Exhibit 10.1

 

Execution Version

 

SIXTH AMENDMENT TO AMENDED AND
RESTATED CREDIT AGREEMENT

 

THIS SIXTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”)
is entered into as of August 30, 2012 by and among each of the persons listed on
the signature pages hereto as lenders (the “Lenders”), Crosstex Energy, L.P., a
Delaware limited partnership (the “Borrower”), and Bank of America, N.A., as
administrative agent (in such capacity, the “Administrative Agent”) and L/C
Issuer.

 

ARTICLE I

 

BACKGROUND

 

A.                                    The Lenders, the Administrative Agent, the
L/C Issuer and the Borrower are parties to that certain Amended and Restated
Credit Agreement dated as of February 10, 2010 (as amended, supplemented or
restated, the “Credit Agreement”).  Terms defined in the Credit Agreement and
not otherwise defined herein have the same meanings when used herein.

 

B.                                    The Borrower has requested, and the
Lenders have agreed to amend the Credit Agreement as provided for herein and on
the terms and conditions set forth herein.

 

ARTICLE II

 

AGREEMENT

 

NOW THEREFORE, in consideration of the covenants, conditions and agreements
hereinafter set forth, and for other good and valuable consideration, the
receipt and adequacy of which are all hereby acknowledged, the parties hereto
covenant and agree as follows:

 

Section 1.                                           Amendments to the Credit
Agreement.  The Credit Agreement is hereby amended as follows:

 

(a)                                 Section 1.01 of the Credit Agreement is
amended to add the following definition in alphabetical order:

 

“Material Project EBITDA Adjustments” means, with respect to (a) the Borrower’s
“Riverside Phase II” project and (b) the construction or expansion of any other
capital project of the Borrower or any of its Subsidiaries, the aggregate
capital cost of which (inclusive of capital costs expended prior to the
acquisition thereof) is reasonably expected by Borrower to exceed, or exceeds,
$20,000,000 (each a “Material Project”):

 

(A)                               on any date prior to the date on which a
Material Project has achieved commercial operation (the “Commercial Operation
Date”) (but including the fiscal quarter in which such Commercial Operation Date
occurs), a percentage (based on the then-current completion percentage of

 

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such Material Project) of an amount to be approved by Administrative Agent as
the projected Consolidated EBITDA attributable to such Material Project for the
first 12-month period following the scheduled Commercial Operation Date of such
Material Project, such amount to be determined based on (i) contracts related to
such Material Project, less expenses related thereto, and (ii) other factors
reasonably deemed appropriate by Administrative Agent, which amount may, at
Borrower’s option, be added to actual Consolidated EBITDA for the fiscal quarter
in which construction or expansion of such Material Project commences and for
each fiscal quarter thereafter until the Commercial Operation Date of such
Material Project (including the fiscal quarter in which such Commercial
Operation Date occurs, but net of any actual Consolidated EBITDA attributable to
such Material Project following such Commercial Operation Date); provided that
if the actual Commercial Operation Date does not occur by the scheduled
Commercial Operation Date, then the foregoing amount of Material Project EBITDA
Adjustments shall be reduced, for quarters ending after the scheduled Commercial
Operation Date to (but excluding) the first full quarter after its Commercial
Operation Date, by the following percentage amounts depending on the period of
delay (based on the period of actual delay or then-estimated delay, whichever is
longer): (i) 90 days or less, 0%, (ii) longer than 90 days, but not more than
180 days, 25%, (iii) longer than 180 days but not more than 270 days, 50%,
(iv) longer than 270 days but not more than 365 days, 75%, and (v) longer than
365 days, 100%; and

 

(B)                               beginning with the first full fiscal quarter
following the Commercial Operation Date of a Material Project and for the two
immediately succeeding fiscal quarters, an amount equal to the projected
Consolidated EBITDA attributable to such Material Project (determined in the
same manner as set forth in clause (A) above) for the balance of the four full
fiscal quarter period following such Commercial Operation Date, which may, at
Borrower’s option, be added to actual Consolidated EBITDA for such fiscal
quarters (but net of any actual Consolidated EBITDA of the Borrower attributable
to such Material Project following such Commercial Operation Date);

 

