FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

Contract Categories: Business Finance - Credit Agreements
EX-10.2 3 a08-5832_1ex10d2.htm EX-10.2

Exhibit 10.2

FIRST AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (hereinafter referred to as the “Amendment”) dated as of February 20, 2008, by and among EXCO RESOURCES, INC. (“Borrower”), CERTAIN SUBSIDIARIES OF BORROWER, as Guarantors (the “Guarantors”), the LENDERS party hereto (the “Lenders”), and JPMORGAN CHASE BANK, N.A., as Administrative Agent (“Administrative Agent”).  Unless the context otherwise requires or unless otherwise expressly defined herein, capitalized terms used but not defined in this Amendment have the meanings assigned to such terms in the Credit Agreement (as defined below).

 

WITNESSETH:

 

WHEREAS, Borrower, Guarantors, Administrative Agent and Lenders have entered into that certain Second Amended and Restated Credit Agreement dated as of May 2, 2007 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, in connection with (i) the acquisition by EXCO Appalachia, Inc. (“EXCO Appalachia”) of certain oil and gas properties pursuant to that certain Asset Purchase Agreement, dated as of December 7, 2007 (the “Purchase Agreement”), among certain Persons, as sellers, and EXCO Appalachia, as buyer (the “Appalachia Purchase”) and (ii) the merger of EXCO Appalachia with and into North Coast Energy, Inc. (“North Coast”), Borrower has requested that (x) the Administrative Agent and the Lenders amend the Credit Agreement to increase the Maximum Facility Amount and (y) the Lenders increase the Borrowing Base;

 

NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, Borrower, Guarantors, Administrative Agent and the Lenders hereby agree as follows:

 

SECTION 1.  Amendments to Credit Agreement.  Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 3 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Amendment, the Credit Agreement shall be amended in the manner provided in this Section 1.

 

1.1          Amended DefinitionsSection 1.01 of the Credit Agreement shall be and it hereby is amended by amending and restating the following definitions to read in its entirety as follows:

 

Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

 

Maximum Facility Amount” means $1,175,000,000.

 

1.2          Redetermined Borrowing Base.  This Amendment shall constitute a notice of the redetermination of the Borrowing Base pursuant to Section 3.04 of the Credit Agreement and

 

 

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Administrative Agent hereby notifies Borrower that, as of the effective date of this Amendment, the Borrowing Base as of such date and until but not including the next Redetermination Date, is $1,200,000,000.

 

1.3          Notices.  Subclause (ii) of Section 11.01(a) shall be and it hereby is amended in its entirety to read as follows:

 

(ii)          if to the Administrative Agent or Issuing Bank, to JPMorgan Chase Bank, N.A., JPMorgan Loan Services, 21 South Clark St., 19th Floor, Chicago, Illinois 60603-2003, Telecopy No.: (312) 385-7096, Attention: Claudia Kech, with a copy to JPMorgan Chase Bank, N.A., 2200 Ross Avenue, 3rd Floor, TX1-2448, Dallas, Texas 75201, Telecopy No.  ###-###-####, Attention:  Wm. Mark Cranmer, Senior Vice President;

 

1.4          Amendment to Schedule 2.01Schedule 2.01 to the Credit Agreement shall be and it hereby is amended in its entirety by substituting Schedule 2.01 attached hereto.

 

SECTION 2.  New Lenders and Reallocation of Commitments and Loans.  The Lenders have agreed among themselves to reallocate their respective Commitments and to, among other things, allow certain financial institutions identified by J.P. Morgan Securities, Inc., in its capacity as Lead Arranger, in consultation with the Borrower, to become a party to the Credit Agreement as a Lender (each, a “New Lender”) by acquiring an interest in the Aggregate Commitment, and Administrative Agent and the Borrower hereby consent to such reallocation and each New Lender’s acquisition of an interest in the Aggregate Commitment.  On the date this Amendment becomes effective and after giving effect to such reallocation of the Aggregate Commitment, the Commitment of each Lender shall be as set forth on Schedule 2.01 of this Amendment.  With respect to such reallocation, each New Lender shall be deemed to have acquired the Commitment allocated to it from each of the other Lenders pursuant to the terms of the Assignment and Assumption attached as Exhibit A to the Credit Agreement as if such New Lender and the other Lenders had executed an Assignment and Assumption with respect to such allocation.  The Borrower and Administrative Agent hereby consent to such assignment to the New Lenders.

