CSI Compressco LP (NASDAQ:CCLP) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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CSI Compressco LP (NASDAQ:CCLP) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement.

Fifth Amendment to Credit Agreement

On May 5, 2017, CSI Compressco LP, a Delaware limited partnership
(the Partnership) and CSI Compressco Sub Inc., a Delaware
corporation and wholly-owned subsidiary of the Partnership (CSI
Compressco Sub), as borrowers, entered into the Fifth Amendment
to Credit Agreement (the Amendment) amending the Credit Agreement
dated August 4, 2014 (as previously amended by that certain First
Amendment to Credit Agreement dated as of December 18, 2014, that
certain Second Amendment to Credit Agreement dated as of April 1,
2015, that certain Third Amendment to Credit Agreement dated as
of May 25, 2016 and that certain Fourth Amendment to Credit
Agreement dated as of November 3, 2016, as so amended, the Credit
Agreement) with Bank of America, N.A., in its capacity as
administrative agent, collateral agent, lender, letter of credit
issuer and swing line issuer (Administrative Agent), and the
other lenders and loan parties a party thereto. Merrill Lynch,
Pierce, Fenner Smith Incorporated and JPMorgan Chase Bank, N.A.
were appointed as joint lead arrangers and joint bookrunners for
purposes of this Amendment

The Amendment modified certain financial covenants in the Credit
Agreement as follows:

(i)

the consolidated total leverage ratio may not exceed (a)
5.95 to 1 as of March 31, 2017; (b) 6.75 to 1 as of June
30, 2017 and September 30, 2017; (c) 6.50 to 1 as of
December 31, 2017 and March 31, 2018; (d) 6.25 to 1 as of
June 30, 2018 and September 30, 2018; (e) 6.00 to 1 as of
December 31, 2018; and (f) 5.75 to 1 as of March 31, 2019
and thereafter; and

(ii)

the consolidated secured leverage ratio may not exceed
3.25 to 1 as of the end of any fiscal quarter.

In addition, the Amendment (i) increased the applicable margin by
0.25% in the event the consolidated total leverage ratio exceeds
6.00 to 1, resulting in a range for the applicable margin between
2.00% and 3.50% per annum for LIBOR-based loans and 1.00% to
2.50% per annum for base-rate loans, according to the
consolidated total leverage ratio, and (ii) modified the
appraisal delivery requirement from an annual requirement to a
semi-annual requirement.As previously announced, the general
partner (General Partner) of the Partnership declared a cash
distribution attributable to the quarter ended March 31, 2017 of
$0.1875 per common unit.This distribution equates to a
distribution of $0.75 per outstanding common unit, on an
annualized basis, and represents a reduction of approximately 50%
from the previous distribution level.In connection with the
Amendment, the board of directors of the General Partner adopted
resolutions limiting the Partnerships cash distributions payable
on its common units to no more than $0.1875 per common unit for
the quarterly period ending June 30, 2017.The Amendment also
included additional revisions that provide flexibility to the
Partnership for the issuance of preferred securities.

The foregoing description of the Amendment does not purport to be
complete and is qualified in its entirety by reference to the
full text of the Amendment, which will be filed as an exhibit to
the Partnerships Quarterly Report on Form 10-Q for the quarter
ending June 30, 2017.

Item 2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

The information set forth in Item 1.01 of this Current Report on
Form 8-K is hereby incorporated by reference in this Item 2.03.


About CSI Compressco LP (NASDAQ:CCLP)

CSI Compressco LP, formerly Compressco Partners, L.P., is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing and storage. The Company sells custom-designed compressor packages and oilfield fluid pump systems, and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. It provides these compression services and equipment to a base of natural gas and oil exploration and production, midstream and transmission companies operating throughout many of the onshore producing regions of the United States, as well as in a number of foreign countries, including Mexico, Canada and Argentina. It is a service provider of natural gas compression services in the United States, utilizing its fleet of compressor packages that employs a spectrum of low-, medium- and high-horsepower engines.

CSI Compressco LP (NASDAQ:CCLP) Recent Trading Information

CSI Compressco LP (NASDAQ:CCLP) closed its last trading session down -0.18 at 6.82 with 125,056 shares trading hands.