Exhibit 10.2.4
OMNIBUS AMENDMENT
WAIVER AND AMENDMENT NO. 3 TO
THIRD AMENDED AND RESTATED
RECEIVABLES PURCHASE AGREEMENT
AND AMENDMENT NO. 4
TO RECEIVABLES SALE
AGREEMENT
THIS OMNIBUS AMENDMENT
( this
“Amendment” ) is entered into as of
February 12, 2009 by and among:
(a) Yellow Roadway Receivables
Funding Corporation, a Delaware corporation (the
“Seller” or
“YRRFC” ),
(b) YRC Worldwide Inc., a Delaware
corporation (the “Performance Guarantor”
),
(c) JPMorgan Chase Bank, N.A.,
SunTrust Bank, Wachovia Bank, National Association, and The Royal
Bank of Scotland plc as successor to ABN AMRO Bank, N.V. (each of
the foregoing a “Committed Purchaser”
),
(d) Falcon Asset Securitization
Company LLC, Three Pillars Funding LLC and Amsterdam Funding
Corporation (each of the foregoing, a
“Conduit” ),
(e) YRC Assurance Co. Ltd., an
exempted company incorporated with limited liability under the laws
of Bermuda, individually and as agent for itself (together with its
successors and permitted assigns and in such latter capacity, a
“Co-Agent” ),
(f) Wachovia Bank, National
Association, as letter of credit issuer (the “LC
Issuer” ),
(g) SunTrust Robinson Humphrey,
Inc., Wachovia Bank, National Association, The Royal Bank of
Scotland plc as successor to ABN AMRO Bank, N.V. and JPMorgan Chase
Bank, N.A. (each of the foregoing, a
“Co-Agent” ),
(h) JPMorgan Chase Bank, N.A., as
administrative agent for the Groups (together with its successors
and permitted assigns and in such capacity, the
“Administrative Agent” and together with
the Co-Agents, and their respective successors and permitted
assigns, the “Agents” ), and
(i) YRC Inc., a Delaware corporation
formerly known as Yellow Roadway Corp. and successor by merger to
Yellow Transportation, Inc. and Roadway Express, Inc. (“
YRC ”), USF Reddaway, Inc., an Oregon
corporation ( “Reddaway” ), and USF
Holland, Inc., a Michigan corporation (together with YRC and
Reddaway, the “Originators” ),
with respect to (i) that
certain Third Amended and Restated Receivables Purchase Agreement,
dated as of April 18, 2008, among the Seller, the Committed
Purchasers, the Conduits, LC Issuer and the Agents (as amended,
restated, supplemented or otherwise modified from time to
time,
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the “RPA” ), and
(ii) that certain Amended and Restated Receivables Sale
Agreement, dated as of May 24, 2005, by and between the
Originators, as sellers, and YRRFC, as purchaser (as amended,
restated, supplemented or otherwise modified from time to time, the
“RSA” ).
FOR GOOD AND VALUABLE
CONSIDERATION, the
receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
1. Defined Terms .
(a) Capitalized terms used herein
and not otherwise defined shall have the meanings attributed to
such terms in the RPA, or if not defined therein, the
RSA.
(b) As used in this
Amendment:
“ Additional
Representation Default ” means any Default (as
defined in the YRCW Credit Agreement) or Event of Default (as
defined in the YRCW Credit Agreement) which has arisen or may arise
under clause (c) of Article VII of the YRCW
Credit Agreement as a result of representations or warranties made
or deemed made by or on behalf of any Borrower (as defined in the
YRCW Credit Agreement) or any Subsidiary (as defined in the YRCW
Credit Agreement) in connection with any Loan Document (as defined
in the YRCW Credit Agreement) or in any report, certificate or
other document furnished pursuant to or in connection with any Loan
Document proving to have been incorrect in any material respect
when made or deemed made solely as a result of the Lien Covenant
Default.
“ Lien Covenant
Default ” means any Default (as defined in the YRCW
Credit Agreement) or Event of Default (as defined in the YRCW
Credit Agreement) arising under clause (d) of
Article VII of the YRCW Credit Agreement as a result of the
failure of the Loan Parties (as defined in the YRCW Credit
Agreement) to comply with the negative covenants set forth in
Section 6.02 of the YRCW Credit Agreement by virtue of the
Liens (as defined in the YRCW Credit Agreement) granted in respect
of those certain secured intercompany notes identified on Schedule
II hereto.
