Exhibit 10.1

Execution Version

 

 

 

SECOND AMENDMENT

TO

THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of August 31, 2015

Among

SUPERIOR ENERGY SERVICES, INC.,

as Parent,

SESI, L.L.C.,

as the Borrower,

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

and

the Lenders Party Hereto

 

 

 

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SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT

THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this
“Second Amendment”) dated as of August 31, 2015 is among Superior Energy
Services, Inc., a corporation duly formed and existing under the laws of the
State of Delaware (the “Parent”), SESI, L.L.C., a limited liability company duly
formed and existing under the laws of the State of Delaware (the “Borrower”,
together with the Parent, the “Obligors”), each of the Lenders, the Issuing
Lenders and the Swingline Lender (collectively, the “Lenders”), 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. The Borrower, the Parent, the Administrative Agent and the Lenders are
parties to that certain Third Amended and Restated Credit Agreement dated as of
February 7, 2012 (the “Credit Agreement”), pursuant to which the Lenders have
made certain credit available to and on behalf of the Borrower.

B. The Borrower has requested and the Administrative Agent and the Lenders have
agreed to make certain changes to the Credit Agreement.

C. NOW, THEREFORE, to induce the Administrative Agent and the Lenders party
hereto to enter into this Second 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 Credit Agreement, as
amended by this Second Amendment. Unless otherwise indicated, all section
references in this Second Amendment refer to sections of the Credit Agreement.

Section 2. Amendments to Credit Agreement.

2.1. Amendments to Section 1.1.

(a) The following definitions are hereby added where alphabetically appropriate:

“Anti-Corruption Laws” means all laws, rules, and regulations of any
jurisdiction applicable to the Borrower or any of its Subsidiaries from time to
time concerning or relating to bribery or corruption

“Interpolated Rate” means, at any time, for any Eurodollar Interest Period, the
rate per annum (rounded to the same number of decimal places as the LIBO Screen
Rate) determined by the Administrative Agent (which determination shall be
conclusive and binding absent manifest error) to be equal to the rate that
results from interpolating on a linear basis between: (a) the LIBO Screen Rate
for the longest period (for which the LIBO Screen Rate is available) that is
shorter than the Impacted Interest Period; and (b) the LIBO Screen Rate for the
shortest period (for which that LIBO Screen Rate is available) that exceeds the
Impacted Interest Period, in each case, at such time.

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“LIBO Screen Rate” has the meaning assigned to it in the definition of
“Eurodollar Base Rate.”

“Sanctioned Country” means, at any time, a country, region or territory which is
itself the subject or target of any Sanctions (at the time of this Agreement,
Crimea, Cuba, Iran, North Korea, Sudan and Syria).

“Sanctioned Person” means, at any time, (a) any Person listed in any
Sanctions-related list of designated Persons maintained by the Office of Foreign
Assets Control of the U.S. Department of the Treasury, the U.S. Department of
State, or by the United Nations Security Council, the European Union or any
European Union member state, (b) any Person operating, organized or resident in
a Sanctioned Country or (c) any Person owned or controlled by any such Person or
Persons described in the foregoing clauses (a) or (b).

“Sanctions” means all economic or financial sanctions or trade embargoes
imposed, administered or enforced from time to time by (a) the U.S. government,
including those administered by the Office of Foreign Assets Control of the U.S.
Department of the Treasury or the U.S. Department of State, or (b) the United
Nations Security Council, the European Union, any European Union member state or
Her Majesty’s Treasury of the United Kingdom.

“Second Amendment” means that certain Second Amendment to Third Amended and
Restated Credit Agreement, dated as of August 31, 2015, among the Loan Parties,
the Administrative Agent and the Lenders.

(b) The following defined terms are hereby amended to read as follows:

“Agreement” means this Third Amended and Restated Credit Agreement, as amended
by the First Amendment and the Second Amendment and as the same may be further
amended or supplemented from time to time.

“Eurodollar Base Rate” means, with respect to any Eurodollar Advance and
relative to any Eurodollar Interest Period, the London interbank offered rate as
administered by ICE Benchmark Administration (or any other Person that takes
over the administration of such rate for U.S. Dollars for a period equal in
length to such Eurodollar Interest Period) as displayed on pages LIBOR01 or
LIBOR02 of the Reuters screen that displays such rate (or, in the event such
rate does not appear on a Reuters page or screen, on any successor or substitute
page on such screen that displays such rate, or on the appropriate page of such
other information service as selected by the Administrative Agent in its
reasonable discretion that publishes such rate from time to time as an
authorized information vendor for the purpose of displaying such rates; in each
case the “LIBO Screen Rate”) at approximately 11:00 a.m., London time, two
Business Days prior to the commencement of such Eurodollar Interest Period;
provided that if the LIBO Screen Rate shall be less than zero, such rate shall
be deemed to be zero for the purposes of this Agreement; provided further that
if the LIBO Screen Rate shall not be available at such time for such Eurodollar
Interest Period (an “Impacted Interest Period”) with respect to U.S. Dollars
then the Eurodollar Base Rate shall be the Interpolated Rate; provided that if
any Interpolated Rate shall be less than zero, such rate shall be deemed to be
zero for purposes of this Agreement.”

