Exhibit 10.1

 

 

FOURTH AMENDMENT

 

TO

 

SENIOR REVOLVING CREDIT AGREEMENT

 

DATED AS OF MAY 8, 2013

 

AMONG

 

HALCÓN RESOURCES CORPORATION,
AS BORROWER,

 

THE GUARANTORS,

 

JPMORGAN CHASE BANK, N.A.,
AS ADMINISTRATIVE AGENT,

 

WELLS FARGO BANK, N.A.
AS SYNDICATION AGENT,

 

BANK OF MONTREAL,
AS DOCUMENTATION AGENT,

 

AND

 

THE LENDERS PARTY HERETO

 

 

SOLE LEAD ARRANGER

 

 J. P. MORGAN SECURITIES LLC

 

JOINT BOOKRUNNERS

 

J. P. MORGAN SECURITIES LLC AND WELLS FARGO SECURITIES, LLC

 

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FOURTH AMENDMENT
TO SENIOR REVOLVING CREDIT AGREEMENT

 

THIS FOURTH AMENDMENT TO SENIOR REVOLVING CREDIT AGREEMENT (this “Fourth
Amendment”) dated as of May 8, 2013 is among HALCÓN RESOURCES CORPORATION, a
corporation duly formed and existing under the laws of the State of Delaware
(the “Borrower”), each of the undersigned guarantors (the “Guarantors”, and
together with the Borrower, the “Obligors”), each of the undersigned lenders
party to the Credit Agreement referred to below, JPMORGAN CHASE BANK, N.A., as
administrative agent for the Lenders (in such capacity, together with its
successors in such capacity, the “Administrative Agent”), Wells Fargo Bank,
N.A., as syndication agent for the Lenders and Bank of Montreal, as
documentation agent for the Lenders.

 

R E C I T A L S

 

A.            The Borrower, the Administrative Agent, the Lenders and the other
Agents party thereto, are parties to that certain Senior Revolving Credit
Agreement dated as of February 8, 2012 (as amended by the First Amendment dated
July 31, 2012, the Second Amendment dated January 25, 2013, the Third Amendment
dated April 26, 2013, and as may be further amended, restated, modified or
supplemented, the “Credit Agreement”), pursuant to which the Lenders have made
certain credit and other financial accommodations available to and on behalf of
the Borrower and its Subsidiaries.

 

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

 

C.            NOW, THEREFORE, to induce the Administrative Agent and the Lenders
to enter into this Fourth Amendment and 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 used herein but
not otherwise defined herein has the meaning given such term in the Credit
Agreement, as amended by this Fourth Amendment.  Unless otherwise indicated, all
section references in this Fourth Amendment refer to sections of the Credit
Agreement.

 

Section 2.              Amendments to Credit Agreement.  Section 9.01(a) of the
Credit Agreement is amended, in its entirety, effective as of the Fourth
Amendment Effective Date to read as follows:

 

Interest Coverage Ratio.  The Borrower will not, as of the last day of any
fiscal quarter, permit its Interest Coverage Ratio to be to be less than 2.5 to
1.0; provided that (i) for the fiscal quarter ended June 30, 2013, the Interest
Coverage Ratio shall be calculated by utilizing EBITDA for the three month
period then ended multiplied by 4; (ii) for the fiscal quarter ended
September 30, 2013, the Interest Coverage Ratio shall be calculated by utilizing
EBITDA for the six month period then ended multiplied by 2; and (iii) for the
fiscal quarter ended December 31, 2013, the Interest Coverage Ratio shall be
calculated by utilizing EBITDA for the nine month period then ended multiplied
by 4/3.

 

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Section 3.              Conditions Precedent.  This Fourth Amendment shall
become effective on the date when the Administrative Agent shall have received a
counterpart of this Fourth Amendment signed by the Borrower, the Lenders
constituting the Majority Lenders and each of the following conditions is
satisfied (or waived in accordance with Section 12.02 of the Credit Agreement)
(such date, the “Fourth Amendment Effective Date”):

 

At the time of and immediately after giving effect to this Fourth Amendment,
(i) no Default or Event of Default shall have occurred and be continuing and
(ii) no event or events shall have occurred which individually or in the
aggregate could reasonably be expected to have a Material Adverse Effect.

