FIFTH AMENDMENT TO AMENDED & RESTATED TERM LOAN CREDIT AGREEMENT AMONG
Execution Version
Exhibit 10.5
______________________________________________________________________
FIFTH AMENDMENT
TO
AMENDED & RESTATED
AMONG
as parent,
Sundance Energy, Inc.,
AS BORROWER,
XXXXXX XXXXXXX CAPITAL ADMINISTRATORS INC.,
AS ADMINISTRATIVE AGENT,
THE LOAN PARTIES PARTY HERETO
AND
THE LENDERS PARTY HERETO
Dated as of October 30, 2020
______________________________________________________________________
FIFTH AMENDMENT TO AMENDED & RESTATED
This FIFTH AMENDMENT TO AMENDED & RESTATED TERM LOAN CREDIT AGREEMENT (this “Amendment”) dated as of October 30, 2020 (the “Closing Date”) is among SUNDANCE ENERGY INC., a Delaware corporation (“Parent”), SUNDANCE ENERGY, INC., a Colorado corporation (the “Borrower”), XXXXXX XXXXXXX CAPITAL ADMINISTRATORS INC., as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”), each of the Loan Parties party hereto and each of the lenders party hereto (individually a “Lender” and collectively, the “Lenders”).
RECITALS
A.The Parent, the Borrower, the Administrative Agent and the Lenders are parties to that certain Amended & Restated Term Loan Credit Agreement dated as of April 23, 2018 (as further amended, modified, supplemented, restated, replaced or otherwise modified from time to time prior to the date hereof, the “Credit Agreement”) pursuant to which the Lenders have made certain Loans and other credit available to and on behalf of the Borrower.
B.Subject to the terms and conditions set forth herein, the Parent, the Borrower, the Administrative Agent, the Loan Parties party hereto and the Lenders party hereto agree to amend certain provisions of the Credit Agreement as set forth herein.
X.XXX, THEREFORE, in consideration of the promises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
(i) | Replacing the phrase “June 30, 2020” contained in the definition of “Fallaway Date” with the phrase “September 30, 2020”. |
(ii) | Replacing the phrase “Section 8.22” contained in the clauses (a)(i)(A) and (a)(iii)(A) of the definition of “General & Administrative Expenses” with the phrase “Section 8.22(a)”. |
(iii) | Replacing the phrase “October 30, 2020” contained in the definition of “General & Administrative Expenses” with the phrase “November 30, 2020” in each instance it appears. |
(iv) | Adding the following defined term in appropriate alphabetical order to read in its entirety as follows: |
“Specified Letter of Credit” means collectively, that certain Standby Letter of Credit No. S101436, in favor of Newpek, LLC, that certain Standby Letter of Credit No. S101437, in favor of Reliance Holding USA, Inc. and that certain Standby Letter of Credit No. S101438, in favor of Pioneer Natural Resource Company, in each case, as amended or otherwise modified from time to time prior to October 30, 2020, and issued by The Toronto-Dominion Bank, New York Branch.
provided, that, notwithstanding anything herein to the contrary, in the case of the financial statements delivered under Section 8.01(b) for the fiscal quarter of Parent ending June 30, 2020, such certificate shall (I) be required to be delivered on or before October 30, 2020 and (II) not be required to contain any calculations demonstrating compliance with Section 9.01 for such fiscal quarter.
(a)(i) On or before March 31st and September 30th of each year, as applicable, the Borrower shall furnish to the Administrative Agent and the Lenders a Reserve Report evaluating the Oil and Gas Properties of the Borrower and the other Loan Parties in the United States as of the immediately preceding January 1st or July 1st, as applicable. The Reserve Report as of January 1st and delivered on or before March 31st of each year (the “January 1 Reserve Report”) shall be prepared by one or more Approved Petroleum Engineers, and each other Reserve Report (other than the Reserve Report as of July 1, 2020 and delivered on or before October 30, 2020 (the “July 1, 2020 Reserve Report”)) of each year may be prepared in form reasonably acceptable by one or more Approved Petroleum Engineers or internally under the supervision of the chief engineer of the Borrower who shall certify such Reserve Report to be true and accurate in all material respects and to have been prepared in all material respects in accordance with the procedures used in the immediately preceding January 1 Reserve Report. The Borrower shall cause the July 1, 2020 Reserve Report to be prepared by Netherland, Xxxxxx & Associates, Inc., and the Borrower shall cause such Approved Petroleum Engineer to also review and independently verify the economic and commercial assumptions included in such July 1, 2020 Reserve Report. (ii) On or before November 30, 2020, the Borrower shall furnish to the Administrative Agent and the Lenders the July 1, 2020 Reserve Report prepared by Netherland, Xxxxxx & Associates, Inc., as rolled forward by the Borrower through September 30, 2020, to account for actual activity over the fiscal quarter ending September 30, 2020, prepared internally under the supervision of the chief engineer of the Borrower, who shall certify such Reserve Report to be true and accurate in all material respects and to have been
prepared in all material respects in accordance with the procedures used in the July 1, 2020 Reserve Report.
