Exhibit 10.13

 

 

TWELFTH AMENDMENT

 

TO

 

SENIOR REVOLVING CREDIT AGREEMENT

 

DATED AS OF OCTOBER 29, 2015

 

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

 

--------------------------------------------------------------------------------

 

TWELFTH AMENDMENT
TO SENIOR REVOLVING CREDIT AGREEMENT

 

THIS TWELFTH AMENDMENT TO SENIOR REVOLVING CREDIT AGREEMENT (this “Amendment”)
dated as of October 29, 2015 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, 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, restated,
modified or otherwise supplemented prior to the date hereof, the “Credit
Agreement”; and as amended by this Amendment, and as may be further amended,
restated, modified or supplemented the “Amended Credit Agreement”) among the
Borrower, each of the Lenders party thereto 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 the Lenders party hereto have agreed to amend certain
provisions of the Credit Agreement.

 

C.                                    NOW, THEREFORE, to induce the
Administrative Agent and the Lenders party hereto to enter into this 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 Amendment refer to sections of the Amended Credit
Agreement.

 

Section 2.                                                                  
Amendments to Credit Agreement.

 

2.1                               Amendment to Section 7.21.  Section 7.21 is
hereby amended by deleting such Section in its entirety and replacing it with
the following:

 

“Section 7.21                       Use of Loans and Letters of Credit.  The
proceeds of the Loans and the Letters of Credit shall be used for (a) general
corporate purposes, including use for working capital for exploration and
production operations, (b) the issuance of letters of credit, (c) acquisitions
permitted by the terms hereof and (d) the redemption of Senior Notes permitted
by Section 9.04(c)(i)(C)(I).  The Borrower and its Subsidiaries are not engaged
principally, or as one of its or their important activities, in the business of
extending credit for the purpose, whether immediate, incidental or ultimate, of
buying or carrying margin stock (within the meaning of Regulation T, U or X of
the Board).  No part of the proceeds of any Loan or Letter of Credit will be
used for any purpose which violates the provisions

 

1

--------------------------------------------------------------------------------

 

of Regulations T, U or X of the Board.

 

2.2                               Amendment to Section 9.04(c). 
Section 9.04(c) is hereby amended by deleting such Section in its entirety and
replacing it with the following:

 

“(c)                            Redemption of Senior Notes; Amendment of Senior
Indentures.  The Borrower will not, and will not permit any Restricted
Subsidiary to, prior to the date that is ninety-one (91) days after the Maturity
Date:

 

(i) call, make or offer to make any optional or voluntary Redemption of or
otherwise optionally or voluntarily Redeem (whether in whole or in part) the
Senior Notes; provided that the Borrower may Redeem any Senior Notes in a
principal amount (or discounted principal amount if applicable)

 

(A) not exceeding the Net Cash Proceeds of any sale of Equity Interests (other
than Disqualified Capital Stock) of the Borrower,

 

(B) in exchange for the Third Lien Notes,

 

(C) at a reasonable discount from par in light of the market for such Senior
Notes on the date of redemption; with either or both of:

 

(I) up to $150,000,000 of cash or

 

(II) in exchange for, or with the proceeds from the issuance of, Second Lien
Notes permitted by Section 9.02(k) or,

 

(D) with the aggregate principal amount of Permitted Refinancing Debt;

 

provided, that in each instance of (A) through (D) above no Default or Event of
Default exist or would result therefrom and in each instance of (B) and
(C) above after giving effect to such redemption the Borrower has availability
equal to or greater than the greater of (I) 50% of the then effective Borrowing
Base or (II) $300,000,000, or

 

(ii) amend, modify, waive or otherwise change, consent or agree to any
amendment, supplement, modification, waiver or other change to, any of the terms
of the Senior Notes or any Senior Indenture if the effect thereof would be to

 

2

--------------------------------------------------------------------------------

 

(A) (I) shorten its maturity or average life if the existing maturity is prior
to the Maturity Date or (II) shorten its maturity to a date earlier than the
date that is ninety-one (91) days after the Maturity Date if its existing
maturity is after the Maturity Date,

 

(B) increase the amount of any payment of principal thereof or

 

(C) increase the rate or shorten any period for payment of interest thereon,

 

provided that the foregoing shall not prohibit the execution of supplemental
indentures to add guarantors if required by the terms of any Senior Indenture
provided such Person complies with Section 8.14(b).”

 

Section 3.                                                                  
Borrowing Base.

 

3.1                               As of the Amendment Effective Date (as defined
below), Lenders constituting the Super Majority Lenders and the Borrower agree
that the amount of the Borrowing Base shall be $850,000,000 and such Borrowing
Base shall remain in effect until the Borrowing Base is otherwise redetermined
or adjusted in accordance with the Credit Agreement.  This provision does not
limit the right of the parties to initiate interim redeterminations of the
Borrowing Base in accordance with Section 2.07(b) or further adjustments
pursuant to Section 2.07(e), Section 2.07(f), Section 8.13(c) or Section 9.13. 
This Section 3 constitutes the New Borrowing Base Notice in accordance with
Section 2.07(d).

 

3.2                               The Borrower and Lenders constituting the
Super Majority Lenders agree that an Interim Redetermination of the Borrowing
Base will occur on March 1, 2016 based upon the Reserve Report dated
December 31, 2015 which the Borrower agrees to deliver to the Administrative
Agent no later than February 1, 2016.