“ Related Servicer
Defaults ” means any Servicer Default under
Section 7.1(b) of the RPA that may have arisen as a result of
representations or warranties, made or deemed made by or on behalf
of Seller in connection with the RPA or any Transaction Document or
in any report, certificate or other document furnished pursuant to
or in connection with the RPA or any Transaction Document, proving
to have been incorrect when made or deemed made or conditions to
any Credit Event not being satisfied solely as a result of the
existence of a “Default” or “Event of
Default” pursuant to Section 7.1(h) of the RPA arising
from the Lien Covenant Default or the Additional Representation
Default.
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2. Waivers . Subject to the
satisfaction or waiver of the conditions precedent set forth in
Section 6(a) below, the Required Co-Agents, on behalf of the
Agents and the Purchasers, hereby waive the following:
(a) the Specified Servicer Defaults
(as defined in the Limited Waiver and Second Amendment to Third
Amended and Restated Receivables Purchase Agreement dated as of
January 15, 2009, among Seller, Performance Guarantor, the
Committed Purchasers, the Conduits and the Agents), and
(b) the Related Servicer Defaults
arising prior to the date hereof.
3. Amendments to RPA . The
RPA is hereby amended as follows:
(a) Section 11.14 of the RPA is
hereby amended and restated in its entirety to read as
follows:
“Section 11.14.
Characterization .
(a) It is the intention of the
parties hereto that each purchase of a Purchaser Interest hereunder
shall constitute an absolute and irrevocable sale for all purposes
other than financial accounting purposes, which purchase shall
provide the applicable Purchaser with the full benefits of
ownership of the applicable Receivable Interest. Except as
specifically provided in this Agreement, each sale of a Purchaser
Interest hereunder is made without recourse to the Seller;
provided, however, that (i) the Seller shall be
liable to each of the Purchasers and the Agents for all
representations, warranties and covenants made by the Seller
pursuant to the terms of this Agreement, and (ii) such sale
does not constitute and is not intended to result in an assumption
by any Purchaser or Agent or any assignee thereof of any obligation
of the Seller or any Originator or any other person arising in
connection with the Receivables, the Related Security, or the
related Invoices, or any other obligations of the Seller or any
Originator.
(b) If, notwithstanding the
intention of the parties expressed above, any sale or transfer by
Seller hereunder shall be characterized as a secured loan and not a
sale or such sale shall for any reason be ineffective or
unenforceable (any of the foregoing being a
“Recharacterization” ), then this
Agreement shall be deemed to constitute a security agreement under
the UCC and other applicable law. In the case of any
Recharacterization, the Seller represents and warrants that each
remittance of Collections to any Agent or the Purchasers hereunder
will have been (i) in payment of a debt incurred in the
ordinary course of business or financial affairs and (ii) made
in the ordinary course of business or financial
affairs.”
(b) The definitions of
“Applicable Margin” and
“Reserve Requirement” in Exhibit I to the
RPA are deleted in their entirety.
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(c) Exhibit I of the RPA is hereby
amended by adding, in their appropriate alphabetical order, the
following definitions:
“Audit Reserve
Percentage” means 5.00%.
“Base LIBOR
Rate” means the
rate per annum equal to (a) the rate at which deposits in U.S.
Dollars are offered by the Reference Bank to first-class banks in
the London interbank market at approximately 11:00 a.m. (London
time) two Business Days prior to the first day of the relevant
Tranche Period, such deposits being in the approximate amount of
the Capital of the Purchaser Interest to be funded or maintained,
multiplied by (b) the Statutory Reserve Rate (expressed as a
decimal) applicable to such Tranche Period.
“ Capital
Expenditures ” shall have the meaning specified in
the YRCW Credit Agreement.
“ Consolidated
EBITDA ” shall have the meaning specified in the YRCW
Credit Agreement.
“ Liquidity
” means, as of any Business Day, the average of the
Performance Guarantor’s Liquidity Amount as of the end of
business (US Central time) for the immediately preceding five
(5) Business Days, which average shall be tested promptly in
the morning on each Business Day; provided ,
however , that on and after any Business Day on which
Liquidity is less than $150,000,000, the Performance Guarantor
shall thereafter provide such daily calculations via-email PDF to
the Administrative Agent (“ Email Reports
”) no later than 5:00 p.m. (New York City time) on each
Business Day until Liquidity exceeds $150,000,000 for ten
(10) consecutive Business Days at which point such Email
Reports shall not be required until Liquidity subsequently drops
below $150,000,000.
