Exhibit 10.1
Execution Version
NINTH AMENDMENT
TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
This NINTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of November 22, 2019, is among SANCHEZ MIDSTREAM PARTNERS LP, a Delaware limited partnership (the “Borrower”), the guarantors party hereto (the “Guarantors”), each of the Lenders party hereto, and ROYAL BANK OF CANADA, as administrative agent (in such capacity, the “Administrative Agent”), and as collateral agent (in such capacity, the “Collateral Agent”), and as letter of credit issuer (in such capacity, the “Issuer”) and relates 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 “Existing Credit Agreement”; and as amended hereby, the “Credit Agreement”), among the Borrower, the Lenders, the Administrative Agent, the Collateral Agent and the Issuer.
WITNESSETH:
WHEREAS, the Borrower desires to amend the Existing Credit Agreement on the terms set forth herein;
WHEREAS, Section 12.02 of the Existing Credit Agreement provides that the Borrower and the Lenders may amend the Existing Credit Agreement and the other Loan Documents for certain purposes;
WHEREAS, the Administrative Agent, the Collateral Agent, the Issuer, the Lenders, the Borrower and the Guarantors all desire to enter into this Amendment to among other things, amend the Existing Credit Agreement and extend the maturity date thereunder; and
NOW, THEREFORE, in consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:
Section 1. Definitions. Unless otherwise defined in this Amendment, each capitalized term used in this Amendment has the meaning assigned to such term in the Credit Agreement. |
Section 2. Amendments to the Credit Agreement. Effective as of the Amendment Effective Date (as defined below), (a) the body of the Existing Credit Agreement is hereby amended to delete the stricken text (indicated textually in the same manner as the following example: stricken text) and to add the double-underlined text (indicated textually in the same manner as the following example: double-underlined text) as set forth in the pages of the Credit Agreement attached as Exhibit A hereto, (b) each of Annex I, Exhibit A, Schedule 7.11, Schedule 7.14 and Schedule 7.22 to the Existing Credit Agreement is hereby deleted and replaced with the corresponding Annex I, Exhibit AA (comprising Exhibit A-1 and Exhibit A-2 to the Credit Agreement), Schedule 7.11, Schedule 7.14 and Schedule 7.22 attached hereto, and (c) the Annex II attached hereto is hereby incorporated into the Credit Agreement immediately after Annex I (as replaced pursuant the foregoing clause (b)). |
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Section 3. Borrowing Base. Upon the Amendment Effective Date and until redetermined in connection with the first Scheduled Midstream Component Recalculation in accordance with Section 2.07 of the Credit Agreement, the Borrowing Base shall be equal to the initial Midstream Component in the amount of $235,500,000. |
Section 4. Ratification. Except as expressly amended, modified or waived herein, each of the Borrower and the Guarantors hereby ratifies and confirms all of the Obligations under the Credit Agreement and the other Loan Documents to which it is a party, and all references to the Credit Agreement, the Mortgages and the Notes in any of the Loan Documents shall be deemed to be references to the Credit Agreement, the Mortgages and the Notes as amended, modified or waived hereby and by the instruments and documents delivered pursuant to Section 5. |
Section 5. Effectiveness. This Amendment shall become effective on the date (the “Amendment Effective Date”) on which each of the following conditions is satisfied: |
(a) the Administrative Agent shall have received counterparts of this Amendment executed by the Administrative Agent, the Collateral Agent, the Issuer, the Borrower, the Guarantors and each of the Lenders; |
(b) the Administrative Agent shall be reasonably satisfied that the consent and acknowledgment agreement provided by Sanchez Energy Corporation, as producer, in favor of the Administrative Agent with respect to the Midstream Properties acquired in the Catarina Acquisition and certain material contracts related thereto remains in full force and effect; |
(c) the Administrative Agent shall have received duly executed Notes payable to the order of each Lender that has requested a Note; |
(d) the Administrative Agent shall have received a copy of Borrower’s most recent Reserve Report; |
(e) the Administrative Agent shall have received a certificate of the General Partner of the Borrower and of each Guarantor setting forth (i) resolutions of the board of directors or other managing body of the General Partner or such Guarantor with respect to the authorization of the Borrower or such Guarantor to execute and deliver the Amendment Documents to which it is a party and to enter into the transactions contemplated in those documents, (ii) the individuals who are authorized to sign the Amendment Documents to which the Borrower (acting through the General Partner) or such Guarantor is a party, (iii) specimen signatures of such authorized individuals, and (iv) the articles or certificate of incorporation or formation and bylaws, operating agreement or partnership agreement, as applicable, of the Borrower, its General Partner and each Guarantor, in each case, certified as being true and complete; |
(f) the Administrative Agent shall have received certificates of the appropriate state agencies with respect to the existence, qualification to |
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do business and good standing of the Borrower, the General Partner and each Guarantor; |
(g) the Administrative Agent shall have received reasonable satisfactory financial statements of the Borrower and its Consolidated Subsidiaries for the fiscal quarter ended September 30, 2019; |
(h) the Administrative Agent shall have received duly executed counterparts of a supplement to the Borrower’s existing Pledge and Security Agreement pledging the equity interests in Carnero G&P, LLC (as survivor of the merger between Carnero Gathering, LLC and Carnero Processing, LLC), together with all certificates evidencing such equity interests (if any) and related blank stock powers from the Borrower (collectively with this Amendment, the “Amendment Documents”); |
(i) to the extent the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulations, a Beneficial Ownership Certification; |
(j) the Borrower and each Guarantor shall have confirmed and acknowledged to the Administrative Agent and the Lenders, and by its execution and delivery of this Amendment the Borrower and each Guarantor do hereby confirm and acknowledge to the Administrative Agent and the Lenders, that (i) the execution, delivery and performance of this Amendment and each other Amendment Document has been duly authorized by all requisite limited partnership or limited liability company action, as applicable, on the part of the Borrower or such Guarantor, as applicable, (ii) the Credit Agreement and each other Loan Document to which it is a party constitute valid and legally binding agreements enforceable against the Borrower or such Guarantor, as applicable, in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or other similar laws relating to or affecting the enforcement of creditors’ rights generally and by general principles of equity, (iii) the representations and warranties of the Borrower or such Guarantor, if any, set forth in the Credit Agreement and in each other Loan Document to which it is a party, shall be true and correct on and as of the Amendment Effective Date, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case such representations and warranties shall have been true and correct as of such specified earlier date, (iv) no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents and (v) since December 31, 2018, there has been no event, development or circumstance that has had or could reasonably be expected to have a Material Adverse Effect; |
(k) the Administrative Agent shall have received an opinion of Hunton Andrews Kurth LLP, special New York counsel to the Borrower and |
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special Texas local counsel to the Borrower, each in form and substance reasonably satisfactory to the Administrative Agent, as to such matters incident to the Amendment Documents as the Administrative Agent may reasonably request; and |
(l) the Borrower shall have paid all agreed fees to the extent due and payable in connection with this Amendment and the other Amendment Documents and paid or reimbursed the Administrative Agent for all its reasonable and documented out-of-pocket costs and expenses incurred in connection with the preparation and execution and delivery of this Amendment and the other Amendment Documents (including the reasonable fees, disbursements and other charges of Mayer Brown LLP), in each case, to the extent provided in Section 12.03 of the Credit Agreement. |
For purposes of determining compliance with the conditions specified in Section 5, each Lender shall be deemed to have consented to, approved or accepted or be 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 written notice from such Lender prior to the Amendment Effective Date specifying its objection thereto.
Section 6. Governing Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. |
Section 7. Miscellaneous. |
(a) On and after the Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import, referring to the Credit Agreement, and each reference in each other Loan Document to “the Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Existing Credit Agreement as amended or otherwise modified by this Amendment. This Amendment shall constitute a Loan Document for purposes of the Credit Agreement. |
(b) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any default of the Borrower or any Guarantor or any right, power or remedy of the Administrative Agent, the Collateral Agent, the Issuer or the Lenders under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents. |
(c) Each of the Borrower and each Guarantor represents and warrants that as of the date hereof (i) it has the limited partnership or limited liability company power and authority to execute, deliver and perform the terms and provisions of this Amendment and the other Amendment Documents to which it is a party, has taken all necessary limited partnership or limited liability company action to authorize the execution, delivery and performance of this |
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Amendment and the other Amendment Documents to which it is a party, delivery and performance of this Amendment and the other Amendment Documents to which it is a party does not and will not contravene the terms of the Borrower’s or such Guarantor’s, as applicable, organizational documents; (ii) it has duly executed and delivered this Amendment and the other Amendment Documents to which it is a party and this Amendment and the other Amendment Documents to which it is a party constitute the legal, valid and binding obligation of the Borrower or such Guarantor enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization and other similar laws relating to or affecting creditors’ rights generally and general principles of equity (whether considered in a proceeding in equity or law); (iii) no Default or Event of Default has occurred and is continuing; and (iv) no action, suit, investigation or other proceeding is pending or threatened before any arbitrator or Governmental Authority seeking to restrain, enjoin or prohibit or declare illegal, or seeking damages from the Borrower in connection with this Amendment or which could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. |
Section 8. Severability. Any provisions of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provisions so held to be invalid. |
Section 9. Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the Administrative Agent, the Collateral Agent, the Issuer, the Lenders, the Borrower and each Guarantor and their respective successors and assigns. |
Section 10. Counterparts. This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an executed counterpart of a signature page to this Amendment by telecopier or electronically by .pdf shall be effective as delivery of a manually executed counterpart of this Amendment. |
Section 11. Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment or any other Loan Document. |
Section 12. Integration. This Amendment represents the final agreement of the Borrower, each Guarantor, the Collateral Agent, the Administrative Agent, the Issuer, and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Borrower, any Guarantor, the Administrative Agent, the Collateral Agent, the Issuer, nor any Lender relative to subject matter hereof not expressly set forth or referred to herein. |
Section 13. RELEASE. IN CONSIDERATION OF THE MUTUAL COVENANTS AND AGREEMENTS SET FORTH IN THIS AMENDMENT, THE BORROWER AND EACH OF THE GUARANTORS HEREBY RELEASES, ACQUITS, DISCHARGES, COVENANTS NOT TO SUE, AND AGREES FOREVER TO HOLD HARMLESS THE ADMINISTRATIVE AGENT, THE COLLATERAL AGENT, THE ISSUER AND EACH LENDER, ALONG WITH ALL OF THEIR BENEFICIARIES, OFFICERS, DIRECTORS, SHAREHOLDERS, AGENTS, |
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EMPLOYEES, SERVANTS, ATTORNEYS, ADVISORS AND REPRESENTATIVES, AS WELL AS THEIR RESPECTIVE HEIRS, EXECUTORS, LEGAL REPRESENTATIVES, ADMINISTRATORS, PREDECESSORS IN INTEREST, SUCCESSORS AND ASSIGNS (EACH INDIVIDUALLY, A “RELEASED PARTY”) FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION, DEBTS, LIABILITIES, CONTRACTS, AGREEMENTS, OBLIGATIONS, ACCOUNTS, DEFENSES, SUITS, OFFSETS AGAINST THE INDEBTEDNESS EVIDENCED BY THIS AMENDMENT AND THE OTHER AMENDMENT DOCUMENTS, ACTIONS, AND ANY AND ALL CLAIMS FOR DAMAGES OR RELIEF OF WHATEVER KIND OR NATURE, WHETHER IN EQUITY OR AT LAW, MONETARY OR NON-MONETARY, KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, MATURED OR UNMATURED, THAT THE BORROWER OR ANY GUARANTOR OR ANY SUBSIDIARY OF ANY OF THEM, HAS, HAD OR MAY HAVE AGAINST ANY RELEASED PARTY, INDIVIDUALLY OR COLLECTIVELY, FOR OR BY REASON OF ANY MATTER, CAUSE OR THING WHATSOEVER OCCURRING ON OR AT ANY TIME PRIOR TO THE DATE OF THE EXECUTION OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY MATTER THAT RELATES TO, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY (A) THIS AMENDMENT OR ANY OTHER AMENDMENT DOCUMENT (COLLECTIVELY, FOR PURPOSES OF THIS SECTION 13, THE “TRANSACTION DOCUMENTS”) OR THE TRANSACTIONS EVIDENCED HEREBY OR THEREBY, INCLUDING, WITHOUT LIMITATION, ANY DISBURSEMENTS UNDER ANY TRANSACTION DOCUMENTS, THE TERMS THEREOF, OR THE APPROVAL, ADMINISTRATION OR SERVICING THEREOF, OR (B) ANY NOTICE OF DEFAULT, EVENT OF DEFAULT IN REFERENCE TO ANY TRANSACTION DOCUMENTS OR ANY OTHER MATTER PERTAINING TO THE COLLECTION OR ENFORCEMENT BY ANY RELEASED PARTY OF THE INDEBTEDNESS EVIDENCED BY ANY TRANSACTION DOCUMENTS OR ANY RIGHT OR REMEDY UNDER ANY TRANSACTION DOCUMENTS, OR (C) ANY PURPORTED ORAL AGREEMENTS OR UNDERSTANDINGS BY AND BETWEEN ANY RELEASED PARTY AND THE BORROWER AND ANY GUARANTOR IN REFERENCE TO ANY TRANSACTION DOCUMENTS. |
[Signature Pages Follow]
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IN WITNESS WHEREOF, each of the parties hereto has caused this Amendment to be executed by its officer(s) thereunto duly authorized as of the date first above written.
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| SANCHEZ MIDSTREAM PARTNERS LP, as Borrower | |
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| By: | SANCHEZ MIDSTREAM PARTNERS GP LLC, its general partner |
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| By: | /s/ Charles C. Ward |
| Name: | Charles C. Ward |
| Title: | Chief Financial Officer |
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| SEP HOLDINGS IV, LLC, | |
| as a Guarantor | |
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| By: | /s/ Charles C. Ward |
| Name: | Charles C. Ward |
| Title: | Chief Financial Officer |
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| CATARINA MIDSTREAM, LLC, | |
| as a Guarantor | |
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| By: | /s/ Charles C. Ward |
| Name: | Charles C. Ward |
| Title: | Chief Financial Officer |
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| SECO PIPELINE, LLC, | |
| as a Guarantor | |
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| By: | /s/ Charles C. Ward |
| Name: | Charles C. Ward |
| Title: | Chief Financial Officer |
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| ROYAL BANK OF CANADA, | |
| as Administrative Agent and Collateral Agent | |
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| By: | /s/ Yvonne Brazier |
| Name: | Yvonne Brazier |
| Title: | Manager, Agency Services |
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| ROYAL BANK OF CANADA, | |
| as a Revolving Lender and the Issuer | |
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| By: | /s/ Leslie P. Vowell |
| Name: | Leslie P. Vowell |
| Title: | Authorized Signatory |
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| ROYAL BANK OF CANADA, | |
| as a Term Lender | |
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| By: | /s/ Leslie P. Vowell |
| Name: | Leslie P. Vowell |
| Title: | Authorized Signatory |
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| CAPITAL ONE, NATIONAL ASSOCIATION, | |
| as a Revolving Lender | |
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| By: | /s/ Matthew Brice |
| Name: | Matthew Brice |
| Title: | Vice President |
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| CAPITAL ONE, NATIONAL ASSOCIATION, | |
| as a Term Lender | |
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| By: | /s/ Matthew Brice |
| Name: | Matthew Brice |
| Title: | Vice President |
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| CITIBANK, N.A., | |
| as a Revolving Lender | |
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| By: | /s/ Dave R. Goncher |
| Name: | Dave R. Goncher |
| Title: | Vice President |
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| CITIBANK, N.A., | |
| as a Term Lender | |
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| By: | /s/ Dave R. Goncher |
| Name: | Dave R. Goncher |
| Title: | Vice President |
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| COMERICA BANK, as a Revolving Lender | |
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| By: | /s/ Cynthia B. Jones |
| Name: | Cynthia B. Jones |
| Title: | Vice President |
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| COMERICA BANK, as a Term Lender | |
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| By: | /s/ Cynthia B. Jones |
| Name: | Cynthia B. Jones |
| Title: | Vice President |
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| BBVA USA f/k/a Compass Bank, as a Revolving Lender | |
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| By: | /s/ Rachel Festervand |
| Name: | Rachel Festervand |
| Title: | Sr. Vice President |
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| BBVA USA f/k/a Compass Bank, as a Term Lender | |
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| By: | /s/ Rachel Festervand |
| Name: | Rachel Festervand |
| Title: | Sr. Vice President |
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| CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH as a Revolving Lender | |
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| By: | /s/ Bryan J. Matthews |
| Name: | Bryan J. Matthews |
| Title: | Authorized Signatory |
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| By: | /s/ Didier Siffer |
| Name: | Didier Siffer |
| Title: | Authorized Signatory |
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| CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH as a Term Lender | |
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| By: | /s/ Bryan J. Matthews |
| Name: | Bryan J. Matthews |
| Title: | Authorized Signatory |
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| By: | /s/ Didier Siffer |
| Name: | Didier Siffer |
| Title: | Authorized Signatory |
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| ING CAPITAL LLC, | |
| as a Revolving Lender | |
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| By: | /s/ Charles Hall |
| Name: | Charles Hall |
| Title: | Managing Director |
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| By: | /s/ Juli Bieser |
| Name: | Juli Bieser |
| Title: | Managing Director |
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| ING CAPITAL LLC, | |
| as a Term Lender | |
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| By: | /s/ Charles Hall |
| Name: | Charles Hall |
| Title: | Managing Director |
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| By: | /s/ Juli Bieser |
| Name: | Juli Bieser |
| Title: | Managing Director |
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| SUNTRUST BANK, as a Revolving Lender | |
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| By: | /s/ William S Krueger |
| Name: | William S Krueger |
| Title: | Senior Vice President |
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| SUNTRUST BANK, as a Term Lender | |
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| By: | /s/ William S Krueger |
| Name: | William S Krueger |
| Title: | Senior Vice President |
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| CIT BANK, N.A., as a Revolving Lender | |
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| By: | /s/ Ishank Shah |
| Name: | Ishank Shah |
| Title: | Authorized Signatory |
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| CIT BANK, N.A., as a Term Lender | |
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| By: | /s/ Ishank Shah |
| Name: | Ishank Shah |
| Title: | Authorized Signatory |
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| MACQUARIE INVESTMENTS US INC. | |
| as a Revolving Lender | |
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| By: | /s/ Sherri Brudner |
| Name: | Sherri Brudner |
| Title: | Division Director |
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| By: | /s/ James M. Jordan |
| Name: | James M. Jordan |
| Title: | Executive Director |
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| MACQUARIE INVESTMENTS US INC. | |
| as a Term Lender | |
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| By: | /s/ Sherri Brudner |
| Name: | Sherri Brudner |
| Title: | Division Director |
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| By: | /s/ James M. Jordan |
| Name: | James M. Jordan |
| Title: | Executive Director |
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Exhibit A
To Ninth Amendment
[Marked Version of the Body of the Existing Credit Agreement reflecting Amendments
Implemented by Ninth Amendment]
715347206 14464587
THIRD AMENDED AND RESTATED CREDIT AGREEMENT
as Administrative Agent and Collateral Agent,
COMPASS BANK and SUNTRUST BANK
CAPITAL ONE, N.A. and COMERICA BANK
as Sole Lead Arranger and Bookrunner,
715347206 14464587
TABLE OF CONTENTS
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DEFINITIONS AND ACCOUNTING MATTERS | 2 | |
Section 1.01 | Terms Defined Above | 2 |
Section 1.02 | Certain Defined Terms | 2 |
Section 1.03 | Terms Generally | 31 34 |
Section 1.04 | Accounting Terms and Determinations; GAAP | 32 34 |
