Exhibit 10.1
THIRD AMENDMENT TO CREDIT
AGREEMENT
THIS THIRD
AMENDMENT TO CREDIT AGREEMENT (this “ Amendment ”), dated
as of April 24, 2009, is by and among CENVEO
CORPORATION, a Delaware corporation (the “
Borrower ”), CENVEO, INC., a Colorado
corporation (“ Holdings ”), the
financial institutions listed on the signature pages of this
Amendment as “Lenders” (the “ Lenders
”), and BANK OF AMERICA, N.A. , as administrative
agent on behalf of the Lenders under the Credit Agreement (as
hereinafter defined) (in such capacity, the “
Administrative Agent ”), Swing Line Lender and L/C
Issuer (as such terms are defined in the Credit
Agreement).
W I T N E S S E T
H
WHEREAS , the Borrower, Holdings, the Lenders and the
Administrative Agent are parties to that certain Credit Agreement
dated as of June 21, 2006, as amended by the First Amendment to
Credit Agreement, dated as of March 7, 2007, and the Second
Amendment to Credit Agreement, dated as of August 27, 2007 (as so
amended and as further amended, modified, extended, restated,
replaced, or supplemented from time to time to but excluding the
date hereof, the “ Existing Credit Agreement
”);
WHEREAS , the Borrower has requested that the Required
Lenders amend certain provisions of the Credit Agreement;
and
WHEREAS , the Required Lenders are willing to make such
amendments to the Credit Agreement, subject to the terms and
conditions set forth herein.
NOW,
THEREFORE , in
consideration of the agreements hereinafter set forth, and for
other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as
follows:
ARTICLE I
DEFINITIONS
1.1 Capitalized
terms used herein and not otherwise defined herein shall have the
meanings ascribed thereto in the Existing Credit Agreement as
amended hereby (as so amended and as otherwise amended, modified,
extended, restated, replaced, or supplemented from time to time,
the “ Credit Agreement ”).
ARTICLE II
AMENDMENTS TO CREDIT
AGREEMENT
2.1
Amendments to Credit Agreement . Subject
to the satisfaction of the conditions precedent set forth in
Section 4.1 below, from and after the Third Amendment
Effective Date (as hereinafter defined), the Existing Credit
Agreement is hereby amended as follows:
(a) The definition of
“ Acquisition Debt ” contained in Section 1.01
of the Existing Credit Agreement is amended by inserting the phrase
“or Section 7.02(m) ” immediately after the
reference to “ Section 7.02(j) ”.
(b) The definition of
“ Applicable Commitment Fee Percentage ”
contained in Section 1.01 of the Existing Credit Agreement is
amended and restated in its entirety to read as follows:
“ Applicable Commitment Fee
Percentage ” means, at any time, in respect of the
Revolving Credit Facility, (a) from the Closing Date to the Third
Amendment Effective Date, the rate per annum determined in
accordance with the definition of “Applicable Commitment Fee
Percentage” set forth in this Section 1.01 prior to the
effectiveness of the Third Amendment and (b) thereafter, 0.75% per
annum.
(c) The last sentence of the
definition of “ Applicable Percentage ”
contained in Section 1.01 of the Existing Credit Agreement is
amended by deleting the phrase “set forth opposite the name
of such Lender on Schedule 2.01 or in the Assignment and
Assumption or Credit Agreement Supplement pursuant to which such
Lender becomes a party hereto” in its entirety and
substituting therefor the new phrase “set forth opposite the
name of such Lender on Schedule 2.01 or in the Assignment
and Assumption, Credit Agreement Supplement or Accession and
Amendment Agreement pursuant to which such Lender becomes a party
hereto”.
(d) The definition of
“ Applicable Rate ” contained in Section 1.01 of
the Existing Credit Agreement is amended and restated in its
entirety to read as follows:
“ Applicable Rate
” means, in respect of each Facility, (a) from the Closing
Date to the Third Amendment Effective Date, the rate per annum
determined in accordance with the definition of “Applicable
Rate” set forth in this Section 1.01 prior to the
effectiveness of the Third Amendment and (b) thereafter, the
applicable percentage per annum set forth below determined by
reference to the Consolidated Leverage Ratio as set forth in the
most recent Compliance Certificate received by the Administrative
Agent pursuant to Section 6.02(b) :
|
Applicable Rate
|
|
Pricing Level
|
Consolidated Leverage
Ratio
|
Eurodollar Rate
(Letters of Credit)
|
Base Rate
|
|
1
|
≥ 4.00:1
|
4.50%
|
3.50%
|
|
2
|
< 4.00:1
|
4.00%
|
3.00%
|
Any increase or
decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first
Business Day immediately following the date a Compliance
Certificate is delivered pursuant to Section 6.02(b) ;
provided , however , that if a Compliance Certificate
is not delivered when due in accordance with such Section, then
Pricing Level 1 shall apply as of the first Business Day after
the date on which such Compliance Certificate was required to have
been delivered ( provided , that on the first Business Day
immediately following the date on which such Compliance Certificate
is delivered to the Administrative Agent, any such increase or
decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective).
