Exhibit 10.1

Execution Version

 

THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

dated as of May 4, 2020

among

MONTAGE RESOURCES CORPORATION,
as Borrower,

BANK OF MONTREAL,
as Administrative Agent,

and

the Lenders Party Hereto

 

 

 

 

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THIRD AMENDMENT TO
THIRD AMENDED AND RESTATED CREDIT AGREEMENT

THIS THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) dated as of May 4, 2020, is among MONTAGE RESOURCES CORPORATION, a
Delaware corporation, the Lenders party hereto, and BANK OF MONTREAL, as
Administrative Agent.

R E C I T A L S

A.

The Borrower, the Administrative Agent and the Lenders from time to time parties
thereto are parties to that certain Third Amended and Restated Credit Agreement
dated as of February 28, 2019, (as amended by that certain First Amendment to
Third Amended and Restated Credit Agreement, dated as of September 19, 2019, as
amended by that certain Second Amendment to Third Amended and Restated Credit
Agreement, dated as of November 11, 2019 and as the same may be further amended,
restated, amended and restated, supplemented or modified from time to time, the
“Credit Agreement”), pursuant to which the Lenders have made certain credit
available to and on behalf of the Borrower.

B.

The Borrower has requested that the Administrative Agent and the Lenders amend,
and the Administrative Agent and the Lenders party hereto have agreed to amend,
the Credit Agreement as herein set forth.

C.

Section 2.07 provides that the Borrowing Base shall be redetermined from time to
time pursuant to Scheduled Redeterminations.

D.

Now, therefore, to induce the Administrative Agent and the Lenders to enter into
this Amendment and in consideration of the premises and the mutual covenants
herein contained, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, which include
the Required Lenders, agree as follows:

Section 1.Defined Terms.  Each capitalized term used herein but not otherwise
defined herein has the meaning given such term in the Credit Agreement, as
amended by this Amendment.  Unless otherwise indicated, all annex, article and
section references in this Amendment refer to annexes, articles or sections of
the Credit Agreement, as applicable.

Section 2.Amendments to the Credit Agreement.

(a)Amendment to Section 1.02.  Section 1.02 is hereby amended as follows:

(i)The following defined term is amended and restated to read in its entirety as
follows:

“Applicable Margin” means, for any day, with respect to any ABR Loan or
Eurodollar Loan, or with respect to the Commitment Fee Rate, as the case may be,
the rate per annum set forth in the Borrowing Base Utilization Grid below based
upon the Borrowing Base Utilization Percentage then in effect:

Borrowing Base Utilization Grid

Borrowing Base Utilization Percentage

< 25%

> 25% < 50%

> 50% < 75%

> 75% < 90%

> 90%

Eurodollar Loans

2.000%

2.250%

2.500%

2.750%

3.000%

ABR Loans

1.000%

1.250%

1.500%

1.750%

2.000%

Commitment Fee Rate

0.375%

0.375%

0.500%

0.500%

0.500%

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Each change in the Applicable Margin shall apply during the period commencing on
the effective date of such change and ending on the date immediately preceding
the effective date of the next such change; provided that if at any time the
Borrower fails to deliver a Reserve Report pursuant to Section 8.12(a), then the
“Applicable Margin” means the rate per annum set forth on the grid when the
Borrowing Base Utilization Percentage is at its highest level until such Reserve
Report is delivered.

 

(ii)The following defined terms are added in appropriate alphabetical order to
read in their entirety as follows:

“Available Cash” means, at any time, the aggregate amount of (a) cash and (b)
Investments described in Section 9.05(c), (d), (e), (f), (g), and (h), in each
case held by the Borrower and its Restricted Subsidiaries and excluding (i) Cash
Collateral that is Cash Collateralizing obligations under Section 2.08 or
Section 2.09, (ii) any outstanding checks and electronic funds transfers, (iii)
any cash set aside to pay royalty obligations, working interest obligations,
production payments, suspense payments and severance taxes of the Borrower or
any Restricted Subsidiary then due and owing to third parties and for which the
Borrower or such Restricted Subsidiary has issued checks or has initiated
electronic funds transfers (or will issue checks or will initiate electronic
funds transfers within three (3) Business Days in order to make such payments)
and (iv) any cash set aside to pay payroll, payroll taxes, other taxes, employee
wage and benefit payments and trust and fiduciary obligations of the Borrower or
any Restricted Subsidiary then due and owing and for which the Borrower or such
Restricted Subsidiary has issued checks or has initiated electronic funds
transfers (or will issue checks or will initiate electronic funds transfers
within three (3) Business Days in order to make such payments).

