Exhibit 10.8
$100,000,000
FACILITY AGREEMENT
dated 28 May 2009
for
WESTWAY GROUP, INC.
WESTWAY HOLDINGS NETHERLANDS BV
as borrowers
WESTWAY GROUP, INC.
as guarantor
with
E D & F MAN TREASURY MANAGEMENT PLC
as lender
INTERIM FACILITY
AGREEMENT
THIS AGREEMENT is made on 28 May 2009
BETWEEN
(1)
WESTWAY GROUP, INC.
as borrower (the “
Company ”);
(2)
WESTWAY HOLDINGS NETHERLANDS
BV as borrower (“
Westway Netherlands ”, together with the Company as
borrower, the “ Borrowers ”);
(3)
WESTWAY GROUP, INC.
as guarantor in respect of the
obligations of Westway Netherlands (the “ Guarantor
”); and
(4)
E D & F MAN TREASURY
MANAGEMENT PLC as lender
(the “ Lender ”).
IT IS AGREED as follows:
1.
DEFINITIONS -
1.1
In this
Agreement:
“ Applicable Rate
” means:
(a)
in relation to any amount in the
Base Currency or an Optional Currency in respect of which LIBOR
exists, LIBOR; and
(b)
in relation to any amount in any
other Optional Currency in respect of which LIBOR does not exist,
the rate nominated by the Lender representing the average cost to
the Lender of funding that amount in that Optional Currency from
whatever source it may reasonably select.
“ Available Facility
” means the amount of the Facility minus (a) the amount
of any outstanding Loans; and (b) in relation to any proposed
utilisation, the amount of any Loans that are due to be made on or
before the proposed utilisation date.
“ Availability Period
” means the period from and including the date of this
Agreement to and including the date falling 30 days after the date
of this Agreement (or if that date is not a Business Day, the next
Business Day).
“ Base Rate ”
means dollars.
“ Base Currency Amount
” means, in relation to a Loan, the amount specified in the
utilisation request delivered by a Borrower for that Loan (or, if
the amount requested is not denominated in the Base Currency, that
amount converted into the Base Currency at an exchange rate
nominated by the Lender on the date which is three Business Days
before the utilisation date or, if later, on the date the Lender
receives the utilisation request).
“ Business Day ”
means a day (other than a Saturday or Sunday) on which banks are
open for general business in London, Amsterdam and New
York.
“ Facility ”
means the loan facility in an aggregate amount of $100,000,000 made
available under this Agreement to the extent not cancelled or
reduced under this Agreement.
“ Finance Document
” means this Agreement and any other document designated as a
“Finance Document” by the Lender and the
Company.
“ Group ” means
the Guarantor and its Subsidiaries for the time being.
“ Increased Costs
” means:
(a)
a reduction in the rate of return
from the Facility or on Lender’s (or its affiliate’s)
overall capital;
(b)
an additional or increased cost;
or
(c)
a reduction of any amount due and
payable under any Finance Document,
which is incurred or suffered by the
Lender or any of its affiliates to the extent that it is
attributable to the Lender having entered into a commitment or
funding or performing its obligations under any Finance
Document.
1
“ LIBOR ” means,
in relation to any amount in a relevant currency on which interest
for a given period is to accrue, the applicable screen rate as at
11.00 a.m. on a relevant calculation date for the offering of
deposits of that amount in that currency for one month and the
“ screen rate ” means the British Bankers’
Association Interest Settlement Rate for that currency for one
month displayed on pages “LIBOR01” and
“LIBOR02” of the Reuters screen.
“ Loan ” means a
loan made or to be made under the Facility or the principal amount
outstanding for the time being of that loan.
“ Margin ” means
3.50 per cent. per annum.
“ Obligor ” means
a Borrower or the Guarantor.
“ Optional Currency
” means any currency other than the Base Currency as agreed
by the Lender.
“ Party ” means a
party to this Agreement.
“ Permanent Facility
Agreement ” means a $100,000,000 facility agreement which
will be entered into by the Parties to replace this Agreement
incorporating arm’s length financing terms typically seen in
the London market for corporate loans to obligors such as the
Obligors.
