First Amendment to Amended and Restated Revolving Credit Agreement
First
Amendment to Amended and Restated Revolving Credit
Agreement
This
First Amendment to Amended and Restated Revolving Credit Agreement (herein,
the
“Amendment”)
is
entered into as of August 4, 2006, by and among World Acceptance
Corporation, a South Carolina corporation (the “Borrower”),
the
Banks party hereto, and Xxxxxx X.X. as Agent for the Banks (the “Agent”).
Preliminary
Statements
A.The
Borrower, the Banks, JPMorgan Chase Bank as Co-Agent, and the Agent are parties
to a certain Amended and Restated Revolving Credit Agreement, dated as of
July 20, 2005 (the “Credit
Agreement”).
All
capitalized terms used herein without definition shall have the same meanings
herein as such terms have in the Credit Agreement.
B.The
Borrower has requested that the Banks agree to reduce the Eurodollar Margin,
extend the Termination Date to September 30, 2008 and increase the basket
for Indebtedness for Borrowed Money, and make certain other amendments to the
Credit Agreement, and the Banks are willing to do so under the terms and
conditions set forth in this Amendment.
Now,
Therefore, for
good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
Section 1.
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Amendments.
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Subject
to the satisfaction of the conditions precedent set forth in Section 2
below, the Credit Agreement shall be and hereby is amended as
follows:
1.1.
The
defined term “Eurodollar
Margin”
set
forth in Section 2.1(b) of the Credit Agreement shall be amended and
restated in its entirety to read as follows:
“Eurodollar
Margin”
means
1.85% per annum.
1.2.
The
definition of “Termination
Date”
set
forth in Section 5.1 of the Credit Agreement shall be amended and restated
in its entirety to read as follows:
“Termination
Date”
means
September 30, 2008, or such later date to which the Commitments are
extended pursuant to Section 3.4 hereof, or such earlier date on which the
Commitments are terminated in whole pursuant to Sections 2.9, 9.3 or 9.4
hereof.
1.3.
Section 8.9(e)
of the Credit Agreement (Permitted Indebtedness) shall be amended and restated
in its entirety to read as follows:
(e)other
unsecured Indebtedness for Borrowed Money to any Person (other than to the
Borrower or another Restricted Subsidiary) in an aggregate amount for the
Borrower and all Restricted Subsidiaries not exceeding $10,000,000 at any time
outstanding.
1.4.
Subsection (b)
of Section 8.20 of the Credit Agreement (Reports and Rights to Inspection)
shall be amended by striking the phrase “within 90 days after the close of each
fiscal year of the Borrower” set forth in the first sentence thereof and
inserting in its place the phrase:
“within
120 days after the close of each fiscal year of the Borrower”
Section 2.
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Conditions
Precedent.
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The
effectiveness of this Amendment is subject to the satisfaction of all of the
following conditions precedent:
2.1.
The
Borrower and the Required Banks shall have executed and delivered this
Amendment.
2.2.
The
Restricted Subsidiaries parties to the Subsidiary Guaranty Agreement shall
have
executed and delivered to the Agent their consent to this Amendment in the
form
set forth below.
2.3.
Legal
matters incident to the execution and delivery of this Amendment shall be
satisfactory to the Agent and its counsel.
Section 3.
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Representations.
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In
order
to induce the Banks to execute and deliver this Amendment, the Borrower hereby
represents to the Agent and the Banks that as of the date hereof, after giving
effect to the amendments set forth in Section 1 above, (a) the
representations and warranties set forth in Section 6 of the Credit
Agreement are and shall be and remain true and correct (except that the
representations contained in Section 6.6 shall be deemed to refer to the
most recent financial statements of the Borrower delivered to the Agent) and
(b)
the Borrower is in compliance with the terms and conditions of the Credit
Agreement and no Default or Event of Default exists under the Credit Agreement
or shall result after giving effect to this Amendment.
Section 4.
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Miscellaneous.
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4.1.
Except
as
specifically amended herein, the Credit Agreement shall continue in full force
and effect in accordance with its original terms. Reference to this specific
Amendment need not be made in the Credit Agreement, the Notes, or any other
instrument or document executed in connection therewith, or in any certificate,
letter or communication issued or made pursuant to or with respect to the Credit
Agreement, any reference in any of such items to the Credit Agreement being
sufficient to refer to the Credit Agreement as amended hereby.
4.2.
The
Borrower heretofore executed and delivered, among other things, the Company
Security Agreement and hereby acknowledges and agrees that the security
interests and liens created and provided for therein continue to secure the
payment and performance of the Obligations of the Borrower under the Credit
Agreement as amended hereby entitled to all of the benefits and privileges
set
forth therein.
4.3.
The
Borrower agrees to pay on demand all costs and expenses of or incurred by the
Agent in connection with the negotiation, preparation, execution and delivery
of
this Amendment and the other instruments and documents to be executed and
delivered in connection herewith, including the fees and expenses of counsel
for
the Agent.
4.4.
This
Amendment may be executed in any number of counterparts, and by the different
parties on different counterpart signature pages, all of which taken together
shall constitute one and the same agreement. Any of the parties hereto may
execute this Amendment by signing any such counterpart and each of such
counterparts shall for all purposes be deemed to be an original. Delivery of
executed counterparts of this Amendment by telecopy shall be effective as an
original. This Amendment shall be governed by the internal laws of the State
of
Illinois (without regard to principles of conflicts of laws).
[Signature
Page to Follow]
This
First Amendment to Amended and Restated Revolving Credit Agreement is entered
into as of the date and year first above written.
World Acceptance Corporation | ||
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By: | ||
Name: A. Xxxxxxxxx XxXxxx, III |
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Title: Chief Executive Officer |
Accepted
and agreed to.
Xxxxxx X.X. | ||
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By: | ||
Name _____________________________________ | ||
Title _____________________________________ |
JPMorgan Chase Bank, N.A. | ||
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By: | ||
Name _____________________________________ | ||
Title _____________________________________ |
LaSalle Bank National Association | ||
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By: | ||
Name _____________________________________ | ||
Title _____________________________________ |
Capital One, N.A. f/k/a Hibernia National Bank | ||
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By: | ||
Name _____________________________________ | ||
Title _____________________________________ |
Xxxxx Fargo Financial Preferred Capital, Inc. | ||
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By: | ||
Name _____________________________________ | ||
Title _____________________________________ | ||
Carolina First Bank | ||
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By: | ||
Name _____________________________________ | ||
Title _____________________________________ | ||
Acknowledgement
and Consent
Each
of
the undersigned is a Restricted Subsidiary of World Acceptance Corporation
who
has executed and delivered to the Agent and the Banks the Subsidiary Guaranty
and the Subsidiary Security Agreement. Each of the undersigned hereby
acknowledges and consents to the First Amendment to Amended and Restated
Revolving Credit Agreement set forth above and confirms that the Loan Documents
executed by it, and all of its obligations thereunder, remain in full force
and
effect, and that the security interests and liens created and provided for
therein continue to secure the payment and performance of the Obligations of
the
Borrower under the Credit Agreement after giving effect to the Amendment. Each
of the undersigned acknowledges that the Agent and the Banks are relying on
the
foregoing in entering into the Amendment.
Dated
as
of August 4, 2006.
World
Acceptance Corporation of Alabama
World
Acceptance Corporation of Missouri
World
Finance Corporation of Georgia
World
Finance Corporation of Louisiana
World
Acceptance Corporation of Oklahoma, Inc.
World
Finance Corporation of South Carolina
World
Finance Corporation of Tennessee
WFC
of South Carolina, Inc.
World
Finance Corporation of Illinois
World
Finance Corporation of New Mexico
World
Finance Corporation of Kentucky
WFC
Services, Inc.,
a
South Carolina corporation
World
Finance Corporation of Colorado
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By
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A.
Xxxxxxxxx XxXxxx, III
Its
Chief Executive Officer
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WFC Limited Partnership | ||
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By: | WFC of South Carolina, Inc., as sole general partner | |
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By: | ||
A. Xxxxxxxxx XxXxxx, III |
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Its Chief Executive Officer |
World Finance Corporation of Texas | ||
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By: | ||
Xxxxxxx X. Xxxxxxx, Xx. | ||
Its President |