AMENDMENT NO. 2 AND CONSENT
Exhibit 4.48
AMENDMENT
NO. 2 AND CONSENT
AMENDMENT
NO. 2 AND CONSENT, dated as of June 30, 2008 (this "Amendment"), to the
Credit Agreement, dated as of July 17, 2007 and amended by Amendment No. 1 dated
as of February 14, 2008 (the "Credit Agreement"),
by and among the lenders identified on the signature pages thereof (such
lenders, together with their respective successors and permitted assigns, are
referred to hereinafter each individually as a "Lender" and collectively as the
"Lenders"),
ABLECO FINANCE LLC, a Delaware limited liability
company, as the administrative agent for the Lenders (in such capacity, together
with its successors and assigns in such capacity, "Agent"), BAIRNCO CORPORATION, a
Delaware corporation ("Parent"), and each of
Parent's Subsidiaries identified on the signature pages thereof as a Borrower
(such Subsidiaries, together with Parent, are referred to hereinafter each
individually as a "Borrower", and
collectively, jointly and severally, as the "Borrowers"), and each
of Parent's Subsidiaries identified on the signature pages thereof as a
Guarantor (such Subsidiaries are referred to hereinafter each individually as a
"Guarantor",
and individually and collectively, jointly and severally, as the "Guarantors"; and
together with Borrowers, each a "Loan Party" and
collectively, the "Loan
Parties").
WHEREAS,
the Borrowers have advised Agent and the Lenders that they intend to enter into
a sale and leaseback transaction (the "Rancho Sale
Leaseback") with respect to the real property located at 0000 Xxxxxx
Xxxxx, Xxxxxx Xxxxxxxxx, Xxxxxxxxxx (the "Rancho Property"),
pursuant to that certain Purchase and Sale Agreement and Escrow Instructions by
and between Xxxxx, Inc., a Delaware corporation, and The Rosalinde and Xxxxxx
Xxxxxxx Foundation (the "Rancho Sale
Agreement");
WHEREAS,
the Borrowers have advised Agent and the Lenders that they intend to enter into
a sale agreement (the "Kasco Sale") with
respect to the real property described in Exhibit A attached
hereto (the "Kasco
Properties");
WHEREAS,
the Borrowers and the Guarantors have requested that the Agent and the Lenders
consent to the Rancho Sale Leaseback and the Kasco Sale, and that the Agent and
the Lenders modify the Credit Agreement to adjust certain financial covenants;
and
WHEREAS,
the Agent and the Lenders are willing to provide such consents, and to consent
to such requested modification on and subject to the terms set forth
herein;
NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the parties hereto hereby agree as follows:
1. Definitions. Any
capitalized term used herein and not defined shall have the meaning assigned to
it in the Credit Agreement.
2. Amendments.
(a) Amendment to
Definition. The definition of "EBIDTA" in Schedule 1.1 of the
Credit Agreement is hereby amended by deleting such definition in its entirety
and replacing it with the following:
""EBITDA" means, with
respect to any fiscal period, Parent's and its Subsidiaries' consolidated net
earnings (or loss), minus
extraordinary gains, interest income, plus
interest expense, income taxes, and depreciation and amortization for such
period, plus
or
minus, as the case may be, deferred financing costs that are written off
so long as such costs arise from financings effectuated prior to the Closing
Date, non cash amortization of deferred financing costs related to the Term Loan
and the Working Capital Indebtedness, non cash gains or losses arising from the
sale of capital assets, non cash gains or losses arising from the write up or
write down of assets (including the non cash write down associated with the XX
Xxxxxxx system), non-cash period pension costs or credit related to any existing
Employee Plan, and any non cash extraordinary gains or losses (in each case, to
the extent included in determining net income) for such period, in each case,
determined on a consolidated basis in accordance with GAAP; provided, that for
the calculations contemplated in Section 6.16 of the
Agreement, EBITDA shall be determined (A) before any Approved Addback Expenses,
(B) before Kasco Non-recurring Expenses, (C) before actual costs and expenses
related to the sale process of Kasco incurred on or prior to Xxxxxxxx 00, 0000,
(X) before any moving expenses and any related plant closure or asset disposal
expenses of Xxxxx Signtech, Ltd. incurred on or prior to December 31, 2008, (E)
before actual costs and expenses related to the transactions contemplated by
this Agreement in an aggregate amount not to exceed $500,000, and (F) before
actual costs and expenses related to the Rancho Sale Leaseback or the Kasco Sale
in an amount not to exceed $300,000, in each case to the extent such items
impact net income."
