Exhibit 10.1

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is dated as of
September 5, 2014, and is made by and among CLOUD PEAK ENERGY RESOURCES LLC, a
Delaware limited liability company (the “U.S. Borrower”), certain foreign
subsidiaries of the U.S. Borrower as set forth in the Credit Agreement (as
defined herein)(each a “Designated Foreign Borrower” and together with the U.S.
Borrower, the “Borrowers”), the GUARANTORS PARTY HERETO (each a “Guarantor” and
collectively, the “Guarantors”, and together with the Borrowers, the “Loan
Parties”), the LENDERS PARTY HERETO (each a “Lender” and collectively, the
“Lenders”) and PNC BANK, NATIONAL ASSOCIATION, in its capacity as administrative
agent for the Lenders (the “Administrative Agent”).

 

RECITALS:

 

WHEREAS, the Loan Parties, the Lenders, the Administrative Agent and PNC Bank,
National Association as swingline lender are parties to that certain Credit
Agreement, dated as of February 21, 2014 (the “Credit Agreement”);

 

WHEREAS, to modify certain provisions of the Credit Agreement, the Loan Parties
have requested that the Required Lenders agree to various amendments as set
forth herein, and the Required Lenders have agreed to amend the Credit Agreement
as hereinafter provided;

 

NOW, THEREFORE, in consideration of the foregoing and intending to be legally
bound, and incorporating the above-defined terms herein, the parties hereto
agree as follows:

 

1.                                      Recitals; Capitalized Terms.  The
foregoing recitals are true and correct and incorporated herein by reference. 
Unless otherwise defined herein, capitalized terms used herein shall have the
meanings given to them in the Credit Agreement.

 

2.                                      Amendments to Credit Agreement.

 

(a)                                 Correction to Definition.  The definition of
“Commitment” set forth in Section 1.01 of the Credit Agreement is hereby amended
by replacing the reference to “Section 2.01” found therein with the correct
reference to “Schedule 2.01.”

 

(b)                                 New Definitions.  The following new
definitions are hereby inserted in Section 1.01 of the Credit Agreement in
alphabetical order:

 

“First Amendment shall mean that certain First Amendment to this Agreement dated
as of the First Amendment Effective Date.”

 

“First Amendment Effective Date shall mean September 5, 2014.”

 

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(c)                                  Net Cash Interest Expense Coverage Ratio. 
Section 6.11 [Net Cash Interest Expense Coverage Ratio] shall be amended and
restated in its entirety as follows:

 

“Section 6.11.                    Net Cash Interest Expense Coverage Ratio.  The
U.S. Borrower will not permit the ratio of (a) EBITDA to (b) Consolidated Net
Cash Interest Expense (for purposes of this Section 6.11, Consolidated Net Cash
Interest Expense shall exclude one-time cash costs to retire debt paid by the
Loan Parties (above the stated principal and accrued interest) in connection
with the early retirement of any of the Senior Notes), in each case for any
period of four consecutive Fiscal Quarters ending on the last day of a Fiscal
Quarter (commencing with the Fiscal Quarter ending September 30, 2014) and
determined as of each such Fiscal Quarter end on a Pro Forma Basis, to be less
than 1.50 to 1.00. ”

 

(d)                                 Net Secured Leverage Ratio.  Section 6.12
[Net Secured Leverage Ratio] shall be amended and restated in its entirety as
follows:

 

“Section 6.12.                    Net Secured Leverage Ratio.  The U.S. Borrower
will not permit the Net Secured Leverage Ratio for any period of four
consecutive Fiscal Quarters ending on the last day of a Fiscal Quarter
(commencing with the Fiscal Quarter ending September 30, 2014) and determined as
of each such Fiscal Quarter end on a Pro Forma Basis to exceed 4.00 to 1.00. ”

 

3.                                      Conditions to Effectiveness.  The
amendments contained in this Amendment shall become effective upon satisfaction
of each of the following conditions being satisfied to the satisfaction of the
Administrative Agent:

 

(a)                                 Execution and Delivery of this Amendment. 
The Loan Parties and the Required Lenders shall have executed and delivered this
Amendment.

