FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
Exhibit 10.2
Execution Version
FIRST AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of February 13, 2019 (this “Amendment”), by and among CARGO AIRCRAFT MANAGEMENT, INC., a Florida corporation (the “Borrower”), AIR TRANSPORT SERVICES GROUP, INC., a Delaware corporation (“Holdings”), each of the Guarantors party hereto, each of the financial institutions party hereto as “Lenders” and SUNTRUST BANK, in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”).
W I T N E S S E T H:
WHEREAS, the Borrower, Holdings, the Lenders and the Administrative Agent are parties to that certain Second Amended and Restated Credit Agreement dated as of November 9, 2018 (the “Credit Agreement”); and
WHEREAS, the Borrower has requested that the Lenders modify the collateral ratio in Section 9.14 of the Credit Agreement as more fully described herein; and
WHEREAS, the Lenders party to this Amendment and the Administrative Agent are willing to modify Section 9.14 of the Credit Agreement on and subject to the terms and conditions herein.
NOW, THEREFORE, for and in consideration of the above premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows:
1.Defined Terms. Capitalized terms which are used herein without definition and which are defined in the Credit Agreement shall have the same meanings herein as in the Credit Agreement.
2.Amendment to Credit Agreement. The Credit Agreement is hereby amended by deleting Section 9.14 in its entirety and substituting in lieu thereof the following new Section 9.14 to read in its entirety as follows:
Section 9.14 Collateral Ratio. Holdings will not at any time permit the Collateral to Outstanding Loan Ratio to be less than (A) 1.02:1.00 at any time from the Closing Date through and including December 30, 2019, (B) 1.15:1.00 at any time from December 31, 2019 through and including December 30, 2020 and (C) 1.25:1.00 at any time on and after December 31, 2020. If the Collateral to Outstanding Loan Ratio falls below the required minimum for any Test Period, the Borrower shall as soon as reasonably practicable, but not in any event later than 45 days thereafter, cause one or more Qualified Aircraft to be admitted to the Collateral Pool such that the Collateral to Outstanding Loan Ratio will be in compliance with this Section 9.14 as of any such Test Period.
3.Conditions Precedent to Effectiveness. The effectiveness of this Amendment is subject to the truth and accuracy of the warranties and representations set forth in Sections 4 and 5 below and receipt by the Administrative Agent of each of the following, each of which shall be in form and substance satisfactory to Administrative Agent:
(a) This Amendment, duly executed and delivered by the Borrower, Holdings, the Required Lenders and the Administrative Agent;
(b) A certificate of the Borrower dated as of the date hereof signed by an Authorized Officer of the Borrower certifying that, before and after giving effect to the amendments contemplated by this Amendment (i) the representations and warranties contained in Section 7 of the Credit Agreement and the other Credit Documents are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date and (ii) no Default or Event of Default exists before or after giving effect to the amendments contemplated by this Amendment;
(c) A Reaffirmation of Obligations Under Credit Documents (the “Reaffirmation”) dated as of the date hereof duly executed by each Credit Party, in the form of Exhibit I attached hereto; and
(d) Such other documents as the Administrative Agent may reasonably request.
4.Representations. Each of the Borrower and Holdings represents and warrants to the Administrative Agent and the Lenders that:
(a)Power and Authority. Each of the Borrower and the other Credit Parties have the power and authority to execute, deliver and perform the terms and provisions of this Amendment and the Credit Agreement, as amended by this Amendment, and have taken all necessary corporate action to duly authorize the execution, delivery and performance of this Amendment. Each of this Amendment and the Credit Agreement, as amended by this Amendment, constitutes the legal, valid and binding obligation of the Borrower and Holdings enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles.
(b)No Violation. The execution, delivery and performance by the Borrower and the other Credit Parties of this Amendment, and compliance by them with the terms and provisions of the Credit Agreement, as amended by this Amendment: (i) will not contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or federal, state or local Governmental Authority, (ii) will not conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien upon any of the property or assets of any Credit Party pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other agreement, contract or instrument, to which any Credit Party is a party or by which they or any of their property or assets is bound or
-2-
to which they may be subject or (iii) will not violate any provision of the certificate or articles of incorporation or bylaws of the Borrower, Holdings or any other Credit Party.
(c)Governmental Approvals; Consents. No order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except for those that have otherwise been obtained or made on or prior to the date of the effectiveness of this Amendment and which remain in full force and effect on such date), or exemption by, any Governmental Authority, and no consent, approval, authorization, registration, filing or order under any Contractual Obligation or applicable law, is required to authorize, or is required in connection with, (i) the execution, delivery and performance of this Amendment by the Borrower or Holdings or (ii) the legality, validity, binding effect or enforceability of the Credit Agreement, as amended by this Amendment, against the Borrower or Holdings.
(d)No Default. No Default or Event of Default has occurred and is continuing as of the date hereof and no Default or Event of Default will exist immediately after giving effect to this Amendment.
(e)No Impairment. The execution, delivery, performance and effectiveness of this Amendment will not: (a) impair the validity, effectiveness or priority of the Liens granted pursuant to any Credit Document, and such Liens continue unimpaired with the same priority to secure repayment of all of the applicable Obligations, whether heretofore or hereafter incurred, and (b) require that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens.
(f)Credit Parties. The list of signatories to the Reaffirmation represents a true, correct and complete list of all Persons who are required by the terms of the Credit Documents to be or to become a Credit Party as of the date hereof.
(g)Disclosure. As of the date hereof, all information (other than projections, other forward-looking information and information of a general economic or industry-specific nature) that has been made available concerning the Credit Parties and/or the transactions contemplated by this Amendment prepared by, or on behalf of, the Borrower or Holdings or by any of their respective representatives or affiliates, and made available to any Lender or the Administrative Agent in connection with the transactions contemplated by this Amendment on or before the date hereof, when taken as a whole, did not, when furnished, contain any untrue statements of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made.
5.Reaffirmation of Representations. Each of the Borrower and Holdings hereby repeats and reaffirms all representations and warranties made to the Administrative Agent and the Lenders in the Credit Agreement and the other Credit Documents on and as of the date hereof (and after giving effect to this Amendment) with the same force and effect as if such representations and warranties were set forth in this Amendment in full (except to the extent that such representations and warranties relate expressly to an earlier date, in which case such representations and warranties were true and correct as of such earlier date).
-3-
6.No Further Amendments; Ratification of Liability. Except as expressly amended or waived hereby, the Credit Agreement and each of the other Credit Documents shall remain in full force and effect in accordance with their respective terms, and the Lenders and the Administrative Agent hereby require strict compliance with the terms and conditions of the Credit Agreement and the other Credit Documents in the future. Each of the Borrower and Holdings hereby (i) restates, ratifies, confirms and reaffirms its respective liabilities, payment and performance obligations (contingent or otherwise) and each and every term, covenant and condition set forth in the Credit Agreement and the other Credit Documents to which it is a party, all as amended by this Amendment, and the liens and security interests granted, created and perfected thereby and (ii) acknowledges and agrees that this Amendment shall not in any way affect the validity and enforceability of any Credit Document to which it is a party, or reduce, impair or discharge the obligations of the Borrower or Holdings or the Collateral granted to the Administrative Agent and/or the Lenders thereunder. The Lenders’ agreement to the terms of this Amendment or any other amendment of the Credit Agreement or any other Credit Document shall not be deemed to establish or create a custom or course of dealing between the Borrower, Holdings or the Lenders, or any of them. This Amendment shall be deemed to be a “Credit Document” for all purposes under the Credit Agreement. After the effectiveness of this Amendment, each reference to the Credit Agreement in any of the Credit Documents shall be deemed to be a reference to the Credit Agreement as amended by this Amendment.
7.Other Provisions.
(a)This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original, and all counterparts, taken together, shall constitute but one and the same document.
(b)The Borrower agrees to reimburse the Lenders and the Administrative Agent on demand for all reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees) incurred by such parties in negotiating, documenting and consummating this Amendment, the other documents referred to herein, and the transactions contemplated hereby and thereby.
(c)THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.
(d)THIS AMENDMENT CONSTITUTES THE ENTIRE CONTRACT AMONG THE PARTIES HERETO RELATING TO THE SUBJECT MATTER HEREOF AND SUPERSEDES ANY AND ALL PREVIOUS DISCUSSIONS, CORRESPONDENCE, AGREEMENTS AND OTHER UNDERSTANDINGS, WHETHER ORAL OR WRITTEN, RELATING TO THE SUBJECT MATTER HEREOF.
(e)In consideration of the amendments contained herein, each of the Borrower and Holdings hereby waives and releases each of the Lenders and the Administrative Agent from any
-4-
and all known claims and defenses with respect to the Credit Agreement and the other Credit Documents and the transactions contemplated thereby.
(f)Each of the Borrower and Holdings agrees to take all further actions and execute such other documents and instruments as the Administrative Agent may from time to time reasonably request to carry out the transactions contemplated by this Amendment, the Credit Documents and all other agreements executed and delivered in connection herewith.
(g)THE PARTIES HERETO HAVE ENTERED INTO THIS AMENDMENT SOLELY TO AMEND TERMS OF THE CREDIT AGREEMENT. THE PARTIES DO NOT INTEND THIS AMENDMENT NOR THE TRANSACTIONS CONTEMPLATED HEREBY TO BE, AND THIS AMENDMENT AND THE TRANSACTION CONTEMPLATED HEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE BORROWER OR HOLDINGS UNDER OR IN CONNECTION WITH THE CREDIT AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS.
-5-
IN WITNESS WHEREOF, the Borrower, Holdings, the Lenders and the Administrative Agent have caused this First Amendment to Second Amended and Restated Credit Agreement to be duly executed by their respective duly authorized officers and representatives as of the day and year first above written.
CARGO AIRCRAFT MANAGEMENT, INC.
By: /s/ W. Xxxxxx Xxxxx
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
By: /s/ Xxxxxx X. Hete
Name: Xxxxxx X. Hete
Title: President & CEO
[Signatures Continue on Following Pages]
SUNTRUST BANK, as Administrative Agent and as a Lender
By: /s/ Xxxxx Xxxx
Name: Xxxxx Xxxx
Title: Vice President
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
BANK OF AMERICA, N.A., as a Lender | |
By: /s/ Xxxxx X. Xxxx | |
Name: Xxxxx X. Xxxx | |
Title: Senior Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
PNC BANK, NATIONAL ASSOCIATION, as a Lender | |
By: /s/ Xxxxx Xxxxxxx | |
Name: Xxxxx Xxxxxxx | |
Title: Senior Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
JPMORGAN CHASE BANK, N.A., as a Lender | |
By: /s/ Xxxxxx Xxxxx | |
Name: Xxxxxx X. Xxxxx | |
Title: Authorized Officer | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
REGIONS BANK, as a Lender | |
By: /s/ Xxx Xxxxxxx | |
Name: Xxx Xxxxxxx | |
Title: Director | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
BRANCH BANKING AND TRUST COMPANY, as a Lender | |
By: /s/ Xxxxxxx Xxxxxxxx | |
Name: Xxxxxxx Xxxxxxxx | |
Title: Assistant Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
COMPASS BANK, as a Lender | |
By: /s/ Xxxx Xxxx | |
Name: Xxxx Xxxx | |
Title: Senior Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
XXXXXXX XXXXX BANK USA, as a Lender | |
By: /s/ Xxxxx Xxxxxxx | |
Name: Xxxxx Xxxxxxx | |
Title: Authorized Signatory | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
CIBC BANK USA, as a Lender | |
By: /s/ Xxxx Xxxxx | |
Name: Xxxx Xxxxx | |
Title: Managing Director | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
THE NORTHERN TRUST COMPANY, as a Lender | |
By: /s/ Xxxx Xx Xxxxx | |
Name: Xxxx Xx Xxxxx | |
Title: Senior Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
UNION BANK & TRUST, as a Lender | |
By: /s/ deK Xxxxx | |
Name: deK Xxxxx | |
Title: Senior Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
ATLANTIC CAPITAL BANK, N.A., as a Lender | |
By: /s/ Xxxxxxx XxXxxxxx | |
Name: Xxxxxxx XxXxxxx | |
Title: Senior Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
BOKF, NA, as a Lender | |
By: /s/ Xxxx X. Xxxxxxxxxxx | |
Name: Xxxx X. Xxxxxxxxxxx | |
Title: Senior Vice President | |
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
TRISTATE CAPITAL BANK, as a Lender | |
By: /s/ Xxxxx Xxxxx | |
Name: Xxxxx Xxxxx | |
Title: Senior Vice President | |
[End of Signatures]
[Signature Page to First Amendment to Second Amended and Restated Credit Agreement]
EXHIBIT I
REAFFIRMATION OF OBLIGATIONS UNDER CREDIT DOCUMENTS
February 13, 2019
Reference is hereby made to (i) that certain Second Amended and Restated Credit Agreement dated as of November 9, 2018 among Cargo Aircraft Management, Inc. (the “Borrower”), Air Transport Services Group, Inc., the Lenders a party thereto and SunTrust Bank, as Administrative Agent (the “Credit Agreement”; capitalized terms used herein and not defined herein have the meanings ascribed to such terms in the Credit Agreement) and (ii) that certain First Amendment to Second Amended and Restated Credit Agreement dated as of the date hereof (the “Amendment”) among the Borrower, each other Credit Party party thereto, the Lenders and the Administrative Agent.
Each Credit Party acknowledges and reaffirms that (i) all liens and security interests granted to the Administrative Agent and the Lenders under the Security Documents remain in full force and effect and shall continue to secure the Obligations and (ii) the validity, perfection, enforceability or priority of such liens and security interests will not be impaired in any way by the Amendment.
Each of the undersigned Credit Parties hereby further reaffirms its continuing obligations owing to the Administrative Agent and the Lenders under each of the Credit Documents (including, without limitation, the guarantee obligations of each Guarantor under the Guarantee and Collateral Agreement) to which such Person is a party, and each Credit Party agrees that the amendments contained in the Amendment are solely to amend the terms of the Credit Agreement and do not in any way affect the validity and/or enforceability of any Credit Document, or reduce, impair or discharge the obligations of such Person thereunder.
Each of the undersigned Credit Parties hereby represents and warrants to the Administrative Agent and the Lenders that: (a) the execution and delivery by the Credit Parties of this Reaffirmation is within the power (corporate or otherwise) and authority of the Credit Parties, has been duly authorized and approved by all requisite action on the part of the Credit Parties, and does not and will not contravene, breach or conflict with any provision of applicable law or any of the charter or other organic documents of the Credit Parties, or any indenture, agreement, instrument or undertaking binding on the Credit Parties; (b) this Reaffirmation has been duly executed by the Credit Parties; and (c) the Credit Documents remain in full force and effect and constitute the legal, valid and binding obligations of the Credit Parties, enforceable in accordance with their terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting generally the enforcement of creditor's rights; and (d) all of the Obligations are absolute and unconditional, and such Obligations are not subject to any claim, defense, deduction, right of offset or otherwise.
THE CREDIT PARTIES DO NOT INTEND THE AMENDMENT NOR THE TRANSACTIONS CONTEMPLATED THEREBY TO BE, AND THE AMENDMENT AND THE TRANSACTION CONTEMPLATED THEREBY SHALL NOT BE CONSTRUED TO BE, A NOVATION OF ANY OF THE OBLIGATIONS OWING BY THE CREDIT PARTIES UNDER OR IN CONNECTION WITH THE CREDIT AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS.
This Reaffirmation shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the State of New York.
[Signatures Appear on Following Page]
IN WITNESS WHEREOF, each of the undersigned has duly executed and delivered this Reaffirmation of Obligations under Credit Documents as of the date first written above.
CARGO AIRCRAFT MANAGEMENT, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary |
ABX AIR, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, General Counsel & Secretary
LGSTX DISTRIBUTION SERVICES, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
AIRBORNE GLOBAL SOLUTIONS, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President & Secretary
[Signatures Continue on Following Pages]
[Signature Pages to Reaffirmation of Obligations Under Credit Documents]
AIRBORNE MAINTENANCE AND ENGINEERING SERVICES, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President & Secretary
AIR TRANSPORT INTERNATIONAL LIMITED LIABILITY COMPANY
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
XXXX MATERIAL SERVICES INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
AIR TRANSPORT INTERNATIONAL, INC.
By:
Name: Xxxxx X. X’Xxxxx
Title: President
CARGO AVIATION, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
[Signature Pages to Reaffirmation of Obligations Under Credit Documents]
CARGO HOLDINGS INTERNATIONAL, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
LGSTX FUEL MANAGEMENT, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
LGSTX SERVICES, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Secretary
By:
Name: W. Xxxxxx Xxxxx
Title: Chief Legal Officer & Secretary
GLOBAL FLIGHT SOURCE, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
[Signature Pages to Reaffirmation of Obligations Under Credit Documents]
LGSTX CARGO SERVICES, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
PEMCO WORLD AIR SERVICES, INC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
OMNI AIR INTERNATIONAL, LLC
By:
Name: Xxxxxxx X. Xxxxxxx
Title: Vice President, Secretary
OMNI AVIATION LEASING, LLC.
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
T7 AVIATION LEASING, LLC
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
[Signature Pages to Reaffirmation of Obligations Under Credit Documents]
ADVANCED FLIGHT SERVICES, LLC
By:
Name: W. Xxxxxx Xxxxx
Title: Vice President, Secretary
[End of Signatures]
[Signature Pages to Reaffirmation of Obligations Under Credit Documents]
