Exhibit 4.3
Lazy Days’ R.V. Center,
Inc.
$152,000,000
11 3/4% Senior Notes due
2012
PURCHASE AGREEMENT
May 12, 2004
DEUTSCHE BANK SECURITIES
INC.
JEFFERIES & COMPANY,
INC.
WELLS FARGO SECURITIES,
LLC
c/o Deutsche Bank Securities
Inc.
60 Wall Street
New York, New York 10005
Ladies and Gentlemen:
Lazy Days’ R.V. Center. Inc.,
a Florida corporation (the “ Company ”), hereby
confirms its agreement with you (the “ Initial
Purchasers ”), as set forth below.
Section
1.
The Securities . Subject to the terms and conditions
herein contained, the Company proposes to issue and sell to the
Initial Purchasers $152,000,000 aggregate principal amount of its
11 3/4% Senior Notes due 2012 (the “ Notes
”). The Notes are to be issued under an indenture (the
“ Indenture ”) to be dated as of May 14,
2004 by and between the Company and The Bank of New York, as
Trustee (the “ Trustee ”).
The Notes are being sold in
connection with the acquisition (the “ Acquisition
”) to be consummated pursuant to the Stock Purchase Agreement
dated May 14, 2004 (the “ Acquisition Agreement
”) by and among the Company, the Company’s parent, LD
Holdings, Inc. (“ Holdings ”), the Employee
Stock Ownership Plan and Trust for the Employees of Lazydays (the
“ ESOP ”) and certain other stockholders of
Holdings and RV Acquisition, Inc., (“ RV Acquisition
”), a newly formed holding company owned by an affiliate of
Bruckmann, Rosser, Sherrill & Co., Inc. (“
BRS ”), pursuant to which RV Acquisition has agreed to
acquire all of Holdings’ outstanding capital
stock.
The Notes will be offered and sold
to the Initial Purchasers without being registered under the
Securities Act of 1933, as amended (the “ Act
”), in reliance on exemptions therefrom.
In connection with the sale of the
Notes, the Company has prepared a preliminary offering memorandum
dated April 27, 2004 (the “ Preliminary Memorandum
”) and a final offering memorandum dated May 12, 2004 (the
“ Final Memorandum ”; the Preliminary Memorandum
and the Final Memorandum each herein being referred to as a “
Memorandum ”) setting forth or including a description
of the terms of the Notes, the terms of the offering of the Notes,
a description of the Company and any material developments relating
to the Company occurring after the date of the most recent
historical financial statements included therein.
The Initial Purchasers and their
direct and indirect transferees of the Notes will be entitled to
the benefits of the Registration Rights Agreement, substantially in
the form attached hereto as Exhibit A (the “
Registration Rights Agreement ”), pursuant to which
the Company has agreed, among other things, to file a registration
statement (the “ Registration Statement ”) with
the Securities and Exchange Commission (the “
Commission ”) registering the Notes or the Exchange
Notes (as defined in the Registration Rights Agreement) under the
Act.
Section
2.
Representations and Warranties . The Company
represents and warrants to and agrees with each of the Initial
Purchasers as follows:
(a)
Neither the Preliminary Memorandum as of the date thereof nor the
Final Memorandum nor any amendment or supplement thereto as of the
date thereof and at all times subsequent thereto up to the Closing
Date (as defined in Section 3 below) contained or contains any
untrue statement of a material fact or omitted or omits to state a
material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading, except that the representations and warranties set
forth in this Section 2(a) do not apply to statements or
omissions made in reliance upon and in conformity with information
relating to either of the Initial Purchasers furnished to the
Company in writing by the Initial Purchasers expressly for use in
the Preliminary Memorandum, the Final Memorandum or any amendment
or supplement thereto.
(b)
As of the Closing Date, the Company will have the authorized,
issued and outstanding capitalization set forth in the Final
Memorandum; all of the outstanding shares of capital stock of the
Company have been, and as of the Closing Date will be, duly
authorized and validly issued, are fully paid and nonassessable and
were not issued in violation of any preemptive or similar rights;
except as set forth in the Final Memorandum, all of the outstanding
shares of capital stock of the Company will be free and clear of
all liens, encumbrances, equities and claims or restrictions on
transferability (other than those imposed by the Act and the
securities or “Blue Sky” laws of certain jurisdictions)
or voting; except as set forth in the Final Memorandum, there are
no (i) options, warrants or other rights to purchase,
(ii) agreements or other obligations to issue or
(iii) other rights to convert any obligation into, or exchange
any securities for, shares of capital stock of or ownership
interests in the Company outstanding. Except as disclosed in
the Final Memorandum, the Company does not
2
own, directly or indirectly, any shares of
capital stock or any other equity or long-term debt securities or
have any equity interest in any firm, partnership, joint venture or
other entity.