 

(b)                                 Consents and Approvals.  No consent,
approval, exemption, order or authorization of, or a registration or filing
with, any Governmental Authority or any other Person is required by any Law or
any agreement in connection with the execution, delivery and carrying out of
this Amendment by any Loan Party other than such consents, approvals,
exemptions, orders or authorizations that have already been obtained.

 

(c)                                  Fees.  The U.S. Borrower shall have paid to
the Administrative Agent for itself and for the account of the Lenders all fees,
costs and expenses payable to the Administrative Agent or any Lender or for
which the Administrative Agent or any Lender is entitled to be reimbursed,
including but not limited to the (i) the fees set forth in that certain Fee
Letter dated August 28, 2014, by and among PNC Capital Markets LLC, the
Administrative Agent, and the Borrower, and (ii) the fees and expenses of the
Administrative Agent’s legal counsel to the extent invoiced at least two
(2) Business Days prior to the date hereof.

 

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4.                                      Miscellaneous.

 

(a)                                 Representations and Warranties.  By its
execution and delivery hereof to the Administrative Agent, each of the Loan
Parties represents and warrants to the Administrative Agent and the Lenders that
(i) such Loan Party has duly authorized, executed and delivered this Amendment
(ii) all representations and warranties of the Loan Parties set forth in the
Credit Agreement are true (or, in the case of any representation and warranty
that is not by its express terms limited by a materiality or “Material Adverse
Effect” exception or qualifier, true in all material respects) on and as of the
date hereof, provided that, to the extent that such representations and
warranties specifically refer to an earlier date, such representations and
warranties are true and correct in all material respects as of such earlier
date, (iii) no Event of Default or Default exists, (iv)  no Material Adverse
Effect shall have occurred with respect to the Borrowers or any of the Loan
Parties since the Closing Date of the Credit Agreement, (v) no default shall
have occurred with respect to any note or credit agreement governing existing
indebtedness of the Borrowers or Guarantors as a result of any of the
transactions contemplated herein, and (vi) there are no actions, suits,
investigations, litigation or governmental proceedings pending or, to the Loans
Parties’ knowledge, threatened against any of the Loan Parties that could
reasonably be expected to result in a Material Adverse Effect or relate to this
Amendment.

 

(b)                                 Full Force and Effect.  All provisions of
the Credit Agreement remain in full force and effect on and after the date
hereof except as expressly amended hereby.  The parties do not amend any
provisions of the Credit Agreement except as expressly amended hereby.

 

(c)                                  Counterparts.  This Amendment may be signed
in counterparts (by facsimile transmission or otherwise) but all of such
counterparts together shall constitute one and the same instrument.

 

(d)                                 Incorporation into Credit Agreement.  This
Amendment shall be incorporated into the Credit Agreement by this reference. 
All representations, warranties, Events of Default and covenants set forth
herein shall be a part of the Credit Agreement as if originally contained
therein.

 

(e)                                  Governing Law.  This Amendment and the
rights and obligations of the parties hereunder shall be governed by, and
construed in accordance with, the laws of the State of New York without regard
to its conflict of laws principles.

 

(f)                                   No Novation.  Except as amended hereby,
all of the terms and conditions of the Credit Agreement and the other Loan
Documents shall remain in full force and effect.  The Borrowers, the Guarantors,
each Lender, and the Administrative Agent acknowledge and agree that this
Amendment is not intended to constitute, nor does it constitute, a novation,
interruption, suspension of continuity, satisfaction, discharge or termination
of the obligations, loans, liabilities, or indebtedness under the Credit
Agreement or the other Loan Documents.

 

[SIGNATURE PAGES FOLLOW]

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

CLOUD PEAK ENERGY RESOURCES LLC

 

 

 

 

 

By:

/s/ Michael Barrett

 

 

Name:

Michael Barrett

 

 

Title:

Executive Vice President and Chief Financial Officer

 

 

 

 

 

CLOUD PEAK ENERGY INC.

 

ANTELOPE COAL LLC

 

ARROWHEAD I LLC

 

ARROWHEAD II LLC

 

ARROWHEAD III LLC

 

BIG METAL COAL CO. LLC

 

CABALLO ROJO LLC

 

CABALLO ROJO HOLDINGS LLC

 

CLOUD PEAK ENERGY SERVICES COMPANY

 

CLOUD PEAK ENERGY FINANCE CORP.

