Exhibit 10.2

Published CUSIP Number:                                

 

FIRST AMENDMENT OF CREDIT AGREEMENT

 

Dated as of November 23, 2004

 

among

 

GMH COMMUNITIES, LP

 

as a Borrower,

 

GMH COMMUNITIES TRUST

 

as a Guarantor,

 

THE SUBSIDIARY BORROWERS DEFINED HEREIN

 

as Subsidiary Borrowers

 

BANK OF AMERICA, N.A.,

 

as Administrative Agent, Swing Line Lender

 

and

 

L/C Issuer,

 

and

 

The Other Lenders Party Hereto

 

EUROHYPO AG, NEW YORK BRANCH

 

and

 

JPMORGAN CHASE BANK,

as Co-Syndication Agents

 

BANC OF AMERICA SECURITIES LLC,

 

as

 

Sole Lead Arranger and Sole Book Manager

 

 

 

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FIRST AMENDMENT OF CREDIT AGREEMENT

 

THIS FIRST AMENDMENT OF CREDIT AGREEMENT (this “Amendment”) is entered into to
be effective as of November 23, 2004, by and among GMH COMMUNITIES, LP, a
Delaware limited partnership (“GMH Operating Partnership”), GMH COMMUNITIES
TRUST, a Maryland real estate investment trust (the “Trust”), each Subsidiary of
the Trust that becomes a borrower hereunder pursuant to Section 2.16
(individually, a “Subsidiary Borrower” and collectively, “Subsidiary Borrowers;”
GMH Operating Partnership and Subsidiary Borrowers are individually called a
“Borrower” and collectively called “Borrowers”), each lender from time to time
party hereto (collectively, the “Lenders” and individually, a “Lender”), and
BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C
Issuer.

 

R E C I T A L S

 

A.            Reference is hereby made to that certain Credit Agreement dated as
of November 8, 2004, executed by the Trust, Borrowers, the Lenders defined
therein, and Administrative Agent (as amended, the “Credit Agreement”).

 

B.            Capitalized terms used herein shall, unless otherwise indicated,
have the respective meanings set forth in the Credit Agreement.

 

C.            The Trust, Borrowers, Administrative Agent, and Lenders desire to
modify certain provisions contained in the Credit Agreement, subject to the
terms and conditions set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.             Amendment to the Credit Agreement.

 

(a)           Section 1.01 of the Credit Agreement is hereby amended to delete
the definition of “Applicable Rate” in its entirety and replace such definition
with the following:

 

“Applicable Rate” means the following percentages per annum, based upon the
Leverage Ratio as set forth in the most recent Compliance Certificate received
by Administrative Agent pursuant to Section 6.02(b):

 

Pricing Level

 

Leverage Ratio

 

Eurodollar Rate +
Letters of Credit

 

Base Rate +

 

1

 

≤0.45:1

 

1.50

%

0.625

%

2

 

>0.45:1 but £0.50:1

 

1.625

%

0.875

%

3

 

>0.50:1 but ≤0.55:1

 

1.75

%

1.125

%

4

 

>0.55:1

 

2.00

%

1.375

%

 

 

 

1

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Any increase or decrease in the Applicable Rate resulting from a change in the
Leverage Ratio shall become effective as of the first (1st) Business Day
immediately following the date a Compliance Certificate is delivered pursuant to
Section 6.02(b); provided, however, that if a Compliance Certificate is not
delivered when due in accordance with such Section, then Pricing Level 4 shall
apply as of the first (1st) Business Day after the date on which such Compliance
Certificate was required to have been delivered until and including the first
(1st) Business Day immediately following the date such Compliance Certificate is
actually delivered.  The Applicable Rate in effect from the Closing Date through
the date of delivery of the initial Compliance Certificate delivered pursuant to
Section 6.02(b) shall be determined based upon Pricing Level 2.

 

(b)           Section 4.01(d) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

 

(d)           The Trust shall have completed its initial public offering and
shall have received at least $340,000,000 in gross cash equity.

 

(c)           Section 5.05(b) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

 

(b)           The unaudited consolidated and consolidating balance sheet of the
Companies dated June 30, 2004, and the related consolidated and consolidating
statements of income or operations, shareholders’ equity and cash flows for the
fiscal quarter ended on that date (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein, and (ii) fairly present the financial condition of the
Companies as of the date thereof and their results of operations for the period
covered thereby, subject, in the case of clauses (i) and (ii), to the absence of
footnotes and to normal year-end audit adjustments.

