Exhibit 10.1
Execution Version
FIRST AMENDMENT
TO
CREDIT AGREEMENT
dated as of July 27, 2011
among
Key Energy Services, Inc.,
as Borrower,
The Guarantors,
JPMorgan Chase Bank, N.A.,
as Administrative Agent,
Bank of America, N.A.,
as Syndication Agent,
Capital One, N.A.,
Wells Fargo Bank, N.A.,
Credit Agricole Corporate and Investment Bank,
and
DnB NOR Bank ASA,
as Co-Documentation Agents,
and
The Lenders Party Hereto

 

 

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FIRST AMENDMENT TO CREDIT AGREEMENT
THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “First Amendment”) dated as of
July 27, 2011, is among Key Energy Services, Inc., a Maryland corporation (the
“Borrower”); each of the undersigned guarantors (the “Guarantors”, and together
with the Borrower, the “Obligors”); JPMorgan Chase Bank, N.A., as administrative
agent (in such capacity, together with its successors in such capacity, the
“Administrative Agent”) for the lenders party to the Credit Agreement referred
to below (collectively, the “Lenders”); and the undersigned Lenders.
R E C I T A L S
A. The Borrower, the Administrative Agent and the Lenders are parties to that
certain Credit Agreement dated as of March 31, 2011 (the “Credit Agreement”),
pursuant to which the Lenders have made certain extensions of credit available
to the Borrower.
B. The Guarantors are parties to that certain Guarantee and Collateral Agreement
dated as of March 31, 2011 made by each of the Grantors (as defined therein) in
favor of the Administrative Agent (the “Guaranty”).
C. The Borrower has requested and the Lenders have agreed to amend certain
provisions of the Credit Agreement.
D. NOW, THEREFORE, 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 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. Unless
otherwise indicated, all references to Sections and Articles in this First
Amendment refer to Sections and Articles of the Credit Agreement. As used
herein, the term “Amended Credit Agreement” means the Credit Agreement, as
amended by this First Amendment.
Section 2.
2.1 Amendment to Section 2.06(d)(ii)(A). Section 2.06(d)(ii)(A) is hereby
amended by replacing the reference to “$500,000,000” therein with
“$650,000,000”.
2.2 Amendments to Section 9.01(d). Section 9.01(d) is hereby amended in its
entirety to read as follows:
“(d) Capitalization Ratio. The Borrower will not, as of the last day of any
fiscal quarter, allow its ratio of Consolidated Total Funded Indebtedness to
Total Capitalization to be more than the percentage specified for such fiscal
quarter as indicated in the table below:

          Fiscal Quarter Ending   Ratio  
June 30, 2011 through March 31, 2012
    50 %
June 30, 2012 and September 30, 2012
    47.5 %
December 31, 2012 and thereafter
    45 %

”

 

 

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2.3 Amendment and restatement of Annex I. Annex I to the Credit Agreement is
hereby amended and restated in its entirety to read as set forth on Annex I
attached hereto.
2.4 Co-Documentation Agents. Credit Agricole Corporate and Investment Bank and
DnB NOR Bank ASA are each hereby added to the Credit Agreement as a
“Co-Documentation Agent”, and each reference to the term “Co-Documentation
Agents” wherever it appears in the Amended Credit Agreement shall refer
collectively to Capital One, N.A., Wells Fargo Bank, N.A., Credit Agricole
Corporate and Investment Bank, and DnB NOR Bank ASA, in such capacities.
Section 3. Conditions Precedent. This First Amendment shall not become effective
until the date on which each of the following conditions is satisfied (or waived
in accordance with Section 12.02 of the Credit Agreement) (the “Effective
Date”):
3.1 The Administrative Agent and the Lenders shall have received all fees and
other amounts due and payable, if any, in connection with this First Amendment
on or prior to the Effective Date.
3.2 The Administrative Agent shall have received from the Majority Lenders, the
Borrower, and each of the other Obligors, counterparts (in such number as may be
requested by the Administrative Agent) of this First Amendment signed on behalf
of such Persons.
3.3 The Administrative Agent shall have received such other documents as the
Administrative Agent or special counsel to the Administrative Agent may
reasonably request.
3.4 No Default shall have occurred and be continuing, after giving effect to the
terms of this First Amendment.
Notwithstanding the foregoing, the amendment and restatement of Annex I to the
Credit Agreement contemplated by Section 2.3 of this First Amendment shall not
become effective until the Commitment Increase Time (as defined below).
Section 4. Miscellaneous.
4.1 Commitment Increase Pursuant to Section 2.06(d).
(a) The Borrower has requested pursuant to Section 2.06(d) of the Amended Credit
Agreement that the aggregate amount of the Commitments be increased to
$550,000,000 (the “Commitment Increase”), effective as of the Effective Date,
immediately after giving effect to the amendments contemplated by this First
Amendment (the “Commitment Increase Time”). In connection with the requested
Commitment Increase, the Borrower, JPMorgan Chase Bank, N.A., Bank of America,
N.A., Wells Fargo Bank, N.A., Capital One, N.A., Royal Bank of Canada, Comerica
Bank, Morgan Stanley Bank, N.A., Credit Suisse AG, Cayman Islands Branch, The
Bank of Nova Scotia, Amegy Bank, Deutsche Bank Trust Company Americas, and
Compass Bank, have each executed and delivered to the Administrative Agent a
Commitment Increase Certificate, and the Borrower, Credit Agricole Corporate and
Investment Bank and DnB NOR Bank ASA, each have executed and delivered to the
Administrative Agent an Additional Lender Certificate, in each case, in
accordance with the provisions of Section 2.06(d) of the Amended Credit
Agreement.

 

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(b) Accordingly, effective as of the Commitment Increase Time: (i) the aggregate
amount of the Commitments shall be increased to $550,000,000; (ii) the
Commitment of each Lender (including each Additional Lender referred to in
clause (iii) of this paragraph) shall, without any further action, be the
Commitment specified for such Lender in the attached Annex I; and (iii) Credit
Agricole Corporate and Investment Bank and DnB NOR Bank ASA are each hereby
added as an Additional Lender with the Commitment specified for it in the
attached Annex I, and each such Additional Lender shall become a party to the
Credit Agreement as a “Lender” and have all of the rights and obligations of a
Lender under the Credit Agreement and the other Loan Documents. Each Lender or
Additional Lender, as the case may be, shall make any payments required to be
made by it pursuant to the last sentence of Section 2.06(d)(iii) on the
Effective Date. Pursuant to Section 2.06(d)(ii)(C) of the Amended Credit
Agreement, if any Eurodollar Borrowings are outstanding as of the Commitment
Increase Time, then the Borrower shall pay any compensation required by
Section 5.02 of the Amended Credit Agreement. The Administrative Agent accepts
the Commitment Increase Certificates and Additional Lender Certificates referred
to above and has recorded the information contained therein in the Register
maintained by the Administrative Agent pursuant to Section 12.04(c) of the
Amended Credit Agreement, as required by Section 2.06(d)(iv) of the Amended
Credit Agreement.
4.2 Confirmation. The provisions of the Credit Agreement, as amended by this
First Amendment, shall remain in full force and effect following the
effectiveness of this First Amendment.
4.3 Ratification and Affirmation; Representations and Warranties. Each Obligor
hereby: (a) acknowledges the terms of this First Amendment; (b) ratifies and
affirms its obligations under, and acknowledges, renews and extends its
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,
except as expressly amended hereby, after giving effect to the amendments
contained herein; (c) agrees that from and after the Effective Date each
reference to the Credit Agreement in the Guaranty and the other Loan Documents
shall be deemed to be a reference to the Credit Agreement, as amended by this
First Amendment; and (d) represents and warrants to the Lenders that as of the
date hereof, after giving effect to the terms of this First Amendment: (i) all
of the representations and warranties contained in each Loan Document to which
it is a party are true and correct in all material respects, unless such
representations and warranties are stated to relate to a specific earlier date,
in which case, such representations and warranties shall continue to be true and
correct in all material respects as of such earlier date and (ii) no Default has
occurred and is continuing.
4.4 Loan Document. This First Amendment is a “Loan Document” as defined and
described in the Credit Agreement and all of the terms and provisions of the
Credit Agreement relating to Loan Documents shall apply hereto.

 

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4.5 Counterparts. This First Amendment may be executed by one or more of the
parties hereto in any number of separate counterparts, and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of this First Amendment by facsimile or email transmission
shall be effective as delivery of a manually executed counterpart hereof.
4.6 NO ORAL AGREEMENT. THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER
LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO ORAL
AGREEMENTS BETWEEN THE PARTIES.
4.7 GOVERNING LAW. THIS FIRST AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE
VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
[SIGNATURES BEGIN NEXT PAGE]

 

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

                  BORROWER:   KEY ENERGY SERVICES, INC.    
 
                    By:   /s/ J. Marshall Dodson                  
 
      Name:   J. Marshall Dodson    
 
      Title:   Vice President and Treasurer    
 
                GUARANTORS:   KEY ENERGY SERVICES, LLC    
 
                    By:   /s/ J. Marshall Dodson                  
 
      Name:   J. Marshall Dodson    
 
      Title:   Vice President and Treasurer    
 
                    KEY ENERGY SERVICES CALIFORNIA, INC.    
 
