CIMAREX ENERGY CO. (NYSE:XEC) Files An 8-K Entry into a Material Definitive Agreement
ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
As described more fully under Item 2.03 below, which description is incorporated herein by reference, on February5, 2019, Cimarex Energy Co. (the “Company”) entered into the Amended and Restated Credit Agreement (the “Amended and Restated Credit Agreement”) among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, Wells Fargo Bank, N.A., as syndication agent, the co-documentation agents party thereto, J.P. Morgan Chase Bank, N.A. and Wells Fargo Securities, LLC, as lead arrangers and bookrunners, and the lenders party thereto, amending and restating the existing Credit Agreement, dated as of October16, 2015 (the “Credit Agreement”) among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, Wells Fargo Bank, N.A., as syndication agent, the co-documentation agents party thereto, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, as lead arrangers and bookrunners, and the lenders party thereto. A copy of the Amended and Restated Credit Agreement is attached hereto as Exhibit10.1 and is incorporated herein by reference.
ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF A REGISTRANT.
On February5, 2019, the Company entered into the Amended and Restated Credit Agreement. The Credit Agreement provided for a senior unsecured revolving credit facility with an aggregate commitment from the lenders of $1 billion (with a $10 million sub-limit for letters of credit) and an expiration of October16, 2020.
The Amended and Restated Credit Agreement, among other things:
· extends the maturity date to February5, 2024; and
· modifies the applicable rates for borrowings under the Amended and Restated Credit Agreement so that, at the Company’s option, borrowings under the Amended and Restated Credit Agreement may bear interest at either:
(A) a London Interbank Offered (“LIBO”) rate, subject to a floor of zero, plus 1.125 percent to 2 percent, based on the Company’s credit ratings by S&P or Moody’s; or
(B) the higher of (i)a prime rate, (ii)the federal funds effective rate plus 0.50 percent, or (iii)an adjusted LIBO rate plus 1.00 percent, plus, in each case, an additional 0.125 to 1 percent, based on the Company’s credit ratings by S&P or Moody’s.
The representations and warranties of the Company in the Amended and Restated Credit Agreement were made and will be repeated only for purposes of that agreement and as of specific dates provided therein and were and will be solely for the benefit of the lenders party thereto. The Amended and Restated Credit Agreement is a contractual document that establishes and governs the legal relations among the parties thereto and is not intended to be a source of factual, business, or operational information about the Company and its subsidiaries. The representations and warranties made by the Company in the Amended and Restated Credit Agreement may be subject to standards of materiality applicable to the contracting parties that differ from those applicable to investors. Accordingly, investors and security holders should not rely on such representations and warranties as characterizations of the actual state of facts or circumstances.
The foregoing description is a summary of the material terms of the Amended and Restated Credit Agreement and does not purport to be complete, and is qualified in its entirety by reference to the full context of the Amended and Restated Credit Agreement, a copy of which is filed as an exhibit to this Current Report on Form8-K and is incorporated herein by reference.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.
(d)Exhibits
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10.1 |
Amended and Restated Credit Agreement, dated February5, 2019, among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, Wells Fargo Bank, N.A., as syndication agent, the co-documentation agents party thereto, J.P. Morgan Chase Bank, N.A. and Wells Fargo Securities, LLC, as lead arrangers and bookrunners, and the lenders party thereto. |
CIMAREX ENERGY CO Exhibit
EX-10.1 2 a19-4159_1ex10d1.htm EX-10.1 Exhibit 10.1 AMENDED AND RESTATED CREDIT AGREEMENT dated as of February 5,…
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About CIMAREX ENERGY CO. (NYSE:XEC)
Cimarex Energy Co. is an independent oil and gas exploration and production company. The Company’s segment is exploration and production. Its operations are located mainly in Oklahoma, Texas and New Mexico. Its operations are focused in approximately two main areas, such as the Permian Basin and the Mid-Continent region. Its Permian Basin region includes west Texas and southeast New Mexico. Its Mid-Continent region consists of Oklahoma and the Texas Panhandle. Its Permian Basin efforts are located in the western half of the Permian Basin known as the Delaware Basin. It is focused on drilling horizontal wells that yielded oil and liquids-rich gas from the Wolfcamp shale, the Bone Spring formation and the Avalon shale. The Permian region produces approximately 542 million cubic feet equivalent per day. In the Mid-Continent region, it is focused in the Cana-Woodford shale and the Meramec horizon. The Mid-Continent region produces approximately 432 million cubic feet equivalent per day.