Stock, any unpaid dividends, including the unpaid dividends for the month ending October 31, 2015 and any future unpaid dividends, will accumulate.
The Series C Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "MHR.PRC". The Series D Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "MHR.PRD". The Depositary Shares are currently listed on the NYSE MKT and trade under the ticker symbol "MHR.PRE".
The suspension of the monthly dividends does not affect the listing on the NYSE MKT of the Company's Series C and Series D Preferred Stock and the Depositary Shares, and each such series of preferred stock and the Depositary Shares will continue to be listed and traded on the NYSE MKT, subject to the Company's continued compliance with the NYSE MKT's listing standards. The suspension of monthly dividends also does not conflict with the Company's revolving credit facility or other debt agreements.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are an Irving, Texas based independent exploration and production company engaged in the acquisition, development and production of natural gas, natural gas liquids and crude oil, primarily in the States of West Virginia and Ohio. The Company is presently active in two of the most prolific unconventional shale resource plays in North America, the Marcellus Shale and Utica Shale located in Northwest West Virginia and Southeast Ohio. |
