Exhibit 10.2

Execution Version

 

 

 

TENTH AMENDMENT

TO

CREDIT AGREEMENT

Dated as of October 19, 2020

Among

PARSLEY ENERGY, LLC,

as Borrower,

PARSLEY ENERGY, INC.,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

JPMORGAN CHASE BANK, N.A. and

BMO HARRIS BANK, N.A.

as Syndication Agents,

CITIBANK, N.A., CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

ROYAL BANK OF CANADA and U.S. BANK NATIONAL ASSOCIATION

as Documentation Agents,

and

The Lenders Party Thereto

 

 

WELLS FARGO SECURITIES, LLC

Sole Lead Arranger and Sole Bookrunner

 

 

 

 

 

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TENTH AMENDMENT TO CREDIT AGREEMENT

THIS TENTH AMENDMENT TO CREDIT AGREEMENT (this “Tenth Amendment”) dated as of
October 19, 2020, is among Parsley Energy, LLC, a Delaware limited liability
company (the “Borrower”); Parsley Energy, Inc., a Delaware corporation (“PEI”),
each of the undersigned guarantors (the “Guarantors”, and together with the
Borrower, the “Obligors”); each of the Lenders party hereto; and Wells Fargo
Bank, National Association (in its individual capacity, “Wells Fargo”), as
administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the “Administrative Agent”).

R E C I T A L S

A. The Borrower, PEI, the Administrative Agent and the Lenders are parties to
that certain Credit Agreement dated as of October 28, 2016 (as amended,
modified, supplemented or restated from time to time prior to the date hereof,
the “Credit Agreement”), pursuant to which the Lenders have made certain credit
available to and on behalf of the Borrower.

B. The Borrower and the Guarantors are parties to that certain Guarantee and
Collateral Agreement, dated as of October 28, 2016 made by the Borrower and each
of the other Grantors party thereto in favor of the Administrative Agent (as
amended, modified, supplemented or restated from time to time prior to the date
hereof, the “Guaranty Agreement”).

C. The Borrower has requested and the Administrative Agent and the Lenders party
hereto have agreed to amend the Credit Agreement, subject to the terms and
conditions of this Tenth Amendment.

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

Section 2. Amendments to Credit Agreement.

2.1 Amendments to Section 1.02.

(a) Each of the following definitions is hereby amended and restated in its
entirety to read as follows:

“Aggregate Elected Borrowing Base Commitments” means (a) on the Tenth Amendment
Effective Date, $1,100,000,000, and (b) at any time thereafter, an amount
determined in accordance with Section 2.07(h).

 

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“Agreement” means this Credit Agreement, including any schedules and exhibits
hereto, as amended by the First Amendment, the Second Amendment, the Third
Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the
Seventh Amendment, the Eighth Amendment, the Ninth Amendment and the Tenth
Amendment, and as the same may from time to time be amended, modified,
supplemented or restated.

(b) The following definitions are hereby added where alphabetically appropriate
to read as follows:

“Tenth Amendment” means that certain Tenth Amendment to Credit Agreement, dated
as of October 19, 2020, among the Borrower, PEI, the Guarantors, the
Administrative Agent and the Lenders party thereto.

“Tenth Amendment Effective Date” has the meaning assigned to such term in the
Tenth Amendment.

2.2 Amendment to Section 9.18. Section 9.18 is hereby amended replacing each
reference to the phrase “entered into by the Borrower in respect of” contained
therein with the phrase “entered into by the Borrower or any Restricted
Subsidiary in respect of”.

