Item 1.01 Entry into a Material Definitive Agreement.
On June 27, 2019, EOG Resources, Inc. (EOG) entered into a $2.0 billion senior unsecured Revolving Credit Agreement (New Facility)
among EOG, JPMorgan Chase Bank, N.A., as administrative agent, the financial institutions as bank parties thereto (Banks) and the other parties thereto.
The New Facility replaces EOG’s $2.0 billion senior unsecured Revolving Credit Agreement, dated as of July 21, 2015, among EOG,
JPMorgan Chase Bank, N.A., as administrative agent, the financial institutions as bank parties thereto and the other parties thereto (2015 Facility), which had a scheduled maturity date of July 21, 2020 and which was terminated by EOG (without
penalty), effective as of June 27, 2019, in connection with the completion of the New Facility. There were no borrowings or letters of credit outstanding under the 2015 Facility as of the closing of the New Facility and the termination of the
2015 Facility. The 2015 Facility is referenced under Item 9.01 below.
The New Facility has a scheduled maturity date of
June 27, 2024 and includes an option for EOG to extend, on up to two occasions, the term for successive
one-year
periods, subject to, among certain other terms and conditions, the consent of the Banks
holding greater than 50% of the commitments then outstanding under the New Facility. The New Facility (i) commits the Banks to provide advances up to an aggregate principal amount of $2.0 billion at any one time outstanding, with an option
for EOG to request increases in the aggregate commitments to an amount not to exceed $3.0 billion, subject to certain terms and conditions, and (ii) includes a swingline subfacility and a letter of credit subfacility. Advances under the
New Facility will accrue interest based, at EOG’s option, on either the London InterBank Offered Rate (LIBOR) plus an applicable margin, or the Base Rate (as defined in the New Facility) plus an applicable margin. The applicable margin used in
connection with interest rates and fees will be based on EOG’s credit rating for its senior unsecured long-term debt at the applicable time.
The New Facility contains representations, warranties, covenants and events of default that we believe are customary for investment grade,
senior unsecured commercial bank credit agreements, including a financial covenant for the maintenance of a ratio of Total Debt to Total Capitalization (as such terms are defined in the New Facility) of no greater than 65%.
The foregoing description of the New Facility does not purport to be complete and is qualified in its entirety by reference to the New
Facility, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.
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