AMENDMENT NO. 1 AND CONSENT TO CREDIT AGREEMENT
Exhibit 10.5
EXECUTION VERSION
AMENDMENT NO. 1 AND CONSENT TO CREDIT AGREEMENT
This AMENDMENT NO. 1 AND CONSENT AGREEMENT, dated as of June 19, 2024 (this “Agreement”), is entered into by and among ALPINE HOLDING II, LLC, a Delaware limited liability company (“Holdings”), PF PROPPANT HOLDING, LLC, a Texas limited liability company (the “Borrower”), ALPINE SILICA, LLC, a Texas limited liability company (“Alpine Silica”), SUNNY POINT AGGREGATES, LLC, a Louisiana limited liability company, PERFORMANCE PROPPANTS INTERNATIONAL, LLC, a Louisiana limited liability company, PERFORMANCE PROPPANTS, LLC, a Texas limited liability company, RED RIVER LAND HOLDINGS, LLC, a Louisiana limited liability company, PERFORMANCE ROYALTY, LLC, a Louisiana limited liability company, ALPINE MONAHANS, LLC, a Delaware limited liability company, ALPINE MONAHANS II, LLC, a Delaware limited liability company, MONARCH SILICA, LLC, a Texas limited liability company and ALPINE REAL ESTATE HOLDINGS, LLC, a Delaware limited liability company (collectively, the “Guarantors” and, together with Holdings and the Borrower, the “Obligors”), XXXX BANK and XXXX BANK USA (collectively, the “Lenders”), CLMG CORP., a Texas corporation (“CLMG”), as the agent (the “Agent”) and CLMG, as the collateral agent (the “Collateral Agent” and, together with the Lenders and the Agent, the “Lender Parties”).
RECITALS
WHEREAS, Holdings, Borrower, the Guarantors, the several lenders from time to time party thereto, the Agent and the Collateral Agent are parties to that certain Term Loan Credit Agreement, dated as of December 27, 2023 (as further amended, restated, amended and restated, supplemented or otherwise modified from time to time prior to the date hereof , the “Credit Agreement”). Capitalized terms used herein and not otherwise defined having the definitions given thereto in the Credit Agreement;
WHEREAS, the Obligors are holders of certain accounts receivable owed by their Affiliates and arising prior to December 27, 2023 (such receivables, the “Receivables”);
WHEREAS, pursuant to Section 8.29(a) of the Credit Agreement and Item Number 8 of Schedule 29(a) of the Credit Agreement, the Borrower and each other Obligor were obligated to, as promptly as practicable, deliver, with respect to the Xxxxxx (TX) property, a lessor consent and estoppel from the relevant lessor, in a manner reasonably acceptable to the Required Lenders (such obligation, the “Xxxxxx Xxxxxx Consent and Estoppel Post-Closing Obligation”); and
WHEREAS, the Parties desire to amend certain provisions of the Credit Agreement in the manner set forth below.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
““First Amendment Date” means June 19, 2024.”
“(a) As soon as available, but in any event not later than one hundred and thirty-five (135) days after the close of the Fiscal Year ending on December 31, 2023 and one hundred and twenty (120) days after the close of each Fiscal Year thereafter, (I) prior to any Qualified IPO, consolidated audited balance sheets, income statements and cash flow statements of the Parent Guarantor and its Subsidiaries for such Fiscal Year, and the accompanying notes thereto, setting forth in each case in comparative form figures for and as of the end of the previous Fiscal Year, all in reasonable detail, fairly presenting in all material respects the financial position and the results of operations of the Parent Guarantor and its Subsidiaries as at the date thereof and for the Fiscal Year then ended, and prepared in accordance with GAAP in all material respects and (II) following any Qualified IPO, consolidated audited balance sheets, income statements and cash flow statements of Holdings (or its direct Parent Entity) and its Subsidiaries Consolidated Parties and, if different, Holdings and its Subsidiaries, for such Fiscal Year, and the accompanying notes thereto, setting forth in each case in comparative form figures for and as of the end of the previous Fiscal Year (or, in lieu of such audited financial statements of Holdings and its Subsidiaries, a detailed reconciliation, reflecting such financial information for Holdings and its Subsidiaries, on the one hand, and the Consolidated Parties, on the other hand), all in reasonable detail, fairly presenting in all material respects the financial position and the results of operations of Holdings (or its direct Parent Entity) and its Subsidiaries the Consolidated Parties (and, if applicable, Holdings and its Subsidiaries) as at the date thereof and for the Fiscal Year then ended, and prepared in accordance with GAAP in all material respects. Such consolidated statements shall be certified, reported on without a “going concern” or like qualification (other than (x) with respect to, or resulting from, the upcoming maturity of the Term Loans hereunder or (y) a prospective default under the Financial Covenant or ABL Financial Covenant (if the ABL Credit Agreement is then in effect)), or qualification arising out of the scope of the audit, by a firm of independent registered public accountants of recognized national standing selected by, prior the any Qualified IPO, the Parent Guarantor, and following any Qualified IPO, Holdings (or its direct Parent Entity)Borrower. Notwithstanding the foregoing, the obligations in this Section 6.2(a) may be satisfied with respect to financial information of the Consolidated Parties by furnishing (A) prior to any Qualified IPO, the applicable financial statements of Holdings Parent Guarantor’s Form 10-K filed with the SEC (or any Parent Entity of Holdings) or (B) after any Qualified IPO, Borrower’s or Holdings’
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[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
(or any its direct Parent Entity thereof), as applicable, Form 10-K filed with the SECrespect to each of clauses (A) and (B) above, (i) to the extent such information relates to Holdings (or such Parent Entity), such information is accompanied by consolidating information that explains in reasonable detail the differences between the information relating to Holdings (or such Parent Entity), on the one hand, and the information relating to the Consolidated Parties on a standalone basis, on the other hand and (ii). In addition, together with the Financial Statements required to be delivered pursuant to this Section 6.2(a), Holdings shall deliver, (x) prior to any Qualified IPO, a customary “management’s discussion and analysis of financial condition and results of operations” of Parent Guarantor with respect to the periods covered by such Financial Statements” and (y) following any Qualified IPO, a customary “management’s discussion and analysis of financial condition and results of operations” of Holdings (or its direct Parent Entity) with respect to the periods covered by such Financial Statements.”
