AMENDMENT NO. 1 TO CREDIT AGREEMENT

EX-10.1 2 dex101.htm AMENDMENT NO. 1 TO CREDIT AGREEMENT - MAY 16, 2006 Amendment No. 1 to Credit Agreement - May 16, 2006

Exhibit 10.1

AMENDMENT NO. 1

TO

CREDIT AGREEMENT

THIS AMENDMENT NO. 1 TO CREDIT AGREEMENT (the “Amendment”) is made as of May 16, 2006 by and among Central Garden & Pet Company, a Delaware corporation (the “Company”), the institutions listed on the signature pages hereto and JPMorgan Chase Bank, National Association, as the administrative agent for the “Lenders” referred to below (the “Administrative Agent”). Capitalized terms used but not otherwise defined herein shall have the respective meanings given to them in the “Credit Agreement” referred to below.

W I T N E S S E T H:

WHEREAS, the signatories hereto are parties to that certain Credit Agreement, dated as of February 28, 2006, among the Company, the Subsidiary Borrowers from time to time parties thereto, the financial institutions from time to time parties thereto (the “Lenders”) and the Administrative Agent (as the same may from time to time be amended, restated, supplemented or otherwise modified, the “Credit Agreement”);

WHEREAS, the parties hereto have agreed to amend the Credit Agreement on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company, the Lenders and the Administrative Agent have agreed to the following amendment to the Credit Agreement.

1. Amendments. Effective as of the date hereof and subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement is hereby amended as follows:

(a) Section 1.1 of the Credit Agreement is hereby amended to restate the definition of “Operating Lease Obligations” in its entirety as follows:

Operating Lease Obligations” of the Company and its Subsidiaries means, for any period, the aggregate amount of fixed lease payments due under all Operating Leases of the Company and its Subsidiaries during such period.

(b) Section 6.11 of the Credit Agreement is hereby amended to restate the first sentence thereof in its entirety as follows:


The Company will not permit Operating Lease Obligations of the Company and its Subsidiaries, determined as of the end of each of its fiscal quarters ending on or after March 25, 2006 for the most recently ended 4 consecutive fiscal quarters (including such fiscal quarter end), to exceed $40,000,000.

2. Conditions of Effectiveness. This Amendment shall become effective as of the date hereof and be deemed effective as of February 28, 2006, if, and only if, the Administrative Agent shall have received: (a) executed copies of this Amendment from the Company and the Required Lenders, and (b) executed copies of the Reaffirmation attached hereto in the form of Exhibit A from the existing Subsidiary Guarantors.

3. Representations and Warranties of the Company. The Company hereby represents and warrants as follows:

(a) The Company has the power and authority and legal right to execute and deliver this Amendment and the Credit Agreement (as modified hereby) and to perform its obligations hereunder and thereunder. The execution and delivery by the Company of this Amendment and the performance of its obligations hereunder and under the Credit Agreement (as modified hereby) have been duly authorized by proper proceedings, and this Amendment and the Credit Agreement (as modified hereby) constitute legal, valid and binding obligations of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

(b) Neither the execution and delivery by the Company of this Amendment, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof or of the Credit Agreement (as modified hereby) (i) will require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect, (ii) will violate any applicable law or regulation or the charter, by-laws or other organizational documents of the Company or any of its Subsidiaries or any order of any Governmental Authority, (iii) will violate or result in a default under any indenture, agreement or other instrument binding upon the Company or any of its Subsidiaries or its assets (including, without limitation, the Senior Subordinated Note Indenture and the Senior Subordinated Notes), or give rise to a right thereunder to require any payment to be made by the Company or any of its Subsidiaries or (iv) will result in the creation or imposition of any Lien on any asset of the Company or any of its Subsidiaries.

(c) As of the date hereof and giving effect to the terms of this Amendment, (i) no Default has occurred and is continuing and (ii) the representations and warranties of the Company set forth in the Credit Agreement (as modified hereby) and the other Loan Documents are true and correct in all material respects (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date).


4. Reference to and Effect on the Credit Agreement and Loan Documents.

(a) Upon the effectiveness of this Amendment, each reference to the Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as modified hereby. This Amendment is a Loan Document pursuant to the Credit Agreement and shall (unless expressly indicated herein or therein) be construed, administered, and applied, in accordance with all of the terms and provisions of the Credit Agreement.

(b) The Company (i) agrees that this Amendment and the transactions contemplated hereby shall not limit or diminish the obligations of the Company arising under or pursuant to the Credit Agreement and the other Loan Documents to which it is a party, (ii) reaffirms its obligations under the Credit Agreement and each and every other Loan Document to which it is a party (including, without limitation, each applicable Collateral Document), (iii) reaffirms all Liens on the Collateral which have been granted by it in favor of the Administrative Agent (for itself and the other Holders of Secured Obligations) pursuant to any of the Loan Documents, and (iv) acknowledges and agrees that, except as specifically modified above, the Credit Agreement and all other Loan Documents executed and/or delivered in connection therewith shall remain in full force and effect and are hereby ratified and confirmed.

(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of or consent to any modification of any provision of the Credit Agreement or any other Loan Documents executed and/or delivered in connection therewith.

5. Governing Law. This Amendment shall be construed in accordance with and governed by the law of the State of New York.

6. Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

7. Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts (including by means of facsimile or electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

*******


IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first above written.

 

CENTRAL GARDEN & PET COMPANY

as the Company

By:  

/s/ Roger J. Fleishmann, Jr.

Name:   Roger J. Fleischmann, Jr.
Title:   Vice President and Treasurer


JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,

and Administrative Agent, the Issuing Bank, the Swingline Lender and a Lender

By:  

/s/ Sanjina Daphtary

Name:   Sanjina Daphtary
Title:   AVP


BANK OF AMERICA, N.A.,

as Syndication Agent and a Lender

By:  

/s/ J. Casey Cosgrove

Name:   J. Casey Cosgrove
Title:   Vice President


CIBC WORLD MARKETS CORP.,

as a Co-Documentation Agent

By:  

/s/ Cedric Henley

Name:   Cedric M. Henley
Title:   Managing Director
CIBC, INC., as a Lender
By:  

/s/ Cedric Henley

Name:   Cedric M. Henley
Title:   Managing Director
CANADIAN IMPERIAL BANK OF COMMERCE, as an Issuing Bank with respect to the Existing Letters of Credit
By:  

/s/ Cedric Henley

Name:   Cedric M. Henley
Title:   Managing Director


SUNTRUST BANK, as an Issuing Bank with respect to the Existing Letters of Credit, a Co-Documentation Agent and a Lender
By:  

/s/ Samuel M. Jannetta, Jr.

Name:   Samuel M. Jannetta, Jr.
Title:   Vice President


UNION BANK OF CALIFORNIA, N.A., as a Co-Documentation Agent and a Lender
By:  

/s/ J. William Bloore

Name:   J. William Bloore
Title:   Vice President


WELLS FARGO BANK, N.A.,

as a Lender

By:

 

/s/ Meggie Chichioco

Name:

  Meggie Chichioco

Title:

  Vice President


HARRIS, N.A.,

as a Lender

By:

 

/s/ C. Scott Place

Name:

  C. Scott Place

Title:

  Director


COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK INTERNATIONAL” NEW YORK BRANCH,

as a Lender

By:  

/s/ Rebecca O. Morrow

Name:   Rebecca O. Morrow
Title:   Executive Director
By:  

/s/ Jessalyn Peters

Name:   Jessalyn Peters
Title:   Managing Director


WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender
By:  

/s/ Mark S. Supple

Name:   Mark S. Supple
Title:   Vice President and Director


BNP PARIBAS,

as a Lender

By:  

/s/ Katherine Wolfe

Name:   Katherine Wolfe
Title:   Managing Director
By:  

/s/ Sandy Bertram

Name:   Sandy Bertram
Title:   Vice President


LASALLE BANK, NATIONAL ASSOCIATION,

as a Lender

By:

 

/s/ Adam F. Lutastanski

Name:

  Adam F. Lutastanski

Title:

  AVP


GENERAL ELECTRIC CAPITAL CORPORATION,

as a Lender

By:

 

/s/ Dwayne L. Coker

Name:

  Dwayne L. Coker

Title:

  Duly Authorized Signatory


ING CAPITAL, LLC,

as a Lender

By:  

/s/ Marcy Lyons

Name:   Marcy Lyons
Title:   Director


U.S. BANK, NATIONAL ASSOCIATION,

as a Lender

By:  

/s/ Janet Jordan

Name:   Janet E. Jordan
Title:   Vice President


CORBANK, ACB,

as a Lender

By:  

/s/ S. Richard Dill

Name:    S. Richard Dill
Title:   Vice President


HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender
By:  

/s/ Robert P. Reynolds

Name:   Robert P. Reynolds
Title:   Vice President & Senior Relationship Manager


CALYON NEW YORK BRANCH,

as a Lender

By:  

/s/ F. Frank Herrera

Name:   F. Frank Herrera
Title:   Director
By:  

/s/ Ronald G. Moore

Name:   Ronald G. Moore
Title:   Director


FARM CREDIT SERVICES OF AMERICA, PCA, as a Lender
By:  

/s/ Curt A. Brown

Name:   Curt A. Brown
Title:   Vice President


GREENSTONE FARM CREDIT SERVICES, ACA/FLCA, as a Lender
By:  

/s/ Ben Mahlich

Name:   Jeff Pavlik
Title:   AVP/Lending Officer


NACM CLO I,

as a Lender

By:  

/s/ Joanna Willars

Name:   Joanna Willars
Title:   Authorized Signatory


BEAR STEARNS INVESTMENT PRODUCTS INC.,

as a Lender

By:

 

/s/ Jonathan Weiss

Name:

  Jonathan Weiss

Title:

  Authorized Signatory


WB Loan Funding 1, LLC

as a Lender

By:  

/s/ Diana M. Himes

Name:   Diana M. Himes
Title:   Associate


WB Loan Funding 5, LLC

as a Lender

By:  

/s/ Diana M. Himes

Name:   Diana M. Himes
Title:   Associate


Stanfield AZURE CLO, Ltd.
By:  

Stanfield Capital Partners, LLC

as its Collateral Manager

as a Lender
By:  

/s/ Christopher E. Jansen

Name:   Christopher E. Jansen
Title:   Managing Partner


Stanfield Vantage CLO, Ltd.

By:

 

Stanfield Capital Partners, LLC

as its Asset Manager

as a Lender

By:

 

/s/ Christopher E. Jansen

Name:

  Christopher E. Jansen

Title:

  Managing Partner


Fidelity Advisor Series II: Fidelity Advisor Floating Rate High Income Fund,

as a Lender

By:

 

/s/ John H. Costello

Name:

  John H. Costello

Title:

  Assistant Treasurer


Fidelity Central Investments Portfolios LLC: Fidelity Floating Rate Central Investment Portfolio,
as a Lender

By:

 

/s/ John H. Costello

Name:

  John H. Costello

Title:

  Assistant Treasurer


Ballyrock CLO III Limited, By: Ballyrock Investment Advisors LLC, as Collateral Manager,

as a Lender

By:  

/s/ Lisa Rymut

Name:   Lisa Rymut
Title:   Assistant Treasurer


Atlas Loan Funding (Navigator), LLC
By:  Atlas Capital Funding, Ltd.
By:  Structured Asset Investors, LLC
Its Investment Manager
as a Lender
By:  

/s/ Diana M. Himes

Name:   Diana M. Himes
Title:   Associate


ALZETTE EUROPEAN CLO S.A.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


AVALON CAPITAL LTD. 3

By:

 

INVESCO Senior Secured Management, Inc.

As Asset Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


BELHURST CLO LTD.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


CHAMPLAIN CLO LTD.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender
By:  

/s/ Thomas H.B. Ewald

Name:   Thomas H.B. Ewald
Title:   Authorized Signatory


CHARTER VIEW PORTFOLIO
By:  

INVESCO Senior Secured Management, Inc.

as Investment Advisor

as a Lender
By:  

/s/ Thomas H.B. Ewald

Name:   Thomas H.B. Ewald
Title:   Authorized Signatory


DIVERSIFIED CREDIT PORTFOLIO LTD.
By:  

INVESCO Senior Secured Management, Inc.

As Investment Adviser

as a Lender
By:  

/s/ Thomas H.B. Ewald

Name:   Thomas H.B. Ewald
Title:   Authorized Signatory


AIM FLOATING RATE FUND

By:

 

INVESCO Senior Secured Management, Inc.

As Sub-Adviser

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


INVESCO EUROPEAN CDO I S.A.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


KATONAH V, LTD.

By:

 

INVESCO Senior Secured Management, Inc.

