Exhibit 10.39

 

 

 

FOURTH AMENDMENT TO

5-YEAR REVOLVING CREDIT AGREEMENT

dated as of

February 6, 2008

among

XTO ENERGY INC.,

as Borrower,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

and

The Lenders Party Hereto

 

 

BANK OF AMERICA, N.A.,

BNP PARIBAS,

SUNTRUST BANK,

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Co-Syndication Agents

and

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

CITIBANK, N.A.,

BMO CAPITAL MARKETS FINANCING, INC.,

and

THE ROYAL BANK OF SCOTLAND PLC,

as Co-Documentation Agents

 

 

J.P. MORGAN SECURITIES INC. and BANC OF AMERICA SECURITIES LLC,

as Co-Arrangers and Joint Bookrunners

 

 

 

--------------------------------------------------------------------------------

FOURTH AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT

THIS FOURTH AMENDMENT TO 5-YEAR REVOLVING CREDIT AGREEMENT (this “Fourth
Amendment”) dated as of February 6, 2008, is among XTO ENERGY INC., a Delaware
corporation, as the Borrower, JPMORGAN CHASE BANK, N.A., as Administrative
Agent, JPMORGAN CHASE BANK, N.A., BANK OF AMERICA, N.A., and U.S. BANK NATIONAL
ASSOCIATION, as Issuing Banks, and the Lenders party hereto.

R E C I T A L S

A. The Borrower, the Administrative Agent and the Lenders are parties to that
certain Amended and Restated 5-Year Revolving Credit Agreement dated as of
April 1, 2005 (as amended by the First Amendment to 5-Year Revolving Credit
Agreement dated as of March 10, 2006, the Second Amendment to 5-Year Revolving
Credit Agreement dated as of October 25, 2006 and the Third Amendment to 5-Year
Revolving Credit Agreement dated as of March 19, 2007, the “Credit Agreement”),
pursuant to which the Lenders have made certain loans to and extensions of
credit for the account of the Borrower.

B. The Borrower has requested and the Lenders have agreed to amend certain
provisions of the Credit Agreement.

C. NOW, THEREFORE, 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. Unless
otherwise indicated, all article and section references in this Fourth Amendment
refer to articles and sections of the Credit Agreement.

Section 2. Amendments to Credit Agreement.

2.1 Amendments to Section 1.01.

(a) The definition of “Agreement” is hereby amended in its entirety to read as
follows:

“Agreement” means this Amended and Restated 5-Year Revolving Credit Agreement,
as amended by the First Amendment, the Second Amendment, the Third Amendment and
the Fourth Amendment, as the same may from time to time be amended, modified,
restated, or replaced from time to time.

(b) The definition of “Maturity Date” is hereby amended in its entirety to read
as follows:

--------------------------------------------------------------------------------

“Maturity Date” means April 1, 2013, and for any Lender agreeing to extend its
Maturity Date pursuant to Section 2.05, the date on April 1 in each year
thereafter pursuant to which the Maturity Date has been extended.

(c) The following definitions are hereby added where alphabetically appropriate
to read as follows:

“Extension Confirmation Date” has the meaning set forth in Section 2.05(b).

“Fourth Amendment” means the Fourth Amendment to 5-Year Revolving Credit
Agreement dated as of February 6, 2008 among the Borrower and the Lenders party
thereto.

2.2 Amendment to Section 2.02(a). Section 2.02(a) is hereby amended by replacing
“$3,000,000,000” in the tenth line thereof with “$3,500,000,000”.

2.3 Amendment to Section 2.05(b). Section 2.05(b) is hereby amended by amending
and restating the second, third and fourth sentences thereof in their entirety
to read as follows:

“If so extended, the Maturity Date, as to the Consenting Lenders, shall be
extended to the same date in the year following the Maturity Date then in effect
(such existing Maturity Date being the “Extension Effective Date”). The
Administrative Agent and the Borrower shall promptly confirm to the Lenders such
extension, specifying the date of such confirmation (the “Extension Confirmation
Date”), the Extension Effective Date, and the new Maturity Date (after giving
effect to such extension). As a condition precedent to such extension, the
Borrower shall deliver to the Administrative Agent a certificate of the Borrower
dated as of the Extension Confirmation Date signed by a Responsible Officer of
the Borrower (i) certifying and attaching the resolutions adopted by the
Borrower approving or consenting to such extension and (ii) certifying that,
(A) before and after giving effect to such extension, the representations and
warranties contained in Article III made by it are true and correct on and as of
the Extension Confirmation Date, except to the extent that such representations
and warranties specifically refer to an earlier date, (B) before and after
giving effect to such extension no Default exists or will exist as of the
Extension Confirmation Date, and (C) since December 31, 2006, no event,
development or circumstance that has had or could reasonably be expected to have
a Material Adverse Effect has occurred.”

