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EXHIBIT 10.47
(NATIONSBANK LETTERHEAD)
NationsBank, N.A.
▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
TEL ▇▇▇ ▇▇▇-▇▇▇▇
October 7, 1998
WESTPOINT ▇▇▇▇▇▇▇ INC.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇. ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
Re: Revision of Definition of "Maximum Restricted Payment Amount"
and Minimum Net Worth Covenant
Dear Sirs:
Reference is made to that certain Second Amended and Restated Credit Agreement,
dated as of June 9, 1998, among WestPoint ▇▇▇▇▇▇▇ Inc. ("Borrower"), WestPoint
▇▇▇▇▇▇▇ (UK) Limited and WestPoint ▇▇▇▇▇▇▇ (Europe) Limited (the "Foreign
Borrowers"), the various banks and lending institutions party thereto (the
"Banks"), and NationsBank, N.A. as agent (the "Agent") for the Banks, as
amended by that certain Amendment Agreement dated as of July 31, 1998 (as
amended from time to time, the "Credit Agreement"). Capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in the Credit
Agreement.
By their signatures below, the Borrower, the Foreign Borrowers and the Required
Banks hereby agree that the existing definition of "Maximum Restricted Payment
Amount" in Section 1.1 of the Credit Agreement shall be amended to read in its
entirety as follows:
"Maximum Restricted Payment Amount" means the sum of (i)
$84,210,000, plus (ii) 50% of the Consolidated Net Income from and
after March 31, 1998 until any relevant measurement date, plus (iii)
the Net Cash Proceeds received by the Borrower from the exercise of
stock warrants or options by employees or former employees of the
Borrower in respect of Capital Stock of the Borrower from and after
March 31, 1998, plus (iv) $21,790,978 (representing the Net Cash
Proceeds received by Alamac Sub Holdings Inc. from the sale of its
facility located in Whitmire, South Carolina), and (v) beginning with
the fiscal quarter ending nearest December 31, 1998, minus the lesser
of $50,000,000 or 50% of the Consolidated Net Income from and after
October 1, 1998 until any relevant measurement date.
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WestPoint ▇▇▇▇▇▇▇ Inc.
October 7, 1998
Page 2
By their signatures below, the Borrower, the Foreign Borrowers and the Required
Banks hereby agree that Section 7.11(a) be amended to read in its entirety as
follows:
Minimum Consolidated Net Worth. Have a Consolidated Net Worth
as of the last day of each fiscal quarter of not less than (i)
$205,000,000, (ii) increased on a cumulative basis as of the end of
each fiscal quarter of the Consolidated Parties, commencing with the
fiscal quarter ending June 30, 1998, by an amount equal to forty
percent (40%) of Consolidated Net Income (to the extent positive) for
the fiscal quarter then ended, and (iii)further increased on a
cumulative basis as of the end of each fiscal quarter of the
Consolidated Parties beginning with the fiscal quarter ending nearest
December 31, 1998 by an amount equal to the lesser of (A) fifty
percent (50%) of Consolidated Net Income (to the extent positive) for
each such fiscal quarter or (B) $50,000,000.
By their signatures below, each of the Subsidiary Guarantors acknowledges and
consents to this revision in the definition of "Maximum Restricted Payment
Amount" and each Subsidiary Guarantor agrees that this revision does not
operate to reduce or discharge any of such Subsidiary's obligations under any
of the Collateral Documents.
Until this letter agreement shall have been executed by the Borrower, the
Foreign Borrowers, the Subsidiary Guarantors, and the Required Banks, it shall
not be effective in revising either the definition of "Maximum Restricted
Payment Amount" or Section 7.11(a). Except for the revision to the definition
of "Maximum Restricted Payment Amount" and the revision of Section 7.11(a)
effected hereby upon the execution of this letter agreement by the Borrower,
the Foreign Borrowers, the Subsidiary Guarantors, and the Required Banks, the
Credit Agreement shall remain in full force and effect.
Please execute this letter agreement and cause each of the Foreign Borrowers
and the Subsidiary Guarantors to execute this letter agreement, and return such
completed signature pages to the Agent at your earliest convenience.
Sincerely,
NATIONSBANK, N.A., in its capacity
as the Agent
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
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ACKNOWLEDGED AND AGREED:
WESTPOINT ▇▇▇▇▇▇▇ INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
------------------------------
Title: Executive Vice President
Finance and Chief Financial
Officer
[Signatures Continued]
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WestPoint ▇▇▇▇▇▇▇ Inc.
October 7, 1998
Page 3
WESTPOINT ▇▇▇▇▇▇▇ (UK) LIMITED
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
Title: Director, Vice President & Treasurer
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WESTPOINT ▇▇▇▇▇▇▇ (EUROPE) LIMITED
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
Title: Director, Vice President & Treasurer
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WESTPOINT ▇▇▇▇▇▇▇ STORES, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
Title: Vice President & Treasurer
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▇.▇. ▇▇▇▇▇▇▇ & CO., INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
Title: Vice President & Treasurer
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WEST POINT-PEPPERELL ENTERPRISES, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President & Assistant Treasurer
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▇.▇. ▇▇▇▇▇▇▇ ENTERPRISES, INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President & Assistant Treasurer
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ALAMAC HOLDINGS INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President & Assistant Treasurer
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[Signatures Continued]
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WestPoint ▇▇▇▇▇▇▇ Inc.
October 7, 1998
Page 4
ALAMAC SUB HOLDINGS INC.
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President & Assistant Treasurer
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NATIONSBANK, N.A., as a Bank
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Title: Vice President
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THE BANK OF NEW YORK
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Title: Vice President
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THE FIRST NATIONAL BANK OF CHICAGO
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
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SCOTIABANC INC.
By: /s/ P.M. ▇▇▇▇▇
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P. M. ▇▇▇▇▇
Title: Relationship Manager
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WACHOVIA BANK, N.A.
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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Title: Senior Vice President
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[Signatures Continued]
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WestPoint ▇▇▇▇▇▇▇ Inc.
October 7, 1998
Page 5
SOCIETE GENERALE
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇▇
Vice President
Title: Southwest Operations Manager
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ABN AMRO BANK, N.V.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
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Title: Vice President
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By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
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▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Title: Vice President
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SUNTRUST BANK, ATLANTA
By: /s/ ▇▇▇▇▇ ▇▇▇▇
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▇▇▇▇▇ ▇▇▇▇
Title: Senior Vice President
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By: /s/ ▇▇▇▇▇▇ ▇▇▇▇
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▇▇▇▇▇▇ ▇▇▇▇
Title: Banking Officer
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FIRST UNION NATIONAL BANK
By: /s/ ▇▇▇▇▇ ▇▇▇▇
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Title: Senior Vice President
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FLEET BANK, N.A.
By:
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Title:
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[Signatures Continued]
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WestPoint ▇▇▇▇▇▇▇ Inc.
October 7, 1998
Page 6
AMSOUTH BANK
By:
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Title:
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COOPERATIEVE CENTRALE RAIFFEISEN-
BOERENLEENBANK B.A., "RABOBANK NEDERLAND",
NEW YORK BRANCH
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇
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▇▇▇▇▇▇▇▇ ▇. ▇▇▇
Title: Vice President
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By: /s/ W. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
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W. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
Senior Credit Officer
Title: Senior Vice President
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NATIONAL WESTMINSTER BANK PLC
By: /s/ ▇. ▇▇▇▇▇
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▇. ▇▇▇▇▇
Title: Senior Corporate Manager
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