 

“Required Prepayment Amount” has the meaning assigned to such term in Section
3.04(c)(v)(B).

(b)Amendments to Section 3.04(c).  Section 3.04(c) is hereby amended as follows:

(i)Section 3.04(c)(v) is relettered as Section 3.04(vi).

(ii)Section 3.04(c)(vi) is relettered as Section 3.04(vii).

(iii)A new Section 3.04(c)(v) is added to read in its entirety as follows:

(v)If, at the end of any Business Day, (A) there is Revolving Credit Exposure,
(B) Available Cash exceeds $40,000,000 (such excess, the “Required Prepayment
Amount”) and (C) Available Cash exceeded $40,000,000 at the end of each of the
five (5) prior consecutive Business Days, then the Borrower shall, no later than
the second Business Day thereafter, (I) prepay the Borrowings in an aggregate
principal amount equal to the lesser of the Required Prepayment Amount and the
amount of Borrowings then outstanding and (II) if a Default then exists and any
Revolving Credit Exposure remains after prepaying all of the Borrowings as a
result of an LC Exposure, pay to the Administrative Agent on behalf of the
Lenders an amount equal to the remaining portion of the Required Prepayment
Amount to be held as Cash Collateral as provided in Section 2.08(j), in each
case to the extent any such Required Prepayment Amount remains on the date such
prepayment is required to be made.

(c)Amendments to Section 6.02.  Section 6.02 is hereby amended as follows:

(i)Section 6.02(c) is relettered as Section 6.02(d).

(ii)A new Section 6.02(c) is added to read in its entirety as follows:

 

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(c)At the time of and immediately after giving effect to such Borrowing or the
issuance, amendment, renewal or extension of such Letter of Credit, as
applicable, Available Cash does not exceed $40,000,000.

 

(iii)The phrase “Section 6.02(a) and (b)” in the last sentence at the end of
such Section 6.02 is replaced with the phrase “Section 6.02(a), (b) and (c)”.

Section 3.Redetermination of the Borrowing Base.  Pursuant to Section 2.07, the
Administrative Agent and the Required Lenders have determined that the Borrowing
Base shall be decreased to $475,000,000, which redetermination is effective as
of the Amendment Effective Date.  From and after the Amendment Effective Date,
such amount shall remain the Borrowing Base until otherwise redetermined or
adjusted in accordance with the Credit Agreement.  This Amendment constitutes
the New Borrowing Base Notice and the redetermination of the Borrowing Base set
forth herein constitutes the April 1, 2020 Scheduled Redetermination. The
Borrower hereby confirms receipt of the New Borrowing Base Notice pursuant to
Section 2.07(d).

Section 4.Conditions Precedent.  This Amendment shall become effective on the
date when each of the following conditions is satisfied (or waived in accordance
with Section 12.02):

(a)The Administrative Agent shall have received from Lenders constituting the
Required Lenders, the Administrative Agent, the Borrower and each Guarantor
counterparts (in such number as may be reasonably requested by the
Administrative Agent) of this Amendment signed on behalf of such Person.

(b)The Borrower shall have paid to the Administrative Agent all fees and other
amounts agreed in writing and due and payable on or prior to the Amendment
Effective Date, including, to the extent invoiced, reimbursement or payment of
all out-of-pocket expenses required to be reimbursed or paid by the Borrower
under the Credit Agreement.

