Exhibit 10.1

 

August 28, 2015

 

Bank of America, N.A.,

as Agent

100 Federal Street

Boston, Massachusetts 02110

 

Re: Commitment Increase Acknowledgment

 

Ladies and Gentlemen:

 

Reference is hereby made to that certain Second Amended and Restated Loan
Agreement, dated as of March 21, 2011 (as amended, restated, supplemented or
otherwise modified from time to time, the “Loan Agreement”), among The Bon-Ton
Department Stores, Inc., a Pennsylvania corporation (“Bon-Ton”), Carson Pirie
Scott II, Inc., a Florida corporation (“CPS II”), Bon-Ton Distribution, LLC, an
Illinois limited liability company (“Distribution”), McRIL, LLC, a Virginia
limited liability company (“McRIL” and, together with Bon-Ton, CPS II,
Distribution and any other person from time to time a borrower thereunder,
collectively, the “Borrowers”), each of the other Obligors party thereto, the
financial institutions party thereto from time to time as lenders (collectively,
the “Lenders”), Bank of America, N.A., a national banking association (“Bank of
America”), as administrative agent for the Lenders (in such capacity, the
“Agent”), Bank of America and General Electric Capital Corporation (“GE
Capital”), acting as co-collateral agents (in such capacity, the “Co-Collateral
Agents”), and the other parties thereto.  Any capitalized term used herein and
not defined shall have the meaning assigned to it in the Loan Agreement.

 

Pursuant to Section 2.4 of the Loan Agreement, the Borrower Agent has requested
that the Tranche A Revolver Commitments be increased from $575,000,000 to
$650,000,000 from and after the date hereof (the “Increase Effective Date”).

 

To facilitate such increase in the aggregate Tranche A Revolver Commitments,
each of the undersigned hereby confirms that it has agreed to increase its
Tranche A Revolver Commitment by the amount shown opposite its name on Exhibit A
attached hereto from and after the Increase Effective Date.

 

Each of the Borrowers, the Guarantors, the undersigned and the Agent hereby
acknowledge and agree that (a) each of the undersigned, in its capacity as an
Increasing Lender, shall, from and after the Increase Effective Date, have a
Tranche A Revolver Commitment under the Loan Agreement in the amount shown
opposite its name on Exhibit B attached hereto, (b) as of the Increase Effective
Date, after giving effect to the Tranche A Revolver Commitment of the Increasing
Lender, the aggregate Tranche A Revolver Commitments shall be $650,000,000,
(c) as of the Increase Effective Date, Schedule 1.1(a) (Commitments of Lenders)
to the Loan Agreement shall be replaced by Schedule 1.1(a) (Commitments of
Lenders) attached hereto as Exhibit B, and (d) the

 

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Increase Effective Date shall be deemed to be the Increase Effective Date
referred to in Section 2.4 of the Loan Agreement.

 

Each of the Borrowers and Guarantors hereby represent and warrant to each of the
undersigned that, before and after giving effect to the increase contemplated
hereunder, (a) the representations and warranties contained in Section 9 of the
Loan Agreement and the other Loan Documents are true and correct in all material
respects on and as of the Increase Effective Date, except to the extent that
such representations and warranties specifically refer to an earlier date, in
which case they are true and correct in all material respects as of such earlier
date, and except that for purposes of hereof, the representations and warranties
contained in Section 9.1.8 of the Loan Agreement shall be deemed to refer to the
most recent statements furnished to Agent under the Loan Agreement, and (b) no
Default or Event of Default has occurred and is continuing.

 

As a condition to the effectiveness of the transactions contemplated under this
letter agreement, the Borrowers shall deliver to the Agent, each of the
officer’s certificates required pursuant to Section 2.4.2 of the Loan Agreement.

 

Upon the request of any Increasing Lender, the Borrowers shall issue an amended
and restated Tranche A Revolver Note payable to the order of such Increasing
Lender in a principal amount equal to the amount of its new Tranche A Revolver
Commitment.