Section 1.05 | Divisions | 34 |
ARTICLE II. | THE CREDITS | 32 35 |
Section 2.01 | Loan Commitments | 32 35 |
Section 2.02 | Loans and Borrowings | 32 35 |
Section 2.03 | Requests for Borrowings | 33 36 |
Section 2.04 | Interest Elections | 34 37 |
Section 2.05 | Funding of Borrowing | 35 38 |
Section 2.06 | Termination and Reduction of Aggregate Maximum Credit Amount or Elected Commitment Amount Loan Commitments | 36 39 |
Section 2.07 | Borrowing Base - Midstream Component | 38 40 |
Section 2.08 | Letters of Credit | 42 41 |
Section 2.09 | [Intentionally Omitted 47] | 45 |
Section 2.10 | Defaulting Lenders or Impacted Lenders | 47 46 |
ARTICLE III. | PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES | 50 49 |
Section 3.01 | Repayment of Loans | 50 49 |
Section 3.02 | Interest | 50 49 |
Section 3.03 | Prepayments | 52 51 |
Section 3.04 | Fees | 53 |
ARTICLE IV. | PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS | 54 |
Section 4.01 | Payments Generally; Pro Rata Treatment; Sharing of Set-offs | 54 |
Section 4.02 | Presumption of Payment by the Borrower | 55 56 |
ARTICLE V. | INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY | 56 |
Section 5.01 | Increased Costs | 56 |
Section 5.02 | Break Funding Payments | 57 |
Section 5.03 | Taxes | 57 58 |
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TABLE OF CONTENTS
(continued)
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Section 5.04 | Designation of Different Lending Office | 60 |
Section 5.05 | Illegality | 60 |
Section 5.06 | Replacement of a Lender | 60 |
ARTICLE VI. | CONDITIONS PRECEDENT | 61 62 |
Section 6.01 | Closing Date | 61 62 |
Section 6.02 | Each Credit Event | 64 65 |
ARTICLE VII. | REPRESENTATIONS AND WARRANTIES | 65 66 |
Section 7.01 | Organization; Powers | 65 66 |
Section 7.02 | Authority; Enforceability | 65 66 |
Section 7.03 | Approvals; No Conflicts | 66 |
Section 7.04 | Financial Statements | 66 67 |
Section 7.05 | Litigation | 67 |
Section 7.06 | Environmental Matters | 67 |
Section 7.07 | Compliance with the Laws and Agreements | 68 |
Section 7.08 | Investment Company Act | 68 |
Section 7.09 | Taxes | 68 |
Section 7.10 | ERISA | 68 69 |
Section 7.11 | Disclosure; No Material Misstatements | 69 70 |
Section 7.12 | Insurance | 70 |
Section 7.13 | Restriction on Liens | 70 |
Section 7.14 | Subsidiaries | 70 |
Section 7.15 | Location of Business and Offices | 70 |
Section 7.16 | Properties; Titles; Etc | 70 71 |
Section 7.17 | Title | 72 |
Section 7.18 | Security Instruments | 72 73 |
Section 7.19 | Maintenance of Properties | 73 |
Section 7.20 | Gas Imbalances; Prepayments | 73 74 |
Section 7.21 | Marketing of Production | 73 74 |
Section 7.22 | Swap Transactions | 74 |
Section 7.23 | Use of Loans and Letters of Credit | 74 |
Section 7.24 | Solvency | 74 75 |
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TABLE OF CONTENTS
(continued)
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Section 7.25 | Patriot Act; OFAC; Sanctions | 75 |
Section 7.26 | Seniority Designation | 75 76 |
ARTICLE VIII. | AFFIRMATIVE COVENANTS | 75 76 |
Section 8.01 | Financial Statements; Ratings Change; Other Information | 76 |
Section 8.02 | Notices of Material Events | 79 80 |
Section 8.03 | Existence; Conduct of Business | 79 81 |
Section 8.04 | Payment of Obligations | 80 81 |
Section 8.05 | Performance of Obligations Under Loan Documents | 80 81 |
Section 8.06 | Operation and Maintenance of Properties | 80 81 |
Section 8.07 | Insurance | 81 82 |
Section 8.08 | Books and Records; Inspection Rights | 81 82 |
Section 8.09 | Compliance with Laws | 81 82 |
Section 8.10 | Environmental Matters | 81 83 |
Section 8.11 | Further Assurances | 82 83 |
Section 8.12 | Title Information[Intentionally Omitted] | 83 84 |
Section 8.13 | Additional Collateral; Additional Guarantors | 84 |
Section 8.14 | ERISA Compliance | 85 86 |
Section 8.15 | [Intentionally Omitted] | 86 |
Section 8.16 | Title | 86 |
Section 8.17 | Keepwell | 86 87 |
Section 8.18 | Additional Covenants Upon Issuance of Unsecured Notes | 86 87 |
ARTICLE IX. | NEGATIVE COVENANTS | 87 88 |
Section 9.01 | Financial Covenants | 87 88 |
Section 9.02 | Debt | 88 |
Section 9.03 | Liens | 89 |
Section 9.04 | Dividends, Distributions and Redemptions | 89 90 |
Section 9.05 | Investments, Loans and Advances | 90 |
Section 9.06 | Nature of Business | 91 |
Section 9.07 | Limitation on Leases | 91 |
Section 9.08 | Proceeds of Notes | 91 |
Section 9.09 | ERISA Compliance | 92 |
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(continued)
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| Page |
Section 9.10 | Sale or Discount of Receivables | 93 |
Section 9.11 | Mergers; Etc | 93 |
Section 9.12 | Sale of Properties | 93 |
Section 9.13 | Transactions with Affiliates | 94 |
Section 9.14 | Subsidiaries | 94 |
Section 9.15 | Negative Pledge Agreements; Dividend Restrictions | 94 |
Section 9.16 | Gas Imbalances, Take-or-Pay or Other Prepayments | 95 |
Section 9.17 | Swap Transactions | 95 |
Section 9.18 | Tax Status as Partnership; Operating Agreements; Material Contracts | 97 |
Section 9.19 | Acquisition Properties | 97 |
Section 9.20 | Accounting Changes | 97 |
Section 9.21 | Prepayment of Permitted Unsecured Notes; Amendments to Debt Documents | 97 |
Section 9.22 | Marketing Activities | 98 |
Section 9.23 | Joint Ventures | 98 |
ARTICLE X. | EVENTS OF DEFAULT; REMEDIES | 98 99 |
Section 10.01 | Events of Default | 98 99 |
Section 10.02 | Remedies | 100 101 |
Section 10.03 | Disposition of Proceeds | 102 |
ARTICLE XI. | THE ADMINISTRATIVE AGENT AND COLLATERAL AGENT | 102 |
Section 11.01 | Appointment; Powers | 102 |
Section 11.02 | Duties and Obligations of Administrative Agent and Collateral Agent | 102 |
Section 11.03 | Action by Agent | 103 |
Section 11.04 | Reliance by Agent | 104 |
Section 11.05 | Subagents | 104 |
Section 11.06 | Resignation or Removal of Agents | 104 105 |
Section 11.07 | Agents and Lenders | 105 |
Section 11.08 | No Reliance | 105 |
Section 11.09 | Administrative Agent and Collateral Agent May File Proofs of Claim | 105 106 |
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(continued)
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Section 11.10 | Authority of Administrative Agent and Collateral Agent to Release Collateral and Liens | 106 |
Section 11.11 | The Arranger, etc. | 106 107 |
ARTICLE XII. | MISCELLANEOUS | 107 |
Section 12.01 | Notices | 107 |
Section 12.02 | Waivers; Amendments | 108 |
Section 12.03 | Expenses; Indemnity; Damage Waiver | 109 110 |
Section 12.04 | Successors and Assigns | 112 |
Section 12.05 | Survival; Revival; Reinstatement | 115 |
Section 12.06 | Counterparts; Integration; Effectiveness | 116 |
Section 12.07 | Severability | 116 |
Section 12.08 | Right of Setoff | 116 117 |
Section 12.09 | GOVERNING LAW; JURISDICTION; CONSENT TO SERVICE OF PROCESS | 117 |
Section 12.10 | Headings | 118 |
Section 12.11 | Confidentiality | 118 |
Section 12.12 | Maximum Interest | 118 119 |
Section 12.13 | EXCULPATION PROVISIONS | 119 |
Section 12.14 | Collateral Matters; Swap Agreements | 120 |
Section 12.15 | No Third Party Beneficiaries | 120 |
Section 12.16 | USA Patriot Act Notice | 120 |
Section 12.17 | Amendment and Restatement | 120 121 |
Section 12.18 | No General Partner’s Liability for Revolving Facility | 121 |
Section 12.19 | AcknowledgmentAcknowledgement and Consent to Bail-In of EEA Financial Institution Institutions | 127 122 |
Section 12.20 | Acknowledgement Regarding Any Supported QFCs | 122 |
Section 12.21 | RELEASE | 123 |
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THIRD AMENDED AND RESTATED CREDIT AGREEMENT
THIS THIRD AMENDED AND RESTATED CREDIT AGREEMENT dated as of March 31, 2015, is by and among Sanchez Midstream Partners LP, a limited partnership duly formed and existing under the laws of the State of Delaware (the “Borrower”), each of the Lenders from time to time party hereto, Royal Bank of Canada (in its individual capacity, “Royal Bank of Canada”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”) and as collateral agent for the Lenders (in such capacity, together with its successors in such capacity, the “Collateral Agent”), RBC Capital Markets, as sole lead arranger and bookrunner.
WHEREAS, the Borrower, Société Générale, as administrative agent, and certain lenders, were parties to that certain Second Amended and Restated Credit Agreement dated as of May 30, 2013 (as amended, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Existing Credit Agreement”) whereby the lenders therein extended credit to the Borrower in the form of loans and letters of credit; and
WHEREAS, pursuant to the terms of that certain Assignment of Secured Indebtedness and Authorization to Assign Liens dated as of March 31, 2015, by and among the Borrower, the Existing Lenders, the Existing Agent, the Lenders, the Agent and the other parties thereto (the “Assignment Agreement”), the Existing Lenders have sold and assigned, and the Lenders have purchased and assumed, all of the outstanding loans and credit extensions outstanding under the Existing Agreement, together with the benefit of all of the related security documents and liens, as more particularly set forth therein; and
WHEREAS, the Borrower entered into a certain Purchase and Sale Agreement dated as of March 31, 2015 (the “Palmetto PSA”), by and among SEP III Holdings, LLC, a Delaware limited liability company, as seller (“Palmetto Seller”), SEP Holdings IV, LLC, a Delaware limited liability company and a Guarantor under this Agreement, as buyer (“Palmetto Buyer”), and Borrower, pursuant to which Palmetto Buyer acquired certain wellbores producing from the Eagle Ford Shale formation in Gonzales County, Texas, and more particularly described in the Palmetto PSA (such acquisition, the “Palmetto Acquisition”); and
WHEREAS, the Borrower has entered into a certain Purchase and Sale Agreement between Sanchez Energy Corporation, a Delaware corporation (“SN”), SN Catarina, LLC, a Delaware limited liability company (“SN Catarina”), and Borrower dated as of September 25, 2015 (the “Catarina PSA”), pursuant to which the Borrower intends to acquireacquired from SN, indirectly by acquisition of the equity of Catarina Midstream, LLC, a Delaware limited liability company, certain midstream oil and gas assets located in Dimmit and Webb Counties, Texas, as more particularly described in the Catarina PSA for approximately $348,840,250 (such acquisition, the “Catarina Acquisition”); and
WHEREAS, the parties hereto desire to enter into this Agreement, which shall amend and restate and otherwise supersede the Existing Credit Agreement and provides that the Lenders may continue to extend credit to the Borrower as provided in this Agreement; and
WHEREAS, the Borrower has requested that the Lenders provide Loan Commitments (to include availability for Loans and Letters of Credit), pursuant to which Loans will be made from
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time to time prior to the Termination Date (including credit the proceeds of which, together with other consideration, were used to consummate the Palmetto Acquisition), and Letter of Credit Commitments, pursuant to which Letters of Credit will be issued from time to time prior to the Termination Date; and
WHEREAS, the Lenders and the Issuer are willing, on the terms and subject to the conditions hereinafter set forth, to extend the Loan Commitments and make Loans to the Borrower and issue (or participate in) Letters of Credit;
NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and of the loans, extensions of credit and commitments hereinafter referred to, the Borrower, the Administrative Agent, the Collateral Agent, the Issuer and the Lenders agree to amend and restate in their entirety the Existing Credit Agreement and hereto agree as follows:
Section 1.01 Terms Defined Above. As used in this Agreement, each term defined above has the meaning indicated above. |
Section 1.02 Certain Defined Terms. As used in this Agreement, the following terms have the meanings specified below: |
“2019 Warrant” means the warrant exercisable for Junior Securities issued to the holder of the Class C Preferred Units on August 2, 2019 and any future warrants exercisable for Junior Securities issued pursuant to the 2019 Warrant.
“ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a fluctuating rate determined by reference to the Alternate Base Rate.
“Acceptable Security Interest” in any Property means a Lien which (a) exists in favor of the Collateral Agent for the benefit of the Administrative Agent, the Issuer, the Lenders, and any Swap Counterparty, (b) is superior to all Liens or rights of any other Person in the Property encumbered thereby, other than Excepted Liens, (c) secures the Obligations, and (d) is perfected and enforceable, subject to general principles of equity and the rights of debtors under applicable Debtor Relief Laws.
“Act” has the meaning assigned to such term in Section 12.16.
“Additional Lender” has the meaning assigned to such term in Section 2.06(c).
“Additional Lender Agreement” has the meaning assigned to such term in Section 2.06(c).
“Adjusted EBITDA” means, for any period, the sum of Consolidated Net Income for such period plus (minus) the following expenses or charges to the extent deducted from Consolidated Net Income in such period: Interest Expense, depreciation, depletion, amortization, exploration expenses, write off of deferred financing fees, impairment of long-lived assets, (gain) loss on sale of assets, (gain) loss from equity investment, accretion of asset retirement obligation, unrealized (gain) loss on oil, natural gas and natural gas liquids derivatives and realized (gain) loss on cancelled oil, natural gas and natural gas liquids derivatives, and other similar charges; provided, however, that if the Borrower , any Consolidated Subsidiary shall acquire or dispose of
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(whether in one or a series of related transactions) any Oil and Gas Property during such period having an aggregate fair market value in excess of $5,000,000 or any Midstream Properties having, individually or in the aggregate, a Midstream Attributed Value in excess of five percent (5%) of the then effective Midstream Component since the last recalculation pursuant to Section 2.07(h)(ia), then Adjusted EBITDA shall be calculated after giving pro forma effect to such acquisition or disposition, as if such acquisition or disposition had occurred on the first day of such period.
“Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate
“Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent.
“Advance” means any advance hereunder of monies by a Lender to the Borrower as part of a Borrowing and refers to an ABR Loan or a Eurodollar Loan.
“Affected Lender” has the meaning assigned to such term in Section 5.06.
“Affected Loans” has the meaning assigned to such term in Section 5.05.
“Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified.
“Agents” means each of the Administrative Agent, the Collateral Agent, any Person identified as a “Co-Syndication Agent,” any Person identified as a “Co-Documentation Agent” or any combination of them as the context requires and also includes any Person identified as “Lead Arranger” or “Bookrunner.”
“Aggregate Maximum Credit Amount” means $500,000,000, as the same may be reduced or terminated pursuant to Section 2.06, or otherwise modified in accordance with this Agreement.Term Loan Commitment Amount” means, as of any date of determination, an amount equal to the sum of all of the Lenders’ Term Loan Commitments. The Aggregate Term Loan Commitment Amount on the Ninth Amendment Effective Date is $155,000,000.
“Agreement” means this Third Amended and Restated Credit Agreement, as the same may from time to time be amended, restated, amended and restated, supplemented or otherwise modified.
“Alternate Base Rate” means, for any day, a rate per annum equal to the greatest of (a) the Base Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus ½ of 1% and (c) the Adjusted LIBO Rate for a one month interest period in effect on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1%; provided that in no event shall the Alternate Base Rate be less than 0% per annum. Any change in the Alternate Base Rate due to a change in the Base Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate shall be effective from and including the effective day of such change in the Base Rate, the Federal Funds Effective Rate and the Adjusted LIBO Rate, respectively.
“Applicable Margin” means, for any day and with respect to (a) all Loans maintained as Eurodollar Loans or ABR Loans or (b) Commitment Fee Rate, the applicable percentage set forth
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below corresponding to the Borrowing Base Utilization Percentage: ratio of Maximum Total Net Debt to Adjusted EBITDA (as calculated in Section 9.01(b)) on such date:
Borrowing Base Utilization PercentageMaximum Total Net Debt to Adjusted EBITDA
| Eurodollar Loan | ABR Loan | Commitment Fee Rate |
2.50% | 1.50% | ||
|
|
|
|
Each change in the Applicable Margin as a result of a change in the Borrower’s ratio of Maximum Total Net Debt to Adjusted EBITDA (as calculated in Section 9.01(b)) shall apply during the period commencing on the effective date ofdate the Borrower delivers the applicable compliance certificate pursuant to Section 8.01(c) reflecting such change and ending on the date immediately preceding the effective date of the next such change in the Borrower’s ratio of Maximum Total Net Debt to Adjusted EBITDA (as calculated in Section 9.01(b)), provided, however, that if at any time the Borrower fails to deliver a Reserve Reportcompliance certificate pursuant to Section 2.07,8.01(c), then the “Applicable Margin” shall meanmeans the rate per annum set forth on the grid when the Borrowing Base Utilization Percentageratio of Maximum Total Net Debt to Adjusted EBITDA is at its highest level. If for any reason, based upon incorrect or inaccurate information provided to the Administrative Agent or the Lenders by the Borrower, it is determined that a higher Applicable Margin should have applied to a period than was actually applied, then the proper margin shall be applied retroactively, and the Borrower shall pay to the Administrative Agent, for the benefit of the Lenders, promptly on demand therefor, an amount equal to the difference between the amount of interest and fees that would have accrued using the proper margin and the amount actually paid.
“Applicable Percentage” means, (i) with respect to any Revolving Lender at any time, the percentage of the Elected CommitmentMaximum Revolving Credit Amount represented by such Lender’s Commitment Amount at such timeRevolving Lender’s Revolving Loan Commitment, and (ii) with respect to any Term Lender (x) on the Ninth Amendment Effective Date, the percentage of the Aggregate Term Loan Commitment Amount represented by such Term Lender’s Term Loan Commitment Amount and (y) at any time after the Ninth Amendment Effective Date, the percentage of the aggregate principal amount of all outstanding Term Loans represented by the principal amount of such Term Lender’s outstanding Term Loans. The initial Applicable Percentages of the Revolving Lenders on the Ninth Amendment Effective Date are set forth on Annex I and the Applicable Percentage of the Term Lenders on the Ninth Amendment Effective Date is set forth on Annex II.
“Approved Counterparty” means (a) any Lender or any Affiliate of a Lender, (b) any other Person whose long term senior unsecured debt rating is A by S&P or A2 by Moody’s (or their
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equivalent) or higher, and (c) any other Person approved by the Administrative Agent in its sole and absolute discretion.
“Approved Engineer” means Netherland, Sewell and Associates, Inc., Ryder Scott Company, L.P., or any other independent petroleum engineer satisfactory to the Administrative Agent in its sole and absolute discretion.
“Approved Fund” means any Person (other than a natural Person) that (a) is engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business, and (b) is administered or managed by a Lender, an Affiliate of a Lender or a Person or an Affiliate of a Person that administers or manages a Lender.
“Arranger” means RBC Capital Markets in its capacity as sole lead arranger and bookrunner hereunder.
“Assignment Agreement” has the meaning ascribed thereto in the Recitals.
“Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 12.04(b)), and accepted by the Administrative Agent, in the form of Exhibit D or any other form approved by the Administrative Agent.
“Availability Period” means the period from and including the ClosingNinth Amendment Effective Date to but excluding the Termination Date.
“Available Cash” means, with respect to any fiscal quarter ending prior to the Termination Date:
(a)the sum of (i) all cash and Cash Equivalents of the Borrower on hand at the end of such fiscal quarter; and (ii) all additional cash and Cash Equivalents of the Borrower on hand on the date of determination of Available Cash with respect to such fiscal quarter resulting from working capital borrowings made prior to the end of such fiscal quarter, less
(b)the amount of any cash reserves established by the board of directors or equivalent governing body of the General Partner for the Borrower to (i) provide for the proper conduct of the business of the Borrower (including reserves for future maintenance capital expenditures including drilling and for anticipated future credit needs of the Borrower), (ii) comply with Governmental Requirements or any loan agreement, security agreement, mortgage, debt instrument or other agreement or obligation to which the Borrower or a Consolidated Subsidiary is a party or by which it is bound or its assets are subject or (iii) provide funds for distributions with respect to any one or more of the next four fiscal quarters.
“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
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“Base Rate” means, at any time, the rate of interest then most recently established by the Administrative Agent in New York or such other office as the Administrative Agent shall designate in writing, as its base rate for dollars loaned in the United States. The Base Rate is not necessarily intended to be the lowest rate of interest determined by the Administrative Agent in connection with extensions of credit.
“Beneficial Ownership Certification” means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulation.
“Beneficial Ownership Regulation” means 31 C.F.R. § 1010.230.
“BHC Act Affiliate” means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.
“Board” means the Board of Governors of the Federal Reserve System of the United States of America or any successor Governmental Authority.
“Borrowing” means Loans made or continued on the same date and, with respect to Eurodollar Loans, as to which a single Interest Period is in effecta Revolving Loan Borrowing or Term Loan Borrowing, as applicable.
“Borrowing Base” means, at any time, an amount equal to the sum of the RBL Component and the Midstream ComponentMidstream Adjusted EBITDA for the most recently ended period of four fiscal quarters for which a compliance certificate has been provided pursuant to Section 8.01(c), multiplied by the Midstream Multiplier.
