SANCHEZ ENERGY CORPORATION (OTCMKTS:SCAZP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01.Entry into a Material Definitive Agreement.
On December 9, 2016, Royal Bank of Canada, as administrative agent (the “Administrative Agent”) under the Second Amended and Restated Credit Agreement, dated as of June 30, 2014, among Sanchez Energy Corporation, as borrower (“Sanchez”), the Administrative Agent and the other parties thereto (as amended, the “Credit Agreement”), entered into a letter agreement with Sanchez (the “Agreement”) to which, in connection with the fall 2016 redetermination of Sanchez’s borrowing base under the Credit Agreement, the Administrative Agent confirmed that the requisite lenders under the Credit Agreement have agreed to maintain Sanchez’s existing $350 million borrowing base so long as Sanchez does not increase its existing $300 million elected commitment amount under the Credit Agreement until the spring 2017 borrowing base redetermination. The Agreement also provides that Sanchez’s borrowing base will be automatically reduced to $300 million if the Administrative Agent notifies Sanchez of such reduction prior to the spring 2017 borrowing base redetermination.
From time to time, the agents, arrangers, book runners and lenders under the Credit Agreement and their affiliates have provided, and may provide in the future, investment banking, commercial lending, hedging and financial advisory services to Sanchez and its affiliates in the ordinary course of business, for which they have received, or may in the future receive, customary fees and commissions for these transactions.
