Exhibit 10.2

Execution Version

 

 

 

SECOND AMENDMENT

TO

CREDIT AGREEMENT

Dated as of April 11, 2017

Among

PARSLEY ENERGY, LLC,

as Borrower,

PARSLEY ENERGY, INC.,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent,

BMO HARRIS BANK, N.A.,

as Documentation Agent,

and

The Lenders Party Thereto

 

 

WELLS FARGO SECURITIES, LLC

Sole Lead Arranger and Sole Bookrunner

 

 

 

 

 

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SECOND AMENDMENT TO CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Second Amendment”) dated as of
April 11, 2017, is among Parsley Energy, LLC, a Delaware limited liability
company (the “Borrower”); Parsley Energy, Inc., a Delaware corporation (“PEI”),
each of the undersigned guarantors (the “Guarantors”, and together with the
Borrower, the “Obligors”); each of the Lenders party hereto; and Wells Fargo
Bank, National Association (in its individual capacity, “Wells Fargo”), 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, PEI, the Administrative Agent and the Lenders are parties to
that certain Credit Agreement dated as of October 28, 2016 (as amended,
modified, supplemented or restated from time to time prior to the date hereof,
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
party hereto have agreed to amend the Credit Agreement, subject to the terms and
conditions of this Second Amendment.

C.    NOW, THEREFORE, to induce the Administrative Agent and the Lenders to
enter into this Second Amendment and in consideration of the promises 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). 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 1.02 – Certain Defined Terms.

(a)    The following definitions are hereby amended and restated in their
entirety to read as follows:

“Agreement” means this Credit Agreement, including any schedules and exhibits
hereto, as amended by the First Amendment and the Second Amendment, and as the
same may from time to time be amended, modified, supplemented or restated.

“LC Commitment” at any time means Ten Million dollars ($10,000,000).

 

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(b)    The following definition is hereby added where alphabetically appropriate
to read as follows:

“Second Amendment” means that certain Second Amendment to Credit Agreement,
dated as of April 11, 2017, among the Borrower, PEI, the Guarantors, the
Administrative Agent and the Lenders party thereto.

Section 3.    Conditions of Effectiveness. This Second Amendment will become
effective on the date on which each of the following conditions precedent are
satisfied or waived (the “Second Amendment Effective Date”):

(a)    The Administrative Agent shall have received from the Borrower, PEI, each
Guarantor, the Issuing Bank and the Majority Lenders, counterparts (in such
number as may be requested by the Administrative Agent) of this Second Amendment
signed on behalf of such Person.

(b)    No Default or Event of Default shall have occurred and be continuing as
of the Second Amendment Effective Date.

(c)    The Administrative Agent shall have received such other documents as the
Administrative Agent or its special counsel may reasonably require.

The Administrative Agent is hereby authorized and directed to declare this
Second Amendment to be effective when it has received documents confirming
compliance with the conditions set forth in this Section 3 or the waiver of such
conditions as agreed to by the Majority Lenders. Such declaration shall be
final, conclusive and binding upon all parties to the Credit Agreement for all
purposes.

Section 4.    Miscellaneous.

(a)    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.

(b)    Ratification and Affirmation; Representations and Warranties. Each of PEI
and 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; (c) agrees that from and after
the Second Amendment Effective Date each reference to the Credit Agreement in
the other Loan Documents shall be deemed to be a reference to the Credit
Agreement, as amended by this Second Amendment; and (d) represents and 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 that any representation and warranty that is qualified
by materiality shall be true and correct in all 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 in all material respects (except that any representation and
warranty that is qualified by materiality shall be true and correct in all
respects) as of such specified earlier date, (ii) no Default or Event of Default
has occurred and is continuing and (iii) no event, development or circumstance
has occurred or exists that has resulted in, or could reasonably be expected to
have, a Material Adverse Effect.

 

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(c)    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 an executed counterpart of a signature page of this
Second Amendment by telecopy, facsimile, as an attachment to an email or other
similar electronic means shall be effective as delivery of a manually executed
counterpart of this Second Amendment.

(d)    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. THERE ARE
NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

(e)    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 TEXAS.

(f)    Loan Document. This Second Amendment is a “Loan Document” as defined and
described in the Credit Agreement and all of the terms and provisions of the
Credit Agreement relating to Loan Documents shall apply hereto.

(g)    Payment of Expenses. In accordance with Section 12.03, the Borrower
agrees to pay or reimburse the Administrative Agent for all of its reasonable
and documented out-of-pocket costs and expenses incurred in connection with this
Second Amendment, 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.

(h)    Severability. Any provision of this Second 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 prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

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

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be
duly executed and delivered by their proper and duly authorized officer(s) as of
the day and year first above written.

 

BORROWER:     PARSLEY ENERGY, LLC     By:  

/s/ Ryan Dalton

    Name:   Ryan Dalton     Title:   Executive Vice President – Chief Financial
Officer PEI:           PARSLEY ENERGY, INC.     By:  

/s/ Ryan Dalton

    Name:   Ryan Dalton     Title:   Executive Vice President – Chief Financial
Officer GUARANTOR:     PARSLEY GP, LLC     By:  

/s/ Ryan Dalton

    Name:   Ryan Dalton     Title:   Executive Vice President – Chief Financial
Officer GUARANTOR:     PARSLEY ENERGY, L.P.     BY:   PARSLEY GP, LLC, its
general partner     By:  

/s/ Ryan Dalton

    Name:   Ryan Dalton     Title:   Executive Vice President – Chief Financial
Officer

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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GUARANTOR:   PARSLEY ENERGY OPERATIONS, LLC   By:  

/s/ Ryan Dalton

  Name:   Ryan Dalton   Title:   Executive Vice President – Chief Financial
Officer GUARANTOR:   PARSLEY ENERGY AVIATION, LLC   By:  

/s/ Ryan Dalton

  Name:   Ryan Dalton   Title:   Executive Vice President – Chief Financial
Officer GUARANTOR:   PARSLEY MINERALS, LLC   By:  

/s/ Ryan Dalton

  Name:   Ryan Dalton   Title:   Executive Vice President – Chief Financial
Officer GUARANTOR:   PARSLEY FINANCE CORP.   By:  

/s/ Ryan Dalton

  Name:   Ryan Dalton   Title:   Executive Vice President – Chief Financial
Officer

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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ADMINISTRATIVE AGENT, ISSUING BANK AND LENDER:     WELLS FARGO BANK, NATIONAL
ASSOCIATION     By:  

/s/ Matthew Denkler

    Name:   Matthew Denkler     Title:   Vice President

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     JPMORGAN CHASE BANK, N.A.     By:  

/s/ Greg Determann

    Name:   Greg Determann     Title:   Managing Director

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     BMO HARRIS BANK, N.A.     By:  

/s/ Matthew L. Davis

    Name:   Matthew L. Davis     Title:   Vice President

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     MORGAN STANLEY BANK, N.A.     By:  

/s/ Patrick Layton

    Name:   Patrick Layton     Title:   Authorized Signatory LENDER:     MORGAN
STANLEY SENIOR FUNDING, INC.     By:  

/s/ Patrick Layton

    Name:   Patrick Layton     Title:   Vice President    

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH     By:  

/s/ Nupur Kumar

    Name:   Nupur Kumar     Title:   Authorized Signatory     By:  

/s/ Lea Baerlocher

    Name:   Lea Baerlocher     Title:   Authorized Signatory

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     BOKF NA DBA BANK OF TEXAS     By:  

/s/ Colin Watson

    Name:   Colin Watson     Title:   Senior Vice President

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     FROST BANK, A TEXAS STATE BANK     By:  

/s/ Jack Herndon

    Name:   Jack Herndon     Title:   Senior Vice President

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     ROYAL BANK OF CANADA     By:  

/s/ Kristan Spivey

    Name:   Kristan Spivey     Title:   Authorized Signatory

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     U.S. BANK NATIONAL ASSOCIATION     By:  

/s/ Nicholas T. Hanford

    Name:   Nicholas T. Hanford     Title:   Vice President

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     THE BANK OF NOVA SCOTIA     By:  

/s/ Alan Dawson

    Name:   Alan Dawson     Title:   Director

 

[Parsley Energy, LLC - Second Amendment Signature Page]

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LENDER:     COMPASS BANK     By:  

/s/ Kari McDaniel

    Name:   Kari McDaniel     Title:   Vice President

 

[Parsley Energy, LLC - Second Amendment Signature Page]