Exhibit 10.1

 

 

 

FIFTH AMENDMENT TO

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of September 18, 2015

among

GULFPORT ENERGY CORPORATION,

as Borrower,

THE BANK OF NOVA SCOTIA,

as Administrative Agent

and

The Lenders Party Hereto

KEYBANK NATIONAL ASSOCIATION and

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

as Co-Syndication Agents

WELLS FARGO BANK, N.A. and

BARCLAYS BANK PLC,

as Co-Documentation Agents

 

 

 

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FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
is entered into as of September 18, 2015, among GULFPORT ENERGY CORPORATION, a
Delaware corporation (“Borrower”), THE BANK OF NOVA SCOTIA, as Administrative
Agent (“Administrative Agent”) and L/C Issuer, and the Lenders party hereto.

R E C I T A L S

A. Borrower, the financial institutions signing as Lenders thereto,
Administrative Agent and the other agents party thereto are parties to an
Amended and Restated Credit Agreement dated as of December 27, 2013, as amended
by a First Amendment to Amended and Restated Credit Agreement dated as of
April 23, 2014, a Second Amendment to Amended and Restated Credit Agreement
dated as of November 26, 2014, a Third Amendment to Amended and Restated Credit
Agreement dated as of April 10, 2015, and a Fourth Amendment to Amended and
Restated Credit Agreement and Limited Consent and Waiver dated as of May 29,
2015 (collectively, the “Original Credit Agreement”); the Original Credit
Agreement as amended and waived by this Amendment is referred to herein as the
“Credit Agreement”).

B. The parties desire to amend the Original Credit Agreement as hereinafter
provided.

NOW, THEREFORE, in consideration of these premises and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1. Same Terms. All terms used herein that are defined in the Original Credit
Agreement shall have the same meanings when used herein, unless the context
hereof otherwise requires or provides. In addition, (i) all references in the
Original Credit Agreement and, where appropriate in the context, in the other
Loan Documents to the “Agreement” shall mean the Original Credit Agreement, as
amended and waived by this Amendment, as the same may hereafter be amended and
waived from time to time, and (ii) all references in the Loan Documents to the
“Loan Documents” shall mean the Loan Documents, as amended and waived by the
Modification Papers, as the same may hereafter be amended and waived from time
to time. In addition, the following terms have the meanings set forth below:

“Effective Date” means the date on which the conditions specified in Section 2
below are satisfied (or waived in writing by the Administrative Agent).

“Modification Papers” means this Amendment and all of the other documents and
agreements executed in connection with the transactions contemplated by this
Amendment.

2. Conditions Precedent. The obligations and agreements of the Lenders as set
forth in this Amendment are subject to the satisfaction, unless waived in
writing by Administrative Agent, of each of the following conditions (and upon
such satisfaction, this Amendment shall be deemed to be effective as of the
Effective Date):

A. Fifth Amendment to Credit Agreement. This Amendment shall have been duly
executed and delivered by each of the parties hereto.

B. Borrowing Base Increase Fee. Borrower shall have paid Administrative Agent
for the account of Lenders a fee for the incremental increase of the Borrowing
Base in the amount agreed upon by Borrower, Administrative Agent and Lenders.

 

FIFTH AMENDMENT – Page 1

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C. Fees and Expenses. Administrative Agent shall have received payment of all
out-of-pocket fees and expenses (including reasonable attorneys’ fees and
expenses) incurred by Administrative Agent in connection with the preparation,
negotiation and execution of the Modification Papers.

3. Amendments to Original Credit Agreement. On the Effective Date, the Original
Credit Agreement shall be deemed to be amended as follows:

(a) The definition of “Eurodollar Rate” in Section 1.01 of the Original Credit
Agreement shall be amended by inserting after the fraction and before the word
“Where,” the phrase “, provided that if the ‘Eurodollar Rate’ shall be less than
zero, such rate shall be deemed to be zero for purposes of this Agreement;”.

(b) The definition of “Federal Funds Rate” in Section 1.01 of the Original
Credit Agreement shall be amended by inserting immediately prior to the period
at the end thereof, the phrase “, provided that if the ‘Federal Funds Rate’
shall be less than zero, such rate shall be deemed to be zero for purposes of
this Agreement”.

