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EXHIBIT 4.19
TENTH AMENDMENT
Dated as of September 25, 2000
This TENTH AMENDMENT (this "AMENDMENT") among DEL MONTE FRESH PRODUCE
(UK) LTD., an English limited company ("FRESH UK"), WAFER LIMITED, a Gibraltar
corporation ("WAFER"), DEL MONTE FRESH PRODUCE INTERNATIONAL INC., a Liberian
corporation ("FRESH INTERNATIONAL"), DEL MONTE FRESH PRODUCE N.A., INC., a
Florida corporation ("FRESH N.A."), FRESH DEL MONTE PRODUCE INC., a Cayman
Islands company ("FRESH PRODUCE"), and GLOBAL REEFER CARRIERS, LTD., a Liberian
corporation ("GLOBAL REEFER") (Fresh UK, Wafer, Fresh International, Fresh N.A.,
Fresh Produce and Global Reefer are referred to herein collectively as the
"BORROWERS" and each individually as a "BORROWER"); the banks, financial
institutions and other institutional lenders listed in the signature pages
hereof as Lenders (the "Lenders"); the Issuing Bank and the Swing Line Bank; and
CO_PERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., "RABOBANK NEDERLAND",
NEW YORK BRANCH ("RABOBANK"), as syndication agent, administrative agent and
collateral agent for the Lenders (the "ADMINISTRATIVE AGENT").
PRELIMINARY STATEMENTS:
(1) The Borrowers, the Administrative Agent, the Issuing Bank, the
Swing Line Bank and certain of the Lenders are parties to a Revolving Credit
Agreement dated as of May 19, 1998 (as amended, modified or supplemented from
time to time prior to the date hereof, the "CREDIT AGREEMENT").
(2) Each of the Borrowers desires to amend the Credit Agreement to,
among other things, revise certain financial covenants as of the date hereof,
and each of the Administrative Agent, the Issuing Bank, the Swing Line Bank and
the Lenders has severally agreed to the requested amendments, on the terms and
conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein, the parties hereto hereby agree that
all capitalized terms used but not defined herein shall have the meanings
ascribed to such terms in the Credit Agreement, and further agree as follows:
SECTION 1. AMENDMENTS TO ARTICLE I. Article I of the Credit Agreement,
DEFINITIONS, is hereby amended by adding the following definitions thereto in
appropriate alphabetical order, and deleting in their entirety any existing
definition of any the following, respectively, currently set forth therein:
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(a) "APPLICABLE MARGIN" means for any Borrower on any date of
determination, the applicable percentage indicated below which corresponds to
the Leverage Ratio of Fresh Produce indicated below:
-------------------------------------------- ------------------- --------------------- ----------------------
Applicable Margin Applicable Margin Applicable Margin
for LIBO Rate for LIBO Rate for Unused Revolving
Leverage Ratio Advances under Advances under the Commitments
the Term Loan Revolving Commitment
Commitment
-------------------------------------------- ------------------- --------------------- ----------------------
Greater than 4.50 to 1.00 3.25% 2.75% 0.500%
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Less than or equal to 4.50 to 1.00 but 3.00% 2.50% 0.475%
greater than 3.75 to 1.00
-------------------------------------------- ------------------- --------------------- ----------------------
Less than or equal to 3.75 to 1.00 but 2.75% 2.25% 0.450%
greater than 3.0 to 1.00
-------------------------------------------- ------------------- --------------------- ----------------------
Less than or equal to 3.0 to 1.00, but 2.25% 1.75% 0.425%
greater than 2.5 to 1.00
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Less than or equal to 2.5 to 1.00, but 2.00% 1.50% 0.400%
greater than 2.0 to 1.00
-------------------------------------------- ------------------- --------------------- ----------------------
Less than or equal to 2.0 to 1.00, but 1.75% 1.25% 0.350%
greater than 1.5 to 1.00
-------------------------------------------- ------------------- --------------------- ----------------------
Less than or equal to 1.5 to 1.00, but 1.50% 1.00% 0.300%
greater than 1.0 to 1.00
-------------------------------------------- ------------------- --------------------- ----------------------
Less than or equal to 1.0 to 1.00 1.25% 0.75% 0.250%
-------------------------------------------- ------------------- --------------------- ----------------------
The Applicable Margin for each Advance shall be determined by reference to the
Leverage Ratio in effect from time to time at the end of each fiscal quarter
based on the financial statement for the most recently ended fiscal quarter and
the three immediately preceding completed fiscal quarters; PROVIDED, HOWEVER,
that (A) no change in the Applicable Margin shall be effective until three
Business Days after the date on which the Administrative Agent receives
financial statements pursuant to Section 5.03(b) and (c) or 5.03(k), as the case
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may be, and a certificate of the Chief Financial Officer of Fresh Produce
demonstrating such ratio, attaching thereto a schedule in form reasonably
satisfactory to the Administrative Agent of the computations used by Fresh
Produce in determining such Leverage Ratio, and (B) if Fresh Produce has not
submitted to the Administrative Agent the information described in clause (A) of
this proviso as and when required under Section 5.03(b), (c) or (k), as the case
may be, the Applicable Margin shall be the highest interest rate margin set
forth above with respect to the applicable Advances and Unused Revolving
Commitments, respectively, for so long as such information has not been received
by the Administrative Agent.
(b) "CONSOLIDATED EBITDA" means, for Fresh Produce for any period, the
sum, determined on a Consolidated basis, of (a) Consolidated Net Income (or net
loss), plus, without duplication and to the extent included in the calculation
of such Consolidated Net Income (or net loss), (b) the sum of (i) interest
expense, (ii) income tax expense, (iii) depreciation expense, (iv) amortization
expense, and (v) non-cash write-offs of European Union banana distribution
licenses acquired in connection with the BMB Acquisition, in each case of Fresh
Produce and its Subsidiaries, determined in accordance with GAAP for such
period.
(c) "FIXED CHARGES COVERAGE RATIO" means, with respect to Fresh Produce
for any period, the ratio of (a)(i) Consolidated EBITDA of Fresh Produce for
such period, LESS (ii) Capital Expenditures made during such period (excluding
Capital Expenditures made after September 30, 1999, in connection with Fresh
Produce's distribution centers and fresh-cut operations facilities located in
North America in an aggregate amount of up to $55,000,000), LESS (iii) payments
of taxes made during such period, to (b) Consolidated Fixed Charges.
SECTION 2. AMENDMENT TO SECTION 5.04. Section 5.04 of the Credit
Agreement, FINANCIAL COVENANTS, is hereby amended by deleting such section in
its entirety and replacing such section with the following:
"SECTION 5.04 FINANCIAL COVENANTS. Each of the Borrowers
covenants and agrees that so long as any Commitment is outstanding and
thereafter until Payment In Full of all of the Obligations, unless the Required
Lenders shall have otherwise consented in writing thereto:
(a) MAXIMUM LEVERAGE RATIO. Fresh Produce and its Subsidiaries on a
Consolidated basis shall maintain as of the end of each fiscal quarter of Fresh
Produce a Leverage Ratio for such fiscal quarter and the three immediately
preceding complete fiscal quarters of Fresh Produce, of not more than the ratio
set forth below for such quarter:
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QUARTER ENDING MAXIMUM RATIO
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March 2000, June 2000 3.75 to 1.00
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September 2000, December 2000 4.75 to 1.00
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March 2001 5.75 to 1.00
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June 2001 4.50 to 1.00
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September 2001 and thereafter 3.75 to 1.00
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(b) MINIMUM TANGIBLE NET WORTH. Fresh Produce and its Subsidiaries on a
Consolidated basis shall maintain as of the end of each fiscal quarter of Fresh
Produce a Tangible Net Worth of not less than an amount equal to the sum of (i)
U.S.$135,000,000, plus (ii) an amount equal to 50% of cumulative Consolidated
Net Income of Fresh Produce for all fiscal quarters ending on and after March
27, 1998 (as previously adjusted to take into effect the IAT acquisition).
(c) MINIMUM INTEREST COVERAGE. Fresh Produce and its Subsidiaries on a
Consolidated basis shall maintain at the end of each fiscal quarter of Fresh
Produce, a ratio of Consolidated EBITDA to Consolidated interest expense for
such fiscal quarter and the three immediately preceding completed fiscal
quarters of Fresh Produce, of not less than the ratio set forth below for such
quarter:
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QUARTER ENDING MINIMUM RATIO
-------------------------------------- ---------------------
March 2000, June 2000 2.50 to 1.00
-------------------------------------- ---------------------
September 2000, December 2000, March 2.00 to 1.00
2001
-------------------------------------- ---------------------
June 2001 and thereafter 2.50 to 1.00
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(d) MINIMUM FIXED CHARGES COVERAGE RATIO. Fresh Produce and its
Subsidiaries on a Consolidated basis shall maintain as of the end of each fiscal
quarter of Fresh Produce a Fixed Charges Coverage Ratio for such fiscal quarter
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and the three immediately preceding completed fiscal quarters of Fresh Produce,
of not less than the ratio set forth below for such quarter:
-------------------------------------- ---------------------
QUARTER ENDING MINIMUM RATIO
-------------------------------------- ---------------------
March 2000, June 2000 1.15 to 1.00
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September 2000, December 2000, March 0.60 to 1.00
2001
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June 2001 1.00 to 1.00
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September 2001 1.15 to 1.00
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December 2001, March 2002, June 1.20 to 1.00
2002, September 2002
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December 2002, March 2003 and 1.25 to 1.00
thereafter
-------------------------------------- ---------------------
SECTION 3. REPRESENTATIONS AND WARRANTIES. Each of Fresh Produce and
the other Borrowers represents and warrants as follows:
(a) The execution, delivery and performance by each Loan Party of this
Amendment and the other transactions contemplated hereby, are within such Loan
Party's corporate powers, have been duly authorized by all necessary corporate
action, and do not (i) contravene such Loan Party's charter or by-laws; (ii)
violate any law (including, without limitation, the Securities Exchange Act of
1934, the Racketeer Influenced and Corrupt Organizations Chapter of the
Organized Crime Control Act of 1970 and any similar statute), rule, regulation
(including, without limitation, Regulation X of the Board of Governors of the
Federal Reserve System), order, writ, judgment, injunction, decree,
determination or award; (iii) conflict with or result in the breach of, or
constitute a default under, any contract, loan agreement, indenture, mortgage,
deed of trust, lease or other instrument binding on or affecting any Loan Party,
any of its Subsidiaries or any of their properties; or (iv) except for the Liens
created under the Security Documents, result in or require the creation or
imposition of any Lien upon or with respect to any of the properties of any Loan
Party or any of its Subsidiaries.
(b) No authorization or approval or other action by, and no notice to
or filing with, any Governmental Authority or regulatory body or any other third
party is required for the due execution, delivery, recordation, filing or
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performance by any Loan Party of this Amendment and each other Loan Document
contemplated hereby to which it is or is to be a party, or for the consummation
of the transactions contemplated hereby.
(c) This Amendment and each other document required to be delivered by
a Loan Party hereunder has been duly executed and delivered by each Loan Party
thereto, and constitutes the legal, valid and binding obligation of each Loan
Party thereto, enforceable against such Loan Party in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors' rights generally.
(d) The representations and warranties contained in Article IV of the
Credit Agreement, and in each of the Security Documents, are correct in all
material respects on and as of the date hereof as though made on and as of such
date, other than any such representations and warranties that, by their terms,
expressly refer to an earlier date.
(e) No event has occurred and is continuing which constitutes an Event
of Default or would constitute an Event of Default but for the requirement that
notice be given or time elapse or both.
SECTION 4. CONDITIONS PRECEDENT TO EFFECTIVENESS OF THIS AMENDMENT.
This Amendment shall be effective as of the date first set forth above when the
Administrative Agent shall have received, in form and substance satisfactory to
it:
(a) This Amendment, duly executed by the Borrowers, the
Administrative Agent and the Required Lenders; and
(b) Such other documents, instruments, and information
executed and/or delivered by the Borrowers as the Administrative Agent may
reasonably request.
SECTION 5. REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT.
(a) Upon the effectiveness of this Amendment as set forth in Section 4
hereof, on and after the date hereof, each reference in the Credit Agreement to
"this Agreement", "hereunder", "hereof", "herein" or words of like import shall
mean and be a reference to the Credit Agreement as amended hereby, and each
reference in the Notes and the other Loan Documents to the Credit Agreement
shall mean and be a reference to the Credit Agreement as amended hereby.
(b) Except as specifically amended above, the Credit Agreement shall
remain in full force and effect and is hereby ratified and confirmed in all
respects.
(c) The execution, delivery and effectiveness of this Amendment shall
not except as expressly provided herein, operate as a waiver of any right, power
or remedy of the Lenders under the Credit Agreement, nor constitute a waiver of
any provision of the Credit Agreement.
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SECTION 6. COSTS, EXPENSES AND TAXES. The Borrowers agree, jointly and
severally, to pay on demand all costs and expenses of the Administrative Agent
in connection with the preparation, execution and delivery of this Amendment and
the other instruments and documents to be delivered hereunder (including,
without limitation, the reasonable fees and out-of-pocket expenses of counsel
for the Administrative Agent with respect thereto). In addition, the Borrowers
agree, jointly and severally, to pay any and all stamp and other taxes payable
or determined to be payable in connection with the execution and delivery of
this Amendment and the other instruments and documents to be delivered
hereunder, and agree to save the Administrative Agent and the Lenders harmless
from and against any and all liabilities with respect to or resulting from any
delay in paying or omission to pay such taxes.
SECTION 7. EXECUTION IN COUNTERPARTS. This Amendment may be executed in
any number of counterparts, each of which when so executed and delivered shall
be deemed to be an original and all of which taken together shall constitute but
one and the same instrument. Delivery of a signature page hereto by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart hereof.
