Exhibit 10(b)

 

 

 

                FIRST AMENDMENT dated as of September 29, 2000 (this
"Amendment"), to the Credit Agreement dated as of April 20, 2000 (the "Credit
Agreement") among BERGEN BRUNSWIG CORPORATION (the "Company") BERGEN BRUNSWIG
DRUG COMPANY, PHARMERICA, INC., the other BORROWING SUBSIDIARIES party hereto,
the LENDERS party hereto, and THE CHASE MANHATTAN BANK, as Administrative Agent.

   

                A.         Pursuant to the Credit Agreement, the Lenders and the
Issuing Banks have extended credit to the Company and the Borrowing
Subsidiaries, and have agreed to extend credit to the Company and the Borrowing
Subsidiaries, in each case pursuant to the terms and subject to the conditions
set forth therein.

                B.         The Company has informed the Administrative Agent
that it seeks an amendment of the Credit Agreement as set forth herein.

                C.         The Required Lenders are willing to agree to such
amendment pursuant to the terms and subject to the conditions set forth herein.

                D.         Each capitalized term used and not otherwise defined
herein shall have the meaning assigned to such term in the Credit Agreement.

                Accordingly, in consideration of the mutual agreements herein
contained and other good and valuable consideration, the sufficiency and receipt
of which are hereby acknowledged, the parties hereto agree as follows:

                                SECTION 1.         Amendments to the Credit
Agreement.

 

                (a)         The definition of "Consolidated Cash Interest
Expense" in Section 1.01 of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

     

                                ""Consolidated Cash Interest Expense" means, for
any period, the excess of (a) the sum of (i) the interest expense (including
imputed interest expense in respect of Capital Lease Obligations and including
all distributions in respect of the Trust Preferred) of the Company and the
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP, (ii) any interest accrued during such period in respect of
Indebtedness of the Company or any Subsidiary that is required to be capitalized
rather than included in consolidated interest expense for such period in
accordance with GAAP, (iii) all discount, interest, fees, premiums and other
charges in respect of all Securitizations for such period, plus (iv)  any cash
payments made during such period in respect of obligations referred to in
clause (b)(B) below that were amortized or accrued in a previous period, minus
(b) the sum, to the extent included in such consolidated interest expense for
such period, of (A) non-cash amounts attributable to amortization of financing
costs paid in a previous period, (B) non-cash amounts attributable to
amortization of debt discounts or accrued interest payable in kind for such
period, and (C)  all fees incurred on or prior to the Effective Date in respect
of the financing hereunder and all expenses incurred in connection with the
closing hereunder on the Effective Date. In the event that the Company or any
Subsidiary shall have completed an acquisition or disposition of any material
Person, division or business unit since the beginning of the relevant period,
Consolidated Cash Interest Expense shall be determined for such period on a pro
forma basis as if such acquisition or disposition, and any related incurrence or
repayment of Indebtedness, had occurred at the beginning of such period. For
periods including fiscal quarters ending prior to the Effective Date,
Consolidated Cash Interest Expense for such periods shall be deemed to be the
amounts set forth on Schedule 1.01, as adjusted to give pro forma effect to any
acquisition or disposition that occurred since the beginning of the relevant
period by an increase or decrease, as appropriate, in Consolidated Cash Interest
Expense equal to the actual amount attributable to the Person or assets acquired
or disposed of.".

     

                (b)         The definition of "Consolidated EBITDA" in Section
1.01 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

     

                                ""Consolidated EBITDA" means, for any period,
Consolidated Net Income for such period plus (a) without duplication and to the
extent deducted in determining such Consolidated Net Income, the sum of
(i) consolidated interest expense for such period, (ii) consolidated income tax
expense for such period, (iii) all amounts attributable to depreciation and
amortization for such period, (iv) any special one-time or extraordinary
non-cash charges for such period (except that such add back for charges against
the receivables of PharMerica and Stadtlander Operating Company, L.L.C., and
their subsidiaries for the quarter ended September 30, 1999, shall be limited to
$40,596,000), and (v) any LIFO adjustment (if negative to earnings) or charge
for such period, and minus (b) without duplication and to the extent included in
determining such Consolidated Net Income, any extraordinary gains for such
period and any LIFO adjustment (if positive to earnings) or credit, all
determined on a consolidated basis in accordance with GAAP; provided that there
shall be added back to Consolidated EBITDA $66,700,000 of the provision for
accounts receivable reported in the Company's financial statements for its
fourth fiscal quarter of 2000. In the event that the Company or any Subsidiary
shall have completed an acquisition or disposition of any material Person,
division or business unit since the beginning of the relevant period,
Consolidated EBITDA shall be determined for such period on a pro forma basis as
if such acquisition or disposition, and any related incurrence or repayment of
Indebtedness, had occurred at the beginning of such period. For periods
including fiscal quarters ending prior to the Effective Date, Consolidated
EBITDA for such periods shall be deemed to be the amounts set forth on
Schedule 1.01, as adjusted to give pro forma effect to any acquisition or
disposition that occurred since the beginning of the relevant period by an
increase or decrease, as appropriate, in Consolidated EBITDA equal to the actual
amount attributable to the Person or assets acquired or disposed of.".

     

                (c)         The definition of "Consolidated EBITDAR" in Section
1.01 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

     

                                ""Consolidated EBITDAR" means, for any period,
Consolidated EBITDA for such period plus rental payments in respect of real
property, delivery equipment and pharmacy equipment of the Company and the
Subsidiaries for such period (other than under capital leases), determined on a
consolidated basis in accordance with GAAP. For periods including fiscal
quarters ending prior to the Effective Date, Consolidated EBITDAR shall be
deemed to be the amounts set forth on Schedule 1.01, as adjusted to give pro
forma effect to any acquisition or disposition that occurred since the beginning
of the relevant period by an increase or decrease, as appropriate, in
Consolidated EBITDAR equal to the actual amount attributable to the Person or
assets acquired or disposed of.".

     

                (d)         The definition of "Consolidated Net Worth" in
Section 1.01 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:

     

                                ""Consolidated Net Worth" means, on any date,
consolidated shareholders' equity of the Company and the Subsidiaries shown on
the consolidated balance sheet of the Company and the Subsidiaries as of such
date in accordance with GAAP; provided that (i) up to an aggregate amount of
$525,000,000 of charges against goodwill associated with PharMerica reported in
Company's financial statements for its fourth fiscal quarter of 2000 may be
added back in the calculation of Consolidated Net Worth and (ii) to the extent
deducted in determining Consolidated Net Worth, up to an aggregate amount of
$66,700,000 of the provision for accounts receivable may be added back in
calculating Consolidated Net Worth.".

     

                (e)         The definition of "Permitted Investments" in Section
1.01 of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

     

                                ""Permitted Investments" means:

   

                (a)         direct obligations of, or obligations the principal
of and interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America), in each case
maturing within one year from the date of acquisition thereof;

         

                (b)         investments in commercial paper maturing within 270
days from the date of acquisition thereof and having, at such date of
acquisition, the highest credit rating obtainable from S&P or from Moody's
(within which there may be sub-categories or gradations indicating relative
standing), and investments in master notes that are rated (or that have been
issued by an issuer that is rated with respect to a class of short-term debt
obligations, or any security within that class, that is comparable in priority
and security with said master note) by S&P or Moody's in the highest rating
categories for short-term debt obligations (within which there may be
sub-categories or gradations indicating relative standing);

         

                (c)         investments in certificates of deposit, banker's
acceptances and time deposits maturing within 180 days from the date of
acquisition thereof issued or guaranteed by or placed with, and money market
deposit accounts issued or offered by, any domestic office of any commercial
bank organized under the laws of the United States of America or any State
thereof which has a combined capital and surplus and undivided profits of not
less than $500,000,000;

         

                (d)         fully collateralized repurchase agreements with a
term of not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria described in
clause (c) above (or subsidiaries or Affiliates of such financial institutions);
and

         

                (e)         money market funds.".

 

                (f)         Section 6.05 of the Credit Agreement is hereby
amended by inserting the following language at the end thereof:

   

"Notwithstanding the foregoing limitation, the Company may sell one or more
Subsidiaries or all or any portion of the assets of such Subsidiaries for
consideration not less than the fair market value thereof in a transaction (an "
Excluded Transaction") in which less than 90% of the consideration consists of
cash, provided that (i) the Subsidiary, business unit or assets being sold in
each Excluded Transaction do not contribute in excess of $1,000,000 per year in
EBITDA to the Company and (ii) the net book value of the assets being sold is
less than $10,000,000 per Excluded Transaction; provided further that the
aggregate net book value of the assets sold in all transactions effected in
reliance on this sentence shall not exceed $40,000,000. Any Equity Interests
received pursuant to the previous sentence shall be treated as a Permitted
Investment (and shall not be subject to the limitations set forth in Sections
6.04(k) and (l)), provided that such Equity Interests are pledged to the
Collateral Agent for the benefit of the Secured Parties as collateral for the
payment and performance of the obligations of the Borrowers under this
Agreement.".

 

                                SECTION 2.         Representations and
Warranties. The Company represents and warrants to the Administrative Agent and
the Lenders that:

 

                (a)         This Amendment has been duly executed and delivered
by it and constitutes its legal, valid and binding obligation enforceable
against it in accordance with its terms, except as enforceability may be limited
by bankruptcy, insolvency, moratorium, reorganization or other similar laws
affecting creditors' rights generally and except as enforceability may be
limited by general principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at law).

     

                (b)         Before and after giving effect to this Amendment,
the representations and warranties set forth in Article III of the Credit
Agreement are true and correct in all material respects with the same effect as
if made on the date hereof, except to the extent such representations and
warranties expressly relate to an earlier date.

     

                (c)         After giving effect to this Amendment, no Default or
Event of Default shall have occurred and be continuing.

 

                                SECTION 3.         Effectiveness. This Amendment
shall become effective as of the date set forth above on the date (the
"Amendment Effective Date") that the following conditions are satisfied: (a) the
Administrative Agent shall have received the Amendment Fee and (b) the
Administrative Agent or its counsel shall have received counterparts of this
Amendment that, when taken together, bear the signatures of the Company and the
Required Lenders.

 

                                SECTION 4.         Amendment Fee. The Company
agrees to pay to each Lender that executes and delivers a copy of this Amendment
to the Administrative Agent (or its counsel) on or prior to 12:00 noon on
October 20, 2000 an amendment fee (the "Amendment Fee") in an amount equal to
0.075% of such Lender's Revolving Commitment (whether used or unused) and
outstanding Term Loans, in each case as of the Amendment Effective Date;
provided that the Company shall have no liability for any such amendment fee if
this Amendment does not become effective. The Amendment Fee shall be payable in
immediately available funds on the Amendment Effective Date. Once paid, the
Amendment Fee shall not be refundable.

 

                                SECTION 5.         Effect of Amendment. Except
as expressly set forth herein, this Amendment shall not by implication or
otherwise limit, impair, constitute a waiver of, or otherwise affect the rights
and remedies of the Lenders, the Issuing Banks, the Collateral Agent or the
Administrative Agent, under the Credit Agreement or any other Loan Document, and
shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Credit
Agreement or any other Loan Document, all of which are ratified and affirmed in
all respects and shall continue in full force and effect. Nothing herein shall
be deemed to entitle the Company to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations,
covenants or agreements contained in the Credit Agreement or any other Loan
Document in similar or different circumstances. This Amendment shall constitute
a "Loan Document" for all purposes of the Credit Agreement and the other Loan
Documents.

 

                                SECTION 6.         Counterparts. This Amendment
may be executed in any number of counterparts and by different parties hereto in
separate counterparts, each of which when so executed and delivered shall be
deemed an original, but all such counterparts together shall constitute but one
and the same instrument. Delivery of any executed counterpart of a signature
page of this Amendment by facsimile transmission shall be as effective as
delivery of a manually executed counterpart hereof.

 

                                SECTION 7.         Applicable Law. THIS
AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK.

 

                                SECTION 8.         Headings. The headings of
this Amendment are for purposes of reference only and shall not limit or
otherwise affect the meaning hereof.

 

 

 

--------------------------------------------------------------------------------

 

 

 

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

 

 

 

 

BERGEN BRUNSWIG CORPORATION,

                 

by

/s/

Eric Schmitt

--------------------------------------------------------------------------------

   

Name:

Eric Schmitt

   

Title:

VP, Corporate Treasurer

                 

BERGEN BRUNSWIG DRUG COMPANY,

                 

by

/s/

Eric Schmitt

--------------------------------------------------------------------------------

   

Name:

Eric Schmitt

   

Title:

VP, Corporate Treasurer

                 

PHARMERICA, INC.,

                 

by

/s/

Eric Schmitt

--------------------------------------------------------------------------------

   

Name:

Eric Schmitt

   

Title:

VP, Corporate Treasurer

                 

THE CHASE MANHATTAN BANK,
individually and as Administrative Agent,
Collateral Agent and Issuing Bank,

                 

by

/s/

Bruce Borden

--------------------------------------------------------------------------------

   

Name:

Bruce Borden

   

Title:

Vice President

               

--------------------------------------------------------------------------------

Signature Page to First
Amendment to Bergen Brunswig
Corporation Credit Agreement

 

 

AMSOUTH BANK,

                 

by

/s/

Kevin R. Rogers

--------------------------------------------------------------------------------

   

Name:

Kevin R. Rogers

   

Title:

Attorney-In-Fact

                 

BANK ONE, N.A.

                 

by

/s/

Stephanie A. Mack

--------------------------------------------------------------------------------

   

Name:

Stephanie A. Mack

   

Title:

Commercial Banking Officer

                 

THE BANK OF NOVA SCOTIA,

                 

by

/s/

R.P. Reynolds

--------------------------------------------------------------------------------

   

Name:

R.P. Reynolds

   

Title:

Director

                 

THE CIT GROUP/BUSINESS CREDIT, INC.,

                 

by

/s/

Patrick Lee

--------------------------------------------------------------------------------

   

Name:

Patrick Lee

   

Title:

Vice President

                 

CITIZENS BUSINESS CREDIT COMPANY,
a division of Citizens Leasing Corp.,

                 

by

/s/

Vincent P. O' Leary

--------------------------------------------------------------------------------

   

Name:

Vincent P. O' Leary

   

Title:

Senior Vice President

               

 

 

COMERICA BANK,

                 

by

/s/

David Weismiller

--------------------------------------------------------------------------------

   

Name:

David Weismiller

   

Title:

Corporate Banking Officer

         

BANKERS TRUST COMPANY,

                 

by

/s/

Mary Jo Jolly

--------------------------------------------------------------------------------

   

Name:

Mary Jo Jolly

   

Title:

Assistant Vice President

                 

DIME COMMERICAL CORP.,

                 

by

/s/

Dan Bueno

--------------------------------------------------------------------------------

   

Name:

Dan Bueno

   

Title:

Assistant Treasurer

                 

FLEET NATIONAL BANK,

                 

by

/s/

Carol P. Castle

--------------------------------------------------------------------------------

   

Name:

Carol P. Castle

   

Title:

Senior Vice President

                 

FOOTHILL INCOME TRUST, L.P.,

                 

by

/s/

M.P. Sadilek

--------------------------------------------------------------------------------

   

Name:

M.P. Sadilek

   

Title:

Senior Vice President

                 

FOOTHILL INCOME TRUST II, L.P.,

                 

by

/s/

M.E. Stearns

--------------------------------------------------------------------------------

   

Name:

M.E. Stearns

   

Title:

Managing Member of FIT II

     

GP, LLC, its general partner

               

 

 

FOOTHILL CAPITAL CORPORATION,

                 

by

/s/

M.P. Sadilek

--------------------------------------------------------------------------------

   

Name:

M.P. Sadilek

   

Title:

Senior Vice President

                 

GMAC COMMERCIAL CREDIT LLC

                 

by

/s/

Sam Cirelli

--------------------------------------------------------------------------------

   

Name:

Sam Cirelli

   

Title:

Executive Vice President

                 

HELLER FINANCIAL, INC.,

                 

by

/s/

Albert J. Forzano

--------------------------------------------------------------------------------

   

Name:

Albert J. Forzano

   

Title:

Vice President

                 

IBJ WHITEHALL BUSINESS CREDIT CORPORATION

                 

by

/s/

Edward A. Jesser

--------------------------------------------------------------------------------

   

Name:

Edward A. Jesser

   

Title:

Senior Vice President

                 

LASALLE BUSINESS CREDIT, INC.,

                 

by

/s/

Michael Richmond

--------------------------------------------------------------------------------

   

Name:

Michael Richmond

   

Title:

Senior Vice President

                 

MELLON BANK, N.A.,

                 

by

/s/

Timothy K. Turner

--------------------------------------------------------------------------------

   

Name:

Timothy K. Turner

   

Title:

Senior Vice President

               

 

 

NATEXIS BANQUE,

                 

by

/s/

Gary Kania

--------------------------------------------------------------------------------

   

Name:

Gary Kania

   

Title:

Vice President

                 

by

/s/

Frank H. Madden, Jr.

--------------------------------------------------------------------------------

   

Name:

Frank H. Madden, Jr.

   

Title:

Vice President & Group Manager

                 

NATIONAL CITY BANK OF PENNSYLVANIA,

                 

by

/s/

David G. Hammon

--------------------------------------------------------------------------------

   

Name:

David G. Hammon

   

Title:

Vice President

                 

ORIX BUSINESS CREDIT, INC.,

                 

by

/s/

Michael J. Cox

--------------------------------------------------------------------------------

   

Name:

Michael J. Cox

   

Title:

Senior Vice President

                 

PNC BUSINESS CREDIT,

                 

by

/s/

Thomas Stoltz

--------------------------------------------------------------------------------

   

Name:

Thomas Stoltz

   

Title:

Vice President

                 

JACKSON NATIONAL LIFE
INSURANCE COMPANY, INC.
By: PPM Finance, Inc. as its Attorney-in-Fact

                 

by

/s/

Michael Molenda

--------------------------------------------------------------------------------

   

Name:

Michael Molenda

   

Title:

Vice President

               

 

 

THE PROVIDENT BANK,

                 

by

/s/

Jose V. Garde

--------------------------------------------------------------------------------

   

Name:

Jose V. Garde

   

Title:

Vice President

                 

SIEMENS FINANCIAL SERVICES, INC.,

                 

by

/s/

Frank Amodio

--------------------------------------------------------------------------------

   

Name:

Frank Amodio

   

Title:

Vice President - Credit

                 

TRANSAMERICA BUSINESS CREDIT
CORPORATION

                 

by

/s/

Perry Vavoules

--------------------------------------------------------------------------------

   

Name:

Perry Vavoules

   

Title:

Senior Vice President

                 

WACHOVIA BANK, N.A.

                 

by

/s/

Eero H. Maki

--------------------------------------------------------------------------------

   

Name:

Eero H. Maki

   

Title:

Vice President

                 

BOEING CAPITAL CORPORATION,

                 

by

/s/

Daniel O. Anderson

--------------------------------------------------------------------------------

   

Name:

Daniel O. Anderson

   

Title:

Vice President

                 

JOHN HANCOCK LIFE INSURANCE COMPANY

                 

by

/s/

Stephen J. Blewitt

--------------------------------------------------------------------------------

   

Name:

Stephen J. Blewitt

   

Title:

Managing Director

               

 

 

JOHN HANCOCK VARIABLE LIFE
INSURANCE COMPANY,

                 

by

/s/

Stephen J. Blewitt

--------------------------------------------------------------------------------

   

Name:

Stephen J. Blewitt

   

Title:

Authorized Signatory

                 

INVESTORS PARTNER LIFE
INSURANCE COMPANY,

                 

by

/s/

Stephen J. Blewitt

--------------------------------------------------------------------------------

   

Name:

Stephen J. Blewitt

   

Title:

Authorized Signatory

                 

TEXTRON FINANCIAL CORPORATION,

                 

by

/s/

Stuart

--------------------------------------------------------------------------------

   

Name:

Stuart

   

Title:

Managing Director