UNIT CORP: Entering into a Material Definitive Agreement (Form 8-K)

Item 1.01. Conclusion of a significant definitive agreement.

On April 29, 2022, Superior Pipeline Company, LLC (“Superior”), a limited liability company equally owned by the Company and SP Investor Holdings, LLChas entered into an Amended and Restated Credit Agreement (“Credit Agreement”) with BOKF, NA dba Bank of OklahomaCadence Bank, UMB Bank, North America., Arvest Bank,
First Bank of Oklahoma, Mabrey Bank, MapleMark Bankand The Toronto-Dominion Bank,
New York Branch. BOKF, NA is the administrative agent of the lenders.

The credit agreement creates a period of four years, $135 million senior secured revolving credit facility with an option to increase the amount of credit up to $200 million, under certain conditions. Amounts borrowed under the Credit Agreement bear interest annually at a rate, at Superior’s option, equal to (a) SOFR plus the applicable margin of 2.75% to 3.75% or (b) the rate of alternate basis (the greater of (i) the federal funds rate plus 0.5%, (ii) the prime rate and (iii) the SOFR plus 0.10%). Obligations under the credit agreement are secured by, among other things, liens on certain processing plants and collection systems of Superior.

The credit agreement requires Superior to maintain a trailing four-quarter consolidated EBITDA to interest expense ratio of at least 2.50:1.00, and a funded debt to consolidated EBITDA ratio of at most 3.50 for 1.00. In addition, the Credit Agreement contains a number of customary covenants which, among other things, restrict (subject to certain exceptions) Superior’s ability to incur additional indebtedness, create additional liens on its assets, make investments, to pay distributions, to enter into sale and leaseback transactions, to engage in certain transactions with affiliated companies, to engage in mergers or consolidations, to enter into hedging agreements and to acquire or dispose of assets.

Proceeds from the agreement will be used to fund capital expenditures and acquisitions, provide general working capital and issue letters of credit for Superior.

The above description of the Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the Credit Agreement, which should be filed with the Security and Exchange Commission as an attachment to the company’s quarterly report on Form 10-Q for the quarter ended March 31, 2022.


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