Exhibit 10.1

 

JPMORGAN CHASE BANK, N.A.

2200 Ross Avenue, 9th Floor

Mail Code TX1-2921

Dallas, Texas 75201

 

June 30, 2014

 

Via Overnight Delivery

 

USA Compression Partners, LLC

USAC Leasing, LLC

USA Compression Partners, LP

USAC Leasing 2, LLC

USAC OpCo 2, LLC

c/o Eric D. Long
Chief Executive Officer
301 Congress Avenue, Suite 450
Austin, Texas 78701
Fax:  (512) 473-2616

 

Re:  Limited Consent, Amendment and Subordination under the Credit Agreement (as
defined below)

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Fifth Amended and Restated Credit
Agreement, dated as of December 13, 2013 (as amended from time to time, the
“Credit Agreement”), among USA Compression Partners, LLC, a Delaware limited
liability company, as a borrower (“USA Compression Partners”) and USAC Leasing,
LLC, a Delaware limited liability company, as a borrower (“USAC Leasing”,
together with USA Compression Partners, the “Borrowers”), USA Compression
Partners, LP, a Delaware limited partnership, as a guarantor (“Holdings”), USAC
Leasing 2, LLC, a Texas limited liability company, as a guarantor (“USAC Leasing
2”), USAC OpCo 2, LLC, a Texas limited liability company, as a guarantor (“USAC
OpCo 2” and together with Holdings and USAC Leasing 2, collectively the
“Guarantors” and together with Borrowers, the “Loan Parties”), JPMorgan Chase
Bank, N.A., for itself, as Lender, and as agent for lenders (in such capacity,
“Agent”) and the other lenders signatory thereto (collectively, the “Lenders”). 
Unless the context otherwise requires, all capitalized terms used but not
defined herein shall have the meanings assigned to them in the Credit Agreement.

 

The Loan Parties have advised Agent and the Lenders that USA Compression
Partners and USAC Leasing intend to enter into that certain FMV Bargain Purchase
Option Grant Agreement with Superior Pipeline Company, L.L.C., an Oklahoma
limited liability company (“Superior Pipeline”) and Superior Pipeline Texas,
L.L.C., an Oklahoma limited liability company (“Superior Pipeline Texas” and
together with Superior Pipeline, the “Superior

 

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Parties”), dated as of the date hereof and in the form attached hereto as
Exhibit A (the “Superior Purchase Option Agreement”).  Pursuant to the Purchase
Option Agreement, (i) USA Compression Partners and USAC Leasing shall, among
other things, grant an irrevocable purchase option to the Superior Parties with
respect to those certain Compressor Packages described on Exhibit B hereto (the
“Subject Compressor Packages”) and (ii) the Superior Parties require that the
Lien of Agent, for the benefit of itself and the Lenders, with respect to the
Subject Compressor Packages be subordinated to the purchase option granted to
the Superior Parties in the Superior Purchase Option Agreement.

 

The Loan Parties hereby request that (i) Agent consent to the sale of the
Subject Compressor Packages in accordance with Section 6.20 of the Credit
Agreement, (ii) Agent and the Required Lenders consent to the Lien of the
Superior Parties with respect to the Subject Compressor Packages, (iii) Agent
and the Required Lenders consent to the subordination of the Lien of the Agent,
for the benefit of itself and the Lenders, to the Lien and purchase option of
the Superior Parties with respect to the Subject Compressor Packages, (iv) Agent
and the Required Lenders agree to release the Lien of the Agent, for the benefit
of itself and the Lenders, upon the exercise by any Superior Party of the
purchase option set forth in the Superior Purchase Option Agreement with respect
to a specific Subject Compressor Package and (v) Agent and the Required Lenders
agree to certain amendments to the Credit Agreement regarding such consents and
subordination.

