AMENDMENT NO. 3 AND CONSENT
Exhibit 4.1
AMENDMENT NO. 3 AND CONSENT
This Amendment No. 3 and Consent (“Agreement”) dated as of April 23, 2007 (“Effective Date”)
is among Mariner Energy, Inc., a Delaware corporation (the “Parent”), Mariner Energy Resources,
Inc., a Delaware corporation (“Mariner Energy Resources” and together with the Parent, the
“Borrowers”, each a “Borrower”), the Lenders (as defined in the Credit Agreement described below),
and Union Bank of California, N.A., as administrative agent for such Lenders (in such capacity, the
“Administrative Agent”) and as issuing lender for such Lenders (in such capacity, the “Issuing
Lender”).
RECITALS
A. The Borrowers, the Lenders, the Issuing Lender and the Administrative Agent are parties to
the Amended and Restated Credit Agreement dated as of March 2, 2006, as amended by Amendment No. 1
and Consent dated as of April 7, 2006 and by Amendment No. 2 dated as of October 13, 2006 (as so
amended and as the same may be further amended, restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”).
B. The Parent wishes to issue up to $300,000,000 of new Debt (as defined in the Credit
Agreement). In connection with such issuance, the Borrowers have requested that the Lenders (a)
consent to maintaining the Borrowing Base (as defined in the Credit Agreement) at its current
amount and (b) amend certain provisions of the Credit Agreement.
C. At the request of the Borrowers, the Administrative Agent and the Lenders wish to, subject
to the terms and conditions of this Agreement, (1) consent to the Borrowing Base remaining in
effect at its current amount, and (2) amend certain provisions of the Credit Agreement.
THEREFORE, the Borrowers, the subsidiaries of the Borrowers signatory hereto (the
“Guarantors”), the Lenders, the Issuing Lender and the Administrative Agent hereby agree as
follows:
ARTICLE I.
DEFINITIONS
DEFINITIONS
Section 1.01 Terms Defined Above. As used in this Agreement, each of the terms
defined in the opening paragraph and the Recitals above shall have the meanings assigned to such
terms therein.
Section 1.02 Terms Defined in the Credit Agreement. Each term defined in the Credit
Agreement and used herein without definition shall have the meaning assigned to such term in the
Credit Agreement, unless expressly provided to the contrary.
Section 1.03 Other Definitional Provisions. The words “hereby”, “herein”,
“hereinafter”, “hereof”, “hereto” and “hereunder” when used in this Agreement shall refer to this
Agreement as a whole and not to any particular Article, Section, subsection or provision of this
Agreement. Article, Section, subsection and Exhibit references herein are to such Articles, Sections, subsections and Exhibits of this Agreement unless otherwise specified. All titles or
headings to Articles, Sections, subsections or other divisions of this Agreement or the exhibits
hereto, if any, are only for the convenience of the parties and shall not be construed to have any
effect or meaning with respect to the other content of such Articles, Sections, subsections, other
divisions or exhibits, such other content being controlling as the agreement among the parties
hereto. Whenever the context requires, reference herein made to the single number shall be
understood to include the plural; and likewise, the plural shall be understood to include the
singular. Words denoting sex shall be construed to include the masculine, feminine and neuter,
when such construction is appropriate; and specific enumeration shall not exclude the general but
shall be construed as cumulative. Definitions of terms defined in the singular or plural shall be
equally applicable to the plural or singular, as the case may be, unless otherwise indicated.
ARTICLE II.
AMENDMENT TO CREDIT AGREEMENT
AMENDMENT TO CREDIT AGREEMENT
Section 2.01 Amendments to Credit Agreement.
(a) Section 1.01 of the Credit Agreement is amended by deleting the first clause of the
definition of “Bond Issuance” in its entirety and replacing it with the following:
"“Bond Issuance” means the issuance by the Parent of up to
$600,000,000 of Debt”; and
(b) Section 6.02(h) of the Credit Agreement is amended by deleting such sub-Section in its
entirety and replacing it with the following:
"(h) Debt arising pursuant to the Bond Issuance and any refinancing
thereof with another Bond Issuance; provided that, the aggregate
outstanding principal amount of all Bond Issuances at any time may not
exceed $600,000,000;”.
ARTICLE III.
CONSENT
CONSENT
Section 3.01 Consent. Subject to the terms of this Agreement, the Administrative
Agent and the Lenders agree that if the Parent issues new Debt in the form of a Bond Issuance (a)
that is in an aggregate amount not to exceed $300,000,000 and (b) with an effective date that is no
later than April 30, 2007 (the “2007 Bond Issuance”), the provisions of Section 2.02(e)
regarding a reduction of the Borrowing Base shall not apply to such 2007 Bond Issuance. The
provisions of Section 2.02(e) shall apply to all subsequent Bond Issuances. After the occurrence
of the 2007 Bond Issuance, the Borrowing Base shall remain at its current level of $450,000,000
until redetermined in accordance with Section 2.02.
ARTICLE IV.
REPRESENTATIONS AND WARRANTIES
REPRESENTATIONS AND WARRANTIES
Section 4.01 Borrowers Representations and Warranties. Each of the Borrowers
represents and warrants that: (a) its representations and warranties contained in Article IV of the
Credit Agreement and its representations and warranties contained in the Security Instruments,
the Guaranties, and each of the other Loan Documents to which it is a party are true and
correct in all material respects on and as of the Effective Date, after giving effect to the terms
of this
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Agreement, as though made on and as of such date, except those representations and
warranties that speak of a certain date, which representations and warranties were true and correct
as of such date; (b) after giving effect to the terms of this Agreement, no Default has occurred
and is continuing; (c) the execution, delivery and performance of this Agreement and the other
documents, instruments, certificates and agreements (“Other Documents”) required to be delivered by
this Agreement and to which each of the Borrowers is a party are within the corporate power and
authority of each of the Borrowers and have been duly authorized by appropriate corporate action
and proceedings; (d) this Agreement and the Other Documents to which each of the Borrowers is a
party constitute legal, valid, and binding obligations of such Borrower enforceable in accordance
with their respective terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the rights of creditors generally and general
principles of equity; (e) there are no governmental or other third party consents, licenses and
approvals required in connection with the execution, delivery, performance, validity and
enforceability of this Agreement or any of the Other Documents; and (f) the Liens under the
Security Instruments are valid and subsisting and secure each of the Borrowers’ obligations under
the Loan Documents.
Section 4.02 Guarantors Representations and Warranties. Each Guarantor represents and
warrants that: (a) its representations and warranties contained in Article IV of the Credit
Agreement and its representations and warranties contained in the Security Instruments, the
Guaranties, and each of the other Loan Documents to which it is a party are true and correct in all
material respects on and as of the Effective Date, as though made on and as of such date, except
those representations and warranties that speak of a certain date, which representations and
warranties were true and correct as of such date; (b) after giving effect to the terms of this
Agreement, no Default has occurred and is continuing; (c) the execution, delivery and performance
of this Agreement and the Other Documents to which such Guarantor is a party are within the
corporate power and authority of such Guarantor and have been duly authorized by appropriate
corporate action and proceedings; (d) this Agreement and the Other Documents to which such
Guarantor is a party constitute legal, valid, and binding obligations of such Guarantor enforceable
in accordance with their respective terms, except as limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or similar laws affecting the rights of creditors generally and general
principles of equity; (e) there are no governmental or other third party consents, licenses and
approvals required in connection with the execution, delivery, performance, validity and
enforceability of this Agreement or any of the Other Documents; (f) it has no defenses to the
enforcement of its Guaranty; and (g) the Liens under the Security Instruments are valid and
subsisting and secure such Guarantor’s obligations under the Loan Documents.
ARTICLE V.
CONDITIONS
CONDITIONS
This Agreement shall become effective and enforceable against the parties hereto, and the
Credit Agreement shall be amended as provided herein, upon the occurrence of the following
conditions precedent:
Section 5.01 Documents; Certificates.
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(a) The Administrative Agent shall have received multiple original counterparts, as requested
by the Administrative Agent, of this Agreement duly and validly executed and delivered by duly
authorized officers of the Borrowers, the Guarantors, the Administrative Agent, and the Lenders.
(b) The Administrative Agent shall have received a signed certificate of the secretary or an
assistant secretary of each of the Borrowers and any Guarantor in form and substance reasonably
satisfactory to the Administrative Agent.
(c) The Administrative Agent shall have received such other instruments, documents and
amendments or supplements as the Administrative Agent may reasonably request.
