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EXHIBIT 99.1
EXECUTION COPY
FIRST AMENDMENT
TO
REVOLVING CREDIT AGREEMENT
This FIRST
AMENDMENT (this "Amendment"), dated as of May 18, 2005, to that
certain Revolving Credit Agreement, dated
as of May 19, 2004 (as modified and
supplemented and in effect from time to
time, the "Credit Agreement"), among The
Yankee Candle Company, Inc., a corporation
organized under the laws of
Massachusetts (the "Borrower"), Citizens
Bank of Massachusetts and the other
lending institutions from time to time
party thereto (collectively, the
"Lenders") and Citizens Bank of
Massachusetts as agent for itself and such other
lending institutions (the "Administrative
Agent").
WHEREAS,
the Borrower has requested that the Administrative Agent and
the
Lenders agree to amend certain of the terms
and provisions of the Credit
Agreement, as specifically set forth in
this Amendment.
NOW,
THEREFORE, in consideration of the foregoing, and for other good
and
valuable consideration, the receipt and
sufficiency of which are hereby
acknowledged, the parties hereby agree as
follows:
1.
DEFINITIONS. Capitalized terms used herein without definition
shall
have the meanings assigned to such terms in
the Credit Agreement.
2.
AMENDMENTS TO DEFINITIONS. Section 1.1 of the Credit Agreement
is
hereby amended as follows:
(a) The
definition of "Applicable Margin" is hereby amended by deleting
the table contained therein and
substituting in lieu thereof the following:
<TABLE>
<CAPTION>
PRIME
TRANCHE A
LETTER OF TRANCHE A
TOTAL CAPITALIZATION
RATE
LIBOR
CREDIT
COMMITMENT
LEVEL
RATIO
LOANS
RATE LOANS
FEES
FEE
-----
-----
-----
----------
----
---
<S> <C>
<C>
<C>
<C>
<C>
I Greater
than 0.40:1.00
0.00%
0.850%
0.850%
0.200%
II Less than
or equal to
0.40:1.00 but
greater than or equal
to 0.25:1.00
0.00%
0.625%
0.625%
0.150%
III Less than
0.25:1.00
0.00%
0.500%
0.500%
0.125%
</TABLE>
(b) The
definition of "Fee Letter" is hereby deleted and replaced with
the
following:
"Fee Letter. The fee letter dated as of April 25, 2005, as
amended
and in effect from time to time, among the Borrower, Citizens
and
RBS Securities Corporation, which fee letter replaces and
supercedes
the fee letter dated as of March 25, 2004, as amended, between
the
Borrower and Citizens."
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(c) The
definition of "Permitted Acquisitions" is hereby amended by
deleting clause (xii) contained therein and
substituting in lieu thereof the
following::
"(xii) the aggregate amount of the purchase price for all
Permitted
Acquisitions consummated on or after the First Amendment
Effective
Date shall not exceed $65,000,000."
(d) The
definition of "Tranche A Loan Maturity Date" is hereby amended
by
deleting the date "May 19, 2007" contained
therein and substituting in lieu
thereof the date "May 18, 2010".
(e) The
following definitions are hereby added to Section 1.1 of the
Credit Agreement and inserted in correct
alphabetical order:
"First Amendment Effective Date. May 18, 2005.
Lead Arranger and Bookrunner. RBS Securities Corporation."
(f) The
following definitions are hereby deleted from Section 1.1 of
the
Credit Agreement and all references to such
defined terms contained in the
Credit Agreement are hereby deleted: "Total
Tranche B Commitment"; "Tranche B
Commitment"; "Tranche B Commitment Fee";
"Tranche B LIBOR Rate Loans"; "Tranche
B Loans"; "Tranche B Loan Maturity Date";
"Tranche B Loan Request"; "Tranche B
Notes"; and "Tranche B Note Record".
3.
AMENDMENTS TO NEGATIVE COVENANTS.
(a)
Section 9.3(h) of the Credit Agreement is hereby amended by
deleting
the proviso contained therein and
substituting in lieu thereof the following:
"provided that the consideration paid by the Borrower or any of
its
Subsidiaries in all such transactions on and after the First
Amendment Effective Date does not exceed in the aggregate
$65,000,000"
(b)
Section 9.4(b) of the Credit Agreement is hereby amended by
deleting
the text "for such Fiscal Year" contained
therein and substituting in lieu
thereof the text "for the prior Fiscal
Year"
4.
AMENDMENTS TO FINANCIAL COVENANTS.
(a)
Section 10.1 of the Credit Agreement is hereby deleted and
replaced
with the following:
"10.1. LEVERAGE RATIO. The Borrower shall not permit the
Leverage
Ratio as of the end of any Reference Period to exceed
2.25:1.00."
(b)
Section 10.3 of the Credit Agreement is hereby deleted and
replaced
with the following:
"10.3. CONSOLIDATED NET WORTH. The Borrower will not permit
Consolidated Net Worth to be less than $1.00 at any time."
5.
AMENDMENT TO OTHER AGENTS. Section 14.12 of the Credit Agreement
is
hereby amended by deleting the text "sole
arranger" contained therein and
substituting in lieu thereof the text "Lead
Arranger and Bookrunner".
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6. GLOBAL
AMENDMENT TO CREDIT AGREEMENT. The text contained in Sections
2.1.2, 2.2.2, 2.3.2, 2.4.2, 2.5(c), 2.6.2,
3.1.2 and 3.2.2 of the Credit
Agreement (including all section headings
contained therein) is hereby deleted
and replaced, in each case, with the text
"INTENTIONALLY OMITTED."
7.
AMENDMENT TO SCHEDULES. (a) Schedule 1 to the Credit Agreement
is
hereby deleted and replaced with Schedule 1
attached hereto and (b) Schedule 9.3
to the Credit Agreement is hereby deleted
and replaced with Schedule 9.3
attached hereto.
8.
AMENDMENT TO FACING PAGE. The facing page of the Credit Agreement
is
hereby amended by deleting the text "and
sole lead arranger" and inserting the
following text at the end of the facing
page:
"and RBS SECURITIES CORPORATION, as Lead Arranger and
Bookrunner".
9.
AFFIRMATION AND ACKNOWLEDGMENT. The Borrower hereby ratifies
and
confirms all of its Obligations to the
Lenders, including, without limitation,
the Loans, the Notes and the other Loan
Documents, and the Borrower hereby
affirms its absolute and unconditional
promise to pay to the Lenders all
Obligations under the Credit Agreement as
amended hereby.
10.
REPRESENTATIONS AND WARRANTIES. The Borrower hereby represents
and
warrants to the Lenders as follows:
(a) The
execution and delivery by the Borrower of this Amendment, and
the
performance by the Borrower of its
obligations and agreements under this
Amendment and the Credit Agreement as
amended hereby, are within the corporate
authority of the Borrower and, have been
duly authorized by all necessary
corporate proceedings on behalf of the
Borrower, and do not contravene any
provision of law, statute, rule or
regulation to which the Borrower is subject
or the Borrower's charter, other
incorporation papers, by-laws or any stock
provision or any amendment thereof or of
any agreement or other instrument
binding upon the Borrower.
(b) This
Amendment and the Credit Agreement as amended hereby constitute
legal, valid and binding obligations of the
Borrower, enforceable in accordance
with their respective terms, except as
limited by bankruptcy, insolvency,
reorganization, moratorium or other laws
relating to or affecting generally the
enfo