Exhibit 10.1
 
 
INCREMENTAL TERM FACILITY SUPPLEMENT

This INCREMENTAL TERM FACILITY SUPPLEMENT (Tranche A-1) (this “Supplement”) is
entered into as of June 24, 2014, among Alliant Techsystems Inc., a Delaware
corporation (the “Borrower”), each lender party hereto (collectively, the
“Tranche A-1 Incremental Term Loan Lenders” and individually, a “Tranche A-1
Incremental Term Loan Lender”), and Bank of America, N.A., as Administrative
Agent (in such capacity, the “Administrative Agent”).

Each of Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any of its
designated affiliates), Wells Fargo Securities, LLC, The Bank of
Tokyo-Mitsubishi UFJ, Ltd., J.P. Morgan Securities LLC, SunTrust Robinson
Humphrey, Inc. and U.S. Bank National Association (collectively, the “Joint Lead
Arrangers” and individually, a “Joint Lead Arranger”) shall act as a joint lead
arranger in connection with the Incremental Term Commitment (as defined below).

Reference is made to that certain Third Amended and Restated Credit Agreement,
dated as of November 1, 2013 (as amended, restated, extended, supplemented or
otherwise modified in writing from time to time, the “Credit Agreement;” the
terms defined therein being used herein as therein defined), among the Borrower,
the Lenders from time to time party thereto, the Administrative Agent, the other
Agents and the Arrangers.

Pursuant to Section 2.15(a) of the Credit Agreement, the Borrower has requested
(a) the addition of a $150,000,000 additional term loan facility, (b) that the
Tranche A-1 Incremental Term Loan Lenders party hereto extend Incremental Term
Loans as provided herein, and (c) the effective date for such additional term
loan facility be June 24, 2014 (the “Effective Date”).

Each Tranche A-1 Incremental Term Loan Lender party to this Supplement has
agreed to provide the Incremental Term Commitment set forth opposite its name on
Schedule I hereto (its “Incremental Term Commitment”) and has indicated its
willingness to lend the Incremental Term Loans on the terms and conditions set
forth herein and in the Credit Agreement.

Section 1.   Tranche A-1 Incremental Term Facility.  The aggregate Incremental
Term Commitments of $150,000,000 provided hereunder shall be designated the
“Tranche A-1 Incremental Term Facility” (the “Tranche A-1 Incremental Term
Facility”) and the Incremental Term Loans made thereunder shall be designated
“Tranche A-1 Incremental Term Loans” (the “Tranche A-1 Incremental Term Loans”)
and shall, in addition to the terms and conditions set forth in the Credit
Agreement, have the following terms and conditions:

(a)           The Incremental Term Facility Closing Date must occur on or prior
to July 15, 2014 (the “Termination Date”);

(b)           The Maturity Date shall be January 31, 2019;
 
 
 
 

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(c)           The Borrower shall repay to the Administrative Agent for the
ratable account of the Tranche A-1 Incremental Term Loan Lenders the aggregate
principal amount of all Tranche A-1 Incremental Term Loans outstanding on the
following dates in the respective amounts set forth opposite such dates (which
amounts shall be reduced as a result of the application of prepayments in
accordance with the order of priority set forth in Section 2.05 of the Credit
Agreement):

Date
Amount
September 30, 2014
$1,875,000
December 30, 2014
$1,875,000
March 30, 2015
$1,875,000
June 30, 2015
$1,875,000
September 30, 2015
$1,875,000
December 31, 2015
$1,875,000
March 31, 2016
$1,875,000
June 30, 2016
$1,875,000
September 30, 2016
$1,875,000
December 30, 2016
$1,875,000
March 31, 2017
$1,875,000
June 30, 2017
$1,875,000
September 29, 2017
$1,875,000
December 29, 2017
$1,875,000
March 29, 2018
$1,875,000
June 29, 2018
$1,875,000
September 30, 2018
$1,875,000
December 30, 2018
$1,875,000

provided, however, that the final principal repayment installment of the Tranche
A-1 Incremental Term Loans shall be repaid on the Maturity Date for the Tranche
A-1 Incremental Term Facility under which such Tranche A-1 Incremental Term
Loans were made and in any event shall be in an amount equal to the aggregate
principal amount of all Tranche A-1 Incremental Term Loans outstanding on such
date;

(d)           The Applicable Rate for the Tranche A-1 Incremental Term Loans
shall be the applicable rate per annum set forth in the grid below, under the
captions “Base Rate Percentage” or “Eurodollar Percentage” cited therein, as the
case may be, based upon the Senior Secured Credit Rating:

Tranche A-1 Incremental Term Loan Facility – Applicable Rate
Pricing Level
Senior Secured Credit Ratings
(Moody’s/S&P/Fitch)
Eurodollar Percentage
Base Rate Percentage
1
Baa2 / BBB / BBB or higher
1.75%
0.75%
2
Baa3 / BBB- / BBB-
2.00%
1.00%
3
Ba1 / BB+ / BB+
2.25%
1.25%
4
Ba2 / BB / BB
2.50%
1.50%
5
Ba3 / BB- / BB- or lower or no Senior Secured Credit Rating
2.75%
1.75%

 
 
 
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(e)           The making of the Tranche A-1 Incremental Term Loans shall be
subject to the provisions of Sections 2.01(b), 2.02 and 4.02 of the Credit
Agreement.

Section 2.   Representations and Warranties of the Borrower.  The Borrower
represents to the Administrative Agent and the Tranche A-1 Incremental Term Loan
Lenders that:

(a)           no Default has occurred and is continuing on and as of the
Effective Date or would result from the addition of the Tranche A-1 Incremental
Term Facility hereunder;

(b)           the representations and warranties of the Borrower contained in
Article V of the Credit Agreement or any other Loan Document, are true and
correct in all material respects on and as of the Effective Date, except to the
extent that such representations and warranties specifically refer to an earlier
date, in which case they shall be true and correct in all material respects as
of such earlier date, and except that for purposes of this Section 2(b), the
representations and warranties contained in Sections 5.05(a) and (b) of the
Credit Agreement shall be deemed to refer to the most recent statements
furnished pursuant to Sections 6.01(a) and (b), respectively, of the Credit
Agreement;

(c)           the Borrower has complied with each of the conditions set forth in
Section 2.15 of the Credit Agreement on and as of the Effective Date; and

(d)           the transactions contemplated by this Supplement and the use of
the proceeds of the Tranche A-1 Incremental Term Loans made hereunder will not
violate any applicable Sanctions.

Section 3.   New Lenders.  Each Tranche A-1 Incremental Term Loan Lender that is
an Additional Term Loan Lender:

(a) represents and warrants that (i) it has full power and authority, and has
taken all action necessary, to execute and deliver this Supplement and to
consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all requirements of an Eligible Assignee under
the Credit Agreement, (iii) from and after the Effective Date, it shall be bound
by the provisions of the Credit Agreement as a Lender thereunder and shall have
the obligations of a Lender thereunder and (iv) it has received a copy of the
Credit Agreement and the other Loan Documents, together with copies of the most
recent financial statements delivered pursuant to Section 6.01 thereof, as
applicable, and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into this
Supplement and provide its Incremental Term Commitment hereunder on the basis of
which it has made such analysis and decision independently and without reliance
on the Administrative Agent or any other Lender;
 
 
 
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(b) agrees that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement and
the other Loan Documents;

(c) appoints and authorizes the Administrative Agent to take such action on its
behalf and to exercise such powers under the Credit Agreement and the other Loan
Documents as are delegated to the Administrative Agent by the terms thereof,
together with such powers as are reasonably incidental thereto;

(d) agrees that it will perform in accordance to their terms, all obligations
which by the terms of the Credit Agreement and the other Loan Documents are
required to be performed by it as a Lender; and

(e) in the case of such Tranche A-1 Incremental Term Loan Lender that is a
Foreign Lender, agrees that it will comply with the provisions of Section 10.14
of the Credit Agreement.

Section 4.            Reference to and Effect on Loan Documents.  (a)  On and
after the Effective Date, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the Notes and each of the other Loan
Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement, shall mean and be a reference to the
Credit Agreement, as supplemented by this Supplement.  This Supplement is an
Incremental Term Facility Supplement referred to in the definition of Loan
Documents and shall for all purposes constitute a Loan Document.

(b)           The Credit Agreement, the Notes and each of the other Loan
Documents, as specifically supplemented by this Supplement, are and shall
continue to be in full force and effect and are hereby in all respects ratified
and confirmed.  Without limiting the generality of the foregoing, the Collateral
Documents and all of the Collateral described therein do and shall continue to
secure the payment of all Obligations (including, without limitation, any
Obligations created or contemplated hereunder) of the Loan Parties under the
Loan Documents, in each case as supplemented by this Supplement.

(c)           Each of the undersigned Guarantors consents to this Supplement and
the transactions contemplated hereby and hereby confirms and agrees that (i)
notwithstanding the effectiveness of this Supplement, the Guaranty is, and shall
continue to be, in full force and effect and is hereby ratified and confirmed in
all respects, except that, on and after the effectiveness of this Supplement
each reference in the Guaranty to the “Credit Agreement”, “thereunder”,
“thereof” or words of like import shall mean and be a reference to the Credit
Agreement, as supplemented by this Supplement, and (b) each of the Collateral
Documents to which such Guarantor is a party and all of the Collateral described
therein do, and shall continue to, secure the payment of all Obligations
(including, without limitation, any Obligations created or contemplated
hereunder) to be secured thereunder.
 
 
 
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Section 5.           Costs and Expenses.  The Borrower agrees to pay or
reimburse all reasonable out-of-pocket costs and expenses of the Administrative
Agent in connection with the preparation, execution, delivery and
administration, modification and amendment of this Supplement and the other
instruments and documents to be delivered hereunder or in connection herewith
(including, without limitation, the reasonable fees and expenses of counsel for
the Administrative Agent) in accordance with the terms of Section 10.04 of the
Credit Agreement.

Section 6.            Execution in Counterparts.  This Supplement may be
executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute but one and the same
agreement.  Delivery of an executed counterpart of a signature page to this
Supplement by facsimile or other electronic means shall be effective as delivery
of a manually executed counterpart of this Supplement.

Section 7.            Effective Date; Incremental Term Facility Closing Date;
Termination of Commitments.  (a)  This Supplement shall become effective on the
Effective Date subject to (i) receipt by the Administrative Agent of executed
counterparts of this Supplement by each party hereto and (ii) the
representations and warranties of the Borrower in Section 2 being true and
correct in all material respects.

(b)           The occurrence of the Incremental Term Facility Closing Date and
the obligation of each Tranche A-1 Incremental Term Loan Lender to honor any
Request for a Credit Extension in respect of the Tranche A-1 Incremental Term
Loans is subject to (i) receipt by the Administrative Agent of a certificate of
each Loan Party substantially in the form of Exhibit A hereto dated as of the
Incremental Term Facility Closing Date signed by a Responsible Officer of such
Loan Party (A) certifying and attaching (w) the Organization Documents of such
Loan Party (or certifying that the applicable Organization Document delivered in
connection with the funding on the Restatement Closing Date remains in full
force and effect and has not been amended, modified, revoked or rescinded since
the Restatement Closing Date, as applicable), (x) the resolutions adopted by
such Loan Party approving or consenting to such increase, (y) an incumbency
certificate of such Loan Party evidencing the identity, authority and capacity
of each Responsible Officer thereof authorized to act as a Responsible Officer
in connection with this Supplement and (z) a certificate of good standing (or
equivalent) of such Loan Party, and (B) in the case of the Borrower, certifying
that the conditions to borrowing set forth in Section 4.02 of the Credit
Agreement are satisfied; (ii) receipt by the Administrative Agent of favorable
opinions of counsel for the Loan Parties substantially in the form of Exhibits
B-1, B-2, B-3, B-4, B-5 and B-6 hereto; (iii) receipt by the Administrative
Agent of a certificate substantially in the form of Exhibit C hereto attesting
to the Solvency of the Loan Parties, on a consolidated basis, before and after
giving effect to the transactions contemplated hereby, (iv) if requested by any
Lender, receipt by such Lender of a Note duly executed by the Borrower in favor
of such Lender; and (v) such date not being later than the Termination Date.

(c)           If the Effective Date and the Incremental Term Facility Closing
Date do not occur on or prior to the Termination Date, the Incremental Term
Commitments hereunder shall automatically terminate.
 
 
 
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Section 8.            Governing Law.  This Supplement shall be governed by, and
construed in accordance with, the laws of the State of New York, and shall be
subject to the jurisdictional and service provisions of the Credit Agreement, as
if this were a part of the Credit Agreement.

 
 
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IN WITNESS WHEREOF, the parties hereto have caused this Supplement to be duly
executed as of the date first written above.

