Swap Agreement by and between RGC Midstream, LLC and Branch Banking and Trust Company, dated June 13, 2019

Contract Categories: Business Finance - Trust Agreements
EX-10.8 9 exhibit108-interestrateswa.htm EXHIBIT 10.8 Exhibit

Exhibit 10.8
BB&T            

Branch Banking and Trust Company
Funds Management Group
Mailcode: 001-91-03-00
101 N. Cherry Street, Suite 300
Winston-Salem NC 27101


June 14, 2019

To: Mr. Paul Nester
RGC Midstream LLC
Email: ***@***
Phone: (540) 777-3837

From: Kevin Randal, Senior Vice President
Branch Banking and Trust Company (BB&T)
101 North Cherry Street, Suite 300
Winston-Salem NC 27101
Telephone: (336) 733-2853
Fax #: (336) 293-9854

Re: Confirmation of USD 10,000,000.00 amortizing swap commencing June 13, 2019

Dear Mr. Nester:

The purpose of this letter agreement is to confirm the terms and conditions of the Transaction entered into between Branch Banking and Trust Company (“BB&T”) and RGC Midstream LLC (“Counterparty”) on the Trade Date specified below (the “Swap Transaction”). This letter agreement constitutes a “Confirmation” under the ISDA Agreement defined below.

The definitions and provisions contained in the 2006 ISDA Definitions as published by the International Swaps and Derivatives Association, Inc. (“ISDA”) are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern.

1.
This confirmation supplements, forms part of, and is subject to, the ISDA Master Agreement dated as of May 23, 2019 (as amended and supplemented, the “Agreement”),between us. All provisions contained in the Agreement govern this Confirmation except as expressly modified below. Pursuant to ISDA guidelines, the mutual agreement of terms commenced the transaction being confirmed. This serves as additional evidence of a binding supplement to the Agreement. We request that you sign this Confirmation and return it to us.



Page 2

RGC_MIDSTREA
2.
The terms of the particular Swap Transaction to which this Confirmation relates are as follows:
 
Notional Amount:
 
(i) USD 10,000,000.00 for the initial Calculation Period, ant thereafter
 
 
 
(ii) the amounts as detailed in the Schedule of Notional Amounts attached hereto.
 
 
 
 
 
Trade Date:
 
June 13, 2019
 
 
 
 
 
Effective Date:
 
June 13, 2019
 
 
 
 
 
Termination Date
 
June 1, 2024
 
 
 
 
Fixed Amounts:
 
 
 
 
 
 
 
Fixed Rate Payer:
 
Counterparty
 
 
 
 
 
Fixed Rate Payer Payment Dates:
 
The 1st calendar day of each month during the Term of this Transaction, commencing on July 1, 2019 and ending on the Termination Date, subject to adjustment in accordance wit the Modified Following Business Day Convention.
 
 
 
 
 
Period End Dates:
 
The 1st calendar day of each month to but excluding the 1st day of the immediately following month, not subject to adjustment
 
 
 
 
 
Fixed Rate:
 
3.14000 percent per annum
 
 
 
 
 
Fixed Rate Day Count Fraction:
 
Actual / 360
 
 
 
 
Floating Amounts:
 
 
 
 
 
 
 
Floating Rate Payer:
 
BB&T
 
 
 
 
 
Floating Rate Payer Payment Dates:
 
The 1st calendar day of each month during the Term of this Transaction, commencing July 1, 2019 and ending on the Termination Date, subject to adjustment in accordance with the Modified Following Business Day Convention.
 
 
 
 
 
Period End Dates:
 
The 1st calendar day of each month to but excluding the 1st day of the immediately following month, not subject to adjustment.


Page 3
 
 
 
Floating Rate for Initial Calculation Period:
 
3.61063 percent which includes applicable spread
 
 
 
 
 
Floating Rate Option:
 
USD-LIBOR-BBA plus spread
 
 
 
 
 
Designated Maturity:
 
Monthly
 
 
 
 
 
Spread:
 
120 basis points
 
 
 
 
 
Floating Rate Day Count Fraction:
 
Actual / 360
 
 
 
 
 
Business Day Convention:
 
Modified Following
 
 
 
 
 
Business Days for Payments:
 
New York, London
 
 
 
 
 
Business Days for Resets:
 
London
 
 
 
 
 
Reset Dates:
 
The 1st day of each month without adjustment.
 
 
 
 
 
Compounding:
 
Inapplicable
 
 
 
 
 
Calculation Agent:
 
BB&T, unless otherwise specified in Agreement
 
 
 
 
3. Account Details:
 
 
 
 
 
 
 
Payments to BB&T:
 
Winston-Salem, NC
 
 
 
 
 
Office of Counterparty:
 
Roanoke, VA
 
 
 
 
 
Non-Reliance:
 
Each party represents to the other party that it is acting for its own account, and has made its own independent decisions to enter into this Transaction is appropriate or proper for it based on its own judgment and upon advice from such advisors as it has deemed necessary. It is not relying on any communication (written or oral) of the other party as investment advice or as a recommendation to enter into this Transaction, it being understood that information and explanations related to the terms and conditions of this Transaction shall not be considered investment advice or a recommendation to enter
 
 
 
 
 
 
 
 


Page 4
 
 
 
 
 
into this Transaction. No communication (written or oral) received from the other party shall be deemed to be an assurance or guarantee as to the expected results of this Transaction.


