Exhibit 10.9
FIRST
AMENDMENT
FIRST AMENDMENT, dated as of
December 22, 2003 (this “Amendment”), to the
Credit Agreement, dated as of June 20, 2003 (as amended from
time to time, the “Credit Agreement”), among UNITED
COMPONENTS, INC., a Delaware corporation (the
“Borrower”), the several banks and other financial
institutions or entities from time to time parties to the Credit
Agreement (the “Lenders”), LEHMAN BROTHERS INC. and
J.P. MORGAN SECURITIES INC., as joint advisors, joint lead
arrangers and joint bookrunners (in such capacity, the “Joint
Lead Arrangers”), JPMORGAN CHASE BANK, as syndication agent
(in such capacity, the “Syndication Agent”), ABN AMRO
BANK N.V., CREDIT LYONNAIS, NEW YORK BRANCH, FLEET NATIONAL BANK
and GENERAL ELECTRIC CAPITAL CORPORATION, as co-documentation
agents (in such capacity, the “Co-Documentation
Agents”), and LEHMAN COMMERCIAL PAPER INC., as administrative
agent (in such capacity, the “Administrative
Agent”).
W I T N E S S E T H :
WHEREAS, pursuant to the Credit
Agreement, the Lenders have agreed to make, and have made, certain
loans and other extensions of credit to the Borrower;
WHEREAS, Borrower has requested
certain amendments to the Credit Agreement as more fully set forth
herein; and
WHEREAS, the Lenders are willing to
agree to such amendments on the terms and subject to the conditions
contained in this Amendment.
NOW, THEREFORE, the parties hereto
hereby agree as follows:
SECTION 1. Defined Terms. Unless
otherwise defined herein, terms defined in the Credit Agreement and
used herein shall have the meanings given to them in the Credit
Agreement.
SECTION 2. Amendments to Subsection
1.1. (a) The definitions of “Applicable Margin”,
“Commitment”, “Facility”, “Term
Lenders” and “Term Loans” contained in
Section 1.1 of the Credit Agreement are hereby amended in
their respective entireties to read as follows:
“Applicable Margin”: for
each Type of Loan under each Facility, the rate per annum set forth
opposite such Facility under the relevant column heading below:
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Base Rate Loans
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Eurodollar Loans
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Revolving Credit
Facility
(including Swing Line Loans)
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2.25 |
% |
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3.25 |
% |
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Tranche A Term
Loan Facility
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2.25 |
% |
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3.25 |
% |
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Tranche C Term
Loan Facility
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1.75 |
% |
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2.75 |
% |
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provided,
that (i) on and after the first Adjustment Date occurring
after the completion of two full fiscal quarters of the Borrower
after the Closing Date, the Applicable Margins with respect to
Revolving Credit Loans, Swing Line Loans and Tranche A Term Loans
will be determined pursuant to the Pricing Grid and (ii) if,
at any time after the completion of two full fiscal quarters of the
Borrower after the First Amendment Effective Date, the Consolidated
Leverage Ratio measured as of the last day of the most recently
ended fiscal quarter of the Borrower is less than 4.00:1.00, the
Applicable Margins with respect to Tranche C Term Loans shall be
reduced, on the date financial statements with respect to such
fiscal quarter are delivered to the Lenders in accordance with
Section 6.1, to 1.50%, in the case of Base Rate Loans, and
2.50%, in the case of Eurodollar Loans.
“Commitment”: with
respect to any Lender, each of the Tranche A Term Loan Commitment,
the Tranche C Term Loan Commitment and the Revolving Credit
Commitment of such Lender.
“Facility”: each of
(a) the Tranche A Term Loan Commitments and the Tranche A Term
Loans made thereunder (the “Tranche A Term Loan
Facility”), (b) the Tranche C Term Loan Commitments and
the Tranche C Term Loans made thereunder (the “Tranche C Term
Loan Facility”) and (c) the Revolving Credit Commitments
and the extensions of credit made thereunder (the “Revolving
Credit Facility”).
“Term Loan Facilities”:
the collective reference to the Tranche A Term Loan Facility and
the Tranche C Term Loan Facility.
“Term Loan Lenders”: the
collective reference to the Tranche A Term Loan Lenders and the
Tranche C Term Loan Lenders.
“Term Loans”: the
collective reference to the Tranche A Term Loans and the Tranche C
Term Loans.
(b) The
definition of “Interest Period” in Section 1.1 of
the Credit Agreement is hereby amended by replacing the words
“Tranche B” therein with the words “Tranche
C”.
(c) Section 1.1
of the Credit Agreement is hereby amended by inserting the
following new definitions in the appropriate alphabetical
order:
“First Amendment”: the
First Amendment, dated as of December 22, 2003, to this
Agreement.
“First Amendment Effective
Date”: as defined in Section 10 of the First Amendment,
which date is December 22, 2003.
