Twelfth Amendment to Amended and Restated Credit Agreement, dated March 30, 2022, by and among IT Global Holding LLC, 4th Source LLC, AgileThought, LLC, AN Extend, S.A. de C.V., AN Evolution S. de R.L. de C.V., AN Global LLC, AT, the financial institutions party thereto as lenders, and Monroe Capital Management Advisors, LLC

Contract Categories: Business Finance - Credit Agreements
EX-10.40 4 exhibit1040-twelfthamendme.htm EX-10.40 Document
Exhibit 10.40

EXECUTION VERSION


TWELFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
This TWELFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of March 30, 2022, is entered into by and among IT GLOBAL HOLDING LLC, a Delaware limited liability company (“IT Global”), 4TH SOURCE, LLC a Delaware limited liability company (“4th Source”), AGILETHOUGHT, LLC, a Florida limited liability company (“AgileThought”), AN EXTEND, S.A. de C.V., a sociedad anonima de capital variable incorporated under the laws of Mexico (“AN Extend”), AN EVOLUTION S. DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital variable incorporated under the laws of Mexico (“AN Evolution,” and together with IT Global, 4th Source, AgileThought, and AN Extend, each a “Borrower” and collectively, the “Borrowers”), AN GLOBAL LLC, a Delaware limited liability company (“Intermediate Holdings”), AGILETHOUGHT, INC. (f/k/a AN GLOBAL INC.), a Delaware corporation (“Ultimate Holdings” and together with Intermediate Holdings, the “Holdings Companies”), the Guarantors (as defined in the Credit Agreement defined below) listed on the signature pages hereto, the financial institutions party hereto as lenders (together with their respective successors and assigns, the “Lenders”), and MONROE CAPITAL MANAGEMENT ADVISORS, LLC, a Delaware limited liability company (“Monroe Capital”), as Administrative Agent for the Lenders (the “Administrative Agent”).
RECITALS
WHEREAS, Borrowers, Holdings Companies, the Lenders party thereto, and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement, dated as of July 18, 2019, as amended by that certain Waiver and First Amendment, dated as of January 30, 2020, that certain Waiver and Second Amendment, dated as of May 14, 2020, that certain Waiver and Third Amendment, dated as of February 2, 2021, that certain Fourth Amendment, dated as of April 30, 2021, that certain Fifth Amendment, dated as of June 24, 2021, that certain Sixth Amendment, dated as of July 26, 2021, that certain Seventh Amendment, dated as of September 30, 2021, that certain Eighth Amendment, dated as of October 14, 2021, that certain Ninth Amendment, dated as of October 29, 2021, that certain Tenth Amendment, dated as of November 15, 2021, and that certain Eleventh Amendment, dated as of November 22, 2021 (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”, and as amended by this Amendment, the “Credit Agreement”);
WHEREAS, the Borrowers and Holdings Companies now desire that the Administrative Agent and the Lenders agree to make certain amendments to the Credit Agreement; and
WHEREAS, the Administrative Agent and the Lenders have agreed to do so, but only on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the matters set forth in the above Recitals and the covenants and provisions herein set forth, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
Section 1Amendment to Existing Credit Agreement. Subject to the effectiveness of this Amendment, including, without limitation, the satisfaction of the conditions of effectiveness set forth in Section 3 below, on the Amendment No. 9 Effective Date (as defined below), the Credit Agreement is hereby amended as follows:
1.1Section 1.1 of the Credit Agreement is hereby amended to add the following new defined term in appropriate alphabetical order:
Twelfth Amendment Effective Date” means March 30, 2022.



1.2Section 11.12.1 of the Credit Agreement is hereby amended by deleting the chart contained therein and replacing it with the following chart:
Computation Period EndingFixed Charge Coverage Ratio
September 30, 20210.20:1.00
December 31, 20210.20:1.00
March 31, 2022Not Tested
June 30, 20220.20:1.00
September 30, 20220.20:1.00
December 31, 2022 and each Computation Period ending thereafter1.00:1.00

1.3Section 11.12.2 of the Credit Agreement is hereby amended by deleting the chart contained therein and replacing it with the following chart:
Computation Period EndingTotal Leverage Ratio
September 30, 202118.00:1.00
December 31, 20216.10:1.00
March 31, 20227.15:1.00
June 30, 2022 and each Computation Period ending thereafter4:00:1.00
Section 2Definitions.     All capitalized terms used herein and not otherwise defined herein shall have the meanings given to them in the Credit Agreement as amended hereby.
Section 3Conditions Precedent to Effectiveness of Amendment. This Amendment shall become effective upon the satisfaction of each of the following conditions (the date on which all such conditions precedent have been satisfied, the “Twelfth Amendment Effective Date”):
1.1Administrative Agent shall have received a copy of this Amendment signed by the Loan Parties, the Administrative Agent and the Required Lenders;
3.2    Administrative Agent shall have received a fully executed copy of the Second Amendment to Second Lien Loan Agreement, dated as of the date of this Amendment, amending the Second Lien Loan Agreement in form and substance satisfactory to the Administrative Agent.
1.2Except as expressly set forth in Section 4.3, Administrative Agent shall have received evidence of payment by the Borrowers of all accrued and unpaid fees, costs and expenses incurred prior to or on the Twelfth Amendment Effective Date, including all Attorney Costs of the Administrative Agent incurred prior to or on the Twelfth Amendment Effective Date; and
1.3All representations and warranties set forth in Section 4 hereof are true and correct.
Section 4Fees. As consideration for, inter alia, the entry into this Amendment, the Borrowers agree to pay on a joint and several basis to the Administrative Agent, for the account of the Lenders, a fee equal to $500,000 (the “Twelfth Amendment Fee”). The Twelfth Amendment Fee shall be fully earned as of the date hereof and shall be due and payable on the Termination Date; provided, however, that the Twelfth Amendment Fee shall be waived in its entirety if indefeasible and final
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Payment In Full (other than the payment of any fee to the extent that the Administrative Agent has agreed to defer the payment of such fee to a date occurring after the Payment in Full of other Obligations) occurs prior to or on May 30, 2022.
Section 5Representations and Warranties. To induce the Administrative Agent and the Lenders to execute this Amendment, each Loan Party hereby represents and warrants to the Administrative Agent and the Lenders as follows:
1.1the execution, delivery and performance of this Amendment by the Loan Parties has been duly authorized, and this Amendment constitutes the legal, valid and binding obligation of each Loan Party, enforceable against such Loan Party in accordance with its terms, except as the enforceability may be limited by bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity;
1.2the execution, delivery and performance of this Amendment by each Loan Party does not require any consent or approval of any governmental agency or authority (other than (i) any consent or approval which has been obtained and is in full force and effect, or (ii) where the failure to obtain such consent would not reasonably be expected to result in a Material Adverse Effect);
1.3after giving effect to this Amendment and the transactions contemplated hereby, each of the representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects (unless any such representation or warranty is by its terms qualified by concepts of materiality, in which case that representation or warranty is true and correct in all respects) with the same effect as if then made (except to the extent stated to relate to a specific earlier date, in which case that representation or warranty is true and correct in all material respects or in all respects, as applicable, as of that earlier date); and
1.4after giving effect to this Amendment and the transactions contemplated hereby, no Default or Event of Default has occurred and is continuing or would result from the execution and effectiveness of this Amendment.
Section 6Ratification and Reaffirmation. Each Loan Party hereby ratifies and confirms the Credit Agreement and each other Loan Document to which it is a party, in each case, as amended prior to the date hereof and as amended hereby, each of which shall remain in full force and effect according to their respective terms. In connection with the execution and delivery of this Amendment and the other Loan Documents delivered herewith, each Loan Party, as borrower, debtor, grantor, mortgagor, pledgor, guarantor, assignor, obligor or in other similar capacities in which such Loan Party grants liens or security interests in its properties or otherwise acts as an accommodation party, guarantor, obligor or indemnitor or in such other similar capacities, as the case may be, in any case under any Loan Documents, hereby (a) ratifies, reaffirms, confirms and continues all of its payment and performance and other obligations, including obligations to indemnify, guarantee, act as surety, or as principal obligor, in each case contingent or otherwise, under each of such Loan Documents to which it is a party, (b) ratifies, reaffirms, confirms and continues its grant of liens on, or security interests in, and assignments of its properties pursuant to such Loan Documents to which it is a party as security for the Obligations, and (c) confirms and agrees that such liens and security interests secure all of the Obligations. Each Loan Party hereby consents to the terms and conditions of the Credit Agreement, as amended prior to the date hereof and as amended hereby. Each Loan Party acknowledges (i) that each of the Loan Documents to which it is a party remains in full force and effect, (ii) that each of the Loan Documents to which it is a party, as amended prior to the date hereof and as amended hereby, is hereby ratified, continued and confirmed, (iii) that any and all obligations of such Loan Party under any one or more such documents to which it is a party is hereby ratified, continued and reaffirmed, and (iv) that, to such Loan Party’s knowledge, there exists no offset, counterclaim, deduction or defense to any obligations described in this Section 5. This Amendment shall not constitute a course of dealing with the Administrative Agent or the Lenders at variance with the Credit Agreement or the other Loan Documents such as to require further notice by the Administrative Agent or the Lenders to require strict compliance with the terms of the Credit Agreement and the other Loan Documents in the future.
Section 7    Miscellaneous.
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1.1Signatures; Effect of Amendment. By executing this Amendment, each of the Loan Parties is deemed to have executed the Credit Agreement, as amended hereby, as a Borrower and a Loan Party (or, in the case of the Holdings Companies and the Guarantors, solely as a Loan Party). All such Loan Parties, the Administrative Agent, and the Lenders acknowledge and agree that (a) nothing contained in this Amendment in any manner or respect limits or terminates any of the provisions of the Credit Agreement or any of the other Loan Documents other than as expressly set forth herein and further agree and acknowledge that the Credit Agreement (as amended hereby) and each of the other Loan Documents remain and continue in full force and effect and are hereby ratified and confirmed, and (b) other than as expressly set forth herein, the obligations under the Credit Agreement and the guarantees, pledges and grants of security interests created under or pursuant to the Credit Agreement and the other Loan Documents continue in full force and effect in accordance with their respective terms and the Collateral secures and shall continue to secure the Loan Parties’ obligations under the Credit Agreement (as amended hereby) and any other obligations and liabilities provided for under the Loan Documents. Except to the extent expressly set forth herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any rights, power or remedy of the Administrative Agent or the Lenders under the Credit Agreement or any other Loan Document, nor constitute a waiver of any provision of the Credit Agreement or any other Loan Document, nor constitute a novation of any of the Obligations under the Credit Agreement or obligations under the Loan Documents. This Amendment does not extinguish the indebtedness or liabilities outstanding in connection with the Credit Agreement or any of the other Loan Documents. No delay on the part of the Administrative Agent or any Lender in exercising any of their respective rights, remedies, powers and privileges under the Credit Agreement or any of the Loan Documents or partial or single exercise thereof, shall constitute a waiver thereof. None of the terms and conditions of this Amendment may be changed, waived, modified or varied in any manner, whatsoever, except in accordance with Section 15.1 of the Credit Agreement.
1.2Counterparts. This Amendment may be executed electronically and 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 but one and the same instrument. Delivery of the executed counterpart of this Amendment by telecopy or electronic mail shall be as effective as delivery of a manually executed counterpart to this Amendment.
1.3Severability. The illegality or unenforceability of any provision of this Amendment or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Amendment or any instrument or agreement required hereunder.
1.4Captions. Section captions used in this Amendment are for convenience only, and shall not affect the construction of this Amendment.
1.5Entire Agreement. This Amendment embodies the entire agreement and understanding among the parties hereto and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof.
1.6References. Any reference to the Credit Agreement contained in any notice, request, certificate, or other document executed concurrently with or after the execution and delivery of this Amendment shall be deemed to include this Amendment unless the context shall otherwise require. Reference in any of this Amendment, the Credit Agreement, or any other Loan Document to the Credit Agreement shall be a reference to the Credit Agreement as amended hereby and as may be further amended, modified, restated, supplemented or extended from time to time.
1.7Governing Law. THIS AMENDMENT IS A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN THAT STATE, WITHOUT REGARD TO CONFLICT-OF-LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
1.8Payment of Costs and Expenses. Each Loan Party, jointly and severally, agree pursuant to the terms of Section 15.5 of the Credit Agreement, to pay on demand all reasonable out-of-
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pocket costs and expenses of the Administrative Agent incurred in connection with the transactions contemplated hereby (including Attorney Costs and Taxes) in connection with the preparation, execution and delivery of this Amendment and the other Loan Documents.
[Signatures Immediately Follow]
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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first written above.
LOAN PARTIES:IT GLOBAL HOLDING LLC, a Delaware limited liability company, as a Borrower and a Guarantor
By: /s/ Carolyn Cesar
Name: Carolyn Cesar
Title: Secretary

4TH SOURCE, LLC, a Delaware limited liability company, as a Borrower and a Guarantor
By: /s/ Carolyn Cesar
Name: Carolyn Cesar
Title: US CFO

AGILETHOUGHT LLC, a Florida limited liability company, as a Borrower
By: /s/ Carolyn Cesar
Name: Carolyn Cesar
Title: CFO
AN EVOLUTION, S. DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital variable incorporated under the laws of Mexico, as a Borrower
By: /s/ Mauricio Garduño
Name: Mauricio Garduño
Title: Attorney-in-fact
By: /s/ Manuel Senderos
Name: Manuel Senderos
Title: Attorney-in-fact


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AN GLOBAL LLC, a Delaware limited liability company, as a Holdings Company and a Guarantor
By: /s/ Carolyn Cesar
Name: Carolyn Cesar
Title: Secretary
AGILETHOUGHT, INC. (f/k/a AN GLOBAL INC.), a Delaware corporation, as a Holdings Company and a Guarantor
By: /s/ Manuel Senderos
Name: Manuel Senderos
Title: President



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4TH SOURCE HOLDING CORP., a Delaware corporation, as a Guarantor
By: /s/ Carolyn Cesar
Name: Carolyn Cesar
Title: Secretary
4TH SOURCE MEXICO, LLC, a Delaware limited liability company, as a Guarantor
By: 4TH SOURCE, LLC, Member
By: /s/ Carolyn Cesar
Name: Carolyn Cesar
Title: US CFO


AGS ALPAMA GLOBAL SERVICES USA LLC, a Delaware limited liability company, as a Guarantor
AGS ALPAMA GLOBAL SERVICES USA LLC, a Delaware limited liability company, as a Guarantor
By: QMX INVESTMENT HOLDINGS USA, Inc., Member
By: /s/ Manuel Senderos
Name: Manuel Senderos
Title: President

AN USA, a California corporation, as a Guarantor
By: /s/ Carolyn Cesar
Name: Carolyn Cesar
Title: Secretary
QMX INVESTMENT HOLDINGS USA, INC., a Delaware corporation, as a Guarantor

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AGILETHOUGHT SERVICIOS MÉXICO, S.A. DE C.V., a sociedad anónima de capital variable incorporated under the laws of Mexico, as a Guarantor
By: /s/ Mauricio Garduño
Name: Mauricio Garduño
Title: Attorney-in-fact
By: /s/ Manuel Senderos
Name: Manuel Senderos
Title: Attorney-in-fact



CUARTO ORIGEN, S DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital variable organized under the laws of Mexico, as a Guarantor
CUARTO ORIGEN, S DE R.L. DE C.V., a sociedad de responsabilidad limitada de capital variable organized under the laws of Mexico, as a Guarantor
By: /s/ Mauricio Garduño
Name: Mauricio Garduño
Title: Attorney-in-fact
By: /s/ Manuel Senderos
Name: Manuel Senderos
Title: Attorney-in-fact

ENTREPIDS MEXICO, S.A. DE C.V., a sociedad anonima de capital variable incorporated under the laws of Mexico, as a Guarantor
By: /s/ Mauricio Garduño
Name: Mauricio Garduño
Title: Attorney-in-fact
By: /s/ Manuel Senderos
Name: Manuel Senderos
Title: Attorney-in-fact


Signature page to Twelfth Amendment




ADMINISTRATIVE AGENT:
MONROE CAPITAL MANAGEMENT ADVISORS, LLC, as Administrative Agent
By: /s/ Jeffrey Cupples
Name: Jeffrey Cupples
Title: Managing Director




Signature page to Twelfth Amendment


LENDER:
MC FINANCING SPV I, LLC,
in its capacity as a Lender

By: /s/ Jeffrey Cupples
Name: Jeffrey Cupples
Title: Managing Director


































    
Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL CORPORATION,
in its capacity as a Lender
By: /s/ Jeffrey Cupples
Name: Jeffrey Cupples
Title: Managing Director

Signature page to Twelfth Amendment




LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND III FINANCING SPV LLC,
in its capacity as a Lender

By: MONROE CAPITAL PRIVATE CREDIT FUND III LP,
as Designated Manager

By: MONROE CAPITAL PRIVATE CREDIT FUND III LLC,
its general partner as Assignee

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND I FINANCING SPV LLC,
in its capacity as a Lender

By: MONROE CAPITAL PRIVATE CREDIT FUND I LP,
as Designated Manager

By: MONROE CAPITAL PRIVATE CREDIT FUND I LLC,
its general partner

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND II FINANCING SPV LLC,
in its capacity as a Lender

By: MONROE CAPITAL PRIVATE CREDIT FUND II LP,
as Designated Manager

By: MONROE CAPITAL PRIVATE CREDIT FUND II LLC,
its general partner

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND III LP,
in its capacity as a Lender


By: MONROE CAPITAL PRIVATE CREDIT FUND III LLC,
its general partner

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND III (UNLEVERAGED) LP,
in its capacity as a Lender


By: MONROE CAPITAL PRIVATE CREDIT FUND III LLC,
its general partner

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND II (UNLEVERAGED) LP,
in its capacity as a Lender


By: MONROE CAPITAL PRIVATE CREDIT FUND II LLC,
its general partner

Signature page to Twelfth Amendment






LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND A LP,
in its capacity as a Lender

By: MONROE CAPITAL PRIVATE CREDIT FUND A LLC,
its general partner

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND I LP,
in its capacity as a Lender


By: MONROE CAPITAL PRIVATE CREDIT FUND I LLC,
its general partner

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND II LP,
in its capacity as a Lender


By: MONROE CAPITAL PRIVATE CREDIT FUND II LLC,
its general partner

Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL FUND SV S.A.R.L., ACTING IN RESPECT OF ITS FUND III (UNLEVERAGED) COMPARTMENT,
in its capacity as a Lender
By: /s/ Jeffrey Cupples
Name: Jeffrey Cupples
Title: Managing Director
Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND III (LUX) FINANCING HOLDCO LP, in its capacity as a Lender

By: MONROE CAPITAL PRIVATE CREDIT FUND III (LUX) FINANCING HOLDCO GP LLC, its General Partner

By: MONROE CAPITAL MANAGEMENT ADVISORS LLC, as Manager
By: /s/ Jeffrey Cupples
Name: Jeffrey Cupples
Title: Managing Director
Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL PRIVATE CREDIT FUND III (LUX) FINANCING SPV LP, in its capacity as a Lender

By: MONROE CAPITAL PRIVATE CREDIT FUND III (LUX) FINANCING SPV GP LLC, its General Partner

By: MONROE CAPITAL MANAGEMENT ADVISORS LLC, as Manager
By: /s/ Jeffrey Cupples
Name: Jeffrey Cupples
Title: Managing Director
Signature page to Twelfth Amendment




LENDER:
MONROE CAPITAL FUND SV S.A.R.L., ACTING IN RESPECT OF ITS MARSUPIAL COMPARTMENT

By: MONROE CAPITAL MANAGEMENT ADVISORS LLC, as Investment Manager
By: /s/ Jeffrey Cupples
Name: Jeffrey Cupples
Title: Managing Director
Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL MML CLO 2017-1, LTD.,

By: MONROE CAPITAL MANAGEMENT LLC, as Asset Manager Attorney-in Fact
By: /s/ Seth Friedman
Name: Seth Friedman
Title: Managing Director
Signature page to Twelfth Amendment




LENDER:
MONROE CAPITAL MML CLO VI, LTD.

By: MONROE CAPITAL MANAGEMENT LLC, as Asset Manager and Attorney-in-fact
By: /s/ Seth Friedman
Name: Seth Friedman
Title: Managing Director
 

    
    
Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL MML CLO VII, LTD.

By: MONROE CAPITAL ASSET MANAGEMENT LLC, as Asset Manager and Attorney-in-fact
By: /s/ Seth Friedman
Name: Seth Friedman
Title: Managing Director


Signature page to Twelfth Amendment





LENDER:
MONROE CAPITAL MML CLO VIII, LTD.

By: MONROE CAPITAL ASSET MANAGEMENT LLC, as Asset Manager and Attorney-in-fact
By: /s/ Seth Friedman
Name: Seth Friedman
Title: Managing Director


Signature page to Twelfth Amendment