EXHIBIT 10.1
THIRD AMENDMENT TO CREDIT
AGREEMENT
THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this "
Amendment "), dated as of September 30, 2009 is among
DARLING INTERNATIONAL INC., a Delaware corporation (the "
Borrower "), each of the lending institutions which is a
party hereto, and JPMORGAN CHASE BANK, N.A., as administrative
agent (the " Administrative Agent ").
RECITALS:
A. The
Borrower, the Administrative Agent and the lending institutions
party thereto have entered into that certain Credit Agreement dated
as of April 7, 2006 (as amended by that certain First Amendment to
Credit Agreement dated as of May 9, 2006, that certain Letter
Agreement dated as of February 9, 2007, and that certain
Second Amendment to Credit Agreement dated October 8, 2008, the "
Agreement "). The Borrower, the Administrative
Agent and the lenders party hereto now desire to amend the
Agreement as herein set forth.
B. Immediately
prior to the effectiveness of this Amendment, Keybank National
Association assigned all of its right, title and interest as a
Lender under the Loan Documents to JPMorgan Chase Bank,
N.A.
NOW, THEREFORE, in consideration of the premises
herein contained and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows effective as of the date hereof
unless otherwise indicated:
ARTICLE 1.
Definitions
Section 1.1. Definitions . Capitalized terms used in this
Amendment, to the extent not otherwise defined herein, shall have
the same meanings as in the Agreement, as amended
hereby.
ARTICLE 2.
Amendments
Section 2.1. Amendment to Section 1.01
. The following
definitions contained in Section 1.01 of the Agreement are
amended in their respective entireties to read as
follows:
" Adjusted LIBO Rate " means, with
respect to any Eurodollar Borrowing for any Interest Period or with
respect to the determination of the Alternate Base Rate, an
interest rate per annum (rounded upwards, if necessary, to the next
1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period or, with respect to the determination of the Alternative
Base Rate, for a one month interest period multiplied by
(b) the Statutory Reserve Rate.
" Alternate Base Rate " means, for any
day, a rate per annum equal to the greatest of (a) the Prime Rate
in effect on such day, (b) the Federal Funds Effective Rate in
effect on such day plus ½ of 1% and (c) the Adjusted LIBO
Rate for a one month interest period on such day (or if such day is
not a Business Day, the immediately preceding Business Day) plus
1%. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Federal Funds Effective Rate or the
Adjusted LIBO Rate shall be effective from and including the
effective date of such change in the Prime Rate, the Federal Funds
Effective Rate or the Adjusted LIBO Rate, respectively.
THIRD AMENDMENT TO CREDIT AGREEMENT,
Page 1
" Applicable Percentage " means, with
respect to any Revolving Lender, the percentage of the total
Revolving Commitments represented by such Lender's Revolving
Commitment; provided that in the case of Section 2.21 when a
Defaulting Lender shall exist, "Applicable Percentage" shall mean
the percentage of the total Revolving Commitments (disregarding any
Defaulting Lender's Revolving Commitment) represented by such
Lender's Revolving Commitment. If the Revolving
Commitments have terminated or expired, the Applicable Percentages
shall be determined based upon the Revolving Commitments most
recently in effect, giving effect to any assignments.
" Applicable Rate " means, for any day
and with respect to any Loan and with respect to any letter of
credit fee or any commitment fee payable hereunder, as the case may
be, the applicable rate per annum set forth below under the caption
"ABR Spread", "Eurodollar Spread", "Commitment Fee Rate" or
"Letter of Credit Fee" as the case may be, based upon the Pricing
Ratio as of the most recent determination date; provided
that until delivery of the Borrower's consolidated financial
statements for the fiscal quarter ended September 30, 2009 as
required by Section 5.01(b) , the "Applicable Rate" shall be
the applicable rate per annum set forth below in
Category 5:
|
Category
|
Pricing Ratio
|
ABR Spread
|
Eurodollar
Spread
|
Commitment
Fee Rate
|
Letter of
Credit Fee
|
|
1
|
Greater than or
equal to 2.50 to 1.00
|
2.50%
|
3.50%
|
0.500%
|
3.75%
|
|
2
|
Less than 2.50
to 1.00 but greater than or equal to 2.00 to 1.00
|
2.25%
|
3.25%
|
0.500%
|
3.50%
|
|
3
|
Less than 2.00
to 1.00 but greater than or equal to 1.50 to 1.00
|
2.00%
|
3.00%
|
0.45%
|
3.25%
|
|
4
|
Less than 1.50
to 1.00 but greater than or equal to 1.00 to 1.00
|
1.75%
|
2.75%
|
0.40%
|
3.00%
|
|
5
|
Less than 1.00
to 1.00
|
1.50%
|
2.50%
|
0.40%
|
2.75%
|
For purposes of the foregoing, (i) the
Pricing Ratio shall be determined as of the end of each fiscal
quarter of the Borrower's fiscal year based upon the Borrower's
consolidated financial statements delivered pursuant to
Section 5.01(a) or (b) and
(ii) each change in the Applicable Rate resulting from a
change in the Pricing Ratio shall be effective during the period
commencing on and including the date of delivery to the
Administrative Agent of such consolidated financial statements
indicating such change and ending on the date immediately preceding
the effective date of the next such change; provided that
the Pricing Ratio shall be deemed to be in
Category 1: (A) at any time that an Event of
Default has occurred and is continuing or (B) at the option of
the Administrative Agent or at the request of the Required Lenders
if the Borrower fails to deliver the consolidated financial
statements required to be delivered by it pursuant to
Section 5.01(a) or (b), during the period from the expiration
of the time for delivery thereof until such consolidated financial
statements are delivered.