“Borrowing Base Deficiency” means the aggregate outstanding amount, if any, by which the sum of the Revolving Credit Exposure and the aggregate outstanding principal amount of the Term Loans exceeds the Loan Limit.“Borrowing Base Utilization Percentage” means, as of any day, the fraction expressed as a percentage, the numerator of which is the Revolving Credit Exposure on such day, and the denominator of which is the lesser of the Elected Commitment Amount and the Borrowing Base in effect on such dayBorrowing Base.
“Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03.
“Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City or Houston, Texas are authorized or required by law to remain closed; and if such day relates to a Borrowing or continuation of, a payment or prepayment of principal of or interest on, or the Interest Period for a Eurodollar Loan or a notice by the Borrower with respect to any such Borrowing or continuation, payment, prepayment, or Interest Period, any day which is also a day on which dealings in dollar deposits are carried out in the London interbank market.
“Capital Leases” means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, recorded as capital leases on the balance sheet of the Person liable (whether contingent or otherwise) for the payment of rent thereunder.
“Carnero Gathering Agreement” means that certain Firm Gas Gathering Agreement by and among SN, SN Catarina and TPL SouthTex Processing Company dated as of October 2, 2015.
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“Carnero Services Agreement” means that certain Services and Secondment Agreement between Carnero Gathering LLC, as owner, and TPL SouthTex Processing Company, as service provider, dated as of June 23, 2016.
“Carnero Transportation Services Agreement” means that certain Amended and Restated Transportation Services Agreement between Carnero Gathering LLC, as owner, and TPL SouthTex Processing Company LP, as shipper, dated as of June 23, 2016.
“Cash Collateral Account” has the meaning assigned to such term in Section 2.08(j).
“Cash Collateralize” means, with respect to a Letter of Credit, the deposit of immediately available funds into a cash collateral account maintained with (or on behalf of) the Administrative Agent on terms reasonably satisfactory to the Administrative Agent.
“Cash Equivalent” means, at any time:
(a)any direct obligation of (or unconditionally guaranteed by) the United States or a State thereof (or any agency or political subdivision thereof, to the extent such obligations are supported by the full faith and credit of the United States or a State thereof) maturing not more than one year after such time;
(b)commercial paper maturing not more than 270 days from the date of issue, that is issued by (i) a corporation (other than an Affiliate of any Obligor) organized under the laws of any State of the United States or of the District of Columbia, and rated A1 or higher by S&P or P1 or higher by Moody’s or (ii) any Lender (or its holding company);
(c)any certificate of deposit, time deposit or bankers acceptance, maturing not more than one year after its date of issuance, that is issued by (i) any bank or trust company organized under the laws of the United States (or any State thereof), and that has (A) a short term deposit rating of A2 or higher from Moody’s or A or higher from S&P and (B) a combined capital and surplus greater than $500,000,000, or (ii) any Lender;
(d)shares of money market mutual or similar funds which invest primarily in assets satisfying the requirements of clauses (a) through (c) of this definition; or
(e)money market funds that (i) purport to comply generally with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act of 1940, as amended, (ii) are rated AAA by S&P or Aaa by Moody’s or carrying an equivalent rating by a national recognized rating agency, and (iii) have portfolio assets of at least $5,000,000,000.
“Casualty Event” means any loss, casualty or other insured damage to, or any nationalization, taking under power of eminent domain or by condemnation or similar proceeding of, any Property of the Borrower or any of its Subsidiaries having a fair market value in excess of $100,000 in the aggregate for any calendar year.
“Catarina Gathering Agreement” shall meanmeans that certain Firm Gathering and Processing Agreement dated as of October 14, 2015, between SN Catarina, LLC, as producer, and Catarina Midstream, LLC, as gatherer, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.
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“Catarina Minimum Quantity” shall meanmeans 142,000 mcf per day multiplied by the number of days in the applicable quarter.
“Catarina PSA” has the meaning assigned to such term in the Recitals.
“Change in Control” means any one or more of the following events shall occur: (a) the General Partner shall cease to be the sole general partner of the Borrower, or (b) the Permitted Holders, collectively, shall cease to own, directly or indirectly, more than 50% of the Equity Interests of the General Partner or shall cease to Control, directly or indirectly, the General Partner.
“Change in Law” meansthe occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any law, rule, treaty or regulation after the date of this Agreementor treaty, (b) any change in any law, rule, treaty or regulation or treaty or in the administration, interpretation, implementation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or the Issuer (or, for purposes of Section 5.01(b), by any lending office of such Lender or by such Lender’s or the Issuer’s holding company, if any) withor (c) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) ofby any Governmental Authority made or issued after the date of this Agreement; provided that, notwithstanding anything herein to the contrary, (ix) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (iiy) all requests, rules, guidelines or directives concerning capital adequacy promulgated by the Bank for International Settlements, the Basel Committee on Banking Regulations and Supervisory PracticesSupervision (or any successor or similar authority) or the United States financialor foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law”, regardless of the date enacted, adopted, promulgated or issued.
“Class C Preferred PIK Unit” means a Class C Preferred Unit issued in lieu of a partial or full cash payment of the required quarterly distribution on the Class C Preferred Units as permitted by Section 5.9(b) of the Partnership Agreement.
“Class C Preferred Unit” means a Class C Preferred Unit representing limited partner interests in the Borrower, including any Class C Preferred PIK Units.
“Closing Date” means the date of this Agreement.
“Code” means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute.
“Collateral” shall meanmeans the Collateral as defined in the Pledge and Security Agreement, and the Mortgaged Property.
“Collateral Agent” means Royal Bank of Canada, as collateral agent, under the Security Instruments (together with any successor(s) and assign(s) thereto)has the meaning assigned to such term in the Preamble.
“Commitment Amount” means, (i) as to each Revolving Lender at any time, the aggregate amount of the Revolving Loan Commitment of such Revolving Lender set forth opposite such Revolving Lender’s name on Annex I attached hereto under the caption “Revolving Loan Commitment Amount”, as the same (as any such Revolving Loan Commitment may be (a) increased, reduced or terminated from time to time pursuant to Section 2.06 or (b) modified from
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time to time pursuant to any assignment permitted by Section 12.04(b)), and (ii) as to each Term Lender on the Ninth Amendment Effective Date, the amount of the Term Loan Commitment of such Term Lender set forth opposite such Term Lender’s name on Annex II attached hereto under the caption “Term Loan Commitment Amount”.
“Commitment Fee” has the meaning assigned to such term in Section 3.04(a).
“Commitment Fee Rate” means the rate per annum determined from time to time based on the percentage reflected in the definition of Applicable Margin.
“Commitment Increase Agreement” has the meaning assigned to such term in Section 2.06(c).
“Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
“Common Unit” means a common unit representing limited partner interests in the Borrower.
“Consolidated Net Income” means with respect to the Borrower and the Consolidated Subsidiaries, for any period, the aggregate of the net income (or loss) of the Borrower and the Consolidated Subsidiaries after allowances for taxes for such period determined on a consolidated basis in accordance with GAAP; provided that there shall be excluded from such net income (to the extent otherwise included therein) the following (all determined in accordance with GAAP): (a) the net income of any Person in which the Borrower or a Consolidated Subsidiary has an interest (which interest does not cause the net income of such other Person to be consolidated with the net income of the Borrower and the Consolidated Subsidiaries), except to the extent of the amount of dividends or distributions actually paid in cash during such period by such other Person to the Borrower or to a Consolidated Subsidiary, as the case may be; (b) the net income (but not loss) during such period of any Consolidated Subsidiary to the extent that the declaration or payment of dividends or similar distributions or transfers or loans by that Consolidated Subsidiary is not at the time permitted by operation of the terms of its charter or any agreement, instrument or Governmental Requirement applicable to such Consolidated Subsidiary or is otherwise restricted or prohibited; (c) the net income (or loss) of any Person acquired in a pooling-of-interests transaction for any period prior to the date of such transaction; (d) any extraordinary gains or losses during such period; (e) non-cash gains, losses or adjustments under Accounting Standards Codification 815 as a result of changes in the fair market value of derivatives; (f) any gains or losses attributable to writeups or writedowns of assets, including ceiling test writedowns; and (g) non-cash share-based payments under Accounting Standards Codification 718.
“Consolidated Subsidiaries” means each Subsidiary of the Borrower (whether now existing or hereafter created or acquired) the financial statements of which shall be (or should have been) consolidated with the financial statements of the Borrower in accordance with GAAP.
“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.
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“Covered Entity” means any of the following:
(a) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(b) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(c) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
“Covered Party” shall have the meaning provided in Section 12.20.
“Current Ratio” means, as of any time of determination, the ratio of:
(a)consolidated current assets of the Borrower and its Consolidated Subsidiaries but including any unused availability under this Agreement and excluding therefrom any current non-cash asset (including in respect of Swap Transactions) described in or calculated pursuant to the requirements of Accounting Standards Codification 815 or 410, each as amended (provided that, for the avoidance of doubt, the calculation of consolidated current assets shall include any current assets in respect of the termination of any Swap Transaction)
(b)consolidated current liabilities of the Borrower and its Consolidated Subsidiaries but excluding therefrom any current maturities of Debt (to the extent such payments are not past due) and current non-cash liabilities (including in respect of Swap Transactions) described in or calculated pursuant to the requirements of Accounting Standards Codification 815 or 410, each as amended (provided that, for the avoidance of doubt, the calculation of consolidated current liabilities shall include any current liabilities in respect of the termination of any Swap Transaction).
“Debt” means, for any Person, the sum of the following (without duplication): (a) all obligations of such Person for borrowed money or evidenced by bonds, bankers’ acceptances, debentures, notes or other similar instruments; (b) all obligations of such Person (whether contingent or otherwise) in respect of letters of credit, surety or other bonds and similar instruments; (c) all accounts payable, accrued expenses, liabilities or other obligations of such Person, in each such case to pay the deferred purchase price of Property or services; (d) all obligations under Capital Leases; (e) all obligations under Synthetic Leases; (f) all Debt (as defined in the other clauses of this definition) of others secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) a Lien on any Property of such Person, whether or not such Debt is assumed by such Person (but, to the extent such obligations or liabilities are limited in recourse to the Obligors, the amount of such liabilities or obligations constituting Debt shall be limited to the lesser of the fair market value of such property and the amount of the obligations or liabilities assumed); (g) all Debt (as defined in the other clauses of this definition) of others guaranteed by such Person or in which such Person otherwise assures a creditor against loss of the Debt (howsoever such assurance shall be made) to the extent of the lesser of the amount of such Debt and the maximum stated amount of such guarantee or assurance against loss; (h) all obligations or undertakings of such Person to maintain or cause to be maintained the financial position or covenants of others or to purchase
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the Debt or Property of others, in each case, intended as a means of credit enhancement for creditors of such others and not as a purchase and sale agreement; (i) obligations to deliver commodities, goods or services, including, without limitation, Hydrocarbons, in consideration of one or more advance payments, other than gas balancing arrangements in the ordinary course of business; (j) obligations to pay for goods or services whether or not such goods or services are actually received or utilized by such Person; (k) any Debt of a partnership for which such Person is liable either by agreement, by operation of law or by a Governmental Requirement but only to the extent of such liability; (l) Disqualified Capital Stock; and (m) the undischarged balance of any production payment created by such Person or for the creation of which such Person directly or indirectly received payment; provided however, that Debt shall exclude (i) all Swap Obligations and guarantees in respect thereof and (ii, (ii) Class C Preferred Units, including any Class C Preferred PIK Units and Interest Expense related thereto and (iii) for purposes of calculating Total Net Debt, accounts payable and other accrued liabilities (for the deferred purchase price of Property or services) from time to time incurred in the ordinary course of business with respect to which no more than 90 days have elapsed since the date of invoice or that are being contested in good faith by appropriate action and for which adequate reserves are maintained in accordance with GAAP and other obligations to pay for goods or services whether or not such goods or services are actually received or utilized by such Person. The Debt of any Person shall include all obligations of such Person of the character described above to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is not included as a liability of such Person under GAAP.
“Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally (including, to the extent applicable, the rights and remedies of creditors of a “financial company” as such term is defined in Section 201 of the Dodd-Frank Wall Street Reform and Consumer Protection Act) or providing for the relief of debtors.
“Default” means any event or condition which constitutes an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.
“Default Right” shall have the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
“Defaulting Lender” means, subject to Section 2.10(g), any Lender that (a) has failed to (i) fund all or any portion of its Loans within three Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies the Administrative Agent and the Borrower in writing that such failure is the result of such Lender’s determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable default, shall be specifically identified in such writing) has not been satisfied, or (ii) pay to the Administrative Agent, the Issuer, or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit) within three Business Days of the date when due, (b) has notified the Borrower, the Administrative Agent or the Issuer in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender’s obligation to fund a Loan hereunder and states that such position is based on such Lender’s determination that a condition precedent to funding (which condition precedent,
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together with any applicable default, shall be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by the Administrative Agent or the Borrower, to confirm in writing to the Administrative Agent and the Borrower that it will comply with its prospective funding obligations hereunder (provided that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by the Administrative Agent and the Borrower), (d) has, or has a direct or indirect parent companyParent Company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity; provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interestEquity Interest in that Lender or any direct or indirect parent companyParent Company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender, or (e) has become the subject of a Bail-In Action; provided, further, that the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official by a supervisory authority or regulator with respect to a Lender or a direct or indirect parent companyParent Company of a Lender under the Dutch Financial Supervision Act 2007 (as amended from time to time and including any successor legislation) shall not be deemed to result in an event described in (d) hereof. Any determination by the Administrative Agent that a Lender is a Defaulting Lender under clauses (a) through (e) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender (subject to Section 2.10(g)) upon delivery of written notice of such determination to the Borrower, the Issuer, and each Lender.
“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 (that 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 (that 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, Letter of Credit Exposure or other obligations hereunder outstanding and all of the Loan Commitments are terminated.
“dollars” or “$” refers to lawful money of the United States of America.
“Domestic Subsidiary” means any Subsidiary that is organized under the laws of the United States of America or any state thereof or the District of Columbia.
“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA
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Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.
“Elected Commitment Amount” means the aggregate amount of the Lenders’ Commitment Amounts, as the same may be increased, reduced or terminated from time to time pursuant to Section 2.06, or otherwise modified in accordance with this Agreement.
“Elected Commitment Amount Increase Notice” means a notice from the Administrative Agent to the Lenders and the Borrower that an increase in the Elected Commitment Amount has become effective in accordance with Section 2.06.
“Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; or (d) any other Person (other than a natural Person, the Borrower, a Defaulting Lender, any Affiliate of the Borrower or any other Person taking direction from, or working in concert with, the Borrower or any of the Borrower’s Affiliates) approved by the Administrative Agent and the Issuer (such approvals not to be unreasonably withheld).
“Environmental Laws” means any and all applicable Governmental Requirements pertaining in any way to health, safety, the environment or the preservation or reclamation of natural resources, in effect in any and all jurisdictions in which the Borrower or any of its Subsidiaries is conducting or at any time has conducted business, or where any Property of the Borrower or any of its Subsidiaries is located, including without limitation, the Oil Pollution Act of 1990 (“OPA”), as amended, the Clean Air Act, as amended, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980 (“CERCLA”), as amended, the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act of 1970, as amended, the Resource Conservation and Recovery Act of 1976 (“RCRA”), as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous Materials Transportation Act, as amended, and other environmental conservation or protection Governmental Requirements. The term “oil” shall have the meaning specified in OPA, the terms “hazardous substance” and “release” (or “threatened release”) have the meanings specified in CERCLA and the terms “solid waste” and “disposal” (or “disposed”) have the meanings specified in RCRA and the term “oil and gas waste” shall have the meaning specified in Section 91.1011 of the Texas Natural Resources Code (“Section 91.1011”); provided, however, that (a) in the event either OPA, CERCLA, RCRA or Section 91.1011 is amended so as to broaden the meaning of any term defined thereby, such broader meaning shall apply subsequent to the effective date of such amendment and (b) to the extent the laws of the state or other jurisdiction in which any Property of the Borrower or any of its Subsidiaries is located establish a meaning for “oil,” “hazardous substance,” “release,” “solid waste,” “disposal” or “oil and gas waste”
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which is broader than that specified in either OPA, CERCLA, RCRA or Section 91.1011, such broader meaning shall apply with respect to Property located in such state or other jurisdiction.
“Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial interests in a trust or other equity ownership interests in a Person, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any such Equity Interest.
“ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute.
“ERISA Affiliate” means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).
“ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate a Pension Plan under Section 4041(c) of ERISA, the treatment of a Plan amendment as a termination under Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; (f) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate; or (g) the determination that any Pension Plan or Multiemployer Plan is considered an at-risk plan or a plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA.
“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.
“Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.
“Event of Default” has the meaning assigned to such term in Section 10.01.
“Excepted Liens” shall meanmeans: (a) Liens for taxes, assessments or other governmental charges or levies (x) not yet due or (y) that are being contested in good faith by appropriate action and for which adequate reserves have been maintained; (b) Liens in connection with workmen’s compensation, unemployment insurance or other social security, old age pension or public liability obligations not yet due or that are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP; (c) operators’, vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’, workmen’s, materialmen’s, construction or other like Liens arising by operation of law in the ordinary course of business or incident to the exploration, development, operation and maintenance of Oil and Gas Properties or statutory landlord’s liens, each of which is in respect of obligations that are not
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delinquent or that are being contested in good faith by appropriate proceedings and for which adequate reserves have been maintained in accordance with GAAP; (d) contractual Liens that arise in the ordinary course of business under operating agreements, joint venture agreements, oil and gas partnership agreements, oil and gas leases, farm-out agreements, division orders, contracts for the sale, transportation or exchange of oil and natural gas, unitization and pooling declarations and agreements, area of mutual interest agreements, overriding royalty agreements, marketing agreements, processing agreements, net profits agreements, development agreements, gas balancing or deferred production agreements, injection, repressuring and recycling agreements, salt water or other disposal agreements, seismic or other geophysical permits or agreements, and other agreements which are usual and customary in the oil and gas business and are for claims that are not delinquent or which are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP, provided that any such Lien referred to in this clause does not materially impair the use of the Property covered by such Lien for the purposes for which such Property is held by the Borrower or any of its Subsidiaries or materially impair the value of such Property subject thereto; (e) encumbrances (other than to secure the payment of borrowed money or the deferred purchase price of Property or services), easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations in any rights of way or other Property of the Borrower or any of its Subsidiaries for the purpose of roads, pipelines, transmission lines, transportation lines, distribution lines for the removal of gas, oil, coal or other minerals or timber, and other like purposes, or for the joint or common use of real estate, rights of way, facilities and equipment, and defects, irregularities, zoning restrictions and deficiencies in title of any rights of way or other Property that in the aggregate do not materially impair the use of such rights of way or other Property for the purposes of which such rights of way and other Property are held by the Borrower or any Subsidiary or materially impair the value of such Property subject thereto; (f) deposits of cash or Cash Equivalents to secure the performance of bids, tenders, trade contracts, leases, statutory obligations and other obligations of a like nature incurred in the ordinary course of business (all of the foregoing other than for Debt) or to secure obligations on surety or appeal bonds; (g) Liens permitted by the Security Instruments; (h) Liens arising solely by virtue of any statutory or common law provision relating to banker’s liens, rights of set-off or similar rights and remedies and burdening only deposit accounts or other funds maintained with a creditor depository institution, provided that no such deposit account is a dedicated cash collateral account or is subject to restrictions against access by the depositor in excess of those set forth by regulations promulgated by the Board and no such deposit account is intended by the Borrower or any of its Subsidiaries to provide collateral to the depository institution; (i) judgment and attachment Liens not giving rise to an Event of Default; (j) Liens comprised of UCC financing statement filings regarding operating leases covering only the Property leased thereunder, and (k) with respect to any Joint Venture, customary liens set forth in the organizational documents of such Joint Venture, and customary transfer restrictions set forth therein or arising under applicable laws.
“Excess Cash” has the meaning assigned to such term in Section 3.03(c)(iv).
“Excluded Cash” means the aggregate amount of cash and Cash Equivalents permitted to be paid by the Borrower or its Subsidiaries in accordance with the Credit Agreement and the other Loan Documents for which the Borrower or such Subsidiary reasonably expects to use within five (5) Business Days from the date of such determination.
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“Excluded Hedge Obligation” means, with respect to any Obligor, any Swap Obligation if and to the extent that all or a portion of such Swap Obligation or the guarantee of such Obligor of, or the grant by such Obligor of a security interest or other Lien to secure, such Swap Obligation (or any guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Obligor’s failure for any reason to constitute a Qualified ECP Obligor at the time such Obligor’s guarantee or such Obligor’s grant of such security interest or other Lien becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guarantee obligation or other liability or security interest or other Lien is or becomes illegal.
