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FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

Loan Agreement

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT | Document Parties: INTERNATIONAL COAL GROUP, INC. | BRANCH BANKING AND TRUST COMPANY | CIT Capital USA Inc | ICG, LLC | International Coal Group, Inc | Issuing Banks, UBS Loan Finance LLC | Joint Lead Arrangers and Joint Bookrunners, JPMorgan Chase Bank, NA | JP Morgan Securities Inc | NATIONAL CITY BANK | Styx Associates LLC | UBS AG | UBS Securities LLC | Wachovia Bank, N.A. | JPMorgan Chase Bank, NA | Bank of America, N.A. You are currently viewing:
This Loan Agreement involves

INTERNATIONAL COAL GROUP, INC. | BRANCH BANKING AND TRUST COMPANY | CIT Capital USA Inc | ICG, LLC | International Coal Group, Inc | Issuing Banks, UBS Loan Finance LLC | Joint Lead Arrangers and Joint Bookrunners, JPMorgan Chase Bank, NA | JP Morgan Securities Inc | NATIONAL CITY BANK | Styx Associates LLC | UBS AG | UBS Securities LLC | Wachovia Bank, N.A. | JPMorgan Chase Bank, NA | Bank of America, N.A.

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Title: FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
Governing Law: New York     Date: 9/29/2009
Industry: Coal     Law Firm: Jones Day;Latham Watkins     Sector: Energy

FOURTH AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT, Parties: international coal group  inc. , branch banking and trust company , cit capital usa inc , icg  llc , international coal group  inc , issuing banks  ubs loan finance llc , joint lead arrangers and joint bookrunners  jpmorgan chase bank  na , jp morgan securities inc , national city bank , styx associates llc , ubs ag , ubs securities llc , wachovia bank  n.a. , jpmorgan chase bank  na , bank of america  n.a.
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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

 

 

 

2


 

 

(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):

 

 

 

3


 

 

 

 

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 ”).

 

(a)   Fees and Expenses .

 

(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.

 

 

 

4


 

 

(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


 
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