Sixth Amendment to Third Amended and Restated Credit Agreement among Legacy Reserves LP, as Borrower, The Guarantors, Wells Fargo Bank, National Association, as Administrative Agent, and The Lenders Signatory Hereto Dated as of November 13, 2015 Sole Lead Arranger and Sole Book Runner Wells Fargo Securities, LLC Syndication Agent Compass Bank Co-Documentation Agents UBS Securities LLC and U.S. Bank National Association Sixth Amendment to Third Amended and Restated Credit Agreement

Contract Categories: Business Finance - Credit Agreements
EX-10.14 2 lgcy12312015ex1014.htm SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT Exhibit
Exhibit 10.14


Sixth Amendment
to
Third Amended and Restated Credit Agreement
among
Legacy Reserves LP,
as Borrower,
The Guarantors,
                        
Wells Fargo Bank, National Association,
as Administrative Agent,
and
The Lenders Signatory Hereto
Dated as of November 13, 2015
Sole Lead Arranger and Sole Book Runner
Wells Fargo Securities, LLC

Syndication Agent
Compass Bank

Co-Documentation Agents
UBS Securities LLC
and
U.S. Bank National Association





Sixth Amendment to
Third Amended and Restated Credit Agreement
This Sixth Amendment to Third Amended and Restated Credit Agreement (this “Sixth Amendment”) dated as of November 13, 2015, among Legacy Reserves LP, a limited partnership duly formed under the laws of the State of Delaware (the “Borrower”); each of the undersigned guarantors (the “Guarantors”, and together with the Borrower, the “Obligors”); Wells Fargo Bank, National Association, as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”); and the Lenders signatory hereto.
Recitals
A.    The Borrower, the Administrative Agent and the Lenders are parties to that certain Third Amended and Restated Credit Agreement dated as of April 1, 2014 (as amended by the First Amendment to Third Amended and Restated Credit Agreement dated as of April 17, 2014, that certain Second Amendment to Third Amended and Restated Credit Agreement dated as of May 22, 2014, that certain Third Amendment to Third Amended and Restated Credit Agreement dated as of December 29, 2014, that certain Fourth Amendment to Third Amended and Restated Credit Agreement dated as of February 23, 2015 and that certain Fifth Amendment to Third Amended and Restated Credit Agreement dated as of August 5, 2015, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.
B.    The Guarantors are parties to that certain Third Amended and Restated Guaranty Agreement dated as of April 1, 2014 made by each of the Guarantors (as defined therein) in favor of the Administrative Agent (the “Guaranty”).
C.    The Borrower, the Guarantors, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement as more fully set forth herein.
NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.    Defined Terms. Each capitalized term which is defined in the Credit Agreement, but which is not defined in this Sixth Amendment, shall have the meaning ascribed such term in the Credit Agreement. Unless otherwise indicated, all section references in this Sixth Amendment refer to sections of the Credit Agreement.
Section 2.    Amendments to Credit Agreement.

2.1    Amendments to Section 1.02.    

(a)    The following definition is hereby amended and restated in their entirety to read as follows:


Page 1



Agreement” means this Third Amended and Restated Credit Agreement, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment and the Sixth Amendment, as the same may from time to time be amended, modified, supplemented or restated.

(b)    The following definition is hereby added where alphabetically appropriate to read as follows:
Sixth Amendment” means that certain Sixth Amendment to Third Amended and Restated Credit Agreement, dated as of November 13, 2015, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.

2.2     Amendment to Section 8.14(a). Section 8.14(a) is hereby amended by deleting each reference to “80%” therein and replacing each such reference with “85%.”

Section 3.    Conditions Precedent. This Sixth Amendment shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 12.02 of the Credit Agreement) (the “Sixth Amendment Effective Date”):

3.1    The Administrative Agent shall have received from the Lenders, the Borrower and the Guarantors, counterparts (in such number as may be requested by the Administrative Agent) of this Sixth Amendment signed on behalf of such Person.
3.2    The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the Sixth Amendment Effective Date (including fees and expenses invoiced by Paul Hastings LLP prior to the Sixth Amendment Effective Date).
3.3    The Administrative Agent shall have received, together with title information previously delivered to the Administrative Agent satisfactory title information on at least 80% of the total value of the Oil and Gas Properties of the Borrower and the Subsidiaries evaluated in the most recently delivered Reserve Report.
3.4    The Administrative Agent shall have received duly executed and notarized deeds of trust/mortgages or supplements to existing deeds of trust/mortgages in form satisfactory to the Administrative Agent, to the extent necessary so that the Mortgaged Properties represent at least 85% of the total value of the Oil and Gas Properties of the Borrower and the Subsidiaries evaluated in the most recently delivered Reserve Report.
3.5    No Default shall have occurred and be continuing as of the Sixth Amendment Effective Date.
3.6    The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require.
The Administrative Agent is hereby authorized and directed to declare this Sixth Amendment to be effective when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3 or the waiver of such conditions as permitted in Section 12.02 of the Credit

Page 2



Agreement. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.
Section 4. Miscellaneous.
4.1    Confirmation.  The provisions of the Credit Agreement, as amended by this Sixth Amendment, shall remain in full force and effect following the effectiveness of this Sixth Amendment.
4.2    Ratification and Affirmation; Representations and Warranties.  Each Obligor hereby (a) acknowledges the terms of this Sixth Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect as expressly amended hereby; (c) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Sixth Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct, except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct as of such specified earlier date, (ii) no Default or Event of Default has occurred and is continuing and (iii) no event or events have occurred which individually or in the aggregate could reasonably be expected to have a Material Adverse Effect; and (d) agrees that from and after the Sixth Amendment Effective Date each reference to the Credit Agreement and in the other Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this Sixth Amendment.
4.3    Counterparts.  This Sixth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of this Sixth Amendment by telecopy, facsimile, email or other electronic means shall be effective as delivery of a manually executed counterpart hereof.
4.4    No Oral Agreement.  This Sixth Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties. There are no subsequent oral agreements between the parties.
4.5    GOVERNING LAW.  THIS SIXTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.
4.6    Payment of Expenses.  In accordance with Section 12.03 of the Credit Agreement, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this Sixth Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
4.7    Severability.  Any provision of this Sixth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such

Page 3



prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
4.8    Successors and Assigns.  This Sixth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.
[SIGNATURES BEGIN NEXT PAGE]

Page 4



IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed as of the date first written above.
BORROWER:
LEGACY RESERVES LP
 
 
 
 
 
 
 
 
By:
Legacy Reserves GP, LLC
 
 
 
 
its general partner
 
 
 
 
 
 
 
 
By:
/s/ James Daniel Westcott
 
 
 
Name:
James Daniel Westcott
 
 
 
Title:
Executive Vice President and Chief Financial Officer
 
 
 
 
 
 
GUARANTORS:
LEGACY RESERVES OPERATING LP
 
 
 
 
 
 
 
 
By:
Legacy Reserves Operating GP LLC, its general partner
 
 
 
By:
Legacy Reserves LP, its sole member
 
 
 
By:
Legacy Reserves GP, LLC, its general partner
 
 
 
 
 
 
 
 
By:
/s/ James Daniel Westcott
 
 
 
Name:
James Daniel Westcott
 
 
 
Title:
Executive Vice President and Chief Financial Officer
 
 
 
 
 
 
 
LEGACY RESERVES OPERATING GP LLC
 
 
 
 
 
 
 
 
By:
Legacy Reserves LP, its sole member
 
 
 
By:
Legacy Reserves GP, LLC, its general partner
 
 
 
 
 
 
 
 
By:
/s/ James Daniel Westcott
 
 
 
Name:
James Daniel Westcott
 
 
 
Title:
Executive Vice President and Chief Financial Officer
 


SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
LEGACY RESERVES SERVICES, INC.
 
 
 
 
 
 
 
 
By:
/s/ James Daniel Westcott
 
 
 
Name:
James Daniel Westcott
 
 
 
Title:
Executive Vice President and Chief Financial Officer
 
 
DEW GATHERING LLC
 
 
 
 
 
 
 
 
By:
/s/ James Daniel Westcott
 
 
 
Name:
James Daniel Westcott
 
 
 
Title:
Executive Vice President and Chief Financial Officer
 
 
PINNACLE GAS TREATING LLC
 
 
 
 
 
 
 
 
By:
/s/ James Daniel Westcott
 
 
 
Name:
James Daniel Westcott
 
 
 
Title:
Executive Vice President and Chief Financial Officer
 
 
LEGACY RESERVES ENERGY SERVICES LLC
 
 
 
 
 
 
 
 
By:
/s/ James Daniel Westcott
 
 
 
Name:
James Daniel Westcott
 
 
 
Title:
Executive Vice President and Chief Financial Officer
 




SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




ADMINISTRATIVE AGENT:
WELLS FARGO BANK, NATIONAL ASSOCIATION,
 
 
as Administrative Agent and a Lender
 
 
 
 
 
 
 
 
By:
/s/ Stephanie Harrell
 
 
 
 
Stephanie Harrell
 
 
 
 
Vice President
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




LENDERS:
COMPASS BANK
 
 
 
 
 
 
 
 
By:
/s/ Gabriela Albino
 
 
 
