AMENDMENT NO. 1
TO
CREDIT AGREEMENT
Amendment No. 1, dated February 12, 1999 (the "Amendment"), to Credit
Agreement dated August 19, 1998 (as amended, the "Agreement") by and among
MATLACK (DE), INC. (the "Company"), MATLACK, INC. ("MI"), SAFEWAY CHEMICAL
TRANSPORTATION, INC. ("SCT"), BRITE-SOL SERVICES, INC. ("BSS"), MATLACK LEASING
CORPORATION. ("ML"), SUPER SERVICE, INC. ("SSI") (the Company, MI, SCT, BSS, ML
and SSI are each individually and collectively referred to as the "Borrowers"),
jointly and severally, the banking institutions signatories hereto and named in
Exhibit A attached hereto and such other institutions that hereafter become a
"Bank" pursuant to ss.11.4 hereof (collectively the "Banks" and individually a
"Bank") and FIRST UNION NATIONAL BANK, a national banking association, as agent
for the Banks under this Agreement ("First Union", which shall mean in its
capacity as agent unless specifically stated otherwise). All capitalized terms
used herein and not otherwise defined shall have the respective meanings
ascribed to them in the Agreement.
Preliminary Statement
WHEREAS, the Borrowers have requested that the Agreement be amended in the
manner hereinafter set forth.
WHEREAS, the Required Banks are willing to amend the Agreement in the
manner hereinafter set forth.
NOW, THEREFORE, in consideration of the premises and promises hereinafter
set forth and intending to be legally bound hereby, the parties hereto agree as
follows:
1. Section 1.1 of Agreement. The following definitions set forth in ss.1.1
of the Agreement shall be and hereby are amended and restated in their
entireties to read as follows:
"Fixed Charge Coverage Ratio" shall mean the ratio of EBITDA plus
Rental and Lease Expense to the sum of Consolidated Total Interest Expense,
Rental and Lease Expense, and (a) for all periods ending on or before
September 30, 1999, 15% all indebtedness for borrowed money or (b) for all
periods ending on or after October 1, 1999, Current Maturities plus 20% of
Obligations. This ratio shall be determined on a rolling four quarter
basis.
"LIBO Rate Margin" shall mean the percentage listed in the following
table.
Fixed Charge Coverage Ratio LIBO Rate Margin
Equal to or less than 1.15 2.000%
Greater than 1.15 but less than 1.25 1.750%
Equal to or greater than 1.25 but less than 1.50 1.375%
Equal to or greater than 1.50 but less than 1.75 1.125%
Equal to or greater than 1.75 0.875%
with such Fixed Charge Coverage Ratio to be computed as of the last
quarterly compliance period.
Amendment No. 1 to Dated
Credit Agreement - 1 - February 12, 1999
"Unused Fee Percentage" shall mean the percentage listed in the
following table.
Fixed Charge Coverage Ratio Unused Fee Percentage
Equal to or less than 1.15 0.500%
Greater than 1.15 but less than 1.25 0.375%
Equal to or greater than 1.25 but less than 1.50 0.375%
Equal to or greater than 1.50 but less than 1.75 0.250%
Equal to or greater than 1.75 0.250%
with such Fixed Charge Coverage Ratio to be computed as of the last
quarterly compliance period."
2. Section 7.2 of Agreement. Section 7.2 shall be and hereby is amended
and restated in its entirety to be as set forth below:
"7.2 Fixed Charge Coverage Ratio. The Company, on a consolidated
basis, shall not incur a Fixed Charge Coverage Ratio of less than (a) 1.0
to 1.0 for any period ending on or before June 30, 1999, (b) 1.1 to 1.0 for
any period beginning on or after July 1, 1999 and ending on or before
September 30, 1999, or (c) 1.15 to 1.0 for any period ending on or after
October 1, 1999."
3. Representations and Warranties. The Borrowers hereby restate the
representations and war ranties made in the Agreement as amended by this
Amendment, including but not limited to Article 3 thereof, on and as of the date
hereof as if originally given on this date.
4. Covenants. The Borrowers hereby represent and warrant that they are in
compliance and have complied with each and every covenant set forth in the
Agreement as amended by this Amendment, including but not limited to Articles 5
and 6 thereof, on and as of the date hereof.
