Exhibit 10.1
AMENDMENT NO. 2 TO
THE
3-YEAR CREDIT
AGREEMENT
Dated as of June 5,
2009
AMENDMENT NO. 2 TO THE 3-YEAR
CREDIT AGREEMENT (this
“ Amendment ”), dated as of June 5, 2009
among The Interpublic Group of Companies, Inc., a Delaware
corporation (the “ Company ”), the banks,
financial institutions and other institutional lenders parties to
the Credit Agreement referred to below (collectively, the “
Lenders ”) and Citibank, N.A., as administrative agent
(the “ Agent ”) for the Lenders.
PRELIMINARY
STATEMENTS:
(1) The Company, the Lenders and the
Agent have entered into a 3-Year Credit Agreement dated as of
July 18, 2008 and amended as of May 13, 2009 (as so
amended, the “ Credit Agreement ”). Capitalized
terms used in this Amendment and not otherwise defined in this
Amendment shall have the same meanings as specified in the Credit
Agreement.
(2) The Company, the Required
Lenders and the Agent have agreed to amend the Credit Agreement as
hereinafter set forth.
AGREEMENTS:
SECTION 1. Amendments to the
Credit Agreement . The Credit Agreement is, effective as of the
date set forth above and subject to the satisfaction of the
conditions precedent set forth in Section 2, hereby amended as
follows:
(a) Section 1.01 is amended by
adding the following proviso to the end of the definition of
“Total Debt”:
“; provided , that
Total Debt determined as of any date from and including
June 30, 2009 through and including November 15, 2009
shall not include any Disregarded Debt outstanding as of such
date.”
(b) Section 1.01 is amended by
adding the following new defined terms in their appropriate
alphabetical order:
“ Disregarded Debt
” means, as of any date, outstanding Debt of the Company of
up to $600,000,000 in aggregate principal amount under any New
Senior Notes; provided , that the outstanding principal
amount of Disregarded Debt shall be deemed reduced (but not below
$0) as at any date of determination by the aggregate amount by
which the outstanding principal amount of any of (i) the
Company’s 5.40% notes due 2009, (ii) the Company’s
Floating Rate Notes due 2010, and (iii) the
Company’s
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1
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4 % notes due 2011, has been
reduced from the aggregate principal amount of such notes
outstanding as of June 5, 2009.
“ New Senior Notes
” means any senior notes of the Company issued at any time
between June 5, 2009 and November 15, 2009.
(c) Section 5.03(a) is amended
by adding the following proviso after the phrase “4.50 to
1”:
“; provided , that
(x) if the aggregate principal amount of New Senior Notes
issued prior to such date of determination is equal to or greater
than $300,000,000 but less than $450,000,000, such ratio may as of
the end of any fiscal quarter prior to the fiscal quarter ended
September 30, 2010 be less than 4.50 to 1 but shall not be
less than 3.75 to 1, and (y) if the aggregate principal amount
of New Senior Notes issued prior to such date of determination is
equal to or greater than $450,000,000, such ratio may be less than
4.50 to 1 but shall not be less than 3.75 to 1.”
(d) Section 5.03(b) is deleted
in its entirety and replaced by the following:
“(b) Leverage Ratio .
Maintain, as of the end of the fiscal quarter ended
September 30, 2008 and as of the end of each fiscal quarter
thereafter, a Leverage Ratio of not greater than the ratio set
forth opposite such fiscal quarter (under the applicable aggregate
principal amount of New Senior Notes issued prior to such date of
determination) below:
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New Senior
Notes less
than $300 MM
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New Senior
Notes equal to or
greater than
$300 MM but less
than $450 MM
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New Senior
Notes equal to
or greater
than $450 MM
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September 30, 2008
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3.50 to 1
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3.50 to 1
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3.50 to 1
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December 31, 2008
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3.50 to 1
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3.50 to 1
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3.50 to 1
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March 31, 2009
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3.25 to 1
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3.25 to 1
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3.25 to 1
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June 30, 2009
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3.25 to 1
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3.25 to 1
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3.25 to 1
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September 30, 2009
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3.25 to 1
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3.25 to 1
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3.25 to 1
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December 31, 2009
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3.25 to 1
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3.25 to 1
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3.25 to 1
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March 31, 2010
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3.00 to 1
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3.25 to 1
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3.25 to 1
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June 30, 2010
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3.00 to 1
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3.25 to 1
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3.25 to 1
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September 30, 2010 and
thereafter
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3.00 to 1
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3.00 to 1
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3.25 to 1
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(e) Section 5.03(c) is amended
by adding the following proviso after the number
“600,000,000”:
“; provided , that if
the aggregate principal amount of New Senior Notes issued prior to
such date of determination is equal to or greater than
$300,000,000, such Consolidated EBITDA may as of the end of any
fiscal quarter prior to the fiscal quarter ended September 30,
2010 be less than $600,000,000 but shall not be less than
$550,000,000.”
SECTION 2. Conditions of
Effectiveness . This Amendment shall become effective as of the
date first above written when, and only when, the Agent shall have
received counterparts of this Amendment executed by the Company and
the Required Lenders or, as to any of the Lenders, advice
satisfactory to the Agent that