Amendment to the Amended and Restated Five-Year Credit and Guarantee Agreement

Contract Categories: Business Finance - Credit Agreements
EX-10.4 5 c24485exv10w4.htm AMENDMENT TO THE AMENDED AND RESTATED FIVE-YEAR CREDIT AND GUARANTEE AGREEMENT exv10w4
 

Exhibit 10.4
SECOND AMENDMENT
     THIS SECOND AMENDMENT, dated as of November 19, 2007 (this “Amendment”), amends the Amended and Restated Five-Year Credit and Guarantee Agreement dated as of August 10, 2005 (as amended, the “Credit Agreement”), among Block Financial Corporation (the “Borrower”), H&R Block, Inc. (the “Guarantor”), the lenders party thereto (the “Lenders”) and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). Capitalized terms used but not defined herein have the respective meanings set forth in the Credit Agreement.
     WHEREAS, the Borrower, the Guarantor, the Lenders and the Administrative Agent are parties to the Credit Agreement; and
     WHEREAS, the Borrower and the Guarantor have requested that the Lenders agree to amend certain provisions of the Credit Agreement as hereinafter set forth, and the Required Lenders are willing to agree to such requested amendments as set forth herein;
     NOW, THEREFORE, the parties hereto agree as follows:
     SECTION 1 Amendments. The Credit Agreement is hereby amended as follows:
     1.1 Amendments to Section 1.1.
     (a) Section 1.1 of the Credit Agreement is hereby amended by adding the following definitions in proper alphabetical sequence:
     “Bridge Credit Agreement” means the Bridge and Guarantee Agreement, dated as of April 16, 2007, among the Guarantor, the Borrower, the lenders party thereto and HSBC Bank USA, National Association, as administrative agent.
     “Bridge Credit Agreement Amendment Date” means the date on which the Maturity Date (as defined under the Bridge Credit Agreement) is extended to a date no earlier than March 14, 2008 and the Administrative Agent shall have received notice thereof.
     “Bridge Credit Agreement Refinancing Date” means the date on which the Bridge Credit Agreement is refinanced and the Administrative Agent shall have received notice thereof; provided that any such refinancing shall be unsecured, have the same borrower as under the Bridge Credit Agreement, have no guarantors other than Persons that have guaranteed the Obligations and have covenants no more restrictive than in this Agreement.
     “Modified Bridge Credit Agreement Date” means the earlier of the Bridge Credit Agreement Amendment Date and the Bridge Credit Agreement Refinancing Date.
     “OOMC” means Option One Mortgage Corporation, a wholly owned subsidiary of the Borrower.

 


 

     “OOMC Disposition” means the sale of all of the outstanding shares of capital stock of OOMC (excluding the sale of OOMC’s wholly-owned subsidiary, H&R Block Mortgage Corporation).
     “OOMC Disposition Date” means the date on which the OOMC Disposition is completed.
     “Second Amendment Effective Date” means November 19, 2007.
     (b) The definition of “Applicable Rate” in Section 1.1 of the Credit Agreement is hereby amended by inserting in clause (c) of said definition the following proviso immediately after the phrase “then the Ratings in category VI above shall be applicable for such day”:
provided further, that the Applicable Rate for Utilization Fees shall be increased to (i) 0.40% on the Second Amendment Effective Date and (ii) 0.90% on December 31, 2007 if the OOMC Disposition Date has not occurred prior to such date; provided that, (x) the Applicable Rate for Utilization Fees shall be reduced to 0.40% on the earlier of the Modified Bridge Credit Agreement Date and the OOMC Disposition Date if the Applicable Rate for Utilization Fees is increased pursuant to clause (ii) above and (y) the Applicable Rate for Utilization Fees shall be reduced to the Applicable Rate under the relevant column heading above on the later of the Modified Bridge Credit Agreement Date and the OOMC Disposition Date.”
     (c) The definition of “Short-Term Debt” in Section 1.1 of the Credit Agreement is hereby amended by inserting the phrase “plus the aggregate amount of Indebtedness at such time under this Agreement and the Other Credit Agreement” immediately after the phrase “in accordance with GAAP” contained in said definition.
     1.2 Amendment to Section 2.9. Section 2.9 is hereby amended by inserting a new clause “(c)” at the end thereof to read as follows:
     “(c) If on or before January 31, 2008 the OOMC Disposition Date has not occurred, (i) the Borrower shall prepay the Loans on March 14, 2008 to the extent (if any) necessary to reduce the aggregate Revolving Credit Exposures of all Lenders to $875,000,000 and (ii) the total Revolving Credit Exposures of all Lenders shall not exceed $875,000,000 until the Credit Parties have complied with Section 5.9 for the calendar year 2008.”
     1.3 Amendment to Section 5.9. Section 5.9 is hereby amended in its entirety to read
as follows:
“5.9. Cleandown. The Credit Parties shall reduce the aggregate outstanding principal amount of all Short-Term Debt to $200,000,000 or less for a minimum period of thirty consecutive days during the period from March 1 to June 30 of each fiscal year (other than for the period from March 1, 2008 to June 30, 2008 if the OOMC Disposition has not been consummated on or prior to April 30, 2008, in which case the Credit Parties shall reduce the aggregate outstanding principal

