EXHIBIT 10.6
FIFTH AMENDMENT
TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS FIFTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
(this "Fifth Amendment") dated as of February 10, 1999 relates to that certain
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Second Amended and Restated Credit Agreement dated as of December 2, 1997 (as
previously amended and as further amended, restated, supplemented or otherwise
modified from time to time, the "Credit Agreement"), among Rental Service
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Corporation USA, Inc., an Arizona corporation, as successor in interest to RSC
Alabama, Inc., RSC Center, Inc., RSC Xxxxx Inc., RSC Industrial Corporation, RSC
Rents, Inc., Xxxxxx Xxxxx Equipment, Inc., RSC Acquisition Corp. and RSC
Holdings, Inc. (the "Borrower"), and Rental Service Corporation (the "Parent
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Guarantor"), each financial institution identified on Annex I thereto (together
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with its successors and permitted assigns pursuant to Section 12.8 thereof, a
"Lender"), Bankers Trust Company, as Issuing Bank, and BT Commercial
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Corporation, acting as agent for the Lenders and the Issuing Bank (in such
capacity, together with any successor agent appointed pursuant to Section 11.8
thereof, the "Agent").
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PRELIMINARY STATEMENTS:
WHEREAS, the Parent Guarantor has announced that it has entered into a
definitive merger agreement with NationsRent, Inc. ("NationsRent"), pursuant to
which the Parent Guarantor will acquire substantially all of the issued and
outstanding capital stock of NationsRent and NationsRent will be merged with and
into the Parent Guarantor (the "Proposed NationsRent Merger");
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WHEREAS, the Parent Guarantor has informed the Agent, the Issuing Bank
and the Lenders that the Proposed NationsRent Merger is expected to be
consummated on or before August 31, 1999 and that the Credit Agreement and the
other Credit Documents will be amended and restated, replaced or refinanced on
or before that date;
WHEREAS, pursuant to Section 3 of the Fourth Amendment to Second
Amended and Restated Credit Agreement dated as of November 24, 1998 (the "Fourth
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Amendment"), each of the Agent, the Lenders and the Parent Guarantor, for itself
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and on behalf of the Borrower, agreed to enter into a Third Amended and Restated
Credit Agreement as soon as practicable after the consummation of the RSC
Subsidiary Consolidation in order to give effect to each amendment to the Credit
Agreement and the RSC Subsidiary Consolidation, together with any amendments
and/or amendments and restatements of the Credit Documents necessary to give
effect to the RSC Subsidiary Consolidation (the "Required Amendment and
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Restatement");
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WHEREAS, the Borrower and the Parent Guarantor have requested that the
Agent and the Lenders (i) amend certain provisions of the Credit Agreement to
give effect to the RSC
Subsidiary Consolidation, (ii) amend the deadline set forth in the Fourth
Amendment for the consummation of the Required Amendment and Restatement and
(iii) amend the Credit Agreement to increase the amount of permitted Capital
Expenditures for Fiscal Year 1998, in each case as set forth below;
WHEREAS, in consideration of the agreements, covenants and
representations set forth herein, the Agent and the Majority Lenders are willing
to amend the Credit Agreement and the Fourth Amendment on the terms and
conditions set forth herein;
NOW, THEREFORE, in consideration of the foregoing, the Borrower, the
Parent Guarantor, the Agent and the Majority Lenders agree as follows:
1. Definitions. Capitalized terms used and not otherwise defined
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herein have the meanings assigned to them in the Credit Agreement.
2. Amendments to the Credit Agreement. Upon the satisfaction of the
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conditions set forth in Section 4 below, the Credit Agreement is hereby amended
as follows, such amendments to be effective as of the respective dates specified
below:
2.1 Amendments to Section 1.1. Effective as of January 1, 1999,
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Section 1.1 of the Credit Agreement is hereby amended as follows:
(a) the definition of "Borrowers" is amended and restated in
its entirety to read as follows:
Borrowers or Borrower means, notwithstanding any
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contrary definition set forth in the preamble hereto, (i) RSC
USA, as successor in interest to RSC Alabama, RSC Center, RSC
Xxxxx, RSC Industrial, RSC Rents and Xxxxxx Xxxxx and (ii) any
Subsidiary of any Credit Party which becomes a party hereto in
accordance with Section 8.20.
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(b) the definition of "Parent Guarantors" is amended and
restated in its entirety to read as follows:
Parent Guarantors or Parent Guarantor means,
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notwithstanding any contrary definition set forth in the preamble
hereto, RSC.
2.2 Amendment to Section 6.10. Effective as of January 1, 1999,
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Section 6.10 of the Credit Agreement is hereby amended to delete in their
entirety the first through eighth sentences thereof and to substitute in
lieu thereof the following:
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RSC is the record and beneficial owner of all of the shares of capital
stock of each of RSC USA and RSC Canada. RSC has no direct
Subsidiaries other than RSC USA and RSC Canada. RSC USA has no direct
or indirect Subsidiaries (other than Subsidiaries permitted to be
created or acquired under Section 8.20 as to which all actions
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required by Section 8.20 have been taken).
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2.3 Amendment to Section 8.5(f). Effective as of December 31,
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1998, Section 8.5(f) of the Credit Agreement is hereby amended to delete in
its entirety the Maximum Amount of "$335,000,000" set out opposite the 1998
Fiscal Year in the table therein and to substitute in lieu thereof a
Maximum Amount of "$365,000,000".
2.4 Amendment to Section 8.9. Effective as of January 1, 1999,
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Section 8.9 of the Credit Agreement is hereby amended to delete in its
entirety the last sentence thereof.
2.5 Amendments to Section 8.10. Effective as of January 1,
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1999, Section 8.10 of the Credit Agreement is hereby amended as follows:
(a) to delete in its entirety the reference in clause (iii)
thereof to "the Borrowers may declare and pay to RSC Acquisition and
RSC Holdings, and RSC Acquisition and RSC Holdings may declare and pay
to RSC, cash" and to substitute in lieu thereof "the Borrower may
declare and pay cash to RSC"; and
(b) to delete in its entirety the references in clauses (iv)
and (v) thereof to "the Borrowers may declare and pay cash to RSC
Acquisition and RSC Holdings, and RSC Acquisition and RSC Holdings may
declare and pay to RSC, cash" and to substitute in lieu thereof "the
Borrower may declare and pay cash to RSC".
2.6 Amendments to Section 10.1. Effective as of January 1,
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1999, Section 10.1 of the Credit Agreement is hereby amended to delete the
provisions of clauses (a) and (b) in their entirety and to substitute in
lieu thereof "[intentionally deleted]".
2.7 Amendments to Section 10.4(b). Effective as of January 1,
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1999, Section 10.4(b) of the Credit Agreement is hereby amended to delete
in its entirety each reference to "any of RSC, RSC Acquisition (with
respect to the RSC Acquisition Borrowers) or RSC Holdings (with respect to
the RSC Holdings Borrowers)" in clauses (i) and (ii) thereof and to
substitute in lieu thereof "RSC".
3. Amendment to Fourth Amendment. Upon the "Amendment Effective
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Date" (as defined in Section 4 below), Section 3 of the Fourth Amendment is
hereby amended and restated to read as follows:
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3. Agreement to Amend and Restate Credit Agreement. Not later
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than August 31, 1999 (unless the Credit Agreement and the other Credit
Documents shall have been amended and restated, replaced or refinanced
prior to that date), each of the Agent, the Lenders, RSC and RSC USA agree
to enter into a Third Amended and Restated Credit Agreement giving effect
to each amendment to the Credit Agreement and the RSC Subsidiary
Consolidation, together with any amendments and/or amendments and
restatements of the Credit Documents necessary to give effect to the RSC
Subsidiary Consolidation; provided, however, that (i) the Borrower shall
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execute and deliver to the Agent, for delivery to the respective Lenders,
amended and restated Notes on or before the "Amendment Effective Date" (as
defined in the Fifth Amendment to Second Amended and Restated Credit
Agreement dated as of February 10, 1999) and (ii) the Borrower and the
Parent Guarantor shall promptly execute and deliver such new UCC-1
financing statements and/or amendments to previously filed UCC-1 financing
statements as the Agent may reasonably request.
4. Representations and Warranties. Each of the Credit Parties
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hereby represents and warrants to each Lender, the Issuing Bank and the Agent
that, as of the Amendment Effective Date (after giving effect to this Fifth
Amendment):
(a) Each of the representations and warranties contained in the Credit
Agreement and the other Credit Documents are true and correct on and as of
such dates, as if then made, other than representations and warranties that
relate solely to an earlier date;
(b) No Default or Event of Default shall have occurred and is
continuing;
(c) No change, occurrence, event or development or event involving a
prospective change that is reasonably likely to have a Material Adverse
Effect shall have occurred and be continuing; and
(d) No Change of Control has occurred.
5. Amendment Effective Date. This Fifth Amendment shall become
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effective as of the date first written above (the "Amendment Effective Date")
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upon the satisfaction of each of the following conditions:
(a) the Agent shall have received each of the following documents, in
each case in form and substance reasonably satisfactory to the Agent:
(i) counterparts hereof executed by the Borrower, the Parent
Guarantor, the Agent and the Majority Lenders;
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(ii) amended and restated Notes executed by the Borrower and
payable to the respective Lenders; and
(iii) such additional documentation as the Agent may reasonably
request.
(b) All Fees, and all Expenses as to which the Credit Parties have
received an invoice, in each case which are payable on or before the
Amendment Effective Date shall have been paid.
6. Miscellaneous. This Fifth Amendment is a Credit Document. The
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headings herein are for convenience of reference only and shall not alter or
otherwise affect the meaning hereof. Except to the extent specifically amended
hereby for the periods specified herein, the provisions of the Credit Agreement
shall not be amended, modified, impaired or otherwise affected hereby and the
Credit Agreement and all of the Obligations are hereby confirmed in full force
and effect. The execution, delivery and effectiveness of this Fifth Amendment
shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of the Agent, any Lender or the Issuing Bank under any of
the Credit Documents, nor constitute a waiver of any provision of any of the
Credit Documents. Nothing in this Fifth Amendment shall be construed to require
the Agent or any Lender to agree to any other amendments in the future or as a
consent to the Proposed NationsRent Merger.
7. Counterparts. This Fifth Amendment may be executed in any number
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of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument.
8. GOVERNING LAW. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF
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THIS FIFTH AMENDMENT AND ANY DISPUTE ARISING OUT OF OR IN CONNECTION WITH THIS
FIFTH AMENDMENT, WHETHER SOUNDING IN CONTRACT, TORT, EQUITY OR OTHERWISE, SHALL
BE GOVERNED BY THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICTS OF LAWS PROVISIONS
OTHER THAN THOSE CONTAINED IN NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401)
AND DECISIONS OF THE STATE OF NEW YORK.
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IN WITNESS WHEREOF, the Agent, the Lenders, the Borrowers and the
Parent Guarantors have caused this Fifth Amendment to be executed by their
respective officers thereunto duly authorized as of the date first above
written.
BORROWER: RENTAL SERVICE CORPORATION USA, INC.
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By: /s/ Xxxxxxxx Xxxxxx
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Name: Xxxxxxxx Xxxxxx
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Title: Secretary
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PARENT GUARANTOR: RENTAL SERVICE CORPORATION
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By: /s/ Xxxx Xxxxxxxx
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Name: Xxxx Xxxxxxxx
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Title: Assistant Secretary
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AGENT: BT COMMERCIAL CORPORATION,
----- as Agent and as a Revolving Credit Lender
By: /s/ Xxxxxx Sun
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Name: Xxxxxx Sun
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Title: Principal
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REVOLVING CREDIT LENDERS: AMSOUTH BANK
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By: /s/ Xxxxxxx X. Xxxxxxx
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Name: Xxxxxxx X. Xxxxxxx
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Title: Attorney-in-Fact
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BANKBOSTON, N.A.
By: /s/ Xxxxxx Xxxxxxx
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Name: Xxxxxx Xxxxxxx
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Title: Director
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XXX XXXX XX XXXX XXXXXX
By: /s/ Xxxx Xxxxx
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Name: Xxxx Xxxxx
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Title: Senior Relationship Manager
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BANK ONE, ARIZONA, NA
By:
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Name:
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Title:
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BAY VIEW BANK
By: /s/ Xxxx Xxxxxxxxx
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Name: Xxxx Xxxxxxxxx
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Title: Vice President
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BAY VIEW FINANCIAL CORPORATION
By: /s/ Xxxxxx Xxxxx
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Name: Xxxxxx Xxxxx
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Title: Assistant Vice President
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BNY FINANCIAL CORPORATION
By: /s/ Xxxxxxx Xxxxx
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Name: Xxxxxxx Xxxxx
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Title: Vice President
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THE CHASE MANHATTAN BANK
By: /s/ Xxxxxxx X. Xxxxxxxx
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Name: Xxxxxxx X. Xxxxxxxx
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Title: Vice President
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THE CIT GROUP/BUSINESS CREDIT, INC.
By: /s/ Xxxxxxx Xxxxx
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Name: Xxxxxxx Xxxxx
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Title: Assistant Vice President
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COMERICA BANK
By: /s/ Xxxx Xxxxxxx
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Name: Xxxx X. Xxxxxxx
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Title: Account Officer
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CONGRESS FINANCIAL CORPORATION (WESTERN)
By:
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Name:
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Title:
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CREDIT LYONNAIS LOS ANGELES BRANCH
By: /s/ Xxxxxx X. Xxxxx
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Name: Xxxxxx X. Xxxxx
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Title: First Vice President and Manager
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DEUTSCHE FINANCIAL SERVICES CORPORATION
By: /s/ Xxxx X. Xxxxx
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Name: Xxxx X. Xxxxx
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Title: Vice President
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DIME COMMERCIAL CORP.
By:
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Name:
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Title:
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FINOVA CAPITAL CORPORATION
By: /s/ Xxxx Xxxxxxxxx
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Name: Xxxx Xxxxxxxxx
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Title: Vice President
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FIRST UNION NATIONAL BANK
By: /s/ Xxxxx Xxxxxx
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Name: Xxxxx Xxxxxx
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Title: Vice President
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FLEET CAPITAL CORPORATION
By: /s/ Xxxxxxx X. Xxx Xxxxxxxxxx
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Name: Xxxxxxx X. Xxx Xxxxxxxxxx
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Title: Senior Vice President
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FREMONT INVESTMENT & LOAN
By: /s/ Xxxxx Xxxxxxxxxx
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Name: Xxxxx Xxxxxxxxxx
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Title: Vice President
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IBJ WHITEHALL BUSINESS CREDIT CORPORATION
By: /s/ Xxxx Xxxxxx
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Name: Xxxx Xxxxxx
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Title: Vice President
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ISRAEL DISCOUNT BANK
By: /s/ R. Xxxxx Xxxxxxxxx
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Name: R. Xxxxx Xxxxxxxxx
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Title: Vice President
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By: /s/ Xxxxxx Xxxxxx
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Name: Xxxxxx Xxxxxx
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Title: Corporate Banking Representative
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KEY CORPORATE CAPITAL INC.
By: /s/ J. Xxxx Xxxxxxxx
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Name: J. Xxxx Xxxxxxxx
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Title: Assistant Vice President
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LASALLE NATIONAL BANK, N.A.
By: /s/ Xxxxxxxxxxx X. Xxxxxxxx
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Name: Xxxxxxxxxxx X. Xxxxxxxx
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Title: Senior Vice President
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MELLON BANK, N.A.
By: /s/ Xxxxxxx X. Xxxxxxxxxx
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Name: Xxxxxxx X. Xxxxxxxxxx
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Title: Vice President
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NATIONAL BANK OF CANADA
By: /s/ X. X. XxXxxxxxx
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Name: X. X. XxXxxxxxx
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Title: Vice President
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By: Xxxx Xxxxx
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Name: Xxxx Xxxxx
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Title: Vice President
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NATIONSBANK, N.A.
By: /s/ E. Xxxxx Xxxxxxxxxx
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Name: E. Xxxxx Xxxxxxxxxx
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Title: Vice President
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PARIBAS
By:
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Name:
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Title:
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By:
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Name:
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Title:
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PNC BANK, NATIONAL ASSOCIATION
By:
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Name:
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Title:
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THE PROVIDENT BANK
By: /s/ Xxxxx X. York
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Name: Xxxxx X. York
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Title: Vice President
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SANWA BANK CALIFORNIA
By: /s/ Xxxx Xxxxx
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Name: Xxxx Xxxxx
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Title: Vice President
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SUMMIT COMMERCIAL/GIBRALTAR CORP.
(formerly known as Gibraltar Corporation of
America)
By: /s/ Xxxxx X. Xxxxxxxxxxx
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Name: Xxxxx X. Xxxxxxxxxxx
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Title: Vice President
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TRANSAMERICA BUSINESS CREDIT CORPORATION
By: /s/ Xxxxxx X. Xxxxx
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Name: Xxxxxx X. Xxxxx
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Title: Senior Vice President
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UNION BANK OF CALIFORNIA, N.A.
By: /s/ Xxxx X. Xxxxx
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Name: Xxxx X. Xxxxx
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Title: Vice President
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U.S. BANK NATIONAL ASSOCIATION
By: /s/ Xxxxx Xxxxxx
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Name: Xxxxx Xxxxxx
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Title: Vice President
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TERM LOAN LENDERS: ARES LEVERAGED INVESTMENT
----------------- FUND L.P.
By: Ares Management, L.P.
Its general partner
By: Ares Operating Member LLC,
Its general partner
By: /s/ Xxxxx X. Xxxxx
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Name: Xxxxx X. Xxxxx
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Title: Vice President
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BANKERS TRUST COMPANY
By: /s/ Xxxxxxxx X. Xxxxx
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Name: Xxxxxxxx X. Xxxxx
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Title: Vice President
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FIRST DOMINION FUNDING I
By:
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Name:
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Title:
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KZH HIGHLAND-2 LLC
By: Xxxxxxxx Xxxxxx
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Name: Xxxxxxxx Xxxxxx
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Title: Authorized Agent
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KZH ING-2 LLC
By: /s/ Xxxxxxxx Xxxxxx
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Name: Xxxxxxxx Xxxxxx
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Title: Authorized Agent
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PARIBAS CAPITAL FUNDING LLC
By:
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Name:
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Title:
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ML CLO XIX STERLING (CAYMAN) LTD.
By: Sterling Asset Manager, L.L.C.,
as its Investment Advisor
By:
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Name:
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Title:
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TORONTO DOMINION (TEXAS), INC.
By:
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Name:
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Title:
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XXXXX FARGO BANK, N.A., as Attorney-in-Fact for
Xxxxxx CBO 1998-1 Ltd.
By:
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Name:
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Title:
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CRESCENT/MACH I PARTNERS, L.P.
By: TCW Asset Management Company,
its Investment Manager
By:
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Name:
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Title:
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TCW LEVERAGED INCOME TRUST, L.P.
By: TCW Advisers (Bermuda), Ltd.,
as General Partner
By:
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Name:
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Title:
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By: TCW Investment Management Company,
as Investment Adviser
By:
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Name:
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Title:
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TCW LEVERAGED INCOME TRUST II, L.P.
By: TCW Advisers (Bermuda), Ltd.,
as General Partner
By:
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Name:
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Title:
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By: TCW Investment Management Company,
as Investment Adviser
By:
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Name:
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Title:
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