(b) New
Definitions. The following definitions are hereby added in
alphabetical order to Schedule 1.1 of the
Credit Agreement:
""Amendment No. 2"
means Amendment No. 2 and Consent, dated as of June 30, 2008, by and among the
Loan Parties, the Agent and the Required Lenders."
""Amendment No. 2 Effective
Date" means the date Amendment No. 2 becomes effective pursuant to
Section 4 of Amendment No. 2."
""Kasco Sale" means the
sale of certain real property as set forth in Exhibit A to
Amendment No. 2."
""Rancho Sale
Leaseback" means that certain sale and leaseback transaction with respect
to the real property located at 0000 Xxxxxx Xxxxx, Xxxxxx Xxxxxxxxx, Xxxxxxxxxx,
pursuant to that certain Purchase and Sale Agreement and Escrow Instructions by
and between Xxxxx, Inc., a Delaware corporation, and The Rosalinde and Xxxxxx
Xxxxxxx Foundation."
(c) Section 6.16(a) of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:
"(a) Minimum TTM
EBITDA. Permit TTM EBITDA to be less than the required amount
set forth in the following table for the applicable period set forth opposite
thereto:
|
Applicable
Amount
|
Applicable
Period
|
|
$14,000,000
|
For
the 12- month period
ending
March 31, 2008
|
|
$14,500,000
|
For
the 12- month period
ending
June 30, 2008
|
|
$14,850,000
|
For
the 12- month period
ending
September 30, 2008
|
|
$15,200,000
|
For
the 12- month period
ending
December 31, 2008
|
|
$15,550,000
|
For
the 12- month period
ending
March 31, 2009
|
|
$15,900,000
|
For
the 12- month period
ending
June 30, 2009
|
|
$16,400,000
|
For
the 12- month period
ending
September 30, 2009
|
|
$16,900,000
|
For
the 12- month period
ending
December 31, 2009
|
|
$17,400,000
|
For
the 12- month period ending March 31, 2010 and ending each fiscal quarter
thereafter"
|
2
3. Consent to Rancho Sale
Leaseback and Kasco Sale.
(a) Rancho Sale
Leaseback. Subject to Section 4
hereof (including, without limitation, receipt by the Working Capital Agent
of the Rancho Release Payment), (i) the Agent consents to (A) the
execution and delivery of the Rancho Sale Agreement and (B) the Rancho Sale
Leaseback in accordance with the terms set forth in the Rancho Sale Agreement,
(ii) without recourse and without any representation or warranty of any kind,
the Agent hereby releases its Liens on the Rancho Property, (iii) the Loan
Parties hereby release the Agent and Lenders from any duty, liability or
obligation (if any) under any Loan Document in respect of the Rancho Property,
and (iv) the Agent will execute and/or deliver such instruments and other
writings, and take such action, as the Borrowers may reasonably request, to
effect or evidence the release of all of the Liens on, and security interests
in, the Rancho Property held by the Agent (on behalf of the Agent and the
Lenders), but without representation, warranty or recourse to the Agent or the
Lenders and at the sole cost and expense of the Loan Parties. The
effectiveness of the consents and releases described in this Section 3(a) are
subject to the condition precedent that (x) the Amendment No. 2 Effective Date
has occurred and (y) the
Working Capital Agent shall have received the Rancho Release Payment (the
proceeds of which are to be applied in accordance with Section 4(d) hereof) on
or prior to the consummation of the Rancho Sale Leaseback. If the
Working Capital Agent has not received the Rancho Release Payment on or prior to
July 14, 2008, the consents and releases set forth in this Section 3(a) shall be
null and void and of no force or effect.
