FIRST AMENDMENT
Exhibit 10.3
FIRST AMENDMENT, dated as of February 19, 2013 (this “Amendment”), to the CREDIT AGREEMENT, dated as of August 20, 2010 and amended and restated as of March 31, 2011 (as amended, supplemented or modified from time to time, the “Credit Agreement”), among ALLSCRIPTS HEALTHCARE SOLUTIONS, INC., a Delaware corporation, ALLSCRIPTS HEALTHCARE, LLC, a North Carolina limited liability company (individually and collectively, the “Borrower”), the several banks and other financial institutions or entities from time to time parties thereto (the “Lenders”), JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative Agent”) and the other agents party thereto.
W I T N E S S E T H:
WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to the Credit Agreement;
WHEREAS, the Borrower has requested that the Required Lenders approve certain provisions of the Credit Agreement as set forth herein; and
WHEREAS, pursuant to such request, the Required Lenders are willing to consent to such amendments on the terms set forth herein;
NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, the Borrower, the Administrative Agent and the Required Lenders hereby agree as follows:
1. Defined Terms. Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement.
2. Amendments to Section 1.01 (Defined Terms).
(a) Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions in proper alphabetical order:
“ACS Agreement”: the Agreement entered into between Affiliated Computer Services, Inc. and Allscripts Healthcare, LLC on March 31, 2011 to provide services to support the Borrower’s remote hosting services for Sunrise acute care clients along with the related sale of a portion of its hosting equipment and infrastructure for approximately $20 million.
“First Amendment Effective Date”: February [ ], 2013
(b) The definition of “Applicable Pricing Grid” is hereby amended by replacing the table appearing therein in its entirety with the following table:
Total Leverage Ratio |
Applicable Margin for Eurodollar Loans |
Applicable Margin for ABR Loans |
Commitment Fee Rate |
|||||||||||
Level I |
Greater than 2.50 to 1.00 | 2.75 | % | 1.75 | % | 0.45 | % | |||||||
Level II |
Greater than 2.00 to 1.00 but equal to or less than 2.50 to 1.00 | 2.50 | % | 1.50 | % | 0.40 | % | |||||||
Level III |
Greater than 1.50 to 1.00 but equal to or less than 2.00 to 1.00 | 2.00 | % | 1.00 | % | 0.35 | % | |||||||
Level IV |
Greater than 1.00 to 1.00 but equal to or less than 1.50 to 1.00 | 1.75 | % | 0.75 | % | 0.30 | % | |||||||
Level V |
Equal to or less than 1.00 to 1.00 | 1.50 | % | 0.50 | % | 0.25 | % |
(c) The definition of “EBIT” is hereby amended by (i) deleting the word “and” immediately preceding clause (c) thereof and substituting “;” in lieu thereof and (ii) inserting the following new clauses (d) and (e) before the second proviso therein:
“(d) for the Borrower’s fiscal quarters ended during the fiscal year ending December 31, 2013, cash charges recorded during such quarters by the Borrower or any of its Subsidiaries in connection with any facility closures, work force reductions, relocations and product consolidation (provided, that the aggregate amount of cash charges permitted to be added back for all such quarters pursuant to this clause (d) shall not exceed $[29,000,000]) and (e) charges up to the amounts set forth on Schedule 1.1(D) recorded during the fiscal periods specified therein and relating to the items specified therein;”.
(d) The definition of “EBITDA” is hereby amended by (i) deleting the word “and” immediately preceding clause (c) thereof and substituting “;” in lieu thereof and (ii) inserting the following new clauses (d) and (e) before the second proviso therein:
“(d) for the Borrower’s fiscal quarters ended during the fiscal year ending December 31, 2013, cash charges recorded during such quarters by the Borrower or any of its Subsidiaries in connection with any facility closures, work force reductions, relocations and product consolidation (provided, that the aggregate amount of cash charges permitted to be added back for all such quarters pursuant to this clause (d) shall not exceed $29,000,000) and (e) charges up to the amounts set forth on Schedule 1.1(D) recorded during the fiscal periods specified therein and relating to the items specified therein;”.
(e) The definition of “Indebtedness” is hereby amended by adding the following sentence at the end thereof:
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“Notwithstanding anything to the contrary set forth herein, in no event shall payment or any other debt obligations as classified under GAAP of the Borrower pursuant to the ACS Agreement, as in effect on the First Amendment Effective Date, constitute Indebtedness of the Borrower under this Agreement.”
(f) The definition of “Permitted Acquisition” is hereby amended by deleting the ratio “2.0 to 1.0” in clause (f) thereof and substituting in lieu thereof the ratio “2.5 to 1.0”.
