Exhibit 10.1
SECOND AMENDMENT
TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
     THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), dated as of April 20, 2011 is among SESI, L.L.C., as Borrower,
SUPERIOR ENERGY SERVICES, INC., as Parent, JPMORGAN CHASE BANK, N.A., as Agent
(the “Agent”), and the Lenders party hereto, who agree as follows:
RECITALS
     A. The Borrower, Parent, Agent and certain of the Lenders have heretofore
executed a Second Amended and Restated Credit Agreement dated as of May 29, 2009
(the “Credit Agreement”).
     B. The Borrower proposes to issue senior unsecured notes due 2019 up to the
aggregate principal amount of $500,000,000 (the “2011 Senior Notes”), with the
intention of redeeming in full the Borrower’s existing 1.5% Senior Exchangeable
Notes due 2026 (the “Senior Exchangeable Notes”) when the latter become subject
to redemption not later than December 30, 2011. The Borrower proposes to use a
portion of the proceeds of the 2011 Senior Notes up to an aggregate of
$400,000,000 initially to repay in full the outstanding principal balance of the
Revolving Loan, and to retain the balance of the proceeds in cash or cash
equivalents until the Senior Exchangeable Notes are redeemable, at which time
the Borrower proposes to use such cash proceeds, other cash available to the
Borrower and/or advances available on the Revolving Loan to redeem the Senior
Exchangeable Notes in full on or before December 30, 2011. The Borrower proposes
to use the proceeds of the 2011 Senior Notes in excess of $400,000,000 for
general company purposes.
     C. In order to consummate the foregoing transaction, the Borrower has
requested modifications of the Credit Agreement in the following respects:
(i) to permit (as additional Funded Indebtedness) the 2011 Senior Notes; and
(ii) for the period from the issuance of the 2011 Senior Notes to and including
December 30, 2011, to exclude from Funded Indebtedness the cash proceeds of the
2011 Senior Notes retained in cash or cash equivalents (after repayment of the
Revolving Loan) for the redemption of the Senior Exchangeable Notes. Funded
Indebtedness shall not be reduced by the amount of any cash proceeds of the 2011
Senior Notes in excess of $400,000,000. The Agent and Lenders are willing to
accept the Borrower’s request on the terms and conditions set forth below.
     D. Capitalized terms used herein, and not otherwise defined herein, shall
have the meanings defined in the Credit Agreement.
     NOW, THEREFORE, in consideration of the mutual covenants and undertakings,
the parties hereby agree as follows:

 

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ARTICLE 1
AMENDMENTS TO THE CREDIT AGREEMENT
     1.1 Section 6.11(a) (vi) (Funded Indebtedness; Rate Management Obligations)
of the Credit Agreement is hereby amended to read as follows:

  (vi)   Funded Indebtedness represented by (x) the 6⅞% Senior Notes up to the
aggregate principal amount of $300,000,000, issued pursuant to the Indenture
relating thereto dated as of May 22, 2006, among the Borrower, the Parent, the
respective Subsidiaries of the Parent party thereto and The Bank of New York
Trust Company, N.A., as trustee, (y) the 1.5% Senior Exchangeable Notes up to
the aggregate principal amount of $400,000,000 due 2026 issued pursuant to the
Indenture relating thereto dated as of December 12, 2006, among the Borrower,
the Parent, the respective Subsidiaries of the Parent party thereto and The Bank
of New York Trust Company, N.A., as trustee, provided that if the Notes
described in clause (z) hereof are issued, such 1.5% Senior Exchangeable Notes
must be redeemed in full on or before December 30, 2011; and (z) the senior
unsecured notes up to the aggregate principal amount of $500,000,000 due 2019
(the “2011 Senior Notes”), to be issued pursuant to an Indenture among the
Borrower, the Parent, their respective Subsidiaries party thereto and The Bank
of New York Trust Mellon Company, N.A., as trustee, provided that the cash
proceeds of the 2011 Senior Notes up to an aggregate of $400,000,000 are
initially used to repay in full the outstanding principal balance of the
Revolving Loan, and the balance of the proceeds are held in cash or cash
equivalents until the Senior Exchangeable Notes are redeemable, at which time
said cash and cash equivalents together with other cash available to the
Borrower and/or advances available on the Revolving Loan shall be used to redeem
the Senior Exchangeable Notes in full on or before December 30, 2011; in each
case, as amended, supplemented, amended and restated or otherwise modified, but
not increased in aggregate amount, from time to time.

