FIRST AMENDMENT TO CREDIT AGREEMENT
Exhibit 10.1
Execution Copy
FIRST AMENDMENT TO CREDIT AGREEMENT
Dated as of June 10, 2009
This FIRST AMENDMENT TO CREDIT AGREEMENT (this Amendment) is entered into between KAR HOLDINGS, INC., a Delaware corporation (the Borrower), the Lenders and each of the other parties signatory hereto.
PRELIMINARY STATEMENTS
1. Reference is made to the Credit Agreement dated as of April 20, 2007 (the Credit Agreement), among the Borrower, the lenders and agents party thereto from time to time, Bear Stearns Corporate Lending Inc., as Administrative Agent, and the other parties signatory thereto. Capitalized terms used but not otherwise defined herein are used with the meanings given in the Credit Agreement.
2. The Borrower has requested that the Credit Agreement be clarified as herein set forth, with respect to certain obligations of the Borrower and certain Loan Parties under the Credit Agreement, to reflect the original intent of the parties in connection with the covenant set forth in Section 8.1(a) of the Credit Agreement.
3. Pursuant to clause (xii) of the proviso set forth in Section 11.1 of the Credit Agreement, any amendment, modification or waiver of any of the terms and provisions (and related definitions) set forth in Section 8.1(a) of the Credit Agreement requires only the written consent of the Majority Facility Lenders under the Revolving Facility.
4. The Majority Facility Lenders under the Revolving Facility are willing to agree to such Amendment on the terms and subject to the conditions herein set forth.
Now, therefore, in consideration of the premises and the agreements, other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the other Loan Parties and the Majority Facility Lenders under the Revolving Facility agree as follows:
AGREEMENT
SECTION 1. Amendments to Credit Agreement.
(a) Section 1.1 of the Credit Agreement is hereby amended by inserting in such subsection the following definitions in the appropriate alphabetical order:
First Amendment: means that certain First Amendment, dated as of June 10, 2009, by and between the Borrower, the Lenders and the other parties signatory thereto.
First Amendment Effective Date: means the date of satisfaction of the conditions to effectiveness referred to in Section 2 of the First Amendment.
(b) Section 8.1 of the Credit Agreement is hereby amended by deleting the words the Revolving Commitments immediately preceding the words are outstanding in the third line of clause (a) thereof and substituting the words any Revolving Loans therefor.
SECTION 2. Conditions to Effectiveness. The amendments contained in Section 1 shall be effective upon satisfaction of each of the following conditions precedent:
(a) The Administrative Agent shall have received original, electronic or facsimile counterparts of this Amendment duly executed and delivered by Lenders constituting the Majority Facility Lenders under the Revolving Facility and shall have received counterparts of this Amendment executed by the Borrower and counterparts of the Consent appended hereto as Exhibit A (the Consent) executed by the Grantors, as defined in the Guarantee and Collateral Agreement (the Grantors);
(b) The Administrative Agent shall have received a counterpart to that certain Fee Letter (Fee Letter) dated as of even date herewith, by and between the Administrative Agent and the Borrower, executed and delivered by the Borrower, and all fees and expense reimbursements (including, without limitation, fees and expenses of counsel to the Agents and any invoiced fees and expenses payable under the Fee Letter) under the Fee Letter and the Loan Documents shall have been paid; and
(c) The Administrative Agent shall have received from the Borrower, for account of each Lender which delivers its original, electronic or facsimile signature page to this Amendment no later than 6:00 p.m. (New York City time) on June 8, 2009, payment of an amendment fee (which shall be fully earned and non-refundable when paid) equal to 5 basis points (0.05%) of the aggregate outstanding amount of Revolving Commitments of such Lender as of the close of business on June 8, 2009.
SECTION 3. Representations and Warranties. The Borrower represents and warrants that:
(a) Authority. The Borrower has the requisite power and authority to execute, deliver and perform its obligations under this Amendment and the Credit Agreement as amended hereby. Each Grantor has the requisite power and authority to execute, deliver and perform its obligations under the Consent and the Loan Documents, as amended hereby. The execution, delivery and performance by the Borrower of this Amendment and by the Grantors of the Consent, and the performance by each Loan Party of each Loan Document (as amended hereby) to which it is a party have been duly approved by all necessary organizational action of such Loan Party.