Provided however, that notwithstanding the foregoing, (I) no such additions
shall be allowed with respect to any Material Project unless: (y) not later than
30 days (or such shorter period approved by the Administrative Agent in its sole
discretion) prior to the delivery of any Compliance Certificate required by the
terms and provisions of Section 6.02(a), to the extent Material Project EBITDA
Adjustments will be made to Consolidated EBITDA in determining compliance with
Section 7.11, the Borrower shall have delivered to the Administrative Agent
written pro forma projections of Consolidated EBITDA of the Borrower
attributable to such Material Project, and (z) prior to the date such Compliance
Certificate is required to be delivered, the Administrative Agent shall have

 

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approved (such approval not to be unreasonably withheld, conditioned or delayed)
such projections and shall have received current estimates as to Material
Project completion percentage, the expected Commercial Operation Date, any known
material delays with respect thereto, and such other information and
documentation as the Administrative Agent may reasonably request, all in form
and substance reasonably satisfactory to the Administrative Agent; and (II) the
aggregate amount of all Material Project EBITDA Adjustments during any period
shall be limited to 15% of the total actual Consolidated EBITDA for such period
(which total actual Consolidated EBITDA shall be determined without including
any Material Project EBITDA Adjustments).

 

(b)                                 Section 7.11(a) is amended to insert the
following language immediately before the period at the end of such paragraph:

 

; provided that for purposes of this Section 7.11(a), Consolidated EBITDA may
include, at Borrower’s option, any Material Project EBITDA Adjustments

 

(c)                                  Section 7.11(b) is amended to insert the
following language immediately before the period at the end of such paragraph:

 

; provided that for purposes of this Section 7.11(b), Consolidated EBITDA may
include, at Borrower’s option, any Material Project EBITDA Adjustments

 

(d)                                 Section 7.11(c) is amended to insert the
following language immediately before the period at the end of such paragraph:

 

; provided that for purposes of this Section 7.11(c), Consolidated EBITDA may
include, at Borrower’s option, any Material Project EBITDA Adjustments

 

Section 2.                                           Conditions Precedent.  This
Amendment shall become effective as of the date first set forth above upon the
satisfaction of the following conditions precedent:

 

(a)                                 The Administrative Agent shall have received
each of the following:

 

(1)                                 this Amendment, duly executed by the
Borrower, the Required Lenders, and the Administrative Agent;

 

(2)                                 the acknowledgment attached to this
Amendment, duly executed by each Guarantor;

 

(3)                                 payment or evidence of payment of all
reasonable fees and expenses owed by the Borrower to the Administrative Agent
including, without limitation, the reasonable fees and expenses of Bracewell &
Giuliani LLP, counsel to the Administrative Agent; and

 

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(4)                                 such other documents, instruments and
certificates as reasonably requested by the Administrative Agent and the
Lenders.

 

(b)                                 The representations and warranties set forth
in Section 3 of this Amendment shall be true and correct on and as of the date
hereof.

 

Section 3.                                           Representations and
Warranties.

 

(a)                                 The Borrower represents and warrants to the
Lenders and the Administrative Agent as set forth below:

 

(1)                                 The Borrower (a) is duly organized or
formed, validly existing and, as applicable, in good standing under the Laws of
the jurisdiction of its incorporation or organization, and (b) has all requisite
power and authority and all requisite governmental licenses, authorizations,
consents and approvals to execute, deliver and perform its obligations under
this Amendment.

 

(2)                                 The execution, delivery and performance by
the Borrower of this Amendment have been duly authorized by all necessary
corporate or other organizational action, and do not and will not (a) contravene
the terms of any of the Borrower’s Organization Documents; (b) conflict with or
result in any breach or contravention of, or the creation of any Lien under
(other than Liens created under the Loan Documents), or require any payment to
be made (other than payments required under any Loan Document) under (i) any
Contractual Obligation to which the Borrower is a party or affecting the
Borrower or its properties or any of its Subsidiaries or (ii) any order,
injunction, writ or decree of any Governmental Authority or any arbitral award
to which the Borrower or its property is subject; or (c) violate any Law; except
in each case referred to in clause (b), to the extent that such conflict,
breach, contravention or violation could not reasonably be expected to have a
Material Adverse Effect.

