1
EXHIBIT 4.8
AMENDMENT NO. 5
TO
LETTER OF CREDIT AGREEMENT
THIS AMENDMENT NO. 5 TO LETTER OF CREDIT AGREEMENT, dated as of October
19, 1999, between and among Avondale Xxxxx, Inc., an Alabama corporation (the
"Company"), Avondale Incorporated, a Georgia Corporation, formerly known as
Xxxxxx Xxxxxx Xxxxx, Inc. (the "Parent"), and SunTrust Bank, Atlanta, Georgia, a
state banking corporation organized and existing under the laws of the State of
Georgia (the "Bank");
WITNESSETH:
WHEREAS, The Xxx County Industrial Facilities and Pollution Control
Financing Authority (the "Issuer") has heretofore issued $5,000,000 in aggregate
principal amount of The Xxx County Industrial Facilities and Pollution Control
Financing Authority Refunding Revenue Bonds (Avondale Xxxxx, Inc. Project),
Series 1989 (the "Bonds"), for the purpose of refunding certain industrial
development revenue bonds previously issued by the Issuer to finance certain
yarn and textile products manufacturing facilities in Xxx County, North
Carolina, for the benefit of the Company; and
WHEREAS, the Bank originally issued its irrevocable Letter of Credit
No. SB52403, dated July 13,1989, as amended and reissued, (the "Letter of
Credit"), in connection with the issuance of the Bonds, pursuant to the terms of
a Letter of Credit Agreement, dated as of June 1, 1989, (as heretofore or
hereafter amended, the "Letter of Credit Agreement"), between the Company and
the Bank; and
WHEREAS, the Parent merged, effective August 27, 1993, with the AM
Acquisition, Inc., and, in connection therewith, changed its name from Xxxxxx
Xxxxxx Xxxxx, Inc. to Avondale Incorporated, and the Parent now owns 100% of the
outstanding capital stock of the Company; and
WHEREAS, in connection with such merger, the Parent became a joint and
several obligor with the Company under the Letter of Credit Agreement, as more
fully described in that certain Amendment No. 2 to the Letter of Credit
Agreement, dated as of August 27, 1993, by and among the Parent, the Company and
the Bank, entered into in connection therewith; and
WHEREAS, the Parent, the Company and the Bank have determined that it
would be desirable to amend certain definitions contained in the Letter of
Credit Agreement; and
WHEREAS, Section 11A of the Letter of Credit Agreement provides that an
amendment of the Letter of Credit Agreement shall require the written consent of
the Bank;
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NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parent, the Company and the Bank hereby agree as follows:
Section 1. Definitions. Effective August 27, 1999, Paragraph 9A of the
Letter of Credit Agreement is hereby amended by deleting the definition of "Cash
Flow" in its entirety and substituting in lieu thereof the following definition:
"Cash Flow" means Consolidated Net Income, plus (i) Net Interest
Expense (including interest on the Subordinated Debt), plus (ii) income taxes,
plus (iii) depreciation, plus (iv) amortization, plus or minus, as the case may
be, (v) LIFO Adjustments and plus (vi) the amount of any non-cash write-offs of
obsolete or surplus equipment, spare parts or real property, up to but not in
excess of $10,000,000 during any period of 4 consecutive Fiscal Quarters.
Section 2. Letter of Credit Agreement Ratified and Confirmed. Except as
provided above, all other terms and provisions of the Letter of Credit Agreement
are hereby ratified and confirmed in each respect.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 5
to the Credit Agreement to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first above written.
SUNTRUST BANK, ATLANTA
[CORPORATE SEAL]
By: \s\ Xxxxx X. Xxxx
---------------------
Title: Manager Director
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AVONDALE XXXXX, INC.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
-------------------------
Title: Vice Chairman & CFO
ATTEST:
By: \s\ Xxxxx X. XxXxxxx
--------------------
Title: Assistant Secretary
5
AVONDALE INCORPORATED.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
------------------------
Title: Vice Chairman & CFO
ATTEST:
By: \s\ Xxxxx X. XxXxxxx
---------------------
Title: Assistant Secretary
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AMENDMENT NO. 5
TO
LETTER OF CREDIT AGREEMENT
THIS AMENDMENT NO. 5 TO LETTER OF CREDIT AGREEMENT, dated as of October
19, 1999, between and among Avondale Xxxxx, Inc., an Alabama corporation (the
"Company"), Avondale Incorporated, a Georgia Corporation, formerly known as
Xxxxxx Xxxxxx Xxxxx, Inc. (the "Parent"), and SunTrust Bank, Atlanta, Georgia, a
state banking corporation organized and existing under the laws of the State of
Georgia (the "Bank");
WITNESSETH:
WHEREAS, the City of Walhalla, South Carolina (the "Issuer") has
heretofore issued $5,000,000 in aggregate principal amount of the City of
Walhalla, South Carolina Refunding Revenue Bonds (Avondale Xxxxx, Inc. Project),
Series 1990 (the "Bonds"), for the purpose of refunding certain industrial
development revenue bonds previously issued by the Issuer to finance the
acquisition, construction and equipping of certain textile plant facilities and
certain machinery, equipment and related personal property located in the City
of Walhalla, South Carolina for the benefit of the Company; and
WHEREAS, the Bank originally issued its irrevocable Letter of Credit
No. SB52927, dated December 20, 1990, as amended and reissued, (the "Letter of
Credit"), in connection with the issuance of the Bonds, pursuant to the terms of
a Letter of Credit Agreement, dated as of December 1, 1990, (as heretofore or
hereafter amended, the "Letter of Credit Agreement"), between the Company and
the Bank; and
WHEREAS, the Parent merged, effective August 27, 1993, with AM
Acquisition, Inc., and, in connection therewith, changed its name from Xxxxxx
Xxxxxx Xxxxx, Inc. to Avondale Incorporated, and the Parent now owns 100% of the
outstanding capital stock of the Company; and
WHEREAS, in connection with such merger, the Parent became a joint and
several obligor with the Company under the Letter of Credit Agreement, as more
fully described in that certain Amendment No. 2 to the Letter of Credit
Agreement, dated as of August 27, 1993, by and among the Parent, the Company and
the Bank, entered into in connection therewith; and
WHEREAS, the Parent, the Company and the Bank have determined that it
would be desirable to amend certain definitions contained in the Letter of
Credit Agreement; and
WHEREAS, Section 11A of the Letter of Credit Agreement provides that an
amendment of the Letter of Credit Agreement shall require the written consent of
the Bank;
NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parent, the Company and the Bank hereby agree as follows:
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Section 1. Definitions. Effective August 27, 1999, Paragraph 9A of the
Letter of Credit Agreement is hereby amended by deleting the definition of "Cash
Flow" in its entirety and substituting in lieu thereof the following definition:
"Cash Flow" means Consolidated Net Income, plus (i) Net Interest
Expense (including interest on the Subordinated Debt), plus (ii) income taxes,
plus (iii) depreciation, plus (iv) amortization, plus or minus, as the case may
be, (v) LIFO Adjustments and plus (vi) the amount of any non-cash write-offs of
obsolete or surplus equipment, spare parts or real property, up to but not in
excess of $10,000,000 during any period of 4 consecutive Fiscal Quarters.
Section 2. Letter of Credit Agreement Ratified and Confirmed. Except as
provided above, all other terms and provisions of the Letter of Credit Agreement
are hereby ratified and confirmed in each respect.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 5
to the Credit Agreement to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first above written.
