Exhibit 10.49

Execution Version

 

 

 

Sixth Amendment

to

Amended and Restated Credit Agreement

among

Rex Energy Corporation,

as Borrower,

The Guarantors,

Royal Bank of Canada,

as Administrative Agent,

KeyBank National Association,

as Syndication Agent,

SunTrust Bank,

as Documentation Agent,

RBC Capital Markets,

KeyBank National Association,

and

SunTrust Bank,

as Joint Lead Arrangers and Joint Bookrunners,

and

The Lenders Signatory Hereto

Dated as of December 16, 2014

 

 

 

 

LEGAL_US_W # 80449537.1

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Sixth Amendment to Amended and Restated Credit Agreement

This Sixth Amendment to Amended and Restated Credit Agreement (this “Sixth
Amendment”) dated as of December 16, 2014 is among Rex Energy Corporation, a
corporation formed under the laws of the State of Delaware (the “Borrower”);
each of the undersigned guarantors (the “Guarantors”, and together with the
Borrower, the “Obligors”); Royal Bank of Canada, as administrative agent for the
Lenders (in such capacity, together with its successors, the “Administrative
Agent”); and the Lenders signatory hereto.

Recitals

A. The Borrower, the Administrative Agent and the Lenders are parties to that
certain Amended and Restated Credit Agreement dated as of March 27, 2013 (as
amended by the First Amendment to Amended and Restated Credit Agreement dated
January 14, 2013, the Second Amendment to Amended and Restated Credit Agreement
dated as of March 26, 2014, the Third Amendment to Amended and Restated Credit
Agreement dated as of July 11, 2014, the Fourth Amendment to Amended and
Restated Credit Agreement dated as of August 15, 2014 and the Fifth Amendment to
Amended and Restated Credit Agreement dated as of September 12, 2014, the
“Credit Agreement”), pursuant to which the Lenders have made certain credit
available to and on behalf of the Borrower.

B. The Borrower and Guarantors are parties to that certain Amended and Restated
Guaranty and Collateral Agreement dated as of March 27, 2013 made by each of the
Grantors (as defined therein) in favor of the Administrative Agent (the
“Guaranty”).

C. The Borrower, the Administrative Agent and the Lenders have agreed to amend
certain provisions of the Credit Agreement as more fully set forth herein.

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 which is defined in the Credit
Agreement, but which is not defined in this Sixth Amendment, shall have the
meaning ascribed such term in the Credit Agreement.  Unless otherwise indicated,
all article and section references in this Sixth Amendment refer to articles and
sections of the Credit Agreement.

Section 2. Amendments to Section 1.02 – Certain Defined Terms.  

2.1 The definition of “Total Debt” is hereby deleted in its entirety.

2.2 The definition of “Pro Forma Compliance” is hereby amended and restated in
its entirety to read as follows:

“Pro Forma Compliance” means, for any date of determination, that the Borrower
is in pro forma compliance with the financial covenant set forth in Section
9.01(b)(ii), as such ratio is recomputed using (a) Total Net Debt as of such
date and (b) EBITDAX for the period of four fiscal quarters ending on the last
day of the fiscal quarter immediately preceding the date of determination for
which financial statements are available.

2.4 The following definitions are hereby added where alphabetically appropriate
to read as follows:

“Cash Equivalents” means any Investment of the types described in Section
9.05(c) through Section 9.05(g).

“Net Senior Secured Debt” means, at any date, the sum of (a) the total Revolving
Credit Exposures of all Lenders on such date, plus (b) the aggregate principal
amount of Debt of the Borrower and its Consolidated Subsidiaries on such date
that is secured by a Lien on any asset or Property of the Borrower or any
Consolidated Subsidiary, minus (c) all unrestricted cash and Cash Equivalents of
the Borrower and its Consolidated Subsidiaries on such date.

“Total Net Debt” means, at any date, the sum of (a) all Debt of the Borrower and
the Consolidated Subsidiaries on a consolidated basis, excluding (i) non-cash
obligations under FASB ASC 815, (ii) accounts payable and other accrued
liabilities (for the deferred purchase price of Property or services) from time
to time incurred in the ordinary course of business which are not greater than
sixty (60) days past the date of invoice or which are being contested in good
faith by appropriate action and for which adequate reserves have been maintained
in accordance with GAAP and (iii) amounts available to be drawn under
performance letters of credit and surety bonds issued for the account of the
Borrower or a Consolidated Subsidiary to secure obligations under firm
transportation contracts, minus (b) all unrestricted cash and Cash Equivalents
of the Borrower and its Consolidated Subsidiaries on such date.

“Sixth Amendment” means that certain Sixth Amendment to Amended and Restated
Credit Agreement dated December 16, 2014 among the Borrower, the Administrative
Agent and the Lenders party thereto.

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“Sixth Amendment Effective Date” has the meaning ascribed to such term in the
Sixth Amendment.

Section 3. Amendment to Section 9.01(b).  Section 9.01(b) is hereby amended and
restated in its entirety to read as follows:

(b) (i) Ratio of Net Senior Secured Debt to EBITDAX.  The Borrower will not, as
of the last day of any fiscal quarter ending on December 31, 2014 through June
30, 2016, permit its ratio of Net Senior Secured Debt as of such date to EBITDAX
for the period of four fiscal quarters then ending on such day to be greater
than 1.75 to 1.00.

(ii) Ratio of Total Net Debt to EBITDAX.  The Borrower will not, as of the last
day of any fiscal quarter ending on or after September 30, 2016, permit its
ratio of Total Net Debt as of such date to EBITDAX for the period of four fiscal
quarters then ending on such day to be greater than 4.25 to 1.00.

Section 4. Amendment to Section 9.02(i).  The following sentence is hereby added
to the end of Section 9.02(i) to read as follows:

Notwithstanding the foregoing or anything to the contrary herein, in no event
shall the Borrower be permitted to incur any Senior Debt pursuant to this
Section 9.02(i) during the period beginning on the Sixth Amendment Effective
Date through and including June 30, 2016.

Section 5. Conditions Precedent.  This Sixth Amendment shall become effective on
the date on which each of the following conditions is satisfied (or waived in
accordance with Section 12.02) (the “Sixth Amendment Effective Date”):

5.1 Sixth Amendment.  The Administrative Agent shall have received multiple
counterparts as requested of this Sixth Amendment from the Borrower, each other
Obligor and the Majority Lenders.

5.2 Payment of Outstanding Invoices.  Payment by the Borrower to the
Administrative Agent of all fees and other amounts due and payable on or prior
to the Sixth Amendment Effective Date, including, to the extent invoiced,
reimbursement or payment of all reasonable out-of-pocket expenses required to be
reimbursed or paid by the Borrower (including, but not limited to the reasonable
fees of Paul Hastings LLP).

5.3 No Default.  No Default or Event of Default shall be continuing as of the
Sixth Amendment Effective Date.

Section 6. Representations and Warranties; Etc.  Each Obligor hereby
affirms:  (a) that as of the date of execution and delivery of this Sixth
Amendment, after giving effect to the terms of this Sixth Amendment, all of the
representations and warranties made by it contained in each Loan Document to
which it is a party are true and correct in all material respects as though made
on and as of the Sixth Amendment Effective Date (unless made as of a specific
earlier date, in which case, was true and correct in all material respects as of
such date); and (b) that after giving effect to this Sixth Amendment and to the
transactions contemplated hereby, no Default exists or will exist under any Loan
Document to which it is a party.

Section 7. Miscellaneous.

7.1 Confirmation.  The provisions of the Credit Agreement (as amended by this
Sixth Amendment) shall remain in full force and effect in accordance with its
terms following the effectiveness of this Sixth Amendment.

7.2 Ratification and Affirmation of the Obligors.  Each Obligor hereby expressly
(a) acknowledges the terms of this Sixth 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, as amended
hereby; and (c) agrees that from and after the Sixth Amendment Effective Date
each reference to the Credit Agreement in the Guaranty and the other Loan
Documents shall be deemed to be a reference to the Credit Agreement, as amended
by this Sixth Amendment.

7.3 Loan Document.  This Sixth 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.

7.4 Severability.  Any provision of this Sixth 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.

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7.5 Successors and Assigns.  This Sixth Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

7.6 Counterparts. This Sixth 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
Sixth Amendment by telecopy, facsimile or email transmission shall be effective
as delivery of a manually executed counterpart of this Sixth Amendment.

7.7 No Oral Agreement. This written Sixth 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 subsequent oral agreements of the parties.  There
are no unwritten oral agreements between the parties.

7.8 Governing Law.  This Sixth 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 on Next Page]

 

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment to be
duly executed effective as of the Sixth Amendment Effective Date.

