Exhibit 99.2
AMENDMENT XX. 0
XXXXXXXXX Xx. 0 (this "Amendment") dated as of March 7, 2003, under the
$300,000,000 Credit Agreement dated as of April 20, 2001 (as heretofore amended,
the "Credit Agreement") among KINDRED HEALTHCARE OPERATING, INC. (formerly named
Vencor Operating, Inc.) (the "Borrower"), KINDRED HEALTHCARE, INC. (formerly
named Vencor, Inc.) ("Kindred"), the LENDERS party thereto and JPMORGAN CHASE
BANK (formerly The Chase Manhattan Bank, successor-by-merger to Xxxxxx Guaranty
Trust Company of New York), as Administrative Agent and Collateral Agent.
W I T N E S S E T H:
WHEREAS, the parties hereto desire to amend certain provisions of the
Credit Agreement, as provided herein;
NOW, THEREFORE, the parties hereto agree as follows:
Section 1. Defined Terms; References. Unless otherwise specifically defined
herein, each term used herein which is defined in the Credit Agreement has the
meaning assigned to such term in the Credit Agreement. Each reference to
"hereof", "hereunder", "herein" and "hereby" and each other similar reference
and each reference to "this Agreement" and each other similar reference
contained in the Credit Agreement shall, after this Amendment becomes effective,
refer to the Credit Agreement as amended hereby.
Section 2. Information. Section 5.01(n) of the Credit Agreement is amended
by deleting the phrase "within 15 days after the commencement of each Fiscal
Year" and replacing in substitution therefor the phrase "as soon as available
and in any event no later than February 28th of each Fiscal Year".
Section 3. Fixed Charge Coverage Ratio (EBITDAR). The table appearing in
Section 6.01(a) of the Credit Agreement is amended and restated in its entirety
to read as follows:
--------------------------------------------------------------------------------
Period Ratio
--------------------------------------------------------------------------------
June 30, 2001 through December 31, 2001 1.01 to 1
--------------------------------------------------------------------------------
March 31, 2002 through March 31, 2003 1.15 to 1
--------------------------------------------------------------------------------
June 30, 2003 through December 31, 2003 1.00 to 1
--------------------------------------------------------------------------------
March 31, 2004 and June 30, 2004 1.05 to 1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
September 30, 2004 1.10 to 1
--------------------------------------------------------------------------------
December 31, 2004 1.15 to 1
--------------------------------------------------------------------------------
March 31, 2005 and thereafter 1.20 to 1
--------------------------------------------------------------------------------
Section 4. Total Leverage Ratio. The table appearing in Section 6.02(a) of
the Credit Agreement is amended and restated in its entirety to read as follows:
--------------------------------------------------------------------------------
Period Ratio
--------------------------------------------------------------------------------
June 30, 2001 through December 31, 2001 3.95 to 1
--------------------------------------------------------------------------------
January 1, 2002 through March 31, 2003 3.25 to 1
--------------------------------------------------------------------------------
April 1, 2003 through June 30, 2003 4.00 to 1
--------------------------------------------------------------------------------
July 1, 2003 through September 30, 2003 3.50 to 1
--------------------------------------------------------------------------------
October 1, 2003 through December 31, 2003 4.25 to 1
--------------------------------------------------------------------------------
January 1, 2004 through March 31, 2004 3.50 to 1
--------------------------------------------------------------------------------
April 1, 2004 and thereafter 3.25 to 1
--------------------------------------------------------------------------------
Section 5. Minimum Consolidated Net Worth. The table appearing in Section
6.03 of the Credit Agreement is amended and restated in its entirety to read as
follows:
--------------------------------------------------------------------------------
Quarterly Measurement Date Amount
--------------------------------------------------------------------------------
June 30, 2001 $378,797,000
--------------------------------------------------------------------------------
September 30, 2001 $385,470,000
--------------------------------------------------------------------------------
December 31, 2001 $399,125,000
--------------------------------------------------------------------------------
March 31, 2002 $500,000,000
--------------------------------------------------------------------------------
June 30, 2002 $510,000,000
--------------------------------------------------------------------------------
September 30, 2002 $520,200,000
--------------------------------------------------------------------------------
December 31, 2002 $530,604,000
--------------------------------------------------------------------------------
March 31, 2003 $522,200,000
--------------------------------------------------------------------------------
June 30, 2003 $520,100,000
--------------------------------------------------------------------------------
September 30, 2003 $509,800,000
--------------------------------------------------------------------------------
2
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December 31, 2003 $505,100,000
--------------------------------------------------------------------------------
March 31, 2004 $506,700,000
--------------------------------------------------------------------------------
June 30, 2004 $512,300,000
--------------------------------------------------------------------------------
September 30, 2004 $519,000,000
--------------------------------------------------------------------------------
December 31, 2004 $536,700,000
--------------------------------------------------------------------------------
March 31, 2005 $551,800,000
--------------------------------------------------------------------------------
June 30, 2005 $567,800,000
--------------------------------------------------------------------------------
September 30, 2005 $582,800,000
--------------------------------------------------------------------------------
December 31, 2005 $601,000,000
--------------------------------------------------------------------------------
March 31, 2006 $616,800,000
--------------------------------------------------------------------------------
June 30, 2006 $633,900,000
--------------------------------------------------------------------------------
September 30, 2006 $651,600,000
--------------------------------------------------------------------------------
December 31, 2006 $674,000,000
--------------------------------------------------------------------------------
March 31, 2007 $692,600,000
--------------------------------------------------------------------------------
June 30, 2007 $712,700,000
--------------------------------------------------------------------------------
September 30, 2007 $732,900,000
--------------------------------------------------------------------------------
December 31, 2007 and thereafter $757,700,000
--------------------------------------------------------------------------------
Section 6. Capital Expenditures. The table appearing in Section 6.04 of the
Credit Agreement is amended and restated in its entirety to read as follows:
--------------------------------------------------------------------------------
Fiscal Year Amount
--------------------------------------------------------------------------------
2001 $75,000,000
--------------------------------------------------------------------------------
2002 $75,000,000
--------------------------------------------------------------------------------
2003 $80,000,000
--------------------------------------------------------------------------------
2004 $80,000,000
--------------------------------------------------------------------------------
2005 $85,000,000
--------------------------------------------------------------------------------
2006 $85,000,000
--------------------------------------------------------------------------------
2007 $90,000,000
--------------------------------------------------------------------------------
3
--------------------------------------------------------------------------------
2008 $90,000,000
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Section 7. Restricted Payments. (a) Section 7.07(a)(ii) of the Credit
Agreement is amended and restated in its entirety to read as follow:
"the Issuer may declare or make Restricted Payments to Vencor for the
purchase, redemption or other acquisition or retirement for value of
Equity Interests of Vencor held by (A) officers, directors or
employees or former officers, directors or employees (or their estates
or beneficiaries under their estates), upon death, disability,
retirement, severance or termination of employment or (B) Ventas, to
the extent required to satisfy the requirements of Article XII of
Vencor's Amended and Restated Certificate of Incorporation; provided
that the aggregate amount paid to Vencor pursuant to this clause (ii)
does not exceed an aggregate amount of $500,000;"
(b) Section 7.07(b) of the Credit Agreement is amended and restated in its
entirety to read as follow:
"Vencor shall not, directly or indirectly, use the proceeds of any
Restricted Payment to (i) declare or pay any dividend or other
distribution on any Equity Securities of Vencor (except dividends
payable solely in Equity Securities of the same class) or (ii)
purchase, redeem, retire or otherwise acquire any Equity Securities of
Vencor except as permitted by Section 7.07(a)(ii)."
Section 8. Limitations on Acquisitions and Investments. Section 7.08(b)(ii)
of the Credit Agreement is amended by replacing the reference to "$130,000,000"
with a reference to "$50,000,000".
Section 9. Acknowledgement. The Borrower, Kindred and the Required Lenders
hereby agree that Restricted Payments in an aggregate amount not exceeding
$1,050,000 made by the Borrower to Kindred pursuant to Section 7.07(a)(ii) of
the Credit Agreement prior to the date hereof for the purchase, redemption or
other acquisition or retirement for value of Equity Interests of Kindred shall
be deemed not to constitute a failure to observe Section 7.07 of the Credit
Agreement.
4
Section 10. Representations Correct; No Default. Kindred and the Borrower
each represents and warrants that (i) the representations and warranties
contained in the Financing Documents are true as though made on and as of the
date hereof and will be true on and as of the Amendment Effective Date (as
defined below) as though made on and as of such date and (ii) no Default has
occurred and is continuing on the date hereof and no Default will occur or be
continuing on the Amendment Effective Date.
Section 11. Counterparts; Effectiveness. (a) This Amendment may be signed
in any number of counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument.
(b) This Amendment shall become effective as of the date hereof on the date
(the "Amendment Effective Date") when the Administrative Agent shall have
received duly executed counterparts hereof signed by Kindred, the Borrower and
the Required Lenders (or, in the case of any Lender as to which an executed
counterpart shall not have been received, the Administrative Agent shall have
received facsimile or other written confirmation from such party of execution of
a counterpart hereof by such Lender).
(c) No later than the first Business Day after the Fee Determination Date
(as defined below), the Borrower shall pay the Administrative Agent, in
immediately available funds for the account of each Lender that has evidenced
its agreement hereto as provided in clause (b) by 2:00 P.M. (New York City time)
on the later of (i) March 19, 2003 and (ii) the date the Administrative Agent
issues a notice to the Lenders saying this Amendment has become effective (such
later date, the "Fee Determination Date"), an amendment fee in an amount equal
to 0.50% of the aggregate outstanding principal amount of such Lender's Loans
(as outstanding on the opening of business on the date of this Amendment).
(d) Except as expressly set forth herein, the waivers and amendments
contained herein shall not constitute a waiver or amendment of any term or
condition of the Credit Agreement or any other Financing Document, and all such
terms and conditions shall remain in full force and effect and are hereby
ratified and confirmed in all respects.
Section 12. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed by their respective authorized officers as of the day and year
first above written.
KINDRED HEALTHCARE OPERATING, INC.
By: /s/ Xxxxxxx X. Xxxxxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxxxxx
Title: Senior Vice President, Chief
Financial Officer and Treasurer
KINDRED HEALTHCARE, INC.
By: /s/ Xxxxxxx X. Xxxxxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxxxxx
Title: Senior Vice President, Chief
Financial Officer and Treasurer
JPMORGAN CHASE BANK, as Administrative
Agent and as Lender
By: /s/ Xxxxx X. Xxx, III
----------------------------------------
Name:
Title:
AG CAPITAL FUNDING PARTNERS, L.P.
By: /s/ Xxxx X. Xxxxxx
----------------------------------------
Name: Xxxx X. Xxxxxx
Title: Managing Director
BANK OF AMERICA, N.A.
By:
----------------------------------------
Name:
Title:
BEAR XXXXXXX & CO., INC.
By:
----------------------------------------
Name:
Title:
CREDIT SUISSE FIRST BOSTON INTERNATIONAL
By:
----------------------------------------
Name:
Title:
FOOTHILL INCOME TRUST II, L.P.
By: FIT 2 GP LLC, its General Partner
By: /s/ M.E. Xxxxxxx
----------------------------------------
Name: M.E. Xxxxxxx
Title: Managing Member
GOLDENTREE HIGH YIELD OPPORTUNITIES
I, L.P.
By: /s/ Xxxxxxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxxxxxx X. Xxxxxx
Title:
GOLDENTREE HIGH YIELD OPPORTUNITIES
II, L.P.
By: /s/ Xxxxxxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxxxxxx X. Xxxxxx
Title:
GOLDENTREE LOAN OPPORTUNITIES I, LIMITED
By: /s/ Xxxxxxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxxxxxx X. Xxxxxx
Title:
EMERALD ORCHARD LIMITED
By: /s/ Xxxxx X. Xxxxxx
----------------------------------------
Name: Xxxxx X. Xxxxxx
Title: Attorney in Fact
HIGHLAND LEGACY LIMITED
By Highland Capital Management, L.P.
As Collateral Manager
By: /s/ Xxxx Xxxxxxx
----------------------------------------
Name: Xxxx Xxxxxxx
Title: Senior Portfolio Manager
HIGHLAND LOAN FUNDING V LTD.
By Highland Capital Management, L.P.
As Collateral Manager
By: /s/ Xxxx Xxxxxxx
----------------------------------------
Name: Xxxx Xxxxxxx
Title: Senior Porfolio Manager
RESTORATION FUNDING CLO, LTD.
By Highland Capital Management, L.P.
As Collateral Manager
By: /s/ Xxxx Xxxxxxx
----------------------------------------
Name: Xxxx Xxxxxxx
Title: Senior Porfolio Manager
AIM FLOATING RATE FUND
By: /s/ Xxx Xxxxx
----------------------------------------
Name: Xxx Xxxxx
Title: Credit Analyst
AVALON CAPITAL LTD.
By: /s/ Xxx Xxxxx
----------------------------------------
Name: Xxx Xxxxx
Title: Credit Analyst
AVALON CAPITAL LTD. II
By: /s/ Xxx Xxxxx
----------------------------------------
Name: Xxx Xxxxx
Title: Credit Analyst
CERES II FINANCE LIMITED
By: /s/ Xxx Xxxxx
----------------------------------------
Name: Xxx Xxxxx
Title: Credit Analyst
CHARTER VIEW PORTFOLIO
By: /s/ Xxx Xxxxx
----------------------------------------
Name: Xxx Xxxxx
Title: Credit Analyst
DIVERSIFIED CREDIT PORTFOLIO LTD.
By: /s/ Xxx Xxxxx
----------------------------------------
Name: Xxx Xxxxx
Title: Credit Analyst
SEQUILS-LIBERTY, LTD.
By: /s/ Xxxxxx Xxxxx
----------------------------------------
Name: Xxxxxx Xxxxx
Title: Credit Analyst
SARATOGA CLO I, LIMITED
By: /s/ Xxx Xxxxx
----------------------------------------
Name: Xxx Xxxxx
Title: Credit Analyst
CONTINENTAL CASUALTY COMPANY
By: /s/ Xxxxxxx X. XxXxxx
----------------------------------------
Name: Xxxxxxx X. XxXxxx
Title: Vice President
LCM I LIMITED PARTNERSHIP
By: Lyon Capital Management LLC,
as Attorney-in-Fact
By: /s/ X. Xxxxxxxx
----------------------------------------
Name: Farboud Tavangar
Title: Senior Portfolio Manager
XXXXXX XXXXXXX SENIOR FUNDING, INC.
By:
----------------------------------------
Name:
Title:
PRESIDENT & FELLOWS HARVARD COLLEGE
By: Regiment Capital Management, LLC
as its Investment Advisor
By: Regiment Capital Advisors, LLC
its Manager and pursuant to delegated
authority
By: /s/ Xxxxxxx X. Xxxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: President
REGIMENT CAPITAL, LTD.
By: Regiment Capital Management, LLC
as its Investment Advisor
By: Regiment Capital Advisors, LLC
its Manager and pursuant to delegated
authority
By: /s/ Xxxxxxx X. Xxxxxxxx
----------------------------------------
Name: Xxxxxxx X. Xxxxxxxx
Title: President
SUNAMERICA LIFE INSURANCE COMPANY
By: /s/ Xxxxxx X. Oh
----------------------------------------
Name: Xxxxxx X. Oh
Title: Authorized Agent
XXX XXXXXX PRIME RATE INCOME TRUST
By: Xxx Xxxxxx Investment Advisory Corp.
By: /s/ Xxxx Xxxxx
----------------------------------------
Name: Xxxx Xxxxx
Title: Executive Director
XXX XXXXXX SENIOR FLOATING RATE FUND
By: Xxx Xxxxxx Investment Advisory Corp.
By: /s/ Xxxx Xxxxx
----------------------------------------
Name: Xxxx Xxxxx
Title: Executive Director
XXX XXXXXX SENIOR INCOME TRUST
By: Xxx Xxxxxx Investment Advisory Corp.
By: /s/ Xxxx Xxxxx
----------------------------------------
Name: Xxxx Xxxxx
Title: Executive Director
