EXHIBIT 10.3
SECOND AMENDMENT TO CREDIT AGREEMENT
THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as of
April 16, 2004, is by and among MediaNews Group, Inc. (the "Borrower"), the
guarantors identified on the signature pages hereto (the "Guarantors"), the
Guarantors parties hereto, the Lenders parties hereto, and Bank of America,
N.A., as administrative agent for the Lenders (in such capacity, the
"Administrative Agent").
RECITALS
1. The Borrower, the Guarantors, the Lenders, the Administrative Agent,
the Syndication Agent and the Documentation Agent entered into that certain
Credit Agreement dated as of December 30, 2003, as amended pursuant a First
Amendment to Credit Agreement dated as of January 20, 2004 (as previously
amended, the "Existing Credit Agreement"). Capitalized terms used herein which
are not defined herein and which are defined in the Existing Credit Agreement
shall have the same meanings as therein defined.
2. The Borrower has requested that certain provisions of the Existing
Credit Agreement be amended.
3. The parties have agreed to amend the Existing Credit Agreement as set
forth herein.
NOW, THEREFORE, in consideration of the agreements hereinafter set forth,
and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto agree as follows:
AGREEMENT
1. Amendments to Credit Agreement.
(A) The definition of "DNA" set forth in Section 1.01 of the Existing
Credit Agreement is amended in its entirety to read as follows:
"DNA" means Denver Newspaper Agency LLP, a Delaware limited
liability partnership.
(B) A new clause (ix) is hereby added to Section 7.01(f) of the Existing
Credit Agreement to read as follows:
(ix) to the extent the Borrower has knowledge thereof, the
occurrence of any event or condition as a consequence of which the ability
of any Limited Guarantor, Restricted Subsidiary that is not a Guarantor or
JOA (A) to declare and pay dividends or make any other distributions on
shares of its Capital Stock is limited for any period of time or (B) to
pay any obligation owed by it to the Borrower or any Restricted Subsidiary
is limited for any period of time pursuant to any covenant or restriction
described in clauses (1)(y) of the exception to clause (ii) of Section
8.22(a).
(C) Section 8.22 of the Existing Credit Agreement is amended in its
entirety to read as follows:
8.22 ADDITIONAL LIMITATIONS ON RESTRICTED SUBSIDIARIES OR JOAS THAT
ARE NOT GUARANTORS.
(a) In respect of Limited Guarantors, Restricted Subsidiaries that
are not Guarantors and JOAs, (i) permit (A) the aggregate outstanding
amount of all Indebtedness of such Persons required to be consolidated
with the Borrower and its Restricted Subsidiaries in accordance with
Section 1.03(d) (excluding Indebtedness in respect of the Denver Synthetic
Lease and any Intercompany Debt) to exceed $75,000,000 or (B) the
aggregate outstanding amount of all Indebtedness attributable to any one
of such Person and which is required to be consolidated with the Borrower
and its Restricted Subsidiaries in accordance with Section 1.03(d)
(excluding Indebtedness in respect of the Denver Synthetic Lease and any
Intercompany Debt) to exceed $50,000,000, or (ii) permit to exist, at any
time, any consensual restriction limiting the ability (whether by
covenant, event of default, subordination or otherwise) of any such Person
to (A) pay dividends or make any other distributions on shares of its
Capital Stock or (B) pay any obligation owed to the Borrower or any
Restricted Subsidiary or (C) create any Lien upon its property or assets
whether now owned or hereafter acquired or upon any income or profits
therefrom, except that this clause (ii) shall not apply to (1) any
covenant or restriction contained in any Contract evidencing or providing
for the creation of or concerning Indebtedness of any such Person
permitted to be outstanding hereunder and limiting the ability of such
Person (x) to pay dividends or make any other distributions on shares of
its Capital Stock during the existence of any default or event of default
with respect to such Indebtedness, (y) to pay any obligation owed to the
Borrower or any Restricted Subsidiary during the existence of any default
or event of default with respect to such Indebtedness or (z) to create any
Lien upon its property or assets whether now owned or hereafter acquired
or upon any income or profits therefrom or (2) to restrictions of the
kinds described in the definitions of "Permitted Liens" or "Permitted
Restrictive Covenants" set forth in Section 1.01 or described in Schedule
8.22.
(b) Permit any JOA to fail to make such corporate, partnership or
limited liability company distributions or otherwise transfer its cash and
cash equivalents to the Borrower or any of the Restricted Subsidiaries, so
that, as a result of such distributions and transfers, such JOA (and its
Subsidiaries) shall own or hold cash and cash equivalents not in excess of
$10,000,000 as of the end of any fiscal month.