(c)The Administrative Agent shall have received duly executed mortgages or
amendments to existing mortgages (in such number as may be requested by the
Administrative Agent) such that the Administrative Agent shall be satisfied that
such Security Instruments create first priority, perfected Liens (subject only
to Excepted Liens identified in clauses (a) to (d), (f), (i) and (j) of the
definition thereof, but subject to the provisos at the end of such definition)
on at least 85% of the total value of the Proved Reserves of the Borrower and
its Restricted Subsidiaries evaluated in the most recently delivered Reserve
Report.

(d)The Administrative Agent shall have received title information as the
Administrative Agent may require satisfactory to the Administrative Agent
setting forth the status of title to at least 85% of the value of the Proved
Reserves of the Borrower and its Restricted Subsidiaries evaluated in the most
recently delivered Reserve Report.

(e)Both before and immediately after giving effect to this Amendment, no
Default, Event of Default or Borrowing Base Deficiency shall have occurred and
be continuing.  

Section 5.Miscellaneous.

(a)Confirmation.  The provisions of the Credit Agreement, as amended by this
Amendment, remain in full force and effect following the effectiveness of this
Amendment. Neither the execution by the Administrative Agent or the Lenders of
this Amendment, nor any other act or omission by the Administrative Agent or the
Lenders or their respective officers in connection herewith, shall be deemed a
waiver by the Administrative Agent or the Lenders of any defaults which may
exist or which may

 

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occur in the future under the Credit Agreement and/or the other Loan Documents,
or any future defaults of the same provisions waived or amended hereunder
(collectively “Violations”).  Similarly, nothing contained in this letter shall
directly or indirectly in any way whatsoever either: (i) impair, prejudice or
otherwise adversely affect the Administrative Agent’s or any of the Lenders’
right at any time to exercise any right, privilege or remedy in connection with
the Loan Documents with respect to any Violations, (ii) amend or alter any
provision of the Credit Agreement, the other Loan Documents, or any other
contract or instrument, except as expressly set forth herein, or (iii)
constitute any course of dealing or other basis for altering any obligation of
the Borrower or any right, privilege or remedy of the Administrative Agent or
the Lenders under the Credit Agreement, the other Loan Documents, or any other
contract or instrument.  Nothing in this letter shall be construed to be a
waiver by the Administrative Agent or the Lenders of any Violations.

(b)Ratification and Affirmation; Representations and Warranties.  Each of the
Borrower and each Guarantor hereby:

(i)acknowledges the terms of this Amendment,

(ii)ratifies and affirms their respective obligations, and acknowledges their
respective continued liability, under each Loan Document to which it is a party
and agrees that each Loan Document to which it is a party remains in full force
and effect as expressly amended hereby, and

(iii)represents and warrants to the Lenders that as of the date hereof,
immediately after giving effect to the terms of this Amendment, all of the
Borrower’s and such Guarantor’s, as applicable, respective representations and
warranties contained in each Loan Document to which it is a party are true and
correct in all material respects, except that (A) to the extent any such
representations and warranties are expressly limited to an earlier date, as of
the date hereof, after giving effect to the terms of this Amendment, such
representation and warranty continues to be true and correct in all material
respects as of such specified earlier date and (B) to the extent that any such
representation and warranty is qualified by materiality, such representation and
warranty (as so qualified) is true and correct in all respects.

(c)Counterparts.  This Amendment may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract.  Delivery of an executed counterpart of a signature page to
this Amendment by facsimile transmission or other electronic transmission (e.g.,
.pdf) shall be effective as delivery of a manually executed counterpart hereof.

(d)NO ORAL AGREEMENT.  THIS AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO AND THERETO AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

(e)GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

(f)Payment of Expenses.  In accordance with Section 12.03, the Borrower agrees
to pay or reimburse the Administrative Agent for all of its reasonable
out-of-pocket expenses incurred in connection with this Amendment, any other
documents prepared in connection herewith and the transactions contemplated
hereby, including, without limitation, the reasonable fees, charges and
disbursements of one counsel to the Administrative Agent.

 

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(g)Severability.  Any provision of this Amendment held to be invalid, illegal or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such invalidity, illegality or unenforceability without
affecting the validity, legality and enforceability of the remaining provisions
hereof or thereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

(h)Successors and Assigns.  The provisions of this Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns.

(i)Jurisdiction; Venue; Consent to Service of Process; Waiver of Jury
Trial.  The express terms of Section 12.09(b), (c) and (d) are hereby
incorporated by reference, mutatis mutandis.

(j)Loan Document.  This Amendment is a Loan Document.

[Signature Pages Follow]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed as of the date first written above.

BORROWER

MONTAGE RESOURCES CORPORATION

 

 

 

 

 

By:/s/ Michael L. Hodges

 

Name:Michael L. Hodges

 

Title:Executive Vice President and Chief Financial Officer

 

 

 

 

GUARANTORS:

ECLIPSE RESOURCES I, LP

 

ECLIPSE GP, LLC

 

ECLIPSE RESOURCES – OHIO, LLC

 

ECLIPSE RESOURCES OPERATING, LLC

 

BUCKEYE MINERALS & ROYALTIES, LLC

 

ECLIPSE RESOURCES MIDSTREAM, LP

 

ECLIPSE RESOURCES MARKETING, LP

 

ECLIPSE RESOURCES–PA, LP

 

BLUE RIDGE MOUNTAIN RESOURCES, INC.

 

BAKKEN HUNTER, LLC

 

TRIAD HUNTER, LLC

 

HUNTER REAL ESTATE, LLC

 

VIKING INTERNATIONAL RESOURCES CO., INC.

 

 

 

 

 

By:/s/ Michael L. Hodges

 

Name:Michael L. Hodges

 

Title:Executive Vice President and Chief Financial Officer

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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BANK OF MONTREAL, as Administrative Agent

 

 

 

 

 

By:/s/ Kevin Utsey

 

Name:Kevin Utsey

 

Title:Managing Director

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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BMO HARRIS FINANCING, INC., as a Lender

 

 

 

 

 

By:/s/ Kevin Utsey

 

Name:Kevin Utsey

 

Title:Managing Director

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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KEYBANK NATIONAL ASSOCIATION, as a Lender

 

 

 

 

 

By:/s/ George E. McKean

 

Name:George E. McKean

 

Title:Senior Vice President

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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BARCLAYS BANK PLC, as a Lender

 

 

 

 

 

By:/s/ Sydney G. Dennis

 

Name:Sydney G. Dennis

 

Title:Director

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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CITIBANK, N.A., as a Lender

 

 

 

 

 

By:/s/ Phil Ballard

 

Name:Phil Ballard

 

Title:Vice President

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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CITIZENS BANK, N.A., as a Lender

 

 

 

 

 

By:/s/ David Baron

 

Name:David Baron

 

Title:Vice President

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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ROYAL BANK OF CANADA, as a Lender

 

 

 

 

 

By:/s/ Don J. McKinnerney

 

Name:Don J. McKinnerney

 

Title:Authorized Signatory

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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CIT BANK, N.A., as a Lender

 

 

 

 

 

By:/s/ John Feeley

 

Name:John Feeley

 

Title:Director

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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TRUIST BANK, formerly Branch Banking & Trust, as a Lender

 

 

 

 

 

By:/s/ Benjamin L. Brown

 

Name:Benjamin L. Brown

 

Title:Director

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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EAST WEST BANK, as a Lender

 

 

 

 

 

By:/s/ Kaylan Hopson

 

Name:Kaylan Hopson

 

Title:First Vice President

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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

 

 

 

 

 

By:/s/ Max Gilbert

 

Name:Max Gilbert

 

Title:Vice President

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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BANK OF AMERICA, N.A., as a Lender

 

 

 

 

 

By:/s/ Greg M. Hall

 

Name:Greg M. Hall

 

Title:Vice President

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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GOLDMAN SACHS BANK USA, as a Lender

 

 

 

 

 

By:/s/ Jamie Minieri

 

Name:Jamie Minieri

 

Title:Authorized Signatory

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement

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BP ENERGY COMPANY, as a Lender

 

 

 

 

 

By:/s/ Mark A. Galicia

 

Name:Mark A. Galicia

 

Title:Attorney-In-Fact

 

Signature Page
Third Amendment to Third Amended and Restated Credit Agreement