" Change in Control " means any of the
following: (a) the acquisition of ownership, directly or
indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the
rules of the Securities and Exchange Commission thereunder as in
effect on the date hereof), of Equity Interests representing more
than 50% of either the aggregate ordinary voting power or the
aggregate equity value represented by the issued and outstanding
Equity Interests in the Borrower; (b) occupation of a majority of
the seats (other than vacant seats) on the board of directors of
Borrower by Persons who were neither (i) nominated by the board of
directors of Borrower nor (ii) appointed by directors so nominated;
or (c) the occurrence of a "Change of Control" or any
comparable event resulting in a requirement for the Borrower to
make an offer to purchase any New Unsecured Debt, as the term
"Change of Control" or those events are defined under any of the
documentation evidencing and governing any of the New Unsecured
Debt.
THIRD AMENDMENT TO CREDIT AGREEMENT,
Page 2
" Eurodollar ", when used in reference to
any Loan or Borrowing, refers to whether such Loan, or the Loans
comprising such Borrowing, are bearing interest at a rate
determined by reference to the Adjusted LIBO Rate but does not
include any Loan or Borrowing bearing interest at a rate determined
by reference to clause (c) of the definition of the term
"Alternative Base Rate".
" Revolving Maturity Date " means April
7, 2013.
Section 2.2. Addition to Section 1.01 . The following definitions are added
to Section 1.01 of the Agreement in proper alphabetical
order and shall read in their respective entireties as
follows:
" Defaulting Lender " means any Lender
that has: (a) failed to fund any portion of its Loans or
participations in Letters of Credit or Swingline Loans within two
Business Days of the date required to be funded by it hereunder,
(b) notified the Borrower, the Administrative Agent, the Issuing
Bank, the Swingline Lender or any Lender in writing that it does
not intend to comply with any of its funding obligations under this
Agreement or has made a public statement to the effect that it does
not intend to comply with its funding obligations under this
Agreement or under other agreements in which it commits to extend
credit, (c) failed, within two Business Days after request by the
Administrative Agent, to confirm that it will comply with the terms
of this Agreement relating to its obligations to fund prospective
Loans and participations in then outstanding Letters of Credit and
Swingline Loans, (d) as determined by the Administrative Agent,
otherwise failed to pay over to the Administrative Agent or any
other Lender any other amount required to be paid by it hereunder
within two Business Days of the date when due, unless the subject
of a good faith dispute, or (e) as determined by the Administrative
Agent, (i) become or is insolvent or has a parent company that has
become or is insolvent or (ii) become the subject of a bankruptcy
or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment or has a parent
company that has become the subject of a bankruptcy or insolvency
proceeding, or has had a receiver, conservator, trustee or
custodian appointed for it, or has taken any action in furtherance
of, or indicating its consent to, approval of or acquiescence in
any such proceeding or appointment.
" New Unsecured Debt " means unsecured
Indebtedness of the Borrower for borrowed money in an aggregate
principal amount not to exceed $150,000,000 at any time outstanding
which: (a) has a maturity date no earlier than the date that is six
(6) months following the Revolving Maturity Date (provided that
provisions satisfying the requirements of clause (b) of this
definition will not violate the requirements of this clause (a));
(b) does not contain any mandatory prepayment, mandatory redemption
or any provisions requiring the Borrower to offer to purchase such
Indebtedness other than: (i) provisions requiring the Borrower to
make offers to purchase such Indebtedness in the event of asset
sales as long as, in connection with any such asset sales, the Net
Proceeds thereof are required to be used to prepay the Term Loans
and such Term Loans are prepaid in full prior to the time any
proceeds therefrom are used to purchase any such Indebtedness and
(ii) provisions requiring the Borrower to make offers to purchase
such Indebtedness in the event of a change of control as long as a
"Change of Control" will occur hereunder prior to or at the same
time as a change of control offer is required to be made
thereunder; (c) does not contain any positive, negative or
financial covenant nor any event of default that is more
restrictive than those provisions herein; and (d) has interest rate
provisions that are customary in the market at the time of
issuance.
