Exhibit 10.4

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

This FIRST AMENDMENT TO CREDIT AGREEMENT (“Amendment”) dated as of June 16,
2010, is made by and among TRIUMPH GROUP, INC., a Delaware corporation (“TGI”);
PNC BANK, NATIONAL ASSOCIATION, a national banking association as Administrative
Agent for the Banks under the Credit Agreement referred to herein (hereinafter
referred to in such capacity as the “Administrative Agent”); and the BANKS party
hereto (the “Consenting Banks”).

 

Reference is made to the Credit Agreement dated as of May 10, 2010, by and among
the Borrowers, the Guarantors, the Banks, the Administrative Agent and the other
Agents party thereto (the “Credit Agreement”).  (Capitalized terms used herein
and not otherwise defined shall have the meanings provided for in the Credit
Agreement).

 

The Borrowers, the Guarantors, the Consenting Banks and the Administrative Agent
have agreed that the Credit Agreement be amended as provided herein, effective
as of the date hereof.

 

NOW, THEREFORE, in consideration of the foregoing and for other consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto,
intending to be legally bound, hereby agree as follows:

 

1.             Amendments to Credit Agreement.

 

(a)           Section 1.1 [Certain Definitions] of the Credit Agreement is
hereby amended to add the following new definitions:

 

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“BBH Obligations shall mean the obligations of TGI to Brown Brothers Harriman &
Co. arising under the IDB Guaranty.”

 

“Chatsworth Property shall mean that certain land and improvements thereon
commonly known as 9301 Mason Avenue, Chatsworth, Los Angeles County, CA 91311.”

 

“Collateral Agency Agreement shall mean the Collateral Agency Agreement dated as
of June 16, 2010, by and among the Loan Parties, Royal Bank of Canada, Brown
Brothers Harriman & Co. and the Administrative Agent.”

 

“IDB Guaranty shall mean the Amended and Restated Guaranty and Suretyship
Agreement, dated as of April 18, 2008, among TGI and Brown Brothers Harriman &
Co., as amended from time to time (including in connection with the Acquisition)
provided that the principal amount of indebtedness guaranteed thereunder shall
not exceed in the aggregate $10,800,000.00.”

 

“Indiana Financing Agreement shall mean the Financing Agreement dated as of
November 29, 2005, by and among The Triumph Group Operations, Inc., City of
Shelbyville, Indiana and Brown Brothers Harriman & Co., as amended from time to
time (including in connection with the Acquisition.)”

 

“Pennsylvania Financing Agreement shall mean Financing Agreement, dated
April 18, 2008, by and among Triumph Controls, LLC, Montgomery County Industrial
Development Authority and Brown Brothers Harriman & Co., as amended from time to
time (including in connection with the Acquisition.)”

 

“Specified IDB Obligations shall mean the Indebtedness and related obligations
of The Triumph Group Operations, Inc., Triumph Controls, LLC and TGI arising
pursuant to the Indiana Financing Agreement, the Pennsylvania Financing
Agreement and the IDB Guaranty, respectively provided that in no event shall the
aggregate principal amount of Specified IDB Obligations exceed $10,800,000.00.”

 

(b)           Section 1.1 [Certain Definitions] of the Credit Agreement is
hereby amended to amend and restate the following definitions:

 

“Bank-Provided Hedge” shall mean an Interest Rate Hedge or other hedging
transaction which is provided by any Bank or any Affiliate thereof,  and meets
the following requirements: such Interest Rage Hedge or other hedging
transaction (i) is documented in a standard International Swap Dealer
Association agreement, (ii) provides for the method of calculating the
reimbursable amount of the provider’s credit exposure in a reasonable and
customary manner, and (iii) is entered into for hedging (rather than
speculative) purposes. The liabilities of any Borrower or any Guarantor to the
provider of any Bank-Provided Hedge (the “Hedge Liabilities”) shall be
“Obligations” hereunder, guaranteed obligations under the Guarantee and
Collateral Agreement and otherwise treated as Obligations for purposes of each
of

 

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the other Loan Documents. The Liens securing the Hedge Liabilities shall be pari
passu with the Liens securing all other Obligations under this Agreement and the
other Loan Documents.”

