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EXHIBIT 10.7
FOURTH AMENDMENT AND CONSENT AGREEMENT
THIS FOURTH AMENDMENT AND CONSENT AGREEMENT (this "Agreement"), dated
as of November 8, 2000, is entered into by and among EXTENDICARE HEALTH
SERVICES, INC., a Delaware corporation (the "Borrower"), each of the Persons
identified as a "Guarantor" on the signature pages hereto, each of the Persons
identified as a "Lender" on the signature pages hereto and BANK OF AMERICA,
N.A., formerly NationsBank, N.A., as Agent for the Lenders (in such capacity,
the "Agent").
RECITALS
A. The Borrower, the Guarantors, the Lenders and the Agent, are party
to that certain Credit Agreement dated as of November 26, 1997 (as previously
amended prior to the date hereof, the "Credit Agreement"). Unless otherwise
defined herein or the context otherwise requires, capitalized terms used in this
Agreement, including its preamble and recitals, have the meanings provided in
the Credit Agreement.
B. The Credit Parties have requested that the Required Lenders (i)
amend the Credit Agreement as provided herein and (ii) consent to the sale of
the nursing center located at 0000 xxxxxx Xxxx Xxxxx, Xxxxx, Xxxxxxx to ATORE,
LLC and/or ATORE, LLC (or any affiliate thereof) (the "Buyer") for gross
consideration consisting of $4.8 million consisting of cash and a $1.2 million
promissory note from the Buyer (the "Buyer Note") in a transaction described in
a letter from the Borrower to the Lenders attached hereto as Annex I (the
"Arbors Tampa Transaction").
C. The Required Lenders have agreed to amend the Credit Agreement and
consent to the Arbors Tampa Transaction on the terms and conditions hereinafter
set forth.
NOW, THEREFORE, in consideration of the agreements herein contained,
the parties hereto hereby agree as follows:
1. Amendment to Correct Typographical Error. Section 1 appearing in
that certain Third Amendment and Consent Agreement, dated as of August 11, 2000,
among the Borrower and the other Credit Parties party thereto, the Required
Lenders and the Agent is hereby amended and restated to read as follows:
1. Amendment. A new Section 7.1(n) is hereby added to the
Credit Agreement to read as follows and existing Section 7.1(n) is
hereby reidentified as Section 7.1(o):
(n) Notices Regarding Greystone Transaction. At the
time of the delivery of the financial statements pursuant to
Sections 7.1(a) and 7.1(b), the Credit Parties shall advise
the Agent and the Lenders of the progress of Greystone
Acquisition Tribeca, L.L.C.'s and its affiliates' efforts to
sell the nursing centers
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and assisted living centers acquired in the Greystone
Transaction (as defined in that certain Third Amendment and
Consent Agreement dated as of August 11, 2000 among the Credit
Parties, the Agent and the Required Lenders).
2. Consent. The Required Lenders hereby consent to the Arbors Tampa
Transaction notwithstanding any provision in the Credit Documents (including,
without limitation, Section 8.1, Section 8.2, Section 8.5 and Section 8.6 of the
Credit Agreement) to the contrary, but subject to satisfaction, in the
reasonable determination of the Agent, of each of the following conditions
precedent:
(i) at least $2.0 million of the consideration to be received
by the Credit Parties for the Arbors Tampa Transaction shall be cash or
Cash Equivalents;
(ii) the Borrower shall have delivered to the Agent a Pro
Forma Compliance Certificate hereto demonstrating that, upon giving
effect on a Pro Forma Basis to the Arbors Tampa Transaction, no Default
or Event of Default would exist;
(iii) immediately upon receipt thereof, the Net Cash Proceeds
from the Arbors Tampa Transaction shall be applied to the prepayment of
the Loans in accordance with Section 3.3(b)(ii) of the Credit
Agreement;
(iv) the Credit Parties (a) will pledge the Buyer Note to the
Agent, for the benefit of the Lenders and (b) agree to apply all
payments received on the Buyer Note (net of post-closing transaction
costs) to the payment of the Loans; and
(v) the Agent shall have received such other documents,
agreements or information related to the Arbors Tampa Transaction which
it may reasonably request.
3. Release. Upon the consummation of the Arbors Tampa Transaction, the
Agent shall deliver to the Credit Parties, at the Credit Parties' expense, such
documentation as is reasonably necessary to evidence the release of the Agent's
security interest, if any, in the assets to be sold in the Arbors Tampa
Transaction, including, without limitation, amendments or terminations of UCC
financing statements and mortgage releases, if any.
4. Effective Date. This Agreement shall be and become effective as of
the date hereof at such time as the Agent shall have received executed
counterparts (including facsimile signatures) of this Agreement, which
collectively shall have been duly executed on behalf of each of the Credit
Parties and the Required Lenders.
5. Construction. This Agreement is a Credit Document executed pursuant
to the Credit Agreement and shall (unless otherwise expressly indicated therein)
be construed, administered and applied in accordance with the terms and
provisions of the Credit Agreement.
