Amendment No. 1 to Amended and Restated Credit Agreement among Windmere-Durable Holdings, Inc., Subsidiaries, Lenders, and NationsBank (Agent)

Contract Categories: Business Finance › Credit Agreements
Summary

This amendment updates the terms of a credit agreement between Windmere-Durable Holdings, Inc., its subsidiaries, several lenders, and NationsBank as agent. The changes include revised financial covenants, such as new definitions for applicable interest margins, limits on revolving credit outstanding, and updated financial ratio requirements. The amendment also imposes a fee for the changes. These modifications are effective as of December 29, 1998, and are binding on all parties involved.

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EX-10.1 3 g65027ex10-1.txt AMDT #1 TO AMDED & RESTD CREDIT AGRMT 4/29/99 1 EXHIBIT 10.1 AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT (this "Agreement") is made and entered into as of this 29th day of December, 1998 by and between WINDMERE-DURABLE HOLDINGS, INC., a Florida corporation (the "Borrower"), EACH OF THE SUBSIDIARIES OF THE BORROWER SIGNATORY HERETO (collectively, the "Guarantors"), the LENDERS SIGNATORY HERETO (the "Lenders") and NATIONSBANK, NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States, in its capacity as agent for the Lenders (the "Agent"). W I T N E S S E T H: WHEREAS, the Borrower, the Agent and the Lenders have entered into an Amended and Restated Credit Agreement dated as of August 7, 1998 (as amended hereby and as from time to time further amended, supplemented or replaced, the "Credit Agreement"); WHEREAS, the Borrower has requested and the Agent and the Lenders have agreed, subject to the terms and conditions of this Agreement, to amend certain financial covenants contained in the Credit Agreement; NOW, THEREFORE, in consideration of the mutual covenants, promises and conditions herein set forth, it is hereby agreed as follows: 1. DEFINITIONS. The term "Credit Agreement" as used herein and in the Credit Agreement and the other Loan Documents shall mean the Credit Agreement as hereby amended and as from time to time further amended or modified. Unless the context otherwise requires, all capitalized terms used herein without definition shall have the respective meanings provided therefor in the Credit Agreement. 2. AMENDMENT TO CREDIT AGREEMENT. Subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as follows: (a) The definition of "Applicable Margin" in Section 1.2 of the Credit Agreement is hereby deleted and the following new definition is inserted in replacement thereof: "Applicable Margin" means that percent per annum set forth below, which shall be based upon the Consolidated Leverage Ratio for the period of four consecutive fiscal quarters most recently ended as specified below: 2
Applicable Margin for Applicable Applicable Applicable Margin Eurodollar Margin for Base Margin for Base for Eurodollar Rate Rate Loans Rate Loans that Rate Loans that Loans that are that are are Revolving are Segments of Revolving Loans or Segments of Loans or Term Loan B Consolidated Segments of Term Term Loan B Segments of Term and Term Tier Leverage Ratio Loan A and Term Loan C Loan A Loan C ---------- ------------------ --------------------- ---------------- ------------------ ------------------ I Equal to or less 1.75% 2.75% .75% 1.75% than 4.00 to 1.00 ---------- ------------------ --------------------- ---------------- ------------------ ------------------ II Greater than 2.00% 2.75% 1.00% 1.75% 4.00 to 1.00 and less than or equal to 4.50 to 1.00 ---------- ------------------ --------------------- ---------------- ------------------ ------------------ III Greater than 2.25% 3.00% 1.25% 2.00% 4.50 to 1.00 and less than or equal to 5.00 to 1.00 ---------- ------------------ --------------------- ---------------- ------------------ ------------------ IV Greater than 2.50% 3.00% 1.50% 2.00% 5.00 to 1.00 and less than or equal to 6.00 to 1.00 ---------- ------------------ --------------------- ---------------- ------------------ ------------------ V Greater than 2.75% 3.375 1.50% 2.00% 6.00 to 1.00 ---------- ------------------ --------------------- ---------------- ------------------ ------------------
The Applicable Margin shall be established at the end of each fiscal quarter of the Borrower (each, a "Determination Date"). Any change in the Applicable Margin following each Determination Date shall be determined based upon the computations set forth in the certificate furnished to the Agent pursuant to SECTION 9.1(A) and (B) hereof, subject to review and confirmation of such computations by the Agent, and shall be effective (the "Effective Date") commencing on the first Business Day next following the date such certificate is received (or, if earlier, the date such certificate was required to be delivered) until the first Business Day following the date on which a new certificate is delivered or is required to be delivered, whichever shall first occur; PROVIDED HOWEVER, if the Borrower shall fail to deliver any such certificate within the time period required by SECTION 9.1 hereof, then the Applicable Margin shall be Tier V until the appropriate certificate is so delivered; and PROVIDED FURTHER, that from December 30, 1998 through the Effective Date first occurring after December 31, 1999, the Applicable Margin shall be as set forth in Tier V. (b) Section 3.1 of the Credit Agreement is hereby amended by adding a new clause (d) at the end thereof which shall read as follows: 2 3 (d) LIMITATION ON REVOLVING CREDIT OUTSTANDINGS. In addition to the limitation on Revolving Credit Outstandings set forth elsewhere in this Agreement, the Borrower agrees that from the Closing Date through December 31, 1999 it shall not permit the amount of Revolving Credit Outstandings on any date to exceed $110,000,000; provided that this limitation on Revolving Credit Outstandings shall remain in place on and after December 31, 1999 if and for so long as any Event of Default has occurred and is continuing. If at any time there shall be Revolving Credit Outstandings in excess of $110,000,000, the Borrower shall immediately make such payments and prepayments as shall be necessary to comply with the restriction contained in this section. (c) Section 10.22(b) of the Credit Agreement is hereby deleted and the following new subsection (b) is inserted in replacement thereof: (b) CONSOLIDATED FIXED CHARGE COVERAGE RATIO. Permit Consolidated Fixed Charge Coverage Ratio to be less than the ratio indicated below at any time during the period indicated: Closing Date through March 31, 1999 .80 to 1.00 April 1, 1999 through June 30, 1999 .60 to 1.00 July 1, 1999 through September 30, 1999 .75 to 1.00 October 1, 1999 through September 30, 2000 1.10 to 1.00 October 1, 2000 and thereafter 1.50 to 1.00 (d) Section 10.22(c) of the Credit Agreement is hereby deleted and the following new subsection (c) is inserted in replacement thereof: (c) CONSOLIDATED INTEREST COVERAGE RATIO. Permit Consolidated Interest Coverage Ratio to be less than the ratio indicated below at any time during the period indicated: 3 4 Closing Date through March 31, 1999 1.80 to 1.00 April 1, 1999 through June 30, 1999 1.60 to 1.00 July 1, 1999 through September 30, 1999 1.70 to 1.00 October 1, 1999 through September 30, 2000 2.25 to 1.00 October 1, 2000 and thereafter 3.00 to 1.00 (e) Section 10.22(d) of the Credit Agreement is hereby deleted and the following new subsection (d) is inserted in replacement thereof: (d) CONSOLIDATED LEVERAGE RATIO. Permit Consolidated Leverage Ratio to be greater than the ratio indicated below at any time during the period indicated: April 1, 1999 through September 30, 1999 6.25 to 1.00 October 1, 1999 through March 31, 2000 5.00 to 1.00 April 1, 2000 through September 30, 2000 4.50 to 1.00 October 1, 2000 through June 30, 2001 3.00 to 1.00 July 1, 2001 through September 30, 2001 3.50 to 1.00 October 1, 2001 and thereafter 3.00 to 1.00 4 5 (f) Section 10.22(e) of the Credit Agreement is hereby deleted and the following new subsection (e) is inserted in replacement thereof: (e) CONSOLIDATED EBITDA. Permit Consolidated EBITDA to be less than the amount indicated below at the date indicated: Fourth fiscal quarter end 1998 $36,000,000 First fiscal quarter end 1999 $39,000,000 3. AMENDMENT FEE. The Borrower agrees to pay to the Agent for the benefit of the Lenders signatory hereto on the effective date of this Agreement an amendment fee (the "Amendment Fee") equal to .20% of the aggregate Commitments of the Lenders signatory hereto, which fee shall be earned as of such date and shall be allocated among the Lenders based upon their respective Commitment. 4. BORROWER'S REPRESENTATIONS AND WARRANTIES. The Borrower hereby represents, warrants and certifies that: (a) The representations and warranties made by it in Article VIII of the Credit Agreement (other than Section 8.6(b) to the extent certain material adverse changes in the condition of the Borrower and its Subsidiaries have been disclosed to the Agent and the Lenders) are true on and as of the date hereof before and after giving effect to this Agreement except that the financial statements referred to in Section 8.6(c) shall be those most recently furnished to each Lender pursuant to Section 9.1(a) and (b) of the Credit Agreement; (b) The Borrower and each Guarantor has the power and authority to execute and perform this Agreement and has taken all action required for the lawful execution, delivery and performance thereof. (c) There has been no material adverse change in the condition, financial or otherwise, of the Borrower and its Subsidiaries since the date of the most recent financial reports of the Borrower delivered under Section 9.1 of the Credit Agreement; (d) No event has occurred and no condition exists which, upon the consummation of the transaction contemplated hereby, constituted a Default or an Event of Default on the part of the Borrower under the Credit Agreement or the Notes either immediately or with the lapse of time or the giving of notice, or both. 5. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relative to such subject matter. None of the terms or conditions of this Agreement may be changed, modified, waived or canceled orally or otherwise, except by writing, signed by all the parties hereto, specifying such change, modification, waiver or cancellation of such terms or conditions, or of any proceeding or succeeding breach thereof. 5 6 6. FULL FORCE AND EFFECT OF AGREEMENT. Except as hereby specifically amended, modified or supplemented, the Credit Agreement and all of the other Loan Documents are hereby confirmed and ratified in all respects and shall remain in full force and effect according to their respective terms. 7. COUNTERPARTS. This Agreement may be executed in any number of counterparts and all the counterparts taken together shall be deemed to constitute one and the same instrument. 8. ENFORCEABILITY. Should any one or more of the provisions of this Agreement be determined to be illegal or unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. 6 7 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their duly authorized officers, all as of the day and year first above written. BORROWER: WINDMERE-DURABLE HOLDINGS, INC. By: /s/ Cindy Solovci ------------------------------- Name: Cindy Solovci ------------------------------- Title: Treasurer ------------------------------ AGENT: NATIONSBANK, NATIONAL ASSOCIATION, as Agent for the Lenders By: /s/ Andrew M. Airheart ------------------------------- Name: Andrew M. Airheart ------------------------------- Title: Senior Vice President ------------------------------ LENDERS: NATIONSBANK, NATIONAL ASSOCIATION By: /s/ Andrew M. Airheart ------------------------------- Name: Andrew M. Airheart ------------------------------- Title: Senior Vice President ------------------------------ ABN AMRO BANK N.V. By: /s/ Deborah Day Orozco ------------------------------- Name: Deborah Day Orozco ------------------------------- Title: Vice President ------------------------------ By: /s/ Robert Lozano ------------------------------- Name: Robert Lozano ------------------------------- Title: Vice President ------------------------------ 7 8 BANKATLANTIC By: /s/ Ana C. Bolduc ------------------------------- Name: Ana C. Bolduc ------------------------------- Title: Senior Vice President ------------------------------ BANK LEUMI LE-ISRAEL By: /s/ Joseph F. Realini ------------------------------- Name: Joseph F. Realini ------------------------------- Title: Vice President ------------------------------ SCOTIABANC INC. By: /s/ Frank F. Sandler ------------------------------- Name: Frank S. Sandler ------------------------------- Title: Relationship Manager ------------------------------ PARIBAS By: ------------------------------- Name: ------------------------------- Title: ------------------------------ By: ------------------------------- Name: ------------------------------- Title: ------------------------------ BARCLAYS BANK PLC By: /s/ Gregory Roll ------------------------------- Name: Gregory Roll ------------------------------- Title: Vice President ------------------------------ 8 9 BHF-BANK ATKIENGESELLSCHAFT By: ------------------------------- Name: ------------------------------- Title: ------------------------------ CREDITANSTALT CORPORATE FINANCE, INC. By: ------------------------------- Name: ------------------------------- Title: ------------------------------ By: ------------------------------- Name: ------------------------------- Title: ------------------------------ ERSTE BANK NEW YORK By: /s/ Arcinee Hovanessian ------------------------------- Name: Arcinee Hovanessian ------------------------------- Title: Vice President ------------------------------ By: /s/ John S. Runnion ------------------------------- Name: John S. Runnion ------------------------------- Title: First Vice President ------------------------------ FLEET BANK, N.A. By: /s/ Thomas J. Levy ------------------------------- Name: Thomas J. Levy ------------------------------- Title: Vice President ------------------------------ IMPERIAL BANK, A CALIFORNIA BANKING CORPORATION By: /s/ Jamie Hamey ------------------------------- Name: Jamie Hamey ------------------------------- Title: Vice President ------------------------------ 9 10 THE LONG-TERM CREDIT BANK OF JAPAN, LTD. By: /s/ Akihiko Haruyama ------------------------------- Name: Akihiko Haruyama ------------------------------- Title: Head of Southeast Region ------------------------------ THE MITSUBISHI TRUST AND BANKING CORPORATION By: /s/ Toshihiro Hayashi ------------------------------- Name: Toshihiro Hayashi ------------------------------- Title: Senior Vice President ------------------------------ NATIONAL BANK OF CANADA By: /s/ Michael Bloomenfeld ------------------------------- Name: Michael Bloomenfeld ------------------------------- Title: Vice President & Manager ------------------------------ SANWA BUSINESS CREDIT CORPORATION By: /s/ Stanley Kaminski ------------------------------- Name: Stanley Kaminski ------------------------------- Title: Vice President ------------------------------ SUMMIT BANK By: ------------------------------- Name: ------------------------------- Title: ------------------------------ 10 11 USTRUST By: /s/ Thomas F. Macina ------------------------------- Name: Thomas F. Macina ------------------------------- Title: Vice President ------------------------------ ALLIANCE INVESTMENT OPPORTUNITIES FUND, L.L.C. By: ALLIANCE INVESTMENT OPPORTUNITIES MANAGEMENT, L.L.C., as Managing Member By: ALLIANCE CAPITAL MANAGEMENT L.P., as Managing Member By: ALLIANCE CAPITAL MANAGEMENT CORPORATION, as General Partner By: /s/ Sheryl Rothman ------------------------------- Name: Sheryl A. Rothman ------------------------------- Title: Vice President ------------------------------ ALLIANCE CAPITAL MANAGEMENT L.P., as Manager on behalf of ALLIANCE CAPITAL FUNDING, L.L.C. By: ALLIANCE CAPITAL MANAGEMENT CORPORATION, General Partner of Alliance Capital Management L.P. By: /s/ Sheryl Rothman ------------------------------- Name: Sheryl A. Rothman ------------------------------- Title: Vice President ------------------------------ 11 12 BALANCED HIGH-YIELD FUND I LTD By: BHF-BANK AKTIENGESELLSCHAFT, acting through its New York Branch, as attorney-in-fact By: /s/ Steven Alexander ------------------------------- Name: Steven Alexander ------------------------------- Title: Assistant Treasurer ------------------------------ By: /s/ Peter Leibman ------------------------------- Name: Peter Leibman ------------------------------- Title: Assistant Treasurer ------------------------------ BHF-BANK AKTIENGESELLSCHAFT By: /s/ Steven Alexander ------------------------------- Name: Steven Alexander ------------------------------- Title: Assistant Treasurer ------------------------------ By: /s/ Peter Leibman ------------------------------- Name: Peter Leibman ------------------------------- Title: Assistant Treasurer ------------------------------ INDOSUEZ CAPITAL FUNDING III, LIMITED By: INDOSUEZ CAPITAL as Portfolio Advisor By: /s/ Francoise Berthelot ------------------------------- Name: Francoise Berthelot ------------------------------- Title: Vice President ------------------------------ BANK AUSTRIA CREDITANSTALT CORPORATE FINANCE, INC., f.k.a. Creditanstalt Corporate Finance, Inc. By: /s/ Scott Kray ------------------------------- Name: Scott Kray ------------------------------- Title: Vice President ------------------------------ By: /s/ Gary Andresen ------------------------------- Name: Gary Andresen ------------------------------- Title: Associate ------------------------------ 12 13 NATIONSBANC MONTGOMERY SECURITIES LLC By: ------------------------------- Name: ------------------------------- Title: ------------------------------ ARES LEVERAGED INVESTMENT FUND, L.P. By: ARES Management, L.P. By: /s/ Michelle M. Hsu ------------------------------- Name: Michelle Hsu Title: Vice President ARES LEVERAGED INVESTMENT FUND II, L.P. By: ARES Management II, L.P. By: /s/ Michelle M. Hsu ------------------------------- Name: Michelle Hsu Title: Vice President 13 14 THE UNDERSIGNED GUARANTORS HEREBY ACKNOWLEDGE AND CONSENT TO THIS AMENDMENT OF THE CREDIT AGREEMENT AND REAFFIRM THEIR OBLIGATIONS UNDER THE FACILITY GUARANTY THIS ___TH DAY OF DECEMBER, 1998: WINDMERE CORPORATION By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary/Treasurer ------------------------------ WINDMERE HOLDINGS CORPORATION By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary ------------------------------ WINDMERE HOLDINGS CORPORATION II By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary ------------------------------ WINDMERE FAN PRODUCTS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Treasurer ------------------------------ JERDON PRODUCTS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary ------------------------------ 14 15 CONSUMER PRODUCTS AMERICAS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary ------------------------------ EDI MASTERS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Assistant Vice President ------------------------------ WINDMERE INNOVATIVE PET PRODUCTS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Treasurer ------------------------------ BAY BOOKS & TAPES, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary ------------------------------ FORTUNE PRODUCTS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Treasurer ------------------------------ HOUSEHOLD PRODUCTS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary and Treasurer ------------------------------ 15 16 HP DELAWARE, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Treasurer ------------------------------ HP AMERICAS, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Treasurer ------------------------------ HPG LLC By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Treasurer ------------------------------ HP INTELLECTUAL CORP By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary and Treasurer ------------------------------ WD DELAWARE, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary ------------------------------ WD DELAWARE II, INC. By: /s/ Cindy Solovei ------------------------------- Name: Cindy Solovei ------------------------------- Title: Secretary ------------------------------ 16