As Investment Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


LOAN FUNDING IX LLC, for itself or as agent for Corporate Loan Funding IX LLC
By:  

INVESCO Senior Secured Management, Inc.,

As Portfolio Manager

as a Lender
By:  

/s/ Thomas H.B. Ewald

Name:   Thomas H.B. Ewald
Title:   Authorized Signatory


SEQUILS-LIBERTY, LTD.
By:  

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender
By:  

/s/ Thomas H.B. Ewald

Name:   Thomas H.B. Ewald
Title:   Authorized Signatory


MOSELLE CLO S.A.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


NAUTIQUE FUNDING LTD.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


PETRUSSE EUROPEAN CLO S.A.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


SAGAMORE CLO LTD.

By:

 

INVESCO Senior Secured Management, Inc.

As Collateral Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


SARATOGA CLO I, LIMITED

By:

 

INVESCO Senior Secured Management, Inc.

As the Asset Manager

as a Lender

By:

 

/s/ Thomas H.B. Ewald

Name:

  Thomas H.B. Ewald

Title:

  Authorized Signatory


BIRCHWOOD FUNDING LLC,

as a Lender

By:  

/s/ Christina L. Ramseur

Name:   Christina L. Ramseur
Title:   Assistant Vice President


PACIFICA CDO IV, LTD.,

as a Lender

By:  

/s/ Amy Adler

Name:   Amy Adler
Title:   Associate


PACIFICA CDO V, LTD.,

as a Lender

By:

 

/s/ Amy Adler

Name:

  Amy Adler

Title:

  Associate


PACIFICA CDO VI, LTD.,

as a Lender

By:  

/s/ Amy Adler

Name:   Amy Adler
Title:   Associate


EXHIBIT A

Reaffirmation

Each of the undersigned hereby acknowledges receipt of a copy of Amendment No. 1, dated as of May 16, 2006 (the “Amendment”), to the Credit Agreement, dated as of February 28, 2006, by and among Central Garden & Pet Company, a Delaware corporation (the “Company”), the Subsidiary Borrowers from time to time parties thereto, the financial institutions from time to time parties thereto (the “Lenders”) and JPMorgan Chase Bank, National Association, as the administrative agent for the Lenders (the “Administrative Agent”) (as modified by the Amendment, and as the same may from time to time hereafter be amended, restated, supplemented or otherwise modified, the “Credit Agreement”). Capitalized terms used in this Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement.

Each of the undersigned, by its signature below, hereby (a) acknowledges and consents to the execution and delivery of the Amendment by the parties thereto, (b) agrees that the Amendment and the transactions contemplated thereby shall not limit or diminish the obligations of such Person arising under or pursuant to the Collateral Documents and the other Loan Documents to which it is a party, (c) reaffirms all of its obligations under the Loan Documents to which it is a party, (d) reaffirms all Liens on the Collateral which have been granted by it in favor of the Administrative Agent (for itself and the other Holders of Secured Obligations) pursuant to any of the Loan Documents, and (e) acknowledges and agrees that each Loan Document executed by it remains in full force and effect and is hereby reaffirmed, ratified and confirmed. All references to the Credit Agreement contained in any Loan Document shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, restated, supplemented or otherwise modified. The Amendment is a Loan Document pursuant to the Credit Agreement and shall (unless expressly indicated therein) be construed, administered, and applied, in accordance with all of the terms and provisions of the Credit Agreement.

Dated as of May 16, 2006


IN WITNESS WHEREOF, this Reaffirmation has been duly executed as of the date first written above.

 

FARNAM COMPANIES, INC.
FOUR PAWS PRODUCTS, LTD.
KAYTEE PRODUCTS INCORPORATED
PENNINGTON SEED, INC.
T.F.H. PUBLICATIONS, INC.
WELLMARK INTERNATIONAL
ALL-GLASS AQUARIUM CO., INC.
CEDAR WORKS LLC
GRANT LABORATORIES, INC.
GRO TEC, INC.
GULFSTREAM HOME & GARDEN, INC.
INTERPET USA, LLC
MATTHEWS REDWOOD AND NURSERY SUPPLY, INC.
NEW ENGLAND POTTERY, INC.
NORCAL POTTERY PRODUCTS, INC.
OCEANIC SYSTEMS, INC.
PENNINGTON SEED, INC. OF NEBRASKA
PETS INTERNATIONAL, LTD.
PHAETON CORPORATION
SEEDS WEST, INC.
THOMPSON’S VETERINARY SUPPLIES, INC.
For each of the foregoing entities
By:  

/s/ Stuart W. Booth

Name:   Stuart W. Booth
Title:   Its Authorized Signatory