TENTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
Exhibit 10.1
TENTH AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS TENTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), effective as of the 29th day of October, 2012 (the “Effective Date”), is entered into by and among MAGNUM HUNTER RESOURCES CORPORATION, a Delaware corporation (the “Borrower”), the guarantors party hereto (the “Guarantors”), the lenders party hereto (the “Lenders”) and BANK OF MONTREAL, as administrative agent for the Lenders (the “Administrative Agent”).
RECITALS
WHEREAS, the Borrower, the Lenders and the Administrative Agent entered into that certain Second Amended and Restated Credit Agreement dated April 13, 2011 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and
WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent amend certain provisions of the Credit Agreement; and
WHEREAS, said parties are willing to so amend the Credit Agreement subject to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth in this Amendment, the Borrower, the Guarantors, the Lenders and the Administrative Agent agree as follows:
1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein have the meanings assigned to them in the Credit Agreement.
2. Amendment to Section 1.02. Section 1.02 of the Credit Agreement is hereby amended to restate the definition of “Disqualified Capital Stock” in its entirety as follows:
“Disqualified Capital Stock” means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable) or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is convertible or exchangeable for Debt or redeemable for any consideration other than other Equity Interests (which would not constitute Disqualified Capital Stock) at the option of the holder thereof, in whole or in part, on or prior to the date that is one year after the earlier of (a) the Maturity Date and (b) the date on which there are no Loans, LC Exposure or other obligations hereunder outstanding and all of the Commitments are terminated; provided, however, Disqualified Capital Stock shall not include Series C, Series D or Series E preferred stock permitted
under Section 9.02, so long as any dividends paid with respect thereto comply with the provisions of Section 9.04.
3. Amendment to Section 9.02. Section 9.02 of the Credit Agreement is hereby amended to restate clause (q) thereof in its entirety as follows:
“(q) obligations with respect to Series E preferred stock issued by the Borrower on substantially the same terms as disclosed to the Lenders in writing prior to the issuance thereof under certificates of designation therefor filed by the Borrower with the Secretary of State of Delaware, so long as any dividends with respect thereto comply with the provisions of Section 9.04;”.
4. Amendment to Section 9.04. Section 9.04 of the Credit Agreement is hereby amended to restate clause (c) thereof in its entirety as follows:
“(c) without limiting the dividends permitted by Section 9.04(b), the Borrower may declare and pay cash dividends on its Series C, Series D and Series E preferred stock permitted hereunder so long as (i) no Event of Default exists at the time of, or is caused by, such payment, (ii) after giving effect to such payment, availability under the Borrowing Base is equal to or greater than the greater of (x) two and one-half percent (2.5%) of the Borrowing Base then in effect and (y) $5,000,000, and (iii) such dividends do not exceed $25,000,000 in the aggregate in any calendar year;”.
5. Ratification. Each of the Borrower and the Guarantors hereby ratifies all of its respective obligations under the Credit Agreement and each of the Loan Documents to which it is a party, and agrees and acknowledges that the Credit Agreement and each of the Loan Documents to which it is a party are and shall continue to be in full force and effect as amended and modified by this Amendment. Except as provided herein, nothing in this Amendment extinguishes, novates or releases any right, claim, lien, security interest or entitlement of any of the Lenders or the Administrative Agent created by or contained in any of such documents nor is the Borrower nor any Guarantor released from any covenant, warranty or obligation created by or contained herein or therein.
6. Representations and Warranties. The Borrower and Guarantors hereby represent and warrant to the Administrative Agent and the Lenders that (a) this Amendment has been duly executed and delivered on behalf of the Borrower and Guarantors, (b) this Amendment constitutes a valid and legally binding agreement enforceable against the Borrower and Guarantors in accordance with its terms, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law, (c) the representations and warranties contained in the Credit Agreement and the Loan Documents are true and correct on and as of the date hereof in all material respects as though made as of 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 as of such specified earlier date), (d) no Default or Event of Default exists under the Credit Agreement or under any Loan Document as of the Effective Date and (e) the execution, delivery and performance of this Amendment has been duly authorized by the Borrower and Guarantors.
7. Conditions to Effectiveness. This Amendment shall be effective on the Effective Date upon satisfaction of the following conditions:
(a) the Borrower, the Guarantors and the Required Lenders shall have executed and delivered to the Administrative Agent counterparts of this Amendment; and
(b) the Borrower shall have paid to the Administrative Agent and the Lenders all fees and expenses that are due in connection with this Amendment.
8. Counterparts. This Amendment may be signed in any number of counterparts, which may be delivered in original, electronic or facsimile form each of which shall be construed as an original, but all of which together shall constitute one and the same instrument.
9. Governing Law. This Amendment, all Notes, the other Loan Documents and all other documents executed in connection herewith shall be deemed to be contracts and agreements under the laws of the State of New York and of the United States of America and for all purposes shall be construed in accordance with, and governed by, the laws of New York and of the United States.
10. Final Agreement of the Parties. Any previous agreement among the parties with respect to the subject matter hereof is superseded by the Credit Agreement, as amended by this Amendment. Nothing in this Amendment, express or implied is intended to confer upon any party other than the parties hereto any rights, remedies, obligations or liabilities under or by reason of this Amendment.
[Signature Pages Follow]
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized as of the Effective Date.
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BORROWER: | |||
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MAGNUM HUNTER RESOURCES | |||
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CORPORATION, a Delaware corporation | |||
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By: |
/s/ Xxxxxx X. Xxxxxx | ||
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Xxxxxx X. Xxxxxx | ||
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Chief Financial Officer | ||
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GUARANTORS: | |||
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PRC WILLISTON, LLC, | |||
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a Delaware limited liability company | |||
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By: |
Magnum Hunter Resources Corporation, | ||
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its sole member | ||
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By: |
/s/ Xxxxxx X. Xxxxxx | |
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Xxxxxx X. Xxxxxx | |
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Chief Financial Officer | |
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MAGNUM HUNTER RESOURCES LP, | |||
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a Delaware limited partnership | |||
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By: |
Magnum Hunter Resources GP, LLC, | ||
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its general partner | ||
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By: |
Magnum Hunter Resources Corporation, | |
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its sole member | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Xxxxxx X. Xxxxxx |
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Chief Financial Officer |
Signature Page to Tenth Amendment to Credit Agreement
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MAGNUM HUNTER RESOURCES GP, LLC, | |||
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a Delaware limited liability company | |||
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By: |
Magnum Hunter Resources Corporation, | ||
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its sole member | ||
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By: |
/s/ Xxxxxx X. Xxxxxx | |
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Xxxxxx X. Xxxxxx | |
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Chief Financial Officer | |
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TRIAD HUNTER, LLC, | |||
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a Delaware limited liability company | |||
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By: |
/s/ Xxxxxx X. Xxxxxx | ||
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Xxxxxx X. Xxxxxx | ||
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Vice President | ||
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EAGLE FORD HUNTER, INC., | |||
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a Colorado corporation | |||
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By: |
/s/ Xxxxxx X. Xxxxxx | ||
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Xxxxxx X. Xxxxxx | ||
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Secretary | ||
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MAGNUM HUNTER PRODUCTION INC., | |||
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a Kentucky corporation | |||
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By: |
/s/ Xxxxxx X. Xxxxxx | ||
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Xxxxxx X. Xxxxxx | ||
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Chief Financial Officer | ||
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NGAS HUNTER, LLC | |||
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By: |
/s/ Xxxxxx X. Xxxxxx | ||
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Xxxxxx X. Xxxxxx | ||
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Vice President and Treasurer | ||
Signature Page to Tenth Amendment to Credit Agreement
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MHR CALLCO CORPORATION, | |
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a corporation existing under the laws of the Province of Alberta | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Xxxxxx X. Xxxxxx |
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Vice President |
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MHR EXCHANGECO CORPORATION, | |
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a corporation existing under the laws of the Province of Alberta | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Xxxxxx X. Xxxxxx |
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Vice President |
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WILLISTON HUNTER CANADA, INC., | |
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a corporation existing under the laws of the Province of Alberta | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Xxxxxx X. Xxxxxx |
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Executive Vice President and Chief Financial Officer |
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WILLISTON HUNTER INC., | |
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a Delaware corporation | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Xxxxxx X. Xxxxxx |
