Attached files
file | filename |
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EX-32.2 - EXHIBIT 32.2 - Independence Contract Drilling, Inc. | icd-20180331x10qexx322.htm |
EX-32.1 - EXHIBIT 32.1 - Independence Contract Drilling, Inc. | icd-20180331x10qexx321.htm |
EX-31.2 - EXHIBIT 31.2 - Independence Contract Drilling, Inc. | icd-20180331x10qexx312.htm |
EX-31.1 - EXHIBIT 31.1 - Independence Contract Drilling, Inc. | icd-20180331x10qexx311.htm |
10-Q - 10-Q - Independence Contract Drilling, Inc. | icd-20180331x10q.htm |
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[ICD] Second Amendment to Second Amended and Restated Credit Agreement
#56317467
SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT
AGREEMENT (this “Amendment”) is made and entered into effective as of April 23, 2018 by and
among INDEPENDENCE CONTRACT DRILLING, INC., a Delaware corporation (“ICD” and also
being known as the “Administrative Borrower”), the Required Lenders party hereto and CIT FINANCE
LLC (“CIT”), as Administrative Agent and Collateral Agent.
WITNESSETH:
WHEREAS, pursuant to that certain Second Amended and Restated Credit Agreement, dated as
of July 14, 2017, by and among ICD, each of ICD’s domestic Subsidiaries identified on the signature
pages thereof or becoming a “Borrower” by joinder thereto (together with the Administrative Borrower,
the “Borrowers”), the Lenders and CIT, as Administrative Agent, as amended by that certain First
Amendment to Second Amended and Restated Credit Agreement, dated as of January 11, 2018 (as so
amended, and as the same may be further amended, supplemented, revised, restated or otherwise modified
from time to time, the “Credit Agreement”), Borrowers obtained commitments for a revolving loan credit
facility in an aggregate principal amount of up to $85,000,000; and
WHEREAS, Borrowers have requested certain modifications to the Credit Agreement, and
Administrative Agent and the undersigned Lenders (constituting Required Lenders) have agreed to the
modification of certain provisions contained in the Credit Agreement upon the terms and conditions
hereafter set forth.
NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
set forth herein and for other good and valuable consideration, the mutuality, receipt and sufficiency of
which are hereby acknowledged, the parties hereto hereby agree as follows:
Section 1. Definitions. All capitalized terms not defined herein shall have the
meanings given to such terms in the Credit Agreement.
Section 2. Amendments to Credit Agreement.
2.1. Amendment to Section 1.1 – Amended Definition. Effective as of the
Second Amendment Effective Date (as defined below), the definition of “EBITDA” in Section 1.1 of the
Credit Agreement is amended by inserting the following sentence immediately following the last sentence
of such definition:
“Notwithstanding anything herein to the contrary, the parties hereto agree that for
purposes of calculating the Fixed Charge Coverage Ratio and the Leverage Ratio (and
not for any other purpose), EBITDA shall be calculated on an annualized basis for the
following measurement periods as follows: (i) EBITDA for the Fiscal Quarter ending
June 30, 2018 shall be multiplied by (4); (ii) EBITDA for the two Fiscal Quarters ending
September 30, 2018 shall be multiplied by two (2); and (iii) EBITDA for the three Fiscal
Quarters ending December 31, 2018 shall be multiplied by four-thirds (4/3).”
2.2. Amendment to Section 1.1 – Amended and Restated Definition.
Effective as of the Second Amendment Effective Date (as defined below), the definition of “Unfinanced
Capital Expenditures” in Section 1.1 of the Credit Agreement is amended and restated in its entirety to
provide as follows:
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[ICD] Second Amendment to Second Amended and Restated Credit Agreement
#56317467
““Unfinanced Capital Expenditures” means any Capital Expenditure, to the
extent not financed through the incurrence of Indebtedness otherwise expressly permitted
under Section 6.01 (other than the Loans) or by the issuance by ICD of Capital Stock not
required to be applied to a prepayment pursuant to Section 2.11(b)(iii). Notwithstanding
the foregoing, for purposes of calculating the Fixed Charge Coverage Ratio (and not for
any other purpose), Unfinanced Capital Expenditures shall exclude expenditures
associated with upgrades of the Rig identified by the Borrowers as Rig 214 in an
aggregate amount not to exceed $13,000,000; provided that such Rig is subject to a duly
executed daywork drilling contract that conforms to industry standards, is on terms and
conditions consistent with Borrowers’ historical practices for daywork drilling contracts
and is for a term of not less than one-year (or a lesser term approved by the
Administrative Agent in its Permitted Discretion), and the contract backlog and dayrate
progression with respect to Borrowers’ current Rig fleet is satisfactory to Administrative
Agent in its Permitted Discretion.”
Section 3. Ratification and Further Assurances.
3.1. Each Loan Party confirms that all of its obligations under the Loan
Documents (as amended by this Amendment) are in full force and effect and are performable in
accordance with their respective terms without setoff, defense, counter-claim or claims in recoupment.
Each Loan Party further agrees that the term “Obligations”, as used in the Credit Agreement, shall include
all Obligations of the Loan Parties under the Credit Agreement (as amended by this Amendment), any
promissory notes issued under the Credit Agreement and each other Loan Document and shall also
include all obligations now or hereafter arising from or in connection with the Purchase Card Program.
3.2. Each Loan Party agrees that at any time and from time to time, upon the
written request of Administrative Agent, each Loan Party will execute and deliver such further documents
and do such further acts and things as Administrative Agent may reasonably request in order to effect the
provisions of this Amendment.
Section 4. No Waiver. Except as expressly set forth in this Amendment, nothing
contained in this Amendment, or any other communication between or among Administrative Agent,
Lenders and any Loan Party, shall be construed as a waiver by Administrative Agent or Lenders of any
covenant or provision of the Credit Agreement, the other Loan Documents, this Amendment or any other
contract or instrument between or among any Loan Party, Administrative Agent and/or Lenders, or of any
similar future transaction and the failure of Administrative Agent and/or Lenders at any time or times
hereafter to require strict performance by any Loan Party of any provision thereof shall not waive, affect
or diminish any right of any Agent and/or Lenders to thereafter demand strict compliance therewith.
Nothing contained in this Amendment shall directly or indirectly in any way whatsoever either:
(i) impair, prejudice or otherwise adversely affect Agents’ or any Lender’s right at any time to exercise
any right, privilege or remedy in connection with the Credit Agreement or any other Loan Documents,
each as amended hereby, (ii) except as expressly provided herein, amend or alter any provision of the
Credit Agreement or any other Loan Documents or any other contract or instrument, or (iii) constitute any
course of dealings or other basis for altering any obligation of any Loan Party under the Credit Agreement
or any other Loan Documents or any right, privilege or remedy of any Agent or any Lender under the
Credit Agreement, any other Loan Documents or any other contract or instrument. Agents and Lenders
hereby reserve all rights granted under the Credit Agreement, the other Loan Documents, this
Amendment and any other contract or instrument between or among any Loan Party, Agents and Lenders,
each as amended hereby.
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[ICD] Second Amendment to Second Amended and Restated Credit Agreement
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Section 5. Representations and Warranties. Each Loan Party represents and
warrants (both immediately before and after giving effect to this Amendment, including any transaction to
be consummated contemporaneously with the Second Amendment Effective Date) to Administrative
Agent and Lenders the following: (i) there does not exist any Default or Event of Default that is
continuing, (ii) each Loan Party is individually, and the Loan Parties as a whole, are, Solvent, and (iii) all
other representations and warranties contained in the Loan Documents (and this Amendment shall
constitute a “Loan Document” for all purposes) are true and correct in all material respects (except
representations and warranties which are already qualified by a materiality standard, which
representations and warranties are true and correct in all respects) on and as of the date hereof and the
Second Amendment Effective Date as though made on and as of such date (or to the extent that such
representations and warranties relate solely to an earlier date, on and as of such earlier date), (iv) each
Loan Party is in good standing under the laws of its jurisdiction of incorporation or organization, as
applicable, and is qualified to do business in each other jurisdiction in which the failure to be so qualified
could reasonably be expected to result in a Material Adverse Effect, (v) no amendment, modification or
other change has been made to (a) the certificate of incorporation, certificate of limited partnership, or
comparable organizational document, or (b) the bylaws, regulations, operating agreement or similar
governing document of any Loan Party since the Effective Date, and (vi) except as contemplated by this
Amendment, no Lender will receive, or have the right to charge or collect, any fee, interest or other
amount (beyond the reimbursement of attorneys’ fees and beyond the right to interest under the Credit
Agreement as in effect on the Second Amendment Effective Date) as result of its or their consent to this
Amendment.