 

Section 4.                                                                  
Conditions Precedent.  This 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 “Amendment Effective
Date”):

 

4.1                               Amendment.  The Administrative Agent shall
have received a counterpart of this Amendment signed by the Borrower, the
Guarantors, and Lenders constituting the Super Majority Lenders.

 

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 Amendment Effective Date, including, to the extent invoiced,
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 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.

 

3

--------------------------------------------------------------------------------

 

The Administrative Agent is hereby authorized and directed to declare this
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 Amendment.

 

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

 

5.4                               Counterparts.  This 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 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 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 AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

5.7                               Severability.  Any provision of this 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

 

4

--------------------------------------------------------------------------------

 

prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction.

 

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

 

5.9                               Release.  The Borrower and each Guarantor, in
consideration of the Administrative Agent’s and the undersigned Lenders’
execution and delivery of this Amendment and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
unconditionally, freely, voluntarily and, after consultation with counsel and
becoming fully and adequately informed as to the relevant facts, circumstances
and consequences, releases, waives and forever discharges (and further agrees
not to allege, claim or pursue) any and all claims, rights, causes of action,
counterclaims or defenses of any kind whatsoever, in contract, in tort, in law
or in equity, whether known or unknown, direct or derivative, which the
Borrower, each Guarantor or any predecessor, successor or assign might otherwise
have or may have against the Administrative Agent, the Lenders, their present or
former subsidiaries and affiliates or any of the foregoing’s officers,
directors, employees, attorneys or other representatives or agents in each case
on account of any conduct, condition, act, omission, event, contract, liability,
obligation, demand, covenant, promise, indebtedness, claim, right, cause of
action, suit, damage, defense, circumstance or matter of any kind whatsoever
which existed, arose or occurred at any time prior to the Amendment Effective
Date relating to the Loan Documents, this Amendment and/or the transactions
contemplated thereby or hereby.  The foregoing release shall survive the
termination of the Loan Documents and this Amendment.

 

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

 

5

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, the parties hereto have caused this 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 — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

ADMINISTRATIVE AGENT AND LENDER:

JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent and Lender

 

 

 

 

By:

/s/ Darren Vanek

 

 

Name:

Darren Vanek

 

 

Title:

Authorized Signatory

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

WELLS FARGO BANK, N.A.,

 

as Lender

 

 

 

 

By:

/s/ Todd C. Fogle

 

 

Name:

Todd Fogle

 

 

Title:

Director

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

BMO HARRIS FINANCING, INC.,

 

as Lender

 

 

 

 

By:

/s/ James V. Ducote

 

 

Name:

James V. Ducote

 

 

Title:

Managing Director

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

BARCLAYS BANK PLC,

 

as Lender

 

 

 

 

By:

/s/ Luke Syme

 

 

Name:

Luke Syme

 

 

Title:

Assistant Vice President

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

SUNTRUST BANK,

 

as Lender

 

 

 

 

By:

/s/ Shannon Juhan

 

 

Name:

Shannon Juhan

 

 

Title:

Director

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

CAPITAL ONE, NATIONAL ASSOCIATION,

 

as Lender

 

 

 

 

By:

/s/ Victor Ponce de León

 

 

Name:

Victor Ponce de León

 

 

Title:

Senior Vice President

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

GOLDMAN SACHS BANK USA,

 

as Lender

 

 

 

 

By:

/s/ Jerry Li

 

 

Name:

Jerry Li

 

 

Title:

Authorized Signatory

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

ROYAL BANK OF CANADA,

 

as Lender

 

 

 

 

By:

/s/ Jay Sartain

 

 

Name:

Jay Sartain

 

 

Title:

Authorized Signatory

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

BANK OF AMERICA, N.A.,

 

as Lender

 

 

 

 

By:

/s/ Jordan Forester

 

 

Name:

Jordan Forester

 

 

Title:

Assistant Vice President

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

NATIXIS,

 

as Lender

 

 

 

 

By:

/s/ Stuart Murray

 

 

Name:

Stuart Murray

 

 

Title:

Managing Director

 

 

 

 

 

 

 

By:

/s/ Vikram Nath

 

 

Name:

Vikram Nath

 

 

Title:

Vice President

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

COMERICA BANK,

 

as Lender

 

 

 

 

By:

/s/ William Robinson

 

 

Name:

William Robinson

 

 

Title:

Senior Vice President

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

BNP PARIBAS

 

as Lender

 

 

 

 

By:

/s/ Juan Carlos Sandoval

 

 

Name:

Juan Carlos Sandoval

 

 

Title:

Director

 

 

 

 

 

 

 

By:

/s/ Sriram Chandrasekaran

 

 

Name:

Sriram Chandrasekaran

 

 

Title:

Director

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------

 

LENDER:

CREDIT SUISSE LOAN FUNDING, LLC,

 

as Lender

 

 

 

 

By:

/s/ Michael Wotanowski

 

 

Name:

Michael Wotanowski

 

 

Title:

Authorized Signatory

 

SIGNATURE PAGE — TWELFTH AMENDMENT

HALCÓN RESOURCES CORPORATION

 

--------------------------------------------------------------------------------