EXHIBIT 10.9
FIRST AMENDMENT TO SECOND
AMENDED AND RESTATED
CREDIT AGREEMENT
This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT is
made and entered into effective as of the 25th day of May, 1999 (this
"Amendment") among GROUP MAINTENANCE AMERICA CORP., a Texas corporation (the
"Company"), the Subsidiaries of the Company listed on the signature pages hereto
as Guarantors (together with each other person who subsequently becomes a
Guarantor, collectively the "Guarantors"), the banks and other financial
institutions listed on the signature pages hereto under the caption "Banks"
(together with each other person who becomes a Bank, collectively the "Banks")
and CHASE BANK OF TEXAS, NATIONAL ASSOCIATION, individually as a Bank, and as
agent for the other Banks (in such capacity, together with any other Person who
becomes the agent, the "Agent").
WHEREAS, the Company, certain of the Guarantors, certain of the Banks and
the Agent, entered into that certain Second Amended and Restated Credit
Agreement dated as of October 15, 1998 (as amended or restated from time to
time, the "Credit Agreement"), which Credit Agreement provides for a revolving
credit facility pursuant to which the Banks named therein committed to make
loans of up to $230,000,000.00 upon the terms and conditions as provided
therein.
WHEREAS, certain additional parties have subsequently become Guarantors
pursuant to the terms thereof.
WHEREAS, the Company and the Guarantors have requested the Banks and the
Agent to amend and modify certain terms and conditions of the Credit Agreement.
WHEREAS, said parties have agreed to do so to the extent reflected in this
Amendment, provided the Company and the Guarantors ratify and confirm all of
their obligations under the Credit Agreement and the Loan Documents, as well as
agree to make certain other amendments as set forth herein.
WHEREAS, the Company, the Guarantors, the Banks, and the Agent wish to
execute this document to evidence their agreement in regard thereto.
NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration and the mutual benefits, covenants and agreements herein
expressed, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto now agree as follows:
1. Defined Terms and Overall Changes. All capitalized terms used in this
Amendment and not otherwise defined herein have the meanings ascribed to such
terms in the Credit Agreement. All defined terms and references in the Credit
Agreement shall be modified generally to reference that the Total Commitment of
all the Banks is now $425,000,000, not the $230,000,000 referenced previously,
and the Commitment of each Bank is shown on the signature page of said Bank to
this Amendment. The new Notes, executed in connection with this Amendment, shall
be considered Notes under the Credit Agreement for all purposes.
2. Amendment to Section 1.01. Without limiting paragraph 1. above,
Section 1.01 of the Credit Agreement is hereby amended by deleting and restating
the following definitions in their proper alphabetical order to read as follows:
"'Business Day' means any day (other than a Saturday, Sunday or legal
holiday in the State of Texas) on which most banks are open for business in
Houston, Texas provided, when used in connection with Eurodollar Rate Advances,
the term Business Day shall not include any day on which banks are not open for
dealings in dollar deposit in the London interbank market.
'Commitment' and 'Commitments' means the obligation of each of the Banks to
enter into and perform this Agreement, to make available the Loans to the
Company in the amounts shown on the signature page of the First Amendment and
all other duties and obligations of the Banks hereunder.
'Eurodollar Rate' means, with respect to any Eurodollar Rate Advances for
any Interest Period, the rate appearing on Page 3750 of the Dow Jones Market
Service (or on any successor or substitute page of such Service, or any
successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as
determined by the Agent from time to time for purposes of providing quotations
of interest rates applicable to dollar deposits in the London interbank market)
at approximately 10:00 a.m., Houston, Texas time, two Business Days prior to the
commencement of such Interest Period, as the rate for dollar deposits with a
maturity comparable to such Interest Period. In the event that such rate is not
available at such time for any reason, then the "Eurodollar Rate" with respect
to such Eurodollar Rate Advance for such Interest Period shall be the rate at
which dollar deposits of $5,000,000 and for a maturity comparable to such
Interest Period are offered by the principal London office of the Agent in
immediately available funds in the London interbank market at approximately
10:00 a.m., Houston, Texas time, two Business Days prior to the commencement of
such Interest Period.
'First Amendment' means the First Amendment to Second Amended and Restated
Credit Agreement dated May 25, 1999 among the Company, the Guarantors listed on
the signature pages thereto, the Banks listed on the signature pages thereto and
the Agent.
'Letter of Credit Fee' has the meaning specified in Section 2.19(b).
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'Loan Documents' means this Agreement, the Notes, the Security
Documents, the Notice of Advance, any swap or hedging agreements entered into
with any of the Banks and the corporate resolutions authorizing the Loan
Documents.
'Total Commitment' means the aggregate Commitments of all Banks,
totaling a maximum of $425,000,000.00."
3. Amendment to Section 7.03. Section 7.03 of the Credit Agreement
is hereby amended by deleting the reference to $30,000,000.00 contained in
subsection (m) thereof and replacing it with $50,000,000.00.