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Executive Vice President and Chief Financial Officer |
Signature Page to Tenth Amendment to Credit Agreement
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WILLISTON HUNTER ND, LLC, | |
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a Delaware limited liability company | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Xxxxxx X. Xxxxxx |
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Vice President and Treasurer |
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XXXXXX XXXXXX, LLC, | |
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a Delaware limited liability company | |
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By: |
/s/ Xxxxxx X. Xxxxxx |
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Xxxxxx X. Xxxxxx |
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Executive Vice President |
Signature Page to Tenth Amendment to Credit Agreement
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ADMINISTRATIVE AGENT AND LENDER: | |
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BANK OF MONTREAL | |
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By: |
/s/ Xxxxxx Xxxxxxxx |
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Xxxxxx Xxxxxxxx |
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Director |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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CAPITAL ONE, NATIONAL ASSOCIATION | |
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By: |
/s/ Xxxxxxx X. Xxxxxx |
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Name: |
Xxxxxxx X. Xxxxxx |
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Title: |
Vice President |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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CITIBANK, N.A. | |
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By: |
/s/ Eamon Baquz |
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Name: |
Eamon Baquz |
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Title: |
Vice President |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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DEUTSCHE BANK TRUST COMPANY AMERICAS | |
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By: |
/s/ Xxxxxxx Xxxx |
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Name: |
Xxxxxxx Xxxx |
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Title: |
Vice President |
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By: |
/s/ Xxxxxx X. Xxxxxxxxxx |
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Name: |
Xxxxxx X. Xxxxxxxxxx |
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Title: |
Director |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER | |
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ROYAL BANK OF CANADA | |
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By: |
/s/ Xxxxxxx Xxxxxx |
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Name: |
Xxxxxxx Xxxxxx |
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Title: |
Authorized Signatory |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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UBS LOAN FINANCE LLC | |
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By: |
/s/ Xxxx X. Xxxx |
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Name: |
Xxxx X. Xxxx |
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Title: |
Associate Director |
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By: |
/s/ Xxxxxxx Xxxx |
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Name: |
Xxxxxxx Xxxx |
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Title: |
Director |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER | |
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ABN AMRO CAPITAL USA LLC | |
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By: |
/s/ Xxxxxxx Xxxxxx |
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Name: |
Xxxxxxx Xxxxxx |
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Title: |
Managing Director |
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By: |
/s/ Xxxxx Xxxxxx |
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Name: |
Xxxxx Xxxxxx |
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Title: |
Director |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER | |
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BANK OF AMERICA, N.A. | |
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By: |
/s/ Xxxxxxx Xxxxxxxx |
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Name: |
Xxxxxxx Xxxxxxxx |
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Title: |
Managing Director |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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KEYBANK NATIONAL ASSOCIATION | |
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By: |
/s/ Xxxx X. Xxxx |
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Name: |
Xxxx X. Xxxx |
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Title: |
Senior Vice President |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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SUNTRUST BANK | |
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By: |
/s/ Xxxx Xxxxx |
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Name: |
Xxxx Xxxxx |
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Title: |
Director |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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AMEGY BANK NATIONAL ASSOCIATION | |
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By: |
/s/ Xxxx X. Xxxxxx |
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Name: |
Xxxx X. Xxxxxx |
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Title: |
Senior Vice President |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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CREDIT SUISSE AG, Cayman Islands Branch | |
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By: |
/s/ Xxxxxxxxxxx Reo Day |
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Name: |
Xxxxxxxxxxx Reo Day |
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Title: |
Vice President |
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By: |
/s/ Xxxxxxx Xxxxxx |
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Name: |
Xxxxxxx Xxxxxx |
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Title: |
AVP |
Signature Page to Tenth Amendment to Credit Agreement
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LENDER: | |
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XXXXXXX XXXXX BANK USA | |
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By: |
/s/ Xxxxxxxx Xxxxxx |
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Name: |
Xxxxxxxx Xxxxxx |
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Title: |
Authorized Signatory |
Signature Page to Tenth Amendment to Credit Agreement
