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EXECUTION COPY
EXHIBIT 4.6
FIRST AMENDMENT
FIRST AMENDMENT, dated as of April 23, 2001 (this "Amendment"),
to the Credit Agreement, dated as of March 29, 2000 (as the same may be further
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among VIASYSTEMS GROUP, INC., a Delaware corporation ("Holdings"),
VIASYSTEMS, INC., a Delaware corporation (the "US Borrower"), VIASYSTEMS CANADA,
INC., a Quebec corporation (the "Canadian Borrower"), PRINT SERVICE HOLDING
N.V., a company organized under the laws of the Netherlands ("Print Service" and
together with the Canadian Borrower and any Future Foreign Subsidiary Borrower,
the "Foreign Subsidiary Borrowers"), the several banks and other financial
institutions from time to time parties thereto (the "Lenders"), THE CHASE
MANHATTAN BANK OF CANADA ("Chase Canada"), as Canadian administrative agent (in
such capacity, the "Canadian Administrative Agent"), CHASE MANHATTAN
INTERNATIONAL LIMITED ("CMIL"), as the multicurrency administrative agent (in
such capacity, the "Multicurrency Administrative Agent"), and THE CHASE
MANHATTAN BANK ("Chase"), as administrative agent for the Lenders (in such
capacity, the "Administrative Agent").
WITNESSETH:
WHEREAS, pursuant to the Credit Agreement, the Lenders have
agreed to make, and have made, certain loans and other extensions of credit to
the Borrowers; and
WHEREAS, the Borrowers have requested, and upon the effectiveness
of this Amendment, the parties hereto have agreed, that certain provisions of
the Credit Agreement be amended upon the terms and conditions set forth below;
NOW, THEREFORE, in consideration of the premises and of the
mutual agreements herein contained, the parties hereto hereby agree as follows:
SECTION 1. Defined Terms. Terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.
Unless otherwise indicated, all Section and subsection references are to the
Credit Agreement.
SECTION 2. Amendments to Subsection 1.1 (Definitions). Subsection
1.1 of the Credit Agreement is hereby amended as follows:
(a) by deleting from the beginning of the definition of "Applicable
Margin" through the second table contained therein and substituting in lieu
thereof the following:
"Applicable Margin": (a) in the case of Tranche B Term Loans
and Tranche B Chips Term Loans, 2.75% for Base Rate Loans and 3.75% for
Eurocurrency Loans, (b) in the case of Tranche A Chips Term Loans and
Revolving Credit Loans (including Swing Line Loans), 2.25% for Base
Rate Loans and 3.25% for Eurocurrency Loans, and (c) in the case of any
Commitment Fee, 0.50%; provided that any such Applicable Margin with
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respect to Tranche A Chips Term Loans and Revolving Credit Loans
(including Swing Line Loans) shall be adjusted as set forth in the
table below based on the ratio of Consolidated Total Debt of the US
Borrower to Consolidated EBITDA of the US Borrower, as most recently
determined in accordance with subsection 13.1(b), for any quarterly
period, but in no event shall any such adjustment be effective prior to
the receipt of the financial statements of the US Borrower pursuant to
subsection 12.1(b) for the fiscal quarter ended December 31, 2001:
Ratio of Consolidated Applicable Margin for Applicable Margin for
Total Debt to Eurocurrency Revolving Loans and Base Rate Revolving Loans
Consolidated Tranche A and Tranche A Chips Term
EBITDA Chips Term Loans Loans
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4.50x and above 3.25% 2.25%
4.00x to but excluding 4.50x 3.00% 2.00%
3.50x to but excluding 4.00x 2.75% 1.75%
Below 3.50x 2.50% 1.50%
(b) by deleting the words "and the Commitment Fee" in the two places
where such words appear after the second table contained in the definition of
"Applicable Margin";
(c) by deleting the following clause where it appears in paragraph (c)
of the definition of "Applicable Margin":
"and (ii) Commitment Fees payable under subsections 2.4 and
3.4 shall be 0.500%";
(d) by deleting the percentages "2.50%" and "1.50%" where such
percentages appear in paragraph (c) of the definition of "Applicable Margin" and
substituting in lieu thereof the percentages "3.25%" and "2.25%", respectively;
(e) by deleting clause (A)(vi) of the definition of "Consolidated
EBITDA" in its entirety and substituting in lieu thereof the following:
"(vi) any extraordinary losses (not to exceed $10,000,000 for any
period in the case of extraordinary cash losses) and unusual noncash
losses (including any such losses on sales of assets other than
inventory sold in the ordinary course of business) other than any loss
from any discontinued operation,";
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(f) by inserting after clause (A)(vi) of the definition of
"Consolidated EBITDA" the following:
"and (vii) up to $40,000,000 of cash losses incurred after
December 31, 2000 in connection with the Restructuring,";
(g) by adding thereto the following definitions in their appropriate
alphabetical order:
"First Amendment": the First Amendment, dated as of April 23,
2001, to this Agreement.
