Exhibit 10.1
THIRD AMENDMENT
TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
     THIS THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), dated as of November 10, 2011 is among SESI, L.L.C., as Borrower,
SUPERIOR ENERGY SERVICES, INC., as Parent, JPMORGAN CHASE BANK, N.A., as Agent
(the “Agent”), and the Lenders party hereto, who agree as follows:
RECITALS
     A. The Borrower, the Parent, the Agent and certain of the Lenders have
heretofore executed a Second Amended and Restated Credit Agreement dated as of
May 29, 2009 (as amended, the “Credit Agreement”).
     B. The Borrower proposes to issue senior unsecured notes up to the
aggregate principal amount of $700,000,000 (or such greater amount as the
Borrower and the Agent shall agree) having a maturity of at least 7 years from
the date of issue (the “Complete Acquisition Senior Notes”). The Borrower
proposes to retain the proceeds of the Complete Acquisition Senior Notes until
the closing of the acquisition (the “Complete Acquisition”) of Complete
Production Services, Inc., a Delaware corporation (the “Target”) by the Parent
pursuant to an Agreement and Plan of Merger dated as of October 9, 2011 among
the Target, the Parent and SPN Fairway Acquisition, Inc., a wholly-owned
subsidiary of the Parent, at which time, or as soon as practicable thereafter,
the Borrower proposes to use such proceeds to (i) satisfy and discharge the
indenture dated as of December 6, 2006, among Target, certain of its
subsidiaries and Wells Fargo Bank, National Association, as Trustee, relating to
the $650.0 million aggregate principal amount of the Target’s 8% Senior Notes
due 2016, (ii) repay any amounts outstanding on the closing date of the Complete
Acquisition under the Target’s existing credit facility (including accrued
interest and premiums associated therewith), (iii) pay the cash consideration
for the Complete Acquisition, (iv) pay the fees and expenses incurred in
connection with the Complete Acquisition and related financing transactions.
     C. In order to close the foregoing transaction, the Borrower has requested
modifications of the Credit Agreement in the following respects: (i) to permit
(as additional Funded Indebtedness) the Complete Acquisition Senior Notes;
(ii) to permit the Complete Acquisition; and (iii) for the period from the
issuance of the Complete Acquisition Senior Notes to and including the closing
of the Complete Acquisition and redemption of the Target’s 8% Senior Notes due
2016, which will occur as soon as practicable after such closing, to exclude
from Funded Indebtedness the cash proceeds of the Complete Acquisition Senior
Notes retained in cash or cash equivalents. The Agent and Lenders are willing to
accept the Borrower’s request on the terms and conditions set forth below.
     D. Capitalized terms used herein, and not otherwise defined herein, shall
have the meanings defined in the Credit Agreement.

 

--------------------------------------------------------------------------------

 

     NOW, THEREFORE, in consideration of the mutual covenants and undertakings,
the parties hereby agree as follows:
ARTICLE 1
AMENDMENTS TO THE CREDIT AGREEMENT
     1.1 Section 6.11(a) (vi) (Funded Indebtedness; Rate Management Obligations)
of the Credit Agreement is hereby amended to read as follows:

  (vi)   Funded Indebtedness represented by (w) the 67/8% Senior Notes up to the
aggregate principal amount of $300,000,000, issued pursuant to the Indenture
relating thereto dated as of May 22, 2006, among the Borrower, the Parent, the
respective Subsidiaries of the Parent party thereto and The Bank of New York
Trust Company, N.A., as trustee, (x) the 1.5% Senior Exchangeable Notes up to
the aggregate principal amount of $400,000,000 due 2026 issued pursuant to the
Indenture relating thereto dated as of December 12, 2006, among the Borrower,
the Parent, the respective Subsidiaries of the Parent party thereto and The Bank
of New York Trust Company, N.A., as trustee, provided that if the Notes
described in clause (y) hereof are issued, such 1.5% Senior Exchangeable Notes
must be redeemed in full on or before December 30, 2011; (y) the senior
unsecured notes up to the aggregate principal amount of $500,000,000 due 2019
(the “2011 Senior Notes”), to be issued pursuant to an Indenture among the
Borrower, the Parent, their respective Subsidiaries party thereto and The Bank
of New York Trust Mellon Company, N.A., as trustee, provided that the cash
proceeds of the 2011 Senior Notes up to an aggregate of $400,000,000 are
initially used to repay in full the outstanding principal balance of the
Revolving Loan, and the balance of the proceeds are held in cash or cash
equivalents until the Senior Exchangeable Notes are redeemable, at which time
said cash and cash equivalents together with other cash available to the
Borrower and/or advances available on the Revolving Loan shall be used to redeem
the Senior Exchangeable Notes in full on or before December 30, 2011; and (z)
the senior unsecured notes up to the aggregate principal amount of $700,000,000
(or such greater amount as the Borrower and the Agent shall agree) having a
maturity of at least 7 years from the date of issue (the “Complete Acquisition
Senior Notes”), to be issued pursuant to an Indenture among the Borrower, the
Parent, their respective Subsidiaries party thereto and a trustee to be
determined, provided that the cash proceeds of the Complete Acquisition Senior
Notes are held in cash or cash equivalents until the closing of the acquisition
(the “Complete Acquisition”) of Complete Production Services, Inc., a Delaware
corporation (the “Target”) by the Parent pursuant to an Agreement and Plan of
Merger dated as of October 9, 2011 among the Target, the Parent and SPN Fairway
Acquisition, Inc., a wholly-owned subsidiary of the Parent, at which time, or as
soon as practicable thereafter, the Borrower proposes to use such proceeds to
(i) satisfy and discharge the indenture dated as of December 6, 2006, among
Target, certain of its subsidiaries and Wells Fargo Bank, National Association,
as Trustee, relating to the $650.0 million aggregate principal amount of the
Target’s 8% Senior Notes due 2016, (ii) repay any

 

--------------------------------------------------------------------------------

 

      amounts outstanding on the closing date of the Complete Acquisition under
the Target’s existing credit facility (including accrued interest and premiums
associated therewith), (iii) pay the cash consideration for the Complete
Acquisition, (iv) pay the fees and expenses incurred in connection with the
Complete Acquisition and related financing transactions; in each case, as
amended, supplemented, amended and restated or otherwise modified, but not
increased in aggregate amount, from time to time.

     1.2 Notwithstanding anything in the Credit Agreement to the contrary,
including, without limitation, the provisions of Section 6.15(b), the Lenders
consent to the Complete Acquisition.
     1.3 During the period from the date of the issuance of the Complete
Acquisition Senior Notes to and including the closing of the Complete
Acquisition and redemption of the Target’s 8% Senior Notes due 2016, which will
occur as soon as practicable after such closing, “Funded Indebtedness” shall be
reduced by the cash proceeds of the Complete Acquisition Senior Notes retained
in cash or cash equivalents by the Borrower.
     1.3 Except as specifically amended hereby, all of the remaining terms and
conditions of the Credit Agreement remain in full force and effect.
ARTICLE 2
CONDITIONS PRECEDENT
     2.1 This Amendment shall be effective upon the Agent’s receipt of the
following, in form and substance satisfactory to the Agent:
     (i) Third Amendment. This Amendment, executed and delivered by the Agent,
the Parent, the Borrower and the Required Lenders.
     (ii) Chief Financial Officer Certificate. A certificate signed by the Chief
Financial Officer of the Parent certifying that (i) no Default or Event of
Default exists under the Credit Agreement; and (ii) that there has been no
Material Adverse Effect relating to the Parent, Borrower and Borrower’s
Subsidiaries occurring since December 31, 2010.
ARTICLE 3
MISCELLANEOUS
     3.1 The Parent and Borrower reaffirm to the Agent and Lenders that the
representations and warranties contained in Article V of the Credit Agreement
were true and correct when made, and are repeated at and as of the date hereof
and are true and correct in all material respects at and as of the date hereof,
except as such representations and warranties relate to matters that are
permitted by the Credit Agreement to be true only as of the Closing Date.

 

--------------------------------------------------------------------------------

 

     3.2 This Amendment is a contract, and the replacement Notes will be
contracts, made under and shall be construed in accordance with and governed by
the laws of the United States of America and the State of Louisiana.
     3.3 This Amendment constitutes a Loan Document (as that term is defined in
the Credit Agreement).
     3.4 This Amendment does not constitute a novation of the Credit Agreement
or the Obligations represented by the Credit Agreement, the Notes and the
Collateral Documents.
     3.5 This Amendment may be executed in any number of separate counterparts,
and all of said counterparts taken together shall be deemed to constitute one in
the same instrument.
[Signatures on following pages]

 

--------------------------------------------------------------------------------

 

     IN WITNESS WHEREOF, the Borrower, the Agent and the Lenders have executed
this Amendment as of the date first above written.

                  BORROWER:   SESI, L.L.C.    
 
                    By:   Superior Energy Services, Inc.
Member Manager    
 
               
 
      By:   /s/ Robert S. Taylor    
 
         
 
   
 
          Name: Robert S. Taylor    
 
          Title: Chief Financial Officer    
 
                PARENT:   SUPERIOR ENERGY SERVICES, INC.    
 
               
 
  By:   /s/ Robert S. Taylor                           Name: Robert S. Taylor  
          Title: Chief Financial Officer    

 

--------------------------------------------------------------------------------

 

              AGENT, CO-LEAD   JPMORGAN CHASE BANK, N.A.    
ARRANGER AND LENDER:
           
 
  By:   /s/ Donald K. Hunt    
 
           
 
      Name:  Donald K. Hunt    
 
      Title: Officer    

 

--------------------------------------------------------------------------------

 

              CO-LEAD ARRANGER AND LENDER:   WELLS FARGO BANK, N.A.    
 
           
 
  By:   /s/ Philip C. Lauinger III    
 
           
 
      Name: Philip C. Lauinger III    
 
      Title:  Managing Director    

 

--------------------------------------------------------------------------------

 

              CO-DOCUMENTATION AGENT AND LENDER:   WHITNEY NATIONAL BANK    
 
           
 
  By:   /s/ Hollie L. Ericksen    
 
           
 
      Name: Hollie L. Ericksen    
 
      Title: Vice President    

 

--------------------------------------------------------------------------------

 

              CO-DOCUMENTATION AGENT   PNC BANK, NATIONAL ASSOCIATION    
AND LENDER:
           
 
  By:   /s/ Anita Inkollu    
 
           
 
      Name: Anita Inkollu    
 
      Title: Vice President    

 

--------------------------------------------------------------------------------

 

          CO-DOCUMENTATION AGENT   COMERICA BANK, NA
AND LENDER:
         
 
  By:   /s/ Gary Culbertson  
 
         
 
      Name: Gary Culbertson  
 
      Title: Vice President  

 

--------------------------------------------------------------------------------

 

              CO-DOCUMENTATION AGENT   BANK OF AMERICA, N.A.    
AND LENDER:
           
 
  By:   /s/ Gary L. Mingle    
 
           
 
      Name: Gary L. Mingle    
 
      Title: Senior Vice-President    

 

--------------------------------------------------------------------------------

 

              CO-DOCUMENTATION AGENT   BNP PARIBAS    
AND LENDER:
           
 
  By:   /s/ Larry Robinson    
 
           
 
      Name: Larry Robinson    
 
      Title: Director    
 
           
 
  By:   /s/ Betsy Jocher    
 
           
 
      Name: Betsy Jocher    
 
      Title: Director    

 

--------------------------------------------------------------------------------

 

              LENDER:   CAPITAL ONE, NATIONAL
ASSOCIATION    
 
           
 
  By:   /s/ Ernie Eustis    
 
           
 
      Name: Ernie Eustis    
 
      Title: Sr. Vice President    

 

--------------------------------------------------------------------------------

 

              LENDER:   HSBC BANK USA, N.A.    
 
           
 
  By:   /s/ Bruce Robinson    
 
           
 
      Name: Bruce Robinson    
 
      Title: Vice President