3. Amendment to Section 7.6(d) (Restricted Payments). Section 7.6(d) of the Credit Agreement is hereby amended by deleting the ratio “2.00 to 1.0” therein and substituting in lieu thereof the ratio “2.50 to 1.0”.
4. New Schedule to the Credit Agreement. The Credit Agreement is hereby amended by adding Schedule 1.1(D) (Specified Add-Backs) to the Credit Agreement in the form attached hereto as Annex A.
5. Effectiveness. This Amendment shall become effective on the date (the “First Amendment Effective Date”) on which all of the following conditions precedent have been satisfied or waived:
(a) Amendment. The Administrative Agent shall have received a counterpart of this Amendment, executed and delivered by a duly authorized officer of each of the Borrower, the Required Lenders and the Administrative Agent.
(b) Acknowledgement and Consent. The Administrative Agent shall have received an executed Acknowledgement and Confirmation, in the form attached hereto as Annex B, from an authorized officer of each Loan Party.
(c) Representations and Warranties and No Default. The Administrative Agent shall have received a certificate, dated the First Amendment Effective Date and signed by a Responsible Officer of the Borrower, confirming compliance with the conditions set forth in paragraphs (a) and (b) of Section 5.2 of the Credit Agreement as of such date.
(d) Fees. The Administrative Agent shall have received (i) all fees and other amounts due and payable on or prior to the First Amendment Effective Date for which invoices have been presented, including all reasonable out-of-pocket expenses (including reasonable fees, charges and disbursements of counsel) required to be reimbursed or paid by any Loan Party hereunder or under any other Loan Document and (ii) a consent fee payable for the account of each Lender (other than a Defaulting Lender) that has returned an executed signature page to this Amendment to the Administrative Agent at or prior to 5:00 p.m., New York City time on February 12, 2013 (the “Consent Deadline” and each such Lender, a “Consenting Lender”) equal to 0.10% of the sum of (x) the aggregate principal amount of Term Loans, if any, held by such Consenting Lender as of the Consent Deadline and (y) the aggregate amount of the Revolving Commitment, if any, of such Consenting Lender as of the Consent Deadline.
6. Continuing Effect of the Credit Agreement. This Amendment shall not constitute an amendment of any other provision of the Credit Agreement not expressly referred to herein and shall not be construed as a waiver or consent to any further or future action on the part of the Borrower that would require a waiver or consent of the Lenders or the Administrative Agent. Except as expressly amended hereby, the provisions of the Credit Agreement and each other Loan Document are and shall remain in full force and effect. The Borrower and the other parties hereto acknowledge and agree that this Amendment shall constitute a Loan Document.
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7. Counterparts. This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.
8. GOVERNING LAW; WAIVER OF JURY TRIAL. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. EACH PARTY HERETO HEREBY AGREES AS SET FORTH IN SECTION 10.18 OF THE CREDIT AGREEMENT AS IF SUCH SECTION WERE SET FORTH IN FULL HEREIN.
9. Expenses. The Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable out-of-pocket costs and expenses incurred in connection with this Amendment, any other documents prepared in connection herewith and the transaction contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers as of the day and year first above written.