“Excluded Taxes” means any of the following Taxes imposed on or with respect to a Recipient or required to be withheld or deducted from a payment to a Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its applicable lending office located in the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or commitment (other than pursuant to an assignment request by the Borrower under Section 5.06) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 5.03, amounts with respect to such Taxes were payable either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Recipient’s failure to comply with Section 5.03(f) or (g), and (d) any U.S. federal withholding Taxes imposed under FATCA.
“Existing Agent” shall meanmeans Société Générale, as administrative agent for the Existing Lenders under the Existing Credit Agreement.
“Existing Credit Agreement” shall have the meaning assigned to such term in the Recitals.
“Existing Lenders” shall meanmeans the “Lenders” under and as defined in the Existing Credit Agreement.
“Existing Loans” shall meanmeans the “Loans” under and as defined in the Existing Credit Agreement.
“Existing Obligations” shall meanmeans the “Obligations” under and as defined in the Existing Credit Agreement outstanding on the Closing Date.
“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreements entered into pursuant to Section 1471(b)(1) of the Code, and any intergovernmental agreements related to or implementing the foregoing, or laws or
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regulations implementing such agreements, including any successor provisions, subsequent amendments, and administrative guidance promulgated thereunder (or which may be promulgated thereunder in the future).
“Federal Funds Effective Rate” means, for any day, a fluctuating interest rate per annum equal to:
(a)the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York; or
(b)if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by the Administrative Agent from three federal funds brokers of recognized standing selected by it.
“Fee Letter” means that certain Fee Letter dated as of July 15, 2015, among the Borrower and the Administrative Agent, and that certain Fee Letter dated as of November 12, 2019, among the Borrower and the Administrative Agent.
“Financial Officer” means, for any Person, the chief financial officer, principal accounting officer, treasurer or controller of such Person. Unless otherwise specified, all references to a Financial Officer shall meanmeans a Financial Officer of the General Partner, on behalf of the Borrower.
“Financial Statements” means the audited consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as of December 31, 20142018, and the related consolidated statement of income, members’ equity and cash flow of the Borrower and its Consolidated Subsidiaries for the fiscal year ended on such date.
“Flood Insurance Laws” means, to the extent applicable to any Obligor, Secured Party or Collateral, the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, the National Flood Insurance Reform Act of 1994, the Biggert-Waters Flood Insurance Reform Act of 2012 and the regulations issued in connection therewith by the Office of the Controller of the Currency, the Federal Reserve Board and other Governmental Authorities, each as it may be amended, reformed or otherwise modified from time to time.
“Foreign Lender” means any Lender that is not a U.S. Person.
“Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.
“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time subject to the terms and conditions set forth in Section 1.04.
“General Partner” means Sanchez Midstream Partners GP LLC, a Delaware limited liability company.
“Governmental Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
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government over the Borrower or any of its Subsidiaries, any of their Properties, any Agent, the Issuer or any Lender.
“Governmental Requirement” means any applicable law, statute, code, ordinance, order, determination, rule, regulation, judgment, decree, injunction, franchise, permit, certificate, license, authorization or other directive or requirement, whether now or hereinafter in effect, including, without limitation, Environmental Laws, energy regulations and occupational, safety and health standards or controls, of any Governmental Authority.
“Guarantee Agreement” means each agreement executed by the Guarantors in a form acceptable to the Administrative Agent and Lenders, as the same may be amended, modified or supplemented from time to time.
“Guarantors” means CEP Mid-Continent LLC, a Delaware limited liability company, Northeast Shelf Energy, L.L.C., an Oklahoma limited liability company, Mid-Continent Oilfield Supply, L.L.C., an Oklahoma limited liability company, SEP Holdings IV, LLC, a Delaware limited liability company, Catarina Midstream, LLC, a Delaware limited liability company, Seco Pipeline, LLC, a Delaware limited liability company and any additional Guarantors pursuant to Section 8.13.
“Highest Lawful Rate” means, with respect to each Lender, the maximum nonusurious interest rate, if any (or, if the context so requires, an amount calculated at such rate), that at any time or from time to time may be contracted for, taken, reserved, charged or received on the Notes or on other Obligations under laws applicable to such Lender which are presently in effect or, to the extent allowed by law, under such applicable federal laws which may hereafter be in effect and which allow a higher maximum nonusurious interest rate than Governmental Requirements allow as of the date hereof.
“Hydrocarbon Interests” means all rights, titles, interests and estates now or hereafter acquired in and to oil and gas leases, oil, gas and mineral leases, or other liquid or gaseous hydrocarbon leases, mineral fee interests, overriding royalty and royalty interests, net profit interests and production payment interests, including any reserved or residual interests of whatever nature.
“Hydrocarbons” means oil, gas, casinghead gas, drip gasoline, natural gasoline, condensate, distillate, liquid hydrocarbons, gaseous hydrocarbons, coal bed gas and occluded natural gas and all products refined or separated therefrom.
“Impacted Lender” means, at any time, a Lender (a) as to which the Administrative Agent or the Issuer has in good faith determined and notified the Borrower and, in the case of the Issuer, the Administrative Agent that such Lender or its Parent Company or a Subsidiary thereof has notified the Administrative Agent, or has stated publicly, that it will not comply with its funding obligations under any other loan agreement or credit agreement or other similar agreement or (b) that has, or whose Parent Company has, a non-investment grade rating from Moody’s (below Baa3) or S&P (below BBB-) or another nationally recognized rating agency. Any determination that a Lender is an Impacted Lender under clause (a) above will be made by the Administrative Agent or the Issuer, as the case may be, in its sole discretion acting in good faith. The Administrative Agent will promptly send to all parties hereto a copy of any notice to the Borrower provided for in this definition.
“Increasing Lender” has the meaning assigned to such term in Section 2.06(c)
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“Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of any Obligor under any Loan Document and (b) to the extent not otherwise described in clause (a), Other Taxes.
“Initial Reserve Report” means (i) the reserve report concerning Oil and Gas Properties of the Borrower and its Subsidiaries, prepared by Netherland, Sewell and Associates, Inc., effective as of December 31, 2014, and (ii) the Palmetto Reserve Report.
“Interest Election Request” means a request by the Borrower to continue a Borrowing in accordance with Section 2.04.
“Interest Expense” means, for any period, the sum (determined without duplication) of the aggregate gross interest expense of the Borrower and the Consolidated Subsidiaries for such period, including (a) to the extent included in interest expense under GAAP: (i) amortization of debt discount, (ii) capitalized interest and (iii) the portion of any payments or accruals under Capital Leases allocable to interest expense, plus the portion of any payments or accruals under Synthetic Leases allocable to interest expense whether or not the same constitutes interest expense under GAAP and (b) cash dividend payments by the Borrower in respect of any Disqualified Capital Stock; but excluding (w) non-cash gains, losses or adjustments under Accounting Standards Codification 815 as a result of changes in the fair market value of derivatives, (x) the portion of any quarterly distributions required to be paid by the Borrower in Class C Preferred PIK Units pursuant to the Partnership Agreement, (y) the non-cash accretion of the discount on the Class C Preferred Units and (z) the non-cash change in fair value of the 2019 Warrant, including, for each of (x)-(z), any accruals related thereto allocable to interest expense whether or not the same constitutes interest expense under GAAP.
“Interest Period” means with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, three or six months thereafter, as the Borrower may elect; provided, that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, and (b) any Interest Period pertaining to a Borrowing that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion or continuation of such Borrowing.
“Interim RBL Component Redetermination” has the meaning assigned to such term in Section 2.07(c).
“Interim RBL Component Redetermination Date” means the date on which a RBL Component that has been redetermined pursuant to an Interim RBL Component Redetermination becomes effective as provided in Section 2.07(c).
“Investment” means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of Equity Interests of any other Person or any agreement to make any such acquisition (including, without limitation, any “short sale” or any sale of any securities at a time when such securities are not owned by the Person entering into such short sale); (b) the
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making of any deposit for the purpose of acquisition of Equity Interests in or Debt of, or advance, loan or capital contribution to, assumption of Debt of, purchase or other acquisition of any other Debt or equity participation or interest in, or other extension of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement, contingent or otherwise, to resell such Property to such Person, but excluding any such advance, loan or extension of credit having a term not exceeding ninety (90) days representing the purchase price of inventory, equipment, or supplies sold by such Person in the ordinary course of business); (c) the purchase or acquisition (in one or a series of transactions) of Property of another Person that constitutes a business unit or (d) the entering into of any guarantee of, or other contingent obligation (including the deposit of any Equity Interests to be sold) with respect to, Debt or other liability of any other Person and (without duplication) any amount committed to be advanced, lent or extended to such Person.
“Issuer” means Royal Bank of Canada, in its capacity as an issuer of Letters of Credit hereunder, and its successors in such capacity as provided in Section 2.08(i).
“Joint Venture” means, as to any Person, any other Person (a) in which such Person owns fifty percent (50%) or less of an interest in the profits or capital of such other Person or lacks sufficient Equity Interests or other voting ownership interest to enable such Person ordinarily to elect a majority of the directors of such other Person and (b) the business purpose of which is to engage in Midstream Activities by acquiring or constructing, and thereafter owning and operating, Midstream Properties that are related by project type or class, geography or other similar characteristics, of the same type conducted by the Borrower or a Subsidiary. The definition of “Joint Venture” shall include Carnero GatheringG&P, LLC.
“Lenders” means the Persons listed on Annex I, and any Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption.Junior Securities” means any class or series of equity interest in the Borrower (excluding any options, rights, warrants and appreciation rights relating to an equity interest in the Borrower) that, with respect to distributions on such equity interests of cash or property and distribution upon liquidation of the Borrower (taking into account the intended effects of the allocation of gains and losses provided in the Partnership Agreement), ranks junior to the Class C Preferred Units, including, but not limited to, Common Units.
“Lender” means, as the context may require, any Revolving Lender or Term Lender, and “Lenders” means, collectively, the Revolving Lenders and the Term Lenders.
“Letter of Credit” means any letter of credit issued pursuant to this Agreement.
“Letter of Credit Agreements” means all letter of credit applications and other agreements (including any amendments, modifications or supplements thereto) submitted by the Borrower, or entered into by the Borrower, with the Issuer relating to any Letter of Credit issued by such Issuer.
“Letter of Credit Commitment” at any time means an amount equal to the lesserleast of Fifteen(a) Two Million Five Hundred Thousand Dollars ($15,000,000) or the2,500,000), (b) the Maximum Revolving Credit Amount, and (c) the Revolving Loan Limit.
“Letter of Credit Disbursement” means a payment made by the Issuer pursuant to a Letter of Credit issued by the Issuer.
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“Letter of Credit Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all unpaid and outstanding Reimbursement Obligations. The Letter of Credit Exposure of any Lender at any time shall be its Applicable Percentage of the total Letter of Credit Exposure at such time.
“LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period the greater of (a) zero percent (0%) per annum and (b) the ICE Benchmark Administration LIBO rate appearing on Reuters Libor Rates LIBOR01 (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the LIBO Rate with respect to such Eurodollar Borrowing for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period; provided that in no event shall the LIBO Rate be less than zero percent (0%) per annum.
“Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including but not limited to (a) the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a financing lease, consignment or bailment for security purposes or (b) production payments and the like payable out of Oil and Gas Properties. The term “Lien” shall include easements, restrictions, servitudes, permits, conditions, covenants, exceptions or reservations.
“Loan Commitment” means, (i) with respect to each Revolving Lender, the commitment of such Lender to make Revolving Loans and to acquire participations in Letters of Credit hereunder, as such commitment may be (a) modified from time to time pursuant to SectionsSection 2.06, (b) modified from time to time pursuant to assignments by or to such Lender pursuant to Section 12.04(b) or (c) otherwise modified in accordance with this Agreement, and (ii) with respect to each Term Lender, the commitment of such Lender to make Term Loans on the Ninth Amendment Effective Date.
“Loan Documents” means the Fee Letter, this Agreement, the Notes, the Assignment Agreement, the Letter of Credit ArrangementsAgreements, the Letters of Credit and the Security Instruments.
“Loan Limit” means for all Lenders the least of (i) the Aggregate Maximum Credit Amount, (ii) the Borrowing Base and (iii) the Elected Commitment Amount, and for any Lender the least of (x) its Applicable Percentage of the Aggregate Maximum Credit Amount, (y) its Applicable Percentage of the Borrowing Base and (z) its Commitment Amount.
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“Loans” means the loans, as the context may require, Revolving Loans or Term Loans made by the Lenders to the Borrower pursuant to this Agreement.
“Majority Lenders” means, at any time while no Loans or Letter of Credit Exposure is outstanding, Lenders having greaterholding more than fifty percent (50%) of the Elected Commitment Amount; and at any time while any Loans or Letter of Credit Exposure is outstanding, Lenders holding greatersum of the Revolving Loan Commitments and the outstanding principal amount of the Term Loans taken as a whole; provided that if the Revolving Loan Commitments have been terminated, the Majority Lenders shall comprise Lenders holding more than fifty percent (50%) of the sum of the outstanding aggregate principal amount of the Loans or participation interests in Letters of Credit (Revolving Credit Exposure and the outstanding principal amount of the Term Loans, taken as a whole (in any case, without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)).
“Material Adverse Effect” means a material adverse change in, or material adverse effect on (a) the business, operations, Property, liabilities (actual or contingent) or condition (financial or otherwise) of the Borrower and the Guarantors taken as a whole, (b) the ability of the Borrower, any of its Subsidiaries or any Guarantor to perform any of its obligations under any Loan Document to which it is a party, (c) the validity or enforceability of any Loan Document or (d) the rights and remedies of or benefits available to the Administrative Agent, any other Agent, the Issuer or any Lender under any Loan Document.
“Material Domestic Subsidiary” means, as of any date, any Domestic Subsidiary that (a) is a Wholly-Owned Subsidiary and (b) together with its Subsidiaries, owns Property having a fair market value of $1,000,000 or more.
“Material Indebtedness” means Debt (other than the Loans and Letters of Credit), or obligations in respect of one or more Swap Transactions, of any one or more of the Borrower and its Subsidiaries in an aggregate principal amount exceeding $2,500,000. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or any of its Subsidiaries in respect of Swap Transactions with a particular counterparty at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that the Borrower or such Subsidiary would be required to pay if such Swap Transactions were terminated at such time.
“Material Swap Transactions” has the meaning assigned to such term in Section 8.01(j).
“Maturity Date” means March 31, 2020.September 30, 2021.
“MidCon Assets” means all or substantially all of the Oil and Gas Properties of the Borrower and its Subsidiaries located in the States of Oklahoma and Kansas.Maximum Revolving Credit Amount” means, as of any date of determination, an amount equal to the sum of all of the Revolving Loan Commitments, as the same may be reduced or terminated pursuant to Section 2.06(b), or otherwise modified in accordance with this Agreement. The Maximum Revolving Credit Amount on the Ninth Amendment Effective Date is $20,000,000.
“Midstream Activities” means with respect to any Person, collectively, (i) gathering, compressing, treating, processing and transporting natural gas, crude, condensate and natural gas liquids, (ii) fractionating and transporting natural gas, crude, condensate and natural gas liquids, (iii) marketing natural gas, crude, condensate and natural gas liquids, and (iv) water distribution, supply, treatment and disposal services, and all other similar activities.
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“Midstream Adjusted EBITDA” means the portion of Adjusted EBITDA attributable to the Midstream Properties of the Borrower and its Consolidated Subsidiaries for the most recently ended Rolling Period as reflected in the business segment financial reports prepared by the Borrower and delivered to the Administrative Agent pursuant to the terms of Sections 8.01(a) and 8.01(b); provided that, (i) Midstream Adjusted EBITDA for the Rolling Period ending December 31, 2015, shall equal Midstream Adjusted EBITDA for the fiscal quarter ending December 31, 2015 multiplied by four (4), (ii) Midstream Adjusted EBITDA for the Rolling Period ending March 31, 2016, shall equal Midstream Adjusted EBITDA for the two fiscal quarter periods ending March 31, 2016 multiplied by two (2) and (iii) Midstream Adjusted EBITDA for the Rolling Period ending June 30, 2016, shall equal Adjusted EBITDA for the three fiscal quarter periods ending June 30, 2016 multiplied by four-thirds (4/3). For purposes of calculating the Midstream Adjusted EBITDA, the general and administrative expenses will be allocated to the Midstream Properties in proportion to the calculated Adjusted EBITDA by business segment prior to deduction of general and administrative expenses.
For purposes of computing Midstream Adjusted EBITDA for any period, so long as no Trigger Event has occurred and is continuing, Adjusted EBITDA shall be increased by the aggregate amount of dividends or distributions actually received in cash during such period by the Borrower or any Consolidated Subsidiaries from any Joint Venture for which the Borrower has delivered to the Administrative Agent the financial statements thereof in accordance with Section 8.01(r), provided that the aggregate amount attributable to such dividends or distributions actually received from such Joint Venture shall not exceed twenty percent (20%) of the Midstream Adjusted EBITDA (as increased by such dividends or distributions received from such Joint Venture) of the Borrower and its Consolidated Subsidiaries for such period.
“Midstream Attributed Value” means for any Midstream Properties, the Midstream Adjusted EBITDA for such Midstream Properties multiplied by the applicable Midstream Multiplier.
“Midstream Component” means the Midstream Adjusted EBITDA for the most recently ended Rolling Period multiplied by the applicable Midstream Multiplier.
“Midstream Multiplier” means (i) from the Second Amendment Effective Date through and including the earlier of (x) the date on which the Borrower actually delivers the consolidated financial statements of the Borrower and its Subsidiaries for the Rolling Period ending December 31, 2015 pursuant to Section 8.01(a) and (y) the date on which the Borrower is required to deliver such consolidated financial statements, 5.00, (ii) from the first Business Day after the earlier of the dates described in clause (i) above through and including the earlier of (x) the date on which the Borrower actually delivers the consolidated financial statements of the Borrower and its Subsidiaries for the Rolling Period ending March 31, 2016 pursuant to Section 8.01(b) and (y) the date on which the Borrower is required to deliver such consolidated financial statements, 4.75, and (iii) from the first Business Day after the earlier of the dates described in clause (ii) above and thereafter,shall be 4.50; provided however, that with respect to each fiscal quarter commencing with the fiscal quarter ending March 31, 2016,September 30, 2019, if actual natural gas produced from the Dedicated Acreage (as defined in the Catarina Gathering Agreement) flowing through the Midstream Properties acquired in the Catarina Acquisition in such fiscal quarter is less than the Catarina Minimum Quantity for such fiscal quarter, then the otherwise applicable Midstream Multiplier of 4.50 shall be adjusted downward so that the adjusted Midstream Multiplier applicable to determining the Midstream Component to become
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effective on the first Business Day following the date on which the consolidated financial statements for the Rolling Period ending on the last day of such quarter are due or are actually delivered, bears the same proportion to the (unadjusted) Midstream Multiplier as the actual quantity of natural gas flowing from the Dedicated Acreage through the Midstream Properties acquired in the Catarina Acquisition during such fiscal quarter bears to the Catarina Minimum Quantity for such fiscal quarter.
“Midstream Properties” means all Properties used by the Borrower, the Borrower’s Subsidiaries, and any Joint Venture in (i) gathering, compressing, treating, processing and transporting natural gas, crude, condensate and natural gas liquids (ii) fractionating and transporting natural gas, crude, condensate and natural gas liquids, (iii) marketing natural gas, crude, condensate and natural gas liquids, and (iv) water distribution, supply, treatment and disposal services, including without limitation, gathering lines, pipelines, storage facilities, surface leases, rights-of-way, easements and servitudes related to each of the foregoing and classified by the Borrower as part of its midstream business in its business segment financial reports prepared by the Borrower and delivered to the Administrative Agent pursuant to the terms of Sections 8.01(a) and 8.01(b).
“Moody’s” means Moody’s Investors Service, Inc. and any successor thereto that is a nationally recognized rating agency.
“Mortgaged Property” means any Property owned by the Borrower or any Guarantor which is subject to the Liens existing and to exist under the terms of the Mortgages.
“Mortgages” means the mortgages and/or deeds of trust subjecting the Property of the Borrower or any Guarantor to Liens in favor of Collateral Agent for the benefit of the Lenders and the Swap Counterparties.
“Multiemployer Plan” means a Plan which is a multiemployer plan as defined in Section 3(37) or 4001 (a)(3) of ERISA.
“Multiple Employer Plan” means a Plan which has two or more contributing sponsors (including the Borrower or any ERISA Affiliate) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.
“Net Revenue Interest” means, with respect to any Oil and Gas Property, the decimal or percentage share of production from or allocable to such Oil and Gas Property, after deduction of all overriding royalties and other burdens (including lessor royalties), that an owner of a Working Interest is entitled to receive.
“New Midstream Component Notice” has the meaning assigned to such term in Section 2.07(ha).