 

(d)           Section 7.10(e) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

 

(e)           Leverage Ratio.  Permit the Leverage Ratio as of the end of any
fiscal quarter of the Trust to be greater than 60%.

 

(e)           Schedule 2.01 of the Credit Agreement is hereby deleted in its
entirety and replaced with Schedule 2.01 attached hereto.

 

(f)            Schedule 2 to Exhibit D of the Credit Agreement is hereby amended
to delete Section V in its entirety and replace such Section with the following:

 

V.            Section 7.10(e) — Total Leverage Ratio.

 

A.

 

Liabilities

 

$

 

 

 

 

 

 

 

 

B.

 

Total Asset Value (See Schedule 1)

 

$

 

 

 

 

 

 

 

 

C.

 

Ratio of V.A. to V.B.

 

 

 

 

 

 

 

 

 

 

 

Maximum Allowed

 

60

%

 

 

2

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2.             Amendments of Credit Agreement and Other Loan Documents.

 

(a)           All references in the Loan Documents to the Credit Agreement shall
henceforth include references to the Credit Agreement as modified and amended by
this Amendment, and as may, from time to time, be further modified, amended,
restated, extended, renewed, and/or increased.

 

(b)           Any and all of the terms and provisions of the Loan Documents are
hereby amended and modified wherever necessary, even though not specifically
addressed herein, so as to conform to the amendments and modifications set forth
herein.

 

3.             Ratifications.  Each Loan Party that is a party hereto (a)
ratifies and confirms all provisions of the Loan Documents as amended by this
Amendment, (b) ratifies and confirms that all guaranties and assurances,
granted, conveyed, or assigned to the Administrative Agent and the Lenders under
the Loan Documents are not released, reduced, or otherwise adversely affected by
this Amendment and continue to guarantee and assure full payment and performance
of the present and future Obligations, and (c) agrees to perform such acts and
duly authorize, execute, acknowledge, deliver, file, and record such additional
documents and certificates as the Administrative Agent or the Lenders may
reasonably request in order to create, preserve and protect those guaranties and
assurances.

 

4.             Representations.  Each Loan Party that is a party hereto
represents and warrants to Lenders that as of the date of this Amendment:
(a) this Amendment has been duly authorized, executed, and delivered by each
such Loan Party; (b) no action of, or filing with, any Governmental Authority is
required to authorize, or is otherwise required in connection with, the
execution, delivery, and performance by each such Loan Party of this Amendment;
(c) the Loan Documents, as amended by this Amendment, are valid and binding upon
each Loan Party that is a party thereto and are enforceable against each Loan
Party in accordance with their respective terms, except as limited by Debtor
Relief Laws and general principles of equity; (d) the execution, delivery, and
performance by each Loan Party that is a party hereto of this Amendment do not
require the consent of any other Person and do not and will not constitute a
violation of any Laws, order of any Governmental Authority, or material
agreements to which any such Loan Party that is a party or by which any such
Loan Party is bound; (e) all representations and warranties in the Loan
Documents are true and correct in all material respects on and as of the date of
this Amendment, except to the extent that (i) any of them speak to a different
specific date, or (ii) the facts on which any of them were based have been
changed by transactions contemplated or permitted by the Credit Agreement; and
(f) both before and after giving effect to this Amendment, no Default or Event
of Default exists.

 

5.             Conditions.  This Amendment shall not be effective unless and
until:

 

(a)           this Amendment is executed by each Borrower, the Trust,
Administrative Agent, and the Lenders;

 

(b)           the representations and warranties in this Amendment are true and
correct in all material respects on and as of the date of this Amendment, except
to the extent that (i) any of them speak to a different specific date, or (ii)
the facts on which any of them were based have been changed by transactions
contemplated or permitted by the Credit Agreement; and

 

 

3

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(c)           both before and after giving effect to this Amendment, no Default
or Event of Default exists.

 

6.             Continued Effect.  Except to the extent amended hereby or by any
documents executed in connection herewith, all terms, provisions, and conditions
of the Credit Agreement and the other Loan Documents, and all documents executed
in connection therewith, shall continue in full force and effect and shall
remain enforceable and binding in accordance with their respective terms.

