FOURTH AMENDMENT TO SECOND LIEN TERM LOAN CREDIT AGREEMENT
Exhibit 10.4
FOURTH AMENDMENT TO
SECOND LIEN TERM LOAN CREDIT AGREEMENT
THIS FOURTH AMENDMENT TO SECOND LIEN TERM LOAN CREDIT AGREEMENT (this “Amendment”), effective as of the 2nd day of May, 2012 (the “Third Amendment 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 CAPITAL ONE, NATIONAL ASSOCIATION, as administrative agent for the Lenders (the “Administrative Agent”).
RECITALS
WHEREAS, the Borrower, the Lenders and the Administrative Agent entered into that certain Second Lien Term Loan Credit Agreement dated September 28, 2011 (as amended by the First Amendment to Second Lien Term Loan Credit Agreement effective as of December 6, 2011, the Second Amendment to Second Lien Term Loan Credit Agreement effective as of February 14, 2012, the Third Amendment to Second Lien Term Loan Credit Agreement effective as of May 2, 2012 and as further amended or restated 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 9.01. Section 9.01 of the Credit Agreement is hereby amended to restate paragraph (a) thereof in its entirety as follows:
“(a) Current Ratio. Commencing with the fiscal quarter ending March 31, 2011, the Borrower will not permit, as of the last day of any fiscal quarter, its ratio of (i) consolidated current assets of the Borrower and the Restricted Subsidiaries (including the unused amount of the total Commitments, but excluding non-cash assets under FAS 133) to (ii) consolidated current liabilities of the Borrower and the Restricted Subsidiaries (excluding non-cash obligations under FAS 133) (such ratio, the “Current Ratio”) to be less than 1.0 to 1.0; provided, that, in the event the Borrower does not consummate the Baytex Acquisition, then, with respect to the fiscal quarter ending June 30, 2012 only, (A) the Borrower shall
not permit the Current Ratio to be less than 0.80 to 1.0, and (B) the Borrower shall be permitted to effect an Interim Redetermination by July 31, 2012, utilizing a Reserve Report dated on or about June 30, 2012, and such redetermined Borrowing Base shall be used to calculate the Current Ratio as of and for the fiscal quarter ending June 30, 2012.
3. 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.
4. 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 Fourth Amendment Effective Date and (e) the execution, delivery and performance of this Amendment has been duly authorized by the Borrower and Guarantors.
5. Conditions to Effectiveness. This Amendment shall be effective on the Fourth Amendment 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.
6. 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.
7. 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.
8. 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 Fourth Amendment Effective Date.
|
|
BORROWER: | ||
|
|
| ||
|
|
MAGNUM HUNTER RESOURCES CORPORATION, | ||
|
|
a Delaware corporation | ||
|
|
| ||
|
|
| ||
|
|
By: |
/s/ Xxxxxx X. Xxxxxx | |
|
|
|
Xxxxxx X. Xxxxxx | |
|
|
|
Chief Financial Officer | |
|
|
|
| |
|
|
|
| |
|
|
GUARANTORS: | ||
|
|
| ||
|
|
PRC WILLISTON, LLC, | ||
|
|
a Delaware limited liability company | ||
|
|
| ||
|
|
By: |
Magnum Hunter Resources Corporation, | |
|
|
|
its sole member | |
|
|
| ||
|
|
| ||
|
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
|
Chief Financial Officer |
|
|
| ||
|
|
MAGNUM HUNTER RESOURCES LP, | |||
|
|
a Delaware limited partnership | |||
|
|
| |||
|
|
| |||
|
|
By: |
Magnum Hunter Resources GP, LLC, | ||
|
|
|
its general partner | ||
|
|
| |||
|
|
|
By: |
Magnum Hunter Resources Corporation, | |
|
|
|
|
its sole member | |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
|
|
Chief Financial Officer |