“New RBL Component Notice” has the meaning assigned to such term in Section 2.07(b).Ninth Amendment Effective Date” shall have the meaning set forth in that certain Ninth Amendment to Third Amended and Restated Credit Agreement dated as of November 22, 2019, among the Borrower, the Guarantors, the Lenders party thereto, the Issuer, the Administrative Agent and the Collateral Agent.
“Non-Consenting Lender” means any Lender that does not approve any consent, waiver or amendment that (i) requires the approval of all Lenders or all affected Lenders in accordance with the terms of Section 12.02 and (ii) has been approved by the Required Lenders.
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“Non-Defaulting Lender” means a Lender that is not a Defaulting Lender or an Impacted Lender.
“Notes” means the promissory notes of the Borrower described in Section 2.02(d) and being substantially in the form of Exhibit A,-1 (with respect to any Revolving Loan Commitment or Revolving Loans) or Exhibit A-2 (with respect to any Term Loans) together with all amendments, modifications, replacements, extensions and rearrangements thereof.
“Obligations” means (a) all principal, interest, fees, reimbursements, indemnifications, and other amounts payable by the Borrower or any of its Subsidiaries to the Administrative Agent, the Issuer or the Lenders under the Loan Documents, including without limitation, the Letter of Credit Exposure and (b) all obligations of the Borrower or any of its Subsidiaries owing to any Swap Counterparty under any Swap Transaction. Notwithstanding the foregoing, Excluded Hedge Obligations shall not be an Obligation of any Guarantor that is not a Qualified ECP Obligor.
“Obligor” means, as the context may require, (a) the Borrower or (b) a Guarantor.
“OFAC” means the U.S. Department of the Treasury’s Office of Foreign Assets Control.
“Oil and Gas Properties” means (a) Hydrocarbon Interests; (b) the properties now or hereafter pooled or unitized with Hydrocarbon Interests; (c) all presently existing or future unitization, pooling agreements and declarations of pooled units and the units created thereby (including, without limitation, all units created under orders, regulations and rules of any Governmental Authority) which may affect all or any portion of the Hydrocarbon Interests; (d) all operating agreements, contracts and other agreements, including production sharing contracts and agreements, which relate to any of the Hydrocarbon Interests or the production, sale, purchase, exchange or processing of Hydrocarbons from or attributable to such Hydrocarbon Interests; (e) all Hydrocarbons in and under and which may be produced and saved or attributable to the Hydrocarbon Interests, including all oil in tanks, and all rents, issues, profits, proceeds, products, revenues and other incomes from or attributable to the Hydrocarbon Interests, but excluding any Hydrocarbons bought and/or sold pursuant to the Borrower’s Hydrocarbon gathering, processing and transportation businesses; (f) all tenements, hereditaments, appurtenances and properties in any manner appertaining, belonging, affixed or incidental to the Hydrocarbon Interests and (g) all Properties, rights, titles, interests and estates described or referred to above, including any and all Property, real or personal, now owned or hereinafter acquired and situated upon, used, held for use or useful in connection with the operating, working or development of any of such Hydrocarbon Interests or Property (excluding drilling rigs, automotive equipment, rental equipment or other personal property which may be on such premises for the purpose of drilling a well or for other similar temporary uses) and including any and all oil wells, gas wells, injection wells or other wells, buildings, structures, fuel separators, liquid extraction plants, plant compressors, pumps, pumping units, field gathering systems, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances, tools, implements, cables, wires, towers, casing, tubing and rods, surface leases, rights-of-way, easements and servitudes together with all additions, substitutions, replacements, accessions and attachments to any and all of the foregoing, but excluding, in each case, all Midstream Properties.
“OPA” has the meaning assigned to such term in the definition of “Environmental Laws”.
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“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).
“Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 5.06).
“Palmetto Acquisition” has the meaning assigned to such term in the Recitals.
“Palmetto Acquisition Documents” means, collectively, the Palmetto PSA and all schedules, exhibits, annexes and amendments thereto and all side letters and agreements affecting the terms thereof or entered into in connection therewith (including any Swap Agreement or novation thereof), together with all bills of sale, assignments, agreements, instruments and other documents executed, made or delivered by any Person in connection with the Palmetto Acquisition, in each case in form and substance reasonably acceptable to the Administrative Agent, in each case, as amended, supplemented, or otherwise modified from time to time in accordance with this Agreement.
“Palmetto Buyer” has the meaning assigned to such term in the Recitals.
“Palmetto PSA” has the meaning assigned to such term in the Recitals.
“Palmetto Seller” has the meaning assigned to such term in the Recitals.
“Palmetto Reserve Report” means the reserve report concerning Oil and Gas Properties acquired by the Borrower and its Subsidiaries in accordance with the Palmetto PSA and derived from the reserve report prepared by Ryder Scott Company L.P. for SN, effective as of December 31, 2014.
“Parent Company” means, with respect to a Lender, the bank holding company (as defined in Federal Reserve Board Regulation Y), if any, of such Lender, and/or any Person owning, beneficially or of record, directly or indirectly, a majority of the shares of such Lender.
“Participant” has the meaning assigned to such term in Section 12.04(c)(i).
“Participant Register” has the meaning assigned to such term in Section 12.04(c)(iii).
“Partnership Agreement” means the Third Amended and Restated Agreement of Limited Partnership of the Borrower, dated as of August 2, 2019, as amended, modified, supplemented, extended, renewed and/or restated from time to time.
“PBGC” means the Pension Benefit Guaranty Corporation, or any successor thereto.
“Pension Plan” means any employee pension benefit plan (including a Multiple Employer Plan, but excluding a Multiemployer Plan) that is maintained or is contributed to by the Borrower, any of its Subsidiaries, and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code.
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“Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental Authority or other entity.
“Permitted Holders” means (a) Antonio R. Sanchez, III, Eduardo A. Sanchez, Patricio D. Sanchez, Ana Lee Sanchez Jacobs, and A.R. Sanchez, Jr., (b) any spouse or descendant of any individual named in (a), (c) any other natural person who is related to, or who has been adopted by, any such individual or such individual’s spouse referenced in (a)-(b) above within the second degree of kinship, (d) any member of SP Holdings and (e) any Person Controlled by any one or more of the foregoing.
“Permitted Joint Venture Debt” means, with respect to any Joint Venture, its accounts payable and other accrued expenses, liabilities or obligations to pay for the deferred purchase price of Property or services from time to time incurred in the ordinary course of business with respect to which no more than 90 days have elapsed since the date of invoice therefor or that are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP.
“Permitted Refinancing Debt” means Debt (for purposes of this definition, “new Debt”) incurred in exchange for, or the net proceeds of which are used to refinance, all or any portion of the Unsecured Notes (the “Refinanced Debt”); provided that (a) the portion of such new Debt incurred to refinance the Refinanced Debt is in an aggregate principal amount not in excess of the sum of (i) the aggregate principal amount then outstanding of the Refinanced Debt (or, if the Refinanced Debt is exchanged or acquired for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration thereof, such lesser amount), (ii) any accrued and unpaid interest on the Refinanced Debt refinanced, and (iii) an amount necessary to pay any fees and expenses, including premiums, related to such exchange or refinancing; (b) such new Debt has a stated maturity no earlier than the date that is 180 days after the Maturity Date and an average life no shorter than the period beginning on the date of incurrence of such new Debt and ending on the date that is 180 days after the Maturity Date; (c) such new Debt does not contain covenants and Events of Default that are, taken as a whole, more onerous to the Borrower and its Subsidiaries than those imposed by the Refinanced Debt (as determined in good faith by the senior management of the General Partner); (d) the stated interest or coupon rate of such new Debt is reasonably acceptable to the Administrative Agent; and (e) such new Debt (and any Guaranteesguarantees in respect thereof) is unsecured.
“Permitted Joint Venture Debt” means, with respect to any Joint Venture, its accounts payable and other accrued expenses, liabilities or obligations to pay for the deferred purchase price of Property or services from time to time incurred in the ordinary course of business with respect to which no more than 90 days have elapsed since the date of invoice therefor or that are being contested in good faith by appropriate action and for which adequate reserves have been maintained in accordance with GAAP.
“Plan” means any employee pension benefit plan within the meaning of Section 3(2) of ERISA (including a Pension Plan, but excluding a Multiemployer Plan), maintained for employees of the Borrower, any of its Subsidiaries, or, with respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.
“Pledge and Security Agreement” means the Third Amended and Restated Pledge and Security Agreement dated as of the Closing Date executed by the Borrower and each of the Guarantors existing on the Closing Date, in favor of the Collateral Agent, which amends and
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restates that certain Second Amended and Restated Pledge and Security Agreement dated as of May 30, 2013, by and among the Borrower and each of the Guarantors in favor of Société Générale, for the benefit of Lenders and Swap Counterparties, and any supplements thereto executed by any Guarantor pursuant to Section 8.13(b), each as amended, restated, modified and supplemented from time to time.
“Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, cash, securities, accounts and contract rights (including but not limited to Swap Agreements).
“Proposed RBL Component” has the meaning assigned to such term in Section 2.07(b).
“Proposed RBL Component Notice” has the meaning assigned to such term in Section 2.07(b).
“Proved Developed Nonproducing Reserves” means Oil and Gas Properties that are categorized as “Proved Reserves” that are both “Developed” and “Nonproducing”, as such terms are defined in the Definitions for Oil and Gas Reserves as promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.
“Proved Developed Producing Reserves” means Oil and Gas Properties that are categorized as “Proved Reserves” that are both “Developed” and “Producing”, as such terms are defined in the Definitions for Oil and Gas Reserves as promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.
“Proved Reserves” means Oil and Gas Properties that are categorized as “Proved Reserves” in the Definitions for Oil and Gas Reserves as promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.
“Proved Undeveloped Reserves” means Oil and Gas Properties that are categorized as “Proved Reserves” that are “Undeveloped Reserves”, as such terms are defined in the Definitions for Oil and Gas Reserves as promulgated by the Society of Petroleum Engineers (or any generally recognized successor) as in effect at the time in question.
“QFC Credit Support” shall have the meaning assigned to it in Section 12.20.
“Qualified ECP Obligor” means, in respect of any Swap Obligation, each Obligor that has total assets exceeding $10,000,000 at the time such Swap Obligation is incurred or such other person as at such time constitutes an “eligible contract participant” under the Commodity Exchange Act or any regulation promulgated thereunder.
“RBL Component” means at any time an amount equal to the amount determined in accordance with Sections 2.07(b) through (e) as the same may be adjusted from time to time pursuant to Section 2.07(f) and Section 2.07(g).
“RBL Component Properties” means the Oil and Gas Properties evaluated in the most recently delivered Reserve Report.
“RBL Component Redetermination” means a Scheduled RBL Component Redetermination or an Interim RBL Component Redetermination.
“RBL Swap Transactions” means all commodity Swap Transactions entered into by the Borrower and its Subsidiaries related to Oil and Gas Properties.
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“RBL Redetermination Date” means, with respect to any Scheduled RBL Component Redetermination or any Interim RBL Component Redetermination, the date that the redetermined RBL Component related thereto becomes effective pursuant to Section 2.07(b).
“Recipient” means the Administrative Agent, the Issuer, or any Lender or any other recipient of any payment to be made by or on account of any obligation of any Obligor hereunder.
“Redemption” means with respect to any Debt, the repurchase, redemption, prepayment, repayment or defeasance or any other acquisition or retirement for value (or the segregation of funds with respect to any of the foregoing) of any such Debt. “Redeem” has the correlative meaning thereto.
“Register” has the meaning assigned to such term in Section 12.04(b)(iv).
“Reimbursement Obligations” has the meaning assigned to such term in Section 2.08(f).
“Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers, employees, agents and advisors (including attorneys, accountants and experts) of such Person and such Person’s Affiliates.
“Released Party” has the meaning assigned to such term in Section 12.21.
“Remedial Work” has the meaning assigned to such term in Section 8.10(a).
“Replacement Lender” has the meaning assigned to such term in Section 5.06.
“Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.
“Required Lenders” means, at any time while no Loans or Letter of Credit Exposure is outstanding, Lenders having at least sixty-six and two-thirds percent (66-2/3%) of the Elected Commitment Amount; and at any time while any Loans or Letter of Credit Exposure is outstanding, Lenders holding at least sixty-six and two-thirds percent (66-2/3%) of the outstanding aggregate principal amount of the Loans or participation interests in Letters of Credit (without regard to any sale by a Lender of a participation in any Loan under Section 12.04(c)).
“Reserve Report” means the Initial Reserve Report and each other report setting forth, as of each December 31st or June 30th (or such other date as required pursuant to Section 2.07 and the other provisions of this Agreement), the oil and gas reserves attributable to the Oil and Gas Properties of the Borrower and its Subsidiaries, together with a projection of the rate of production and future net income, severance and ad valorem taxes, operating expenses and capital expenditures with respect thereto as of such date, consistent with SEC reporting requirements at the time, provided that each such report hereafter delivered must (a) separately report on the Proved Developed Producing Reserves, Proved Developed Nonproducing Reserves and Proved Undeveloped Reserves of the Borrower and its Consolidated Subsidiaries, (b) take into account the Borrower’s or its Consolidated Subsidiaries’ (or the prior owner’s, if the Borrower or Consolidated Subsidiaries have owned such Oil and Gas Properties for less than one year prior to the date of the report) actual experiences with leasehold operating expenses and other costs in determining projected leasehold operating expenses and other costs, (c) identify and take into account any “overproduced” or “under-produced” status under gas balancing arrangements and (d) reflect recent information and analysis comparable in scope to that contained in the Initial Reserve Report.
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“Responsible Officer” means, as to any Person, the Chief Executive Officer, the President or any Financial Officer of such Person. Unless otherwise specified, all references to a Responsible Officer herein shall meanmeans a Responsible Officer of the General Partner, on behalf of the Borrower.
“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other Property) with respect to any Equity Interests in the Borrower, or any payment (whether in cash, securities or other Property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interests in the Borrower or any option, warrant or other right to acquire any such Equity Interests in the Borrower.
“Revolving Credit Exposure” means, with respect to any Revolving Lender at any time, the sum of the outstanding principal amount of such Lender’s Revolving Loans and its Letter of Credit Exposure at such time, and with respect to all Revolving Lenders at any time, the aggregate amount all Lenders’ Revolving Loans and Letter of Credit Exposure at such time.
“Revolving Lender” means each financial institution or other lending institution listed on Annex I and any other financial institution or other lending institution that becomes a party hereto pursuant to an Assignment and Assumption in which such financial institution acquires any Revolving Loan Commitment or any Revolving Loans, but excluding any such financial institution or other lending institution that ceases to be a party hereto pursuant to an Assignment and Assumption.
“Revolving Loan” is defined in Section 2.01(a).
“Revolving Loan Borrowing” means each extension of credit made by (a) the Revolving Lenders consisting of simultaneous Revolving Loans of the same type, having the same Interest Period made by the same Revolving Lenders on the same Business Day pursuant to the same Borrowing Request or (b) the Issuer by its issuance of a Letter of Credit.
“Revolving Loan Commitment” means as to each Revolving Lender, the amount set forth opposite such Revolving Lender’s name on Annex I attached hereto under the caption “Revolving Loan Commitment Amount”, as the same may be (i) reduced or terminated from time to time pursuant to Section 2.06 or (ii) modified from time to time pursuant to any assignment permitted by Section 12.04(b).
“Revolving Loan Limit” means the lesser of (i) the positive difference of the Borrowing Base minus the aggregate outstanding principal amount of the Term Loans and (ii) the Maximum Revolving Credit Amount.
“Rolling Period” means for any date of determination, the most recent four fiscal quarters ended on such date.
“S&P” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.
“Sanctions” has the meaning assigned to such term in Section 7.267.25(a).
“Scheduled Midstream Component Recalculation” has the meaning assigned to such term in Section 2.07(h).
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“Scheduled RBL Component Redetermination” has the meaning assigned to such term in Section 2.07(b). “Scheduled RBL Component Redetermination Date” means the date on which an RBL Component that has been redetermined pursuant to a Scheduled RBL Component Redetermination becomes effective as provided in Section 2.07(b).a).
“Second Amendment Effective Date” shall have the meaning set forth in that certain Joinder, Assignment and Second Amendment to Third Amended and Restated Credit Agreement dated as of October 14, 2015, among the Borrower, the Guarantors, the Lenders party thereto, the Administrative Agent and the Collateral Agent.
“Secured Parties” means the Collateral Agent, the Administrative Agent, the Lenders, the Issuer and any Swap Counterparty, and each of their respective successors, transferees and assigns, in the case of the Lenders and the Issuer, as permitted by this Agreement.
“Security Instruments” means the Guarantee Agreement, Pledge and Security Agreement, Mortgages, and other agreements, instruments or certificates described or referred to in Exhibit C, and any and all other agreements, instruments, consents or certificates now or hereafter executed and delivered by the Borrower or any other Person in connection with, or as security for the payment or performance of the Obligations.
“Senior Secured Net Debt” means, as of any date of determination, the sum of the aggregate outstanding principal amount of the Loans and the Letter of Credit Exposure less Available Cash.
“SN” has the meaning assigned to such term in the Recitals.
“SN Catarina” has the meaning assigned to such term in the Recitals.
“SOG” means Sanchez Oil & Gas Corporation, a Delaware corporation.
“SP Holdings” means SP Holdings, LLC a Delaware limited liability company.
“S&P” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc., and any successor thereto that is a nationally recognized rating agency.
“Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject for eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage.
“Subsidiary” means: (a) any Person of which at least a majority of the outstanding Equity Interests having by the terms thereof ordinary voting power to elect a majority of the board of directors, manager or other governing body of such Person (irrespective of whether or not at the time Equity Interests of any other class or classes of such Person shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or Controlled by the Borrower or one or more of its Subsidiaries or by the Borrower and one or
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more of its Subsidiaries and (b) any partnership of which the Borrower or any of its Subsidiaries is a general partner. Unless otherwise indicated herein, each reference to the term “Subsidiary” shall meanmeans a Subsidiary of the Borrower. Notwithstanding anything to the contrary contained herein, the definition of Subsidiary shall not include Carnero Gathering,G&P LLC or any other Joint Venture .
“Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement, whether exchange traded, “over-the-counter” or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions, and in any event, any other agreement, contract or transaction that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange Act; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the Borrower or any of its Subsidiaries shall be a Swap Agreement; provided, that options, warrants, rights and other similar interests in respect of Equity Interests in the Borrower shall not constitute Swap Agreements for purposes of Section 9.17.
“Swap Counterparty” means, as applicable, any Person that (a) was a party to a particular Swap Transaction with the Borrower or any of its Subsidiaries at the time it became a Lender under the Credit Agreement, or (b) was a Lender or an Existing Lender (or Affiliate of a Lender or an Existing Lender) at the time it became a party to a particular Swap Transaction with the Borrower or any of its Subsidiaries.
“Swap Obligation” of any Person means all obligations (including, without limitation, any amounts which accrue after the commencement of any proceeding under any Debtor Relief Law with respect to such Person, whether or not allowed or allowable as a claim under any proceeding under any Debtor Relief Law) of such Person in respect of any Swap Transaction.
“Swap Transaction” means any trade or other transaction entered into by a Person under a Swap Agreement.
“Synthetic Leases” means, in respect of any Person, all leases which shall have been, or should have been, in accordance with GAAP, treated as operating leases on the financial statements of the Person liable (whether contingently or otherwise) for the payment of rent thereunder and which were properly treated as indebtedness for borrowed money for purposes of U.S. federal income taxes, if the lessee in respect thereof is obligated to either purchase for an amount in excess of, or pay upon early termination an amount in excess of, 80% of the residual value of the Property subject to such operating lease upon expiration or early termination of such lease.
“Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.
“Term Lender” means each financial institution or other lending institution listed on Annex II and any other financial institution or other lending institution that becomes a party hereto pursuant to an Assignment and Assumption in which such financial institution acquires Term
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Loans, but excluding any such financial institution or other lending institution that ceases to be a party hereto pursuant to an Assignment and Assumption.
“Term Loan” is defined in Section 2.01(b).
“Term Loan Borrowing” means each extension of credit made by the Term Lenders consisting of simultaneous Term Loans of the same type, having the same Interest Period made by the same Term Lenders on the same Business Day pursuant to the same Borrowing Request.
“Term Loan Commitment” means, as to each Term Lender, the amount set forth opposite such Term Lender’s name on Annex II under the caption “Term Loan Commitment Amount”.
“Termination Date” means the earlier of the Maturity Date and the date of termination of the Revolving Loan Commitments pursuant to Sections 2.06 or 10.02.
“Total Net Debt” means Debt less Available Cash.minus the lesser of (x) the aggregate amount of unrestricted cash and Cash Equivalents of the Borrower and the Consolidated Subsidiaries and (y) $7,500,000.
