EX-10.30 8 ex10_30.htm EXHIBIT 10.30 ex10_30.htm

Exhibit 10.30
 
Third Amendment

to

Second Lien Term Loan Agreement

Among

Rosetta Resources Inc.,
as Borrower,

BNP Paribas,
as Administrative Agent,

and

The Lenders Signatory Hereto


Effective as of May 1, 2007

 


Third Amendment to Second Lien Term Loan Agreement

This Third Amendment to Second Lien Term Loan Agreement (this “Third Amendment”) executed effective as of the 1st of May, 2007 (the “Third Amendment Effective Date”) is among Rosetta Resources Inc., a corporation 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”); each of the Lenders that is a signatory hereto; and BNP Paribas, as administrative agent for the Lenders (in such capacity, together with its successors, the “Administrative Agent”).

Recitals

A.           The Borrower, the Administrative Agent and the Lenders are parties to that certain Second Lien Term Loan Agreement dated as of July 7, 2005, as amended by the First Amendment to Second Lien Term Loan Agreement dated September 26, 2005 and the Second Amendment to Second Lien Term Loan Agreement, dated December 6, 2006 (as amended, the “Credit Agreement”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

B.           The Borrower has requested and the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement.

C.           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 Third Amendment, shall have the meaning ascribed such term in the Credit Agreement.  Unless otherwise indicated, all section references in this Third Amendment refer to the Credit Agreement.

Section 2.           Amendments to Credit Agreement.

2.1           Section 1.02.  The following definitions are hereby added or amended and restated in its entirety as follows:

Agreement” means this Second Lien Term Loan Agreement, as amended by the First Amendment to Second Lien Term Loan Agreement, dated September 26, 2005, the Second Amendment to Second Lien Term Loan Agreement, dated December 6, 2006 and the Third Amendment to Second Lien Term Loan Agreement, dated May 1, 2007, as the same may from time to time be further amended, modified, supplemented or restated.

2.2           Section 9.19(b).  Section 9.19(b) is hereby amended and restated in its entirety as follows (bold indicates changes from the previous Section 9.19(b)):
 
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“(b) Swap Agreements in respect of commodities (including price Swap Agreements, basis differential Swap Agreements, caps, collars, floors and other similar agreements described in the definition of “Swap Agreements”) (i) with an Approved Counterparty and (ii) the notional volumes for which, (when aggregated with other commodity Swap Agreements then in effect other than basis differential swaps on volumes already hedged pursuant to other Swap Agreements) do not exceed, as of the date each such Swap Agreement is executed, (A) 100% of the reasonably anticipated projected production (as shown in the most recent Reserve Report and/or in another engineering report which is in form and substance satisfactory to the Administrative Agent) from proved, developed, producing Oil and Gas Properties for each twelve month period during which each such Swap Agreement is in effect, for the next thirty-six months succeeding the execution of each such Swap Agreement, (B) 75% of the reasonably anticipated projected production (as shown in the most recent Reserve Report and/or in another engineering report which is in form and substance satisfactory to the Administrative Agent) from proved, developed, producing Oil and Gas Properties for each twelve month period during which each such Swap Agreement is in effect, for each twelve month period after the first thirty-six months after each such Swap Agreement is executed, (C) 50% of the reasonably anticipated projected production (as shown in the most recent Reserve Report and/or in another engineering report which is in form and substance satisfactory to the Administrative Agent) from proved, developed, non-producing Oil and Gas Properties for each twelve month period during which each such Swap Agreement is in effect, for the next twenty-four months succeeding the execution of each such Swap Agreement and (D) 35% of the reasonably anticipated projected production (as shown in the most recent Reserve Report and/or in another engineering report which is in form and substance satisfactory to the Administrative Agent) from proved, developed, non-producing Oil and Gas Properties for each twelve month period during which each such Swap Agreement is in effect, for the period of twelve months succeeding the two-year anniversary of the execution of each such Swap Agreement; provided, however, that for purposes of this Section 9.19(b), put options and price floors for crude oil and natural gas shall be disregarded;”

Section 3.           Conditions Precedent.  The effectiveness of this Third Amendment is subject to the receipt by the Administrative Agent of the following documents and satisfaction of the other conditions provided in this Section 3, each of which shall be reasonably satisfactory to the Administrative Agent in form and substance:

3.1           Payment of Outstanding Invoices.  Payment by the Borrower to the Administrative Agent of all fees and other amounts due and payable on or prior to the Third Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower.

3.2           Third Amendment.  The Administrative Agent shall have received multiple counterparts as requested of this Third Amendment from the Majority Lenders.
 
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3.3           No Default.  No Default or Event of Default shall have occurred and be continuing as of the Third Amendment Effective Date.

Section 4.           Representations and Warranties; Etc.  Each Obligor hereby affirms:  (a) that as of the date of execution and delivery of this Third Amendment, all of the representations and warranties contained in each Loan Document to which such Obligor is a party are true and correct in all material respects as though made on and as of the Third Amendment Effective Date (unless made as of a specific earlier date, in which case, was true as of such date); and (b) that after giving effect to this Third Amendment and to the transactions contemplated hereby, no Defaults exist under the Loan Documents or will exist under the Loan Documents.

Section 5.           Miscellaneous.

5.1           Confirmation.  The provisions of the Credit Agreement (as amended by this Third Amendment) shall remain in full force and effect in accordance with its terms following the effectiveness of this Third Amendment.

5.2           Ratification and Affirmation of Obligors.  Each of the Obligors hereby expressly (i) acknowledges the terms of this Third Amendment, (ii) ratifies and affirms its obligations under the Guarantee Agreement and the other Security Instruments to which it is a party, (iii) acknowledges, renews and extends its continued liability under the Guarantee Agreement and the other Security Instruments to which it is a party and agrees that its guarantee under the Guarantee Agreement and the other Security Instruments to which it is a party remains in full force and effect with respect to the Indebtedness as amended hereby.

5.3           Counterparts.  This Third 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.

5.4           No Oral Agreement.  This written Third 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.

5.5           Governing Law.  This Third Amendment (including, but not limited to, the validity and enforceability hereof) shall be governed by, and construed in accordance with, the laws of the State of New York.
 
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IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly executed effective as of the date first written above.


BORROWER:
ROSETTA RESOURCES INC.
     
     
 
By:
 
   
Michael J. Rosinski, Executive Vice President, Chief Financial Officer, Secretary and Treasurer
     
     
GUARANTORS:
   
 
ROSETTA RESOURCES OFFSHORE, LLC
 
ROSETTA RESOURCES HOLDINGS, LLC
 
ROSETTA RESOURCES OPERATING GP, LLC
 
ROSETTA RESOURCES OPERATING LP
     
 
By: Rosetta Resources Operating GP, LLC, its general partner
     
     
 
By:
 
   
Michael J. Rosinski, Executive Vice President, Chief Financial Officer, Secretary and Treasurer
 
Third Amendment – 2nd Lien Term Loan Agreement
Signature Page - 4
 
 


ADMINISTRATIVE AGENT:
BNP PARIBAS,
 
as Administrative Agent
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
LENDERS:
BNP PARIBAS
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
 
ENERGY COMPONENTS SPC EEP ENERGY EXPLORATION AND PRODUCTION SEGREGATED PORTFOLIO
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
     
 
J.P. MORGAN WHITEFRIARS INC.
     
     
 
By:
 
 
Name:
 
 
Title:
 
 
Third Amendment – 2nd Lien Term Loan Agreement
Signature Page - 5
 

 
LENDERS:
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
     
 
PRUCO LIFE INSURANCE COMPANY
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
     
 
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
     
     
 
By:
Prudential Investment Management, Inc., as investment manager
     
     
 
By:
 
 
Name:
 
 
Title:
 
     
     
 
GATEWAY RECOVERY TRUST
     
 
By:
Prudential Investment Management, Inc., as asset manager
     
     
 
By:
 
 
Name:
 
 
Title:
 
 
Third Amendment – 2nd Lien Term Loan Agreement
Signature Page - 6