EXHIBIT 10.3

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) dated as of
December 12, 2011 to the Credit Agreement referenced below is by and among DST
Systems, Inc., a Delaware corporation (the “Borrower”), the Lenders identified
on the signature pages hereto and Bank of America, N.A., as Administrative Agent
(in such capacity, the “Administrative Agent”), L/C Issuer and Swing Line
Lender.

 

W I T N E S S E T H

 

WHEREAS, a $630 million credit facility has been established in favor of the
Borrower pursuant to the terms of that certain Credit Agreement dated as of
April 16, 2010 (as amended by that certain First Amendment to Credit Agreement
dated as of August 9, 2010, that certain Second Amendment to Credit Agreement
dated as of June 30, 2011 and as further amended, restated, modified or
supplemented from time to time, the “Credit Agreement”) among the Borrower, the
Lenders identified therein (the “Lenders”) and the Administrative Agent;

 

WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement
to modify certain provisions contained therein; and

 

WHEREAS, the Required Lenders have agreed to amend the Credit Agreement on the
terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

 

1.             Defined Terms.  Capitalized terms used herein but not otherwise
defined herein shall have the meanings provided to such terms in the Credit
Agreement (including as amended hereby).

 

2.             Amendment.  Subject to the satisfaction of the conditions
precedent set forth in Section 3 hereof, the Credit Agreement is hereby amended
as follows:

 

(a)           The definition of “Pro Forma Basis” in Section 1.01 is restated in
its entirety to read as follows:

 

““Pro Forma Basis” means, for purposes of calculating (utilizing the principles
set forth in Section 1.03(c)) compliance with each of the financial covenants
set forth in Section 7.11(a) and (b) in respect of a proposed transaction, that
such transaction shall be deemed to have occurred as of the first day of the
four fiscal-quarter period ending as of the most recent fiscal quarter end
preceding the date of such transaction with respect to which the Administrative
Agent has received the Required Financial Information.  As used herein,
“transaction” shall mean (a) any Disposition as referred to in Section 7.05

 

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(other than an Excluded Disposition) or (b) any Acquisition.  In connection with
any calculation of the financial covenants set forth in Section 7.11(a) and
(b) upon giving effect to a transaction on a Pro Forma Basis:

 

(i)            for purposes of any such calculation in respect of any
Disposition as referred to in Section 7.05, (A) income statement items (whether
positive or negative) attributable to the Person or Property disposed of shall
be excluded and (B) any Indebtedness which is retired in connection with such
transaction shall be excluded and deemed to have been retired as of the first
day of the applicable period; and

 

(ii)           for purposes of any such calculation in respect of any
Acquisition, (A) any Indebtedness incurred or assumed by any Consolidated Party
(including the Person or Property acquired) in connection with such transaction
and any Indebtedness of the Person or Property acquired which is not retired in
connection with such transaction (1) shall be deemed to have been incurred as of
the first day of the applicable period and (2) if such Indebtedness has a
floating or formula rate, shall have an implied rate of interest for the
applicable period for purposes of this definition determined by utilizing the
rate which is or would be in effect with respect to such Indebtedness as at the
relevant date of determination and (B) income statement items (whether positive
or negative) attributable to the Person or Property acquired shall be included
beginning as of the first day of the applicable period.”

 

(b)           Section 1.03 (c) of the Credit Agreement is restated in its
entirety to read as follows:

 

“(c)         Notwithstanding the above, the parties hereto acknowledge and agree
that, for purposes of all calculations made under the financial covenants set
forth in Section 7.11 (including without limitation for purposes of the
definitions of “Applicable Rate” and “Pro Forma Basis” set forth in
Section 1.01), (i) after consummation of any Disposition (other than an Excluded
Disposition) (A) income statement items (whether positive or negative) and
capital expenditures attributable to the Property disposed of shall be excluded
and (B) Indebtedness which is retired shall be excluded and deemed to have been
retired as of the first day of the applicable period and (ii) after consummation
of any Acquisition (A) income statement items (whether positive or negative) and
capital expenditures attributable to the Person or Property acquired shall, to
the extent not otherwise included in such income statement items for the
Consolidated Parties in accordance with GAAP or in accordance with any defined
terms set forth in Section 1.01, be included to the extent relating to any
period applicable in such calculations and (B) to the extent not retired in
connection with such Acquisition, Indebtedness of the Person or Property
acquired shall be deemed to have been incurred as of the first day of the
applicable period.”

 

3.             Conditions Precedent.  This Amendment shall become effective upon
the satisfaction of the following conditions:

 

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(a)           Execution of Counterparts of Amendment.  Receipt by the
Administrative Agent of counterparts of this Amendment duly executed by the
Borrower, the Administrative Agent and the Required Lenders; and

 

(b)           Fees and Expenses.  The payment by the Borrower to the
Administrative Agent (or its Affiliates) of all fees and reasonable expenses
relating to this Amendment which are due and payable on the date hereof
including all reasonable out of pocket costs and expenses of the Administrative
Agent in connection with the preparation, execution and delivery of this
Amendment, including, without limitation, the reasonable fees and expenses of
Moore & Van Allen PLLC, special counsel to the Administrative Agent.