“Transactions” means, with respect to (a) the Borrower, the execution, delivery and performance by the Borrower of this Agreement, and each other Loan Document to which it is a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit hereunder, and the grant of Liens by the Borrower on Mortgaged Properties and other Properties pursuant to the Security Instruments and (b) any Guarantor, the execution, delivery and performance by such Guarantor of each Loan Document to which it is a party, the guaranteeing of the Obligations and the other obligations under the Guarantee Agreement by such Guarantor and such Guarantor’s grant of the security interests and provision of Collateral under the Security Instruments, and the grant of Liens by such Guarantor on Mortgaged Properties and other Properties pursuant to the Security Instruments.
“Trigger Event” means, with respect to any Joint Venture from which the Borrower has included any dividends or distributions actually received in cash for purposes of calculating Midstream Adjusted EBITDA of the Borrower and its Consolidated Subsidiaries, the occurrence of any of the following:
(a) the Borrower and its Subsidiaries shall cease to own and control directly or indirectly at least the amount of Equity Interests or other voting ownership of such Joint Venture that the Borrower or any of its Subsidiaries initially owned;
(b) the incurrence, creation, assumption or existence of any Debt by such Joint Venture other than Permitted Joint Venture Debt;
(c) the sale, distribution or other disposition by such Joint Venture of a material portion of its assets or properties outside the ordinary course of business such that the approval or consent of a specified percentage of the members or other holders of voting Equity Interests of such Joint Venture or, if applicable, the board or other applicable managing body of such Joint Venture, is required under the terms of such Joint Venture’s organizational documents;
(d) the incurrence, creation, assumption or existence of any Lien on the assets or properties of such Joint Venture other than Excepted Liens;
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(e) the amendment, waiver or other modification of any gathering, compressing, processing, transportation, services or other commercial agreement (including, without limitation, the Carnero Transportation Services Agreement and the Carnero Gathering Agreement) to which the primary revenues of such Joint Venture are attributable if the effect of such amendment, waiver or other modification is to reduce (or could reasonably be expected to reduce) in any material respect any minimum committed volumes or minimum committed service level thereunder; or
(f) such Joint Venture shall voluntarily declare bankruptcy, or file a petition or otherwise seek protection under any federal or state bankruptcy, insolvency or reorganization law, or commence liquidation, winding up, dissolution, recapitalization or reorganization.
“Type” means, relative to any Loan, the portion thereof, if any, being maintained as an ABR Loan or a Eurodollar Loan.
“U.S. Person” means any Person that is a “United States Person” as defined in Section 7701(a)(30) of the Code.
“UCC” means the Uniform Commercial Code as in effect in the State of New York; provided that, if perfection or the effect of perfection or non-perfection or the priority of any security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions hereof relating to such perfection, effect of perfection or non-perfection or priority.
“Unsecured Notes” means any senior unsecured notes, subordinated unsecured notes or senior subordinated unsecured notes, in each case, issued by the Borrower or a Guarantor in one or more transactions.
“Unsecured Notes Documents” means, as applicable, both individually and collectively, any Unsecured Notes and any related Unsecured Notes Indenture.
“Unsecured Notes Indenture” means, collectively, any indenture by and among the Borrower or a Guarantor, as issuer, the guarantors, if any, party thereto and a trustee, and any and all related documentation entered into in connection therewith, pursuant to which Unsecured Notes shall have been issued, as the same may be amended, restated, modified or supplemented from time to time.
“U.S. Special Resolution Regimes” shall have the meaning assigned to it in Section 12.20.
“Wholly-Owned Subsidiary” means any Subsidiary of which all of the outstanding Equity Interests (other than any directors’ qualifying shares mandated by Governmental Requirements), on a fully-diluted basis, are owned by the Borrower or one or more of the Wholly-Owned Subsidiaries or are owned by the Borrower and one or more of the Wholly-Owned Subsidiaries.
“Working Interest” means the property interest which entitles the owner thereof to explore and develop certain land for oil and gas production purposes, whether under an oil and gas lease or unit, a compulsory pooling order or otherwise.
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“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
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(i) the aggregate amount of the requested Borrowing and whether the Borrowing is a Revolving Loan Borrowing or a Term Loan Borrowing; |
(iii) in the case of Eurodollar Borrowings, the initial Interest Period to be applicable to such Borrowing, which shall be a period contemplated by the definition of the term “Interest Period”; |
(v) the location and number of the Borrower’s account to which funds are to be disbursed, which shall comply with the requirements of Section 2.05. |
In the case of Eurodollar Borrowings, if no Interest Period is specified with respect to any requested Borrowing, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. Each Revolving Loan Borrowing Request shall constitute a representation that the amount of the requested Borrowing shall not cause the Revolving Credit Exposures to exceed the Revolving Loan Limit then in effect.
Promptly following receipt of a Borrowing Request in accordance with this Section 2.03, the Administrative Agent shall advise each Lender of the details thereof and of the amount of such Lender’s Loan to be made as part of the requested Borrowing.
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(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; and |
(iii) the Interest Period to be applicable to such Borrowing after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. |
If any such Interest Election Request does not specify an Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration.
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Section 2.06 Termination and Reduction of Aggregate Maximum Credit Amount or Elected Commitment AmountLoan Commitments. |
(b) Optional Termination and Reduction of Aggregate Credit Amounts and Elected Commitment Amount; Increase in Elected CommitmentMaximum Revolving Credit Amount. |
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(c)Elected Commitment Amount. (i) The initial Elected Commitment Amount on the Second Amendment Effective Date shall be $200,000,000. Subject to the conditions set forth in Section 2.06(c)(ii), the Borrower may increase the Elected Commitment Amount then in effect by increasing the Commitment Amount of a Lender (an “Increasing Lender”) or by causing a Person that is reasonably acceptable to the Administrative Agent and the Issuer and at such time is not a Lender to become a Lender (an “Additional Lender”). Notwithstanding anything to the contrary contained in this Agreement, in no case shall an Additional Lender be the Borrower or an Affiliate of the Borrower.
(ii)Any increase in the Elected Commitment Amount shall be subject to the following additional conditions:
(1)such increase shall not be less than $5,000,000 unless the Administrative Agent otherwise consents, and no such increase shall be permitted if after giving effect thereto the Elected Commitment Amount exceeds the Aggregate Maximum Credit Amount then in effect;
(2)no Default shall have occurred and be continuing on the effective date of such increase;
(3)if any Eurodollar Borrowings shall be outstanding on the effective date of such increase, then on the effective date of such increase the Borrower pays any compensation required by Section 5.02;
(4)no Lender’s Commitment Amount may be increased without the consent of such Lender;
(5)if the Borrower elects to increase the Elected Commitment Amount by increasing the Commitment Amount of a Lender, the Borrower and such Lender shall execute and deliver to the Administrative Agent an agreement
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substantially in the form of Exhibit G (a “Commitment Increase Agreement”); and
(6)if the Borrower elects to increase the Elected Commitment Amount by causing an Additional Lender to become a party to this Agreement, then the Borrower and such Additional Lender shall execute and deliver to the Administrative Agent a certificate substantially in the form of Exhibit H (an “Additional Lender Agreement”), together with an Administrative Questionnaire and a processing and recordation fee of $3,500, and the Borrower shall (1) if requested by the Additional Lender, deliver a Note payable to the order of such Additional Lender in a principal amount equal to such Additional Lender’s Applicable Percentage of the Aggregate Maximum Credit Amount, and otherwise duly completed and (2) pay any applicable fees as may have been agreed to between the Borrower, the Additional Lender and/or the Administrative Agent.
(iii)Subject to acceptance and recording thereof pursuant to Section 2.06(c)(iv), from and after the effective date specified in the Commitment Increase Agreement or the Additional Lender Agreement: (A) the amount of the Elected Commitment Amount shall be increased as set forth therein, and (B) in the case of an Additional Lender Agreement, any Additional Lender party thereto shall be a party to this Agreement and have the rights and obligations of a Lender under this Agreement and the other Loan Documents. In addition, the Increasing Lender or the Additional Lender, as applicable, shall purchase a pro rata portion of the outstanding Loans (and participation interests in Letters of Credit) of each of the other Lenders (and such Lenders hereby agree to sell and to take all such further action to effectuate such sale) such that each Lender (including any Increasing Lender and any Additional Lender, as applicable) shall hold its Applicable Percentage of the outstanding Loans (and participation interests) after giving effect to the increase in the Elected Commitment Amount.
(iv)Upon its receipt of a duly completed Commitment Increase Agreement or an Additional Lender Agreement, executed by the Borrower and the Lender or by the Borrower and the Additional Lender party thereto, as applicable, the processing and recording fee referred to in Section 2.06(c)(ii) and the Administrative Questionnaire referred to in Section 2.06(c)(ii), if applicable, the Administrative Agent shall accept such Commitment Increase Agreement or Additional Lender Agreement and record the information contained therein in the Register required to be maintained by the Administrative Agent pursuant to Section 12.04(b)(iv). No increase in the Elected Commitment Amount shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this Section 2.06(c)(iv).
(v)Upon any increase in the Elected Commitment Amount pursuant to this Section 2.06(c), (A) each Lender’s Applicable Percentage shall be automatically deemed amended to the extent necessary so that each such Lender’s Applicable Percentage equals the percentage of the Elected Commitment Amount represented by such Lender’s Commitment Amount, in each case after giving effect to such increase, (B) Annex I shall be deemed amended to reflect any changes in the Applicable Percentages
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of the Lenders other than any Increasing Lenders or Additional Lenders pursuant to the foregoing clause (A), and (C) Annex I to this Agreement shall be deemed amended to reflect the Applicable Percentage and Commitment Amount of any Increasing Lender and any Additional Lender.
(a)RBL Component. For the period from and including the Second Amendment Effective Date to but excluding the date of the first Redetermination Date thereafter pursuant to the further provisions of this Section 2.07, the initial amount of the RBL Component has been set by the Administrative Agent and acknowledged by the Borrower and agreed to by the Lenders to be $62,500,000. The Borrower and the Lenders acknowledge and agree that the initial Borrowing Base has been determined as of the Second Amendment Effective Date as if the Borrower and its Subsidiaries no longer own (and accordingly, without giving any value in the RBL Component to) the MidCon Assets. Notwithstanding the foregoing, the RBL Component may be subject to further adjustments pursuant to Section 2.07(f) and Section 2.07(g) from time to time prior to the first Scheduled RBL Component Redetermination. For each and every determination or redetermination of the RBL Component under this Agreement, the RBL Component shall be determined or redetermined based on the Oil and Gas Properties of the Borrower and its Subsidiaries.
(b)The RBL Component shall be redetermined semi-annually in accordance with this Section 2.07(b) (a “Scheduled RBL Component Redetermination”). Promptly after December 31 of each calendar year, commencing December 31, 2015, and in any event prior to April 1st of each calendar year (commencing April 1, 2016), the Borrower shall furnish to the Administrative Agent a Reserve Report in form and substance reasonably satisfactory to the Administrative Agent, prepared by an Approved Engineer, which Reserve Report shall be dated as of December 31 of the immediately preceding calendar year. In addition, within ninety (90) days after each June 30, commencing June 30, 2016, the Borrower shall furnish to the Administrative Agent a Reserve Report in form and substance satisfactory to the Administrative Agent prepared by the Borrower’s petroleum engineers, which report shall be dated as of June 30 of such calendar year. Each such Reserve Report shall be accompanied by additional data concerning pricing, hedging, quantities and purchasers of production, and other information and engineering and geological data as the Administrative Agent or the Required Lenders may reasonably request. Within fifteen (15) days after receipt of such Reserve Report and all such information, the Administrative Agent shall make an initial determination of the new RBL Component (the “Proposed RBL Component”) and upon such initial determination shall promptly notify the Lenders in writing of its initial determination of the Proposed RBL Component (the “Proposed RBL Component Notice”). Such initial determinations made by the Administrative Agent shall be so made by the Administrative Agent in the exercise of its sole discretion in accordance with the Administrative Agent’s customary practices and standards for oil and gas lending as they exist at the particular time, and may include a consideration of the
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value of the Oil and Gas Properties that are subject to legal, valid and enforceable mortgage liens held by the Administrative Agent for the ratable benefit of the Lenders. In no event shall the Proposed RBL Component exceed the Aggregate Maximum Credit Amount. The Required Lenders shall approve or reject the Administrative Agent’s initial determinations of the Proposed RBL Component by written notice to the Administrative Agent within fifteen (15) days of the Administrative Agent’s notification of its initial determinations; provided, however, that with respect to any Proposed RBL Component that is equal to or less than the RBL Component then in effect (but not with respect to any increase in the RBL Component) the failure by any Lender to confirm or disapprove in writing the Administrative Agent’s determination of the Proposed RBL Component shall be deemed an approval of the Proposed RBL Component. If the Required Lenders fail to approve any such determination of the Proposed RBL Component made by the Administrative Agent hereunder in such fifteen (15) day period, then the Administrative Agent shall poll the Lenders to ascertain the highest Proposed RBL Component then acceptable to the Required Lenders for purposes of this Section 2.07(b) and, subject to the last sentence of this Section 2.07(b), such amounts shall become the new RBL Component, effective on the date specified in this Section 2.07. Until such approval or deemed approval, the RBL Component in effect before the Proposed RBL Component shall remain in effect. Upon agreement by the Administrative Agent and the Required Lenders of the new RBL Component, the Administrative Agent shall, by written notice to the Borrower and the Lenders, designate the new RBL Component available to the Borrower (the “New RBL Component Notice”). Such designation shall be effective as of the Business Day specified in such written notice (or, if no effective date is specified in such written notice, the next Business Day following delivery of such written notice), and such new RBL Component shall remain in effect until the next determination or redetermination of the RBL Component in accordance with this Agreement. Anything herein contained to the contrary notwithstanding, any determination or redetermination of the RBL Component resulting in any increase of the RBL Component in effect immediately prior to such determination or redetermination shall require the approval of all the Lenders in their sole discretion in accordance with their respective customary practices and standards for oil and gas lending as they exist at the particular time, and may include a consideration of the value of the Oil and Gas Properties that are subject to legal, valid and enforceable mortgage liens held by the Administrative Agent for the ratable benefit of the Lenders.
(c)In addition to each Scheduled RBL Component pursuant to Section 2.07(b) (and in addition to any redetermination of the RBL Component pursuant to Sections 2.07(f) and (g)), the Borrower may by notifying the Administrative Agent thereof, and the Administrative Agent may, at the direction of the Required Lenders, by notifying the Borrower thereof, each elect to cause the RBL Component to be redetermined once between each Scheduled RBL Component Redetermination (an “Interim RBL Component Redetermination”) pursuant to Section 2.07(b). If such discretionary redetermination of the RBL Component pursuant to the provisions of this Section 2.07(c) is initiated by the Borrower, the Borrower shall deliver a written request to the Administrative Agent together with a Reserve Report in form and substance satisfactory to the Administrative Agent, prepared by the Borrower’s petroleum engineers, containing information similar to the Reserve Reports delivered pursuant to Section 2.07(b), and such other updated engineering, production, operating and other data as the Administrative Agent, the Issuer or any Lender may reasonably request; provided that if the Required Lenders have requested the discretionary redetermination of the RBL Component pursuant to the provisions of this Section 2.07(c), the Borrower shall deliver to the
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Administrative Agent such Reserve Report and other information within thirty (30) days of receipt of a request therefor. The Administrative Agent shall have fifteen (15) days following receipt of such requested information to make an initial redetermination of the RBL Component, and the Administrative Agent and the Required Lenders shall approve and designate the new RBL Component in accordance with the procedures and standards described in Section 2.07(b).
(d)With the delivery of each Reserve Report, the Borrower shall provide to the Administrative Agent a certificate from a Responsible Officer certifying that, to the best of such Responsible Officer’s knowledge and in all material respects: (i) the information contained in each such Reserve Report and any other information delivered in connection therewith is true and correct, (ii) the Borrower or the Guarantors owns good and defensible title to the Oil and Gas Properties evaluated in each such Reserve Report and such Properties are free of all Liens except for Liens permitted by Section 9.03, (iii) except as set forth on an exhibit to the certificate, on a net basis there are no gas imbalances, take or pay or other prepayments in excess of the volume specified in Section 7.20 with respect to their Oil and Gas Properties evaluated in such Reserve Report that would require the Borrower or any of its Subsidiaries to deliver Hydrocarbons either generally or produced from such Oil and Gas Properties at some future time without then or thereafter receiving full payment therefor, (iv) none of their Oil and Gas Properties have been transferred since the date of the last RBL Component determination except as set forth on an exhibit to the certificate, which certificate shall list all of its Oil and Gas Properties sold and in such detail as reasonably required by the Administrative Agent, (v) attached to the certificate is a list of all marketing agreements entered into subsequent to the later of the date hereof or the most recently delivered Reserve Report that the Borrower could reasonably be expected to have been obligated to list on Schedule 7.20 had such agreement been in effect on the date hereof, (vi) attached thereto is a schedule of the Oil and Gas Properties evaluated by such Reserve Report that are Mortgaged Properties and demonstrating the percentage of the present value that such Mortgaged Properties represent, and (vii) the outstanding amount of the Debt of the Borrower or any of its Subsidiaries does not exceed the amount permitted to be incurred pursuant to Section 9.02(f).
(e)Notwithstanding anything herein the contrary, in the event that the Borrower does not furnish any required Reserve Report within ten (10) days of date the required herein, the Administrative Agent and the Required Lenders may nonetheless designate the RBL Component from time to time thereafter until the Administrative Agent receives such Reserve Report, whereupon the Administrative Agent and the Required Lenders or all Lenders, as applicable, shall designate a new RBL Component in accordance with the general procedures outlined in Section 2.07(b).
(f)In addition to any redetermination described in Section 2.07(b) or (c), if at any time the aggregate fair market value of Oil and Gas Properties sold or disposed of pursuant to Section 9.12(d), together with the aggregate net fair market value to the Borrower of all Material Swap Transactions, in each case, since the most recent redetermination of the RBL Component, exceeds five percent (5%) of the value of proved developed Oil and Gas Properties included in the most recently delivered Reserve Report, then the Administrative Agent may, at the direction of the Required Lenders, by notifying the Borrower thereof, reduce the RBL Component, effective immediately upon such sale, disposition or consummation of Material Swap Transaction by an amount equal to the RBL Component value (as determined by the
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Administrative Agent in its reasonable judgment) of such Oil and Gas Properties sold or disposed of and Swap Transactions in respect of commodities assigned, terminated (other than as a result of the expiration thereof), unwound, sold or liquidated, and such new RBL Component shall be effective and applicable to the Borrower, the Administrative Agent, the Issuer and the Lenders until the next redetermination or modification of the RBL Component pursuant to this Agreement. Upon any such redetermination, the Administrative Agent shall promptly deliver a New RBL Component Notice to the Borrower and the Lenders. So long as the Borrower has not affirmatively elected to include the MidCon Assets in the determination of the RBL Component, any sale or other disposition of the MidCon Assets otherwise permitted under Section 9.12(d) shall not result in a reduction in the RBL Component.
(g)Notwithstanding the requirements of Section 12.02(b)(ii), any decrease of the RBL Component resulting solely as a result of any incurrence of Debt incurred by the Borrower or any of its Subsidiaries pursuant to Section 9.02(f) shall become effective upon the Administrative Agent’s notice thereof to the Borrower and the Lenders, and shall not require any approval of the Lenders or the Required Lenders.
(h)Midstream Component. For the period from and including the Second Amendment Effective Date to but excluding the first Scheduled Midstream Component Recalculation pursuant to this Section 2.07(h), the amount of the initial Midstream Component shall be $137,500,000.
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dispositions of Midstream Properties if the aggregate Midstream Attributed Value of Midstream Properties sold since the last recalculation of the Midstream Component exceeds five percent (5%) of the Midstream Component then in effect. Upon the Administrative Agent’s approval of any such pro forma adjustments, the Midstream Component shall be recalculated using the applicable Midstream Multiplier and the Administrative Agent shall notify the Borrower and the Lenders of the amount of the adjusted Midstream Component and the resulting new Borrowing Base. The adjusted Midstream Component and the Borrowing Base, respectively, shall become effective and applicable to the Borrower, the Administrative Agent, the Issuer and the Lenders as of the day of such notice. |
(i) requesting the issuance of a Letter of Credit or identifying the Letter of Credit issued by such Issuer to be amended, renewed or extended; |
(ii) specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day); |
(iii) specifying the date on which such Letter of Credit is to expire (which shall comply with Section 2.08(c)); |
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Exposures (without regard to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit) and the pro forma Revolving Credit Exposures (giving effect to the requested Letter of Credit or the requested amendment, renewal or extension of an outstanding Letter of Credit). |
Each notice shall constitute a representation that after giving effect to the requested issuance, amendment, renewal or extension, as applicable, (i) the Letter of Credit Exposure shall not exceed the Letter of Credit Commitment and (ii) the Revolving Credit Exposure shall not exceed the Revolving Loan Limit.
