EXHIBIT 10.32
EXECUTION COPY
AMENDMENT NO. 10 UNDER THE CREDIT AGREEMENT
Amendment No. 10 dated as of March 14, 2003 (this "AMENDMENT") to the
Amended and Restated Credit Agreement dated as of March 24, 1999 (as amended and
modified by Waiver No. 1 dated as of December 30, 1999, Amendment and Waiver No.
2 dated as of January 24, 2000, Amendment and Waiver No. 3 Under the Loan
Documents dated as of November 7, 2000, Amendment No. 4 Under the Credit
Agreement dated as of February 13, 2002, Amendment No. 5 to the Loan Documents
dated as of May 9, 2002, Amendment and Waiver No. 6 Under the Credit Agreement
dated as of June 14, 2002, Amendment No. 7 Under the Credit Agreement dated as
of September 30, 2002, Amendment No. 8 to the Credit Agreement dated as of
November 4, 2002, and Amendment No. 9 to the Loan Documents dated as of December
6, 2002, the "CREDIT AGREEMENT") among United Industries Corporation, a Delaware
corporation (the "BORROWER"), certain banks, financial institutions and other
institutional lenders party thereto, Bank of America, N.A. (formerly known as
NationsBank, N.A.) ("BANK OF AMERICA"), as Swing Line Bank and Initial Issuing
Bank thereunder, Banc of America Securities LLC (formerly known as NationsBanc
Xxxxxxxxxx Securities LLC) ("BAS") and Xxxxxx Xxxxxxx Senior Funding, Inc.
("MSSF"), as Co-Arrangers therefor, Canadian Imperial Bank of Commerce, as
Documentation Agent therefor, MSSF, as Syndication Agent thereunder, BAS, as
Lead Arranger and Book Manager therefor, and Bank of America, as Administrative
Agent (the "ADMINISTRATIVE AGENT") for the Lender Parties thereunder.
Capitalized terms not otherwise defined in this Amendment shall have the same
meanings as specified therefor in the Credit Agreement.
PRELIMINARY STATEMENTS
(1) The Borrower has requested that the Lender Parties agree to
amend and otherwise modify the Credit Agreement in order to permit the Borrower
to issue new senior subordinated notes in an amount not less than $75,000,000
and not more than $100,000,000.
(2) The Lender Parties have indicated their willingness to agree
to so amend and otherwise modify the Credit Agreement on the terms and subject
to the satisfaction of the conditions set forth herein.
NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements contained herein and in the Loan Documents, the parties
hereto hereby agree as follows:
SECTION 1. AMENDMENTS AND MODIFICATIONS OF CERTAIN PROVISIONS OF THE
CREDIT AGREEMENT (a) Section 1.01 of the Credit Agreement is hereby amended to
add the following new definitions in the appropriate alphabetical order:
"AMENDMENT NO. 10 EFFECTIVE DATE" means the first date on
which all of the conditions precedent to the effectiveness of Amendment No.
10 under the Credit Agreement were satisfied.
"NEW SENIOR SUBORDINATED NOTES" means the new senior
subordinated notes of the Borrower to be issued and sold for cash on or
after the Amendment No. 10 Effective Date, in an aggregate principal amount
of not less than $75,000,000 and not more than $100,000,000, and containing
terms (including without limitation coupon, amortization, maturity,
covenants, events of default, subordination and mandatory redemption) that
are identical in all material respects to those contained in the Senior
Subordinated Notes that are outstanding immediately prior to the Amendment
No. 10 Effective Date.
Amendment No. 10 to the United Industries
Credit Agreement
(b) Section 1.01 of the Credit Agreement is hereby further amended to
restate the following definition set forth therein in its entirety to read as
follows:
"SENIOR SUBORDINATED NOTES DOCUMENTS" means the Note Purchase
Agreement, the Senior Subordinated Notes, the New Senior Subordinated
Notes, all indentures, securities purchase agreements, warrant agreements
and registration rights agreements entered into in connection with the
redemption or refinancing of the initial Senior Subordinated Notes and all
of the other agreements, instruments and other documents pursuant to which
the Senior Subordinated Notes and the New Senior Subordinated Notes have
been issued or otherwise setting forth the terms of the Senior Subordinated
Notes and the New Senior Subordinated Notes, in each case as such
agreement, instrument or other document may be amended, supplemented or
otherwise modified from time to time in accordance with the terms thereof,
but solely to the extent permitted under the terms of the Loan Documents.
