exhibit 10.6

 

FOURTH AMENDMENT

TO

TERM LOAN AND GUARANTY AGREEMENT

This Fourth Amendment to Term Loan and Guaranty Agreement (this “Amendment”) is
entered into as of January 31, 2020, by and among REV GROUP, INC., a Delaware
corporation (the “Borrower”), certain Subsidiaries of the Borrower, as Guarantor
Subsidiaries, the Lenders (as defined in Section 1.1 of the Term Loan Agreement
(as defined below)) party hereto, ALLY BANK (“Ally”), as Administrative Agent
(together with its permitted successors and assigns in such capacity, the
“Administrative Agent”) and as Collateral Agent (together with its permitted
successors and assigns in such capacity, the “Collateral Agent”).

BACKGROUND

The Borrower, the Guarantor Subsidiaries, the Administrative Agent, the
Collateral Agent and the Lenders are parties to a Term Loan and Guaranty
Agreement, dated as of April 25, 2017 (as amended, restated, supplemented or
otherwise modified from time to time, the “Term Loan Agreement”) pursuant to
which the Lenders provided the Borrower with certain financial accommodations.

The Borrower has requested that the Lenders amend the Term Loan Agreement, all
on the terms hereafter set forth, and Lenders are willing to do so on the terms
and conditions hereafter set forth.

NOW, THEREFORE, in consideration of any loan or advance or grant of credit
heretofore or hereafter made to or for the account of the Borrower under the
Term Loan Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which hereby are acknowledged, the parties hereto hereby
agree as follows:

1.Definitions. All capitalized terms not otherwise defined herein shall have the
respective meanings given to them in the Term Loan Agreement.

2.Amendments.  

(a)Section 1.1 of the Term Loan Agreement is hereby amended by inserting the
following defined term in appropriate alphabetical order:

“Fourth Amendment Effective Date” means January 31, 2020.

(b)Section 6.1(j) of the Term Loan Agreement is hereby amended to read in its
entirety as set forth below:

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“(j) the ABL Loans in an aggregate principal amount not to exceed $550,000,000
plus 110% of the aggregate principal amount of any incremental facility made
available under Section 2.23 of the ABL Credit Agreement (as in effect on the
Fourth Amendment Effective Date and after giving effect to the amendment to the
ABL Credit Agreement entered into on such date) after the Fourth Amendment
Effective date (but excluding the incremental facility being made available
under Section 2.23 of the ABL Credit Agreement on or about the Fourth Amendment
Effective Date), and any Permitted Refinancing thereof;”.

(c)The table appearing in Section 6.8 of the Term Loan Agreement is hereby
amended to read in its entirety as set forth below:

Four-Fiscal Quarter Period Ending on or about

Secured Leverage Ratio

January 31, 2020

5.00 to 1.00

April 30, 2020

5.00 to 1.00

July 31, 2020

5.00 to 1.00

October 31, 2020

4.75 to 1.00

January 31, 2021

4.50 to 1.00

April 30, 2021

4.25 to 1.00

July 31, 2021

4.00 to 1.00

October 31, 2021 and the last day of each Fiscal Quarter ending thereafter

3.75 to 1.00

 

3.Consent.  The Requisite Lenders consent to a Restricted Subsidiary of the
Borrower consummating the Acquisition previously identified to the
Administrative Agent and Lenders as “Project Eagle” (the “Project Eagle
Acquisition”) and treating such acquisition as a “Permitted Acquisition” under
the Term Loan Agreement notwithstanding that the Borrower and its Restricted
Subsidiaries will not be in compliance with the Secured Leverage Condition set
forth in sub-clause (vii) of the definition of “Permitted Acquisition”, so long
as the Project Eagle Acquisition satisfies all of the other requirements of the
definition of “Permitted Acquisition”.

4.Conditions of Effectiveness. This Amendment shall become effective (the
“Fourth Amendment Effective Date”) upon the Administrative Agent’s receipt of a
copy of this Amendment, executed by the Borrower, the Guarantor Subsidiaries,
the Agents and the Requisite Lenders.

5.Amendment Fee.

The Borrower hereby covenants and agrees that, so long as the Fourth Amendment
Effective Date occurs, it shall pay to each Lender which executes and delivers
to the Administrative Agent (or its designee) a counterpart hereof by the later
to occur of (x) the close of business on the Fourth Amendment Effective Date or
(y) 3:00 p.m. (New York time) on January 31, 2020 (such later date, the “Outside
Date”), a non-refundable cash fee in an amount equal to 25 basis points (0.25%)
of the outstanding principal amount of Term Loans of such Lender, in each case
as same is in effect on the Fourth Amendment Effective Date, which fees

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shall be paid by the Borrower to the Administrative Agent for distribution to
the applicable Lenders not later than the first Business Day following the
Outside Date.