2.3 Amendment to Section 12.06(a). Section 12.06(a) is hereby amended and
restated in its entirety to read as follows:

(a) This Agreement 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. This
Agreement and any notices delivered under this Agreement, may be executed by
means of (a) an electronic signature that complies with the federal Electronic
Signatures in Global and National Commerce Act, state enactments of the Uniform
Electronic Transactions Act, or any other relevant and applicable electronic
signatures law; (b) an original manual signature; or (c) a faxed, scanned, or
photocopied manual signature. Each electronic signature or faxed, scanned, or
photocopied manual signature shall for all purposes have the same validity,
legal effect, and admissibility in evidence as an original manual signature. The
Administrative Agent reserves the right, in its sole discretion, to accept,
deny, or condition acceptance of any electronic signature of this Agreement or
any notice delivered to the Administrative Agent under this Agreement.

Section 3. Conditions of Effectiveness. This Tenth Amendment will become
effective on the date on which each of the following conditions precedent is
satisfied or waived in accordance with Section 12.02 of the Credit Agreement
(the “Tenth Amendment Effective Date”):

3.1 The Administrative Agent shall have received from the Borrower, PEI, each
Guarantor, the Issuing Bank and the Lenders, counterparts (in such number as may
be requested by the Administrative Agent) of this Tenth Amendment signed on
behalf of such Person.

 

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3.2 The Administrative Agent and the Lenders shall have received all fees and
other amounts due and payable on or prior to the Tenth Amendment Effective Date,
including all reasonable and documented out-of-pocket expenses required to be
reimbursed or paid by the Borrower under the Credit Agreement (including
reasonable and documented out-of-pocket fees and expenses invoiced by Paul
Hastings LLP at least two (2) Business Days prior to the Tenth Amendment
Effective Date).

3.3 The Administrative Agent shall have received such other documents as the
Administrative Agent or its special counsel may reasonably require.

The Administrative Agent shall, and is hereby authorized and directed to,
declare this Tenth Amendment to be effective when it has received documents
confirming compliance with the conditions set forth in this Section 3 or the
waiver of such conditions as agreed to by the Majority Lenders. Such declaration
shall be final, conclusive and binding upon all parties to the Credit Agreement
for all purposes.

Section 4. Increase in Aggregate Elected Borrowing Base Commitments;
Reallocation of Commitments and Aggregate Maximum Credit Amounts.

4.1 The Borrower has informed the Lenders that it desires to increase the
Aggregate Elected Borrowing Base Commitments. Each of the Lenders (other than
Frost Bank, a Texas State Bank (“Frost Bank”), BOKF NA dba Bank of Texas; BBVA
USA, and Morgan Stanley Bank, N.A.) has agreed to increase its Commitment under
the Credit Agreement (such Lenders, the “Increasing Lenders”). Frost Bank has
agreed to reduce its Commitment under the Credit Agreement.

4.2 Effective as of the Tenth Amendment Effective Date:

(a) the Commitment of each Increasing Lender shall increase as follows:

 

Lender

   Existing
Commitment      New
Commitment  

Wells Fargo Bank, National Association

   $ 120,000,000.00      $ 121,000,000.00  

BMO Harris Bank, N.A.

   $ 110,000,000.00      $ 111,000,000.00  

JPMorgan Chase Bank, N.A.

   $ 110,000,000.00      $ 111,000,000.00  

Citibank, N.A.

   $ 78,750,000.00      $ 80,000,000.00  

Credit Suisse AG, Cayman Islands Branch

   $ 78,750,000.00      $ 80,000,000.00  

Royal Bank of Canada

   $ 78,750,000.00      $ 80,000,000.00  

U.S. Bank National Association

   $ 78,750,000.00      $ 80,000,000.00  

The Bank of Nova Scotia, Houston Branch

   $ 64,000,000.00      $ 72,000,000.00  

Canadian Imperial Bank of Commerce-New York Branch

   $ 61,750,000.00      $ 70,000,000.00  

PNC Bank, National Association

   $ 50,000,000.00      $ 53,000,000.00  

Morgan Stanley Senior Funding, Inc.