 

Subject, in each case, to the satisfaction of the conditions listed below:

 

1.                                     
Consents.                                           (i) Agent consents to the
sale of the Subject Compressor Packages in accordance with Section 6.20 of the
Credit Agreement, (ii) Agent and the Required Lenders consent to the Lien of the
Superior Parties with respect to the Subject Compressor Packages, (iii) Agent
and the Required Lenders consent to the subordination of the Lien of the Agent,
for the benefit of itself and the Lenders, to the Lien and purchase option of
the Superior Parties with respect to the Subject Compressor Packages, (iv) Agent
and the Required Lenders hereby subordinate any Lien they may have in and to the
Subject Compressor Packages pursuant to the Credit Agreement and the other Loan
Documents to the rights of the Superior Parties in the Subject Compressor
Packages that arise as a result of the Superior Purchase Option Agreement and
(v) Agent and the Required Lenders agree that, upon the exercise by any Superior
Party of the purchase option set forth in the Superior Purchase Option Agreement
with respect to a specific Subject Compressor Package and without any other
action by Agent or any Lender, the Lien of Agent, for the benefit of itself and
the Lenders, in such Subject Compressor Package shall be automatically released,
provided, that the Loan Parties hereby agree that (x) the Lien of Agent, for the
benefit of itself and the Lenders, shall continue in the proceeds of the sale of
such Subject Compressor Package and (y) the Loan Parties shall, if applicable,
deliver such proceeds directly to Agent in accordance with Section 6.20(b)(i) of
the Credit Agreement.

 

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2.                                      Amendments.

 

a.                                      The following definitions are hereby
added to Article I of the Credit Agreement where alphabetically appropriate:

 

“Consent Agreement” shall mean that certain letter agreement dated as of
June 30, 2014, by and among the Loan Parties, the Administrative Agent and the
Lenders party thereto.

 

“Subject Compressor Packages” means those certain Compressor Packages described
on Exhibit B to the Consent Agreement.

 

“Superior Parties” means, collectively, Superior Pipeline Company, L.L.C., an
Oklahoma limited liability company and Superior Pipeline Texas, L.L.C., an
Oklahoma limited liability company.

 

“Superior Purchase Option Agreement” means that certain FMV Bargain Purchase
Option Grant Agreement among the Borrowers and the Superior Parties, dated as of
June 30, 2014, as in effect on such date.

 

b.                                      Section 5.4 of the Credit Agreement is
hereby amended (without further act required of any person) by adding the phrase
“or the Consent Agreement” at the end of clause (a) thereof.

 

c.                                       Section 6.22 of the Credit Agreement is
hereby amended (without further act required of any person) by deleting the word
“and” immediately before clause (x), replacing the “.” at the end of clause
(x) with “; and” and adding a new clause (xi) thereto as follows:

 

“(xi)                        the Liens and purchase option of the Superior
Parties with respect to the Subject Compressor Packages granted pursuant to the
Superior Purchase Option Agreement, it being acknowledged and agreed that the
Lien in favor of Agent, for the benefit of itself and the Lenders, to secure the
Secured Obligations with respect to the Subject Compressor Packages shall be
subordinated to such Liens and purchase option of the Superior Parties pursuant
to the Consent Agreement.”

 

d.                                      Section 6.33 of the Credit Agreement is
hereby amended (without further act required of any person) by replacing the
word “Borrower” at the beginning thereof with the phrase “Other than the
contracts for the provision of compression services that are subject to the
Superior Purchase Option Agreement, Borrower”.

 

3.                                      Acknowledgment.  The Loan Parties
acknowledge and agree that, as of the effective date of the Superior Purchase
Option Agreement, the Subject Compressor Packages

 

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shall no longer constitute Eligible Compression Units or Eligible Inventory and
shall not be included in the Borrowing Base.

