Exhibit 10.1

 

 

 

 

FIRST AMENDMENT

TO

FIFTH AMENDED AND RESTATED

SENIOR REVOLVING CREDIT AGREEMENT

among

PETROHAWK ENERGY CORPORATION,

as the Borrower,

BNP PARIBAS,

as Administrative Agent,

and

THE LENDERS PARTY HERETO

 

Dated as of November 8, 2010

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FIRST AMENDMENT TO

FIFTH AMENDED AND RESTATED SENIOR REVOLVING CREDIT AGREEMENT

This FIRST AMENDMENT TO FIFTH AMENDED AND RESTATED SENIOR REVOLVING CREDIT
AGREEMENT (this “First Amendment”) executed as of November 8, 2010 is among
PETROHAWK ENERGY CORPORATION, a corporation duly formed and existing under the
laws of the State of Delaware (the “Borrower”); each of the Guarantors signatory
hereto (the “Guarantors”); each of the Lenders from time to time party hereto;
and BNP PARIBAS (in its individual capacity, “BNP Paribas”), as administrative
agent for the Lenders (in such capacity, together with its successors in such
capacity, the “Administrative Agent”).

Recitals

A. The Borrower, the Administrative Agent, the other Agents and Lenders named
and defined therein as lenders and agents, are parties to that certain Fifth
Amended and Restated Senior Revolving Credit Agreement dated as of August 2,
2010, pursuant to which such lenders and agents provided certain loans and
extensions of credit to the Borrower (as amended, the “Credit Agreement”).

B. The Borrower has requested, and the Borrower, the Administrative Agent and
the Lenders have agreed to amend certain provisions of the Credit Agreement.

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

Section 2. Amendments to Credit Agreement.

2.1 Certain Defined Terms. The following defined terms in Section 1.02 are
hereby amended and restated, or added, in their entirety as follows:

“‘Agreement’ means this Fifth Amended and Restated Senior Revolving Credit
Agreement, as amended by the First Amendment to Fifth Amended and Restated
Senior Revolving Credit Agreement, dated as of November 8, 2010, as the same may
from time to time be further amended, modified, supplemented or restated.

2.2 Amendment to Article VII. Article VII is hereby amended by adding the
following Sections 7.24 and 7.25:

“Section 7.24 Money Laundering. The operations of the Borrower and its
Subsidiaries are and have been conducted at all times in material compliance
with applicable financial recordkeeping and reporting requirements of the Money
Laundering Laws, and no action, suit or proceeding by or before any court or

 

1

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governmental agency, authority or body or any arbitrator involving the Borrower
or any of its Subsidiaries with respect to the Money Laundering Laws is pending
or, to the best knowledge of the Borrower, threatened.

Section 7.25 OFAC. Neither the Borrower nor any of its Subsidiaries, nor any
director, officer, agent, employee or Affiliate of the Borrower or any of its
Subsidiaries is currently subject to any material U.S. sanctions administered by
OFAC, and the Borrower will not directly or indirectly use the proceeds from the
Loans or lend, contribute or otherwise make available such proceeds to any
Subsidiary, joint venture partner or other Person, for the purpose of financing
the activities of any Person currently subject to any U.S. sanctions
administered by OFAC.”

2.3 Amendment to Section 12.04(d). Section 12.04(d) is hereby amended and
restated in its entirety as follows:

“(d) Any Lender may at any time pledge or assign a security interest in all or
any portion of its rights under this Agreement to secure obligations of such
Lender, including, without limitation, any pledge or assignment to secure
obligations to a Federal Reserve Bank or any other central bank having
jurisdiction over such Lender, and this Section 12.04 shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge
or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.”

2.4 Amendment to Annex I. Annex I is hereby amended by deleting such Annex in
its entirety and replacing it with Annex I attached hereto.

Section 3. Adjustment to Oil and Gas Borrowing Base. For the period from and
including the First Amendment Effective Date to but excluding the next
Redetermination Date, the Oil and Gas Borrowing Base shall be $1,750,000,000.
Notwithstanding the foregoing, the Oil and Gas Borrowing Base may be subject to
further adjustments from time to time pursuant to Section 2.07(e),
Section 8.13(c) or Section 9.13.

