EXHIBIT 10.1
EXECUTION VERSION
FOURTH AMENDMENT
TO SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
This FOURTH AMENDMENT, dated as of September 28,
2009 (this “ Fourth Amendment ”), is by and
among International Coal Group, Inc., a Delaware corporation
(“ Holdings ”), ICG, LLC, a Delaware limited
liability company and a wholly owned direct subsidiary of Holdings
(“ Borrower ”), UBS AG, Stamford Branch, as
administrative agent (the “ Administrative Agent
”) and the Lenders (as defined below) party hereto, and is
with respect to the Second Amended and Restated Credit Agreement,
dated as of June 23, 2006 (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “
Credit Agreement ”), among Holdings, Borrower, the
Guarantors party thereto, the lenders party thereto (the “
Lenders ”), J.P. Morgan Securities Inc. and UBS
Securities LLC, as Joint Lead Arrangers and Joint Bookrunners,
JPMorgan Chase Bank, N.A. and CIT Capital USA Inc., as
Co-Syndication Agents, Bank of America, N.A. and Wachovia Bank,
N.A., as Co-Documentation Agents, JPMorgan Chase Bank, N.A. and
Bank of America, N.A., as Issuing Banks, UBS Loan Finance LLC, as
Swingline Lender, and UBS AG, Stamford Branch, as Issuing Bank,
Administrative Agent and Collateral Agent, as amended by the First
Amendment, dated as of January 31, 2007, the Second Amendment,
dated as of July 31, 2007 and the Third Amendment and Limited
Waiver, dated as of February 20, 2009. Capitalized terms
used but not defined in this Fourth Amendment have the meanings
given to such terms in the Credit Agreement.
RECITALS
WHEREAS, Borrower wishes to make certain
amendments to the Credit Agreement, as more particularly described
in Article I of this Fourth Amendment; and
WHEREAS, the Lenders party hereto are willing to
grant such waiver and to agree to such amendments on the terms and
subject to the conditions contained herein.
AGREEMENT
NOW, THEREFORE, in consideration of the promises
and the mutual agreements herein contained and for other good and
valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally
bound, agree as follows:
ARTICLE I
AMENDMENTS TO CREDIT
AGREEMENT
Section 1.01
Amendments Related to Defined
Terms . The following defined terms are added to
Section 1.01 of the Credit Agreement in their proper
alphabetical order:
““ Fourth Amendment
” shall mean the Fourth Amendment to this Agreement, dated as
of September 28, 2009.”
““ Fourth Amendment Effective
Date ” shall mean the date on which of each of the
conditions set forth in Article II of the Fourth Amendment
has been either satisfied or waived.”
Section 1.02
Amendments Related to
Financial Covenants .
(a)
Sections 6.10(a)
and (b) of the Credit
Agreement are deleted in their entirety and replaced with the
following:
“(a)
Maximum Leverage Ratio . Permit the Leverage
Ratio, at any date during any period set forth in the table below,
to exceed the ratio set forth opposite such period in the table
below:
|
Period
|
Leverage Ratio
|
|
March 31, 2007
to December 31, 2007
|
8.75 to 1.0
|
|
January 1, 2008
to March 31, 2008
|
8.50 to 1.0
|
|
April 1, 2008
to June 30, 2008
|
7.50 to 1.0
|
|
July 1, 2008 to
September 30, 2008
|
6.25 to 1.0
|
|
October 1, 2008
to December 31, 2008
|
5.50 to 1.0
|
|
January 1, 2009
to March 31, 2009
|
4.50 to 1.0
|
|
April 1, 2009
to June 30, 2009
|
4.25 to 1.0
|
|
July 1, 2009 to
September 30, 2009
|
3.75 to 1.0
|
|
October 1, 2009
to December 31, 2009
|
3.25 to 1.0
|
|
January 1, 2010
and thereafter
|
3.00 to 1.0
|
(b)
Minimum Interest Coverage Ratio . Permit the
Consolidated Interest Coverage Ratio, at the last day of any period
set forth in the table below, to exceed the ratio set forth
opposite such period in the table below:
|
Period
|
Interest Coverage
Ratio
|
|
March 31, 2007
to June 30, 2008
|
1.25 to 1.0
|
|
July 1, 2008 to
September 30, 2008
|
1.75 to 1.0
|
|
October 1, 2008
to December 31, 2008
|
2.00 to 1.0
|
|
January 1, 2009
to March 31, 2009
|
2.00 to 1.0
|
|
April 1, 2009
to June 30, 2009
|
2.00 to 1.0
|
|
July 1, 2009 to
September 30, 2009
|
2.25 to 1.0
|
|
October 1, 2009
to December 31, 2009
|
2.75 to 1.0
|
|
January 1, 2010
and thereafter
|
2.75 to 1.0
|
(b)
The table and the proviso following
the table in Section 6.10(d) of the Credit Agreement are
deleted in their entirety and replaced with the
following:
|
Period
|
Amount (in
millions)
|
|
January 1, 2007
to December 31, 2007
|
$180.0
|
|
January 1, 2008
to December 31, 2008
|
$180.0
|
|
January 1, 2009
to December 31, 2009
|
$100.0
|
|
January 1, 2010
to December 31, 2010
|
$100.0
|
|
January 1, 2011
to December 31, 2011
|
$100.0
|
; provided,
however , that, with respect to fiscal year 2009, the aggregate
amount of Capital Expenditures made in each of the following fiscal
periods in such fiscal year shall not exceed (i) $32.5 million in
the fiscal quarter ending on March 31, 2009, (ii) without
duplication, $57.5 million in the aggregate in the two consecutive
fiscal quarters ending on June 30, 2009, (iii) without duplication,
$82.5 million in the aggregate in the three consecutive fiscal
quarters ending on September 30, 2009 and (iv) without duplication,
$100.0 million in the aggregate in such fiscal year;
provided , further , however , that
(x) if the aggregate amount of Capital Expenditures made in
any fiscal year shall be less than the maximum amount of Capital
Expenditures permitted under this Section 6.10(d) for
such fiscal year (before giving effect to any carryover), then an
amount of such shortfall not exceeding 50% of such maximum amount
(without giving effect to clause (z) below) may be added to
the amount of Capital Expenditures permitted under this
Section 6.10(d) for the immediately succeeding (but not
any other) fiscal year, (y) in determining whether any amount
is available for carryover, the amount expended in any fiscal year
shall first be deemed to be from the amount allocated to such
fiscal year (in respect of any carryover from a prior year) and
(z) the amount set forth in the table above for any period may
be increased by an amount equal to (1) 50% of (2) the
amount of (I) any Indebtedness incurred under Section
6.01(n) and/or Section 6.01(o) which a Responsible
Officer of the Borrower has certified to the Administrative Agent
will be used prior to the Revolving Maturity Date to finance
Capital Expenditures and (II) any Equity Interests issued under
Section 6.13 which a Responsible Officer of the Borrower has
certified to the Administrative Agent will be used prior to the
Revolving Maturity Date to finance Capital Expenditures, so long as
the aggregate increase in Capital Expenditures permitted by this
proviso since the First Amendment Effective Date does not exceed
$250.0 million.”
(c)
Section 6.10(e)
of the Credit Agreement is deleted
in its entirety and replaced with the following:
“(e)
Minimum Liquidity . Permit the aggregate amount
of the Loan Parties’ and their Subsidiaries’ Minimum
Liquidity, at the last day of each calendar month in any period set
forth in the table below, to be less than the amount set forth
opposite such period in the table below or fail to deliver a
Minimum Liquidity Certificate as required pursuant to Section
5.01(j) :
|
Period
|
Amount (in
millions)
|
|
Third Amendment
Effective Date to March 31, 2009
|
$25.0
|
|
April 1, 2009
to April 30, 2009
|
$20.0
|
|
May 1, 2009 to
May 31, 2009
|
$22.5
|
|
June 1, 2009 to
June 30, 2009
|
$30.0
|
|
July 1, 2009 to
July 31, 2009
|
$22.5
|
|
August 1, 2009
to August 31, 2009
|
$27.5
|
|
September 1,
2009 to October 31, 2009
|
$35.0
|
|
November 1,
2009 to December 31, 2009
|
$40.0
|
|
January 1, 2010
to January 31, 2010
|
$40.0
|
|
February 1,
2010 to February 28, 2010
|
$40.0
|
|
March 1, 2010
to March 31, 2010
|
$40.0
|
|
April 1, 2010
to April 30, 2010
|
$40.0
|
|
May 1, 2010 to
May 31, 2010
|
$40.0
|
|
June 1, 2010 to
June 30, 2010
|
$40.0
|
|
July 1, 2010 to
July 31, 2010
|
$40.0
|
|
August 1, 2010
to August 31, 2010
|
$40.0
|
|
September 1,
2010 to September 30, 2009
|
$40.0
|
|
October 1, 2010
to October 31, 2010
|
$40.0
|
|
November 1,
2010 to November 30, 2010
|
$40.0
|
|
December 1,
2010 to December 31, 2010
|
$40.0
|
Section 1.03
Amendments Related to
Applicable Margins . The
table entitled “ Applicable Margin for Revolving Loans,
Swingline Loans and LC Participation Fee ” (including the
footnotes thereto) in Annex I of the Credit Agreement is deleted in
its entirety and replaced with the following (including the
footnotes thereto):
|
|
|
Revolving Loans and Swingline
Loans
(and LC Participation
Fee)
|
|
Leverage Ratio *
|
|
Eurodollar
|
|
ABR
|
|
Level I
≥3.75:1.0
|
|
4.50%
|
|
3.50%
|
|
Level II
<3.75:1.0 but
≥2.50:1.0
|
|
4.25%
|
|
3.25%
|
|
Level III
<2.50:1.0 but
>2.00:1.0
|
|
4.00%
|
|
3.00%
|
|
Level IV
< 2.00:1.0
|
|
3.75%
|
|
2.75%
|
|
*
|
Note: Neither (i) cash charges
reducing Consolidated Net Income incurred (directly, or otherwise)
in connection with the Sago Mine Incident and the Viper Mine
Incident nor (ii) extraordinary, non-recurring cash charges for any
twelve-month period following the twelve-month period in which the
Sago Mine Incident and/or the Viper Mine Incident occurred are
added to Consolidated EBITDA for the purposes of calculating the
Leverage Ratio to determine the Applicable Margin and the
Commitment Fee pursuant to this Annex I .
|
ARTICLE II.
CONDITIONS TO
EFFECTIVENESS
Section 2.01
Conditions to
Amendments . The effectiveness of the
amendments contained in Article I of this Fourth Amendment
is conditioned upon satisfaction of the following conditions
precedent (the date on which all such conditions precedent have
been satisfied being referred to herein as the “ Fourth
Amendment Effective Date ”).
(i)
The Arrangers and the Administrative
Agent shall have received all Fees and other amounts due and
payable on or prior to the Fourth Amendment Effective Date,
including, to the extent invoiced, reimbursement or payment of all
reasonable out-of-pocket expenses (including the reasonable legal
fees and expenses of Latham & Watkins LLP, special counsel to
the Agents, and the reasonable fees and expenses of any local
counsel, appraisers, consultants and other advisors) required to be
reimbursed or paid by Borrower hereunder or under any other Loan
Document.
(ii)
The Administrative Agent shall have
received, for the benefit of each Lender whose signature page to
this Fourth Amendment has been received no later than the date on
which each of the other conditions in this Section 2.01 are
satisfied, a fee equal to 0.50% of the aggregate Revolving
Commitments, as of the Fourth Amendment Effective Date, of such
Lender, which such fee shall be allocated pro rata among such
consenting Lenders.
(b)
Loan Documents
. All legal matters
incident to this Fourth Amendment and the transactions contemplated
hereby and t
|