If requested by the Issuer, the Borrower also shall submit a letter of credit application on such Issuer’s standard form in connection with any request for a Letter of Credit.
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are caused by such Issuer’s failure to exercise commercially reasonable care when issuing Letters of Credit and determining whether drafts and other documents presented under a Letter of Credit comply with the terms thereof or suffered by the Borrower as a result of Issuer’s gross negligence or willful misconduct. The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct on the part of the Issuer (as finally determined by a court of competent jurisdiction), such Issuer shall be deemed to have exercised all requisite care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the terms of a Letter of Credit, the Issuer that issued such Letter of Credit may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. |
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Agreement with respect to Letters of Credit issued by it prior to such resignation or replacement, but shall not be required to issue additional Letters of Credit. |
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(d) if any Letter of Credit Exposure exists at the time a Lender becomes a Defaulting Lender or Impacted Lender then: |
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(a) ABR Loans. Each ABR Loan comprising an ABR Borrowing shall bear interest at the Alternate Base Rate plus the Applicable Margin, but in no event to exceed the Highest Lawful Rate. |
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the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and the relevant Lenders as soon as practicable thereafter. If such notice is given (x) any Eurodollar Loans requested to be made on the first day of such Interest Period shall be made as ABR Loans, (y) any Loans that were to have been converted on the first day of such Interest Period to Eurodollar Loans shall be continued as ABR Loans and (z) any outstanding Eurodollar Loans shall be converted, on the last day of the then-current Interest Period, to ABR Loans. Until such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans shall be made or continued as such, nor shall the Borrower have the right to convert Loans under the relevant Facilitycredit facility to Eurodollar Loans.
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Notwithstanding the foregoing, if the Administrative Agent (a) determines that the circumstances described in clause (i) of this Section 3.02(f) have arisen and such circumstances are unlikely to be temporary, (b) determines that the circumstances described in clause (i) of this section have not arisen but the supervisor for the administrator of the LIBO Rate or a Governmental Authority having jurisdiction over the Administrative Agent has made a public statement identifying a specific date after which the LIBO Rate shall no longer be used for determining interest rates for loans or (c) new syndicated loans have started to adopt a new benchmark interest rate, then the Administrative Agent and the Borrower shall endeavor to establish an alternate rate of interest to the LIBO Rate that gives due consideration to the then prevailing market convention for determining a rate of interest for syndicated loans in the United States at such time, and shall enter into an amendment to this Agreement to reflect such alternate rate of interest and such other related changes to this Agreement as may be applicable, provided that to the extent that the Administrative Agent determines that adoption of any portion of such market convention is not administratively feasible or that no market convention for the administration of such alternate rate of interest exists, the Administrative Agent shall administer such alternate rate of interest in a manner determined by the Administrative Agent in consultation with the Borrower. Notwithstanding anything to the contrary, such amendment shall become effective without any further action or consent of any other party to this Agreement so long as the Administrative Agent shall not have received, within five (5) Business Days of the date notice of such alternate rate of interest is provided to the Lenders, a written notice from the Majority Lenders stating that such Majority Lenders object to such amendment. If a notice of an alternate rate of interest has been given and no such alternate rate of interest has been determined, and (x) the circumstances under clause (a) or (c) above exist or (y) the specific date referred to in clause (b) has occurred (as applicable), Alternate Base Rate shall apply without regard to clause (c) of the definition thereof. Provided that, if such alternate rate of interest shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
(a) Optional Prepayments. The Borrower shall have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with Section 3.03(b). |
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pursuant to this Section 3.03(b), such prepayments may, at the Borrower’s option, be applied dollar-for-dollar as a prepayment to reduce either (i) the next quarterly amortizing payment (determined as of the date of such prepayment) or the quarterly mandatory amortizing payment immediately thereafter (i.e., the next two quarterly amortizing payments, but only the next two quarterly amortizing payments) until prepaid in full, or (ii) the outstanding principal amount of the Term Loans due on the Maturity Date. |
(1)prepay Advances or, if the Advances have been repaid in full, Cash Collateralize the Letter of Credit Exposure in an aggregate amount equal to such deficiency within ten (10) days after the Borrower’s written election;
(2)if the Borrowing Base Deficiency results from a reduction in the RBL Component, add additional Oil and Gas Properties acceptable to the Administrative Agent, in its sole discretion, to the RBL Component having a value, based on the same valuation methodology approved by the Required Lenders in determining the RBL Component that was used to value the then existing Oil and Gas Properties, such that the Borrowing Base Deficiency is cured within thirty (30) days after the Borrower’s written election; or
(3)commencing with the thirtieth (30th) day following the date of which the Administrative Agent gave the Borrower notice of such Borrowing Base Deficiency and every thirty days after such thirtieth (30th) thereafter (or any such day is not a Business Day, on the next Business Day after such day), pay the Borrowing Base Deficiency in six (6) equal monthly installments for the prepayment of the Advances or, if the Advances have been repaid in full, make deposits into the Cash Collateral Account to provide cash collateral for the Letter of Credit Exposure such that the Borrowing Base Deficiency is eliminated in a period of six (6) months.
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(e) No Premium or Penalty. Prepayments permitted or required under this Section 3.03 shall be without premium or penalty, except as required under Section 5.02. |
(v)Accrued Interest. Each prepayment under this Section 3.03(c) shall be accompanied by accrued interest on the amount prepaid to the date of such prepayment and amounts, if any, required to be paid pursuant to Section 5.02 as a result of such prepayment.
(d)No Premium or Penalty. Prepayments permitted or required under this Section 3.03 shall be without premium or penalty, except as required under Section 5.02.
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during the period from and including the date of this Agreement to but excluding the Termination Date (the face amount of any issued and outstanding Letter of Credit shall count as usage for purposes hereof). Accrued Commitment Fees shall be payable in arrears on the last day of March, June, September and December of each year and on the Termination Date, commencing on the first such date to occur after the date hereof. All Commitment Fees shall be computed on the basis of a year of 360 days, unless such computation would exceed the Highest Lawful Rate, in which case such Commitment Fees shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). |
(c) Administrative Agent Fees. The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times specified in the Fee Letter. |
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refundable under any circumstances. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices specified in Section 12.01, except payments to be made directly to an Issuer as expressly provided herein and except that payments pursuant to Section 5.01, Section 5.02, Section 5.03 and Section 12.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof, and any such payments payable to a Lender shall be made in accordance with such Lender’s Applicable Percentage, unless otherwise provided herein. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments hereunder shall be made in dollars. |
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counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the Borrower in the amount of such participation. |
(ii) impose on any Lender or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender; |
and the result of any of the foregoing shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to reduce the amount of any sum received or receivable by such Lender (whether of principal, interest or otherwise), then the Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or reduction suffered.
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Lender’s or such Issuer’s holding company with respect to capital adequacy), then from time to time the Borrower will pay to such Lender or such Issuer, as the case may be, such additional amount or amounts as will compensate such Lender or such Issuer or such Lender’s or such Issuer’s holding company for any such reduction suffered. |
A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section 5.02 shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof.
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clear of and without deduction or withholding for any Taxes, except as required by applicable law; provided that if the Borrower or any Guarantor shall be required by applicable law to deduct any Indemnified Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions and withholdings (including deductions and withholdings applicable to additional sums payable under this Section 5.03(a)), the Administrative Agent, Lender or Issuer (as the case may be) receives an amount equal to the sum it would have received had no such deductions or withholdings been made, (ii) the Borrower or such Guarantor shall make such deductions or withholdings and (iii) the Borrower or such Guarantor shall pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with Governmental Requirements. |
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receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. |
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party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person. |
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(e) The Administrative Agent shall have received from each party hereto counterparts (in such number as may be requested by the Administrative Agent) of this Agreement signed on behalf of such party. |
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Instruments, (i) the Administrative Agent shall be reasonably satisfied that the Security Instruments create first priority, perfected Liens (subject only to Excepted Liens) on at least 80% of the total value of the Proved Reserves evaluated in the Initial Reserve Report and (ii) the Collateral Agent shall have received original stock or membership interest certificates (if such interests are certificated) evidencing all of the issued and outstanding Equity Interests in each Guarantor, together with the appropriate undated stock powers, or other equivalent instruments of transfer reasonably acceptable to the Administrative Agent, for each certificate duly executed in blank by the registered owner thereof; provided that any original stock or membership interest certificates (if any) held by the Existing Agent may be delivered to the Administrative Agent within a reasonable time after the Closing Date. |
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(n) The Administrative Agent shall have received the Assignment Agreement duly executed and delivered by the parties thereto. |
(o) The Administrative Agent shall have received the Fee Letter duly executed and delivered by the parties thereto. |
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(v) The Administrative Agent and each Lender shall have received all Act disclosures requested by them prior to execution of this Agreement. |
(w) The Administrative Agent shall have received such other documents as the Administrative Agent or special counsel to the Administrative Agent may reasonably request. |
(e) The receipt by the Administrative Agent of a Borrowing Request in accordance with Section 2.03 or a request for a Letter of Credit in accordance with Section 2.08(b), as applicable. |
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Each request for a Borrowing and each issuance, amendment, renewal or extension of any Letter of Credit shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the satisfaction of the conditions specified in Section 6.02(a) through (d)[ and (f)].
The Borrower represents and warrants to the Lenders that:
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past or present treatment, storage, disposal or release of a hazardous substance, oil and gas waste or solid waste into the environment, have been duly obtained or filed or requested, and the Borrower and each of its Consolidated Subsidiaries are in compliance with the terms and conditions of all such notices, permits, licenses and similar authorizations. |
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governmental charge, except for tax Liens or claims that could not reasonably be expected to have a Material Adverse Effect. |
(a) The Borrower and its Consolidated Subsidiaries have complied in all material respects with ERISA and, where applicable, the Code regarding each Plan, if any, that they maintain. |
(e) Each Pension Plan satisfies the minimum funding requirements of Section 412 of the Code and, if applicable, Part 3 of Title I of ERISA. |
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12.01). The Borrower’s principal place of business and chief executive offices are located at the address specified in Section 12.01 (or as set forth in a notice delivered pursuant to Section 8.01(l) and Section 12.01(c)). Each Subsidiary’s jurisdiction of organization, name as listed in the public records of its jurisdiction of organization and the location of its principal place of business and chief executive office is stated on Schedule 7.14 (or as set forth in a notice delivered pursuant to Section 8.01(l)). |
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adversely affected as a result of any fire, explosion, earthquake, flood, drought, windstorm, accident, strike or other labor disturbance, embargo, requisition or taking of Property or cancellation of contracts, permits, or concessions by a Governmental Authority, riot, activities of armed forces, or acts of God or of any public enemy. |
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Person (including any Person participating in the Loans, whether as underwriter, advisor, investor, or otherwise). |
Until the Loan Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents shall have been paid in full and all Letters of Credit shall have expired or terminated and all Letter of Credit Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:
Section 8.01 Financial Statements; Ratings Change; Other Information. The Borrower will furnish to the Administrative Agent: |
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Borrower or any of its Subsidiaries under Section 3.3, 3.6, 5.2, 9.1, 10.1, or 11.4)) and not otherwise required to be furnished to the Lenders pursuant to any other provision of this Section 8.01. |
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(d) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect. |
Each notice delivered under this Section 8.02 shall be accompanied by a statement of a Responsible Officer setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.
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Section 8.06 Operation and Maintenance of Properties. The Borrower will, and will cause each of its Consolidated Subsidiaries to: |
(e) to the extent the Borrower or one of its Subsidiaries is not the operator of any Property, the Borrower shall use reasonable efforts to cause the operator to comply with this Section 8.06. |
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(a)On or before the delivery to the Administrative Agent and the Lenders of each Reserve Report required by Section 2.07(b), to the extent requested by the Administrative Agent, the Borrower will deliver title information in form and substance acceptable to the Administrative Agent covering, together with title information previously delivered to the Administrative Agent, (i) enough of the Oil and Gas Properties evaluated by such Reserve Report that were not included in the immediately preceding Reserve Report, so that the Administrative Agent shall have received satisfactory title information on at least 90% of the total value of the Proved Reserves evaluated by such Reserve Report and (ii) Midstream Properties that contributed at least 90% of Midstream Adjusted EBITDA at the most recent Scheduled Midstream Component Recalculation.
(b)If the Borrower has provided title information for additional Oil and Gas Properties or Midstream Properties under Section 8.12(a), the Borrower shall, within 60 days of notice from the Administrative Agent that title defects or exceptions exist with respect to such additional Properties, either (i) cure any such title defects or exceptions (including defects or exceptions as to priority) which are not permitted by Section 9.03 raised by such information, (ii) substitute acceptable Mortgaged Properties with no title defects or exceptions except for Excepted Liens (other than Excepted Liens described in clauses (d), (e) and (h) of such definition) having an equivalent value or (iii) deliver title information in form and substance reasonably acceptable to the Administrative Agent so that the Administrative Agent shall have received, together with title information previously delivered to the Administrative Agent,
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reasonably satisfactory title information with respect to (x) at least 90% of the value of the Proved Reserves evaluated by such Reserve Report and (y) Midstream Properties that contributed at least 90% of Midstream Adjusted EBITDA at the most recent Scheduled Midstream Component Recalculation.
(c)If the Borrower is unable to cure any title defect requested by the Administrative Agent or the Lenders to be cured within the 60-day period or the Borrower does not comply with the requirements to provide acceptable title information covering 90% of the value of the Proved Reserves evaluated in the most recent Reserve Report or Midstream Properties that contributed at least 90% of Midstream Adjusted EBITDA at the most recent Scheduled Midstream Component Recalculation, such default shall not be a Default, but instead the Administrative Agent and/or the Required Lenders shall have the right to exercise the following remedy in their sole discretion from time to time, and any failure to so exercise this remedy at any time shall not be a waiver as to future exercise of the remedy by the Administrative Agent or the Lenders. To the extent that the Administrative Agent or the Required Lenders are not reasonably satisfied after the 60-day period has elapsed with title to (i) any Oil and Gas Properties, such unacceptable Oil and Gas Properties shall not count towards the 90% requirement in this Section 8.12(c), and the Administrative Agent may send a notice to the Borrower and the Lenders that the then outstanding RBL Component shall be reduced by an amount as determined by the Required Lenders to cause the Borrower to be in compliance with the requirement to provide acceptable title information on 90% of the value of the Proved Reserves or (ii) any material Midstream Properties, Midstream Adjusted EBITDA (and consequently the Midstream Component) shall be reduced by the Midstream Attributed Value of such Midstream Properties. The Borrowing Base, as so reduced, shall become effective immediately after receipt of such notice.
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its designee as security for the Obligations a first-priority Lien (provided the Excepted Liens may exist) on additional Midstream Properties not already subject to a Lien of the Security Instruments such that Midstream Properties that contributed at least 90% of Midstream Adjusted EBITDA at the most recent Scheduled Midstream Component Recalculation become subject to the Lien of the Security Instruments. All such Liens will be created and perfected by and in accordance with the provisions of deeds of trust, security agreements and financing statements or other Security Instruments, all in form and substance reasonably satisfactory to the Administrative Agent or its designee and in sufficient executed (and acknowledged where necessary or appropriate) counterparts for recording purposes. In order to comply with the foregoing, if any Subsidiary places a Lien on its Oil and Gas Properties or Midstream Properties and such Subsidiary is not a Guarantor, then it shall become a Guarantor and comply with Section 8.13(b). |
(i) the execution and delivery of a supplement to the Pledge and Security Agreement in the form of Annex 1 to the Pledge and Security Agreement; |
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(v) UCC search certificates reflecting no prior Liens encumbering such Subsidiary that becomes a Guarantor pursuant to this Section 8.13(b) other than Liens permitted by Section 9.03. |
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incurring any late payment or underpayment charge or penalty and without giving rise to any lien, all of the contribution and funding requirements of Section 412 of the Code (determined without regard to subSection (c) thereof) and of Section 302 of ERISA (determined without regard to subSection (c) thereof), and (ii) pay, or cause to be paid, to the PBGC in a timely manner, without incurring any late payment or underpayment charge or penalty, all premiums required pursuant to sections 4006 and 4007 of ERISA. |
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delivered to the prospective or actual holders of the Unsecured Notes, a true and correct copy of such final prospectus or final offering memorandum; |
(d) deliver to the Administrative Agent promptly such other related materials evidencing the issuance of the Unsecured Notes as the Administrative Agent may reasonably request; and |
Until the Loan Commitments have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder and all other amounts payable under the Loan Documents have been paid in full and all Letters of Credit have expired or terminated and all Letter of Credit Disbursements shall have been reimbursed, the Borrower covenants and agrees with the Lenders that:
(c)Minimum Interest Coverage. The Borrower will not permit, as of the last day of any fiscal quarter, commencing with the fiscal quarter ending December 31, 2015, its ratio
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of (i) Adjusted EBITDA for the Rolling Period ending on such date (but subject to clause (d) below) to (ii) Interest Expense for the Rolling Period ending on such date (but subject to clause (d) below), to be less than 2.50 to 1.0.
(d)Notwithstanding anything to the contrary in this Agreement (including the definition of “Rolling Period”), (i) Adjusted EBITDA and Interest Expense for the four consecutive fiscal quarter periods ending December 31, 2015, shall equal Adjusted EBITDA and Interest Expense, respectively, for the fiscal quarter ending December 31, 2015, multiplied by four (4), (ii) Adjusted EBITDA and Interest Expense for the four consecutive fiscal quarter periods ending March 31, 2016, shall equal Adjusted EBITDA and Interest Expense, respectively, for the two consecutive fiscal quarter period ending March 31, 2016, multiplied by two (2) and (iii) Adjusted EBITDA and Interest Expense for the four consecutive fiscal quarter periods ending June 30, 2016, shall equal Adjusted EBITDA and Interest Expense, respectively, for the three consecutive fiscal quarter periods ending June 30, 2016, multiplied by four-thirds (4/3).
Section 9.02 Debt. Neither the Borrower nor any of its Subsidiaries will incur, create, assume or suffer to exist any Debt, except: |
(a) the Notes or other Obligations arising under the Loan Documents or any guaranty of or suretyship arrangement for the Notes or other Obligations arising under the Loan Documents; |
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Section 9.03 Liens. Neither the Borrower nor any of its Subsidiaries will create, incur, assume or permit to exist any Lien on any of its Properties (now owned or hereafter acquired), except: |
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Subsidiary that is not a Guarantor, provided that the aggregate of all Investments made by the Borrower or any Guarantor in or to any Subsidiary that is not a Guarantor shall not exceed $2,000,000 at any time; |
(i)Investments in any Joint Venture so long as (i) prior to making such Investment, the Borrower shall provide to the Administrative Agent a certificate from a Responsible Officer giving notice of its proposed investment in such Joint Venture and acknowledging its undertaking to pledge the Equity Interests of such Joint Venture and deliver such other additional closing documents and certificates in compliance with Section 8.13 of this Agreement, (ii) there shall remain at least 20% of unused borrowing capacity that can be accessed under the Borrowing Base after giving effect thereto, and (iii) no Default or Event of Default shall exist or result therefrom.
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Subsidiaries to, operate its business outside the boundaries of the United States and its adjoining waters, including, without limitation, the Gulf of Mexico. |
(b) terminate any Pension Plan in a manner, or take any other action with respect to any Pension Plan, which could result in any liability of the Borrower or any of its Subsidiaries to the PBGC; |
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(h) incur a liability to or on account of a Pension Plan or Multiemployer Plan under sections 515, 4062, 4063, 4064, 4201 or 4204 of ERISA, as applicable; |
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Section 9.17 Swap Transactions. Neither the Borrower nor any of its Subsidiaries will enter into any Swap Transactions with any Person other than: |
provided, however, that the aggregate notional volumes under all such RBL Swap Transactions (other than floor or put options) shall not exceed the most recent month’s actual production, calculated separately for each of crude oil and natural gas, in any given month; no RBL Swap Transaction shall in any event have a tenor greater than five (5) years; and the projections of Proved Developed Producing Reserves and Proved Reserves that must be used in determining the maximum allowable hedging shall be based on the Borrower’s reasonable business judgment and consistent application of petroleum engineering methodologies for estimating Proved Developed Producing Reserves and Proved Reserves using the then-strip pricing.
