Exhibit 10.1
 
 
______________________________________________________________________________
 
FIFTH AMENDMENT TO FIRST AMENDED AND
 
RESTATED CREDIT AGREEMENT
 
among
 
SWIFT ENERGY COMPANY
 
SWIFT ENERGY OPERATING, LLC
 
THE LENDERS PARTY HERETO
 
and
 
JPMORGAN CHASE BANK, N.A.,
 
as Administrative Agent
 

 
Effective
 
May 1, 2009
 
______________________________________________________________________________
 

 
 

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Table of Contents
 
Article I
DEFINITIONS AND INTERPRETATION
1
1.1
Terms Defined Above
1
1.2
Terms Defined in Credit Agreement
1
1.3
References
1
1.4
Articles and Sections
2
1.5
Number and Gender
2
Article II
AMENDMENTS
2
2.1
Amendments to Section 1.2
2
2.2
Amendment to Section 2.4
4
2.3
Amendment to Section 2.11
4
2.4
Addition of Section 2.27
4
2.5
Amendment to Section 6.1
5
2.6
Amendment to Section 6.16
5
2.7
Substitution of Exhibit X
5
2.8
Amendment to Table of Contents
5
Article III
RATIFICATION AND ACKNOWLEDGMENTS
5
Article IV
MISCELLANEOUS
6
4.1
Successors and Assigns
6
4.2
Rights of Third Parties
6
4.3
Counterparts
6
4.4
Integration
6
4.5
Severability
6
4.6
Governing Law
6

 

 

 
-  i -
 

 
 

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FIFTH AMENDMENT TO FIRST AMENDED AND
 
RESTATED CREDIT AGREEMENT
 
This FIFTH AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) executed effective as of May 1, 2009 (the “Effective Date”) is by
and among SWIFT ENERGY COMPANY, a Texas corporation (“New Swift”), SWIFT ENERGY
OPERATING, LLC, a Texas limited liability company and successor by merger to the
Texas corporation formerly known as Swift Energy Company (“Operating” and New
Swift and Operating, collectively, the “Borrower”), the lenders party to that
certain First Amended and Restated Credit Agreement dated as of June 29, 2004 by
and among the Texas corporation then known as Swift Energy Company, the lenders
party thereto or bound thereby from time to time (the “Lenders”), and Bank One,
NA, as administrative agent for such lenders (as amended to the Effective Date,
the “Credit Agreement”), and JPMORGAN CHASE BANK, N.A., a national banking
association and successor by merger to Bank One, NA, as administrative agent for
such Lenders (in such capacity, the “Agent”).
 
W I T N E S S E T H:
 
WHEREAS, the Borrower, the Lenders and the Agent are parties to the Credit
Agreement; and
 
WHEREAS, the Borrower, the Lenders and the Agent desire to amend the Credit
Agreement in the particulars hereinafter provided;
 
NOW, THEREFORE, in consideration of the premises and the mutual covenants and
agreements contained in the Credit Agreement and herein, the parties hereto
agree as follows:
 
ARTICLE I
 

 
DEFINITIONS AND INTERPRETATION
 
1.1 Terms Defined Above.  As used in this Fifth Amendment to First Amended and
Restated Credit Agreement, each of the terms “Agent,” “Amendment,” “Borrower,”
“Credit Agreement,” “Effective Date,” “Lenders,” “New Swift and “Operating”
shall have the meaning assigned to such term hereinabove.
 
1.2 Terms Defined in Credit Agreement.  Each term defined in the Credit
Agreement and used herein without definition shall have the meaning assigned to
such term in the Credit Agreement, unless herein expressly provided to the
contrary.
 
1.3 References.  References in this Amendment to Exhibit, Article or Section
numbers shall be to Exhibits, Articles or Sections of this Amendment, unless
expressly stated to the contrary.  References in this Amendment to “hereby,”
“herein,” “hereinafter,” “hereinabove,” “hereinbelow,” “hereof,” “hereunder” and
words of similar import shall be to this Amendment in its entirety and not only
to the particular Schedule, Exhibit, Article, or Section in which such reference
appears.  Specific enumeration herein shall not exclude the general and, in such
regard, the terms “includes” and “including” used herein shall mean “includes,
without limitation,” or “including, without limitation,” as the case may be,
where appropriate.  Except as otherwise indicated, references in this Amendment
to statutes, sections, or regulations are to be construed as including all
statutory or regulatory provisions consolidating, amending, replacing,
succeeding, or supplementing the statute, section, or regulation referred
to.  References in this Amendment to “writing” include printing, typing,
lithography, facsimile reproduction, and other means of reproducing words in a
tangible visible form.  References in this Amendment to amendments and other
contractual instruments shall be deemed to include all exhibits and appendices
attached thereto and all subsequent amendments and other modifications to such
instruments, but only to the extent such amendments and other modifications are
not prohibited by the terms of the Credit Agreement or this
Amendment.  References in this Amendment to Persons include their respective
successors and permitted assigns.
 