 

SECTION 3.  Conditions.  The amendments to the Credit Agreement contained in Section 1 of this Amendment, including the redetermination of the Borrowing Base as set forth in Section 1.2 of this Amendment and the assignments and reallocations contained in Section 2 of this Amendment shall be effective upon the satisfaction of each of the conditions set forth in this Section 3.

 

3.1          Execution and Delivery.  Each Credit Party, each Lender and the Administrative Agent shall have executed and delivered this Amendment.

 

3.2          Consummation of Asset Purchase.  EXCO Appalachia shall have consummated the Appalachia Purchase in accordance with the Purchase Agreement without waiver or amendment of any material term thereof not otherwise consented to by the Administrative Agent.

 

3.3          North Coast Merger.  The Borrower shall have delivered to the Administrative Agent evidence reasonably satisfactory to the Administrative Agent that promptly following the consummation of the Appalachia Purchase, and in any event within two (2) Business Days

 

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thereafter, EXCO Appalachia will merge with and into North Coast and North Coast, as the surviving entity of such merger, will comply with the requirements of Sections 6.09 and 6.10 of the Credit Agreement.

 

3.4          No Default.  No Default shall have occurred and be continuing.

 

3.5          Fees.  The Borrower shall have paid to the Administrative Agent for the benefit of the Lenders, an upfront fee in an amount equal to (i) 0.20% on the actual allocation of the increase in the Aggregate Commitment allocated to any Lender, including any New Lender, that committed to less than $40,000,000 of such increase in the Aggregate Commitment, plus (ii) 0.35% on the actual allocation of the increase in the Aggregate Commitment allocated to any Lender, including any New Lender, that committed to $40,000,000 or more of such increase in the Aggregate Commitment, in each case with respect to each of the foregoing clauses (i) and (ii), respectively, to be shared pro rata among the Lenders based on their respective increases in the Commitment.

 

3.6          Other Documents.  The Administrative Agent shall have received such other instruments and documents incidental and appropriate to the transaction provided for herein as the Administrative Agent or its special counsel may reasonably request, and all such documents shall be in form and substance satisfactory to the Administrative Agent.

 

SECTION 4.  Representations and Warranties of Borrower.  To induce the Lenders to enter into this Amendment, each Credit Party hereby represents and warrants to the Lenders as follows:

 

4.1          Reaffirmation of Representations and Warranties/Further Assurances.  After giving effect to the amendments herein, each representation and warranty of such Credit Party contained in the Credit Agreement or in any other Loan Document is true and correct in all material respects on the date hereof (except to the extent such representations and warranties relate solely to an earlier date).

 

4.2          Corporate Authority; No Conflicts.  The execution, delivery and performance by such Credit Party of this Amendment and all documents, instruments and agreements contemplated herein are within such Credit Party’s corporate or other organizational powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any court or agency of government and do not violate or constitute a default under any provision of any applicable law or other agreements binding upon such Credit Party or result in the creation or imposition of any Lien upon any of the assets of such Credit Party except for Liens permitted under Section 7.02 of the Credit Agreement.

 

4.3          Enforceability.  This Amendment constitutes the valid and binding obligation of such Credit Party enforceable in accordance with its terms, except as (i) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (ii) the availability of equitable remedies may be limited by equitable principles of general application.

 

SECTION 5.  Miscellaneous.

 

 

 

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5.1          Reaffirmation of Loan Documents and Liens.  Any and all of the terms and provisions of the Credit Agreement and the Loan Documents shall, except as amended and modified hereby, remain in full force and effect.  Each Credit Party hereby agrees that the amendments and modifications herein contained shall in no manner affect or impair the liabilities, duties and obligations of any Credit Party under the Credit Agreement and the other Loan Documents or the Liens securing the payment and performance thereof.

 

5.2          Parties in Interest.  All of the terms and provisions of this Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

 

5.3          Legal Expenses.  Each Credit Party hereby agrees to pay all reasonable fees and expenses of special counsel to the Administrative Agent incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and all related documents.

 

5.4          Counterparts.  This Amendment may be executed in one or more counterparts and by different parties hereto in separate counterparts each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.  However, this Amendment shall bind no party until each Credit Party, the Lenders (or at least the required percentage thereof), and the Administrative Agent have executed a counterpart.  Delivery of photocopies of the signature pages to this Amendment by facsimile or electronic mail shall be effective as delivery of manually executed counterparts of this Amendment.

 

5.5          Complete Agreement.  THIS AMENDMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

5.6          Headings.  The headings, captions and arrangements used in this Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Amendment, nor affect the meaning thereof.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties have caused this First Amendment to Second Amended and Restated Credit Agreement to be duly executed as of the date first above written.

 

 

BORROWER:

 

 

 

EXCO RESOURCES, INC.

 

 

 

By:

/s/ J. Douglas Ramsey

 

Name:  J. Douglas Ramsey, Ph.D.

 

Title:  Vice President and Chief Financial Officer

 

 

 

Address for Notices:

 

 

 

EXCO Resources, Inc.

 

12377 Merit Drive, Suite 1700

 

Dallas, Texas 75251

 

Facsimile No.  ###-###-####

 

Attn:

Douglas H. Miller

 

 

Chief Executive Officer

 

 

 

and

 

 

 

Attn:

J. Douglas Ramsey

 

 

Chief Financial Officer

 

 

 

 

 

GUARANTORS:

 

 

 

 

 

NORTH COAST ENERGY, INC.

 

NORTH COAST ENERGY EASTERN, INC.

 

POWER GAS MARKETING & TRANSMISSION, INC.

 

EXCO SERVICES, INC.

 

 

 

By:

/s/ J. Douglas Ramsey

 

Name:  J. Douglas Ramsey, Ph.D.

 

Title:

Vice President and Chief Financial Officer

 

 

for each of the Credit Parties listed above

 

 



 

 

 

 

JPMORGAN CHASE BANK, N.A.,
as a Lender and as Administrative Agent,

 

 

 

 

 

 

 

 

 

 

By:

/s/ Wm. Mark Cranmer

 

 

Name:

Wm. Mark Cranmer

 

 

Title:

Senior Vice President

 

 



 

 

 

UBS LOAN FINANCE LLC
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ David B. Julie

 

 

Name:

David B. Julie

 

 

Title:

Associate Director

 

 

 

Banking Products Services, US

 

 

 

 

 

 

By:

/s/ Iga H. Disa

 

 

Name:

Iga H. Disa

 

 

Title:

Associate Director

Banking Products Services, US

 

 



 

 

 

 

TORONTO DOMINION (TEXAS) LLC
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Ian Murray

 

 

Name:

Ian Murray

 

 

Title:

Authorized Signatory

 

 



 

 

 

CREDIT SUISSE, CAYMAN ISLANDS BRANCH
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Vanessa Gomez

 

 

Name:

Vanessa Gomez

 

 

Title:

Director

 

 

 

 

 

 

 

 

 

 

By:

/s/ Morenikeji Ajayi

 

 

Name:

Morenikeji Ajayi

 

 

Title:

Associate

 

 



 

 

 

 

LEHMAN BROTHERS COMMERCIAL BANK
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ George Janes

 

 

Name:

George Janes

 

 

Title:

Chief Credit Officer

 

 



 

 

 

BNP PARIBAS
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ David Dodd

 

 

Name:

David Dodd

 

 

Title:

Managing Director

 

 

 

 

 

 

 

 

 

 

By:

/s/ Richard Hawthorne

 

 

Name:

Richard Hawthorne

 

 

Title:

Vice President

 

 



 

 

 

 

KEYBANK N.A.

as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Keven D. Smith

 

 

Name:

Keven D. Smith

 

 

Title:

Senior Vice President

 

 



 

 

 

 

MORGAN STANLEY SENIOR FUNDING, INC.
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Daniel Twenge

 

 

Name:

Daniel Twenge

 

 

Title:

Vice President

 

 



 

 

 

 

NATIXIS
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Donovan C. Broussard

 

 

Name:

Donovan C. Broussard

 

 

Title:

Managing Director

 

 

 

 

 

 

 

 

 

 

By:

/s/ Liana Tchernysheva

 

 

Name:

Liana Tchernysheva

 

 

Title:

Director

 

 



 

 

 

 

ROYAL BANK OF CANADA
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Don J. McKinnerney

 

 

Name:

Don J. McKinnerney

 

 

Title:

Authorized Signatory

 

 



 

 

 

 

THE ROYAL BANK OF SCOTLAND PLC
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Mark Lumpkin, Jr

 

 

Name:

Mark Lumpkin, Jr

 

 

Title:

Vice President

 

 



 

 

 

 

SOCIETE GENERALE
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Elena Robcine

 

 

Name:

Elena Robcine

 

 

Title:

Director

 

 



 

 

 

STERLING BANK
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Jeff A. Forbis

 

 

Name:

Jeff A. Forbis

 

 

Title:

Sterling Bank

 

 



 

 

 

SUNTRUST BANK
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ James M. Warren

 

 

Name:

James M. Warren

 

 

Title:

Managing Director

 

 



 

 

 

 

UNION BANK OF CALIFORNIA, N.A.
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Doug Gale

 

 

Name:

Doug Gale

 

 

Title:

Vice President

 

 



 

 

 

 

SCOTIABANC, INC.
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ R. Blackwood

 

 

Name:

R. Blackwood

 

 

Title:

Director

 

 



 

 

 

 

WACHOVIA BANK NATIONAL ASSOCIATION
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Paul Pritchett

 

 

Name:

Paul Pritchett

 

 

Title:

Vice President

 

 



 

 

 

 

WELLS FARGO BANK, N.A.
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Jason Hicks

 

 

Name:

Jason Hicks

 

 

Title:

Assistant Vice President

 

 



 

 

 

 

WESTLB AG, NEW YORK BRANCH
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Dominick D’Ascoli

 

 

Name:

Dominick D’Ascoli

 

 

Title:

Director

 

 

 

 

 

 

 

 

 

 

By:

/s/ Martin C. Livingston

 

 

Name:

Martin C. Livingston

 

 

Title:

Exective Director

 

 



 

 

 

 

BMO CAPITAL MARKETS FINANCING, INC.
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ James V. Ducote

 

 

Name:

James V. Ducote

 

 

Title:

Director

 

 



 

 

 

BANK OF SCOTLAND PLC
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Karen Welch

 

 

Name:

Karen Welch

 

 

Title:

Vice President

 

 



 

 

 

 

CITIBANK, N.A.
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Ryan Watson

 

 

Name:

Ryan Watson

 

 

Title:

Vice President

 

 



 

 

 

 

ALLIED IRISH BANKS, P.L.C.

as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Vaughn Buck

 

 

Name:

Vaughn Buck

 

 

Title:

Director

 

 

 

 

 

 

 

 

 

 

By:

/s/ Robert F. Moyle

 

 

Name:

Robert F. Moyle

 

 

Title:

Senior Vice President

 

 



 

 

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Erin Morrissey

 

 

Name:

Erin Morrissey

 

 

Title:

Vice President

 

 

 

 

 

 

 

 

 

 

By:

/s/ Susan LaFavre

 

 

Name:

Susan LaFavre

 

 

Title:

Director

 

 



 

 

 

 

CALYON NEW YORK BRANCH
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Tom Byargeon

 

 

Name:

Tom Byargeon

 

 

Title:

Managing Director

 

 

 

 

 

 

 

 

 

 

By:

/s/ Sharada Manne

 

 

Name:

Sharada Manne

 

 

Title:

Vice President

 

 



 

 

 

 

U.S. BANK NATIONAL ASSOCIATION
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Daria Mahoney

 

 

Name:

Daria Mahoney

 

 

Title:

Vice President

 

 



 

 

 

 

COMERICA BANK
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Peter L. Sefzik

 

 

Name:

Peter L. Sefzik

 

 

Title:

Vice President

 

 



 

 

 

 

FORTIS CAPITAL CORP.

as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Michele Jones

 

 

Name:

Michele Jones

 

 

Title:

Director

 

 

 

 

 

 

 

 

 

 

By:

/s/ Darrell Holley

 

 

Name:

Darrell Holley

 

 

Title:

Director

 

 



 

 

 

 

BANK OF AMERICA
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Jeffrey H. Rathkamp

 

 

Name:

Jeffrey H. Rathkamp

 

 

Title:

Managing Director

 

 



 

 

 

 

SUMITOMO MITSUI BANKING CORPORATION
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Masakaza Hasegawa

 

 

Name:

Masakaza Hasegawa

 

 

Title:

Joint General Manager

 

 



 

 

 

 

GOLDMAN SACHS CREDIT PARTNERS, L.P.
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Jaime Weisfelner

 

 

Name:

Jaime Weisfelner

 

 

Title:

Authorized Signatory

 

 

 

By:

/s/ Stephen Scheer

 

 

Name:

Stephen Scheer

 

 

Title:

Authorized Signatory

 



 

 

 

 

MORGAN STANLEY BANK
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Daniel Twenge

 

 

Name:

Daniel Twenge

 

 

Title:

Authorized Signatory

 

 



 

 

 

 

THE BANK OF NOVA SCOTIA
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ David Mills

 

 

Name:

David Mills

 

 

Title:

Director

 

 



 

 

 

 

COMPASS BANK
as a Lender

 

 

 

 

 

 

 

 

 

 

By:

/s/ Dorothy Marchand

 

 

Name:

Dorothy Marchand

 

 

Title:

Senior Vice President