(c)
The Company is duly incorporated, validly existing and in good
standing under the laws of its jurisdiction of incorporation and
has all requisite corporate power and authority to own its
properties and conduct its business as now conducted and as
described in the Final Memorandum; the Company is duly qualified to
do business as a foreign corporation in good standing in all other
jurisdictions where the ownership or leasing of its properties or
the conduct of its business requires such qualification, except
where the failure to be so qualified would not, individually or in
the aggregate, have a material adverse effect on the general
affairs, management, business, condition (financial or otherwise),
prospects or results of operations of the Company, taken as a whole
(any such event, a “ Material Adverse Effect
”).
(d)
The Company has all requisite corporate power and authority to
execute, deliver and perform each of its obligations under the
Notes, the Exchange Notes and the Private Exchange Notes (as
defined in the Registration Rights Agreement). The Notes,
when issued, will be in the form contemplated by the
Indenture. The Notes, the Exchange Notes and the Private
Exchange Notes have each been duly and validly authorized by the
Company and, when executed by the Company and authenticated by the
Trustee in accordance with the provisions of the Indenture and, in
the case of the Notes, when delivered to and paid for by the
Initial Purchasers in accordance with the terms of this Agreement,
will constitute valid and legally binding obligations of the
Company, entitled to the benefits of the Indenture, and enforceable
against the Company in accordance with their terms, except that the
enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights generally,
and (ii) general principles of equity and the discretion of
the court before which any proceeding therefor may be
brought.
(e)
The Company has all requisite corporate power and authority to
execute, deliver and perform its obligations under the
Indenture. The Indenture meets the requirements for
qualification under the Trust Indenture Act of 1939, as amended
(the “ TIA ”). The Indenture has been duly
and validly authorized by the Company and, when executed and
delivered by the Company (assuming the due authorization, execution
and delivery by the Trustee), will constitute a valid and legally
binding agreement of the Company, enforceable against the Company
in accordance with its terms, except that the enforcement thereof
may be subject to (i) bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect
relating to creditors’ rights generally and (ii) general
principles of equity and the discretion of the court before which
any proceeding therefor may be brought.
(f)
The Company has all requisite corporate power and authority to
execute, deliver and perform its obligations under the Registration
Rights Agreement. The Registration Rights Agreement has been
duly and validly authorized by the Company and, when executed and
delivered by the Company (assuming the due authorization, execution
and delivery
3
by the Initial Purchasers), will constitute a
valid and legally binding agreement of the Company enforceable
against the Company in accordance with its terms, except that
(A) the enforcement thereof may be subject to
(i) bankruptcy, insolvency, reorganization, moratorium or
other similar laws now or hereafter in effect relating to
creditors’ rights generally, and (ii) general principles
of equity and the discretion of the court before which any
proceeding therefor may be brought and (B) any rights to
indemnity or contribution thereunder may be limited by federal and
state securities laws and public policy considerations.
(g)
The Company has all requisite corporate power and authority to
execute, deliver and perform its obligations under this Agreement
and to consummate the transactions contemplated hereby. This
Agreement and the consummation by the Company of the transactions
contemplated hereby have been duly and validly authorized by the
Company. This Agreement has been duly executed and delivered
by the Company.
(h)
No consent, approval, authorization or order of any court or
governmental agency or body, or third party is required for the
issuance and sale by the Company of the Notes to the Initial
Purchasers or the consummation by the Company of the other
transactions contemplated hereby, except such as have been obtained
and such as may be required under state securities or “Blue
Sky” laws in connection with the purchase and resale of the
Notes by the Initial Purchasers. The Company is not
(i) in violation of its certificate of incorporation or bylaws
(or similar organizational document), (ii) in breach or
violation of any statute, judgment, decree, order, rule or
regulation applicable to it or any of its properties or assets,
except for any such breach or violation that would not,
individually or in the aggregate, have a Material Adverse Effect,
or (iii) in breach of or default under (nor has any event occurred
that, with notice or passage of time or both, would constitute a
default under) or in violation of any of the terms or provisions of
any indenture, mortgage, deed of trust, loan agreement, note,
lease, license, franchise agreement, permit, certificate, contract
or other agreement or instrument to which it is a party or to which
it or its properties or assets is subject (collectively, “
Contracts ”), except for any such breach, default,
violation or event that would not, individually or in the
aggregate, have a Material Adverse Effect.