 

4.             Representations and Warranties.  The Borrower hereby represents
and warrants that (a) it has the requisite corporate power and authority to
execute, deliver and perform this Amendment, (b) it is duly authorized to, and
has been authorized by all necessary corporate action to, execute, deliver and
perform this Amendment, (c) no consent, approval, authorization or order of, or
filing, registration or qualification with, any court or governmental authority
or third party is required in connection with the execution, delivery or
performance by it of this Amendment, (d) the execution, delivery and performance
by it of this Amendment do not and will not conflict with, result in a breach of
or constitute a default under the articles of incorporation, bylaws or other
organizational documents of the Borrower or any of its Subsidiaries or any
indenture or other material agreement or instrument to which any such Person is
a party or by which any of its properties may be bound or the approval of any
Governmental Authority relating to such Person except as could not reasonably be
expected to have a Material Adverse Effect, (e) the representations and
warranties contained in Article V of the Credit Agreement are true and correct
in all material respects on and as of the date hereof as though made on and as
of such date (except for those which expressly relate to an earlier date) and
(f) no Default or Event of Default exists under the Credit Agreement on and as
of the date hereof and after giving effect to this Amendment, or will occur as a
result of the transactions contemplated hereby.

 

5.             No Other Changes; Ratification.  Except as expressly modified or
waived hereby, all of the terms and provisions of the Credit Agreement
(including schedules and exhibits thereto) and the other Loan Documents shall
remain in full force and effect.  The term “this Agreement” or “Credit
Agreement” and all similar references as used in each of the Loan Documents
shall hereafter mean the Credit Agreement as amended by this Amendment.  Except
as herein specifically agreed, the Credit Agreement is hereby ratified and
confirmed and shall remain in full force and effect according to its terms. 
This Amendment shall be effective only to the extent specifically set forth
herein and shall not (i) be construed as a waiver of any breach or default other
than as specifically waived herein nor as a waiver of any breach or default of
which the Lenders have not been informed by the Borrower, (ii) affect the right
of the Lenders to demand compliance by the Borrower with all terms and
conditions of the Credit Agreement in all other instances, (iii) be deemed a
waiver of any transaction or future action on the part of the Borrower requiring
the Lenders’ or the Required Lenders’ consent or approval under the Credit
Agreement, or (iv) be deemed or construed to be a wavier or release of, or a
limitation upon, the Administrative Agent’s or the Lenders’ exercise of any
rights or remedies under the Credit Agreement or any other document executed or
delivered in connection therewith, whether arising

 

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as a consequence of any Event of Default which may now exist or otherwise, all
such rights and remedies hereby being expressly reserved.

 

6.             Counterparts; Facsimile/Email.  This Amendment may be executed in
any number of counterparts, each of which when so executed and delivered shall
be deemed an original and it shall not be necessary in making proof of this
Amendment to produce or account for more than one such counterpart.  Delivery of
an executed counterpart of this Amendment by telecopy or electronic mail by any
party hereto shall be effective as such party’s original executed counterpart.

 

7.             Governing Law.  This Amendment shall be deemed to be a contract
made under, and for all purposes shall be construed in accordance with, the laws
of the State of New York.

 

8.             Entirety.  This Amendment and the other Loan Documents embody the
entire agreement between the parties and supersede all prior agreements and
understandings, if any, relating to the subject matter hereof.  These Loan
Documents represent the final agreement between the parties and may not be
contradicted by evidence of prior, contemporaneous or subsequent oral agreements
of the parties.  There are no oral agreements between the parties.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this
Amendment to be duly executed and delivered as of the date first above written.

 

BORROWER:

DST SYSTEMS, INC.,

 

a Delaware corporation

 

 

 

 

 

By:

/s/Kenneth V. Hager

 

Name:

Kenneth V. Hager

 

Titile:

Vice President, Chief Financial Officer and Treasurer

 

 

 

 

[signature pages continue]

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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ADMINISTRATIVE AGENT

 

AND LENDERS:

BANK OF AMERICA, N.A.,

 

as Administrative Agent

 

 

 

 

 

By:

/s/Aileen Supeña

 

Name:

Aileen Supeña

 

Title:

Director

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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BANK OF AMERICA, N.A.,

 

as a Lender, L/C Issuer and Swing Line Lender

 

 

 

 

 

 

 

By:

/s/Aileen Supeña

 

Name:

Aileen Supeña

 

Title:

Director

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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BANK OF BLUE VALLEY,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Kevin Klamm

 

Name:

Kevin Klamm

 

Title:

Assistant Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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BANK OF CHINA, LOS ANGELES BRANCH,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Feng Chang

 

Name:

Feng Chang

 

Title:

FVP and Branch Manager

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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BANK OF THE WEST,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Roger Lumley

 

Name:

Roger Lumley

 

Title:

Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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COMMERCE BANK,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/David Enslen

 

Name:

David Enslen

 

Title:

Senior Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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COMPASS BANK,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Jay S. Tweed

 

Name:

Jay S. Tweed

 

Title:

SVP

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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JPMORGAN CHASE BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Gregory T. Martin

 

Name:

Gregory T. Martin

 

Title:

Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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LLOYDS TSB BANK PLC,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Julia R. Franklin

 

Name:

Julia R. Franklin

 

Title:

Vice President

 

 

 

 

By:

/s/Dennis McClellan

 

Name:

Dennis McClellan

 

Title:

Assistant Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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SUMITOMO MITSUI BANKING CORPORATION,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/David W. Kee

 

Name:

David W. Kee

 

Title:

Managing Director

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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UMB BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Douglas F. Page

 

Name:

Douglas F. Page

 

Title:

Executive Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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U.S. BANK NATIONAL ASSOCIATION,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Magnus McDowell

 

Name:

Magnus McDowell

 

Title:

Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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WELLS FARGO BANK, N.A.,

 

as a Lender

 

 

 

 

 

 

 

By:

/s/Adam C. Otte

 

Name:

Adam C. Otte

 

Title:

Vice President

 

DST Systems, Inc.

2010 Credit Agreement

Third Amendment

 

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