AMENDMENT NO. 4 TO COMMITMENT AGREEMENT
Exhibit 10.5
AMENDMENT NO. 4 TO COMMITMENT AGREEMENT
As of December 20, 2004
To the Subscribers under the
Commitment Agreement referred to below
Ladies and Gentlemen:
Reference is made to the Commitment Agreement, dated as of February 23, 2004, entered into by and among Oglebay Norton Company and the other parties (the “Subscribers”) signatory thereto, as amended by Amendments ▇▇. ▇, ▇▇. ▇ and No. 3 thereto (the “Agreement”). Defined terms used but not otherwise defined herein shall have the meaning ascribed to them in the Agreement.
The Company has proposed amendments to the Agreement (1) to change the date prior to which the Registration Statement must be declared effective from December 15, 2004 to December 30, 2004, (2) to change the date on which the non-completion of the Restructuring Transaction will become a Termination Event from January 15, 2005 to January 31, 2005, (3) to amend Schedule 1 attached hereto to correct the identity of certain of the original Subscribers and to amend and restate the respective beneficial ownership of Subordinated Notes, Commitment Amounts and Commitment Fees of each of the Subscribers as of the date hereof and (4) to amend the definition of “Plan Modifications” and “Amended Plan.”
Upon receipt of the Requisite Shareholders’ consent as described herein, the Agreement shall be amended as follows:
1. Preliminary Statement E of the Agreement shall be deleted in its entirety and replaced by the following:
“E. The Noteholders hold the principal amount of Subordinated Notes set forth opposite their respective names on Schedule 1 to Amendment No. 4 of this Agreement, which represents approximately 32.9% of the aggregate amount of Subordinated Notes outstanding.”
2. The references to “Schedule 1 to Amendment No. 2 to this Agreement” in Section 1(a) and Section 3(b) of the Agreement shall be deleted and replaced by “Schedule 1 to Amendment No. 4 to this Agreement.”
3. The reference to “December 15, 2004” in Section 2 of the Agreement shall be deleted and replaced by “December 30, 2004.”
4. Section 7(a)(vii) of the Agreement shall be deleted in its entirety and replaced by the following:
“(vii) the Restructuring Transaction is not completed by January 31, 2005.”
5. Schedule 1 attached hereto hereby corrects the identity of certain of the original Subscribers and amends and restates the respective beneficial ownership of Subordinated Notes, Commitment Amounts and Commitment Fees of each of the Subscribers as set forth on Schedule 1 to Amendment No. 2 to the Agreement to reflect as of the date hereof changes in beneficial ownership of Subordinated Notes by certain Noteholders.
6. The term “Amended Plan” as used in the Agreement shall mean the Company’s Second Amended Joint Plan of Reorganization of Debtors and Debtors in Possession as modified and dated July 30, 2004 and as further modified by the plan modifications filed with the Bankruptcy Court on November 12, 2004. The term “Plan Modifications” as used in the Agreement shall mean the plan modifications filed with the Bankruptcy Court on November 12, 2004 in connection with the Amended Plan.
The delivery to the Company of this letter duly executed by you will evidence your agreement to the amendments to the Agreement set forth above. These amendments will become effective, and binding upon the Company and all of the Subscribers, upon delivery to the Company of copies of this letter duly executed by the Requisite Subscribers.
The provisions of Section 14 of the Agreement relating to counterparts and facsimile signatures shall be applicable to this Amendment No. 4 to the Agreement.
[The balance of this page has been intentionally left blank.]
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Except as amended hereby, the Agreement shall remain in full force and effect in accordance with its terms.
| Very truly yours, | ||
| OGLEBAY NORTON COMPANY | ||
| By: |
/s/ ▇▇▇▇▇▇▇▇ ▇. Walk | |
| Name: |
▇▇▇▇▇▇▇▇ ▇. Walk | |
| Title: |
Vice President, General Counsel & Secretary | |
3
NOTEHOLDERS:
SUBSCRIBERS
| Airlie Opportunity Master Fund, LTD. | ||
| By: |
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇ | |
| Name: |
▇▇▇▇▇▇ ▇▇▇▇▇ | |
| Title: |
Managing Director | |
| Berlin Capital Growth, L.P. | ||
| By: |
Berlin Financial, Ltd., its general partner | |
| /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | ||
| Name: |
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |
| Title: |
Managing Member | |
| ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ | ||
| By: |
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ | |
| ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇ Value Partners, L.P. | ||
| By: |
/s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ | |
| Name: |
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ | |
| Title: |
General Partner | |
| Legacy Aggressive High Yield Fund | ||
| By: | Banc One High Yield Partners, LLC | |
| By: |
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Name: |
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Title: |
Managing Director/General Counsel | |
4
| One Group High Yield Bond Fund | ||
| By: | Banc One High Yield Partners, LLC | |
| By: |
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Name: |
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Title: |
Manager | |
| One Group Income Bond Fund | ||
| By: | Banc One High Yield Partners, LLC | |
| By: |
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Name: |
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Title: |
Manager | |
| Pacholder High Yield Fund, Inc. | ||
| By: | Banc One High Yield Partners, LLC | |
| By: |
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Name: |
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Title: |
Secretary | |
| Southern UTE Permanent Fund | ||
| By: | Banc One High Yield Partners, LLC | |
| By: |
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Name: |
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Title: |
Manager | |
| WCI Steel, Inc. Defined Pension Benefit Plan | ||
| By: | Banc One High Yield Partners, LLC | |
| By: |
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Name: |
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, ▇▇. | |
| Title: |
Manager | |
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| THIRD PARTY INVESTORS | ||
| ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ Trust | ||
| By: |
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ | |
| Name: |
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ | |
| Title: |
Trustee | |
| Fledgling Associates LLC | ||
| By: |
/s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇ | |
| Name: |
▇▇▇▇▇▇ ▇. ▇▇▇▇▇ | |
| Title: |
Authorized Signatory | |
| J ▇▇▇▇▇▇ Investments LLC | ||
| By: |
Berlin Financial, Ltd., its investment advisor | |
| /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | ||
| Name: |
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇ | |
| Title: |
Managing Member | |
| ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ | ||
| By: |
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ | |
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Schedule 1
Noteholders
| Beneficial Holder |
Principal Amount of Notes Beneficially Owned |
Basic Commitment Amount |
Total Commitment Amount including Standby Commitment if applicable |
Commitment Fee | ||||||||
| Airlie Opportunity Master Fund, LTD.1 |
$ | 4,750,000 | $ | 3,800,000 | $ | 10,090,161 | $ | 390,508 | ||||
| ▇▇▇▇▇▇, ▇▇▇▇▇▇ |
$ | 500,000 | $ | 400,000 | $ | 400,000 | $ | 8,000 | ||||
| Berlin Capital Growth, L.P. |
$ | 1,125,000 | $ | 900,000 | $ | 1,682,813 | $ | 57,141 | ||||
| Blythefield Farms LLC |
$ | 100,000 | $ | 80,000 | $ | 80,000 | $ | 1,600 | ||||
| ▇▇▇▇▇, ▇. ▇▇▇▇▇▇▇▇ |
$ | 400,000 | $ | 320,000 | $ | 871,859 | $ | 33,993 | ||||
| ▇▇▇▇▇▇▇, ▇▇▇▇▇▇ |
$ | 10,000 | $ | 8,000 | $ | 597,423 | $ | 29,631 | ||||
| CFG Trust |
$ | 250,000 | $ | 200,000 | $ | 200,000 | $ | 4,000 | ||||
| Connecticut General Life Insurance |
$ | 2,000,000 | $ | 1,600,000 | $ | 1,600,000 | $ | 32,000 | ||||
| ▇▇▇▇▇▇▇, ▇▇▇▇▇▇ |
$ | 320,000 | $ | 256,000 | $ | 807,183 | 32,679 | |||||
| ▇▇▇▇▇▇▇▇▇, ▇▇▇▇ |
$ | 1,000,000 | $ | 800,000 | $ | 1,902,637 | $ | 71,132 | ||||
| ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ |
$ | 620,000 | $ | 496,000 | $ | 496,000 | $ | 9,920 | ||||
| ▇▇▇▇▇, ▇▇▇▇ |
$ | 100,000 | $ | 80,000 | $ | 544,836 | $ | 24,842 | ||||
| ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ ▇▇▇ |
$ | 100,000 | $ | 80,000 | $ | 80,000 | $ | 1,600 | ||||
| ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇. |
$ | 400,000 | $ | 320,000 | $ | 320,000 | $ | 6,400 | ||||
| ▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ |
$ | 120,000 | $ | 96,000 | $ | 96,000 | $ | 1,920 | ||||
| Heritage ▇▇▇▇ Foundation |
$ | 2,300,000 | $ | 1,840,000 | $ | 1,840,000 | $ | 36,800 | ||||
| ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇ Value Part. L.C. |
$ | 8,700,000 | $ | 6,960,000 | $ | 20,988,418 | $ | 840,621 | ||||
| ▇▇▇▇▇▇▇, ▇▇▇▇ |
$ | 150,000 | $ | 120,000 | $ | 120,000 | $ | 2,400 | ||||
| ▇▇▇▇▇▇▇, ▇▇▇▇ |
$ | 300,000 | $ | 240,000 | $ | 240,000 | $ | 4,800 | ||||
| ▇▇▇▇▇▇▇, ▇▇▇▇ |
$ | 400,000 | $ | 320,000 | $ | 320,000 | $ | 6,400 | ||||
| Legacy Aggressive High Yield Fund |
$ | 150,000 | $ | 120,000 | $ | 120,000 | $ | 2,400 | ||||
| One Group High Yield Bond Fund |
$ | 4,250,000 | $ | 3,400,000 | $ | 6,487,528 | $ | 222,376 | ||||
| One Group Income Bond Fund |
$ | 500,000 | $ | 400,000 | $ | 400,000 | $ | 8,000 | ||||
| Pacholder High Yield Fund, Inc. |
$ | 2,250,000 | $ | 1,800,000 | $ | 2,563,473 | $ | 74,174 | ||||
| ▇▇▇▇▇ 1990 Living Trust |
$ | 200,000 | $ | 160,000 | $ | 160,000 | $ | 3,000 | ||||
| ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ Trust |
$ | 175,000 | $ | 140,000 | $ | 140,000 | $ | 2,800 | ||||
| 1 | Successor in interest to Airlie Opportunity Fund, L.P. and Airlie Opportunity Fund Cayman, LTD. |
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| Beneficial Holder |
Principal Amount of Notes Beneficially Owned |
Basic Commitment Amount |
Total Commitment Amount including Standby Commitment if applicable |
Commitment Fee | ||||||||
| ▇▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ Trust |
$ | 100,000 | $ | 80,000 | $ | 80,000 | $ | 1,600 | ||||
| ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ Trust |
$ | 100,000 | $ | 80,000 | $ | 80,000 | $ | 1,600 | ||||
| ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇. |
$ | 100,000 | $ | 80,000 | $ | 80,000 | $ | 1,600 | ||||
| ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇ Trust |
$ | 75,000 | $ | 60,000 | $ | 60,000 | $ | 1,200 | ||||
| ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇ ▇. |
$ | 300,000 | $ | 240,000 | $ | 792,399 | $ | 32,420 | ||||
| ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ |
$ | 75,000 | $ | 60,000 | $ | 60,000 | $ | 1,200 | ||||
| ▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇. |
$ | 150,000 | $ | 120,000 | $ | 1,094,264 | $ | 51,113 | ||||
| Southern UTE Permanent Fund2 |
$ | 241,000 | $ | 192,800 | $ | 192,800 | $ | 3,856 | ||||
| Steadfast LLC |
$ | 100,000 | $ | 80,000 | $ | 80,000 | $ | 1,600 | ||||
| ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇ Trust |
$ | 150,000 | $ | 120,000 | $ | 120,000 | $ | 2,400 | ||||
| Abigail ▇▇▇▇▇ ▇▇▇▇▇▇ Trust |
$ | 200,000 | $ | 160,000 | $ | 160,000 | $ | 3,200 | ||||
| WCI Steel, Inc. Defined Pension Benefit Plan |
$ | 100,000 | $ | 80,000 | $ | 80,000 | $ | 1,600 | ||||
| Noteholders Total | $ | 32,861,000 | $ | 26,288,800 | $ | 56,027,794 | $ | 2,012,526 | ||||
Third Party Investors
| Third Party Investor |
Commitment Amount |
Commitment Fee | ||||
| ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ Trust |
$ | 524,000 | $ | 10,480 | ||
| Fledgling Associates LLC |
$ | 5,540,194 | $ | 277,010 | ||
| Gator Investment Company |
$ | 1,108,039 | $ | 55,402 | ||
| ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇. |
$ | 3,324,116 | $ | 166,206 | ||
| ▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇. |
$ | 3,324,116 | $ | 166,206 | ||
| J ▇▇▇▇▇▇ Investments LLC |
$ | 8,967,547 | $ | 304,497 | ||
| ▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ |
$ | 3,324,116 | $ | 166,206 | ||
| ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇ |
$ | 120,000 | $ | 2,400 | ||
| ▇▇▇▇▇, ▇▇▇▇ |
$ | 1,108,039 | $ | 55,402 | ||
| ▇▇▇▇▇, ▇▇▇▇▇▇ ▇. |
$ | 1,108,039 | $ | 55,402 | ||
| ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ & Company, Incorporated |
$ | 524,000 | $ | 10,480 | ||
| Third Party Investors Total | $ | 28,972,206 | $ | 1,269,691 | ||
| Overall Totals:
|
Commitment Amount |
Commitment Fee | ||||
| $ | 85,000,000 | $ | 3,282,217 | |||
| 2 | Successor in interest to Southern UTE Growth Fund. |
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