EXECUTION COPY AMENDMENT NO. 1 TO LOAN
DOCUMENTS AMENDMENT NO. 1 TO LOAN DOCUMENTS executed on February 5,
2009 (but effective as hereinafter provided) (the "Amendment")
among ALLBRITTON COMMUNICATIONS COMPANY, a Delaware corporation
(the "Borrower"), the subsidiaries of the Borrower signatories
hereto (the "Guarantors"), the banks, financial institutions and
other institutional lenders parties to the Credit Agreement
referred to below (collectively, the "Banks"), BANK OF AMERICA,
N.A., as administrative agent (the "Agent") for the Banks, and
DEUTSCHE BANK SECURITIES, INC., as syndication agent (the
"Syndication Agent"). PRELIMINARY STATEMENTS: (1) The Borrower, the
Banks, the Agent and the Syndication Agent have entered into a
Credit Agreement dated as of August 23, 2005 (the "Credit
Agreement"). The Guarantors have entered into an Unlimited Guaranty
in favor of the Agent and the Banks dated as of August 23, 2005
(the "Guaranty Agreement"). The Borrower, certain of the Guarantors
and the Agent have entered into a Pledge Agreement dated as of
August 23, 2005 (the "Pledge Agreement"). The Agent and certain of
the Guarantors have entered into a Collateral Assignment of
Proceeds and Security Agreement dated as of August 23, 2005 (the
"Collateral Assignment"). Capitalized terms not otherwise defined
in this Amendment have the same meanings as specified in the Credit
Agreement. (2) The Credit Agreement, directly or indirectly through
a series of credit agreements, restated, amended, refinanced,
supplemented or otherwise modified or replaced the senior secured
revolving credit facility dated as of March 27, 2001, among the
Borrower, certain subsidiaries of Borrower, the financial
institutions party thereto, Fleet National Bank, as agent, and
Deutsche Bank Securities Inc. (3) The Borrower and the Majority
Banks have agreed to amend the Credit Agreement, the Guaranty
Agreement, the Pledge Agreement and the Collateral Assignment as
hereinafter set forth. SECTION 1. Amendments to Credit Agreement.
(a) Section 1.1 of the Credit Agreement is hereby amended as
follows: i. The definition of "Applicable Margins and Commitment
Fee Rate" in Section 1.1 of the Credit Agreement is hereby amended
and restated in full to read as follows: "Applicable Margins and
Commitment Fee Rate. With respect to any fiscal quarter of the
Borrower, the Eurodollar Applicable Margin, the Alternate Base Rate
Applicable Margin and the Commitment Fee Rate shall be the
applicable percentages set forth below opposite the Total Leverage
Ratio (as defined below) determined for the most recently ended
fiscal quarter for which the Borrower has delivered financial
statements pursuant to ss.6.4(a) or (b), commencing with the first
fiscal quarter to end after the Amendment No. 1 Execution Date:
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Alternate Total Eurodollar Base Rate Commitment Leverage Ratio
Applicable Applicable Fee (as defined below) Margin Margin Rate
------------------ ---------- ---------- ---------- Greater than
or equal 3.50% 2.25% 0.500% to 6.5:1.0 Less than 6.5:1.00 but 3.25%
2.00% 0.500% greater than or equal to 5.5:1.0 Less than 5.5:1.0 but
3.00% 1.75% 0.375% greater than or equal to 4.5:1.0 Less than
4.5:1.0 2.75% 1.50% 0.375%
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provided, that if the Borrower's financial
statements are not furnished to the Banks pursuant to ss.6.4(a) or
(b) hereof within five (5) Business Days after the relevant period
of time specified in ss.6.4, the Eurodollar Applicable Margin with
respect to all Eurodollar Rate Loans shall be 3.50%, the Alternate
Base Rate Applicable Margin with respect to all Base Rate Loans
shall be 2.25% and the Commitment Fee Rate shall be 0.500% during
the period commencing on the date such statements are due and
(provided that such financial statements are subsequently furnished
to the Banks) ending on the date two (2) days following the
delivery to the Agent of the financial statements to be furnished
pursuant to ss.6.4(a) or (b) for the appropriate period.