 

“Prior Security Interest shall mean a valid and enforceable perfected
first-priority security interest in the Collateral; provided that (i) the Vought
Term Loan Obligations (and any Permitted Refinancing Debt in respect thereof),
the BBH Obligations and the obligations under the B&R Promissory Note shall be
permitted to be secured by the Collateral on a pari passu basis with such
security interest in the Collateral securing the Obligations and (ii) Liens
which both (a) are Permitted Liens and (b) have priority over the Liens granted
to the Administrative Agent pursuant to the Loan Documents by operation of Law
shall be permitted on the Collateral.”

 

“Term Lender Provided Hedge shall mean an Interest Rate Hedge or other hedging
transaction which is provided by any lender under the Vought Term Loans or
Incremental Term Loans or any Affiliate thereof to the extent that the
obligations of the Loan Parties thereunder are secured jointly with the Vought
Term Loans or Incremental Term Loans, respectively and provided, that each such
Interest Rate Hedge or other hedging transaction meets the following
requirements: such Interest Rate Hedge or other hedging transaction (i) is
documented in a standard International Swap Dealer Association agreement,
(ii) provides for the method of calculating the reimbursable amount of the
provider’s credit exposure in a reasonable and customary manner, and (iii) is
entered into for hedging (rather than speculative) purposes.”

 

“2010 Bonds shall mean notes issued by TGI to finance a portion of the
Acquisition or to refinance the Vought Bridge Loans; provided the aggregate
principal amount thereof does not exceed $400,000,000, plus or minus, as the
case may be, the amount by which the aggregate initial principal amount of the
Vought Term Loans is less than or greater than, respectively, $300,000,000;
provided, further, that the 2010 Bonds shall, in any case, meet the Vought
Financing Parameters.”

 

(c)           Section 5.1.23 [Senior Debt Status] of the Credit Agreement is
hereby amended by adding the following sentence to the end thereof:

 

“The Obligations of each Loan Party under this Agreement are not superior in
right of payment to the B&R Promisory Note.”

 

(d)           Section 6.1.3 [Delivery of Loan Documents] of the Credit Agreement
is hereby amended by adding the Collateral Agency Agreement in form and
substance acceptable to the Administrative Agent to the documents required to be
delivered on the Closing Date.

 

(e)           Section 7.1.16 [Collateral and Additional Collateral; Execution
and Delivery of Additional Collateral Documents] of the Credit Agreement is
hereby amended to:

 

(i)            insert a new paragraph immediately prior to paragraph (a) thereof
to read:

 

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“In the case of each of clauses (a), (b), (c) and (d) below, the Borrower shall,
and shall cause each of its Subsidiaries, to:”;

 

(ii)           provide that each of the references in clause (d) of
Section 7.1.16 to 66% are amended to read “65%”;

 

(iii)          provide that each of the references in clause (d) of
Section 7.1.16 to “Loan Party” is amended to read “Domestic Loan Party”; and

 

(iv)          provide that the last paragraph of Section 7.1.16 is hereby
amended to  replace the words “condition precedent” therein with the word
“covenant.”

 

(f)            Section 7.1.18 [Intercreditor Issues] of the Credit Agreement is
hereby amended in its entirety to read as follows:

 

“7.1.18        Intercreditor Issues.

 

In the event of a breach or default (i) under the Intercreditor Agreement or the
Collateral Agency Agreement by any party thereto (other than the Administrative
Agent), or (ii) by any holder of any Indebtedness which is subordinated to the
Obligations, of such subordination provisions, in each case, which circumstance
is capable of being cured or mitigated by action or inaction by any of the Loan
Parties, the Loan Parties shall take any practicable action or refrain from
taking action available to it to cure or mitigate such breach or default.  By
way of example only, and without limiting the generality of the foregoing, if,
the collateral agent for the lenders of the Vought Term Loan receives a Lien on
the assets which is not also provided to the Administrative Agent, the Loan
Parties shall grant a Lien to the Administrative Agent thereon. “

 

(g)           Section 7.1.19 [Chatsworth Property] is hereby added to the end of
Section 7.1 [Affirmative Covenants] of the Credit Agreement, and shall read as
follows:

 

“7.1.19 Chatsworth Property.

 

On or prior to December 31, 2010 (or such later date as may be agreed to by the
Administrative Agent in its sole discretion), the Loan Parties will take, or
will cause to be taken, the actions specified in Section 7.1.16(b) with respect
to the Chatsworth Property (irrespective of its value), unless the Chatsworth
Property shall have been transferred or otherwise disposed of,

 

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in each case to a third party, prior to such date in a transaction otherwise
permitted pursuant to this Agreement.”