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that, (1) such RBL Swap Transactions are with an Approved Counterparty; (2) the aggregate notional volumes under such incremental RBL Swap Transactions shall not exceed 35% of the projected monthly production from the Borrower’s and its Subsidiaries’ Proved Reserves (as forecast based upon the most recent Reserve Report) for a period not exceeding 36 months from the date each such incremental RBL Swap Transaction is executed; (3) to the extent aggregate notional volumes under all RBL Swap Transactions of the Borrower exceed 100% of the projected monthly production from the Borrower’s and its Subsidiaries’ existing Proved Reserves (prior to the consummation of such proposed acquisition), the Borrower shall maintain at least 15% of unused borrowing capacity that can be accessed under this Agreement; (4) a Person approved in writing by Administrative Agent has guaranteed the obligations thereunder in the maximum aggregate amount (giving effect to any netting agreements) that the Borrower would be required to pay if such RBL Swap Transaction were terminated at such time pursuant to a written guarantee agreement in favor of Administrative Agent for the benefit of the Lenders in a form reasonably acceptable to the Administrative Agent; and (5) all such incremental RBL Swap Transactions entered into with respect to a proposed acquisition must be terminated, unwound or offset within 90 days following the date such proposed acquisition is terminated (it being understood, for avoidance of doubt, that such incremental RBL Swap Transactions may be retained to the extent such RBL Swap Transactions could be entered into, as of the date of termination of the proposed acquisition, pursuant to Section 9.17(a)). |
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Section 9.20 Accounting Changes. The Borrower shall not make any change in its (a) accounting policies or reporting practices, except as required by GAAP, or (b) fiscal year. |
Section 9.21 Prepayment of Permitted Unsecured Notes; Amendments to Debt Documents. The Borrower will not, and will not permit any Subsidiary to: |
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(b) If a Joint Venture is managed by a board of directors or other managing body, then (x) neither the Borrower nor any Subsidiary shall, without the consent of the Majority Lenders,
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instruct its representative(s) on the board or other managing body to vote for (i) the incurrence, creation, assumption or existence of any Debt by such Joint Venture other than Permitted Joint Venture Debt, (ii) the sale, distribution or other disposition of any material portion of the assets or properties by such Joint Venture outside the ordinary course of business such that the approval or consent of a specified percentage of the members or other holders of voting Equity Interests of such Joint Venture or, if applicable, the board or other applicable managing body of such Joint Venture, is required under the terms of such Joint Venture’s organizational documents, (iii) the incurrence, creation, assumption or existence of Liens by such Joint Venture other than Excepted Liens, or (iv) the amendment, waiver or other modification of any material gathering, compressing, processing, transportation, services or other commercial agreement (including, without limitation, the Carnero Transportation Services Agreement and the Carnero Gathering Agreement) to which the primary revenues of such Joint Venture are attributable if the effect of such amendment, waiver or modification is to reduce (or could reasonably be expected to reduce) in any material respect any minimum committed volumes or minimum committed service level thereunder and (y) the Borrower and each Subsidiary shall expressly instruct its representative(s) on the board or other managing body to oppose any proposal to vote in favor of, consent to or approve any of the foregoing actions or events.
Section 10.01 Events of Default. One or more of the following events shall constitute an “Event of Default”: |
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Section 10.01(a), Section 10.01(b) or Section 10.01(d)) or any other Loan Document, and such failure shall continue unremedied for a period of 30 days after the earlier to occur of (i) notice thereof from the Administrative Agent to the Borrower (which notice will be given at the request of any Lender) or (ii) a Responsible Officer of the General Partner or any of the Borrower’s Subsidiaries otherwise becoming aware of such default; |
(i) the Borrower or any of its Subsidiaries shall become unable, admit in writing its inability or fail generally to pay its debts as they become due; |
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stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the Borrower or any of its Subsidiaries to enforce any such judgment; |
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First, to the Agents and the other Secured Parties, ratably, in an amount equal to the reimbursement of expenses and indemnities provided for under this Agreement and the Security Instruments;
Second, to the Secured Parties, ratably, in payment of that portion of the Obligations constituting interest due, in each case, under their respective Loan Documents or Swap Agreement;
Third, to the Secured Parties, ratably, in payment of that portion of the Obligations constituting fees due under their respective Loan Documents or Swap Agreement;
Fourth, ratably to the Secured Parties (and ratably among them) in payment of all of the remaining Obligations owing to the Lenders or an Affiliate of the Lenders under their respective Loan Documents (including an amount sufficient to Cash Collateralize any remaining Letter of Credit Exposure, if any) or Swap Agreement; and
Fifth, to serve as cash collateral to be held by the Administrative Agent to secure the Letter of Credit Exposure under this Agreement; andSixth, to the Borrower or to whomever may be lawfully entitled to receive the same or as a court of competent jurisdiction may direct, any surplus then remaining from such proceeds.
To the extent that any amount of Cash Collateral held by the Administrative Agent remains after all Letters of Credit shall have expired or terminated and all Letter of Credit Disbursements shall have been reimbursed, then such amount shall be applied in accordance with foregoing clauses First through Fifth.
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Administrative Agent shall have received written notice from such Lender prior to the Closing Date specifying its objection thereto. |
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for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. The Agents may deem and treat the payee of any Note as the holder thereof for all purposes hereof unless and until a written notice of the assignment or transfer thereof permitted hereunder shall have been filed with the Administrative Agent. |
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taking or not taking action under or based upon this Agreement, any other Loan Document, any related agreement or any document furnished hereunder or thereunder. The Agents shall not be required to keep themselves informed as to the performance or observance by the Borrower or any of its Subsidiaries of this Agreement, the Loan Documents or any other document referred to or provided for herein or to inspect the Properties or books of the Borrower or its Subsidiaries. Except for notices, reports and other documents and information expressly required to be furnished to the Lenders by the Administrative Agent hereunder, no Agent or Arranger shall have any duty or responsibility to provide any Lender with any credit or other information concerning the affairs, financial condition or business of the Borrower (or any of its Affiliates) which may come into the possession of such Agent or any of its Affiliates. In this regard, each Lender acknowledges that Mayer Brown LLP is acting in this transaction as special counsel to the Administrative Agent with respect to this Agreement and to the Collateral Agent only. Each other party hereto will consult with its own legal counsel to the extent that it deems necessary in connection with the Loan Documents and the matters contemplated therein. |
Nothing contained herein shall be deemed to authorize the Administrative Agent or the Collateral Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights
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of any Lender or to authorize the Administrative Agent or the Collateral Agent to vote in respect of the claim of any Lender in any such proceeding.
Sanchez Midstream Partners LP
1000 Main Street, Suite 3000
Houston, Texas 77002
Telephone: 832-742-3818
Fax: 832-308-3720
Attn: Chief Financial Officer
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Royal Bank of Canada
Agency Services Group
4th Floor, 20 King Street West
Toronto, Ontario, Canada
M5H 1CA
Attention: Manager Agency
Facsimile: (416) 842-4023
Email: RBCAgentNotices@rbccm.com
With a copy to:
Royal Bank of Canada
2800 Post Oak Boulevard
609 Main Street, Suite 39003600
Houston, Texas 7705677002
Attention: Mark LumpkinDon McKinnerney
Facsimile: 713-403-56245607
Royal Bank of Canada
One Liberty Plaza
3rd Floor
New York, NY 10006-1404
Attention: Manager Trade Products
Telephone: 212-428-6235
Facsimile: 212-428-6332
(iv) if to any other Lender, in its capacity as such, or any other Lender in its capacity as an Issuer, to it at its address (or telecopy number) set forth in its Administrative Questionnaire. |
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(e) All amounts due under this Section 12.03 shall be payable within ten (10) Business Days of written demand therefor. |
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Person (other than the parties hereto, their respective successors and assigns permitted hereby (including any Affiliate of the Issuer that issues any Letter of Credit), Participants (to the extent provided in Section 12.04(c)) and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, each Issuer and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. |
(1)the Borrower, provided that no consent of the Borrower shall be required for an assignment to a Lender or an Affiliate of a Lender or, if an Event of Default has occurred and is continuing, to any other Eligible Assignee; and
(2)the Administrative Agent, provided that no consent of the Administrative Agent shall be required for an assignment to an assignee that is a Lender or any Affiliate of a Lender, immediately prior to giving effect to such assignment.
(1)except in the case of an assignment to an assignee that is a Lender immediately prior to giving effect to such assignment or an Affiliate of a Lender or an assignment of the entire remaining amount of the assigning Lender’s Revolving Loan Commitment or Term Loans, the amount of the Revolving Loan Commitment or Term Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of the Borrower shall be required if an Event of Default has occurred and is continuing;
(2)each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement;
(3)except in the case of an assignment to an Affiliate of a Lender, the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; and
(4)the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire.
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WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY SUCH ACTION OR PROCEEDING IN SUCH RESPECTIVE JURISDICTIONS. THIS SUBMISSION TO JURISDICTION IS NON-EXCLUSIVE AND DOES NOT PRECLUDE A PARTY FROM OBTAINING JURISDICTION OVER ANOTHER PARTY IN ANY COURT OTHERWISE HAVING JURISDICTION. |
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or any other Loan Document, (e) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section 12.11, to (i) any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to any Swap Agreement relating to the Borrower and their obligations, (g) with the consent of the Borrower, (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section 12.11 or (ii) becomes available to the Administrative Agent, the Issuer or any Lender on a nonconfidential basis from a source other than the Borrower or (i) to any credit insurance provider relating to the Borrower and its Obligations so long as any such credit insurance provider is party to a written agreement by which it is subject to the confidentiality provisions of this Section 12.11. For the purposes of this Section 12.11, “Information” means all information received from the Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries and their businesses, other than any such information that is available to the Administrative Agent, the Issuer or any Lender on a nonconfidential basis prior to disclosure by the Borrower or any of its Subsidiaries; provided that, in the case of information received from the Borrower, or any of its Subsidiaries after the date hereof, such information is clearly identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section 12.11 shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. |
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amount of interest and any such fees to accrue to such Lender pursuant to this Agreement shall be limited, notwithstanding anything to the contrary in this Agreement, to that amount that would have accrued at the Highest Lawful Rate, but any subsequent reductions, as applicable, shall not reduce the interest to accrue to such Lender pursuant to this Agreement below the Highest Lawful Rate until the total amount of interest accrued pursuant to this Agreement and such fees deemed to be interest equals the amount of interest that would have accrued to such Lender if a varying rate per annum equal to the interest provided pursuant to Section 3.02 had at all times been in effect, plus the amount of fees that would have been received but for the effect of this Section 12.12. |
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(a) the Existing Credit Agreement shall be deemed to be amended and restated in its entirety in the form of this Agreement; |
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(i)a reduction in full or in part or cancellation of any such liability;
(ii)a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of
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ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
(iii)the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.
In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
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OBLIGATIONS, ACCOUNTS, DEFENSES, SUITS, OFFSETS AGAINST THE INDEBTEDNESS EVIDENCED BY THE LOAN DOCUMENTS, ACTIONS, AND ANY AND ALL CLAIMS FOR DAMAGES OR RELIEF OF WHATEVER KIND OR NATURE, WHETHER IN EQUITY OR AT LAW, MONETARY OR NON-MONETARY, KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, MATURED OR UNMATURED, THAT THE BORROWER OR ANY GUARANTOR OR ANY SUBSIDIARY OF ANY OF THEM, HAS, HAD OR MAY HAVE AGAINST ANY RELEASED PARTY, INDIVIDUALLY OR COLLECTIVELY, FOR OR BY REASON OF ANY MATTER, CAUSE OR THING WHATSOEVER OCCURRING ON OR AT ANY TIME PRIOR TO THE DATE OF THE EXECUTION OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY MATTER THAT RELATES TO, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY (A) THIS AGREEMENT, ANY NOTE, ANY SECURITY INSTRUMENTS, ANY OTHER LOAN DOCUMENT, ANY SWAP AGREEMENT OR SWAP TRANSACTION EXECUTED BY LENDERS OR THEIR AFFILIATES (COLLECTIVELY, FOR PURPOSES OF THIS SECTION 12.21, THE “TRANSACTION DOCUMENTS”) OR THE TRANSACTIONS EVIDENCED HEREBY OR THEREBY, INCLUDING, WITHOUT LIMITATION, ANY DISBURSEMENTS UNDER ANY TRANSACTION DOCUMENTS, THE TERMS THEREOF, OR THE APPROVAL, ADMINISTRATION OR SERVICING THEREOF, OR (B) ANY NOTICE OF DEFAULT, EVENT OF DEFAULT IN REFERENCE TO ANY TRANSACTION DOCUMENTS OR ANY OTHER MATTER PERTAINING TO THE COLLECTION OR ENFORCEMENT BY ANY RELEASED PARTY OF THE INDEBTEDNESS EVIDENCED BY ANY TRANSACTION DOCUMENTS OR ANY RIGHT OR REMEDY UNDER ANY TRANSACTION DOCUMENTS, OR (C) ANY PURPORTED ORAL AGREEMENTS OR UNDERSTANDINGS BY AND BETWEEN ANY RELEASED PARTY AND THE BORROWER AND ANY GUARANTOR IN REFERENCE TO ANY TRANSACTION DOCUMENTS. |
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REVOLVING LOAN COMMITMENTS
[As replaced in accordance with Section 2 of the Ninth Amendment]
[To be Attached]
ANNEX I
REVOLVING LOAN COMMITMENTS
|
|
|
NAME OF LENDER | APPLICABLE | REVOLVING LOAN |
Royal Bank of Canada | 13.333333334% | $ 2,666,666.67 |
BBVA USA f/k/a Compass Bank | 11.904761905% | $ 2,380,952.38 |
SunTrust Bank | 11.904761905% | $ 2,380,952.38 |
Capital One, National Association | 11.904761905% | $ 2,380,952.38 |
Comerica Bank | 11.904761905% | $ 2,380,952.38 |
Citibank, N.A. | 8.571428571% | $ 1,714,285.71 |
Credit Suisse AG, Cayman Islands Branch | 8.571428571% | $ 1,714,285.71 |
ING Capital LLC | 8.571428571% | $ 1,714,285.71 |
CIT Bank, N.A. | 8.571428571% | $ 1,714,285.71 |
Macquarie Investments US Inc. | 4.761904762% | $ 952,380.95 |
TOTAL | 100.00000000% | $ 20,000,000.00 |
Annex II
TERM LOAN COMMITMENTS
[As replaced in accordance with Section 2 of the Ninth Amendment]
[To be Attached]
ANNEX II
TERM LOAN COMMITMENTS
|
|
|
NAME OF LENDER | APPLICABLE PERCENTAGE | TERM LOAN |
Royal Bank of Canada | 13.333333334% | $ 20,666,666.67 |
BBVA USA f/k/a Compass Bank | 11.904761905% | $ 18,452,380.95 |
SunTrust Bank | 11.904761905% | $ 18,452,380.95 |
Capital One, National Association | 11.904761905% | $ 18,452,380.95 |
Comerica Bank | 11.904761905% | $ 18,452,380.95 |
Citibank, N.A. | 8.571428571% | $ 13,285,714.29 |
Credit Suisse AG, Cayman Islands Branch | 8.571428571% | $ 13,285,714.29 |
ING Capital LLC | 8.571428571% | $ 13,285,714.29 |
CIT Bank, N.A. | 8.571428571% | $ 13,285,714.29 |
Macquarie Investments US Inc. | 4.761904762% | $ 7,380,952.38 |
TOTAL | 100.00000000% | $ 155,000,000.00 |
Exhibit AA
Exhibit A-1
Form of Revolving Note
Exhibit A-2
Form of Term Note
[As replaced in accordance with Section 2 of the Ninth Amendment]
[To be Attached]
NOTE
$[AMOUNT] | [DATE] |
FOR VALUE RECEIVED, Sanchez Midstream Partners LP, a Delaware limited partnership (the “Borrower”), hereby promises to pay to [REVOLVING LENDER], or its registered assigns (the “Revolving Lender”), at the principal office of Royal Bank of Canada, as administrative agent (the “Administrative Agent”), the principal sum of [AMOUNT ($[__])] (or such lesser amount as shall equal the aggregate unpaid principal amount of the Revolving Loans) made by the Revolving Lender to the Borrower under the Credit Agreement (defined below), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Revolving Loan, at such office, in like money and funds, for the period commencing on the date of such Revolving Loan until such Revolving Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.
The date, amount, Type, interest rate, Interest Period and maturity of each Revolving Loan made by the Revolving Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Revolving Lender on its books and, prior to any transfer of this Note, may be endorsed by the Revolving Lender on the schedules attached hereto or any continuation thereof or on any separate record maintained by the Revolving Lender. Failure to make any such notation or to attach a schedule shall not affect any Revolving Lender’s or the Borrower’s rights or obligations in respect of such Revolving Loans or affect the validity of such transfer by any Revolving Lender of this Note.
This Note is issued pursuant to, and is subject to the terms and conditions set forth in, that certain Third Amended and Restated Credit Agreement, dated as of March 31, 2015, by and among the Borrower, the Administrative Agent, and certain other lenders parties thereto from time to time (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) and is entitled to the benefits provided for in the Credit Agreement and the other Loan Documents. The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events, for prepayments of Revolving Loans upon the terms and conditions specified therein and other provisions relevant to this Note. Capitalized terms used in this Note have the respective meanings assigned to them in the Credit Agreement
This Note is one of the notes that represents an extension, renewal, and replacement of, and is given in substitution and exchange for, (x) certain promissory notes executed by the Borrower evidencing prior indebtedness of the Borrower in the original aggregate principal amount of up to $350,000,000 under the Second Amended and Restated Credit Agreement dated as of May 30, 2013, as such Second Amended and Restated Credit Agreement was or may have been from time to time thereafter amended or modified, and (y) certain promissory notes executed by the Borrower under the Credit Agreement, and the indebtedness evidenced hereby and thereby is a continuing indebtedness, and nothing herein contained or implied shall be construed to deem such indebtedness or any accrued and unpaid interest thereon paid, satisfied, novated or terminated, or any collateral or security therefore released or terminated.
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
| SANCHEZ MIDSTREAM PARTNERS LP, a | |
| Delaware limited partnership | |
|
|
|
| By: | Sanchez Midstream Partners GP LLC, |
|
| its general partner |
|
|
|
|
|
|
| By: |
|
|
| Name: Charles C. Ward |
|
| Title: Chief Financial Officer |
NOTE
$[AMOUNT] | [DATE] |
FOR VALUE RECEIVED, Sanchez Midstream Partners LP, a Delaware limited partnership (the “Borrower”), hereby promises to pay to [TERM LENDER], or its registered assigns (the “Term Lender”), at the principal office of Royal Bank of Canada, as administrative agent (the “Administrative Agent”), the principal sum of [AMOUNT ($[__])] (or such lesser amount as shall equal the aggregate unpaid principal amount of the Term Loans) made by the Term Lender to the Borrower under the Credit Agreement (defined below), in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Term Loan, at such office, in like money and funds, for the period commencing on the date of such Term Loan until such Term Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit Agreement.
The date, amount, Type, interest rate, Interest Period and maturity of each Term Loan made by the Term Lender to the Borrower, and each payment made on account of the principal thereof, shall be recorded by the Term Lender on its books and, prior to any transfer of this Note, may be endorsed by the Term Lender on the schedules attached hereto or any continuation thereof or on any separate record maintained by the Term Lender. Failure to make any such notation or to attach a schedule shall not affect any Term Lender’s or the Borrower’s rights or obligations in respect of such Term Loan or affect the validity of such transfer by any Term Lender of this Note.
This Note is issued pursuant to, and is subject to the terms and conditions set forth in, that certain Third Amended and Restated Credit Agreement, dated as of March 31, 2015, by and among the Borrower, the Administrative Agent, and certain other lenders parties thereto from time to time (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) and is entitled to the benefits provided for in the Credit Agreement and the other Loan Documents. The Credit Agreement provides for the acceleration of the maturity of this Note upon the occurrence of certain events, for prepayments of Term Loans upon the terms and conditions specified therein and other provisions relevant to this Note. Capitalized terms used in this Note have the respective meanings assigned to them in the Credit Agreement
This Note is one of the notes that represents an extension, renewal, and replacement of, and is given in substitution and exchange for, (x) certain promissory notes executed by the Borrower evidencing prior indebtedness of the Borrower in the original aggregate principal amount of up to $350,000,000 under the Second Amended and Restated Credit Agreement dated as of May 30, 2013, as such Second Amended and Restated Credit Agreement was or may have been from time to time thereafter amended or modified, and (y) certain promissory notes executed by the Borrower under the Credit Agreement, and the indebtedness evidenced hereby and thereby is a continuing indebtedness, and nothing herein contained or implied shall be construed to deem such indebtedness or any accrued and unpaid interest thereon paid, satisfied, novated or terminated, or any collateral or security therefore released or terminated.
Note
733512454 14464587
THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
| SANCHEZ MIDSTREAM PARTNERS LP, a | |
| Delaware limited partnership | |
|
|
|
| By: | Sanchez Midstream Partners GP LLC, |
|
| its general partner |
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|
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| By: |
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| Name: Charles C. Ward |
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| Title: Chief Financial Officer |
Note
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