THIRD AMENDMENT TO CREDIT AGREEMENT,
Page 3
Section 2.3. Amendment to Section 2.11
. Clause (c) of
Section 2.11 is amended in its entirety to read as
follows:
(c)
Mandatory Prepayments from Net Proceeds of Prepayment Event
. In the event and on each occasion that any Net
Proceeds are received by or on behalf the Borrower or any
Subsidiary in respect of any Prepayment Event, the Borrower shall,
within three Business Days after such Net Proceeds are received,
prepay Term Borrowings in an aggregate amount equal to such Net
Proceeds; provided that:
(i) in
the case of any event described in clauses (a) or (b) of the
definition of the term Prepayment Event, if the Borrower shall
deliver to the Administrative Agent a certificate of a Financial
Officer to the effect that the Borrower and the Subsidiaries intend
to apply the Net Proceeds from such event, within 18 months after
receipt of such Net Proceeds, to acquire or repair assets to be
used in the business of the Borrower and the Restricted
Subsidiaries or to make an acquisition permitted by Section
6.04(l), to acquire a Route Swap permitted by Section 6.04(k) or to
make an Investment permitted by Section 6.04(q) or (s), then no
prepayment shall be required pursuant to this paragraph in respect
of such event except (A) to the extent of any Net Proceeds
therefrom that have not been so applied within 24 months after
receipt of such Net Proceeds, at which time a prepayment shall be
required in an amount equal to the Net Proceeds that have not been
so applied; (B) if at the time of the proposed application of the
Net Proceeds, an Event of Default exists, then at that time, a
prepayment shall be required in an amount equal to such Net
Proceeds; or (C) if the Borrower would be required to make an
offer to purchase any New Unsecured Debt with such Net Proceeds,
then prior to the time that the Borrower would be required to make
such offer, the Borrower shall be required to make a prepayment
under this clause (c) in an amount equal to such Net Proceeds;
and
(ii) Net
Proceeds from a single Prepayment Event shall not be required to be
used to prepay Term Borrowings under this clause (c) if the
aggregate amount of Net Proceeds received from such Prepayment
Event do not exceed $500,000 unless (A) such Net Proceeds,
when added to the aggregate amount of Net Proceeds received from
all Prepayment Events occurring in the same fiscal year which are
not reinvested pursuant to this clause (c) exceed $1,000,000 (in
which event the aggregate amount of such Net Proceeds from all such
Prepayment Events in excess of $1,000,000, shall then be required
to be used to prepay the Term Borrowing under this clause (c)) or
(B) the Borrower would be required to make an offer to
purchase any New Unsecured Debt with such Net Proceeds, then the
Borrower shall be required to make a prepayment under this clause
(c) in an amount equal to such Net Proceeds from a single
Prepayment Event.
THIRD AMENDMENT TO CREDIT AGREEMENT,
Page 4
Section 2.4. Amendment to Section 2.19
. Clause (b) of
Section 2.19 is amended in its entirety to read as
follows:
(b)
Replacement . If (i) a Lender requests
compensation under Section 2.15, (ii) the Borrower is required to
pay any additional amount to a Lender or any Governmental Authority
for the account of a Lender pursuant to Section 2.17, (iii) a
Lender defaults in its obligation to fund Loans hereunder, has
become insolvent and its assets become subject to a receiver,
liquidator, trustee, custodian or other officer having similar
powers, or otherwise is a Defaulting Lender, or (iv) a Lender shall
become a Non-consenting Lender (as defined below), then the
Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign
and delegate, without recourse (in accordance with and subject to
the restrictions contained in Section 10.04), all its interests,
rights and obligations under this Agreement to an assignee that
shall assume such obligations (which assignee may be another
Lender, if a Lender accepts such assignment); provided that (i) the
Borrower shall have received the prior written consent of the
Administrative Agent to the extent required by Section 10.04, which
consent shall not unreasonably be withheld, (ii) such Lender shall
have received payment of an amount equal to the outstanding
principal of its Loans and participations in LC Disbursements and
Swingline Loans, accrued interest thereon, accrued fees and
all
|