(i)
The execution, delivery and performance by the Company of this
Agreement, the Indenture and the Registration Rights Agreement and
the consummation by the Company of the transactions contemplated
hereby and thereby (including, without limitation, the issuance and
sale of the Notes to the Initial Purchasers) will not conflict with
or constitute or result in a breach of or a default under (or an
event that with notice or passage of time or both would constitute
a default under) or violation of any of (i) the terms or
provisions of any Contract, except for any such conflict, breach,
violation, default or event that would not, individually or in the
aggregate, have a Material Adverse Effect, (ii) the
certificate of incorporation or bylaws (or similar organizational
document) of the Company or (iii) (assuming compliance with
all applicable state securities or “Blue Sky” laws and
assuming the accuracy of the representations and warranties of the
Initial Purchasers in Section 8 hereof) any statute, judgment,
decree, order, rule or regulation applicable to the Company or any
of its properties
4
or assets, except for any such conflict, breach
or violation that would not, individually or in the aggregate, have
a Material Adverse Effect.
(j)
The audited consolidated financial statements of the Company
included in the Final Memorandum present fairly in all material
respects the financial position, results of operations and cash
flows of the Company at the dates and for the periods to which they
relate and have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis, except as
otherwise stated therein. The summary and selected financial
and statistical data in the Final Memorandum present fairly in all
material respects the information shown therein and have been
prepared and compiled on a basis consistent with the audited
financial statements included therein, except as otherwise stated
therein. Crowe Chizek and Company LLC (the “
Independent Accountants ”) is an independent public
accounting firm within the meaning of the Act and the rules and
regulations promulgated thereunder.
(k)
The pro forma financial statements (including the notes thereto)
and the other pro forma financial information included in the Final
Memorandum (i) comply as to form in all material respects with
the applicable requirements of Regulation S-X promulgated under the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”), (ii) have been prepared in
accordance with the Commission’s rules and guidelines with
respect to pro forma financial statements and (iii) have been
properly computed on the bases described therein; the assumptions
used in the preparation of the pro forma financial data and other
pro forma financial information included in the Final Memorandum
are reasonable and the adjustments used therein are appropriate to
give effect to the transactions or circumstances referred to
therein.
(l)
There is not pending or, to the knowledge of the Company,
threatened any action, suit, proceeding, inquiry or investigation
to which the Company is a party, or to which the property or assets
of the Company are subject, before or brought by any court,
arbitrator or governmental agency or body that, if determined
adversely to the Company, would, individually or in the aggregate,
have a Material Adverse Effect or that seeks to restrain, enjoin,
prevent the consummation of or otherwise challenge the issuance or
sale of the Notes to be sold hereunder or the consummation of the
other transactions described in the Final Memorandum.
(m)
The Company possesses all licenses, permits, certificates,
consents, orders, approvals and other authorizations from, and has
made all declarations and filings with, all federal, state, local
and other governmental authorities, all self-regulatory
organizations and all courts and other tribunals, presently
required or necessary to own or lease, as the case may be, and to
operate its properties and to carry on its business as now or
proposed to be conducted as set forth in the Final Memorandum
(“ Permits ”), except where the failure to
obtain such Permits would not, individually or in the aggregate,
have a Material Adverse Effect; the Company has fulfilled and
performed all of its obligations with respect to such Permits and
no event has occurred that allows, or after notice or lapse of time
would allow, revocation or termination thereof or results in any
other material impairment of the rights of the holder of
5
any such Permit; and the Company has not
received any notice of any proceeding relating to revocation or
modification of any such Permit, except as described in the Final
Memorandum and except where such revocation or modification would
not, individually or in the aggregate, have a Material Adverse
Effect.
(n)
Since the date of the most recent financial statements appearing in
the Final Memorandum, except as described therein, (i) the
Company has not incurred any liabilities or obligations, direct or
contingent, or entered into or agreed to enter into any
transactions or contracts (written or oral) not in the ordinary
course of business, which liabilities, obligations, transactions or
contracts would, individually or in the aggregate, be material to
the general affairs, management, business, condition (financial or
otherwise), prospects or results of operations of the Companies,
taken as a whole, (ii) the Company has not purchased any of
its outstanding capital stock, nor declared, paid or otherwise made
any dividend or distribution of any kind on its capital stock and
(iii) there shall not have been any material change in the
capital stock or long-term indebtedness of the Company.