Notwithstanding anything provided herein, for purposes of the
determination of the Applicable Margins and Commitment Fee Rate,
"Total Leverage Ratio" is defined as the ratio of (a) Total Debt as
of the ending date of the fiscal quarter for which the Borrower has
delivered financial statements pursuant to ss.6.4(a) or (b), to (b)
Consolidated EBITDA for the period of four (4) consecutive fiscal
quarters most recently ended for which the Borrower has delivered
financial statements pursuant to ss.6.4(a) or (b)." ii. The
definition of "Change of Control" in Section 1.1 of the Credit
Agreement is hereby amended by deleting the period at the end of
clause (d) thereof and adding the following clause (e) at the end
thereof "; or (e) the Principals cease to beneficially own and
control at least 50% on a fully diluted basis of the voting and
economic interests in the Borrower." iii. The definition of
"Majority Banks" in Section 1.1 of the Credit Agreement is hereby
amended and restated in full to read as follows: "Majority Banks.
As of any date of determination, (a) at any time there are less
than three (3) Banks, Banks having 100% of the Total Commitment or,
if 2 the Commitments of each Bank to make Loans have been
terminated pursuant to ss. 11.1, Banks holding 100% of the
outstanding principal amount of the Notes and (b) at any time there
are three (3) or more Banks, a minimum of two (2) Banks having more
than 66-2/3% of the Total Commitment or, if the Commitments of each
Bank to make Loans have been terminated pursuant to ss. 11.1, a
minimum of two (2) Banks holding in the aggregate more than 66-2/3%
of the outstanding principal amount of the Notes; provided, that
(i) the Commitment of, and the portion of the outstanding principal
amount of the Notes held or deemed held by, any Defaulting Bank
shall be excluded for purposes of making a determination of
Majority Banks and (ii) for purposes hereof, a Bank and its
Affiliates shall be considered as a single Bank." iv. The
definition of "Obligations" in Section 1.1 of the Credit Agreement
is hereby amended by adding the following sentence at the end
thereof: "For the avoidance of doubt, Obligations shall include any
advances to, and debts, liabilities, obligations and covenants of,
any Loan Party arising under any Secured Cash Management Agreement
or any interest rate protection agreement entered into by a Bank or
an Affiliate of a Bank." v. The following definitions are hereby
added to Section 1.1 of the Credit Agreement in the proper
alphabetical order: "Amendment No. 1. Amendment No. 1 to Loan
Documents, dated as of the Amendment No. 1 Effective Date, among
the Borrower, the Guarantors, the Banks, the Agent and the
Syndication Agent." "Amendment No. 1 Effective Date. As of December
31, 2008." "Amendment No. 1 Execution Date. February 5, 2009."
"Cash Equivalents. Any of the following, to the extent owned by the
Borrower or any of its Subsidiaries: (i) readily marketable
obligations issued or directly and fully guaranteed or insured by
the United States of America or any agency or instrumentality
thereof having maturities of not more than 360 days from the date
of acquisition thereof; provided that the full faith and credit of
the United States of America is pledged in support thereof; (ii)
time deposits with, or insured certificates of deposit or bankers'
acceptances of, any commercial bank that (a) (A) is a Bank or (B)
is organized under the laws of the United States of America, any
state thereof or the District of Columbia or is the principal
banking subsidiary of a bank holding company organized under the
laws of the United States of America, any state thereof or the
District of Columbia, and is a member of the Federal Reserve
System, (b) issues (or the parent of which issues) 3 commercial
paper rated as described in clause (iii) of this definition and (c)
has combined capital and surplus of at least $1,000,000,000, in
each case with maturities of not more than 180 days from the date
of acquisition thereof; (iii) commercial paper issued by any Person
organized under the laws of any state of the United States of
America and rated at least "Prime-1" (or the then equivalent grade)
by Moody's or at least "A-1" (or the then equivalent grade) by
S&P, in each case with maturities of not more than 180 days
from the date of acquisition thereof; and (iv) Investments,
classified in accordance with GAAP as current assets of the
Borrower or any of its Subsidiaries, in money market investment
programs registered under the Investment Company Act of 1940, which
are administered by financial institutions that have the highest
rating obtainable from either Moody's or S&P, and the
portfolios of which are limited solely to Investments of the
character, quality and maturity described in clauses (i), (ii) and
(iii) of this definition." "Cash Management Agreement. Any
agreement to provide cash management services, including treasury,
depository, overdraft, credit or debit card, electronic funds
transfer and other cash management arrangements." "Cash Management
Bank. Any Person that is a Bank or an Affiliate of a Bank, in its
capacity as a party to such Cash Management Agreement." "Secured
Cash Management Agreement. Any Cash Management Agreement that is
entered into by and between any Loan Party and any Cash Management
Bank." "Secured Interest Rate Protection Agreement. Any interest
rate protection agreement entered into from time to time by a Bank
or any of its Affiliates with a Loan Party." "Secured Parties.
