EXHIBIT 10.30
AMENDMENT NO. 2
TO
SECOND AMENDED AND RESTATED
CREDIT AGREEMENT
This Amendment No. 2 to Second Amended and Restated Credit
Agreement (this "Amendment"), dated as of December 23, 2005, amends that
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certain Second Amended and Restated Credit Agreement, dated as of March 25,
2004, as amended by Amendment No. 1 to Second Amended and Restated Credit
Agreement, dated as of February 8, 2005 (as so amended, the "Agreement"),
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among the financial institutions from time to time parties hereto (such
financial institutions, together with their respective successors and
assigns, are referred to hereinafter each individually as a "Lender" and
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collectively as the "Lenders"), Bank of America, N.A., with an office at 55
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Xxxxx Xxxx Xxxxxx, Xxxxx 000, Xxxxxxxx, Xxxxxxxxxx 00000, as administrative
agent for the Lenders (in its capacity as agent, the "Agent"), Cenveo, Inc.
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(f/k/a Mail-Well, Inc.), a Colorado corporation ("Parent"), Cenveo
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Corporation (f/k/a Mail-Well I Corporation), a Delaware corporation
("Cenveo"), and certain subsidiaries of Cenveo (Cenveo and each such
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subsidiary, individually, a "Borrower", and, collectively, the "Borrowers").
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Capitalized terms used and not otherwise defined herein shall have the
meanings ascribed to such terms in the Agreement.
R E C I T A L S
WHEREAS, Parent, the Borrowers, the Lenders and the Agent have
entered into the Agreement;
WHEREAS, Parent and the Borrowers desire to amend the Agreement in
order to amend, among other things, the definitions of "Applicable Margin"
and the Fixed Charge Coverage Ratio covenant; and
WHEREAS, the Agent and the Lenders are willing to do so, subject to
the terms and conditions stated herein.
NOW, THEREFORE, in consideration of the premises herein contained
and other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Agent, the Lenders, Parent and the Borrowers
hereby agree as follows.
A G R E E M E N T
Section 1. Amendment to the Agreement. The Agent, the Lenders,
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Parent and the Borrowers agree that the Agreement shall be amended as
follows:
A. Section 2.5 is hereby amended by deleting the phrase
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"equal to the Applicable Unused Line Fee Margin" in its entirety and
substituting therefor the new phrase "equal to the Applicable Margin with
respect to the Unused Line Fee".
B. Section 2.6 is hereby amended by deleting the phrase
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"equal to the Applicable Margin then in effect for LIBOR Revolving Loans" in
its entirety and substituting
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therefor the new phrase "equal to the Applicable Margin with respect to the
Letter of Credit Fee".
C. Sections 5.2(e) and (h) are hereby amended in their
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entirety to read as follows:
(e) No later than the fifteenth day of each Fiscal Year,
annual forecasts (to include forecasted consolidated and
consolidating (by business segment) balance sheets, income
statements and cash flow statements) for Parent and its
Subsidiaries as at the end of and for each month of such Fiscal
Year; provided, however, Parent and the Borrower may furnish to the
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Agent such annual forecast for Fiscal Year ending December 31, 2006
on or before March 1, 2006;
(h) If requested by Agent, a copy of all management
reports and management letters prepared for such Loan Party by any
independent certified public accountants;
D. Section 7.13(k) is hereby amended in its entirety to
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read as follows:
(k) Debt assumed or acquired as a consequence of a
Permitted Acquisition; provided, however, that immediately before
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and after giving effect to the proposed Permitted Acquisition, the
Borrower shall have Availability of not less than $50,000,000 and
Parent shall have a Fixed Charge Coverage Ratio of not less than
1.00:1.00 on a pro-forma basis, taking such proposed Permitted
Acquisition into account; and provided, further, such Debt is
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either unsecured or is secured by Liens permitted under clause (g)
of the definition of "Permitted Liens";
E. Section 7.22 is hereby amended in its entirety to read
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as follows:
7.22 Fixed Charge Coverage Ratio. During each Financial
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Covenant Trigger Period, Parent shall maintain a Fixed Charge
Coverage Ratio of not less than 1.00:1.00. The Fixed Charge
Coverage Ratio shall be calculated as of the last day of each
fiscal month of Parent, on the basis of the 12 fiscal month period
ending on such date, and based upon the most recently delivered
monthly Financial Statements and compliance certificates received
by the Agent in accordance with Section 5.2 (which may be for a
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fiscal month ended prior to the commencement of a Financial
Covenant Trigger Period). For purposes of this Section 7.22,
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"Financial Covenant Trigger Period" means the period commencing
upon the date, if any, upon which Availability has been less than
either $50,000,000 for 5 consecutive Business Days or $25,000,000
at any time, and continuing until the first day of any fiscal month
on which each of the following is true: (a) Parent has demonstrated
a Fixed Charge Coverage Ratio of not less than 1.00:1.00 as of the
immediately preceding fiscal month end; (b) Availability has not
been less than $50,000,000 at any time during the 30 day period
ending on the immediately preceding fiscal month end; and (c) no
subsequent Financial Covenant Trigger Period has commenced and is
continuing.