 

ALLIANT TECHSYSTEMS INC.               By:  
/s/ Scott Chaplin
   
Name:  
Scott Chaplin
   
Title:
Senior Vice President, General Counsel and Secretary

 
 
 
 
Incremental Term Facility Supplement
 
 

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ALLIANT TECHSYSTEMS OPERATIONS LLC
ATK COMMERCIAL AMMUNITION COMPANY INC.
ATK COMMERCIAL AMMUNITION HOLDINGS COMPANY, INC.
ATK LAUNCH SYSTEMS INC.
ATK SPACE SYSTEMS INC.
CALIBER COMPANY
EAGLE INDUSTRIES UNLIMITED, INC.
EAGLE MAYAGUEZ, LLC
EAGLE NEW BEDFORD, INC.
FEDERAL CARTRIDGE COMPANY
SAVAGE ARMS, INC.
SAVAGE RANGE SYSTEMS, INC.
SAVAGE SPORTS CORPORATION
SAVAGE SPORTS HOLDINGS, INC.
BEE STINGER, LLC
BOLLÉ AMERICA, INC.
BOLLÉ INC.
BUSHNELL GROUP HOLDINGS, INC.
BUSHNELL HOLDINGS, INC.
BUSHNELL INC.
DOUBLE BULL ARCHERY, INC.
GOLD TIP, LLC
MICHAELS OF OREGON CO.
MIKE’S HOLDING COMPANY
MILLETT INDUSTRIES
NIGHT OPTICS USA, INC.
OLD WSR, INC.
OPT HOLDINGS, INC.
PRIMOS, INC.
SERENGETI EYEWEAR, INC.
STONEY POINT PRODUCTS INC.
TASCO HOLDINGS, INC.
TASCO OPTICS CORPORATION
 

By:  
/s/ Scott Chaplin
   
Name:  
Scott Chaplin
   
Title:
Senior Vice President, General Counsel and Secretary

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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BANK OF AMERICA, N.A., as
Administrative Agent
              By:  
/s/ Robert Rittelmeyer
   
Name:  
Robert Rittelmeyer
   
Title:
Vice President

 
 
 

 
Incremental Term Facility Supplement
 
 

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BANK OF AMERICA, N.A.
              By:  
/s/ Kenneth Beck
   
Name:  
Kenneth Beck
   
Title:
Director

 
 

 
Incremental Term Facility Supplement
 
 

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WELLS FARGO BANK, N.A.
              By:   
/s/ Scott Santa Cruz
   
Name:  
Scott Santa Cruz
   
Title:
Managing Director

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
              By:  
/s/ Thomas J. Sterr
   
Name:   
Thomas J. Sterr
   
Title:
Authorized Signatory

 
 

 
 
Incremental Term Facility Supplement
 
 

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JPMORGAN CHASE BANK, N.A.
              By:   
/s/ Bruce S. Borden
   
Name:   
Bruce S. Borden
   
Title:
Executive Director

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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SUNTRUST BANK
              By:  
/s/ David Simpson
   
Name:   
David Simpson
   
Title:
Vice President

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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U.S. BANK NATIONAL ASSOCIATION
              By:  
/s/ Andrew Beckman
   
Name:   
Andrew Beckman
   
Title:
Vice President

 
 
 
 
Incremental Term Facility Supplement
 
 

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SUMITOMO MITSUI BANKING CORPORATION
              By:  
/s/ David W. Kee
   
Name:   
David W. Kee
   
Title:
Managing Director

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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PNC BANK, NATIONAL ASSOCIATION
              By:  
/s/ Michael J. Cortese
   
Name:   
Michael J. Cortese
   
Title:
Vice President

 
 
 

Incremental Term Facility Supplement
 
 

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KEYBANK NATIONAL ASSOCIATION
              By:  
/s/ Thomas A. Crandell
   
Name:   
Thomas A. Crandell
   
Title:
Senior Vice President

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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FIFTH THIRD BANK
              By:  
/s/ Susan Waters
   
Name:   
Susan Waters
   
Title:
Vice President

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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COMERICA BANK
              By:  
/s/ Mark J. Leveille
   
Name:   
Mark J. Leveille
   
Title:
Vice President

 
 
 
 
 
Incremental Term Facility Supplement
 
 

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SCHEDULE I
TO
INCREMENTAL TERM FACILITY SUPPLEMENT

Tranche A-1 Incremental Tem Loan Lender
Incremental Term Commitment
Bank of America, N.A.
$20,000,000.00
Wells Fargo Bank, N.A.
$20,000,000.00
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
$15,000,000.00
JPMorgan Chase Bank, N.A.
$15,000,000.00
SunTrust Robinson Humphrey, Inc.
$15,000,000.00
U.S. Bank National Association
$15,000,000.00
Sumitomo Mitsui Banking Corporation
$15,000,000.00
PNC Bank, National Association
$11,000,000.00
KeyBank National Association
$11,000,000.00
Fifth Third Bank
$8,000,000.00
Comerica Bank
$5,000,000.00
Total
$150,000,000.00