 

CLOUD PEAK ENERGY LOGISTICS LLC

 

CORDERO MINING LLC

 

CORDERO MINING HOLDINGS LLC

 

CORDERO OIL AND GAS LLC

 

KENNECOTT COAL SALES LLC

 

NERCO LLC

 

NERCO COAL LLC

 

NERCO COAL SALES LLC

 

PROSPECT LAND AND DEVELOPMENT LLC

 

RESOURCE DEVELOPMENT LLC

 

SEQUATCHIE VALLEY COAL CORPORATION

 

SPRING CREEK COAL LLC

 

WESTERN MINERALS LLC

 

YOUNGS CREEK HOLDINGS I LLC

 

YOUNGS CREEK HOLDINGS II LLC

 

YOUNGS CREEK MINING COMPANY, LLC

 

 

 

 

 

Each by:

/s/ Michael Barrett

 

 

Name:

Michael Barrett

 

 

Title:

Executive Vice President and Chief Financial Officer

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

PNC BANK, NATIONAL ASSOCIATION, as a Lender and as Administrative Agent and
Swingline Lender

 

 

 

 

 

By:

/s/ James O’Brien

 

 

Name: James O’Brien

 

 

Title: Assistant Vice President

 

 

 

 

 

PNC BANK, NATIONAL ASSOCIATION, as Issuing Bank

 

 

 

 

 

By:

/s/ James O’Brien

 

 

Name: James O’Brien

 

 

Title: Assistant Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

WELLS FARGO BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ Sarah Thomas

 

 

Name:

Sarah Thomas

 

 

Title:

Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

JPMORGAN CHASE BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ Gitanjali Pundir

 

 

Name:

Gitanjali Pundir

 

 

Title:

Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Lender

 

 

 

 

 

By:

/s/ Alain Daoust

 

 

Name:

Alain Daoust

 

 

Title:

Authorized Signatory

 

 

 

 

 

By:

/s/ Michael Spaight

 

 

Name:

Michael Spaight

 

 

Title:

Authorized Signatory

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

GOLDMAN SACHS BANK USA, as a Lender

 

 

 

 

 

By:

/s/ Ashwin Ramakrishna

 

 

Name:

Ashwin Ramakrishna

 

 

Title:

Authorized Signatory

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender

 

 

 

 

 

By:

/s/ Mike McIntyre

 

 

Name: Mike McIntyre

 

 

Title:   Director

 

 

 

 

 

By:

/s/ Aaron Sansone

 

 

Name: Aaron Sansone

 

 

Title:   Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

ROYAL BANK OF CANADA, as a Lender

 

 

 

 

 

By:

/s/ Evans Swann, Jr.

 

 

Name:

Evans Swann, Jr.

 

 

Title:

Authorized Signatory

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

BRANCH BANKING AND TRUST COMPANY

 

 

 

 

 

By:

/s/ Troy Weaver

 

 

Name:

Troy Weaver

 

 

Title:

Senior Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

DEUTSCHE BANK AG NEW YORK

 

 

 

 

 

By:

/s/ Marcus M. Tarkington

 

 

Name: Marcus M. Tarkington

 

 

Title:   Director

 

 

 

 

 

By:

/s/ Lisa Wong

 

 

Name: Lisa Wong

 

 

Title:   Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

BANK OF AMERICA, N.A.

 

 

 

 

 

By:

/s/ Adam H. Fey

 

 

Name: Adam H. Fey

 

 

Title:   Director

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

COMERICA BANK

 

 

 

 

 

By:

/s/ Fatima Arshad

 

 

Name:

Fatima Arshad

 

 

Title:

Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

STIFEL BANK & TRUST

 

 

 

 

 

By:

/s/ Matthew L. Diehl

 

 

Name: Matthew L. Diehl

 

 

Title:   Senior Vice President

 

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[SIGNATURE PAGE TO FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed by their respective authorized officers as of the day and year first
above written.

 

 

CATERPILLAR FINANCIAL SERVICES CORPORATION

 

 

 

 

 

By:

/s/ Eric Haldimann

 

 

Name:

Eric Haldimann

 

 

Title:

Credit & Operations Manager

 

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