Exhibit 10.1

 

March 3, 2015

 

The Administrative Agent and the Banks under the Credit Agreement

 

Re:     Fourth Amended and Restated Credit Agreement dated as of December 31,
2013 among Laredo Petroleum, Inc., as Borrower, Wells Fargo Bank, N.A., as
Administrative Agent, and the Banks and other Persons a party thereto (as
amended to date, the “Agreement”; capitalized terms used and not defined in this
letter have the meanings given to such terms in the Agreement). 

 

Ladies and Gentlemen:

 

As set forth in more detail in the press release dated as of March 2, 2015 and
attached hereto as Exhibit A, the Borrower, subject to customary closing
conditions, has sold 60,000,000 shares (69,000,000 shares if the Borrower’s
underwriter exercises in full its option to acquire additional shares) of its
common stock for $11.05 per share resulting in approximately $663,000,000 of
gross proceeds (approximately $762,450,000 if such underwriter exercises such
option in full; in each case before underwriter’s fees and estimated expenses;
the actual amount of net proceeds, after deduction of underwriter’s fees and
actual expenses, the “Net Proceeds”).

 

The Borrower intends to apply Net Proceeds in an aggregate amount up to
$350,000,000, including Net Proceeds applied to the repayment in full of the
outstanding principal balance of Loans and (subject to the terms and conditions
of the Agreement) reborrowed as Borrowings under the Agreement, to call, make
and offer to make an optional or voluntary Redemption of or otherwise optionally
or voluntarily Redeem a portion of its outstanding 9 ½% Senior Notes due 2019
(the “Senior Note Redemption”). The Senior Note Redemption may take place in
conjunction with the issuance of Permitted Senior Debt in accordance with
Section 9.1, Section 9.13 and the other terms and conditions of the Agreement to
effect a Redemption and refinancing of some or all of any other of the
Borrower’s 9 ½% Senior Notes due 2019.

 

The Senior Note Redemption would otherwise not be permitted by Section 9.13 of
the Agreement and the Borrower hereby requests a limited waiver of Section 9.13
of the Agreement (the “Waiver”) to permit the Senior Note Redemption, subject to
the terms and conditions of this letter (collectively, this “Waiver Letter”).

 

In connection herewith, each Credit Party hereby affirms (a) that as of the date
hereof, all of the representations and warranties contained in each Loan Paper
to which such Credit Party is a party are true and correct in all material
respects as though made on and as of the date hereof (unless made as of a
specific earlier date, in which case, was true as of such date), (b) no Defaults
exist under the Loan Papers or will, after giving effect to the Waiver, this
Waiver Letter and the Senior Note Redemption, exist under the Loan Papers and
(c) no Material Adverse Change has occurred.

 

Each of the Credit Parties hereby expressly (a) acknowledges the terms of this
Waiver Letter, (b) ratifies and affirms its obligations under the Facility
Guaranty and the other Loan Papers to which it is a party, (c) acknowledges,
renews and extends its continued liability under

 

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the Facility Guaranty and the other Loan Papers to which it is a party (in each
case, as amended hereby), (d) agrees that its guarantee under the Facility
Guaranty and the other Loan Papers (in each case, as amended hereby) to which it
is a party remains in full force and effect with respect to the Obligations, as
amended hereby, (e) represents and warrants that (i) the execution, delivery and
performance of this Waiver Letter has been duly authorized by all necessary
corporate or company action of the Credit Parties, (ii) this Waiver Letter
constitutes a valid and binding agreement of the Credit Parties, and (iii) this
Waiver Letter is enforceable against each Credit Party in accordance with its
terms except as (A) the enforceability thereof may be limited by bankruptcy,
insolvency or similar Laws affecting creditors’ rights generally, and (B) the
availability of equitable remedies may be limited by equitable principles of
general applicability, and (f) acknowledges and confirms that the Waiver
contemplated hereby shall not limit or impair any Liens securing the
Obligations, each of which are hereby ratified, affirmed and extended to secure
the Obligations after giving effect to this Waiver Letter.

 

The Borrower agrees to pay or reimburse the Administrative Agent for all of its
out-of-pocket costs and expenses incurred in connection with this Waiver Letter,
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.

 

This Waiver Letter (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.  This Waiver Letter shall constitute a “Loan
Paper” for all purposes under the other Loan Papers.  Section 14.13 of the
Credit Agreement is hereby incorporated by reference, mutatis mutandis.

 

The undersigned Banks hereby agree to and grant the Waiver solely as it relates
to the Senior Note Redemption so long as (a) the Senior Note Redemption occurs
on or prior to May 1, 2015, (b) the maximum aggregate amount of Net Proceeds,
including Net Proceeds applied to the repayment in full of the outstanding
principal balance of Loans and reborrowed as Borrowings under the Agreement,
used to Redeem a portion of the 9 ½% Senior Notes due 2019 as part of the Senior
Note Redemption shall not exceed $350,000,000 and (c) the Borrower shall have at
any time during the period from the date hereof through the closing date of the
Senior Note Redemption (and without permanent reduction to zero of the Aggregate
Maximum Credit Amount and the Commitments or requirement that there be no Loans
outstanding for a particular period of time thereafter) repaid 100% of the
principal amount of all Loans outstanding under the Agreement.  Nothing
contained in this Waiver Letter shall be deemed a consent to, or waiver of, any
action or inaction of the Borrower or any other Credit Party which constitutes
(or would constitute) a violation of any provision of the Agreement or any other
Loan Paper, or which results (or would result) in a Default or Event of Default
under the Agreement or any other Loan Paper, nor shall this Waiver Letter
constitute a course of conduct or dealing among the parties.  The Administrative
Agent and the Banks shall have no obligation to grant any future waivers,
consents or amendments with respect to the Agreement or any other Loan Paper.

 

The Waiver and this Waiver Letter shall become effective upon receipt of
executed counterparts of this Waiver Letter from the Credit Parties and the
Required Banks.  The Administrative Agent shall notify the Borrower and the
Banks of the effectiveness of this Waiver

 

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Letter, and such notice shall be conclusive and binding.  This Waiver Letter 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 Waiver Letter by
facsimile or electronic (e.g. pdf) transmission shall be effective as delivery
of a manually executed counterpart thereof.

 

Please evidence your agreement to each of the provisions of this Waiver Letter
by executing a counterpart hereof where indicated and returning a fully executed
counterpart to Damien Reynolds, counsel for Administrative Agent, via facsimile
number (214) 999-7928 (or via e-mail to dreynolds@velaw.com), with twenty-two
(22) originals delivered to Damien Reynolds c/o Vinson & Elkins L.L.P., 2001
Ross Avenue, Suite 3700, Dallas, Texas 75201.

 

[Signature Pages Follow]

 

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

 

BORROWER:

LAREDO PETROLEUM, INC.

 

 

 

 

 

By:

/s/ Richard C. Buterbaugh

 

Name:

Richard C. Buterbaugh

 

Title:

Executive V.P. & Chief Financial Officer

 

 

 

 

GUARANTOR:

LAREDO MIDSTREAM SERVICES, LLC

 

 

 

By:

/s/ Richard C. Buterbaugh

 

Name:

Richard C. Buterbaugh

 

Title:

Executive V.P. & Chief Financial Officer

 

 

 

 

GUARANTOR:

GARDEN CITY MINERALS, LLC

 

 

 

By:

/s/ Richard C. Buterbaugh

 

Name:

Richard C. Buterbaugh

 

Title:

Executive V.P. & Chief Financial Officer

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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WELLS FARGO BANK, N.A.,
as Administrative Agent and as a Bank

 

 

 

By:

/s/ Jason Hicks

 

Name:

Jason Hicks

 

Title:

Managing Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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BANK OF AMERICA, N.A., as a Bank

 

 

 

 

 

By:

/s/ Michael J. Clayborne

 

Name:

Michael J. Clayborne

 

Title:

Vice President

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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JPMORGAN CHASE BANK, N.A., as a Bank

 

 

 

 

 

By:

/s/ Michael A. Kamauf

 

Name:

Michael A. Kamuf

 

Title:

Authorized Officer

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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SOCIETE GENERALE, as a Bank

 

 

 

 

 

By:

/s/ Elena Robciuc

 

Name:

Elena Robciuc

 

Title:

Managing Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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MUFG UNION BANK, N.A. f/k/a UNION BANK, N.A., as a Bank

 

 

 

 

 

By:

/s/ Tina M. Snouffer

 

Name:

Tina M. Snouffer

 

Title:

Managing Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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BMO HARRIS FINANCING, INC., as a Bank

 

 

 

 

 

By:

/s/ Gumaro Tijerina

 

Name:

Gumaro Tijerina

 

Title:

Managing Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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THE BANK OF NOVA SCOTIA, as a Bank

 

 

 

 

 

By:

/s/ Mark Sparrow

 

Name:

Mark Sparrow

 

Title:

Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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CAPITAL ONE, NATIONAL ASSOCIATION, as a Bank

 

 

 

 

 

By:

/s/ Michael Higgins

 

Name:

Michael Higgins

 

Title:

Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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COMPASS BANK, as a Bank

 

 

 

 

 

By:

/s/ Ann Van Wagener

 

Name:

Ann Van Wagener

 

Title:

Senior Vice President

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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BOKF, NA dba BANK OF OKLAHOMA, as a Bank

 

 

 

 

 

By:

/s/ Pam P. Schloeder

 

Name:

Pam P. Schloeder

 

Title:

Senior Vice President

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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BRANCH BANKING AND TRUST COMPANY, as a Bank

 

 

 

 

 

 

 

By:

/s/ Kelly Graham

 

Name:

Kelly Graham

 

Title:

Vice President

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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COMERICA BANK, as a Bank

 

 

 

 

 

 

 

By:

/s/ Mark Fuqua

 

Name:

Mark Fuqua

 

Title:

Executive Vice President

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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GOLDMAN SACHS BANK USA, as a Bank

 

 

 

 

 

 

 

By:

/s/ Jamie Minieri

 

Name:

Jamie Minieri

 

Title:

Authorized Signatory

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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BARCLAYS BANK PLC, as a Bank

 

 

 

 

 

 

 

By:

/s/ Luke Syme

 

Name:

Luke Syme

 

Title:

Assistant Vice President

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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CITIBANK, N.A., as a Bank

 

 

 

 

 

 

 

By:

/s/ M. Jarrod Bourgeois

 

Name:

M. Jarrod Bourgeois

 

Title:

Senior Vice President

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Bank

 

 

 

 

 

 

 

By:

/s/ Doreen Barr

 

Name:

Doreen Barr

 

Title:

Authorized Signatory

 

 

 

 

 

 

 

By:

/s/ Samuel Miller

 

Name:

Samuel Miller

 

Title:

Authorized Signatory

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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ING CAPITAL LLC, as a Bank

 

 

 

 

 

 

 

By:

/s/ Scott Lamoreaux

 

Name:

Scott Lamoreaux

 

Title:

Director

 

 

 

 

 

 

 

By:

/s/ Charles Hall

 

Name:

Charles Hall

 

Title:

Managing Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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SUNTRUST BANK, as a Bank

 

 

 

 

 

 

 

By:

/s/ Andrew Johnson

 

Name:

Andrew Johnson

 

Title:

Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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SCOTIABANC INC., as a Bank

 

 

 

 

 

 

 

By:

/s/ J.F. Todd

 

Name:

J.F. Todd

 

Title:

Managing Director

 

SIGNATURE PAGE TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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EXHIBIT A

 

Press Release dated as of March 2, 2015

 

[See Attached.]

 

EXHIBIT A TO MARCH 2015 WAIVER LETTER TO

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

 

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