 

(3)                                 No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any
Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement
against, the Borrower of this Amendment, except for such approvals, consents,
exemptions, authorizations, other actions, notices and filings as have been
obtained, taken, given or made and are in full force and effect and with which
the Borrower and its Subsidiaries are in compliance in all material respects or
which the failure to have would not result in a Material Adverse Effect.

 

(4)                                 This Amendment has been duly executed and
delivered by the Borrower and acknowledged by each Guarantor.  This Amendment
constitutes the legal, valid and binding obligation of the Borrower, enforceable
against it in accordance with its terms, except as the enforceability thereof
may be limited by bankruptcy, insolvency, moratorium, reorganization or other
similar laws affecting creditors’ rights generally or by general principles of
equity (regardless

 

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of whether such enforceability is considered in any proceeding in law or in
equity).

 

(5)                                 The execution, delivery and performance of
this Amendment do not adversely affect the enforceability of any Lien of the
Collateral Documents.

 

(6)                                 Except as disclosed in Schedule 5.06 to the
Credit Agreement, there is no pending or, to the knowledge of the Borrower,
threatened action or proceeding affecting the Borrower or any Subsidiary before
any Governmental Authority, referee or arbitrator that could reasonably be
expected to have a Material Adverse Effect.

 

(7)                                 The representations and warranties made by
the Borrower and the Guarantors contained in Article V of the Credit Agreement
and in each of the other Loan Documents are true and correct in all material
respects on and as of the date hereof, as though made on and as of such date,
other than any such representations or warranties that, by the their terms,
refer to a specific date, in which case such representation or warranties are
true and correct in all material respects as of such earlier specific date.

 

(8)                                 No event has occurred and is continuing, or
would result from the effectiveness of this Amendment, which constitutes a
Default.

 

(9)                                 As of June 30, 2012, the Borrower has no
(a) Material Subsidiaries other than those listed on Schedule 3(a) and
(b) non-Material Subsidiaries other than those listed on Schedule 3(b).

 

Section 4.                                           Reference to and Effect on
the Credit Agreement.

 

(a)                                 On and after the effective date of this
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 by this Amendment, and each
reference in the other Loan Documents to “the Credit Agreement,” “thereunder,”
“thereof,” “therein” or words of like import referring to the Credit Agreement,
shall mean and be a reference to the Credit Agreement as amended by this
Amendment.

 

(b)                                 Except as specifically amended above, the
Credit Agreement and the other Loan Documents shall remain in full force and
effect and are hereby ratified and confirmed.  Without limiting the generality
of the foregoing, the Collateral Documents and all of the Collateral described
therein do and shall continue to secure the payment of all obligations stated to
be secured thereby under the Loan Documents.

 

(c)                                  Except as expressly set forth herein, the
execution, delivery and effectiveness of this Amendment shall not operate as a
waiver of any right, power or remedy of the Administrative Agent or any Lender
under any of the Loan Documents or constitute a waiver of any provision of any
of the Loan Documents.

 

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Section 5.                                           Execution in Counterparts. 
This Amendment may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each which when so executed and delivered shall
be deemed to be an original and all of which when taken together shall
constitute but one and the same instrument.  Delivery of an executed counterpart
of a signature page to this Amendment by telecopier or other electronic imaging
means shall be effective as delivery of an originally executed counterpart of
this Amendment.

 

Section 6.                                           Governing Law; Binding
Effect.  This Amendment shall be governed by, and construed and enforced in
accordance with, the laws of the State of New York, and shall be binding upon
the Borrower, the Administrative Agent, the L/C Issuer, each Lender and their
respective successors and assigns.

 

Section 7.                                           Costs and Expenses.  The
Borrower agrees to pay on demand all reasonable out-of-pocket costs and expenses
of the Administrative Agent in connection with the preparation, execution and
delivery of this Amendment and the other instruments and documents to be
delivered hereunder, including the reasonable fees and out-of-pocket expenses of
counsel for the Administrative Agent with respect thereto and with respect to
advising the Administrative Agent as to its rights and responsibilities
hereunder and thereunder.

 

THIS WRITTEN AMENDMENT AND THE 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 BETWEEN THE PARTIES.

 

[Remainder of this page blank; signature pages follow]

 

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Executed as of the date first set forth above.

 

 

CROSSTEX ENERGY, L.P.