Section 8.22Agreement to Negotiate with the Lenders; Restructuring Support Agreement.
(a)Parent and the Borrower will, and will cause each other Loan Party to, during the period from the Third Amendment Effective Date through and including December 31, 2020, negotiate with the Lenders in good faith on a potential workout, restructuring or similar negotiation with respect to the Secured Obligations, with the content of any such potential workout, restructuring or similar negotiation to be agreed between the Borrower and the number of Lenders required by Section 12.02 (but which, as of the Third Amendment Effective Date, is expected to include (i) mutually agreeing to a term sheet that reduces the Borrower’s Total Debt and leverage, (ii) exploring additional sources of equity capital for the Borrower, (iii) exploring potential Transfers of all or some of the Oil and Gas Properties of the Loan Parties (or Equity Interests in any Loan Party that owns Oil and Gas Properties) and (iv) if necessary, hiring of restructuring advisors by the Lenders and the Borrower).
(b)Parent and the Borrower will, and will cause each other Loan Party to, enter into a restructuring support agreement among the Loan Parties, the Administrative Agent, Lenders constituting the Required Lenders, the Revolving Agent and Revolving Lenders constituting the Majority Lenders (as defined in the Revolving Credit Agreement) with respect to a workout or restructuring of the Revolving Debt and the Secured Obligations on or prior to November 30, 2020 (or such later date as may be agreed in writing (including by email) by the Required Lenders).
(b)Ratio of Total Proved PV-9 to Total Debt. Parent and the Borrower will not, as of the last day of any fiscal quarter (beginning with the fiscal quarter ending on September 30, 2020) permit the ratio of Total Proved PV-9 to Total Debt, as of such time, to be less than 1.50 to 1.00; provided that the ratio of Total Proved PV-9 to Total Debt as of September 30, 2020, shall not be tested until the Borrower delivers the Reserve Report required by Section 8.12(a)(ii) to the Administrative Agent and the Lenders.
Section 9.18Amendments to Organizational Documents and Material Contracts. Parent and the Borrower shall not, and shall not permit any other Loan Party to, (a) amend, supplement or otherwise modify (or permit to be amended, supplemented or modified) its Organizational Documents in any material respect that could reasonably be expected to be adverse to the interests of the Administrative Agent or the Lenders without the consent of the Administrative Agent (not to be unreasonably withheld or delayed), other than amendments that delete or reduce any fees payable by any Loan Party to a Person other than the Administrative Agent or any Lender, or (b)(i) amend, supplement or otherwise modify (or permit to be amended, supplemented or modified) any agreement to which it is a party, (ii) terminate, replace or assign any of the Loan Party’s interests in any agreement or (iii) permit any agreement not to be in full force and effect and binding upon and enforceable against the parties thereto, in each case if (A) such occurrence could be reasonably expected to result in a Material Adverse Effect or (B) such occurrence does not receive the prior written consent of the Required Lenders and causes the Specified Letter of Credit to become drawn.
(d)the Borrower or any other Loan Party shall fail to observe or perform any covenant, condition or agreement contained in Section 8.02(a), Section 8.03, Section 8.12(a)(ii), Section 8.14, Section 8.21, Section 8.22(b), Section 8.23 or in ARTICLE IX.
Without limiting the generality of the provisions of this Section 3, for purposes of determining satisfaction of the conditions specified in this Section 3, each Lender that shall have delivered executed multiple counterparts of this Amendment to the Administrative Agent shall be deemed to have consented to, approved of, or accepted or been satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.
[Signatures Begin Next Page.]
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[Fifth Amendment to Amended & Restated Term Loan Credit Agreement] |
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed effective as of the date first written above.
PARENT: | |||
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By: | /s/ Xxxx XxXxxxx | ||
Name: | Xxxx XxXxxxx | ||
Title: | President & CEO | ||
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BORROWER: | Sundance Energy, Inc., | ||
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By: | /s/ Xxxx XxXxxxx | ||
Name: | Xxxx XxXxxxx | ||
Title: | President & CEO | ||
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OTHER LOAN PARTIES: | |||
Sea Eagle Ford, LLC | |||
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By: | /s/ Xxxx XxXxxxx | ||
Name: | Xxxx XxXxxxx | ||
Title: | CEO | ||
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Armadillo E&P, Inc. | |||
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By: | /s/ Xxxx XxXxxxx | ||
Name: | Xxxx XxXxxxx | ||
Title: | President |
[Signature Page to Sundance Fifth Amendment]
ADMINISTRATIVE AGENT: | XXXXXX XXXXXXX CAPITAL | ||
ADMINISTRATORS INC. | |||
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By: | /s/ Xxxxx Xxxxxxx | ||
Name: | Xxxxx Xxxxxxx | ||
Title: | Vice President |
[Signature Page to Sundance Fifth Amendment]
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LENDER: | XXXXXX XXXXXXX CAPITAL GROUP INC. | ||
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By: | /s/ Xxxxxx Xxxxxx | ||
Name: | Xxxxxx Xxxxxx | ||
Title: | Vice President |
[Signature Page to Sundance Fifth Amendment]
LENDER: | Ares Capital Corporation | ||
By: | /s/ Xxx Xxxxxxxxxx | ||
Name: | Xxx Xxxxxxxxxx | ||
Title: | Authorized Signatory | ||
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LENDER: | CION Ares Diversified Credit Fund | ||
By: | /s/ Xxx Xxxxxxxxxx | ||
Name: | Xxx Xxxxxxxxxx | ||
Title: | Authorized Signatory | ||
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LENDER: | Ares Credit Strategies Insurance Dedicated Fund Series of SALI Multi-Series Fund, L.P. | ||
By: Ares Management LLC, its investment subadvisor | |||
By: Ares Capital Management LLC, as subadvisor | |||
By: | /s/ Xxx Xxxxxxxxxx | ||
Name: | Xxx Xxxxxxxxxx | ||
Title: | Authorized Signatory | ||
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LENDER: | Ares Direct Finance I LP | ||
By: Ares Capital Management LLC, its investment manager | |||
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By: | /s/ Xxx Xxxxxxxxxx | ||
Name: | Xxx Xxxxxxxxxx | ||
Title: | Authorized Signatory |
[Signature Page to Sundance Fifth Amendment]
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LENDER: | AMISSIMA ASSICURAZIONI MULTI-CREDIT STRATEGY FUND, a sub-fund of ICAV, as a Lender | ||
By: Apollo Management International LLP, solely in its capacity as Portfolio Manager and not in its individual corporate capacity | |||
By: AMI (Holdings), LLC, its member | |||
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By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President | ||
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| Apollo Atlas Master Fund L.P., as a Lender. | ||
By: Apollo Atlas Management, LLC, its investment manager | |||
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By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President | ||
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| Apollo Kings Alley Credit Fund, L.P., as a Lender | ||
By: Apollo Kings Alley Credit Fund Management LLC, its investment manager | |||
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By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President |
[Signature Page to Sundance Fifth Amendment]
| Apollo Xxxxxxxx Credit Fund, L.P., as a Lender | ||
| By: Apollo Xxxxxxxx Credit Fund Management, LLC, its investment manager | ||
By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President |
| Apollo Tactical Value SPN Investments, L.P., as a Lender | ||
By: Apollo Tactical Value SPN Management, LLC, its investment manager | |||
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By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President |
| Apollo Tower Credit Fund, L.P, as a Lender | ||
By: Apollo Tower Credit Management, LLC, its investment manager | |||
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By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President |
[Signature Page to Sundance Fifth Amendment]
Apollo TR Enhanced Levered Yield LLC, as a Lender | |||
By: Apollo Total Return Enhanced Management LLC, its investment manager | |||
By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President |
| Apollo TR Opportunistic Ltd., as a Lender | ||
| By: Apollo Total Return Management LLC, its investment manager | ||
| By: Apollo Total Return Enhanced Management LLC, its investment manager | ||
By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President | ||
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| Apollo Union Street Partners, L.P., as a Lender | ||
| By: Apollo Union Street Management, LLC, its investment manager | ||
By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President |
[Signature Page to Sundance Fifth Amendment]
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| MPI (London) Limited, as a Lender | ||
| By: Apollo TRF MP Management LLC, its investment manager | ||
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By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President |
| TRANQUILIDADE MULTI-CREDIT STRATEGY FUND, a sub-fund of ICAV, as a Lender | ||
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| By: Apollo Management International LLP, solely in its capacity as Portfolio Manager and not in its individual corporate capacity | ||
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| By: AMI (Holdings), LLC, its member | ||
By: | /s/Xxxxxx X. Xxxxx | ||
Name: | Xxxxxx X. Xxxxx | ||
Title: | Vice President | ||
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[Signature Page to Sundance Fifth Amendment]
LENDER: | AG Energy Funding, LLC, | ||
as a Lender | |||
By: | /s/ Xxxx Xxxxxxx | ||
Name: | Xxxx Xxxxxxx | ||
Title: | Authorized Person |
[Signature Page to Sundance Fifth Amendment]