2. Conditions Precedent. This Amendment shall become effective upon
receipt by the Administrative Agent of counterparts of this Amendment, which
collectively shall have been duly executed on behalf of each of the Borrower,
the Guarantors and the Required Lenders.
3. Representations and Warranties. The Borrower hereby represents and
warrants to the Administrative Agent and the Lenders that, after giving effect
to this Amendment, (a) the representations and warranties set forth in Article
VI of the Credit Agreement are, subject to the
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limitations set forth therein, true and correct in all material respects as of
the date hereof (except for those which expressly relate to an earlier date) and
(b) no Default or Event of Default exists under the Credit Agreement or any of
the other Loan Documents.
4. Reaffirmation of Obligations. Each Loan Party hereby ratifies the
Credit Agreement and acknowledges and reaffirms (a) that it is bound by all
terms of the Credit Agreement applicable to it and (b) that it is responsible
for the observance and full performance of its respective Obligations.
5. Instrument Pursuant to Credit Agreement. This Amendment is a Loan
Document executed pursuant to the Credit Agreement and shall (unless otherwise
expressly indicated therein) be construed, administered and applied in
accordance with the terms and provisions of hereof, all references in the Loan
Documents to the "Credit Agreement" shall be deemed to refer to the Credit
Agreement as amended by this Amendment.
6. Counterparts/Telecopy. This Amendment may be executed by the parties
hereto in several counterparts, each of which shall be deemed to be an original
and all of which shall constitute together but one and the same agreement. This
Amendment may be transmitted and/or signed by facsimile. The effectiveness of
any such documents and signatures shall, subject to applicable Law, have the
same force and effect as manually signed originals and shall be binding on all
Loan Parties, the Administrative Agent and the Lenders. The Administrative Agent
may also require that any such documents and signatures be confirmed by a
manually signed original thereof; provided, however, that the failure to request
or deliver the same shall not limit the effectiveness of any facsimile document
or signature.
7. Governing Law. THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE
UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK.
8. Successors and Assigns. This Amendment shall be binding upon and inure
to the benefit of the parties hereto and their respective successors and
assigns.
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IN WITNESS WHEREOF the Borrower, the Guarantors and the Required Lenders
have caused this Amendment to be duly executed on the date first above written.
BORROWER: MEDIANEWS GROUP, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
GUARANTORS: ALASKA BROADCASTING COMPANY, INC.,
an Alaska corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
CHARLESTON PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
CONNECTICUT NEWSPAPERS PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
THE DENVER POST CORPORATION,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
EASTERN COLORADO PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
EASTERN COLORADO PRODUCTION FACILITIES, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
FITCHBURG INTERNET MEDIA PUBLISHING COMPANY, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
FITCHBURG PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
GRAHAM NEWSPAPERS, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
HANOVER PUBLISHING CO.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
KEARNS-TRIBUNE, LLC,
a Delaware limited liability company
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
LONG BEACH PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
LOS ANGELES DAILY NEWS PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
LOWELL INTERNET MEDIA PUBLISHING COMPANY, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
LOWELL PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
MEDIANEWS GROUP INTERACTIVE, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
NEW ENGLAND INTERNET MEDIA PUBLISHING, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
NEW ENGLAND NEWSPAPERS, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
NEW MEXICO-TEXAS MEDIANEWS GROUP
INTERACTIVE, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
NEW MEXICO-TEXAS MEDIANEWS LLC,
a Delaware limited liability company
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
NIMITZ PAPER COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
NORTHWEST NEW MEXICO PUBLISHING COMPANY,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
RATE WATCH, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
WEST COAST MEDIANEWS LLC,
a Delaware limited liability company
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
YORK NEWSPAPERS, INC.,
a Delaware corporation
By: /s/ Ronald A. Mayo
-----------------------------------------------
Name: Ronald A. Mayo
Title: Vice President & Chief Financial Officer
ADMINISTRATIVE
AGENT: BANK OF AMERICA, N.A.
By: /s/ Derrick C. Bell
-----------------------------------------------
Name: Derrick C. Bell
Title: Principal
LENDERS: WACHOVIA BANK, N.A.
By: /s/ Mark Cook
-----------------------------------------------
Name: Mark Cook
Title: Director
SunTrust Bank, Inc.
