August __, 2002 Canadian Imperial Bank of Commerce as Administrative Agent 425 Lexington Avenue New York, NY 10017 Each of the Lenders party to the Credit Agreement referred to below
Exhibit 99.1
XXXXXXX INTERNATIONAL LIMITED
XXXXXXX INTERNATIONAL NORTH AMERICA, INC.
XXXXXXX INTERNATIONAL BAHAMAS LIMITED
August __, 2002
Canadian Imperial Bank of Commerce
as Administrative Agent
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Each of the Lenders party to the
Credit Agreement referred to below
LETTER AMENDMENT
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Gentlemen and Ladies:
We refer to the Fourth Amended and Restated Revolving Credit Agreement, dated
as of November 9, 2001 (as amended, supplemented, amended and restated or otherwise
modified from time to time, the "Credit Agreement"), among Xxxxxxx International
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Limited, a corporation organized under the laws of The Commonwealth of the Bahamas and
formerly known as Sun International Hotels Limited ("KIL"), Xxxxxxx International
---
North America, Inc., a corporation organized under the laws of the State of Delaware
and formerly known as Sun International North America, Inc. ("KINA"), Xxxxxxx
----
International Bahamas Limited, a corporation organized under the laws of The
Commonwealth of the Bahamas and formerly known as Sun International Bahamas Limited
("KIBL"; KIL, KINA and KIBL are each individually referred to as a "Borrower" and
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collectively referred to as the "Borrowers"), the financial institutions as are or may
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become parties thereto (collectively referred to as the "Lenders"), Canadian Imperial
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Bank of Commerce, acting through one or more of its agencies, branches or affiliates
("CIBC"), as the administrative agent (in such capacity, the "Administrative Agent"),
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Deutsche Bank Alex.Xxxxx Inc. and Bear Xxxxxxx Corporate Lending Inc., as
co-syndication agents (collectively in such capacities, the "Co-Syndication Agents")
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and Bank of America, N.A. and Xxxxx Fargo Bank, N.A., as co-documentation agents
(collectively in such capacities, the "Co-Documentation Agents"). Unless otherwise
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defined in this letter (this "Letter") or the context otherwise requires, terms used
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in this Letter have the meanings provided in the Credit Agreement.
Pursuant to Section 7.1.4(b)(i) of the Credit Agreement, KIBL and its
Subsidiaries are required to maintain "all risks" insurance on their buildings "in an
amount not less than the replacement building value." The Borrowers have advised the
Administrative Agent and the Lenders that full replacement value insurance on its
Bahamas Property is not currently available at a price which is commercially
reasonable. By this Letter, the Borrowers hereby request that Section 7.1.4(b)(i) of
the Credit Agreement be amended to provide that from July 1, 2002 through June 30,
2003 (a) the required level of "all risks" insurance on the Bahamas Property and any
other property subject to a Lien in favor of the Administrative Agent be equal to the
lesser of (i) full replacement building value or (ii) such amount of insurance as the
Administrative Agent may reasonably determine is then available to the Borrowers on
commercially reasonable terms (but in no event less than $150,000,000 with a
deductible of not more than $15,000,000 per occurrence for the first two occurrences
and total coverage for each occurrence thereafter) and (b) the Administrative Agent
and the Borrowers will re-evaluate such insurance coverages and the insurance market
on a quarterly basis and, if necessary, obtain additional insurance. From and after
July 1, 2003, in no event (a) shall the amount of any deductible in respect of the
Borrowers and their Subsidiaries "all risks" insurance exceed $15,000,000 nor
(b) shall the sum of the aggregate outstanding principal amount of all Loans and Letter
of Credit Outstandings exceed the amount of "all risks" insurance maintained from time
to time on the buildings of the Borrowers and their Subsidiaries.
In furtherance thereof, upon the receipt of the approval of the Required
Lenders, it is agreed that:
(A) Section 2.1.3 shall be amended by replacing the period at the end
thereof with "; or" and adding the following subsection thereafter:
"(c) of all Lenders at any time after July 1, 2003 would exceed the
amount of "all risks" insurance maintained from time to time on the buildings
of the Borrowers and their Subsidiaries."
(B) Section 7.1.4(b)(i) shall be amended and restated in its entirety to
read as follows:
(i) From July 1, 2002 through June 30, 2003, "all risks" insurance on
the buildings situate thereon in an amount not less than the lesser of (a) the
replacement building value and (b) such amount of insurance as the
Administrative Agent may reasonably determine is then available to the
Borrowers at a price which is commercially reasonable (which amounts shall be
re-evaluated by the Borrowers, their insurance brokers and the Administrative
Agent within thirty days of the commencement of each calendar, during which
time the Borrowers shall obtain any additional insurance required by the terms
hereof), but in no event less than $150,000,000 with a deductible of not more
than $15,000,000 per occurrence for the first two occurrences and total
coverage for each occurrence thereafter; and from and after July 1, 2003, the
amount of any deductible in respect of the Borrowers and their Subsidiaries
"all risks" insurance shall in no event exceed $15,000,000;
In order to induce the Lenders to agree to the foregoing amendment, the
Borrowers hereby (a) confirm and restate all representations and warranties contained
in the Credit Agreement and the Loan Documents as of the date hereof and (b) confirm
that, after giving effect hereto, no Default has occurred and is continuing. This
Letter shall become effective as of the date first above written upon receipt by the
Administrative Agent of counterparts of this Letter duly executed by each of the
Borrowers, the Required Lenders and each of the Guarantors.
This Letter may be executed by the parties hereto in several counterparts, each
of which shall be an original and all of which shall constitute together but one and
the same agreement. Delivery of an executed counterpart of a signature page to this
Letter by facsimile shall be effective as delivery of a manually executed counterpart
of this Letter.
THIS LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK. Except as expressly stated herein, all of the
terms and provisions of the Credit Agreement and the other Loan Documents shall remain
in full force and effect. This Letter is a Loan Document executed pursuant to the
Credit Agreement and shall be construed and administered in accordance with all of the
terms and provisions of the Credit Agreement. No modification by any Lender hereunder
shall be applicable to subsequent transactions. No modification hereunder shall
require any similar or dissimilar modification hereafter to be granted.
If you are in agreement with the foregoing terms, kindly execute this Letter in
the space provided below and deliver to the Administrative Agent an executed
counterpart of this Letter.
Very truly yours,
XXXXXXX INTERNATIONAL LIMITED
By:_______________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL NORTH AMERICA, INC.
By:_______________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL BAHAMAS LIMITED
By:_______________________________________________
Title:____________________________________________
THE AMENDMENT SET FORTH ABOVE IS
HEREBY AGREED TO AND ACCEPTED
AS OF THE DATE FIRST ABOVE WRITTEN:
___________________________________________
NAME OF INSTITUTION
By:_______________________________________________
Title:____________________________________________
THE UNDERSIGNED GUARANTORS HAVE
REVIEWED AND APPROVED THE ATTACHED
LETTER. BY THEIR SIGNATURES BELOW,
THEY HEREBY RATIFY AND AFFIRM THEIR
OBLIGATIONS UNDER THE GUARANTY.
BIRBO NV
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX HOTELS INTERNATIONAL
MANAGEMENT NV
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL FINANCE
LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX HOTELS INTERNATIONAL
(BERMUDA), LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
ABERDEEN MANAGEMENT LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL
MANAGEMENT LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PARADISE ISLAND LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL TIMESHARE
LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PARADISE SECURITY SERVICES
LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PURPOSEFUL BV
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL MARKETING
(UK) LTD.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INVESTMENTS CONNECTICUT,
INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL DEVELOPMENT
(TIMESHARE) LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
ISLAND HOTEL COMPANY LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERACTIVE LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
BAHAMAS -TRADING LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERACTIVE DATA LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERACTIVE SERVICES
LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INVESTMENTS CALIFORNIA,
INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL NEVADA, INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PARADISE BEACH INN LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PARADISE ENTERPRISES LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PARADISE ACQUISITIONS LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL DEVELOPMENT
LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PARADISE ISLAND FUTURES LIMITED
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL RESORTS, INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
PIV, INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
ISS, INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL MARKETING,
INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL NEW YORK, INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INTERNATIONAL DEVELOPMENT
GROUP, INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
SOLEA VACANCES SA
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
XXXXXXX INVESTMENTS NEW YORK, INC.
By:_______________________________________________
Name:_____________________________________________
Title:____________________________________________
