EXHIBIT 10.5
SECOND AMENDMENT TO CREDIT AGREEMENT
This Second Amendment to Credit Agreement (this "Amendment") is entered
into as of November 30, 2001 among (i) CARAUSTAR INDUSTRIES, INC. (the
"Borrower"), (ii) the subsidiaries of the Borrower identified as Guarantors on
the signature pages hereto, (iii) the Lenders identified on the signature pages
hereto and (iv) BANK OF AMERICA, N.A., as Administrative Agent (the
"Administrative Agent"). All capitalized terms used herein and not otherwise
defined shall have the meanings ascribed to such terms in the Credit Agreement
referred to below.
RECITALS
A. A Credit Agreement dated as of March 29, 2001 (as amended by that
certain First Amendment dated as of September 10, 2001 and as further modified
or amended from time to time, the "Credit Agreement") has been entered into by
and among the Borrower, the Guarantors party thereto (the "Guarantors"), the
financial institutions party thereto (the "Lenders") and the Administrative
Agent.
B. The Borrower has requested, and the Required Lenders have agreed to,
an amendment of the terms of the Credit Agreement as set forth below.
AGREEMENT
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
1. Amendment to Credit Agreement. Section 3.1 of the Credit Agreement
is hereby amended by replacing clause (C) of the second sentence thereof with
the following new clauses (C) and (D):
(C) have an original expiry date that is not more than one
year from the date of issuance (provided that any such Letter
of Credit (x) may contain customary "evergreen" provisions
pursuant to which the expiry date is automatically extended by
a specific time period unless the Issuing Lender gives notice
to the beneficiary of such Letter of Credit at least a
specified time period prior to the expiry date then in effect
and/or (y) may have an expiration date more than one year from
the date of issuance if required under related industrial
revenue bond documents and agreed to by the Issuing Lender)
and (D) as originally issued or as extended, have an expiry
date that does not extend beyond the date thirty (30) days
prior to the Termination Date.
2. Representations and Warranties. Each Credit Party hereby represents
and warrants to the Administrative Agent and the Lenders that (a) no Default or
Event of Default exists; (b) all of the representations and warranties set forth
in the Loan Documents are true and correct in all material respects as of the
date hereof (except for those that expressly state that they are made as of an
earlier date); and (c) it has no claims, counterclaims, offsets, credits or
defenses to its obligations under the Loan Documents or, to the extent it does,
they are hereby released in consideration of the Required Lenders entering into
this Amendment.
3. Condition Precedent. The effectiveness of this Amendment is subject
to receipt by the Administrative Agent of signature pages to this Amendment duly
executed by the Credit Parties and the Required Lenders.
4. Ratification of Credit Agreement. The term "this Agreement" or
"Credit Agreement" and all similar references as used in each of the Loan
Documents shall hereafter mean the Credit Agreement as amended by this
Amendment. Except as herein specifically agreed, the Credit Agreement is hereby
ratified and confirmed and shall remain in full force and effect according to
its terms.
5. Authority/Enforceability. Each of the Credit Parties hereto
represents and warrants as follows:
(a) It has taken all necessary action to authorize the
execution, delivery and performance of this Amendment.
(b) This Amendment has been duly executed and delivered by
such Person and constitutes such Person's legal, valid and binding
obligations, enforceable in accordance with its terms, except as such
enforceability may be subject to (i) bankruptcy, insolvency,
reorganization, fraudulent conveyance or transfer, moratorium or
similar laws affecting creditors' rights generally and (ii) general
principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity).
(c) No consent, approval, authorization or order of, or
filing, registration or qualification with, any court or governmental
authority or third party is required in connection with the execution,
delivery or performance by such Person of this Amendment.
6. Expenses. The Borrower agrees to pay all reasonable costs and
expenses in connection with the preparation, execution and delivery of this
Amendment, including without limitation the reasonable fees and expenses of
Xxxxx & Xxx Xxxxx PLLC, special counsel to the Administrative Agent.
7. Counterparts/Telecopy. This Amendment may be executed in any number
of counterparts, each of which when so executed and delivered shall be an
original, but all of which shall constitute one and the same instrument.