1

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1.4 Articles and Sections.  This Amendment, for convenience only, has been
divided into Articles and Sections; and it is understood that the rights and
other legal relations of the parties hereto shall be determined from this
instrument as an entirety and without regard to the aforesaid division into
Articles and Sections and without regard to headings prefixed to such Articles
or Sections.
 
1.5 Number and Gender.  Whenever the context requires, reference herein made to
the single number shall be understood to include the plural; and likewise, the
plural shall be understood to include the singular.  Definitions of terms
defined in the singular or plural shall be equally applicable to the plural or
singular, as the case may be, unless otherwise indicated.  Words denoting sex
shall be construed to include the masculine, feminine and neuter, when such
construction is appropriate; and specific enumeration shall not exclude the
general but shall be construed as cumulative.
 
ARTICLE II
 
 
AMENDMENTS
 
Effective as of the Effective Date, the Borrower, the Lenders and the Agent
hereby amend the Credit Agreement as follows:
 
2.1 Amendments to Section 1.2.  Section 1.2 of the Credit Agreement is amended
to (a) substitute the following for the definitions of “Alternative Base Rate,”
“New Subordinated Debt” and “Permitted Refinancing Debt”, respectively,
appearing in such Section 1.2, each in its entirety:
 
“‛Alternative Base Rate’ shall mean, for any day, a rate per annum equal to the
sum of (a) the greatest of (i) the Prime Rate in effect on such day, (ii) the
Federal Funds Rate in effect on such day plus ½ of 1% and (iii) the Adjusted
Eurodollar Rate for a one month Interest Period on such day (or if such day is
not a Business Day, the immediately preceding Business Day) plus 1%; provided
that, for the avoidance of doubt, the Adjusted Eurodollar Rate for any day shall
be based on the rate appearing on the Reuters BBA Libor Rates Page 3750 (or on
any successor or substitute page of such page) at approximately 11:00 a.m.
London time on such day, plus (b) the relevant Applicable Margin.  Any change in
the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds
Rate or the Adjusted Eurodollar Rate shall be effective from and including the
effective date of such change in the Prime Rate, the Federal Funds Rate or the
Adjusted LIBO Rate, respectively.
 
-2-

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‛New Subordinated Debt’ shall mean Indebtedness of the Borrower (including
senior unsecured notes, subordinated notes, convertible notes, preferred stock
with any mandatory redemption and other Indebtedness not ranking pari passu with
the Obligations) of up to $250,000,000 in principal amount, in such form and
with terms, including, when appropriate, the subordination of such Indebtedness
to the payment in full of the Obligations and the termination of the
Commitments, approved by the Administrative Agent in writing in advance of the
incurrence thereof.
 
‛Permitted Refinancing Debt’ shall mean Indebtedness of the Borrower (including
senior unsecured notes, subordinated notes, convertible preferred stock with any
mandatory redemption and other Indebtedness not ranking pari passu with the
Obligations), in such form and with terms, including, when appropriate, the
subordination of such Indebtedness to the payment in full of the Obligations and
the termination of the Commitments, approved by the Administrative Agent in
writing in advance of the incurrence thereof, resulting from the refinancing of
the Senior Notes due 2011.”
 
                and (b) insert the following definition in its proper
alphabetical location in such Section 1.2:
 
“‛Defaulting Lender’ shall mean any Lender, as reasonably determined by the
Administrative Agent, that has (a) failed to fund any portion of its Loans or
participations in Letters of Credit within three Business Days of the date
required to be funded by it hereunder, (b) notified the Borrower, the
Administrative Agent or any Lender in writing that it does not intend to comply
with any of its funding obligations under this Agreement or has made a public
statement to the effect that it does not intend to comply with its funding
obligations under this Agreement or under other agreements in which it commits
to extend credit, (c) failed, within three Business Days after a request by the
Administrative Agent, to confirm that it will comply with the terms of this
Agreement relating to its obligations to fund prospective Loans and
participations in then outstanding Letters of Credit, (d) otherwise failed to
pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within three Business Days of the date when
due, unless the subject of a good faith dispute, or (e) (i) become or is
insolvent or has a parent company that has become or is insolvent or (ii) become
the subject of a Insolvency Proceeding or had a receiver, conservator, trustee
or custodian appointed for it, or has taken any action in furtherance of, or
indicating its consent to, approval of or acquiescence in any such proceeding or
appointment or has a parent company that has become the subject of a Insolvency
Proceeding, or had a receiver, conservator, trustee or custodian appointed for
it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment.”
 