4. Amendment to Section 7.04. (a) Section 7.04(a) of the Credit
Agreement is hereby amended by deleting the words "existing on the Execution
Date and".
(b) Section 7.04(e) of the Credit Agreement is hereby deleted in its
entirety and the following substituted therefor:
"(e) Other Liens securing obligations allowed pursuant to Section
7.03(k) or (l) not exceeding $3,000,000.00 in the aggregate at any one
time;".
5. Amendment to Section 7.05. Section 7.05 of the Credit Agreement
is hereby amended by deleting the reference to Section 7.17 in subsection (d)
thereof and replacing it with Section 7.16.
6. Amendment to Section 7.06. Section 7.06 of the Credit
Agreement is hereby deleted in its entirety and the following substituted
therefor:
"Section 7.06 Restricted Payments. The Company will not pay any
dividends or redeem, retire, purchase or guaranty the value of or make any
other acquisition, direct or indirect, of any shares of any class of stock
of the Company, or of any warrants, rights or options to acquire any such
shares, now or hereafter outstanding, except to the extent that the
consideration therefor consists solely of shares of stock (including
warrants, rights or options relating thereto) of the Company or is approved
by the Majority Banks; provided, the Company may purchase its stock in a
maximum, aggregate amount not to exceed $6,000,000.00 in the aggregate."
7. Amendment to Section 7.10. Section 7.10 of the Credit Agreement
is hereby deleted in its entirety and the following substituted therefor:
"Section 7.10 Consolidated Net Worth. The Company will not permit its
Consolidated Net Worth to be less than $180,000,000.00, plus, in all cases:
(a) 100% of the net proceeds from the issuance of any capital stock by the
Company or any Subsidiary subsequent to the Execution Date at any time
during the term hereof, plus (b) 75% of the
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consolidated after tax income (if positive) of the Company and its
Subsidiaries since July 1, 1998 for each fiscal year during the term hereof
(including any Subsidiaries acquired subsequent hereto)."
8. Amendment of Section 7.16. Section 7.16 of the Credit Agreement
is hereby amended by deleting the reference to $15,000,000.00 contained therein
and replacing it with $20,000,000.00
9. Amendment to Section 11.01. Section 11.01 of the Credit
Agreement is hereby deleted in its entirety and the following substituted
therefor:
"SECTION 11.01 Amendments. No amendment or waiver of any provision
of this Agreement, any Note or any other Loan Document, nor consent to any
departure by the Company herefrom or therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Company, as
to amendments, and by the Majority Banks in all cases, and then, in any
case, such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, no such
amendment, waiver or consent shall be effective unless signed by all of the
Banks if it attempts to: (a) change the definition of "Commitment",
"Designated Payment Date", "Majority Banks", or "Maturity Date"; (b)
decrease any applicable Margin or otherwise reduce the rate of Interest
charged on any Loan; (c) modify this Section or Sections 2.19 or 11.05 or
any definition related to said sections; (d) release any Guarantor or
Collateral; (e) waive any Default under Section 9.01(a); (f) release any
Liens on any of the Collateral; (g) change in any other manner the
repayment terms of the Loans, including required principal payments or the
rate, amount or time of interest payments; provided; that this Section
11.01(g) does not apply to an increase in the rate or amount of interest
payments; or (h) modify Section 7.17(a)(ii). Any decrease in the amount of
any fee, make whole amount, breakage cost or similar payment affecting less
than all of the Banks shall be allowed with the consent of the Bank or
Banks affected thereby. Further, no provisions of Article III or Article X
or other terms affecting the Agent or the Issuing Bank may be changed
without the consent of said Agent or the Issuing Bank as appropriate."
10. Amendment to Schedule 7.04(a). Schedule 7.04(a) to the Credit
Agreement is amended by deleting such schedule and replacing it with Schedule
7.04 attached to this Amendment.
11. Compliance Calculation Form. From and after the effective
date of this Amendment, when the Company submits quarterly and annual financial
statements as required under Sections 6.01(a) and 6.01(b), the Company will
submit an exhibit in substantially the same form as Exhibit 6.01(d), attached
hereto, demonstrating the calculations which confirm the Company is in
compliance with the provisions of Sections 7.10 through 7.15 of the Credit
Agreement.
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12. Ratification. The Company and each Guarantor, including those
parties who have become Guarantors subsequent to the execution of the Credit
Agreement, hereby ratify all of their respective obligations under the Credit
Agreement and the Loan Documents, and agree and acknowledge that the Credit
Agreement (including the Guaranty contained therein) and each of the Loan
Documents shall continue in full force and effect as amended and modified by
this Amendment. Nothing in this Amendment extinguishes, novates or releases any
right, claim, lien, security interest or entitlement of any of the Banks created
by or contained in any of such documents nor is the Company or any Guarantor
released from any covenant, warranty or obligation created by or contained
therein except as expressly provided herein.
