1
EXHIBIT 10.3
[NATIONSBANK LETTERHEAD]
March 16, 1999
WESTPOINT XXXXXXX INC.
000 Xxxx Xxxxx Xxxxxx
XxxxXxxxx, Xxxxxxx 00000
Attention: Xx. Xxxxxx X. Xxxxxxxxxx
Re: Revision of Definition of "Maximum Restricted Payment Amount"
and Minimum Net Worth Covenant
Dear Sirs:
Reference is made to that certain Second Amended and Restated Credit Agreement,
dated as of June 9, 1998, among WestPoint Xxxxxxx Inc. ("Borrower"), WestPoint
Xxxxxxx (UK) Limited and WestPoint Xxxxxxx (Europe) Limited (the "Foreign
Borrowers"), the various banks and lending institutions party thereto (the
"Banks"), and NationsBank, N.A. as agent (the "Agent") for the Banks (as
amended from time to time, the "Credit Agreement"). Capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in the Credit
Agreement.
By their signatures below, the Borrower, the Foreign Borrowers and the Required
Banks hereby agree that the existing definition of "Maximum Restricted Payment
Amount" in Section 1.1 of the Credit Agreement shall be amended to read in its
entirety as follows:
"Maximum Restricted Payment Amount" means the sum of (i) $99,210,000,
plus (ii) 50% of the Consolidated Net Income from and after March 31, 1998
until any relevant measurement date, plus (iii) the Net Cash Proceeds
received by the Borrower from the exercise of stock warrants or options by
employees or former employees of the Borrower in respect of Capital Stock
of the Borrower from and after March 31, 1998, plus (iv) $21,790,978
(representing the Net Cash Proceeds received by Alamac Sub Holdings Inc.
from the sale of its facility located in Whitmire, South Carolina), and (v)
beginning with the fiscal quarter ending nearest December 31, 1998, minus
the lesser of $65,000,000 or 50% of the Consolidated Net Income from and
after October 1, 1998 until any relevant measurement date.
Member FDIC
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WestPoint Xxxxxxx Inc.
March 16, 1999
Page 2
By their signatures below, the Borrower, the Foreign Borrowers and the Required
Banks hereby agree that Section 7.11(a) be amended to read in its entirety as
follows:
Minimum Consolidated Net Worth. Have a Consolidated Net Worth as
of the last day of each fiscal quarter of not less than (i)
$190,000,000, (ii) increased on a cumulative basis as of the end of
each fiscal quarter of the Consolidated Parties, commencing with the
fiscal quarter ending June 30, 1998, by an amount equal to forty
percent (40%) of Consolidated Net Income (to the extent positive) for
the fiscal quarter then ended, and (iii) further increased on a
cumulative basis as of the end of each fiscal quarter of the
Consolidated Parties beginning with the fiscal quarter ending nearest
December 31, 1998 by an amount equal to the lesser of (A) fifty
percent (50%) of Consolidated Net Income (to the extent positive) for
each such fiscal quarter or (B) $65,000,000.
By their signatures below, each of the Subsidiary Guarantors acknowledges and
consents to this revision in the definition of "Maximum Restricted Payment
Amount" and each Subsidiary Guarantor agrees that this revision does not
operate to reduce or discharge any of such Subsidiary's obligations under any
of the Collateral Documents.
Until this letter agreement shall have been executed by the Borrower, the
Foreign Borrowers, the Subsidiary Guarantors, and the Required Banks, it shall
not be effective in revising either the definition of "Maximum Restricted
Payment Amount" or Section 7.11(a). Except for the revision to the definition
of "Maximum Restricted Payment Amount" and the revision of Section 7.11(a)
effected hereby upon the execution of this letter agreement by the Borrower,
the Foreign Borrowers, the Subsidiary Guarantors, and the Required Banks, the
Credit Agreement shall remain in full force and effect.
Please execute this letter agreement and cause each of the Foreign Borrowers
and the Subsidiary Guarantors to execute this letter agreement, and return such
completed signature pages to the Agent at your earliest convenience.
Sincerely,
NATIONSBANK, N.A., in its capacity
as the Agent
By: /s/ Xxxxx X. Xxxxxxx
-------------------------------
Xxxxx X. Xxxxxxx
Title: Vice President
----------------------------
ACKNOWLEDGED AND AGREED:
WESTPOINT XXXXXXX INC.
By: /s/ XXXXXX X. XXXXXXXXXX
---------------------------------------
Xxxxxx X. Xxxxxxxxxx
Title: Executive Vice President - Finance
and Chief Financial Officer
------------------------------------
[Signatures Continued]
3
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 3
WESTPOINT XXXXXXX (UK) LIMITED
By: /s/ Xxxxxx X. Xxxxxxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxxxxxx
Title: Director, Vice President & Treasurer
------------------------------------------
WESTPOINT XXXXXXX (EUROPE) LIMITED
By: /s/ Xxxxxx X. Xxxxxxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxxxxxx
Title: Director, Vice President & Treasurer
------------------------------------------
WESTPOINT XXXXXXX STORES, INC.
By: /s/ Xxxxxx X. Xxxxxxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxxxxxx
Title: Vice President & Treasurer
------------------------------------------
X.X. XXXXXXX & CO., INC.
By: /s/ Xxxxxx X. Xxxxxxxxxx
---------------------------------------------
Xxxxxx X. Xxxxxxxxxx
Title: Vice President & Treasurer
------------------------------------------
WESTPOINT-PEPPERELL ENTERPRISES, INC.
By: /s/ Xxxxxx X. Xxxxx
---------------------------------------------
Xxxxxx X. Xxxxx
Title: Vice President & Assistant Treasurer
------------------------------------------
X.X. XXXXXXX ENTERPRISES, INC.
By: /s/ Xxxxxx X. Xxxxx
---------------------------------------------
Xxxxxx X. Xxxxx
Title: Vice President & Assistant Treasurer
------------------------------------------
ALAMAC HOLDINGS INC.
By: /s/ Xxxxxx X. Xxxxx
---------------------------------------------
Xxxxxx X. Xxxxx
Title: Vice President & Assistant Treasurer
------------------------------------------
[Signatures Continued]
4
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 4
ALAMAC SUB HOLDINGS INC.
By: /s/ XXXXXX X. XXXXX
----------------------------------------
Xxxxxx X. Xxxxx
Title: Vice President & Assistant Treasurer
-------------------------------------
NATIONSBANK, N.A., as a Bank
By:
----------------------------------------
Title:
-------------------------------------
THE BANK OF NEW YORK
By:
----------------------------------------
Title:
-------------------------------------
THE FIRST NATIONAL BANK OF CHICAGO
By:
----------------------------------------
Title:
-------------------------------------
SCOTIABANC INC.
By:
----------------------------------------
Title:
-------------------------------------
WACHOVIA BANK, N.A.
By:
----------------------------------------
Title:
-------------------------------------
[Signatures Continued]
5
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 4
ALAMAC SUB HOLDINGS INC.
By:
----------------------------------------
Title:
-------------------------------------
NATIONSBANK, N.A., as a Bank
By: /s/ XXXXX X. XXXXXXX
----------------------------------------
XXXXX X. XXXXXXX
Title: Vice President
-------------------------------------
THE BANK OF NEW YORK
By:
----------------------------------------
Title:
-------------------------------------
THE FIRST NATIONAL BANK OF CHICAGO
By:
----------------------------------------
Title:
-------------------------------------
SCOTIABANC INC.
By:
----------------------------------------
Title:
-------------------------------------
WACHOVIA BANK, N.A.
By:
----------------------------------------
Title:
-------------------------------------
[Signatures Continued]
6
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 4
ALAMAC SUB HOLDINGS INC.
By:
------------------------------
Title:
----------------------------
NATIONSBANK, N.A., as a Bank
By:
------------------------------
Title:
----------------------------
THE BANK OF NEW YORK
By: /s/ Xxxxxx X. Xxxxxxxxxxx, Xx.
------------------------------
Xxxxxx X. Xxxxxxxxxxx, Xx.
Title: Assistant Vice President
---------------------------
THE FIRST NATIONAL BANK OF CHICAGO
By:
------------------------------
Title:
----------------------------
SCOTIABANC INC.
By:
------------------------------
Title:
----------------------------
WACHOVIA BANK, N.A.
By:
------------------------------
Title:
----------------------------
[Signatures Continued]
7
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 4
ALAMAC SUB HOLDINGS INC.
By:
--------------------------
Title:
------------------------
NATIONSBANK, N.A., as a Bank
By:
--------------------------
Title:
------------------------
THE BANK OF NEW YORK
By:
--------------------------
Title:
------------------------
THE FIRST NATIONAL BANK OF CHICAGO
By: /s/ Xxxxxxx X. Xxxxxx
--------------------------
Title: Vice President
--------------------------
SCOTIABANC INC.
By:
--------------------------
Title:
------------------------
WACHOVIA BANK, N.A.
By:
--------------------------
Title:
------------------------
[Signatures Continued]
8
WestPoint Xxxxxxx, Inc.
March 16, 1999
Page 4
ALAMAC SUB HOLDINGS INC.
By:
------------------------------
Title:
---------------------------
NATIONSBANK, N.A., as a Bank
By:
------------------------------
Title:
---------------------------
THE BANK OF NEW YORK
By:
------------------------------
Title:
---------------------------
THE FIRST NATIONAL BANK OF CHICAGO
By:
------------------------------
Title:
---------------------------
SCOTIABANC INC.
By: /s/
------------------------------
Title:
---------------------------
WACHOVIA BANK, N.A.
By:
------------------------------
Title:
---------------------------
[Signatures Continued]
9
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 4
ALAMAC SUB HOLDINGS INC.
By:
-------------------------------
Title:
----------------------------
NATIONSBANK, N.A., as a Bank
By:
-------------------------------
Title:
----------------------------
THE BANK OF NEW YORK
By:
-------------------------------
Title:
----------------------------
THE FIRST NATIONAL BANK OF CHICAGO
By:
-------------------------------
Title:
----------------------------
SCOTIABANC INC.
By:
-------------------------------
Title:
----------------------------
WACHOVIA BANK, N.A.
By: /s/ XXXXXXXX X. XXXXXX
------------------------------
XXXXXXXX X. XXXXXX
Title: SVP
---------------------------
[Signatures Continued]
10
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 5
SOCIETE GENERALE
By:
------------------------------------
Title:
---------------------------------
ABN AMRO BANK, N.V.
By: /s/ By: /s/
------------------------------------ -------------------------------
Title: VICE PRESIDENT Title: VICE PRESIDENT
--------------------------------- ----------------------------
SUNTRUST BANK, ATLANTA
By:
------------------------------------
Title:
---------------------------------
By:
------------------------------------
Title:
---------------------------------
FIRST UNION NATIONAL BANK
By:
------------------------------------
Title:
---------------------------------
FLEET BANK, N.A.
By:
------------------------------------
Title:
---------------------------------
[Signatures Continued]
11
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 5
SOCIETE GENERALE
By:
------------------------------------
Title:
---------------------------------
ABN AMRO BANK, N.V.
By:
------------------------------------
Title:
---------------------------------
SUNTRUST BANK, ATLANTA
By: /s/ XXXXX XXXX
------------------------------------
Xxxxx Xxxx
Title: SENIOR VICE PRESIDENT
---------------------------------
By:
------------------------------------
Title:
---------------------------------
FIRST UNION NATIONAL BANK
By:
------------------------------------
Title:
---------------------------------
FLEET BANK, N.A.
By:
------------------------------------
Title:
---------------------------------
[Signatures Continued]
12
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 5
SOCIETE GENERALE
By:
------------------------------------
Title:
---------------------------------
ABN AMRO BANK, N.V.
By:
------------------------------------
Title:
---------------------------------
SUNTRUST BANK, ATLANTA
By:
------------------------------------
Title:
---------------------------------
By:
------------------------------------
Title:
---------------------------------
FIRST UNION NATIONAL BANK
By: /s/ XXXXX XXXX
------------------------------------
Xxxxx Xxxx
Title: Senior Vice President
---------------------------------
FLEET BANK, N.A.
By:
------------------------------------
Title:
---------------------------------
[Signatures Continued]
13
WestPoint Xxxxxxx, Inc.
March 16, 1999
Page 5
SOCIETE GENERALE
By:
------------------------------
Title:
---------------------------
ABN AMRO BANK, N.V.
By:
------------------------------
Title:
---------------------------
SUNTRUST BANK, ATLANTA
By:
------------------------------
Title:
---------------------------
By:
------------------------------
Title:
---------------------------
FIRST UNION NATIONAL BANK
By:
------------------------------
Title:
---------------------------
FLEET BANK, N.A.
By: /s/ XXXXXX XXXXXXX
------------------------------
Xxxxxx Xxxxxxx
Title: SVP
---------------------------
[Signatures Continued]
14
WestPoint Xxxxxxx Inc.
March 16, 1999
Page 6
AMSOUTH BANK
By: /s/
---------------------------------------
Title: Vice President
------------------------------------
COOPERATIEVE CENTRALE RAIFFEISEN-
BOERENLEENBANK B.A., "RABOBANK NEDERLAND",
NEW YORK BRANCH
By:
----------------------------------------
Title:
-------------------------------------
By:
----------------------------------------
Title:
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NATIONAL WESTMINSTER BANK PLC
By:
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Title:
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