Exhibit 10.1

 

 

 

THIRD AMENDMENT TO CREDIT AGREEMENT

dated as of December 9, 2014

among

Memorial Resource Development Corp.,

as Borrower,

Bank of America, N.A.,

as Administrative Agent,

Citibank, N.A.,

as Syndication Agent,

JPMorgan Chase Bank, N.A., BMO Harris Bank, N.A., Comerica Bank,

Credit Agricole Corporate and Investment Bank, Natixis, MUFG Union

Bank, N.A., and Wells Fargo Bank, National Association,

as Co-Documentation Agents

and

the Lenders party hereto

Merrill Lynch, Pierce, Fenner & Smith Incorporated,

Sole Lead Arranger and Sole Bookrunner

 

 

 

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THIRD AMENDMENT TO CREDIT AGREEMENT

This THIRD AMENDMENT TO CREDIT AGREEMENT (this “Third Amendment”), dated as of
December 9, 2014 (the “Third Amendment Effective Date”), is among MEMORIAL
RESOURCE DEVELOPMENT CORP., a corporation formed under the laws of the State of
Delaware (the “Borrower”); each of the undersigned guarantors (together with the
Borrower, collectively, the “Loan Parties”); each of the Lenders that is a
signatory hereto; and BANK OF AMERICA, N.A., as administrative agent for the
Lenders (in such capacity, together with its successors, the “Administrative
Agent”).

Recitals

A. The Borrower, the Administrative Agent and the Lenders are parties to that
certain Credit Agreement dated as of June 18, 2014 (as amended prior to the date
hereof, the “Credit Agreement”), pursuant to which the Lenders have, subject to
the terms and conditions set forth therein, made certain credit available to and
on behalf of the Borrower.

B. The parties hereto desire to enter into this Third Amendment to amend the
Credit Agreement in certain respects including, without limitation, to modify
the Restricted Payments negative covenant as set forth herein, to be effective
as of the Third Amendment Effective Date.

C. Subject to and upon the terms and conditions set forth herein, the Lenders
have agreed to enter this Third Amendment.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained and for other 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 Third Amendment, shall have the
meaning ascribed such term in the Credit Agreement, as amended hereby. Unless
otherwise indicated, all section references in this Third Amendment refer to the
Credit Agreement.

Section 2. Amendments. In reliance on the representations, warranties, covenants
and agreements contained in this Third Amendment, and subject to the
satisfaction of the conditions precedent set forth in Section 3 hereof, the
Credit Agreement shall be amended effective as of the Third Amendment Effective
Date in the manner provided in this Section 2.

2.1 Additional Definitions. Section 1.02 of the Credit Agreement is hereby
amended to add thereto in alphabetical order the following definitions which
shall read in full as follows:

“Third Amendment” means that certain Third Amendment to Credit Agreement dated
as of December 9, 2014, among the Borrower, the Guarantors, the Administrative
Agent and the Lenders party thereto.

“Third Amendment Effective Date” means December 9, 2014.

 

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2.2 Amended Definition. The definition of “Loan Documents” contained in
Section 1.02 of the Credit Agreement is hereby amended and restated in its
entirety to read in full as follows:

“Loan Documents” means this Agreement, the First Amendment, the Second
Amendment, the Third Amendment, the Notes, the Letter of Credit Agreements, the
Letters of Credit, the Agency Fee Letter, and the Security Instruments.

2.3 Amendments to Section 9.04 of the Credit Agreement. Section 9.04(a) of the
Credit Agreement is hereby amended by (a) deleting the “and” at the end of
clause (ii) thereof, (b) replacing the “.” at the end of clause (iii) thereof
with “; and”, and (c) adding the following new clause (iv) thereto which shall
read in full as follows:

(iv) the Borrower may repurchase Equity Interests issued by it; provided that
(A) no Default or Event of Default exists or results therefrom, (B) immediately
after giving effect to such repurchase, Availability shall not be less than 15%
of the total Commitments at such time, (C) the Borrower will be in pro forma
compliance with all financial covenants set forth in Section 9.01 immediately
after giving effect to such repurchase, (D) the aggregate amount of such
Restricted Payments made under this Section 9.04(a)(iv) shall not exceed
$50,000,000, and (E) any such repurchase must be made, if at all, on or prior to
the first anniversary of the Third Amendment Effective Date.