6. Representations and Warranties. Each Credit Party hereby represents
and warrants that (i) each Credit Party that is party to this Agreement: (a) has
the requisite corporate power and
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authority to execute, deliver and perform this Agreement, as applicable and (b)
is duly authorized to, and has been authorized by all necessary corporate
action, to execute, deliver and perform this Agreement, (ii) the representations
and warranties contained in Section 6 of the Credit Agreement are true and
correct in all material respects on and as of the date hereof upon giving effect
to this Agreement as though made on and as of such date (except for those which
expressly relate to an earlier date) and (iii) no Default or Event of Default
exists under the Credit Agreement on and as of the date hereof upon giving
effect to this Agreement.
7. Acknowledgment. The Guarantors acknowledge and consent to all of the
terms and conditions of this Agreement and agree that this Agreement does not
operate to reduce or discharge the Guarantors' obligations under the Credit
Agreement or the other Credit Documents. The Guarantors further acknowledge and
agree that the Guarantors have no claims, counterclaims, offsets, or defenses to
the Credit Documents and the performance of the Guarantors' obligations
thereunder or if the Guarantors did have any such claims, counterclaims, offsets
or defenses to the Credit Documents or any transaction related to the Credit
Documents, the same are hereby waived, relinquished and released in
consideration of the Lenders' execution and delivery of this Agreement.
8. Counterparts. This Agreement may be executed by the parties hereto
in several counterparts, each of which shall be deemed to be an original and all
of which shall constitute together but one and the same agreement.
9. Binding Effect. This Agreement, the Credit Agreement and the other
Credit Documents embody the entire agreement between the parties and supersede
all prior agreements and understandings, if any, relating to the subject matter
hereof. These Credit Documents represent the final agreement between the parties
and may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements of the parties. Except as expressly modified and amended in this
Agreement, all the terms, provisions and conditions of the Credit Documents
shall remain unchanged and shall continue in full force and effect.
10. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Agreement to be duly executed and delivered as of the date first above
written.
BORROWER: EXTENDICARE HEALTH SERVICES, INC.,
By:
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Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
GUARANTORS: EXTENDICARE HOLDINGS, INC.
EXTENDICARE HEALTH FACILITY
HOLDINGS, INC.
EXTENDICARE HEALTH FACILITIES, INC.
COVENTRY CARE, INC.
NORTHERN HEALTH FACILITIES, INC.
EXTENDICARE HOMES, INC.
EXTENDICARE HEALTH NETWORK, INC.
THE PROGRESSIVE STEP CORPORATION
EXTENDICARE OF INDIANA, INC.
UNITED REHABILITATION SERVICES, INC.
EDGEWOOD NURSING CENTER, INC.
ELDER CREST, INC.
HAVEN CREST, INC.
MEADOW CREST, INC.
OAK HILL HOME OF REST AND CARE, INC.
EXTENDICARE GREAT TRAIL, INC.
FIR LANE TERRACE CONVALESCENT
CENTER, INC.
EXTENDICARE HEALTH NETWORK, INC.
ADULT SERVICES UNLIMITED, INC.
ARBORS EAST, INC.
ARBORS AT TOLEDO, INC.
HEALTH POCONOS, INC.
XXXXXXXX PROPERTIES, INC.
COVENTRY CARE HOLDINGS, INC.
By:
---------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
[Signatures continue.]
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INDIANA HEALTH AND REHABILITATION
CENTER PARTNERSHIP
By: Extendicare Homes, Inc.,
as General Partner
By:
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Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
By: Extendicare of Indiana, Inc.,
as General Partner
By:
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Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
CONCORDIA MANOR, LLC
FIRST COAST HEALTH AND
REHABILITATION CENTER, LLC
XXXXXXX HEIGHTS REHABILITATION
CENTER, LLC
TREASURE ISLE CARE CENTER, LLC
By: Extendicare Homes, Inc., as sole member
By:
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Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
XXXXXXX STREET, WV, LLC
NEW CASTLE CARE, LLC
By: Fir Lane Terrace Convalescent Center, Inc.,
as sole member
By:
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Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
[Signatures continue.]
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ALPINE HEALTH AND REHABILITATION
CENTER, LLC
COLONIAL CARE, LLC
GREENBRIAR CARE, LLC
GREENBROOK CARE, LLC
HERITAGE CARE, LLC
LADY LAKE CARE, LLC
NEW HORIZON CARE, LLC
NORTH REHABILITATION CARE, LLC
PALM COURT CARE, LLC
XXXXXX MANOR, LLC
ROCKLEDGE CARE, LLC
SOUTH HERITAGE HEALTH AND
REHABILITATION CENTER, LLC
THE OAKS RESIDENTIAL AND
REHABILITATION CENTER, LLC
WINTER HAVEN HEALTH AND
REHABILITATION CENTER, LLC
EDGEWOOD CARE, LP
ELDERCREST CARE, LP
HAVEN CARE, LP
MEADOW CARE, LP
OAKHILL CARE, LP
By: Extendicare Health Facilities, Inc.,
as sole member or general partner, as
applicable
By:
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Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
[Signatures continue.]