"Pending Acquisitions": the pending acquisitions described on
Schedule 13.9 to the First Amendment.
"Restructuring": the restructuring of the North American and
European operations of the US Borrower and its Subsidiaries.
SECTION 3. Amendments to Subsection 12.1 (Financial Statements).
Subsection 12.1 of the Credit Agreement is hereby amended by adding thereto the
following paragraph (c):
"(c) as soon as available, but in any event not later than 45
days after the end of each month, the unaudited consolidated balance
sheet of US Borrower as at the end of such month and the related
unaudited consolidated statements of income and retained earnings and
consolidated statement of cash flows of US Borrower for such month and
the portion of the fiscal year through the end of such month, setting
forth in each case in comparative form (i) the figures for the previous
year and (ii) the figures set forth in the relevant budgets required to
be delivered in accordance with subsection 12.2(c);".
SECTION 4. Amendments to Subsection 12.2 (Certificates; Other
Information). Subsection 12.2 of the Credit Agreement is hereby amended by
making paragraph (g) thereof paragraph (h) and by inserting the following
paragraph (g):
"(g) concurrently with the delivery of the financial
statements referred to in subsection 12.1(c), a letter from a
Responsible Officer describing the business, operations and financial
results of the US Borrower and its Subsidiaries, which letter shall
include a discussion of the liquidity of the US Borrower and its
Subsidiaries as of the date of such financial statements and a
projection, prepared in good faith and based upon reasonable
assumptions as of the date thereof, of the liquidity of the US Borrower
and its Subsidiaries as of the end of the month subsequent to the date
of such financial statements;".
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SECTION 5. Amendments to Subsection 13.1 (Financial Condition
Covenants). Subsection 13.1 of the Credit Agreement is hereby amended as
follows:
(a) by deleting the portion of the table appearing in paragraph (a)
thereof relating to the 2nd Calendar Quarter of 2001 through the 4th Calendar
Quarter of 2002 and substituting in lieu thereof the following:
Calendar Quarter Interest Coverage Ratio
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2001 2nd 2.25 to 1.00
3rd 2.00 to 1.00
4th 1.75 to 1.00
2002 1st 1.75 to 1.00
2nd 2.00 to 1.00
3rd 2.10 to 1.00
4th 2.15 to 1.00
(b) by deleting the portion of the table appearing in paragraph (b)
thereof relating to the 2nd Calendar Quarter of 2001 through the 4th Calendar
Quarter of 2002 and substituting in lieu thereof the following:
Calendar Quarter Amount
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2001 2nd 4.75 to 1.00
3rd 5.25 to 1.00
4th 5.75 to 1.00
2002 1st 5.50 to 1.00
2nd 5.30 to 1.00
3rd 5.00 to 1.00
4th 4.75 to 1.00
(c) by deleting the portion of the table appearing in paragraph (c)
thereof relating to the 2nd Calendar Quarter of 2001 through the 4th Calendar
Quarter of 2002 and substituting in lieu thereof the following:
Calendar Quarter Ratio
---------------- -----
2001 2nd 2.50 to 1.00
3rd 2.80 to 1.00
4th 3.05 to 1.00
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2002 1st 2.90 to 1.00
2nd 2.80 to 1.00
3rd 2.65 to 1.00
4th 2.50 to 1.00
SECTION 6. Amendments to Subsection 13.2 (Limitation on
Indebtedness). Subsection 13.2 of the Credit Agreement is hereby amended as
follows:
(a) by deleting the amount "$75,000,000" where it appears in
paragraph (b) thereof and substituting in lieu thereof the amount
"$37,500,000";
