SNMP Evolve Transition Infrastructure LP

Item 1.01Entry into a Material Definitive Agreement.

On November 22, 2019, Sanchez Midstream Partners LP (the “Partnership”), as borrower, entered into that certain Ninth Amendment to Third Amended and Restated Credit Agreement with Royal Bank of Canada, as administrative agent and collateral agent (the “Agent”) and the lenders party thereto (the “Credit Agreement Amendment”). Pursuant to the Credit Agreement Amendment, the parties agreed to, among other things: (a) extend the maturity date from March 31, 2020 to September 30, 2021; (b) amend the initial aggregate commitment amount under the first lien revolving credit facility to $20.0 million, subject to optional termination and reduction described below (the “Maximum Revolving Credit Amount”); (c) provide that the Partnership may at any time terminate, or from time to time reduce, the Maximum Revolving Credit Amount then in effect, provided that (i) any such reduction is an amount not less than $1 million, and (ii) following such reduction, the Revolving Credit Exposure (as defined in the Credit Agreement Amendment) does not exceed the Maximum Revolving Credit Amount; (d) amend the initial aggregate commitment amount under the first lien term loan facility (the “Term Loan Facility”) to $155.0 million, subject to quarterly amortization and other mandatory prepayments described below; (e) amend the letter of credit sublimit under the revolving credit facility such that it is the least of (i) $2.5 million, (ii) the Maximum Revolving Credit Amount and (iii) the lesser of (A) the positive difference, if any, of the Borrowing Base (as defined in the Credit Agreement Amendment) minus the aggregate outstanding principal amount of the term loans and (B) the Maximum Revolving Credit Amount; (f) starting with the fiscal quarter ending December 31, 2019, require the Partnership to make mandatory amortizing payments of outstanding principal on the Term Loan Facility of $10 million per fiscal quarter; and (g) amend the Total Net Debt to Adjusted EBITDA (each term as defined in the Credit Agreement Amendment) ratio covenant to be less than 3.50 to 1.00 as of the last day of any fiscal quarter commencing with the fiscal quarter ending December 31, 2019.

The Partnership also agreed to pay fees and expenses of the Agent in connection with the Credit Agreement Amendment. The foregoing description of the Credit Agreement Amendment does not purport to be complete and is qualified in its entirety by reference to such document, which is filed as Exhibit 10.1 hereto and incorporated herein by reference.