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ARBORS AT TAMPA, LLC ARBORS
AT BAYONET POINT, LLC
JACKSONVILLE CARE, LLC
SAFETY HARBOR CARE, LLC
KISSIMMEE CARE, LLC ORANGE
PARK CARE, LLC PORT
CHARLOTTE CARE, LLC
SARASOTA CARE, LLC SEMINOLE
CARE, LLC WINTER HAVEN
CARE, LLC BLANCHESTER CARE,
LLC CANTON CARE, LLC
COLUMBUS HEALTH CARE LLC
DAYTON CARE, LLC DELAWARE
CARE, LLC FAIRLAWN CARE,
LLC GALLIPOLIS CARE, LLC
XXXXXXXX CARE, LLC LONDON
CARE, LLC MARIETTA CARE,
LLC TOLEDO CARE, LLC
WATERVILLE CARE, LLC WEST
JEFFERSON CARE, LLC
By: Northern Health Facilities, Inc.,
as sole member
By:
--------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
STONEBRIDGE CARE, LP
By: Extendicare Homes, Inc. and
Coventry Care Holdings, Inc.,
as general partners
By:
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Name: Xxxx X. Xxxxxxxx
Title: Vice President-Finance
[Lenders' Signatures continue.]
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LENDERS: BANK OF AMERICA, N.A.,
formerly NationsBank, N.A.,
individually in its capacity as a
Lender and in its capacity as Agent
By:
-----------------------------------------
Name:
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Title:
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ROYAL BANK OF CANADA
By:
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Name:
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Title:
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FIRSTAR BANK MILWAUKEE, N.A.
By:
-----------------------------------------
Name:
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Title:
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CREDIT LYONNAIS NEW YORK BRANCH
By:
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Name:
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Title:
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POST BALANCED FUND, L.P.
By: Post Advisory Group, Inc.,
its investment advisor
By:
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Name:
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Title:
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DLJ CAPITAL FUNDING, INC.
By:
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Name:
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Title:
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XXX XXXX XX XXXX XXXXXX
By:
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Name:
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Title:
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KEY CORPORATE CAPITAL INC.
By:
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Name:
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Title:
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LASALLE BANK NATIONAL ASSOCIATION
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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BANK ONE, N.A.
By:
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Name:
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Title:
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BANK ONE, N.A. (F/K/A BANK ONE DAYTON)
By:
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Name:
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Title:
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BANK OF MONTREAL
By:
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Name:
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Title:
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THE FUJI BANK, LIMITED
By:
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Name:
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Title:
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U.S. BANK NATIONAL ASSOCIATION
By:
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Name:
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Title:
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BANK OF TOKYO-MITSUBISHI
TRUST COMPANY
By:
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Name:
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Title:
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COMERICA BANK
By:
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Name:
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Title:
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CHASE SECURITIES INC AS AGENT FOR
THE CHASE MANHATTAN BANK
By:
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Name:
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Title:
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BLACK DIAMOND CLO 2000-1 LTD.
By:
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Name:
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Title:
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BLACK DIAMOND CLO 1998-1 LTD.
By:
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Name:
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Title:
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THE PRUDENTIAL INSURANCE
COMPANY OF AMERICA
By:
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Name:
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Title:
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XXXXXXX X XXXXX & SONS SPECIAL
SITUATION PARTNERS L.P.
By:
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Name:
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Title:
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FLEET NATIONAL BANK (f/k/a BankBoston, N.A.)
By:
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Name:
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Title:
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INDOSUEZ CAPITAL FUNDING III,
LIMITED
By: Indosuez Capital,
as Portfolio Advisor
By:
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Name:
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Title:
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MARINER LDC
By:
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Name:
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Title:
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PARIBAS CAPITAL FUNDING LLC
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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KZH CRESCENT LLC
By:
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Name:
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Title:
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KZH CRESCENT-2 LLC
By:
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Name:
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Title:
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ROYALTON COMPANY
By: Pacific Investment Management Company,
as its Investment Advisor
By:
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Name:
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Title:
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CAPTIVA III FINANCE LTD.
By:
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Name:
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Title:
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XXXXXXX NATIONAL LIFE INSURANCE
COMPANY
By: PPM America, Inc., as attorney-in-fact,
on behalf of Xxxxxxx National Life
Insurance Company
By:
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Name:
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Title:
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ARCHIMEDES FUNDING, L.L.C.
By: ING Capital Advisors LLC, as Collateral Manager
By:
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Name:
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Title:
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SENIOR DEBT PORTFOLIO
By: By Boston Management and Research, as
Investment Advisor
By:
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Name:
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Title:
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CYPRESSTREE INVESTMENT PARTNERS I, LTD.
By: CypressTree Investment Management Company, Inc., as
Portfolio Manager
By:
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Name:
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Title:
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XXXX XXXXXXX MUTUAL LIFE
By:
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Name:
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Title:
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XXXX XXXXXXX VARIABLE LIFE
By:
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Name:
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Title:
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NATIONAL CITY BANK
By:
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Name:
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Title:
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STANDARD BANK LONDON LIMITED
By:
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Name:
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Title:
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DELANO COMPANY
By:
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Name:
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Title:
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ANNEX I
See attached letter.