   $ 30,413,043.48      $ 32,413,043.48  

 

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(b) Frost Bank’s Commitment under the Credit Agreement shall be reduced from
$48,500,000.00 to $44,250,000.00; and

(c) The Aggregate Maximum Credit Amounts of the Lenders will be reallocated so
that after giving effect to the increase to the Aggregate Elected Borrowing Base
Commitments, each Lender will hold a Maximum Credit Amount equal to such
Lender’s portion of the Aggregate Elected Borrowing Base Commitments. With
respect to such reallocation, each Lender shall be deemed to have acquired the
Maximum Credit Amount and Commitment allocated to it from each of the other
Lenders pursuant to the terms of an Assignment and Assumption. Notwithstanding
Section 12.04(b)(ii) of the Credit Agreement, no Person shall be required to pay
a processing and recordation fee of $3,500 to the Administrative Agent. On the
Tenth Amendment Effective Date, the Administrative Agent shall take the actions
specified in Section 12.04(b)(iv) of the Credit Agreement, including recording
the assignments described herein in the Register, and such assignments shall be
effective for purposes of the Credit Agreement. If on the Tenth Amendment
Effective Date, any Eurodollar Loans have been funded, then the Borrower shall
be obligated to pay any breakage fees or costs that are payable pursuant to
Section 5.02 of the Credit Agreement, in connection with the reallocation of
such outstanding Eurodollar Loans to effectuate the provisions of this
paragraph. On the Tenth Amendment Effective Date, immediately after giving
effect to such reallocations, (1) Annex I to the Credit Agreement is hereby
amended and restated in its entirety to read as set forth on Annex I attached to
this Tenth Amendment (the “Amended and Restated Annex I”) and (2) the Maximum
Credit Amount and Commitment of each Lender shall be as set forth on the Amended
and Restated Annex I.

Section 5. Miscellaneous.

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

5.2 Ratification and Affirmation; Representations and Warranties. Each of PEI
and each Obligor hereby: (a) acknowledges the terms of this Tenth 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; (c) agrees that from and after
the Tenth Amendment Effective Date each reference to the Credit Agreement in the
other Loan Documents shall be deemed to be a reference to the Credit Agreement,
as amended by this Tenth Amendment; and (d) represents and warrants to the
Lenders that as of the date hereof, after giving effect to the terms of this
Tenth Amendment: (i) all of the representations and

 

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warranties contained in each Loan Document to which it is a party are true and
correct in all material respects (except that any representation and warranty
that is qualified by materiality shall be true and correct in all respects),
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 in all material respects (except that any
representation and warranty that is qualified by materiality shall be true and
correct in all respects) as of such specified earlier date, (ii) no Default or
Event of Default has occurred and is continuing and (iii) no event, development
or circumstance has occurred or exists that has resulted in, or could reasonably
be expected to have, a Material Adverse Effect.

5.3 Counterparts. This Tenth 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 an executed counterpart of a signature page of this
Tenth Amendment by telecopy, facsimile, as an attachment to an email or other
similar electronic means shall be effective as delivery of a manually executed
counterpart of this Tenth Amendment. This Tenth Amendment may be executed by
means of (a) an electronic signature that complies with the federal Electronic
Signatures in Global and National Commerce Act, state enactments of the Uniform
Electronic Transactions Act, or any other relevant and applicable electronic
signatures law; (b) an original manual signature; or (c) a faxed, scanned, or
photocopied manual signature. Each electronic signature or faxed, scanned, or
photocopied manual signature shall for all purposes have the same validity,
legal effect, and admissibility in evidence as an original manual signature. The
Administrative Agent reserves the right, in its sole discretion, to accept,
deny, or condition acceptance of any electronic signature of this Tenth
Amendment.

5.4 NO ORAL AGREEMENT. THIS TENTH 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.

5.5 GOVERNING LAW. THIS TENTH 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 TEXAS.

5.6 Loan Document. This Tenth 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.

5.7 Payment of Expenses. In accordance with Section 12.03 of the Credit
Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for
all of its reasonable and documented out-of-pocket costs and expenses incurred
in connection with this Tenth 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.