(e) The definition of
“ Base Rate ” contained in Section 1.01 of the
Existing Credit Agreement is amended and restated in its entirety
as follows:
“ Base Rate ” means, for any
day, a fluctuating rate per annum equal to the highest of (a) the
Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest
in effect for such day as publicly announced from time to time by
Bank of America as its “prime rate,” and (c) the
Eurodollar Rate for an Interest Period of one month plus
1.00%. The “prime rate” is a rate set by
Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic
conditions and other factors, and is used as a reference point for
pricing some loans, which may be priced at, above, or below such
announced rate. Any change in the Base Rate due to a
change in the “prime rate” or the Federal Funds Rate
shall take effect at the opening of business on the day specified
in the public announcement of such change. For the
purposes of subsection (c) above, the Eurodollar Rate shall be
determined daily and any change in the Eurodollar Rate shall take
effect on the day of such change.
(f) Subsection (c)(i)
of the definition of “ Consolidated Adjusted EBITDA
” contained in Section 1.01 of the Existing Credit Agreement
is amended by deleting the phrase “cash restructuring,
integration, impairment and related fees, expenses and charges in
an aggregate amount of up to $20,000,000 incurred during the fiscal
year ending December 31, 2007” in its entirety and
substituting therefor the new phrase “cash restructuring,
integration, impairment and related fees, expenses and charges in
an aggregate amount of up to (A) $20,000,000 incurred during the
fiscal year ending December 31, 2007, (B) $25,000,000 incurred
during the fiscal year ending December 31, 2009 and (C) $25,000,000
incurred during the fiscal year ending December
31, 2010 (
provided , for the avoidance of doubt, that any of the
foregoing amounts not incurred during the fiscal year specified in
clauses (A) – (C) may not be carried over in any succeeding
fiscal year)”.
(g) The definition of
“ Defaulting Lender ” in Section 1.01 of the
Existing Credit Agreement is amended and restated in its entirety
as follows:
“ Defaulting Lender ” means
any Lender (i) that has failed to fund any portion of the Loans
required to be funded by it hereunder (each such Loan, a “
Defaulted Loan ”) within three Business Days of the
date required to be funded by it hereunder, (ii) that has otherwise
failed to pay over to the Administrative Agent, the Swing Line
Lender, the L/C Issuer or any other Lender any other amount
required to be paid by it hereunder (each such payment, a “
Defaulted Payment ”) within three Business Days of the
date when due, unless the subject of a good faith dispute, or (iii)
as to which a Distress Event has occurred, in each case in clauses
(i) and (ii) above, for so long as the applicable Default Period is
in effect.
(h) The first sentence
of the definition of “ Eurodollar Rate ” in
Section 1.01 of the Existing Credit Agreement is hereby amended and
restated in its entirety as follows:
“
Eurodollar Rate ” means, for any Interest Period with
respect to a Eurodollar Rate Loan, the rate per annum equal to the
British Bankers Association LIBOR Rate (“ BBA LIBOR
”), as published by Reuters (or other commercially available
source providing quotations of BBA LIBOR as designated by the
Administrative Agent from time to time) at approximately 11:00
a.m., London time, two Business Days prior to the commencement of
such Interest Period, for Dollar deposits (for delivery on the
first day of such Interest Period) with a term equivalent to (i)
such Interest Period or (ii) three (3) months, whichever results in
the higher Eurodollar Rate.
(i) The definition of
“ Interest Period ” in Section 1.01 of the
Existing Credit Agreement is hereby amended by deleting in its
entirety the phrase “ending on the date one, two, three or
six months thereafter” and substituting therefor the new
phrase “ending on the date one, two or three months
thereafter”.
(j) Subsection (b) in
the definition of “ Net Cash Proceeds ”
contained in Section 1.01 of the Existing Credit Agreement is
amended by deleting the phrase “the incurrence or issuance of
any Indebtedness” in its entirety and substituting therefor
the new phrase “the issuance of any Equity Interests or the
incurrence or issuance of any Indebtedness, in each
case”.
