Three Months Ended

EX-4.2 3 w71525exv4w2.htm EXHIBIT 4.2 exv4w2
Exhibit 4.2
THIRD AMENDMENT TO CREDIT AGREEMENT
     This THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of July 28, 2008 among AIRGAS, INC., a Delaware corporation (“Airgas” and also a “Borrower”), AIRGAS CANADA INC., a Canada corporation, and RED-D-ARC LIMITED, an Ontario corporation (each a “Canadian Borrower” and together with Airgas and the Foreign Borrowers executing this Amendment, the “Borrowers”), the Guarantors signatory hereto, the Lenders signatory hereto BANK OF AMERICA, N.A., as administrative agent for the Lenders (in such capacity, the “U.S. Agent”), and THE BANK OF NOVA SCOTIA, as Canadian administrative agent for the Lenders (in such capacity, the “Canadian Agent”). Capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Credit Agreement (as defined below).
RECITALS
     WHEREAS, the Borrowers, the Guarantors, the Lenders and the Agents are parties to that certain Credit Agreement dated as of July 25, 2006 (as amended pursuant to that certain First Amendment to Credit Agreement, dated as of July 3, 2007, and that certain Second Amendment to Credit Agreement, dated as of April 2, 2008, the “Credit Agreement”).
     WHEREAS, the Required Lenders have agreed to amend certain terms of the Credit Agreement on the terms, and subject to the conditions, set forth below.
     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
     1. Amendments to Credit Agreement. Effective upon satisfaction of the conditions precedent set forth in Section 3 below, the Credit Agreement is hereby amended as follows:
     (a) The Credit Agreement (but not the Schedules and Exhibits thereto, except as otherwise provided in this Amendment) is hereby amended and restated as set forth in Annex I attached hereto.
     (b) Schedules 1.1D, 2.1(a) and 8.1 to the Credit Agreement are hereby deleted and new Schedules 1.1D, 2.1(a) and 8.1 in the forms of Schedules 1.1D, 2.1(a) and 8.1 attached to Annex I hereof, respectively, are substituted therefor.
     (c) Exhibits 2.1(b)(i), 4.2, 7.12 and 11.3 to the Credit Agreement are hereby deleted and new Exhibits 2A.1(b)(i), 4.2, 7.12 and 11.3 in the forms of Exhibits 2A.1(b)(i), 4.2, 7.12 and 11.3 attached to Annex I hereof, respectively, are substituted therefor.
     (d) New Exhibits 2B.1(b)(i), 2B.5(a) and 2B.5(b) in the forms of Exhibits 2B.1(b)(i), 2B.5(a) and 2B.5(b) attached to Annex I hereof, respectively, are hereby added to the Credit Agreement.

 


 

     2. Amendments to Intercreditor Agreement. Effective upon satisfaction of the conditions precedent set forth in Section 3 below, the penultimate paragraph of Section 1 of the Intercreditor Agreement is hereby amended as follows:
     In calculating each Lender’s Pro Rata Share, all obligations owed to a Lender in Canadian Dollars or a Foreign Currency shall be converted to U.S. Dollars at the U.S. Dollar Equivalent in effect as of the date each Lender’s Pro Rata Share is calculated. Any amounts received hereunder by the U.S. Agent in Canadian Dollars or a Foreign Currency shall be converted to U.S. Dollars at the U.S. Dollar Equivalent in effect as of the date received by the U.S. Agent.
     3. Effectiveness; Conditions Precedent. This Amendment shall become effective upon receipt by the U.S. Agent of the following:
     (a) copies of this Amendment duly executed by the Credit Parties, the Required Lenders and each Foreign Currency Lender;
     (b) subject to Section 11 hereof, with respect to each Foreign Borrower executing this Amendment, all documents the U.S. Agent may reasonably request relating to the existence and good standing of each such Foreign Borrower, the corporate or other necessary authority of each such Foreign Borrower for and the validity of the Credit Documents, and any other matters relevant thereto, all in form and substance reasonably satisfactory to the U.S. Agent; and
     (c) with respect to each Foreign Borrower executing this Amendment, (i) a legal opinion of Cravath, Swaine & Moore LLP, and (ii) a legal opinion of foreign counsel to each Foreign Borrower (other than Immaterial Subsidiaries) executing this Amendment, each in form and substance reasonably satisfactory to the U.S. Agent.
     4. Construction. This Amendment is a Credit Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Credit Agreement.
     5. Representations and Warranties. Each Credit Party hereby represents and warrants that (i) each Credit Party that is party to this Amendment: (a) has the requisite corporate power and authority to execute, deliver and perform this Amendment, as applicable and (b) is duly authorized to, and has been authorized by all necessary corporate action, to execute, deliver and perform this Amendment, (ii) the representations and warranties contained in Article VI of the Credit Agreement are, subject to the limitations set forth therein, true and correct in all material respects on and as of the date hereof upon giving effect to this Amendment as though made on and as of such date (except for those which expressly relate to an earlier date) unless the failure to be so true and correct would not be reasonably expected to have a Material Adverse Effect, (iii) no Default or Event of Default exists under the Credit Agreement on and as of the date hereof upon giving effect to this Amendment and (iv) as of the date hereof, the Immaterial Foreign Subsidiaries are Airgas, S.A. de C.V.; Airgas West, S.A. de C.V.; Red-D-Arc, S.A. de C.V.; and “Airgas Sakhalin” Limited Liability Company.
     6. Acknowledgment. The Guarantors acknowledge and consent to all of the terms and conditions of this Amendment and agree that this Amendment does not operate to reduce or discharge the Guarantors’ obligations under the Credit Agreement or the other Credit Documents. The Guarantors further acknowledge and agree that the Guarantors have no claims, counterclaims, offsets, or defenses to the Credit Documents and the performance of the Guarantors’ obligations thereunder or if the Guarantors did have any such claims, counterclaims, offsets or defenses to the Credit Documents or any transaction related to the

2


 

Credit Documents, the same are hereby waived, relinquished and released in consideration of the Lenders’ execution and delivery of this Amendment.
     7. Counterparts. This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement.
     8. Binding Effect. This Amendment, the Credit Agreement and the other Credit Documents embody the entire agreement between the parties and supersede all prior agreements and understandings, if any, relating to the subject matter hereof. These Credit Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. Except as expressly modified and amended in this Amendment, all the terms, provisions and conditions of the Credit Documents shall remain unchanged and shall continue in full force and effect.
     9. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
     10. Severability. If any provision of this Amendment is determined to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.
     11. Foreign Borrowers. The parties hereto hereby confirm that, with effect from the date hereof, each of the Subsidiaries identified on the signature pages hereto as a “Foreign Borrower” shall be designated as a “Foreign Borrower” for purposes of the Credit Agreement (as amended by this Amendment) and shall have all rights, obligations, duties and liabilities of a Foreign Borrower thereunder vis-à-vis each of the other parties to the Credit Agreement (as amended by this Amendment). Each such Foreign Borrower confirms its acceptance of, and consents to, all representations and warranties, covenants, and other terms and provisions of the Credit Agreement (as amended by this Amendment), including, without limitation, Section 11.5 thereof. Each such Foreign Borrower (together with Airgas) may receive Foreign Currency Loans for its account on the terms and conditions set forth in the Credit Agreement (as amended by this Amendment). Notwithstanding the foregoing, to the extent that any of the documentation described in Section 3(b) with respect to a Foreign Borrower is not delivered on the date of this Amendment, such Foreign Borrower shall not be permitted to request (nor shall the Foreign Currency Lenders have any obligation to lend to such Foreign Borrower) Foreign Currency Loans under the Credit Agreement until such time as such documentation has been delivered.
[remainder of page intentionally left blank]

3


 

     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered and this Amendment shall be effective as of the date first above written.
         
BORROWERS AIRGAS, INC.
 
 
  By:   /s/ Joseph C. Sullivan    
  Name:     Joseph C. Sullivan   
  Title:     Vice President   
 
         
  AIRGAS CANADA INC., as a Canadian Borrower and a Foreign

Borrower
 
 
  By:   /s/ Thomas M. Smyth    
  Name:     Thomas M. Smyth   
  Title:     Vice President   
 
         
  RED-D-ARC LIMITED, as a Canadian Borrower and a Foreign Borrower
 
 
  By:   /s/ Thomas M. Smyth    
  Name:     Thomas M. Smyth   
  Title:     Vice President   
 
         
  AIRGAS, S.A. DE C.V., as a Foreign Borrower
 
 
  By:   /s/ Mario Adolfo Galvan Ordaz    
  Name:     Mario Adolfo Galvan Ordaz   
  Title:     Attorney In Fact   
 
         
  AIRGAS WEST, S.A. DE C.V., as a Foreign Borrower
 
 
  By:   /s/ Joseph C. Sullivan    
  Name:     Joseph C. Sullivan   
  Title:     Vice President   
 
         
  RED-D-ARC, S.A. DE C.V., as a Foreign Borrower
 
 
  By:   /s/ Joseph C. Sullivan    
  Name:     Joseph C. Sullivan   
  Title:     Vice President   
 
         
  RED-D-ARC (UK) LIMITED, as a Foreign Borrower
 
 
  By:   /s/ Joseph C. Sullivan    
  Name:     Joseph C. Sullivan   
  Title:     Vice President   
 

 


 

         
  RED-D-ARC (NETHERLANDS) B.V., as a Foreign Borrower
 
 
  By:   /s/ Joseph C. Sullivan    
  Name:     Joseph C. Sullivan   
  Title:     Vice President   
 
         
  “AIRGAS SAKHALIN” Limited Liability Company, as a Foreign Borrower
 
 
  By:   /s/ Joseph C. Sullivan    
  Name:     Joseph C. Sullivan   
  Title:     Vice President   

 


 

         
         
U.S. SUBSIDIARY
       
GUARANTORS:   AIRGAS-EAST, INC.
AIRGAS-GREAT LAKES, INC.
AIRGAS-MID AMERICA, INC.
AIRGAS-NORTH CENTRAL, INC.
AIRGAS-SOUTH, INC.
AIRGAS-INTERMOUNTAIN, INC.
AIRGAS-MID SOUTH, INC.
AIRGAS-NORPAC, INC.
AIRGAS-NORTHERN CALIFORNIA & NEVADA, INC.
AIRGAS-SOUTHWEST, INC.
AIRGAS-WEST, INC.
AIRGAS-SAFETY, INC.
AIRGAS CARBONIC, INC.
AIRGAS SPECIALTY GASES, INC.
NITROUS OXIDE CORP.
RED-D-ARC, INC.
AIRGAS DATA, LLC
MISSOURI RIVER HOLDINGS, INC.
AIRGAS INVESTMENTS, INC.
AIRGAS SPECIALTY PRODUCTS, INC.
WORLDWIDE WELDING, INC.,
AIRGAS MERCHANT HOLDINGS, INC.
AIRGAS MERCHANT GASES, LLC,
NATIONAL WELDERS SUPPLY COMPANY, INC.
 
       
 
  By:   /s/ Thomas M. Smyth
 
       
 
  Name:   Thomas M. Smyth
 
  Title:   Vice President

 


 

         
U.S. AGENT:   BANK OF AMERICA, N.A.,
 
       
 
  By:   /s/ Bridgett J. Manduk
 
       
 
  Name:   Bridgett J. Manduk
 
  Title:   Assistant Vice President

 


 

         
CANADIAN AGENT:   THE BANK OF NOVA SCOTIA
 
       
 
  By:   /s/ James J. Rhee
 
       
 
  Name:   James J. Rhee
 
  Title:   Director
 
       
 
  By:   /s/ Vik Sidhu
 
       
 
  Name:   Vik Sidhu
 
  Title:   Associate

 


 

         
LENDERS:   BANK OF AMERICA, N.A.
 
       
 
  By:   /s/ Edwin B. Cox, Jr.
 
       
 
  Name:   Edwin B. Cox, Jr.
 
  Title:   Senior Vice President
 
       
    BANK OF AMERICA, N.A. (CANADA BRANCH)
 
       
 
  By:   /s/ Medina Sales de Andrade
 
       
 
  Name:   Medina Sales de Andrade
 
  Title:   Vice President
 
       
    BANK OF AMERICA MEXICO, S.A. INSTITUCION DE BANCA MULTIPLE GRUPO FINANCIERO BANK OF AMERICA
 
       
 
  By:   /s/ Jose Gomez
 
       
 
  Name:   Jose Gomez Gerzido Obregan
 
  Title:   Attorney In Fact
 
       
 
  By:   /s/ Gerzido Obregan
 
       
 
  Name:   Gerzido Obregan
 
  Title:   Attorney In Fact

 


 

         
  THE BANK OF NEW YORK MELLON
 
 
  By:   /s/ William M. Feathers    
  Name:     William M. Feathers   
  Title:     Vice President   
 

 


 

         
  THE BANK OF TOKYO-MITSUBISHI
UFJ, LTD., NY BRANCH
 
 
  By:   /s/ Maria Ferradas    
  Name:     Maria Ferradas   
  Title:     Authorized Signatory   
 

 


 

         
  JPMORGAN CHASE BANK , N.A.
 
 
  By:   /s/ James A. Knight    
  Name:     James A. Knight   
  Title:     Vice President   
 
         
  JPMORGAN CHASE BANK , N.A., TORONTO
 
 
  By:   /s/ Steve Voight    
  Name:     Steve Voight   
  Title:     Senior Vice President   
 
         
  J.P. MORGAN EUROPE LIMITED
 
 
  By:   /s/ Alastair A. Stevenson    
  Name:     Alastair A. Stevenson   
  Title:     Managing Director   
 
         
  BANCO J.P. MORGAN, S.A.INSTITUCION DE
BANCA MULTIPLE J.P. MORGAN GRUPO FINANCIERO
 
 
  By:   /s/ Raul Freyre Porro    
  Name:     Raul Freyre Porro   
  Tittle: Vice President   
 

 


 

         
  WACHOVIA BANK, N.A.
 