(o)
The Company has filed all necessary federal, state and foreign
income and franchise tax returns, except where the failure to so
file such returns would not, individually or in the aggregate, have
a Material Adverse Effect, and has paid all taxes shown as due
thereon; and other than tax deficiencies that the Company is
contesting in good faith and for which the Company has provided
adequate reserves, there is no tax deficiency that has been
asserted against the Company that would have, individually or in
the aggregate, a Material Adverse Effect.
(p)
The statistical and market-related data included in the Final
Memorandum are based on or derived from sources that the Company
believes to be reliable and accurate.
(q)
None of the Company or any agent acting on its behalf has taken or
will take any action that might cause this Agreement or the sale of
the Notes to violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System, in each case as in effect,
or as the same may hereafter be in effect, on the Closing
Date.
(r)
The Company has good and marketable title to all real property and
good title to all personal property described in the Final
Memorandum as being owned by it and good and marketable title to a
leasehold estate in the real and personal property described in the
Final Memorandum as being leased by it free and clear of all liens,
charges, encumbrances or restrictions, except as described in the
Final Memorandum or to the extent the failure to have such title or
the existence of such liens, charges, encumbrances or restrictions
would not, individually or in the aggregate, have a Material
Adverse Effect. All leases, contracts and agreements to which
the Company is a party or by which it is bound are valid and
enforceable against the Company, and are valid and enforceable
against the other party or parties thereto and are in full force
and effect with only such exceptions as would not, individually or
in the aggregate, have a Material Adverse Effect. The Company
owns or possesses
6
adequate licenses or other rights to use all
patents, trademarks, service marks, trade names, copyrights and
know-how necessary to conduct the businesses now or proposed to be
operated by them as described in the Final Memorandum, and the
Company has not received any notice of infringement of or conflict
with (or knows of any such infringement of or conflict with)
asserted rights of others with respect to any patents, trademarks,
service marks, trade names, copyrights or know-how that, if such
assertion of infringement or conflict were sustained, would have a
Material Adverse Effect.
(s)
There are no legal or governmental proceedings involving or
affecting the Company or any of its properties or assets that would
be required to be described in a prospectus pursuant to the Act
that are not described in the Final Memorandum, nor are there any
material contracts or other documents that would be required to be
described in a prospectus pursuant to the Act that are not
described in the Final Memorandum.
(t)
Except as would not, individually or in the aggregate, have a
Material Adverse Effect (A) the Company is in compliance with
and not subject to liability under applicable Environmental Laws
(as defined below), (B) the Company has made all filings and
provided all notices required under any applicable Environmental
Law, and has and is in compliance with all Permits required under
any applicable Environmental Laws and each of them is in full force
and effect, (C) there is no civil, criminal or administrative
action, suit, demand, claim, hearing, notice of violation,
investigation, proceeding, notice or demand letter or request for
information pending or, to the knowledge of the Company, threatened
against the Company under any Environmental Law, (D) no lien,
charge, encumbrance or restriction has been recorded under any
Environmental Law with respect to any assets, facility or property
owned, operated, leased or controlled by the Company, (E) the
Company has not received notice that it has been identified as a
potentially responsible party under the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended
(“ CERCLA ”), or any comparable state law and
(F) no property or facility of the Company is (i) listed
or proposed for listing on the National Priorities List under
CERCLA or is (ii) listed in the Comprehensive Environmental
Response, Compensation, Liability Information System List
promulgated pursuant to CERCLA, or on any comparable list
maintained by any state or local governmental authority.
For purposes of this Agreement,
“ Environmental Laws ” means the common law and
all applicable federal, state and local laws or regulations, codes,
orders, decrees, judgments or injunctions issued, promulgated,
approved or entered thereunder, relating to pollution or protection
of public or employee health and safety or the environment,
including, without limitation, laws relating to (i) emissions,
discharges, releases or threatened releases of hazardous materials
into the environment (including, without limitation, ambient air,
surface water, ground water, land surface or subsurface strata),
(ii) the manufacture, processing, distribution, use,
generation, treatment, storage, disposal, transport or handling of
hazardous materials, and (iii) underground and above ground
storage tanks and related piping, and emissions, discharges,
releases or threatened releases therefrom.
