Exhibit 10.1

 

 

SEVENTH AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

Dated April 15, 2013

Among

RESOLUTE ENERGY CORPORATION,

as Borrower,

CERTAIN OF ITS SUBSIDIARIES,

as Guarantors,

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent,

BANK OF MONTREAL,

as Syndication Agent,

BARCLAYS BANK PLC, CITIBANK, N.A. and

U.S. BANK NATIONAL ASSOCIATION,

as Co-Documentation Agents,

and

The Lenders Party Hereto

WELLS FARGO SECURITIES, LLC

and BMO CAPITAL MARKETS

as Joint Bookrunners and Joint Lead Arrangers

 

 

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THIS SEVENTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Seventh Amendment”), dated as of April 15, 2013, is by and among Resolute
Energy Corporation, a Delaware corporation (the “Borrower”), certain of its
subsidiaries (collectively, the “Guarantors”), Wells Fargo Bank, National
Association, as Administrative Agent (the “Administrative Agent”) and the
lenders party hereto (the “Lenders”).

Recitals

WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the other
lenders party thereto entered into that certain Second Amended and Restated
Credit Agreement, dated as of March 30, 2010 (as amended by the First Amendment
to Second Amended and Restated Credit Agreement dated April 13, 2011, the Second
Amendment to Second Amended and Restated Credit Agreement dated April 20, 2011,
the Third Amendment to Second Amended and Restated Credit Agreement dated as of
April 13, 2012, the Fourth Amendment to Second Amended and Restated Credit
Agreement dated as of December 7, 2012, the Fifth Amendment to Second Amended
and Restated Credit Agreement dated as of December 27, 2012 and the Sixth
Amendment to Second Amended and Restated Credit Agreement dated as of March 22,
2013, and as the same may be further amended, modified, supplemented or restated
from time to time, the “Credit Agreement”);

WHEREAS, the Borrower has requested that the Administrative Agent and the
Lenders amend the Credit Agreement as set forth herein; and

WHEREAS, subject to the satisfaction of the conditions set forth herein, the
Administrative Agent and the Lenders are willing to amend the Credit Agreement
as provided herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants
contained herein and in the Credit Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

Definitions

Each capitalized term used in this Seventh Amendment and not defined herein
shall have the meaning assigned to such term in the Credit Agreement. Unless
otherwise indicated, all section references in this Seventh Amendment refer to
sections of the Credit Agreement.

ARTICLE II

Amendments

As of the Seventh Amendment Effective Date, the Credit Agreement is amended as
follows:

Section 2.01 Amendments to Section 1.02 of the Credit Agreement.

 

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(a) Section 1.02 of the Credit Agreement is hereby amended by adding the
following new definitions in their proper alphabetical order:

“‘Seventh Amendment’ means that certain Seventh Amendment to Second Amended and
Restated Credit Agreement, dated as of April 15, 2013, among the Borrower, the
Guarantors, the Administrative Agent and the Lenders party thereto.”

“‘Seventh Amendment Effective Date’ means the first Business Day on which all of
the conditions precedent set forth in Article III of the Seventh Amendment shall
have been satisfied (or waived in accordance with Section 12.02).”

(b) The definition of “Agreement” in Section 1.02 of the Credit Agreement is
hereby amended by deleting it in its entirety and inserting the following in
lieu thereof:

“‘Agreement’ means this Second Amended and Restated Credit Agreement, as amended
by the First Amendment, the Second Amendment, the Third Amendment, the Fourth
Amendment, the Fifth Amendment, the Sixth Amendment and the Seventh Amendment,
as the same may from time to time be amended, modified, supplemented or
restated.”

Section 2.02 Amendment to Section 9.01(b). Section 9.01(b) of the Credit
Agreement is hereby amended and restated in its entirety as follows:

“(b) Maximum Leverage Ratio. The Loan Parties will not, as of the last day of
any fiscal quarter for which financial statements have been provided pursuant to
Section 8.01(a) or (b), permit the ratio of Funded Debt as of such date to
EBITDA of the Borrower and its Consolidated Restricted Subsidiaries for the four
(4) quarter period ending on such date to be greater than the applicable ratio
set forth below:

 

Quarter Ending

  

Maximum Leverage Ratio

December 31, 2012    4:25:1.00 March 31, 2013    4.85:1.00 June 30, 2013 –
December 31, 2013    4.50:1.00 March 31, 2014    4.25:1.00 June 30, 2014 and
thereafter    4.00:1.00

 

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ARTICLE III

Conditions Precedent

This Seventh Amendment shall become effective on the first Business Day on which
all of the following conditions precedent shall have been satisfied (or waived
in accordance with Section 12.02 of the Credit Agreement):

(a) The Administrative Agent shall have received from the Borrower, each of the
Guarantors and the Majority Lenders, counterparts (in such number as may be
requested by the Administrative Agent) of this Seventh Amendment signed on
behalf of such Persons.

(b) The Administrative Agent shall have received from the Borrower (i) a work
fee for each Lender party to the Seventh Amendment on such date in an amount
equal to $10,000 for each such Lender, and (ii) all other fees and amounts due
and payable on or prior to the Seventh Amendment Effective Date, including, to
the extent invoiced, reimbursement or payment of all out-of-pocket expenses
required to be reimbursed or paid by the Borrower hereunder.

ARTICLE IV

Representations and Warranties

Each Loan Party hereby represents and warrants to each Lender that:

(a) Each of the representations and warranties made by it under the Credit
Agreement and each other Loan Document is true and correct on and as of the
actual date of its execution of this Seventh Amendment, as if made on and as of
such date, except for any representations and warranties made as of a specified
date, which are true and correct as of such specified date.

(b) Immediately after giving effect to, this Seventh Amendment, no Default has
occurred and is continuing.

(c) The execution, delivery and performance by it of this Seventh Amendment have
been duly authorized by it.

(d) This Seventh Amendment constitutes its legal, valid and binding obligation,
enforceable against it in accordance with its terms.

(e) The execution, delivery and performance by it of this Seventh Amendment
(i) does not require any consent or approval of, registration or filing with, or
any other action by, any Governmental Authority or any other third Person
(including shareholders or any class of directors, whether interested or
disinterested, of it or any other Person), nor is any such consent, approval,
registration, filing or other action necessary for the validity or
enforceability of this Seventh Amendment or any Loan Document or the
consummation of the transactions contemplated thereby, except such as have been
obtained or made and are in full force and effect other than those third party
approvals or consents which, if not made or obtained, would not cause a Default
hereunder, could not reasonably be expected to have a Material Adverse Effect or
do not have an adverse effect on the enforceability of the Loan Documents,
(ii) will not violate any applicable law or regulation or the charter, by-laws
or other organizational documents of it or any Restricted Subsidiary or any
order of any Governmental Authority, (iii) will not violate or result in a
default under any indenture, agreement or other instrument binding upon it or
any Restricted Subsidiary or its Properties, or give rise to a right thereunder
to require any payment to be made by the it or such Restricted Subsidiary and
(iv) will not result in the creation or imposition of any Lien on any Property
of any Loan Party or any Restricted Subsidiary (other than the Liens created by
this Seventh Amendment or the Loan Documents).

 

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ARTICLE V

Miscellaneous

Section 5.01 Credit Agreement in Full Force and Effect as Amended. Except as
specifically amended hereby, the Credit Agreement and other Loan Documents shall
remain in full force and effect. Each of the Loan Parties hereby agrees that its
liabilities under the Credit Agreement, the Guaranty and Collateral Agreement
and the other Loan Documents, in each case as amended, to which it is a party,
shall remain enforceable against such Loan Party in accordance with the terms
thereof and shall not be reduced, altered, limited, lessened or in any way
affected by the execution and delivery of this Seventh Amendment, and each Loan
Party hereby confirms and ratifies its liabilities under the Loan Documents (as
so amended) to which it is a party in all respects. Except as expressly set
forth herein, this Seventh Amendment shall not be deemed to be a waiver,
amendment or modification of any provisions of the Credit Agreement or any other
Loan Document or any right, power or remedy of the Administrative Agent or
Lenders, or constitute a waiver of any provision of the Credit Agreement or any
other Loan Document, or any other document, instrument and/or agreement executed
or delivered in connection therewith or of any Default or Event of Default under
any of the foregoing, in each case whether arising before or after the date
hereof or as a result of performance hereunder or thereunder. This Seventh
Amendment also shall not preclude the future exercise of any right, remedy,
power, or privilege available to the Administrative Agent and/or Lenders whether
under the Credit Agreement, the other Loan Documents, at law or otherwise. The
parties hereto agree to be bound by the terms and conditions of the Credit
Agreement and Loan Documents as amended by this Seventh Amendment, as though
such terms and conditions were set forth herein. Each reference in the Credit
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of
similar import shall mean and be a reference to the Credit Agreement as amended
by this Seventh Amendment, and each reference herein or in any other Loan
Documents to the “Credit Agreement” shall mean and be a reference to the Credit
Agreement as amended and modified by this Seventh Amendment.

Section 5.02 GOVERNING LAW. THIS SEVENTH AMENDMENT, AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER, SHALL BE CONSTRUED IN ACCORDANCE WITH AND
BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

Section 5.03 Descriptive Headings, Etc. The descriptive headings of the sections
of this Seventh Amendment are inserted for convenience only and shall not be
deemed to affect the meaning or construction of any of the provisions hereof.
The statements made and the terms defined in the recitals to this Seventh
Amendment are hereby incorporated into this Seventh Amendment in their entirety.

 

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Section 5.04 Payment of Fees and Expenses. Without duplicating any amounts paid
pursuant to clause (b)(i) of Article III above, the Borrower agrees that each
Lender that executes and delivers this Seventh Amendment to the Administrative
Agent prior to 5:00 pm MT on April 19, 2013 shall receive from the Borrower a
work fee of $10,000, and all such amounts shall be paid by the Borrower to the
Administrative Agent for the account of such Lenders on or prior to April 23,
2013. Notwithstanding the foregoing, however, this Seventh Amendment shall be
effective for all purposes on the first Business Day on which all of the
conditions precedent set forth in Article III above are satisfied (or waived in
accordance with Section 12.02 of the Credit Agreement). The Borrower also agrees
to pay or reimburse the Administrative Agent for all of its reasonable
out-of-pocket costs and expenses incurred in connection with this Seventh
Amendment, the Loan Documents and 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. The agreement set forth in this Section 5.04 shall survive
the termination of this Seventh Amendment and the Credit Agreement.

Section 5.05 Entire Agreement. This Seventh Amendment and the documents referred
to herein represent the entire understanding of the parties hereto regarding the
subject matter hereof and supersede all prior and contemporaneous oral and
written agreements of the parties hereto with respect to the subject matter
hereof. This Seventh Amendment is a Loan Document executed under the Credit
Agreement.

Section 5.06 Counterparts. This Seventh Amendment may be executed in any number
of counterparts and by different parties on separate counterparts, each of which
shall constitute an original but all of which when taken together shall
constitute but one agreement. Delivery of an executed counterpart of the
signature page of this Seventh Amendment by facsimile or other electronic
transmission shall be effective as delivery of a manually executed counterpart
thereof.

Section 5.07 Successors. The execution and delivery of this Seventh Amendment by
any Lender shall be binding upon each of its successors and assigns.

[Signatures Begin on Next Page]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Seventh Amendment to be
duly executed by their respective authorized officers as of the date first
written above.

 

BORROWER:             RESOLUTE ENERGY CORPORATION       By:     

/s/ Theodore Gazulis

      Theodore Gazulis       Executive Vice President and       Chief Financial
Officer GUARANTORS:       HICKS ACQUISITION COMPANY I, INC.       RESOLUTE
ANETH, LLC      
  RESOLUTE WYOMING, INC. (f/k/a Primary Natural
Resources, Inc.)      
  RESOLUTE NATURAL RESOURCES COMPANY, LLC (f/k/a
Resolute Natural Resources Company)       BWNR, LLC       WYNR, LLC      
RESOLUTE NORTHERN ROCKIES, LLC       RESOLUTE NATURAL RESOURCES       SOUTHWEST,
LLC       By:     

/s/ Theodore Gazulis

      Theodore Gazulis       Executive Vice President and       Chief Financial
Officer

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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ADMINISTRATIVE AGENT       AND LENDER:     WELLS FARGO BANK, NATIONAL    

ASSOCIATION, successor-by-merger to Wachovia Bank, National Association,

as Administrative Agent and a Lender

    By:  

/s/ Suzanne F. Ridenhour

      Suzanne F. Ridenhour       Director LENDER:     WELLS FARGO BANK, NATIONAL
ASSOCIATION     By:  

/s/ Suzanne F. Ridenhour

      Suzanne F. Ridenhour       Director

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   BANK OF MONTREAL   By:  

/s/ Gumaro Tijerina

  Name:   Gumaro Tijerina   Title:   Director

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   BARCLAYS BANK PLC   By:  

/s/ Sreedhar R. Kona

  Name:   Sreedhar R. Kona   Title:   Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   CITIBANK, N.A.   By:  

/s/ John Miller

  Name:   John Miller   Title:   Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   U.S. BANK NATIONAL ASSOCIATION   By:  

/s/ Jonathan H. Lee

  Name:   Jonathan H. Lee   Title:   Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   BRANCH BANKING AND TRUST COMPANY   By:  

/s/ James Giordano

  Name:   James Giordano   Title:   Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   CAPITAL ONE, NATIONAL ASSOCIATION   By:  

/s/ Wesley Fontana

  Name:   Wesley Fontana   Title:   Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   COMERICA BANK   By:  

/s/ Katya Evseev

  Name:   Katya Evseev   Title:   Assistant Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   SUNTRUST BANK   By:  

/s/ Shannon Juhan

  Name:   Shannon Juhan   Title:   Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   ING CAPITAL LLC   By:  

/s/ Juli Bieser

  Name:   Juli Bieser   Title:   Director

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   KEY BANK NATIONAL ASSOCIATION   By:  

/s/ Chulley Bogle

  Name:   Chulley Bogle   Title:   Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   ASSOCIATED BANK, N.A.   By:  

/s/ Kyle Lewis

  Name:   Kyle Lewis   Title:   Assistant Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   CADENCE BANK, N.A.   By:  

/s/ Eric Broussard

  Name:   Eric Broussard   Title:   Senior Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement

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LENDER:   GUARANTY BANK AND TRUST COMPANY   By:  

/s/ Gail J. Nofsinger

  Name:   Gail J. Nofsinger   Title:   Senior Vice President

 

Signature Page to

Seventh Amendment to Second Amended and Restated Credit Agreement