Agent, the Banks, the Cash Management Banks and any Bank or
Affiliate of a Bank that has entered into an interest rate
protection agreement with any Loan Party." "Total Leverage Ratio.
(i) For purposes of the determination of the Applicable Margins and
Commitment Fee Rate, see the definition of Applicable Margins and
Commitment Fee Rate, and (ii) otherwise see ss. 8.2." "WCIV LLC.
WCIV LLC, a Delaware limited liability company." (b) Section 2.3 of
the Credit Agreement is hereby amended by adding thereto the
following new clause (c): 4 (c) "Scheduled Reduction of Total
Commitments. On each date set forth below, the Commitment of Bank
of America and its Affiliates shall be reduced, on a pro rata basis
as between Bank of America and such Affiliates, by the amount set
forth opposite such date below:
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---------------------- -------------------------- Date Amount of
Reduction ---------------------- --------------------------
December 31, 2009 $2,500,000.00" ----------------------
--------------------------
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(c) Section 2.9 of the Credit Agreement is
hereby amended by adding the following sentence at the end thereof:
"Notwithstanding the foregoing, if any repayment is required as a
result of any scheduled reduction of Commitments hereunder , such
repayment will be made in accordance with Section 2.3(c) hereof and
such repayment will be paid on a pro rata basis to Bank of America
and to its Affiliates in accordance with the reduction of each of
their Commitments." (d) Section 6.11 of the Credit Agreement is
hereby amended and restated in full to read as follows: "Section
6.11 Further Assurances. The Borrower will, promptly upon request
by the Agent, or any Bank through the Agent, (a) correct any
material defect or error that may be discovered in any Loan
Document or in the execution, acknowledgment, filing or recordation
thereof, and (b) do, execute, acknowledge, deliver, record,
re-record, file, re-file, register and re-register any and all such
further acts, deeds, certificates, assurances and other instruments
as the Agent, or any Bank through the Agent, may reasonably require
from time to time in order to (i) carry out more effectively the
purposes of the Loan Documents, (ii) to the fullest extent
permitted by applicable law, subject any Loan Party's or any of its
Subsidiaries' properties, assets, rights or interests to the Liens
now or hereafter intended to be covered by any of the Security
Documents, (iii) perfect and maintain the validity, effectiveness
and priority of any of the Security Documents in accordance with
its terms and any of the Liens intended to be created thereunder
and (iv) assure, convey, grant, assign, transfer, preserve, protect
and confirm more effectively unto the Secured Parties the rights
granted or now or hereafter intended to be granted to the Secured
Parties under any Loan Document or under any other instrument
executed in connection with any Loan Document to which any Loan
Party or any of its Subsidiaries is or is to be a party, and cause
each of its Subsidiaries to do so." (e) Section 7.2(vii) of the
Credit Agreement is hereby amended to change the reference to
"Pledge Agreement" therein to "Security Documents." (f) Section
7.4(d) of the Credit Agreement is hereby amended and restated in
full to read as follows: "(d) payments by the Borrower of cash
dividends on outstanding shares of its capital stock or loans or
advances to Affiliates (other than Subsidiaries of the Borrower),
and payments by any Majority-Owned Subsidiary of cash dividends on
outstanding shares of its capital stock to any Person other than
the Borrower or a wholly-owned Subsidiary of the 5 Borrower;
provided, that no Default or Event of Default is continuing on the
date of any such payment or would result therefrom after giving pro
forma effect to such payment, any related transactions and any
transactions, if any, consummated pursuant to ss.ss. 7.4(g) and
7.5(g), as if they had occurred as of the end of the last day of
the most recent fiscal quarter for which the Borrower has delivered
a Compliance Certificate (the "Pro Forma Test Date"); and,
provided, further, that (i) the Total Leverage Ratio, after giving
pro forma effect to such payments and transactions as if they had
occurred as of the Pro Forma Test Date, will not exceed 6.75:1.0,
(ii) the Senior Leverage Ratio, after giving pro forma effect to
such payments and transactions as if they had occurred as of the
Pro Forma Test Date, will not exceed 1.0:1.0 and (iii) the Agent
and the Banks shall have received, prior to the making of such