 

This letter agreement shall be considered a Loan Document under the Loan
Agreement.

 

This letter agreement shall be binding upon, and inure to the benefit of, the
parties hereto and their respective successors and assigns.  This letter
agreement may be executed in any number of counterparts, which together shall
constitute one instrument.  Delivery of an executed counterpart of a signature
page of this letter agreement by facsimile or electronic transmission (including
.pdf file) shall be effective as delivery of a manually executed counterpart of
this letter agreement.  This letter agreement shall be governed by, and
construed in accordance with, the law of the State of New York.

 

[Remainder of Page Left Intentionally Blank]

 

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Very truly yours,

 

 

 

INCREASING LENDERS:

 

 

 

BANK OF AMERICA, N.A.

 

 

 

 

 

By:

/s/Andrew Cerussi

 

Name:

Andrew Cerussi

 

Title:

Director

 

 

 

 

 

GE ASSET BASED MASTER NOTE LLC

 

 

 

 

 

By:

/s/Charles D. Chiodo

 

Name:

Charles D. Chiodo

 

Title:

Duly Authorized Signatory

 

 

 

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Michael Stavrakos

 

Name:

Michael Stavrakos

 

Title:

Assistant Vice President

 

 

 

 

 

U.S. BANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Carol Anderson

 

Name:

Carol Anderson

 

Title:

Vice President

 

 

 

 

 

PNC BANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Brandon Schmoyer

 

Name:

Brandon Schmoyer

 

Title:

Officer

 

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TD BANK, N.A.

 

 

 

 

 

By:

/s/ Stephen A. Caffrey

 

Name:

Stephen A. Caffrey

 

Title:

Vice President

 

 

Acknowledged and consented to as of the date first set forth above

 

BANK OF AMERICA, N.A.,

 

as Agent

 

 

 

 

 

By:

/s/ Andrew Cerussi

 

Name:

Andrew Cerussi

 

Title:

Director

 

 

 

Acknowledged and agreed to as of the date first set forth above

 

 

 

BORROWERS:

 

 

 

THE BON-TON DEPARTMENT STORES, INC.

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

Senior Vice President — Corporate Controller & Treasurer

 

 

 

 

 

CARSON PIRIE SCOTT II, INC.

 

 

 

By:

/s/ Timothy M. Strickler

 

Name: Timothy M. Strickler

 

Title: Senior Vice President — Corporate Controller & Treasurer

 

 

 

 

 

BON-TON DISTRIBUTION, LLC

 

 

 

By:

/s/ Timothy M. Strickler

 

Name: Timothy M. Strickler

 

Title: Senior Vice President — Corporate Controller & Treasurer

 

 

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MCRIL, LLC

 

 

 

 

 

By:

/s/ Timothy M. Strickler

 

Name:

Timothy M. Strickler

 

Title:

Senior Vice President — Corporate Controller & Treasurer

 

 

 

 

 

OTHER OBLIGORS:

 

 

 

THE BON-TON STORES, INC.

 

 

 

By:

/s/ Timothy M. Strickler

 

Name: Timothy M. Strickler

 

Title: Senior Vice President — Corporate Controller & Treasurer

 

 

 

 

 

THE BON-TON GIFTCO, LLC

 

 

 

By:

/s/ Timothy M. Strickler

 

Name: Timothy M. Strickler

 

Title: President and Treasurer

 

 

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EXHIBIT A

 

COMMITMENT INCREASE AMOUNTS

 

Increasing Lender

 

Increase in Tranche A
Revolver Commitment

 

Total

 

$

75,000,000.00

 

 

The allocation of Commitments has been determined by the Agent as of the Closing
Date.

 

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EXHIBIT B

 

Schedule 1.1(a)

 

Commitments of Lenders

 

Lenders

 

Tranche A Revolver
Commitments

 

Tranche A-1 Revolver
Commitments

 

Total

 

$

650,000,000.00

 

$

100,000,000.00

 

 

The allocation of Commitments has been determined by the Agent on the Closing
Date.

 

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