“ Subsidiary ”
means a subsidiary within the meaning of section 1159 of the
Companies Act 2006 of England and Wales.
“ Tax ” means any
tax, levy, impost, duty or other charge or withholding of a similar
nature (including any penalty or interest payable in connection
with any failure to pay or any delay in paying any of the
same).
2.
LOANS
2.1
A Borrower may
utilise the Facility by delivering a written request to the Lender
no later than 1 p.m. (London time) on the third Business Day
prior to the proposed utilisation date, or in such other form and
with such lesser notice as the Lender may agree. The currency of a
loan specified in a request shall be the Base Currency, unless the
Lender agrees otherwise.
2.2
On receipt of a
valid Borrower’s request pursuant to Clause 2.1, the Lender
agrees, subject to the maximum aggregate amount of the Facility,
that it shall make the requested Loan to the relevant Borrower at
the time and in the amount specified in such request provided that
no demand for repayment has been made by the Lender prior to such
Loan being made.
2.3
Each Borrower
shall apply all amounts borrowed by it under the Facility towards
its general corporate purpose.
3.
INTEREST
3.1
Interest shall be
payable on the date of repayment of each Loan on the amount of that
Loan outstanding at the rate per annum which is the sum of the
Margin and the Applicable Rate and shall be calculated on the basis
of the number of days elapsed and a 360 day year or, in any case
where the practice in the relevant interbank market (as nominated
by the Lender for the purpose of calculating the Applicable Rate)
differs, in accordance with that market practice.
2
3.2
If an Obligor
fails to pay any amount payable by it under a Finance Document on
its due date, interest shall accrue on the overdue amount from the
due date up to the date of actual payment (both before and after
judgment) at a rate which is one per cent. higher than the rate
referred to in Clause 3.1 above.
4.
REPAYMENT
Each Borrower
which has drawn a Loan shall repay that Loan (together with all
interest accrued thereon) upon the earlier of: (i) the date
falling 30 days after the making of that Loan (or if that day is
not a Business Day, the next Business Day); (ii) the end of
the Availability Period; and (iii) a Lender’s demand for
repayment at any time, or as otherwise agreed between that Borrower
and the Lender. The Borrowers shall have no right to prepay any
Loan without the prior consent of the Lender.
5.
FEES
5.1
Commitment Fees
- The Borrowers shall pay to the
Lender a fee in the Base Currency computed at the rate of 1.4 per
cent per annum on the Available Facility for the Availability
Period and shall be jointly and severally liable for this
fee. The accrued commitment fee is payable on the last day of
each successive period of one month which ends during the
Availability Period, on the last day of the Availability Period and
upon any repayment following a Lender’s demand pursuant to
Clause 4(iii).
5.2
Up-front fee
- The Borrowers shall pay to the
Lender a fee in the Base Currency computed at the rate of 1.5 per
cent of the uncancelled amount of the Facility on the day falling
180 days after the date of this Agreement and shall be jointly and
severally liable for this fee.
6.
GUARANTEE
6.1
Guarantee and indemnity -
In consideration
for the Lender agreeing to make Loans in accordance with this
Agreement, the Guarantor irrevocably and
unconditionally:
6.1.1
guarantees to the
Lender punctual performance by Westway Netherlands of all its
obligations under the Finance Documents;
6.1.2
undertakes with
the Lender that whenever Westway Netherlands does not pay any
amount when due under or in connection with any Finance Document,
the Guarantor shall immediately on demand pay that amount as if it
was the principal obligor; and
6.1.3
indemnifies the
Lender immediately on demand against any cost, loss or liability
suffered by the Lender if any obligation guaranteed by it is or
becomes unenforceable, invalid or illegal. The amount of the
cost, loss or liability shall be equal to the amount which the
Lender would otherwise have been entitled to recover.
6.2
Continuing guarantee -
This guarantee is
a continuing guarantee and will extend to the ultimate balance of
sums payable by Westway Netherlands under the Finance Documents,
regardless of any intermediate payment or discharge in whole or in
part.
6.3
Reinstatement - If any payment by any Obligor
or any discharge given by the Lender (whether in respect of the
obligations of any Borrower or any securi