The Magnum Hunter lending group has a total of eighteen participating financial institutions who unanimously approved an increase in the Company's borrowing base from $250 million to $275 million. Additionally, the maturity date has been extended on the facility by over one year to May 2006. With this amendment, the banks have lowered the interest rate margins by 25 basis points based upon current outstandings. In conjunction with these amendments, two new financial institutions have been named as co-agents.
The amended facility includes the following financial institutions and their respective management roles:
Financial Institution Title Deutsche Bank Trust Company Americas Administrative and Collateral Agent Bank of America, N.A. Co-Syndication Agent Bank of Montreal Co-Syndication Agent BNP Paribas Documentation Agent Fortis Capital Corp. Lead Manager Bank of Scotland Lead Manager Bank of Nova Scotia Lead Manager
Commenting on the amended Senior Commercial Bank Credit Facility, Mr. Chris Tong, Senior Vice President and Chief Financial Officer said, "We are very pleased that our bank group has agreed to increase our borrowing capacity, extend the maturity date of our revolving credit until May 2006, and lowered the interest rate margin. While we do not anticipate needing to use the additional $20 million in borrowing capacity at this time, it does increase our unused availability under our line of credit to approximately $123 million, which provides us with greater liquidity and financial flexibility. In addition, the reduction in our interest rate margin will save us almost $400,000 per year in interest expense. This coupled with the retirement of our $140 million 10% Senior Notes, which was completed at year- end 2003, saves Magnum Hunter over $10 million per year. These modifications are reflective of our improved financial condition, which we have diligently been working towards over the last several years. We are appreciative of the support and positive working relationship that we have established with our eighteen member bank group."
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