(b) by deleting the amount "$50,000,000" where it appears in
paragraph (e) thereof and substituting in lieu thereof the amount
"$37,500,000";
(c) by deleting paragraph (j) thereof in its entirety and
substituting in lieu thereof the following:
"(j) additional Indebtedness of Subsidiaries of Holdings in an
aggregate principal amount outstanding not to exceed the Equivalent
Amount of $37,500,000 at any one time;"; and
(d) by deleting paragraph (l) thereof in its entirety and
substituting in lieu thereof the following:
"(l) (i) unsecured Indebtedness of Subsidiaries of
Holdings to the seller in any Permitted Acquisition or (ii)
Indebtedness assumed in connection with any Permitted
Acquisition in an aggregate amount for clauses (i) and (ii)
for all Permitted Acquisitions not to exceed the Equivalent
Amount of $37,500,000; provided that (A) at the time of
incurrence the requirements of subsection 13.9(k) shall be
satisfied and (B) on a pro forma basis for the period of four
consecutive fiscal quarters most recently ended (assuming the
consummation of such Permitted Acquisition and the incurrence
or assumption of such Indebtedness occurred on the first day
of such period of four consecutive fiscal quarters), the US
Borrower shall be in compliance with the covenants contained
in subsection 13.1(b) of this Agreement in effect prior to the
First Amendment hereof; provided, further, that no such
Indebtedness shall be incurred or assumed prior to the receipt
of the financial statements of the US Borrower pursuant to
subsection 12.1(b) for the fiscal quarter ended December 31,
2001;".
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SECTION 7. Amendments to Subsection 13.3 (Limitation on Liens).
Subsection 13.3 of the Credit Agreement is hereby amended as follows:
(a) by deleting the amount "$40,000,000" where it appears in
paragraph (h) thereof and substituting in lieu thereof the amount
"$20,000,000"; and
(b) by deleting paragraph (o) thereof in its entirety and
substituting in lieu thereof the following:
"(o) Liens (not otherwise permitted hereunder) which
secure obligations not exceeding (as to Subsidiaries of
Holdings) the Equivalent Amount of $75,000,000 in aggregate
amount at any time outstanding, provided that the aggregate
amount of such obligations incurred by Persons that are not
Foreign Subsidiaries shall not exceed the Equivalent Amount of
$37,500,000; and".
SECTION 8. Amendment to Subsection 13.6 (Limitation on Sale of
Assets). Subsection 13.6 of the Credit Agreement is hereby amended by deleting
paragraph (e) thereof in its entirety and substituting in lieu thereof the
following:
"(e) intercompany sales or transfers of assets made in the
ordinary course of business or made pursuant to subsection
13.9(c)(iv);"
SECTION 9. Amendment to Subsection 13.7 (Limitation on
Dividends). Subsection 13.7 of the Credit Agreement is hereby amended by
deleting clause (a)(ii) thereof in its entirety and substituting in lieu thereof
the following:
"(ii) [Intentionally omitted];".
SECTION 10. Amendments to Subsection 13.8 (Limitation on Capital
Expenditures). Subsection 13.8 of the Credit Agreement is hereby amended as
follows:
(a) by deleting the amount "$130,000,000" where it appears
therein corresponding to fiscal year 2002 and substituting in lieu
thereof the amount "$140,000,000"; and
(b) by deleting the period at the end of the proviso in
paragraph (a) thereof and adding thereto the following:
"and (iii) the amounts described in the foregoing
clauses (i) and (ii) shall not be available for increasing the
amount of capital expenditures that may be made during fiscal
year 2001.".
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SECTION 11. Amendments to Subsection 13.9 (Limitation on
Investments, Loans and Advances). Subsection 13.9 of the Credit Agreement is
hereby amended as follows:
(a) by deleting clause (c)(ii) thereof in its entirety and
substituting in lieu thereof the following:
"(ii) Investments by Credit Parties in Foreign Subsidiaries of
the US Borrower that are not Credit Parties not to exceed
$50,000,000 after giving effect to the WHB Acquisition,
provided that (A) on a pro forma basis for the period of four
consecutive fiscal quarters most recently ended (assuming such
Investment was made on the first day of such period of four
consecutive fiscal quarters), the US Borrower shall be in
compliance with the covenants contained in subsection 13.1(b)
of this Agreement in effect prior to the First Amendment
hereof and (B) after giving effect to any such Investment at
least $50,000,000 in Revolving Credit Commitments shall be
available to the Borrowers, provided, further, that no such
Investment shall be made prior to the receipt of the financial
statements of the US Borrower pursuant to subsection 12.1(b)
for the fiscal quarter ended December 31, 2001 ; and";
(b) by adding the following new clause (c)(iv) after clause
(c)(iii) thereof:
"(iv) Investments in Foreign Subsidiaries consisting of
transfers of equipment made in connection with the
Restructuring, so long as the aggregate book value of such
equipment does not exceed $65,000,000;";
(c) by deleting paragraph (j) thereof in its entirety and
substituting in lieu thereof the following:
"(j) in addition to the foregoing and clause (m)
below, Investments by Holdings and its Subsidiaries in an
aggregate amount not exceeding the Equivalent Amount of
$25,000,000 (at cost, without regard to any write down or
write up thereof) at any one time outstanding; provided that
(A) on a pro forma basis for the period of four consecutive
fiscal quarters most recently ended (assuming such Investment
was made on the first day of such period of four consecutive
fiscal quarters), the US Borrower shall be in compliance with
the covenants contained in subsection 13.1(b) of this
Agreement in effect prior to the First Amendment hereof and
(B) if such Investment is consummated by Holdings, Holdings
shall, immediately following the closing thereof, cause (I)
the assets or Capital Stock acquired to be contributed to the
US Borrower or its Subsidiaries or (II) the merger of the US
Borrower with the Person formed to consummate or acquired in
such Investment; provided, further, that no such Investment
shall be made prior to the receipt of the financial statements
of the US Borrower pursuant to subsection 12.1(b) for the
fiscal quarter ended December 31, 2001";
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(d) by deleting clause (k)(iii)(I)(A) thereof in its entirety
and substituting in lieu thereof the following:
"(A) the US Borrower shall be in compliance with the covenants
contained in subsection 13.1 (and, if applicable, the
requirements of subsection 13.2) and the covenants contained
in subsection 13.1(b) of this Agreement in effect prior to the
First Amendment and";
(e) by adding the following proviso at the end of paragraph
(k):
"provided, further, that no such Investment shall be made
prior to the receipt of the financial statements of the US
Borrower pursuant to subsection 12.1(b) for the fiscal quarter
ended December 31, 2001"; and
(f) by adding thereto the following paragraph (o):
"(o) Investments as a result of the Pending Acquisitions."
SECTION 12. Amendment to Section 13.10 (Limitation on Optional
Payments and Modifications of Subordinated Debt Instruments. Section 13.10 of
the Credit Agreement is hereby amended by deleting clause (a)(ii) thereof in its
entirety and substituting in lieu thereof the following:
"(ii) optional payments or prepayments, redemptions, defeasances or
repurchases of up to $50,000,000 of Senior Subordinated Indebtedness
provided that (A) after giving effect thereto (I) on a pro forma basis
for the period of four consecutive fiscal quarters most recently ended
(assuming such payment, prepayment, redemption, defeasance or
repurchase occurred on the first day of such period of four consecutive
fiscal quarters), US Borrower shall be in compliance with the covenants
contained in subsection 13.1 and the covenants contained in subsection
13.1(b) of this Agreement in effect prior to the First Amendment hereof
and (II) at least $50,000,000 in Revolving Credit Commitments shall be
available to the Borrowers and (B) the Administrative Agent shall have
received calculations in reasonable detail reasonably satisfactory to
it showing compliance with the requirements of this clause (ii)
certified by a Responsible Officer of the US Borrower, provided,
further, that no such optional payment, prepayment, redemption,
defeasance or repurchase shall be made pursuant to this clause (ii)
prior to the receipt of the financial statements of the US Borrower
pursuant to subsection 12.1(b) for the fiscal quarter ended December
31, 2001;".
