EX-10 5 ex10_7.htm SECOND AMENDMENT TO CREDIT AGREEMENT

EXHIBIT 10.7

 

SECOND AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT

 

            THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT ("Second Amendment") dated as of November 14, 2001 (but effective as of September 30, 2001), is among SESI, L.L.C., as Borrower, SUPERIOR ENERGY SERVICES INC., as Parent, BANK ONE, NA (successor by merger to Bank One, Louisiana, National Association), as Agent, WELLS FARGO BANK TEXAS, N.A., as Syndication Agent, WHITNEY NATIONAL BANK, as Documentation Agent, and the lenders party hereto, who agree as follows:

RECITALS

            A.     The Borrower, Parent, Agents and the lenders a party thereto (the "Lenders") have executed an Amended and Restated Credit Agreement dated as of December 31, 2000 (as amended, the "Credit Agreement"), providing for a revolving loan of up to $70,000,000 and a term loan in the principal amount of $50,000,000 (which has a current balance of $45,000,000).

            B.     The Borrower has requested that the restriction on capital expenditures be increased from $35,000,000 to $85,000,000 for the fiscal year ending December 31, 2001 and to $50,000,000 for the fiscal year ending December 31, 2002 and then back to $35,000,000 for each fiscal year thereafter.

            C.     Capitalized terms used in this Second Amendment and not otherwise defined in this Second Amendment shall have the meanings set forth in the Credit Agreement.

    AGREEMENT

            NOW, THEREFORE, for and in consideration of the mutual covenants, agreements and undertakings herein contained, the Borrower, Parent, Agents and Lenders hereby agree as follows:

I. AMENDMENTS TO CREDIT AGREEMENT

            Section 1.     Section 6.19.4 (Maximum Capital Expenditures) of the Credit Agreement is hereby amended (effective as of September 30, 2001) to read as follows:

6.19.4 Maximum Capital Expenditures. The Parent will not permit Capital Expenditures (on a consolidated but non-cumulative basis) of the Parent, the Borrower and their Subsidiaries (i) during the fiscal year ending December 31, 2001 to be greater than $85,000,000, (ii) during the fiscal year ending December 31, 2002 to be greater than $50,000,000 and (iii) during any fiscal year thereafter to be greater than $35,000,000.

II. MISCELLANEOUS

            Section 1.     The Borrower and Parent certify and acknowledge that (i) except with respect to date specific representations and warranties, all the representations and warranties made by or on behalf of the Borrower, Parent and Subsidiaries set forth in the Credit Agreement are true and correct, in all material respects, as of the date of this Second Amendment; (ii) the Borrower and the Parent are in compliance with all of the covenants, terms and conditions of the Credit Agreement; and (iii) no Unmatured Default or Default has occurred or is continuing.

            Section 2.     Each of the Subsidiaries hereby consents to this Second Amendment and agrees that its Subsidiary Guaranty in favor of the Agent and the Lender dated as of December 31, 2000, guaranties the Secured Obligations as amended hereby by and remains in full force and effect.

            Section 3.     The Borrower and the Parent agree to execute (and cause their Subsidiaries) to execute any and all other documents reasonably required by the Agent, including without limitation, the amendment of any Loan Documents, to conform to the provisions of this Second Amendment.

            Section 4.     Except as otherwise specifically amended hereby, all of the covenants, terms and conditions of the Credit Agreement shall remain in full force and effect. Any references to the Credit Agreement contained in the Notes or any other Loan Documents shall refer to the Credit Agreement, as amended by this Second Amendment.

            Section 5.     This Second Amendment may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Second Amendment by signing any such counterpart. This Second Amendment shall be effective when it has been executed by the Parent, the Borrower, the Agents and the Required Lenders.

            Section 6.     This Second Amendment shall be a contract made under and governed by the laws of the State of Louisiana.

 

            IN WITNESS WHEREOF, the Parent, the Borrower, the Agents and the Lenders have executed this Agreement as of the date first above written.

 

BORROWER:   

SESI, L.L.C.

   

By: 

Superior Energy Services, Inc.,

   

Member Manager

   

   

By:     /S/ ROBERT S. TAYLOR                   

   

Name:  Robert S. Taylor

   

Title:  Chief Financial Officer

PARENT:   

SUPERIOR ENERGY SERVICES, INC.

   

   

By:           /S/ ROBERT S. TAYLOR                         

   

Name:  Robert S. Taylor

   

Title:  Chief Financial Officer

   

SUBSIDIARIES:   

ACE RENTAL TOOLS, L.L.C.

   

BLOWOUT TOOLS, INC.

   

CONNECTION TECHNOLOGY, L.L.C.

   

DRILLING LOGISTICS, L.L.C.

   

ENVIRONMENTAL TREATMENT

   

INVESTMENTS, L.L.C.

   

F. & F. WIRELINE SERVICE, L.L.C.

   

FASTORQ, L.L.C.

   

H.B. RENTALS, L.C.

   

INTERNATIONAL SNUBBING SERVICES, L.L.C.

   

CONCENTRIC PIPE & TOOL RENTALS, L.L.C.

   

NON-MAGNETIC RENTAL TOOLS, L.L.C.

   

OIL STOP, L.L.C.

   

PRODUCTION MANAGEMENT

   

INDUSTRIES, L.L.C.

   

SELIM LLC

   

SEGEN LLC

   

STABIL DRILL SPECIALTIES, L.L.C.

   

SUB-SURFACE TOOLS, L.L.C.

   

SUPERIOR ENERGY SERVICES, L.L.C.

   

TONG RENTALS AND SUPPLY COMPANY, L.L.C.

   

WILD WELL CONTROL, INC.

   

1105 PETERS ROAD, L.L.C.

   

   

By:           /S/ ROBERT S. TAYLOR                         

   

Name: Robert S. Taylor

   

Title: Vice President and Treasurer

   

   

   

   

HYDRO-DYNAMICS OILFIELD

   

CONTRACTORS, INC.

   

   

   

By:           /S/ ROBERT S. TAYLOR                         

   

Name: Robert S. Taylor

   

Title: Vice President and Treasurer

   

   

   

SE FINANCE LP

   

   

By: 

SEGEN LLC, its General Partner

   

   

   

By:     /S/ ROBERT S. TAYLOR                   

   

Name: Robert S. Taylor

   

Title: Manager
  

AGENT AND LENDER:   

BANK ONE, NA (Chicago Main Office)

   

   

   

By:    /S/ STEVEN D. NANCE                    

   

Name: Steven D. Nance

   

Title: Vice President

   

   

SYNDICATION AGENT AND LENDER:   

WELLS FARGO BANK TEXAS, N.A.

   

   

   

By:   /S/ SCOTT GILDEA                            

   

Name: Scott Gildea

   

Title: Assistant Vice President

   

   

DOCUMENTATION AGENT AND LENDER:   

WHITNEY NATIONAL BANK

   

   

   

By:  /S/ HOLLIE L. ERICKSEN                 

   

Name: Hollie L. Ericksen

   

Title: Vice President

   

   

LENDER:   

CREDIT SUISSE FIRST BOSTON

   

   

By:   /S/ WILLIAM S. LUTKINS              

Name: William S. Lutkins

Title: Vice President

   

By:   /S/ DAVID M. KOCZAN                

   

Name: David M. Koczan

   

Title: Associate

   

   

LENDER:   

HIBERNIA NATIONAL BANK

   

   

   

By:     /S/ STEPHEN BIRNBAUM           

   

Name: Stephen Birnbaum

   

Title: Vice President

   

   

   

LENDER:   

NATIONAL BANK OF CANADA

   

   

   

By:     /S/ RANDALL WILHOIR                    

   

Name: Randall Wilhoir

   

Title: Vice President

 

   

By:        /S/ H. JOHN TYLER, III                   

   

Name: H. John Tyler, III

   

Title: Assistant Vice President

   

   

LENDER:   

BANK OF SCOTLAND

   

   

   

By:      /S/ JOSEPH FRATUS                        

   

Name: Joseph Fratus

   

Title: Vice President

   

   

LENDER:   

UNION PLANTERS BANK

   

   

   

By:      /S/ MARK R. PHILLIPS                   

   

Name: Mark R. Phillips

   

Title: Senior Vice President

   

   

LENDER:   

NATEXIS BANQUES POPULAIRES

   

   

   

By:         /S/ TIMOTHY L. POLVADO          

   

Name: Timothy L. Polvado

   

Title: Vice President and Group Manager

   

   

By:       /S/ RENAUD J. D'HERBES               

   

Name: Renaud J. d'Herbes

   

Title: Senior Vice President and Regional Manager

   

LENDER:   

DRESDNER BANK LATEINAMERIKA AG

   

Miami Agency

   

   

   

By:      /S/ ALAN HILLS                                

   

Name: Alan Hills

   

Title: Vice President

   

   

By:       /S/ LISSETTE GALLARDO             

   

Name: Lissette Gallardo

   

Title: Relationship Officer