Section 6. Conditions to Effectiveness. The effectiveness of this Amendment is
conditioned upon the satisfaction of the following condition precedent (the date on which the conditions
have been satisfied or waived in writing by Administrative Agent being the “Second Amendment
Effective Date”), with any documentation set below being in form, substance and results acceptable to
Administrative Agent at its sole option. The determination as to whether each condition has been
satisfied shall be made by Administrative Agent.
6.1. The Borrowers shall have paid and Borrowers hereby agree to pay to
Administrative Agent, all expenses (including reasonable attorneys’ fees) and fees owed to or incurred by
Agents or Lenders arising in connection with the Loan Documents or this Amendment (including
pursuant to the Fee Letter (defined below). All fees, expenses and other amounts payable hereunder shall
be non-refundable and fully earned upon Administrative Agent’s receipt of such expenses or amounts (or
the making of a Loan for payment thereof);
6.2. Each Loan Party shall have duly executed and delivered that certain fee
letter agreement dated as of the date hereof (the “Fee Letter”); and
6.3. Each Loan Party and the Required Lenders shall have duly executed and
delivered this Amendment.
The Loan Parties shall be deemed to represent and warrant to Administrative Agent and Lenders
that each of the foregoing conditions have been satisfied upon the release of their respective signatures
to this Amendment; provided, however, that if the other conditions precedent herein have been
satisfied, Administrative Agent shall be irrevocably authorized by each Loan Party and each Lender
party to this Amendment to make at Administrative Agent’s election (and without any further
deliverables being made to Administrative Agent) a Loan on behalf of Borrowers to pay any fees
and expenses contemplated above contemporaneously with the Second Amendment Effective Date.
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[ICD] Second Amendment to Second Amended and Restated Credit Agreement
#56317467
Section 7. Miscellaneous.
7.1. Except as expressly provided in this Amendment, (i) the Credit
Agreement shall continue in full force and effect, and (ii) the terms and conditions of the Credit
Agreement are expressly incorporated herein and ratified and confirmed in all respects. This Amendment
is not intended to be or to create, nor shall it be construed as, a novation or an accord and satisfaction.
From and after the Second Amendment Effective Date, references to the Credit Agreement in each Loan
Document shall be references to the Credit Agreement as amended hereby. The Lenders party hereto
hereby direct and instruct Administrative Agent to execute and deliver this Amendment and all
documents to be executed in connection herewith, and to induce Administrative Agent to execute and
deliver this Amendment and the other applicable documents, each Lender ratifies and confirms its
obligations under, and the immunities and exculpatory provisions accruing to each Agent under, the terms
of the Credit Agreement and the other Loan Documents and agrees that, as of the date hereof, such
obligations, immunities and other provisions are without setoff, counterclaim, defense or recoupment.
This Amendment shall constitute a Loan Document.
7.2. Each Loan Party hereby ratifies and confirms the Liens and security
interests granted under the Loan Documents and further ratifies and agrees that such Liens and security
interests secure all obligations and indebtedness now, hereafter or from time to time made by, owing to or
arising in favor of Agents or Lenders pursuant to the Loan Documents (as now, hereafter or from time to
time amended).
7.3. This Amendment constitutes the entire agreement among the parties
hereto with respect to the subject matter hereof. Neither this Amendment nor any provision hereof may
be changed, waived, discharged, modified or terminated orally, but only by an instrument in writing
signed by the parties required to be a party thereto pursuant to the Credit Agreement.
7.4. This Amendment may be executed in any number of counterparts
(including by facsimile or as a .pdf attachment), and by the different parties hereto on the same or
separate counterparts, each of which shall be deemed to be an original instrument but all of which
together shall constitute one and the same agreement.
7.5. If any term or provision of this Amendment is adjudicated to be invalid
under applicable laws or regulations, such provision shall be inapplicable to the extent of such invalidity
without affecting the validity or enforceability of the remainder of this Amendment which shall be given
effect so far as possible.