     1.2 During the period from the date of the issuance of the 2011 Senior
Notes to and including December 30, 2011, “Funded Indebtedness” shall be reduced
by the cash proceeds of the 2011 Senior Notes (after the initial repayment of
the Revolving Loan in full) retained in cash or cash equivalents for the
redemption of the Senior Exchangeable Notes. Funded Indebtedness shall not be
reduced by the amount of any cash proceeds of the 2011 Notes in excess of
$400,000,000
     1.3 Except as specifically amended hereby, all of the remaining terms and
conditions of the Credit Agreement remain in full force and effect.
     1.4 Notwithstanding the foregoing, this Amendment shall terminate and be of
no further force and effect if the Borrower fails to issue the 2011 Notes on or
prior to June 20, 2011.

 

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ARTICLE 2
CONDITIONS PRECEDENT
     2.1 This Amendment shall be effective upon the Agent’s receipt of the
following, in form and substance satisfactory to the Agent:
     (i) Second Amendment. This Amendment, executed and delivered by the Agent,
the Parent, the Borrower and the Required Lenders.
     (ii) Chief Financial Officer Certificate. A certificate signed by the Chief
Financial Officer of the Parent certifying that (i) no Default or Event of
Default exists under the Credit Agreement; and (ii) that there has been no
Material Adverse Effect relating to the Parent, Borrower and Borrower’s
Subsidiaries occurring since December 31, 2010.
ARTICLE 3
MISCELLANEOUS
     3.1 The Parent and Borrower reaffirm to the Agent and Lenders that the
representations and warranties contained in Article V of the Credit Agreement
were true and correct when made, and are repeated at and as of the date hereof
and are true and correct in all material respects at and as of the date hereof,
except as such representations and warranties relate to matters that are
permitted by the Credit Agreement to be true only as of the Closing Date.
     3.2 This Amendment is a contract, and the replacement Notes will be
contracts, made under and shall be construed in accordance with and governed by
the laws of the United States of America and the State of Louisiana.
     3.3 This Amendment constitutes a Loan Document (as that term is defined in
the Credit Agreement).
     3.4 This Amendment does not constitute a novation of the Credit Agreement
or the Obligations represented by the Credit Agreement, the Notes and the
Collateral Documents.
     3.5 This Amendment may be executed in any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one in
the same instrument.
[Signatures on following pages]

 

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     IN WITNESS WHEREOF, the Borrower, the Agent and the Lenders have executed
this Amendment as of the date first above written.

              BORROWER:   SESI, L.L.C.
 
                By:   Superior Energy Services, Inc.         Member Manager
 
           
 
      By:   /s/ Robert S. Taylor
 
           
 
          Name: Robert S. Taylor
 
          Title: Chief Financial Officer
 
            PARENT:   SUPERIOR ENERGY SERVICES, INC.
 
           
 
  By:   /s/ Robert S. Taylor                   Name: Robert S. Taylor        
Title: Chief Financial Officer

 

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          AGENT, CO-LEAD
ARRANGER AND LENDER: JPMORGAN CHASE BANK, N.A.

      By:           Name:           Title:      

 

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          CO-LEAD ARRANGER AND LENDER: WELLS FARGO BANK, N.A.
      By:           Name:           Title:      

 

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          CO-DOCUMENTATION AGENT
AND LENDER: WHITNEY NATIONAL BANK

      By:           Name:           Title:      

 

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          CO-DOCUMENTATION AGENT
AND LENDER: PNC BANK, NATIONAL ASSOCIATION

      By:           Name:           Title:      

 

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          CO-DOCUMENTATION AGENT
AND LENDER: COMERICA BANK, NA

      By:           Name:           Title:      

 

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          CO-DOCUMENTATION AGENT
AND LENDER: BANK OF AMERICA, N.A.

      By:           Name:           Title:      

 

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          CO-DOCUMENTATION AGENT
AND LENDER: BNP PARIBAS

      By:           Name:           Title:                 By:           Name:  
        Title:      

 

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          LENDER: NATIXIS
      By:           Name:           Title:                 By:           Name:  
        Title:      

 

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          LENDER: CAPITAL ONE, NATIONAL
ASSOCIATION
      By:           Name:           Title:      

 

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          LENDER: HSBC BANK USA, N.A.
      By:           Name:           Title: