FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
EXHIBIT 10.1
FIFTH AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
This Fifth Amendment to Second Amended and Restated Credit Agreement (this “Amendment”) dated as of August 30, 2012, is by and among Xxxxxxx Xxxxxxxx Energy, Inc., a Delaware corporation (the “Borrower”), certain Subsidiaries of the Borrower as Guarantors, the Lenders party hereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”). Unless the context otherwise requires or unless otherwise expressly defined herein, capitalized terms used but not defined in this Amendment have the meanings assigned to such terms in the Credit Agreement (as defined below).
WITNESSETH:
WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the Lenders entered into that certain Second Amended and Restated Credit Agreement dated as of November 29, 2010 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”);
WHEREAS, the Borrower and the Guarantors have requested that the Administrative Agent and the Lenders amend the Credit Agreement in certain respects and the Administrative Agent and the Lenders have agreed to do so on the terms and conditions hereinafter set forth.
NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, the Borrower, the Guarantors, the Administrative Agent and the Lenders hereby agree as follows:
SECTION 1.Amendments to the Credit Agreement. Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 3 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Amendment, the Credit Agreement shall be amended in the manner provided in this Section 1.
1.1 Cover Page. The “$500,000,000” on the Cover Page to the Credit Agreement shall be and it hereby is amended to read “$555,000,000”.
1.2 Amended Definitions. The following definitions in Section 1.01 of the Credit Agreement shall be and they hereby are amended in their entirety to read as follows:
“Aggregate Commitment” means, at any time, the sum of the Commitments of all of the Lenders at such time. As of the Fifth Amendment Effective Date, the Aggregate Commitment is $555,000,000.
“Commitment” means, with respect to each Lender, the commitment of such Lender to make Loans and to acquire participations in Letters of Credit hereunder, expressed as an amount representing the maximum aggregate amount of such Lender's Credit Exposure hereunder at such time, as such commitment may be (a) reduced from time to time pursuant to Section 2.02, (b) increased from time to time as a result of such Lender delivering a Lender Certificate pursuant to Section 2.03, and (c) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 11.04. The amount of each Lender's
Commitment shall be at any time the least of (i) such Lender's Maximum Credit Amount, (ii) such Lender's Applicable Percentage of the Borrowing Base then in effect or (iii) such Lender's Applicable Percentage of $555,000,000. The amount of each Lender's Commitment as of the Fifth Amendment Effective Date is set forth on Schedule 2.01.
1.3 New Definition. The following definition shall be and it hereby is added to Section 1.01 of the Credit Agreement in alphabetical order:
“Fifth Amendment Effective Date” means August 30, 2012.
1.4 Flood Insurance Regulation. Article XI of the Credit Agreement shall be and it hereby is amended by adding a new Section 11.20 to the end thereof to read as follows:
Section 11.20. Flood Insurance Regulation. Notwithstanding any provision in any Mortgage to the contrary, in no event is any Building (as defined in the applicable Flood Insurance Regulation) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulation) located on the Mortgaged Properties within an area having special flood hazards and in which flood insurance is available under the National Flood Insurance Act of 1968 included in the definition of “Mortgaged Properties” and no such Building or Manufactured (Mobile) Home shall be encumbered by any Mortgage. As used herein, “Flood Insurance Regulations” shall mean (i) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statue thereto, (iii) the National Flood Insurance Reform Act of 1994 (amending 42 USC 4001, et seq.), as the same may be amended or recodified from time to time, and (iv) the Flood Insurance Reform Act of 2004 and any regulations promulgated thereunder.
1.5 Schedule 2.01. Schedule 2.01 to the Credit Agreement shall be and it hereby is replaced with Schedule 2.01 to this Amendment.
SECTION 2.Reallocation of Commitments and Loans. The Lenders have agreed among themselves to reallocate their respective Commitments on the date this Amendment becomes effective and, after giving effect to such reallocation, the Commitment and Applicable Percentage of each Lender shall be as set forth on Schedule 2.01 attached to this Amendment. With respect to such reallocation, each Lender shall fund its portion of the Loans, as determined by the Administrative Agent, to the Administrative Agent such that, after giving effect thereto, the principal amount of each Lender's outstanding Loans shall be and be deemed to be equal to its Applicable Percentage of the aggregate outstanding principal amount of all Loans. The Administrative Agent hereby waives the $3,500 processing and recordation fee set forth in Section 11.04(b)(ii)(C) of the Credit Agreement with respect to the assignments and reallocations contemplated by this Section 2. To the extent requested by any Lender, the Borrower shall pay to such Lender, within the time period prescribed by Section 2.16 of the Credit Agreement, any amounts required to be paid by the Borrower under Section 2.16 of the Credit Agreement in the event the payment of any principal of any Eurodollar Loan or the conversion of any Eurodollar Loan other than on the last day of an Interest Period applicable thereto is required in connection with the reallocation contemplated by this Section 2.