7.6. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH THE CHOICE OF LAW PROVISIONS SET FORTH
IN THE CREDIT AGREEMENT AND SHALL BE SUBJECT TO ANY WAIVER OF JURY TRIAL
(OR IF APPLICABLE, THE JUDICIAL REFEREE PROVISIONS) AND NOTICE PROVISIONS OF
THE CREDIT AGREEMENT.
7.7. This Amendment shall be binding upon and inure to the benefit of each
Loan Party, Agents and Lenders and their respective successors and assigns, except that no Loan Party
shall have the right to assign any rights thereunder or any interest therein without Administrative Agent’s
and the Required Lenders’ prior written consent.
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[ICD] Second Amendment to Second Amended and Restated Credit Agreement
#56317467
7.8. EACH LOAN PARTY HEREBY ABSOLUTELY AND
UNCONDITIONALLY RELEASES AND FOREVER DISCHARGES EACH AGENT AND EACH
LENDER, AND ANY AND ALL PARTICIPANTS, PARENTS, SUBSIDIARIES, AFFILIATES,
INSURERS, INDEMNITORS, PREDECESSORS, SUCCESSORS AND ASSIGNS THEREOF, IN
EACH CASE, IN WHATEVER CAPACITY, TOGETHER WITH ALL OF THE PRESENT AND
FORMER DIRECTORS, OFFICERS, ATTORNEYS, AGENTS AND EMPLOYEES OF ANY OF THE
FOREGOING, FROM ANY AND ALL CLAIMS, DEMANDS OR CAUSES OF ACTION OF ANY
KIND, NATURE OR DESCRIPTION, WHETHER ARISING IN LAW OR EQUITY OR UPON
CONTRACT OR TORT OR UNDER ANY STATE OR FEDERAL LAW OR OTHERWISE BUT
ONLY TO THE EXTENT ARISING UNDER, ON ACCOUNT OF OR IN CONNECTION WITH THE
LOANS AND/OR THE LOAN DOCUMENTS, WHICH SUCH LOAN PARTY HAS HAD, NOW HAS
OR HAS MADE CLAIM TO HAVE AGAINST ANY SUCH PERSON FOR OR BY REASON OF
ANY ACT, OMISSION, MATTER, CAUSE OR THING WHATSOEVER ARISING FROM THE
BEGINNING OF TIME TO AND INCLUDING THE SECOND AMENDMENT EFFECTIVE DATE,
WHETHER SUCH CLAIMS, DEMANDS AND CAUSES OF ACTION ARE MATURED OR
UNMATURED OR KNOWN OR UNKNOWN, INCLUDING, WITHOUT LIMITATION, ALL
CLAIMS, DEMANDS OR CAUSES OF ACTION ARISING IN WHOLE OR PART FROM THE
NEGLIGENCE OR STRICT LIABILITY OF ANY AGENT, ANY LENDER OR ANY OTHER PARTY
PURPORTED TO BE RELEASED HEREBY.
The foregoing release shall apply to all unknown or unanticipated results of any events occurring
prior to the time this Amendment is signed, as well as those known or anticipated. Each Loan Party, to
the extent permitted by law, expressly waives any and all rights under Section 1542 of the Civil Code of
the State of California with respect to the claims released herein. Section 1542 of the Civil Code of the
State of California provides as follows:
A general release does not extend to claims which the creditor does
not know or suspect to exist in his or her favor at the time of
executing the release, which if known by him or her must have
materially affected his or her settlement with the debtor.
Each Loan Party, to the extent permitted by law, expressly waives and relinquishes all rights and
benefits afforded by said Section 1542, and any comparable state or federal law. Each Loan Party
understands that the facts in respect of which the foregoing release is given may hereafter turn out to be
different from the facts now known or believed to be true. Each Loan Party hereby accepts and assumes
the risk that those facts may ultimately be found to be different, and agrees that the foregoing Release
shall be in all respects effective, and not subject to termination or rescission by virtue of any such factual
differences.
[SIGNATURES APPEAR ON FOLLOWING PAGES]
THE PRUDENTIAL INSURANCE COMPANY
OF AMERICA, as a Lender
By:
Name: Jnifer L. iffi
Title: i President
PRUDENTIAL LEGACY INSURANCE COMPANY
OF NEW JERSEY, as a Lender
By: PGIIVI, Inc.,
as investment manager
Name:
Title:
[lCD] Second Amendment to Second Amended and Restated Credit Agreement
#56317467