 

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5.8 Severability. Any provision of this Tenth 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.

5.9 Successors and Assigns. This Tenth 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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IN WITNESS WHEREOF, the parties hereto have caused this Tenth Amendment to be
duly executed and delivered by their proper and duly authorized officer(s) as of
the day and year first above written.

 

BORROWER:     PARSLEY ENERGY, LLC     By:   /s/ Ryan Dalton     Name:   Ryan
Dalton     Title:   Executive Vice President—Chief Financial Officer

 

PEI:     PARSLEY ENERGY, INC.     By:   /s/ Ryan Dalton     Name:   Ryan Dalton
    Title:   Executive Vice President—Chief Financial Officer

 

GUARANTOR:     PARSLEY GP, LLC     By:   /s/ Ryan Dalton     Name:   Ryan Dalton
    Title:   Executive Vice President—Chief Financial Officer

 

GUARANTOR:     PARSLEY ENERGY, L.P.     BY: PARSLEY GP, LLC, its general partner
    By:   /s/ Ryan Dalton     Name:   Ryan Dalton     Title:   Executive Vice
President—Chief Financial Officer

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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GUARANTOR:     PARSLEY ENERGY OPERATIONS, LLC     By:   /s/ Ryan Dalton    
Name:   Ryan Dalton     Title:   Executive Vice President—Chief Financial
Officer

 

GUARANTOR:     PARSLEY ADMINISTRATION, LLC     By:   /s/ Ryan Dalton     Name:  
Ryan Dalton     Title:   Executive Vice President—Chief Financial Officer

 

GUARANTOR:     PARSLEY MINERALS, LLC     By:   /s/ Ryan Dalton     Name:   Ryan
Dalton     Title:   Executive Vice President—Chief Financial Officer

 

GUARANTOR:     PARSLEY FINANCE CORP.     By:   /s/ Ryan Dalton     Name:   Ryan
Dalton     Title:   Executive Vice President—Chief Financial Officer

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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GUARANTOR:     PARSLEY DE LONE STAR LLC     By:   /s/ Ryan Dalton     Name:  
Ryan Dalton     Title:   Executive Vice President—Chief Financial Officer

 

GUARANTOR:     PARSLEY DE OPERATING LLC     By:   /s/ Ryan Dalton     Name:  
Ryan Dalton     Title:   Executive Vice President—Chief Financial Officer

 

GUARANTOR:     PARSLEY VERITAS ENERGY PARTNERS, LLC     By:   /s/ Ryan Dalton  
  Name:   Ryan Dalton     Title:   Executive Vice President—Chief Financial
Officer

 

GUARANTOR:     PARSLEY NOVUS LAND SERVICES LLC     By:   /s/ Ryan Dalton    
Name:   Ryan Dalton     Title:   Executive Vice President—Chief Financial
Officer

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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GUARANTOR:     JAGGED PEAK ENERGY LLC     By:   /s/ Ryan Dalton     Name:   Ryan
Dalton     Title:   Executive Vice President—Chief Financial Officer

 

GUARANTOR:     PARSLEY SODE WATER LLC     By:   /s/ Ryan Dalton     Name:   Ryan
Dalton     Title:   Executive Vice President—Chief Financial Officer

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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ADMINISTRATIVE AGENT, ISSUING BANK AND LENDER:     WELLS FARGO BANK, NATIONAL
ASSOCIATION     By:   /s/ Edward Pak     Name:   Edward Pak     Title:  
Director

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     JPMORGAN CHASE BANK, N.A.     By:   /s/ Anca Loghin     Name:   Anca
Loghin     Title:   Authorized Officer

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     BMO HARRIS BANK, N.A.     By:   /s/ Matthew L. Davis     Name:  
Matthew L. Davis     Title:   Director

