CHAPARRAL ENERGY, INC. (NYSE: CHAP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.
Entry Into a Material Definitive Agreement.
On December 7, 2018, Chaparral Energy, Inc. (the “Company”) entered into the Resignation, Consent and Appointment Agreement and Second Amendment (the “Amendment”) to the Tenth Restated Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as existing administrative agent and issuing bank, Royal Bank of Canada, as successor administrative agent and issuing bank, and the additional lenders party thereto (collectively, the “Lenders”). The Amendment, among other things, (i) substitutes Royal Bank of Canada as the administrative agent in replacement of JPMorgan Chase Bank, N.A.; (ii) substitutes Royal Bank of Canada as the issuing bank in replacement of JPMorgan Chase Bank, N.A.; (iii) effects the resignation of JPMorgan Chase Bank, N.A. and certain other existing lenders under the Credit Agreement and the reallocation of aggregate principal amount of the revolving line of credit among the remaining Lenders; (iv) increases the aggregate principal amount of the revolving line of credit under the Credit Agreement from $400,000,000 to $750,000,000; (v) increases the borrowing base under the Credit Agreement from $265,000,000 to $325,000,000; (vi) decreases the applicable margin on outstanding borrowings under the Credit Agreement by 50 basis points; and (vii) allows the Company to enter into commodity derivative contracts to hedge up to 80% of its internally forecasted production for the first 24 months and up to 80% of estimated production from proved oil and natural gas reserves for the subsequent 36 months.
The foregoing description of the Amendment is qualified in its entirety by reference to the full text of the Amendment, which is attached hereto as Exhibit 10.1 and incorporated by reference herein.
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Item 1.01. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of Registrant. |
The information regarding the Amendment set forth in Item 1.01 of this Report is incorporated by reference herein.
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Item 1.01. |
Regulation FD Disclosure. |
On December 10, 2018, the Company issued a press release announcing the entry into the Amendment described above. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.
In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 1.01 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished to Item 1.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference into any filings under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof and regardless of any general incorporation language in such filings, except to the extent expressly set forth by specific reference in such a filing. The filing of this Item 1.01 of this Current Report on Form 8-K shall not be deemed an admission as to the materiality of any information herein that is required to be disclosed solely by reason of Regulation FD.
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Item 1.01 |
Financial Statements and Exhibits. |
(d) Exhibits
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Exhibit Number |
Description |
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10.1 |
Resignation, Consent and Appointment Agreement and Second Amendment to Tenth Restated Credit Agreement, dated as of December 7, 2018, among Chaparral Energy, Inc., as borrower, JPMorgan Chase Bank, N.A., as existing administrative agent and issuing bank, Royal Bank of Canada, as successor administrative agent and issuing bank, and the additional lenders party thereto.
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99.1 |
Press Release of the Company dated December10, 2018.
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Chaparral Energy, Inc. ExhibitEX-10.1 2 a2018-12x10ex101.htm EXHIBIT 10.1 Exhibit EXHIBIT 10.1RESIGNATION,…To view the full exhibit click here