 

 

 

 

 

By:

Crosstex Energy GP, LLC,

 

 

its general partner

 

 

 

 

 

 

 

 

 

 

By:

/s/ Michael J. Garberding

 

 

 

Name:

Michael J. Garberding

 

 

 

Title:

Senior Vice President and Chief

 

 

 

 

Financial Officer

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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Each of the undersigned, as guarantors under the Amended and Restated Guaranty
dated as of February 10, 2010 (as supplemented to date, the “Guaranty”), and as
debtors, mortgagors, and/or grantors under the Collateral Documents, hereby
(a) consents to this Amendment, and (b) confirms and agrees that the Guaranty
and each of the Collateral Documents to which it is a party is and shall
continue to be in full force and effect and is ratified and confirmed in all
respects, except that, on and after the effective date of the Amendment each
reference in the Guaranty and the other Collateral Documents to “the Credit
Agreement,” “thereunder,” “thereof,” “therein” or any other expression of like
import referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement as modified by this Amendment.

 

ADDRESS FOR ALL

CROSSTEX ENERGY SERVICES, L.P.

 

UNDERSIGNED:

 

 

 

 

By:

Crosstex Operating GP, LLC,

2501 Cedar Springs

 

its general partner

Suite 100

 

 

Dallas, Texas  75201

 

 

Attention:  General Counsel

By:

/s/ Michael J. Garberding

 

 

Name:

Michael J. Garberding

 

 

Title:

Senior Vice President and

 

 

 

Chief Financial Officer

 

 

 

 

 

 

 

 

 

CROSSTEX OPERATING GP, LLC

 

CROSSTEX ORV HOLDINGS, INC.

 

CROSSTEX ENERGY SERVICES GP, LLC

 

CROSSTEX LIG, LLC

 

CROSSTEX TUSCALOOSA, LLC

 

CROSSTEX LIG LIQUIDS, LLC

 

CROSSTEX PROCESSING SERVICES, LLC

 

CROSSTEX PELICAN, LLC

 

CROSSTEX PERMIAN, LLC

 

CROSSTEX PERMIAN II, LLC

 

 

 

 

 

 

 

By:

/s/ Michael J. Garberding

 

 

Name:

Michael J. Garberding

 

 

Title:

Senior Vice President and

 

 

 

Chief Financial Officer

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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CROSSTEX GULF COAST MARKETING LTD.

 

CROSSTEX CCNG PROCESSING LTD.

 

CROSSTEX NORTH TEXAS PIPELINE, L.P.

 

CROSSTEX NORTH TEXAS GATHERING, L.P.

 

CROSSTEX NGL MARKETING, L.P.

 

CROSSTEX NGL PIPELINE, L.P.

 

 

 

 

 

By:

Crosstex Energy Services GP, LLC,

 

 

general partner of each above limited

 

 

partnership

 

 

 

 

 

 

 

By:

/s/ Michael J. Garberding

 

 

Name:

Michael J. Garberding

 

 

Title:

Senior Vice President and

 

 

 

Chief Financial Officer

 

 

 

 

 

 

 

 

 

SABINE PASS PLANT FACILITY JOINT
VENTURE

 

 

 

 

 

By:

Crosstex Processing Services, LLC,

 

 

as general partner, and

 

By:

Crosstex Pelican, LLC,

 

 

as general partner

 

 

 

 

 

 

 

By:

/s/ Michael J. Garberding

 

 

Name:

Michael J. Garberding

 

 

Title:

Senior Vice President and

 

 

 

Chief Financial Officer

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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BANK OF AMERICA, N.A.,

 

as Administrative Agent,

 

a Lender and L/C Issuer

 

 

 

 

 

 

 

By:

/s/ Jeffrey H. Rathkamp

 

 

Name:

Jeffrey H. Rathkamp

 

 

Title:

Managing Director

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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COMERICA BANK

 

 

 

 

 

 

By:

/s/ David P. Cagle

 

 

Name:

David P. Cagle

 

 

Title:

Senior Vice President

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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COMPASS BANK

 

 

 

 

 

 

By:

/s/ Umar Hassan

 

 

Name:

Umar Hassan

 

 

Title:

Vice President

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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ROYAL BANK OF CANADA

 

 

 

 

 

 

By:

/s/ Jason S. York

 

 

Name:

Jason S. York

 

 

Title:

Authorized Signatory

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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SUMITOMO MITSUI BANKING CORP., NEW YORK

 

 

 

 

 

 

By:

/s/ Shuji Yabe

 

 

Name:

Shuji Yabe

 

 

Title:

Managing Director

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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U.S. BANK NATIONAL ASSOCIATION

 

 

 

 

 

 

By:

 

 

 

Name:

 

 

Title:

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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WELLS FARGO BANK, N.A.

 

 

 

 

 

 

By:

/s/ Andrew Ostrov

 

 

Name:

Andrew Ostrov

 

 

Title:

Director

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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BANK OF MONTREAL

 

 

 

 

 

 

By:

/s/ Gumaro Tijerina

 

 

Name:

Gumaro Tijerina

 

 

Title:

Director

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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CAPITAL ONE, NATIONAL ASSOCIATION

 

 

 

 

 

 

By:

/s/ Robert James

 

 

Name:

Robert James

 

 

Title:

Vice President

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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GOLDMAN SACHS BANK USA

 

 

 

 

 

 

By:

/s/ Michelle Latzoni

 

 

Name:

Michelle Latzoni

 

 

Title:

Authorized Signatory

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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MORGAN STANLEY BANK, N.A.

 

 

 

 

 

 

By:

/s/ William Jones

 

 

Name:

William Jones

 

 

Title:

Authorized Signatory

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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CITIBANK, N.A.

 

 

 

 

 

By:

/s/ Mason McGurrin

 

 

Name:

Mason McGurrin

 

 

Title:

Vice President

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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ABN AMRO CAPITAL USA LLC

 

 

 

 

 

 

 

By:

/s/ Darrell Holley

 

 

Name:

Darrell Holley

 

 

Title:

Managing Director

 

 

 

 

 

 

 

By:

/s/ Casey Lowary

 

 

Name:

Casey Lowary

 

 

Title:

Director

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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REGIONS BANK

 

 

 

 

 

By:

/s/ David Valentine

 

 

Name:

David Valentine

 

 

Title:

Vice President

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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AMEGY BANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Jill McSorley

 

 

Name:

Jill McSorley

 

 

Title:

Senior Vice President

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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ONEWEST BANK, FSB

 

 

 

 

 

By:

/s/ Sean M. Murphy

 

 

Name:

Sean M. Murphy

 

 

Title:

Senior Vice President

 

Signature Page to Sixth Amendment to Amended and Restated Credit Agreement

 

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SCHEDULE 3(a)

 

MATERIAL SUBSIDIARIES

 

Crosstex Energy Services, L.P. (DE)

Crosstex Operating GP, LLC (DE)*

Crosstex Energy Services GP, LLC (DE)*

Crosstex LIG, LLC (LA)

Crosstex Tuscaloosa, LLC (LA)*

Crosstex LIG Liquids, LLC (LA)

Crosstex Gulf Coast Marketing Ltd. (TX)*

Crosstex CCNG Processing Ltd. (TX)

Crosstex North Texas Pipeline, L.P. (TX)

Crosstex North Texas Gathering, L.P. (TX)

Crosstex NGL Pipeline, L.P. (TX)*

Crosstex NGL Marketing, L.P. (TX)*

Crosstex Processing Services, LLC (DE)

Crosstex Pelican, LLC (DE)

Sabine Pass Plant Facility Joint Venture (TX)*

Crosstex Permian, LLC (TX)*

Crosstex Permian II, LLC (TX)*

Crosstex Louisiana Gathering, LLC (Louisiana)*

Crosstex ORV Holdings, Inc. (DE)*

 

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*Indicates entity has previously been treated as a Material Subsidiary (e.g., it
pledged assets and is a Guarantor) but does not technically meet the definition
of a “Material Subsidiary” as of June 30, 2012.

 

Schedule 3(a) to

Sixth Amendment to Amended and Restated Credit Agreement

 

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SCHEDULE 3(b)

 

NON-MATERIAL SUBSIDIARIES

 

Crosstex Louisiana Energy, L.P. (Delaware)

Crosstex DC Gathering Company, J.V. (Texas)

Crosstex Energy Finance Corporation (Delaware)

 

Schedule 3(b) to

Sixth Amendment to Amended and Restated Credit Agreement

 

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