 

The effectiveness of the consents, amendments and other agreements set forth
above are subject to the following conditions: (a) the Loan Parties shall
deliver the certificate required pursuant to Section 6.20(b) of the Credit
Agreement with respect to the sale of the Subject Compressor Packages pursuant
to the Superior Purchase Option Agreement, (b) after giving effect to this
letter, no Default shall have occurred and be continuing, (c) after giving
effect to this letter, the representations and warranties contained in the
Credit Agreement and the other Loan Documents shall be true and correct in all
material respects (and in all respects if qualified by materiality), except to
the extent that such representations and warranties related to an earlier date
and (d) each Lender that has delivered a signature page hereto to Agent’s
counsel on or prior to 5:00 p.m. Central time on June 27, 2014 shall have been
paid a consent fee of $2,500 from the Loan Parties, which consent fee shall be
fully earned and non-refundable as of the date Agent has received signatures to
this letter from the Required Lenders.

 

This letter and the consents, amendments and subordination contained herein are
limited to the matters set forth above.  Except as specifically set forth
herein, nothing in this letter shall be construed as waiving or modifying any
other term or condition of the Credit Agreement, which remains in full force and
effect in accordance with the original terms thereof (as amended hereby). 
Furthermore, this letter shall not be deemed a waiver of, or in prejudice to,
any and all other rights, powers or remedies of the Lenders and Agent pursuant
to any Loan Document, any applicable laws or any existing or future Default or
Event of Default.  The Borrowers shall pay all costs and expenses of Agent
incurred in connection with the consideration and granting of this consent,
including, without limitation, the reasonable fees of the Agent’s counsel.

 

Each Loan Party hereby represents and warrants to Agent and Lenders that the
execution, delivery and performance of this letter and any and all other Loan
Documents executed and/or delivered in connection herewith have been authorized
by all requisite limited liability company or limited partnership action (as
applicable) on the part of such Loan Party and will not violate the
certificate/articles of formation or the partnership agreement or other charter
or organizational documents (as applicable) of such Loan Party.

 

Each of the Loan Documents, including the Credit Agreement and any and all other
agreements, documents or instruments now or hereafter executed and delivered
pursuant to the terms hereof or pursuant to the terms of the Credit Agreement as
amended hereby, is hereby amended so that any reference in such Loan Documents
to the Credit Agreement shall mean a reference to the Credit Agreement, as
amended hereby.  Each of the Loan Parties acknowledges and agrees that its
obligations under this letter and the Credit Agreement, as amended hereby,
constitute “Obligations” as defined in the Credit Agreement and as used in the
Loan Documents.

 

Please indicate your agreement and acceptance of the terms hereof by signing and
returning the enclosed copy of the letter to the undersigned on or before
June 30, 2014.

 

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This letter may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which
counterparts taken together shall constitute one and the same instrument.

 

This letter is binding upon and shall inure to the benefit of Agent, Lenders,
Loan Parties and their respective successors and assigns, except that no Loan
Party may assign or transfer any of its rights or obligations hereunder without
the prior written consent of each Lender.

 

EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE LOAN DOCUMENTS, IN ALL
RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS
LETTER AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND
CONSTRUED, AND ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO
THE CONFLICT OF LAWS PROVISIONS) OF THE STATE OF TEXAS, BUT GIVING EFFECT TO
FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

 

 [Remainder of page intentionally left blank; signature pages follow]

 

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Very truly yours,

 

 

 

JPMORGAN CHASE BANK, N.A.,

 

individually, as Lender and Agent

 

 

 

 

 

By:

/s/ J. Devin Mock

 

Name: J. Devin Mock

 

Title: Authorized Officer

 

 

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USA COMPRESSION PARTNERS, LLC,

 

a Delaware limited liability company

 

 

 

 

 

By:

/s/ Eric D. Long

 

Name:

Eric D. Long

 

Title:

President and Chief Executive Officer

 

 

 

 

 

USAC LEASING, LLC,

 

a Delaware limited liability company

 

 

 

 

 

By:

/s/ Eric D. Long

 

Name:

Eric D. Long

 

Title:

President and Chief Executive Officer

 

 

 

 

 

USA COMPRESSION PARTNERS, LP,

 

a Delaware limited partnership

 

 

 

By:

USA Compression GP, LLC,

 