 

(h)           Clauses (i)(e), (i)(g) and (i) (l) of Section 7.2.1 [Indebtedness]
of the Credit Agreement are hereby amended, respectively, to read in their
entirety as follows:

 

“(e) the IDBs existing on the date hereof so long as the principal amount
thereof is not hereafter increased and no additional assets (other than as
provided in the Collateral Documents) become subject to Liens associated
therewith;

 

“(g) Indebtedness secured by Purchase Money Security Interests and Capital Lease
Obligations incurred after the date hereof in an aggregate amount outstanding at
any time (including additional IDBs) not to exceed $50,000,000;

 

“(l) Guaranties by any Loan Party of secured Indebtedness of any other Loan
Party otherwise permitted to be incurred under this Section 7.2.1(i) (other than
(i) Sections (b), (f), (g), (j), (k) and (m) of this Section 7.2.1(i) and
(ii) Section (e) of this Section 7.2.1(i), other than pursuant to the IDB
Guaranty and the Collateral Documents;”

 

(i)            Clause (viii) of Section 7.2.4 [Loans and Investments] of the
Credit Agreement is hereby amended to read as follows:

 

“(viii)      other investments not identified above so long as the aggregate
amount of such investments made and outstanding after the date hereof shall not
at any time exceed $15,000,000;”

 

(j)            Section 7.2.20 [Repayment of Convertible Notes: Repayment of the
Subordinated Indebtedness] is hereby amended by deleting the final “.” thereof
and replacing it with the following:

 

“provided that no such repayment of subordinated indebtedness may be made if an
Event of Default shall have occurred and be continuing or would result from such
repayment.”

 

(k)           Section 8.1.5 [Defaults in Other Agreements or Indebtedness] of
the Credit Agreement is hereby amended to read in its entirety as follows:

 

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“8.1.5      Defaults in Other Agreements or Indebtedness.

 

(a) A default or event of default shall occur at any time under the terms of any
other agreement involving borrowed money or the extension of credit or any other
Indebtedness under which any Borrower or Subsidiary of any Borrower may be
obligated as a borrower or guarantor in excess of $25,000,000.00 in the
aggregate, and such breach, default or event of default consists of the failure
to pay (beyond any period of grace permitted with respect thereto, whether
waived or not) any Indebtedness when due (whether at stated maturity, by
acceleration or otherwise) or if such breach or default permits or causes the
acceleration of any Indebtedness (and such right shall not have been waived) or
the termination of any commitment to lend thereunder, or (b) without limiting
the foregoing, there occurs and is continuing any event of default giving rise
to a right of acceleration or termination under (i) the Convertible Debt
Documents (ii) the Vought Term Loans, (iii) the 2009 Bonds, (iv) the Vought
Bridge Loans, (v) the 2010 Bonds, or (vi) the Specified IDB Obligations, or
(c) without limiting the foregoing, the Receivables Facility is terminated prior
to maturity as a result of a breach, default, event of default, or Termination
Event (as defined in the Receivables Purchase Agreement).”

 

(l)            Section 8.2.5.1 [Application of Proceeds] of the Credit Agreement
is hereby amended in its entirety to read as follows:

 

“8.2.5.1   Application of Proceeds.

 

From and after the date on which the Administrative Agent has taken any action
pursuant to this Section 8.2, and until all Obligations of the Borrowers have
been paid in full, any and all proceeds received by the Administrative Agent
from any sale or other disposition of the Collateral, or any part thereof, or on
account of the exercise of other remedies by the Administrative Agent, shall,
subject to the Intercreditor Agreement and the Collateral Agency Agreement, be
applied as described in Section 6.5 of the Guarantee and Collateral Agreement.”

 

(m)          Section 8.2.5.2 [Collateral Sharing] of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

 

“8.2.5.2 Collateral Sharing.