-3-

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                2.2 Amendment to Section 2.4.  The first sentence of Section 2.4
of the Credit Agreement is amended to read as follows in its entirety:
 
“Anything herein to the contrary notwithstanding, no more than fifteen (15)
separate Eurodollar Rate Loans shall be outstanding at any one time, with, for
purposes of this Section 2.2, all Eurodollar Rate Loans for the same Interest
Period constituting one Eurodollar Rate Loan.”
 
          2.3 Amendment to Section 2.11.  Section 2.11 of the Credit Agreement
is amended to substitute the following for subsection (e) of such Section 2.11
in its entirety:
 
        “(e)           Upon the incurrence of any New Subordinated Debt (other
than Permitted Refinancing Debt), the Borrowing Base shall be automatically
reduced by an amount equal to thirty percent (30%) of the amount of the New
Subordinated Debt incurred and the Borrower shall be obligated for any mandatory
prepayment of the then existing Loan Balance and/or provision of cash as
collateral for all or a portion of the then existing L/C Exposure, in accordance
with the provisions of Section 2.12, resulting from such further automatic
reduction of the Borrowing Base.  For the avoidance of doubt, offerings of
preferred stock with no mandatory redemption or mandatory redemption provisions
approved by the Administrative Agent in writing in advance of the issuance
thereof and a dividend and cash payments thereof, if any, approved by the
Administrative Agent in writing in advance of the issuance thereof will not
reduce the Borrowing Base.  Also for the avoidance of doubt, offerings of common
stock will not reduce the Borrowing Base and no prior approval from either the
Administrative Agent or the Lenders is necessary to conduct any such offering.”
 
                2.4 Addition of Section 2.27.  The Credit Agreement is amended
to add thereto a new Section 2.27 reading as follows:
 
                  “2.27         Defaulting Lenders.  Notwithstanding any
provision of this Agreement to the contrary, if any Lender becomes a Defaulting
Lender, then the following provisions shall apply for so long as such Lender is
a Defaulting Lender:
 
                  (a)           if any L/C Exposure exists at the time a Lender
is a Defaulting Lender, the Borrower shall, within one Business Day following
notice by the Administrative Agent, cash collateralize such Defaulting Lender’s
Percentage Share of the then existing L/C Exposure in accordance with the
procedures set forth in Section 2.12 for so long as such L/C Exposure is
outstanding; and
 
-4-

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                  (b)           the Administrative Agent shall not be required
to issue, amend or increase any Letter of Credit unless it is satisfied that
cash collateral will be provided by the Borrower in accordance with Section 2.12
and this Section 2.27.”
 
               2.5 Amendment to Section 6.1.  Clause (g) of the proviso
appearing in Section 6.1 of the Credit Agreement is amended to read as follows
in its entirety:
 
                 “(g) the Senior Notes due 2011;”.
 
              2.6 Amendment to Section 6.16.  Section 6.16 of the Credit
Agreement is amended to read as follows in its entirety:
 
                “6.16              New Subordinated Debt, Senior Subordinated
Debt and Senior Notes due 2011.  Amend, extend or modify any of the terms or
provisions of any documents, notes or agreements evidencing or governing the
Senior Notes due 2011, any Permitted Refinancing Debt or any New Subordinated
Debt or consent to any of the foregoing; or at any time following the occurrence
and during the continuance of any Default or Event of Default, make any payment,
whether in cash or other Property, on or with respect to the Senior Notes due
2011, any Permitted Refinancing Debt or any New Subordinated Debt.  The Borrower
may not redeem any part of the Senior Notes due 2011, any Permitted Refinancing
Debt or any New Subordinated Debt without the consent of the Administrative
Agent, except the Senior Notes due 2011 may be redeemed or repurchased with
proceeds of any Permitted Refinancing Debt or any New Subordinated Debt.”
 
            2.7 Substitution of Exhibit X.  Exhibit X attached to this Amendment
is substituted for Exhibit X to the Credit Agreement.
 
           2.8 Amendment to Table of Contents.  The Table of Contents in the
Credit Agreement is amended to give effect to this Amendment.
 
