AMENDMENT NO. 2 TO THE SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
Exhibit 10.3
EXECUTION COPY
AMENDMENT NO. 2
TO THE
SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
AMENDMENT NO. 2 TO THE SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT, dated as of November 9, 2015 (this “Amendment”), to the Second Amended and Restated Loan and Security Agreement dated as of December 31, 2013 (as amended prior to the date hereof, the “Loan Agreement”), between and among, on the one hand, the lenders from time to time party thereto (such lenders, together with their respective successors and assigns, are referred to hereinafter each individually as a “Lender” and collectively as the “Lenders”), XXXXX FARGO CAPITAL FINANCE, LLC, a California limited liability company, as successor in interest to Xxxxx Fargo Capital Finance, Inc. (“WFCF”), as the arranger and administrative agent for the Lenders (in such capacity, the “Agent”), and, on the other hand, LSB INDUSTRIES, INC., a Delaware corporation (“Parent”), each of the Subsidiaries of Parent identified on the signature pages thereto as Borrowers (such Subsidiaries, together with Parent, are referred to hereinafter each individually as a “Borrower”, and individually and collectively, jointly and severally, as “Borrowers”).
1. Capitalized Terms. All capitalized terms used in this Amendment (including, without limitation, in the recitals hereto) and not otherwise defined shall have their respective meanings set forth in the Loan Agreement.
2. New Definitions. Section 1.1 of the Loan Agreement is hereby amended by adding the following defined terms in proper alphabetical order:
““Amendment No. 2” means that certain Amendment No. 2 to the Second Amended and Restated Loan and Security Agreement, dated as of November 9, 2015 among the Loan Parties, the Lenders and the Agent.”
““Amendment No. 2 Effective Date” means the date that all of the conditions to effectiveness set forth in Amendment No. 2 shall be satisfied (or waived by the Agent in its sole discretion).”
3. Continuing Directors. The definition of “Continuing Directors” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
““Continuing Director” means (a) any member of the Board of Directors who was a director (or comparable manager) of Parent on the Original Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Original Closing Date if such individual was appointed or nominated for election to the Board of Directors by a majority of the Continuing Directors.”
4. Eligible Accounts. Clause (p) of the definition of “Eligible Accounts” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
“(p) [Intentionally omitted].”
5. Indebtedness. The definition of “ Indebtedness” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
“Indebtedness” means (a) all obligations of a Loan Party for borrowed money, (b) all obligations of a Loan Party evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations of a Loan Party in respect of letters of credit, bankers acceptances, interest rate swaps, or other financial products, (c) all Capitalized Lease Obligations, (d) all obligations or liabilities of others secured by a Lien on any asset of a Loan Party, irrespective of whether such obligation or liability is assumed, (e) all obligations of a Loan Party for the deferred purchase price of assets (other than trade debt incurred in the ordinary course of a Loan Parties’ business and repayable in accordance with customary trade practices), and (f) any obligation of a Loan Party guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse to a Loan Party) any obligation of the type described in clauses (a) through (e) above of any other Person.”
6. Permitted Liens. Clause (m) of the definition of “Permitted Liens” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
“(m) Liens securing Indebtedness permitted under Section 7.1(l);”
7. Permitted Purchase Money Indebtedness. The definition of “Permitted Purchase Money Indebtedness” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
““Permitted Purchase Money Indebtedness” means, as of any date of determination, Purchase Money Indebtedness outstanding as of such date of determination not to exceed the greater of (x) $35,000,000 and (y) 5.5% of the total consolidated assets of the Loan Parties and their Subsidiaries as reflected on their balance sheet in accordance with GAAP.”
8. Purchase Money Indebtedness. The definition of “Purchase Money Indebtedness” in Section 1.1 of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
““Purchase Money Indebtedness” means Indebtedness (other than the Obligations, but including Capitalized Lease Obligations), incurred at the time of, or within 180 days after, the acquisition of any assets for the purpose of financing all or any part of the acquisition cost thereof.”
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9. Collateral Reporting. Section 6.2 of the Loan Agreement is hereby amended by deleting the phrase “If Excess Availability falls below $30,000,000, Daily; otherwise such documents are not required” in the first row of the table in such section and substituting therefor the following:
“If Excess Availability falls below $30,000,000, Weekly; otherwise such documents are not required;”
10. Financing of Insurance Premiums. Section 7.1(l) of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
“(l) Indebtedness consisting of the financing of insurance premiums in the ordinary course of business, not in excess of the amount of such premiums;”
11. Disposal of Specified Orica Accounts. Section 7.4(c) of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
“(c) [intentionally omitted];”
12. Prepayments of Permitted Purchase Money Indebtedness. Section 7.8(a) of the Loan Agreement is hereby amended and restated in its entirety, to read as follows:
“(a) Except in connection with (i) the Obligations in accordance with this Agreement, (ii) the LSB Notes and any Permitted Purchase Money Indebtedness (which may be prepaid, redeemed or repurchased by any Loan Party without restriction) and (iii) a refinancing permitted by Section 7.1(d), prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of any Loan Party;”
13. Schedule A-1. Schedule A-1 to the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with Schedule A-1 attached hereto and Schedule A-1 attached hereto shall be deemed to be attached as Schedule A-1 to the Loan Agreement.
14. Conditions Precedent. The effectiveness of this Amendment is subject to the fulfillment, in a manner satisfactory to the Agent, of each of the following conditions precedent (the first date upon which all such conditions shall have been satisfied being herein called the “Amendment Effective Date”):
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(i) counterparts of this Amendment duly executed by the Loan Parties, the Agent and the Lenders.
15. Representations and Warranties. Each Loan Party hereby represents and warrants to the Agent and the Lenders as follows:
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16. Miscellaneous.
(d) Governing Law. This Amendment shall be governed by, and construed in accordance with, the law of the State of New York.
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Persons and each of their respective predecessors, agents, employees, attorneys, successors and assigns (collectively, the “Released Parties”) from all possible claims, demands, actions, causes of action, damages, costs, expenses and liabilities whatsoever, whether known or unknown, anticipated or unanticipated, suspected or unsuspected, fixed, contingent or conditional, or at law or in equity, in any case originating in whole or in part on or before the date this Amendment is executed that any Loan Party may now or hereafter have against the Released Parties, if any, irrespective of whether any such claims arise out of contract, tort, violation of law or regulations, or otherwise, and that arise from any Loans, the exercise of any rights and remedies under the Loan Agreement or other Loan Documents, and/or negotiation for and execution of this Amendment, including, without limitation, any contracting for, charging, taking, reserving, collecting or receiving interest in excess of the highest lawful rate applicable.
(h) WAIVER OF JURY TRIAL. EACH LOAN PARTY, THE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AMENDMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.
[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]
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Borrowers: | ||
LSB INDUSTRIES, INC., | ||
an Delaware corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Interim CEO | |
CONSOLIDATED INDUSTRIES L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | President | |
CHEROKEE NITROGEN L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | President | |
CLIMATE MASTER, INC., a Delaware corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President |
Amendment No. 2 to
Second Amended and Restated
CLIMATECRAFT, INC., | ||
an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
CLIMACOOL, CORP., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
INTERNATIONAL ENVIRONMENTAL CORPORATION, an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
THERMACLIME TECHNOLOGIES, INC., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
KOAX CORP., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President |
Amendment No. 2 to
Second Amended and Restated
LSB CHEMICAL L.L.C., | ||
an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
EL DORADO CHEMICAL COMPANY, an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | President | |
CHEMEX I CORP., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | President | |
TRISON CONSTRUCTION, INC., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
CLIMATECRAFT TECHNOLOGIES, INC., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President |
Amendment No. 2 to
Second Amended and Restated
SUMMIT MACHINE TOOL MANUFACTURING L.L.C., | ||
an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
LSB-EUROPA LIMITED, an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
CHEROKEE NITROGEN HOLDINGS, INC., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
XXXXX CHEMICAL COMPANY, an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
CHEMICAL PROPERTIES L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President |
Amendment No. 2 to
Second Amended and Restated
CHEMICAL TRANSPORT L.L.C., | ||
an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
THE CLIMATE CONTROL GROUP, INC., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
CEPOLK HOLDINGS INC., an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | President | |
EL DORADO NITRIC L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
LSB CAPITAL L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President |
Amendment No. 2 to
Second Amended and Restated
EL DORADO AMMONIA L.L.C., | ||
an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
EDC AG PRODUCTS COMPANY L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
EL DORADO ACID II, L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
EL DORADO ACID, L.L.C., an Oklahoma limited liability company | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President | |
EL DORADO NITROGEN, L.P. a Texas limited partnership | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | Executive Vice President |
Amendment No. 2 to
Second Amended and Restated
XPEDIAIR, INC. | ||
an Oklahoma corporation | ||
By: | /s/ Xxxxxx X. Xxxxxxxxx | |
Name: | Xxxxxx X. Xxxxxxxxx | |
Title: | President |
Amendment No. 2 to
Second Amended and Restated
Loan and Security Agreement
Agent and Lenders: | ||
XXXXX FARGO CAPITAL FINANCE, LLC, as Agent | ||
By: | /s/ Xxxx Xxxxxxxxx | |
Name: | Xxxx Xxxxxxxxx | |
Title: | XX | |
XXXXX FARGO BANK, NATIONAL ASSOCIATION, as a Lender | ||
By: | /s/ Xxxx Xxxxxxxxx | |
Name: | Xxxx Xxxxxxxxx | |
Title: | VP |
Amendment No. 2 to
Second Amended and Restated
Loan and Security Agreement
Second Amended and Restated
Schedule A-1
EXCLUDED ACCOUNTS
Account # |
Account Name |
Account Location | ||
5S4-01030-1-9-EMT | LSB Capital L.L.C. | Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated XX Xxx 0000 Xxxxxxxx, XX 00000 | ||
5S4-04K92-1-8-EMT | LSB Capital L.L.C. | Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated XX Xxx 0000 Xxxxxxxx, XX 00000 | ||
422310 | LSB Capital L.L.C. | Bank of America, NA Mail Code NC1-004-03-06 000 X Xxxxxxx Xx Xxxxxxxxx, XX 00000 | ||
1B23567 | LSB Capital L.L.C. | Xxxxx Fargo Securities, LLC 000 Xxxxxx Xxxxxx Xxxxx, 00xx Xxxxx Xxxxxxxxxxx, XX 00000 | ||
250679250 | LSB Industries, Inc. | JPMorgan Chase Bank, N.A. XX Xxx 00000 Xxxxxxxx Xxxx, XX 00000 | ||
5S405C17-1-6-EMT | LSB Industries, Inc. | Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated XX Xxx 0000 Xxxxxxxx, XX 00000 | ||
422978 | LSB Industries, Inc. | Bank of America, NA Mail Code NC1-004-03-06 000 X Xxxxxxx Xx Xxxxxxxxx, XX 00000 |
Schedule A-1