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SIXTH AMENDMENT TO CREDIT AGREEMENT

Loan Agreement

SIXTH AMENDMENT TO CREDIT AGREEMENT | Document Parties: Bank of Nova Scotia | Georgia Gulf Corporation | Royal Group Technologies Limited | Royal Group, Inc You are currently viewing:
This Loan Agreement involves

Bank of Nova Scotia | Georgia Gulf Corporation | Royal Group Technologies Limited | Royal Group, Inc

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Title: SIXTH AMENDMENT TO CREDIT AGREEMENT
Governing Law: New York     Date: 8/10/2009
Industry: Chemicals - Plastics and Rubber     Sector: Basic Materials

SIXTH AMENDMENT TO CREDIT AGREEMENT, Parties: bank of nova scotia , georgia gulf corporation , royal group technologies limited , royal group  inc
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Exhibit 10.1

 

SIXTH AMENDMENT TO CREDIT AGREEMENT

 

THIS SIXTH AMENDMENT TO CREDIT AGREEMENT dated as of April 14, 2009 (the “ Amendment ”) is entered into among Georgia Gulf Corporation, a Delaware corporation (“ GGC ”), Royal Group, Inc. (formerly known as Royal Group Technologies Limited), a Canadian federal corporation (the “ Canadian Borrower ”; together with GGC, the “ Borrowers ”), the Guarantors, the Lenders party hereto, Bank of America, National Association, as Domestic Administrative Agent and Bank of America, National Association acting through its Canada branch, as Canadian Administrative Agent.  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Borrowers, the Guarantors, the Lenders, Bank of America, National Association, as Domestic Administrative Agent, Domestic Collateral Agent and Domestic L/C Issuer, Bank of America, National Association acting through its Canada branch, as Canadian Administrative Agent, Canadian Collateral Agent and Canadian L/C Issuer and The Bank of Nova Scotia, as Canadian Swing Line Lender entered into that certain Credit Agreement dated as of October 3, 2006 (as amended from time to time, the “ Credit Agreement ”); and

 

WHEREAS, GGC has requested that the Lenders amend the Credit Agreement as set forth below;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1.               Amendments .

 

(a)           The first sentence of Section 6.07 of the Credit Agreement is hereby amended by inserting “; provided that the failure, if any, of GGC or any Subsidiary to make the interest payments due on April 15, 2009 under the 2006 Senior Notes and the 2006 Senior Subordinated Notes shall not render inaccurate the foregoing representation unless any portion of such amounts remains unpaid as of 5:00 p.m. on May 11, 2009” at the end thereof.

 

(b)           Section 7.04 of the Credit Agreement is hereby amended by inserting “; provided that the failure, if any, of any Loan Party to make the interest payments due on April 15, 2009 under the 2006 Senior Notes and the 2006 Senior Subordinated Notes shall not constitute a breach of this covenant unless any portion of such amounts remains unpaid as of 5:00 p.m. on May 11, 2009” at the end thereof.

 

(c)           Section 9.01(f)(i)(A) of the Credit Agreement is hereby amended by inserting “(or, in the case of the interest payments due on April 15, 2009 under the 2006 Senior Notes and the 2006 Senior Subordinated Notes, prior to 5:00 p.m. on May 11, 2009)” immediately following the word “due” in the first line thereof.  For avoidance of doubt, it is understood and agreed that the failure to have made any such payment prior to 5:00 p.m. on May 11, 2009 does not constitute a Default.

 

Section 2.               Conditions Precedent .  This Amendment shall be effective upon satisfaction of the following conditions precedent (the date on which such conditions have been satisfied, the “ Amendment Effective Date ”):

 



 

(a)           Receipt by the Domestic Administrative Agent of counterparts of this Amendment duly executed by the Borrowers, the Guarantors set forth on the signature pages hereto, the Required Lenders, the Required Domestic Revolving Lenders, the Required Canadian Revolving Lenders and Bank of America, N.A., as Administrative Agent;

 

(b)           Receipt by the Domestic Administrative Agent (i) for the account of (x) each Lender that has the right under the Credit Agreement to approve this Amendment and that has executed this Amendment on or prior to 9:00 p.m., New York City time, on April 14, 2009 and (y) each other Lender that has the right under the Credit Agreement to approve this Amendment and that has not been given the opportunity to access this Amendment and consent thereto (each of the Lenders described in the foregoing clauses (x) and (y) a “ Consenting Lender ”), a fee equal to 0.125% of the aggregate amount of each such Consenting Lender’s (A) Canadian Revolving Commitment, (B) Canadian Swing Line Commitment, (C) Domestic Revolving Commitment and (D) portion of the Term Loan outstanding and (ii) any fees and expenses of the Administrative Agents (including reasonable attorneys’ fees of the Administrative Agents) in connection with the Loan Documents;

 

(c)           Receipt by BAS of all fees, expenses and other amounts that have become due and payable to BAS, in its capacity as arranger of the Amendment, on or prior to the Amendment Effective Date pursuant to that certain letter agreement dated as of April 10, 2009 between GGC and BAS; and

 

(d)           Receipt by any Administrative Agent of such other documents, instruments, agreements and information as reasonably requested by such Administrative Agent.

 

Section 3.               Release .

 

(a)           Each Loan Party and its respective successors, assigns and legal representatives (collectively, the “ Releasors ”), releases, acquits and forever discharges each Administrative Agent and each Lender (collectively, the “ Lender Parties ”), and their respective subsidiaries, parents, affiliates, officers, directors, employees, agents, attorneys, advisors, successors and assigns, both present and former (collectively, the “ Lender Party Affiliates ”), from any and all manner of losses, costs, defenses, damages, liabilities, deficiencies, actions, causes of action, suits, debts, controversies, damages, judgments, executions, claims, demands and out-of-pocket expenses whatsoever, asserted or unasserted, known or unknown, foreseen or unforeseen, in contract, tort, law or equity (generically, “ Claims ”), that any Releasor has or may have against any of the Lender Parties and/or the Lender Party Affiliates by reason of any action, failure to act, event, statement, accusation, assertion, matter or thing whatsoever arising from or based on facts occurring prior to the Amendment Effective Date that arises out of or is connected to the Loan Documents, the Loans and the Letters of Credit, including but not limited to any Claims or defense that relates to, in whole or in part, directly or indirectly:  (i) the Credit Agreement or any other Loan Document or the transactions contemplated thereby; (ii) the making of any Loans or issuance of Letters of Credit under the Loan Documents; (iii) any actual or proposed use by the Loan Parties of the proceeds of the Loans or Letters of Credit; (iv) any actions or omissions of any Lender Party or Lender Party Affiliate in connection with the initiation or continuing exercise of any right or remedy contained in the Loan Documents at law or in equity; (v) the making or administration of the Loans, including without limitation, any such claims and defenses based on fraud, mistake, duress, usury or misrepresentation, or any other claim based on so-called “lender liability theories”; (vi) any covenants, agreements, duties or obligations set forth in the Loan Documents; (vii) lost profits, (viii) loss of business opportunity, (ix) increased financing costs, (x) increased legal or other administrative fees or (xi) damages to business reputation.

 

2



 

(b)           Each Loan Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby unconditionally and irrevocably agrees that it will not sue any Lender Party or Lender Party Affiliate on the basis of any Claim released, remised and discharged by such Loan Party pursuant to this Section 3.  If any Loan Party or any of their respective successors, assigns or other legal representatives violates the foregoing covenant, each Loan Party, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Lender Party or Lender Party Affiliate may sustain as a result of such violation, all reasonable and documented attorneys’ fees and costs incurred by any Lender Party or Lender Party Affiliate as a result of such violation.

 

Section 4.               Miscellaneous .

 

(a)           The Credit Agreement, and the obligations of the Loan Parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.

 

(b)           Each Guarantor (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the Loan Documents.