 

its General Partner

 

 

 

 

 

By:

/s/ Eric D. Long

 

Name:

Eric D. Long

 

Title:

President and Chief Executive Officer

 

 

 

 

 

USA OPCO 2, LLC,

 

a Texas limited liability company

 

 

 

By:

 USA Compression Partners, LP,

 

 

its sole member

 

 

 

By:

USA Compression GP, LLC,

 

 

its General Partner

 

 

 

 

 

By:

/s/ Eric D. Long

 

Name:

Eric D. Long

 

Title:

President and Chief Executive Officer

 

 

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JPMORGAN CHASE BANK, N.A.,

 

as Agent and a Lender

 

 

 

 

 

By:

/s/ J. Devin Mock

 

Name:

J. Devin Mock

 

Title:

Authorized Officer

 

[Signature Page to Limited Consent and Subordination]

 

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REGIONS BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Dennis M. Hansen

 

Name:

Dennis M. Hansen

 

Title:

Senior Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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WELLS FARGO BANK, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ T. Alan Smith

 

Name:

T. Alan Smith

 

Title:

Managing Director

 

[Signature Page to Limited Consent and Subordination]

 

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BARCLAYS BANK PLC,

 

as a Lender

 

 

 

 

 

By:

/s/ Nina Guinchard

 

Name:

Nina Guinchard

 

Title:

Assistant Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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ROYAL BANK OF CANADA,

 

as a Lender

 

 

 

 

 

By:

/s/ Kristan Spivey

 

Name:

Kristan Spivey

 

Title:

Authorized Signatory

 

[Signature Page to Limited Consent and Subordination]

 

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THE BANK OF NOVA SCOTIA,

 

as a Lender

 

 

 

 

 

By:

/s/ Mark Sparrow

 

Name:

Mark Sparrow

 

Title:

Director

 

[Signature Page to Limited Consent and Subordination]

 

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UBS AG, STAMFORD BRANCH,

 

as a Lender

 

 

 

 

 

By:

/s/ Lana Gifas

 

Name:

Lana Gifas

 

Title:

Director

 

 

 

 

 

 

 

By:

/s/ Jennifer Anderson

 

Name:

Jennifer Anderson

 

Title:

Associate Director

 

[Signature Page to Limited Consent and Subordination]

 

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UNION BANK, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ Albert R. Joseph

 

Name:

Albert R. Joseph

 

Title:

Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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PNC BANK, NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

By:

/s/ Jeffrey Marchetti

 

Name:

Jeffrey Marchetti

 

Title:

Assistant Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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SUNTRUST BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Christopher M. Waterstreet

 

Name:

Christopher M. Waterstreet

 

Title:

Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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COMERICA BANK,

 

as a Lender

 

 

 

 

 

By:

/s/ Bradley Kuhn

 

Name:

Bradley Kuhn

 

Title:

Assistant Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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CAPITAL ONE BUSINESS CREDIT CORP.,

 

as a Lender

 

 

 

 

 

By:

/s/ Ron Walker

 

Name:

Ron Walker

 

Title:

Senior Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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RAYMOND JAMES BANK, N.A.,

 

as a Lender

 

 

 

 

 

By:

/s/ Scott G. Axelrod

 

Name:

Scott G. Axelrod

 

Title:

Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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RB INTERNATIONAL FINANCE (USA) LLC,

 

as a Lender

 

 

 

 

 

By:

/s/ Peter Armieri

 

Name:

Peter Armieri

 

Title:

Vice President

 

 

 

 

By:

/s/ Steven VanSteenbergen

 

Name:

Steven VanSteenbergen

 

Title:

Vice President

 

[Signature Page to Limited Consent and Subordination]

 

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GOLDMAN SACHS BANK USA,

 

as a Lender

 

 

 

 

 

By:

/s/ Michelle Latzoni

 

Name:

Michelle Latzoni

 

Title:

Authorized Signatory

 

[Signature Page to Limited Consent and Subordination]

 

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