(c) Section 2.06(b)(ii) of the Credit Agreement is hereby amended by
replacing the period at the end thereof with the following:
"; PROVIDED, HOWEVER, that the Net Cash Proceeds of the New
Senior Subordinated Notes shall instead be applied as follows: FIRST,
$25,000,000 of such Net Cash Proceeds shall be retained by the Borrower to
be used for working capital and other general corporate purposes, SECOND,
so much of the remaining portion of such Net Cash Proceeds as shall be
necessary shall be applied to pay in full the outstanding principal amount
of the Term A Facility and THIRD, the then remaining portion of such Net
Cash Proceeds shall be applied to prepay the principal installments of the
Term B Facility on a PRO RATA basis, except that if the New Senior
Subordinated Notes are issued in an aggregate principal amount greater than
$75,000,000, only 50% of the Net Cash Proceeds thereof attributable to the
principal amount being over $75,000,000 shall be applied to prepay the
principal installments of the Term B Facility on a PRO RATA basis and the
other 50% of such Net Cash Proceeds shall be retained by the Borrower to be
used for working capital and other general corporate purposes."
(d) Section 5.02(b)(i)(B) of the Credit Agreement is hereby amended by
replacing the dollar amount "$150,000,000" with the dollar amount
"$250,000,000".
SECTION 2. CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS
AMENDMENT. This Amendment shall become effective as of the first date (the
"AMENDMENT NO. 10 EFFECTIVE DATE") on which (i) the Administrative Agent shall
have received counterparts of (A) this Amendment executed by the Borrower and
the Required Lenders (including in any event Lenders holding more than 50% of
the aggregate Commitments under the Term B Facility) or, as to any of the Lender
Parties, advice satisfactory to the Administrative Agent that such Lender Party
has executed this Amendment and (B) the Consent attached hereto, executed by UIC
Holdings LLC and each other Loan Party, and (ii) each of the following
conditions precedent shall have been satisfied:
(a) The representations and warranties contained in each of the
Loan Documents shall be true and correct in all material respects on and as
of the Amendment No. 10 Effective Date, after giving effect to this
Amendment, as though made on and as of such date (except (i) for any such
representation and warranty that, by its terms, refers to a specific date
other than the Amendment No. 10 Effective Date, in which case as of such
specific date, and (ii) that the financial statements of the Borrower
referred to in Sections 4.01(f) and 4.01(g) of the Credit Agreement shall
be deemed to refer to the financial statements of the Borrower comprising
part of the Required Financial Information most recently delivered to the
Administrative Agent and
Amendment No. 10 to the United Industries
Credit Agreement
the Lender Parties pursuant to Sections 5.03(c) and 5.03(d), respectively,
on or prior to the Amendment No. 10 Effective Date).
(b) No event shall have occurred and be continuing or shall result
from the effectiveness of this Amendment that constitutes a Default.
(c) All of the accrued fees and expenses of the Administrative
Agent, the Lead Arranger and Book Manager and the Lender Parties (including
the accrued fees and expenses of counsel for the Agents) that are then due
and payable shall have been paid in full.
SECTION 3. REFERENCE TO AND EFFECT ON THE LOAN DOCUMENTS. (a) On and
after the Amendment No. 10 Effective Date, each reference in the Credit
Agreement to "THIS AGREEMENT", "HEREUNDER", "HEREOF" or words of like import
referring to the Credit Agreement, and each reference in the Notes and each of
the other Loan Documents to "THE CREDIT AGREEMENT", "THEREUNDER", "THEREOF" or
words of like import referring to the Credit Agreement, shall mean and be a
reference to the Credit Agreement, as amended and otherwise modified by this
Amendment.
(b) The Credit Agreement, the Notes and each of the other Loan
Documents, as amended and otherwise modified by the amendments specifically
provided above in Section 1, are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed. 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 any of the
Secured Parties or the Administrative Agent under any of the Loan Documents, nor
constitute a waiver of any provision of any of the Loan Documents.
SECTION 4. COSTS AND EXPENSES. The Borrower hereby agrees to pay, upon
demand, all of the reasonable costs and expenses of the Administrative Agent and
the Lead Arranger and Book Manager (including, without limitation, the
reasonable fees and expenses of counsel for the Agents) in connection with the
preparation, execution, delivery, administration, modification and amendment of
this Amendment and all of the agreements, instruments and other documents
delivered or to be delivered in connection herewith, all in accordance with the
terms of Section 8.04 of the Credit Agreement.
SECTION 5. EXECUTION IN COUNTERPARTS. This Amendment may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of a signature page to this Amendment by
telecopier shall be effective as delivery of a manually executed counterpart of
this Amendment.
[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
Amendment No. 10 to the United Industries
Credit Agreement
SECTION 6. GOVERNING LAW. This Amendment shall be governed by, and
construed in accordance with, the laws of the State of New York.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to
be executed by their respective officers, thereunto duly authorized, as of the
date first written above.
