EXHIBIT 10.18
FIFTH AMENDMENT TO AND WAIVER
UNDER FIVE-YEAR CREDIT AGREEMENT
THIS FIFTH AMENDMENT TO AND WAIVER UNDER FIVE-YEAR CREDIT AGREEMENT
(this "Amendment") made and entered into as of June 7, 2002, by and among
INTERMET CORPORATION, a Georgia corporation ("Intermet"), THE BANK OF NOVA
SCOTIA, a Canadian chartered bank ("Scotia Capital"), acting through its Atlanta
Agency, the other banks and lending institutions listed on the signature pages
hereof, and any assignees of Scotia Capital or such other banks and lending
institutions which become "Lenders" as provided in the Amended Agreement (as
defined below) (Scotia Capital, and such other banks, lending institutions, and
assignees referred to collectively herein as the "Lenders"), Scotia Capital, in
its capacity as administrative agent for the Lenders and each successor
administrative agent for such Lenders as may be appointed from time to time
pursuant to Article IX of the Amended Agreement (the "Administrative Agent"),
BANK ONE, MICHIGAN, as Syndication Agent, and SUNTRUST BANK, as Documentation
Agent, COMERICA BANK, as Managing Agent and THE BANK OF NEW YORK, HARRIS TRUST
AND SAVINGS BANK and PNC BANK, NATIONAL ASSOCIATION, as Co-Agents (the
Administrative Agent, the Syndication Agent, the Documentation Agent, the
Managing Agent and the Co-Agents are herein referred to individually as an
"Agent" and collectively as the "Agents").
WITNESSETH:
WHEREAS, Intermet, the Lenders and the Agents are parties to that
certain $300,000,000 Five-Year Credit Agreement, dated as of November 5, 1999,
as amended on July 17, 2001 (the "Existing Agreement," capitalized terms used
herein but not otherwise defined herein having the same respective meanings as
in the Existing Agreement); and
WHEREAS, the parties to the Existing Agreement wish to amend the
Existing Agreement (the Existing Agreement as amended by this Amendment being
the "Amended Agreement") and waive certain provisions of the Existing Agreement
as provided in this Amendment.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants herein contained, Intermet, the Required Lenders, the Administrative
Agent and the other Agents agree, upon the terms and subject to the conditions
set forth herein, as follows:
SECTION 1. AMENDMENTS. Effective on (and subject to the occurrence of)
the Fifth Amendment Date (as defined in Section 2 of this Amendment), the
Existing Agreement shall be amended as follows:
(a) Definition of Asset Sale. The definition of "Asset Sale" in Section
1.1 of the Existing Agreement shall be amended by deleting the amount
"$1,000,000" therein and substituting the amount"$5,000,000" therefor; and
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(b) Definition of Change of Control of the Borrower. The definition of
"Change of Control of the Borrower" in Section 1.1 of the Existing Agreement
shall be amended in its entirety to read as follows:
"Change in Control of the Borrower" shall mean:
(i) any "person" or "group" (within the meaning of Sections
13(d) and 14(d)(2) of the Exchange Act) shall become the "beneficial
owner(s)" (as defined in said Rule 13d-3) of more than fifty percent
(50%) of the shares of the outstanding Capital Securities of the
Borrower entitled to vote for members of the Borrower's board of
directors on a fully diluted basis;
(ii) the individuals who are members of the board of directors
of the Borrower on the Fourth Amendment Date (together with any new or
replacement directors whose initial nomination for election was
approved by a majority of the directors who were either directors on
the Fourth Amendment Date or previously so approved) shall cease to
constitute a majority of the board of directors of the Borrower;
(iii) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or
substantially all of the assets of the Borrower and the Guarantors,
taken as a whole, to any Person or "group" of related Persons for
purposes of Section 13(d) of the Exchange Act, together with any
Affiliates thereof (whether or not otherwise in compliance with the
provisions of this Agreement);
(iv) the approval of the holders of the Capital Securities of
the Borrower of any plan or proposal for the liquidation or dissolution
of the Borrower (whether or not otherwise in compliance with the
provisions of this Agreement); or
(v) any event or condition shall occur or exist which,
pursuant to the terms of any Change in Control Provision, requires or
permits the holder(s) of Indebtedness of any Consolidated Company to
require that such Indebtedness be redeemed, repurchased, defeased,
prepaid or repaid, in whole or in part, or the maturity of such
Indebtedness to be accelerated in any respect.
