Vanguard Natural Resources, Inc. (OTCMKTS: VNRR) Files An 8-K Entry into a Material Definitive AgreementItem 1.01. Entry Into A Material Definitive Agreement.
On December 6, 2018, Vanguard Natural Resources, Inc., a Delaware corporation (the “Company”), entered into the Third Amendment (the “Third Amendment”) to the Fourth Amended and Restated Credit Agreement, dated as of August 1, 2017 (as amended from time to time, the “Credit Agreement”), among the Company, Vanguard Natural Gas, LLC (the “Borrower”), Citibank N.A., as Administrative Agent and the lenders party thereto (the “Lenders”).
The Third Amendment makes certain modifications to the Credit Agreement to allow the Company additional flexibility to pursue and consummate sales of certain of its oil and natural gas properties.
Additionally, to a scheduled redetermination, and in connection with recent asset sales, the Company’s borrowing base under the Credit Agreement has been decreased to $682,385,000. As of December 7, 2018, the Company had $662.3 million of outstanding borrowings under the Credit Agreement and approximately $21 million of liquidity.
In addition, the Company continues to investigate refinancing alternatives, and may, from time to time, explore or pursue opportunities to reorganize or refinance its capital structure. Such capital raising efforts and refinancing opportunities are subject to numerous risks, many of which are outside of the Company’s control, including those related to the general condition in the capital and credit markets and the desirability of investments in companies in the energy sector, as well as commodity prices relative to historic levels. If the Company determines to pursue such opportunities, there can be no assurance that the Company will be successful in accessing the capital or credit markets or in consummating a financing transaction on acceptable terms, or at all.
Additionally, as it has previously disclosed, the Company continues to pursue efforts to divest additional oil and natural gas properties to use proceeds to reduce indebtedness under the Credit Agreement. The Company is in the process of publicly marketing certain oil and natural gas properties, including, among others, properties and assets in East Texas and North Louisiana, which properties include operated and non-operated working interests, with current production of approximately 2,500 Boe per day, and associated development rights (collectively, the “Greater Haynesville Assets”). The Company has not yet entered into a purchase agreement or letter of intent with any prospective purchaser(s), and there is no guarantee that the Company will be able to consummate the disposition of the Greater Haynesville Assets or any other assets on favorable terms, or at all. Various factors could materially affect the Company’s ability to complete planned asset divestitures, including, among others, the approvals of governmental agencies or third parties and the availability of purchasers willing to acquire the assets on terms the Company deems acceptable.
The foregoing description of the Third Amendment does not purport to be complete and is qualified in its entirety by reference to the complete document, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated into this Item 1.01 by reference.
Item 9.01. Exhibits.
(d) Exhibits.
Vanguard Natural Resources, Inc. ExhibitEX-10.1 2 ex101thirdamendmenttofourt.htm EXHIBIT 10.1 Exhibit Exhibit 10.1THIRD AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENTTHIS THIRD AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (the “Third Amendment to Credit Agreement,…To view the full exhibit click here