(k) The definition of
“ Revolving Credit Commitment ” contained in
Section 1.01 of the Existing Credit Agreement is amended by
deleting the phrase “in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto” in its
entirety and
substituting
therefor the new phrase “in the Assignment and Assumption or
the Accession and Amendment Agreement pursuant to which such Lender
becomes a party hereto”.
(l) The following new
definitions are added to Section 1.01 of the Existing Credit
Agreement in the appropriate alphabetical order:
“ Accession and Amendment Agreement
” means an Accession and Amendment Agreement entered into by
a New Lender, the Administrative Agent and the Borrower, in
substantially the form of Exhibit M .
“ Default Amount ” means,
with respect to any Revolving Credit Lender that is a Defaulting
Lender, the aggregate Outstanding Amount of the Defaulted Loans (if
any) of such Defaulting Lender.
“ Default Period ” means,
with respect to any Defaulting Lender (in the case of clauses (i),
(ii) and (iii) below) or any Impacted Lender (in the case of clause
(iv) below),
(i) in
the case of any Defaulted Loan, the period commencing on the date
the applicable Defaulted Loan was required to be extended to the
Borrower under this Agreement and ending on the earlier to occur of
the following: (x) the date on which (A) the Default Amount with
respect to such Defaulting Lender has been reduced to zero and (B)
such Defaulting Lender shall have delivered to the Borrower and the
Administrative Agent a written reaffirmation (in form and substance
satisfactory to the Borrower and the Administrative Agent) of its
intention to honor all of its obligations as a Lender under this
Agreement and the other Loan Documents (including, without
limitation, its obligations hereunder with respect to its
Commitment); and (y) the date on which the Borrower (so long as no
Event of Default has occurred and is continuing), the
Administrative Agent and the Required Lenders (and not including
such Defaulting Lender in any such determination) agree (in their
sole and absolute discretion) in writing to suspend or terminate
the Default Period with respect to the Defaulted Loans such
Defaulting Lender ( provided , that any such suspension
shall be in effect only for such period as may be agreed by such
Persons, and the Default Period with respect to the Defaulted Loans
of such Defaulting Lender shall resume immediately following the
end of such period);
(ii) in
the case of any Defaulted Payment, the period commencing on the
date the applicable Defaulted Payment was required to have been
paid to the Administrative Agent, the Swing Line Lender, the L/C
Issuer or any other Lender under this Agreement and ending on the
earlier to occur of the following: (x) the date on which (A) such
Defaulted Payment has been paid (whether by the funding of such
Defaulted Payment by such Defaulting Lender or by the application
of any amount pursuant to Section
11.23(a)) to
the Administrative Agent, the Swing Line Lender, the L/C Issuer or
such other Lender (or, to the extent that the Borrower was required
to pay such Defaulted Payment to any such Person pursuant to the
terms of this Agreement, to the Borrower), as applicable, together
with interest thereon for each day from and including
the date such Defaulted Payment was required to have been paid by
such Defaulting Lender to but excluding the date of payment
thereof, at the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with its
then-applicable policies regarding interbank compensation and (B)
such Defaulting Lender shall have delivered to the Borrower and the
Administrative Agent a written reaffirmation (in form and substance
satisfactory to the Borrower and the Administrative Agent) of its
intention to honor all of its obligations as a Lender under this
Agreement and the other Loan Documents (including, without
limitation, its obligations hereunder with respect to such
payments; and (y) the date on which the Borrower (so long as no
Event of Default has occurred and is continuing), the
Administrative Agent, the Swing Line Lender, the L/C Issuer and any
such other Lender agree (in their sole and absolute discretion) in
writing to suspend or terminate the Default Period with respect to
the Defaulted Payments of such Defaulting Lender ( provided
, that any such suspension shall be in effect only for such period
as may be agreed by such Persons, and the Default Period with
respect to the Defaulted Payments of such Defaulting Lender shall
resume immediately following the end of such period);
(iii) in the
case of any Distress Event determined by the Administrative Agent
(in its good faith judgment) or the Required Lenders (in their