SECTION 2. WAIVERS. In connection with the Transaction (as defined
below) the Administrative Agent and the Required Lenders hereby agree to a
one-time waiver of the provisions of:
(a) Restricted Transactions. Sections 7.01 and 7.11(i) of the Credit
Agreement to permit the incurrence of Indebtedness (in the form of senior
unsecured notes) by the Borrower pursuant to an Indenture in the form of and
substantially similar to the June 7, 2002 draft Indenture, for 9 3/4% senior
notes due 2009, between the Borrower and U.S.
Bank, National Association, as Trustee, previously delivered by the Borrower to
the Administrative Agent and the Lenders (the "Transaction"); and
(b) Mandatory Prepayment / Commitment Reduction. Sections 3.06(b)(i)
and 3.07(a) of the Credit Agreement to the extent the Borrower's Net Equity or
Debt Proceeds from the Transaction, after complying with Section 3(d) below, are
not applied in accordance with Section 3.06(b)(i); provided that the gross
proceeds to the Borrower from the Transaction are $175,000,000 or less.
SECTION 3. EFFECTIVENESS. The amendments set forth in Section 1 above
and the waivers set forth in Section 2 above shall become effective on such date
(the "Fifth Amendment Date") when the Administrative Agent shall have received
the following:
(a) This Amendment. Counterparts hereof executed by the Borrower and
the Required Lenders;
(b) Additional Security Documents. Counterparts of the Guaranty
Agreement and the Subsidiary Pledge and Security Agreement executed by Intermet
U.S. Holding, Inc. and such other documents with respect to Intermet U.S.
Holding, Inc. that are required by the Security Agreement, the Guaranty
Agreement and Section 6.10(a) of the Existing Agreement;
(c) Additional Real Estate Documents. Counterparts of amendments to the
Mortgages with respect to the real estate associated with the New River Foundry
and Columbus Machining facilities (the "Transferred Real Estate") to reflect the
transfers of title thereto from Intermet International, Inc. to Intermet U.S.
Holding, Inc. (the "Transferred Real Estate Amendments");
(d) Term Loan Payoff. Evidence satisfactory to the Administrative Agent
that the Borrower shall have paid in full all outstanding principal, interest
and other "Obligations" (as defined in the Term Loan Agreement) owed under the
Term Loan Agreement;
(e) Fees of Counsel. Evidence satisfactory to the Administrative Agent
that the Borrower shall have paid all outstanding fees and expenses of counsel
to the Administrative Agent, to the extent invoiced;
(f) Legal Opinion. An opinion of outside counsel to the Borrower in
form and substance satisfactory to the Administrative Agent; and
(g) Other Instruments or Documents. Such other instruments or documents
as the Administrative Agent or any Lender may reasonably request in connection
with this Amendment.
SECTION 4. POST-EFFECTIVENESS COVENANT. The Borrower covenants and
agrees that within 30 days of the date hereof, with respect to each real estate
title insurance policy issued in connection with the Transferred Real Estate,
the Borrower will cause to be delivered to the Collateral Agent an endorsement
to such policies, reflecting
the Transferred Real Estate Amendments and showing no exceptions to title other
than those reflected in the original title insurance polices (provided that
general survey related exceptions may be raised to the extent arising after the
date of the survey delivered in connection with the original title insurance
policy).
SECTION 5. MISCELLANEOUS.
SECTION 5.1. To induce the Agents and the Required Lenders to enter
into this Amendment, Intermet represents and warrants to the Agents and the
Lenders that: (a) the representations and warranties contained in the Credit
Documents, as amended by this Amendment, are true and correct in all material
respects as of the date hereof with the same effect as though made on the date
hereof; (b) after giving effect to this Amendment, no Default or Event of
Default exists; (c) this Amendment has been duly authorized by all necessary
corporate proceedings and duly executed and delivered by Intermet, and the
Amended Agreement and each of the other Credit Documents are the legal, valid
and binding obligations of the Credit Parties party thereto, enforceable against
such Credit Parties in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency or other similar laws of
general application affecting the enforcement of creditors' rights or by general
principles of equity; and (d) no consent, approval, authorization, order,
registration or qualification with any governmental authority, regulatory body
or securities exchange is required for, and in the absence of which would
adversely affect, the legal and valid execution and delivery or performance by
Intermet of this Amendment or the performance by Intermet of the Amended
Agreement or by any Credit Party of any other Credit Document to which it is a
party.
SECTION 5.2. This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts and each such
counterpart shall be deemed to be an original, but all such counterparts shall
together constitute one and the same Amendment.
SECTION 5.3. Except as specifically provided above, the Existing
Agreement and the other Credit Documents shall remain in full force and effect
and are hereby ratified and confirmed in all respects. 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 Agents or the
Lenders under the Existing Agreement or any of the other Credit Documents, nor
constitute a waiver or modification of any provision of any of the other Credit
Documents.
SECTION 5.4. On and after the Fifth Amendment Date, each reference in
the Existing Agreement and related documents to "Five-Year Credit Agreement,"
"this Agreement" or words of like import, shall, unless the context otherwise
requires, be deemed to refer to the Amended Agreement.
SECTION 5.5. Intermet agrees to pay on demand all reasonable costs and
expenses incurred at any time by the Administrative Agent (including the
reasonable attorney fees and expenses for the Administrative Agent) in
connection with the preparation, negotiation, execution and administration of
this Amendment and all other
instruments or documents provided for herein or delivered or to be delivered
hereunder or in connection herewith.
SECTION 5.6. This Amendment shall be binding upon and shall insure to
the benefit of the parties hereto and their respective successors and permitted
assigns as provided in the Amended Agreement.
SECTION 5.7. In case any provision in or obligation under this
Amendment or the other Credit Documents shall be invalid, illegal or
unenforceable, in whole or in part, in any jurisdiction, the validity, legality
and enforceability of the remaining provisions or obligations, or of such
provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.
SECTION 5.8. THIS AMENDMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER
AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH
PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE
OF NEW YORK).
[Signatures Follow on Next Page]
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and to be delivered in New York, New York, by their duly
authorized officers as of the day and year first above written.
INTERMET CORPORATION
By: /s/ Doretha J. Christoph
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Name: Doretha J. Christoph
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Title: Vice President
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THE BANK OF NOVA SCOTIA,
INDIVIDUALLY AND AS ADMINISTRATIVE AGENT
By: /s/ M. D. Smith
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Name: M. D. Smith
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Title: Agent Operations
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BANK ONE, MICHIGAN,
INDIVIDUALLY AND AS SYNDICATION AGENT
By:
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Name:
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Title:
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SUNTRUST BANK, INDIVIDUALLY AND
AS DOCUMENTATION AGENT
By:
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Name:
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Title:
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COMERICA BANK,
INDIVIDUALLY AND AS MANAGING AGENT
By:
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Name:
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Title:
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THE BANK OF NOVA SCOTIA,
INDIVIDUALLY AND AS ADMINISTRATIVE AGENT
By:
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Name:
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Title:
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BANK ONE, MICHIGAN,
INDIVIDUALLY AND AS SYNDICATION AGENT
By: /s/ Oliver J. Glenn, III
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Name: Oliver J. Glenn, III
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Title: First Vice President
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SUNTRUST BANK, INDIVIDUALLY AND
AS DOCUMENTATION AGENT
By:
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Name:
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Title:
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COMERICA BANK,
INDIVIDUALLY AND AS MANAGING AGENT
By:
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Name:
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Title:
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S-2 Intermet Fifth Amendment
THE BANK OF NOVA SCOTIA,
INDIVIDUALLY AND AS ADMINISTRATIVE AGENT
By:
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Name:
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Title:
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BANK ONE, MICHIGAN,
INDIVIDUALLY AND AS SYNDICATION AGENT
By:
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Name:
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Title:
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SUNTRUST BANK, INDIVIDUALLY AND
AS DOCUMENTATION AGENT
By: /s/ William C. Humphries
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Name: William C. Humphries
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Title: Director
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COMERICA BANK,
INDIVIDUALLY AND AS MANAGING AGENT
By:
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Name:
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Title:
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THE BANK OF NOVA SCOTIA,
INDIVIDUALLY AND AS ADMINISTRATIVE AGENT
By:
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Name:
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Title:
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BANK ONE, MICHIGAN,
INDIVIDUALLY AND AS SYNDICATION AGENT
By:
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Name:
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Title:
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SUNTRUST BANK, INDIVIDUALLY AND
AS DOCUMENTATION AGENT
By:
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Name:
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Title:
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COMERICA BANK,
INDIVIDUALLY AND AS MANAGING AGENT
By: /s/ Chris Stergians
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Name: Chris Stergians
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Title: Account Officer
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BANKERS TRUST COMPANY
By: /s/ Mary Jo Jolly
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Name: Mary Jo Jolly
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Title: ASSISTANT VICE PRESIDENT
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FLEET NATIONAL BANK
By:
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Name:
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Title:
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MIZUHO CORPORATE BANK, LTD.
