Exhibit 10.18
EXECUTION COPY
NINTH AMENDMENT, WAIVER AND OVERRIDE AGREEMENT
NINTH AMENDMENT, WAIVER AND OVERRIDE AGREEMENT, dated as of June 6,
2002 (this "Amendment"), to the Credit Agreement, dated as of August 11, 1999
(as amended, supplemented or otherwise modified prior to the date hereof, the
"Existing Credit Agreement," as modified hereby and as further amended,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
among CELADON GROUP, INC., a Delaware corporation ("Group") and CELADON TRUCKING
SERVICES, INC., a New Jersey corporation ("Trucking," together with Group, each
a "Borrower," collectively, the "Borrowers") the banks and other financial
institutions parties thereto (the "Lenders"), and ING CAPITAL LLC (formerly
known as ING (U.S.) CAPITAL LLC), as administrative agent (the "Administrative
Agent") and arranger for the Lenders.
RECITALS
The Borrowers have requested that the Administrative Agent and the
Lenders agree to amend, waive and override certain provisions of the Credit
Agreement as set forth in this Amendment. The Administrative Agent and the
Lenders parties hereto are willing to agree to such amendments, waivers and
override provisions, but only on the terms and subject to the conditions set
forth in this Amendment.
NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Borrowers, the Administrative Agent and the Lenders hereby
agree as follows:
1. Defined Terms. Unless otherwise defined herein, terms defined in the
Credit Agreement are used herein as therein defined.
2. Amendments.
(a) Subsection 8.2(d) of the Existing Credit Agreement is hereby
amended by deleting such subsection in its entirety and substituting
in lieu thereof the following new subsection (d), to read in its
entirety as follows:
"(d) within three (3) Business Days following the last
Business Day of every other week, a Borrowing Base
Certificate showing the Borrowing Base as of the last
Business Day of such two week period, certified as complete
and correct by a Responsible Officer;"
(b) Subsections 9.1 (d) and (e) of the Existing Credit Agreement
are hereby amended by deleting such subsections in their entirety and
substituting in lieu thereof the following new subsections (d) and
(e), to read in their entirety as follows:
"(d) Limitation on Leasing. Permit, at any time during any
period set forth below, the sum of (i) all Financing Leases,
and (ii) all obligations of each Borrower or any of its
Subsidiaries in respect of any lease of real or personal
property, including, without limitation, residual payments
required pursuant to terminal rental adjustment clauses set
forth in leases of tractors and trailers the term of which
is more than one year from such time, in respect of which
the Borrower or any of its Subsidiaries is
obligated as lessee or a user, which lease obligations shall
be discounted at a rate equal to the rate set forth in such
lease, to exceed the amount set forth opposite such period
below:
----------------------------------------------------------------- ---------------------
Test Period Amount
----------------------------------------------------------------- ---------------------
September 30, 2001 to December 31, 2002 $142,000,000
---------------------------- -------- --------------------------- ---------------------
January 1, 2003 to June 30, 2003 $144,000,000
---------------------------- -------- --------------------------- ---------------------
(e) Minimum EBITDA. Permit Consolidated EBITDA for any
fiscal quarter set forth below to be less than the amount
set forth opposite such fiscal quarter in the column headed
"Fiscal Quarter Amount" below; provided, however, in the
event that the Consolidated EBITDA for such fiscal quarter
is less than the amount set forth opposite such fiscal
quarter in the column headed "Fiscal Quarter Amount" below,
the Borrowers shall nonetheless be in compliance with this
subsection if (1) in the case of the fiscal quarters ending
March 31, 2002, June 30, 2002, September 30, 2002 and
December 31, 2002, respectively, the Cumulative Consolidated
EBITDA for such fiscal quarter exceeds the amount set forth
opposite such fiscal quarter in the column headed
"Cumulative Amount" below (for purposes of this subsection,
"Cumulative Consolidated EBITDA" shall mean the aggregate
amount of Consolidated EBITDA for a period beginning with
the fiscal quarter ending December 31, 2001 and ending at
the end of the relevant fiscal quarter), or (ii) in the case
of the fiscal quarters ending March 31, 2003 and June 30,
2003, respectively, the aggregate amount of Consolidated
EBITDA for the four consecutive fiscal quarters ending on
March 31, 2003 and June 30, 2003, respectively, exceeds the
amount set forth opposite such fiscal quarter in the column
headed "Cumulative Amount" below:
--------------------------------- ----------------------- ----------------------
Fiscal Quarter Ending Fiscal Quarter Amount Cumulative Amount
--------------------------------- ----------------------- ----------------------
December 31, 2001 $4,650,000 $4,650,000
--------------------------------- ----------------------- ----------------------
March 31, 2002 $4,750,000 $9,400,000
--------------------------------- ----------------------- ----------------------
June 30, 2002 $5,000,000 $14,400,000
--------------------------------- ----------------------- ----------------------
September 30, 2002 $5,300,000 $19,700,000
--------------------------------- ----------------------- ----------------------
December 31, 2002 $5,300,000 $25,000,000
--------------------------------- ----------------------- ----------------------
March 31, 2003 $5,500,000 $22,000,000
--------------------------------- ----------------------- ----------------------
June 30, 2003 $5,700,000 $23,000,000"
--------------------------------- ----------------------- ----------------------
3. Waivers.
(a) Each of the Administrative Agent and the Lenders hereby waive
any Default or Events of Default resulting from the Borrowers' failure
to comply with (i) Section 5.5(c) (Mandatory Prepayments), (ii)
Section 9.2 (Limitation on Indebtedness), (iii) Section 9.3
(Limitation on Liens), and (iv) Section 9.6(a) (Limitation on Sale of
Assets) of the Existing
Credit Agreement as a result of the execution
and delivery of the Purchase and Sale Agreement, dated March 18, 2002
(as in effect on the date hereof and as such Purchase and Sale
Agreement may be modified, amended or supplemented with the consent of
the Administrative Agent, the "Sale Agreement"), between Trucking, as
buyer, and Foothill Capital Corporation, as seller, and any other
documents
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executed and delivered in connection therewith (such documents,
together with the Sale Agreement, the "Sale Documents"), and the
performance by Trucking of its obligations under the Sale Documents in
accordance with the terms thereof; provided, that such waiver is
granted upon the following conditions: (A) the Sales Documents are not
modified, amended or supplemented without the consent of the
Administrative Agent, (B) the Borrowers have delivered to the
Administrative Agent a true and complete copy of all the Sale
Documents, and (C) the Borrowers have satisfied all the requirements
set forth in Section 8.11 (Additional Collateral; Additional
Guarantors) of the Existing
Credit Agreement. It is further agreed
that if the Borrowers fail to satisfy any of the conditions set forth
herein, such waiver shall fail to be in effect.
(b) Each of the Administrative Agent and the Lenders hereby waive
any Default or Events of Default resulting from the Borrowers' failure
to comply with (1) Section 5.5(c) (Mandatory Prepayments), and (ii)
Section 9.6(a) (Limitation on Sale of Assets) of the Existing
Credit
Agreement as a result of the execution and delivery of the Auction
Agreement, dated March 18, 2002 (as in effect on the date hereof and
as such Auction Agreement may be modified, amended or supplemented
with the consent of the Administrative Agent, the "Auction
Agreement"), between Trucking, as seller, and Xxxxxx & Xxxxxx, Inc. --
Auctioneers, as auctioneers, and the performance by Trucking of its
obligations under the Auction Agreement in accordance with the terms
thereof; provided, that such waiver is granted upon the following
conditions: (A) the Auction Agreement is not modified, amended or
supplemented without the consent of the Administrative Agent, (B) the
Borrowers have delivered to the Administrative Agent a true and
complete copy of the Auction Agreement and any other documents
executed and delivered in connection therewith, and (C) the Borrowers
have satisfied all the requirements set forth in Section 8.11
(Additional Collateral; Additional Guarantors) of the Existing Credit
Agreement. It is further agreed that if the Borrowers fail to satisfy
any of the conditions set forth herein, such waiver shall fail to be
in effect.
4. Override Provisions. Notwithstanding the provisions of Sections 9.6(a)
and 5.5(c) of the Existing Credit Agreement, in the event Trucking enters into
an agreement with Transport International Pool ("TIP") for the sale by Trucking
to TIP of 300 trailers and other equipment thereto (as more accurately described
in the Celadon Proposal -- Trade Group 5, dated February 27, 2002 (as in effect
on the date hereof and as such TIP Proposal may be modified, amended or
supplemented with the consent of the Administrative Agent, the "TIP Proposal"),
50% of the Net Proceeds of such sale (regardless if such sale is a single
payment or a series of payments) shall be applied first to installments of
principal of the Term Loans until paid in full, and second to the reduction of
the Revolving Credit Commitments and the prepayment of the Revolving Credit
Loans and/or to cash collateralize or replace Letters of Credit. Prepayments of
installments of Term Loans shall be applied in the inverse order of maturity and
such amounts so prepaid may not be reborrowed. Such override provisions provided
for herein are granted on the following conditions: (A) the TIP Proposal is not
modified, amended or supplemented without the consent of the Administrative
Agent, (B) the Borrowers have delivered to the Administrative Agent a true and
complete copy of the TIP Proposal and any other documents executed and delivered
in connection therewith, and (C) the Borrowers have satisfied all the
requirements set forth in Section 8.11 (Additional Collateral; Additional
Guarantors) of the Existing Credit Agreement. It is further agreed that if the
Borrowers fail to satisfy any of the conditions set forth herein, such override
provisions shall fail to be in effect.
5. Condition Precedent. This Amendment shall become effective on the date
(the "Amendment Effective Date") on which the following conditions precedent
shall have been satisfied:
(a) receipt by the Administrative Agent of this Amendment,
executed and delivered by duly authorized officers of the Lenders and
the Borrowers and acknowledged by each of the Guarantors; and
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(b) receipt by the Administrative Agent of any other documents
relating hereto that shall be reasonably requested by the
Administrative Agent.
6. No Default. On the Amendment Effective Date, (i) the Borrowers shall be
in compliance with all the terms and provisions set forth in the Loan Documents
on its part to be observed or performed, (ii) the representations and warranties
made and restated by each Borrower pursuant to Section 7 of this Amendment shall
be true and complete on and as of such date with the same force and effect as if
made on and as of such date, and (iii) after giving effect to the waivers and
override provisions set forth in Sections 3 and 4 of this Amendment,
respectively, no Default or Event of Default shall have occurred and be
continuing on such date.
7. Representations and Warranties. To induce the Administrative Agent and
the Lenders to enter into this Amendment, the Borrowers hereby represent and
warrant to the Administrative Agent and the Lenders that, after giving effect to
the amendments, waivers and override provisions provided for herein, the
representations and warranties contained in the Credit Agreement and the other
Loan Documents will be true and correct in all material respects as if made on
and as of the date hereof and that no Default or Event of Default will have
occurred and be continuing.
8. Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Delivery of an executed signature page of this Amendment by
facsimile transmission shall be effective as delivery of an executed counterpart
of this Amendment.
9. Expenses. Each Borrower, jointly and severally, hereby agrees to pay and
reimburse the Administrative Agent for all of the reasonable and documented
out-of-pocket costs and expenses incurred by the Administrative Agent in
connection with the preparation, execution and delivery of this Amendment,
including, without limitation, the fees and disbursements of Cadwalader,
Xxxxxxxxxx & Xxxx, counsel to the Administrative Agent.
10. Applicable Law. This Amendment shall be governed by, and construed and
interpreted in accordance with, the laws of the state of
New York.
[SIGNATURE PAGES FOLLOW]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered as of the day and year first above written.
CELADON GROUP, INC.
By: /s/ Xxxxx Xxxxxxx
-----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
CELADON TRUCKING SERVICES, INC.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
ING CAPITAL LLC (formerly known as ING
(U.S.) CAPITAL LLC), as Administrative
Agent and as a Lender
By: /s/ Xxxxxxxx X. Xxxxx
-----------------------------------
Name: Xxxxxxxx X. Xxxxx
Title: Director
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The undersigned Lenders hereby consent and agree to the foregoing
Amendment:.
KEYBANK NATIONAL ASSOCIATION,
as a Lender
By: /s/ Xxxxx Xxxxxxxx
-----------------------------------
Name: Xxxxx Xxxxxxxx
Title: Vice President
NATIONAL BANK OF CANADA,
as a Lender
By: PNC National Association, its
Attorney-in-Fact
By: /s/ Xxxxxxx X. Xxxxx
------------------------------------
Name: Xxxxxxx X. Xxxxx
Title: SVP
UNION PLANTERS BANK, N.A.,
as a Lender
By: /s/ Xxxxxx X. Xxxxx
----------------------------------
Name: Xxxxxx X. Xxxxx
Title: Vice President
THE NORTHERN TRUST COMPANY,
as a Lender
By: /s/ Xxxxxxx X. Xxxxx
----------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President
FIFTH THIRD BANK, INDIANA,
as a Lender
By: /s/ Xxxxxxx Xxxx
----------------------------------
Name: Xxxxxxx Xxxx
Title: Vice President
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The undersigned guarantors hereby consent and agree to the foregoing
Amendment:
CELADON TRUCKING SERVICES OF INDIANA, INC.
By: /s/ Xxxxx Xxxxxxx
-------------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
CELADON TRANSPORTATION, LLP
By: /s/ Xxxxx Xxxxxxx
------------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
CHEETAH BROKERAGE CO.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
CHEETAH TRANSPORTATION CO.
By: /s/ Xxxxx Xxxxxxx
---------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
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INTERNATIONAL FREIGHT HOLDING CORP.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
JML FREIGHT FORWARDING, INC.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
RIL GROUP, LTD.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
RIL, INC.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
WELLINGMUFT HOLDING CO.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
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CELADON LOGISTICS, INC.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
XXXXX EXPRESS, LTD.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
RIL ACQUISITION CORP.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
CELADON XXXXX XXXXXX CO.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
ZIPP EXPRESS, INC.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
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CELADON E-COMMERCE, INC.
By: /s/ Xxxxx Xxxxxxx
----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
XXXXXXXXX0X.XXX, INC.
By: /s/ Xxxxx Xxxxxxx
-----------------------------------
Name: Xxxxx Xxxxxxx
Title: Sec., Treas.
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