EXHIBIT 10.31

 

FIRST AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”) is made and dated as of June 30, 2003, by and among BOYD GAMING
CORPORATION, a Nevada corporation (the “Borrower”) and CANADIAN IMPERIAL BANK OF
COMMERCE (“CIBC”), as administrative agent and collateral agent (herein, in such
capacity, called the “Administrative Agent”), for the commercial lending
institutions party to the hereinafter-described Credit Agreement (collectively,
the “Lenders”).

 

RECITALS

 

A.     The Borrower and the Lenders entered into that certain Second Amended and
Restated Credit Agreement dated as of June 24, 2002, (the “Credit Agreement”),
pursuant to which the Lenders agreed to extend credit to the Borrower on the
terms and subject to the conditions set forth therein.

 

B.     The Borrower and the Lenders desire to further amend certain terms and
conditions of the Credit Agreement pursuant to this Amendment.

 

NOW, THEREFORE, in consideration of the above Recitals and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree to amend the Credit Agreement as
follows:

 

AGREEMENT

 

1.      The Credit Agreement is hereby amended as follows:

 

a.      Section 7.2.6 of the Credit Agreement is hereby amended to read in its
entirety as follows:

 

SECTION 7.2.6 Restricted Payments.

 

(a)  Neither the Borrower nor any of its Subsidiaries shall purchase, or defease
or redeem the Senior Notes or any Subordinated Debt; provided, however, that (i)
the Borrower may make such purchases or redemptions of the Senior Notes due 2003
if both before and after giving effect thereto, there shall not exist a Default
or an Event of Default, and (ii) the Borrower may make such purchases or
redemptions of the Senior Notes due 2009 or any Subordinated Debt if (A) both
before and after giving effect thereto, there shall not exist a Default or an
Event of Default, and (B) the aggregate amount of such purchases or redemptions
(exclusive of any refinancing of the Senior Notes due 2009 or any Subordinated
Debt from the proceeds of a Permitted Subordinated Debt Issuance) in any Fiscal
Year commencing on or after January 1, 2003, together with any amounts declared
and made under Section 7.2.6(b) during such Fiscal Year, does not exceed
$25,000,000 and provided, further that the Borrower may, after prior written
notice to the Lenders, redeem, purchase or defease any Senior Notes or
Subordinated Debt that any Gaming Board has ordered so purchased, redeemed or
defeased.

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(b)  The Borrower will not declare, pay or make any dividend or distribution (in
cash, property or obligations) on any shares of any class of Capital Stock (now
or hereafter outstanding) of the Borrower or on any warrants, options or other
rights with respect to any shares of any class of Capital Stock (now or
hereafter outstanding) of the Borrower or apply, or permit any of its
Subsidiaries to apply, any of its funds or assets to the purchase or redemption
of any shares of Capital Stock of the Borrower unless (i) both before and after
giving effect to any such dividend, distribution, purchase or redemption, there
shall not exist a Default or an Event of Default and (ii) the aggregate amount
of such dividends or distributions declared and purchases or redemptions made in
any Fiscal Year commencing on or after January 1, 2003, together with any
amounts first paid or committed (without duplication) under Section 7.2.6(a)
during such Fiscal Year, does not exceed $25,000,000; provided, that the
Borrower may, after prior written notice to the Lenders, purchase or redeem any
shares of its Capital Stock that any Gaming Board has ordered so purchased or
redeemed.

 

(c)  Except to the extent permitted by clause (a) above, the Borrower will not,
and will not permit any of its Subsidiaries to make any payment or prepayment of
Subordinated Debt on any day other than the stated scheduled date for such
payment set forth in the Subordinated Debt.

 

2.      Effective Date.  This Amendment shall be effective on the date on which:

 

a.      This Amendment shall have been executed by the Borrower and the Majority
Lenders; and

 

b.      The Agent shall have received executed acknowledgment and
reaffirmations, substantially in the form set forth in Exhibit A hereto, duly
executed by each of the Guarantors.

 

3.      Representations and Warranties.  The Borrower hereby represents and
warrants to the Agent and the Lenders as follows:

 

a.      The Borrower has the power and authority and the legal right to execute,
deliver and perform this Amendment and has taken all necessary action to
authorize the execution, delivery and performance of this Amendment. This
Amendment has been duly executed and delivered by the Borrower. The Credit
Agreement (as amended by this Amendment) and the other Loan Documents to which
the Borrower is party constitute legal, valid, and binding obligations of the
Borrower, enforceable against the Borrower in accordance with their terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
other similar laws now or hereafter in effect relating to creditors’ rights
generally, and general principles of equity.

 

b.      At and as of the date of execution hereof and at and as of the effective
date of this Amendment and after giving effect to this Amendment: (1) the
representations and warranties of the Borrower contained in the Credit Agreement
are true and correct in all respects, and (2) no Default or Event of Default has
occurred and is continuing under the Credit Agreement.

 

4.      Reaffirmation of Credit Agreement.  This Amendment shall be deemed to be
an amendment to the Credit Agreement, and the Credit Agreement, as amended
hereby, is hereby ratified, approved and confirmed in each and every respect.
All references to the Credit

 

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Agreement in any other document, instrument, agreement or writing shall
hereafter be deemed to refer to the Credit Agreement as amended hereby.

