UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

 

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):    September 25, 2014 (September 19, 2014)

 

EV Energy Partners, L.P.

(Exact name of registrant as specified in charter)

 

Delaware

(State of Incorporation)

001-33024

(Commission File No.)

20-4745690

(I.R.S. Employer Identification No.)

 

1001 Fannin, Suite 800, Houston, Texas

(Address of Principal Executive Offices)

77002

(Zip Code)

 

Registrant’s telephone number, including area code: (713) 651-1144

 

 

 

(former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

  

Item 1.01 Entry into a Material Definitive Agreement.

 

EV Energy Partners, L.P. (the “Partnership”) entered into a Sixth Amendment to Second Amended and Restated Credit Agreement effective on September 19, 2014.  The Sixth Amendment waives certain provisions of the credit facility to permit the Partnership to sell its interest in Cardinal Gas Services, L.L.C.

 

A copy of this Sixth Amendment is filed as Exhibit 10.1 to this report and is incorporated herein by reference.

 

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

 

The disclosure set forth in Item 1.01 is incorporated into this item by reference.

 

Item 7.01 Regulation FD Disclosure.

 

On September 23, 2014, the Partnership issued a press release announcing its Agreement to Divest Its Interest in Cardinal Gas Services.  A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference.

 

In accordance with General Instruction B.2 of Form 8-K, the information in the attached Exhibit 99.1 is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

  

Item 9.01 Financial Statements and Exhibits. (Information furnished in this Item 9.01 is furnished pursuant to Item 7.01.)

 

  (d) Exhibits.

  

  10.1 Sixth Amendment dated September 19, 2014 to Second Amended and Restated Credit Agreement
     
  99.1 Press Release dated September 23, 2014, regarding EV Energy Partners Agreement to Divest Its Interest in Cardinal Gas Services

 

 
 

   

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  EV Energy Partners, L.P.
     
Dated: September 25, 2014 By: /s/ MICHAEL E. MERCER 
    Michael E. Mercer  
   

Senior Vice President and Chief Financial Officer of EV

Management LLC, general partner of EV Energy GP, L.P.,

general partner of EV Energy Partners, L.P.  

 

 
 

  

EXHIBIT INDEX

 

Exhibit No.   Description
10.1   Sixth Amendment dated September 19, 2014 to Second Amended and Restated Credit Agreement
99.1   Press Release dated September 23, 2014, regarding EV Energy Partners Agreement to Divest Its Interest in Cardinal Gas Services

 

 

 

 

 

Exhibit 10.1

 

SIXTH AMENDMENT

 

TO

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

DATED AS OF

 

SEPTEMBER 19, 2014

 

AMONG

 

EV PROPERTIES, L.P.,

 

as Borrower,

 

THE GUARANTORS,

 

JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent,

 

and

 

The Lenders Signatory Hereto

 

 
 

  

SIXTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

This SIXTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “ Sixth Amendment ”) dated as of September 19, 2014, is among EV PROPERTIES, L.P., a Delaware limited partnership (the “ Borrower ”); each of the undersigned guarantors (the “ Guarantors ”, and together with the Borrower, the “ Obligors ”); JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, together with its successors, the “ Administrative Agent ”); and the Lenders signatory hereto.

 

Recitals

 

A.           The Borrower, the Administrative Agent and the Lenders are parties to that certain Second Amended and Restated Credit Agreement dated as of April 26, 2011 (as amended by that certain First Amendment to Second Amended and Restated Credit Agreement dated as of December 21, 2011, by that certain Second Amendment to Second Amended and Restated Credit Agreement dated as of March 29, 2012, by that certain Third Amendment to Second Amended and Restated Credit Agreement dated as of September 27, 2012, by that certain Fourth Amendment to Second Amended and Restated Credit Agreement dated as of February 26, 2013, and by that certain Fifth Amendment to Second Amended and Restated Credit Agreement dated as of August 7, 2014, the “ Credit Agreement ”), pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower.

 

B.           The Borrower, the Administrative Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement as more fully set forth herein.

 

C.           NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.           Defined Terms . Each capitalized term which is defined in the Credit Agreement, but which is not defined in this Sixth Amendment, shall have the meaning ascribed such term in the Credit Agreement. Unless otherwise indicated, all section references in this Sixth Amendment refer to sections of the Credit Agreement.

 

Section 2.           Amendments to Credit Agreement .

 

2.1            Amendments to Section 1.02 .

 

(a)           The definitions of “Agreement” and “Senior Secured Funded Debt” are hereby amended in their respective entireties to read as follows:

 

Agreement ” means this Second Amended and Restated Credit Agreement, including the Schedules and Exhibits hereto, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, and as the same may be amended, modified or supplemented from time to time.

 

Page 1
 

  

“Senior Secured Funded Debt” means any Debt included in the definition of “Total Debt” which is secured by a Lien on the Properties of the Borrower or any Guarantor, except for any Debt secured by a Lien on the equity interests of EVEP Redbird permitted under Section 9.03(f).

 

(b)           The following definitions are hereby added where alphabetically appropriate to read as follows:

 

EVEP Redbird ” means CGS Nine LLC, a Delaware limited liability company.

 

Sixth Amendment ” means that certain Sixth Amendment to Second Amended and Restated Credit Agreement, dated as of September 19, 2014, among the Borrower, the Guarantors, the Administrative Agent and the Lenders party thereto.

 

Sixth Amendment Effective Date ” has the meaning set forth in the Sixth Amendment.

 

2.2            Amendment to Section 9.02 . Section 9.02 is hereby amended to insert the following Section 9.02(g) which reads in its entirety as follows:

 

(g)          Debt incurred by EVEP Redbird in a principal amount of approximately $80,000,000; provided that such Debt is non-recourse to the Parent, the Borrower and the other Subsidiaries of the Parent.

 

2.3            Amendment to Section 9.03 . Section 9.03 is hereby amended to insert the following Section 9.03(f) which reads in its entirety as follows:

 

(f)          Liens on Equity Interests in Cardinal and EVEP Redbird to secure Debt contemplated by Section 9.02(g); provided that such Liens attach only to the Equity Interests being pledged as collateral to secure such Debt and the proceeds thereof and are otherwise non-recourse to the Parent, the Borrower and its Subsidiaries.

 

2.4            Amendment to Section 9.12 . Section 9.12 is hereby amended to delete the word “and” immediately prior to the beginning of Section 9.12(e) and to insert at the end of such Section the following new Section 9.12(f) which reads in its entirety as follows:

 

“and (f) the sale of all of any portion of any Investment permitted by Section 9.05(n)”.

 

2.5            Waiver of Section 8.14(b) . To the extent it would otherwise be required to comply, the parties agree that EVEP Redbird shall not be required to comply with Section 8.14(b) while it remains obligated to pay the Debt permitted to be incurred under Section 9.02(g).

 

Page 2
 

  

Section 3.           Conditions Precedent . This Sixth Amendment shall become effective on the date (such date, the “ Sixth Amendment Effective Date ”) when each of the following conditions is satisfied (or waived in accordance with Section 12.02):

 

3.1            The Administrative Agent shall have received from the Majority Lenders and the Obligors counterparts (in such number as may be requested by the Administrative Agent) of this Sixth Amendment signed on behalf of such Persons.

 

3.2            Both before and immediately after giving effect to this Sixth Amendment, no Default shall have occurred and be continuing.

 

3.3            The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably require.

 

The Administrative Agent is hereby authorized and directed to declare this Sixth Amendment to be effective (and the Sixth Amendment Effective Date shall occur) when it has received documents confirming or certifying, to the satisfaction of the Administrative Agent, compliance with the conditions set forth in this Section 3 or the waiver of such conditions as permitted in Section 12.02. Such declaration shall be final, conclusive and binding upon all parties to the Credit Agreement for all purposes.

 

Section 4.           Miscellaneous .

