Exhibit 10.1

 

AMENDMENT AND CONFIRMATION AGREEMENT

 

This AMENDMENT AND CONFIRMATION AGREEMENT (this “Agreement”) is made and entered
into as of June 30, 2011, by and among ATLANTIC TELE-NETWORK, INC., a Delaware
corporation (“Borrower”), each of the subsidiaries of Borrower identified as
guarantors on the signature pages hereto (individually, a “Guarantor” and,
collectively, the “Guarantors”; and together with Borrower, individually a “Loan
Party” and, collectively, the “Loan Parties”), COBANK, ACB, as Administrative
Agent (“Administrative Agent”), and each of the financial institutions executing
this Agreement and identified as a Lender on the signature pages hereto (the
“Lenders”).

 

RECITALS

 

WHEREAS, Borrower, the Guarantors and the Lenders have entered into that certain
Second Amended and Restated Credit Agreement, dated as of September 30, 2010 (as
further amended, modified, supplemented, extended or restated from time to time,
the “Credit Agreement”); and

 

WHEREAS, Borrower has requested and the Lenders have agreed, subject to the
terms and conditions provided herein, to certain amendments with respect to the
Loan Documents as more fully described herein.

 

NOW, THEREFORE, in consideration of the foregoing and the agreements set forth
in this Agreement, each of Borrower, the Guarantors and the Lenders hereby
agrees as follows:

 

SECTION 1.  Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to them in the Credit Agreement.

 

SECTION 2.  Amendments to Credit Agreement.  In reliance on the representations
and warranties of Borrower and the Guarantors contained in this Agreement and in
connection with the request of Borrower for the amendments provided herein and
subject to the effectiveness of this Agreement as described below, the Credit
Agreement is hereby amended as set forth below.

 

(A)            Subsection 4.1.  Subsection 4.1 of the Credit Agreement is hereby
amended by amending and restating it in its entirety, as follows:

 

4.1           Total Leverage Ratio.  Commencing on the June 30, 2011, Borrower
shall maintain at all times, measured at each fiscal quarter end, a Total
Leverage Ratio of less than or equal to 3.0:1.0; provided, however, Borrower
will have 30 days after the applicable reporting date to cure any default under
this Subsection 4.1 by reducing the Indebtedness of Borrower on a consolidated
basis solely through an equity issuance.

 

(B)            Subsection 10.1.  Subsection 10.1 of the Credit Agreement is
hereby amended by amending and restating the definition of “Fixed Charges” in
its entirety, as follows:

 

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“Fixed Charges” means the sum of (A) cash interest expense, (B) scheduled
principal payments to be made on Indebtedness, (C) capital expenditures
(excluding (i) capital expenditures acquired pursuant to any Capital Lease,
(ii) capital expenditures funded through any cash equity investment made in
Borrower, (iii) Permitted Acquisitions and Investments that are classified as
capital expenditures, (iv) capital expenditures constituting any reinvestment of
the Net Proceeds of any Asset Disposition to the extent such reinvestment is
permitted under Subsections 1.7(B) and (C), (v) capital expenditures
constituting the purchase price of equipment that is purchased substantially
contemporaneously with the trade in of existing equipment to the extent that the
gross amount of such purchase price is reduced by a credit granted by the seller
of such equipment for the equipment being traded in at or about such time, and
(vi) up to $40,000,000 in the aggregate of acquisition integration and upgrade
capital expenditures made at AWCC or any of its wholly-owned Subsidiaries in
connection with the Verizon Acquisition on or after April 26, 2010 through and
including March 31, 2012), (D) cash income taxes, and (E) any cash dividends and
distributions, in each case, measured for the then most recently completed four
fiscal quarters.

 

SECTION 3.  Amendments to April Amendment.  In reliance on the representations
and warranties of Borrower and the Guarantors contained in this Agreement and in
that certain Amendment, Consent and Confirmation Agreement (the
“April Amendment”), dated as of April 1, 2011, by and among Borrower, the
Guarantors party thereto, Administrative Agent and the Lenders party thereto)
and in connection with the request of Borrower for the amendments provided
herein and in the April Amendment and subject to the effectiveness of this
Agreement as described below, the April Amendment is hereby amended as set forth
below:

 

(A)            Clauses I of the second paragraph of Section 2 of the
April Amendment is hereby deleted in its entirety.

 

(B)            Clause II of the second paragraph of Section 2 of the
April Amendment is hereby amended and restated in its entirety to read as
follows:

 

(II) do not contain or incorporate any term, condition or provision (other than
the BDC Restructuring Transactions) which is expressly prohibited by the Credit
Agreement or the other Loan Documents and is materially adverse to the interests
of the Administrative Agent or any Lender,

 

(C)            Clauses (C), (D) and (F) of the second paragraph of Section 2 of
the April Amendment are each hereby amended to replace the reference to “thirty
(30) days” with “ninety (90) days”.

 

(D)            Clause (E) of the second paragraph of Section 2 of the
April Amendment is hereby amended and restated to read as follows:

 

(E) within ninety (90) days of the effective date of the Closing Date BDC
Restructuring (or such later date as Administrative Agent shall consent to in
writing in its sole discretion), Borrower will delivers to Administrative Agent
amendments and other modifications to the governing documents of Bermuda
Holdings removing the consent

 

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requirement of the directors of Bermuda Holdings with respect to a transfer of
the ownership interests of Bermuda Holdings owned by Borrower and pledged to the
Lenders,

 

(E)            Clause (G) of the second paragraph of Section 2 of the
April Amendment is hereby amended and restated to read as follows:

 

(G)           Borrower will use commercially reasonable efforts to deliver to
Administrative Agent within ninety (90) days of the effective date of the
Closing Date BDC Restructuring Documents (or such later date as Administrative
Agent shall consent to in writing in its sole discretion) the original notes and
loan agreement (in the case of any portions of the Islandcom Loans that are
noteless) evidencing the Islandcom Loans, an original allonge for each original
note (if any) evidencing such loans, and a list of, and to the extent requested
by Administrative Agent, copies of all other agreements, instruments,
certificates, opinions and other documents executed and delivered in connection
with any of the loan or security documents subject to the Collateral Assignment
Agreement referred to in clause (F); provided that, if Borrower is unable to
obtain any such original notes or loan agreements evidencing the Islandcom Loans
using commercially reasonable efforts, Borrower will deliver to Administrative
Agent a copy of such fully executed note or loan agreement together with an
original affidavit certifying that such copy is true, complete and correct and
that the original of such note or loan agreement is missing, in form and
substance reasonably acceptable to Administrative Agent.

 

SECTION 4.  This Agreement shall not constitute a novation of the Credit
Agreement or any other Loan Document.  Except as expressly provided in this
Agreement, the execution and delivery of this Agreement does not and will not
amend, modify or supplement any provision of, or constitute a consent to or a
waiver of any noncompliance with the provisions of, the Loan Documents, and the
Loan Documents shall remain in full force and effect.

 

SECTION 5.  Each of the Loan Parties hereby represents and warrants to the
Lenders as follows:

 

(A)          Such Loan Party has the right and power, and has taken all
necessary action to authorize it, to execute, deliver and perform this Agreement
in accordance with its terms.  This Agreement has been duly executed and
delivered by such Loan Party and is a legal, valid and binding obligation of it,
enforceable against it in accordance with its terms.

 

(B)          The execution, delivery and performance of this Agreement in
accordance with its terms do not and will not, by the passage of time, the
giving of notice or otherwise,

 

(1)            require any Governmental Approval (except as previously obtained)
or violate any Applicable Law relating to such Loan Party;

 

(2)            conflict with, result in a breach of or constitute a default
under the organizational documents of such Loan Party, any material provision of
any indenture,

 

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agreement or other instrument to which it is a party or by which it or any of
its properties may be bound or any Governmental Approval relating to it; or

 

(3)            result in or require the creation or imposition of any Lien
(except as permitted by the Loan Documents) upon or with respect to any property
now owned or hereafter acquired by such Loan Party.

 

(C)          The representations and warranties of such Loan Party set forth in
the Loan Documents are true and correct in all material respects as of the date
hereof as if made on the date hereof (except to the extent any such
representation or warranty is expressly stated to have been made as of a
specific date, in which case such representations or warranty shall be true and
correct as of such specified date).

 

(D)          No Event of Default under the Loan Documents has occurred and is
continuing as of this date.

 

(E)           The amendments and other modifications to the Amended and Restated
Transition Services Agreement between Cellco Partnership d/b/a Verizon Wireless
and Borrower  dated as of March 30, 2010 set forth in the Amendment Number 1 to
Amended and Restated Transition Services Agreement between Cellco Partnership
d/b/a Verizon Wireless and Borrower on and as of January 27, 2011 are not,
individually or in the aggregate, materially adverse to the Administrative Agent
or any Lender and would not, individually or in the aggregate, otherwise have a
Material Adverse Effect.

 

SECTION 6.  Borrower hereby confirms and agrees that (a), other than as
expressly provided herein, each Security Document is and shall continue to be in
full force and effect, and (b) the obligations secured by each such document
include any and all obligations of the Loan Parties to the Secured Parties under
the Credit Agreement.

 

SECTION 7.  Each of the Guarantors hereby confirms and agrees that (a) its
guarantee contained in the Credit Agreement and each Security Document to which
it is a party is and shall continue to be in full force and effect, and (b) the
obligations guaranteed or secured by each such applicable document include any
and all obligations of the Loan Parties to the Secured Parties under the Credit
Agreement.

 

SECTION 8.  This Agreement shall become effective as of the date of, and shall
bind all parties only upon, the satisfaction by Borrower or waiver by
Administrative Agent of the following conditions precedent (such date, the
“Effective Date”):

 

(A)            Amendment Agreement.  Administrative Agent shall have received
this Agreement duly executed by Borrower, each Loan Party, and Requisite
Lenders;

 

(B)            Pro Forma Compliance Certificate.  Administrative Agent shall
have received a fully and properly completed pro forma Compliance Certificate
(giving effect to the amendments contemplated hereby), signed by two of the
chief executive officer, the chief financial officer and the chief accounting
officer of Borrower, including Indebtedness as of the Effective Date and the
previous four full fiscal quarters.

 

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(C)            Representations and Warranties.  The representations and
warranties of each Loan Party contained in this Agreement or any other Loan
Document to which it is a party shall be true and correct in all material
respects on and as of the date hereof, as though made on and as of the date
hereof (except to the extent any such representation or warranty is expressly
stated to have been made as of a specific date, in which case such
representations or warranty shall be true and correct as of such specified
date).

 

(D)            Material Adverse Change.  Since December 31, 2010, there shall
not have occurred any event or condition affecting the Loan Parties, which
individually or in the aggregate has had or could reasonably be expected to have
a Material Adverse Effect.

 

(E)            Payment of Costs and Expenses.  Borrower shall have paid to
Administrative Agent, all invoiced and reasonable out-of-pocket costs and
expenses incurred by Administrative Agent, including, without limitation, the
reasonable fees and expenses of counsel retained by Administrative Agent, in
connection with the negotiation, preparation, execution and delivery of this
Agreement and all other instruments and documents contemplated hereby.

 

SECTION 9.  This Agreement may be executed in any number of counterparts and by
the different parties hereto in separate counterparts, each of which when
executed shall be deemed to be an original and shall be binding upon all parties
and their respective permitted successors and assigns, and all of which taken
together shall constitute one and the same agreement.

 

SECTION 10.  This Agreement shall be governed by and shall be construed and
enforced in accordance with all provisions of the Credit Agreement, including
the governing law provisions thereof.

 

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Witness the due execution hereof by the respective duly authorized officers of
the undersigned as of the date first written above.

 

BORROWER:

 

 

 

 

ATLANTIC TELE-NETWORK, INC.

 

 

 

 

 

/s/ Justin D. Benincasa

 

 

Justin D. Benincasa, Chief Financial Officer

GUARANTORS:

 

 

 

 

COMMNET WIRELESS, LLC

 

 

COMMNET FOUR CORNERS, LLC

 

 

COMMNET MIDWEST, LLC

 

 

COMMNET OF ARIZONA, L.L.C.

 

 

GILA COUNTY WIRELESS, LLC

 

 

EXCOMM, L.L.C

 

 

SOVERNET HOLDING CORPORATION

 

 

COMMNET OF NEVADA, LLC

 

 

TISDALE TELEPHONE COMPANY, LLC

 

 

COMMNET OF GEORGIA, LLC

 

 

CHOICE COMMUNICATIONS, LLC

 

 

ALLIED WIRELESS COMMUNICATIONS CORPORATION

 

 

ALLIED WIRELESS COMMUNICATIONS (GA), LLC

 

 

ALLIED WIRELESS COMMUNICATIONS (ID), LLC

 

 

ALLIED WIRELESS COMMUNICATIONS (IL), LLC

 

 

ALLIED WIRELESS COMMUNICATIONS (NC), LLC

 

 

ALLIED WIRELESS COMMUNICATIONS (OH), LLC

 

 

ALLIED WIRELESS COMMUNICATIONS (SC), LLC

 

 

COMMNET NEWCO, LLC

 

 

 

 

 

/s/ Justin D. Benincasa

 

 

Justin D. Benincasa, Treasurer

 

 

 

 

 

SOVERNET, INC.