“(b) As soon as available, but in any event not later than forty-five (45) days after the end of each of the first three (3) Fiscal Quarters of each Fiscal Year (other than for (i) the first Fiscal Quarter ending after the Closing Date, in which case delivery shall be not later than ninety (90) days after the end of such Fiscal Quarter and (ii) each Fiscal Quarter ending in 2024 (if not the first Fiscal Quarter ended after the Closing Date), in which case delivery shall be not later than sixty (60) days after the end of such Fiscal Quarters), (I) prior to any Qualified IPO, consolidated unaudited balance sheets of the Parent Guarantor and its Subsidiaries the Consolidated Parties and, if different, Holdings and its Subsidiaries, as at the end of such Fiscal Quarter, and consolidated unaudited income statements and cash flow statements for the Parent Guarantor and its Subsidiariesthe Consolidated Parties, and, if different from Holdings and its Subsidiaries for such Fiscal Quarter and for the period from the beginning of the Fiscal Year to the end of such Fiscal Quarter, setting forth, in each case, in reasonable detail, and prepared in all material respects in conformity with GAAP consistently applied, subject to changes resulting from normal year-end audit adjustments and to the absence of footnotes and certified by a Responsible Officer of Parent Guarantor in each case, as being complete and correct in all material respects in conformity with GAAP, prepared in reasonable detail in accordance with GAAP in all material respects consistently applied and fairly presenting in all material respects the Parent Guarantor’s and its Subsidiaries’ Consolidated Parties’ (and, if applicable, Holdings and its Subsidiaries’) financial position as at the dates thereof and their results of operations for the periods then ended, subject to changes resulting from normal year-end audit adjustments and to the absence of footnotes and (II) following any Qualified IPO, the consolidated unaudited balance sheets of Holdings (or its direct Parent Entity) and its Subsidiaries, as at the end of such Fiscal Quarter, and
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[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
consolidated unaudited income statements and cash flow statements for Holdings (or its direct Parent Entity) and its Subsidiaries, setting forth, in each case, in reasonable detail, and prepared in all material respects in conformity with GAAP consistently applied, subject to changes resulting from normal year-end audit adjustments and to the absence of footnotes and certified by a Responsible Officer of Holdings (or its direct Parent Entity) as being complete and correct in all material respects in conformity with GAAP, prepared in reasonable detail in accordance with GAAP in all material respects consistently applied and fairly presenting in all material respects Holdings’ (or its direct Parent Entity’s) and its Subsidiaries’ financial position as at the dates thereof and their results of operations for the periods then ended, subject to changes resulting from normal year-end audit adjustments and to the absence of footnotes. Notwithstanding the foregoing, the obligations in this Section 6.2(b) may be satisfied with respect to financial information of the Consolidated Parties by furnishing, (x) prior to any Qualified IPO, (A) the applicable Financial Statements of Holdings (or any Parent Entity thereof) or (B) the Borrower’s or Holdings’ (or any Parent Entity thereof), as applicable, Form 10-Q filed with the SEC and (y) following any Qualified IPO, Holdings’ (or its direct Parent Entity’s) Form 10-Q filed with the SEC; provided that, with respect to each of clauses (A) and (B), to the extent such information relates to Holdings (or any such Parent Entity), such information is accompanied by consolidating information that explains in reasonable detail the differences between the information relating to Holdings (or such Parent Entity), on the one hand, and the information relating to the Consolidated Parties on a standalone basis, on the other hand. In addition, together with the Financial Statements required to be delivered pursuant to this Section 6.2(b), Holdings shall deliver (x) prior to any Qualified IPO, a customary “management’s discussion and analysis of financial condition and results of operations” of Parent Guarantor with respect to the periods covered by such Financial Statements and (y) following any Qualified IPO, a customary “management’s discussion and analysis of financial condition and results of operations” of Holdings (or its direct Parent Entity) with respect to the periods covered by such Financial Statements.”