“ Liquidity
Amount ” shall have the meaning specified in the YRCW
Credit Agreement
“ Liquidity Notification
Date ” means any date on which the Liquidity of the
Performance Guarantor is less than $100,000,000 (each such
occurrence, a “ Liquidity Deficiency ”),
whether or not the Performance Guarantor does in fact notify the
Administrative Agent of such Liquidity Deficiency.
“ Statutory Reserve
Rate ” shall have the meaning specified in the YRCW
Credit Agreement.
(d) The definition in Exhibit I to
the RPA of each of the terms specified below is hereby amended and
restated in its entirety to read, respectively, as
follows:
“Aggregate Reserve
Percentage” means on any date of determination, the sum of
(a) the Loss Reserve Percentage, plus (b) the Discount
Reserve Percentage, plus (c) the Dilution Reserve Percentage,
plus (d) the Servicer Fee Percentage, plus (e) from and
after March 31, 2009, if the Administrative Agent
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has not notified the other Agents
and the Seller that (i) it has received a report regarding the
audit of the Receivables in progress by FTI Consulting, Inc. as of
February 11, 2009, under Section 5.1(d) of this Agreement
and (ii) all material issues of noncompliance of Receivables
with this Agreement or the Credit and Collection Policy identified
in such report have been resolved to the Administrative
Agent’s reasonable satisfaction, the Audit Reserve
Percentage.
“Base
Rate” means, with respect to each
Group, a rate per annum equal to the highest of (i) the
corporate base rate, prime rate or base rate of interest, as
applicable, announced by such Group’s Reference Bank from
time to time, changing when and as such rate changes,
(ii) 1 / 2 of 1% above the Federal Funds
Effective Rate, changing when and as such rate changes and
(iii) the LIBOR Rate.
“Calculation
Period” means,
for the purposes of any calculation defined herein which references
a “Calculation Period,” (i) during an Asynchronous
Accounting Period, (A) in the case of any amounts used in such
calculation derived from or associated with Receivables originated
by YRC, the calendar month designated in the table below and
(B) in the case of any amounts used in such calculation
derived from or associated with Receivables originated by USF
Reddaway Inc. or USF Holland Inc., the accounting period designated
in the table below, it being understood that
“Calculation Period” is a collective term referring to
both component periods as specified in (A) and (B) above
and as indicated in the table below, and the phrases
“Calculation Period most recently ended” and “as
of the last day of the Calculation Period most recently
ended” refer collectively to both respective component
periods or the last day of both respective component periods (as
the case may be) as specified in (A) and (B) above and as
indicated in the table below, or (ii) at all other times, each
calendar month:
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CALCULATION
PERIOD
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CALENDAR
MONTH
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ACCOUNTING
PERIOD
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CORRESPONDING
DATES
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2
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February 2009
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4 weeks
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2/1/09 - 2/28/09
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3
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March 2009
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5 weeks
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3/1/09 - 4/4/09
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4
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April 2009
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4 weeks
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4/5/09 - 5/2/09
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5
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May 2009
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4 weeks
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5/3/09 - 5/30/09
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6
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June 2009
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5 weeks
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5/31/09 - 7/4/09
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7
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July 2009
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4 weeks
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7/5/09 - 8/1/09
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8
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August 2009
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4 weeks
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8/2/09 - 8/29/09
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9
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September 2009
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5 weeks
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8/30/09 - 10/3/09
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10
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October 2009
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4 weeks
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10/4/09 - 10/31/09
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11
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November 2009
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4 weeks
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11/1/09 - 11/28/09
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12
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December 2009
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5 weeks
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11/29/09 - 12/31/09
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1
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January 2010
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4 weeks
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1/1/10 - 1/30/10
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2
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February 2010
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4 weeks
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1/31/10 - 2/27/10
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“Concentration
Limit” means:
(a) for any Obligor and its
Affiliates considered as if they were one and the same Obligor, an
amount equal to (i) 2.80%, multiplied by (ii) the
aggregate Outstanding Balance of all Eligible Receivables at such
time; and
(b) at any time, for all Government
Receivables, 2.80% of the aggregate Outstanding Balance of all
Eligible Receivables at such time;
provided,
however, that the
Administrative Agent may from time to time designate other amounts
(each, a “ Special Concentration Limit ”)
for any Obligor or class of Receivables, it being understood and
agreed that any of the Agents may, upon not less than three
Business Days’ notice to the Seller and the other Agents,
cancel any Special Concentration Limit.
