AMENDMENT NO. 2 TO THE
CREDIT AGREEMENT
Dated as of December 31, 1999
AMENDMENT NO. 2 TO THE CREDIT AGREEMENT among ACCURIDE DE
MEXICO, S.A. DE C.V., a corporation organized and existing under the laws of the
United Mexican States (the "BORROWER"), ACCURIDE CORPORATION, a Delaware
corporation ("ACCURIDE") and CITIBANK MEXICO, S.A., GRUPO FINANCIERO CITIBANK
(the "LENDER").
PRELIMINARY STATEMENTS:
(1) The Borrower and the Lender have entered into Credit
Agreement dated as of July 9, 1998, as amended by Amendment No. 1 dated as of
September 13, 1999 (such Credit agreement as so amended being the "CREDIT
AGREEMENT"). Capitalized terms not otherwise defined in this Amendment have the
same meanings as specified in the Credit Agreement.
(2) The Lender has entered into the Participation Agreement
with The Bank of Nova Scotia and Comerica Bank.
(3) Accuride has entered into the Parent Guaranty, the
Completion Guaranty and the Pledge Agreement in favor of the Lender, and has
entered into the Guarantor Credit Agreement with the financial institutions
party thereto as Lenders, Citibank, N.A. as Issuing Bank, Citicorp USA, Inc. as
Swing Line Bank, Citicorp USA, Inc., as administrative agent, and Xxxxxxx Xxxxx
Xxxxxx Inc., as arranger.
(4) The Borrower and Accuride have requested that certain
covenants contained in the Credit Agreement be deleted by reason of the
existence of corresponding covenants contained in the Guarantor Credit Agreement
and have requested that the Lender amend the Credit Agreement to such effect.
(5) The Lender is, on the terms and conditions stated below,
willing to grant such request.
SECTION 1. AMENDMENTS TO CREDIT AGREEMENT. The Credit
Agreement is, effective as of the date hereof and subject to the satisfaction of
the conditions precedent set forth in Section 2, hereby amended as follows:
(a) The definition of "Applicable Margin" in Section 1.01 is
amended to delete in its entirety the current definition and to
substitute in place of such definition a new definition to read as
follows:
"APPLICABLE MARGIN" means, for Advances outstanding
under each of the Term Facility and the Working Capital
Facility and subject to the final paragraph of this
definition, a percentage per annum determined by reference to
the Performance Level as set forth for each such Facility
below:
=================================== ===================================== ================================
Performance Level Term Facility Working Capital Facility
=================================== ===================================== ================================
I 1.500% 1.125%
=================================== ===================================== ================================
II 1.500% 1.375%
=================================== ===================================== ================================
III 1.750% 1.625%
=================================== ===================================== ================================
IV 2.000% 1.875%
=================================== ===================================== ================================
V 2.375% 2.250%
=================================== ===================================== ================================
VI 2.625% 2.500%
=================================== ===================================== ================================
For outstanding Advances under each of the Facilities, the
Applicable Margin for each Advance shall be determined by
reference to the Performance Level in effect on the first day
of each Interest Period for such Advance. Changes in the
Applicable Margin resulting from changes in the Performance
Level shall become effective (for purposes of this definition
only, the date of such effectiveness being the "EFFECTIVE
DATE") as of the first day following the last day of the most
recent Fiscal Quarter or Fiscal Year for which (A) financial
statements are delivered to the Lender pursuant to Section
7(e)(ii) or (iii) of the Parent Guaranty and (B) a certificate
of the chief financial officer of the Guarantor is delivered
by the Guarantor to the Lender setting forth, with respect to
such financial statements, the then-applicable Performance
Level and the basis of the calculations therefor, and shall
remain in effect until the next change to be effected pursuant
to this definition; PROVIDED that, (i) if the Borrower shall
have made any payments in respect of interest during the
period (for purposes of this definition only, the "INTERIM
PERIOD") from and including the Effective Date to the day on
which any change in Performance Level is determined as
provided above, then the amount of the next such payment of
interest due by the Borrower on or after such day shall be
increased or decreased by an amount equal to any underpayment
or overpayment so made by the Borrower during such Interim
Period and (ii) each determination of the Performance Level
pursuant to this definition shall be made with respect to the
Measurement Period ending at the end of the fiscal period
covered by the relevant financial statements.
