Jones Energy,Inc. (NYSE:JONE) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry Into a Material Definitive Agreement.
On November26, 2017, Jones Energy Holdings, LLC (“JEH”), a subsidiary of Jones Energy,Inc. (the “Company”), entered into an amendment (the “Amendment”) to the Credit Agreement dated as of December31, 2009 among JEH, Wells Fargo Bank, N.A., as administrative agent, and the lenders signatory thereto (as amended, the “Credit Agreement”). Among other things, the Amendment:
· Permits JEH to raise up to $350 million of second lien debt, subject to covenant compliance and other customary conditions; and
· Increases the Company’s hedge limits to permit, at any time, hedging of up to (i)50% of projected production from proved reserves over the period of 24 months following such time and (ii)85% of projected production from proved reserves for the subsequent period of 36 months thereafter.
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, a copy of which is filed with this Current Report on Form8-K as Exhibit10.1 and is incorporated by reference herein.