VIPER ENERGY PARTNERS LP (NASDAQ:VNOM) Files An 8-K Entry into a Material Definitive AgreementItem 9.01. Entry into a Material Definitive Agreement.
On November 28, 2017, Viper Energy Partners LP, as borrower (“Viper”), and Viper Energy Partners LLC, as guarantor, entered into a fifth amendment (the “Fifth Amendment”) to the Credit Agreement, dated as of July 8, 2014, with Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto (as amended, supplemented or otherwise modified to the date thereof, and as further amended by the Fifth Amendment, the “Credit Agreement”).
The Fifth Amendment extended the maturity date to November 1, 2022, and decreased the interest rates applicable to loans under the Credit Agreement. After giving effect to the Fifth Amendment, outstanding borrowings under the Credit Agreement bear interest at a per annum rate elected by Viper that is equal to an alternate base rate or LIBOR, in each case plus the applicable margin. The applicable margin ranges from 0.75% to 1.75% per annum in the case of the alternate base rate, and from 1.75% to 2.75% per annum in the case of LIBOR. The applicable margin depends on the amount of the loan outstanding in relation to the commitment, which is defined as the lesser of the maximum credit amount and the borrowing base. In the Fifth Amendment, the aggregate maximum credit amount was increased to $2.0 billion and the borrowing base was increased to $400 million.
In addition, the Fifth Amendment, among other things, (i) increased the mortgage requirement to 85% of the total value of the oil and gas properties evaluated in the most recent reserve report, (ii) revised the calculation of the total debt to EBITDAX financial covenant to allow the netting of unrestricted cash in the calculation of total debt under certain circumstances, and (iii) amended certain negative covenants.
The preceding summary of the Fifth Amendment is qualified in its entirety by reference to the full text of such amendment, a copy of which is attached as Exhibit 10.1 to this Current Report on Form 8-K and incorporated herein by reference.
Item 9.01. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 9.01 above is incorporated herein by reference.
Item 9.01.Financial Statements and Exhibits.
Exhibits
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Number |
Exhibit |
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10.1 |
Fifth Amendment to the Credit Agreement, dated as of November 28, 2017, by and among Viper Energy Partners LP, as borrower, Viper Energy Partners LLC, as guarantor, Wells Fargo Bank, National Association, as administrative agent, and the lenders party thereto.
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Viper Energy Partners LP ExhibitEX-10.1 2 viperex101-12x4x17.htm EXHIBIT 10.1 Exhibit Exhibit 10.1FIFTH AMENDMENTTOCREDIT AGREEMENTDATED AS OF NOVEMBER 28,…To view the full exhibit click here
About VIPER ENERGY PARTNERS LP (NASDAQ:VNOM)
Viper Energy Partners LP is a limited partnership that owns, acquires and exploits oil and natural gas properties in North America. The Company’s business objective is to provide an attractive return to its unitholders by focusing on business results, maximizing distributions through organic growth and pursuing accretive growth opportunities through acquisitions of mineral, royalty, overriding royalty, net profits and similar interests from Diamondback Energy, Inc. and from third parties. Its segment is engaged in the acquisition of oil and natural gas properties. Its assets consist of mineral interests in oil and natural gas properties in the Permian Basin in West Texas, all of which are leased to working interest owners. The Permian Basin, which consists of approximately 85,000 square miles centered on Midland, Texas, has been the source of oil production. Its assets consisted of mineral interests underlying approximately 46,560 gross (17,060 net) acres in the Permian Basin.