 

All Liens granted under the Collateral Documents and any other Loan Document
shall secure ratably and on a pari passu basis (i) the Obligations in favor of
the Administrative Agent and the Banks hereunder and (ii) the Obligations
incurred by any of the Loan Parties in favor of any Bank (or any Affiliate of
any Bank) which provides a Bank-Provided Hedge or an Other Bank Provided
Financial Service Product (the “IRH Provider”), and (iii) the BBH Obligations. 
The Administrative Agent under the Collateral Documents shall be deemed to serve
as the collateral agent (the “Collateral Agent”) for Brown Brothers Harriman &
Co. (solely with respect to the Collateral granted for the benefit of Brown
Brothers Harriman & Co. pursuant to the Guarantee and Collateral Agreement and
the Mortgages, and subject to the Collateral Agency Agreement), the IRH
Providers and the Banks hereunder; provided that the Collateral Agent shall
comply with the instructions and directions of the Administrative Agent (or the
Banks under this Agreement to the extent that this Agreement or any other Loan

 

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Document empowers the Banks to direct the Administrative Agent), as to all
matters relating to the Collateral, including the maintenance and disposition
thereof.  Neither Brown Brothers Harriman & Co. nor any IRH Provider (except in
its capacity as a Bank hereunder) shall be entitled or have the power to direct
or instruct the Collateral Agent on any such matters or to control or direct in
any manner the maintenance or disposition of the Collateral.”

 

(n)           Section 10.11.1 [Successors; Assignments] is amended by adding the
following sentence at the end thereof:

 

“Notwithstanding anything to the contrary provided in this Section, to the
extent TGI’s consent is required for any assignment by a Bank, such consent
shall be deemed given unless TGI shall have objected thereto by written notice
to the Administrative Agent within five (5) Business Days after having received
notice thereof.”

 

(o)           Section 10.22 [Intercreditor Agreement] of the Credit Agreement is
amended to read in its entirety as follows:

 

“10.22     Intercreditor Agreement; Collateral Agency Agreement.

 

The Administrative Agent is authorized and directed to enter into the
Intercreditor Agreement and the Collateral Agency Agreement on behalf of the
Banks and each of the Banks hereby approves and agrees to be bound by the terms
of the Intercreditor Agreement and the Collateral Agency Agreement.”

 

(p)           The Credit Agreement is further amended by deleting Schedule
1.1(P) [Permitted Liens] therefrom and replacing it with Schedule
1.1(P) [Permitted Liens] attached to this Amendment.

 

(q)           The Credit Agreement is further amended by deleting
Exhibit 10.20(A) [Form of Borrower Joinder] therefrom and replacing it with
Exhibit 10.20(A) [Form of Borrower Joinder] attached to this Amendment.

 

(r)            The Credit Agreement is further amended by deleting
Exhibit 10.20(B) [Form of Guarantor Joinder] therefrom and replacing it with
Exhibit 10.20(B) [Form of Guarantor Joinder] attached to this Amendment.

 

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2.             Effectiveness of This Amendment.  This Amendment shall be
effective upon execution by (i) each of the Borrowers and each of the Guarantors
party to any Loan Document at the time of such effectiveness, and (ii) the Banks
constituting the Required Banks; it being understood that this Amendment, if
executed and delivered on the Closing Date, shall be deemed to be effective
prior to the consummation of the Acquisition and satisfaction of the condition
set forth in Section 6.1.19 of the Credit Agreement. On such date the Loan
Parties shall cause the president or chief financial officer of TGI to deliver
to the Administrative Agent a certificate as to the solvency of TGI and its
Subsidiaries on a consolidated basis.

 

3.             Miscellaneous.

 

(a)           All of the terms, conditions, provisions and covenants in the
Notes, the Credit Agreement, the Loan Documents, and all other documents
delivered to the Banks and the Administrative Agent in connection with any of
the foregoing documents and obligations secured thereby shall remain unaltered
and in full force and effect except as modified by this Amendment and are hereby
ratified and confirmed.

 

(b)           This Amendment shall be governed by and construed in accordance
with the laws of the Commonwealth of Pennsylvania.

 

(c)           The Borrowers shall reimburse the Administrative Agent for all
expenses for which the Administrative Agent is entitled to be reimbursed,
including the fees of counsel for the Administrative Agent in connection with
this Amendment.

 

(d)           Each and every one of the terms and provisions of this Amendment
shall be binding upon and shall inure to the benefit of the Borrowers, the Banks
and the Administrative Agent and their respective successors and assigns.

 

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(e)           This Amendment may be executed in one or more counterparts, each
of which shall be deemed to be an original as against any party whose signature
appears thereon, and all of which shall constitute but one and the same
instrument.