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F. The definition of "Applicable Margin" in Annex A of the
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Agreement is hereby amended in its entirety to read as follows:
"Applicable Margin" means
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(i) with respect to Base Rate Loans and all other
Obligations (other than LIBOR Rate Loans, the Unused Line Fee and
Letter of Credit Fee), 0.25%; and
(ii) with respect to LIBOR Rate Loans, 1.75%;
(iii) with respect to the Unused Line Fee, 0.25%; and
(iv) with respect to the Letter of Credit Fee, 1.75%.
The Applicable Margins shall be adjusted (up or down)
prospectively on a quarterly basis commencing on April 1, 2006, and
thereafter on July 1, October 1, January 1, and April 1 of each
year as determined by the Adjusted Average Availability for the
most recently ended quarter. Adjustments in Applicable Margins
shall be determined by reference to the following grids:
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IF ADJUSTED AVERAGE AVAILABILITY IS: LEVEL OF APPLICABLE MARGINS:
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Greater than or equal to $200,000,000 Level I
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Less than $200,000,000 but greater than or equal to Level II
$150,000,000
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Less than $150,000,000 but greater than or equal to Level III
$90,000,000
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Less than $90,000,000 but greater than or equal to Level IV
$50,000,000
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Less than $50,000,000 Level V
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APPLICABLE MARGINS
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LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V
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Base Rate Revolving 0.00% 0.00% 0.25% 0.25% 0.50%
Loans
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LIBOR Revolving Loans 1.25% 1.50% 1.75% 2.00% 2.25%
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APPLICABLE MARGINS
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LEVEL I LEVEL II LEVEL III LEVEL IV LEVEL V
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Unused Line Fee 0.35% 0.30% 0.25% 0.25% 0.25%
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Letter of Credit Fee 1.25% 1.50% 1.75% 2.00% 2.25%
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If a Default or Event of Default has occurred and is continuing at
the time any reduction in the Applicable Margins is to be
implemented, no reduction may occur until the first day of the
first calendar month following the date on which such Default or
Event of Default is waived or cured.
G. A new definition of "Adjusted Average Availability"
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shall be added to Annex A of the Agreement which shall read as follows:
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"Adjusted Average Availability" means, as of any date of
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measurement, the average daily Availability calculated over a 90
day period, for the most recently completed fiscal quarter of
Borrowers, as determined by the Agent based upon its internal
records.
H. The definition of "Applicable Unused Line Fee Margin"
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in Annex A of the Agreement is hereby deleted in its entirety.
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Section 2. Conditions. The effectiveness of this Amendment is
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subject to the satisfaction of the following conditions precedent:
A. Amendment. A fully executed copy of this Amendment
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signed by Parent, the Borrowers, and all of the Lenders shall be delivered
to the Agent, together with a consent hereto from the Guarantors;
B. Other Documents. Parent and the Borrowers shall have
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executed and delivered to the Agent such other documents and instruments as
the Agent may reasonably require in furtherance of this Amendment.
Section 3. Miscellaneous.