7
(u)
There is no strike, labor dispute, slowdown or work stoppage with
the employees of the Company that is pending or, to the knowledge
of the Company, threatened.
(v)
The Company carries insurance in such amounts and covering such
risks as is adequate for the conduct of its business and the value
of its properties.
(w)
The Company has no liability for any prohibited transaction or
funding deficiency or any complete or partial withdrawal liability
with respect to any pension, profit sharing or other plan that is
subject to the Employee Retirement Income Security Act of 1974, as
amended (“ ERISA ”), to which the Company makes
or ever has made a contribution and in which any employee of the
Company is or has ever been a participant. With respect to
such plans, the Company is in compliance in all material respects
with all applicable provisions of ERISA and the Internal Revenue
Code of 1986, as amended.
(x)
The Company (i) makes and keeps accurate books and records and
(ii) maintains internal accounting controls that provide
reasonable assurance that (A) transactions are executed in
accordance with management’s authorization,
(B) transactions are recorded as necessary to permit
preparation of its financial statements and to maintain
accountability for its assets, (C) access to its assets is
permitted only in accordance with management’s authorization
and (D) the reported accountability for its assets is compared
with existing assets at reasonable intervals.
(y)
The Company will not be an “investment company” or
“promoter” or “principal underwriter” for
an “investment company,” as such terms are defined in
the Investment Company Act of 1940, as amended, and the rules and
regulations thereunder.
(z)
The Notes, the Indenture and the Registration Rights Agreement will
conform in all material respects to the descriptions thereof in the
Final Memorandum.
(aa)
No holder of securities of the Company will be entitled to have
such securities registered under the registration statements
required to be filed by the Company pursuant to the Registration
Rights Agreement other than as expressly permitted
thereby.
(bb)
Immediately after the consummation of the transactions contemplated
by this Agreement, the fair value and present fair saleable value
of the assets of the Company will exceed the sum of its stated
liabilities and identified contingent liabilities; the Company is
not, nor will the Company be, after giving effect to the execution,
delivery and performance of this Agreement, and the consummation of
the transactions contemplated hereby, (a) left with
unreasonably small capital with which to carry on its business as
it is proposed to be conducted, (b) unable to pay its debts
(contingent or otherwise) as they mature or (c) otherwise
insolvent.
(cc)
None of the Company or any of its Affiliates (as defined in
Rule 501(b) of Regulation D under the Act) has directly, or
through any agent, (i) sold, offered for sale,
8
solicited offers to buy or otherwise negotiated
in respect of, any “security” (as defined in the Act)
that is or could be integrated with the sale of the Notes in a
manner that would require the registration under the Act of the
Notes or (ii) engaged in any form of general solicitation or
general advertising (as those terms are used in Regulation D under
the Act) in connection with the offering of the Notes or in any
manner involving a public offering within the meaning of
Section 4(2) of the Act. Assuming the accuracy of the
representations and warranties of the Initial Purchasers in
Section 8 hereof, it is not necessary in connection with the
offer, sale and delivery of the Notes to the Initial Purchasers in
the manner contemplated by this Agreement to register any of the
Notes under the Act or to qualify the Indenture under the
TIA.
(dd)
No securities of the Company are of the same class (within the
meaning of Rule 144A under the Act) as the Notes and listed on
a national securities exchange registered under Section 6 of
the Exchange Act, or quoted in a U.S. automated inter-dealer
quotation system.
(ee)
The Company has not taken, nor will it take, directly or
indirectly, any action designed to, or that might be reasonably
expected to, cause or result in stabilization or manipulation of
the price of the Notes.
(ff)
None of the Company, any of its Affiliates or any person acting on
its or their behalf (other than the Initial Purchasers) has engaged
in any directed selling efforts (as that term is defined in
Regulation S under the Act (“ Regulation S
”)) with respect to the Notes; the Company and its Affiliates
and any person acting on its or their behalf (other than the
Initial Purchasers) have complied with the offering restrictions
requirement of Regulation S.
Any certificate signed by any
officer of the Company and delivered to any Initial Purchaser or to
counsel for the Initial Purchasers shall be deemed a joint and
several representation and warranty by the Company to each Initial
Purchaser as to the matters covered thereby.
Section
3.
Purchase, Sale and Delivery of the Notes . On the
basis of the representations, warranties, ag