0000899243-17-012303.txt : 20170508 0000899243-17-012303.hdr.sgml : 20170508 20170508180453 ACCESSION NUMBER: 0000899243-17-012303 CONFORMED SUBMISSION TYPE: 3 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20170426 FILED AS OF DATE: 20170508 DATE AS OF CHANGE: 20170508 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Fund XII UGP, LLC CENTRAL INDEX KEY: 0001704967 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823761 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Fund XII G.P., L.P. CENTRAL INDEX KEY: 0001704881 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823762 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Fund XII (Master), L.P. CENTRAL INDEX KEY: 0001704882 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823763 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Fund VI-A, L.P. CENTRAL INDEX KEY: 0001704987 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823766 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Investment Partners (Offshore) Master, L.P. CENTRAL INDEX KEY: 0001705023 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823767 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Hicks George G CENTRAL INDEX KEY: 0001706059 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823770 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 ISSUER: COMPANY DATA: COMPANY CONFORMED NAME: LILIS ENERGY, INC. CENTRAL INDEX KEY: 0001437557 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 000000000 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 BUSINESS ADDRESS: STREET 1: 300 E. SONTERRA BLVD. STREET 2: SUITE NO. 1220 CITY: SAN ANTONIO STATE: TX ZIP: 78258 BUSINESS PHONE: (210) 999-5400 MAIL ADDRESS: STREET 1: 300 E. SONTERRA BLVD. STREET 2: SUITE NO. 1220 CITY: SAN ANTONIO STATE: TX ZIP: 78258 FORMER COMPANY: FORMER CONFORMED NAME: RECOVERY ENERGY, INC. DATE OF NAME CHANGE: 20091104 FORMER COMPANY: FORMER CONFORMED NAME: UNIVERSAL HOLDINGS INC DATE OF NAME CHANGE: 20080612 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Fund XI G.P., LLC CENTRAL INDEX KEY: 0001704880 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823764 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Skyway fund G.P., LLC CENTRAL INDEX KEY: 0001704964 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823768 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Fund XI (Master), L.P. CENTRAL INDEX KEY: 0001704962 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823765 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 REPORTING-OWNER: OWNER DATA: COMPANY CONFORMED NAME: Varde Skyway Master Fund, L.P. CENTRAL INDEX KEY: 0001704946 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 3 SEC ACT: 1934 Act SEC FILE NUMBER: 001-35330 FILM NUMBER: 17823769 BUSINESS ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 BUSINESS PHONE: 952-374-6998 MAIL ADDRESS: STREET 1: 901 MARQUETTE AVENUE SOUTH STREET 2: SUITE 3300 CITY: MINNEAPOLIS STATE: MN ZIP: 55402 3 1 doc3.xml FORM 3 SUBMISSION X0206 3 2017-04-26 0 0001437557 LILIS ENERGY, INC. LLEX 0001706059 Hicks George G 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001704946 Varde Skyway Master Fund, L.P. 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS 055402 0 0 1 0 0001704964 Varde Skyway fund G.P., LLC 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001705023 Varde Investment Partners (Offshore) Master, L.P. 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001704987 Varde Fund VI-A, L.P. 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001704962 Varde Fund XI (Master), L.P. 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001704880 Varde Fund XI G.P., LLC 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001704882 Varde Fund XII (Master), L.P. 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001704881 Varde Fund XII G.P., L.P. 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 0001704967 Varde Fund XII UGP, LLC 901 MARQUETTE AVE. S., SUITE 3300 MINNEAPOLIS MN 055402 0 0 1 0 Convertible Debt 5.50 2017-04-26 2021-04-26 Common Stock, $0.001 par value 5193484 I See footnotes Convertible Debt 5.50 2017-04-26 2021-04-26 Common Stock, $0.001 par value 3695363 I See footnotes Convertible Debt 5.50 2017-04-26 2021-04-26 Common Stock, $0.001 par value 1622964 I See footnotes Convertible Debt 5.50 2017-04-26 2021-04-26 Common Stock, $0.001 par value 749060 I See footnotes Convertible Debt 5.50 2017-04-26 2021-04-26 Common Stock, $0.001 par value 374530 I See footnotes Convertible Debt 5.50 2017-04-26 2021-04-26 Common Stock, $0.001 par value 848934 I See footnotes On April 26, 2017, Lilis Energy, Inc. (the "Issuer") entered into a Credit Agreement (the "Credit Agreement") among the Issuer, certain subsidiaries of the Issuer, as guarantors, and the lenders, including The Varde Fund XI (Master), L.P., The Varde Fund XII (Master), L.P., The Varde Skyway Master Fund, L.P., The Varde Fund VI-A, L.P., Varde Investment Partners, L.P. and Varde Investment Partners (Offshore) Master, L.P. (collectively, the "Lenders"). Pursuant to the Credit Agreement, the Lenders extended a second lien term loan facility of $125,000,000 consisting of $80,000,000, which was drawn on the closing date (the "Initial Term Loan") and, subject to certain conditions, up to $45,000,000 in additional term loans. The term loans mature on April 26, 2021, and bear interest at a rate of 8.25% per annum, payable quarterly. (Continued from footnote 1) 70% of the aggregate principal amount of the Initial Term Loan, plus accrued and unpaid interest to the conversion date and a "make-whole" premium is convertible, at the Lenders' option, into a number of the Issuer's shares of common stock at a conversion price (subject to adjustment) of $5.50 per share. Prior to the receipt of the approval of requisite approval of the Issuer's shareholders under the relevant rules of the primary exchange on which the Issuer's common stock is listed, the amount of the shares issuable pursuant to any conversion of the Initial Term Loan is limited to an amount which would not result in any Lender, together with its affiliates and the other members of any "group" (as such term is used in sections 13(d) and 14(d) of the Exchange Act) including such Lender, owning in excess of 19.999% of the outstanding common stock of the Issuer. The amount reported reflects the maximum amount of shares issuable upon conversion of the Initial Term Loan subject to the beneficial ownership limitation described above. Reflects securities held directly by The Varde Fund XI (Master), L.P. ("Fund XI"). The Varde Fund XI G.P., LLC ("Fund XI GP") is the general partner of Fund XI. Reflects securities held directly by The Varde Fund XII (Master), L.P. ("Fund XII"). The Varde Fund XII G.P., L.P. ("Fund XII GP") is the general partner of Fund XII, and The Varde Fund UGP, LLC ("Fund XII UGP") is the general partner of Fund XII GP. Reflects securities held directly by The Varde Skyway Master Fund, L.P. ("Skyway Fund"). The Varde Skyway Fund G.P., LLC ("Skyway Fund GP") is the general partner of Skyway Fund. Reflects securities held directly by Varde Investment Partners (Offshore) Master, L.P. ("VIP Offshore"). Varde Investment Partners G.P., LLC ("VIP GP") is the general partner of VIP Offshore. Reflects securities held directly by The Varde Fund VI-A, L.P. ("Fund VI-A"). VIP GP is the general partner of Fund VI-A. Reflects securities held directly by Varde Investment Partners, L.P. ("VIP"). VIP GP is the general partner of Fund VIP. Varde Partners, L.P. ("Managing Member") is the managing member of each of Fund XI GP, Fund XII UGP, Skyway Fund GP and VIP GP. Varde Partners, Inc. ("General Partner") is the general partner of the Managing Member. Following the transaction described above, George G. Hicks may be deemed to beneficially own all of the securities which may be acquired upon conversion of the Initial Term Loan because, as the chief executive officer of the General Partner, he may be deemed to have voting and/or dispositive power over such securities. Due to limitations of the electronic filing system, certain Reporting Persons are filing a separate Form 3. Each of the Reporting Persons (other than to the extent it directly holds securities reported herein) disclaims beneficial ownership of the securities held by the other Reporting Persons, except to the extent of such Reporting Person's pecuniary interest therein, and, pursuant to Rule 16a-1(a)(4) under the Securities Exchange Act of 1934, each of the Reporting Persons (other than to the extent it directly holds securities reported herein) states that the inclusion of these securities in this report shall not be deemed an admission of beneficial ownership of all of the reported securities for purposes of Section 16 or for any other purpose. GEORGE G. HICKS, By: /s/ George G. Hicks, Name: George G. Hicks 2017-05-08 THE VARDE FUND XI (Master), L.P., By: Varde Partners, L.P., Its Managing Member, By: Varde Partners, Inc., Its General Partner, By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08 THE VARDE FUND XI G.P., LLC, By: Varde Partners, L.P., Its Managing Member, By: Varde Partners, Inc., Its General Partner, By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08 THE VARDE FUND XII (MASTER), L.P., By: The Varde Fund XII G.P., L.P., Its General Partner, By: The Varde Fund XII UGP, LLC, Its General Partner, By: Varde Partners, L.P., By: Varde Partners, Inc., By: /s/ David A. Marple, Title: General Counsel 2017-05-08 THE VARDE FUND XII G.P., L.P., By: The Varde Fund XII UGP, LLC, Its General Partner, By: Varde Partners, L.P., Its Managing Member, By: Varde Partners, Inc., Its General Partner, By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08 THE VARDE FUND XII UGP, LLC, By: Varde Partners, L.P., Its Managing Member, By: Varde Partners, Inc., Its General Partner, By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08 THE VARDE SKYWAY MASTER FUND, L.P., By: Varde Skeyway Fund G.P., LLC, Its General Partner, By: Varde Partners, L.P., Its Managing Member, By: Varde Partners, Inc., Its General Partner, By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08 THE VARDE SKYWAY FUND G.P., LLC, By: Varde Partners, L.P., Its Managing Member, By: Varde Partners, Inc., Its General Partner, By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08 VARDE INVESTMENT PARTNERS (OFFSHORE) MASTER, L.P., By: Varde Investment Partners G.P., LLC, Its General Partner, By: Varde Partners, L.P., By: Varde Partners, Inc., By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08 THE VARDE FUND VI-A, L.P., By: Varde Investment Partners G.P., LLC, Its General Partner, By: Varde Partners, L.P., Its Managing Member, By: Varde Partners, Inc., Its General Partner, By: /s/ David A. Marple, Name: David A. Marple, Title: General Counsel 2017-05-08