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A. Survival of Representations and Warranties. All
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representations and warranties made in the Agreement or any other document
or documents relating thereto, including, without limitation, any Loan
Document furnished in connection with this Amendment, shall survive the
execution and delivery of this Amendment and the other Loan Documents, and
no investigation by Agent or Lenders or any closing shall affect the
representations and warranties or the right of Agent or Lenders to rely
thereon;
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B. Reference to Agreement. The Agreement, each of the Loan
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Documents, and any and all other agreements, documents or instruments now or
hereafter executed and delivered pursuant to the terms hereof, or pursuant
to the terms of the Agreement as amended hereby, are hereby amended so that
any reference therein to the Agreement shall mean a reference to the
Agreement as amended hereby;
C. Agreement Remains in Effect. The Agreement and the Loan
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Documents, as amended hereby, remain in full force and effect and the
Borrowers ratify and confirm their agreements and covenants contained
therein. Parent and the Borrowers hereby confirm that, after giving effect
to this Amendment, no Event of Default or Default exists as of the effective
date thereof;
D. Severability. Any provision of this Amendment held by a
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court of competent jurisdiction to be invalid or unenforceable shall not
impair or invalidate the remainder of this Amendment and the effect thereof
shall be confined to the provision so held to be invalid or unenforceable;
E. APPLICABLE LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND
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CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS (AS OPPOSED TO THE CONFLICT
OF LAWS PROVISIONS PROVIDED THAT ISSUES WITH RESPECT TO THE CREATION,
PERFECTION, AND ENFORCEMENT OF LIENS UNDER DIVISION 9 OF THE UCC MAY GIVE
EFFECT TO APPLICABLE CHOICE OR CONFLICT OF LAW RULES SET FORTH IN ARTICLE 9
OF THE UCC) OF THE STATE OF CALIFORNIA; PROVIDED, THAT THE AGENT AND THE
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LENDERS SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW;
F. Successors and Assigns. This Amendment is binding upon
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and shall inure to the benefit of Agent, the Lenders, Parent and the
Borrowers and their respective successors and assigns; provided, however,
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that Parent and the Borrowers may not assign or transfer any of their rights
or obligations hereunder without the prior written consent of the Lenders;
G. Counterparts. This Amendment may be executed in one or
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more counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the
same instrument;
H. Headings. The headings, captions and arrangements used
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in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment;
I. NO ORAL AGREEMENTS. THIS AMENDMENT, TOGETHER WITH THE
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OTHER LOAN DOCUMENTS AS WRITTEN, REPRESENTS THE FINAL AGREEMENT AMONG THE
AGENT, THE LENDERS, PARENT AND THE BORROWERS AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE AGENT, THE
LENDERS, PARENT AND THE BORROWERS;
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IN WITNESS WHEREOF, the parties have executed this Amendment on the
date first above written.
"PARENT"
CENVEO, INC.,
a Colorado corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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"BORROWERS"
CENVEO CORPORATION,
a Delaware corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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CENVEO SERVICES, LLC,
a Colorado limited liability company
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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DISCOUNT LABELS, INC.,
an Indiana corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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S-1
Amendment No. 2
to Second Amended and Restated
Credit Agreement
CENVEO WEST, INC.,
a Delaware corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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CENVEO GOVERNMENT PRINTING, INC.,
a Colorado corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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S-2
Amendment No. 2
to Second Amended and Restated
Credit Agreement
The undersigned (the "U.S. Guarantors"), (i) consent to and approve
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the execution and delivery of this Amendment by the parties hereto, (ii)
agree that this Amendment does not and shall not limit or diminish in any
manner the obligations of each of the U.S. Guarantors pursuant to the
guarantees delivered in connection with the Agreement (the "U.S.
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Guarantees") by each of the undersigned and that such obligations would not
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be limited or diminished in any manner even if the U.S. Guarantors had not
executed this Amendment, (iii) agree that this Amendment shall not be
construed as requiring the consent of the U.S. Guarantors in any other
circumstance, (iv) reaffirm each of their obligations under the U.S.
Guarantees, and (v) agree that the U.S. Guarantees remains in full force and
effect and each is hereby ratified and confirmed.
"U.S. GUARANTORS"
CENVEO, INC.,
a Colorado corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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CENVEO INTERNATIONAL HOLDINGS, INC.,
a Colorado corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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CENVEO TEXAS FINANCE, LP,
a Texas limited partnership
By: Cenveo Corporation,
a Delaware corporation
Its: General Partner
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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S-3
Amendment No. 2
to Second Amended and Restated
Credit Agreement
MMTP HOLDINGS, INC.,
a Colorado corporation
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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CENVEO COMMERCIAL OHIO, LLC,
a Colorado limited liability company
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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CENVEO RESALE OHIO, LLC,
a Colorado limited liability company
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: CFO
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S-4
Amendment No. 2
to Second Amended and Restated
Credit Agreement
The undersigned (the "Canadian Guarantors"), (i) consent to and
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approve the execution and delivery of this Amendment by the parties hereto,
(ii) agree that this Amendment does not and shall not limit or diminish in
any manner the obligations of each of the Canadian Guarantors pursuant to
the guarantees delivered in connection with the Agreement (the "Canadian
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Guarantees") by each of the undersigned and that such obligations would not
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be limited or diminished in any manner even if the Canadian Guarantors had
not executed this Amendment, (iii) agree that this Amendment shall not be
construed as requiring the consent of the Canadian Guarantors in any other
circumstance, (iv) reaffirm each of their obligations under the Canadian
Guarantees, and (v) agree that the Canadian Guarantees remains in full force
and effect and each is hereby ratified and confirmed.
"CANADIAN GUARANTORS"
SUPREMEX INC.,
a company organized under the laws of Canada
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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CENVEO CANADA LEASING COMPANY INC.,
a company organized under the laws of the Province
of Nova Scotia
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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PNG INC.,
a company organized under the laws of the Province
of Ontario
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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S-5
Amendment No. 2
to Second Amended and Restated
Credit Agreement
CLASSIC ENVELOPE PLUS LTD.,
a company organized under the laws of the Province
of British Columbia
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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INNOVA ENVELOPE INC. - ENVELOPPE
INNOVA INC., a company organized under the laws
of the Province of Ontario
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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CENVEO ALBERTA FINANCE, LIMITED
PARTNERSHIP, a limited partnership organized
under the laws of the Province of Alberta
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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CENVEO XXXXXXX, XXXXXX AND XXXX
COMPANY, a company organized under the laws
of the Province of Nova Scotia
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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S-6
Amendment No. 2
to Second Amended and Restated
Credit Agreement
CENVEO MM&T PACKAGING COMPANY,
a company organized under the laws of the
Province of Nova Scotia
By: /s/ Xxxx X. Xxxxxxxx
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Name: Xxxx X. Xxxxxxxx
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Title: Sr. VP
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S-7
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"AGENT"
BANK OF AMERICA, N.A.,
as the Agent
By: /s/ Xxxxxx Xxxxxxx
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Name: Xxxxxx Xxxxxxx
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Title: Vice President
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S-8
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
BANK OF AMERICA, N.A.,
as a Lender
By: /s/ Xxxxxx Xxxxxxx
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Name: Xxxxxx Xxxxxxx
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Title: Vice President
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S-9
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
GENERAL ELECTRIC CAPITAL
CORPORATION,
as a Lender
By: /s/ Xxxxxx X. Xxxxx
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Name: Xxxxxx X. Xxxxx
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Title: Duly Authorized Signatory
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S-10
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
WACHOVIA BANK, NATIONAL
ASSOCIATION,
as a Lender
By: /s/ Xxxxxxx Xxxxx
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Name: Xxxxxxx Xxxxx
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Title: Managing Director
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S-11
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
JPMORGAN CHASE BANK,
as a Lender
By: /s/ Xxxxx X. Xxxxxxx
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Name: Xxxxx X. Xxxxxxx
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Title: Vice President
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S-12
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
XXXXX FARGO FOOTHILL, INC.,
as a Lender
By: /s/ Xxxxx Xxxx
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Name: Xxxxx Xxxx
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Title: Vice President
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S-13
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
PNC BANK, NATIONAL
ASSOCIATION,
as a Lender
By: /s/ Xxxx X. Xxxxx
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Name: Xxxx X. Xxxxx
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Title: Sr. V.P. PNC Bus. Credit
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S-14
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
THE CIT GROUP/BUSINESS CREDIT,
INC., as a Lender
By: /s/ Xxxxx Xxxxxxxx
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Name: Xxxxx Xxxxxxxx
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Title: AVP
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S-15
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
U.S. BANK, NATIONAL
ASSOCIATION,
as a Lender
By: /s/ Xxxxxx X. Xxxxxxxx
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Name: Xxxxxx X. Xxxxxxxx
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Title: Vice President
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S-16
Amendment No. 2
to Second Amended and Restated
Credit Agreement
"LENDERS"
XXXXXXX XXXXX CAPITAL,
a division of Xxxxxxx Xxxxx Business
Financial Services Inc., as a Lender
By: /s/ Xxxxxx X. Xxxx
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Name: Xxxxxx X. Xxxx
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Title: Vice President
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S-17
Amendment No. 2
to Second Amended and Restated
Credit Agreement