Name:
Gabriela Albino
 
 
 
Title:
Vice President
 
 
 
 
 
 


SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
UBS AG, STAMFORD BRANCH
 
 
 
 
 
 
 
 
By:
/s/ Darlene Arias
 
 
 
Name:
Darlene Arias
 
 
 
Title:
Director
 
 
 
 
 
 
 
 
By:
/s/ Houssem Daly
 
 
 
Name:
Houssem Daly
 
 
 
Title:
Associate Director
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
U.S. BANK NATIONAL ASSOCIATION
 
 
 
 
 
 
 
 
By:
/s/ Nicholas T. Hanford
 
 
 
Name:
Nicholas T. Hanford
 
 
 
Title:
Vice President
 
 
 
 


SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
BANK OF AMERICA, N.A.
 
 
 
 
 
 
 
 
By:
/s/ Bryan Heller
 
 
 
Name:
Bryan Heller
 
 
 
Title:
Director
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
ROYAL BANK OF CANADA
 
 
 
 
 
 
 
 
By:
/s/ Evans Swann
 
 
 
Name:
Evans Swann
 
 
 
Title:
Authorized Signatory
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
THE BANK OF NOVA SCOTIA
 
 
 
 
 
 
 
 
By:
/s/ Alan Dawson
 
 
 
Name:
Alan Dawson
 
 
 
Title:
Director
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
KEYBANK NATIONAL ASSOCIATION
 
 
 
 
 
 
 
 
By:
/s/ George E. McKean
 
 
 
Name:
George E. McKean
 
 
 
Title:
Senior Vice President
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
MUFG UNION BANK, N.A. f/k/a UNION BANK, N.A.
 
 
 
 
 
 
 
 
By:
/s/ Lara Francis
 
 
 
Name:
Lara Francis
 
 
 
Title:
Vice President
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
JPMORGAN CHASE BANK, N.A.
 
 
 
 
 
 
 
 
By:
/s/ Stephanie Balette
 
 
 
Name:
Stephanie Balette
 
 
 
Title:
Authorized Officer
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
BMO HARRIS FINANCING, INC.
 
 
 
 
 
 
 
 
By:
/s/ Gumaro Tijerina
 
 
 
Name:
Gumaro Tijerina
 
 
 
Title:
Managing Director
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
BARCLAYS BANK PLC
 
 
 
 
 
 
 
 
By:
/s/ Luke Syme
 
 
 
Name:
Luke Syme
 
 
 
Title:
Assistant Vice President
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK
 
 
 
 
 
 
 
 
By:
/s/ Ting Lee
 
 
 
Name:
Ting Lee
 
 
 
Title:
Director
 
 
 
 
 
 
 
 
By:
/s/ Sharada Manne
 
 
 
Name:
Sharada Manne
 
 
 
Title:
Managing Director
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
CITIBANK, N.A.
 
 
 
 
 
 
 
 
By:
/s/ Cliff Vaz
 
 
 
Name:
Cliff Vaz
 
 
 
Title:
Vice President
 
 
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
SOCIETE GENERALE
 
 
 
 
 
 
 
 
By:
/s/ David Bornstein
 
 
 
Name:
David Bornstein
 
 
 
Title:
Director
 
 
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
BRANCH BANKING AND TRUST COMPANY
 
 
 
 
 
 
 
 
By:
/s/ Ryan K. Michael
 
 
 
Name:
Ryan K. Michael
 
 
 
Title:
Senior Vice President
 
 
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
WEST TEXAS NATIONAL BANK
 
 
 
 
 
 
 
 
By:
/s/ Chris L. Whigham
 
 
 
Name:
Chris L. Whigham
 
 
 
Title:
SVP - Manager of Energy Lending
 
 
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
SANTANDER BANK, N.A.
 
 
 
 
 
 
 
 
By:
/s/ Aidan Lanigan
 
 
 
Name:
Aidan Lanigan
 
 
 
Title:
Senior Vice President
 
 
 
 
 
 
 
 
By:
/s/ Puiki Lok
 
 
 
Name:
Puiki Lok
 
 
 
Title:
Vice President
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
TEXAS CAPITAL BANK, N.A.
 
 
 
 
 
 
 
 
By:
/s/ Frank K. Stowers
 
 
 
Name:
Frank K. Stowers
 
 
 
Title:
Senior Vice President
 
 
 
 
 
 

SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT




 
FIFTH THIRD BANK
 
 
 
 
 
 
 
 
By:
/s/ Justin Bellamy
 
 
 
Name:
Justin Bellamy
 
 
 
Title:
Director
 
 
 
 
 
 



SIGNTURE PAGE
SIXTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT