Atlantic Gulf Communities Corporation Exhibit to the June 30, 1998 Form 10-Q
Exhibit (a) (3) Letter Agreement dated July 8, 1998 modifying certain terms of
the Third Amendment to Second Amended and Restated Revolving Loan Agreement
Atlantic Gulf Communities Corporation, dated as of June 30, 1998
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July 8, 1998
Mr. Ben Silver
Assistant Vice President
Foothill Capital Corporation
11111 Santa Monica Blvd., Suite 1500
Los Angeles, CA 90025
Re: Third Amendment to Second Amended and Restated Revolving Loan Agreement
between Atlantic Gulf Communities Corporation and Foothill Capital
Corporation dated as of June 30, 1998 (the "Third Amendment")
Dear Ben:
This shall confirm that the definition of Borrowing Base, Item B in the
Third Amendment be modified in its entirety as follows:
B. With respect to each corresponding period, the amounts set forth on
the chart below (the "Borrowing Base Limits")
DATE BORROWING BASE LIMIT
June 30, 1998 through
August 1, 1998 $25,000,000.00
August 2, 1998 through
August 8, 1998 $24,150,000.00
August 9, 1998 through
August 31, 1998 $23,000,000.00
September 1, 1998 through
September 30, 1998 $20,000,000.00
October 1, 1998 through
October 31, 1998 $17,000,000.00
November 1, 1998 through
November 30, 1998 $12,500,000.00
December 1, 1998 $0.0
Page Two
Mr. Ben Silver
July 30, 1998
Notwithstanding the above chart, upon the release of the $2,500,000.00
held in escrow in connection with the prior sale of Daves Creek, the
Borrowing Base Limit shall be the amount calculated by subtracting
$2,500,000.00 from the Borrowing Base Limit in place immediately prior
to the release of the $2,500,000.00 held in escrow in connection with
the prior sale of Daves Creek, and each Borrowing Base Limit thereafter
shall be $2,500,000.00 less than the Borrowing Base Limit shown for
each corresponding period on the above chart through and including
September 30, 1998. Likewise, upon the refinancing of the West Meadows
residential project debt, the Borrowing Base Limit in place immediately
prior to the refinancing of the West Meadows residential project debt,
and each Borrowing Base Limit thereafter shall be $2,500,000.00 less
than the Borrowing Base Limit shown if such closing occurs prior to
August 1, 1998 or $1,650,000 less than the Borrowing Base Limit shown
if such closing occurs after August 1, 1998 for each corresponding
period on the above chart through and including September 30, 1998.
Notwithstanding the foregoing, the reductions to the borrowing base
from both the West Meadows residential project refinancing and Daves
Creek escrow release are permanent reductions to the borrowing base and
satisfy all required reductions through September 30, 1998.
A notice of borrowing for $900,000.00 to be advanced on Monday, August
3, 1998 is accompanying this modification. Please sign a copy of this letter
agreement and fax a copy back to my attention.
Sincerely,
John H. Fischer
agreed and accepted this ___ day
of July, 1998
FOOTHILL CAPITAL CORPORATION
BY: _____________________________
ITS:_____________________________