(b) Enforceability. This Amendment has been duly executed and delivered by the Borrower and the Consent has been duly executed and delivered by each Grantor. When the conditions to effectiveness in Section 2 of this Amendment have been satisfied, each of this Amendment, the Consent and each Loan Document (as amended hereby) is the legal, valid and binding obligation of each Loan Party party thereto, enforceable against such Loan Party in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors rights generally and by general equitable principles (whether enforcement is sought in proceedings in equity or at law).
(c) Representations and Warranties. The representations and warranties made by any Loan Party in or pursuant to the Loan Documents are true and correct in all material respects on and as of the date hereof as if made on and as of such date, except to the extent that such representations and warranties refer to an earlier date (in which case they are true and correct in all material respects as of such earlier date).
(d) No Default. No Default or Event of Default shall have occurred and be continuing on the date hereof or after giving affect to this Amendment.
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SECTION 4. Reference to and Effect on the Loan Documents.
(a) If and when this Amendment becomes effective, each reference in the Credit Agreement to this Agreement, hereunder, hereof or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the Credit Agreement, thereunder, thereof or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended hereby.
(b) The Credit Agreement, as amended hereby, and the Guarantee and Collateral Agreement and the other Loan Documents are and shall continue to be in full force and effect and are hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing, the Security Documents and all of the Collateral described therein do and shall continue to secure the payment of all Obligations under and as defined in the Credit Agreement, as amended hereby.
(c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or Agent under any of the Loan Documents or constitute, except as expressly set forth herein, a waiver or amendment of any provision of any of the Loan Documents.
(d) This Amendment is a Loan Document. The provisions of Sections 11.12 and 11.16 of the Credit Agreement shall apply with like effect to this Amendment.
SECTION 5. Counterparts. This Amendment (including all consents and authorizations relating hereto) and the Consent 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 agreement. Delivery of an executed counterpart of a signature page to this Amendment (or any consent or authorization relating hereto) or the Consent by electronic transmission or facsimile shall be effective and enforceable as delivery of a manually executed counterpart thereof. The Administrative Agent will not have any responsibility for determining whether (and makes no representation as to whether) any such counterpart has been duly authorized, executed or delivered or is enforceable against any party hereto.
SECTION 6. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
[signature pages follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date first written above.
KAR HOLDINGS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer |
Majority Facility Lenders under the Revolving Facility:
JP Morgan Chase Bank, N.A. | ||
By: | /s/ Randall K. Stephens | |
Name: | Randall K. Stephens | |
Title: | Vice President |
Majority Facility Lenders under the Revolving Facility:
UBS LOAN FINANCE LLC | ||
By: | /s/ Marie Haddad | |
Name: | Marie Haddad | |
Title: | Associate Director | |
By: | /s/ Irja R. Otsa | |
Name: | Irja R. Otsa | |
Title: | Associate Director |
Majority Facility Lenders under the Revolving Facility:
Bank of America, N.A. | ||
By: | /s/ John P. Wofford | |
Name: | John P. Wofford | |
Title: | Vice President |
Majority Facility Lenders under the Revolving Facility:
STYX PARTNERS, L.P. | ||
By: | Styx Associates LLC, | |
Its General Partner | ||
By: | /s/ Kevin Genda | |
Name: | Kevin Genda | |
Title: | Senior Managing Director |
Majority Facility Lenders under the Revolving Facility:
Deutsche Bank Trust Company Americas, As Lender | ||
By: | /s/ Erin Morrissey | |
Name: | Erin Morrissey | |
Title: | Vice President | |
Deutsche Bank Trust Company Americas, As Lender | ||
By: | /s/ Susan LeFevre | |
Name: | Susan LeFevre | |
Title: | Managing Director |
Majority Facility Lenders under the Revolving Facility:
ING CAPITAL, LLC | ||
By: | /s/ Lawrence P. Eyink | |
Name: | Lawrence P. Eyink | |
Title: | Director |
Majority Facility Lenders under the Revolving Facility:
Sun Trust Bank | ||
By: | /s/ David Fournier | |
Name: | David Fournier | |
Title: | Vice President |
Majority Facility Lenders under the Revolving Facility:
Harris N.A. | ||
By: | /s/ Danjuma Gibson | |
Name: | Danjuma Gibson | |
Title: | Vice President |
Majority Facility Lenders under the Revolving Facility:
Wachovia Bank | ||
By: | /s/ Michael R. Burkitt | |
Name: | Michael R. Burkitt | |
Title: | Senior Vice President |
Majority Facility Lenders under the Revolving Facility:
Sumitomo Mitsui Banking Corporation | ||
By: | /s/ Yasuhiko Imai | |
Name: | Yasuhiko Imai | |
Title: | Senior Vice President |
Majority Facility Lenders under the Revolving Facility:
Fifth Third Bank | ||
By: | /s/ David ONeal | |
Name: | David ONeal | |
Title: | Vice President |
Majority Facility Lenders under the Revolving Facility:
CAPITALSOURCE FINANCE LLC | ||
By: | /s/ Arturo J. Velez | |
Name: | Arturo J. Velez | |
Title: | Authorized Signatory |
Majority Facility Lenders under the Revolving Facility:
Natixis | ||
By: | /s/ Harold Birk | |
Name: | Harold Birk | |
Title: | Managing Director | |
By: | /s/ Francesco Del Vecchio | |
Name: | Francesco Del Vecchio | |
Title: | Director |
EXHIBIT A
CONSENT
Dated as of June 10, 2009
