EIGHTH AMENDMENT TO REVOLVING
CREDIT AGREEMENT
This Eighth Amendment to Revolving Credit
Agreement (“Amendment”) is made as of October 22, 2008
(“Effective Date”) among WCA WASTE CORPORATION ,
a Delaware corporation (“Borrower”) and COMERICA
BANK , a Texas banking association (“Comerica”), in
its capacity as Agent under the Credit Agreement, as defined below
(in such capacity, “Agent”), and in its capacity as a
Lender under the Credit Agreement and the “Lenders”
from time to time party thereto (the
“Lenders”).
PRELIMINARY STATEMENT
The Borrower and Agent entered into a Revolving
Credit Agreement dated July 5, 2006, as amended by a First
Amendment to Revolving Credit Agreement dated as of July 28, 2006,
Second Amendment to Revolving Credit Agreement dated as of
September 25, 2006, Third Amendment to Revolving Credit Agreement
dated as of November 20, 2006, Fourth Amendment to Revolving Credit
Agreement dated as of January 24, 2007, Fifth Amendment to
Revolving Credit Agreement dated as of March 13, 2007, Sixth
Amendment to Revolving Credit Agreement dated as of July 27, 2007,
and Seventh Amendment to Revolving Credit Agreement dated as of
December 19, 2007 (“Credit Agreement”) providing terms
and conditions governing certain loans and other credit
accommodations extended by the Agent to Borrower
(“Indebtedness”).
Borrower, Agent and the Lenders constituting the
Required Lenders have agreed to amend the terms of
the Credit Agreement as provided in this Amendment.
AGREEMENT
1. Defined
Terms . In this Amendment, capitalized terms used
without separate definition shall have the meanings given them in
the Credit Agreement.
a. The following
definitions are hereby added to Section 1.01 of the Credit
Agreement:
“ ‘ Eighth Amendment Effective
Date ’ shall mean the effective date of the Eighth
Amendment to Revolving Credit Agreement among the Borrower, Agent
and the Lenders determined pursuant to Paragraph 3a of such
amendment.”
“ ‘ Floating LIBOR Rate
’ means, for any day, a per annum interest rate which is
equal to the quotient of the following:
(1) the per annum rate of interest
determined on the basis of the rate for deposits in Dollars for a
period equal to one (1) month appearing on Page BBAM of the
Bloomberg Financial Markets Information Service as of 8:00 a.m.
(Detroit, Michigan time) (or soon thereafter as practical) on such
day, or if such day is not a Business Day, on the immediately
preceding Business Day. In the event that such rate does
not appear on Page BBAM of the Bloomberg Financial Markets
Information Service (or otherwise on such Service), the
“Floating LIBOR Rate” shall be determined by reference
to such other publicly available service for displaying eurodollar
rates as may be agreed upon by Agent and Borrower, or, in the
absence of such agreement, the “Floating LIBOR Rate”
shall, instead, be the per annum rate equal to the average of the
rate at which Agent is offered dollar deposits at or about 8:00
a.m. (Detroit, Michigan time) (or soon thereafter as practical) on
such day in the interbank eurodollar market in an amount comparable
to the principal amount of the Obligations hereunder which is to
bear interest at such “Floating LIBOR Rate” and for a
period equal to one (1) month;
(2) a percentage equal to 100%
minus the maximum rate on such date at which Agent is required to
maintain reserves on “Euro-currency Liabilities” as
defined in and pursuant to Regulation D of the Board of Governors
of the Federal Reserve System or, if such regulation or definition
is modified, and as long as Agent is required to maintain reserves
against a category of liabilities which includes eurodollar
deposits or includes a category of assets which includes eurodollar
loans, the rate at which such reserves are required to be
maintained on such category;
all as
conclusively determined by Agent, such sum to be rounded upward, if
necessary, to the nearest whole multiple of 1/100,000th of
1%.
b. The definition of
“Applicable Margin” in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety as
follows:
“ ‘ Applicable
Margin ’ means, on any day, the applicable per annum
percentage set forth at the appropriate intersection in the table
shown below, based on the Leverage Ratio on the most recent
Determination Date:
|
Level
|
|
Leverage Ratio
|
|
Base Rate Loan
|
|
LIBOR Loan
|
|
Letter of Credit Fees
|
|
I
|
|
<3.00:1.00
|
|
2.25%
|
|
2.25%
|
|
2.25%
|
|
II
|
|
≥3.00:1.00 and
<3.50:1.00
|
|
2.50%
|
|
2.50%
|
|
2.50%
|
|
III
|
|
≥3.50:1.00 and
<4.00:1.00
|
|
2.75%
|
|
2.75%
|
|
2.75%
|
|
IV
|
|
≥4.00:1.00 and
<4.50:1.00
|
|
3.00%
|
|
3.00%
|
|
3.00%
|
|
V
|
|
≥4.50:1.00
|
|
3.25%
|
|
3.25%
|
|
3.25%
|
The Applicable
Margin shall be established as of the last day of each fiscal
quarter of the Borrower (each, a " Determination Date ")
beginning with the receipt by the Administrative Agent of the
Compliance Certificate and the financial statements for the fiscal
quarter ended December 31, 2008 (the " Initial Determination
Date "). Any change in the Applicable Margin
following each Determination Date shall be determined based upon
the information and computations set forth in the financial
statements and Compliance Certificate furnished to the
Administrative Agent pursuant to Section 8.01 , subject
to review and approval of such computations by the Administrative
Agent. Each change in the Applicable Margin shall be
effective as of the Determination Date (including, without
limitation, in respect of LIBOR Loans then outstanding
notwithstanding that such change occurs during an Interest Period),
and shall remain in effect until the next Determination Date for
which a change in the Applicable Margin occurs; provided, however;
if the Borrower shall fail to deliver any required financial
statements or Compliance Certificate within the time period
required by Section 8.01 , the Applicable Margin shall
be the highest percentage amount stated for each Type of Loan as
set forth in the above table for the period beginning on the
relevant Determination Date and ending on the date that the
appropriate financial statements and Compliance Certificate are so
delivered. Notwithstanding the foregoing, Level III
Applicable Margins shall be in effect hereunder until the
determination thereof based upon Borrowers’ financial
statements for the fiscal quarter ending December 31, 2008, unless
(prior to such date) Borrower’s September 30, 2008 financial
statements demonstrate a consolidated Total Leverage Ratio greater
than 4.00:1.00, in which case, the Applicable Margin indicated in
the table above with respect to the corresponding pricing level
shall apply.”
c. The
definition of “Base Rate” in Section 1.01 of the Credit
Agreement is hereby amended and restated in its entirety as
follows:
“ ‘ Base Rate
’ means, with respect to any Base Rate Loan, for any day, the
higher of (a) the Federal Funds Rate for any such day plus 1.00%,
(b) the Prime Rate for such day, or (c) the Floating LIBOR Rate for
such day plus 0.25%. Each change in any interest rate
provided for herein based upon the Base Rate resulting from a
change in the Base Rate shall take effect at the time of such
change in the Base Rate.”
d. The
definition of “LC Commitment” in Section 1.01 of the
Credit Agreement is hereby amended and restated in its entirety as
follows:
“ ‘ LC Commitment
’ at any time means $40,000,000.”
e. Section
2.05 of the Credit Agreement is hereby amended and restated in its
entirety as follows:
“2.05 Commitment Fee
. The Borrower shall pay to the Administrative Agent,
for the account of each Lender holding a Revolving Credit
Commitment, a commitmen