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amount of all Short-Term Debt to $700,000,000 or less for a minimum period of thirty consecutive days during the period from March 1 to May 31, 2008).”
     1.4 Amendment to Section 6.1. Section 6.1 is hereby amended in its entirety to read as follows:
“6.1. Adjusted Net Worth. The Guarantor will not permit Adjusted Net Worth as at the last day of any fiscal quarter of the Guarantor to be less than (a) for the fiscal quarters ending October 31, 2007 and January 31, 2008, $800,000,000 and (b) for each other fiscal quarter, $1,000,000,000”.
     SECTION 2 Representations and Warranties. Each of the Borrower and the Guarantor represents and warrants to the Administrative Agent and the Lenders that, after giving effect to this Amendment, (a) each representation and warranty set forth in Article III of the Credit Agreement (other than the representations and warranties set forth in subsections 3.4(b), 3.6(a)(i) and 3.6(b)) is true and correct in all material respects as of the date hereof with the same effect as if made on the date hereof (except to the extent related to a specific earlier date) and (b) no Default or Event of Default shall have occurred and be continuing.
     SECTION 3 Effectiveness. This Amendment shall become effective on the date on which all of the following conditions precedent have been satisfied or waived:
     (a) The Administrative Agent (or its counsel) shall have received counterparts of this Amendment executed by the Borrower, the Guarantor and the Required Lenders.
     (b) The Administrative Agent shall have received for the account of each Lender that executes and delivers a counterpart of this Amendment on or before 5:00 P.M. on November 19, 2007 an amendment fee equal to 0.05% of the outstanding principal amount of such Lender’s Loans.
     (c) The Borrower shall have paid and reimbursed the Administrative Agent for all of its
reasonable out-of-pocket expenses incurred to date in connection with this Amendment and the other Loan Documents, including, without limitation, the reasonable fees and disbursements of legal counsel to the Administrative Agent.
     SECTION 4 Miscellaneous.
     4.1 Continuing Effectiveness, etc. Except as expressly amended hereby, the provisions of the Credit Agreement are and shall remain in full force and effect. After the effectiveness of this Amendment, all references in the Credit Agreement and the other Loan Documents to “Credit Agreement” or similar terms shall refer to the Credit Agreement as amended hereby.
     4.2 Counterparts. This Amendment may be executed in any number of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original but all such counterparts shall together constitute one and the same Amendment. Delivery of a counterpart hereof, or an executed signature hereto, by facsimile or by e-mail (in pdf or similar format) shall be effective as delivery of a manually-executed counterpart hereof.

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

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     Delivered as of the day and year first above written.
         
  BLOCK FINANCIAL CORPORATION
 
 
  By:   /s/ Becky S. Shulman    
    Name:   Becky S. Shulman   
    Title:   Senior Vice President & Treasurer   
 
  H&R BLOCK, INC.
 
 
  By:   /s/ Becky S. Shulman    
    Name:   Becky S. Shulman   
    Title:   Senior Vice President and Treasurer   

 


 

         
         
  JPMORGAN CHASE BANK, N.A., as
Administrative Agent, as a Lender and as Swingline Lender
 
 
  By:   /s/ Susan E. Atkins    
    Name:   Susan E. Atkins   
    Title:   Managing Director   

 


 

         
         
  BANK OF AMERICA, N.A.
 