Restricted Payment, a statement certified by the principal
financial officer of the Borrower and setting forth in reasonable
detail computations evidencing compliance, on a pro forma basis,
with the covenants contained in subclauses (i) and (ii) above as at
the Pro Forma Test Date;" (g) Section 7.4 of the Credit Agreement
is hereby amended by replacing the period at the end of Section
7.4(e) thereof with a semicolon and by adding new clauses (f) and
(g) to read in full as follows: "(f) voluntary redemptions or
repurchases by the Borrower of ACC 7 3/4% Senior Subordinated
Notes; provided, that (i) the Total Leverage Ratio, after giving
pro forma effect to such payment, any related transactions and any
transaction, if any, consummated pursuant to ss.ss. 7.4(d) and
7.5(g), as if they had occurred as of the Pro Forma Test Date (as
defined above), will not exceed 6.75:1.0, (ii) the Senior Leverage
Ratio, after giving pro forma effect to such payments and
transactions as if they had occurred as of the Pro Forma Test Date,
will not exceed 1.0:1.0 and (iii) the Agent and the Banks shall
have received, prior to the making of such Restricted Payment, a
statement certified by the principal financial officer of the
Borrower and setting forth in reasonable detail computations
evidencing compliance on a pro forma basis, with the covenants
contained in subclauses (i) and (ii) above as at the Pro Forma Test
Date (as defined above); and (g) to the extent permitted by Section
7.5(g), the disposition of all of the assets or equity interests in
WCIV LLC." (h) Section 7.5 of the Credit Agreement is hereby
amended by deleting the word "and" at the end of clause (e)
thereof, replacing the period at the end of clause (f) thereof with
the phrase "; and" and adding a new clause (g) to read in full as
follows: "(g) the disposition (whether by sale, distribution,
spin-off or contribution) of all of the assets of or equity
interests in WCIV LLC; provided, that (i) no Default or Event of
Default is continuing on the date of such disposition or after
giving effect thereto as if it had occurred as of the end of the
last day of the most recent fiscal quarter for which the Borrower
has delivered a Compliance Certificate (the "Pro Forma Test Date")
and (ii) the Agent and the Banks shall have received, at least five
(5) Business Days prior the making of such disposition, a statement
certified by the principal financial officer of the Borrower and
setting forth in reasonable detail computations evidencing
compliance, on a pro forma basis, after giving effect to such
disposition and any transaction, if any, consummated pursuant to
ss.ss. 7.4(d) and 7.4(g), with the covenants contained in Section
8.2 and 8.3 as at the Pro Forma Test Date." 6 (i) Section 7.11 of
the Credit Agreement is hereby amended and restated in full to read
as follows: "Section 7.11 No Amendments, Etc. The Borrower will
not, and will not permit any of its Subsidiaries to, enter into or
permit any amendment, supplement or other modification of any
charter document or by-laws of the Borrower or any of its
Subsidiaries or any Subordinated Debt Document that, in any such
case, would adversely affect the Banks; provided, however, that TV
Alabama, Inc. and Harrisburg Television, Inc. may each amend their
Certificates of Incorporation in the manner set forth as Exhibits B
and C to Amendment No. 1." (j) Section 7 of the Credit Agreement is
hereby amended by adding a new Section 7.13 and a new Section 7.14
immediately following Section 7.12, to read in full as follows:
"Section 7.13 Cash Management. The amount of cash and Cash
Equivalents held by the Borrower and its Subsidiaries shall not
exceed $10,000,000 in the aggregate on more than four Business Days
in any consecutive five Business Day period; provided, however,
that such restriction shall not apply at any time that no Loans are
outstanding. Section 7.14 Burdensome Agreements. The Borrower will
not and will not permit any of its Subsidiaries to enter into or
permit to exist any contractual obligation (other than this
Agreement, any other Loan Document and the Subordinated Debt
Documents) that (i) limits the ability of the Borrower or any
Subsidiary to create, incur, assume or suffer to exist a lien or
security interest on property of such Person; provided, however,
that this clause (i) shall not prohibit any negative pledge
incurred or provided in favor of any holder or beneficiary of a
Permitted Lien solely to the extent any such negative pledge
relates to the property the subject of such Permitted Lien; or (ii)
requires the grant of a Lien to secure an obligation of such Person
if a Lien is granted to secure another obligation of such Person."
