SANCHEZ ENERGY CORPORATION (OTCMKTS:SNZYP) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry into a Material Definitive Agreement.
On May11, 2018, SN EF UnSub, LP, an unrestricted, non-guarantor subsidiary of Sanchez Energy Corporation (the “Company”) for purposes of the agreements governing the Company’s indebtedness (“SN UnSub”), as borrower, JPMorgan Chase Bank, N.A., as administrative agent, and the lenders party thereto entered into a First Amendment (the “Amendment”) to the First Lien Credit Agreement, dated as of March1, 2017 (as amended or supplemented to date, the “UnSub Credit Agreement”). The Amendment, among other things:
· reduced the restrictions on SN UnSub’s ability to make certain investments, restricted payments and debt repayments by increasing the net total debt to consolidated EBTIDAX ratio incurrence test level from 2.75:1.00 to 3.00:1.00; and
· amended the maximum hedging covenant to permit SN UnSub to measure its maximum hedging coverage based on SN UnSub’s reasonably anticipated projected production as forecast under SN UnSub’s reasonable and justifiable internal projections from the date of measurement until the conclusion of such calendar year and for the subsequent three calendar years.
From time to time, the agents, arrangers, book runners and lenders under the SN UnSub Credit Agreement and their affiliates have provided, and may provide in the future, investment banking, commercial lending, hedging and financial advisory services to SN UnSub 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.
This summary of the Amendment does not purport to be complete, and is qualified in its entirety by reference to the Amendment, which is filed as Exhibit10.1 to this Current Report on Form8-K and is incorporated by reference into this Item 1.01 by reference.
On May14, 2018, the Company announced that it had entered into the Amendment described in this Item 1.01 of this Current Report on Form8-K. A copy of the press release is filed as Exhibit99.1 to this Current Report on Form8-K and is incorporated into this Item 1.01 by reference.