 

(f)            The execution and delivery of this Amendment shall not be
construed to establish a course of conduct or imply that any other, future or
further waivers, consents or forbearance shall be considered, provided or agreed
to.

 

(g)           Each Borrower represents and warrants that there exists no Event
of Default or Potential Default.

 

(h)           Each Borrower represents and warrants that as of the execution
hereof (i) the only Loan Party is TGI; and (ii) no other Person is required to
be a “Loan Party” hereunder.

 

(i)            The Loan Parties hereby represent and warrant to the
Administrative Agent and the Banks that after giving effect to this Amendment,
(1) the representations and warranties of the Loan Parties contained in the
Credit Agreement and the other Loan Documents are true and correct on and as of
the date hereof with the same force and effect as though made by the Loan
Parties on such date, except to the extent that any such representation or
warranty expressly relates solely to a previous date, and (2) the Loan Parties
are in compliance with all terms, conditions, provisions, and covenants
contained in the Credit Agreement, as amended hereby, and the other Loan
Documents.  This Amendment has been duly executed by an authorized officer of
each Loan Party.  The execution, delivery, and performance of this Amendment
have been duly authorized by all necessary corporate action, require no
governmental approval, and will neither contravene, conflict with, nor result in
the breach of any Law, charter, articles, or certificate of incorporation or
organization, bylaws, operating

 

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agreement or other agreement governing or binding upon any of the Loan Parties
or any of their property.

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

 

 

BORROWER:

 

 

 

By:

/s/ M. David Kornblatt

 

Name: M. David Kornblatt

 

Title: Executive Vice President, Chief Financial Officer and Treasurer

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

PNC BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent

 

 

 

 

 

By:

/s/ Brian T. Vesey

 

Name: Brian T. Vesey

 

Title: Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

CITIZENS BANK OF PENNSYLVANIA, individually and as Syndication Agent

 

 

 

 

 

By:

/s/ Carol Castle

 

Name: Carol Castle

 

Title: Senior Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

MANUFACTURERS AND TRADERS TRUST COMPANY, individually and as Managing Agent

 

 

 

 

 

By:

/s/ Tracey E. Sawyer-Calhoun

 

Name: Tracey E. Sawyer-Calhoun

 

Title: Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

JPMORGAN CHASE BANK, N.A., individually and as Managing Agent

 

 

 

 

 

By:

/s/ Deborah R. Winkler

 

Name: Deborah R. Winkler

 

Title: Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

SOVEREIGN BANK, individually and as Managing Agent

 

 

 

 

 

By:

/s/ Francis D. Phillips

 

Name: Francis D. Phillips

 

Title: Senior Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

BRANCH BANKING AND TRUST COMPANY, individually and as Managing Agent

 

 

 

 

 

By:

/s/ Roberts A. Bass

 

Name: Roberts A. Bass

 

Title: Senior Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

U.S. BANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Patrick McGraw

 

Name: Patrick McGraw

 

Title: Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

TRISTATE CAPITAL BANK

 

 

 

 

 

By:

/s/ Timothy A. Merriman

 

Name: Timothy A. Merriman

 

Title: Senior Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

TORONTO DOMINION (NEW YORK) LLC

 

 

 

 

 

By:

/s/ Jackie Barrett

 

Name: Jackie Barrett

 

Title: Authorized Signatory

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

 

FIRST COMMONWEALTH BANK

 

 

 

 

 

By:

/s/ Misty L. Cleary

 

Name: Misty L. Cleary

 

Title: Assistant Vice President

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

 

ROYAL BANK OF CANADA

 

 

 

 

 

By:

/s/ Scott Umbs

 

Name: Scott Umbs

 

Title: Authorized Signatory

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

 

UBS LOAN FINANCE LLC

 

 

 

 

 

By:

/s/ Irja R. Otsa

 

Name: Irja R. Otsa

 

Title: Associate Director

 

 

 

 

 

By:

/s/ Mary E. Evans

 

Name: Mary E. Evans

 

Title: Associate Director

 

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[SIGNATURE PAGE TO THE
FIRST AMENDMENT TO CREDIT AGREEMENT]

 

 

FIRST NIAGARA BANK

 

 

 

 

 

By:

/s/ Tara Handforth

 

Name: Tara Handforth

 

Title: Vice President

 

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