Anything in this definition or elsewhere in this
Agreement to the contrary notwithstanding, if the "Applicable
Margin" at any "Performance Level" for "Eurodollar Rate
Advances" outstanding under either (i) the "Term A Facility"
or (ii) the "Revolving Credit Facility" under, and as defined
in, the Guarantor Credit Agreement, is increased by any
amendment or other modification to the Guarantor Credit
Agreement, the corresponding Applicable
Margin under this Agreement shall be increased to be equal
to the sum of such "Applicable Margin" as so increased plus
0.250% per annum, it being understood for purposes of
determining the corresponding Applicable Margin under this
Agreement, that the Applicable Margin for Advances
outstanding under the Term Facility corresponds to the
"Applicable Margin" for "Eurodollar Rate Advances" under
the "Term A Facility" under, and as defined in, the
Guarantor Credit Agreement, that the Applicable Margin for
Advances outstanding under the Working Capital Facility
corresponds to the "Applicable Margin" for "Eurodollar Rate
Advances" under the "Revolving Credit Facility" under, and
as defined in, the Guarantor Credit Agreement, and that the
Performance Level I, Performance Level II, Performance
Level III, Performance Level IV, Performance Level V and
Performance Level VI under this Agreement correspond to
"Performance Level I", "Performance Level II", "Performance
Level III", "Performance Level IV", "Performance Level V"
and "Performance Level VI", respectively, under and as
defined in the Guarantor Credit Agreement. Any such
increase in the Applicable Margin at any Performance Level
for any outstanding Advance under this Agreement resulting
from an increase of the corresponding "Applicable Margin"
under and as defined in the Guarantor Credit Agreement
shall become effective as of the effective date of such
increase under the Guarantor Credit Agreement, and shall
remain in effect until such Applicable Margin is further
increased as a result of the further increase, if any, of
the corresponding "Applicable Margin" under and as defined
in the Guarantor Credit Agreement.
(b) The following new definitions are added in Section 1.01 in
appropriate alphabetical order:
"AMENDMENT NO. 2" means Amendment No. 2 to the Credit
Agreement dated as of December 31, 1999 among the Borrower,
Accuride and the Lender.
"MAJORITY LENDER PARTIES" means such number of Lender
Parties (excluding, for purposes of determining this number of
consenting Lender Parties, any sub-participant) as shall hold
those aggregate interests in the aggregate principal amount of
the Advances outstanding or, if no Advances shall be
outstanding, the total amount of the Commitments, as shall
comprise a majority in interest in such aggregate principal
amount of the Advances outstanding or the total amount of the
Commitments, as applicable, such majority in interest to be
determined in accordance with the second sentence of Section
6(b) of the Participation Agreement.
"PERFORMANCE LEVEL" means, in respect of Advances
outstanding under the Term Facility and the Working Capital
Facility, Performance Level I, Performance Level II,
Performance Level III, Performance Level IV, Performance Level
V or Performance Level VI, as the context may require.
(c) Section 5.02(a) is amended (i) to delete immediately
before the first proviso of clause (iv) thereof the phrase "in respect
of Capital Expenditures permitted pursuant to section 5.02(o)" and (ii)
to substitute therefor the phrase "in respect of Capital Expenditures
permitted pursuant to the provisions of the Guarantor Credit
Agreement."
(d) Section 5.02 is amended (i) to delete subsection (o)
thereof and (ii) to reletter the existing subsection (p) thereof as
subsection (o).