 

4.1            Confirmation . The provisions of the Credit Agreement, as amended by this Sixth Amendment, shall remain in full force and effect following the Sixth Amendment Effective Date.

 

4.2            Ratification and Affirmation; Representations and Warranties . Each Obligor hereby (a) acknowledges the terms of this Sixth Amendment; (b) ratifies and affirms its obligations under, and acknowledges its continued liability under, each Loan Document and agrees that each Loan Document remains in full force and effect as expressly amended hereby; (c) agrees that from and after the Sixth Amendment Effective Date each reference to the Credit Agreement in the Guaranty Agreement and the other Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this Sixth Amendment; and (d) represents and warrants to the Lenders that as of the date hereof: (i) all of the representations and warranties contained in each Loan Document are true and correct in all material respects (without duplication of materiality), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such representations and warranties shall continue to be true and correct in all material respects (without duplication of materiality) as of such specified earlier date, (ii) no Default has occurred and is continuing and (iii) no event, development or circumstance has have occurred or exists that has resulted in, or could reasonably be expected to have, a Material Adverse Effect.

 

4.3            Counterparts . This Sixth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Sixth Amendment by telecopy, facsimile or email transmission shall be effective as delivery of a manually executed counterpart of this Sixth Amendment.

 

Page 3
 

  

4.4            No Oral Agreement . This Sixth Amendment, the Credit Agreement and the other Loan Documents executed in connection herewith and therewith represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous, or unwritten oral agreements of the parties. There are no subsequent oral agreements between the parties.

 

4.5            GOVERNING LAW . THIS SIXTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

4.6            Payment of Expenses . In accordance with Section 12.03, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and reasonable expenses incurred in connection with this Sixth Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.

 

4.7            Severability . Any provision of this Sixth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

4.8            Successors and Assigns . This Sixth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

[ Signature Pages Follow ]

 

Page 4
 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Sixth Amendment to be duly executed effective as of the Sixth Amendment Effective Date.

 

BORROWER: EV PROPERTIES, L.P.
   
  By: EV Properties GP, LLC, its general partner
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer
     
PARENT: EV ENERGY PARTNERS, L.P.
     
  By: EV ENERGY GP, L.P.,
    its general partner
     
    By:  EV MANAGEMENT, LLC, its general partner
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer
     
GUARANTORS: EV PROPERTIES GP, LLC
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  ENERVEST PRODUCTION PARTNERS, LTD.
  By: EVPP GP, LLC,
    its general partner
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer
     
  EVPP GP, LLC
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer
     
  CGAS PROPERTIES, L.P.
     
  By: EVCG GP, LLC,
    its general partner
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer
     
  ENERVEST-CARGAS, LTD.
     
  By: EVPP GP, LLC,
    its general partner
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  EVCG GP, LLC
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer
     
  ENERVEST MONROE MARKETING, LTD.
     
  By: EVPP GP, LLC, its general partner
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer
   
  ENERVEST MONROE GATHERING, LTD.
     
  By: EVPP GP, LLC, its general partner
     
  By: /s/ MICHAEL E. MERCER
    Michael E. Mercer
    Senior Vice President and Chief
    Financial Officer

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

   

ADMINISTRATIVE AGENT: JPMORGAN CHASE BANK, N.A. , as
  Administrative Agent and a Lender
     
  By: /s/ RONALD DIERKER
    Name: Ronald Dierker
    Title: Authorized Officer

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

LENDERS: WELLS FARGO BANK, NATIONAL ASSOCIATION , as a Lender
     
  By: /s/ BETSY JOCHER
    Name: Betsy Jocher
    Title: Director

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  COMPASS BANK , as a Lender
   
  By: /s/ RHIANNA DISCH
    Name: Rhianna Disch
    Title: Vice President

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  CITIBANK, N.A. , as a Lender
   
  By: /s/ EAMON BAQUI
    Name: Eamon Baqui
    Title: Vice President

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  COMERICA BANK , as a Lender
   
  By: /s/ WILLIAM ROBINSON
    Name: William Robinson
    Title: Vice President

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK , as a Lender
   
  By: /s/ MICHAEL WILLIS
    Name: Michael Willis
    Title: Managing Director
       
  By: /s/ DIXON SCHULTZ
    Name: Dixon Schultz
    Title: Managing Director

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  ING CAPITAL LLC , as a Lender
     
  By: /s/ JULI BIESER
    Name: Juli Bieser
    Title: Director
     
  By: /s/ CHARLES HALL
    Name: Charles Hall
    Title: Managing Director

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  ROYAL BANK OF CANADA , as a Lender
   
  By: /s/ MARK LUMPKIN, JR.
    Name: Mark Lumpkin, Jr.
    Title: Authorized Signatory

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  THE BANK OF NOVA SCOTIA , as a Lender
   
  By: /s/ ALAN DAWSON
    Name: Alan Dawson
    Title: Director

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  MUFG UNION BANK, N.A. (fka, Union Bank N.A.) , as a Lender
     
  By: /s/ DAVID HELFFRICH
    Name: David Helffrich
    Title: Vice President

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  U.S. BANK NATIONAL ASSOCIATION , as a Lender
     
  By: /s/ JOHN C. LOZANO
    Name: John C. Lozano
    Title: Vice President

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  AMEGY BANK NATIONAL ASSOCIATION , as a Lender
     
  By: /s/ THOMAS KLEIDERER
    Name: Thomas Kleiderer
    Title: Vice President

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH , as a Lender
       
  By: /s/ MICHAEL SPAIGHT
    Name: Michael Spaight
    Title: Authorized Signatory
       
  By: /s/ VIPUL DHADDA
    Name: Vipul Dhadda
    Title: Authorized Signatory

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 
 

  

  FROST BANK , as a Lender
   
  By: /s/ MATTHEW SHANDS
    Name: Matthew Shands
    Title: Assistant Vice President

 

Sixth Amendment to Second Amended and Restated Credit Agreement
Signature Page

 

 

 

 

Exhibit 99.1

 

EV Energy Partners Announces Agreement to Divest Its Interest in Cardinal Gas Services

 

HOUSTON, September 23, 2014 /PRNewswire/ — EV Energy Partners, L.P. (NASDAQ: EVEP) today announced it has signed an agreement to divest its nine percent interest in Cardinal Gas Services, L.L.C., (CGS) to E1 and a Korean consortium led by Samchully for $162 million, which includes estimated purchase price adjustments of approximately $18 million. This sale is being made in conjunction with TOTAL E&P USA, INC., which has also agreed to divest its 25 percent interest in CGS. The transaction is expected to close in mid-October 2014 and is subject to regulatory approval, tag-along rights and approval of the other member of CGS, as well as customary closing conditions and purchase price adjustments. Upon closing, EVEP intends to use the net proceeds of the disposition to repay amounts outstanding under its revolving credit facility. Availability under the revolving credit facility may be used to fund future activities, including acquisitions of oil and natural gas properties.

 

EV Energy Partners, L.P. is a master limited partnership engaged in acquiring, producing and developing oil and natural gas properties. More information about EVEP is available on the Internet at http://www.evenergypartners.com.

 

(code #: EVEP/G)

 

This press release includes "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the partnership expects, believes or anticipates will or may occur in the future are forward-looking statements. Statements regarding the ability to close the sale of Cardinal Gas Services and the use of proceeds are forward looking statements.  Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of EVEP, which may cause our actual results to differ materially from those implied or expressed by the forward-looking statements. These include risks relating to the ability to obtain regulatory and Cardinal Gas Services required member approvals, ability to satisfy closing conditions and requirements, and other important factors that could cause actual results to differ materially from those projected.  Additional risks are described in the EVEP's reports filed with the Securities and Exchange Commission.

 

Any forward-looking statement speaks only as of the date on which such statement is made and EVEP undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

 

EV Energy Partners, L.P., Houston
Michael E. Mercer

713-651-1144
http://www.evenergypartners.com