(b) Kasco Sale. Subject to
Sections 4 and 5 hereof (including, without limitation, receipt by the Working Capital Agent
of the Kasco Release Payment), (i) the Agent consents to (A) the
execution and delivery of a sale agreement or a series of related sale
agreements to sell the Kasco Properties and (B) the Kasco Sale, which sale shall
produce total net proceeds of not less than $500,000, (ii) without recourse and
without any representation or warranty of any kind, the Agent hereby releases
its Liens on the Kasco Properties, (iii) the Loan Parties hereby release
the Agent and Lenders from any duty, liability or obligation (if any) under any
Loan Document in respect of the Kasco Properties, and (iv) the Agent will
execute and/or deliver such instruments and other writings, and take such
action, as the Borrowers may reasonably request, to effect or evidence the
release of all of the Liens on, and security interests in, the Kasco Properties
held by the Agent (on behalf of the Agent and the Lenders), but without
representation, warranty or recourse to the Agent or the Lenders and at the sole
cost and expense of the Loan Parties. The effectiveness of the
consents and releases described in this Section 3(b) are subject to the
condition precedent that (x) the Amendment No. 2 Effective Date has occurred and
(y) the Working Capital Agent
shall have received the Kasco Release Payment (as defined below) on or prior to
the consummation of the Kasco Sale. If the Working Capital Agent has
not received the Kasco Release Payment (the proceeds of which are to be applied
in accordance with Section 5 hereof) within 90 days of the date of this
Amendment, the consents and releases set forth in this Section 3(b) shall be
null and void and of no force or effect.
4. Conditions to
Effectiveness. The effectiveness of this Amendment and the
consents set forth in Section 3 of this Amendment are subject to the
fulfillment, in a manner satisfactory to the Agent and the Lenders, of each of
the following conditions precedent (the date such conditions are fulfilled or
waived by the Agent and the Lenders is hereinafter referred to as the "Amendment No. 2 Effective
Date"):
3
(a) Representations and
Warranties; No Event of Default. The representations and
warranties herein, in Section 4 of the Credit Agreement and in each other Loan
Document and certificate or other writing delivered to the Agent and the Lenders
pursuant hereto on or prior to the Amendment No. 2 Effective Date shall be true
and correct in all material respects (except that such materiality qualifier
shall not be applicable to any representations and warranties that already are
qualified or modified by materiality in the text thereof) after giving effect to
this Amendment on and as of the Amendment No. 2 Effective Date as though made on
and as of such date (except to the extent such representations and warranties
expressly relate to an earlier date), and no Default or Event of Default shall
have occurred and be continuing on the Amendment No. 2 Effective Date or would
result from this Amendment becoming effective in accordance with its
terms.
(b) Payment of Fees,
Etc. The Borrowers shall have paid all fees, costs, expenses
and taxes payable on the Amendment No. 2 Effective Date by the Borrowers
pursuant to Section 17.9 of the Credit Agreement.
(c) Delivery of
Documents. The Agent and the Lenders shall have received the
following, each in form and substance satisfactory to the Agent and, unless
indicated otherwise, dated the Amendment No. 2 Effective Date:
(i) counterparts
of this Amendment, duly executed by the Required Lenders, the Agent, each Loan
Party;
(ii) a
copy of the Rancho Sale Agreement, duly executed by the parties thereto,
certified as a true and correct copy by an officer of the Parent;
(iii) a
Collateral Access Agreement with respect to the Rancho Property, duly executed
by the landlord of the Rancho Property (after the consummation of the Rancho
Sale Leaseback), the Working Capital Agent and the Agent, in form and substance
reasonably satisfactory to the Agent;
(iv) an
Amendment and Consent in respect of the Working Capital Credit Agreement, duly
executed by the Loan Parties, the Working Capital Agent and the Working Capital
Lenders;
(v) a
certificate of an officer of each Loan Party, certifying that such Loan Party
has not amended or otherwise modified (A) its charter, certificate of formation
or other organizational document or (B) its by-laws, operating agreement or
other similar agreement, in each case since the Closing Date (or, if any such
organizational document has been amended or otherwise modified, attaching a
true, correct and complete copy of such amendment or modification);
(vi) a
certificate of an officer of each Loan Party, certifying as to the matters set
forth in subsection (a) of this Section 4;
(vii) a
certificate of an officer of the Parent, certifying that the conditions to
closing under the Rancho Sale Agreement have been satisfied or waived, and that
the Rancho Sale Leaseback has been consummated in accordance with the Rancho
Sale Agreement;
(viii) such
other agreements, instruments, approvals, opinions and other documents as the
Agent may reasonably request.
