FOURTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT

Contract Categories: Business Finance - Credit Agreements
EX-10.15 5 ex1015.htm EXHIBIT 10 15 FOURTH AMEND exhibit 10 15 fourth amend
FOURTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT
 
    THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment") dated as of March 1, 2005 is among HEARTLAND FINANCIAL USA, INC., a corporation formed under the laws of the State of Delaware (the "Borrower"), each of the banks party hereto (individually, a "Bank" and collectively, the "Banks") and THE NORTHERN TRUST COMPANY, as agent for the Banks (in such capacity, together with its successors in such capacity, the "Agent").
 
    WHEREAS, the Borrower, the Agent and the Banks have entered into a Credit Agreement dated as of January 31, 2004 (as hereto amended, the "Credit Agreement"); and
 
    WHEREAS, the Borrower, the Agent and the Banks wish to extend the maturity of the Credit Agreement and make certain other amendments to the Credit Agreement;
 
    NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
 
    1.  Definitions. Terms defined in the Credit Agreement and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement and terms defined in the introductory paragraphs or other provisions of this Amendment shall have the respective meanings attributed to them therein. In addition, the following terms shall have the following meanings (terms defined in the singular having a correlative meaning when used in the plural and vice versa):
 
    "Effective Date" shall mean March 1, 2005, if (i) this Amendment shall have been executed and delivered by the Borrower, the Agent and the Banks and (ii) the Borrower shall have performed its obligations under Section 4 hereof.
 
    2.  Return on Assets. Section 7.4(e) of the Credit Agreement is hereby amended to state in its entirety as follows:
 
    "(e) Return on Average Assets -Borrower. The Borrower's consolidated income shall be at least 0.70% of its average assets, calculated as at the last day of each fiscal quarter for the four fiscal quarter period ending on that date."
 
    3.  Indebtedness. Section 7.5 of the Credit Agreement is hereby amended to state in its entirety as follows:
 
        "7.5 Indebtedness, Liens And Taxes, The Borrower and each Subsidiary shall:
 
    (a) Indebtedness,. Not incur, permit to remain outstanding, assume or in any way become committed for Indebtedness (specifically including but not limited to Indebtedness in respect of money borrowed from financial institutions but excluding deposits), except: (i) in the case of the Borrower, Indebtedness incurred hereunder, and in the case of the Guarantors, under their respective Guaranty Agreement; (ii) Indebtedness existing on the date of this Agreement and described on Schedule 7.5(a) hereof; (iii) Indebtedness of any Subsidiary arising in the ordinary course of the business of such Subsidiary; (iv) in the case of ULTEA, the US Bank Indebtedness outstanding on the date hereof in the principal amount of $11,418,871.69, less the aggregate amount of all repayments thereunder after the date of this Agreement; (v) in the case of CFC, Indebtedness under commercial paper issued by CFC which, together with any other commercial paper identified on Schedule 7,5(a) hereto, shall not exceed an aggregate principal amount of $20,000,000; (vu) in the case of the Borrower, Trust Indebtedness and Trust Guarantees, and in the case of any Trust Issuer, Trust Preferred Securities, provided, that the aggregate of such Trust Indebtedness (and the related Trust Guarantees and Trust Preferred Securities) shall not exceed $88,000,000 at any time outstanding; (vii) in the event any transfer or contribution of accounts receivable of ULTEA to a special purpose vehicle in accordance with Section 7,1(d is deemed to constitute a secured financing, Indebtedness of ULTEA to such special purpose vehicle, secured by the account receivables and related rights transferred to such special purpose vehicle only (the "Factored Receivables"), provided, that such Indebtedness shall not exceed an amount equal to $30,000,000 in the aggregate during the term of this Agreement; (viii) in the case of the Borrower, Indebtedness to the City of Dubuque, Iowa, in an amount not to exceed $300,000 to be used for the purpose 6f funding building improvements; (ix) in the case of the Borrower, Indebtedness in an aggregate amount not in excess of $2,750,000 under the Agreement to Organize and Stockholder Agreement dated February 1, 2003 and the Supplemental Initial Investor Agreement dated February I, 2003 and (x) additional Indebtedness not to exceed $1,000,00 at any time outstanding.
 
    4.     Revolving Credit Termination Date. The definition of "Revolving Credit Commitment Termination Date" is hereby amended by the deletion of the date "March 1, 2005" and the substitution of the date "February 28, 2006" thereof.
 
    5.     Conditions to Effective Date. The occurrence of the Effective Date shall be subject to the satisfaction of the following conditions precedent:
 
        (a)  The Borrower, the Agent and. the Banks shall have . executed and delivered, this Amendment.
 
        (b)  No Default shall have occurred and be continuing under the Credit Agreement, and the representations and warranties of the Borrower in Section 6 of the Credit Agreement and in Section 7 hereof shall be true and correct on and as of the Effective Date and the Borrower shall have provided to the Agent a certificate of a senior officer of the Borrower to that effect.
 
        (e)   Each Guarantor shall acknowledge and consent to this Amendment for purposes of its Guaranty Agreement as evidenced by its signed acknowledgment of this Amendment on the signature page hereof,
 
      (d)    The Borrower shall have delivered to the Agent, on behalf of the Banks, such other documents as the Agent may reasonably request.
 
