Required Hedging. On or before each date (x) that is thirty (30) days after the Closing Date (or such later date as may be agreed by the Administrative Agent), (y) that each Reserve Report is delivered under Section 9.13(a), and (z) on which any Credit Event occurs during any time period described in clause (a) below that would result in an increased Required Hedging Percentage (each such date, a “Hedging Test Date”), Borrower or other Credit Parties shall enter into Hedge Agreements with a Secured Hedge Counterparty the net notional volumes for which (when aggregated with other commodity Hedge Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Hedge Agreements) are at least, as of each Hedging Test Date: (a) during any time period when the Consolidated Total Debt to EBITDAX Ratio for the most recent Test Period before such Hedging Test Date is less than 2.00 to 1.00, the Required Hedging Percentage of the reasonably anticipated crude oil production and of the reasonably anticipated natural gas production from the Credit Parties’ total Proved Developed Producing Reserves (as forecasted by the Borrower and acceptable to the Administrative Agent based upon the Initial Reserve Reports or the most recent Reserve Report delivered under Section 9.13(a), as applicable) for any month during the 24-month period from the applicable Hedging Test Date, and (b) at all times other than those described in the preceding clause (a), 75% of the reasonably anticipated crude oil production and 50% of the reasonably anticipated natural gas production from the Credit Parties’ total Proved Developed Producing Reserves (as forecasted by the Borrower and acceptable to the Administrative Agent based upon the Initial Reserve Reports or the most recent Reserve Report delivered under Section 9.13(a), as applicable) for any month during the 24-month period from the applicable Hedging Test Date. Notwithstanding the foregoing, the Borrower or other Credit Parties are not required to enter into Hedge Agreements under this Section 9.18 for any month after the Maturity Date.
Required Hedging. The Borrower shall, or shall cause other Loan Parties to, enter into by December 31, 2016, and maintain in effect at all times during the 2017 calendar year, Swap Contracts reasonably acceptable to the Administrative Agent with the purpose and effect of fixing prices on oil and natural gas liquids to be produced by the Loan Parties during the 2017 calendar year, covering at least 3,300 barrels of oil per day and at least 5,100 barrels of natural gas liquids per day.
Required Hedging. (a) No later than six (6) months after the Restatement Date, and thereafter following entry into any Additional Debt Documents, six (6) months after the date of such Additional Debt Document, the Borrower shall enter into, and subsequently maintain in effect, one or more interest rate hedge transactions under Hedging Agreements to ensure that the notional principal amount hedged by the Hedging Agreements is, in aggregate:
(i) not less than twenty percent (20%); and
(ii) not more than one hundred percent (100%), of the Hedgeable Loan Amount (taking into account the amortization of the Loans) (such requirement, the “Hedging Requirement”); provided that if any principal amount remains outstanding under any fixed rate private placement notes issued by the Borrower and which constitute Additional Secured Debt (“PPN Principal”), an amount equivalent to such PPN Principal shall be credited towards the Hedging Requirement.
(b) The Borrower shall not terminate, break or otherwise cancel any Swap except (i) for the portion of a Swap relevant to a prepayment of a Loan or other Additional Secured Debt amount required or permitted in accordance with the Secured Debt Documents and (ii) where it is economically prudent and advantageous to do so in the circumstances provided that a termination, break or cancellation under (ii) shall not be permitted if it would otherwise breach the Hedging Requirement or if there is then at such time a Cash Sweep Event or if it would cause a Cash Sweep Event.
(c) Each Hedging Agreement shall provide that no transferee of a Hedge Counterparty under such Hedging Agreement shall be any Person other than a Person meeting the requirements for being a “Hedge Counterparty” hereunder.
Required Hedging. If on the last day of any Fiscal Quarter, the Eurodollar Base Rate is greater than 2.00% (based on an Interest Period of three months), the Borrower shall within 15 days thereof (or such later date as the Administrative Agent may agree), enter into and thereafter maintain Interest Rate Contracts with a Secured Hedging Counterparty to provide -91- protection against fluctuation of interest rates until the Term Maturity Date in a notional principal amount that equals at least 66.67% of the aggregate principal amount of the Term Loans outstanding at such time and taking into account the scheduled amortization thereof during the applicable period or on such other terms satisfactory to the Administrative Agent to protect the Borrower against increases in the Eurodollar Rate or the Base Rate, as the case may be, as such rates would reasonably impact the Term Loans. Any Hedge Agreement entered into by any Group Member shall be entered into solely for the purpose of hedging currency, interest rate and commodity price risks in the ordinary course of business and shall not be entered into for speculative purposes.
Required Hedging. The Administrative Agent shall have received evidence reasonably satisfactory to it that the Borrower shall have entered into the Lender Party Hedge Transactions described in Schedule 5.1.15. All such Lender Party Hedge Transactions will have a fixed price or floor prices and aggregate notional volumes acceptable to the Administrative Agent in its sole discretion.
Required Hedging. (a) No later than the date falling six (6) months after the Closing Date or, if earlier, the date on which the final Identified Vessel is added to the Security Assets, the Borrower shall enter into, and subsequently maintain in effect, one or more interest rate hedge transactions under Hedging Agreements to ensure that the notional principal amount hedged by the Hedging Agreements is, in aggregate:
(i) not less than twenty per cent. (20%); and
(ii) not more than one hundred per cent. (100%), of the Hedgeable Loan Amount (taking into account the amortization of the Loans) (such requirement, the “Hedging Requirement”).
(b) The Borrower shall not terminate, break or otherwise cancel any Swap except (i) for the portion of a Swap relevant to a prepayment of a Loan required or permitted hereunder and (ii) where it is economically prudent and advantageous to do so in the circumstances provided that a termination, break or cancellation under (ii) shall not be permitted if it would otherwise breach the Hedging Requirement or if there is then at such time a Cash Sweep Event or if it would cause a Cash Sweep Event.
(c) Each Hedging Agreement shall provide that no transferee of a Hedge Counterparty under such Hedging Agreement shall be any Person other than a Person meeting the requirements for being a “Hedge Counterparty” hereunder.
Required Hedging. Within thirty (30) days of the Effective Date, ---------------- Borrowers shall have (i) entered into xxxxxx satisfactory to Majority Banks covering Borrowers' Oil and Gas Properties with counterparties acceptable to the Banks and (ii) interest rate protection agreements satisfactory to Majority Banks providing interest rate protection.
Required Hedging. Not later than 90 days after the date of this Agreement, Borrower shall have entered into hedging transactions effectively converting interest rates on at least 75 percent of the projected outstanding balance of the Term Loan from floating to fixed or from shorter-term fixed to longer-term fixed for a term of not less than four years from the date of this Agreement.
Required Hedging. On or before 10 Business Days after the Effective Date, the Borrower shall enter into a Hedging Agreement with respect to at least 50% of the aggregate principal amount of the Term Loans, which Hedging Agreement (a) shall be maintained in effect by the Borrower until the Maturity Date in respect of the Term Loans and (b) provide for a rate cap, and be placed with counterparties, in each case that are acceptable to the Administrative Agent.
Required Hedging. On or before the date that is (I) thirty (30) days after the Closing Date (or such later date as may be agreed by the Administrative Agent) and (II) the date that each Reserve Report is delivered pursuant to Section 9.13(a) (each such date, a “Hedging Test Date”), Borrower or other Credit Parties shall enter into Hedge Agreements with a Secured Hedge Counterparty the net notional volumes for which (when aggregated with other commodity Hedge Agreements then in effect, other than puts, floors and basis differential swaps on volumes already hedged pursuant to other Hedge Agreements) are at least, as of each Hedging Test Date, (a) 75% of the reasonably anticipated crude oil production from the Credit Parties’ total Proved Developed Producing Reserves (as forecasted by the Borrower and acceptable to the Administrative Agent based upon the Initial Reserve Reports or the most recent Reserve Report delivered pursuant to Section 9.13(a), as applicable) for any month during the 24-month period from the applicable Hedging Test Date, and (b) 50% of the reasonably anticipated natural gas production from the Credit Parties’ total Proved Developed Producing Reserves (as forecasted by the Borrower and acceptable to the Administrative Agent based upon the Initial Reserve Reports or the most recent Reserve Report delivered pursuant to Section 9.13(a), as applicable) for any month during the 24- month period from the applicable Hedging Test Date; provided that notwithstanding the foregoing the Borrower or other Credit Parties shall not be required to enter into Hedge Agreements pursuant to this Section 9.18 for any month after the Maturity Date.