SECTION 13. Amendment to Schedules. Schedules 10.1(a), 10.4,
10.6, 10.9, 10.10, 10.13, 10.15, 10.19, 10.21, 13.2, 13.3, 13.4 and 13.9 of the
Credit Agreement are hereby amended by deleting said Schedules in their entirety
and substituting in lieu thereof new Schedules in the form of Schedules 10.1(a),
10.4, 10.6, 10.9, 10.10, 10.13, 10.15, 10.19, 10.21, 13.2, 13.3, 13.4 and 13.9
to this Amendment.
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SECTION 14. Representations and Warranties. After giving effect
to this Amendment, Holdings and the US Borrower (and each Foreign Subsidiary
Borrower, only as to itself, and its Subsidiaries) hereby confirm, reaffirm and
restate that the representations and warranties set forth in Section 10 of the
Credit Agreement are true in all material respects as if made on and as of the
date hereof except for any representation or warranty made as of the earlier
date, which representation or warranty shall have been true and correct in all
material respects as of such earlier date.
SECTION 15. Conditions to Effectiveness. This Amendment shall
become effective upon receipt by the Administrative Agent of:
(a) Amendment. Counterparts of this Amendment, duly executed and
delivered by Holdings, the US Borrower and the Foreign Subsidiary
Borrowers;
(b) Lender Consent Letters. Lender Consent Letters (or facsimile
transmissions thereof) in the form of Exhibit A, duly executed
and delivered by the Required Lenders consenting to the execution
of this Amendment by the Administrative Agent;
(c) Fees. An amendment fee, for the account of the Lenders that
have delivered a Lender Consent Letter to the Administrative
Agent or its counsel no later than 12:00 p.m., New York City
time, on April 20, 2001, in an amount equal to 0.25% of the
aggregate amount of the Commitments in effect and Term Loans
outstanding of such Lenders; and
(d) Expenses. Payment of all accrued amounts owing to the
Administrative Agent pursuant to subsection 17.5 of the Credit
Agreement.
SECTION 16. Continuing Effect of Credit Agreement. Except as
expressly amended herein, the Credit Agreement shall continue to be, and shall
remain, in full force and effect in accordance with its terms.
SECTION 17. Governing Law; Counterparts. THIS AMENDMENT AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. This
Amendment may be executed by the parties hereto in any number of separate
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. The execution and delivery of this
Amendment by any Lender shall be binding upon each of its successors and assigns
(including Transferees of its commitments and Loans in whole or in part prior to
effectiveness hereof) and binding in respect of all of its commitments and
Loans, including any acquired subsequent to its execution and delivery hereof
and prior to the effectiveness hereof.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment
to be duly executed and delivered by their respective proper and duly authorized
officers as of the day and year first above written.
VIASYSTEMS GROUP, INC.,
as Guarantor
By: /s/ XXXXX X. XXXXXXXX
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Name: Xxxxx X. Xxxxxxxx
Title: Senior Vice President and
Chief Financial Officer
VIASYSTEMS, INC.,
as US Borrower
By: /s/ XXXXX X. XXXXXXXX
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Name: Xxxxx X. Xxxxxxxx
Title: Senior Vice President and
Chief Financial Officer
VIASYSTEMS CANADA, INC.,
as Canadian Borrower
By: /s/ XXXXX X. XXXXXXXX
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Name: Xxxxx X. Xxxxxxxx
Title: Senior Vice President and
Chief Financial Officer
PRINT SERVICE HOLDING N.V.,
as a Foreign Subsidiary Borrower
By: /s/ XXXXX X. XXXXXXXX
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Name: Xxxxx X. Xxxxxxxx
Title: Senior Vice President and
Chief Financial Officer
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THE CHASE MANHATTAN BANK,
as Administrative Agent and Collateral
Agent
By: /s/ XXXXXX X. XxXXXXXX
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Name: Xxxxxx X. XxXxxxxx
Title: Vice President