    6.    Effective Date Notice. Promptly following the occurrence of the Effective Date, the Agent shall give notice to the parties of the occurrence of' the Effective Date, which notice shall be conclusive, and the parties may rely thereon; provided, that such notice shall not waive or otherwise limit any right or remedy of the Agent or the Banks arising out of any failure of any condition precedent set forth in Section 5 to be satisfied.
 
    7.      Ratification, The parties agree that the Credit Agreement, as amended hereby, and the notes have not lapsed or terminated, are in full force and effect, and are and from and after the Effective Date shall remain binding in accordance with their terms.
 
    8.     Representations and Warranties. The Borrower represents and warrants to the Agent and the Banks that:
 
        (a)  No Breach. The execution, delivery and performance of this Amendment will not conflict with or result in a breach of, or cause the creation of a Lien or require any consent under, the articles of incorporation or bylaws of the Borrower, or any applicable law or regulation, or any order, injunction or decree of any court or governmental authority or agency, or any agreement or instrument to which the Borrower is a party or by which it or its property is bound.
 
        (b)  Power and Action, Binding Effect. The Borrower has been duly incorporated and is validly existing as a corporation under the laws of the State of Delaware and has all necessary power and authority to execute, deliver and perform its obligations under this Amendment and the Credit Agreement, as amended by this Amendment; the execution, delivery and performance by the Borrower of this Amendment and the Credit Agreement, as amended by this Amendment, have been duly authorized by all necessary action on its part; and this Amendment and the Credit Agreement, as amended by this Amendment, have been duly and validly executed and delivered by the Borrower and constitute legal, valid and binding obligations, enforceable in accordance with their respective terms.
 
        (c)  Approvals. No authorizations, approvals or consents of, and no filings or registrations with, any governmental or regulatory authority or agency or any other person are necessary for the execution, delivery or performance by the Borrower of this Amendment or the Credit Agreement, as amended by this Amendment, or for the validity or enforceability thereof.
 
    9.    Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the Borrower, the Agent and the Banks and their respective successors and assigns, except that the Borrower may not transfer or assign any of its rights or interest hereunder.
 
    10.    Governing Law. This Amendment shall be governed by, and construed and interpreted in accordance with, the internal laws of the State of Illinois.
 
    11.    Counterparts,. This Amendment may be executed in any number of counterparts and each party hereto may execute any one or more of such. counterparts, all of which shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment by telecopy shall be as effective as delivery of a manually executed counterpart of this amendment.
 
    12.    Expenses. Whether or not the effective date shall occur, without limiting the obligations of the Borrower under the Credit Agreement, the Borrower agrees to pay, or to reimburse on demand, all reasonable costs and expenses incurred by the Agent in connection with the negotiation, preparation, execution, delivery, modi e Lion, amendment or enforcement of this Amendment, the Credit Agreement and the other agreements, documents and instruments referred to herein, including the reasonable fees and expenses of Mayer, Brown, Rowe & Maw LLP, special counsel to the Agent, and any other counsel engaged by the Agent,

[Signature Page Follows]
 

 
 
 

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

HEARTLAND FINANCIAL USA, INC.
By: /s/ John K. Schmidt
Name: John K. Schmidt
Title: EVP, CFO, COO

THE NORTHERN TRUST COMPANY
As Agent

By: /s/ Thomas E. Bernhardt
Name: Thomas E. Bernhardt
Title: Vice President

BANKS:

THE NORTHERN TRUST COMPANY
By: /s/ Thomas E. Bernhardt
Name: Thomas E. Bernhardt
Title: Vice President

HARRIS TRUST AND SAVINGS BANK
By: /s/ Michael S. Cameli
Name: Michael S. Cameli
Title: Vice President

U.S. BANK NATIONAL ASSOCIATION
By: /s/ Jay Strunk
Name: Jay Strunk
Title: Assistant Vice President

 
 

 

GUARANTOR ACKNOWLEDGEMENT

Each of the undersigned Guarantors hereby acknowledges and consents to the Borrower’s execution of this Amendment.


CITIZENS FINANCE CO.                ULTEA, INC.
By: /s/ John K. Schmidt                     By: /s/ John K. Schmidt
Title: Treasurer                       Title: Treasurer


 
 

 

CERTIFICATE

 
The undersigned as Executive Vice President, Chief Financial Officer and Chief Operating Officer of Heartland Financial USA, Inc., hereby certifies as follows:
 
1.  No Default, as defined in the Credit Agreement among Heartland Financial USA, Inc. (the "Borrower"), certain banks and The Northern Trust Company as agent, as amended ("Credit Agreement") has occurred and is continuing.

2.  The representations and warranties of the Borrower in Section 6 of the Credit Agreement and in Section 7 of the Fourth Amendment and Waiver to Credit Agreement dated as of March 1, 2005, are true and correct on and as of the date hereof.
 
IN WITNESS WHEREOF, the undersigned has executed this Certificate as of March 1, 2005.



HEARTLAND FINANCIAL USA, INC.
By: /s/ John K. Schmidt
Name: John K. Schmidt
Title: EVP, CFO, COO