Farm Credit Services of America SECOND AMENDMENT TO CREDIT AGREEMENT
Exhibit 10.14
Farm Credit Services of America
SECOND AMENDMENT TO CREDIT AGREEMENT
This Second Amendment to Credit Agreement (“Amendment”) is made and entered into effective the 15th
day of May, 2007, by and between the undersigned (hereinafter referred to as “Borrower”) and Farm
Credit Services of America, FLCA and Farm Credit Services of America, PCA (hereinafter referred to
as “Lender”) to amend and modify the Credit Agreement dated May 4, 2006 (hereinafter referred to as
the “Credit Agreement”). The Credit Agreement and underlying Loan Documents are modified only to
the extent necessary to give effect to the terms of this Amendment, and the remaining terms of said
Loan Documents, not otherwise inconsistent herewith, are ratified by the parties. Capitalized
terms used but not otherwise defined herein have the respective meanings given to them in the
Credit Agreement.
In consideration of the mutual agreements, provisions and covenants herein contained, and
furthermore to induce Lender to consider financial accommodations for the Borrower under the terms
and provisions of the Credit Agreement, the parties hereby agree as follows:
The following Sections are amended to read as follows:
Section 2.1 Credit Facility A. Lender agrees to advance sums to Borrower up to the amount
of $35,643,750.00 until August 2, 2007 (the “Term Loan Final Advancement Date”). Each Advance made
will reduce the funds available for future advances by the amount of the Advance. Repayments of
principal will not be available for subsequent Advances. The proceeds of said Loan will be used by
Borrower for financing construction of a 50 million gallon dry mill ethanol plant (Purpose) and
Borrower agrees not to request or use such proceeds for any other purpose.
(a) Interest. Borrower hereby promises to pay interest on the principal indebtedness
outstanding from time to time on each Advance from and including the date of such Advance and
otherwise in accordance with statements issued by Lender. Interest shall be payable on the
following dates, each such date an “Interest Payment Date”, provided that interest accruing at the
Default Rate, if applicable, shall be payable on demand. Said interest shall be payable
on the 1st day of each month, commencing the first day of the month following the first Advance
through and including the Term Loan Final Advancement Date. Commencing on the First Principal
Payment Date, as set forth in Section 2.1(b), said interest shall be payable on the principal
payment installment due dates at the following rate per annum.
Libor Rate Interest shall accrue from the date of each Advance at a variable rate per annum
equivalent to the Libor Short Term Index Rate plus 3% (the ‘Variable Rate’). The interest rate
shall be adjusted higher or lower on June 15, 2007, and every month thereafter with any change in
the Libor Rate, and this higher or lower rate will thereafter apply to the outstanding principal
indebtedness and remain in effect until a different rate of interest is established. The amount of
any subsequent payments will be increased or decreased accordingly to reflect the different rate of
interest without in any manner changing the due date of the payments. There is no limitation on
the amount of the change in the interest rate.
The Variable Rate shall be adjusted to the Libor Short Term Index Rate plus 2.85% for any year
after 2006 in which, at the end of the preceding year, Borrower’s Owner’s Equity (defined as net
worth to total tangible assets) is equal to or greater than 60%, provided the Borrower is not
otherwise in default.
The Libor Short Term Index Rate is the three-month London InterBank Offered Rates in the London
market based on the Libor rate published on the last business day of the month as published in the
Wall Street Journal, rounded to the nearest 0.05%.
(b) Principal. Borrower hereby promises to pay principal plus all accrued interest as
follows: in 30 equal principal installments of $1,188,125.00 plus accrued interest commencing on
the first of the month which is six months following Substantial Completion, but no later than
December 1, 2007, (the “First Principal Payment Date”) and continuing on the 1st of each quarter
thereafter until the entire unpaid principal, plus all accrued interest and any unpaid fees, costs
or expenses is paid in full, and no later than June 1, 2015 (Maturity Date). The actual payment
amount of all other payments may vary according to the interest rate then in effect and the
outstanding principal balance.
Section 2.2 Credit Facility B. Lender agrees to advance sums to Borrower up to the amount
of $11,881,250.00 (Maximum Principal Balance) until the expiration of 30 months after Credit
Facility A has been repaid, but not later than December 1, 2017 (The Revolving Loan Final
Advancement Date). Each Advance made will reduce the funds available for future advances by the
amount of the Advance. Repayments of principal will be available for subsequent Advances, however
until the Revolving Loan Final Advancement Date, the Maximum Principal Balance available for
subsequent Advances shall be reduced by $1,188,125.00 on each installment due date. The proceeds
of said Loan will be used by Borrower for financing construction of a 50 million gallon dry mill
ethanol plant and to provide working capital (Purpose) and Borrower agrees not to request or use
such proceeds for any other purpose.
(a) Interest. Borrower hereby promises to pay interest on the principal indebtedness
outstanding from time to time on each Advance from and including the date of such Advance and
otherwise in accordance with statements issued by Lender. Interest shall be payable on the
following dates, each such date an “Interest Payment Date,” provided that interest accruing at the
Default Rate, if applicable, shall be payable on demand. Said interest shall be payable on the 1st
day of each month, commencing the first day of the month following the first Advance through and
including the date upon which the first principal installment shall become due, at which time
interest shall be payable on the principal payment installment due dates at the following rate per
annum:
Libor Rate Interest shall accrue from the date of each Advance at a variable rate per annum
equivalent to the Libor Short Term Index Rate plus 3% (the ‘Variable Rate’). The interest rate
shall be adjusted higher or lower on June 15, 2007, and every month thereafter with any change in
the Libor Rate and this higher or lower rate will thereafter apply to the outstanding principal
indebtedness and remain in effect until a different rate of interest is established. The amount of
any subsequent payments will be increased or decreased accordingly to reflect the different rate of
interest without in any manner changing the due date of the payments. There is no limitation on
the frequency or the amount of the change in the interest rate.