THE BORROWER
UNITED INDUSTRIES CORPORATION
By
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Name:
Title:
BANK OF AMERICA, N.A.,
as Administrative Agent
By
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Name:
Title:
Amendment No. 10 to the United Industries
Credit Agreement
THE LENDER PARTIES
BANK OF AMERICA, N.A.,
as a Lender and the Initial Issuing Bank
By
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Name:
Title:
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[Type or print name of Lender]
By
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Name:
Title:
Amendment No. 10 to the United Industries
Credit Agreement
CONSENT
Reference is made to (a) Amendment No. 10 Under the Credit Agreement
dated as of March 14, 2003 (the "AMENDMENT"; capitalized terms not otherwise
defined herein being used herein as defined in the Amendment and in the Credit
Agreement referred to below), (b) the Amended and Restated Credit Agreement
dated as of March 24, 1999 (as amended and otherwise modified by Waiver No. 1
dated as of December 30, 1999, Amendment and Waiver No. 2 dated as of January
24, 2000, Amendment and Waiver No. 3 Under the Loan Documents dated as of
November 7, 2000, Amendment No. 4 Under the Credit Agreement dated as of
February 13, 2002, Amendment No. 5 to the Loan Documents dated as of May 9,
2002, Amendment and Waiver No. 6 Under the Credit Agreement dated as of June 14,
2002, Amendment No. 7 Under the Credit Agreement dated as of September 30, 2002,
Amendment No. 8 to the Credit Agreement dated as of November 4, 2002 and
Amendment No. 9 to the Loan Documents dated as of December 6, 2002, the "CREDIT
AGREEMENT") among United Industries Corporation, a Delaware corporation (the
"BORROWER"), certain banks, financial institutions and other institutional
lenders party thereto, Bank of America, N.A. (formerly known as NationsBank,
N.A.) ("BANK OF AMERICA"), as Swing Line Bank and Initial Issuing Bank
thereunder, Banc of America Securities LLC (formerly known as NationsBanc
Xxxxxxxxxx Securities LLC) ("BAS") and Xxxxxx Xxxxxxx Senior Funding, Inc.
("MSSF"), as Co-Arrangers therefor, Canadian Imperial Bank of Commerce, as
Documentation Agent therefor, MSSF, as Syndication Agent thereunder, BAS, as
Lead Arranger and Book Manager therefor, and Bank of America, as Administrative
Agent (the "ADMINISTRATIVE AGENT") for the Lender Parties thereunder, and (c)
the other Loan Documents referred to therein.
UIC Holdings, L.L.C., a Delaware limited liability company, and each
Loan Party, in its capacity as (a) a Grantor under the Security Agreement, (b) a
Grantor under each IP Security Agreement--Short Form, (c) a Guarantor under the
Subsidiaries Guarantee and/or (d) a party to the Holdings LLC Agreement, each
hereby consents to the execution, delivery and the performance of the Amendment
and agrees that:
(A) each of the Security Agreement, the Copyright Security
Agreement--Short Form, the Trademark Security Agreement--Short Form, the
Patent Security Agreement--Short Form, the Subsidiaries Guarantee and the
Holdings LLC Agreement to which it is a party is, and shall continue to be,
in full force and effect and is hereby in all respects ratified and
confirmed on the Amendment No. 10 Effective Date, except that, on and after
the Amendment No. 10 Effective Date, (i) each reference to "THE CREDIT
AGREEMENT", "THEREUNDER", "THEREOF", "THEREIN" or words of like import
referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement, as amended and otherwise modified by the Amendment, (ii)
each reference in the Security Agreement to "THIS AGREEMENT", "HEREUNDER",
"HEREOF" or words of like import referring to the Security Agreement shall
mean and be a reference to the Security Agreement, as amended and otherwise
modified by the Amendment, and (iii) each reference in the Copyright
Security Agreement--Short Form, the Trademark Security Agreement--Short
Form, the Patent Security Agreement--Short Form, the Subsidiaries Guarantee
and the Holdings LLC Agreement to "THE SECURITY AGREEMENT", "THEREUNDER",
"THEREOF", "THEREIN" or words of like import referring to the Security
Agreement shall mean and be a reference to the Security Agreement, as
amended and otherwise modified by the Amendment; and
(B) as of the Amendment No. 10 Effective Date, the Security
Agreement, the Copyright Security Agreement--Short Form, the Trademark
Security Agreement--Short Form and the Patent Security Agreement--Short
Form to which it is a party and all of the Collateral of such Person
described therein do, and shall continue to, secure the payment of all of
the Secured Obligations.
Amendment No. 10 to the United Industries
Credit Agreement
This Consent shall be governed by, and construed in accordance with,
the laws of the State of New York.
Delivery of an executed counterpart of a signature page of this
Consent by telecopier shall be effective as the delivery of a manually executed
counterpart of this Consent.
UNITED INDUSTRIES CORPORATION
By
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Name:
Title:
UIC HOLDINGS, L.L.C.
By Xxxxxx X. Xxx Equity Fund IV, L.P.,
as Manager
By Xxxxxx X. Xxx Company,
its general partner
By
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Name:
Title:
SYLORR PLANT CORPORATION
By
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Name:
Title:
XXXXXXX CORP.
By
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Name:
Title:
Amendment No. 10 to the United Industries
Credit Agreement
GROUND ZERO, INC.
By
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Name:
Title:
WPC BRANDS, INC.
By
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Name:
Title:
Amendment No. 10 to the United Industries
Credit Agreement