(e) Section 5.03(b) is amended (i) to delete the phrase "in
any event within 45 days" in the first and second lines thereof and to
substitute therefor the new phrase "in any event within 60 days", (ii)
to delete the entire clause (ii) of Section 5.03(b) and the word "and"
prior to such clause and (iii) to delete the numeral "(i)" in the
fourth last line thereof.
(f) Section 5.03(c) is amended (i) to delete entire clause
(ii) of Section 5.03(c) and (ii) to renumber the existing clause (iii)
thereof as clause (ii).
(g) Section 5.04 is amended to delete in its entirety the
current Section 5.04 and to substitute in place of such Section 5.04 a
new Section 5.04 to read as follows:
"SECTION 5.04. FINANCIAL COVENANTS. So long as any Advance
shall remain unpaid or the Lender shall have any Commitment hereunder, the
Borrower will, within 90 days after either (i) any term, covenant or agreement
contained in Section 5.02(j), 5.04(a), 5.04(b) or 5.04(c) of the Guarantor
Credit Agreement shall be amended, deleted, waived, or otherwise modified
without the consent of the Majority Lender Parties or (ii) the Guarantor Credit
Agreement shall be discharged, refinanced, refunded or otherwise terminated,
enter into an amendment with the Majority Lender Parties of Sections 5.02 and
5.04 of this Agreement to add back to this Agreement the terms, covenants and
agreements deleted by Section 1(c), (d), (e), (f) and (g) of Amendment No. 2,
with such changes to such terms, covenants and agreements as shall be mutually
agreeable to the Borrower and the Majority Lender Parties, it being understood
and agreed that, if the Borrower and the Majority Lender Parties shall not enter
into such amendment within such 90 days, an Event of Default shall occur and be
continuing hereunder pursuant to Section 6.02(c)."
(h) Section 6.02 is amended (i) to delete the punctuation "."
at the end of subsection (r) thereof and to substitute therefor the new
language "; or" and (ii) to add to the end of such Section 6.02 the
following new subsection (s):
"(s) Accuride shall fail to perform or observe any
term, covenant or agreement contained in Section 5.02 (j),
5.04 (a), 5.04 (b) or 5.04 (c) of the Guarantor Credit
Agreement."
SECTION 2. CONDITIONS OF EFFECTIVENESS. This Amendment shall
become effective as of the date first above written when, and only when, the
Lender shall have
received (i) counterparts of this Amendment executed by the Borrower, Accuride
and the Lender and (ii) counterparts of the Consent of Participants attached
hereto executed by those Participants that shall hold, together with the
interest of the Lender, a majority in interest in the aggregate principal amount
of the Advances then outstanding.
SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE BORROWER. The
Borrower represents and warrants as follows:
(a) The Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the jurisdiction
indicated in the recital of parties to this Amendment.
(b) The execution, delivery and performance by the Borrower of
this Amendment are within the Borrower's corporate powers, have been
duly authorized by all necessary corporate action and do not (i)
contravene the Borrower's charter or by-laws, (ii) violate any
Applicable Law or any law, rule, regulation, order, writ, judgment,
injunction, decree, determination or award rendered or promulgated
under or pursuant to such Applicable Law or (iii) conflict with or
result in the breach of, or constitute a default under, any contract,
loan agreement, indenture, mortgage, deed of trust, lease or other
financial instrument, or any other material contract or agreement,
binding on or affecting the Borrower, any of its Subsidiaries or any of
their properties.
(c) No authorization or approval (including exchange control
approval) or other action by, and no notice to or filing with, any
governmental authority or regulatory body or any other third party is
required for the due execution, delivery or performance by the Borrower
of this Amendment.
(d) This Amendment has been duly executed and delivered by the
Borrower. This Amendment is legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its
terms.
