Exhibit 10.1

 

 

FIFTH AMENDMENT

 

TO

 

SENIOR REVOLVING CREDIT AGREEMENT

 

DATED AS OF JUNE 11, 2013

 

AMONG

 

HALCÓN RESOURCES CORPORATION,
AS BORROWER,

 

THE GUARANTORS,

 

JPMORGAN CHASE BANK, N.A.,
AS ADMINISTRATIVE AGENT,

 

WELLS FARGO BANK, N.A.
AS SYNDICATION AGENT,

 

BANK OF MONTREAL,
AS DOCUMENTATION AGENT,

 

AND

 

THE LENDERS PARTY HERETO

 

 

 

SOLE LEAD ARRANGER

 

 J. P. MORGAN SECURITIES LLC

 

JOINT BOOKRUNNERS

 

J. P. MORGAN SECURITIES LLC AND WELLS FARGO SECURITIES, LLC

 

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FIFTH AMENDMENT
TO SENIOR REVOLVING CREDIT AGREEMENT

 

THIS FIFTH AMENDMENT TO SENIOR REVOLVING CREDIT AGREEMENT (this “Fifth
Amendment”) dated as of June 11, 2013 is among HALCÓN RESOURCES CORPORATION, a
corporation duly formed and existing under the laws of the State of Delaware
(the “Borrower”), each of the undersigned guarantors (the “Guarantors”, and
together with the Borrower, the “Obligors”), each of the undersigned lenders
party to the Credit Agreement referred to below, JPMORGAN CHASE BANK, N.A., as
administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the “Administrative Agent”), Wells Fargo Bank,
N.A., as syndication agent for the Lenders and Bank of Montreal, as
documentation agent for the Lenders.

 

R E C I T A L S

 

A.                                    The Borrower, the Administrative Agent,
the Lenders and the other Agents party thereto, are parties to that certain
Senior Revolving Credit Agreement dated as of February 8, 2012 (as amended by
the First Amendment dated July 31, 2012, the Second Amendment dated January 25,
2013, the Third Amendment dated April 26, 2013, the Fourth Amendment dated
May 8, 2013, and as may be further amended, restated, modified or supplemented,
the “Credit Agreement”), pursuant to which the Lenders have made certain credit
and other financial accommodations available to and on behalf of the Borrower
and its Subsidiaries.

 

B.                                    The Borrower has requested and the
Administrative Agent and the Majority Lenders have agreed (i) to amend certain
provisions of the Credit Agreement and (ii) to waive certain restrictions of the
Credit Agreement.

 

C.                                    NOW, THEREFORE, to induce the
Administrative Agent and the Lenders to enter into this Fifth 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 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 Fifth Amendment. 
Unless otherwise indicated, all section references in this Fifth Amendment refer
to sections of the Credit Agreement.

 

Section 2.                                           Amendment to Credit
Agreement.  Section 9.04(a) of the Credit Agreement is amended, effective as of
the Fifth Amendment Effective Date, by deleting the word “and” immediately prior
to clause (v) and inserting at the end of such Section the following:  “, and
(vi) the Borrower may (a) declare and pay in respect of preferred Equity
Interests (which are not Disqualified Capital Stock) regularly scheduled
dividends in cash or additional Equity Interests (which are not Disqualified
Capital Stock) as and when the same accrue and are payable at the stated
dividend rate, (b) issue Equity Interests (which are not Disqualified Capital
Stock) in connection with a conversion of such preferred Equity Interests into
other Equity Interests, and (c) make cash payments in lieu of fractional shares
in connection with any such conversion of preferred Equity Interests”.

 

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Section 3.                                           Waiver.  The Borrower has
informed the Administrative Agent of a potential violation of the requirements
of Section 9.01(b) of the Credit Agreement with regard to the Borrower’s Current
Ratio as of the last day of the fiscal quarter ending June 30, 2013.  The
Borrower has requested, and the Majority Lenders hereby consent to a one time
waiver of the restrictions of Section 9.01(b) of the Credit Agreement with
regard to the Borrower’s Current Ratio as of the last day of the fiscal quarter
ending June 30, 2013.

 

Neither the execution by the Administrative Agent or the Lenders of this Fifth
Amendment, nor any other act or omission by the Administrative Agent or the
Lenders or their officers in connection herewith, shall be deemed a waiver by
the Administrative Agent or the Lenders of any other defaults which may exist or
which may occur in the future under the Credit Agreement and/or the other Loan
Documents, or any future defaults of the same provision waived hereunder
(collectively “Other Violations”).  Similarly, nothing contained in this Fifth
Amendment shall directly or indirectly in any way whatsoever either: (i) impair,
prejudice or otherwise adversely affect the Administrative Agent’s or the
Lenders’ right at any time to exercise any right, privilege or remedy in
connection with the Loan Documents with respect to any Other Violations, or
(ii) except as expressly provided for herein, (a) amend or alter any provision
of the Credit Agreement, the other Loan Documents, or any other contract or
instrument or (b) 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 Fifth Amendment
shall be construed to be a consent by the Administrative Agent or the Lenders to
any Other Violations.

 

Section 4.                                           Conditions Precedent.  This
Fifth Amendment shall become effective on the date when the Administrative Agent
shall have received a counterpart of this Fifth Amendment signed by the
Borrower, the Lenders constituting the Majority Lenders and each of the
following conditions is satisfied (or waived in accordance with Section 12.02 of
the Credit Agreement) (such date, the “Fifth Amendment Effective Date”):

 

At the time of and immediately after giving effect to this Fifth Amendment,
(i) no Default or Event of Default shall have occurred and be continuing and
(ii) no event or events shall have occurred which individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect.

 

The Administrative Agent is hereby authorized and directed to declare this Fifth
Amendment to be effective when it has received documents confirming or
certifying, to the satisfaction of the Administrative Agent, compliance with the
conditions set forth in this Section 4 or the waiver of such conditions as
permitted in Section 12.02 of the Credit Agreement. Such declaration shall be
final, conclusive and binding upon all parties to the Credit Agreement for all
purposes.

 

Section 5.                                           Miscellaneous.

 

5.1                               Confirmation.  The provisions of the Credit
Agreement, as amended by this Fifth Amendment, shall remain in full force and
effect following the effectiveness of this Fifth Amendment.

 

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5.2                               Ratification and Affirmation; Representations
and Warranties.  Each Obligor hereby (a) acknowledges the terms of this Fifth
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, and (c) represents
and warrants to the Lenders that on and as of the date hereof, and immediately
after giving effect to the terms of this Fifth 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 (except those which have a
materiality qualifier, which shall be true and correct as so qualified), except
to the extent any such representations and warranties are expressly limited to
an earlier date, in which case, such representations and warranties shall
continue to be true and correct as of such specified earlier date; (ii) no
Default or Event of Default has occurred and is continuing and (iii) no event or
events have occurred which individually or in the aggregate could reasonably be
expected to have a Material Adverse Effect.

 

5.3                               Loan Document.  This Fifth Amendment is a Loan
Document.

 

5.4                               Counterparts.  This Fifth 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 Fifth Amendment by
facsimile or electronic transmission in portable document format (.pdf) shall be
effective as delivery of a manually executed counterpart hereof.

 

5.5                               NO ORAL AGREEMENT.  THIS FIFTH AMENDMENT, THE
CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH
AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN 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.

 

5.6                               GOVERNING LAW.  THIS FIFTH AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

5.7                               Severability.  Any provision of this Fifth
Amendment which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

 

5.8                               Successors and Assigns.  This Fifth Amendment
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

[SIGNATURES BEGIN NEXT PAGE]

 

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

 

BORROWER:

HALCÓN RESOURCES CORPORATION

 

 

 

By:

/s/ Mark J. Mize 

 

 

Name:

Mark J. Mize

 

 

Title:

Executive Vice President, Chief Financial Officer and Treasurer

 

 

 

 

 

GUARANTORS:

HALCÓN HOLDINGS, INC.

 

HALCÓN RESOURCES OPERATING, INC.

 

HALCÓN ENERGY PROPERTIES, INC.

 

HALCÓN ENERGY HOLDINGS, LLC

 

HALCÓN GULF STATES, LLC

 

HALCÓN OPERATING CO., INC.

 

HRC ENERGY RESOURCES (WV), INC.

 

HRC ENERGY LOUISIANA, LLC

 

HRC PRODUCTION COMPANY

 

HALCÓN FIELD SERVICES, LLC

 

HALCÓN LOUISIANA OPERATING, L.P.

 

HRC ENERGY, LLC

 

HRC OPERATING, LLC

 

SOUTHERN BAY ENERGY, LLC

 

HK ENERGY OPERATING, LLC

 

HK LOUISIANA OPERATING, LLC

 

HK OIL & GAS, LLC

 

HALCÓN WILLISTON I, LLC

 

HALCÓN WILLISTON II, LLC

 

 

 

 

 

By:

/s/ Mark J. Mize

 

 

Name:

Mark J. Mize

 

 

Title:

Executive Vice President, Chief Financial Officer and Treasurer, for and on
behalf of each of the foregoing Guarantors

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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ADMINISTRATIVE AGENT AND LENDER:

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and Lender

 

 

 

By:

/s/ Michael A. Kamauf

 

 

Name: Michael A. Kamauf

 

 

Title: Authorized Officer

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

WELLS FARGO BANK, N.A.,

 

as Lender

 

 

 

By:

/s/ Todd Fogle

 

 

Name: Todd Fogle

 

 

Title: Vice President

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

BMO HARRIS FINANCING, INC.,

 

as Lender

 

 

 

By:

/s/ James V. Ducote

 

 

Name: James V. Ducote

 

 

Title: Director

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

BARCLAYS BANK PLC,

 

as Lender

 

 

 

By:

/s/ Sreedhar R. Kona

 

 

Name:

Sreedhar R. Kona

 

 

Title:

Vice President

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

SUNTRUST BANK,

 

as Lender

 

 

 

By:

/s/ Shannon Juhan

 

 

Name:

Shannon Juhan

 

 

Title:

Vice President

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

CAPITAL ONE, NATIONAL ASSOCIATION,

 

as Lender

 

 

 

By:

/s/ Victor Ponce de León

 

 

Name:

Victor Ponce de León

 

 

Title:

Vice President

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

GOLDMAN SACHS BANK USA,

 

as Lender

 

 

 

By:

/s/ Michelle Latzoni

 

 

Name:

Michelle Latzoni

 

 

Title:

Authorized Signatory

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

ROYAL BANK OF CANADA,

 

as Lender

 

 

 

By:

/s/ Jay t. Sartain

 

 

Name:

Jay t. Sartain

 

 

Title:

Authorized Signatory

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

BANK OF AMERICA, N.A.,

 

as Lender

 

 

 

By:

/s/ Adam H. Fey

 

 

Name:

Adam H. Fey

 

 

Title:

Director

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

THE ROYAL BANK OF SCOTLAND PLC,

 

as Lender

 

 

 

By:

/s/ Sanjay Remond

 

 

Name:

Sanjay Remond

 

 

Title:

Director

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

 

as Lender

 

 

 

By:

/s/ Vipul Dhadda

 

 

Name:

Vipul Dhadda

 

 

Title:

Authorized Signatory

 

 

 

 

 

By:

/s/ Michael Spaight

 

 

Name:

Michael Spaight

 

 

Title:

Authorized Signatory

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,

 

as Lender

 

 

 

By:

/s/ Sharada Manne

 

 

Name:

Sharada Manne

 

 

Title:

Managing Director

 

 

 

By:

/s/ David Gurghigian

 

 

Name:

David Gurghigian

 

 

Title:

Managing Director

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

NATIXIS,

 

as Lender

 

 

 

By:

/s/ Timothy L. Polvado

 

 

Name:

Timothy L. Polvado

 

 

Title:

Managing Director

 

 

 

By:

/s/ Stuart Murray

 

 

Name:

Stuart Murray

 

 

Title:

Managing Director

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

ING CAPITAL LLC,

 

as Lender

 

 

 

By:

/s/ Juli Bieser

 

 

Name:

Juli Bieser

 

 

Title:

Director

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

COMERICA BANK,

 

as Lender

 

 

 

By:

/s/ Brenton Bellany

 

 

Name:

Brenton Bellany

 

 

Title:

Assistant Vice President

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

DEUTSCHE BANK TRUST COMPANY OF AMERICAS,

 

as Lender

 

 

 

By:

/s/ Marcus M. Tarkington

 

 

Name:

Marcus M. Tarkington

 

 

Title:

Director

 

 

 

By:

/s/ Michael Getz

 

 

Name:

Michael Getz

 

 

Title:

Vice President

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

THE BANK OF NOVA SCOTIA,

 

as Lender

 

 

 

By:

/s/ Mark Sparrow

 

 

Name:

Mark Sparrow

 

 

Title:

Director

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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LENDER:

KEYBANK NATIONAL ASSOCIATION

 

as Lender

 

 

 

By:

/s/ Joseph Scott

 

 

Name:

Joseph Scott

 

 

Title:

Senior Vice President

 

SIGNATURE PAGE — FIFTH AMENDMENT

 

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