 

BORROWER:

 

REX ENERGY CORPORATION

 

 

 

 

 

 

 

By:

 

/s/ Michael L. Hodges

 

 

 

 

Michael L. Hodges

 

 

 

 

Chief Financial Officer

 

GUARANTORS:

 

REX ENERGY OPERATING CORP.

 

 

 

 

 

 

 

By:

 

/s/ Michael L. Hodges

 

 

 

 

Michael L. Hodges

 

 

 

 

Chief Financial Officer

 

 

 

REX ENERGY I, LLC

 

 

PENNTEX RESOURCES ILLINOIS, INC.

 

 

REX ENERGY IV, LLC

 

 

R.E. GAS DEVELOPMENT, LLC

 

 

 

 

 

 

 

By:

 

/s/ Michael L. Hodges

 

 

 

 

Michael L. Hodges

 

 

 

 

Chief Financial Officer

 

 

 

Sixth Amendment

Signature Page

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ADMINISTRATIVE

 

ROYAL BANK OF CANADA,

AGENT, ISSUING

 

as Administrative Agent

BANK AND LENDER:

 

 

 

 

 

 

 

 

 

 

 

By:

 

/s/ Rodica Dutka

 

 

Name:

 

Rodica Dutka

 

 

Title:

 

Manager, Agency

 

 

 

ROYAL BANK OF CANADA,

 

 

as Issuing Bank and as Lender

 

 

 

 

 

 

 

By:

 

/s/Don J. McKinnerney

 

 

Name:

 

Don J. McKinnerney

 

 

Title:

 

Authorized Signatory

 

 

 

Sixth Amendment

Signature Page

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SYNDICATION AGENT AND LENDER:

 

KEYBANK NATIONAL ASSOCIATION

 

 

 

 

 

 

 

By:

 

/s/ John Dravenstott

 

 

Name:

 

John Dravenstott

 

 

Title:

 

Vice President

 

 

 

Sixth Amendment

Signature Page

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DOCUMENTATION AGENT AND LENDER:

 

SUNTRUST BANK

 

 

 

 

 

 

 

By:

 

/s/ Shannon Juhan

 

 

Name:

 

Shannon Juhan

 

 

Title:

 

Vice President

 

 

 

Sixth Amendment

Signature Page

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LENDERS:

 

BMO HARRIS FINANCING, INC.

 

 

 

 

 

 

 

By:

 

/s/ James J. Ducote

 

 

Name:

 

James J. Ducote

 

 

Title:

 

Managing Director

 

 

 

Sixth Amendment

Signature Page

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WELLS FARGO BANK, NATIONAL ASSOCIATION

 

 

 

 

 

 

 

By:

 

/s/ Suzanne Ridenhour

 

 

Name:

 

Suzanne Ridenhour

 

 

Title:

 

Director

 

 

 

Sixth Amendment

Signature Page

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MUFG UNION BANK, N.A.

 

 

 

 

 

 

 

By:

 

/s/ Lara Francis

 

 

Name:

 

Lara Francis  

 

 

Title:

 

Vice President

 

 

 

Sixth Amendment

Signature Page

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CAPITAL ONE, NATIONAL ASSOCIATION

 

 

 

 

 

 

 

By:

 

/s/ Victor Ponce de Leon

 

 

Name:

 

Victor Ponce de Leon

 

 

Title:

 

Vice President

 

 

 

Sixth Amendment

Signature Page

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M&T BANK

 

 

 

 

 

 

 

By:

 

/s/ David Ladori

 

 

Name:

 

David Ladori

 

 

Title:

 

Vice President

 

 

 

Sixth Amendment

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U.S. BANK NATIONAL ASSOCIATION

 

 

 

 

 

 

 

By:

 

/s/ Daniel K. Hansen

 

 

Name:

 

Daniel K. Hansen  

 

 

Title:

 

Vice President

 

 

 

Sixth Amendment

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THE HUNTINGTON NATIONAL BANK

 

 

 

 

 

 

 

By:

 

/s/ Margaret Niekrash

 

 

Name:

 

Margaret Niekrash  

 

 

Title:

 

Vice President

 

 

 

Sixth Amendment

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ONEWEST BANK N.A.

 

 

 

 

 

 

 

By:

 

/s/ Sean Murphy

 

 

Name:

 

Sean Murphy

 

 

Title:

 

Executive Vice President

 

Sixth Amendment

Signature Page

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