4
(d) Rancho Release
Payment. Simultaneously with the consummation of the Rancho
Sale Leaseback, the Working Capital Agent shall have received 100% of the net
cash proceeds due to the Loan Parties and their affiliates under the Rancho Sale
Agreement, which net cash proceeds shall equal not less than $7,800,000 (the
"Rancho Release
Payment"), which Rancho Release Payment shall be applied by the Working
Capital Agent to the Working Capital Term Loan; provided, that if
less than the amount of the Rancho Release Payment is outstanding under the
Working Capital Term Loan as of the date of such prepayment, the remaining
portion of such proceeds not applied to the Working Capital Term Loan shall be
applied to prepay the Term Loan.
5. Post Closing Covenant/Kasco
Release Payment. Simultaneously with the consummation of the
Kasco Sale, the Working Capital Agent shall have received 100% of the net cash
proceeds due to the Loan Parties and their affiliates from the Kasco Sale, which
net cash proceeds shall equal not less than $500,000 (the "Kasco Release
Payment"), which Kasco Release Payment shall be applied by the Working
Capital Agent to the Working Capital Term Loan; provided, that if
less than the amount of the Kasco Release Payment is outstanding under the
Working Capital Term Loan as of the date of such prepayment, the remaining
portion of such proceeds not applied to the Working Capital Term Loan shall be
applied to prepay the Term Loan.
6. Representations and
Warranties. Each of the Borrowers and the Guarantors
represents and warrants as follows:
(a) The
execution, delivery and performance by the Borrowers or such Guarantor of this
Amendment and the performance by the Borrowers or such Guarantor of the Credit
Agreement, as amended hereby, have been duly authorized by all necessary action,
and the Borrowers or such Guarantor has all requisite power, authority and legal
right to execute, deliver and perform this Amendment and to perform its
obligations under the Credit Agreement, as amended hereby.
(b) This
Amendment and the Credit Agreement, as amended hereby, is a legal, valid and
binding obligation of the Borrowers or such Guarantor, enforceable against the
Borrowers or such Guarantor in accordance with the terms thereof, except as
enforcement may be limited by equitable principles or by bankruptcy, insolvency,
reorganization, moratorium, or similar laws relating to or limiting creditors'
rights generally.
(c) The
representations and warranties contained in Section 4 of the Credit Agreement
are true and correct in all material respects (except that such materiality
qualifier shall not be applicable to any representations and warranties that
already are qualified or modified by materiality in the text thereof) after
giving effect to this Amendment on and as of the Amendment No. 2 Effective Date
as though made on and as of the Amendment No. 2 Effective Date (except to the
extent such representations and warranties expressly relate to an earlier date),
and no Event of Default or Default has occurred and is continuing on and as of
the Amendment No. 2 Effective Date, or would result from this Amendment becoming
effective in accordance with its terms.
7. Reaffirmations and
Acknowledgments.
(a) Reaffirmation of
Guaranty. Each Guarantor consents to the execution and
delivery by the Borrowers of this Amendment and jointly and severally ratify and
confirm the terms of the Guaranty contained in Article 3 of the Credit Agreement
with respect to the indebtedness now or hereafter outstanding under the Credit
Agreement as amended hereby and all promissory notes issued
thereunder.
(b) Acknowledgment of Security
Interests. Each Loan Party hereby acknowledges that, as of the date
hereof, the security interests and Liens granted to Agent and the Lenders under
the Credit Agreement and the other Loan Documents are in full force and effect
and are enforceable in accordance with the terms of the Credit Agreement and the
other Loan Documents.
5
8. Miscellaneous.
(a) Continued Effectiveness of
the Credit Agreement. Except as otherwise expressly provided
herein, the Credit Agreement and the other Loan Documents are, and shall
continue to be, in full force and effect and are hereby ratified and confirmed
in all respects, except that on and after the Amendment No. 2 Effective Date (i)
all references in the Credit Agreement to "this Agreement", "hereto", "hereof",
"hereunder" or words of like import referring to the Credit Agreement shall mean
the Credit Agreement as amended by this Amendment, and (ii) all references in
the other Loan Documents to the "Credit Agreement", "thereto", "thereof",
"thereunder" or words of like import referring to the Credit Agreement shall
mean the Credit Agreement as amended by this Amendment. To the extent
that the Credit Agreement or any other Loan Document purports to pledge to
Agent, or to grant to Agent, a security interest or lien, such pledge or grant
is hereby ratified and confirmed in all respects. Except as expressly
provided herein, the execution, delivery and effectiveness of this Amendment
shall not operate as an amendment of any right, power or remedy of the Agent and
the Lenders (including the Issuing Lender) under the Credit Agreement or any
other Loan Document, nor constitute an amendment of any provision of the Credit
Agreement or any other Loan Document.
(b) No
Waiver. Except as expressly set forth herein, this Amendment
is not a waiver of, or consent to, any Default or Event of Default now existing
or hereafter arising under the Credit Agreement or any other Loan Document, and
the Agent and the Lenders expressly reserve all of their rights and remedies
under the Credit Agreement and the other Loan Documents, under applicable law or
otherwise. The waivers, consents and modifications herein are limited
to the specific instances and for the specific purposes set forth herein, shall
not apply to any facts or occurrences other than those on which the same are
based, shall not excuse the future non-compliance with the Loan Documents, and
shall not operate as a consent to any further or other matter under the Loan
Documents.
(c) Counterparts. This
Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an
original, but all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of this Amendment by
telefacsimile or electronic mail shall be equally as effective as delivery of an
original executed counterpart of this Amendment.
(d) Headings. Section
headings herein are included for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose.
(e) Costs and
Expenses. The Borrowers agree to pay on demand all reasonable
fees, costs and expenses of the Agent and the Lenders in connection with the
preparation, execution and delivery of this Amendment.
(f) Amendment as Loan
Document. The Borrowers and each Guarantor hereby acknowledge
and agree that this Amendment constitutes a "Loan Document" under the Credit
Agreement. Accordingly, it shall be an Event of Default under the
Credit Agreement if (i) any representation or warranty made by the Borrowers or
any Guarantor under or in connection with this Amendment shall have been untrue,
false or misleading in any material respect when made, or (ii) the Borrowers or
any Guarantor shall fail to perform or observe any term, covenant or agreement
contained in this Amendment.
(g) Governing
Law. This Amendment shall be governed by the laws of the State
of New York.
(h) Waiver of Jury
Trial. THE PARTIES HERETO HEREBY IRREVOCABLY WAIVE THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING OUT OF THIS AMENDMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW OR STATUTORY CLAIMS.
[Remainder
of this Page Intentionally Left Bank.]
6
IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
and delivered as of the date first above written.
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BORROWERS:
|
XXXXX, INC.,
a
Delaware corporation
|
|
|
By:
|
/s/ | |
|
Title:
|
||
|
XXXXX
VISCOR LTD.,
a
Texas limited partnership
|
||
|
By:
|
Xxxxx
Partners, Inc.,
Its
General Partner
|
|
|
By:
|
/s/ | |
|
Title:
|
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XXXXX SIGNTECH,
LTD.,
a
Texas limited partnership
|
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|
By:
|
Xxxxx
Partners, Inc.,
Its
General Partner
|
|
|
By:
|
/s/ | |
|
Title:
|
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KASCO
CORPORATION,
a
Delaware corporation
|
||
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By:
|
/s/ | |
|
Title:
|
||
|
SOUTHERN
SAW ACQUISITION CORPORATION,
a
Delaware corporation
|
||
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By:
|
/s/ | |
|
Title:
|
||
|
PARENT:
|
BAIRNCO
CORPORATION,
a
Delaware corporation
|
|
|
By:
|
/s/ | |
|
Title:
|
||
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AGENT
AND LENDERS:
|
ABLECO
FINANCE LLC,
a
Delaware limited liability company, as Agent and as a Lender, on behalf of
itself and its affiliate assigns
|
|
|
By:
|
/s/ | |
|
Title:
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Exhibit
A
