FIFTHAMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
Exhibit 10.25
Execution Copy
FIFTH AMENDMENT TO
AMENDED AND RESTATED CREDIT AGREEMENT
THIS FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the Amendment) is made and entered into effective as of the 1st day of March, 2005, by and among COMFORT SYSTEMS USA, INC., a Delaware corporation (Borrower); BANK OF TEXAS NA, as a Lender and as Administrative Agent (Administrative Agent); HIBERNIA NATIONAL BANK, as a Lender and as Documentation Agent; and the Lenders (Lenders) and Guarantors (Guarantors) set forth on the signature pages hereto.
RECITALS:
WHEREAS, Borrower, the Administrative Agent, the Document Agent and the Lenders entered into an Amended and Restated Credit Agreement dated December 31, 2003, as amended by the First Amendment to Amended and Restated Credit Agreement dated as of May 12, 2004, the Second Amendment to Amended and Restated Credit Agreement dated as of June 10, 2004, the Third Amendment to Amended and Restated Credit Agreement dated as of June 23, 2004 and the Fourth Amendment to Amended and Restated Credit Agreement dated as of December 23, 2004 (the Credit Agreement), pursuant to which Borrower amended and restated the Prior Credit Documents; and
WHEREAS, Borrower, Administrative Agent, Document Agent, Lenders and Guarantors desire to amend the Credit Agreement as herein set forth to add an additional Surety and to authorize an increase in bonding capacity.
NOW THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions. Except as otherwise provided below, unless the context hereof indicates otherwise, all capitalized terms used herein shall have the same meaning as such capitalized terms are defined in the Credit Agreement.
2. Amendments to the Credit Agreement. The Credit Agreement is, subject to the satisfaction of the conditions precedent set forth in Section 3 hereof, hereby amended as follows:
(a) Definitions. The following defined terms set forth in Article I of the Credit Agreement are hereby amended to read as follows:
Indemnity Agreement means that certain Underwriting, Indemnity, and Security Agreement dated October 23, 2003 among Borrower, the other Restricted Persons and Federal Insurance Company, as amended by First Amendment to Underwriting, Indemnity, and Security Agreement entered into as of the 1st day of March, 2005, among Borrower, the other Restricted Persons, Federal Insurance Company and Arch Insurance Company, and as amended by any other amendment thereto that is in compliance with Section 7.12.
Intercreditor Agreement means that certain Intercreditor Agreement dated October 23, 2003 between Federal Insurance Company and the Prior Agent, as amended by First Amendment to Intercreditor Agreement, made and entered into the 1st day of March, 2005, among Federal Insurance Company, Arch Insurance Company and the Administrative Agent on behalf itself and the other Lenders, and as amended by any other amendment thereto that is executed by the Administrative Agent on behalf of itself and the other Lenders.
Surety means, collectively or individually, as the case may be:
(a) Federal Insurance Company, an Indiana corporation, its Affiliates and Subsidiaries and their respective co-sureties and reinsurers, and their respective successors and permitted assigns, and
(b) Arch Insurance Company, a Missouri corporation, its Affiliates and Subsidiaries and their respective co-sureties and reinsurers, and their respective successors and permitted assigns.
(b) Section 7.12(b) is hereby amended by deleting 30 percent in subparagraph (ii)(x) and inserting, in lieu thereof, 35 percent and by deleting $225,000,000 in subparagraph (ii)(y) and inserting, in lieu thereof, $275,000,000.
(c) Sections 5.13 and 5.14 to Schedule 5 to the Credit Agreement shall be deleted and replaced with the corresponding Schedules attached hereto.
3. Conditions Precedent to Effectiveness of Amendment. This Amendment shall become effective when, and only when, the Administrative Agent shall have received:
(a) Counterparts of this Amendment duly executed by Borrower, Guarantors and the Required Lenders (unless otherwise indicated) being dated the date hereof, in form and substance reasonably satisfactory to the Administrative Agent, and
(b) a counterpart of the First Amendment to Intercreditor Agreement duly executed by Federal Insurance Company, Arch Insurance Company and the Administrative Agent, and acknowledged by the Borrower and the Guarantors; and
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(c) a copy of the First Amendment to Underwriting, Indemnity, and Security Agreement duly executed by Federal Insurance Company, Arch Insurance Company, the Borrower, and the Guarantors, in form and substance reasonably satisfactory to the Administrative Agent.
Borrower agrees to pay to the Administrative Agent for the account of the Lenders, promptly after the effective date of this Fifth Amendment, an amendment fee in the amount of $45,000. The Administrative Agent shall disburse a portion of said amendment fee to each lender based upon the ratio of such Lenders Revolving Loan Percentage Share.
Borrower agrees to pay promptly after receipt of an invoice therefore the reasonable fees and expenses of counsel to the Administrative Agent in connection with the preparation and negotiation of this Amendment and all documents and instruments contemplated hereby.
4. Representations and Warranties of Borrower. Borrower represents and warrants as follows:
(a) Borrower and Guarantors are each duly authorized and empowered to execute, deliver and perform this Amendment and all other instruments referred to or mentioned herein to which it is a party, and all action on their part requisite for the due execution, delivery and the performance of this Amendment has been duly and effectively taken.
(b) After giving affect to this Amendment, the representations and warranties contained in the Credit Agreement, as amended hereby, and any other Loan Documents executed in connection herewith or therewith are true in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that such representation or warranty was made as of a specific date, in which case such representation or warranty was true in all material respects when made;
(c) After giving affect to this Amendment, no event has occurred and is continuing which constitutes a Default; and
(d) When duly executed and delivered, each of this Amendment and the Credit Agreement will be legal and binding obligations of Borrower, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency or similar laws of general application relating to the enforcement of creditors rights and by equitable principles of general application.
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5. Reference to and Effect on the Loan Documents.
(a) Upon the effectiveness of this Amendment, each reference in the Credit Agreement to this Agreement, hereunder, hereof, herein or words of like import, and each reference in the Loan Documents shall mean and be a reference to the Credit Agreement as amended hereby.
(b) Except as specifically amended above, the Credit Agreement, the Notes, and all other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed. Without limiting the generality of the foregoing, the Security Documents and all collateral described therein do and shall continue to secure the payment of all obligations of Borrower under the Credit Agreement as amended hereby, the Notes, and under the Security Documents.
(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 Lender under any of the Security Documents, nor constitute a waiver of any provision of any of the Security Documents.
6. Costs and Expenses. Borrower agrees to pay on demand all costs and expenses of Lenders in connection with the preparation, reproduction, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder, including the reasonable fees and out-of-pocket expenses of counsel for Lenders. In addition, Borrower shall pay any and all fees payable or determined to be payable in connection with the execution and delivery, filing or recording of this Amendment and the other instruments and documents to be delivered hereunder, and agrees to save Lenders harmless from and against any and all liabilities with respect to or resulting from any delay in paying or omission to pay such fees.
7. Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.
8. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Texas.
9.. Final Agreement. THIS WRITTEN AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be duly executed in multiple counterparts, each of which is an original instrument for all purposes, all as of the day and year first above written.
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| BORROWER: | |||
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| COMFORT SYSTEMS USA, INC. | |||
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| By: | /s/ J. Gordon Beittenmiller |
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| J. Gordon Beittenmiller | ||
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| Executive Vice President and | ||
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| Chief Financial Officer | ||
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| LENDERS: | ||
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| BANK OF TEXAS NA, | ||
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| Administrative Agent and Lender | ||
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| By: | /s/ Edward H. Braddock | |
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| Edward H. Braddock | |
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| Vice President | |
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| HIBERNIA NATIONAL BANK, | ||
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| Documentation Agent, | |
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| By: | /s/ Michael Meiss | |
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| Michael Meiss | |
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| Senior Vice President | |
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| BANK OF SCOTLAND, Lender | ||
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| FIRSTCAPITAL BANK, SSB, Lender | ||
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| By: | /s/ William H. Fowler |
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| William H. Fowler |
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| Senior Vice President |
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| RZB FINANCE LLC, Lender | |
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| FIRST BANK & TRUST, Lender | |
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| By: | /s/ Michael S. Martin |
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| Michael S. Martin |
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| Vice President |
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| GUARANTORS: |
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| ACI MECHANICAL, INC. |
| ACI MECHANICAL USA, INC. |
| ARC COMFORT SYSTEMS USA, INC. |
| ACCURATE AIR SYSTEMS, L.P., by Atlas- |
| Accurate Holdings, L.L.C., as General Partner |
| ACCU-TEMP GP, INC. |
| ACCU-TEMP LP, INC. |
| AIRTEMP, INC. |
| ATLAS-ACCURATE HOLDINGS, L.L.C., |
| by CS53 Acquisition Corp., as Acting Member |
| ATLAS COMFORT SYSTEMS USA, LP (f/k/a |
| Atlas Air Conditioning Company, L.P.) by |
| Atlas-Accurate Holdings, L.L.C., as General |
| BATCHELORS MECHANICAL CONTRACTORS, |
| BCM CONTROLS CORPORATION |
| CALIFORNIA COMFORT SYSTEMS USA, INC. |
| CENTRAL MECHANICAL, INC. |
| CLIMATE CONTROL, INC. |
| COMFORT SYSTEMS USA (ARKANSAS), INC. |
| COMFORT SYSTEMS USA (BALTIMORE), INC. |
| COMFORT SYSTEMS USA (BRISTOL), INC. |
| COMFORT SYSTEMS USA (OHIO), INC. |
| (f/k/a Comfort Systems USA (Cleveland), Inc.) |
| COMFORT SYSTEMS USA (FLORIDA), INC. |
| COMFORT SYSTEMS USA G.P., INC. |
| COMFORT SYSTEMS USA (HARTFORD), INC. |
| COMFORT SYSTEMS USA |
| (INTERMOUNTAIN), INC. |
| COMFORT SYSTEMS USA NATIONAL |
| ACCOUNTS, LLC (f/k/a Accu-Temp, LLC) |
| by Accu-Temp LP, Inc., as acting member |
| COMFORT SYSTEMS USA (SYRACUSE), INC. COMFORT SYSTEMS USA (TEXAS), L.P., by |
| Comfort Systems USA G.P., Inc., as |
| General Partner |
| COMFORT SYSTEMS USA (TWIN CITIES), INC. |
| COMFORT SYSTEMS USA (WESTERN |
| MICHIGAN), INC. |
| CS44 ACQUISITION CORP. |
| CS53 ACQUISITION CORP. |
| DESIGN MECHANICAL INCORPORATED |
| EASTERN HEATING & COOLING, INC. |
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| GRANITE STATE PLUMBING & HEATING, LLC | |||
| GULFSIDE MECHANICAL, INC. | |||
| H & M MECHANICAL, INC. | |||
| HELM CORPORATION | |||
| HESS MECHANICAL CORPORATION | |||
| J & J MECHANICAL, INC. | |||
| JAMES AIR CONDITIONING ENTERPRISE INC. | |||
| MARTIN HEATING, INC. | |||
| MECHANICAL TECHNICAL SERVICES, L.P., | |||
| by Atlas-Accurate Holdings, L.L.C., as General | |||
| MJ MECHANICAL SERVICES, INC. | |||
| NEEL MECHANICAL CONTRACTORS, INC. | |||
| NORTH AMERICAN MECHANICAL, INC. | |||
| QUALITY AIR HEATING & COOLING, INC. | |||
| S&K AIR CONDITIONING CO., INC. | |||
| S.I. GOLDMAN COMPANY, INC. | |||
| S.M. LAWRENCE COMPANY, INC. (successor by | |||
| merger to CEL, Inc.) | |||
| SA ASSOCIATES, INC. | |||
| SALMON & ALDER, L.L.C., by SA Associates, Inc., | |||
| as acting member | |||
| SEASONAIR, INC. | |||
| SHEREN PLUMBING & HEATING, INC. | |||
| TARGET CONSTRUCTION, INC. | |||
| TEMP-RIGHT SERVICE, INC. | |||
| THE CAPITAL REFRIGERATION COMPANY | |||
| TRI-CITY MECHANICAL, INC. | |||
| UNITED ENVIRONMENTAL SERVICES, L.P., | |||
| by Atlas-Accurate Holdings, L.L.C., as | |||
| General Partner | |||
| WESTERN BUILDING SERVICES, INC. | |||
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| By: | /s/ J. Gordon Beittenmiller |
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| J. Gordon Beittenmiller | |
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| Vice President & Assistant Secretary | |
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SECTION 5.13 to SCHEDULE 5
Names and Places of Business
NO. |
| COMPANY NAME AND ADDRESS |
| PRIOR ADDRESS |
| PRIOR NAMES ANDTRADE |
1. |
| ACI Mechanical, Inc. |
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2. |
| ACI Mechanical USA, Inc. |
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3. |
| ARC Comfort Systems USA, Inc. |
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| American Refrigeration |
4. |
| Accurate Air Systems, L.P. |
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5. |
| Accu-Temp GP, Inc. |
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6. |
| Accu-Temp LP, Inc |
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7. |
| AIRTEMP, INC. |
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8. |
| Atlas-Accurate Holdings, L.L.C. |
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9. |
| Atlas Comfort Systems USA, L.P. |
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| Atlas Air Conditioning Company, |
10. |
| Batchelors Mechanical Contractors, Inc. |
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11. |
| BCM Controls Corporation |
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12. |
| California Comfort Systems USA, Inc. |
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| Helm San Diego Corporation |
13. |
| Central Mechanical, Inc. |
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| Central Construction |
14. |
| Climate Control, Inc. |
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| CCI Systems |
15. |
| Comfort Systems USA (Arkansas), Inc. |
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| River City Mechanical |
16. |
| Comfort Systems USA (Baltimore), Inc. |
| 2105 Emmorton Park Road, |
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| 2105 Emmorton Park Road, Suite 104 |
| Suite 211 |
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17. |
| Comfort Systems USA (Bristol), Inc. |
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| Fred Hayes Mechanical | |
18. |
| Comfort Systems USA (Ohio), Inc. |
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| Comfort Systems USA | |
19. |
| Comfort Systems USA (Florida), Inc. |
| 1026 Savage Court |
| All Temp Services | |
20. |
| Comfort Systems USA G.P., Inc. |
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21. |
| Comfort Systems USA (Hartford), Inc. |
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| The Harvey Robbin Company | |
22. |
| Comfort Systems USA (Intermountain), Inc. |
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| CSI/Bonneville | |
23. |
| Comfort Systems USA National Accounts, LLC |
| 660 Virginia Avenue |
| Accu-Temp, LLC | |
24. |
| Comfort Systems USA (Syracuse), Inc. |
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| Armani Plumbing & Mechanical | |
25. |
| Comfort Systems USA (Texas), L.P. |
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26. |
| Comfort Systems USA (Twin Cities), Inc. |
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| EDS | |
27. |
| Comfort Systems USA (Western Michigan), Inc. |
| 5325 Six Mile Court |
| River City Mechanical | |
28. |
| CS44 Acquisition Corp. |
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| Service Refrigeration | |
29. |
| CS53 Acquisition Corp. |
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30. |
| Design Mechanical Incorporated |
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31. |
| Eastern Heating & Cooling, Inc. |
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32. |
| Granite State Plumbing & Heating, LLC |
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| Granite State Plumbing and | |
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33. |
| Gulfside Mechanical, Inc. |
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34. |
| H & M Mechanical, Inc. |
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35. |
| Helm Corporation |
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36. |
| Hess Mechanical Corporation |
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37. |
| J & J Mechanical, Inc. |
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38. |
| James Air Conditioning Enterprise Inc. |
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39. |
| Martin Heating, Inc. |
| 1655 W. High School Road |
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40. |
| Mechanical Technical Services, L.P. |
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41. |
| MJ Mechanical Services, Inc. |
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| JM State Refrigeration |
42. |
| Neel Mechanical Contractors, Inc. |
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43. |
| North American Mechanical, Inc. |
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44. |
| Quality Air Heating & Cooling, Inc. |
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| Precision Air |