Section 5.02 No Default. No Default shall have occurred and be continuing as of the
Effective Date.
Section 5.03 Representations. The representations and warranties in this Agreement
shall be true and correct in all material respects.
Section 5.04 Fees. The Borrower shall have paid (a) to the Administrative Agent for
the benefit of certain Lenders a consent fee in an amount disclosed to such Lenders, and (b) all
reasonable fees and expenses of the Administrative Agent under the Credit Agreement that have been
invoiced and are then due and owing.
ARTICLE VI.
MISCELLANEOUS
MISCELLANEOUS
Section 6.01 Effect on Loan Documents; Acknowledgments.
(a) Each of the Borrowers acknowledges that on the date hereof all Obligations are payable
without defense, offset, counterclaim or recoupment.
(b) The Administrative Agent, the Issuing Lender, and the Lenders hereby expressly reserve all
of their rights, remedies, and claims under the Loan Documents. Nothing in this Agreement shall
constitute a waiver or relinquishment of (i) any Default or Event of Default under any of the Loan
Documents other than as expressly set forth above, (ii) any of the agreements, terms or conditions
contained in any of the Loan Documents other than as expressly set forth above, (iii) any rights or
remedies of the Administrative Agent, the Issuing Lender or any Lender with respect to the Loan
Documents, or (iv) the rights of the Administrative Agent, any Issuing Lender or any Lender to
collect the full amounts owing to them under the Loan Documents.
(c) Each of the Borrowers, the Guarantors, Administrative Agent, Issuing Lender, and Lenders
does hereby adopt, ratify, and confirm the Credit Agreement, as amended hereby, and acknowledges
and agrees that the Credit Agreement, as amended hereby, and all other Loan Documents are and
remain in full force and effect, and each of the Borrowers and the Guarantors acknowledges and
agrees that its liabilities under the Credit Agreement and the other Loan Documents are not
impaired in any respect by this Agreement or the consents granted hereunder.
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(d) From and after the Effective Date, all references to the Credit Agreement and the Loan
Documents shall mean such Credit Agreement and such Loan Documents as amended by this Agreement.
(e) This Agreement is a Loan Document for the purposes of the provisions of the other Loan
Documents. Without limiting the foregoing, any breach of representations, warranties, and
covenants under this Agreement shall be a Default or Event of Default, as applicable, under the
Credit Agreement.
Section 6.02 Reaffirmation of the Guaranty. Each Guarantor hereby ratifies, confirms,
acknowledges and agrees that its obligations under its Guaranty are in full force and effect and
that such Guarantor continues to unconditionally and irrevocably guarantee the full and punctual
payment, when due, whether at stated maturity or earlier by acceleration or otherwise, all of the
Guaranteed Obligations (as defined in its Guaranty), as such Guaranteed Obligations may have been
amended by this Agreement, and its execution and deliver of this Agreement does not indicate or
establish an approval or consent requirement by such Guarantor under its Guaranty in connection
with the execution and delivery of amendments to the Credit Agreement, the Notes or any of the
other Loan Documents.
Section 6.03 Counterparts. This Agreement may be signed in any number of
counterparts, each of which shall be an original and all of which, taken together, constitute a
single instrument. This Agreement may be executed by facsimile signature and all such signatures
shall be effective as originals.
Section 6.04 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the Lenders, the Borrowers and the Administrative Agent hereto and their
respective successors and assigns permitted pursuant to the Credit Agreement.
Section 6.05 Invalidity. In the event that any one or more of the provisions
contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision of
this Agreement.
Section 6.06 Governing Law. This Agreement shall be deemed to be a contract made
under and shall be governed by and construed in accordance with the laws of the State of Texas.
Section 6.07 Entire Agreement. THIS AGREEMENT, THE CREDIT AGREEMENT AS AMENDED BY THIS
AGREEMENT, THE NOTES, AND THE OTHER LOAN DOCUMENTS CONSTITUTE THE ENTIRE UNDERSTANDING AMONG THE
PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ANY PRIOR AGREEMENTS,
WRITTEN OR ORAL, WITH RESPECT THERETO.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
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EXECUTED effective as of the date first above written.