SUNTRUST BANK, ATLANTA
[CORPORATE SEAL]
By: \s\ Xxxxx X. Xxxx
----------------------
Title: Manager Director
9
AVONDALE XXXXX, INC.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
-------------------------
Title: Vice Chairman & CFO
ATTEST:
By: \s\ Xxxxx X. XxXxxxx
---------------------
Title: Assistant Secretary
10
AVONDALE INCORPORATED.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
---------------------------
Title: Vice Chairman & CFO
ATTEST:
By: \s\ Xxxxx X. XxXxxxx
---------------------
Title: Assistant Secretary
11
AMENDMENT NO. 5
TO
LETTER OF CREDIT AGREEMENT
THIS AMENDMENT NO. 5 TO LETTER OF CREDIT AGREEMENT, dated as of October
19, 1999, between and among Avondale Xxxxx, Inc., an Alabama corporation (the
"Company"), Avondale Incorporated, a Georgia Corporation, formerly known as
Xxxxxx Xxxxxx Xxxxx, Inc. (the "Parent"), and SunTrust Bank, Atlanta, Georgia, a
state banking corporation organized and existing under the laws of the State of
Georgia (the "Bank");
WITNESSETH:
WHEREAS, The Industrial Development Board of the Town of Bon Air (the
"Issuer") has heretofore issued $3,000,000 in aggregate principal amount of The
Industrial Development Board of the Town of Bon Air Refunding Revenue Bonds
(Avondale Xxxxx, Inc. Project), Series 1992 (the "Bonds"), for the purpose of
refunding certain industrial development revenue bonds previously issued by the
Issuer to finance the construction of certain improvements to the Company's
existing yarn manufacturing facility located in Bon Air, Alabama and for the
acquisition and installation therein of certain machinery and equipment, for the
benefit of the Company; and
WHEREAS, the Bank originally issued its irrevocable Letter of Credit
No. SB53527, dated April 23, 1992, as amended or reissued, (the "Letter of
Credit"), in connection with the issuance of the Bonds, pursuant to the terms of
a Letter of Credit Agreement, dated as of April 1, 1992, (as heretofore or
hereafter amended, the "Letter of Credit Agreement"), between the Company and
the Bank; and
WHEREAS, the Parent merged, effective August 27, 1993, with AM
Acquisition, Inc., and, in connection therewith, changed its name from Xxxxxx
Xxxxxx Xxxxx, Inc. to Avondale Incorporated, and the Parent now owns 100% of the
outstanding capital stock of the Company; and
WHEREAS, in connection with such merger, the Parent became a joint and
several obligor with the Company under the Letter of Credit Agreement, as more
fully described in that certain Amendment No. 2 to the Letter of Credit
Agreement, dated as of August 27, 1993, by and among the Parent, the Company and
the Bank, entered into in connection therewith; and
WHEREAS, the Parent, the Company and the Bank have determined that it
would be desirable to amend certain definitions contained in the Letter of
Credit Agreement; and
WHEREAS, Section 11A of the Letter of Credit Agreement provides that an
amendment of the Letter of Credit Agreement shall require the written consent of
the Bank;
NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parent, the Company and the Bank hereby agree as follows:
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Section 1. Definitions. Effective August 27, 1999, Paragraph 9A of the
Letter of Credit Agreement is hereby amended by deleting the definition of "Cash
Flow" in its entirety and substituting in lieu thereof the following definition:
"Cash Flow" means Consolidated Net Income, plus (i) Net Interest
Expense (including interest on the Subordinated Debt), plus (ii) income taxes,
plus (iii) depreciation, plus (iv) amortization, plus or minus, as the case may
be, (v) LIFO Adjustments and plus (vi) the amount of any non-cash write-offs of
obsolete or surplus equipment, spare parts or real property, up to but not in
excess of $10,000,000 during any period of 4 consecutive Fiscal Quarters.
Section 2. Letter of Credit Agreement Ratified and Confirmed. Except as
provided above, all other terms and provisions of the Letter of Credit Agreement
are hereby ratified and confirmed in each respect.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 5
to the Credit Agreement to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first above written.
SUNTRUST BANK, ATLANTA
[CORPORATE SEAL]
By: \s\ Xxxxx X. Xxxx
-------------------------
Title: Manager Director
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AVONDALE XXXXX, INC.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
-------------------------
Title: Vice Chairman & CFO
ATTEST:
By:\s\ Xxxxx X. XxXxxxx
---------------------
Title: Assistant Secretary
15
AVONDALE INCORPORATED.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
-------------------------
Title: Vice Chairman & CFO
ATTEST:
By:\s\ Xxxxx X. XxXxxxx
--------------------
Title: Assistant Secretary
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AMENDMENT NO. 4
TO
LETTER OF CREDIT AGREEMENT
THIS AMENDMENT NO. 4 TO LETTER OF CREDIT AGREEMENT, dated as of October
19, 1999, between and among Avondale Xxxxx, Inc., an Alabama corporation (the
"Company"), Avondale Incorporated, a Georgia Corporation, formerly known as
Xxxxxx Xxxxxx Xxxxx, Inc. (the "Parent"), and SunTrust Bank, Atlanta, Georgia, a
state banking corporation organized and existing under the laws of the State of
Georgia (the "Bank");
WITNESSETH:
WHEREAS, Development Authority of Xxxxxx County (the "Issuer") has
heretofore issued $4,000,000 in original principal amount of Development
Authority of Xxxxxx County Industrial Development Revenue Bonds (Xxxxxx Xxxxxx
Xxxxx, Inc. Project), Series 1992A and $2,000,000 in original principal amount
Development Authority of Xxxxxx County Industrial Revenue Refunding Bonds
(Xxxxxx Xxxxxx Xxxxx, Inc. Project), Series 1992B (collectively, the "Bonds"),
for the benefit of Xxxxxx Xxxxxx Xxxxx, Inc.; and
WHEREAS, the Bank originally issued its irrevocable Letter of Credit
No. SB53583, dated June 11, 1992, as amended or reissued, (the "Letter of
Credit"), in connection with the issuance of the Bonds, pursuant to the terms of
a Letter of Credit Agreement, dated as of June 1, 1992, (as heretofore or
hereafter amended, the "Letter of Credit Agreement"), between the Bank and
Xxxxxx Xxxxxx Xxxxx, Inc.; and
WHEREAS, the Parent merged, effective August 27, 1993, with the AM
Acquisition, Inc., and, in connection therewith, changed its name from Xxxxxx
Xxxxxx Xxxxx, Inc. to Avondale Incorporated, and the Parent now owns 100% of the
outstanding capital stock of the Company; and
WHEREAS, in connection with such merger, the Parent, the Company and
the Bank, (in various capacities), entered into an Assignment and Assumption
Agreement, dated as August 27, 1993 (the "Assumption Agreement"), pursuant to
the terms of which the Parent assigned to the Company, and the Company assumed
from the Parent, all right, title and interest of the Parent in, to and under
certain Bond Documents more fully described in the Assumption Agreement,
including, without limitation, the Letter of Credit Agreement, subject to the
requirement that the Parent remain absolutely, irrevocably and unconditionally
liable, jointly and severally with the Company, under the Bond Documents, all as
more fully described in the Assumption Agreement and in that certain Amendment
No. 1 to the Letter of Credit Agreement, dated as of August 27, 1993, by and
among the Parent, the Company and the Bank, entered into in connection
therewith; and
WHEREAS, the Parent, the Company and the Bank have determined that it
would be desirable to amend certain definitions contained in the Letter of
Credit Agreement; and
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WHEREAS, Section 11A of the Letter of Credit Agreement provides that an
amendment of the Letter of Credit Agreement shall require the written consent of
the Bank;
NOW THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parent, the Company and the Bank hereby agree as follows:
Section 1. Definitions. Effective August 27, 1999, Paragraph 9A of the
Letter of Credit Agreement is hereby amended by deleting the definition of "Cash
Flow" in its entirety and substituting in lieu thereof the following definition:
"Cash Flow" means Consolidated Net Income, plus (i) Net Interest
Expense (including interest on the Subordinated Debt), plus (ii) income taxes,
plus (iii) depreciation, plus (iv) amortization, plus or minus, as the case may
be, (v) LIFO Adjustments and plus (vi) the amount of any non-cash write-offs of
obsolete or surplus equipment, spare parts or real property, up to but not in
excess of $10,000,000 during any period of 4 consecutive Fiscal Quarters.
Section 2. Letter of Credit Agreement Ratified and Confirmed. Except as
provided above, all other terms and provisions of the Letter of Credit Agreement
are hereby ratified and confirmed in each respect.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4
to the Credit Agreement to be duly executed and delivered by their respective
officers thereunto duly authorized as of the date first above written.
SUNTRUST BANK, ATLANTA
[CORPORATE SEAL]
By: \s\ Xxxxx X. Xxxx
------------------------
Title: Manager Director
19
AVONDALE XXXXX, INC.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
------------------------
Title: Vice Chairman & CFO
ATTEST:
By: \s\ Xxxxx X. XxXxxxx
--------------------
Title: Assistant Secretary
20
AVONDALE INCORPORATED.
[CORPORATE SEAL]
By: \s\ Xxxx X. Xxxxxxx, Xx.
------------------------
Title: Vice Chairman & CFO
ATTEST:
By: \s\ Xxxxx X. XxXxxxx
--------------------
Title: Assistant Secretary