2.1 Amendments to Section 9.04. Section 9.04(b) is hereby amended as follows:

(a) Section 9.04(b)(i)(A) is hereby amended by adding the following at the end
thereof:

“; and provided further that no consent of the Borrower shall be required with
respect to an assignment by any Lender to any assignee in the circumstance where
it becomes illegal for such Lender to do business with any Subsidiary Guarantor
that has executed and delivered a Subsidiary Guaranty”

 

2

--------------------------------------------------------------------------------

(b) Section 9.04(b)(i)(B) is hereby amended by adding the following at the end
thereof:

“; and provided further that with respect to an assignment by any Lender in the
circumstance where it becomes illegal for such Lender to do business with any
Subsidiary Guarantor that has executed and delivered a Subsidiary Guaranty, no
consent of the Administrative Agent shall be required for an assignment to any
assignee, and no consent of any Issuing Bank shall be required for an assignment
of any Commitment to an assignee that is a Lender with a Commitment immediately
prior to giving effect to such assignment, an Affiliate of such a Lender or an
Approved Fund”

2.2 Amendments to Schedules. Schedule 2.01 and Schedule 3.06 of the Credit
Agreement are hereby amended in their entirety to read as set forth on Schedule
2.01 and Schedule 3.06 hereto, respectively.

2.3 References to Co-Syndication Agents. SunTrust Bank is hereby added to the
Credit Agreement as a Co-Syndication Agent and shall cease to be a
Co-Documentation Agent under the Credit Agreement.

Section 3. Conditions Precedent. This Fourth Amendment shall not become
effective until the date on which each of the following conditions is satisfied
(or waived in accordance with Section 9.02(b) of the Credit Agreement) (the
“Effective Date”):

3.1 The Administrative Agent and the Lenders shall have received all fees and
other amounts due and payable, if any, in connection with this Fourth Amendment
on or prior to the Effective Date.

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

3.3 The Administrative Agent shall have received a favorable written opinion
(addressed to the Administrative Agent and the Lenders and dated the Effective
Date) of counsel for the Borrower, in form and substance satisfactory to the
Administrative Agent.

3.4 The Administrative Agent shall have received such other documents as the
Administrative Agent or special counsel to the Administrative Agent may
reasonably request.

3.5 No Default shall have occurred and be continuing, after giving effect to the
terms of this Fourth Amendment.

3.6 The Administrative Agent shall have received a certificate of the Secretary
or an Assistant Secretary of the Borrower and setting forth (a) resolutions of
its board of directors with respect to the authorization of the Borrower to
execute and deliver this Fourth Amendment and to enter into the transactions
contemplated hereby, (b) the officers of the Borrower (i) who are authorized to
sign this Fourth Amendment and (ii) who will, until replaced by another officer
or

 

3

--------------------------------------------------------------------------------

officers duly authorized for that purpose, act as its representative for the
purposes of signing documents and giving notices and other communications in
connection with this Fourth Amendment and the transactions contemplated hereby,
(c) specimen signatures of such authorized officers, and (d) that no changes
have occurred to the articles or certificate of incorporation and bylaws of the
Borrower since April 1, 2005 except as set forth in such certificate. The
Administrative Agent and the Lenders may conclusively rely on such certificate
until the Administrative Agent receives notice in writing from the Borrower to
the contrary.

3.7 The Administrative Agent shall have received certificates of the appropriate
State agencies with respect to the existence, qualification and good standing of
the Borrower.

Section 4. Miscellaneous.

4.1 Commitment Increase Pursuant to Section 2.02. The Borrower has heretofor
requested pursuant to Section 2.02 that the aggregate amount of the Lenders’
Commitments be increased to $2,500,000,000. Pursuant to Section 2.02, effective
on the Effective Date (which date shall constitute the “Commitment Increase
Effective Date” for purposes of Section 2.02): (a) the aggregate amount of the
Lenders’ Commitments shall be increased to $2,500,000,000 and (b) the Commitment
of each Lender shall, without any further action (including, without the
execution of any Assignment and Assumption or any other documentation or the
payment of any processing and recordation fee to the Administrative Agent), be
the Commitment specified for such Lender on the attached Schedule 2.01; and
Schedule 2.01 of the Credit Agreement is hereby replaced with the attached
Schedule 2.01. Compass Bank and Export Development Canada are each hereby added
as a CI Lender with the Commitment specified for it on the attached Schedule
2.01. Each of the Administrative Agent, the Issuing Banks and the Lenders hereby
waives all timing and notice requirements of Section 2.02, including, without
limitation, the obligation of the Borrower to deliver a Notice of Commitment
Increase (and the Administrative Agent’s obligation to respond thereto). Except
as expressly waived as aforesaid, the provisions of Section 2.02 shall otherwise
apply (including the provisions of Section 2.02(c)).

4.2 Waivers. All waivers contained herein are hereby granted to the extent and
only to the extent specifically stated herein and for no other purpose or period
and shall not be deemed to (A) be a consent or agreement to, or waiver or
modification of, any other term or condition of the Credit Agreement, any other
Loan Document or any of the documents referred to therein, or (B) except as
expressly set forth herein, prejudice any right or rights which the
Administrative Agent, the Issuing Banks or the Lenders may now have or may have
in the future under or in connection with the Credit Agreement, any other Loan
Document or any of the documents referred to therein. Granting the waivers and
consent set forth herein does not and should not be construed to be an assurance
or promise that waivers or consents will be granted in the future, whether for
the matters herein stated or on other unrelated matters.

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

 

4

--------------------------------------------------------------------------------

4.4 Ratification and Affirmation; Representations and Warranties. The Borrower
hereby (a) 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 (b) represents and warrants to the Lenders that
as of the date hereof, after giving effect to the terms of this Fourth
Amendment: (i) all of the representations and warranties contained in each Loan
Document to which it is a party are true and correct, 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, (ii) no Default has occurred and is
continuing and (iii) since December 31, 2006, there has been no event,
development or circumstance that has had or could reasonably be expected to have
a Material Adverse Effect.

4.5 Loan Document. This Fourth 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.

4.6 Counterparts. This Fourth 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 Fourth Amendment by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof.

4.7 NO ORAL AGREEMENT. THIS FOURTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER
LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL
AGREEMENT AMONG 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.

4.8 GOVERNING LAW. THIS FOURTH 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.

[SIGNATURES BEGIN NEXT PAGE]

 

5

--------------------------------------------------------------------------------

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

 

XTO ENERGY INC. By:   /s/ Brent W. Clum   Senior Vice President & Treasurer

 

S-1

--------------------------------------------------------------------------------

Administrative Agent, Issuing

Bank & Lender:

    JPMORGAN CHASE BANK, N.A.     By:   /s/ Robert Traband      

Robert W. Traband

Executive Director

 

S-2

--------------------------------------------------------------------------------

Issuing Bank & Lender:     BANK OF AMERICA, N.A.     By:   /s/ Ronald E. McKaig
      Senior Vice President

 

S-3

--------------------------------------------------------------------------------

Lender:     BNP PARIBAS     By:   /s/ Betsy Jocher     Name:   Betsy Jocher    
Title:   Director     By:   /s/ Polly Schott     Name:   Polly Schott     Title:
  Vice President

 

S-4

--------------------------------------------------------------------------------

Lender:     WACHOVIA BANK, NATIONAL ASSOCIATION     By:   /s/ Paul Pritchett    
 

Paul Pritchett

Vice President

 

S-5

--------------------------------------------------------------------------------

Lender:     CITIBANK, N.A.     By:   /s/ John F. Mugno      

John F. Mugno

Vice President

 

S-6

--------------------------------------------------------------------------------

Lender:     BMO CAPITAL MARKETS FINANCING, INC.     By:   /s/ James V. Ducote  
   

James V. Ducote

Director

 

S-7

--------------------------------------------------------------------------------

Lender:     SUNTRUST BANK     By:   /s/ Yann Pirio      

Yann Pirio

Director

 

S-8

--------------------------------------------------------------------------------

Lender:     EXPORT DEVELOPMENT CANADA     By:   /s/ Vivianne Bouchard      

Vivianne Bouchard

Financing Manager

    By:   /s/ Quynh Nguyen      

Quynh Nguyen

Senior Associate

 

S-9

--------------------------------------------------------------------------------

Lender:     BARCLAYS BANK PLC     By:   /s/ Gary B. Wenslow     Name:   Gary
Wenslow     Title:   Associate Director