 
  By:   /s/ Anne Sheahan    
  Name:     Anne Sheahan   
  Title:     Vice President   
 

 


 

         
  PNC BANK NA
 
 
  By:   /s/ Meredith Jermann    
  Name:     Meredith Jermann   
  Title:     Vice President   
 

 


 

         
  THE BANK OF NOVA SCOTIA
 
 
  By:   /s/ Timothy P. Finneran    
  Name:     Timothy P. Finneran   
  Title:     Managing Director   
 

 


 

         
  NATIONAL CITY BANK
 
 
  By:   /s/ Debra W. Riefner    
  Name:     Debra W. Riefner   
  Title:     Senior Vice President   
 

 


 

         
  BANK OF HAWAII
 
 
  By:   /s/ Marc Adelberger    
  Name:     Marc Adelberger   
  Title:     Vice President   
 

 


 

         
  CALYON, NEW YORK BRANCH
 
 
  By:   /s/ Yuri Muzichenki    
  Name:     Yuri Muzichenko   
  Title:     Director   
 
         
     
  By:   /s/ Mike Madnick    
  Name:     Mike Madnick   
  Title:     Managing Director   

 


 

         
         
  GOLDMAN SACHS CREDIT PARTNERS L.P.
 
 
  By:   /s/ Andrew Caditz    
  Name:     Andrew Caditz   
  Title:     Authorized Signatory   
 

 


 

         
  SUMITOMO MITSUI BANKING CORP.,
NEW YORK
 
 
  By:   /s/ David A. Buck    
  Name:     David A. Buck   
  Title:     Senior Vice President   

 


 

         
  BRANCH BANKING AND TRUST CO.
 
 
  By: /s/ Troy R. Weaver    
  Name:    Troy R. Weaver   
  Title:     Senior Vice President   

 


 

         
  BANK LEUMI USA
 
 
  By:   /s/ Joung Hee Hong    
  Name:     Joung Hee Hong   
  Title:     First Vice President   
 

 


 

         
  BARCLAYS BANK PLC
 
 
  By:   /s/ Douglas Bernegger    
  Name:     Douglas Bernegger   
  Title:     Director   
 

 


 

         
  SUNTRUST BANK
 
 
  By:   /s/ Mark A. Flatin    
  Name:     Mark A. Flatin   
  Title:     Managing Director   

 


 

         
         
  BAYERISCHE LANDESBANK,
NEW YORK BRANCH
 
 
  By:   /s/ Stuart Schulman    
  Name:     Stuart Schulman   
  Title:     Senior Vice President   
 
         
     
  By:   /s/ Georgina Fiordalisi, CFA    
  Name:     Georgina Fiordalisi, CFA    
  Title:     Vice President   
 

 


 

         
  FIFTH THIRD BANK
 
 
  By:   /s/ Randolph J. Stierer    
  Name:     Randolph J. Stierer   
  Title:     Vice President   
 

 


 

         
  FORTIS CAPITAL CORP.
 
 
  By:   /s/ John W. Deegan    
  Name:     John W. Deegan   
  Title:     Director &Group Head   
 
         
     
  By:   /s/ John Spillane    
  Name:     John Spillane   
  Title:     Vice President   

 


 

         
         
  HSBC BANK USA, NATIONAL ASSOCIATION
 
 
  By:   /s/ Collen Glackin    
  Name:     Colleen Glackin   
  Title:     Vice President   
 

 


 

         
  WELLS FARGO BANK, NATIONAL ASSOCIATION
 
 
  By:   /s/ James R. Bednark    
  Name:     James R. Bednark   
  Title:     Senior Vice President   
 

 


 

         
  REGIONS BANK
 
 
  By:   /s/ David L. Waller    
  Name:     David L. Waller   
  Title:     Senior Vice President   
 

 


 

         
  US BANK, NATIONAL ASSOCIATION
 
 
  By:   /s/ Michael P. Dickman    
  Name:     Michael P. Dickman   
  Title:     Vice President   
 
         
     
  By:   /s/ Kenneth Fieler    
  Name:     Kenneth Fieler   
  Title:     Assistant Vice President   

 


 

         
         
  COMERICA BANK
 
 
  By:   /s/ Liesl Eckhardt    
  Name:     Liesl Eckhardt   
  Title:     Assistant Vice President   
 

 


 

         
  CHANG HWA COMMERCIAL BANK, LTD.,
NEW YORK BRANCH
 
 
  By:   /s/ Jim C.Y. Chen    
  Name:     Jim C.Y.Chen   
  Title:     Vice President & General Manager   

 


 

         
  E. SUN COMMERCIAL BANK., LTD.
LOS ANGELES BRANCH
 
 
  By:   /s/ Edward Chen    
  Name:     Edward Chen   
  Title:     Vice President & Deputy General Manager   
 

 


 

         
  BANK OF CHINA
 
 
  By:   /s/ William W. Smith    
  Name:     William W. Smith   
  Title:     Deputy General Manager