By:
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Name:
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Title:
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KEYBANK NATIONAL ASSOCIATION
By:
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Name:
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Title:
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DG BANK DEUTSCHE
GENOSSENSCHAFTSBANK AG
By:
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Name:
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Title:
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By:
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Name:
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Title:
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BANKERS TRUST COMPANY
By:
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Name:
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Title:
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FLEET NATIONAL BANK
By:
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Name:
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Title:
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MIZUHO CORPORATE BANK, LTD.
By:
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Name:
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Title:
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KEYBANK NATIONAL ASSOCIATION
By: /s/ Marvin S. Kodish
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Name: Marvin S. Kodish
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Title: Sr. V. P.
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DG BANK DEUTSCHE
GENOSSENSCHAFTSBANK AG
By:
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Name:
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Title:
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By:
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Name:
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Title:
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BANKERS TRUST COMPANY
By:
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Name:
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Title:
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FLEET NATIONAL BANK
By:
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Name:
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Title:
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MIZUHO CORPORATE BANK, LTD.
By:
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Name:
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Title:
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KEYBANK NATIONAL ASSOCIATION
By:
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Name:
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Title:
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DS Bank AG, Deutsche Zentral-Genossenschaftebank Frankfurt am Main
formerly known as: DG BANK DEUTSCHE
GENOSSENSCHAFTSBANK AG
By: /s/ Bruce T. Ritz
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Name: Bruce T. Ritz
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Title: Vice President
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By: /s/ Nancy J. O'Conner
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Name: Nancy J. O'Conner
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Title: Vice President
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STANDARD FEDERAL BANK N.A.
By: /s/ John M. Babb
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Name: John M. Babb
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Title: Vice President
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NATIONAL CITY BANK
By:
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Name:
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Title:
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LANDESBANK SAAR GIROZENTRALE
By:
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Name:
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Title:
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By:
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Name:
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Title:
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MICHIGANNATIONALBANK
By:
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Name:
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Title:
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NATIONALCITYBANK
By: /s/ John R. DeFrancesce
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Name: John R. DeFrancesce
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Title: Senior Vice President
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LANDESBANKSAARGIROZENTRALE
By:
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Name:
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Title:
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By:
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Name:
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Title:
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Each of the undersigned hereby consents to this Amendment,
ratifies the Guaranty Agreement and agrees that the Guaranty Agreement
remains in full force and effect:
ALEXANDER CITY CASTING COMPANY, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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CAST-MATIC CORPORATION
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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COLUMBUS FOUNDRY, L.P.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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DIVERSIFIED DIEMAKERS, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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FRISBY P.M.C., INCORPORATED
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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GANTON TECHNOLOGIES INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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INTERMET HOLDING COMPANY
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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INTERMET INTERNATIONAL, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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IRONTON IRON INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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LYNCHBURG FOUNDRY COMPANY
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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NORTHERN CASTINGS CORPORATION
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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SUDBURY, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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SUDM, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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TOOL PRODUCTS, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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WAGNER CASTINGS COMPANY
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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WAGNER HAVANA, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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INTERMET U.S. HOLDING, INC.
By: /s/ Alan J. Miller
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Name: Alan J. Miller
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Title: Vice President
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