Item 1.01 Entry into a Material Definitive Agreement.
On
• Reduces the borrowing base under the Credit Agreement from$215.0 million to$190.0 million . • Amends and waives certain hedging requirements for projected natural gas production volumes of the Company to the extent that certain identified existing hedge contracts may cause non-compliance with minimum swap requirements for hedged volumes for any test date related to any calendar quarterly period ended on or beforeDecember 31, 2022 and requires that all natural gas hedge contracts entered into afterDecember 13, 2020 until theDecember 31, 2022 test date (or such earlier date as provided in the Fifth Amendment) shall be in the form of swaps and not collars or puts until swaps represent at least 50% of natural gas hedge positions for all months required to be hedged by the Credit Agreement. • Establishes procedures for the Company to propose additional hedge counterparties and directs the administrative agent to enter into hedge intercreditor agreements with one or more hedge counterparties from time to time. • Establishes a customary anti-cash hoarding prepayment requirement in the event the cash balances of the Company exceed$25.0 million (subject to customary adjustments) at the end of any calendar month.
Under the Fifth Amendment, the lenders under the Credit Agreement have also
consented to certain conforming amendments necessitated by the Fifth Amendment
proposed to be made to that certain Intercreditor Agreement among
As of
The foregoing description of the Fifth Amendment does not purport to be complete and is qualified in its entirety by reference to the Fifth Amendment, a copy of which is attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated by reference herein.
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Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 above hereby is incorporated into this Item 2.03 by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. The following exhibits are included as part of this Current Report on Form 8-K:
Exhibit Number Description
10.1* Fifth Amendment to the Sixth Amended and Restated Credit Agreement,
dated as ofJanuary 6, 2021 , by and amongW&T Offshore, Inc. ,Toronto Dominion (Texas) LLC , as administrative agent and the various agents and lenders and other parties thereto. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
* Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of
Regulation S-K. A copy of any omitted schedule or exhibit will be furnished
supplementally to the
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