Resolute Energy Corporation (NYSE:REN) Files An 8-K Entry into a Material Definitive AgreementItem 1.01Entry into a Material Definitive Agreement
Second Amendment to Third Amended and Restated Credit Agreement
Effective October 18, 2017, Resolute Energy Corporation (the “Company”) and certain of its subsidiaries, as guarantors, entered into the Second Amendment to Third Amended and Restated Credit Agreement (the “Second Amendment”) amending that certain Third Amended and Restated Credit Agreement, dated as of February 17, 2017, with a syndicate of banks led by Bank of Montreal, as administrative agent, Capital One, National Association, as syndication agent, and Barclays Bank PLC, ING Capital LLC and SunTrust Bank, as co-documentation agents, as amended by the First Amendment to Third Amended and Restated Credit Agreement (the “First Amendment”) dated May8, 2017, (together, the “Credit Agreement”).
The Second Amendment provides for the fall borrowing base redetermination and amends certain other terms of the Credit Agreement.Among other things, the Second Amendment:
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Reaffirms our borrowing base under the Credit Agreement at $218.75 million. to the Second Amendment, upon the consummation of the disposition of the Aneth Field assets, our borrowing base will be automatically decreased to $210 million. |
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Provides that the borrowing base shall automatically be reduced by 25% of all unsecured indebtedness of the Company in excess of $550 million, increased from $500 million. |
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Amends the definition of EBITDA to include customary transaction costs and expenses incurred in connection with any material acquisition or disposition. |
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Provides for certain amendments to the calculation of EBITDA for purposes of the Credit Agreement and amends the covenant governing the ratio of current assets to current liabilities for the quarter ended September 30, 2017. |
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Amends the Credit Agreement to permit the Company to enter into certain derivative arrangements for up to the greater of 75% of our anticipated projected production from properties or 85% of our anticipated projected production from proved properties for the first year of such derivative arrangement. |
The foregoing summary of the Second Amendment is qualified in its entirety by reference to the copy of the Second Amendment attached hereto as Exhibit10.1 and incorporated herein by reference.A copy of the First Amendment is filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on May 9, 2017.The Third Amended and Restated Credit Agreement is filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K filed on February 21, 2017.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits
† Resolute agrees to furnish supplementally a copy of any omitted schedule, exhibit or similar attachment to the Securities and Exchange Commission upon request.
Resolute Energy Corp ExhibitEX-10.1 2 ren-ex101_6.htm EX-10.1 ren-ex101_6.htm Exhibit 10.1 Execution Version SECOND AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT Dated October 18,…To view the full exhibit click here
About Resolute Energy Corporation (NYSE:REN)
Resolute Energy Corporation is an independent oil and gas company. The Company is engaged in the exploitation, development, exploration for and acquisition of oil and gas properties. Its properties are Aneth Field located in the Paradox Basin in southeast Utah (the Aneth Field Properties or Aneth Field), and the Permian Basin in Texas and southeast New Mexico (the Permian Properties or Permian Basin Properties). It has an interest in gas gathering and compression facilities located within and adjacent to its Aneth Field Properties. Aneth Field is an oil field in southeast Utah, which produces approximately 6,290 equivalent barrels of oil per day. It owns working interests in the Aneth Unit, the McElmo Creek Unit and the Ratherford Unit. The Company has interests in approximately 27,750 gross (17,570 net) acres in the Permian Basin of Texas and southeast New Mexico. It covers over two project areas, including the Delaware Basin project area and the Northwest Shelf project area.
