EXHIBIT 10.1

 

 

EIGHTH AMENDMENT

 

TO

 

SENIOR REVOLVING CREDIT AGREEMENT

 

DATED AS OF SEPTEMBER 30, 2014

 

AMONG

 

HALCÓN RESOURCES CORPORATION,
AS BORROWER,

 

THE GUARANTORS,

 

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

 

AND

 

THE LENDERS PARTY HERETO

 

 

J. P. MORGAN SECURITIES LLC,

AS SOLE LEAD ARRANGER

 

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

AS JOINT BOOKRUNNERS

 

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EIGHTH AMENDMENT
TO SENIOR REVOLVING CREDIT AGREEMENT

 

THIS EIGHTH AMENDMENT TO SENIOR REVOLVING CREDIT AGREEMENT (this “Eighth
Amendment”) dated as of September 30, 2014 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
Lenders party to the Credit Agreement, BNP Paribas (the “New Lender”) and
JPMORGAN CHASE BANK, N.A., 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.                                    Reference is made to that certain Senior
Revolving Credit Agreement dated as of February 8, 2012 (as amended, modified or
otherwise supplemented prior to the date hereof, the “Credit Agreement”; as
amended by this Eighth Amendment, and as may be further amended, modified or
supplemented the “Amended Credit Agreement”) among the Borrower, each of the
Lenders party thereto (hereinafter referred to as the “Existing Lenders”) and
the Administrative Agent, 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 each of the Lenders have agreed to amend certain
provisions of the Credit Agreement.

 

C.                                    The Existing Lenders have agreed among
themselves to reallocate the Commitments, Aggregate Maximum Credit Amount,
Applicable Percentages and Revolving Credit Exposures and to, among other
things, allow the New Lender, in consultation with the Borrower, to become party
to the Amended Credit Agreement as a Lender by acquiring an interest in the
Commitments, Aggregate Maximum Credit Amount, Applicable Percentages and
Revolving Credit Exposures.

 

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

 

Section 2.                                                                  
Assignment and Reallocation.

 

2.1                               Assignment and Reallocation among the
Lenders.  The assignments by the Existing Lenders necessary to effect the
reallocation of the Commitments, Aggregate Maximum Credit Amount, Applicable
Percentages and Revolving Credit Exposures and the assumptions by the New Lender
necessary for such New Lender to acquire such interests are hereby consummated

 

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pursuant to the terms and provisions of this Agreement and Section 12.04(b), and
the Borrower, the Administrative Agent and each Lender, including the New
Lender, hereby consummates such assignment and assumption pursuant to the terms,
provisions and representations of the Assignment and Assumption attached as
Exhibit F to the Credit Agreement as if each of them had executed and delivered
an Assignment and Assumption (with the Effective Date (as defined therein) being
the Effective Date set forth below); provided that (i) the Administrative Agent
hereby waives the $3,500 processing and recordation fee set forth in
Section 12.04(b)(ii)(C) with respect to such assignments and assumptions, and
(ii) if the New Lender is a Foreign Lender it shall have delivered to the
Borrower (with a copy to the Administrative Agent) the documentation required
pursuant to Section 5.03(e).  On the Eighth Amendment Effective Date (as defined
below) and after giving effect to such assignments and assumptions, the
Applicable Percentage and Maximum Credit Amount of each Lender shall be as set
forth in Annex I attached hereto.  The Existing Lenders and New Lender hereby
agree that all payments (to the extent arising among such parties) necessary to
effect the reallocations referred to in this Section 2.1 have been paid on or
before the date hereof, including but not limited to such payments arising in
relation to existing Loans and other outstanding obligations under the Credit
Agreement, as applicable.

 

2.2                               Consent.  Each of the Administrative Agent and
the Borrower hereby consents to (a) the reallocation of the Commitments,
Aggregate Maximum Credit Amount, Applicable Percentages and Revolving Credit
Exposures and (b) the New Lender’s acquisition of an interest in the
Commitments, Aggregate Maximum Credit Amount, Applicable Percentages and
Revolving Credit Exposures.  Each Lender, including the New Lender, hereby
consents and agrees to the Applicable Percentages and Maximum Credit Amounts as
set forth in Annex I attached hereto.  With respect to the foregoing assignments
and assumptions, in the event of any conflict between this Agreement and
Section 12.04(b), the parties hereto agree that the terms of this Eighth
Amendment shall control.

 

2.3                               Borrowing Base Redetermination.  The parties
hereto agree that, upon execution and delivery of this Eighth Amendment, the
redetermination of the Borrowing Base in the amount of $1.05 billion (the “New
Borrowing Base”) will be deemed to have been approved by each of the Lenders, as
applicable, pursuant to Section 2.07(c)(iii) of the Amended Credit Agreement. 
Solely with respect to the New Borrowing Base, all other conditions to the
redetermination of the Borrowing Base pursuant to the terms of the Amended
Credit Agreement are deemed satisfied or waived, as applicable, including but
not limited to the requirement for a New Borrowing Base Notice under
Section 2.07(d). The New Borrowing Base is deemed effective as of the date
hereof.

 

Section 3.                                           Amendment to Credit
Agreement.  Annex I of the Credit Agreement is hereby amended in its entirety to
read as Annex I attached hereto.

 

Section 4.                                           Conditions Precedent.  This
Eighth Amendment shall become effective on the date when each of the following
conditions is satisfied (or waived in accordance with Section 12.02 of the
Credit Agreement) (such date, the “Eighth Amendment Effective Date”):

 

4.1                               Eighth Amendment.  The Administrative Agent
shall have received a counterpart of this Eighth Amendment signed by the
Borrower, the Guarantors, each of the Existing Lenders and the New Lender.

 

2

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4.2                               Fees.  The Administrative Agent, the Arranger
and the Lenders shall have received all fees and other amounts due and payable
on or prior to the Eighth Amendment Effective Date, including, to the extent
invoice, reimbursement or payment in full of all out of pocket expenses required
to be reimbursed or paid by the Borrower under the Amended Credit Agreement.

 

4.3                               No Default; No Material Adverse Effect.  At
the time of and immediately after giving effect to this Eighth Amendment, (a) no
Default or Event of Default shall have occurred and be continuing and (b) 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
Eighth 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 Amended
Credit Agreement shall remain in full force and effect following the
effectiveness of this Eighth Amendment.

 

5.2                               Ratification and Affirmation; Representations
and Warranties.  Each Obligor hereby (a) acknowledges the terms of this Eighth
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 Eighth 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 Eighth Amendment is a
Loan Document.

 

5.4                               New Lender Agreement and Representations.

 

(a)                                 The New Lender agrees to be bound by the
provisions of the Amended Credit Agreement, and agrees that it shall, on the
date hereof, become a Lender for all purposes of the Amended Credit Agreement to
the same extent as if originally a party thereto.

 

(b)                                 The New Lender (a) represents and warrants
that it is legally authorized to enter into the Amended Credit Agreement;
(b) confirms that it has received a copy of the Amended Credit Agreement,
together with copies of such other documents and information as it has deemed

 

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appropriate to make its own credit analysis and decision to enter into the
Amended Credit Agreement; (c) agrees that it has made and will, independently
and without reliance upon the Administrative Agent or any other Lender and based
on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under
the Amended Credit Agreement or any instrument or document furnished pursuant
hereto or thereto; (d) appoints and authorizes the Administrative Agent to take
such action as agent on its behalf and to exercise such powers and discretion
under the Amended Credit Agreement or any instrument or document furnished
pursuant hereto or thereto as are delegated to the Administrative Agent by the
terms thereof, together with such powers as are incidental thereto; and
(e) agrees that it will be bound by the provisions of the Amended Credit
Agreement and will perform in accordance with its terms all the obligations
which by the terms of the Amended Credit Agreement are required to be performed
by it as a Lender.

 

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

 

5.6                               NO ORAL AGREEMENT.  THIS EIGHTH 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.

 

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

 

5.8                               Severability.  Any provision of this Eighth
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 Eighth Amendment
shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

[This page intentionally left blank.  Signature pages follow.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Eighth 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

 

HK ENERGY, LLC

 

HK ENERGY OPERATING, LLC

 

HK LOUISIANA OPERATING, LLC

 

HK OIL & GAS, LLC

 

HALCÓN WILLISTON I, LLC

 

HALCÓN WILLISTON II, LLC
HK RESOURCES, LLC
THE 7711 CORPORATION

 

 

 

 

 

 

 

 

 

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 – EIGHTH AMENDMENT
HALCÓN RESOURCES CORPORATION

 

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ADMINISTRATIVE AGENT

JPMORGAN CHASE BANK, N.A.,

AND LENDER:

as Administrative Agent and Lender

 

 

 

By:

/s/ Michael A. Kamauf

 

 

Name: Michael A. Kamauf

 

 

Title: Authorized Officer

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

WELLS FARGO BANK, N.A.,

 

as Lender

 

 

 

 

By:

/s/ Todd Fogh

 

 

Name: Todd Fogh

 

 

Title: Vice President

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

BMO HARRIS FINANCING, INC.,

 

as Lender

 

 

 

By:

/s/ James V. Ducote

 

 

Name: James V. Ducote

 

 

Title: Managing Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

BARCLAYS BANK PLC,

 

as Lender

 

 

 

By:

/s/ Vanessa Kurbatsky

 

 

Name: Vanessa Kurbatsky

 

 

Title: Vice President

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

SUNTRUST BANK,

 

as Lender

 

 

 

By:

/s/ Shannon Juhan

 

 

Name: Shannon Juhan

 

 

Title: Vice President

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

CAPITAL ONE, NATIONAL ASSOCIATION,

 

as Lender

 

 

 

By:

/s/ Victor Ponce De Leon

 

 

Name: Victor Ponce De Leon

 

 

Title: Vice President

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

GOLDMAN SACHS BANK USA,

 

as Lender

 

 

 

By:

/s/ Ashwin Ramakrishna

 

 

Name: Ashwin Ramakrishna

 

 

Title: Authorized Signatory

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

ROYAL BANK OF CANADA,

 

as Lender

 

 

 

By:

/s/ Evans Swann, Jr.

 

 

Name: Evans Swann, Jr.

 

 

Title: Authorized Signatory

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

BANK OF AMERICA, N.A.,

 

as Lender

 

 

 

By:

/s/ Bryan Heller

 

 

Name: Bryan Heller

 

 

Title: Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

THE ROYAL BANK OF SCOTLAND PLC,

 

as Lender

 

 

 

By:

/s/ James L. Mayes

 

 

Name: James L. Mayes

 

 

Title: Managing Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as Lender

 

 

 

By:

/s/ Christopher Day

 

 

Name: Christopher Day

 

 

Title: Authorized Signatory

 

 

 

 

By:

/s/ Whitney Gaston

 

 

Name: Whitney Gaston

 

 

Title: Authorized Signatory

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
as Lender

 

 

 

 

By:

/s/ Mark A. Roche

 

 

Name: Mark A. Roche

 

 

Title: Managing Director

 

 

 

 

By:

/s/ Michael D. Willis

 

 

Name: Michael D. Willis

 

 

Title: Managing Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

NATIXIS,
as Lender

 

 

 

 

By:

/s/ Justin Bellamy

 

 

Name: Justin Bellamy

 

 

Title: Director

 

 

 

 

By:

/s/ Stuart Murray

 

 

Name: Stuart Murray

 

 

Title: Managing Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

ING CAPITAL LLC,
as Lender

 

 

 

 

By:

/s/ Josh Strong

 

 

Name: Josh Strong

 

 

Title: Director

 

 

 

 

By:

/s/ Juli Bieser

 

 

Name: Juli Bieser

 

 

Title: Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

COMERICA BANK,
as Lender

 

 

 

 

By:

/s/ William Robinson

 

 

Name: William Robinson

 

 

Title: Vice President

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

DEUTSCHE BANK AG NEW YORK BRANCH,
as Lender

 

 

 

 

By:

/s/ Lisa Wong

 

 

Name: Lisa Wong

 

 

Title: Vice President

 

 

 

 

By:

/s/ Marcus M. Tarkington

 

 

Name: Marcus M. Tarkington

 

 

Title: Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

SUMITOMO MITSUI BANKING CORPORATION,
as Lender

 

 

 

 

By:

/s/ James D. Weinstein

 

 

Name: James D. Weinstein

 

 

Title: Managing Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

THE BANK OF NOVA SCOTIA,
as Lender

 

 

 

By:

/s/ Alan Dawson

 

 

Name: Alan Dawson

 

 

Title: Director

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

KEYBANK NATIONAL ASSOCIATION
as Lender

 

 

 

 

By:

/s/ John Dravenstott

 

 

Name: John Dravenstott

 

 

Title: Vice President

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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LENDER:

BNP PARIBAS
as New Lender

 

 

 

By:

/s/ Sriram Chandrasekaran

 

 

Name: Sriram Chandrasekaran

 

 

Title: Director

 

 

 

 

By:

/s/ Julien Pecoud-Bouvet

 

 

Name: Julien Pecoud-Bouvet

 

 

Title: Vice-President

 

SIGNATURE PAGE — EIGHTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

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ANNEX I

 

LIST OF MAXIMUM CREDIT AMOUNTS

 

Lender

 

Applicable
Percentage

 

Maximum Credit
Amount

 

JPMorgan Chase Bank, N.A.

 

7.19

%

$

107,777,777.77

 

Wells Fargo Bank, N.A.

 

7.19

%

$

107,777,777.77

 

BMO Harris Financing, Inc.

 

5.77

%

$

86,601,307.19

 

Capital One, National Association

 

5.77

%

$

86,601,307.19

 

SunTrust Bank

 

5.77

%

$

86,601,307.19

 

Royal Bank of Canada

 

5.77

%

$

86,601,307.19

 

Credit Agricole Corporate and Investment Bank

 

5.77

%

$

86,601,307.19

 

Natixis

 

5.77

%

$

86,601,307.19

 

Bank of America, N.A.

 

5.77

%

$

86,601,307.19

 

ING Capital LLC

 

5.77

%

$

86,601,307.19

 

BNP Paribas

 

5.77

%

$

86,601,307.19

 

Barclays Bank PLC

 

4.83

%

$

72,483,660.12

 

Goldman Sachs Bank USA

 

4.83

%

$

72,483,660.12

 

Credit Suisse AG, Cayman Islands Branch

 

4.36

%

$

65,424,836.61

 

The Royal Bank of Scotland plc

 

3.92

%

$

58,823,529.41

 

Deutsche Bank Trust Company Americas

 

3.92

%

$

58,823,529.41

 

Comerica Bank

 

2.95

%

$

44,248,366.02

 

Sumitomo Mitsui Banking Corporation

 

2.95

%

$

44,248,366.02

 

The Bank of Nova Scotia

 

2.95

%

$

44,248,366.02

 

KeyBank National Association

 

2.95

%

$

44,248,366.02

 

TOTAL:

 

100.0

%

$

1,500,000,000

 

 

ANNEX I

 

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