Exhibit 4.2
FIRST AMENDMENT
FIRST AMENDMENT, dated as of February 17, 1998 (this "Amendment"),
to the 364-Day Credit Agreement, dated as of May 16, 1997 (the "Credit
Agreement"), among X. X. Xxxxx & Co.-Xxxx., a Connecticut corporation (the
"Company"), X. X. Xxxxx & Co., a Delaware corporation and sole shareholder of
the Company ("Grace Delaware"), Grace Specialty Chemicals, Inc., a Delaware
corporation ("New Grace"), the several banks from time to time parties to the
Credit Agreement (the "Banks"), NationsBank, N.A. (South), a national
association, as documentation agent (in such capacity, the "Documentation
Agent"), and The Chase Manhattan Bank, a New York banking corporation, as
administrative agent for the Banks thereunder (in such capacity, the
"Administrative Agent").
W I T N E S S E T H :
WHEREAS, New Grace is wholly-owned by Grace Delaware and pursuant to
this Amendment will become a party to the Credit Agreement and a guarantor under
Section 12 of the Credit Agreement to the same extent Grace Delaware is a
guarantor, and will upon completion of the Packaging Transaction (as hereinafter
defined) replace Grace Delaware as guarantor;
WHEREAS, in connection with the Packaging Transaction (as
hereinafter defined) (i) New Grace will become the sole shareholder of the
Company, (ii) the Company will transfer its packaging business to another
subsidiary of Grace Delaware and (iii) Grace Delaware will spin off New Grace
(together with the Company) to Grace Delaware's shareholders;
WHEREAS, the Company has requested the Banks to, among other things,
consent to the Packaging Transaction on the terms and subject to the conditions
set forth herein;
NOW THEREFORE, in consideration of the premises herein contained and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereto hereby agree as follows:
ARTICLE I.
DEFINITIONS
Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement.
ARTICLE II.
CREDIT AGREEMENT AMENDMENTS
2.1 Definitions. (a) Subsection 1.1 of the Credit Agreement is
hereby amended by deleting the definition of "Loan Parties" in its entirety and
by adding the following new definitions to such subsection in correct
alphabetical order:
`Cryovac': Cryovac, Inc., a Delaware corporation and subsidiary
of the Company, together with its subsidiaries.
`Grace Delaware': X.X. Xxxxx & Co., a Delaware corporation and
sole shareholder of the Company.
`Loan Parties': the collective reference to the Company, the
other Borrowers, Grace Delaware and New Grace.
`New Grace': Grace Specialty Chemicals, Inc., a Delaware
corporation.
`Packaging Transaction': the transaction in which all of the
following steps occur: (a) the Company will transfer its packaging
business to Cryovac, (b) Grace Delaware and Cryovac will enter into new
bank borrowings of approximately $1,200,000,000 and the proceeds will be
transferred to the Company, (c) the Company will distribute the stock of
Cryovac to Grace Delaware, (d) Grace Delaware will contribute the stock of
the Company to New Grace, and (e) Grace Delaware will distribute to its
public shareholders the stock of New Grace.
`Parent': Grace Delaware, until such time as Grace Delaware in
connection with the Packaging Transaction no longer directly or indirectly
owns all of the stock of the Company, and thereafter, New Grace, except
that for purposes of Section 12, the term Parent shall include New Grace
and, until the Release Date, Grace Delaware.
`Release Date': the date on which the Administrative Agent
executes the release contemplated by subsection 13.16.
2.2 Miscellaneous. Section 13 of the Credit Agreement is hereby
amended by adding the following new paragraph to the end of such Section:
"13.16 Release of Grace Delaware. Promptly after the completion of
the Packaging Transaction, the Administrative Agent, on behalf of the
Administrative Agent and the Banks, shall, upon receipt of the written
request of the Parent or Grace Delaware, execute an acknowledgment that
Grace Delaware is released from all its obligations under this Agreement
(including, without limitation, its obligations under the Parent
Guarantee) provided that the Administrative Agent shall have received a
certificate dated the date of such request executed by a Responsible
Officer of each of New Grace and the Company to the effect that (a) each
of the representations and warranties made by each of the Loan Parties
(other than Grace Delaware) in or
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pursuant to Sections 6.1, 6.2, 6.3, 6.5, 6.9, 6.10, 6.11, 6.12 and
6.13 of this Agreement is true and correct in all material respects as of
the date of such certificate as if made on and as of such date and (b) no
Default or Event of Default has occurred and is continuing on the date of
such certificate after giving effect to the Packaging Transaction."
ARTICLE III.
CREDIT AGREEMENT WAIVERS
3.1 Waiver of Covenants. The Banks and the Administrative Agent
hereby waive compliance by the Loan Parties with the provisions of subsection
9.1, 9.2, 9.3 and 9.4 of the Credit Agreement, solely insofar as the steps taken
in connection with the Packaging Transaction might otherwise be deemed to result
in a breach of any of the covenants contained in those subsections; provided
that the Banks and the Administrative Agent shall only waive compliance by the
Loan Parties with the provisions of subsection 9.1 of the Credit Agreement with
respect to the fiscal quarter ending March 31, 1998 and only then if such
subsection would be breached because step (b) of the Packaging Transaction would
have occurred in the fiscal quarter ending March 31,1998 and step (e) of the
Packaging Transaction would have occurred in the fiscal quarter ending June 30,
1998.
3.2 Waiver of Certain Defaults. The Banks and the Administrative
Agent hereby agree that the waivers contained in Section 3.1 of this Amendment
shall have effect for purposes of Section 8.2(b), Section 10(c) and Section
10(d) of the Credit Agreement, and hereby waive application of the provisions of
Section 10(i) of the Credit Agreement solely insofar as the steps taken in
connection with the Packaging Transaction might otherwise be deemed to result in
a default under Section 10(i).
ARTICLE IV.
MISCELLANEOUS
4.1 Effectiveness. This Amendment shall become effective on the
condition that (a) the Administrative Agent shall have received counterparts
hereof, duly executed and delivered by the Company, Grace Delaware, New Grace
and the Banks, (b) the Administrative Agent shall have received a legal opinion
of counsel to the Company, Grace Delaware and New Grace in form and substance
acceptable to the Administrative Agent, and (c) no Default or Event of Default
shall have occurred and be continuing on the date hereof after giving effect to
this Amendment. The date on which all of the above conditions are met shall be
the date of effectiveness of this Amendment (the "Effective Date").
4.2 New Grace. By signing this Amendment, all of the parties hereto
hereby: (i) acknowledge that as of the Effective Date, New Grace will be a party
to the Credit Agreement, as modified hereby, and, as such, will be bound by the
terms and provisions thereof as if an original party thereto, and (ii)
acknowledge and agree that, commencing with the Effective Date, Grace Delaware
and New Grace will be jointly and severally bound as guarantors under Section 12
of the Credit Agreement, until Grace Delaware is released in accordance with
Section 13.16 of the Credit Agreement.
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4.3 Continuing Effect of Credit Agreement. This Amendment shall not
constitute an amendment, consent or waiver of any other provision of the Credit
Agreement not expressly referred to herein and, except as provided herein, shall
not be construed as an amendment, consent or waiver to any further or future
action on the part of the Loan Parties that would require a consent or waiver of
the Administrative Agent and/or any of the Banks. Except as expressly consented
to and waived hereby, the provisions of the Credit Agreement are and shall
remain in full force and effect.
4.4 Counterparts. This Amendment may be executed by one or more of
the parties to this Amendment on any number of separate counterparts, and all of
such counterparts taken together shall be deemed to constitute one and the same
instrument. In addition, this Amendment may be delivered by facsimile
transmission of the relevant signature pages thereof.
4.5 GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.
4.6 Expenses. The Company agrees to pay or reimburse the
Administrative Agent for all of its out-of-pocket costs and expenses incurred in
connection with the preparation, negotiation and execution of this Amendment,
including, without limitation, the fees and disbursements of counsel to the
Administrative Agent.
4.7 Section Headings. The section headings used in this Amendment
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof.
4.8 Severability. Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction, in any such case so long
as the economic or legal substance of the transactions provided for herein is
not affected in any manner adverse to any party.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed and delivered in New York, New York by their proper and duly
authorized officers as of the day and year first above written.
X. X. XXXXX & CO.-XXXX.
By:/s/
Title:
X. X. XXXXX & CO.
By:/s/
Title:
GRACE SPECIALTY CHEMICALS, INC.
By:/s/
Title:
THE CHASE MANHATTAN BANK, as
Administrative Agent and as
a Bank
By:/s/
Title:
NATIONSBANK, N.A. (SOUTH)
By:/s/
Title:
ABN AMRO BANK N.V., NEW YORK
BRANCH
By:/s/
Title:
By:/s/
Title:
BANK OF AMERICA NATIONAL
TRUST AND SAVINGS ASSOCIATION
By:/s/
Title:
BANK OF NEW YORK
By:/s/
Title:
THE BANK OF NOVA SCOTIA
By:/s/
Title:
BARCLAYS BANK PLC
By:/s/
Title:
CITIBANK, N.A.
By:/s/
Title:
COMMERZBANK AG, ATLANTA
AGENCY
By:/s/
Title:
By:/s/
Title:
CREDIT LYONNAIS ATLANTA
AGENCY
By:/s/
Title:
CREDIT SUISSE FIRST BOSTON
By:/s/
Title:
By:/s/
Title:
DRESDNER BANK AG, NEW YORK
AND GRAND CAYMAN BRANCHES
By:/s/
Title:
By:/s/
Title:
FIRST UNION NATIONAL BANK OF FLORIDA
By:/s/
Title:
MARINE MIDLAND BANK
By:/s/
Title:
XXXXXX GUARANTY TRUST
COMPANY OF NEW YORK
By:/s/
Title:
UNION BANK OF SWITZERLAND-NEW YORK
By:/s/
Title:
By:/s/
Title:
