Lonestar Resources US Inc. (NASDAQ:LONE) Files An 8-K Entry into a Material Definitive Agreement

Lonestar Resources US Inc. (NASDAQ:LONE) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement

Effective as of June 11, 2020, Lonestar Resources America, Inc. (“LRAI”), a subsidiary of Lonestar Resources US Inc. (the “Company”), entered into the Waiver and Thirteenth Amendment to Credit Agreement (the “Amendment”), among itself, the subsidiary guarantors party thereto, the several banks and other financial institutions party thereto and Citibank, N.A., in its capacity as administrative agent for the lenders (the “Administrative Agent”) to that certain Credit Agreement dated as of July 28, 2015 (as amended by the Amendment and as otherwise amended or modified from time to time prior to the Amendment, the “Credit Agreement”), by and among LRAI, the several banks and other financial institutions party thereto from time to time and the Administrative Agent to (a) waive any default or event of default arising from the Company\’s failure to provide quarterly financial statements for the fiscal quarter ended March 31, 2020 within 45 days after the end of such fiscal quarter; (b) decrease the borrowing base from $290 million to $286 million, until redetermined in accordance with the Amendment; (c) set the next borrowing base redetermination to take place on or around July, 1, 2020 (and in any event, no later than July 31, 2020); (d) amend the borrowing base utilization grid used in the applicable margin so that borrowings under the Credit Agreement bear interest, at the Company’s election, at either an alternate base rate plus an applicable margin ranging from 2.0% to 3.5% or the adjusted LIBO rate plus an applicable margin ranging from 3.0% to 4.5%, (e) until the July 1, 2020 redetermination, restrict the Company and its Subsidiaries’ ability to incur debt with respect to, among other items, capital leases and permitted senior debt, grant liens to secure other obligations, pay dividends on LRAI’s preferred stock and make certain investments and (f) amend certain other provisions of the Credit Agreement as more specifically set forth in the Amendment.
As of April 30, 2020, approximately $267.0 million was borrowed under the Credit Agreement and $0.4 million of letters of credit are outstanding.
The foregoing description of the Amendment is qualified in its entirety by reference to the Amendment, a copy of which is attached hereto as Exhibit 10.1 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
The information set forth under “Item 1.01. Entry into a Material Definitive Agreement” is incorporated into this Item 2.03 by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Lonestar Resources US Inc. Exhibit
EX-10.1 2 exhibit101waiverandthirtee.htm EXHIBIT 10.1 Exhibit Exhibit 10.1WAIVER AND THIRTEENTH AMENDMENT TO CREDIT AGREEMENT THIS WAIVER AND THIRTEENTH AMENDMENT TO CREDIT AGREEMENT (this “Agreement”) is entered into as of June 11,…
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