SECTION 8. GOVERNING LAW. This Amendment shall be governed by, and
construed in accordance with, the laws (without giving effect to the conflicts
of laws principles thereof) of the State of New York.
SECTION 9. FINAL AGREEMENT. This Amendment represents the final
agreement between the Borrowers, the Administrative Agent and the Lenders as to
the subject matter hereof and may not be contradicted by evidence of prior,
contemporaneous or subsequent oral agreements of the parties. There are no
unwritten oral agreements between the parties. The Amendment shall constitute a
Loan Document for all purposes.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duty authorized, as of the date
first above written.
BORROWERS: DEL MONTE FRESH PRODUCE (UK) LTD., as Borrower
By: /s/ XXXX X. XXXXXXX
--------------------------------------------------
Title: Director
DEL MONTE FRESH PRODUCE, NA. INC., as Borrower
By: /s/ XXXX X. XXXXXXX
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Title: Executive Vice President and Chief
Financial Officer
WAFER LIMITED, as Borrower
By: /s/ XXXX X. XXXXXXX
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Title: Director
DEL MONTE FRESH PRODUCE INTERNATIONAL INC.,
as Borrower
By: /s/ XXXX X. XXXXXXX
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Title: Director
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FRESH DEL MONTE PRODUCE INC., as Borrower
GLOBAL REEFER CARRIERS, LTD., as Borrower
By: /s/ XXXX X. XXXXXXX
-----------------------------------------
Title: Executive Vice President and Chief
Financial Officer
ADMINISTRATIVE AGENT: COOPERATIEVE CENTRALE RAIFFEISEN-
BOERENLEENBANK B.A., "Rabobank
Nederland", New York Branch, as
Administrative Agent, Collateral Agent
and Lender
By: /s/ XXXXXXX XX XXXXXX VOORT
-----------------------------------------
Title: Executive Director
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LENDERS:
ABN AMRO BANK N.V. NEW YORK BRANCH
By: /s/ XXXXXX X. SPURGA
---------------------------------
Title: Vice President
By: /s/ XXXXXXXXXXX X. XXXXX
---------------------------------
Title: Vice President
AGFIRST FARM CREDIT BANK
By: /s/ XXXX X. XXXXXXXX XX
---------------------------------
Title: Vice President
ARTESIA BANK LUXEMBOURG
By: /s/ XXXX XXXXX
---------------------------------
Title: General Manager
By:
---------------------------------
Title:
BANQUE ARTESIA NEDERLAND N.V.
By: /s/ HDR FLEDDERNS
---------------------------------
Title: Senior Vice President -
Finance
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BANK OF AMERICA, N.A.
By: /s/ XXXXX XXXXXXXX
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Title: Vice President
BANQUE FRANCAISE DE L'ORIENT
By: /s/ N. L XXXX
----------------------------------------
Title: Vice President
By:
----------------------------------------
Title:
BANQUE NATIONALE DE PARIS, CHICAGO BRANCH
By: /s/ XXXXXX XXXXXX DU BOCAGE
----------------------------------------
Title: Executive Vice President and
General Manager
BARCLAYS BANK PLC
By: /s/ XXXXXX X. XXXX
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Title: Vice President
CHRISTIANIA BANK OG KREDITKASSE ASA,
NEW YORK BRANCH
By: /s/ XXXXXX XXXXXX
----------------------------------------
Title: Senior Vice President
By: /s/ HANS CHR. KJESLRUD
----------------------------------------
Title: Senior Vice President
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DEUTSCHE FINANCIAL SERVICES
By: /s/ XXXXXXX X. XXXXX
------------------------------------------
Title: Vice President
FARM CREDIT BANK OF WICHITA
By: /s/ XXXXXX X. XXXX
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Title: Assistant Vice President
FARM CREDIT SERVICES OF AMERICA, FLCA
By: /s/ XXXXX X. XXXXX
------------------------------------------
Title: Vice President Commercial Lender
FIRST UNION NATIONAL BANK
By: /s/ XXXX X XXXXX
------------------------------------------
Title: Vice President
THE FUJI BANK, LIMITED
By: /s/ XXXXXXX XXXXX
------------------------------------------
Title: Vice President
XXXXXX TRUST AND SAVINGS BANK
By: /s/
------------------------------------------
Title: Vice President
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SUNTRUST BANK
By: /s/ XXXXX X. XXXXX
---------------------------------
Title: Director
UNION BANK OF CALIFORNIA, N.A.
By: /s/ HAGOD V. JAZMADARIAN
---------------------------------
Title: Vice President
U.S. BANCORP AG CREDIT, INC.
By: /s/
---------------------------------
Title: Vice President
WACHOVIA BANK N.A.
By: /s/
---------------------------------
Title: Senior Vice President
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