“Dilution Reserve
Percentage” means, on any date of determination, the greater
of (i) the Dilution Reserve Percentage Floor and (ii) the
percentage determined pursuant to the following formula:
{(2.50 x ED) + [(DS - ED) x (DS/ED)
]} x DHR
where:
ED =
the Expected Dilution on such date;
DS =
the Dilution Spike as of such date; and
DHR =
the Dilution Horizon Ratio on such date.
“Discount
Reserve” means,
on any date of determination, the amount determined pursuant to the
following formula:
{ (D + F) + [ (C x 3 x DR) x 3 x
DSO ] }
360
where
:
D = the accrued and unpaid Discount
for all Receivable Interests of the Purchasers as of the date of
determination;
F = the aggregate amount of accrued
and unpaid Servicer Fees and other fees owing pursuant to the Fee
Letters as of the date of determination;
C = the aggregate Capital
outstanding as of the date of determination;
DR = the highest Discount Rate
applicable on the date of determination; and
DSO = the Days
Outstanding.
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“ LC
Sublimit” means
the lesser of (a) $105,000,000 and (b) the aggregate
Commitments.
“LIBOR
Rate” means an
interest rate per annum equal to the sum of (a) the greater of
(i) the Base LIBOR Rate and (ii) 3.50% multiplied by the
Statutory Reserve Percentage, plus (b) 6.50%. The LIBOR Rate
shall be rounded, if necessary, to the next higher 1/16 of
1%.
“LMIR” means, on any date of determination, a rate per
annum equal to the sum of (a) the greater of (i) the
LIBOR Market Index Rate and (ii) 3.50% multiplied by the
Statutory Reserve Percentage, plus (b) 6.50%.
“Loss Reserve
Percentage” means, on any date of determination, the greater
of (i) 14.0%, and (ii) the percentage equal to
(a) 2.5 multiplied by (b) the highest of the past twelve
rolling 3-Calculation Period average Default Ratios, multiplied by
(c) a fraction having a numerator equal to the aggregate
amount of Receivables generated during the preceding 4 Calculation
Periods and denominator equal to the Net Receivables Balance on the
date of determination.
“Servicer Fee
Reserve” means,
on any date, an amount determined pursuant to the following
formula:
SFRP x NRB x 3 x
DSO
360
where:
SFRP = the Servicer Fee Reserve
Percentage as of the date of determination;
NRB = the Net Receivables Balance as
of the opening of business of the Servicer on such date;
and
DSO = the Days Outstanding on such
date of determination.
“Stated Liquidity
Termination Date” means February 11, 2010.
“Trigger
Event” means
(a) the Required Co-Agents shall not have waived a Liquidity
Deficiency within five (5) Business Days of the Liquidity
Notification Date, (b) the failure of the Performance
Guarantor to maintain, as of the end of the accounting periods set
forth below, Consolidated EBITDA in the minimum level set forth
below next to such accounting period (for each such period, “
Minimum Consolidated EBITDA ”);
provided , however , that from and
after the date of the consummation of the Permitted Disposition (as
defined in the YRCW Credit Agreement) the Minimum Consolidated
EBITDA covenant levels in the table below shall be modified as set
forth on Schedule I attached hereto for the fiscal
quarter in which the Permitted Disposition is consummated and for
each fiscal quarter thereafter:
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Minimum EBITDA
(pre-Permitted
Disposition)
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For the fiscal quarter ending on June 30,
2009
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$
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45,000,000
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For the two consecutive fiscal quarters ending
on September 30, 2009
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$
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130,000,000
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For the three consecutive fiscal quarters
ending on December 31, 2009
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$
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180,000,000
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For the four consecutive fiscal quarters ending
on March 31, 2010
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$
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205,000,000
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For the four consecutive fiscal quarters ending
on June 30, 2010
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$
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205,000,000
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For the four consecutive fiscal quarters ending
on September 30, 2010
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$
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215,000,000
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For the four consecutive fiscal quarters
end
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