ALLSCRIPTS HEALTHCARE SOLUTIONS, INC. | ||
By | /s/ XXXXXXX X XXXXXXX | |
Name: Xxxxxxx X. Xxxxxxx | ||
Title: Chief Financial Officer | ||
ALLSCRIPTS HEALTHCARE, LLC | ||
By | /s/ XXXXXXX X XXXXXXX | |
Name: Xxxxxxx X. Xxxxxxx | ||
Title: Chief Financial Officer |
JPMORGAN CHASE BANK, N.A., individually, as Administrative Agent and as a Lender | ||
By | /S/ XXXX XXXXXXXX | |
Name: Xxxx Xxxxxxxx | ||
Title: Vice President | ||
PT. Bank Negara Indonesia (Persero) Tbk., as a Lender | ||
By: | /s/ YUDAYAT XXXXXXXX | |
Name: Yudayat Xxxxxxxx | ||
Title: General Manager | ||
By: | /s/ XXXXX XXXXXXXX | |
Name: Xxxxx Xxxxxxxx | ||
Title: Credit Manager | ||
PNC BANK, NATIONAL ASSOCIATION, as a Lender | ||
By: | /s/ X. X. XXXXX | |
Name: X. X. Xxxxx | ||
Title: Senior Vice President | ||
Xxxxx Fargo Bank, N.A., as a Lender | ||
By: | /s/ XXXXX X. XXXXXXX XX. | |
Name: Xxxxx X. Xxxxxxx Xx. | ||
Title: Authorized Signer |
THE BANK OF NOVA SCOTIA, as a Lender | ||
By: | /s/ XXXX XXXXX | |
Name: Xxxx Xxxxx | ||
Title: Managing Director | ||
EAST WEST BANK, as a Lender | ||
By: | /s/ XXXXXX XXXXX | |
Name: Xxxxxx Xxxxx | ||
Title: Vice President | ||
Bank of America, N.A., as a Lender | ||
By: | /s/ XXXXXX XXXXXXX | |
Name: Xxxxxx Xxxxxxx | ||
Title: Vice President | ||
RBS Citizens, as a Lender | ||
By: | /s/ XXXXXXX X. XXXXX | |
Name: Xxxxxxx X. Xxxxx | ||
Title: Vice President | ||
HSBC Bank USA, N.A., as a Lender | ||
By: | /s/ XXX XXXXXXXXXXX | |
Name: Xxx Xxxxxxxxxxx | ||
Title: Vice President |
XXXXX XXX COMMERCIAL BANK, LTD LOS ANGELES BRANCH, as a Lender | ||
By: | /s/ YEN-MAO FANG | |
Name: Yen-Mao Fang | ||
Title: AVP & Manager | ||
Taiwan Cooperative Bank, Ltd., Seattle Branch. Seattle Washington, as a Lender | ||
By: | /s/ MING-XXXX XXXX | |
Name: Ming-Xxxx Xxxx | ||
Title: V.P. and General Manager | ||
Sumitomo Mitsui Banking Corporation, as a Lender | ||
By: | /s/ XXXXX X. XXX | |
Name: Xxxxx X. Xxx | ||
Title: Managing Director | ||
TD Bank, N.A., as a Lender | ||
By: | /s/ XXXXXX XXXX | |
Name: Ms. Xxxxxx Xxxx | ||
Title: Senior Vice President | ||
BARCLAYS BANK PLC, as a Lender | ||
By: | /s/ XXXXXXX X. XXXXXXXXXX | |
Name: Xxxxxxx X. Xxxxxxxxxx | ||
Title: Vice President |
COMPASS BANK, as a Lender | ||
By: | /s/ XXXXXXX XXXXXXXX | |
Name: Xxxxxxx Xxxxxxxx | ||
Title: Senior Vice President | ||
BMO Xxxxxx Bank, N.A., as a Lender | ||
By: | /s/ XXXX XXXXX | |
Name: Xxxx Xxxxx | ||
Title: Managing Director | ||
Citibank, N.A., as a Lender | ||
By: | /s/ XXXXXXXX XXXXXX HEH | |
Name: Xxxxxxxx Xxxxxx Heh | ||
Title: Vice President | ||
Deutsche Bank Trust Company Americas, as a Lender | ||
By: | /s/ XXXXXXX XXX | |
Name: Xxxxxxx Xxx | ||
Title: Assistant Vice President | ||
By: | /s/ XXXXXXX XXXXXXX | |
Name: Xxxxxxx Xxxxxxx | ||
Title: Director |
UBS LOAN FINANCE LLC, as a Lender | ||
By: | /s/ XXXX XXXXX | |
Name: Xxxx Xxxxx | ||
Title: Director | ||
By: | /s/ XXXXX XXXXX | |
Name: Xxxxx Xxxxx | ||
Title: Associate Director | ||
KEYBANK NATIONAL ASSOCIATION, as a Lender | ||
By: | /s/ XXXXXXX X. XXX | |
Name: Xxxxxxx X. Xxx | ||
Title: Vice President & Portfolio Manager | ||
First Tennessee Bank National Association, as a Lender | ||
By: | /s/ XXXXX X. XXXXX, XX. | |
Name: Xxxxx X. Xxxxx, Xx. | ||
Title: Senior Vice President | ||
FIRST HAWAIIAN BANK, as a Lender | ||
By: | /s/ XXXX XXXXXXX | |
Name: Xxxx Xxxxxxx | ||
Title: Senior Vice President | ||
Bank of China, Los Angeles Branch, as a Lender | ||
By: | /s/ XXXXXXX XXXX | |
Name: Xxxxxxx Xxxx | ||
Title: Vice President & Branch Manager |
FIFTH THIRD BANK, as a Lender | ||
By: | /s/ XXXXXXXXX X. XXXX | |
Name: Xxxxxxxxx X. Xxxx | ||
Title: Vice President | ||
U.S. Bank, National Association, as a Lender | ||
By: | /s/ XXXXXX X. XXXX | |
Name: Xxxxxx X. Xxxx | ||
Title: Assistant Vice President | ||
E.Sun Commercial Bank, Ltd., Los Angeles Branch, as a Lender | ||
By: | /s/ XXXXX XXX | |
Name: Xxxxx Xxx | ||
Title: V.P. & Credit Manager | ||
The Northern Trust Company, as a Lender | ||
By: | /s/ XXXX XXXXX | |
Name: Xxxx Xxxxx | ||
Title: Second Vice President |
The Bank of East Asia, Limited, New York Branch, as a Lender | ||
By: | /s/ XXXXX XXX | |
Name: Xxxxx Xxx | ||
Title: SVP | ||
By: | /s/ KITTY SIN | |
Name: Kitty Sin | ||
Title: SVP | ||
SUNTRUST BANK, as a Lender | ||
By: | /s/ XXXX XXXXXXXXXX | |
Name: Xxxx Xxxxxxxxxx | ||
Title: Director | ||
UNION BANK, N.A., as a Lender | ||
By: | /s/ XXXXX XXXXXXX | |
Name: Xxxxx Xxxxxxx | ||
Title: Vice President | ||
The Bank of Tokyo-Mitsubishi UFJ, Ltd., as a Lender | ||
By: | /s/ XXXXX XXXXXXX | |
Name: Xxxxx Xxxxxxx | ||
Title: Vice President | ||
MIZUHO CORPORATE BANK, LTD., as a Lender | ||
By: | /s/ XXXXXXX X. XXXX | |
Name: Xxxxxxx X. Xxxx | ||
Title: Authorized Signatory |
ANNEX A
Schedule 1.1(D)
Specified Add-Backs
Fiscal Quarter Ended March 31, 2012 |
Fiscal Quarter Ended June 30, 2012 |
Fiscal Quarter Ended September 30, 2012 |
Fiscal Quarter Ended December 31, 2012 |
|||||||||||||
Executive related (severance/retention) |
— | — | — | $ | 5,000,000 | |||||||||||
Other severance/retention |
— | $ | 1,800,000 | $ | 600,000 | $ | 700,000 | |||||||||
Shareholder litigation/strategic alternatives/board matters |
$ | 3,100,000 | $ | 2,700,000 | $ | 2,900,000 | $ | 2,800,000 | ||||||||
Merger related/other |
$ | 1,500,000 | $ | 1,300,000 | $ | 800,000 | $ | 200,000 | ||||||||
Bad debt reserve in respect of aged accounts receivable |
— | — | — | $ | 9,700,000 | |||||||||||
Total |
$ | 4,600,000 | $ | 5,800,000 | $ | 4,300,000 | $ | 18,400,000 |
ANNEX B
ACKNOWLEDGEMENT AND CONFIRMTATION
Each of the parties hereto hereby acknowledges and consents to the First Amendment, dated as of February , 2013 (the “Amendment”), to the Credit Agreement, dated as of August 20, 2010 and amended and restated as of March 31, 2011 (as amended, supplemented or modified from time to time, the “Credit Agreement”; capitalized terms used herein, but not defined, shall have the meanings set forth in the Credit Agreement), among ALLSCRIPTS HEALTHCARE SOLUTIONS, INC., a Delaware corporation, ALLSCRIPTS HEALTHCARE, LLC, a North Carolina limited liability company, the several banks and other financial institutions or entities from time to time parties thereto and JPMORGAN CHASE BANK, N.A., as administrative agent, and agrees with respect to each Loan Document to which it is a party:
(a) all of its obligations, liabilities and indebtedness under such Loan Document shall remain in full force and effect on a continuous basis regardless of the effectiveness of the Amendment; and
(b) all of the Liens and security interests created and arising under such Loan Document remain in full force and effect on a continuous basis, and the perfected status and priority of each such Lien and security interest continues in full force and effect on a continuous basis, unimpaired, uninterrupted and undischarged, regardless of the effectiveness of the Amendment, as collateral security for its obligations, liabilities and indebtedness under the Credit Agreement and under its guarantees in the Loan Documents.
THIS ACKNOWLEDGMENT AND CONFIRMATION AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS ACKNOWLEDGMENT AND CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
This Acknowledgment and Confirmation may be executed by one or more of the parties to this Acknowledgement and Confirmation on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Acknowledgement and Confirmation by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof.
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[LOAN PARTIES] | ||
By |
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Name: | ||
Title: |