The Variable Rate shall be adjusted to the Libor Short Term Index Rate plus 2.85% for any year
after 2006 in which, at the end of the preceding year, Borrower’s Owner’s Equity (defined as net
worth to total tangible assets) is equal to or greater than 60%, provided the Borrower is not
otherwise in default.
The Libor Short Term Index Rate is the three-month London InterBank Offered Rates in the London
market based on the Libor rate published on the last business day of the month as published in the
Wall Street Journal, rounded to the nearest 0.05%.
(b) Principal. Borrower hereby promises to pay principal plus all accrued interest as
follows: in 10 equal installments of $1,188,125.00, plus accrued interest, the first of said
installments due September 1, 2015, or the first day of the first month which is three months
following full repayment of Credit Facility A, whichever occurs first (the “First Principal
Revolving Loan Payment Date”), and continuing on the 1st of each calendar quarter thereafter, up to
and including December 1, 2017, when the entire unpaid principal, plus all accrued interest and any
unpaid fees, costs and expenses shall be due and payable in full. The actual payment amount of all
payments may vary according to the interest rate then in effect and the outstanding principal
balance.
Section 2.4.1 Origination Fee. Borrower agreed to pay Lender for structuring the Loan the
fee set forth in the commitment letter and agreement executed by the Borrower and the Lender dated
October 10, 2005 (Commitment).
Borrower agrees to pay Lender for re-structuring the Loan the fee set forth in the commitment
letter and agreement executed by the Borrower and the Lender dated February 16, 2007 (Commitment).
Section 2.6.3 Excess Cash Flow. In addition to the scheduled principal payments required
herein, Borrower agrees to make special principal payments equal to 65% of available Excess Cash
Flow to the extent that such payment(s) do not cause default of any of the covenants in this
Agreement. Said mandatory prepayments shall be limited to a maximum of $2,500,000.00 per fiscal
year and the aggregate total of all such payments shall not exceed $8,000,000.00. Such payments
shall be applied to scheduled principal installments of Credit Facility A in inverse order of
maturity. Any mandatory payments from Excess Cash Flow shall be made within 120 days of the end of
each fiscal year based on the Borrower’s audited financial statements for the year just ended.
Section 6.7.2 Periodic Financial Statements. As soon as available, beginning with the
month in which Substantial Completion occurs, and in no event later than 30 days after the end of
each month thereafter (excluding the last month of Borrower’s fiscal year) a consolidated balance
sheet and consolidated income statement and production report of all Borrower’s production of
ethanol for that month and for year-to-date since the last fiscal year end, such report certified
complete and correct from a source acceptable to Lender.
Section 6.11 Compliance Certificate. Beginning with the month in which Substantial
Completion occurs, Borrower agrees to provide Lender with a Compliance Certificate showing or
certifying compliance with the aforesaid reporting and financial requirements and as of the last
day of each month(Reporting Period) thereafter, in form and content acceptable to Lender. Such
Certificate shall be provided to Lender within 20 days following the end of each Reporting Period,
and in default after 30 days.
Borrower hereby represents and warrants to the Lender that, after giving effect to this Amendment,
(i) no Default or Event of Default exists under the Credit Agreement or any of the other Loan
Documents and (ii) the representations and warranties set forth in the Credit Agreement are true
and correct in all material respects as of the date hereof (except for those which expressly relate
to an earlier date).
Borrower hereby ratifies the Credit Agreement and acknowledges and reaffirms (i) that it is bound
by all terms of the Credit Agreement applicable to it and (ii) that it is responsible for the
observance and full performance of its respective obligations.
Borrower hereby certifies that the person(s) executing this Amendment on behalf of Borrower is/are
duly authorized to execute such document in behalf of Borrower and that there have been no changes
in the name, ownership, control, organizational documents, or legal status of the Borrower since
the last application, loan, or loan servicing action; that all resolutions, powers and authorities
remain in full force and effect, and that the information provided by Borrower is and remains true
and correct.
This Amendment 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 one and the same
agreement. Delivery of executed counterparts of this Amendment by telecopy shall be effective as
an original and shall constitute a representation that an original shall be delivered.
THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE
STATE OF NEBRASKA.
This Amendment shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.
IN WITNESS WHEREOF, the parties hereto have set their hand effective the day and year first above
written.
The Internal Revenue Service does not require your consent to any provision of this document other
than the following certification required to avoid backup withholding. Under penalties of perjury,
l/we certify that the Taxpayer Identification Number shown herein is correct and that I/we am/are
not subject to backup withholding either because I/we are exempt, have not been notified that l/we
are subject to backup withholding due to failure of reporting Interest or dividends, or the
Internal Revenue Service has notified me/us that l/we am/are no longer subject to backup
withholding. I/we am/are a U.S. person (including U.S. resident alien):
| Siouxland Ethanol, LLC | 223902184 | |||||
| BORROWER: | ||||||
| Siouxland Ethanol, LLC | ||||||
By:
|
/s/ Xxxxxx Xxxxx
|
|||||
By:
|
/s/ Xxxxxxx Xxxxxxxx
|
|||||
| Address for Notice: X.X. Xxx 000 | ||||||
Xxxxxxx,
XX 00000 |
||||||
| LENDER: | ||||||
| Farm Credit Services of America, FLCA Farm Credit Services of America, PCA |
||||||
By:
|
/s/ Xxxxx Xxxxx
|
|||||