Please confirm your agreement to be bound by the terms stated herein by executing the copy of this Confirmation enclosed for that purpose and returning it to us within 2 business days, signed by a vice president or above who is authorized to sign financial instrument contracts on behalf of the Counterparty to:

 
 
BB&T Funds Management
 
 
Attn: Kevin Randal
 
 
Fax#: (336) 293-9854


This Confirmation shall be conclusively deemed accurate and complete by Counterparty if not executed and returned to us within the timeframe established above.
        
 
 
Yours sincerely,
 
 
Branch Banking and Trust Company
 
 
 
 
 
By: /s/ Kevin Randal
 
 
Name: Kevin Randal
 
 
Title: Senior Vice President
 
 
 
Confirm as of the
 
 
Date first above written:
 
 
RGC Midstream LLC
 
 
 
 
 
By: /s/ John S. D'Orazio
 
By: /s/ Paul W. Nester
Name: John S. D'Orazio
 
Name: Paul W. Nester
Title: President
 
Title: Chief Financial Officer
        

Trade ID: 45460NC
Confirmation of USD 10,000,000.00 swap commencing June 13, 2019
Termination Date June 1, 2024





Page 5
 
 
RGC Midstream LLC
45460NC
Schedule of Notional Amounts
 
 
 
From and Including
To but Excluding
Notional Amount
6/13/2019
7/1/2019
10,000,000.00

7/1/2019
8/1/2019
10,000,000.00

8/1/2019
9/1/2019
10,000,000.00

9/1/2019
10/1/2019
10,000,000.00

10/1/2019
11/1/2019
10,000,000.00

11/1/2019
12/1/2019
10,000,000.00

12/1/2019
1/1/2020
10,000,000.00

1/1/2020
2/1/2020
10,000,000.00

2/1/2020
3/1/2020
10,000,000.00

3/1/2020
4/1/2020
10,000,000.00

4/1/2020
5/1/2020
10,000,000.00

5/1/2020
6/1/2020
10,000,000.00

6/1/2020
7/1/2020
10,000,000.00

7/1/2020
8/1/2020
10,000,000.00

8/1/2020
9/1/2020
10,000,000.00

9/1/2020
10/1/2020
10,000,000.00

10/1/2020
11/1/2020
10,000,000.00

11/1/2020
12/1/2020
10,000,000.00

12/1/2020
1/1/2021
10,000,000.00

1/1/2021
2/1/2021
10,000,000.00

2/1/2021
3/1/2021
10,000,000.00

3/1/2021
4/1/2021
10,000,000.00

4/1/2021
5/1/2021
10,000,000.00

5/1/2021
6/1/2021
10,000,000.00

6/1/2021
7/1/2021
10,000,000.00

7/1/2021
8/1/2021
10,000,000.00

8/1/2021
9/1/2021
10,000,000.00

9/1/2021
10/1/2021
10,000,000.00

10/1/2021
11/1/2021
10,000,000.00

11/1/2021
12/1/2021
10,000,000.00

12/1/2021
1/1/2022
10,000,000.00

1/1/2022
2/1/2022
10,000,000.00

2/1/2022
3/1/2022
10,000,000.00

3/1/2022
4/1/2022
10,000,000.00

4/1/2022
5/1/2022
10,000,000.00

5/1/2022
6/1/2022
10,000,000.00

6/1/2022
7/1/2022
10,000,000.00

7/1/2022
8/1/2022
9,958,333.33



Page 6
 
 
8/1/2022
9/1/2022
9,916,666.66

9/1/2022
10/1/2022
9,874,999.99

10/1/2022
11/1/2022
9,833,333.32

11/1/2022
12/1/2022
9,791,666.65

12/1/2022
1/1/2023
9,749,999.98

1/1/2023
2/1/2023
9,708,333.31

2/1/2023
3/1/2023
9,666,666.64

3/1/2023
4/1/2023
9,624,999.97

4/1/2023
5/1/2023
9,583,333.30

5/1/2023
6/1/2023
9,541,666.63

6/1/2023
7/1/2023
9,499,999.96

7/1/2023
8/1/2023
9,458,333.29

8/1/2023
9/1/2023
9,416,666.62

9/1/2023
10/1/2023
9,374,999.95

10/1/2023
11/1/2023
9,333,333.28

11/1/2023
12/1/2023
9,261,666.61

12/1/2023
1/1/2024
9,249,999.94

1/1/2024
2/1/2024
9,208,333.27

2/1/2024
3/1/2024
9,166,666.60

3/1/2024
4/1/2024
9,124,999.93

4/1/2024
5/1/2024
9,083,333.26

5/1/2024
6/1/2024
9,041,666.59