THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT Dated as of January 2, 2024 among MONTROSE ENVIRONMENTAL GROUP, INC., as the Parent Borrower, MONTROSE ENVIRONMENTAL GROUP LTD., as the Canadian Borrower, CERTAIN...
Exhibit 10.34
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
Dated as of January 2, 2024
among
MONTROSE ENVIRONMENTAL GROUP, INC.,
as the Parent Borrower,
MONTROSE ENVIRONMENTAL GROUP LTD.,
as the Canadian Borrower,
CERTAIN SUBSIDIARIES OF THE PARENT BORROWER,
as the Guarantors,
BMO BANK N.A.,
as successor in interest to Bank of the West
as Administrative Agent, Swing Line Lender and L/C Issuer, immediately prior to giving effect to this Amendment,
BANK OF AMERICA, N.A.,
as Administrative Agent, Swing Line Lender and L/C Issuer, immediately upon giving effect to this Amendment,
and
THE LENDERS
Exhibit 10.34
from time to time party hereto
BANK OF AMERICA, N.A.,
as Sole Bookrunner and Joint Lead Arranger
and
BMO BANK N.A.,
and CAPITAL ONE, NATIONAL ASSOCIATION,
as Joint Lead Arrangers
and
JPMORGAN CHASE BANK, N.A.,
as Syndication Agent
Exhibit 10.34
THIRD AMENDMENT TO CREDIT AGREEMENT AND
APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
This THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT (this “Amendment”) is entered into as of January 2, 2024, by and among MONTROSE ENVIRONMENTAL GROUP, INC., a Delaware corporation (the “Parent Borrower”), MONTROSE ENVIRONMENTAL GROUP LTD., a company incorporated under the laws of the Province of British Columbia (the “Canadian Borrower”; and together with the Parent Borrower, each, a “Borrower” and collectively, the “Borrowers”), the Guarantors party hereto, the Lenders (as defined below) party hereto (constituting Required Lenders as of the date hereof under the Credit Agreement (as defined below), the “Required Lenders”), BMO BANK N.A., as successor in interest to Bank of the West (“BMO”), as Administrative Agent, the L/C Issuer and the Swing Line Lender immediately prior to giving effect hereto, and BANK OF AMERICA, N.A. (“Bank of America”), as Administrative Agent, the L/C Issuer and the Swing Line Lender upon giving effect to this Amendment.
W I T N E S S E T H:
WHEREAS, the Borrowers, the Guarantors (as defined therein), each financial institution from time to time party thereto (collectively, the “Lenders” and individually each a “Lender”), BMO, as Administrative Agent, Swing Line Lender and L/C Issuer, are parties to that certain Credit Agreement, dated as of April 27, 2021 (as amended by that certain First Amendment to Credit Agreement, dated as of August 30, 2022, and that certain Second Amendment to Credit Agreement, dated as of May 26, 2023, and as may be further amended, restated, amended and restated, modified or supplemented from time to time, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings assigned to such terms in the Credit Agreement), pursuant to which the Lenders have made and will make certain financial accommodations available to the Borrower; and
WHEREAS, pursuant to the Successor Agency Agreement, dated as of the date hereof, among BMO, Bank of America, and the Parent Borrower (the “Successor Agency Agreement”), BMO has given notice of its intention to resign as Administrative Agent, effective as of the date hereof; and
WHEREAS, (a) the Required Lenders desire to (i) appoint Bank of America as the successor Administrative Agent, effective as of the date hereof, and (ii) make certain other amendments to the Credit Agreement, and (b) the Parent Borrower desires to consent to the appointment of Bank of America as the successor Administrative Agent and the amendments to the Credit Agreement, in each case, subject to the terms and conditions set forth in this Amendment and the Successor Agency Agreement.
NOW THEREFORE, in consideration of the premises, the terms and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
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Exhibit 10.34
“Autoborrow Agreement” has the meaning specified in Section 2.04(g). Any Autoborrow Agreement shall be a Loan Document.
“Bank of America” means Bank of America, N.A.
“Third Amendment” means the Third Amendment to Credit Agreement and Appointment of Successor Administrative Agent, dated as of the Third Amendment Effective Date, among the Borrowers, the Guarantors party thereto, the Lenders party thereto, BMO Bank N.A., as successor in interest to Bank of the West, in its capacity as the resigning Administrative Agent and Bank of America, in its capacity as the successor Administrative Agent.
“Third Amendment Effective Date” means January 2, 2024.
“Administrative Agent” means Bank of America (or any of its designated branch offices or affiliates) (as successor Administrative Agent appointed pursuant to the Third Amendment), in its capacity as administrative agent under any of the Loan Documents, and any successor administrative agent.
“Arrangers” means BofA, BMO Bank N.A., and Capital One, in their capacities as joint lead arrangers.
“Base Rate” means, for any day, a floating interest rate per annum equal to the highest of (a) the rate of interest from time to time announced by the Administrative Agent at its principal office as its prime commercial lending rate (it being understood that such prime commercial rate is a reference rate and does not necessarily represent the lowest or best rate being charged by the
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Administrative Agent to any customer and such rate is set by the Administrative Agent based upon various factors including the Administrative Agent’s costs and desired return, general economic conditions and other factors), (b) the sum of one half of one percent (0.50%) per annum and the Federal Funds Rate and (c) the sum of (x) the Adjusted Term SOFR calculated for each such day based on an Interest Period of one month determined two (2) Business Days prior to such day (giving effect to the minimum Adjusted Term SOFR of 0.00% per annum), plus (y) one percent (1.00%) per annum, in each instance, as of such day. Any change in the Base Rate due to a change in any of the foregoing shall be effective on the effective date of such change in the Administrative Agent’s prime commercial lending rate, the Federal Funds Rate or Adjusted Term SOFR for an Interest Period of one (1) month; provided that if Base Rate as so determined shall ever be less than the one percent (1.00%), then Base Rate shall be deemed to be one percent (1.00%).
“Fee Letter” means one or all of, as the context may require, (i) the Fee Letter, dated as of the Closing Date (the “BMO Letter”), between the Parent Borrower and BMO Bank N.A., as successor in interest to Bank of the West, in its capacity as the Administrative Agent prior to the Third Amendment Effective Date, (ii) the Fee Letter, dated as of December 15, 2023, between the Parent Borrower and BMO Bank N.A., as successor in interest to Bank of the West, in its capacity as the Administrative Agent prior to the Third Amendment Effective Date, and (iii) the Fee Letter, dated as of the Third Amendment Effective Date, between the Parent Borrower and Bank of America, in its capacity as Administrative Agent. The parties acknowledge and agree that the BMO Letter has terminated on the Third Amendment Effective Date.
“L/C Issuer” means Bank of America, or any Lender or an Affiliate thereof or a bank or other legally authorized Person, in each case, that agrees to issue Letters of Credit hereunder and is reasonably acceptable to Administrative Agent, in such Person’s capacity as an issuer of Letters of Credit hereunder.
“Swing Line Lender” means, each in its capacity as Swing Line Lender hereunder, Bank of America or, upon the resignation of Bank of America as Administrative Agent hereunder, any Lender (or Affiliate or Approved Fund of any Lender) that agrees, with the approval of Administrative Agent (or, if there is no such successor Administrative Agent, the Required Lenders) and the Parent Borrower, to act as the Swing Line Lender hereunder.
“Swing Line Sublimit” means an amount equal to the lesser of (a) the Aggregate Revolving Commitments and (b) $20,000,000. The Swing Line Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments.
1.09 Additional Alternative Currencies.
(a) The Parent Borrower may from time to time request that Revolving Loans be made and/or Letters of Credit be issued in a currency other
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Exhibit 10.34
than Dollars and those specifically listed in the definition of “Alternative Currency”; provided that such requested currency is a lawful currency that is readily available and freely transferable and convertible into Dollars. In the case of any such request with respect to the making of Revolving Loans, such request shall be subject to the approval of the Administrative Agent and each Lender with a Revolving Commitment; and in the case of any such request with respect to the issuance of Letters of Credit, such request shall be subject to the approval of the Administrative Agent and the L/C Issuers.
(b) Any such request shall be made to the Administrative Agent not later than 11:00 a.m., twenty (20) Business Days prior to the date of the desired Credit Extension (or such other time or date as may be agreed by the Administrative Agent and, in the case of any such request pertaining to Letters of Credit, the L/C Issuers, in its or their sole discretion). In the case of any such request pertaining to Revolving Loans, the Administrative Agent shall promptly notify each Lender with a Revolving Commitment thereof; and in the case of any such request pertaining to Letters of Credit, the Administrative Agent shall promptly notify each L/C Issuer thereof. Each Lender with a Revolving Commitment (in the case of any such request pertaining to Revolving Loans) or each L/C Issuer (in the case of a request pertaining to Letters of Credit) shall notify the Administrative Agent, not later than 11:00 a.m., ten Business Days after receipt of such request whether it consents, in its sole discretion, to the making of Revolving Loans or the issuance of Letters of Credit, as the case may be, in such requested currency.
(c) Any failure by a Lender or a L/C Issuer, as the case may be, to respond to such request within the time period specified in the preceding sentence shall be deemed to be a refusal by such Xxxxxx or L/C Issuer, as the case may be, to permit Revolving Loans to be made or Letters of Credit to be issued in such requested currency. If the Administrative Agent and all the applicable Lenders consent to making Revolving Loans in such requested currency and the Administrative Agent and such Lenders reasonably determine that an appropriate interest rate is available to be used for such requested currency, the Administrative Agent shall so notify the Parent Borrower and (i) the Administrative Agent and such Lenders may amend this Agreement to the extent necessary to add the applicable interest rate for such currency and any applicable adjustment for such rate and (ii) to the extent this Agreement has been so amended to reflect the appropriate rate for such currency, such currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of any borrowings of Revolving Loans. If the Administrative Agent and each L/C Issuer consent to the issuance of Letters of Credit in such requested currency, the Administrative Agent shall so notify the Parent Borrower and such currency shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for purposes of any Letter of Credit issuances. If the Administrative Agent shall fail to obtain consent to any request for an additional currency under this Section 1.09, the Administrative Agent shall promptly so notify the Parent Borrower.
(g) Autoborrow Arrangement. In order to facilitate the borrowing of Swing Line Loans, the Parent Borrower and the Swing Line Lender may mutually agree to, and are hereby authorized to, enter into an autoborrow
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Exhibit 10.34
arrangement in form and substance satisfactory to the Swing Line Lender and the Administrative Agent (the “Autoborrow Agreement”) providing for the automatic advance by the Swing Line Lender of Swing Line Loans under the conditions set forth in the Autoborrow Agreement, subject to the conditions set forth herein. At any time an Autoborrow Agreement is in effect, advances under the Autoborrow Agreement shall be deemed Swing Line Loans for all purposes hereof, except that Borrowings and prepayments of Swing Line Loans under the Autoborrow Agreement shall be made in accordance with the Autoborrow Agreement (and for the avoidance of doubt, the provisions of Sections 2.04(b) and 2.05(a)(ii) with respect to minimum and incremental Borrowing and prepayment amounts, and other requirements for Swing Lien Loans, shall not apply); provided that any automatic advance made by Bank of America in reliance of the Autoborrow Agreement shall be deemed a Swing Line Loan as of the time such automatic advance is made notwithstanding any provision in the Autoborrow Agreement to the contrary. For purposes of determining the Total Revolving Outstandings at any time during which an Autoborrow Agreement is in effect (other than for purposes of calculating Commitment Fees), the Outstanding Amount of all Swing Line Loans shall be deemed to be the amount of the Swing Line Sublimit. For purposes of any Swing Line Borrowing pursuant to the Autoborrow Agreement, all references to Bank of America in the Autoborrow Agreement shall be deemed to be a reference to Bank of America, in its capacity as Swing Line Lender hereunder.
(iv) each Swing Line Loan shall bear interest on the outstanding principal amount thereof from the applicable borrowing date, at a rate per annum equal to the Base Rate plus the Applicable Rate (or with respect to any Swing Line Loan advanced pursuant to an Autoborrow Agreement, such other rate as separately agreed in writing between the Parent Borrower and the Swing Line Lender).
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Exhibit 10.34
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Exhibit 10.34
[SIGNATURE PAGES FOLLOWS]
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Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first written above.
BORROWERS:
MONTROSE ENVIRONMENTAL GROUP, INC.
a Delaware corporation
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Chief Financial Officer
MONTROSE ENVIRONMENTAL GROUP LTD.
a company amalgamated under the laws of the Province of British
Columbia
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Treasurer
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
GUARANTORS:
ANALYTICAL ENVIRONMENTAL SERVICES
a California corporation
ADVANCED GEOSERVICES CORP.
a Pennsylvania corporation
ENTHALPY ANALYTICAL, LLC
a Delaware limited liability company
ENVIRONMENTAL PLANNING SPECIALISTS, INC.
a Georgia corporation
ES ENGINEERING SERVICES, LLC
a Delaware limited liability company
FRS ENVIRONMENTAL REMEDIATION, INC.