 

(c)           The Borrowers and the Guarantors hereby represent and warrant as follows:

 

(i)            Each Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

 

(ii)           This Amendment has been duly executed and delivered by the Loan Parties and constitutes each of the Loan Parties’ legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be limited by Debtor Relief Laws and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(iii)          No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by any Loan Party of this Amendment.

 

(d)           The Loan Parties represent and warrant to the Lenders that after giving effect to this Amendment (i) the representations and warranties of the Loan Parties set forth in Article VI of the Credit Agreement and in each other Loan Document are true and correct in all material respects as of the date hereof and will be true and correct in all material respects as of the Amendment Effective Date with the same effect as if made on and as of such dates, except to the extent such representations and warranties expressly relate solely to an earlier date and (ii) no event has occurred and is continuing which constitutes a Default or an Event of Default.

 

(e)           Each Loan Party hereby ratifies and confirms the security interest in and to all Collateral granted to the Collateral Agent pursuant to the Collateral Documents and the perfected, first priority status of such security interest as set forth therein (subject only to liens which are permitted by the terms of the Loan Documents to be prior to the Lien of the Collateral Agent).

 

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(f)            In the event that the Amendment Effective Date occurs during the period beginning on April 15, 2009 through and including May 11, 2009, the Lenders hereby waive, solely during the period beginning on April 15, 2009 through and including the Amendment Effective Date, any Event of Default under Section 9.01(f) of the Credit Agreement arising from the Company’s failure to pay the interest payments due on April 15, 2009 on the 2006 Senior Notes and the 2006 Senior Subordinated Notes.  The waiver granted pursuant to this Section 4(f) shall be limited precisely as written, and shall not extend to any Default or Event of Default under any other provision of the Credit Agreement.

 

(g)           This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by telecopy shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

 

(h)           THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

[remainder of page intentionally left blank]

 

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Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

 

BORROWERS:

GEORGIA GULF CORPORATION ,

 

a Delaware corporation, as a Borrower and, with respect to the Canadian Obligations, as a Guarantor

 

 

 

 

 

By:

/s/ Gregory Thompson

 

Name: Gregory Thompson

 

Title: Chief Financial Officer

 

 

 

ROYAL GROUP, INC. (formerly known as ROYAL GROUP TECHNOLOGIES LIMITED) , a Canadian federal corporation, as a Borrower

 

 

 

By:

/s/ Gregory Thompson

 

Name: Gregory Thompson

 

Title: Chief Financial Officer

 



 

DOMESTIC GUARANTORS:

GEORGIA GULF CHEMICALS & VINYLS, LLC , a Delaware limited liability company

 

 

 

By:

/s/ Gregory Thompson

 

 

Name:  Gregory Thompson

 

 

Title:  Vice President

 

 

 

 

 

GEORGIA GULF LAKE CHARLES, LLC , a Delaware limited liability company

 

 

 

By:

/s/ Gregory Thompson

 

 

Name:  Gregory Thompson

 

 

Title:  Vice President

 

 

 

 

 

GREAT RIVER OIL & GAS CORPORATION , a Delaware corporation

 

 

 

By:

/s/ Gregory Thompson

 

 

Name:  Gregory Thompson

 

 

Title:  Vice President

 

 

 

 

 

ROME DELAWARE CORP. , a Delaware corporation

 

 

 

By:

/s/ Gregory Thompson

 

 

Name:  Gregory Thompson

 

 

Title:  Vice President

 

 

 

 

 

ROYAL PLASTICS GROUP (U.S.A.) LIMITED , a Delaware corporation

 

 

 

By:

/s/ Gregory Thompson

 

 

Name:  Gregory Thompson

 

 

Title:  Vice President

 

 

 

 

 

PLASTIC TRENDS, INC. , a Michigan corporation

 

 

 

 

 

By:

/s/ Gregory Thompson

 

 

Name:  Gregory Thompson

 

 

Title:  Vice President

 



 
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