Signature Page to Fourth Amendment to Credit Agreement
|
|
MAGNUM HUNTER RESOURCES GP, LLC, | ||
|
|
a Delaware limited liability company | ||
|
|
| ||
|
|
By: |
Magnum Hunter Resources Corporation, | |
|
|
|
its sole member | |
|
|
|
| |
|
|
|
| |
|
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
|
Chief Financial Officer |
|
|
| |
|
|
TRIAD HUNTER, LLC, | |
|
|
a Delaware limited liability company | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Vice President |
|
|
|
|
|
|
| |
|
|
EAGLE FORD HUNTER, INC., | |
|
|
a Colorado corporation | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Secretary |
|
|
|
|
|
|
| |
|
|
MAGNUM HUNTER PRODUCTION INC., | |
|
|
a Kentucky corporation | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Chief Financial Officer |
|
|
|
|
|
|
| |
|
|
NGAS HUNTER, LLC | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Vice President and Treasurer |
Signature Page to Fourth Amendment to Credit Agreement
|
|
MHR CALLCO CORPORATION, | |
|
|
a corporation existing under the laws of the Province of Alberta | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Vice President |
|
|
|
|
|
|
| |
|
|
MHR EXCHANGECO CORPORATION, | |
|
|
a corporation existing under the laws of the Province of Alberta | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Vice President |
|
|
|
|
|
|
| |
|
|
WILLISTON HUNTER CANADA, INC., | |
|
|
a corporation existing under the laws of the Province of Alberta | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Executive Vice President and Chief Financial Officer |
|
|
|
|
|
|
| |
|
|
WILLISTON HUNTER INC., | |
|
|
a Delaware corporation | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Executive Vice President and Chief Financial Officer |
Signature Page to Fourth Amendment to Credit Agreement
|
|
WILLISTON HUNTER ND, LLC, | |
|
|
a Delaware limited liability company | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Vice President and Treasurer |
|
|
|
|
|
|
| |
|
|
XXXXXX XXXXXX, LLC, | |
|
|
a Delaware limited liability company | |
|
|
| |
|
|
| |
|
|
By: |
/s/ Xxxxxx X. Xxxxxx |
|
|
|
Xxxxxx X. Xxxxxx |
|
|
|
Executive Vice President |
Signature Page to Fourth Amendment to Credit Agreement
|
|
ADMINISTRATIVE AGENT AND LENDER: | |
|
|
| |
|
|
CAPITAL ONE, NATIONAL ASSOCIATION | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxxxxxx Xxxxxx |
|
|
Name: |
Xxxxxxx Xxxxxx |
|
|
Title: |
Vice President |
Signature Page to Fourth Amendment to Credit Agreement
|
|
LENDER: | |
|
|
| |
|
|
BMO XXXXXX FINANCING, INC. | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxxxxx X. Xxxxx |
|
|
Name: |
Xxxxxx X. Xxxxx |
|
|
Title: |
Managing Director |
Signature Page to Fourth Amendment to Credit Agreement
|
|
LENDER: | |
|
|
| |
|
|
CITIBANK, N.A. | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxx Xxxxxxxxxxxx |
|
|
Name: |
Xxx Xxxxxxxxxxxx |
|
|
Title: |
Vice President |
Signature Page to Fourth Amendment to Credit Agreement
|
|
LENDER: | |
|
|
| |
|
|
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxxxxxx Xxxxx |
|
|
Name: |
Xxxxxxx Xxxxx |
|
|
Title: |
Vice President |
Signature Page to Fourth Amendment to Credit Agreement
|
|
LENDER: | |
|
|
| |
|
|
SUNTRUST BANK | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxxxx Xxxxxx |
|
|
Name: |
Xxxxx Xxxxxx |
|
|
Title: |
Director |
Signature Page to Fourth Amendment to Credit Agreement
|
|
LENDER: | |
|
|
| |
|
|
DEUTSCHE BANK TRUST COMPANY AMERICAS | |
|
|
| |
|
|
|
|
|
|
By: |
/s/ Xxxxxxx Xxxx |
|
|
Name: |
Xxxxxxx Xxxx |
|
|
Title: |
Vice President |
|
|
|
|
|
|
|
|
|
|
By: |
/s/ Xxxxxx X. Xxxxxxxxxx |
|
|
Name: |
Xxxxxx X. Xxxxxxxxxx |
|
|
Title: |
Director |
Signature Page to Fourth Amendment to Credit Agreement