a Florida corporation
XXXXXXXXX ENVIRONMENTAL CONSULTING, LLC
a California limited liability company
MONTROSE AIR QUALITY SERVICES, LLC
a Delaware limited liability company
MONTROSE WATER AND SUSTAINABILITY SERVICES, INC.
a Delaware corporation
PARS ENVIRONMENTAL, INC.
a New Jersey corporation
MONTROSE PLANNING & PERMITTING, LLC
a Delaware limited liability company
MONTROSE WASTE-TO-RESOURCES, LLC
a Delaware limited liability company
EMERGING COMPOUNDS TREATMENT TECHNOLOGIES, INC.
a Massachusetts corporation
MONTROSE FOREIGN HOLDINGS, INC.
a Delaware corporation
THE CENTER FOR TOXICOLOGY AND ENVIRONMENTAL HEALTH, L.L.C.
an Arkansas limited liability company
MSE GROUP, LLC
a Texas limited liability company
SENSIBLEIOT, LLC
a California limited liability company
ENVIRONMENTAL INTELLIGENCE, LLC
a California limited liability company
HORIZON WATER AND ENVIRONMENT, LLC
a California limited liability company
TRIAD ENVIRONMENTAL CONSULTANTS, INC.
a Tennessee corporation
AIRKINETICS, INC.
a California corporation
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Treasurer
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
MONTROSE MEASUREMENTS AND ANALYTICS, LLC
a Delaware limited liability company
MONTROSE SERVICES, LLC
a Delaware limited liability company
By: Montrose Environmental Group, Inc.
Its: Member
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Chief Financial Officer
CTEH LEASING, L.L.C.
an Arkansas limited liability company
CTEH PROPERTIES, L.L.C.
an Arkansas limited liability company
CTEH GOVERNMENT SERVICES, LLC
an Arkansas limited liability company
CTEH IT SERVICES, LLC
an Arkansas limited liability company
By: The Center for Toxicology and Environmental Health, L.L.C.
Its: Member
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Treasurer
ENTHALPY CSV, INC.
a California corporation
By: /s/ Xxxx Xxxxxxxx
Name: Xxxx Xxxxxxxx
Title: Secretary and Treasurer
MATRIX SOLUTIONS INC.
an Alberta corporation
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Chief Financial Officer
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
MONTROSE ENVIRONMENTAL SOLUTIONS, INC.
a Delaware corporation
HUCO CONSULTING INC.
a Texas corporation
ENVIRONMENTAL ALLIANCE, INC.
a Delaware corporation
ENVIRONMENTAL STANDARDS, INC.
a Pennsylvania corporation
By: /s/ Xxxxx Xxxxx
Name: Xxxxx Xxxxx
Title: Treasurer
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
ADMINISTRATIVE AGENT,
prior to giving effect to this Amendment:
BMO BANK N.A.,
as successor in interest to Bank of the West
By: /s/ Xxxxx Xxxxxx
Name: Xxxxx Xxxxxx
Title: Director
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
ADMINISTRATIVE AGENT,
after to giving effect to this Amendment:
BANK OF AMERICA, N.A.,
as Administrative Agent
By: /s/ Xxxxxxx Xxxx
Name: Xxxxxxx Xxxx
Title: Vice President
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
LENDERS: bank of america, n.a.,
as a Lender, Swing Line Lender and L/C Issuer
By: /s/ Xxxxxxxx Xxx
Name: Xxxxxxxx Xxx
Title: Senior Vice President
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
JPMORGAN CHASE BANK, N.A.,
as a Lender
By: /s/ Xxxx Xxxxx
Name: Xxxx Xxxxx
Title: Vice President
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
BMO BANK N.A. (as successor in interest to Bank of the West),
as a Lender
By: /s/ Xxxxx Xxxxxx
Name: Xxxxx Xxxxxx
Title: Director
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
U.S. BANK NATIONAL ASSOCIATION (successor to MUFG Union Bank, N.A), as a Lender
By: /s/ Xxxxxx Xxxxxx
Name: Xxxxxx Xxxxxx
Title: Senior Vice President
THIRD AMENDMENT TO CREDIT AGREEMENT AND APPOINTMENT OF SUCCESSOR ADMINISTRATIVE AGENT
MONTROSE ENVIRONMENTAL GROUP, INC.
ANNEX I
Bank of America Notice Information
[omitted]