(e) There is no action, suit, investigation, litigation or
proceeding affecting the Borrower or any of its Subsidiaries,
including, without limitation, any Environmental Action, pending or
threatened before any court, governmental agency or arbitrator that (i)
could have a Material Adverse Effect or (ii) purports to affect the
legality, validity or enforceability of this Amendment or any of the
other Loan Documents, as amended hereby.
SECTION 4. REFERENCE TO AND EFFECT ON THE LOAN DOCUMENTS. (a)
On and after the effectiveness of this Amendment, each reference in the Credit
Agreement to "this Agreement", "hereunder", "hereof" or words of like import
referring to the Credit Agreement, and each reference in the Notes and each of
the other Loan Documents to "the Credit Agreement", "thereunder", "thereof" or
words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement, as amended by this Amendment.
(b) The Credit Agreement, as specifically amended by this
Amendment, is and shall continue to be in full force and effect and is hereby in
all respects ratified and confirmed.
(c) The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of the Lender under any of the Loan Documents, nor
constitute a waiver of, or a consent from, any of the terms and conditions of
any of the Loan Documents.
SECTION 5. ACCURIDE CONSENT. Accuride as Guarantor under the
Completion Guaranty and the Parent Guaranty and as Pledgor under the Pledge
Agreement hereby consents to this Amendment and hereby confirms and agrees that,
notwithstanding the effectiveness of this Amendment, the Completion Guaranty,
the Parent Guaranty and the Pledge Agreement are, and shall continue to be, in
full force and effect and are hereby ratified and confirmed in all respects.
SECTION 6. COSTS AND EXPENSES. The Borrower agrees to pay on
demand all costs and expenses of the Lender in connection with the preparation,
execution, delivery and administration, modification and amendment of this
Amendment and the other documents to be delivered in connection herewith
(including, without limitation, the reasonable fees and expenses of counsel for
the Lender) in accordance with the terms of Section 7.04 of the Credit
Agreement.
SECTION 7. EXECUTION IN COUNTERPARTS. This Amendment may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.
SECTION 8. GOVERNING LAW. This Amendment shall be governed by,
and construed in accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed by their respective officers thereunto duly authorized,
as of the date first above written.
ACCURIDE DE MEXICO, S.A. DE C.V.
By __________________________
Name:
Title:
ACCURIDE CORPORATION
By __________________________
Name:
Title:
CITIBANK MEXICO, S.A., GRUPO
FINANCIERO CITIBANK
By __________________________
Name:
Title:
CONSENT OF
PARTICIPANTS
Dated as of December 31, 1999
Reference is made to the Amendment No. 2 to the Credit
Agreement dated as of December 31, 1999 (the "AMENDMENT"; the terms defined in
the Amendment or the Credit Agreement (as defined in the Amendment) being used
herein as therein defined) among Accuride de Mexico, S.A. de C.V., a corporation
organized and existing under the laws of the United Mexican States, Accuride
Corporation, a Delaware corporation, and Citibank Mexico, S.A., Grupo Financiero
Citibank (the "LENDER").
Each Participant named below as a party to a Participation
Agreement with the Lender, hereby consents to the Amendment and hereby confirms
and agrees that, notwithstanding the effectiveness of the Amendment, the
Participation Agreement to which such Participant is a party is, and shall
continue to be, in full force and effect and is hereby ratified and confirmed in
all respects, except that, on and after the effective date of the Amendment,
each reference in such Participation Agreement to the Credit Agreement,
"thereunder," "thereof", "therein" or words of like import referring to the
Credit Agreement shall mean and be a reference to the Credit Agreement as
amended by the Amendment.
This Consent may be executed in any number of counterparts and
by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute but one and the same Consent. Delivery of an executed counterpart of
a signature page to this Consent by telecopier shall be effective as delivery of
a manually executed counterpart of this Consent.
This Consent shall be governed by, and construed in accordance
with, the law of the State of New York.
THE BANK OF NOVA SCOTIA
By __________________________
Name:
Title:
COMERICA BANK
By __________________________
Name:
Title: