Second Amendment to Credit Agreement

EX-10.3 3 d18673exv10w3.txt SECOND AMENDMENT TO CREDIT AGREEMENT EXHIBIT 10.3 SECOND AMENDMENT TO CREDIT AGREEMENT THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as of April 16, 2004, is by and among MediaNews Group, Inc. (the "Borrower"), the guarantors identified on the signature pages hereto (the "Guarantors"), the Guarantors parties hereto, the Lenders parties hereto, and Bank of America, N.A., as administrative agent for the Lenders (in such capacity, the "Administrative Agent"). RECITALS 1. The Borrower, the Guarantors, the Lenders, the Administrative Agent, the Syndication Agent and the Documentation Agent entered into that certain Credit Agreement dated as of December 30, 2003, as amended pursuant a First Amendment to Credit Agreement dated as of January 20, 2004 (as previously amended, the "Existing Credit Agreement"). Capitalized terms used herein which are not defined herein and which are defined in the Existing Credit Agreement shall have the same meanings as therein defined. 2. The Borrower has requested that certain provisions of the Existing Credit Agreement be amended. 3. The parties have agreed to amend the Existing Credit Agreement as set forth herein. NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: AGREEMENT 1. Amendments to Credit Agreement. (A) The definition of "DNA" set forth in Section 1.01 of the Existing Credit Agreement is amended in its entirety to read as follows: "DNA" means Denver Newspaper Agency LLP, a Delaware limited liability partnership. (B) A new clause (ix) is hereby added to Section 7.01(f) of the Existing Credit Agreement to read as follows: (ix) to the extent the Borrower has knowledge thereof, the occurrence of any event or condition as a consequence of which the ability of any Limited Guarantor, Restricted Subsidiary that is not a Guarantor or JOA (A) to declare and pay dividends or make any other distributions on shares of its Capital Stock is limited for any period of time or (B) to pay any obligation owed by it to the Borrower or any Restricted Subsidiary is limited for any period of time pursuant to any covenant or restriction described in clauses (1)(y) of the exception to clause (ii) of Section 8.22(a). (C) Section 8.22 of the Existing Credit Agreement is amended in its entirety to read as follows: 8.22 ADDITIONAL LIMITATIONS ON RESTRICTED SUBSIDIARIES OR JOAS THAT ARE NOT GUARANTORS. (a) In respect of Limited Guarantors, Restricted Subsidiaries that are not Guarantors and JOAs, (i) permit (A) the aggregate outstanding amount of all Indebtedness of such Persons required to be consolidated with the Borrower and its Restricted Subsidiaries in accordance with Section 1.03(d) (excluding Indebtedness in respect of the Denver Synthetic Lease and any Intercompany Debt) to exceed $75,000,000 or (B) the aggregate outstanding amount of all Indebtedness attributable to any one of such Person and which is required to be consolidated with the Borrower and its Restricted Subsidiaries in accordance with Section 1.03(d) (excluding Indebtedness in respect of the Denver Synthetic Lease and any Intercompany Debt) to exceed $50,000,000, or (ii) permit to exist, at any time, any consensual restriction limiting the ability (whether by covenant, event of default, subordination or otherwise) of any such Person to (A) pay dividends or make any other distributions on shares of its Capital Stock or (B) pay any obligation owed to the Borrower or any Restricted Subsidiary or (C) create any Lien upon its property or assets whether now owned or hereafter acquired or upon any income or profits therefrom, except that this clause (ii) shall not apply to (1) any covenant or restriction contained in any Contract evidencing or providing for the creation of or concerning Indebtedness of any such Person permitted to be outstanding hereunder and limiting the ability of such Person (x) to pay dividends or make any other distributions on shares of its Capital Stock during the existence of any default or event of default with respect to such Indebtedness, (y) to pay any obligation owed to the Borrower or any Restricted Subsidiary during the existence of any default or event of default with respect to such Indebtedness or (z) to create any Lien upon its property or assets whether now owned or hereafter acquired or upon any income or profits therefrom or (2) to restrictions of the kinds described in the definitions of "Permitted Liens" or "Permitted Restrictive Covenants" set forth in Section 1.01 or described in Schedule 8.22. (b) Permit any JOA to fail to make such corporate, partnership or limited liability company distributions or otherwise transfer its cash and cash equivalents to the Borrower or any of the Restricted Subsidiaries, so that, as a result of such distributions and transfers, such JOA (and its Subsidiaries) shall own or hold cash and cash equivalents not in excess of $10,000,000 as of the end of any fiscal month. 2. Conditions Precedent. This Amendment shall become effective upon receipt by the Administrative Agent of counterparts of this Amendment, which collectively shall have been duly executed on behalf of each of the Borrower, the Guarantors and the Required Lenders. 3. Representations and Warranties. The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that, after giving effect to this Amendment, (a) the representations and warranties set forth in Article VI of the Credit Agreement are, subject to the 2 limitations set forth therein, true and correct in all material respects as of the date hereof (except for those which expressly relate to an earlier date) and (b) no Default or Event of Default exists under the Credit Agreement or any of the other Loan Documents. 4. Reaffirmation of Obligations. Each Loan Party hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective Obligations. 5. Instrument Pursuant to Credit Agreement. This Amendment is a Loan Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of hereof, all references in the Loan Documents to the "Credit Agreement" shall be deemed to refer to the Credit Agreement as amended by this Amendment. 6. Counterparts/Telecopy. This Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. This Amendment may be transmitted and/or signed by facsimile. The effectiveness of any such documents and signatures shall, subject to applicable Law, have the same force and effect as manually signed originals and shall be binding on all Loan Parties, the Administrative Agent and the Lenders. The Administrative Agent may also require that any such documents and signatures be confirmed by a manually signed original thereof; provided, however, that the failure to request or deliver the same shall not limit the effectiveness of any facsimile document or signature. 7. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK. 8. Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 3 IN WITNESS WHEREOF the Borrower, the Guarantors and the Required Lenders have caused this Amendment to be duly executed on the date first above written. BORROWER: MEDIANEWS GROUP, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer GUARANTORS: ALASKA BROADCASTING COMPANY, INC., an Alaska corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer CHARLESTON PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer CONNECTICUT NEWSPAPERS PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer THE DENVER POST CORPORATION, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer EASTERN COLORADO PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer EASTERN COLORADO PRODUCTION FACILITIES, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer FITCHBURG INTERNET MEDIA PUBLISHING COMPANY, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer FITCHBURG PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer GRAHAM NEWSPAPERS, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer HANOVER PUBLISHING CO., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer KEARNS-TRIBUNE, LLC, a Delaware limited liability company By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer LONG BEACH PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer LOS ANGELES DAILY NEWS PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer LOWELL INTERNET MEDIA PUBLISHING COMPANY, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer LOWELL PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer MEDIANEWS GROUP INTERACTIVE, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer NEW ENGLAND INTERNET MEDIA PUBLISHING, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer NEW ENGLAND NEWSPAPERS, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer NEW MEXICO-TEXAS MEDIANEWS GROUP INTERACTIVE, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer NEW MEXICO-TEXAS MEDIANEWS LLC, a Delaware limited liability company By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer NIMITZ PAPER COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer NORTHWEST NEW MEXICO PUBLISHING COMPANY, a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer RATE WATCH, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer WEST COAST MEDIANEWS LLC, a Delaware limited liability company By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer YORK NEWSPAPERS, INC., a Delaware corporation By: /s/ Ronald A. Mayo ----------------------------------------------- Name: Ronald A. Mayo Title: Vice President & Chief Financial Officer ADMINISTRATIVE AGENT: BANK OF AMERICA, N.A. By: /s/ Derrick C. Bell ----------------------------------------------- Name: Derrick C. Bell Title: Principal LENDERS: WACHOVIA BANK, N.A. By: /s/ Mark Cook ----------------------------------------------- Name: Mark Cook Title: Director SunTrust Bank, Inc. By: /s/ Kip Hurd ----------------------------------------------- Name: Kip Hurd Title: Vice President DEUTSCHE BANK TRUST COMPANY AMERICAS By: /s/ Susan L. LeFevre ----------------------------------------------- Name: Susan L. LeFevre Title: Director KEYBANK NATIONAL ASSOCIATION By: /s/ Laura E. Thozeski ----------------------------------------------- Name: Laura E. Thozeski Title: Assistant Vice President UNION BANK OF CALIFORNIA, N.A. By: /s/ Lena Bryant ----------------------------------------------- Name: Lena Bryant Title: Senior Vice President SENIOR DEBT PORTFOLIO By: Boston Management and Research as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President EATON VANCE INSTITUTIONAL SENIOR LOAN FUND By: Eaton Vance Management as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President EATON VANCE CDO III, LTD. By: Eaton Vance Management as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President CONSTANTINUS EATON VANCE CDO V, LTD. By: Eaton Vance Management as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President EATON VANCE CDO VI LTD. By: Eaton Vance Management as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President GRAYSON & CO By: Boston Management And Research as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President EATON VANCE VT FLOATING-RATE INCOME FUND By: Eaton Vance Management as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President TOLLI & CO. By: Eaton Vance Management as Investment Advisor By: /s/ Michael B. Botthof ----------------------------------------------- Name: Michael B. Botthof Title: Vice President APEX (IDM) DCO I, LTD. ELC (CAYMAN) LTD. 1999-II ELC (CAYMAN) LTD. 1999-III ELC (CAYMAN) LTD. 2000-I TRYON CLO LTD. 2000-I By: David L. Babson & Company Inc. as Collateral Manager By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title: Managing Director BABSON CLO LTD. 2003-I By: David L. Babson & Company Inc. as Collateral Manager By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title: Managing Director C.M. LIFE INSURANCE COMPANY By: David L. Babson & Company Inc. as Investment Sub-Adviser By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title: Managing Director MAPLEWOOD (CAYMAN) LIMITED By: David L. Babson & Company Inc. under delegated authority from Massachusetts Mutual Life Insurance Company as Investment Manager By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title: Managing Director BILL & MELINDA GATES FOUNDATION By: David L. Babson & Company as Investment Adviser By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title: Managing Director SEABOARD CLO 2000 LTD. By: David L. Babson & Company Inc. as Collateral Manager By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title: Managing Director SUFFIELD CLO, LIMITED By: David L. Babson & Company Inc. as Collateral Manager By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title:Managing Director SIMSBURY CLO, LIMITED By: David L. Babson & Company Inc. under delegated authority from Massachusetts Mutual Life Insurance Company as Collateral Manager By: /s/ Adrienne Musgnug ----------------------------------------------- Name: Adrienne Musgnug Title: Managing Director U.S. BANK NATIONAL ASSOCIATION By: /s/ Colleen B. McEvoy ----------------------------------------------- Name: Colleen B. McEvoy Title: Vice President THE BANK OF NEW YORK By: /s/ Kristen Talaber ----------------------------------------------- Name: Kristen Talaber Title: Vice President SIERRA CLO I By: /s/ John M. Casparian ----------------------------------------------- Name: John M. Casparian Title: Chief Operating Officer Centre Pacific Manager LASALLE BANK N.A. By: /s/ Nate Pahner ----------------------------------------------- Name: Nate Pahner Title: Loan Officer TORONTO DOMINION (NEW YORK), INC. By: /s/ Gwen Zirkle ----------------------------------------------- Name: Gwen Zirkle Title: Vice President BANK OF AMERICA, N.A. By: /s/ Derrick C. Bell ----------------------------------------------- Name: Derrick C. Bell Title: Principal FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE INCOME FUND By: Four Corners Capital Management LLC as Collateral Manager By: /s/ Steven Columbaro ----------------------------------------------- Name: Steven Columbaro Title: Vice President SECURITY BENEFIT LIFE INSURANCE COMPANY By: Four Corners Capital Management LLC as Collateral Manager By: /s/ Steven Columbaro ----------------------------------------------- Name: Steven Columbaro Title: Vice President FOXE BASIN CLO 2003, LTD. By: Royal Bank of Canada as Collateral Manager By: /s/ Melissa Marano ----------------------------------------------- Name: Melissa Marano Title: Authorized Signatory HAMILTON CDO, LTD. By: Stanfield Capital Partners LLC as its Collateral Manager By: /s/ Christopher E. Jansen ----------------------------------------------- Name: Christopher E. Jansen Title: Managing Partner SANFIELD QUATTRO CLO, LTD. By: Stanfield Capital Partners LLC as its Collateral Manager By: /s/ Christopher E. Jansen ----------------------------------------------- Name: Christopher E. Jansen Title: Managing Partner SANFIELD/RMF TRANSATLANTIC CDO LTD. By: Stanfield Capital Partners LLC as its Collateral Manager By: /s/ Christopher E. Jansen ----------------------------------------------- Name: Christopher E. Jansen Title: Managing Partner APEX (TRIMARAN) CDO I, LTD. By: Trimaran Advisors, L.L.C. By: /s/ David M. Millison ----------------------------------------------- Name: David M. Millison Title: Managing Director BY: CALLIDUS DEBT PARTNERS CLO FUND II, LTD. By: Its Collateral Manager, Callidus Capital Management, LLC By: /s/ Mavis Taintor ----------------------------------------------- Name: Mavis Taintor Title: Managing Director COLUMBIA FLOATING RATE LIMITED LIABILITY COMPANY By: Columbia Management Advisors, Inc., as Advisor By: /s/ Brian W. Good ----------------------------------------------- Name: Brian W. Good Title: Senior Vice President & Portfolio Manager COLUMBIA FLOATING RATE ADVANTAGE FUND By: Columbia Management Advisors, Inc., as Advisor By: /s/ Brian W. Good ----------------------------------------------- Name: Brian W. Good Title: Senior Vice President & Portfolio Manager CREDIT LYONNAIS NEW YORK BRANCH By: /s/ Attila Koc ----------------------------------------------- Name: Attila Koc Title: Senior Vice President& Portfolio Manager SANKATY ADVISORS, LLC as Collateral Manager for A VERY POINT CLO, LTD., as Term Lender By: /s/ Diane Exter ----------------------------------------------- Name: Diane Exter Title: Managing Director/Portfolio Manager SANKATY ADVISORS, LLC as Collateral Manager for CASTLE HILL II - INGOTS, LTD., as Term Lender By: /s/ Diane Exter ----------------------------------------------- Name: Diane Exter Title: Managing Director/Portfolio Manager SANKATY ADVISORS, LLC as Collateral Manager for CASTLE HILL III CLO, LIMITED, as Term Lender By: /s/ Diane Exter ----------------------------------------------- Name: Diane Exter Title: Managing Director/Portfolio Manager SEMINOLE FUNDING LLC By: /s/ Ann E. Morris ----------------------------------------------- Name: Ann E. Morris Title: Assistant Vice President WINGED FOOT FUNDING TRUST By: /s/ Ann E. Morris ----------------------------------------------- Name: Ann E. Morris Title: Authorized Agent JUPITER LOAN FUNDING LLC By: /s/ Ann E. Morris ----------------------------------------------- Name: Ann E. Morris Title: Assistant Vice President GENERAL ELECTRIC CAPITAL CORPORATION By: /s/ Robert M. Kadlick ----------------------------------------------- Name: Robert M. Kadlick Title: Duly Authorized Signatory KZH PONDVIEW LLC By: /s/ Dorian Herrera ----------------------------------------------- Name: Dorian Herrera Title: Authorized Agent FRANKLIN FLOATING RATE TRUST By: /s/ Richard Hsu ----------------------------------------------- Name: Richard Hsu Title: Vice President FRANKLIN FLOATING RATE MASTER SERIES By: /s/ Richard Hsu ----------------------------------------------- Name: Richard Hsu Title: Vice President FRANKLIN FLOATING RATE DAILY ACCESS FUND By: /s/ Richard Hsu ----------------------------------------------- Name: Richard Hsu Title: Vice President FRANKLIN TEMPLETON LIMITED DURATION FUND By: /s/ Richard Hsu ----------------------------------------------- Name: Richard Hsu Title: Vice President FRANKLIN CLO II, LTD. By: /s/ Richard Hsu ----------------------------------------------- Name: Richard Hsu Title: Vice President FRANKLIN CLO III, LTD. By: /s/ Richard Hsu ----------------------------------------------- Name: Richard Hsu Title: Vice President WELLS FARGO BANK, N.A. By: /s/ Catherine M. Jones ----------------------------------------------- Name: Catherine M. Jones Title: Vice President