 

5.      Reaffirmation of Loan Documents.  The Borrower hereby further affirms
and agrees that (a) the execution and delivery by the Borrower of and the
performance of its obligations under the Credit Agreement, as amended by this
Amendment, shall not in any way amend, impair, invalidate or otherwise affect
any of the obligations of the Borrower or the rights of the Agent or the Lenders
under any of the Loan Documents or any other document or instrument made or
given by the Borrower in connection therewith, and (b) the term “Obligations” as
used in the Loan Documents includes, without limitation, the Obligations of the
Borrower under the Credit Agreement as amended by this Amendment.

 

6.      Miscellaneous Provisions.

 

a.      Survival.  The provisions of this Amendment shall survive to the extent
provided in Section 10.5 of the Credit Agreement.

 

b.      Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS OF NEVADA.

 

c.      Counterparts.  This Amendment may be executed in any number of
counterparts, all of which together shall constituted one agreement.

 

d.      No Other Amendment.  Except as expressly amended herein, the Credit
Agreement, the other Loan Documents and all documents, instruments and
agreements relating thereto or executed in connection therewith shall remain in
full force and effect as currently written.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed
by their respective officers thereunto duly authorized on July 31, 2003.

 

BOYD GAMING CORPORATION

By:

 

/s/    ELLIS LANDAU

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Title:   Executive Vice President

 

CANADIAN IMPERIAL BANK OF COMMERCE, as Administrative Agent

By:

 

/s/    PAUL J. CHAKMAK

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Name:

Title:

 

Paul J. Chakmak

Managing Director, CIBC World

Markets Corp., AS AGENT

 

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EXHIBIT A to First Amendment to Second

Amended and Restated Credit Agreement

 

June 30, 2003

 

The parties listed on

the signature pages hereof

c/o Boyd Gaming Corporation

2950 South Industrial Road

Las Vegas, Nevada 89109

 

Attention: Chief Financial Officer

 

  Re:   Boyd Gaming Corporation

 

Gentlemen:

 

Please refer to (1) the Second Amended and Restated Credit Agreement, dated as
of June 24, 2002 (the “Credit Agreement”), by and among Boyd Gaming Corporation,
as the Borrower, the commercial lending institutions party thereto
(collectively, the “Lenders”), Canadian Imperial Bank of Commerce (“CIBC”), as
Administrative Agent and collateral agent for the Lenders (herein, in such
capacity, called the “Administrative Agent”) (the Lenders and the Agent herein
are collectively called the “Beneficiaries”) and (2) the Second Amended and
Restated General Continuing Guaranty, dated as of June 24, 2002 (the “Guaranty”)
to which each of you is now a party in favor of the Agent for the Beneficiaries.
Pursuant to an amendment dated of even date herewith, certain terms of the
Credit Agreement were amended. We hereby request that you (i) acknowledge and
reaffirm all of your obligations and undertakings under the Guaranty and (ii)
acknowledge and agree that the Guaranty is and shall remain in full force and
effect in accordance with the terms thereof.

 

A-1

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Please indicate your agreement to the foregoing by signing in the space provided
below, and returning the executed copy to the undersigned.

 

   

CANADIAN IMPERIAL BANK OF

COMMERCE, as Administrative Agent

   

By:

 

/s/    PAUL J. CHAKMAK        

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Name:

Title:

 

Paul J. Chakmak

Managing Director

CIBC World Markets Corp.,

AS AGENT

Acknowledged and Agreed:                                                   

MARE-BEAR, INC.,

a Nevada corporation

   

By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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    SAM-WILL, INC., a Nevada corporation    

By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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    BOYD TUNICA, INC., a Mississippi corporation    

By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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CALIFORNIA HOTEL AND CASINO, a Nevada

corporation

   

By:

 

/s/    ELLIS LANDAU  

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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CALIFORNIA HOTEL FINANCE

CORPORATION, a Nevada corporation

   

By:

 

/s/    ELLIS LANDAU

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    Title:  

Vice President, Treasurer and Chief Financial Officer

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A-2

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BOYD ATLANTIC CITY, INC., a New Jersey

corporation

   

By:

 

/s/    ELLIS LANDAU      

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    Title:  

Vice President, Treasurer and Chief Financial Officer

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    ELDORADO, INC., a Nevada corporation    

By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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PAR-A-DICE GAMING CORPORATION,

an Illinois corporation

   

By:

 

/s/    ELLIS LANDAU

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    Title:  

Vice President, Treasurer and Chief Financial Officer

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    BOYD KENNER, INC., a Louisiana corporation    

By:

 

/s/    ELLIS LANDAU  

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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BOYD LOUISIANA L.L.C., a Nevada limited

liability company

   

By:

 

/s/    WILLIAM S. BOYD

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    Title:  

Manager

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    M.S.W., INC., a Nevada corporation    

By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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TREASURE CHEST CASINO, L.L.C., a Louisiana

limited liability company

   

By:

  Boyd Kenner, Inc., Managing Agent          

 

 

A-3

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By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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BLUE CHIP CASINO, LLC, an Indiana limited

liability company

 

By:   Boyd Indiana, Inc., an Indiana
corporation, its sole member

   

By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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BOYD INDIANA, INC., an Indiana

corporation

   

By:

 

/s/    ELLIS LANDAU

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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BOYD LOUISIANA RACING, INC., a Louisiana

corporation

   

By:

 

/s/    ELLIS LANDAU  

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    Title:  

Sr. VP, Treasurer and Chief Financial Officer

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BOYD RACING, L.L.C., .a Louisiana limited

liability company

   

By:

 

/s/    WILLIAM S. BOYD

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    Title:  

Manager

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