“Tranche C Lender
Addendum”: a Tranche C Lender Addendum, substantially in the
form of Exhibit A to the First Amendment, to be executed
and
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delivered
by such Lender on the First Amendment Effective Date as provided in
Section 8 of the First Amendment.
“Tranche C Term Loan”: as
defined in Section 2.1.
“Tranche C Term Loan
Commitment”: as to any Lender, the obligation of such Lender,
if any, to make a Tranche C Term Loan to the Borrower hereunder on
the First Amendment Effective Date in a principal amount not to
exceed the amount set forth under the heading “Tranche C Term
Loan Commitment” opposite such Lender’s name on
Schedule 1 to the Tranche C Lender Addendum delivered by such
Lender, or, as the case may be, in the Assignment and Acceptance
pursuant to which such Lender became a party hereto. The original
aggregate amount of the Tranche C Term Loan Commitments is
$297,000,000.
“Tranche C Term Loan
Lender”: each Lender that has a Tranche C Term Loan
Commitment or that holds a Tranche C Term Loan.
“Tranche C Term Loan
Percentage”: as to any Tranche C Term Lender at any time, the
percentage which such Lender’s Tranche C Term Loan Commitment
then constitutes of the aggregate Tranche C Term Loan Commitments
(or, at any time after the First Amendment Effective Date, the
percentage which the aggregate principal amount of such
Lender’s Tranche C Term Loans then outstanding constitutes of
the aggregate principal amount of the Tranche C Term Loans then
outstanding).
SECTION 3. Amendment to
Section 2.1. Section 2.1 of the Credit Agreement is
hereby amended by (a) deleting the word “and” at
the end of clause (a) in the first sentence thereof and
substituting “,” in lieu thereof and (b) adding
the following language immediately after clause
(b) thereof:
and
(c) the Tranche C Term Lenders severally agree to make term
loans (each, a “Tranche C Term Loan”) to the Borrower
on the First Amendment Effective Date in an amount for each Tranche
C Term Loan Lender not to exceed the Tranche C Term Loan Commitment
of such Lender.
SECTION 4. Amendments to
Section 2.3. Section 2.3 of the Credit Agreement is
hereby amended by adding a new paragraph (c), as follows:
(c) The Tranche C Term Loan of each
Tranche C Term Loan Lender shall mature in 23 consecutive quarterly
installments, commencing on December 31, 2004, each of which
shall be in an amount equal to such Lender’s Tranche C Term
Loan Percentage multiplied by the amount set forth below opposite
such installment:
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Installment Date
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Principal Amount
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December 31,
2004
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$ |
750,000 |
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March 31,
2005
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$ |
750,000 |
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June 30,
2005
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$ |
750,000 |
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September 30,
2005
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$ |
750,000 |
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December 31,
2005
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$ |
750,000 |
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March 31,
2006
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$ |
750,000 |
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June 30,
2006
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$ |
750,000 |
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September 30,
2006
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$ |
750,000 |
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December 31,
2006
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$ |
750,000 |
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March 31,
2007
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$ |
750,000 |
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June 30,
2007
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$ |
750,000 |
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September 30,
2007
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$ |
750,000 |
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December 31,
2007
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$ |
750,000 |
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March 31,
2008
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$ |
750,000 |
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June 30,
2008
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$ |
750,000 |
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September 30,
2008
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$ |
750,000 |
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December 31,
2008
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$ |
750,000 |
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March 31,
2009
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$ |
750,000 |
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June 30,
2009
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$ |
750,000 |
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September 30,
2009
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$ |
70,687,500 |
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December 31,
2009
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$ |
70,687,500 |
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March 31,
2010
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$ |
70,687,500 |
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June 30,
2010
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$ |
70,687,500 |
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SECTION 5. Amendments to
Section 2.18. Section 2.18(a) of the Credit Agreement is
hereby amended by replacing the phrase “Tranche B Term Loan
Percentages” therein with the phrase “Tranche C Term
Loan Percentages”.
SECTION 6. Amendment to
Section 4.16. Section 4.16 of the Credit Agreement is
hereby amended by adding immediately at the end thereof the
sentence “The proceeds of the Tranche C Term Loans shall be
used to prepay the Tranche B Term Loans outstanding on the First
Amendment Effective Date.”
SECTION 7. Amendment to
Section 10.6. Section 10.6(c) of the Credit Agreement is
hereby amended by replacing the phrase “Tranche B Term Loan
Facility” therein with the phrase “Tranche C Term Loan
Facility”.
SECTION 8. Joinder. From and after
the First Amendment Effective Date, each Tranche C Term Lender
executing and delivering a Tranche C Lender Addendum in the form of
Exhibit A hereto shall become a party to the Credit Agreement
and have the rights and obligations of a Lender thereunder and
under the other Loan Documents and shall be bound by the other
provisions thereof.
SECTION 9. Notice of Borrowing. The
Borrower shall give the Administrative Agent irrevocable notice
(which notice must
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