13. Representations and Warranties. The Company and each Guarantor
hereby represent and warrant to the Banks that (a) this Amendment has been duly
executed and delivered on behalf of the Company and each Guarantor,
respectively, (b) this Amendment constitutes a valid and legally binding
agreement enforceable against the Company and each Guarantor in accordance with
its terms, (c) the representations and warranties contained in the Credit
Agreement and the Loan Documents are true and correct on and as of the date
hereof in all material respects as though made as of the date hereof except as
heretofore otherwise disclosed in writing to the Agent (other than those of such
representations and warranties which by their express terms speak to a date on
or before the date hereof), (d) no Default exists under the Credit Agreement or
any of the Loan Documents, (e) the execution, delivery and performance of this
Amendment has been duly authorized by the Company and each Guarantor and, (f)
the Subsidiaries signing as Guarantors constitute all of the domestic
Subsidiaries of the Company as of the date of this First Amendment. The Company
will, upon request by the Agent, provide satisfactory evidence of items (a) and
(e) above.
14. Multiple Counterparts. This Amendment may be signed in any
number of counterparts, each of which may be delivered in original or facsimile
form, and each shall be construed as an original, but all of which together
shall constitute one and the same instrument.
15. Conditions to Effectiveness. This Amendment shall be effective
upon the occurrence of or receipt by the Agent of the following, all in form and
substance satisfactory to the Agent and, where relevant, executed by all
appropriate parties:
(a) this Amendment;
(b) one Note for each Bank (i) who is a party to this Amendment but was
not a party to the Credit Agreement or (ii) whose Commitment effective
under this Amendment is different from such Bank's Commitment under the
Credit Agreement prior to the effectiveness of this Amendment;
(c) opinions addressed to the Agent and the Banks from (i) Bracewell &
Patterson, L.L.P., counsel to the Company and the Guarantors, in form and
substance satisfactory
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to the Agent and its counsel, and (ii) from Randolph W. Bryant, General
Counsel to the Company, in form and substance satisfactory to the Agent and
its counsel;
(d) receipt by the Agent of the fees payable by the Company under the fee
letter from the Agent to the Company dated April 16, 1999; and
(e) all conditions in Section 4.02 of the Credit Agreement shall be
satisfied.
16. Reference to the Credit Agreement and effect on the Notes and
other Documents executed pursuant to the Credit Agreement.
a. Upon the effectiveness of this Amendment, each reference in the
Credit Agreement to "this Agreement," "hereunder," "herein," "hereof" or words
of similar import shall mean and be a reference to the Credit Agreement, as
amended hereby.
b. Upon the effectiveness of this Amendment, each reference in the
Notes, the Security Documents and the other Loan Documents delivered or to be
delivered pursuant to the Credit Agreement shall mean and be a reference to the
Credit Agreement, as amended hereby.
17. Release and Indemnity. (a) The Company shall and hereby does
indemnify the Agent and each Bank and each Affiliate thereof and their
respective directors, officers, employees and agents from, and hold each of them
harmless against, any and all losses, liabilities, claims or damages (including
reasonable legal fees and expenses) to which any of them may become subject,
insofar as such losses, liabilities, claims or damages arise out of or result
from any actual or proposed use by the Company of the proceeds of any extension
of credit hereunder or any investigation, litigation or other proceeding
(including any threatened investigation or proceeding) relating to the foregoing
or any of the other Loan Documents, and the Company shall reimburse each Bank
and each Affiliate thereof and their respective directors, officers, employees
and agents, upon demand for any expenses (including legal fees) reasonably
incurred in connection with any such investigation or proceeding; but excluding
any such losses, liabilities, claims, damages or expenses incurred by reason of
the gross negligence or willful misconduct of the Person to be indemnified (the
"Indemnified Obligations").
(b) WITHOUT LIMITING ANY PROVISION OF THIS AGREEMENT, IT IS THE
EXPRESS INTENTION OF THE PARTIES HERETO THAT EACH PERSON TO BE INDEMNIFIED
HEREUNDER SHALL BE INDEMNIFIED AND HELD HARMLESS AGAINST ANY AND ALL INDEMNIFIED
OBLIGATIONS ARISING OUT OF OR RESULTING FROM THE ORDINARY SOLE OR CONTRIBUTORY
NEGLIGENCE OF SUCH PERSON OR IMPOSED UPON SAID PARTY UNDER ANY THEORY OF STRICT
LIABILITY. Without prejudice to the survival of any other obligations of the
Company hereunder and under the other Loan Documents, the obligations of the
Company under this Section shall survive the termination of this Amendment, the
Credit Agreement and the other Loan Documents and the payment of the Obligations
or the assignment of the Notes.
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18. Commitment. Subject to the conditions to effectiveness contained
in Section 15 of this Amendment, each Bank's Commitment shall be as reflected on
the signature pages of this Amendment opposite the signature of such Bank and
the commitments reflected on the signature pages of the Credit Agreement shall
be of no further effect.
