Exhibit 10.1

 

 

Execution Version

 

FIRST AMENDMENT TO
THIRD AMENDED AND RESTATED CREDIT AGREEMENT

Dated May 8, 2017

Among

RESOLUTE ENERGY CORPORATION,
as Borrower,

CERTAIN OF ITS SUBSIDIARIES,
as Guarantors,

BANK OF MONTREAL,
as Administrative Agent,

CAPITAL ONE, NATIONAL ASSOCIATION,
as Syndication Agent,

BARCLAYS BANK PLC,

ING CAPITAL LLC.

and
SUNTRUST BANK

as Co-Documentation Agents

and

The Lenders Party Hereto

BMO CAPITAL MARKETS and CAPITAL ONE, NATIONAL ASSOCIATION,
as Joint Bookrunners and Co-Lead Arrangers

 

 

 

 

 

 

 

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THIS FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “First
Amendment”), dated as of May 8, 2017, is by and among Resolute Energy
Corporation, a Delaware corporation (the “Borrower”), certain of its
subsidiaries (collectively, the “Guarantors”), Bank of Montreal, as
Administrative Agent (the “Administrative Agent”), and the lenders party hereto
(the “Lenders”).

Recitals

WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the other
lenders party thereto entered into that certain Third Amended and Restated
Credit Agreement, dated as of February 17, 2017 (as amended, modified,
supplemented or restated from time to time, the “Credit Agreement”);

WHEREAS, the Borrower has requested that the Administrative Agent and the
Lenders amend the Credit Agreement as set forth herein; and

WHEREAS, subject to the satisfaction of the conditions set forth herein, the
Administrative Agent and the Lenders are willing to amend the Credit Agreement
as provided herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and in the Credit Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I
Definitions

Each capitalized term used in this First Amendment and not defined herein shall
have the meaning assigned to such term in the Credit Agreement. Unless otherwise
indicated, all section references in this First Amendment refer to sections of
the Credit Agreement.

ARTICLE II
Amendments

As of the First Amendment Effective Date, the Credit Agreement is amended as
follows:

Section 2.01Amendment to Section 9.01(b). Section 9.01(b) of the Credit
Agreement is hereby amended and restated in its entirety as follows:

“(b)Maximum Leverage Ratio.  The Loan Parties will not, as of the last day of
any fiscal quarter for which financial statements are required to have been
provided pursuant to Section 8.01(a) or (b), permit the ratio of (i) the total
Funded Debt as of such date to (ii) EBITDA of the Borrower and its Consolidated
Restricted Subsidiaries for the four (4) quarter period ending on such date to
be greater than the applicable ratio set forth below:

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Quarter Ending

Maximum Leverage Ratio

June 30, 2017

4:50:1.00

September 30, 2017

4.25:1.00

December 31, 2017 and thereafter

4.00:1.00

 

Section 2.02Amendment to Section 9.02(f)(ii). Section 9.02(f)(ii) of the Credit
Agreement is hereby amended by (a) replacing “$400,000,000” where it appears
therein with “$500,000,000”, and (b) replacing “4.00 to 1.00” where it appears
therein with “the applicable ratio for such period as set forth in Section
9.01(b)”.  

ARTICLE III
Conditions Precedent

Section 3.01The amendments set forth in Article II of this First Amendment shall
become effective on the first Business Day on which all of the following
conditions precedent shall have been satisfied (or waived in accordance with
Section 12.02 of the Credit Agreement) (the “First Amendment Effective Date”):

(a)The Administrative Agent shall have received from the Borrower, each of the
Guarantors and the requisite Lenders counterparts (in such number as may be
requested by the Administrative Agent) of this First Amendment signed on behalf
of such Persons.

(b)The Administrative Agent shall have received from the Borrower in immediately
available funds (i) all fees and amounts due and payable on or prior to the
First Amendment Effective Date (including, without limitation, the fees
described in the amendment request memorandum, dated April 28, 2017, from the
Borrower to the Lenders) and (ii) to the extent invoiced, reimbursement or
payment of all out-of-pocket expenses required to be reimbursed or paid by the
Borrower hereunder.

ARTICLE IV
Representations and Warranties

Each Loan Party hereby represents and warrants to each Lender that:

(a)Each of the representations and warranties made by it under the Credit
Agreement and each other Loan Document is, or will be, true and correct on and
as of the actual date of its execution of this First Amendment, as if made on
and as of such date, except for any representations and warranties made as of a
specified date, which are true and correct as of such specified date.

(b)Immediately after giving effect to this First Amendment, no Default has, or
will have, occurred and is, or will be, continuing.

(c)The execution, delivery and performance by it of this First Amendment and any
other Loan Documents executed in connection herewith have been duly authorized
by it.

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(d)Each of this First Amendment and any other Loan Document executed in
connection herewith constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.

(e)The execution, delivery and performance by it of each of this First Amendment
and any other Loan Document executed in connection herewith (i) do not require
any consent or approval of, registration or filing with, or any other action by,
any Governmental Authority or any other third Person (including shareholders or
any class of directors, whether interested or disinterested, of it or any other
Person), nor is any such consent, approval, registration, filing or other action
necessary for the validity or enforceability of this First Amendment or any such
Loan Document, except such as have been obtained or made and are in full force
and effect other than those third party approvals or consents which, if not made
or obtained, would not cause a Default hereunder, could not reasonably be
expected to have a Material Adverse Effect or do not have an adverse effect on
the enforceability of the Loan Documents, (ii) will not violate any applicable
law or regulation or the charter, by-laws or other organizational documents of
it or any Restricted Subsidiary or any order of any Governmental Authority,
(iii) will not violate or result in a default under any indenture, agreement or
other instrument binding upon it or any Restricted Subsidiary or its Properties,
or give rise to a right thereunder to require any payment to be made by it or
such Restricted Subsidiary and (iv) will not result in the creation or
imposition of any Lien on any Property of any Loan Party or any Restricted
Subsidiary (other than the Liens created by this First Amendment or the Loan
Documents as permitted by the Credit Agreement as amended hereby).

ARTICLE V
Miscellaneous

Section 5.01Credit Agreement in Full Force and Effect as Amended.  Except as
specifically amended hereby, the Credit Agreement and other Loan Documents shall
remain in full force and effect.  Each of the Loan Parties hereby agrees that
its liabilities under the Credit Agreement, the Guaranty and Collateral
Agreement and the other Loan Documents, in each case as amended, to which it is
a party, shall remain enforceable against such Loan Party in accordance with the
terms thereof and shall not be reduced, altered, limited, lessened or in any way
affected by the execution and delivery of this First Amendment, and each Loan
Party hereby confirms and ratifies its liabilities under the Loan Documents (as
so amended) to which it is a party in all respects.  Except as expressly set
forth herein, this First Amendment shall not be deemed to be a waiver, amendment
or modification of any provisions of the Credit Agreement or any other Loan
Document or any right, power or remedy of the Administrative Agent or Lenders,
or constitute a waiver of any provision of the Credit Agreement or any other
Loan Document, or any other document, instrument and/or agreement executed or
delivered in connection therewith or of any Default or Event of Default under
any of the foregoing, in each case whether arising before or after the date
hereof or as a result of performance hereunder or thereunder.  This First
Amendment also shall not preclude the future exercise of any right, remedy,
power, or privilege available to the Administrative Agent and/or Lenders whether
under the Credit Agreement, the other Loan Documents, at law or otherwise.  The
parties hereto agree to be bound by the terms and conditions of the Credit
Agreement and Loan Documents as amended by this First Amendment, as though such
terms and conditions were set forth herein.  Each reference in the Credit
Agreement to “this Agreement,” “hereunder,”

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“hereof,” “herein” or words of similar import shall mean and be a reference to
the Credit Agreement as amended by this First Amendment, and each reference
herein or in any other Loan Documents to the “Credit Agreement” shall mean and
be a reference to the Credit Agreement as amended and modified by this First
Amendment.

Section 5.02GOVERNING LAW.  THIS FIRST AMENDMENT, AND THE RIGHTS AND OBLIGATIONS
OF THE PARTIES HEREUNDER, SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK.

Section 5.03Descriptive Headings, Etc.  The descriptive headings of the sections
of this First Amendment are inserted for convenience only and shall not be
deemed to affect the meaning or construction of any of the provisions
hereof.  The statements made and the terms defined in the recitals to this First
Amendment are hereby incorporated into this First Amendment in their entirety.

Section 5.04Payment of Fees and Expenses.  The Borrower agrees to pay or
reimburse the Administrative Agent for all of its reasonable out-of-pocket costs
and expenses incurred in connection with this First Amendment, the other Loan
Documents and 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.  The agreement
set forth in this Section 5.04 shall survive the termination of this First
Amendment and the Credit Agreement.

Section 5.05Entire Agreement.  This First Amendment and the documents referred
to herein represent the entire understanding of the parties hereto regarding the
subject matter hereof and supersede all prior and contemporaneous oral and
written agreements of the parties hereto with respect to the subject matter
hereof.  This First Amendment is a Loan Document executed under the Credit
Agreement.

Section 5.06Counterparts.  This First Amendment may be executed in any number of
counterparts and by different parties on separate counterparts, each of which
shall constitute an original but all of which when taken together shall
constitute but one agreement.  Delivery of an executed counterpart of the
signature page of this First Amendment by facsimile or other electronic
transmission shall be effective as delivery of a manually executed counterpart
thereof.

Section 5.07Successors.  The execution and delivery of this First Amendment by
any Lender shall be binding upon each of its successors and assigns.

[Signatures Begin on Next Page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
duly executed by their respective authorized officers as of the date first
written above.

BORROWER:

 

RESOLUTE ENERGY CORPORATION

 

 

 

 

 

By:

 

/s/ Theodore Gazulis

 

 

 

 

Name: Theodore Gazulis,

 

 

 

 

Title: Executive Vice President and Chief Financial Officer

 

 

GUARANTORS:

 

HICKS ACQUISITION COMPANY I, INC.

 

 

 

 

 

RESOLUTE ANETH, LLC

 

 

 

 

 

RESOLUTE WYOMING, INC. (f/k/a Primary Natural Resources, Inc.)

 

 

 

 

 

RESOLUTE NATURAL RESOURCES COMPANY, LLC (f/k/a Resolute Natural Resources
Company)

 

 

 

 

 

BWNR, LLC

 

 

 

 

 

WYNR, LLC

 

 

 

 

 

RESOLUTE NORTHERN ROCKIES, LLC

 

 

 

 

 

RESOLUTE NATURAL RESOURCES SOUTHWEST, LLC

 

 

 

 

 

 

 

 

By:

 

/s/ Theodore Gazulis

 

 

 

 

Theodore Gazulis

 

 

 

 

Executive Vice President and

Chief Financial Officer

 

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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ADMINISTRATIVE AGENT AND LENDER:

 

BANK OF MONTREAL,

 

 

as Administrative Agent and a Lender

 

 

 

 

 

By:

 

/s/ Matthew Davis

 

 

 

 

Name: Matthew Davis

 

 

 

 

Title: Vice President

 

 

 

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

KeyBank National Association

 

 

 

 

 

By:

 

/s/ George E. McKean

 

 

 

 

Name: George E. McKean

 

 

 

 

Title: Senior Vice President

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

GOLDMAN SACHS BANK USA

 

 

 

 

 

By:

 

/s/ Shital Bhatt

 

 

 

 

Name: Shital Bhatt

 

 

 

 

Title: Authorized Signatory

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

CAPITAL ONE, NATIONAL ASSOCIATION

 

 

 

 

 

By:

 

/s/ Kristin N. Oswald

 

 

 

 

Name: Kristin N. Oswald

 

 

 

 

Title: Vice President

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

COMERICA BANK

 

 

 

 

 

By:

 

/s/ Mark Fuqua

 

 

 

 

Name: Mark Fuqua

 

 

 

 

Title: Executive Vice President

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

CADENCE BANK, N.A.

 

 

 

 

 

By:

 

/s/ Kyle Gruen

 

 

 

 

Name: Kyle Gruen

 

 

 

 

Title: Assistant Vice President

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

BARCLAYS BANK PLC

 

 

 

 

 

By:

 

/s/ Jake Lam

 

 

 

 

Name: Jake Lam

 

 

 

 

Title: Assistant Vice President

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

FIFTH THIRD BANK

 

 

 

 

 

By:

 

/s/ Jonathan H Lee

 

 

 

 

Name: Jonathan H Lee

 

 

 

 

Title: Director

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

ING CAPITAL LLC

 

 

 

 

 

By:

 

/s/ Charles Hall

 

 

 

 

Name: Charles Hall

 

 

 

 

Title: Managing Director

 

 

 

 

 

By:

 

/s/ Michael Price

 

 

 

 

Name: Michael Price

 

 

 

 

Title: Manging Director

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

ABN AMRO Capital USA LLC

 

 

 

 

 

By:

 

/s/ Darrell Holley

 

 

 

 

Name: Darrell Holley

 

 

 

 

Title: Managing Director

 

 

 

 

 

By:

 

/s/ Elizabeth Johnson

 

 

 

 

Name: Elizabeth Johnson

 

 

 

 

Title: Director

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement

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LENDER:

 

SunTrust Bank

 

 

 

 

 

By:

 

/s/ Arize Agumadu

 

 

 

 

Name: Arize Agumadu

 

 

 

 

Title: Vice President

 

Signature Page to

First Amendment to Third Amended and Restated Credit Agreement