Exhibit 10.1

 

 

 

FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

dated as of October 20, 2014,

among

RICE ENERGY INC.,

as Borrower,

The Guarantors Party Hereto,

WELLS FARGO BANK, N.A.,

as Administrative Agent,

and

The Lenders Party Hereto

WELLS FARGO SECURITIES, LLC,

as Sole Lead Arranger and Sole Bookrunner

 

 

 

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FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

This FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “First
Amendment”), dated as of October 20, 2014 (the “First Amendment Effective
Date”), is among RICE ENERGY INC., a Delaware corporation (the “Borrower”); each
of the undersigned guarantors (the “Guarantors”, and together with the Borrower,
the “Loan Parties”); each of the Lenders that is a signatory hereto; and WELLS
FARGO BANK, N.A., as administrative agent for the Lenders (in such capacity,
together with its successors in such capacity, the “Administrative Agent”).

Recitals

A. The Borrower, the Administrative Agent and the Lenders are parties to that
certain Third Amended and Restated Credit Agreement dated as of April 10, 2014
(as amended prior to the date hereof, the “Credit Agreement”), pursuant to which
the Lenders have, subject to the terms and conditions set forth therein, made
certain credit available to and on behalf of the Borrower.

B. The parties hereto desire to amend certain terms of the Credit Agreement as
set forth herein and to increase the Borrowing Base from $385,000,000 to
$550,000,000, in each case, to be effective as of the First Amendment Effective
Date.

C. The Borrower has requested that PNC Bank, National Association, SunTrust
Bank, Capital One, National Association, and Amegy Bank National Association
(each, a “New Lender” and, collectively, the “New Lenders”) become Lenders under
the Credit Agreement with a Maximum Credit Amount in the amount as shown on
Annex I to the Credit Agreement (as amended hereby).

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 which is defined in the Credit
Agreement, but which is not defined in this First Amendment, shall have the
meaning ascribed such term in the Credit Agreement, as amended hereby. Unless
otherwise indicated, all section references in this First Amendment refer to the
Credit Agreement.

Section 2. Amendments. In reliance on the representations, warranties, covenants
and agreements contained in this First Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 4 hereof, the
Credit Agreement shall be amended effective as of the First Amendment Effective
Date in the manner provided in this Section 2.

 

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2.1 Additional Definitions. Section 1.02 of the Credit Agreement is hereby
amended to add thereto in alphabetical order the following definitions which
shall read in full as follows:

“First Amendment” means that certain First Amendment to Third Amended and
Restated Credit Agreement dated as of October 20, 2014, among the Borrower, the
Guarantors party thereto, the Administrative Agent and the Lenders party
thereto.

“First Amendment Effective Date” means October 20, 2014.

2.2 Amended Definitions. The definitions of “Borrowing Base”, “EBITDAX” and
“Loan Documents” contained in Section 1.02 of the Credit Agreement are hereby
amended and restated in their entirety to read in full as follows:

“Borrowing Base” means at any time an amount equal to the amount determined in
accordance with Section 2.07, as the same may be adjusted from time to time
pursuant to Section 9.11. As of the First Amendment Effective Date, the
Borrowing Base shall be $550,000,000.

“EBITDAX” means, for any period, Consolidated Net Income for such period plus
the following expenses or charges to the extent deducted in calculating such
Consolidated Net Income: (a) the sum of (i) Consolidated Interest Expense,
(ii) income taxes (however denominated), (iii) depreciation, (iv) depletion,
(v) amortization, (vi) exploration and abandonment expenses, (vii) transaction
costs, expenses and charges with respect to the acquisition or disposition of
Oil and Gas Properties, not to exceed $500,000 in the aggregate in any fiscal
year, and (viii) all other noncash charges, minus (b) all noncash income added
to Consolidated Net Income.

“Loan Documents” means this Agreement, the First Amendment, the Notes, the Fee
Letters, the Letter of Credit Agreements, the Letters of Credit and the Security
Instruments.

2.3 Deleted Definitions. The definitions of “Material Acquisition” and “Material
Disposition” contained in Section 1.02 of the Credit Agreement are hereby
deleted in their entirety.

2.4 Replacement of Annex I. Annex I to the Credit Agreement is hereby replaced
in its entirety with Annex I attached hereto and Annex I attached hereto shall
be deemed to be attached as Annex I to the Credit Agreement. After giving effect
to this First Amendment and any Borrowings made on the First Amendment Effective
Date, (a) each Lender who holds Loans in an aggregate amount less than its
Applicable Percentage (after giving effect to this First Amendment) of all Loans
shall advance new Loans which shall be disbursed to the Administrative Agent and
used to repay Loans outstanding to each Lender who holds Loans in an aggregate
amount greater than its Applicable Percentage of all Loans, (b) each Lender’s
participation in each Letter of Credit, if any, shall be automatically adjusted
to equal its Applicable Percentage (after giving effect to this First
Amendment), (c) such other adjustments shall be made as the Administrative Agent
shall specify so that the Revolving Credit Exposure applicable to each Lender
equals its Applicable Percentage (after giving effect to this First Amendment)
of the aggregate Revolving Credit Exposure of all Lenders and (d) upon request
by each applicable Lender, the Borrower shall be required to make any break
funding payments owing to such Lender that are required under Section 5.02 of
the Credit Agreement as a result of the Loans and adjustments described in this
Section 2.4.

 

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Section 3. Borrowing Base. In reliance on the representations, warranties,
covenants and agreements contained in this First Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 4 hereof, the
Borrowing Base shall be increased, effective as of the First Amendment Effective
Date, from $385,000,000 to $550,000,000 and shall remain at $550,000,000 until
the next Scheduled Redetermination, Interim Redetermination or other adjustment
of the Borrowing Base pursuant to the terms of the Credit Agreement. The
Borrowing Base redetermination provided for herein shall constitute the
Scheduled Redetermination of the Borrowing Base scheduled for on or about
October 1, 2014 for purposes of Section 2.07(b) of the Credit Agreement.

Section 4. Conditions Precedent. The effectiveness of this First Amendment is
subject to the following:

4.1 The Administrative Agent shall have received counterparts of this First
Amendment from the Loan Parties and each of the Lenders (including the New
Lenders).

4.2 The Administrative Agent shall have received all fees and other amounts due
and payable on or prior to the First Amendment Effective Date including, without
limitation, the Borrowing Base increase fees described in Section 4.3 below.

4.3 The Administrative Agent shall have received, for the account of each of the
Increasing Lenders (as defined below), Borrowing Base increase fees in an
aggregate amount for each such Increasing Lender equal to forty basis points
(0.40%) of the amount of such Increasing Lender’s Increased Commitment (as
defined below). As used herein, “Increasing Lender” means each Lender (including
the New Lenders) whose Commitment after giving effect to Section 3 hereof
exceeds such Lender’s Commitment, if any, that was in effect immediately prior
to giving effect to Section 3 hereof, and “Increased Commitment” means the
amount of such excess.

4.4 The Administrative Agent shall have received duly executed Notes payable to
each Lender requesting a Note in a principal amount equal to its Maximum Credit
Amount (as amended hereby) dated as of the date hereof.

Section 5. New Lenders. Each New Lender hereby joins in, becomes a party to, and
agrees to comply with and be bound by the terms and conditions of the Credit
Agreement as a Lender thereunder and under each and every other Loan Document to
which any Lender is required to be bound by the Credit Agreement, to the same
extent as if such New Lender were an original signatory thereto. Each New Lender
hereby appoints and authorizes the Administrative Agent to take such action as
agent on its behalf and to exercise such powers and discretion under the Credit
Agreement as are delegated to the Administrative Agent by the terms thereof,
together with such powers and discretion as are reasonably incidental thereto.
Each New Lender represents and warrants that (a) it has full power and
authority, and has taken all action necessary, to execute and deliver this First
Amendment, to consummate the transactions contemplated hereby and to become a
Lender under the Credit Agreement, (b) it has received a copy of the Credit
Agreement and copies of the most recent financial statements delivered pursuant
to Section

 

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8.01 thereof, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
First Amendment and to become a Lender on the basis of which it has made such
analysis and decision independently and without reliance on the Administrative
Agent or any other Lender, and (c) from and after the First Amendment Effective
Date, it shall be a party to and be bound by the provisions of the Credit
Agreement and the other Loan Documents and have the rights and obligations of a
Lender thereunder.

Section 6. Miscellaneous.

6.1 Confirmation and Effect. The provisions of the Credit Agreement (as amended
by this First Amendment) shall remain in full force and effect in accordance
with its terms following the effectiveness of this First Amendment, and this
First Amendment shall not constitute a waiver of any provision of the Credit
Agreement or any other Loan Document, except as expressly provided for herein.
Each reference in the Credit Agreement to “this Agreement”, “hereunder”,
“hereof’, “herein”, or words of like import shall mean and be a reference to the
Credit Agreement as amended hereby, and each reference to the Credit Agreement
in any other document, instrument or agreement executed and/or delivered in
connection with the Credit Agreement shall mean and be a reference to the Credit
Agreement as amended hereby.

6.2 Ratification and Affirmation of Loan Parties. Each of the Loan Parties
hereby expressly (i) acknowledges the terms of this First Amendment,
(ii) ratifies and affirms its obligations under the Guaranty and Pledge
Agreement and the other Loan Documents to which it is a party,
(iii) acknowledges, renews and extends its continued liability under the
Guaranty and Pledge Agreement and the other Loan Documents to which it is a
party, (iv) agrees that its guarantee under the Guaranty and Pledge Agreement
and the other Loan Documents to which it is a party remains in full force and
effect with respect to the Obligations as amended hereby, (v) represents and
warrants to the Lenders and the Administrative Agent that each representation
and warranty of such Loan Party contained in the Credit Agreement and the other
Loan Documents to which it is a party is true and correct in all material
respects as of the date hereof and after giving effect to the amendments set
forth in Section 2 hereof except (A) to the extent any such representations and
warranties are expressly limited to an earlier date, in which case, on and as of
the date hereof, such representations and warranties shall continue to be true
and correct as of such specified earlier date, and (B) to the extent that any
such representation and warranty is expressly qualified by materiality or by
reference to Material Adverse Effect, such representation and warranty (as so
qualified) shall continue to be true and correct in all respects,
(vi) represents and warrants to the Lenders and the Administrative Agent that
the execution, delivery and performance by such Loan Party of this First
Amendment are within such Loan Party’s corporate, limited partnership or limited
liability company powers (as applicable), have been duly authorized by all
necessary action and that this First Amendment constitutes the valid and binding
obligation of such Loan Party enforceable in accordance with its terms, except
as the enforceability thereof may be limited by bankruptcy, insolvency or
similar laws affecting creditor’s rights generally, and (vii) represents and
warrants to the Lenders and the Administrative Agent that, after giving effect
to this First Amendment, no Event of Default exists.

 

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6.3 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 electronic (e.g.
pdf) transmission shall be effective as delivery of a manually executed original
counterpart hereof.

6.4 No Oral Agreement. THIS WRITTEN FIRST 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 SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

6.5 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.

6.6 Payment of Expenses. The Borrower agrees to pay or reimburse the
Administrative Agent for all of its reasonable out-of-pocket costs and expenses
incurred in connection with this First Amendment, any other documents prepared
in connection herewith and the transactions contemplated hereby, including,
without limitation, the reasonable fees and disbursements of counsel to the
Administrative Agent.

6.7 Severability. Any provision of this First 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.

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

[Signature Pages Follow.]

 

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The parties hereto have caused this First Amendment to be duly executed as of
the day and year first above written.

 

BORROWER:     RICE ENERGY INC., a Delaware corporation     By:   /s/ Grayson T.
Lisenby     Name:   Grayson T. Lisenby     Title:   Vice President and Chief
Financial Officer

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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GUARANTORS:    

RICE DRILLING B LLC, a Pennsylvania

limited liability company

   

By:

  /s/ Grayson T. Lisenby    

Name:

  Grayson T. Lisenby    

Title:

  Vice President and Chief Financial Officer    

RICE DRILLING C LLC, a Delaware

limited liability company

   

By:

  /s/ Grayson T. Lisenby    

Name:

  Grayson T. Lisenby    

Title:

  Vice President and Chief Financial Officer    

RICE DRILLING D LLC, a Delaware

limited liability company

   

By:

  /s/ Grayson T. Lisenby    

Name:

  Grayson T. Lisenby    

Title:

  Vice President and Chief Financial Officer    

RICE OLYMPUS MIDSTREAM LLC, a

Delaware limited liability company

   

By:

  /s/ Grayson T. Lisenby    

Name:

  Grayson T. Lisenby    

Title:

  Vice President and Chief Financial Officer

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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RICE POSEIDON MIDSTREAM LLC, a

Delaware limited liability company

By:  

/s/ Grayson T. Lisenby

Name:   Grayson T. Lisenby Title:   Vice President and Chief Financial Officer

RICE ENERGY APPALACHIA, LLC, a

Delaware limited liability company

By:  

/s/ Grayson T. Lisenby

Name:   Grayson T. Lisenby Title:   Vice President and Chief Financial Officer

BLUE TIGER OILFIELD SERVICES LLC, a

Delaware limited liability company

By:  

/s/ Grayson T. Lisenby

Name:   Grayson T. Lisenby Title:   Vice President and Chief Financial Officer

ALPHA SHALE HOLDINGS, LLC, a

Delaware limited liability company

By:  

/s/ Grayson T. Lisenby

Name:   Grayson T. Lisenby Title:   Vice President and Chief Financial Officer

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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ALPHA SHALE RESOURCES, LP, a

Delaware limited partnership

By: Alpha Shale Holdings, LLC, its general partner   By:   /s/ Grayson T.
Lisenby   Name:   Grayson T. Lisenby   Title:   Vice President and Chief    
Financial Officer

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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WELLS FARGO BANK, N.A., as

Administrative Agent, a Lender and as Issuing Bank

By:

  /s/ Edward Markham

Name:

  Edward Markham

Title:

  Assistant Vice President

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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BARCLAYS BANK PLC, as a Lender By:  

/s/ Irina Dimova

Name:   Irina Dimova Title:   Vice President

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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BMO HARRIS FINANCING, INC., as a Lender By:  

/s/ Gumaro Tijerina

Name:   Gumaro Tijerina Title:   Managing Director

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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CITIBANK, N.A., as a Lender By:  

/s/ Jeff Ard

Name:   Jeff Ard Title:   Vice President

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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COMERICA BANK, as a Lender By:  

/s/ Jeffery Treadway

Name:   Jeffery Treadway Title:   Senior Vice President

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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FIFTH THIRD BANK, as a Lender By:  

/s/ Justin B. Crawford

Name:   Justin B. Crawford Title:   Director

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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GOLDMAN SACHS BANK USA, as a Lender

By:

 

/s/ Michelle Latzoni

Name: Michelle Latzoni

Title: Authorized Signatory

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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ROYAL BANK OF CANADA, as a Lender

By:

 

/s/ Evans Swann, Jr.

Name: Evans Swann, Jr.

Title: Authorized Signatory

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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PNC BANK, NATIONAL ASSOCIATION,
as a Lender

By:

 

/s/ Jonathan Luchansky

Name: Jonathan Luchansky

Title: Assistant Vice President

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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SUNTRUST BANK, as a Lender

By:

  /s/ Scott A. Mackey

Name:

  Scott A. Mackey

Title:

  Director

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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CAPITAL ONE, NATIONAL

ASSOCIATION, as a Lender

By:

  /s/ Christopher Kuna

Name:

  Christopher Kuna

Title:

  Vice President

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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AMEGY BANK NATIONAL

ASSOCIATION, as a Lender

By:

 

/s/ Thomas Kleiderer

Name:

  Thomas Kleiderer

Title:

  Vice President

 

SIGNATURE PAGE TO FIRST AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

RICE ENERGY INC.

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ANNEX I

LIST OF MAXIMUM CREDIT AMOUNTS

 

Name of Lender

   Applicable Percentage     Maximum Credit Amount  

Wells Fargo Bank, N.A.

     19.09090910 %    $ 286,363,636.37   

Barclays Bank PLC

     11.81818182 %    $ 177,272,727.28   

BMO Harris Financing, Inc.

     11.81818182 %    $ 177,272,727.28   

Comerica Bank

     11.81818182 %    $ 177,272,727.28   

Citibank, N.A.

     8.18181818 %    $ 122,727,272.73   

Fifth Third Bank

     8.18181818 %    $ 122,727,272.73   

Royal Bank of Canada

     8.18181818 %    $ 122,727,272.73   

Goldman Sachs Bank USA

     4.18181818 %    $ 62,727,272.72   

PNC Bank, National Association

     4.18181818 %    $ 62,727,272.72   

SunTrust Bank

     4.18181818 %    $ 62,727,272.72   

Capital One, National Association

     4.18181818 %    $ 62,727,272.72   

Amegy Bank National Association

     4.18181818 %    $ 62,727,272.72      

 

 

   

 

 

 

TOTAL

     100.00 %    $ 1,500,000,000.00      

 

 

   

 

 

 

ANNEX I