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EXHIBIT 10.37
[NATIONSBANK LETTERHEAD]
October 3, 1996
▇▇. ▇▇▇▇▇▇ ▇▇▇▇
Ridgeview, Inc.
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇▇▇.
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Re: Loan and Security Agreement (Revolving Loans) dated as of January 10,
1995, between Ridgeview, Inc. ("Ridgeview"), and NationsBank N.A. (the
"Bank"), as amended, ("Revolving Loan Agreement") and Loan and
Security Agreement (Term Loan) dated as of January 10, 1995, between
Ridgeview and the Bank as amended, ("Term Loan Agreement").
Dear ▇▇▇▇▇▇:
You have requested that, upon completion of Ridgeview's initial public
offering of its common stock and subsequent repayment of a large portion of its
Revolving Credit Loans to the Bank, the Bank consider improving the pricing on
the Revolving Credit Loans and the Term Loan. All capitalized terms not defined
herein shall have the meanings ascribed to them in either the Revolving Loan
Agreement or Term Loan Agreement.
In response to your request, the Bank hereby commits to change the rate at
which interest is charged on both the Revolving Credit Loans and the Term Loans
for any given month to a rate equal to the amount set forth in the following
chart opposite the leverage of Ridgeview's domestic business as of the last day
of the prior month:
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Pricing
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Leverage Prime-based option Libor-based option
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< 1.50:1 Prime L + 2.00%
> 1.50:1, < 2.00:1 Prime L + 2.25%
> 2.00:1, < 2.50:1 Prime + 0.25% L + 2.50%
> 2.50:1, < 3.00:1 Prime + 0.5 % L + 2.75%
> 3.00:1, < 3.50:1 Prime + 0.75% L + 3.00%
> 3.50:1 Prime + 1.00% L + 3.25%
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In addition, the Bank will reduce the Administration Fee from $10,000 per
year to $5,000 per year unless you request LIBOR options be made available
daily on the Revolving Credit Loan, in which case the fee will remain at
$10,000. The length of periods for which LIBOR options shall be available will
total not less than 14 days for the Term Loan.
These modifications of the Revolving Loan Agreement will be subject to
documentation satisfactory to the Bank in its sole discretion and the
completion of your initial public offering.
Sincerely,
NATIONSBANK, N.A.
/s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇
Vice President
SKG/dbm
cc: credit / chrono