MARINER ENERGY, INC. |
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By: | /s/ Xxxx X. Xxxxxx | |||
Xxxx X. Xxxxxx | ||||
Senior Vice President and Chief Financial Officer | ||||
MARINER ENERGY RESOURCES, INC. |
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By: | /s/ Xxxx X. Xxxxxx | |||
Xxxx X. Xxxxxx | ||||
Senior Vice President and Chief Financial Officer | ||||
MARINER LP LLC, a Delaware limited liability company |
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By: | Mariner Energy, Inc., its sole member |
By: | /s/ Xxxx X. Xxxxxx | |||
Xxxx X. Xxxxxx | ||||
Senior Vice President and Chief Financial Officer | ||||
MARINER ENERGY TEXAS LP, a Delaware limited partnership |
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By: | Mariner Energy, Inc., its sole general partner |
By: | /s/ Xxxx X. Xxxxxx | |||
Xxxx X. Xxxxxx | ||||
Senior Vice President and Chief Financial Officer | ||||
UNION BANK OF CALIFORNIA, N.A., as Administrative Agent, as Issuing Lender, and as a Lender |
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By: | /s/ Xxxxxx Xxxxxxxxx | |||
Xxxxxx Xxxxxxxxx, Senior Vice President | ||||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
LENDERS: BNP PARIBAS |
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By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Director | |||
By: | /s/ Xxxxx Xxxxxx | |||
Name: | Xxxxx Xxxxxx | |||
Title: | Vice President | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
JPMORGAN CHASE BANK, N.A. |
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By: | /s/ Jo Xxxxx Xxxxxxxxx | |||
Name: | Jo Xxxxx Xxxxxxxxx | |||
Title: | Vice President | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
NATEXIS BANQUES POPULAIRES |
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By: | /s/ Xxxxx X. Xxxxxxx, III | |||
Name: | Xxxxx X. Xxxxxxx, III | |||
Title: | Managing Director | |||
By: | /s/ Xxxxxxx X. Xxxxxxx | |||
Name: | Xxxxxxx X. Xxxxxxx | |||
Title: | Managing Director | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
CAYLON NEW YORK BRANCH |
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By: | /s/ Xxx Xxxxxxxx | |||
Name: | Xxx Xxxxxxxx | |||
Title: | Managing Director | |||
By: | /s/ Xxxxxxx Xxxxxx | |||
Name: | Xxxxxxx Xxxxxx | |||
Title: | Director | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
GUARANTY BANK |
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By: | /s/ Xxxxx X. Xxxxxx | |||
Name: | Xxxxx X. Xxxxxx | |||
Title: | Vice President | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
AMEGY BANK NATIONAL ASSOCIATION |
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By: | /s/ Xxxxxxx X. Xxxxxx, III | |||
Name: | Xxxxxxx X. Xxxxxx, III | |||
Title: | Vice President | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
DZ BANK AG DEUTSCHE ZENTRAL-GENOSSENSCHAFTSBANK FRANKFURT AM MAIN, NEW YORK BRANCH |
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By: | /s/ Xxxxxxx X. Xxxx | |||
Name: | Xxxxxxx X. Xxxx | |||
Title: | Senior Vice President | |||
By: | /s/ Xxxx Xxxxxxxxxxxx | |||
Name: | Xxxx Xxxxxxxxxxxx | |||
Title: | Vice President | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
CITICORP USA, INC. |
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By: | /s/ Xxxxx X. Xxxx | |||
Name: | Xxxxx X. Xxxx | |||
Title: | Vice-President | |||
By: | ||||
Name: | ||||
Title: | ||||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
XXXXX FARGO BANK, NATIONAL ASSOCIATION |
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By: | /s/ X. X. Xxxxxxx | |||
Name: | X. X. Xxxxxxx | |||
Title: | Vice President | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
COMERICA BANK |
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By: | /s/ Xxxx Xxxxxx | |||
Name: | Xxxx Xxxxxx | |||
Title: | Assistant Vice President | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
BMO CAPITAL MARKETS FINANCING, INC. (f / k / a / XXXXXX XXXXXXX FINANCING, INC.) |
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By: | /s/ Xxxxx X. Xxxxxx | |||
Name: | Xxxxx X. Xxxxxx | |||
Title: | Director | |||
Signature Page to Amendment No. 3 and Consent
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)
(Mariner Energy, Inc. and Mariner Energy Resources, Inc.)