Magnum Hunter raises $150M in private placement, shares +4.3%

|About: Magnum Hunter Resources Corp. (MHRCQ)|By:, SA News Editor

Magnum Hunter Resources (MHR) +4.3% premarket on news it has sold 21.4M shares at $7/share to Relational Investors and affiliates to sell in a private offering.

MHR also will issue to Relational 2.14M warrants to purchase common stock with an exercise price of $8.50/share.

"This investment reflects our confidence in Magnum’s outstanding management team and their strategic plan,” Relational's Ralph Whitworth says.

MHR plans to use the proceeds to add an additional drilling rig to accelerate its drilling operations in the Marcellus Shale and Utica Shale, to fund the acquisition of new oil and gas leases in those shale plays, and to pay down debt.

This was corrected on 05/28/2014 at 09:35 AM. An earlier version incorrectly stated in the second bullet that MHR will issue to Relational 21.4M warrants.