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     MORGAN STANLEY BANK, N.A.     By:   /s/ Julie Lilienfeld     Name:  
Julie Lilienfeld     Title:   Authorized Signatory

 

LENDER:     MORGAN STANLEY SENIOR FUNDING, INC.     By:   /s/ Julie Lilienfeld  
  Name:   Julie Lilienfeld     Title:   Authorized Signatory

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:    

CREDIT SUISSE AG, CAYMAN ISLANDS

BRANCH

    By:   /s/ Nupur Kumar     Name:   Nupur Kumar     Title:   Authorized
Signatory     By:   /s/ Jessica Gavarkos     Name:  

Jessica Gavarkos

    Title:   Authorized Signatory

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     BOKF NA DBA BANK OF TEXAS     By:   /s/ Clayton W. Williford    
Name:   Clayton W. Williford     Title:   Assistant Vice President

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     FROST BANK, A TEXAS STATE BANK     By:   /s/ Jack Herndon     Name:
  Jack Herndon     Title:   Senior Vice President

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     ROYAL BANK OF CANADA     By:   /s/ Grace Garcia     Name:   Grace
Garcia     Title:   Authorized Signatory

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     U.S. BANK NATIONAL ASSOCIATION     By:   /s/ Bruce Hernandez    
Name:   Bruce Hernandez     Title:   Senior Vice President

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:    

THE BANK OF NOVA SCOTIA, HOUSTON BRANCH

    By:   /s/ Scott Nickel     Name:   Scott Nickel     Title:   Director

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:    

BBVA USA

    By:   /s/ Julia Barnhill     Name:   Julia Barnhill     Title:   Vice
President

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     CANADIAN IMPERIAL BANK OF COMMERCE-NEW YORK BRANCH     By:   /s/
Trudy Nelson     Name:   Trudy Nelson     Title:  

Authorized Signatory

    By:   /s/ Scott W. Danvers     Name:   Scott W. Danvers     Title:  

Authorized Signatory

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:     CITIBANK, N.A.     By:   /s/ Cliff Vaz     Name:   Cliff Vaz    
Title:   Vice President

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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LENDER:    

PNC BANK, NATIONAL ASSOCIATION

    By:   /s/ Molly Schultz     Name:   Molly Schultz     Title:   Assistant
Vice President

 

[Parsley Energy, LLC - Tenth Amendment Signature Page]

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ANNEX I

LIST OF MAXIMUM CREDIT AMOUNTS

 

Name of Lender

   Applicable
Percentage     Maximum Credit
Amount   Wells Fargo Bank, National Association      11.000000000 %    $
550,000,000.00   BMO Harris Bank, N.A.      10.090909091 %    $ 504,545,454.55  
JPMorgan Chase Bank, N.A.      10.090909091 %    $ 504,545,454.55   Citibank,
N.A.      7.272727273 %    $ 363,636,363.65   Credit Suisse AG, Cayman Islands
Branch      7.272727273 %    $ 363,636,363.65   Royal Bank of Canada     
7.272727273 %    $ 363,636,363.65   U.S. Bank National Association     
7.272727273 %    $ 363,636,363.65   The Bank of Nova Scotia, Houston Branch     
6.545454545 %    $ 327,272,727.25   Canadian Imperial Bank of Commerce-New York
Branch      6.363636364 %    $ 318,181,818.20   BBVA USA      5.818181818 %    $
290,909,090.90   BOKF NA dba Bank of Texas      5.613636364 %    $
280,681,818.20   PNC Bank, National Association      4.818181818 %    $
240,909,090.90   Frost Bank, a Texas State Bank      4.022727273 %    $
201,136,363.65   Morgan Stanley Bank, N.A.      3.598814228 %    $
179,940,711.40   Morgan Stanley Senior Funding, Inc.      2.946640316 %    $
147,332,015.80     

 

 

   

 

 

  TOTAL      100.0000000000 %    $ 5,000,000,000.00     

 

 

   

 

 

 

 

Annex I