45. |
| S&K Air Conditioning Co., Inc. |
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46. |
| S. I. Goldman Company, Inc. |
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| Central Construction |
47. |
| S.M. Lawrence Company, Inc. |
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| CEL, Inc. |
48. |
| SA Associates, Inc. |
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| Salmon & Alder |
49. |
| Salmon & Alder, L.L.C. |
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50. |
| Seasonair, Inc. |
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51. |
| Sheren Plumbing & Heating, Inc. |
| 3801 Rennie School Road |
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| Traverse City, MI 49684 |
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52. |
| Target Construction, Inc. |
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53. |
| Temp-Right Service, Inc. |
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54. |
| The Capital Refrigeration Company |
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55. |
| Tri-City Mechanical, Inc. |
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| Daves Refrigeration |
56. |
| United Environmental Services, L.P. |
| 2500 Market Street |
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57. |
| Western Building Services, Inc. |
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| Colorado Plumbing Service |
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SECTION 5.14 to SCHEDULE 5
Subsidiaries
ENTITY |
| NAME OF ENTITY |
| STATE OF |
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1. |
| ACI Mechanical, Inc. |
| Delaware |
2. |
| ACI Mechanical USA, Inc. |
| Delaware |
3. |
| ARC Comfort Systems USA, Inc. |
| Delaware |
4. |
| Accurate Air Systems, L.P. |
| Texas |
5. |
| Accu-Temp GP, Inc. |
| Delaware |
6. |
| Accu-Temp LP, Inc. |
| Delaware |
7. |
| AIRTEMP, INC. |
| Delaware |
8. |
| Atlas-Accurate Holdings, L.L.C. |
| Delaware |
9. |
| Atlas Comfort Systems USA, L.P. |
| Texas |
10. |
| Batchelors Mechanical Contractors, Inc. |
| Alabama |
11. |
| BCM Controls Corporation |
| Massachusetts |
12. |
| California Comfort Systems USA, Inc. |
| California |
13. |
| Central Mechanical, Inc. |
| Delaware |
14. |
| Climate Control, Inc. |
| Delaware |
15. |
| Comfort Systems USA (Arkansas), Inc. |
| Delaware |
16. |
| Comfort Systems USA (Baltimore), Inc. |
| Delaware |
17. |
| Comfort Systems USA (Bristol), Inc. |
| Delaware |
18. |
| Comfort Systems USA (Ohio), Inc. |
| Ohio |
19. |
| Comfort Systems USA (Florida), Inc. |
| Florida |
20. |
| Comfort Systems USA G.P., Inc. |
| Delaware |
21. |
| Comfort Systems USA (Hartford), Inc. |
| Delaware |
22. |
| Comfort Systems USA (Intermountain), Inc. |
| Utah |
23. |
| Comfort Systems USA National Accounts, LLC |
| Indiana |
24. |
| Comfort Systems USA (Syracuse), Inc. |
| New York |
25. |
| Comfort Systems USA (Texas), L.P. |
| Texas |
26. |
| Comfort Systems USA (Twin Cities), Inc. |
| Minnesota |
27. |
| Comfort Systems USA (Western Michigan), Inc. |
| Michigan |
28. |
| CS44 Acquisition Corp. |
| Delaware |
29. |
| CS53 Acquisition Corp. |
| Delaware |
30. |
| Design Mechanical Incorporated |
| Delaware |
31. |
| Eastern Heating & Cooling, Inc. |
| New York |
32. |
| Granite State Plumbing & Heating, LLC |
| Delaware |
33. |
| Gulfside Mechanical, Inc. |
| Delaware |
34. |
| H & M Mechanical, Inc. |
| Delaware |
35. |
| Helm Corporation |
| Colorado |
36. |
| Hess Mechanical Corporation |
| Delaware |
37. |
| J & J Mechanical, Inc. |
| Kentucky |
38. |
| James Air Conditioning Enterprise Inc. |
| Puerto Rico |
39. |
| Martin Heating, Inc. |
| Wyoming |
ENTITY |
| NAME OF ENTITY |
| STATE OF |
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40. |
| Mechanical Technical Services, L.P. |
| Texas |
41. |
| MJ Mechanical Services, Inc. |
| Delaware |
42. |
| Neel Mechanical Contractors, Inc. |
| Delaware |
43. |
| North American Mechanical, Inc. |
| Delaware |
44. |
| Quality Air Heating & Cooling, Inc. |
| Michigan |
45. |
| S&K Air Conditioning Co., Inc. |
| Georgia |
46. |
| S. I. Goldman Company, Inc. |
| Delaware |
47. |
| S.M. Lawrence Company, Inc. |
| Tennessee |
48. |
| SA Associates, Inc. |
| Utah |
49. |
| Salmon & Alder, L.L.C. |
| Utah |
50. |
| Seasonair, Inc. |
| Maryland |
51. |
| Sheren Plumbing & Heating, Inc. |
| Delaware |
52. |
| Target Construction, Inc. |
| Delaware |
53. |
| Temp-Right Service, Inc. |
| Delaware |
54. |
| The Capital Refrigeration Company |
| Delaware |
55. |
| Tri-City Mechanical, Inc. |
| Arizona |
56. |
| United Environmental Services, L.P. |
| Texas |
57. |
| Western Building Services, Inc. |
| Colorado |