19. Funding. Each New Bank agrees to pay to the Agent, and the Agent
agrees to pay to each Old Bank, on the day this Amendment is effective, amounts
so that after such payments each Bank is owed its pro rata portion of Advances
and other amounts owed by the Company on such day according to the ratio of such
Bank's Commitment to the Total Commitments. Amounts paid by the New Banks are
deemed to be Advances. "New Banks" are The Bank of New York, Bank One, Texas,
NA, Comerica Bank, First Union National Bank, Guaranty Federal Bank, Mercantile
Bank National Association, SunTrust Bank, Atlanta and Wells Fargo Bank (Texas),
N.A., "Old Banks" are Chase Bank of Texas, National Association, ABN, AMRO Bank,
N.V., NationsBank, N.A. (formerly known as Bank of America Texas, N.A.),
BankBoston, N.A., Bank of Montreal, The Bank of Nova Scotia, Credit Lyonnais New
York Branch, Key Corporate Capital Inc., National City Bank of Kentucky, Paribas
and Union Bank of California, N.A.
20. Agents. Upon the effectiveness of this Amendment, ABN AMRO Bank,
N.V. shall be the documentation agent, NationsBank, N.A. shall be the
syndication agent, The Bank of Nova Scotia and Credit Lyonnais New York Branch
shall each be a managing agent, and Paribas, Key Corporate Capital Inc., Bank
One, Texas, NA and First Union National Bank shall be co-agents.
21. Choice of Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT
EXECUTED BY THE PARTIES UNDER, AND SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF TEXAS, EXCEPT TO THE EXTENT
THAT THE LAWS OF THE UNITED STATES OF AMERICA AND ANY RULES, REGULATIONS OR
ORDERS ISSUED OR PROMULGATED THEREUNDER APPLICABLE TO THE AFFAIRS AND
TRANSACTIONS OF ANY BANK OTHERWISE PREEMPT TEXAS LAW, IN WHICH EVENT SUCH
FEDERAL LAW SHALL CONTROL.
21. Entire Agreement. THIS AMENDMENT AND THE CREDIT AGREEMENT AND
THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND
MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
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AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.
[SIGNATURES BEGIN ON NEXT PAGE]
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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 above written.
COMPANY:
GROUP MAINTENANCE AMERICA CORP.
By: /s/ Darren B. Miller
-------------------------
Name: Darren B. Miller
Title: Executive Vice President
GUARANTORS/DOMESTIC SUBSIDIARIES:
A-1 Appliance & Air Conditioning, Inc., a Delaware corporation
A-1 Mechanical of Lansing, Inc., a Michigan corporation
A-ABC Appliance, Inc., a Texas corporation
A-ABC Services, Inc., a Delaware corporation
AA Advance Air, Inc., a Florida corporation
AA JARL, Inc. (dba Jarrell Plumbing), a Delaware corporation
Air Conditioning Engineers, Inc., a Michigan corporation
Air Conditioning, Plumbing & Heating Service Co., Inc., a Colorado corporation
Aircon Energy Incorporated, a California corporation
Air Systems, Inc., a California corporation
Airtron, Inc., a Delaware corporation
Airtron of Central Florida, Inc., a Florida corporation
All Service Electric, Inc., a Florida corporation
Arkansas Mechanical Services, Inc., an Arkansas corporation
Atlantic Industrial Constructors, Inc., a Virginia corporation
Barr Electric Corp., an Illinois corporation
Callahan Roach Products & Publications, Inc., a Colorado corporation
Cardinal Contracting Corporation, an Indiana corporation
Central Air Conditioning Contractors, Inc., a Delaware corporation
Central Carolina Air Conditioning Company, a North Carolina corporation
Charlie Crawford, Inc., a Delaware corporation
Clark Converse Electric Service, Inc., an Ohio corporation
Colonial Air Conditioning Company, a Delaware corporation
Commercial Air Holding Company, a Maryland corporation
Commercial Air, Power & Cable, Inc., a Maryland corporation
Continental Electrical Construction Co., a Delaware corporation
Costner Brothers, Inc., a South Carolina corporation
Divco, Inc., a Washington corporation
Dynamic Software Corporation, a Maryland corporation
Electrical Associates of Dallas, Inc., a Texas corporation
Evans Services, Inc., an Alabama corporation
The Farfield Company, a Delaware corporation
Ferguson Electric Corporation, a Delaware corporation
Gentzler Electrical Contractors, Inc., a Delaware corporation
Gilbert Mechanical Contractors, Inc., a Minnesota corporation
Gregory Electric Corp., an Illinois corporation
GroupMAC Holding Corp., a Delaware corporation
HPS Plumbing Services, Inc., a California corporation
Hallmark Air Conditioning, Inc., a Delaware corporation
Hungerford Mechanical Corporation, a Virginia corporation
J. D. Steward Air Conditioning, Inc., a Colorado corporation
K & N Plumbing, Heating and Air Conditioning, Inc., a Delaware corporation