respective good faith judgment) to exist with respect to such
Defaulting Lender (it being understood and agreed that the
Administrative Agent shall make such determination promptly after
being requested to do so by the Borrower or any Lender), the period
commencing on the date that the applicable Distress Event was so
determined to exist and ending on the earlier to occur of the
following: (x) the date on which (A) such Distress Event is
determined by the Administrative Agent (in its good faith judgment)
or the Required Lenders (in their respective good faith judgment)
to no longer exist and (B) such Defaulting Lender shall have
delivered to the Borrower and the Administrative Agent a written
reaffirmation (in form and substance satisfactory to the Borrower
and the Administrative Agent) of its intention to honor all of its
obligations as a Lender under this Agreement and the other Loan
Documents (including, without limitation, its obligations hereunder
with respect to its Commitment); and (y) such date as the Borrower
(so long as no Event of Default has occurred and is continuing),
the Administrative Agent, the Swing Line Lender and the L/C Issuer
agree (in their sole and absolute discretion) in
writing to suspend or terminate the Default Period
with
respect to the
Distress Event applicable to such Defaulting Lender (
provided , that any such suspension shall be in effect only
for such period as may be agreed by such Persons, and the Default
Period with respect to the Distress Event applicable to such
Defaulting Lender shall resume immediately following the end of
such period); and
(iv) the period
commencing on the date of the event giving rise to such
Lender’s status as an Impacted Lender (each, an “
Impacted Lender Event ”) and ending on the earlier to
occur of (x) the date on which (A) such Impacted Lender Event is
determined by (1) the Borrower (in its good faith judgment) and (2)
the Administrative Agent (in its good faith judgment) or the
Required Revolving Lenders (in their respective good faith
judgment) to no longer exist and (B) such Impacted Lender shall
have delivered to the Borrower and the Administrative Agent a
written reaffirmation (in form and substance satisfactory to the
Borrower and the Administrative Agent) of its intention to honor
all of its obligations as a Lender under this Agreement and the
other Loan Documents (including, without limitation, its
obligations hereunder with respect to its Commitment), and (y) such
date as the Borrower (so long as no Event of Default has occurred
and is continuing), the Administrative Agent, the Swing Line Lender
and the L/C Issuer agree (in their sole and absolute discretion) in
writing to suspend or terminate the Default Period with respect to
the Impacted Lender Event applicable to such Impacted Lender
(provided, that any such suspension shall be in effect only for
such period as may be agreed by such Persons, and the Default
Period with respect to the Impacted Lender Event applicable to such
Impacted Lender shall resume immediately following the end of such
period).
“ Defaulted Loan ” has the
meaning specified in the definition of “ Defaulting
Lender ”.
“ Defaulted Payment ” has the
meaning specified in the definition of “ Defaulting
Lender ”.
“ Designated Lenders ” means
the collective reference to (a) any Defaulting Lenders and (b) any
Impacted Lenders with respect to which the Borrower has been
required to provide cash collateral or other credit support to the
L/C Issuer or the Swing Line Lender, as the case may be, or
otherwise as a result of which the Borrower cannot obtain a Letter
of Credit or a Swing Line Loan hereunder.
“ Distress Event ” means,
with respect to any Person (each, a “ Distressed
Person ”), (i) a voluntary or involuntary case (or
comparable proceeding) has been commenced with respect to such
Person under any Debtor Relief Law, (ii) a custodian, conservator,
receiver or similar official has been appointed for such Person or
for any substantial part of such Person’s assets, or (iii)
such Person has made a general assignment for the benefit of
creditors or has otherwise been
adjudicated as, or determined by any
Governmental Authority having regulatory authority over such Person
or its assets to be, insolvent or bankrupt; provided , that
a Lender shall not be a Distressed Person solely as the result of
the acquisition or ownership of an equity interest in such Lender
or any Person controlling such Lender or the exercise of control
over a Lender or any Person controlling such Lender by a
Governmental Authority or instrumentality thereof .
“ Distressed Person ” has the
meaning specified in the definition of “ Distress
Event ”.
“ Impacted Lender ” means any
Revolving Credit Lender (a) that has given written notice to the
Borrower, the Administrative Agent, the Swing Line Lender, the L/C
Issuer or any Lender or has otherwise publicly announced that such
Revolving Credit Lender believes it will become, or that fails
following inquiry promptly to provide to the Borrower, the
Administrative Agent, the Swing Line Lender or the L/C Issuer
making such inquiry reasonably satisfactory assurance that such
Revolving Credit Lender will not become, a Defaulting Lender, (b)
as to which the Borrower, the Administrative Agent, the Swing Line
Lender or the L/C Issuer has a good faith belief that such
Revolving Credit Lender has defaulted more than once in fulfilling
its funding obligations (as a lender, letter of credit issuer or
issuer of bank guarantees and including, but not limited to,
funding or paying when due loan requests, swing line
participations, letter of credit participations, pro rata sharing
obligations and expense and indemnification obligations) under any
other syndicated credit facility and such Revolving Credit Lender
shall not have provided assurances satisfactory to the Borrower,
the Administrative Agent, the Swing Line Lender and the L/C Issuer
that despite such defaults such Revolving Credit Lender will not
become a Defaulting Lender hereunder, (c) as to which a Distress
Event has occurred with respect to any Affiliate of such Revolving
Credit Lender that directly or indirectly controls such Revolving
Credit Lender or (d) after the Third Amendment Effective Date, as
to which such Revolving Credit Lender or any Affiliate of such
Revolving Credit Lender that directly or indirectly controls such
Revolving Credit Lender has consummated or entered into a
commitment to consummate a forced (in the good faith judgment of
the Administrative Agent) liquidation, merger, sale of assets or
other transaction resulting, in the good faith judgment of the
Administrative Agent, in a change of ownership or operating control
of such Person supported in whole or in part by guaranties,
assumption of liabilities or other comparable credit support of
(including without limitation the nationalization or assumption of
ownership or operating control by) any Governmental Authority and
the Administrative Agent (in its good faith judgment) or the
Required Lenders (in their respective good faith judgment) believe
that such event increases the risk that such Revolving Credit
Lender could default in performing its obligations hereunder for so
long as the Administrative Agent (in its good faith judgment) or
the Required Lenders (in their respective good faith judgment) so
believe (it being understood and agreed that the Administrative
Agent shall make any
determination under this clause (d) promptly
after being requested to do so by the Borrower or any Lender);
provided , that no Revolving Credit Lender shall be an
Impacted Lender solely as the result of the acquisition or
ownership of an equity interest in such Revolving Credit Lender or
any Person controlling such Revolving Credit Lender or the exercise
of control over such Revolving Credit Lender or any Person
controlling such Revolving Credit Lender by a Governmental
Authority or instrumentality thereof.
“ Increasing Lender ” has the
meaning specified in Section 2.01(d) .
“ Increasing Lender Agreement
” means an Increasing Lender Agreement entered into by an
Increasing Lender, the Administrative Agent and the Borrower, in
substantially the form of Exhibit N .
“ New Lender ” has the
meaning specified in Section 2.01(c) .
“ Pro Forma Adjustment Compliance
Certificate ” means a certificate substantially in the
form of Exhibit O .
“ Third Amendment ” means the
Third Amendment to Credit Agreement, dated as of April 24, 2009, by
and among the Borrower, Holdings, the Lenders party thereto, the
Administrative Agent, the Swing Line Lender and the L/C
Issuer.
“ Third Amendment Effective Date
” means April 24, 2009.
(m) Section 1.03(c)(i)
of the Existing Credit Agreement is amended by deleting the phrase
“under the definitions of “Applicable Rate” and
“Applicable Commitment Fee Percentage”” in its
entirety and substituting therefor the new phrase “under the
definition of “Applicable Rate””.
(n) The last sentence
of Section 1.03(c) of the Existing Credit Agreement is amended and
restated in its entirety to read as follows:
“Pro
Forma Basis” may also include such adjustments for expected
cost savings as forecasted by the Borrower in a reasonable manner
with appropriate supporting documentation and representations by
management, reasonably satisfactory to the Administrative Agent;
provided , that following the Third Amendment Effective
Date, (i) “Pro Forma Basis” shall not include any
expected cost savings arising from (A) any Acquisition of property
by any Loan Party or any of its Subsidiaries from any Affiliate
thereof or (B) any Disposition of any Property by any Loan Party or
any of its Subsidiaries to any Affiliate thereof, and (ii) prior to
taking into account any such expected cost savings in calculating
any financial ratio or financial amount pursuant to this paragraph,
the Borrower shall deliver to the Administrative Agent a Pro Forma
Adjustment Compliance Certificate.
(o) Section 2.01 of
the Existing Credit Agreement is amended by (i) renumbering the
second clause (iii) of Section 2.01(a) as clause (iv) and (ii)
adding the following new subsections (b), (c), (d), (e) and (f) at
the end thereof:
(b) Notwithstanding
anything in Section 11.01 to the contrary, this Agreement
may be amended, pursuant to subsection (c) and/or subsection (d)
below, from time to time following the Third Amendment Effective
Date and during the Availability Period, to increase the Revolving
Credit Commitments, at the discretion of the Borrower, pursuant to
one or more Accession and Amendment Agreements and/or Increasing
Lender Agreements, as applicable, entered into by the Borrower, the
Administrative Agent and each Eligible Assignee that shall agree to
prov