ARTICLE III
 
RATIFICATION AND ACKNOWLEDGMENTS
 
Each of the Borrower, the Lenders and the Agent does hereby adopt, ratify and
confirm the Credit Agreement, as amended hereby, and each of the other Loan
Documents to which it is a party and acknowledges and agrees that the Credit
Agreement, as amended hereby, and each of the other Loan Documents to which it
is a party is and remains in full force and effect.  Furthermore, the Borrower,
the Lenders and the Agent acknowledge and agree that, as of the Effective Date,
the Borrowing Base is set at $300,000,000 and the Commitment Amount is set at
$300,000,000 and each of such amounts shall remain in effect until the Borrower
receives notice from the Agent of a revised Borrowing Base pursuant to Section
2.11 of the Credit Agreement or the Borrower notifies the Agent of the election
by the Borrower to reduce the Commitment Amount pursuant to Section 2.14 of the
Credit Agreement or the Borrower, the Lenders and the Agent agree, in accordance
with applicable provisions of the Credit Agreement, on a different Commitment
Amount, as the case may be.  Each of the Borrower, the Lenders and the Agent
further acknowledges and agrees that, as of the Effective Date, the Facility
Amount, allocable share of the Commitment Amount and the Percentage Share of
each of the Lenders is as set forth on the schedule attached hereto and labeled
Exhibit V.
 
-5-

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ARTICLE IV
 
MISCELLANEOUS
                         
                          4.1 Successors and Assigns.  This Amendment shall be
binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted pursuant to the Credit Agreement.
 
          4.2 Rights of Third Parties.  Except as provided in Section 4.1, all
provisions herein are imposed solely and exclusively for the benefit of the
parties hereto.
 
          4.3 Counterparts.  This 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 and shall be enforceable as of the Effective Date upon the execution
of one or more counterparts hereof by each of the parties hereto.  In this
regard, each of the parties hereto acknowledges that a counterpart of this
Amendment containing a set of counterpart execution pages reflecting the
execution of each party hereto shall be sufficient to reflect the execution of
this Amendment by each necessary party hereto and shall constitute one
instrument.
 
        4.4 Integration.  This Amendment constitutes the entire agreement among
the parties hereto with respect to the subject hereof.  All prior
understandings, statements and agreements, whether written or oral, relating to
the subject hereof are superseded by this Amendment.
 
      4.5 Severability.  In the event that any one or more of the provisions
contained in this Amendment shall for any reason be held invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision of this Amendment.
 
    4.6 Governing Law.  this Amendment shall be deemed to be a contract made
under and shall be governed by and construed in accordance with the laws of the
State of Texas, without regard to principles of such laws relating to conflicts
of law.
 

 
-6- 

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IN WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to First
Amended and Restated Credit Agreement to be duly executed and delivered, as of
the Effective Date, by their proper and duly authorized officers.
 
BORROWER:

SWIFT ENERGY COMPANY

By:           s/b Alton D. Heckaman, Jr.
Alton D. Heckaman, Jr.
Executive Vice President
and Chief Financial Officer

By:           s/b Adrian D. Shelley
Adrian D. Shelley
Treasurer

SWIFT ENERGY OPERATING, LLC

By:           s/b Alton D. Heckaman, Jr.
Alton D. Heckaman, Jr.
Executive Vice President
and Chief Financial Officer

By:           s/b Adrian D. Shelley
Adrian D. Shelley
Treasurer

(Signatures continue on following pages)

 
- 7 -
 

 
 

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AGENT:

JPMORGAN CHASE BANK, N.A.,
as Administrative Agent

By:           s/b Jo Linda
Papadakis                                                                
Jo Linda Papadakis
Vice President

LENDER:

JPMORGAN CHASE BANK, N.A.

By:           s/b Jo Linda
Papadakis                                                                
Jo Linda Papadakis
Vice President

(Signatures continue on following pages)
 

 

 
- 8 -
 

 
 

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LENDER:

BANK OF SCOTLAND

By:                                                                
Name:                                                                           
Title:                                                                           

(Signatures continue on following pages)
 

 

 
- 9 -
 

 
 

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LENDER:

NATEXIS

By:           s/b Donavan
Broussard                                                                
Name:        Donavan Broussard
Title:        Managing Director

By:           s/b Liana
Tchernysheva                                                                
Name:         Liana Tchernysheva
Title:            Director

(Signatures continue on following pages)
 

 
-10 -
 

 
 

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LENDER:

COMPASS BANK

By:           s/b Dorothy
Marchand                                                                
Name:        Dorothy Marchand
Title:        Senior Vice President

(Signatures continue on following pages)
 

 
- 11 -
 

 
 

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LENDER:

SOCIETE GENERALE

By:           s/b Stephen W.
Warfel                                                                
Name:        Stephen W. Warfel
Title:         Managing Director

(Signatures continue on following pages)
 

 
-12 -
 

 
 

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LENDER:

CALYON NEW YORK BRANCH

By:                                                                
Name:                                                                           
Title:                                                                           

By:                                                                
Name:                                                                           
Title:                                                                           

(Signatures continue on following pages)
 

 
- 13 -
 

 
 

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LENDER:

WELLS FARGO BANK, NATIONAL ASSOCIATION

By:           s/b Scott
Hodges                                                                
Name:         Scott Hodges                                                      
Title:        Vice President

(Signatures continue on following pages)
 

 
-14 -
 

 
 

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LENDER:

BNP PARIBAS

By:           s/b Douglas R.
Liftman                                                                
Name:        Douglas R. Liftman
Title:        Managing Director

By:           s/b Polly
Schott                                                                
Name:       Polly Schott
Title:          Director                                                      

(Signatures continue on following pages)
 

 
- 15 -
 

 
 

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LENDER:

COMERICA BANK

By:           s/b Matt
Turner                                                                
Name:         Matt Turner
Title:          Corporate Banking Officer

(Signatures continue on following page)
 

 
- 16 -
 

 
 

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LENDER:

AMEGY BANK NATIONAL ASSOCIATION

By:          s/b Kenneth R. Batson,
III                                                                
Kenneth R. Batson, III
Vice President

 
-17 -
 

 
 

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EXHIBIT V
 
 
Lender
 
Facility Amount
Allocable Share of
Commitment Amount
 
Percentage Share
       
JPMorgan Chase Bank, N.A.
$66,616,161.83
$39,969,697.10
13.32%
Calyon New York Branch
$66,616,161.83
$39,969,697.10
13.32%
Societe Generale
$66,616,161.83
$39,969,697.10
13.32%
Wells Fargo Bank National Association
 
$63,636,363.62
 
$38,181,818.18
 
12.73%
Bank of Scotland
$60,000,000.00
$36,000,000.00
12.00%
BNP Paribas
$54,545,454.52
$32,727,272.72
10.91%
Amegy Bank National Association
 
$22,727,272.73
 
$13,636,363.63
 
4.55%
Comerica Bank
$31,818,181.82
$19,090,909.09
6.36%
Compass Bank
$38,257,575.46
$22,954,545.27
7.65%
Natixis
$29,166,666.36
$17,499,999.81
5.83%
       
Totals
$500,000,000.00
$300,000,000.00
100.00%

 
-V-
 

 
 

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EXHIBIT X
 

 
Pricing Schedule
 

 
Level I
Status
Level II
Status
Level III
Status
Level IV
Status
Level V
Status
Applicable Margin
         
Eurodollar Rate Loans
200 bps
225 bps.
250 bps
275 bps
350 bps
Alternative Base Rate Loans
100 bps
125 bps
150 bps
175 bps
250 bps
Applicable Fee Rate *
50 bps
50 bps
50 bps
50 bps
50 bps

For the purposes of this Schedule, the following terms have the following
meanings subject to the final paragraph of this Schedule:
 
“Borrowing Base Usage” means, as of any date, the percent of the Borrowing Base
represented by the sum of (i) the then existing Loan Balance plus (ii) the then
existing L/C Exposure.
 
“Level I Status” exists at any date if the Borrowing Base Usage as of such date
is less than 25%.
 
“Level II Status” exists at any date if the Borrowing Base Usage as of such date
is less than 50%, but equal to or in excess of 25%.
 
“Level III Status” exists at any date if the Borrowing Base Usage as of such
date is less than 75%, but equal to or in excess of 50%.
 
“Level IV Status” exists at any date if the Borrowing Base Usage as of such date
is less than 90%, but equal to or in excess of 75%.
 
“Level V Status” exists at any date if the Borrowing Base Usage as of such date
is less than or equal to 100%, but equal to or in excess of 90%.
 
“Status” means Level I Status, Level II Status, Level III Status, Level IV
Status or Level V Status.
 
The Applicable Margin and Applicable Fee Rate shall be determined by the
Administrative Agent from time to time in accordance with the foregoing table.
 

 
 

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* Applicable Fee Rate determined in accordance with this Pricing Schedule
applicable to the Available Commitment, payable quarterly in arrears to the
Administrative Agent for the ratable benefit of the Lenders (including the
Administrative Agent) from closing until the Final Maturity as provided in
Section 2.25 of this Agreement.

 
X-i
 

 
 

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