L.T. Mechanical, Inc., a Delaware corporation
Laney's Inc., a Delaware corporation
Linford Service Co., a California corporation
MacDonald-Miller Co., Inc., a Washington corporation
MacDonald-Miller Industries, Inc., a Washington corporation
MacDonald-Miller of Oregon, Inc., a Delaware corporation
MacDonald-Miller Service, Inc., a Washington corporation
Masters, Inc., a Maryland corporation
Mechanical Interiors, Inc., a Delaware corporation
Merritt Island Air & Heat, Inc., a Delaware corporation
New Construction Air Conditioning, Inc., a Michigan corporation
Noron, Inc., an Ohio corporation
Pacific Rim Mechanical Contractors, Inc., a California corporation
Paul E. Smith Co., Inc., an Indiana corporation
Phoenix Electric Company, a Delaware corporation
Ray and Claude Goodwin, Inc., a Florida corporation
Reliable Mechanical, Inc., a Delaware corporation
Romanoff Electric Corp., an Ohio corporation
Sibley Services, Incorporated, a Tennessee corporation
Southeast Mechanical Service, Inc., a Florida corporation
Statewide Heating & Cooling, Inc., a Delaware corporation
Stephen C. Pomeroy, Inc., a Delaware corporation
Sterling Air Conditioning, Inc., a Texas corporation
Sun Plumbing, Inc., a Florida corporation
Team Mechanical, Inc., a Utah corporation
Tower Electric Company, a Delaware corporation
Trinity Contractors, Inc., a Delaware corporation
United Acquisition Corp. (dba United Service Alliance), an Iowa corporation
Valley Wide Plumbing and Heating, Inc., a Colorado corporation
Van's Comfortemp Air Conditioning, Inc., a Florida corporation
Vermont Mechanical, Inc., a Delaware corporation
Wade's Heating and Cooling, Inc., a Florida corporation
Wiegold & Sons, Inc., a Florida corporation
Willis Refrigeration, Air Conditioning & Heating, Inc., an Ohio corporation
Yale Incorporated, a Minnesota corporation
By: /s/ Darren B. Miller
-------------------------
Name: Darren B. Miller
Title: Vice President
GroupMAC Management Co., a Delaware corporation
By: /s/ Darren B. Miller
-------------------------
Name: Darren B. Miller
Title: Executive Vice President
AGENT/BANK:
Amount of Commitment: CHASE BANK OF TEXAS,
$34,000,000.00 NATIONAL ASSOCIATION,
as Agent and Individually, as a Bank
By: /s/ J. M. Walshak
-------------------------
J. M. Walshak
Vice President
DOCUMENTATION AGENT/BANK:
Amount of Commitment: ABN AMRO BANK, N.V.,
$33,000,000.00 as Documentation Agent and
Individually as a Bank
By: /s/ Laurie C. Tuzo
---------------------------
Name: Laurie C. Tuzo
-------------------------
Title: Senior Vice President
------------------------
By: /s/ Eric R. Hollingsworth
---------------------------
Name: Eric R. Hollingsworth
-----------------------
Title: Vice President
----------------------
Address for Notice:
Three Riverway, Suite 1700
Houston, Texas 77056
Telephone No.: (713) 964-3360
Telecopy No.: (713) 629-7533
Attn: Laurie Tuzo
BANKS:
Amount of Commitment: BANKBOSTON, N.A.
$20,000,000.00
By: /s/ Ravi Kacker
-------------------------
Name: Ravi Kacker
-----------------------
Title: Vice President
----------------------
Address for Notice:
100 Federal Street, Mail Stop 01-10-01
Boston, Massachusetts 02110
Telephone No.: (617) 434-4708
Telecopy No.: (617) 434-1574
Attn: Ravi Kacker
E-mail: rkacker@bkb.com
BANKS:
Amount of Commitment: BANK OF MONTREAL
$20,000,000.00
By: /s/ L.A. Durning
-------------------------
Name: L.A. Durning
-----------------------
Title: Portfolio Manager
----------------------
Address for Notice:
115 South LaSalle Street, 12th Floor
Chicago, Illinois 60603
Telephone No.: (312) 750-3474
Telecopy No.: (312) 750-3808
Attn: Amy Dumser
CO-AGENT/BANK:
Amount of Commitment: BANK ONE, TEXAS, NA,
$25,000,000.00 as Co-Agent and Individually as a Bank
By: /s/ Barry A. Kelly
-------------------------
Name: Barry A. Kelly
-----------------------
Title: Managing Director
----------------------
Address for Notice:
910 Travis Street, 7th Floor
Houston, Texas 77002
Telephone No.: (713) 751-3831
Telecopy No.: (713) 751-6199
Attn: Barry Kelly
BANKS:
Amount of Commitment: THE BANK OF NEW YORK
$10,000,000.00
By: /s/ Helen L. Sarro
-------------------------
Name: Helen L. Sorro
-----------------------
Title: Vice President
----------------------
Address for Notice:
One Wall Street, 22nd Floor
New York, New York 10286
Telephone No.: (212) 635-6898
Telecopy No.: (212) 635-6434
Attn: Helen Sarro
MANAGING AGENT/BANK:
Amount of Commitment: THE BANK OF NOVA SCOTIA,
$30,000,000.00 as Managing Agent and Individually as a
Bank
By: /s/ F.C.H. Ashby
----------------------------------
Name: F.C.H. Ashby
--------------------------------
Title: Senior Manager Loan Operations
-------------------------------
Address for Notice:
600 Peachtree Street N.E.
Atlanta, Georgia 30308
Telephone No.: (404) 877-1500
Telecopy No.: (404) 888-8998
Attn: F.C.H. Ashby
BANKS:
Amount of Commitment: COMERICA BANK
$15,000,000.00
By: /s/ Mark B. Glover
-------------------------
Name: Mark B. Glover
-----------------------
Title: Vice President
----------------------
Address for Notice:
4100 Spring Valley, 9th Floor, MC-6625
Dallas, Texas 75244
Telephone No.: (214) 818-2545
Telecopy No.: (214) 818-2550
Attn: Mark Grover
MANAGING AGENT/BANK:
Amount of Commitment: CREDIT LYONNAIS NEW YORK
$30,000,000.00 BRANCH, as Managing Agent and
Individually as a Bank
By: /s/ Xavier Ratouis
-------------------------
Name: Xavier Ratouis
-----------------------
Title: Senior Vice President
----------------------
Address for Notice:
c/o Credit Lyonnais Representative Office
2200 Ross Avenue, Suite 4400W
Dallas, Texas 75201
Telephone No.: (214) 220-2302
Telecopy No.: (214) 220-2323
Attn: Blake Wright
CO-AGENT/BANK:
Amount of Commitment: FIRST UNION NATIONAL BANK,
$25,000,000.00 as Co-Agent and Individually as a Bank
By: /s/ Scott Santa Cruz
-------------------------
Name: Scott Santa Cruz
-----------------------
Title: Vice President
----------------------
Address for Notice:
301 South College Street
Charlotte, North Carolina 28288-0737
Telephone No.: (704) 383-7239
Telecopy No.: (704) 374-4793
Attn: Andy Phelps
BANKS:
Amount of Commitment: GUARANTY FEDERAL BANK
$15,000,000.00
By: /s/ Mark L. Wayne
-------------------------
Name: Mark L. Wayne
-----------------------
Title: Vice President
----------------------
Address for Notice:
333 Clay Street, Suite 4430
Houston, Texas 77002
Telephone No.: (713) 759-9230
Telecopy No.: (713) 759-0765
Attn: Mark L. Wayne
CO-AGENT/BANK:
Amount of Commitment: KEY CORPORATE CAPITAL INC.,
$25,000,000.00 as Co-Agent and Individually as a Bank
By: /s/ Christine A. Schoaf
----------------------------
Name: Christine A. Schoaf
--------------------------
Title: Assistant Vice President
-------------------------
Address for Notice:
127 Public Square, 6th Floor
Cleveland, Ohio 44114
Telephone No.: (216) 689-8973
Telecopy No.: (216) 689-4077
Attn: Christine A. Schoaf
BANKS:
Amount of Commitment: MERCANTILE BANK, NATIONAL
$15,000,000.00 ASSOCIATION
By: /s/ David L. Dains
-------------------------
Name: David L. Dains
-----------------------
Title: Vice President
----------------------
Address for Notice:
1 Mercantile Center, 12th Floor
St. Louis, Missouri 63101
Telephone No.: (314) 418-8523
Telecopy No.: (314) 418-2203
Attn: Dave Dains
BANKS:
Amount of Commitment: NATIONAL CITY BANK OF
$15,000,000.00 KENTUCKY
By: /s/ Tom Gurbach
-------------------------
Tom Gurbach
Vice President
Address for Notice:
101 South 5th Street, 31-T08J
Louisville, Kentucky 40202
Telephone No.: (502) 581-6352
Telecopy No.: (502) 581-5122
SYNDICATION AGENT/BANK:
Amount of Commitment: NATIONSBANK, N.A., as Syndication
$33,000,000.00 Agent, and Individually as a Bank
By: /s/ Richard L. Nichols, Jr.