(k) Section 8.2 of the Credit Agreement is hereby amended and
restated in full to read as follows: "Section 8.2 Total Leverage
Ratio. The Borrower will not permit the ratio of (a) Total Debt as
of any date of determination, less, solely to the extent that no
Loans are outstanding as of such date, the aggregate amount of
unrestricted cash on hand and Cash Equivalents as of such date to
(b) Consolidated EBITDA for the period of four (4) consecutive
fiscal quarters most recently ended for which the Borrower has
supplied or is required to supply financial statements pursuant to
ss.6.4(a), or following the Closing Date, a Compliance Certificate
(hereinafter, the "Total Leverage Ratio"), to exceed the ratio set
forth below opposite the period in which the date of determination
falls:
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---------------------------------------------
----------------------------- Date During Period Maximum Total
Leverage Ratio ---------------------------------------------
-----------------------------
---------------------------------------------
----------------------------- Closing Date through December 30,
2008 7.25:1.0 ---------------------------------------------
----------------------------- December 31, 2008 through March 30,
2009 8.00:1.0 ---------------------------------------------
----------------------------- 7 March 31, 2009 through September
29, 2009 8.25:1.0 ---------------------------------------------
----------------------------- September 30, 2009 through December
30, 2009 8.00:1.00 ---------------------------------------------
----------------------------- December 31, 2009 through March 30,
2010 7.75:1.0 ---------------------------------------------
----------------------------- March 31, 2010 through September 29,
2010 7.50:1.0 ---------------------------------------------
----------------------------- September 30, 2010 through March 30,
2011 7.25:1.0 ---------------------------------------------
----------------------------- March 31, 2011 through June 29, 2011
7.00:1.0 ---------------------------------------------
----------------------------- June 30, 2011 and thereafter 6.75:1.0
---------------------------------------------
-----------------------------
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(l) Section 8.3 of the Credit Agreement is
hereby amended and restated in full to read as follows: "Section
8.3 Senior Leverage Ratio. The Borrower will not permit the ratio
of (a) Senior Debt as of any date to (b) Consolidated EBITDA for
the four (4) consecutive fiscal quarters most recently ended for
which the Borrower has supplied or is required to supply financial
statements pursuant to ss.6.4(a), or following the Closing Date, a
Compliance Certificate (the "Senior Leverage Ratio"), to exceed,
(i) for the period from the Closing Date through December 30, 2008,
2.50:1.0 and (ii) on December 31, 2008 and thereafter, 1.25:1.0."
(m) Section 11.1(c) of the Credit Agreement is hereby amended and
restated in full to read as follows: "(c) the Borrower or any
Subsidiary of the Borrower shall fail to (i) comply with any of the
covenants contained in Section 6.5 (with respect to the first
sentence thereof only), 6.12, 6.15, 6.17 (provided, however, that
to the extent compliance with such covenant is stated to be subject
to the satisfaction of the Agent, non-compliance with such covenant
shall not constitute an Event of Default solely to the extent such
non-compliance would be the result of the absence of the Agent's
satisfaction and only until three (3) Business Days after the
Borrower or such Subsidiary has received notice from the Agent of
such non-compliance), or 6.18, Section 7 or Section 8, (ii) comply
with any covenants contained in this Credit Agreement (other than
those enumerated in subclause (i) above) or in any of the other
Loan Documents (other than payment covenants described in
paragraphs (a) and (b) above) for twenty (20) days after written
notice of such failure has been given to the Borrower by the Agent
or any Bank or (iii) comply with any covenant or agreement set
forth in any Subordinated Debt Document after the period of grace
applicable thereto;" (n) Section 11.1(e) of the Credit Agreement is
hereby amended and restated in full to read as follows: "(e) the
Borrower or any of its Subsidiaries (i) fails to make any payment
when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness
or any guaranty (other than Indebtedness hereunder) having an 8
aggregate principal amount (including undrawn committed or
available amounts and including amounts owing to all creditors
under any combined or syndicated credit arrangement) of more than
$5,000,000, or (ii) fails to observe or perform any other agreement
or condition relating to any such Indebtedness or guaranty or
contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event occurs, the effect of which is
to cause, or to permit the holder or holders of such Indebtedness
or the beneficiary or beneficiarie