(c) Section 1.01 of the Original Credit Agreement shall be amended by amending
and restating the following definition to read in its entirety as follows:

“‘L/C Sublimit’ means, at any time, an amount equal to the greater of
$150,000,000 or 40% of the Borrowing Base existing at such time. The L/C
Sublimit is part of, and not in addition to, the Aggregate Commitments.”

(d) Section 7.12(a) of the Original Credit Agreement shall be amended to read in
its entirety as follows:

“(a) Net Funded Debt to EBITDAX Ratio. Maintain on a consolidated basis a ratio
of Net Funded Debt to EBITDAX not exceeding 4.00:1.00.”

(e) Section 8.02(i) shall be amended by deleting the word “and” at the end
thereof, and Section 8.02(j) shall be relettered as “(k)”, and a new
Section 8.02(j) shall be added which shall read in its entirety as follows:

“(j) Investments in joint ventures formed to own and operate midstream assets;
provided that the aggregate outstanding amount of all such Investments made in
reliance on this clause (j) does not exceed $100,000,000; and”

(f) Section 8.03(p) of the Original Credit Agreement shall be amended to read in
its entirety as follows:

“(p) other Indebtedness in an aggregate principal amount at any time outstanding
under this clause (p) that does not exceed the greater of (i) $10,000,000 and
(ii) two percent (2%) of the Borrowing Base as in effect at the time of the most
recent incurrence of Indebtedness under this clause (p).”

 

FIFTH AMENDMENT – Page 2

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(g) Section 8.05(p) shall be amended by deleting the word “or” at the end
thereof, Section 8.05(q) shall be amended by adding the word “or” at the end
thereof, and a new Section 8.05(r) shall be added which shall read in its
entirety as follows:

“(r) Dispositions of contracts (and rights or interests therein or thereunder)
or other arrangements constituting a release of natural gas interstate
transportation capacity, which Dispositions do not (when considered
cumulatively, and taken together with other related transactions and contractual
arrangements) deprive Borrower of the benefit of any material portion of
Borrower’s Mineral Interests;”

(h) The preamble to Section 8.09(a)(ii) shall be amended to read in its entirety
as follows:

“(ii) the notional volumes for which (when aggregated with other Swap Contracts
then in effect other than puts and floors and basis differential swaps) do not
exceed, as of the date such Swap Contract is executed:”

(i) The second and third unnumbered paragraphs after Section 8.09(a)(iv) of the
Original Credit Agreement shall be amended to read in their entirety as follows:

“Notwithstanding any other provision of this Section 8.09(a), the Borrower and
its Subsidiaries may enter into (A) put and floor options and (B) basis
differential swaps, in each case, with respect to notional volumes not in excess
of the notional volumes that may otherwise be hedged pursuant to this
Section 8.09 (but not giving effect to the parenthetical in
Section 8.09(a)(ii)).

For purposes of this paragraph, “Tested Swap Contracts” means Swap Contracts
entered into to hedge prices on oil, natural gas and natural gas liquids
measured separately expected to be produced by the Loan Parties other than
(A) put and floor options, and (B) basis differential swaps.”

(j) Schedule 2.01 to the Original Credit Agreement shall be replaced with
Schedule 2.01 attached to this Amendment.

(k) The last line of the Leverage Ratio Exhibit in Schedule 2 to the Compliance
Certificate attached as Exhibit C to the Original Credit Agreement shall be
amended to read as follows:

 

Maximum Permitted:

     4.00 to 1.00   

(l) The last line of the Pro Forma Leverage Ratio Exhibit in the Schedule to the
Designated Investment Entity Certificate attached as Exhibit I to the Original
Credit Agreement shall be amended to read as follows:

 

Maximum Permitted:

     4.00 to 1.00   

4. Increase of Borrowing Base. The Borrowing Base is hereby increased from
$575,000,000 to $700,000,000. The Borrowing Base shall remain at this amount
until next redetermined in accordance with Article IV of the Credit Agreement.

5. Certain Representations. Borrower represents and warrants that, as of the
Effective Date: (a) Borrower has full power and authority to execute the
Modification Papers to which it is a party and such Modification Papers
constitute the legal, valid and binding obligation of Borrower enforceable in
accordance with their terms, except as enforceability may be limited by general
principles of equity and applicable bankruptcy, insolvency, reorganization,
moratorium, and other similar laws affecting the

 

FIFTH AMENDMENT – Page 3

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enforcement of creditors’ rights generally; (b) no authorization, approval,
consent or other action by, notice to, or filing with, any Governmental
Authority or other Person is required for the execution, delivery and
performance by Borrower thereof; and (c) no Default has occurred and is
continuing or will result from the consummation of the transactions contemplated
by this Amendment. In addition, Borrower represents that after giving effect to
the Modification Papers, all representations and warranties contained in the
Credit Agreement and the other Loan Documents are true and correct in all
material respects (provided that any such representations or warranties that
are, by their terms, already qualified by reference to materiality shall be true
and correct without regard to such additional materiality qualification) on and
as of the Effective Date as if made on and as of such date except to the extent
that any such representation or warranty expressly relates to an earlier date,
in which case such representation or warranty is true and correct in all
material respects (or true and correct without regard to such additional
materiality qualification, as applicable) as of such earlier date.

6. No Further Amendments. Except as previously amended or waived in writing or
as amended or waived hereby, the Original Credit Agreement shall remain
unchanged and all provisions shall remain fully effective between the parties.

7. Acknowledgments and Agreements. Borrower acknowledges that on the date hereof
all outstanding Obligations, in each case as amended and waived hereby, are
payable in accordance with their terms, and Borrower waives any defense, offset,
counterclaim or recoupment with respect thereto. Borrower, Administrative Agent,
L/C Issuer and each Lender do hereby adopt, ratify and confirm the Original
Credit Agreement, as amended and waived hereby, and acknowledge and agree that
the Original Credit Agreement, as amended and waived hereby, is and remains in
full force and effect. Borrower acknowledges and agrees that its liabilities and
obligations under the Original Credit Agreement and under the other Loan
Documents, in each case as amended and waived hereby, are not impaired in any
respect by this Amendment. Upon the effectiveness of this Amendment, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, or words of
like import shall mean and be a reference to the Credit Agreement, as amended
and waived hereby.

8. Limitation on Agreements. The consents, waivers and modifications set forth
herein are limited precisely as written and shall not be deemed (a) to be a
consent under or a waiver of or an amendment to any other term or condition in
the Original Credit Agreement or any of the other Loan Documents, or (b) to
prejudice any other right or rights that Administrative Agent or the Lenders now
have or may have in the future under or in connection with the Original Credit
Agreement and the other Loan Documents, each as amended and waived hereby, or
any of the other documents referred to herein or therein. The Modification
Papers shall constitute Loan Documents for all purposes.

9. Confirmation of Security. Borrower hereby confirms and agrees that all of the
Collateral Documents that presently secure the Obligations shall continue to
secure, in the same manner and to the same extent provided therein, the payment
and performance of the Obligations as described in the Original Credit Agreement
as modified by this Amendment.

10. Counterparts. This Amendment may be executed in any number of counterparts,
each of which when executed and delivered shall be deemed an original, but all
of which constitute one instrument. In making proof of this Amendment, it shall
not be necessary to produce or account for more than one counterpart thereof
signed by each of the parties hereto.

11. Incorporation of Certain Provisions by Reference. The provisions of
Section 11.15. of the Original Credit Agreement captioned “Governing Law,
Jurisdiction; Etc.” and Section 11.16. of the Original Credit Agreement
captioned “Waiver of Right to Trial by Jury” are incorporated herein by
reference for all purposes.

 

FIFTH AMENDMENT – Page 4

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12. Entirety, Etc. This Amendment, the other Modification Papers and all of the
other Loan Documents embody the entire agreement between the parties. THIS
AMENDMENT, THE OTHER MODIFICATION PAPERS AND ALL OF THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT AMONG 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 AMONG THE PARTIES.

[This space is left intentionally blank. Signature pages follow.]

 

FIFTH AMENDMENT – Page 5

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment to be
effective as of the date and year first above written.

