Third Amendment to Credit Agreement among RCN Corporation, Subsidiaries, and Lenders, dated May 31, 2001

Summary

This amendment updates the terms of a credit agreement originally made in 1999 between RCN Corporation, its subsidiaries, and several lenders, with The Chase Manhattan Bank as agent. The amendment modifies definitions and certain provisions regarding the purchase of company debt, sets new conditions for such purchases, and clarifies that all other terms of the original agreement remain unchanged. The amendment becomes effective once all parties sign and certain conditions are met, including payment of fees and confirmation of no existing defaults.

EX-4.1 3 y52451ex4-1.txt THIRD AMENDMENT DATED AS OF MAY 31, 2001 1 Exhibit 4.1 CONFORMED COPY THIRD AMENDMENT dated as of May 31, 2001 (this "Amendment"), to the Credit Agreement, dated as of June 3, 1999, as amended (the "Credit Agreement"), among RCN CORPORATION, (the "Company"), RCN TELECOM SERVICES, INC. (formerly known as RCN Telecom Services of Pennsylvania, Inc.), RCN FINANCIAL MANAGEMENT, INC., UNET HOLDING, INC., and RCN INTERNET SERVICES, INC. (formerly known as ENET Holding, Inc.) (collectively, the "Borrowers"), the LENDERS party thereto, and THE CHASE MANHATTAN BANK, as Administrative Agent and Collateral Agent. WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make certain loans to the Borrowers; and WHEREAS the Company and the Borrowers have requested that certain provisions of the Credit Agreement be modified in the manner provided for in this Amendment, and the Lenders are willing to agree to such modifications as provided for in this Amendment. NOW, THEREFORE, the parties hereto hereby agree as follows: 1. Defined Terms. Capitalized terms used and not defined herein shall have the meanings given to them in the Credit Agreement, as amended hereby. 2. Amendments to the Credit Agreement. (a) Section 1.01 of the Credit Agreement is hereby amended by adding the following definition in its proper alphabetical order: 2 "'Non-Cash Pay Preferred Stock' means preferred Equity Interest of the Company which (i) is not mandatorily redeemable, in whole or part, or required to be repurchased or reacquired, in whole or in part (except to the extent that such mandatory redemption, repurchase or reacquisition is required pursuant to a customary change of control put provision), by the Company or any Restricted Subsidiary, and which does not require any payment of cash dividends, in each case, prior to the date that is six months after the Tranche B Maturity Date, (ii) is not secured by any assets of the Company or any Restricted Subsidiary, (iii) is not Guaranteed by any Restricted Subsidiary and (iv) is not exchangeable or convertible into Indebtedness of the Company or any Restricted Subsidiary or any Equity Interest (other than Non-Cash Pay Preferred Stock or common stock of the Company) of the Company or any Subsidiary." (b) Section 6.08 of the Credit Agreement is amended by (i) deleting the word "and" at the end of clause (vii), (ii) deleting the period at the end of clause (viii) and replacing it with "; and", and (iii) inserting the following new clause at the end of the Section: "(ix) the purchase by the Company of Indebtedness of the Company or a Restricted Subsidiary other than any Joint Venture Subsidiary solely with equity proceeds of, or solely in exchange for, common stock of the Company or Non-Cash Pay Preferred Stock of the Company, provided that (a) the Indebtedness so purchased in each case is promptly cancelled by the Company, (b) no Default or Event of Default then exists and none would exist after giving effect to such purchase or exchange, (c) such purchases and exchanges are in each case permitted by the relevant documentation governing such Indebtedness, (d) if such purchases are made with equity proceeds, they are in each case made within 90 days of the date of receipt by the Company of such equity proceeds, and (e) the amount of such purchases made with 3 equity proceeds shall not exceed $300,000,000 in the aggregate." 3. No Other Amendments or Waivers; Confirmation. Except as expressly amended hereby, the provisions of the Credit Agreement are and shall remain in full force and effect. Nothing herein shall be deemed to entitle the Borrowers to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any Loan Document in similar or different circumstances. 4. Representations and Warranties. The Company and the Borrowers hereby represent and warrant to the Agent and the Lenders that, as of the date hereof: (a) No Default or Event of Default has occurred and is continuing; and (b) All representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects. 5. Conditions Precedent to Effectiveness. This Amendment shall become effective on the date on which each of the following conditions is satisfied (the "Effective Date"): (a) The Agent shall have received counterparts hereof duly executed and delivered by the Company, the Borrowers and the Required Lenders; (b) The Agent shall have received a certificate, dated the Effective Date and signed by the President, a Vice President or a Financial Officer of the Company, confirming compliance as of such date with the conditions set forth in paragraphs (a) and (b) of Section 4.02 of the Credit Agreement; (c) The Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including reasonable fees, charges and disbursements 4 of counsel) required to be reimbursed or paid by any Loan Party hereunder or under any other Loan Document; and (d) On the Effective Date, the Borrowers shall pay a fee to each Lender that executes and delivers this Amendment on or prior to 5:00pm New York City time on June 12, 2001 equal to 0.125% of the aggregate amount, without duplication, of such Lender's Loans and utilized and unutilized Commitments as of the Effective Date. 6. Expenses. The Borrowers agree to reimburse the Agent for its out-of-pocket expenses in connection with this Amendment, including the reasonable fees, charges and disbursements of Cravath, Swaine & Moore, counsel for the Agent. 7. Governing Law; Counterparts. (a) This Amendment and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York. (b) This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. This Amendment may be delivered by facsimile transmission of the relevant signature pages hereof. 5 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their duly authorized officers as of the day and year first above written. RCN CORPORATION, by /s/ Keith D. Terreri ------------------------------------------------ Name: Keith D. Terreri Title: VP & Treasurer RCN TELECOM SERVICES, INC. by /s/ Keith D. Terreri ------------------------------------------------ Name: Keith D. Terreri Title: VP & Treasurer RCN FINANCIAL MANAGEMENT, INC., by /s/ Keith D. Terreri ------------------------------------------------ Name: Keith D. Terreri Title: VP & Treasurer UNET HOLDING, INC., by /s/ Keith D. Terreri ------------------------------------------------ Name: Keith D. Terreri Title: VP & Treasurer RCN INTERNET SERVICES, INC., by /s/ Keith D. Terreri ------------------------------------------------ Name: Keith D. Terreri Title: VP & Treasurer THE CHASE MANHATTAN BANK by /s/ John J. Huber III ------------------------------------------------ Name: John J. Huber III 6 Title: Managing Director SEQUILS - CUMBERLAND I, LTD. by /s/ Mark E. Wittnebel ------------------------------------------------ Name: Mark E. Wittnebel Title: Senior Vice President MORGAN STANLEY SENIOR FUNDING by /s/ Steve Hannan ------------------------------------------------ Name: Steve Hannan Title: Vice President BANK OF MONTREAL by /s/ W. T. CALDER ------------------------------------------------ Name: W. T. Calder Title: Managing Director BAYERESCHE HYPO-UND VEREINSBANK AG, NEW YORK BRANCH by /s/ Timothy Harrod ------------------------------------------------ Name: Timothy Harrod Title: Managing Director by /s/ Chris Yu ------------------------------------------------ Name: Chris Yu Title: Associate Director 7 BLACK DIAMOND INTERNATIONAL FUNDING, LTD. by /s/ David Dyer ------------------------------------------------ Name: David Dyer Title: Director BLACK DIAMOND CLO 2000-1 LTD. by /s/ John H. Cullinane ------------------------------------------------ Name: John H. Cullinane Title: Director BLACK DIAMOND CLO 1999-1 LTD. by /s/ John. H. Cullinane ------------------------------------------------ Name: John H. Cullinane Title: Director ALLSTATE LIFE INSURANCE COMPANY by /s/ Ronald Mendel ------------------------------------------------ Name: Ronald Mendel Title: Authorized Signatory by /s/ Charles D. Mires ------------------------------------------------ Name: Charles D. Mires Title: Authorized Signatory AIMCO CDO Series 2000-A by /s/ Ronald Mendel ------------------------------------------------ Name: Ronald Mendel Title: Authorized Signatory 8 by /s/ Charles D. Mires ------------------------------------------------ Name: Charles D. Mires Title: Authorized Signatory ARES LEVERAGED INVESTMENT FUND, L.P. by /s/ David A. Sachs ------------------------------------------------ Name: David A. Sachs Title: Vice President ARES LEVERAGED INVESTMENT FUND II, L.P. by /s/ David A. Sachs ------------------------------------------------ Name: David A. Sachs Title: Vice President ARES III CLO LTD. by /s/ David A. Sachs ------------------------------------------------ Name: David A. Sachs Title: Vice President ARES IV CLO LTD by /s/ David A. Sachs ------------------------------------------------ Name: David A. Sachs Title: Vice President BEAR STERNS INVESTMENT GROUP by /s/ Keith C. Barnish ------------------------------------------------ Name: Keith C. Barnish 9 Title: Senior Managing Director MUIRFIELD TRADING LLC by /s/ Ann E. Morris ------------------------------------------------ Name: Ann E. Morris Title: Assistant Vice President ELT LTD. by /s/ Ann E. Morris ------------------------------------------------ Name: Ann E. Morris Title: Assistant Vice President SRF 2000 LLC by /s/ Ann E. Morris ------------------------------------------------ Name: Ann E. Morris Title: Assistant Vice President PPM SPYGLASS FUNDING TRUST 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 10 Title: Authorized Agent OLYMPIC FUNDING TRUST, SERIES 1999-1 by /s/ Ann E. Morris ------------------------------------------------ Name: Ann E. Morris Title: Authorized Agent AERIES FINANCE-II LTD. by /s/ Thomas H. B. Ewald ------------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory AMARA-1 FINANCE, LTD. by /s/ Thomas H. B. Ewald ------------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory AVALON CAPITAL LTD. by /s/ Thomas H. B. Ewald ------------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory AVALON CAPITAL LTD. 2 by /s/ Thomas H. B. Ewald ------------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory CERES FINANCE LTD. 11 by /s/ Thomas H. B. Ewald ------------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory STRATA FUNDING LTD. by /s/ Thomas H. B. Ewald ------------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory STANFIELD/RMF TRANSATLANTIC CDO LTD. by /s/ Thomas H. B. Ewald ------------------------------------------------ Name: Thomas H. B. Ewald Title: Authorized Signatory WINDSOR LOAN FUNDING, LIMITED by /s/ Gregory L. Smith ------------------------------------------------ Name: Gregory L. Smith Title: Partner STANFIELD CLO LTD. by /s/ Gregory L. Smith ------------------------------------------------ Name: Gregory L. Smith Title: Partner FIRST UNION NATIONAL BANK by /s/ Brand Hosford ------------------------------------------------ Name: Brand Hosford Title: Vice President 12 TORONTO DOMINION (NEW YORK), INC. by /s/ Susan K. Strong ------------------------------------------------ Name: Susan K. Strong Title: Vice President PROMETHEUS INVESTMENT FUNDING NO. 1 LTD by /s/ Timothy L. Harrod ------------------------------------------------ Name: Timothy L. Harrod Title: Director by /s/ Chris Yu ------------------------------------------------ Name: Chris Yu Title: Associate Director FUJI BANK, LIMITED by /s/ Nobuoki Koike ------------------------------------------------ Name: Nobuoki Koike Title: Vice President KZH CNC LLC by /s/ Susan Lee ------------------------------------------------ Name: Susan Lee Title: Authorized Agent 13 KZH CYPRESS TREE-1 LLC by /s/ Susan Lee ------------------------------------------------ Name: Susan Lee Title: Authorized Agent KZH ING-1 LLC by /s/ Susan Lee ------------------------------------------------ Name: Susan Lee Title: Authorized Agent KZH ING-2 LLC by /s/ Susan Lee ------------------------------------------------ Name: Susan Lee Title: Authorized Agent KZH ING-3 LLC by /s/ Susan Lee ------------------------------------------------ Name: Susan Lee Title: Authorized Agent KZH LANGDALE LLC by /s/ Susan Lee ------------------------------------------------ Name: Susan Lee Title: Authorized Agent 14 KZH RIVERSIDE LLC by /s/ Susan Lee ------------------------------------------------ Name: Susan Lee Title: Authorized Agent FRANKLIN CLO I, LTD. by /s/ Chauncey Lufkin ------------------------------------------------ Name: Chauncey Lufkin Title: Vice President FRANKLIN FLOATING RATE TRUST by /s/ Chauncey Lufkin ------------------------------------------------ Name: Chauncey Lufkin Title: Vice President BHF (USA) Capital Corporation by /s/ Richard Cameron ------------------------------------------------ Name: Richard Cameron Title: Vice President by /s/ Andrew L. Shipman ------------------------------------------------ Name: Andrew L. Shipman Title: Associate Portfolio Management MORGAN GUARANTY TRUST (Spl. Sit. Fund) by /s/ John J. Huber III ------------------------------------------------ Name: John J. Huber III Title: Managing Director 15 MORGAN GUARANTY CO. (MGT HIGH YIELD) by /s/ John Huber ------------------------------------------------ Name: John Huber Title: Managing Director IBM CREDIT CORPORATION by /s/ Thomas S. Curcio ------------------------------------------------ Name: Thomas S. Curcio Title: Manager of Credit FLEET NATIONAL BANK by /s/ Amy B. Peden ------------------------------------------------ Name: Amy B. Peden Title: Assistant Vice President SALOMON BROTHERS HOLDING COMPANY INC. by /s/ James P. Gabvid ------------------------------------------------ Name: James P. Gabvid Title: Attorney-In-Fact STEIN ROE FLOATING RATE LIMITED LIABILITY COMPANY by /s/ James R. Fellows ------------------------------------------------ Name: James R. Fellows Title: Senior Vice President 16 LIBERTY - STEIN ROE ADVISOR FLOATING RATE ADVANTAGE FUND by /s/ James R. Fellows ------------------------------------------------ Name: James R. Fellows Title: Sr. Vice President & Portfolio Manager MOUNTAIN CAPITAL CLO I, LTD by /s/ Chris Siddons ------------------------------------------------ Name: Chris Siddons Title: Director ML CLO XIX STERLING (CAYMAN) LTD. by /s/ Todd Travers ------------------------------------------------ Name: Todd Travers Title: Senior Portfolio Manager PAMCO CAYMAN LTD. by /s/ Todd Travers ------------------------------------------------ Name: Todd Travers Title: Senior Portfolio Manager HIGHLAND LEGACY LIMITED by /s/ Todd Travers ------------------------------------------------ Name: Todd Travers Title: Senior Portfolio Manager 17 METROPOLITAN LIFE INSURANCE COMPANY by /s/ James R. Dingler ------------------------------------------------ Name: James R. Dingler Title: Director ORIX USA CORPORATION by /s/ Hiroyuki Miyauchi ------------------------------------------------ Name: Hiroyuki Miyauchi Title: Executive Vice President FOOTHILL INCOME TRUST II., L.P. by /s/ Dennis R. Ascher ------------------------------------------------ Name: Dennis R. Ascher Title: Managing Member NORSE CBO, LTD. by /s/ Timothy Peterson ------------------------------------------------ Name: Timothy Peterson Title: President DEUTSHCE BANK AG NEW YORK BRANCH by /s/ Colleen Roux ------------------------------------------------ Name: Colleen Roux Title: Director by /s/ Alexander Richarz ------------------------------------------------ Name: Alexander Richarz 18 Title: Vice President ELC (Cayman) Ltd. by /s/ Adrienne Musgnug ------------------------------------------------ Name: Adrienne Musgnug Title: Director ELC (Cayman) Ltd. CDO Series 1999-1 by /s/ Adrienne Musgnug ------------------------------------------------ Name: Adrienne Musgnug Title: Director ELC (Cayman) Ltd. 1999-II by /s/ Adrienne Musgnug ------------------------------------------------ Name: Adrienne Musgnug Title: Director ELC (Cayman) Ltd. 1999-III by /s/ Adrienne Musgnug ------------------------------------------------ Name: Adrienne Musgnug Title: Director KEMPER FLOATING RATE FUND by /s/ Ken Weber ------------------------------------------------ Name: Ken Weber Title: Senior Vice President ADDISON CDO, LIMITED (Acct 1279) 19 by /s/ Raymond G. Kennedy ------------------------------------------------ Name: Raymond G. Kennedy Title: Executive Vice President BEDFORD CDO, LIMITED (Acct 1276) by /s/ Raymond G. Kennedy ------------------------------------------------ Name: Raymond G. Kennedy Title: Executive Vice President CAPTIVA III FINANCE LTD. (Acct 275) by /s/ David Egglishaw ------------------------------------------------ Name: David Egglishaw Title: Director CAPTIVA IV FINANCE LTD. (Acct 1275) by /s/ David Egglishaw ------------------------------------------------ Name: David Egglishaw Title: Director DELANO Company (Acct 274) by /s/ Raymond G. Kennedy ------------------------------------------------ Name: Raymond G. Kennedy Title: Executive Vice President 20 JISSEKIKUN FUNDING, LTD. (Acct. 1288) by /s/ Raymond G. Kennedy ------------------------------------------------ Name: Raymond G. Kennedy Title: Executive Vice President MERRILL LYNCH CAPITAL CORP. by /s/ Carl J. E. Feeley ------------------------------------------------ Name: Carl J. E. Feeley Title: Vice President PNC BANK, NATIONAL ASSOCIATION by /s/ Jeffrey E. Hauser ------------------------------------------------ Name: Jeffrey E. Hauser Title: Vice President