The undersigned, as Grantors under the Guarantee and Collateral Agreement and, as applicable, as parties to the other Security Documents, hereby consent and agree to the foregoing First Amendment dated as of June 10, 2009 (the First Amendment), by and between the Borrower and the Lenders party thereto, and hereby confirm and agree that (i) each of the Guarantee and Collateral Agreement and the other Security Documents is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects except that, upon the effectiveness of, and on and after the date of, said First Amendment, each reference therein to the Credit Agreement, thereunder, thereof and words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended by said First Amendment and (ii) the Guarantee and Collateral Agreement and the other Security Documents all of the Collateral described therein does, and shall continue to, secure the payment and performance of all of the Obligations as defined in the Guarantee and Collateral Agreement, after giving effect to said First Amendment.
[Signature pages follow]
KAR HOLDINGS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
KAR HOLDINGS II, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President, Chief Financial Officer and Secretary | |
ADESA, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President, Chief Financial Officer and Assistant Secretary | |
INSURANCE AUTO AUCTIONS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
ADESA CORPORATION, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
A.D.E. OF ARK-LA-TEX, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
A.D.E. OF KNOXVILLE, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA ARK-LA-TEX, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA ARKANSAS, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer |
ADESA BIRMINGHAM, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA CALIFORNIA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA CHARLOTTE, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA COLORADO, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA DES MOINES, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA FLORIDA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA IMPACT TEXAS, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA INDIANAPOLIS, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA LANSING, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA LEXINGTON, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA MISSOURI, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA NEW JERSEY, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA NEW YORK, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA OHIO, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA OKLAHOMA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA PENNSYLVANIA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA PHOENIX, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA SAN DIEGO, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA-SOUTH FLORIDA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA SOUTHERN INDIANA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA TEXAS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA VIRGINIA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA WASHINGTON, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA WISCONSIN, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ASSET HOLDINGS III, L.P. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer for ADESA, Inc., General Partner | |
AUTO DEALERS EXCHANGE OF CONCORD, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
AUTO DEALERS EXCHANGE OF MEMPHIS, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
AUTOMOTIVE FINANCE CORPORATION | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
AUTOMOTIVE RECOVERY SERVICES, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
AUTOVIN, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
PAR, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
AFC CAL, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
AXLE HOLDINGS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
INSURANCE AUTO AUCTIONS CORP. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
IAA SERVICES, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer |
IAA ACQUISITION CORP. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
AUTO DISPOSAL SYSTEMS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
ADS PRIORITY TRANSPORTS, LTD. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
ADS ASHLAND, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
ZABEL & ASSOCIATES, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer |
SIOUX FALLS AUTO AUCTIONS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
TRI-STATE AUCTION CO., INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
AUTO DISPOSAL OF BOWLING GREEN, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
AUTO DISPOSAL OF CHATTANOOGA, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
AUTO DISPOSAL OF NASHVILLE, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer |
AUTO DISPOSAL OF PADUCAH, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
AUTO DISPOSAL OF MEMPHIS, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
SALVAGE DISPOSAL COMPANY OF GEORGIA | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Authorized Signatory Officer | |
ADESA MISSOURI REDEVELOPMENT CORPORATION | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
LIVEBLOCK AUCTIONS INTERNATIONAL, INC. | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer |
AUTOMOTIVE FINANCE CONSUMER DIVISION, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA DEALER SERVICES, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
DENT DEMON, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
ADESA MINNESOTA, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer | |
CARBUYCO, LLC | ||
By: | /s/ Eric M. Loughmiller | |
Name: | Eric M. Loughmiller | |
Title: | Executive Vice President and Chief Financial Officer |