5. No Default. The Borrowers hereby confirm that no Event of Default or
Potential Default exists under the Agreement as amended by this Amendment.
6. Affirmation. The Borrowers each hereby affirms its absolute and
unconditional promise to pay to each Bank and First Union National Bank, as
agent under the Agreement, the Loans and all other amounts due under the
Agreement and any other Loan Document on the maturity date(s) provided in the
Agreement or any other Loan Document, as such documents may be amended hereby.
7. Corporate Authorization and Delivery of Documents. Each Bank shall have
received (a) copies, certified as of the date hereof, of all action taken by the
Borrowers and any other necessary Person to authorize this Amendment and such
other papers as any Bank shall require, (b) a copy of a Certificate of Good
Standing for each Borrower in the jurisdiction of formation of each entity and
in the jurisdiction where its executive offices are located, (c) a certificate
signed by the secretary or assistant secretary of each Borrower, together with
the true signature of the officer or officers authorized to execute and deliver
this Amendment, upon which the Banks shall be entitled to rely conclusively
until they shall have received a further certificate of the secretary or
assistant secretary of each Borrower changing the prior certificate and
submitting the signature of the officer or officers named in the new certificate
as being authorized to execute and deliver Loan Documents and certificates
thereunder, and (d) a favorable written opinion to the Banks from counsel for
the Borrowers substantially in the same form and substance as that delivered in
connection with the execution and delivery of the Agreement on August 19, 1998.
Amendment No. 1 to Dated
Credit Agreement - 2 - February 12, 1999
8. Effect of Amendment. This Amendment amends the Agreement only to the
extent and in the manner herein set forth, and in all other respects the
Agreement is ratified and confirmed.
9. Counterparts. This Amendment may be signed in any number of
counterparts, each of which shall be an original, with the same effect as if the
signatures hereto were upon the same instrument.
10. Amendment Fee. Simultaneous with the execution and delivery of this
Amendment, the Borrowers shall deliver to First Union for the ratable benefit of
each Bank an amendment fee in the aggregate amount of $75,000 which will be
distributed to each Bank by First Union promptly following the execution and
delivery of this Amendment by the Required Banks.
IN WITNESS WHEREOF, the parties hereto have each caused this Amendment to
be duly executed by their duly authorized representatives as of the date first
above written.
MATLACK (DE), INC.
By: /s/ G. J. Trippitelli
-------------------------------------
Name: G. J. Trippitelli
Title: President
MATLACK, INC.
By: /s/ G. J. Trippitelli
-------------------------------------
Name: G. J. Trippitelli
Title: President
SAFEWAY CHEMICAL TRANSPORTATION, INC.
By: /s/ G. J. Trippitelli
-------------------------------------
Name: G. J. Trippitelli
Title: President
BRITE-SOL SERVICES, INC.
By: /s/ G. J. Trippitelli
-------------------------------------
Name: G. J. Trippitelli
Title: President
MATLACK LEASING CORPORATION
By: /s/ G. J. Trippitelli
-------------------------------------
Name: G. J. Trippitelli
Title: President
Amendment No. 1 to Dated
Credit Agreement - 3 - February 12, 1999
SUPER SERVICE, INC.
By: /s/ G. J. Trippitelli
-------------------------------------
Name: G. J. Trippitelli
Title: President
FIRST UNION NATIONAL BANK
By: /s/ Michael J. Labrum
-------------------------------------
Name: Michael J. Labrum
Title: President
CHASE BANK OF TEXAS, N.A.
By: /s/ Ken M. Sample
-------------------------------------
Name: Ken M. Sample
Title: Senior Vice President
BANKBOSTON, NA
By: /s/ Tony Zhang
-------------------------------------
Name: Tony Zhang
Title: Vice President
SUNTRUST BANK, ATLANTA
By: /s/ Laura G. Harrison
-------------------------------------
Name: Laura G. Harrison
Title: Asst. Vice President
By: /s/ W. David Wisdom
-------------------------------------
Name: W. David Wisdom
Title: Vice President
Amendment No. 1 to Dated
Credit Agreement - 4 - February 12, 1999