 

The Administrative Agent is hereby authorized and directed to declare this
Fourth 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 3 or the waiver of such conditions as
permitted in Section 12.02 of the Credit Agreement. Such declaration shall be
final, conclusive and binding upon all parties to the Credit Agreement for all
purposes.

 

Section 4.              Miscellaneous.

 

4.1          Confirmation.  The provisions of the Credit Agreement, as amended
by this Fourth Amendment, shall remain in full force and effect following the
effectiveness of this Fourth Amendment.

 

4.2          Ratification and Affirmation; Representations and Warranties.  Each
Obligor hereby (a) acknowledges the terms of this Fourth Amendment; (b) ratifies
and affirms its obligations under, and acknowledges, renews and extends its
continued liability under, each Loan Document to which it is a party and agrees
that each Loan Document to which it is a party remains in full force and effect,
except as expressly amended hereby, and (c) represents and warrants to the
Lenders that on and as of the date hereof, and immediately after giving effect
to the terms of this Fourth Amendment:  (i) 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 (except those which have a materiality
qualifier, which shall be true and correct as so qualified), except to the
extent any such representations and warranties are expressly limited to an
earlier date, in which case, such representations and warranties shall continue
to be true and correct as of such specified earlier date; (ii) no Default or
Event of Default has occurred and is continuing and (iii) no event or events
have occurred which individually or in the aggregate could reasonably be
expected to have a Material Adverse Effect.

 

4.3          Loan Document.  This Fourth Amendment is a Loan Document.

 

4.4          Counterparts.  This Fourth 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.  Delivery of this Fourth Amendment by facsimile or electronic
transmission in portable document format (.pdf) shall be effective as delivery
of a manually executed counterpart hereof.

 

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4.5          NO ORAL AGREEMENT.  THIS FOURTH 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 ORAL AGREEMENTS BETWEEN THE PARTIES.

 

4.6          GOVERNING LAW.  THIS FOURTH AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

4.7          Severability.  Any provision of this Fourth Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

4.8          Successors and Assigns.  This Fourth Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

 

[SIGNATURES BEGIN NEXT PAGE]

 

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

 

BORROWER:

 

HALCÓN RESOURCES CORPORATION

 

 

 

 

 

 

By:

/s/ Mark J. Mize

 

 

 

Name:

Mark J. Mize

 

 

 

Title:

Executive Vice President, Chief Financial Officer and Treasurer

 

 

GUARANTORS:

HALCÓN HOLDINGS, INC.

 

HALCÓN RESOURCES OPERATING, INC.

 

HALCÓN ENERGY PROPERTIES, INC.

 

HALCÓN ENERGY HOLDINGS, LLC

 

HALCÓN GULF STATES, LLC

 

HALCÓN OPERATING CO., INC.

 

HRC ENERGY RESOURCES (WV), INC.

 

HRC ENERGY LOUISIANA, LLC

 

HRC PRODUCTION COMPANY

 

HALCÓN FIELD SERVICES, LLC

 

HALCÓN LOUISIANA OPERATING, L.P.

 

HRC ENERGY, LLC

 

HRC OPERATING, LLC

 

SOUTHERN BAY ENERGY, LLC

 

HK ENERGY OPERATING, LLC

 

HK LOUISIANA OPERATING, LLC

 

HK OIL & GAS, LLC

 

HALCÓN WILLISTON I, LLC

 

HALCÓN WILLISTON II, LLC

 

 

 

 

 

 

By:

/s/ Mark J. Mize

 

 

 

Name:

Mark J. Mize

 

 

 

Title:

Executive Vice President, Chief Financial Officer and Treasurer, for and on
behalf of each of the foregoing Guarantors

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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ADMINISTRATIVE AGENT AND LENDER:

JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent and Lender

 

 

 

By:

/s/ Michael A. Kamauf

 

 

Name: Michael A. Kamauf

 

 

Title: Authorized Officer

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

WELLS FARGO BANK, N.A.,

 

as Lender

 

 

 

By:

/s/ Brett A. Steele

 

 

Name: Brett Steele

 

 

Title: Vice President

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

BMO HARRIS FINANCING, INC.,

 

as Lender

 

 

 

By:

/s/ James V. Ducote

 

 

Name: James V. Ducote

 

 

Title: Director

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

BARCLAYS BANK PLC,

 

as Lender

 

 

 

By:

/s/ Sreedhar R. Kona

 

 

Name: Sreedhar R. Kona

 

 

Title: Vice President

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

SUNTRUST BANK,

 

as Lender

 

 

 

By:

/s/ Shannon Juhan

 

 

Name: Shannon Juhan

 

 

Title: Vice President

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

CAPITAL ONE, NATIONAL ASSOCIATION,

 

as Lender

 

 

 

By:

/s/ Victor Ponce de León

 

 

Name: Victor Ponce de León

 

 

Title: Vice President

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

 

GOLDMAN SACHS BANK USA,

 

 

as Lender

 

 

 

 

 

 

By:

/s/ Michelle Latzoni

 

 

 

Name: Michelle Latzoni

 

 

 

Title: Authorized Signatory

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

ROYAL BANK OF CANADA,

 

as Lender

 

 

 

By:

/s/ Jay Sartain

 

 

Name: Jay Sartain

 

 

Title: Authorized Signatory

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

BANK OF AMERICA, N.A.,

 

as Lender

 

 

 

By:

/s/ Adam H. Fey

 

 

Name: Adam H. Fey

 

 

Title: Director

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

THE ROYAL BANK OF SCOTLAND PLC,

 

as Lender

 

 

 

By:

/s/ Sanjay Remond

 

 

Name: Sanjay Remond

 

 

Title: Director

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,

 

as Lender

 

 

 

By:

/s/ Kevin Buddhdew

 

 

Name: Kevin Buddhdew

 

 

Title: Authorized Signatory

 

 

 

 

By:

/s/ Alex Verdone

 

 

Name: Alex Verdone

 

 

Title: Authorized Signatory

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,

 

as Lender

 

 

 

By:

/s/ Sharada Manne

 

 

Name: Sharada Manne

 

 

Title: Managing Director

 

 

 

 

By:

/s/ Ting Lee

 

 

Name: Ting Lee

 

 

Title: Director

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

NATIXIS,

 

as Lender

 

 

 

By:

/s/ Stuart Murray

 

 

Name: Stuart Murray

 

 

Title: Managing Director

 

 

 

 

By:

/s/ Louis P. Laville, III

 

 

Name: Louis P. Laville, III

 

 

Title: Managing Director

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

ING CAPITAL LLC,

 

as Lender

 

 

 

By:

/s/ Charles Hall

 

 

Name: Charles Hall

 

 

Title: Managing Director

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

COMERICA BANK,

 

as Lender

 

 

 

By:

/s/ Justin Crawford

 

 

Name: Justin Crawford

 

 

Title: Senior Vice President

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

DEUTSCHE BANK TRUST COMPANY OF AMERICAS,

 

as Lender

 

 

 

By:

/s/ Marcus M. Tarkington

 

 

Name: Marcus M. Tarkington

 

 

Title: Director

 

 

 

 

By:

/s/ Benjamin Souh

 

 

Name: Benjamin Souh

 

 

Title: Vice President

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

THE BANK OF NOVA SCOTIA,

 

as Lender

 

 

 

By:

/s/ Terry Donovan

 

 

Name: Terry Donovan

 

 

Title: Managing Director

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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LENDER:

KEYBANK NATIONAL ASSOCIATION

 

as Lender

 

 

 

By:

/s/ Chulley Bogle

 

 

Name: Chulley Bogle

 

 

Title: Vice President

 

SIGNATURE PAGE — FOURTH AMENDMENT

 

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