Section 4. Assignments, New Lenders and Reallocation of Commitments and Loans.
Each Lender party to the Credit Agreement immediately prior to the First
Amendment Effective Date (the “Adjusting Lenders”) has, in consultation with the
Borrower, agreed to reallocate its respective Maximum Credit Amount and
Commitment and to, among other things, allow UBS AG, Stamford Branch, ING
Capital, LLC, KeyBank National Association, SunTrust Bank, Sumitomo Mitsui
Banking Corporation, The Bank of Nova Scotia and Goldman Sachs Bank USA to each
become a party to the Credit Agreement as a Lender, (the “New Lenders”) by
acquiring an interest in the total Maximum Credit Amounts and Commitments. The
Administrative Agent and the Borrower hereby consent to such reallocation and
the New Lenders’ acquisition of an interest in the Maximum Credit Amounts and
Commitments and the Adjusting Lenders’ assignments of their Commitments. On the
First Amendment Effective Date and after giving effect to such reallocations,
the Maximum Credit Amounts and Commitment of

 

2

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each Lender (including both the Adjusting Lenders and the New Lenders) shall be
as set forth on Annex I of this First Amendment which Annex I supersedes and
replaces the Annex I to the Credit Agreement. With respect to such reallocation,
each New Lender shall be deemed to have acquired the Maximum Credit Amount and
Commitment allocated to it from each of the Adjusting Lenders pursuant to the
terms of the Assignment and Assumption Agreement attached as Exhibit F to the
Credit Agreement (the “Assignment Agreement”). On the First Amendment Effective
Date, each New Lender and each Adjusting Lender shall be deemed to have entered
into separate Assignment Agreements pursuant to each of which (i) each New
Lender shall be the “Assignee”, (ii) each Adjusting Lender shall be the
“Assignor”, (iii) the term “Effective Date” shall be the “First Amendment
Effective Date” as defined herein and (iv) item 6 therein shall be deemed to be
deleted. Notwithstanding Section 12.04(b)(ii)(C), the Lenders deemed to be
parties to such Assignment Agreements shall not be required to pay a processing
and recordation fee of $3,500 to the Administrative Agent. On the First
Amendment Effective Date, the Administrative Agent shall take the actions
specified in Section 12.04(b)(v), including recording the assignments described
herein in the Register, and such assignments shall be effective for purposes of
the Credit Agreement.

Section 5. Conditions Precedent. The effectiveness of this First Amendment is
subject to the receipt by the Administrative Agent of the following documents
and satisfaction of the other conditions provided in this Section 5, each of
which shall be reasonably satisfactory to the Administrative Agent in form and
substance (the date on which such documents are received and conditions
satisfied or waived pursuant to the Credit Agreement, the “First Amendment
Effective Date”):

5.1 The Administrative Agent and the Lenders shall have received all fees and
other amounts due and payable on or prior to the First 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.

5.2 The Administrative Agent shall have received from the Borrower, each Lender,
and each of the Guarantors, counterparts (in such number as may be requested by
the Administrative Agent) of this First Amendment signed on behalf of such
Person.

5.3 No Default or Event of Default shall have occurred and be continuing as of
the First Amendment Effective Date.

5.4 The Administrative Agent shall have received such other documents as the
Administrative Agent or its special counsel may reasonably require.

The Administrative Agent is hereby authorized and directed to declare this First
Amendment to be effective when it has received documents confirming or
certifying, to the satisfaction of the Administrative Agent, compliance with the
conditions set forth in this Section 5 or the waiver of such conditions as
permitted hereby. Such declaration shall be final, conclusive and binding upon
all parties to the Credit Agreement for all purposes.

Section 6. Representations and Warranties; Etc. The Borrower and each Guarantor
hereby affirms: (a) that as of the date of execution and delivery of this First
Amendment, and

 

3

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after giving effect to the transactions contemplated hereby, all of the
representations and warranties contained in each Loan Document to which it is a
party are true and correct in all material respects (unless made as of a
specific earlier date, in which case, was true as of such date); and (b) that
after giving effect to this First Amendment, no Defaults exist under the Loan
Documents or will exist under the Loan Documents.

Section 7. Miscellaneous.

7.1 Confirmation. The provisions of the Credit Agreement (as amended by this
First Amendment) shall remain in full force and effect in accordance with its
terms following the effectiveness of this First Amendment.

7.2 Ratification and Affirmation of Borrower and Guarantors. The Borrower and
Guarantors hereby expressly (a) acknowledge the terms of this First Amendment,
(b) ratify and affirm their obligations under the Loan Documents to which they
are a party, (c) acknowledge, renew and extend their continued liabilities under
the Guarantee Agreement and the other Security Instruments to which they are a
party and agree that their guarantee under the Guarantee Agreement and the other
Security Instruments to which they are a party remains in full force and effect
with respect to the Indebtedness as amended hereby.

7.3 Counterparts. This First 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.

7.4 No Oral Agreement. THIS WRITTEN FIRST 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 SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

7.5 Governing Law. THIS FIRST 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 TEXAS.

[SIGNATURES BEGIN ON NEXT PAGE]

 

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

 

BORROWER:

   

PETROHAWK ENERGY CORPORATION

   

By:

 

/s/ Mark J. Mize

   

Name: Mark J. Mize

   

Title: Executive Vice President – Chief Financial Officer and Treasurer

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 1

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GUARANTORS:

   

PETROHAWK OPERATING COMPANY

 

P-H ENERGY, LLC

 

HAWK FIELD SERVICES, LLC

 

PETROHAWK PROPERTIES, LP

     

By:

 

P-H Energy, L.L.C.

Its General Partner

   

WINWELL RESOURCES, L.L.C.

 

WSF, INC.

 

KSC RESOURCES, LLC

 

KCS ENERGY SERVICES, INC.

 

MEDALLION CALIFORNIA PROPERTIES COMPANY

 

PROLIQ, INC.

 

ONE TEC, LLC

 

ONE TEC OPERATING, LLC

 

BISON RANCH, LLC

 

HK TRANSPORTATION, LLC

 

PETROHAWK HOLDINGS, LLC

   

By:

 

/s/ Mark J. Mize

   

Name: Mark J. Mize

Title: Executive Vice President – Chief Financial

Officer and Treasurer

           

BIG HAWK SERVICES, LLC

   

By:

 

/s/ Mark J. Mize

   

Name: Mark J. Mize

Title: Treasurer

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 2

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HK ENERGY MARKETING, LLC

By:

 

/s/ Mark J. Mize

Name: Mark J. Mize

Title: Chief Financial Officer and Treasurer

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 3

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ADMINISTRATIVE AGENT:

   

BNP PARIBAS,

as Administrative Agent and Lender

   

By:

 

/s/ Juan Carlos Sandoval

   

Name: Juan Carlos Sandoval

   

Title: Vice President

       

By:

 

/s/ Edward Pak

   

Name: Edward Pak

   

Title: Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 4

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CO-SYNDICATION AGENT:

   

BANK OF MONTREAL, as Co-Syndication

Agent and Lender

   

By:

 

/s/ James V. Ducote

   

Name: James V. Ducote

   

Title: Director

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 5

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CO-SYNDICATION AGENT:

   

BANK OF AMERICA, N.A., as Co-Syndication

Agent and Lender

   

By:

 

/s/ Jeffrey H. Rathkamp

   

Name: Jeffrey H. Rathkamp

   

Title: Managing Director

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 6

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CO-DOCUMENTATION AGENT:

   

JPMORGAN CHASE BANK, N.A., as

Co-Documentation Agent and Lender

   

By:

 

/s/ Michael A. Kamauf

   

Name: Michael A. Kamauf

Title: Authorized Officer

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 7

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CO-DOCUMENTATION AGENT:

   

WELLS FARGO BANK, N.A., as

Co-Documentation Agent and Lender

   

By:

 

/s/ Scott Hodges

   

Name: Scott Hodges

Title: Director, Senior Relationship Manager

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 8

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LENDERS:

   

BARCLAYS BANK PLC

   

By:

 

/s/ Allen Huang

   

Name: Allen Huang

Title: Assistant Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 9

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ROYAL BANK OF CANADA

By:

 

/s/ Jay T. Sartain

Name: Jay T. Sartain

Title: Authorized Signatory

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 10

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MORGAN STANLEY BANK, N.A.

By:

 

/s/ Scott Taylor

Name: Scott Taylor

Title: Authorized Signatory

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 11

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MORGAN STANLEY SENIOR FUNDING, INC.

By:

 

/s/ Scott Taylor

Name: Scott Taylor

Title: Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 12

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DEUTSCHE BANK TRUST COMPANY AMERICAS

By:

 

/s/ Evelyn Thierry

Name: Evelyn Thierry

Title: Director

By:

 

/s/ Omayra Laucella

Name: Omayra Laucella

Title: Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 13

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CREDIT AGRICOLE CORPORATE AND

INVESTMENT BANK

By:

 

/s/ Sharada Manne

Name: Sharada Manne

Title: Director

By:

 

/s/ Tom Byargeon

Name: Tom Byargeon

Title: Managing Director

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 14

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CREDIT SUISSE AG, CAYMAN ISLANDS

BRANCH

By:

 

/s/ Mikhail Faybusovich

Name: Mikhail Faybusovich

Title: Vice President

By:

 

/s/ Vipul Dhadda

Name: Vipul Dhadda

Title: Associate

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 15

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UBS AG, STAMFORD BRANCH

By:

 

/s/ Mary E. Evans

Name: Mary E. Evans

Title: Associate Director

By:

 

/s/ Irja R. Otsa

Name: Irja R. Otsa

Title: Associate Director

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 16

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CAPITAL ONE, N.A.

By:

 

/s/ Wesley Fontana

Name: Wesley Fontana

Title: Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 17

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ING CAPITAL, LLC

By:

 

/s/ Charles E. Hall

Name: Charles E. Hall

Title: Managing Director

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 18

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MIZUHO CORPORATE BANK, LTD.

By:

 

/s/ Leon Mo

Name: Leon Mo

Title: Authorized Signatory

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 19

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AMEGY BANK NATIONAL ASSOCIATION

By:

 

/s/ Charles W. Patterson

Name: Charles W. Patterson

Title: Senior Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 20

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CITIBANK, N.A.

By:

 

/s/ John F. Miller

Name: John F. Miller

Title: Attorney-In-Fact

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 21

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KEYBANK NATIONAL ASSOCIATION

By:

 

/s/ Todd Coker

Name: Todd Coker

Title: Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 22

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SUNTRUST BANK

By:

 

/s/ J. Haynes Gentry III

Name: J. Haynes Gentry III

Title: Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 23

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SUMITOMO MITSUI BANKING

CORPORATION

By:

 

/s/ Masakazu Hasegawa

Name: Masakazu Hasegawa

Title: General Manager

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 24

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THE BANK OF NOVA SCOTIA

By:

 

/s/ John Frazell

Name: John Frazell

Title: Director

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 25

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GOLDMAN SACHS BANK USA

By:

 

/s/ Mark Walton

Name: Mark Walton

Title: Authorized Signatory

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 26

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NATIXIS

By:

 

/s/ Donovan C. Broussard

Name: Donovan C. Broussard

Title: Managing Director

By:

 

/s/ Liana Tchernysheva

Name: Liana Tchernysheva

Title: Director

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 27

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BANK OF TEXAS, N.A.

By:

 

/s/ Mari Salazar

Name: Mari Salazar

Title: Senior Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 28

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ALLIED IRISH BANK p.l.c.

By:

 

/s/ David O’Driscoll

Name: David O’Driscoll

Title: Assistant Vice President

By:

 

/s/ Aidan Lanigan

Name: Aidan Lanigan

Title: Vice President

 

First Amendment – Fifth Amended and Restated Senior Revolving Credit Agreement

Signature Page 29

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ANNEX I

LIST OF MAXIMUM CREDIT AMOUNTS

Aggregate Maximum Credit Amounts

 

Name of Lender

   Applicable
Percentage     Maximum
Credit Amount  

BNP Paribas

     7.70270270 %    $ 154,054,054.05   

Bank of Montreal

     6.08108108 %    $ 121,621,621.62   

Bank of America, N.A.

     6.08108108 %    $ 121,621,621.62   

Barclays Bank PLC

     6.08108108 %    $ 121,621,621.62   

JP Morgan Chase Bank, N.A.

     6.08108108 %    $ 121,621,621.62   

Royal Bank of Canada

     6.08108108 %    $ 121,621,621.62   

Wells Fargo Bank, N.A.

     6.08108108 %    $ 121,621,621.62   

Morgan Stanley Bank, N.A.

     3.64864865 %    $ 72,972,972.97   

Morgan Stanley Senior Funding, Inc.

     2.43243243 %    $ 48,648,648.65   

Deutsche Bank Trust Company Americas

     5.13513514 %    $ 102,702,702.70   

Credit Agricole CIB

     5.13513514 %    $ 102,702,702.70   

Credit Suisse, Cayman Islands Branch

     5.13513514 %    $ 102,702,702.70   

UBS AG, Stamford Branch

     5.13513514 %    $ 102,702,702.70   

Capital One, N.A.

     3.78378378 %    $ 75,675,675.68   

ING Capital, LLC

     3.24324324 %    $ 64,864,864.86   

Mizuho Corporate Bank, Ltd.

     2.16216216 %    $ 43,243,243.24   

Amegy Bank National Association

     2.16216216 %    $ 43,243,243.24   

Citibank, N.A.

     2.16216216 %    $ 43,243,243.24   

KeyBank National Association

     2.00000000 %    $ 40,000,000.00   

SunTrust Bank

     2.00000000 %    $ 40,000,000.00   

Sumitomo Mitsui Banking Corporation

     2.00000000 %    $ 40,000,000.00   

The Bank of Nova Scotia

     2.00000000 %    $ 40,000,000.00   

Goldman Sachs Bank USA

     2.00000000 %    $ 40,000,000.00   

Natixis

     1.91891892 %    $ 38,378,378.38   

Bank of Texas, N.A.

     1.89189189 %    $ 37,837,837.84   

Allied Irish Bank p.l.c.

     1.86486486 %    $ 37,297,297.30   

TOTAL

     100.000000000 %    $ 2,000,000,000.00   

 

ANNEX I