“(h) in addition to the foregoing Distributions, Holdings or any Subsidiary of Holdings may authorize, declare and make additional Distributions in Cash, (i) in the case of any Distribution occurring prior to the 12-month anniversary of the Closing Date, in an amount equal to $35,000,000 and (ii) so long as (A) the Monarch Acquisition Seller Debt has been repaid in Cash, and the Liens securing the Monarch Acquisition Seller Debt have been released, in each case, in full and final satisfaction thereof, and (B) such Distribution occurs prior to December 27, 2025, in an amount equal to $35,000,000 and (iii) in an unlimited amount thereafter after the twelve month anniversary of the Closing Date, so long as on the date such
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[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
Distribution is made, measured at such time, (x) the Total Net Leverage Ratio as of the last day of the most recently completed Test Period, after giving Pro Forma Effect to such Distribution, does not exceed 1.00:1.00 and (y) Liquidity, after giving Pro Forma Effect to such Distribution, is not less than $40,000,000;”
“(a) Total Net Leverage Ratio. Commencing with the fiscal quarter ending September 30, 2024 September 30, 2025, Holdings and its Subsidiaries, on a consolidated basis, shall not permit the Total Net Leverage Ratio on the last day of any Test Period to exceed 2.00:1.00.”
“(i) Prior to any Qualified IPO, Holdings shall maintain at least one independent director, (A) who shall be reasonably acceptable to the Required Lenders, and (B) whose rights shall be limited solely to voting on whether to commence an Insolvency Proceeding, and (ii) after or in conjunction with any Qualified IPO, Alpine Holding, LLC or its direct public parent Subsidiary shall maintain independent directors required to satisfy the NASDAQ Independent Director qualifications.”
# of Deficiencies Unresolved |
Beginning June 28, 2024 January 31, 2025 |
Beginning January 10, 2025 July 31, 2025 |
Five (5) or fewer items |
7.25% |
7.75% |
Six (6) to ten (10) items |
7.25% |
8.75% |
Greater than ten (10) items |
8.25% |
9.75% |
5 of 6
[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
[Remainder of Page Intentionally Left Blank; Signature Pages Follow]
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[Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and delivered by their respective duly authorized officers as of the date first written above.
ALPINE HOLDING II, LLC,
as Holdings
By: ______________________________
Name:
Title:
PF PROPPANT HOLDING, LLC,
as Borrower
By: ______________________________
Name:
Title:
ALPINE SILICA, LLC,
as Guarantor
By: ______________________________
Name:
Title:
SUNNY POINT AGGREGATES, LLC,
as Guarantor
By: ______________________________
Name:
Title:
[Signature Page to Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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PERFORMANCE PROPPANTS INTERNATIONAL, LLC,
as Guarantor
By: ______________________________
Name:
Title:
PERFORMANCE PROPPANTS, LLC,
as Guarantor
By: ______________________________
Name:
Title:
RED RIVER LAND HOLDINGS, LLC,
as Guarantor
By: ______________________________
Name:
Title:
PERFORMANCE ROYALTY, LLC,
as Guarantor
By: ______________________________
Name:
Title:
[Signature Page to Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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ALPINE MONAHANS, LLC,
as Guarantor
By: ______________________________
Name:
Title:
ALPINE MONAHANS II, LLC,
as Guarantor
By: ______________________________
Name:
Title:
MONARCH SILICA, LLC,
as Guarantor
By: ______________________________
Name:
Title:
ALPINE REAL ESTATE HOLDINGS, LLC,
as Guarantor
By: ______________________________
Name:
Title:
[Signature Page to Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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[Signature Page to Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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XXXX BANK,
as Lender
By:___________________________
Name:
Title:
XXXX BANK USA,
as Lender
By:___________________________
Name:
Title:
[Signature Page to Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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CLMG CORP.,
as Agent
By:___________________________
Name:
Title:
CLMG CORP.,
as Collateral Agent
By:___________________________
Name:
Title:
[Signature Page to Amendment No. 1 and Consent Agreement, dated as of June 19, 2024, among Alpine Holding II, LLC, as holdings, PF Proppant Holding, LLC, as borrower, Xxxx Bank, as lender, Xxxx Bank USA, as lender, and CLMG Corp., as agent and collateral agent, and other entities]
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Annex A
to the Amendment and Consent Agreement
Amended and Restated Exhibit C (Form of Compliance Certificate) to the Credit Agreement
[See attached.]
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