Item 1.01 Entry into a Material Definitive Agreement
As previously reported, on
The Forbearance Agreement provided that the forbearance period would terminate
prior to its scheduled expiration if certain early termination milestones were
not met. These early termination milestones effectively required that the
Company reach agreement with the Administrative Agent no later than
On
The First Amendment replaced the original early termination milestones with the
requirement that on
• unwind all of its hedges; and • use all or a portion of the hedge unwind proceeds to repay a portion of the borrowings under the Credit Agreement, together with accrued interest and any applicable break funding payments under the Credit Agreement.
The First Amendment did not change the amount of the hedge unwind proceeds
required for repaying the Credit Agreement borrowings. Therefore, if the total
net cash proceeds are less than or equal to
The Company's hedge counterparties are parties to the First Amendment and have
agreed to unwind the hedges, as long as the Company agrees to the consensual
termination of all hedges in existence on
The First Amendment also provides that such termination of the Company's hedges will not result in an automatic reduction of the Company's borrowing base under the Credit Agreement.
The foregoing descriptions of the Forbearance Agreement and the First Amendment
are a summary only, do not purport to be complete, and are qualified in their
entirety by reference to the complete text of the Forbearance Agreement, which
was filed as Exhibit 99.1 to our Current Report on Form 8-K filed on
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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 of this Current Report on Form 8-K is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
The exhibit listed in the following Exhibit Index is filed as part of this Current Report on Form 8-K.
Exhibit No. Description 99.1 First Amendment to Forbearance Agreement dated as ofJuly 24, 2020 , by and among the Company, the subsidiary guarantors party thereto, certain Lenders identified therein, Royal Bank of Canada, asAdministrative Agent and Issuing Bank , and the hedge counterparties party thereto. 3
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