Exhibit 10.7

 

AMENDMENT NO. 2

 

to that certain

 

THIRD AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

 

 

This AMENDMENT NO. 2 (this “Amendment”), dated as of August 15, 2014, is by and
among CAI INTERNATIONAL, INC., a Delaware corporation (“CAI”), Container
Applications Limited, a corporation organized under the laws of Barbados (“CAL”
and, together with CAI, the “Borrowers”, and each, individually, a “Borrower”),
BANK OF AMERICA, N.A., (“Bank of America”) and the other lending institutions
from time to time party to the Credit Agreement referred to below (collectively,
the “Lenders”), Bank of America, as administrative agent for itself and the
other Lenders (in such capacity, the “Administrative Agent”), MERRILL LYNCH,
PIERCE, FENNER & SMITH INCORPORATED,  UNION BANK, N.A. and WELLS FARGO BANK,
N.A., as syndication agents, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,
 UNION BANK, N.A. and WELLS FARGO SECURITIES, LLC, as joint lead arrangers and
book managers, and BANK OF MONTREAL (CHICAGO BRANCH),  JPMORGAN CHASE BANK, N.A.
and SANTANDER BANK, N.A. as co-agents.  Capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Credit
Agreement referred to below.

 

WHEREAS, the Borrowers, the Lenders and the Administrative Agent are parties to
that certain Third Amended and Restated Revolving Credit Agreement, dated as of
March 15, 2013 (as amended by Amendment No. 1, dated as of October 1, 2013, and
as may be further amended, restated, amended and restated, supplemented and
otherwise in effect from time to time, the “Credit Agreement”), pursuant to
which the Lenders, upon certain terms and conditions, have agreed to make loans
and otherwise extend credit to the Borrowers; and

WHEREAS, the Borrowers, the Administrative Agent and the Lenders have agreed to
amend certain of the terms and provisions of the Credit Agreement as set forth
herein subject to the conditions set forth below;

 

NOW THEREFORE, in consideration of the mutual agreements contained in the Credit
Agreement and herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby
agree as follows:

 

§1. Amendment to Credit Agreement.  Subject to the satisfaction of the
conditions precedent set forth in §3 below, the Credit Agreement is hereby
amended by deleting §9.4 of the Credit Agreement in its entirety and
substituting the following new §9.4 in lieu thereof: 

9.4Restricted Payments.  Neither any Borrower nor any of its Subsidiaries will
make any Restricted Payments except that, so long as no Default or Event of
Default then exists or would result from such payment, CAI may make
Distributions (a) at any time the Total Leverage Ratio, as of the date of such
Distribution on a pro forma basis after giving effect to such Distribution, is
less than 2.00:1.00 or (b) in an aggregate amount in any fiscal year not to
exceed 100% of Consolidated Net Income for the most recently ended fiscal year
of CAI at any time the Total Leverage Ratio, as of the date of such Distribution
on a pro forma basis after giving effect to such Distribution, is equal to or
greater than 2.00:1.00 and less than 3.50:1.00.    

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§2. Representations and Warranties.  As of the Amendment Effective Date (as
defined below), CAI (for itself and each of its Subsidiaries) and CAL (for
itself) represents and warrants to the Lenders and the Administrative Agent as
follows:

(a)Representations and Warranties in Credit Agreement.  The representations and
warranties of the Borrowers contained in the Credit Agreement were true and
correct in all material respects when made, and continue to be true and correct
on such Amendment Effective Date.

(b)Authority,  Etc.  The execution and delivery by each of the Borrowers of this
Amendment and the performance by each of the Borrowers of all of its respective
agreements and obligations of this Amendment and the other documents delivered
in connection therewith (collectively, the “Amendment Documents”), the Credit
Agreement as amended hereby and the other Loan Documents (i) are within the
corporate or company authority of such Borrower, (ii) have been duly authorized
by all necessary corporate or company proceedings by such Borrower, (iii) do not
conflict with or result in any breach or contravention of any provision of law,
statute, rule or regulation to which such Borrower is subject or any judgment,
order, writ, injunction, license or permit applicable to such Borrower, (iv) do
not conflict with any provision of the Governing Documents of, or any agreement
or other instrument binding upon, such Borrower, and (v) do not require the
approval or consent of, or filing with, any Person other than those already
obtained.

(c)Enforceability of Obligations. The Amendment Documents, the Credit Agreement
as amended hereby, and the other Loan Documents constitute the legal, valid and
binding obligations of such Borrower, enforceable against such Borrower in
accordance with their respective terms. 

(d)No Default.  Immediately after giving effect to this Amendment, no Default or
Event of Default exists under the Credit Agreement or any other Loan Document.

§3. Conditions to Effectiveness.  The amendments provided for in §1 of this
Amendment shall take effect upon the receipt by the Administrative Agent of a
counterpart signature page to this Amendment, duly executed and delivered by
each of the Borrowers, the Required Lenders and the Administrative Agent (the
“Amendment Effective Date”).

§4. Satisfaction of Conditions.  Without limiting the generality of the
foregoing §3, for purposes of determining compliance with the conditions
specified in §3, each Lender that has signed this Amendment shall be deemed to
have consented to, approved or accepted, or to be satisfied with, each document
or other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the date hereof specifying its
objection thereto.

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§5. Miscellaneous Provisions.  This Amendment shall constitute one of the Loan
Documents referred to in the Credit Agreement.  Except as otherwise expressly
provided by this Amendment, all of the terms, conditions and provisions of the
Credit Agreement shall remain the same.  It is declared and agreed by each of
the parties hereto that the Credit Agreement, as amended hereby, shall continue
in full force and effect, and that this Amendment and the Credit Agreement shall
be read and construed as one instrument.  Nothing contained in this Amendment
shall be construed to imply a willingness on the part of the Lenders or the
Administrative Agent to grant any similar or other future amendment of any of
the terms and conditions of the Credit Agreement or the other Loan Documents or
shall in any way prejudice, impair or effect any rights or remedies of the
Lenders and the Administrative Agent under the Credit Agreement or the other
Loan Documents.  THIS AMENDMENT SHALL BE CONSTRUED ACCORDING TO AND GOVERNED BY
THE LAWS OF THE STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF SAID STATE (EXCLUDING THE LAWS
APPLICABLE TO CONFLICTS OR CHOICE OF LAW (OTHER THAN THE NEW YORK GENERAL
OBLIGATIONS LAW §5-1401)).  This Amendment may be executed in any number of
counterparts, but all such counterparts shall together constitute but one
instrument.  Delivery of an executed signature page of this Amendment by
facsimile or electronic transmission shall be effective as delivery of a
manually executed counterpart thereof.  In making proof of this Amendment it
shall not be necessary to produce or account for more than one counterpart
signed by each party hereto by and against which enforcement hereof is
sought.  Headings or captions used in this Amendment are for convenience of
reference only and shall not define or limit the provisions hereof.  The
Borrowers hereby agree to pay to the Administrative Agent on demand all
reasonable costs and expenses incurred or sustained by the Administrative Agent
in connection with the preparation of this Amendment (including reasonable legal
fees and disbursements of the Administrative Agent’s Special Counsel). 

[Remainder of this page intentionally left blank.]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment as an
agreement as of the date first written above.

 

 

 

 

 

CAI INTERNATIONAL, INC.

 

 

 

 

 

By:

/s/ Timothy B. Page

 

 

Name:  Timothy B. Page

 

 

Title:  Chief Financial Officer

 

 

 

 

 

 

 

 

Container Applications Limited

 

 

 

 

 

By:

/s/ Timothy B. Page

 

 

Name:  Timothy B. Page

 

 

Title:  Director

 

 

 

 

 

 

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Lenders and Administrative Agent:

 

 

 

 

 

 

BANK OF AMERICA, N.A., as Administrative Agent

 

 

 

 

 

By:

/s/ Anthony W. Kell

 

 

Name:  Anthony W. Kell

 

 

Title:  Vice President

 

 

 

 

 

 

 

 

BANK OF AMERICA, N.A., as a Lender

Swing Line Lender and L/C Issuer

 

 

 

 

 

By:

/s/ Malie Douglas

 

 

Name:  Malie Douglas

 

 

Title:  Sr. Vice President

 

 

 

 

 

 

 

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MUFG Union Bank, N.A., as a Lender

 

 

 

 

 

By:

/s/ Henry G. Montgomery

 

 

Name:  Henry G. Montgomery

 

 

Title:  Director

 

 

 

 

 

 

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Wells Fargo Bank, National Association, as a Lender

 

 

 

 

 

By:

/s/ Greg Williamson

 

 

Name:  Greg Williamson

 

 

Title:  Vice President

 

 

 

 

 

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JPMORGAN CHASE BANK, NA, as a Lender

 

 

 

 

 

By:

/s/ Robert J. Hurley

 

 

Name:  Robert J. Hurley

 

 

Title:  Division Manager

 

 

 

 

 

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BANK OF MONTREAL (CHICAGO BRANCH), as a Lender

 

 

 

 

 

By:

/s/ Bob Bomben

 

 

Name:  Bob Bomben

 

 

Title:  Director

 

 

 

 

 

 

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SANTANDER BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ William Maag

 

 

Name:  William Maag

 

 

Title:  Managing Director

 

 

 

 

 

 

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COMPASS BANK, as a Lender

 

 

 

 

 

By:

/s/ Volkan Salar

 

 

Name:  Volkan Salar

 

 

Title:  Sr. Vice President

 

 

 

 

 

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DBS BANK LTD., LOS ANGELES AGENCY, as a Lender

 

 

 

 

 

By:

/s/ James McWalters

 

 

Name:  James McWalters

 

 

Title:  General Manager

 

 

 

 

 

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California Bank & Trust, as a Lender

 

 

 

 

 

By:

/s/ Thomas C. Paton, Jr.

 

 

Name:  Thomas C. Paton, Jr.

 

 

Title:  Sr. Vice President & Manager

 

 

 

 

 

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HSBC BANK USA, N.A., as a Lender

 

 

 

 

 

By:

/s/ Tuan Nguyen

 

 

Name:  Tuan Nguyen

 

 

Title:  Vice President

 

 

 

 

 

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SUNTRUST BANK, as a Lender

 

 

 

 

 

By:

/s/ Chris Hursey

 

 

Name:  Chris Hursey

 

 

Title:  Director

 

 

 

 

 

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CITY NATIONAL BANK, a national banking association, as a Lender

 

 

 

 

 

By:

/s/ Jeanine Smith

 

 

Name:  Jeanine Smith

 

 

Title:  Vice President

 

 

 

 

 

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COLUMBIA STATE BANK, as a Lender

 

 

 

 

 

By:

/s/ Kevin N. Meabon

 

 

Name:  Kevin N. Meabon

 

 

Title:  Sr. Vice President

 

 

 

 

 

 

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AMERICAN SAVINGS BANK, F.S.B., as a Lender

 

 

 

 

 

By:

/s/ Rian DuBach

 

 

Name:  Rian DuBach

 

 

Title:  Vice President

 

 

 

 

 

 

 

 

 

 

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