Exhibit 10.1
AMENDMENT NO. 2 TO
CREDIT AGREEMENT
AMENDMENT NO. 2, dated as of
May 20, 2009 (this “ Amendment ”), among
COMMSCOPE, INC., a Delaware corporation (the “
Borrower ”), the Guarantors, BANK OF AMERICA, N.A., as
Administrative Agent, Swing Line Lender and L/C Issuer, and the
Required Lenders listed on the signature pages hereto, to the
CREDIT AGREEMENT, dated as of December 27, 2007, as amended
prior to the date hereof (the “ Credit Agreement
”), among the Borrower, each lender from time to time party
thereto, and BANK OF AMERICA, N.A., as Administrative Agent, Swing
Line Lender and L/C Issuer. Capitalized terms used and not
otherwise defined herein shall have the meanings assigned to them
in the Credit Agreement.
WHEREAS, Section 10.01 of the
Credit Agreement permits the Credit Agreement to be amended from
time to time;
NOW, THEREFORE, in consideration of
the premises and covenants contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally
bound hereby, agree as follows:
Section 1. Amendments
.
Upon and subject to the Amendment
No. 2 Effective Date (as defined below), the Credit Agreement
is amended as follows:
(a) The definition of “Letter
of Credit Sublimit” in the Credit Agreement is hereby amended
by replacing “$85,000,000” with
“$125,000,000”.
(b) Section 2.03(a)(ii)(A) of
the Credit Agreement is hereby amended by replacing
“$15,000,000” with
“$25,000,000”.
(c) Section 2.05(b)(x) of the
Credit Agreement is hereby replaced in its entity with the
following:
“(x) Amounts to be applied
pursuant to this Section 2.05(b) to the prepayment of
Term A Loans, Term B Loans and Revolving Credit Loans shall be
applied, as applicable, first to reduce outstanding Base Rate
Loans. Any amounts remaining after each such application shall be
applied to prepay Eurodollar Rate Loans. Notwithstanding the
foregoing, if any Lender exercises its option pursuant to
Section 2.05(b)(vii) to decline a mandatory prepayment
of Term B Loans and after giving effect to the exercise of such
option, there would be Base Rate Loans and Eurodollar Rate Loans
that are Term B Loans, then such prepayment shall be applied to
Base Rate Loans and Eurodollar Rate Loans on a pro rata basis.
Notwithstanding the foregoing, if after giving effect to the
foregoing the amount of any prepayment of Loans required under this
Section 2.05(b) shall be in excess of the amount of the
Base Rate Loans at the time outstanding or any portion of such
prepayment shall be required to be
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applied to Eurodollar Rate Loans
pursuant to the immediately preceding sentence (in either case, an
“ Excess Amount ”), only the portion of the
amount of such prepayment as is equal to the amount of such
outstanding Base Rate Loans (or required to be applied to Base Rate
Loans pursuant to the immediately preceding sentence, as the case
may be) shall be immediately prepaid and, at the election of
Borrower, the Excess Amount shall be either (A) deposited in
an escrow account on terms satisfactory to the Administrative Agent
and applied to the prepayment of Eurodollar Rate Loans on the last
day of the then next-expiring Interest Period for Eurodollar Rate
Loans; provided that (i) interest in respect of such
Excess Amount shall continue to accrue thereon at the rate provided
hereunder for the Loans which such Excess Amount is intended to
repay until such Excess Amount shall have been used in full to
repay such Loans and (ii) at any time while a Default has
occurred and is continuing, the Administrative Agent may, and upon
written direction from the Required Lenders shall, apply any or all
proceeds then on deposit to the payment of such Loans in an amount
equal to such Excess Amount or (B) prepaid immediately,
together with any breakage costs owing to the Lenders;
provided , further , however , that
(X) this Section 2.05(b)(x) shall not apply if the
Borrower is required to prepay the Loans pursuant to the second
proviso in Section 2.05(b)(ii) or the second proviso in
Section 2.05(b)(v) and (Y) if any Lender exercises
its option pursuant to Section 2.05(b)(vii) to decline
a mandatory prepayment of Term B Loans and after giving effect to
the exercise of such option, there would be more than one Term B
Borrowing of Eurodollar Rate Loans, then such prepayment shall be
applied to all Term B Borrowings of Eurodollar Rate Loans on a pro
rata basis.”
(d) Section 7.05(k) of the
Credit Agreement is hereby replaced in its entirety with the
following:
“(k) Dispositions by the
Borrower and its Subsidiaries not otherwise permitted under this
Section 7.05 ; provided that (i) at the
time of such Disposition, no Default shall exist or would result
from such Disposition, and (ii) the aggregate fair market
value of all property Disposed of in reliance on this clause
(k) in any fiscal year shall not exceed $45,000,000, and no
more than $15,000,000 of the aggregate consideration therefor in
such fiscal year shall consist of consideration that is not cash or
Cash Equivalents; and”.
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(e) Section 7.11(a) of the
Credit Agreement is hereby amended by replacing the table therein
in its entirety with the following table:
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Four Fiscal Quarters Ending
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Minimum
Consolidated
Interest Coverage
Ratio
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Closing Date through June 30,
2008
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2.85:1.00
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July 1, 2008 through June 30,
2010
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3.75:1.00
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July 1, 2010 through June 30,
2011
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4.50:1.00
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July 1, 2011 and thereafter
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5.00:1.00
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(f) Section 7.11(b) of the
Credit Agreement is hereby amended by replacing the table therein
in its entirety with the following table:
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Four Fiscal Quarters Ending
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Maximum
Consolidated
Leverage Ratio
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Closing Date through June 30,
2008
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4.25:1.00
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July 1, 2008 through June 30,
2010
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3.75:1.00
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July 1, 2010 through June 30,
2011
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3.25:1.00
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July 1, 2011 and thereafter
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2.50:1.00
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Section 2.
Representations and Warranties .
Borrower represents and warrants to
the Lenders as of the date hereof and the Amendment No. 2
Effective Date that:
(a) The execution, delivery and
performance by each Loan Party of this Amendment have been duly
authorized by all necessary corporate or other organizational
action, and do not and will not (a) contravene the terms of
any of such Person’s Organization Documents;
(b) conflict with or result in any breach or contravention of,
or the creation of any Lien under, or require any payment to be
made under (i) any Contractual Obligation to which such Person
is a party or binding upon such Person or the properties of such
Person or any of its Subsidiaries or (ii) any order,
injunction, writ or decree of any