 

S-10

--------------------------------------------------------------------------------

Lender:     DEUTSCHE BANK AG NEW YORK BRANCH     By:   /s/ Marcus Tarkington    
Name:   Marcus Tarkington     Title:   Director     By:   /s/ Rainer Meier    
Name:   Rainer Meier     Title:   Vice President

 

S-11

--------------------------------------------------------------------------------

Lender:     FORTIS CAPITAL CORP.     By:   /s/ Ilene Fowler     Name:   Ilene
Fowler     Title:   Senior Vice President     By:   /s/ Darrell Holley     Name:
  Darrell Holley     Title:   Managing Director

 

S-12

--------------------------------------------------------------------------------

Lender:     THE ROYAL BANK OF SCOTLAND plc     By:   /s/ David Slye     Name:  
David Slye     Title:   Vice President

 

S-13

--------------------------------------------------------------------------------

Lender:     WELLS FARGO BANK, N.A.     By:   /s/ Thomas E. Stelmar, Jr.      

Thomas E. Stelmar, Jr.

Assistant Vice President / Portfolio Manager

 

S-14

--------------------------------------------------------------------------------

Lender:     THE BANK OF NEW YORK     By:   /s/ Richard A. Matthews      

Richard A. Matthews

Vice President

 

S-15

--------------------------------------------------------------------------------

Lender:     THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.     By:   /s/ Linda Terry    
 

Linda Terry

Vice President and Manager

 

S-16

--------------------------------------------------------------------------------

Issuing Bank & Lender:     U.S. BANK NATIONAL ASSOCIATION     By:   /s/ Kathyrn
A. Gaiter      

Kathryn A. Gaiter

Vice President

 

S-17

--------------------------------------------------------------------------------

Lender:     COMERICA BANK     By:   /s/ Peter L. Sefzik      

Peter L. Sefzik

Vice President

 

S-18

--------------------------------------------------------------------------------

Lender:     UBS LOAN FINANCE LLC     By:   /s/ Irja R. Otsa     Name:   Irja R.
Otsa     Title:   Associate Director     By:   /s/ David B. Julie     Name:  
David B. Julie     Title:   Associate Director

 

S-19

--------------------------------------------------------------------------------

Lender:     CREDIT SUISSE, CAYMAN ISLANDS BRANCH     By:   /s/ Caldwell    
Name:   Brian Caldwell     Title:   Director     By:   /s/ Nupur Kumar     Name:
  Nupur Kumar     Title:   Associate

 

S-20

--------------------------------------------------------------------------------

Lender:     NATIXIS     By:   /s/ Louis P. Laville, III      

Louis P. Laville, III

Managing Director

    By:   /s/ Daniel Payer      

Daniel Payer

Director

 

S-21

--------------------------------------------------------------------------------

Lender:    

WILLIAM STREET COMMITMENT CORPORATION

(Recourse only to the Assets of William Street

Commitment Corporation),

    By:   /s/ Mark Walton      

Mark Walton

Assistant Vice President

 

S-22

--------------------------------------------------------------------------------

Lender:     WILLIAM STREET LLC     By:   /s/ Mark Walton      

Mark Walton

Authorized Signatory

 

S-1

--------------------------------------------------------------------------------

Lender:     COMPASS BANK     By:   /s/ Adrianne D. Griffin     Name:   Adrianne
D. Griffin     Title:   Compass Bank

 

S-2

--------------------------------------------------------------------------------

Lender:     MORGAN STANLEY BANK     By:   /s/ Daniel Twenge     Name:   Daniel
Twenge     Title:   Authorized Signatory

 

S-3

--------------------------------------------------------------------------------

SCHEDULE 2.01

COMMITMENTS

 

Lender

   Amount of
Commitment    Applicable
Percentage  

JPMorgan Chase Bank, N.A.

   $ 188,750,000.00    7.55 %

Bank of America, N.A.

   $ 188,750,000.00    7.55 %

BNP Paribas

   $ 145,000,000.00    5.80 %

BMO Capital Markets Financing, Inc. (f/k/a Harris Nesbitt Financing, Inc.)

   $ 145,000,000.00    5.80 %

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

   $ 145,000,000.00    5.80 %

Citibank, N.A.

