Amendment No. 4 to Credit Agreement among Applied Extrusion Technologies, Inc. and Lenders

Summary

This amendment updates the existing credit agreement between Applied Extrusion Technologies, Inc. and several lenders, including JPMorgan Chase Bank, LaSalle Business Credit, Fleet National Bank, PNC Bank, Wachovia Bank, and Provident Bank. The amendment specifically changes certain financial covenant ratios for a defined period and confirms that the company meets all required representations and warranties. The amendment becomes effective once signed by the company and a majority of the lenders.

EX-10.5 7 dex105.txt AMENDMENT NO. 4 TO CREDIT AGREEMENT Exhibit 10.5 CONFORMED COPY AMENDMENT NO. 4 AMENDMENT NO. 4 (the "Amendment") dated as of March 30, 2002 of the Credit Agreement dated as of April 7, 1994 and amended and restated as of March 15, 1999, as amended by Waiver and Amendment No. 1 dated as of December 16, 1998, further amended and restated as of March 15, 1999, further amended by Amendment No. 1 dated as of April 23, 1999, further amended and restated as of April 12, 2000 and September 30, 2000, further amended by Amendment No. 1 dated as of December 31, 2000, further amended and restated as of April 15, 2001 and further amended by Waiver and Amendment No. 1 dated as of June 15, 2001, Amendment No. 2 dated as of September 28, 2001 and Waiver and Amendment No. 3 dated as of December 10, 2001 (the "Credit Agreement"), among APPLIED EXTRUSION TECHNOLOGIES, INC. (the "Company"), the LENDERS party thereto (the "Lenders") and JPMORGAN CHASE BANK, formerly known as THE CHASE MANHATTAN BANK, as Administrative Agent (the "Administrative Agent"). W I T N E S S E T H : WHEREAS, the Company and the Lenders have agreed to amend the interest coverage ratio and leverage ratio covenants; NOW, THEREFORE, the parties hereto agree as follows: Section 1. Definitions; References. Unless otherwise specifically defined in the recitals above, each term used herein which is defined in the Credit Agreement shall have the meaning assigned to such term in the Credit Agreement. Section 2. Amendment of Section 9.11. The chart set forth in Section 9.11(a) of the Credit Agreement is amended for the period set forth below to read as follows: Period Ratio January 1, 2002 through March 31, 2002 6:25:1 Section 3. Representations of Company. The Company represents and warrants that (i) the representations and warranties of the Company and its Subsidiaries made in each Basic Document shall be true (or, in the case of Basic Documents which are not Financing Documents, true in all material respects) on and as of the Amendment Effective Date (as hereinafter defined) to the same extent as they would be required to be under Section 7.01(b) on the occasion of any Loan or issuance of any Letter of Credit and (ii) no Default will have occurred and be continuing on such date. Section 4. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. Section 5. Counterparts; Effectiveness. This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Amendment shall become effective as of the date first above written (the "Amendment Effective Date") when the Administrative Agent shall have received from each of the Company and the Majority Lenders a counterpart hereof signed by such party or facsimile or other written confirmation (in form satisfactory to the Administrative Agent) that such party has signed a counterpart hereof. 2 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written. APPLIED EXTRUSION TECHNOLOGIES, INC. By /s/ Anthony J. Allott ----------------------------------------- Name: Anthony J. Allott Title: Senior Vice President and Chief Financial Officer JPMORGAN CHASE BANK, formerly known as THE CHASE MANHATTAN BANK By /s/ Peter A. Dedousis ----------------------------------------- Name: Peter A. Dedousis Title: Managing Director LASALLE BUSINESS CREDIT, INC. By /s/ Karoline A. Moxham ----------------------------------------- Name: Karoline A. Moxham Title: Assistant Vice President FLEET NATIONAL BANK By /s/ Gregory T. Galligan ----------------------------------------- Name: Gregory T. Galligan Title: Assistant Vice President 3 PNC BANK, N.A. By ----------------------------------------- Name: Title: WACHOVIA BANK, NATIONAL ASSOCIATION, formerly known as FIRST UNION NATIONAL BANK By /s/ John Trainor ----------------------------------------- Name: John Trainor Title: Director PROVIDENT BANK By /s/ Cary M. Sierzputowski ----------------------------------------- Name: Cary M. Sierzputowski Title: Vice President 4