The Magnum Hunter lending group consists of eighteen financial institutions who unanimously approved an increase in the maximum commitment amount from $500 million to $750 million and an increase in the Company's borrowing base from $480 million to $525 million. In conjunction with these amendments, two new financial institutions, The Royal Bank of Scotland and Caylon Corporate and Investment Bank, have joined the commercial bank group.
Commenting on the amended Senior Commercial Bank Credit Facility, Mr. Chris Tong, Senior Vice President and Chief Financial Officer said, "The increase in our borrowing base to $525 million provides us with approximately $182 million in unused borrowing capacity at this time. The additional available funds will allow the Company to close on the previously announced $40 million acquisition of Permian Basin properties, currently scheduled for the end of October, while continuing to maintain ample liquidity. Despite the significant increase in availability, we do not envision material increases in our overall debt level, as management remains focused on further reducing our overall leverage. These modifications to our credit facility are a result of our increased scale and improved financial condition. We are appreciative of the continued support and positive working relationship that we have established with our eighteen member commercial bank group."
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