 

 

NATIONAL MOBILE COMMUNICATIONS CORPORATION

 

 

 

 

 

/s/ Justin D. Benincasa

 

 

Justin D. Benincasa, Chief Financial Officer

 

 

 

 

 

SAL SPECTRUM LLC

 

 

By: Atlantic Tele-Network, Inc., its Sole Member

 

 

 

 

 

/s/ Justin D. Benincasa

 

 

Justin D. Benincasa, Chief Financial Officer

 

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COBANK, ACB, as Administrative Agent and as a Lender

 

 

 

 

 

 

 

 

By:

/s/ John Cole

 

 

 

John Cole

 

 

 

Vice President

 

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BANCO POPULAR DE PUERTO RICO, as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Ian S. Smith

 

 

 

Ian S. Smith

 

 

 

Senior Vice President & Region Manager,

 

 

 

Loans and Credit Administration

 

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BROWN BROTHERS HARRIMAN & CO., as a Lender

 

 

 

 

 

 

 

 

By:

/s/ Scott Meves

 

 

 

Scott Meves

 

 

 

Senior Vice President

 

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FIFTH THIRD BANK, as a Lender

 

 

 

 

 

By:

/s/ Valerie Schanzer

 

 

Valerie Schanzer

 

 

Vice President

 

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RAYMOND JAMES BANK, FSB, as a Lender

 

 

 

 

 

By:

/s/ Joseph A. Ciccolini

 

 

Joseph A. Ciccolini

 

 

Vice President — Senior Corporate

 

 

Banker

 

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TD BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ Marla Willner

 

 

Marla Willner

 

 

Director

 

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UNION BANK, N.A., as a Lender

 

 

 

 

 

By:

/s/ David Hill

 

 

David Hill

 

 

Vice President

 

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AGCHOICE FARM CREDIT FLCA, as a voting participant pursuant to Subsection 8.1(D)
of the Credit Agreement

 

 

 

 

 

By:

/s/ Mark F. Kerstetter

 

Name: Mark F. Kerstetter

 

Title:  Vice President

 

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Farm Credit Services of America, FLCA, as a voting participant pursuant to
Subsection 8.1(D) of the Credit Agreement

 

 

 

 

 

By:

/s/ John Zhang

 

Name: John Zhang

 

Title:  Vice President

 

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AgFirst Farm Credit Bank, as a voting participant pursuant to Subsection 8.1(D)
of the Credit Agreement

 

 

 

 

 

By:

/s/ Bruce B. Fortner

 

Name: Bruce B. Fortner

 

Title:  Vice President

 

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AgStar Financial Services, FLCA, as a voting participant pursuant to Subsection
8.1(D) of the Credit Agreement

 

 

 

 

 

By:

/s/ Troy Mostaert

 

Name: Troy Mostaert

 

Title:  Vice President

 

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Farm Credit Bank of Texas, as a voting participant pursuant to Subsection
8.1(D) of the Credit Agreement

 

 

 

 

 

By:

/s/ Nicholas King

 

Name: Nicholas King

 

Title: Vice President

 

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UNITED FCS, FLCA (d/b/a FCS COMMERCIAL FINANCE GROUP), as a voting participant
pursuant to Subsection 8.1(D) of the Credit Agreement

 

 

 

 

 

By:

/s/ Jeremy Voigts

 

Jeremy Voigts

 

Vice President

 

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GreenStone Farm Credit Services ACA/FLA, as a voting participant pursuant to
Subsection 8.1(D) of the Credit Agreement

 

 

 

 

 

By:

/s/ Jeff Pavlik

 

Name: Jeff Pavlik

 

Title: Vice President

 

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U.S. AgBank, FCB, as a voting participant pursuant to Subsection 8.1(D) of the
Credit Agreement

 

 

 

 

 

By:

/s/ Paul Burdick

 

Name: Paul Burdick

 

Title: Assistant Vice President

 

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