Document:

Exhibit 10.2

 

Execution Version

 

INCREASE JOINDER

 

This INCREASE JOINDER, dated as of June 4, 2013 (this “Increase Joinder”), with respect to the Amended and Restated Credit Agreement, dated as of May 7, 2012 (as further amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among SUMMIT MIDSTREAM HOLDINGS, LLC, a Delaware limited liability company, the Lenders party thereto, THE ROYAL BANK OF SCOTLAND PLC, as administrative agent (in such capacity, the “Administrative Agent”) for the Lenders and as collateral agent for the Secured Parties (in such capacity, the “Collateral Agent”), THE ROYAL BANK OF SCOTLAND PLC and BANK OF AMERICA, N.A., as issuing banks (each in such capacity, the “Issuing Bank”), and the other arrangers and agents party thereto.

 

A.                                    Section 2.20(a) of the Credit Agreement provides that Borrower may, from time to time, request Incremental Commitments in an aggregate amount not to exceed $50.0 million subject to adjustments as set forth therein and subject to the terms and conditions set forth therein.

 

B.                                    Borrower desires to incur Incremental Commitments pursuant to Section 2.20(a) of the Credit Agreement in an aggregate principal amount of $50.0 million (the “Incremental Facility”), which will be used by Borrower and its subsidiaries from time to time in accordance with Section 5.08 of the Credit Agreement.

 

C.                                    The lenders identified as “Incremental Lenders” on the signature pages hereto (the “Incremental Lenders”) desire to provide Incremental Commitments in the several amounts set forth on Schedule A hereto.

 

D.                                    Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

In consideration of the premises and the agreements, provisions and covenants contained herein, the parties hereto hereby agree, on the terms and subject to the conditions set forth herein, as follows:

 

SECTION 1.                            Increase Joinder.

 

A.                                    This Increase Joinder is a “joinder agreement” referenced in Section 2.20(a) of the Credit Agreement.  Borrower, the Administrative Agent and the Incremental Lenders hereby agree that the Incremental Commitments shall become effective upon the satisfaction of the conditions set forth in Section 2 hereof (the date on which such conditions are satisfied, the “Increase Amount Date”).

 

B.                                    Borrower, the Administrative Agent and the Incremental Lenders hereby agree that the Incremental Commitments and Revolving Facility Loans made with respect thereto shall have terms identical to those of the existing Revolving Facility Commitments and the existing Revolving Facility Loans (other than with respect to upfront fee pricing).  After giving effect hereto on the Increase Amount Date, the Incremental Commitments shall be deemed to be Revolving Facility Commitments and the Revolving Facility Commitments shall be deemed increased by the amount of the Incremental Facility.  Each Incremental Lender’s Incremental Commitment shall be in the amount set forth on Schedule A hereto.  The Revolving Facility Commitments of the existing Revolving Facility Lenders and the Incremental Lenders shall be adjusted as provided in Section 2.20(b) of the Credit Agreement and as further provided on Schedule A hereto.

 

C.                                    After giving effect hereto on the Increase Amount Date, there shall be $0 of further capacity to effectuate Incremental Commitments pursuant to Section 2.20(a) of the Credit Agreement.

 

 

SECTION 2.                            Conditions Precedent.  The occurrence of the Increase Amount Date is subject to the following conditions:

 

A.                                    the Administrative Agent shall have received signature pages for this Increase Joinder from Borrower and the Incremental Lenders;

 

B.                                    the Administrative Agent shall have received from Borrower a certificate, executed by the secretary of Borrower (or such other officer as may be acceptable to the Administrative Agent) in form and substance satisfactory to the Administrative Agent, attaching a copy of the resolutions, in form and substance reasonably satisfactory to the Administrative Agent, of the Board of Directors (or similar body) of Borrower (or a duly authorized committee thereof) authorizing the execution, delivery and performance of this Increase Joinder and the related transactions;

 

C.                                    Borrower shall have provided written notice of their request for the Incremental Facility, which notice shall include all such information required by Section 2.20(a) of the Credit Agreement and shall have been delivered to the Administrative Agent at least five Business Days prior to the Increase Amount Date;

 

D.                                    the Administrative Agent shall have received from Borrower a certificate in form and substance satisfactory to the Administrative Agent, which certificate has been executed by the secretary of Borrower (or other such officer as may be acceptable to the Administrative Agent) and certifies that

 

(i)                                     no Default or Event of Default exists;

 

(ii)                                  the representations and warranties contained in Article III of the Credit Agreement and the other Loan Documents are true and correct as of the date hereof in all material respects, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date; and

 

(iii)                               the Borrower and its Restricted Subsidiaries are in compliance, on a Pro Forma Basis, with the Financial Performance Covenants recomputed as at the last day of the most recently ended fiscal quarter of the Borrower and its Restricted Subsidiaries.

 

E.                                     Borrower shall have paid all amounts owed pursuant to Section 2.16 of the Credit Agreement in connection with the provisions of the Incremental Commitments;

 

F.                                      Borrower shall have paid all amounts owed pursuant to Section 8 hereof;

 

G.                                    Borrower and each Subsidiary Loan Party shall have entered into and delivered to the Administrative Agent and the Collateral Agent, reaffirmations of the guarantees and the security interests and Liens granted by such Persons under the Collateral Documents in a form reasonably satisfactory to the Administrative Agent and Collateral Agent;

 

H.                                   Borrower shall have paid to the Administrative Agent, for the benefit of each Incremental Revolving Lender, a fee equal to 0.50% of the aggregate amount of each such Incremental Lender’s Incremental Commitment on the Increase Amount Date; and Borrower shall have paid to RBS Securities Inc., as lead arranger with respect to this Increase Joinder, such fees as Borrower and RBS Securities Inc. have separately agreed to; and

 

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I.                                        the Administrative Agent shall be satisfied that, on and as of the Increase Amount Date, the Revolving Commitments shall have increased by at least $10.0 million pursuant to this Increase Joinder.

 

SECTION 3.                            Post Closing Obligations.  If requested by the Collateral Agent (in its sole discretion), within sixty (60) days of the Increase Amount Date, or such later date as the Collateral Agent shall agree in its sole discretion, the Collateral Agent shall have received either:

 

A.                                    a favorable opinion, addressed to the Administrative Agent, Collateral Agent and each of the Lenders, in form and substance reasonably satisfactory to the Collateral Agent, from local counsel in each jurisdiction in which the Mortgaged Properties are located substantially to the effect that:

 

(i)                                     the recording of the Mortgages are the only filings or recordings necessary to give constructive notice to third parties of the lien created by the Mortgages as security for the Secured Obligations (including the new Incremental Facility); and

 

(ii)                                  no other documents, instruments, filings, recordings, re-recordings, re-filings or other actions are necessary under applicable law in order to maintain the continued validity or priority of the liens created by each Mortgage as security for the Secured Obligations (including the new Incremental Facility); or

 

B.                                    such other documentation with respect to each Mortgaged Property, in each case in form and substance reasonably acceptable to the Collateral Agent, as shall confirm the validity and perfection of the lien in favor of the Secured Parties, including, without limitation:

 

(i)                                     With respect to each Mortgage encumbering Mortgaged Property, an amendment thereof (each a “Mortgage Amendment”) duly executed and acknowledged by the applicable Loan Party, and in form for recording in the recording office where each such Mortgage was recorded, together with such certificates, affidavits, questionnaires or returns as shall be required in connection with the recording or filing thereof under applicable law, in each case in form and substance reasonably satisfactory to the  Collateral Agent;

 

(ii)                                  With respect to each Mortgage Amendment, opinions of local counsel to the Loan Parties, which opinions (a) shall be addressed to the Administrative Agent, Collateral Agent and each of the Lenders, (b) shall cover the enforceability of the respective Mortgage as amended by the Mortgage Amendment and such other matters incident to the transactions contemplated herein as the Collateral Agent may reasonably request and (c) shall be in form and substance reasonably satisfactory to the Collateral Agent;

 

(iii)                               Evidence reasonably acceptable to the Collateral Agent of payment by Borrower of all search and examination charges, escrow charges and related charges, mortgage recording taxes, fees, charges, costs and expenses required for the recording of the Mortgage Amendments referred to above; and

 

(iv)                              with respect to each Mortgaged Property, each Loan Party shall have made all notifications, registrations and filings, to the extent required by, and in accordance with, any Law of any Governmental Authority requiring notification of the buyer, lessee, mortgagee, assignee or other transferee of any Real Property, facility, establishment or business, or notification, registration or filing to or with any Governmental Authority, in connection with the sale, lease, mortgage, assignment or other transfer (including any transfer of control) of any Real Property.

 

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SECTION 4.                            Representations and Warranties.  Borrower represents and warrants to the Administrative Agent and each of the Lenders that this Increase Joinder is within Borrower’s organizational powers and has been duly authorized by all necessary organizational action on the part of Borrower.  This Increase Joinder has been duly executed and delivered by Borrower and constitutes, a legal, valid and binding obligation of Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.  This Increase Joinder will not violate any Requirement of Law in any material respect, will not violate or result in a default or require any consent or approval under any indenture, agreement or other instrument binding upon any Company or its property, or give rise to a right thereunder to require any payment to be made by any Company, except for violations, defaults or the creation of such rights that could not reasonably be expected to result in a Material Adverse Effect.

 

SECTION 5.                            Credit Agreement.  Except as specifically provided hereby, the Credit Agreement shall continue in full force and effect in accordance with the provisions thereof as in existence on the date hereof.  After the Increase Amount Date, any reference to the Credit Agreement in any Loan Document shall mean the Credit Agreement as modified hereby.  This Increase Joinder shall be a Loan Document for all purposes.

 

SECTION 6.                            Applicable Law.  This Increase Joinder shall be construed in accordance with and governed by the law of the State of New York, without regard to conflicts of law principles that would require the application of the laws of another jurisdiction.

 

SECTION 7.                            Counterparts.  This Increase Joinder may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute one contract.  Delivery of an executed signature page of this Increase Joinder by facsimile or “pdf file” transmission shall be effective as delivery of a manually executed counterpart hereof.

 

SECTION 8.                            Expenses.  Borrower agrees to reimburse the Administrative Agent for the reasonable out-of-pocket expenses incurred by it in connection with this Increase Joinder, including the reasonable fees, charges and disbursements of Sidley Austin LLP, counsel for the Administrative Agent, and of local counsel to the Administrative Agent.

 

SECTION 9.                            Headings.  The Section headings used herein are for convenience of reference only, are not part of this Increase Joinder and are not to affect the construction of, or to be taken into consideration in interpreting, this Increase Joinder.

 

[Signature pages to follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Increase Joinder to be duly executed by their respective authorized officers as of the day and year first written above.

 

 

	
 
    	
SUMMIT   MIDSTREAM HOLDINGS LLC, as Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
Summit   Midstream Partners, LP, its sole member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steve Newby
    
	
 
    	
Name:
    	
Steve   Newby
    
	
 
    	
Title:
    	
President   and Chief Executive Officer
    
				

 

Summit — Increase Joinder

 

 

	
 
    	
THE   ROYAL BANK OF SCOTLAND PLC,
    
	
 
    	
as   Administrative Agent, Collateral Agent and an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sanjay Remond
    
	
 
    	
Name:
    	
Sanjay   Remond
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

Summit — Increase Joinder

 

 

	
 
    	
ROYAL   BANK OF CANADA, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jason S. York
    
	
 
    	
Name:
    	
Jason   S. York
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

Summit — Increase Joinder

 

 

 

	
 
    	
DEUTSCHE   BANK TRUST COMPANY AMERICAS, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael Getz
    
	
 
    	
Name:
    	
Michael   Getz
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Marcus M. Tarkington
    
	
 
    	
Name:
    	
Marcus   M. Tarkington
    
	
 
    	
Title:
    	
Director
    

 

Summit — Increase Joinder

 

 

	
 
    	
BANK   OF AMERICA NA, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Michael J. Clayborne
    
	
 
    	
Name:
    	
Michael   J. Clayborne
    
	
 
    	
Title:
    	
Vice   President
    

 

Summit — Increase Joinder

 

 

	
 
    	
COMPASS   BANK, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kathleen J. Bowen
    
	
 
    	
Name:
    	
Kathleen   J. Bowen
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

Summit — Increase Joinder

 

 

	
 
    	
BARCLAYS   BANK PLC, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Sreedhar R. Kona
    
	
 
    	
Name:
    	
Sreedhar   R. Kona
    
	
 
    	
Title:
    	
Vice   President
    

 

Summit — Increase Joinder

 

 

	
 
    	
AMEGY   BANK NATIONAL ASSOCIATION, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jill McSorley
    
	
 
    	
Name:
    	
Jill   McSorley
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

Summit — Increase Joinder

 

 

	
 
    	
CAPITAL   ONE, NATIONAL ASSOCIATION, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Nancy Mak
    
	
 
    	
Name:   
    	
Nancy   Mak
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

Summit — Increase Joinder

 

 

	
 
    	
GOLDMAN   SACHS BANK USA, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Walton
    
	
 
    	
Name:
    	
Mark   Walton
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

Summit — Increase Joinder

 

 

	
 
    	
COMERICA   BANK, as an Incremental Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   John S. Lesikar
    
	
 
    	
Name:
    	
John   S. Lesikar
    
	
 
    	
Title:
    	
Vice   President
    

 

Summit — Increase Joinder

 

 

Schedule A

 

Incremental CommitmentsExhibit 10.3

 

Execution Copy

 

UNIT PURCHASE AGREEMENT

 

This UNIT PURCHASE AGREEMENT (this “Agreement”) is dated as of June 4, 2013 (the “Effective Date”), among Summit Midstream Partners, LP, a Delaware limited partnership (“Seller”), Summit Midstream Partners Holdings, LLC, a Delaware limited liability company (“Partners Holdings”) and Summit Midstream GP, LLC (the “General Partner,” and collectively, with Partners Holdings, the “Buyer”).

 

RECITALS

 

WHEREAS, Seller entered into that certain Purchase and Sale Agreement, dated June 4, 2013, with MarkWest Liberty Midstream & Resources, L.L.C. (the “Acquisition Agreement”);

 

WHEREAS, pursuant to the terms of the Acquisition Agreement, Seller agreed to acquire certain natural gas gathering assets (the “Acquisition”) for approximately $210 million (the “Acquisition Consideration”).

 

WHEREAS, Seller desires to sell and Buyer desires to purchase 3,107,698 common units representing limited partner interests in Seller (the “Common Units”) and 63,422 general partner units representing general partner interests in Seller (the “General Partner Units, and collectively with the Common Units, the “Units”) at the per Unit price set forth herein in order to fund a portion of the Acquisition Consideration.

 

AGREEMENT

 

NOW, THEREFORE, for and in consideration of the foregoing premises and of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:

 

Section 1.                                          Purchase and Sale of the Units

 

1.1                               Sale of the Units.  Subject to the terms and conditions of this Agreement, effective concurrently with the closing of the Acquisition, Buyer agrees to purchase from Seller, and Seller agrees to sell to Buyer, 3,107,698 Common Units and 63,422 General Partner Units in consideration of an aggregate payment of $100 million (the “Unit Purchase Price”) by Buyer; the per Unit purchase price is equal to the volume weighted daily average price of the Common Units for the five trading days immediately prior to the Effective Date as reported on the New York Stock Exchange.

 

1.2                               Closing.  The closing of the transactions contemplated by this Agreement (the “Closing”) and the issuance of the Units by the Seller shall take place concurrently with the closing of the Acquisition contemplated by the Acquisition Agreement; provided, however, that if the closing of the Acquisition shall not have occurred on or before June 30, 2013, the Units will not be issued by Seller to Buyer, and this Agreement shall terminate and be of no further force or effect.

 

 

1.3                               Closing Deliveries

 

(a)                                 At the Closing, Seller and Buyer shall deliver an executed cross receipt acknowledging receipt of the Unit Purchase Price and the Units, respectively.

 

(b)                                 At the Closing, Seller shall cause Seller’s transfer agent to record the ownership of the Units on the records of the transfer agent in accordance with instructions from Buyer.

 

Section 2.                                          Representations and Warranties

 

2.1                               Buyer’s Representations and Acknowledgements.  Buyer represents and warrants to Seller that:

 

(a)                                 Buyer has all requisite power and authority to execute and deliver this Agreement and to perform the transactions contemplated hereby and this Agreement is a valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms;

 

(b)                                 The Units are being acquired solely for the account of Buyer and not with a view to, or for resale in connection with, a distribution of all or any part thereof; and

 

(c)                                  (i) it is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated by the Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the “1933 Act”), and (ii) by reason of its business and financial experience it has such knowledge, sophistication and experience in making similar investments and in business and financial matters generally so as to be capable of evaluating the merits and risks of the prospective investment in the Units, is able to bear the economic risk of such investment and, at the present time, would be able to afford a complete loss of such investment.

 

Buyer acknowledges and understands that the Units have not been registered under the 1933 Act, and therefore are subject to resale restrictions. Buyer agrees to the placement of a legend on any Unit certificate or on the records of the transfer agent to the effect that the Units may not be sold without registration under the 1933 Act or pursuant to an exemption from registration.

 

2.2                               Seller’s Representations.  Seller represents and warrants to Buyer that:

 

(a)                                 Seller has all necessary power and authority to execute and deliver this Agreement and to perform the transactions contemplated hereby and this Agreement is a valid and binding obligation of Seller, enforceable against Seller in accordance with its terms;

 

(b)                                 No consent, approval or authorization of any third party is required for consummation by Seller of the transactions contemplated by this Agreement, and the execution and delivery of this Agreement and the performance of the transactions contemplated hereby do not violate, conflict with, or cause a default under any contract, agreement, document, or instrument, any law, rule, regulation or any judicial or administrative decision to which Seller or

 

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the Units may be subject, or that would create a lien, security interest, encumbrance or restriction of any kind upon the Units; and

 

(c)                                  Upon the payment for the Units in accordance with the terms of this Agreement, good and valid title to all of the Units, free and clear of all mortgages, liens, security interests, pledges, charges, encumbrances or claims of any kind (other than transfer restrictions imposed thereon by federal or state securities laws or arising under the Seller’s limited partnership agreement) will be sold to and vest in Buyer.

 

2.3                               Survival; Indemnity.  All representations and warranties made herein shall survive the Closing. Buyer agrees to indemnify and hold Seller harmless from any and all losses, damages, claims, actions and proceedings, including any legal or other expenses, arising out of any breach of any representation or warranty made by the Buyer herein and Seller agrees to indemnify and hold Buyer harmless from any and all losses, damages, claims, actions and proceedings, including any legal or other expenses, arising out of any breach of any representation or warranty made by the Seller herein.

 

Section 3.                                          Further Assurances

 

Each party agrees to, at any time and from time to time, promptly execute and deliver such further agreements, documents and instruments, including a registration rights agreement with respect to the Units, and promptly take or forbear from taking such further actions as the other party may reasonably request in order to more effectively confirm or carry out the provisions of this Agreement.

 

Section 4.                                          Miscellaneous

 

4.1                               Entire Agreement.  Each party hereto acknowledges that this Agreement embodies the entire agreement and understanding between them with respect to the subject matter hereof and supersedes any prior agreements and understandings relating to the subject matter hereof. This Agreement may not be altered, modified, terminated or discharged except by a writing signed by the party against whom such alteration, modification, termination or discharge is sought.

 

4.2                               Binding Nature.  This Agreement shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors, heirs, personal representatives and assigns.

 

4.3                               Governing Law.  This Agreement shall be governed by and construed under the laws of the state of Delaware.

 

4.4                               Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of which, taken together, shall constitute one and the same instrument. Delivery of an executed signature page to this Agreement by facsimile transmission shall be as effective as delivery of a manually signed counterpart hereof.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties have executed this UNIT PURCHASE AGREEMENT as of the date first written above.

 

	
 
    	
THE   SELLER:
    
	
 
    	
 
    
	
 
    	
SUMMIT   MIDSTREAM PARTNERS, LP
    
	
 
    	
 
    
	
 
    	
By:   Summit Midstream GP, LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Steven J. Newby
    
	
 
    	
Name:   Steven J. Newby
    
	
 
    	
Title:   President and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BUYER:
    
	
 
    	
 
    
	
 
    	
SUMMIT   MIDSTREAM PARTNERS HOLDINGS, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brock M. Degeyter
    
	
 
    	
Name:   Brock M. Degeyter
    
	
 
    	
Title:   Senior Vice President, General Counsel and Secretary
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SUMMIT   MIDSTREAM GP, LLC
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Brock M. Degeyter
    
	
 
    	
Name:   Brock M. Degeyter
    
	
 
    	
Title:   Senior Vice President, General Counsel and Secretary

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