----------------------------
Name: Richard L. Nichols
--------------------------
Title: Vice President
-------------------------
Address for Notice:
700 Louisiana, 8th Floor
Houston, Texas 77002
Telephone No.: (713) 247-6258
Telecopy No.: (713) 247-6360
Attn: Richard Nichols
CO-AGENT/BANK:
Amount of Commitment: PARIBAS,
$25,000,000.00 as Co-Agent and Individually as a Bank
By: /s/ Chuck Irwin
-------------------------
Name: Chuck Irwin
-----------------------
Title: Vice President
----------------------
By: /s/ Larry Robinson
-------------------------
Name: Larry Robinson
-----------------------
Title: Vice President
----------------------
Address for Notice:
1200 Smith Street, Suite 3100
Houston, Texas 77002
Telephone No.: (713) 659-4811
Telecopy No.: (713) 659-5234
Attn: Scott Clingan
BANKS:
Amount of Commitment: SUNTRUST BANK, ATLANTA
$20,000,000.00
By: /s/ David J. Edge
-------------------------
Name: David J. Edge
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Title: Vice President
----------------------
By: /s/ Carolyn S. McMeekin
-----------------------------
Name: Carolyn S. McMeekin
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Title: Corporate Banking Officer
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Address for Notice:
25 Park Place, 25th Floor, Center 1909
Atlanta, Georgia 30303
Telephone No.: (404) 581-1522
Telecopy No.: (404) 827-6695
Attn: Carolynn S. McMeekin
BANKS:
Amount of Commitment: UNION BANK OF CALIFORNIA, N.A.
$20,000,000.00
By: /s/ J. Scott Jessup
-------------------------
Name: J. Scott Jessup
-----------------------
Title: Vice President
----------------------
Address for Notice:
445 S. Figueroa St., 18th Floor
Los Angeles, California 90071
Telephone No.: (213) 236-4023
Telecopy No.: (213) 236-7814
Attn: Scott Jessup
BANKS:
Amount of Commitment: WELLS FARGO BANK (TEXAS), N.A.
$15,000,000.00
By: /s/ Christopher A. King
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Name: Christopher A. King
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Title: Vice President
----------------------
Address for Notice:
1000 Louisiana, 3rd Floor
Houston, Texas 77002
Telephone No.: (713) 319-1333
Telecopy No.: (713) 739-1082
Attn: Christopher King
EXHIBIT 6.01(d)
COMPLIANCE CERTIFICATE
(a) Consolidated Net Worth (Section 7.10):
(i) 75% of consolidated net income for the third $____________
quarter 1998, fourth quarter 1998 and each
completed fiscal quarter thereafter:
(ii) 100% of net proceeds from issuance of $____________
capital stock subsequent to October 15, 1998:
(iii) Required Consolidated Net Worth $____________
((i) + (ii) + $180,000,000):
(iv) Net Worth of the Company and its $____________
Subsidiaries on a consolidated basis:
(b) Funded Debt to EBITDA Ratio (Section 7.11):
(i) Funded Debt: $____________
(ii) EBITDA for the preceding four quarters $____________
calculated on a pro forma basis:
(iii) Required Funded Debt to EBITDA Ratio: 4.00 to 1.00
(iv) Funded Debt to EBITDA Ratio (i / ii): _____________
(c) Senior Debt to EBITDA Ratio (Section 7.12):
(i) Senior Debt: $____________
(ii) EBITDA for the preceding four quarters $____________
calculated on a pro forma basis:
(iii) Required Senior Debt to EBITDA Ratio: 2.50 to 1.00
(iv) Senior Debt to EBITDA (i / ii): _____________
(d) Funded Debt to Capitalization Ratio (Section 7.13):
(i) Funded Debt: $____________
(ii) Total Capitalization: $____________
(iii) Required Funded Debt to Capitalization Ratio 55.0%
(iv) Funded Debt to Capitalization Ratio: (i / ii): _____________
(e) Consolidated Capital Expenditures Limitation (Section 7.14):
(i) Consolidated Net Worth: $_____________
(ii) Consolidated Capital Expenditures Limitation $_____________
((i) x 8%):
(iii) Consolidated Capital Expenditures: $_____________
(f) Fixed Charge Coverage Ratio (Section 7.15):
(i) EBITDA for the preceding four quarters $_____________
calculated on a pro forma basis:
(ii) Cash taxes paid during the preceding four $_____________
quarters:
(iii) Consolidated Capital Expenditures during $_____________
the preceding four quarters:
(iv) Cash Interest Expense for the preceding four $_____________
quarters:
(v) Scheduled Amortization of Principal and $_____________
Payments in respect to Capitalized Lease
Obligations during the four subsequent quarters:
(vi) Advances outstanding under this Agreement $_____________
times 20%:
(vii) Required Fixed Charge Coverage Ratio 1.20 to 1.00
[(i-ii-iii)/(iv+v+vi)]
(viii) Fixed Charge Coverage Ratio: _____________
SCHEDULE 7.04(a)
1. Airtron - Assignment of Certificate of Deposit, NO. 2171630105, for
$167,000, of National City Bank, to Ohio Bureau of Workers' Compensation,
dated June 23, 1996 (Certificate of Deposit, which was scheduled to mature
on June 23, 1996, was renewed until June 23, 1998)
2. Airtron-Section 634.405 deposit with the Florida Department of
Insurance of $100,000 for Airtron of Central Florida, Inc. and retains
unencumbered assets of at least $200,000 (the Company maintains a
certificate of deposit in its name but unencumbered in any way to meet this
requirement) (warranty work - service contracts)
3. Airtron - United Parcel Service deposit $200
4. Liens evidenced by the following filings:
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FILING
DEBTOR JURISDICTION FILE NO. SECURED PARTY
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Airtron 89-5292 Carrier Distribution Credit Corporation
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Airtron 93-6606 Lennox Industries, Inc.