By: /s/ Kip Hurd
-----------------------------------------------
Name: Kip Hurd
Title: Vice President
DEUTSCHE BANK TRUST COMPANY AMERICAS
By: /s/ Susan L. LeFevre
-----------------------------------------------
Name: Susan L. LeFevre
Title: Director
KEYBANK NATIONAL ASSOCIATION
By: /s/ Laura E. Thozeski
-----------------------------------------------
Name: Laura E. Thozeski
Title: Assistant Vice President
UNION BANK OF CALIFORNIA, N.A.
By: /s/ Lena Bryant
-----------------------------------------------
Name: Lena Bryant
Title: Senior Vice President
SENIOR DEBT PORTFOLIO
By: Boston Management and Research
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
EATON VANCE INSTITUTIONAL SENIOR LOAN FUND
By: Eaton Vance Management
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
EATON VANCE CDO III, LTD.
By: Eaton Vance Management
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
CONSTANTINUS EATON VANCE CDO V, LTD.
By: Eaton Vance Management
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
EATON VANCE CDO VI LTD.
By: Eaton Vance Management
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
GRAYSON & CO
By: Boston Management And Research
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
EATON VANCE
VT FLOATING-RATE INCOME FUND
By: Eaton Vance Management
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
TOLLI & CO.
By: Eaton Vance Management
as Investment Advisor
By: /s/ Michael B. Botthof
-----------------------------------------------
Name: Michael B. Botthof
Title: Vice President
APEX (IDM) DCO I, LTD.
ELC (CAYMAN) LTD. 1999-II
ELC (CAYMAN) LTD. 1999-III
ELC (CAYMAN) LTD. 2000-I
TRYON CLO LTD. 2000-I
By: David L. Babson & Company Inc.
as Collateral Manager
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title: Managing Director
BABSON CLO LTD. 2003-I
By: David L. Babson & Company Inc.
as Collateral Manager
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title: Managing Director
C.M. LIFE INSURANCE COMPANY
By: David L. Babson & Company Inc.
as Investment Sub-Adviser
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title: Managing Director
MAPLEWOOD (CAYMAN) LIMITED
By: David L. Babson & Company Inc. under
delegated authority from Massachusetts Mutual Life
Insurance Company as Investment Manager
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title: Managing Director
BILL & MELINDA GATES FOUNDATION
By: David L. Babson & Company
as Investment Adviser
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title: Managing Director
SEABOARD CLO 2000 LTD.
By: David L. Babson & Company Inc.
as Collateral Manager
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title: Managing Director
SUFFIELD CLO, LIMITED
By: David L. Babson & Company Inc.
as Collateral Manager
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title:Managing Director
SIMSBURY CLO, LIMITED
By: David L. Babson & Company Inc. under
delegated authority from Massachusetts Mutual Life
Insurance Company as Collateral Manager
By: /s/ Adrienne Musgnug
-----------------------------------------------
Name: Adrienne Musgnug
Title: Managing Director
U.S. BANK NATIONAL ASSOCIATION
By: /s/ Colleen B. McEvoy
-----------------------------------------------
Name: Colleen B. McEvoy
Title: Vice President
THE BANK OF NEW YORK
By: /s/ Kristen Talaber
-----------------------------------------------
Name: Kristen Talaber
Title: Vice President
SIERRA CLO I
By: /s/ John M. Casparian
-----------------------------------------------
Name: John M. Casparian
Title: Chief Operating Officer
Centre Pacific Manager
LASALLE BANK N.A.
By: /s/ Nate Pahner
-----------------------------------------------
Name: Nate Pahner
Title: Loan Officer
TORONTO DOMINION (NEW YORK), INC.
By: /s/ Gwen Zirkle
-----------------------------------------------
Name: Gwen Zirkle
Title: Vice President
BANK OF AMERICA, N.A.
By: /s/ Derrick C. Bell
-----------------------------------------------
Name: Derrick C. Bell
Title: Principal
FIRST TRUST/FOUR CORNERS SENIOR FLOATING RATE
INCOME FUND
By: Four Corners Capital Management LLC
as Collateral Manager
By: /s/ Steven Columbaro
-----------------------------------------------
Name: Steven Columbaro
Title: Vice President
SECURITY BENEFIT LIFE INSURANCE COMPANY
By: Four Corners Capital Management LLC
as Collateral Manager
By: /s/ Steven Columbaro
-----------------------------------------------
Name: Steven Columbaro
Title: Vice President
FOXE BASIN CLO 2003, LTD.
By: Royal Bank of Canada
as Collateral Manager
By: /s/ Melissa Marano
-----------------------------------------------
Name: Melissa Marano
Title: Authorized Signatory
HAMILTON CDO, LTD.
By: Stanfield Capital Partners LLC
as its Collateral Manager
By: /s/ Christopher E. Jansen
-----------------------------------------------
Name: Christopher E. Jansen
Title: Managing Partner
SANFIELD QUATTRO CLO, LTD.
By: Stanfield Capital Partners LLC
as its Collateral Manager
By: /s/ Christopher E. Jansen
-----------------------------------------------
Name: Christopher E. Jansen
Title: Managing Partner
SANFIELD/RMF TRANSATLANTIC CDO LTD.
By: Stanfield Capital Partners LLC
as its Collateral Manager
By: /s/ Christopher E. Jansen
-----------------------------------------------
Name: Christopher E. Jansen
Title: Managing Partner
APEX (TRIMARAN) CDO I, LTD.
By: Trimaran Advisors, L.L.C.
By: /s/ David M. Millison
-----------------------------------------------
Name: David M. Millison
Title: Managing Director
BY: CALLIDUS DEBT PARTNERS CLO FUND II, LTD.
By: Its Collateral Manager, Callidus Capital
Management, LLC
By: /s/ Mavis Taintor
-----------------------------------------------
Name: Mavis Taintor
Title: Managing Director
COLUMBIA FLOATING RATE LIMITED LIABILITY COMPANY
By: Columbia Management Advisors, Inc.,
as Advisor
By: /s/ Brian W. Good
-----------------------------------------------
Name: Brian W. Good
Title: Senior Vice President & Portfolio Manager
COLUMBIA FLOATING RATE ADVANTAGE FUND
By: Columbia Management Advisors, Inc., as Advisor
By: /s/ Brian W. Good
-----------------------------------------------
Name: Brian W. Good
Title: Senior Vice President & Portfolio Manager
CREDIT LYONNAIS NEW YORK BRANCH
By: /s/ Attila Koc
-----------------------------------------------
Name: Attila Koc
Title: Senior Vice President& Portfolio Manager
SANKATY ADVISORS, LLC as Collateral Manager for A
VERY POINT CLO, LTD., as Term Lender
By: /s/ Diane Exter
-----------------------------------------------
Name: Diane Exter
Title: Managing Director/Portfolio Manager
SANKATY ADVISORS, LLC as Collateral Manager for
CASTLE HILL II - INGOTS, LTD., as Term Lender
By: /s/ Diane Exter
-----------------------------------------------
Name: Diane Exter
Title: Managing Director/Portfolio Manager
SANKATY ADVISORS, LLC as Collateral Manager for
CASTLE HILL III CLO, LIMITED, as Term Lender
By: /s/ Diane Exter
-----------------------------------------------
Name: Diane Exter
Title: Managing Director/Portfolio Manager
SEMINOLE FUNDING LLC
By: /s/ Ann E. Morris
-----------------------------------------------
Name: Ann E. Morris
Title: Assistant Vice President
WINGED FOOT FUNDING TRUST
By: /s/ Ann E. Morris
-----------------------------------------------
Name: Ann E. Morris
Title: Authorized Agent
JUPITER LOAN FUNDING LLC
By: /s/ Ann E. Morris
-----------------------------------------------
Name: Ann E. Morris
Title: Assistant Vice President
GENERAL ELECTRIC CAPITAL CORPORATION
By: /s/ Robert M. Kadlick
-----------------------------------------------
Name: Robert M. Kadlick
Title: Duly Authorized Signatory
KZH PONDVIEW LLC
By: /s/ Dorian Herrera
-----------------------------------------------
Name: Dorian Herrera
Title: Authorized Agent
FRANKLIN FLOATING RATE TRUST
By: /s/ Richard Hsu
-----------------------------------------------
Name: Richard Hsu
Title: Vice President
FRANKLIN FLOATING RATE MASTER SERIES
By: /s/ Richard Hsu
-----------------------------------------------
Name: Richard Hsu
Title: Vice President
FRANKLIN FLOATING RATE DAILY ACCESS FUND
By: /s/ Richard Hsu
-----------------------------------------------
Name: Richard Hsu
Title: Vice President
FRANKLIN TEMPLETON LIMITED DURATION FUND
By: /s/ Richard Hsu
-----------------------------------------------
Name: Richard Hsu
Title: Vice President
FRANKLIN CLO II, LTD.
By: /s/ Richard Hsu
-----------------------------------------------
Name: Richard Hsu
Title: Vice President
FRANKLIN CLO III, LTD.
By: /s/ Richard Hsu
-----------------------------------------------
Name: Richard Hsu
Title: Vice President
WELLS FARGO BANK, N.A.
By: /s/ Catherine M. Jones
-----------------------------------------------
Name: Catherine M. Jones
Title: Vice President