 

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“Federal Funds Effective Rate” means, for any day, an interest rate per annum
equal to the weighted average (rounded upwards, if necessary, to the next 1/100
of 1%) of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers on such day, as
published for such day (or, if such day is not a Business Day, for the
immediately preceding Business Day) by the Federal Reserve Bank of New York, or,
if such rate is not so published for any day which is a Business Day, the
average of the quotations at approximately 10:00 a.m. (Chicago time) on such day
on such transactions received by the Administrative Agent from three Federal
funds brokers of recognized standing selected by the Administrative Agent in its
sole discretion; provided, that, if the Federal Funds Effective Rate shall be
less than zero, such rate shall be deemed to be zero for purposes of this
Agreement.

2.2. Amendment to Article V. Article V is hereby amended to add the following
Section 5.18 thereto:

“5.18 Anti-Corruption Laws and Sanctions. The Borrower has implemented and
maintain in effect policies and procedures designed to ensure compliance by the
Borrower, its Subsidiaries and their respective directors, officers, employees
and agents with Anti-Corruption Laws and applicable Sanctions, and the Borrower,
its Subsidiaries and their respective officers and employees and to the
knowledge of the Borrower, its directors and agents, are in compliance with
Anti-Corruption Laws and applicable Sanctions in all material respects. None of
(a) the Borrower, any Subsidiary or to the knowledge of the Borrower or such
Subsidiary any of their respective directors, officers or employees, or (b) to
the knowledge of the Borrower, any agent of the Borrower or any Subsidiary that
will act in any capacity in connection with or benefit from the credit facility
established hereby, is a Sanctioned Person. No Loan or Letter of Credit, use of
proceeds or other transaction contemplated by this Agreement will violate any
Anti-Corruption Law or applicable Sanctions.”

2.3. Amendment to Section 6.2. Section 6.2 is hereby amended by adding the
following sentence to the end thereto:

“The Borrower will not request any Advance or Letter of Credit, and the Borrower
shall not use, and shall procure that its Subsidiaries and its or their
respective directors, officers, employees and agents shall not use, the proceeds
of any Advance or Letter of Credit (A) in furtherance of an offer, payment,
promise to pay, or authorization of the payment or giving of money, or anything
else of value, to any Person in violation of any Anti-Corruption Laws, (B) for
the purpose of funding, financing or facilitating any activities, business or
transaction of or with any Sanctioned Person, or in any Sanctioned Country, to
the extent such activities, businesses or transaction would be prohibited by
Sanctions if conducted by a corporation incorporated in the United States, or
(C) in any manner that would result in the violation of any Sanctions applicable
to any party hereto.”

2.4. Amendment to Section 6.7. Section 6.7 is hereby amended to add the
following clause (iii) to the end thereto:

“(iii) The Borrower will maintain in effect and enforce policies and procedures
designed to ensure compliance by the Borrower, its Subsidiaries and their
respective directors, officers, employees and agents with Anti-Corruption Laws
and applicable Sanctions.”

2.5. Amendment to Section 6.18.1. Section 6.18.1 is hereby amended to replace
the phrase “3.00 to 1.00” with the phrase “4.50 to 1.00”.

 

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2.6. Amendment to Section 6.18.2. Section 6.18.2 is hereby amended to replace
the phrase “3.65 to 1.00” with the phrase “5.00 to 1.00”.

2.7. Amendment to Section 9.11. The first paragraph of Section 9.11 is hereby
amended to (a) replace the words immediately before the first proviso with the
phrase “Each of the Administrative Agent and each Lender agrees to keep
confidential all Information (as defined below);” and (b) to add the following
sentence to the end of such first paragraph:

““Information” means all information received from a Loan Party relating to the
Loan Parties, their Subsidiaries or their respective businesses, other than any
such information that is available to the Administrative Agent, any Issuing
Lender or any Lender on a non-confidential basis prior to disclosure by a Loan
Party and other than information pertaining to this Agreement routinely provided
by arrangers to data service providers, including league table providers, that
serve the lending industry; provided that in the case of information received
from a Loan Party after the date hereof, such information is clearly identified
at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section 9.11 shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.”