SECTION 3.Conditions. The amendments to the Credit Agreement set forth in Section 1 of this Amendment and the reallocations and assignments contained in Section 2 of this Amendment shall be effective upon the satisfaction of each of the conditions set forth in this Section 3.
3.1 Execution and Delivery. The Borrower, each Guarantor and the Lenders shall have executed and delivered this Amendment and any other documents requested by the Administrative Agent prior to the date hereof, all in form and substance satisfactory to the Administrative Agent.
3.2 Fees and Expenses. The Borrower shall have paid (or contemporaneously with this Amendment becoming effective, will pay) to the Administrative Agent, for the benefit of the Lenders, the amounts separately agreed upon among the Borrower, the Lead Arranger and the Administrative Agent and all reasonable invoiced fees and expenses required to be paid on or before the effectiveness of this Amendment.
3.3 No Default. No Default shall have occurred and be continuing.
3.4 Other Documents. The Administrative Agent shall have received such other instruments and documents incidental and appropriate to the transaction provided for herein as the Administrative Agent or its special counsel may reasonably request prior to the date hereof, and all such documents shall be in form and substance satisfactory to the Administrative Agent.
SECTION 4.Representations and Warranties of the Borrower. To induce the Lenders to enter into this Amendment, each Credit Party hereby represents and warrants to the Lenders as follows:
4.1 Reaffirmation of Representations and Warranties. After giving effect to the amendments herein, each representation and warranty of the Borrower or any Guarantor contained in the Credit Agreement or in any of the other Loan Documents is true and correct in all material respects on the date hereof (except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects as of such specified earlier date).
4.2 Corporate Authority; No Conflicts. The execution, delivery and performance by the Borrower and each Guarantor (to the extent a party hereto or thereto) of this Amendment and all documents, instruments and agreements contemplated herein are within the Borrower's or such Guarantor's corporate or other organizational powers, have been duly authorized by necessary action, require no action by or in respect of, or filing with, any court or agency of government and do not violate or constitute a default under any provision of any applicable law or other agreements binding upon the Borrower or any Guarantor or result in the creation or imposition of any Lien upon any of the assets of the Borrower or any Guarantor except as otherwise permitted in the Credit Agreement.
4.3 Enforceability. This Amendment constitutes the valid and binding obligation of the Borrower and each Guarantor enforceable in accordance with its terms, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor's rights generally, and (ii) the availability of equitable remedies may be limited by equitable principles of general application.
SECTION 5.Miscellaneous.
5.1 Reaffirmation of Loan Documents and Liens. Any and all of the terms and provisions of the Credit Agreement and the other Loan Documents shall, except as amended and modified hereby, remain in full force and effect. Each Credit Party hereby agrees that the amendments and modifications herein contained shall not impair its liabilities, duties and obligations under the Credit Agreement and the other Loan Documents to which it is a party or the Liens granted by it securing the payment and performance thereof. The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender, the Issuing Bank or the Administrative Agent under any of the Loan
Documents, nor, except as expressly provided herein, constitute a waiver or amendment of any provision of any of the Loan Documents. Upon and after the execution of this Amendment by each of the parties hereto, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified hereby. This Amendment is a Loan Document, and all provisions in the Credit Agreement pertaining to Loan Documents apply hereto.
5.2 Parties in Interest. All of the terms and provisions of this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.
5.3 Legal Expenses. The Borrower hereby agrees to pay all reasonable fees and expenses of special counsel to the Administrative Agent incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and all related documents.
5.4 Counterparts. This Amendment may be executed in one or more counterparts and by different parties hereto in separate counterparts each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. However, this Amendment shall bind no party until the Borrower, the Guarantors, the Lenders (or at least the requisite percentage thereof), and the Administrative Agent have executed a counterpart. Delivery of photocopies of the signature pages to this Amendment by facsimile or electronic mail shall be effective as delivery of manually executed counterparts of this Amendment.
5.5 Complete Agreement. THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
5.6 Headings. The headings, captions and arrangements used in this Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Amendment, nor affect the meaning thereof.
5.7 Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
[Remainder of Page Intentionally Blank. Signature Pages Follow.]
IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed as of the date first above written.
BORROWER: XXXXXXX XXXXXXXX ENERGY, INC. a Delaware corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
GUARANTORS: SOUTHWEST ROYALTIES, INC. a Delaware corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
WARRIOR GAS CO. a Texas corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
CWEI ACQUISITIONS, INC. a Delaware corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
XXXXXX PASS ACQUISITION L.L.C. a Delaware limited liability company By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
CWEI XXXXXX PASS ACQUISITION CORP. a Delaware corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
BLUE HEEL COMPANY a Delaware corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
TEX-HAL PARTNERS, INC. a Delaware corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
XXXXX DRILLING GP, LLC a Texas limited liability company By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
XXXXX DRILLING, L.P. a Texas limited partnership By:Xxxxx Drilling GP, LLC, its general partner By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
WEST COAST ENERGY PROPERTIES GP, LLC a Texas limited liability company By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
CLAJON INDUSTRIAL GAS, INC. a Texas corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
XXXXXXX XXXXXXXX PIPELINE CORPORATION a Delaware corporation By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
SWR VPP, LLC a Texas limited liability company By:Southwest Royalties, Inc., its sole member By: /s/ Xxxxxxx X. Xxxxxxx Xxxxxxx X. Xxxxxxx, Senior Vice President | |
JPMORGAN CHASE BANK, N.A., as
Administrative Agent, Issuing Bank and a Lender
By: /s/ Xxxxx Xxxxxx
Name: Xxxxx Xxxxxx
Title: Authorized Officer
BANK OF SCOTLAND plc,
as Syndication Agent and a Lender
By: /s/ Xxxxxxx Xxxxxxxxx
Name: Xxxxxxx Xxxxxxxxx
Title: Assistant Vice President
UNION BANK, N.A.,
as Co-Documentation Agent and a Lender
By: /s/ Xxxxxx Xxxxx
Name: Xxxxxx Xxxxx
Title: Vice President
XXXXX FARGO BANK, N.A.
as Co-Documentation Agent and a Lender
By: /s/ Xxxxxx Xxx
Name: Xxxxxx Xxx
Title: Director
NATIXIS (formerly Natexis Banques Populaires),
as a Lender
By: /s/ Xxxx Xxx Xxxxx
Name: Xxxx Xxx Xxxxx
Title: Director
By: /s/ Xxxxx X. Xxxxxxx, III
Name: Xxxxx X. Xxxxxxx, III
Title: Managing Director
COMPASS BANK,
as a Lender
By: /s/ Xxxxxxxx X. Xxxxx
Name: Xxxxxxxx X. Xxxxx
Title: Senior Vice President
FROST BANK,
as a Lender
By: /s/ Xxxx Xxxxxxxx
Name: Xxxx Xxxxxxxx
Title: Vice President
KEYBANK NATIONAL ASSOCIATION,
as a Lender
By: /s/ Xxxxx Xxxxxxxxx
Name: Xxxxx Xxxxxxxxx
Title: Vice President
UBS LOAN FINANCE LLC,
as a Lender
By: /s/ Xxxx X. Xxxx
Name: Xxxx X. Xxxx
Title: Associate Director
By: /s/ Xxxx X. Xxxxx
Name: Xxxx X. Xxxxx
Title: Associate Director
THE ROYAL BANK OF SCOTLAND plc,
as a Lender
By: /s/ Xxxxxx Xxxxxx
Name: Xxxxxx Xxxxxx
Title: Authorized Signatory
65682132.5 SCHEDULE 2.01
SCHEDULE 2.01
APPLICABLE PERCENTAGES AND COMMITMENTS
Lender | Title | Applicable Percentage | Commitment as of the Fifth Amendment Effective Date | Maximum Credit Amount | |||||
JPMorgan Chase Bank, N.A. | Administrative Agent | 20.41184041 | % | $ | 113,285,714.26 | $ | 115,326,898.30 | ||
Union Bank, N.A. | Co-Documentation Agent | 11.63449161 | % | $ | 64,571,428.41 | $ | 65,734,877.57 | ||
Xxxxx Fargo Bank, N.A. | Co-Documentation Agent | 11.63449161 | % | $ | 64,571,428.41 | $ | 65,734,877.57 | ||
Bank of Scotland plc | Syndication Agent | 9.78120976 | % | $ | 54,285,714.15 | $ | 55,263,835.12 | ||
The Royal Bank of Scotland plc | 8.72586876 | % | $ | 48,428,571.59 | $ | 49,301,158.47 | |||
Compass Bank | 8.00000000 | % | $ | 48,428,571.59 | $ | 49,301,158.47 | |||
The Frost National Bank | 8.00000000 | % | $ | 48,428,571.59 | $ | 49,301,158.47 | |||
Natixis | 7.27155723 | % | $ | 40,357,142.62 | $ | 41,084,298.34 | |||
KeyBank National Association | 7.27155723 | % | $ | 40,357,142.62 | $ | 41,084,298.34 | |||
UBS Loan Finance LLC | 5.8172459 | % | $ | 32,285,714.76 | $ | 32,867,439.35 | |||
TOTAL: | 100 | % | $ | 555,000,000.00 | $ | 565,000,000.00 | |||