Section 3. Conditions Precedent. The effectiveness of the amendments to the
Credit Agreement contained in Section 2 hereof is subject to the following:

3.1 The Administrative Agent shall have received counterparts of this Third
Amendment from the Loan Parties and the Majority Lenders.

3.2 The Administrative Agent shall have received all fees and other amounts due
and payable on or prior to the Third Amendment Effective Date.

3.3 No Default, Event of Default, or Borrowing Base Deficiency shall exist
immediately prior to or after giving effect to the amendments to the Credit
Agreement contained in Section 2 hereof.

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

The Administrative Agent shall notify the Borrower and the Lenders of the
effectiveness of this Third Amendment, and such notice shall be conclusive and
binding.

Section 4. Representations and Warranties; Etc. Each Loan Party hereby affirms:
(a) that as of the date hereof, all of the representations and warranties
contained in each Loan Document to which such Loan Party is a party are true and
correct in all material respects as though made on and as of the date hereof
(unless made as of a specific earlier date, in which case, was true as of such
date and except to the extent that any such representation and warranty

 

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is qualified by materiality, in which case such representation and warranty
shall continue to be true and correct in all respects), (b) no Defaults exist
under the Loan Documents or will, after giving effect to this Third Amendment,
exist under the Loan Documents and (c) no Material Adverse Effect has occurred.

Section 5. Miscellaneous.

5.1 Confirmation and Effect. The provisions of the Credit Agreement (as amended
by this Third Amendment) shall remain in full force and effect in accordance
with its terms following the effectiveness of this Third Amendment. Each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein”, or words of like import shall mean and be a reference to the Credit
Agreement as amended hereby, and each reference to the Credit Agreement in any
other document, instrument or agreement executed and/or delivered in connection
with the Credit Agreement shall mean and be a reference to the Credit Agreement
as amended hereby.

5.2 Ratification and Affirmation of Loan Parties. Each of the Loan Parties
hereby expressly (a) acknowledges the terms of this Third Amendment,
(b) ratifies and affirms its obligations under the Guaranty Agreement and the
other Loan Documents to which it is a party, as amended hereby,
(c) acknowledges, renews and extends its continued liability under the Guaranty
Agreement and the other Loan Documents to which it is a party, as amended
hereby, (d) ratifies and affirms all Liens granted by it pursuant to the Loan
Documents to secure the Indebtedness (except to the extent that such Liens have
been released in accordance with the Loan Documents) and (e) agrees that its
guarantee under the Guaranty Agreement and the other Loan Documents to which it
is a party remains in full force and effect with respect to the Indebtedness.

5.3 Counterparts. This Third 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 Third Amendment by facsimile or electronic (e.g.,
pdf) transmission shall be effective as delivery of a manually executed original
counterpart hereof.

5.4 No Oral Agreement. THIS WRITTEN THIRD 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 UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

5.5 Governing Law. THIS THIRD 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 NEW YORK.

5.6 Payment of Expenses. The Borrower agrees to pay or reimburse the
Administrative Agent for all of its out-of-pocket costs and expenses incurred in
connection with this Third 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.

 

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5.7 Severability. Any provision of this Third 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.

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

5.9 FATCA. For purposes of determining withholding Taxes imposed under FATCA,
from and after the Third Amendment Effective Date, the Borrower and the
Administrative Agent shall treat (and the Lenders hereby authorize the
Administrative Agent to treat) the Credit Agreement as not qualifying as a
“grandfathered obligation” within the meaning of Treasury Regulation
Section 1.1471-2(b)(2)(i).

[Signature pages follow]

 

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

 

BORROWER:   MEMORIAL RESOURCE DEVELOPMENT CORP.,   a Delaware corporation   By:
 

/s/ Andrew J. Cozby

  Name:   Andrew J. Cozby   Title:   Senior Vice President and Chief Financial
Officer GUARANTORS:   MEMORIAL RESOURCE FINANCE CORP.   MRD OPERATING LLC    
By:   Memorial Resource Development Corp.,       its sole member   BETA
OPERATING COMPANY, LLC     By:   Memorial Resource Development Corp.,       its
sole member   WILDHORSE RESOURCES, LLC     By:   Memorial Resource Development
Corp.,       its sole member     By:  

/s/ Andrew J. Cozby

    Name:   Andrew J. Cozby     Title:   Senior Vice President and Chief
Financial Officer   CLASSIC HYDROCARBONS GP CO., L.L.C.   CLASSIC HYDROCARBONS
HOLDINGS, L.P.     By:   Classic Hydrocarbons GP Co., L.L.C.,       its general
partner     By:  

/s/ Andrew J. Cozby

    Name:   Andrew J. Cozby     Title:   Vice President, Finance   CLASSIC
OPERATING CO. LLC     By:   Classic Hydrocarbons, Inc.,       its sole member  
CLASSIC HYDROCARBONS OPERATING, LLC   CLASSIC HYDROCARBONS, INC.   CRATON ENERGY
GP III, LLC   CRATON ENERGY HOLDINGS III, LP     By:   Craton Energy GP III,
LLC,       its general partner   By:  

/s/ Andrew J. Cozby

  Name:   Andrew J. Cozby   Title:   Treasurer

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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ADMINISTRATIVE AGENT     BANK OF AMERICA, N.A., as Administrative Agent AND
LENDER:           By:  

/s/ Christine Trotter

    Name:   Christine Trotter     Title:   Assistant Vice President     BANK OF
AMERICA, N.A., as a Lender     By:  

/s/ Raza Jafferi

    Name:   Raza Jafferi     Title:   Vice President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:     CITIBANK, N.A., as a Lender     By:  

/s/ Phillip Ballard

    Name:   Phillip Ballard     Title:   Vice-President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:   JPMORGAN CHASE BANK, N.A., as a Lender   By:  

 

  Name:  

 

  Title:  

 

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:   BMO HARRIS BANK, N.A., as a Lender   By:  

/s/ Matthew L. Davis

  Name:   Matthew L. Davis   Title:   Vice President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:   COMERICA BANK, as a Lender   By:  

/s/ Jeff Treadway

  Name:   Jeff Treadway   Title:   Senior Vice President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:   CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as a Lender   By:  

 

  Name:  

 

  Title:  

 

  By:  

 

  Name:  

 

  Title:  

 

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:     NATIXIS, as a Lender     By:  

 

    Name:  

 

    Title:  

 

    By:  

 

    Name:  

 

    Title:  

 

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:     MUFG UNION BANK, N.A., as a Lender     By:  

/s/ Stacy Goldstein

    Name:   Stacy Goldstein     Title:   Vice President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:     WELLS FARGO BANK, NATIONAL ASSOCIATION,     as a Lender     By:  

/s/ Shiloh Davila

    Name:   Shiloh Davila     Title:   Vice President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:     BARCLAYS BANK PLC, as a Lender     By:  

 

    Name:  

 

    Title:  

 

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:     ING CAPITAL LLC, as a Lender     By:  

/s/ Juli Bieser

    Name:   Juli Bieser     Title:   Director     By:  

/s/ Michael Price

    Name:   Michael Price     Title:   Managing Director

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:     ROYAL BANK OF CANADA, as a Lender     By:  

/s/ Mark Lumpkin, Jr.

    Name:   Mark Lumpkin, Jr.     Title:   Authorized Signatory

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:    COMMONWEALTH BANK OF AUSTRALIA, as a Lender

  By:  

 

  Name:  

 

  Title:  

 

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:   CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender   By:  

/s/ Tony Alexander

  Name:   Tony Alexander   Title:   Vice President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]

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LENDER:   ASSOCIATED BANK, N.A., as a Lender   By:  

/s/ Farhan Iqbal

  Name:   Farhan Iqbal   Title:   Senior Vice President

[Signature Page to Third Amendment to Credit Agreement

Memorial Resource Development Corp.]