 

   

BORROWER

 

GULFPORT ENERGY CORPORATION

    By:   /s/ Aaron Gaydosik       Aaron Gaydosik       Chief Financial Officer

 

FIFTH AMENDMENT – Signature Page S-1

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ADMINISTRATIVE AGENT:

 

THE BANK OF NOVA SCOTIA,

as Administrative Agent and L/C Issuer

    By:   /s/ Alan Dawson       Alan Dawson       Director    

LENDERS:

 

THE BANK OF NOVA SCOTIA,

as a Lender

    By:   /s/ Alan Dawson       Alan Dawson       Director

 

FIFTH AMENDMENT – Signature Page S-2

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KEYBANK NATIONAL ASSOCIATION,

as a Lender

    By:   /s/ John Dravenstott     Name:   John Dravenstott     Title:   Vice
President

 

FIFTH AMENDMENT – Signature Page S-3

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CREDIT SUISSE AG,

Cayman Islands Branch,

as a Lender

    By:   /s/ Nupur Kumar     Name:   Nupur Kumar     Title:   Authorized
Signatory     By:   /s/ Michael Moreno     Name:   Michael Moreno     Title:  
Authorized Signatory

 

FIFTH AMENDMENT – Signature Page S-4

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BARCLAYS BANK PLC,

as a Lender

    By:   /s/ Christopher Lee     Name:   Christopher Lee     Title:   Vice
President

 

FIFTH AMENDMENT – Signature Page S-5

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WELLS FARGO BANK, N.A.,

as a Lender

    By:   /s/ David C. Brooks     Name:   David C. Brooks     Title:   Director

 

FIFTH AMENDMENT – Signature Page S-6

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AMEGY BANK NATIONAL ASSOCIATION,

as a Lender

    By:   /s/ Jill McSorley     Name:   Jill McSorley     Title:   Senior Vice
President

 

FIFTH AMENDMENT – Signature Page S-7

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BNP PARIBAS,

as a Lender

    By:   /s/ Scott Joyce     Name:   Scott Joyce     Title:   Managing Director
    By:   /s/ Sriram Chandrasekaran     Name:   Sriram Chandrasekaran     Title:
  Director

 

FIFTH AMENDMENT – Signature Page S-8

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COMPASS BANK,

as a Lender

    By:   /s/ Kathleen J. Bowen     Name:   Kathleen J. Bowen     Title:  
Managing Director

 

FIFTH AMENDMENT – Signature Page S-9

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PNC BANK, NATIONAL ASSOCIATION,

as a Lender

    By:   /s/ Sandra Aultman     Name:   Sandra Aultman     Title:   Managing
Director

 

FIFTH AMENDMENT – Signature Page S-10

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U.S. BANK NATIONAL ASSOCIATION,

as a Lender

    By:   /s/ Nicholas T. Hanford     Name:   Nicholas T. Hanford     Title:  
Vice President

 

FIFTH AMENDMENT – Signature Page S-11

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ASSOCIATED BANK, N.A.,

as a Lender

    By:   /s/ Kyle Lewis     Name:   Kyle Lewis     Title:   Vice President

 

FIFTH AMENDMENT – Signature Page S-12

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IBERIABANK,

as a Lender

    By:   /s/ Moni Collins     Name:   Moni Collins     Title:   Senior Vice
President

 

FIFTH AMENDMENT – Signature Page S-13

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SCHEDULE 2.01

Commitments

and Applicable Percentages

 

Lender

   Applicable Percentage     Commitment  

The Bank of Nova Scotia

     12.14285714 %    $ 85,000,000   

KeyBank National Association

     10.71428571 %    $ 75,000,000   

Credit Suisse AG, Cayman Islands Branch

     10.71428571 %    $ 75,000,000   

Barclays Bank PLC

     10.71428571 %    $ 75,000,000   

Wells Fargo Bank, N.A.

     10.71428571 %    $ 75,000,000   

Amegy Bank National Association

     8.85714286 %    $ 62,000,000   

BNP Paribas

     6.35714286 %    $ 44,500,000   

Compass Bank

     6.35714286 %    $ 44,500,000   

PNC Bank, National Association

     6.35714286 %    $ 44,500,000   

U.S. Bank National Association

     6.35714286 %    $ 44,500,000   

Associated Bank, N.A.

     5.71428571 %    $ 40,000,000   

IberiaBank

     5.00000000 %    $ 35,000,000   

TOTAL:

     100.00 %    $ 700,000,000   

Maximum Facility Amount: $1,500,000,000

 

SCHEDULE 2.01, Commitments and Applicable Percentages – Solo Page