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Airtron 93-74544 Amana Refrigeration, Inc.
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A 1 Appliance & Air Texas-SOS 94-00225771 A-1 Appliance Service, Inc.
Conditioning, Inc.
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A-ABC Appliance, Inc. Texas-SOS 98-00126841 General Electric Capital Corporation
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A-ABC Appliance, Inc. Texas-SOS 9300074729 Maytag Appliance Sales Company
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Air Systems, Inc. SOS-CA 9601260458 Heritage Bank of Commerce
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Calahan Roach Products & Colorado-SOS 19972019369 First Sierra Financial Inc.
Publications
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MPS Plumbing Service, Inc. 9736060829 Colonial Pacific Leasing Corp.
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Jarrell Plumbing Texas-SOS 88-00277778 The Frost National Bank
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K and N Plumbing, Inc. Texas-SOS 90-00052385 Lennox Industries, Inc.
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K&N Plumbing, Heating and Texas-SOS 9600184361 Romco Equipment Co.
Air Conditioning, Inc.
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K and N Plumbing, Heating Texas-SOS 97-0072606 Codorus Acceptance Corporation
and Air Conditioning, Inc.
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MacDonald-Miller, Inc. Washington-SOS 97-083-0030 Howard S. Wright Construction Co.
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Merritt Island Heat & Air, Inc. Florida-SOS 980000011001 Wachovia Bank NA
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Van's Comfortemp Air Florida-SOS 001850088133 American Standard Financial Services
Conditioning, Inc.
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5. The following filings describe collateral that is held by the Company
or a Guarantor under operating leases.
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FILING
DEBTOR JURISDICTION FILE NO. SECURED PARTY
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Aircon Energy Incorporation California-SOS 9824660130 Inter-Tel Leasing, Inc.
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Atlantic Industrial Virginia-Henrico Cty 98-1956 Carter Machinery Company, Inc.
Constructors, Inc.
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Callahan Roach Products & Colorado-SOS 19952070909 AT&T Capital Leasing Services, Inc.
Publications
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Commercial Air, Power and Maryland-SOS 171058549 Mercantile Safe Deposit and Trust
Cable, Inc. Company
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Costner Brothers, Inc. South Carolina-SOS 960716-113759A Ful Incorporated
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Costner Brothers Air South Carolina-SOS 951107-111722A Rock Hill Telephone Company
Conditioning Heating
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The Farfield Company Pennsylvania-SOS 23610772 Center Capital Corporation
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The Farfield Company Pennsylvania-SOS 24451310 Acton Mobile Industries
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The Fairfield Company Pennsylvania-SOS 25671270 Forklifts, Inc.
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The Fairfield Company Pennsylvania-SOS 25350951 The CIT Group/Equipment Financing, Inc.
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The Fairfield Company Pennsylvania-SOS 28601128 Citicorp Del-Lease, Inc.
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The Fairfield Company Pennsylvania-SOS 29580399 CIT Group Equipment Financing, Inc.
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The Fairfield Company Pennsylvania-SOS 27000108 Acton Mobile Industries Inc.
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Hungerford Mechanical Virginia-SOS 9704247086 Resun Powhatan XXII Limited Partnership
Corporation
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Hungerford Mechanical Virginia-SOS 9704247087 Resun Comanche XX Limited Partnership
Corporation
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Hungerford Mechanical Virginia-SOS 9711047139 Resun Pawnee XIX Limited Partnership
Corporation
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McDonald-Miller Co., Inc. Washington-SOS 97-303-0229 Northwest Forklift, Inc.
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McDonald-Miller Industries, Inc. Washington-SOS 95-223-0094 Leasing Associates Inc. P1
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MacDonald-Miller, Service, Inc. Washington-SOS 97-108-0068 NFC Financial assigned to Unistar Leasing
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Masters, Inc. Maryland-SOS 180698345 Standard Equipment Company
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Mechanical Interiors, Inc. Texas-SOS 94-00074050 American Business Credit Corporation
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Mechanical Interiors, Inc. Texas-SOS 98-00008955 American Business Credit Corporation
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Ray and Claude Goodwin, Inc. Florida-SOS 980000251825 KDC Financial Limited Partnership
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Team Mechanical Utah-SOS 538337 Young Electric Sign
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Yale Incorporated Minnesota-SOS 2059505 The Manifest Group
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