   $ 145,000,000.00    5.80 %

SunTrust Bank

   $ 145,000,000.00    5.80 %

Wachovia Bank, National Association

   $ 145,000,000.00    5.80 %

The Royal Bank of Scotland plc

   $ 145,000,000.00    5.80 %

Export Development Canada

   $ 112,500,000.00    4.50 %

Morgan Stanley Bank

   $ 100,000,000.00    4.00 %

Barclays Bank PLC

   $ 100,000,000.00    4.00 %

Deutsche Bank AG New York Branch

   $ 100,000,000.00    4.00 %

Fortis Capital Corp.

   $ 100,000,000.00    4.00 %

Wells Fargo Bank, N.A.

   $ 100,000,000.00    4.00 %

William Street Commitment Corporation

   $ 100,000,000.00    4.00 %

UBS Loan Finance LLC

   $ 100,000,000.00    4.00 %

 

Schedule 2.01 – 1

--------------------------------------------------------------------------------

Lender

   Amount of
Commitment    Applicable
Percentage  

Credit Suisse, Cayman Islands Branch

   $ 100,000,000.00    4.00 %

U.S. Bank National Association

   $ 50,000,000.00    2.00 %

Compass Bank

   $ 50,000,000.00    2.00 %

Comerica Bank

   $ 35,000,000.00    1.40 %

The Bank of New York

   $ 35,000,000.00    1.40 %

Natixis

   $ 25,000,000.00    1.00 %                  $ 2,500,000,000    100.00 %

 

Schedule 2.01– 2

--------------------------------------------------------------------------------

SCHEDULE 3.06

DISCLOSED MATTERS

In October 1997, an action, styled United States of America ex rel. Grynberg v.
Cross Timbers Oil Company, et al., was filed in the U.S. District Court for the
Western District of Oklahoma by Jack J. Grynberg on behalf of the United States
under the qui tam provisions of the U.S. False Claims Act against the Company
and certain of our subsidiaries. The plaintiff alleges that we underpaid
royalties on natural gas produced from federal leases and lands owned by Native
Americans in amounts in excess of 20% as a result of mismeasuring the volume of
natural gas, incorrectly analyzing its heating content and improperly valuing
the natural gas during at least the past ten years. The plaintiff seeks treble
damages for the unpaid royalties (with interest, attorney fees and expenses),
civil penalties between $5,000 and $10,000 for each violation of the U.S. False
Claims Act, and an order for us to cease the allegedly improper measuring
practices. This lawsuit against us and similar lawsuits filed by Grynberg
against more than 300 other companies were consolidated in the United States
District Court for Wyoming. In October 2002, the court granted a motion to
dismiss Grynberg’s royalty valuation claims, and Grynberg’s appeal of this
decision was dismissed for lack of appellate jurisdiction in May 2003. In
response to a motion to dismiss filed by us and other defendants, in October
2006 the district judge held that Grynberg failed to establish jurisdictional
requirements to maintain the action against us and other defendants and
dismissed the action for lack of subject matter jurisdiction. In September 2007,
the district judge dismissed those claims against us pertaining to the royalty
value of carbon dioxide. Grynberg has filed appeals of these decisions. While we
are unable to predict the final outcome of this case, we believe that the
allegations of this lawsuit are without merit and intend to vigorously defend
the action. Any potential liability from this claim cannot currently be
reasonably estimated, and no provision has been accrued in our financial
statements.

In July 2005, a predecessor company, Antero Resources Corporation, was served
with a lawsuit styled Threshold Development Company, et al. v. Antero Resources
Corp., which lawsuit was filed in the District Court of Wise County, Texas. The
plaintiffs are surface owners, royalty owners and prior working interest owners
in several oil and gas leases as well as other contractual agreements under
which Antero Resources Corporation owned an interest. Antero Resources
Corporation, the defendant, was acquired by us on April 1, 2005. The claims
relate to alleged events pre-dating the acquisition and concern non-payment of
royalties, improper calculation of royalties, improper pricing related to
royalties, trespass, failure to develop and breach of contract. We have settled
all claims related to the payment of royalties and trespass. Under the remaining
claims, the plaintiffs are seeking both damages and termination of the existing
oil and gas leases covering their interests. The court has ordered the parties
to mediation, which has not been scheduled. While we are unable to predict the
outcome of this case, we believe that the allegations of this lawsuit are
without merit and intend to vigorously defend the action. Based on a review of
the current facts and circumstances with counsel, management has provided for
what is believed to be a reasonable estimate of the loss exposure for this
matter. While acknowledging the uncertainties of litigation, management believes
that the ultimate outcome of this matter will not have a material effect on its
earnings, cash flows or financial position.

 

Schedule 3.06