Delivery of executed counterparts by telecopy shall be effective as an original
and shall constitute a representation that an original will be delivered.
8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA.
9. Entirety. This Amendment and the other Loan Documents embody the
entire agreement between the parties and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof. These Loan
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. There are no oral agreements between the parties.
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This Amendment shall be deemed to be effective as of the day and year
first above written.
BORROWER: CARAUSTAR INDUSTRIES, INC.,
a North Carolina corporation
By:/s/ H. Xxx Xxxxxx, III
------------------------------------------
Name: H. Xxx Xxxxxx, III
Title: Vice President Planning & Development
and Chief Financial Officer
GUARANTORS: AUSTELL HOLDING COMPANY, LLC,
a Georgia corporation
CAMDEN PAPERBOARD CORPORATION,
a New Jersey corporation
CARAUSTAR CUSTOM PACKAGING GROUP, INC.,
a Delaware corporation
CARAUSTAR CUSTOM PACKAGING GROUP (MARYLAND), INC.,
a Maryland corporation
CARAUSTAR INDUSTRIAL & CONSUMER PRODUCTS GROUP, INC. ,
a Delaware corporation
CARAUSTAR MILL GROUP, INC., an Ohio corporation f/k/a
Caraustar Paperboard Corporation (as successor by
merger to Austell Box Board Corporation, Buffalo
Paperboard Corporation, Carolina Component Concepts,
Inc., Carolina Converting Incorporated, Carolina
Paper Board Corporation, Carotell Paper Board
Corporation, Chattanooga Paperboard Corporation,
Cincinnati Paperboard Corporation, Columbus
Recycling, Inc., New Austell Box Board Company, Paper
Recycling, Inc., Reading Paperboard Corporation,
Richmond Paperboard Corporation and Sweetwater Paper
Board Company, Inc.)
CARAUSTAR RECOVERED FIBER GROUP, INC.,
a Delaware corporation
CHICAGO PAPERBOARD CORPORATION,
an Illinois corporation
FEDERAL TRANSPORT, INC.,
an Ohio corporation
GYPSUM MGC, INC.,
a Delaware corporation
HALIFAX PAPER BOARD COMPANY, INC.,
a North Carolina corporation
XXXXXXXXX GYPSUM COMPANY,
a Delaware corporation
XXXXXXXX GYPSUM COMPANY, LLC,
a Delaware corporation
PBL INC.,
a Delaware corporation
XXXXXXX PAPERBOARD, INC.,
a Connecticut corporation
By:/s/ H. Xxx Xxxxxx, III
---------------------------------
Name: H. Xxx Xxxxxx, III
Title: Vice President
of each of the foregoing Guarantors
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CARAUSTAR, G.P.,
a South Carolina general partnership
By: CARAUSTAR INDUSTRIES, INC.,
a North Carolina corporation, general partner
By:/s/ H. Xxx Xxxxxx, III
---------------------------------
Name: H. Xxx Xxxxxx, III
Title: Vice President
By: CARAUSTAR INDUSTRIAL & CONSUMER PRODUCTS
GROUP, INC., a Delaware corporation, general partner
By:/s/ H. Xxx Xxxxxx, III
---------------------------------
Name: H. Xxx Xxxxxx, III
Title: Vice President
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LENDERS: BANK OF AMERICA, N.A.,
as Administrative Agent and individually as
an Issuing Lender and a Lender
By:/s/ Xxxxxx X. Xxxxxxxx
----------------------------------
Name: Xxxxxx X. Xxxxxxxx
Title: Vice President
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DEUTSCHE BANC XXXX XXXXX INC., successor
by merger with Bankers Trust Company,
individually as an Issuing Lender and a Lender
By:/s/ Xxxxxx Xxxxxxx
-----------------------
Name: Xxxxxx Xxxxxxx
Title: Vice President
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CREDIT LYONNAIS NEW YORK BRANCH
By:/s/ Xxx Xxxxx
-------------------------
Name: Xxx Xxxxx
Title: Vice President
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XXX XXXX XX XXX XXXX
By: /s/ Xxxxx X. Xxxxxx
-------------------------
Name: Xxxxx X. Xxxxxx
Title: Vice President
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