Exhibit 10.1
NINTH AMENDMENT TO REVOLVING
CREDIT AGREEMENT
This Ninth Amendment to Revolving Credit
Agreement (“Amendment”) is made as of February 19, 2009
(“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,
Seventh Amendment to Revolving Credit Agreement dated as of
December 19, 2007, and Eighth Amendment to Revolving Credit
Agreement dated as of October 22, 2008 (“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:
“ ‘ Impaired Lender ’
shall mean a Lender (a) that has failed to fund its Percentage
Share of any Aggregate Revolving Credit Commitments or to purchase
participations in any Swing Line Loan or any Letters of Credit, (b)
that has otherwise failed to pay to the Administrative Agent or any
other Lender any other amount required to be paid by it under the
terms of this Agreement or any other Loan Document, unless such
Lender is disputing such obligation to pay any such amount in good
faith, (c) which the Administrative Agent, the Issuing Bank or
Swing Line Lender believes, in good faith, has defaulted in
fulfilling its obligations under any other syndicated
credit facilities or as participant in any other credit facility,
(d) that has been, or is controlled by any Person which has been,
determined to be insolvent or that has become subject to a
bankruptcy or other similar proceeding, or (e) any material assets
or management of which has been taken over by a governmental
agency.”
“ ‘ Maintenance Capital
Expenditures ’ shall mean any expenditures for any
purchase or other acquisition of any equipment which are made for
the purpose of replacing equipment in operation and landfill cell
construction on sites in operation by the Borrower and its
Consolidated Subsidiaries (now owned or hereafter
acquired).”
“ ‘ Ninth Amendment Effective
Date ’ shall mean the effective date of the Ninth
Amendment to Revolving Credit Agreement among the Borrower, Agent
and the Lenders determined pursuant to Paragraph 3a of such
amendment.”
“ ‘ Tangible Net Worth
’ means, as at any date, Net Worth less goodwill and similar
intangible assets.”
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%
|
|
2.50%
|
|
2.50%
|
|
II
|
|
≥ 3.00:1.00 and
<3.50:1.00
|
|
2.50%
|
|
2.75%
|
|
2.75%
|
|
III
|
|
≥ 3.50:1.00 and
<4.00:1.00
|
|
2.75%
|
|
3.00%
|
|
3.00%
|
|
IV
|
|
≥ 4.00:1.00 and
<4.50:1.00
|
|
3.00%
|
|
3.25%
|
|
3.25%
|
|
V
|
|
≥4.50:1.00
|
|
3.25%
|
|
3.50%
|
|
3.50%
|
The Applicable
Margin shall be established as of the date of the Administrative
Agent’s receipt of the information and
computations set forth in the financial statements and Compliance
Certificate furnished to the Administrative Agent pursuant to
Section 8.01 (each, a " 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
required delivery date of the financial statements and Compliance
Certificate as provided in Section 8.01 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.”
c. The
definition of “Adjusted EBIT Debt Service Ratio” in
Section 1.01 of the Credit Agreement is hereby amended and restated
in its entirety as follows:
“ ‘ Pro Forma Adjusted
EBITDA Debt Service Ratio ’ means, with respect to the
Borrower and its Consolidated Subsidiaries, the ratio of
(i) Pro Forma Adjusted EBITDA for the four fiscal quarters
ending on such date minus cash income tax expense for such
period, to (ii) cash interest expense, plus (x) all
scheduled payments on capitalized leases paid or payable during
such period, plus (y) all scheduled principal payments of
Debt paid or payable during such period, excluding payments made on
the Revolving Credit Loans, financed insurance premiums paid, and
any principal payments paid in advance of maturity which have been
previously waived by the Lenders during such
period.”
d. The
definition of “Pro Forma Adjusted EBITDA” in Section
1.01 of the Credit Agreement is hereby amended and restated in its
entirety as follows:
“ ‘ Pro Forma Adjusted
EBITDA ’ means, for any period, the sum of, without
duplication, (a) EBITDA for such period, plus
(b) non-recurring non-cash expenses or charges during such
period, plus (c) historical results for any acquisitions
which are consummated on or after the Closing Date, adjusted for
the lesser of: (x) the sum of (without duplication): (i)
add-backs permitted pursuant to Article 11, Regulation S-X of the
Securities Act of 1933 for the 12-month period then ended,
plus (ii) the effect of Additional Volume and/or
Increased Use, as applicable, and itemized direct cost savings that
will be achieved as a result of, or in connection with, any
acquisitions consummated after the Closing Date, plus (iii)
the Prior Acquisition Add-Back, or (y) fifteen percent (15%) of the
Pro Forma Adjusted EBITDA before the inclusion of items (x)(i),
(x)(ii), and (x)(iii), plus (d) non-cash charges for
increases in closure and post-closure obligations, plus
(e) non-cash charges associated with the disposal contract
between Waste Management, Inc. and WCA Waste Systems, plus
(f) non-cash charges (or minus non-cash benefits, if
applicable) reflecting the adoption of SFAS No. 123 (and all
amendments thereto), plus (g) all non-cash charges related
to restricted stock and redeemable stock interests granted to
officers, directors and employees, plus (h) non-cash
expense (or minus non-cash income, if applicable) associated
with FAS 133 treatment of any Hedging Agreements, plus
(i) non-cash losses on asset sales in an aggregate amount not
to exceed $500,000.”
e. The
following is added as new subsection (d) to Section 6.02 of the
Credit Agreement:
“(d) if
any Lender is an Impaired Lender, the Swing Line Lender and/or
Issuing Lender has entered into arrangements satisfactory to it to
eliminate the Swing Line Lender’s and/or Issuing
Lender’s risk, as applicable, with respect to the
participation in Swing Line Loans and Letters of Credit by all such
Impaired Lenders, including creation of a cash collateral account
or delivery of other security to assure payment of such Impaired
Lender’s Percentage Share of all outstanding Swing Line Loans
and Letters of Credit; provided that the foregoing condition shall
not preclude the obligation of the Lenders to make Revolving Credit
Loans, or prohibit the Borrower from obtaining Revolving Credit
Loans, to fund such cash collateral account.”
f. Section
9.13 of the Credit Agreement is hereby amended and restated in its
entirety as follows:
“9.13
Tangible Net Worth . The Borrower will
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