                    By:   /s/ J. Marshall Dodson                  
 
      Name:   J. Marshall Dodson    
 
      Title:   Vice President and Treasurer    
 
                    KEY ENERGY SERVICES (MEXICO), LLC    
 
                    By:   /s/ J. Marshall Dodson                  
 
      Name:   J. Marshall Dodson    
 
      Title:   Vice President and Treasurer    

Signature Page to First Amendment

 

 

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                  ADMINISTRATIVE AGENT:   JPMORGAN CHASE BANK, N.A., as
Administrative Agent, Issuing Bank and Lender    
 
                    By:   /s/ Robert Traband                  
 
      Name:   Robert Traband    
 
      Title:   Managing Director    

Signature Page to First Amendment

 

 

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                  LENDERS:   BANK OF AMERICA, N.A., as
Syndication Agent and Lender    
 
                    By:   /s/ Gary L. Mingle                  
 
      Name:   Gary L. Mingle    
 
      Title:   Senior Vice-President    

Signature Page to First Amendment

 

 

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            CAPITAL ONE, N.A., as Co-
Documentation Agent and Lender
      By:   /s/ Don Backer         Name:   Don Backer        Title:   Senior
Vice President   

Signature Page to First Amendment

 

 

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            WELLS FARGO BANK, N.A., as Co-
Documentation Agent and Lender
      By:   /s/ Sarah Sandercock         Name:   Sarah Sandercock       
Title:   Director   

Signature Page to First Amendment

 

 

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            CREDIT AGRICOLE CORPORATE AND
INVESTMENT BANK, as Co-
Documentation Agent and Lender
      By:   /s/ David Gurghigian         Name:   David Gurghigian       
Title:   Managing Director            By:   /s/ Michael Willis         Name:  
Michael Willis        Title:   Managing Director   

Signature Page to First Amendment

 

 

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            DNB NOR BANK ASA, as Co-
Documentation Agent and Lender
      By:   /s/ Kristie Li         Name:   Kristie Li        Title:   Vice
President            By:   /s/ Philip F. Kurpiewski         Name:   Philip F.
Kurpiewski        Title:   Senior Vice President   

Signature Page to First Amendment

 

 

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            COMERICA BANK, as Lender
      By:   /s/ Cyd Dillahunty         Name:   Cyd Dillahunty        Title:  
Vice President — Texas Division   

Signature Page to First Amendment

 

 

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            CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as Lender
      By:   /s/ Nupur Kumar         Name:   Nupur Kumar        Title:   Vice
President            By:   /s/ Rahul Parmar         Name:   Rahul Parmar       
Title:   Associate   

Signature Page to First Amendment

 

 

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            MORGAN STANLEY BANK, N.A., as Lender
      By:   /s/ Sherrese Clarke         Name:   Sherrese Clarke        Title:  
Authorized Signatory   

Signature Page to First Amendment

 

 

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            ROYAL BANK OF CANADA, as Lender
      By:   /s/ Jay T. Sartain         Name:   Jay T. Sartain        Title:  
Authorized Signatory   

Signature Page to First Amendment

 

 

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            THE BANK OF NOVA SCOTIA, as Lender
      By:   /s/ John Frazell         Name:   John Frazell        Title:  
Director   

Signature Page to First Amendment

 

 

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            AMEGY BANK, as Lender
      By:   /s/ G. Scott Collins         Name:   G. Scott Collins       Title:  
Vice President   

Signature Page to First Amendment

 

 

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            COMPASS BANK, as Lender
      By:   /s/ Stuart Murray         Name:   Stuart Murray        Title:  
Senior Vice President   

Signature Page to First Amendment

 

 

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            DEUTSCHE BANK TRUST COMPANY AMERICAS, as Lender
      By:   /s/ Michael Getz         Name:   Michael Getz        Title:   Vice
President            By:   /s/ Erin Morrissey         Name:   Erin Morrissey   
    Title:   Director   

Signature Page to First Amendment

 

 

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ANNEX I
LIST OF COMMITMENTS

                  Name of Lender   Commitment     Applicable Percentage  
JPMorgan Chase Bank, N.A.
  $ 55,500,000.00       10.09 %
Bank of America, N.A.
  $ 50,000,000.00       9.09 %
Wells Fargo Bank, N.A.
  $ 45,000,000.00       8.18 %
Capital One, N.A.
  $ 45,000,000.00       8.18 %
Credit Agricole Corporate and Investment Bank
  $ 45,000,000.00       8.18 %
DnB NOR Bank ASA
  $ 45,000,000.00       8.18 %
Royal Bank of Canada
  $ 37,500,000.00       6.82 %
Comerica Bank
  $ 37,500,000.00       6.82 %
Morgan Stanley Bank, N.A.
  $ 37,500,000.00       6.82 %
Credit Suisse AG, Cayman Islands Branch
  $ 37,500,000.00       6.82 %
The Bank of Nova Scotia
  $ 37,500,000.00       6.82 %
Amegy Bank
  $ 20,000,000.00       3.64 %
Deutsche Bank Trust Company Americas
  $ 20,000,000.00       3.64 %
Compass Bank
  $ 20,000,000.00       3.64 %
HSBC Bank USA, N.A.
  $ 17,000,000.00       3.09 %
 
               
TOTAL
  $ 550,000,000.00       100.0 %

Annex I to First Amendment