Royal Bank of Canada Agency Services Group 4th Floor, 20 King Street West Toronto, Ontario, Canada M5H 1CA Attention: Manager Agency Ladies and Gentlemen:
Exhibit 10.8
May 11, 2021
Royal Bank of Canada
Agency Services Group
0xx Xxxxx, 00 Xxxx Xxxxxx Xxxx
Xxxxxxx, Xxxxxxx, Xxxxxx
M5H 1CA
Attention: Manager Agency
Ladies and Gentlemen:
Reference is made to that certain Third Amended and Restated Credit Agreement dated as of March 31, 2015 (as amended, restated, modified or supplemented from time to time prior to the date hereof, the “Credit Agreement”) among Evolve Transition Infrastructure LP (formerly known as Xxxxxxx Midstream Partners LP), a Delaware limited partnership, as borrower (the “Borrower”), the financial institutions from time to time party thereto (the “Lenders”), and Royal Bank of Canada, as administrative agent (the “Administrative Agent”) for the Lenders, as collateral agent and as letter of credit issuer. Capitalized terms used herein and not otherwise defined herein have the meaning ascribed thereto in the Credit Agreement.
The Borrower has informed the Administrative Agent and the Lenders that (i) the Borrower and certain of its Affiliates are evaluating a potential joint venture transaction described in a brief Lender Request & Update presentation distributed to the Lenders on or about May 6, 2021 involving a publicly traded company identified to the Administrative Agent (the “PubCo”), (ii) in connection therewith, the Borrower proposes to enter into a certain letter agreement with PubCo with respect to the Borrower’ s evaluation of PubCo and the contemplated joint venture transaction (the “JV Letter Agreement”) pursuant to which the Borrower will commit to pay or reimburse certain legal and due diligence costs of PubCo in an aggregate amount not to exceed $200,000 if the joint venture transaction is ultimately consummated (the “PubCo Reimbursement”), and (iii) concurrently with the Borrower entering into such letter agreement, the Borrower, certain Affiliates of the Borrower and PubCo will enter into a warrant agreement pursuant to which the Borrower will be issued certain warrants in PubCo (such agreement, the “PubCo Warrant Agreement” and the warrants issued thereunder, the “PubCo Warrants”; and the JV Letter Agreement and the PubCo Warrant Agreement, collectively the “PubCo Transaction Agreements”).
The Borrower hereby requests that the Lenders waive the provisions of Section 9.05 of the Credit Agreement (which restricts the Borrower and its Subsidiaries from making certain Investments except as otherwise permitted therein) to the extent, and only to the extent, that the Borrower’ s undertaking to pay the PubCo Reimbursement, the Borrower’ s entering into the PubCo Transaction Agreements and the issuance to the Borrower of the PubCo Warrants (or any and/or all of the foregoing in combination) constitutes an Investment that is not otherwise permitted under Section 9.05 of the Credit Agreement. For the avoidance of doubt, the Borrower acknowledges and agrees that the requested waiver does not include or extend to the exercise by the Borrower of the PubCo Warrants, the entering into of the potential joint venture transaction,
purchasing any stock of PubCo or any other Investment or transaction that is otherwise not permitted by the Credit Agreement.
Each Lender party hereto hereby waives the provisions of Section 9.05 of the Credit Agreement to the extent, and only to the extent, that the Borrower’s undertaking to pay the PubCo Reimbursement, the Borrower’s entering into the PubCo Transaction Agreements and the issuance to the Borrower of the PubCo Warrants (or any and/or all of the foregoing in combination) constitutes an Investment that is not otherwise permitted under Section 9.05 of the Credit Agreement.
This Letter Agreement constitutes a limited waiver of the Credit Agreement with respect to the specific matters set forth above, and the provisions of this Letter Agreement shall be strictly limited as set forth above. Except to the extent (but only to such extent) of the waivers provided above, the Borrower hereby further ratifies, approves and confirms all of the other Obligations under the Credit Agreement and the other Loan Documents.
This Letter Agreement shall become effective upon receipt by the Administrative Agent of duly executed counterparts of this Letter Agreement from the Borrower and Lenders comprising at least the Majority Lenders.
This Letter Agreement may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. A facsimile signature or electronic signature (e.g. pdf), of any party hereto shall be deemed to be an original signature for the purposes of this Letter Agreement.
This Letter Agreement shall constitute a Loan Document.
Please confirm that the foregoing is our mutual understanding by signing and returning to us an executed counterpart of this letter agreement.
Very truly yours,
EVOLVE TRANSITION
INFRASTRUCTURE LP,
as Borrower
By: | Evolve Transition Infrastructure GP LLC, |
By: /s/ Xxxxxxx X. Xxxx
Name:Xxxxxxx X. Xxxx
Title:Chief Financial Officer
Accepted and agreed to as of
the date first above written:
ROYAL BANK OF CANADA, as a Lender
By: /s/ Xxx X. XxXxxxxxxxx
Name:Xxx X. XxXxxxxxxxx
Title:Authorized Signatory
BBVA USA
as a Lender
By: /s/ Xxxx X. Xxxx
Name:Xxxx X. Xxxx
Title:Senior Vice President
TRUIST BANK,
as a Lender
By: /s/ Xxxx Xxxxxxx
Name:Xxxx Xxxxxxx
Title:Director
CAPITAL ONE, NATIONAL ASSOCIATION
as a Lender
By: /s/ Xxxxxxx Xxxxx
Name:Xxxxxxx Xxxxx
Title:Duly Authorized Signatory
Citibank, N.A.
as a Lender
By: /s/ Xxxx Xxx
Name:Xxxx Xxx
Title:Vice President
ING Capital LLC
as a Lender
By: /s/ Xxxx Xxxxxx
Name: Xxxx Xxxxxx
Title: Managing Director
By: /s/ Xxxxx Xxxxxxxxx
Name:Xxxxx Xxxxxxxxx
Title:Director
CIT BANK, N.A.
as a Lender
By: /s/ Xxxx Xxxxxx
Name:Xxxx Xxxxxx
Title:Director
