Item 1.01
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Entry into a Material Definitive Agreement
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Amendment to the Credit Agreement
On June 19, 2019, Roan Resources, LLC, a wholly owned subsidiary of Roan Resources, Inc. (the Company), entered into an amendment
to its Credit Agreement dated as of September 5, 2017 (as amended, amended and restated, supplemented or otherwise modified from time to time, the Credit Agreement) pursuant to the Fifth Amendment to Credit Agreement (the
Amendment) by and among Roan Resources, LLC, as Borrower, the Lenders party thereto and Citibank, N.A., as Administrative Agent.
Among other modifications, the Amendment:
(1) reaffirms the borrowing base under the Credit Agreement at $750 million;
(2) temporarily reduces the current ratio for the test period (i) ending June 30, 2019 to 0.85 to 1.00 and (ii) ending
September 30, 2019 to 0.80 to 1.00;
(3) increases the rates per annum in the borrowing base utilization grid for LIBOR Loans
and ABR Loans by 0.25% over the rates set forth in such borrowing base utilization grid until the current ratio is not less than 1.00 to 1.00;
(4) increases the mortgage coverage requirement from 85% to 95% and allows 30 days after the Amendment closing date to mortgage any
additional properties not already mortgaged; and
(5) restricts the Borrower from making certain restricted payments to the Company
incidental with any transfer of the Borrowers oil and gas properties to the Company permitted under the Credit Agreement.
The
Amendment and reaffirmation of the borrowing base are both subject to certain conditions precedent which must be satisfied prior to effectiveness. A copy of the Amendment is filed as Exhibit 10.1 to this Current Report on Form
8-K
and is incorporated herein by reference, and the foregoing description of the Amendment is qualified in its entirety by reference thereto.
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