 

7.             Miscellaneous.  Unless stated otherwise (a) the singular number
includes the plural and vice versa and words of any gender include each other
gender, in each case, as appropriate, (b) headings and captions may not be
construed in interpreting provisions, (c) this Amendment shall be construed —
and its performance enforced — under New York law, (d) if any part of this
Amendment is for any reason found to be unenforceable, all other portions of it
nevertheless remain enforceable, and (e) this Amendment may be executed in any
number of counterparts with the same effect as if all signatories had signed the
same document, and all of those counterparts must be construed together to
constitute the same document.

 

8.             Parties.  This Amendment binds and inures to each of the parties
hereto and their respective successors and permitted assigns.

 

9.             ENTIRETIES.  THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS,
AS AMENDED BY THIS AMENDMENT, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES
ABOUT THE SUBJECT MATTER OF THE CREDIT AGREEMENT AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

 

[Remainder of Page Intentionally Left Blank;

Signature Pages to Follow.]

 

4

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

 

 

GMH OPERATING PARTNERSHIP:

 

 

 

GMH COMMUNITIES, LP, a Delaware limited partnership

 

 

 

 

 

By:

GMH COMMUNITIES GP TRUST,

 

 

a Delaware trust, its General Partner

 

 

 

 

By:

/s/ Gary M. Holloway

 

 

 

 

Gary M. Holloway

 

 

 

Managing Trustee

 

 

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

 

 

 

TRUST:

 

 

 

GMH COMMUNITIES TRUST, a Maryland real estate investment trust

 

 

 

 

 

By:

/s/ Gary M. Holloway

 

 

 

Gary M. Holloway

 

 

President, Chief Executive Officer

 

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

 

 

 

 

 

 

BANK OF AMERICA, N.A., as Administrative Agent

 

 

 

 

 

By:

/s/ Ron Odlozil

 

 

 

Ron Odlozil, Senior Vice President

 

 

 

 

 

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

 

 

 

 

 

 

 

BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

 

 

 

 

 

By:

/s/ Ron Odlozil

 

 

 

Ron Odlozil, Senior Vice President

 

 

 

 

 

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

 

 

 

 

 

 

 

JPMORGAN CHASE BANK, N.A., as a Lender and as a Co-Syndication Agent

 

 

 

 

 

By:

/s/ Donald Shokrian

 

 

 

Name: Donald S. Shokrian

 

 

Title:   Managing Director

 

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

 

 

 

 

 

EUROHYPO AG, NEW YORK BRANCH, as a Lender and as a Co-Syndication Agent

 

 

 

 

 

By:

/s/ David Schwartz

 

 

 

Name: David Schwartz

 

 

Title:   Executive Director

 

 

 

 

By:

/s/ Stephen Cox

 

 

 

Name: Stephen Cox

 

 

Title: Vice President

 

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

 

 

 

 

MERRILL LYNCH CAPITAL CORPORATION, as a Lender

 

 

 

 

 

 

 

By:

/s/ John C. Rowland

 

 

 

Name: John C. Rowland

 

 

Title:   Vice President

 

 

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

 

 

 

 

MORGAN STANLEY BANK, as a Lender

 

 

 

 

 

 

 

By:

/s/ Daniel Twenge

 

 

 

Name: Daniel Twenge

 

 

Title:   Vice President

 

 

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

 

 

 

 

 

DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender

 

 

 

 

 

 

 

By:

/s/ Steven P. Lapham

 

 

 

Name: Steven P. Lapham

 

 

Title:   Managing Director

 

 

 

 

 

 

 

By:

/s/ Brenda Casey

 

 

 

Name: Brenda Casey

 

 

Title:   Vice President

 

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

 

 

 

 

 

BANK MIDWEST, N.A., as a Lender

 

 

 

 

 

By:

/s/ Paul Holewinski

 

 

 

Name: Paul Holewinski

 

 

Title:   Executive Vice President

 

 

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SCHEDULE 2.01

COMMITMENTS
AND APPLICABLE PERCENTAGES

 

Lender

 

Commitment

 

Applicable
Percentage

 

Bank of America, N.A.

 

$

30,000,000

 

20.0

%

Eurohypo AG, New York Branch

 

$

30,000,000

 

20.0

%

JPMorgan Chase Bank, N.A.

 

$

25,000,000

 

16.666666667

%

Deutsche Bank Trust Company Americas

 

$

20,000,000

 

13.333333333

%

Merrill Lynch Capital Corporation

 

$

15,000,000

 

10.0

%

Morgan Stanley Bank

 

$

15,000,000

 

10.0

%

Bank Midwest, N.A.

 

$

15,000,000

 

10.0

%

Total

 

$

150,000,000

 

100.000000000

%

 

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