 
  By:   /s/ Alexa B. Bradford    
    Name:   Alexa B. Bradford   
    Title:   Senior Vice President   

 


 

         
         
  HSBC BANK USA, NATIONAL ASSOCIATION
 
 
  By:   /s/ VINCENT CLARK    
    Name:   Vincent Clark   
    Title:   SENIOR VICE PRESIDENT   

 


 

         
         
  BNP PARIBAS
 
 
  By:   /s/ Curt Price    
    Name:   Curt Price   
    Title:   Managing Director   
 
     
  By:   /s/ Fikret Durmus    
    Name:   Fikret Durmus    
    Title:   Vice President   

 


 

         
         
  CALYON NEW YORK BRANCH
 
 
  By:   /s/ Sebastian Rocco    
    Name:   Sebastian Rocco   
    Title:   Managing Director   
 
     
  By:   /s/ Walter Jay Buckley    
    Name:   Walter Jay Buckley   
    Title:   Managing Director   

 


 

         
         
  MELLON BANK, N.A.
 
 
  By:   /s/ Anne M. Westbrook    
    Name:   Anne M. Westbrook   
    Title:   Vice President   

 


 

         
         
  U.S. BANK NATIONAL ASSOCIATION
 
 
  By:   /s/ Michael J. Reymann    
    Name:   Michael J. Reymann   
    Title:   Senior Vice President   

 


 

         
         
  COMMERZBANK AG, NEW YORK & GRAND CAYMAN BRANCHES
 
 
  By:   /s/ Michael Leibrock    
    Name:   Michael Leibrock   
    Title:   Senior Vice President   
 
     
  By:   /s/ Michael Fruchter    
    Name:   Michael Fruchter   
    Title:   Vice President   
 
H&R Block, Second Amendment, November 19, 2007

 


 

         
  FORTIS BANK SA NV
CAYMAN ISLANDS BRANCH
 
 
  By:   /s/ Marlene Purrier-Ellis    
    Name:   Marlene Purrier-Ellis   
    Title:   Director   
 
     
     /s/ GILL DICKSON    
    GILL DICKSON   
    DIRECTOR   
 

 


 

         
  COMERICA BANK
 
 
  By:   /s/ Heather A. Whiting    
    Name:   Heather A. Whiting   
    Title:   Vice President   

 


 

         
         
  LEHMAN BROTHERS BANK, FSB
 
 
  By:   /s/ Janice M. Shugan    
    Name:   Janice M. Shugan   
    Title:   Authorized Signatory   

 


 

         
         
  ROYAL BANK OF CANADA
 
 
  By:   /s/ Dustin Craven    
    Name:   Dustin Craven   
    Title:   Attorney-in-Fact   

 


 

         
         
  SUNTRUST BANK
 
 
  By:   /s/ Daniel S. Komitor    
    Name:   Daniel S. Komitor   
    Title:   Director   

 


 

         
         
  FIFTH THIRD BANK
 
 
  By:   /s/ Christopher Motley    
    Name:   Christopher Motley   
    Title:   VICE PRESIDENT   

 


 

         
         
  UBS LOAN FINANCE LLC
 
 
  By:   /s/ Irja R. Otsa    
    Name:   Irja R. Otsa   
    Title:   Associate Director   
 
     
  By:   /s/ Richard L. Tavrow    
    Name:   Richard L. Tavrow    
    Title:   Director   

 


 

         
         
  E. SUN COMMERCIAL BANK, LTD., LOS ANGELES BRANCH
 
 
  By:   /s/ Benjamin Lin    
    Name:   Benjamin Lin   
    Title:   EVP & General Manager   

 


 

         
         
  BANK MIDWEST, N.A.
 
 
  By:   /s/ Brian Bower    
    Name:   Brian Bower   
    Title:   Vice President   

 


 

         
         
  COMMERCE BANK, N.A.
 
 
  By:   /s/ R. David Emley, Jr.    
    Name:   R. David Emley, Jr.    
    Title:   Vice President   

 


 

         
         
  PNC BANK, NATIONAL ASSOCIATION
 
 
  By:   /s/ Marc C. Van Horn    
    Name:   Marc C. Van Horn   
    Title:   Credit Manager   

 


 

         
         
  UMB BANK, N.A.
 
 
  By:   /s/ Thomas S. Terry    
    Name:   Thomas S. Terry   
    Title:   Senior Vice President