Section 3. Conditions Precedent. This Second Amendment shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 9.12 of the Credit Agreement) (such date,
the “Amendment Effective Date”):

3.1. The Administrative Agent shall have received from the Obligors and the
Required Lenders, counterparts (in such number as may be requested by the
Administrative Agent) of this Second Amendment signed on behalf of such Person.

3.2. The Administrative Agent and the Lenders shall have received all fees and
amounts due and payable on or prior to the Amendment Effective Date, including,
to the extent invoiced, reimbursement or payment of all documented out-of-pocket
expenses required to be reimbursed or paid by the Borrower under the Credit
Agreement.

3.3. No Default or Event of Default shall have occurred and be continuing as of
the date hereof, after giving effect to the terms of this Second Amendment.

The Administrative Agent is hereby authorized and directed to declare this
Second 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 3 or the waiver of such conditions as
permitted hereby. Such declaration shall be final, conclusive and binding upon
all parties to the Credit Agreement for all purposes.

Section 4. Miscellaneous.

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

4.2. Ratification and Affirmation; Representations and Warranties. Each Obligor
hereby (a) acknowledges the terms of this Second 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, notwithstanding the amendments contained
herein; and (c) represents and

 

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warrants to the Lenders that as of the date hereof, after giving effect to the
terms of this Second 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 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 and (ii) no Default or Event of Default has occurred and
is continuing.

4.3. No Waiver; Loan Document. The execution, delivery and effectiveness of this
Second Amendment shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy of any Lender or the Administrative Agent
under any of the Loan Documents, nor constitute a waiver of any provision of any
of the Loan Documents. On and after the Amendment Effective Date, this Second
Amendment shall for all purposes constitute a Loan Document.

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

4.5. NO ORAL AGREEMENT. THIS SECOND 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. AS OF THE
DATE OF THIS SECOND AMENDMENT, THERE ARE NO ORAL AGREEMENTS BETWEEN THE PARTIES.

4.6. GOVERNING LAW. THIS SECOND 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.

[SIGNATURES BEGIN NEXT PAGE]

 

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

 

BORROWER:       SESI, L.L.C.       By:  

/s/ Robert S. Taylor

      Name:   Robert S. Taylor       Title:  
Executive Vice President, Chief Financial Officer and Treasurer PARENT:      
SUPERIOR ENERGY SERVICES, INC.       By:  

/s/ Robert S. Taylor

      Name:   Robert S. Taylor       Title:  
Executive Vice President, Chief Financial Officer and Treasurer

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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ADMINISTRATIVE AGENT, ISSUING

LENDER AND LENDER:

      JPMORGAN CHASE BANK, N.A.       By:  

/s/ Darren Vanek

      Name:   Darren Vanek       Title:   Executive Director

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       BANK OF AMERICA, N.A.       By:  

/s/ Tyler Ellis

      Name:   Tyler Ellis       Title:   Vice President

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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ISSUING LENDER, SWING LINE LENDER

AND LENDER:

  WELLS FARGO BANK, N.A.       By:  

/s/ Corbin Womac

      Name:   Corbin Womac       Title:   Director

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       CAPITAL ONE, NATIONAL ASSOCIATION       By:  

/s/ William P. Harrington

      Name:   William P. Harrington       Title:   EVP

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       ROYAL BANK OF CANADA       By:  

/s/ Jay T. Sartain

      Name:   Jay T. Sartain       Title:   Authorized Signatory

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       THE BANK OF NOVA SCOTIA       By:  

/s/ J. Frazell

      Name:   J. Frazell       Title:   Director

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       CITIBANK, N.A.       By:  

/s/ Eamon Baqui

      Name:   Eamon Baqui       Title:   Vice President

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       COMERICA BANK       By:  

/s/ Gary Culbertson

      Name:   Gary Culbertson       Title:   Vice President

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       HSBC BANK USA, N.A.       By:  

/s/ Koby West

      Name:   Koby West       Title:   Vice President

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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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/ William M. Reid

      Name:   William M. Reid       Title:   Authorized Signatory

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       WHITNEY BANK       By:  

/s/ Hollie L. Ericksen

      Name:   Hollie L. Ericksen       Title:   Senior Vice President

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       PNC BANK, NATIONAL ASSOCIATION       By:  

/s/ Jonathan Luchansky

      Name:   Jonathan Luchansky       Title:   Vice President

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       COMPASS BANK       By:  

/s/ Frank Carvelli

      Name:   Frank Carvelli       Title:   Senior Vice President

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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LENDER:       STANDARD CHARTERED BANK       By:  

/s/ Pramita Saha

      Name:   Pramita Saha       Title:   Executive Director       By:  

/s/ Hsing H. Huang

      Name:   Hsing H. Huang       Title:  

Associate Director

Standard Chartered Bank NY

Signature Page to Second Amendment to

Third Amended and Restated Credit Agreement

 

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