6.Representations and Warranties.  The Borrower and each Guarantor Subsidiary
represents and warrants as follows:

(a)This Amendment has been duly authorized, executed and delivered by the
Borrower and each Guarantor Subsidiary. This Amendment and the Term Loan
Agreement, as amended hereby, constitute legal, valid and binding obligations of
the Borrower and each Guarantor Subsidiary and are enforceable against the
Borrower and each Guarantor Subsidiary in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting the enforcement of creditors’ rights generally or
general principles of equity.

(b)Upon the effectiveness of this Amendment, the Borrower and each Guarantor
Subsidiary hereby reaffirms all covenants made in the Term Loan Agreement as
amended hereby and agrees that, after giving effect to this Amendment, all
representations and warranties (except for those representations and warranties
specifically made as of a prior date) shall be true and correct in all material
respects (or in all respects with respect to any representation or warranty
which by its terms is limited as to materiality, in each case, after giving
effect to such qualification) on and as of the date hereof.

(c)Both immediately before and after giving effect to this Amendment, no Event
of Default or Default has occurred and is continuing.

7.Effect on the Term Loan Agreement.

(a)Upon the effectiveness of this Amendment, each reference in the Term Loan
Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like
import shall mean and be a reference to the Term Loan Agreement as amended
hereby.  This Amendment shall be a Credit Document for all purposes under the
Term Loan Agreement.

(b)Except as specifically amended herein, the Term Loan Agreement, the Pledge
and Security Agreement and all other documents, instruments and agreements
executed and/or delivered in connection therewith as in effect immediately prior
to the effectiveness of this Amendment, shall remain in full force and effect,
and are hereby ratified and confirmed.

(c)Except as specifically set forth herein, the execution, delivery and
effectiveness of this Amendment shall not operate as a waiver of any right,
power or remedy of Agents or Lenders, nor constitute a waiver of any provision
of the Term Loan Agreement, or any other documents, instruments or agreements
executed and/or delivered under or in connection therewith.

8.Governing Law. This Amendment and the rights and obligations of the parties
hereunder shall be governed by, and construed in accordance with, the laws of
the State of New York.

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9.Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

10.Counterparts; Facsimile. This Amendment may be executed by the parties hereto
in one or more counterparts, each of which shall be deemed an original and all
of which when taken together shall constitute one and the same agreement. Any
signature delivered by a party by facsimile or electronic transmission shall be
deemed to be an original signature hereto.

11.Severability.  In case of one or more of the provisions contained in this
Amendment shall be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby.

[Remainder of page left intentionally blank. Signature pages follow.]

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first written above.

REV GROUP, INC., as Borrower

 

 

By:_/s/ Dean J. Nolden_______________________

Name: Dean J. Nolden

Title: Chief Financial Officer & Treasurer

Signature Page to Fourth Amendment – REV Term Loan

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AVERY TRANSPORT INC.
CAPACITY OF TEXAS, INC.

CHAMPION BUS, INC.

COLLINS BUS CORPORATION

COLLINS I HOLDING CORP.

COLLINS INDUSTRIES, INC.

COMPRESSED AIR SYSTEMS, INC.

Revability, Inc.

ELDORADO NATIONAL (CALIFORNIA), INC.

ELDORADO NATIONAL (KANSAS), INC.

E-ONE, INC.

FERRARA FIRE APPARATUS, INC.

FERRARA FIRE APPARATUS HOLDING COMPANY, INC.

FFA ACQUISITION COMPANY, INC.

FFA HOLDCO, INC.

GENERAL COACH AMERICA, INC.

GOLDSHIELD FIBERGLASS, INC.

GOSHEN COACH INC.

HALCORE GROUP, INC.

HORTON ENTERPRISES, INC.

KME GLOBAL, LLC

KME HOLDINGS, LLC

KME RE HOLDINGS, LLC

KOVATCH MOBILE EQUIPMENT CORP.

LANCE CAMPER MFG. CORP.
MOBILE PRODUCTS, INC.

REV AMBULANCE GROUP ORLANDO, INC.

REV FINANCIAL SERVICES LLC

REV INSURANCE SOLUTIONS LLC

REV PARTS, LLC

REV RECREATION GROUP, INC.

REV RECREATION GROUP FUNDING, INC.

REV RENEGADE LLC

REV RENEGADE HOLDINGS CORP.

REV RTC, INC.,

as Guarantor Subsidiaries

 

By:__/s/ Dean J. Nolden___________________________

Name: Dean J. Nolden

Title: Chief Financial Officer & Treasurer

Signature Page to Fourth Amendment – REV Term Loan

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ALLY BANK,

as Administrative Agent, Collateral Agent and a Lender

 

 

By:_/s/ Joseph Skaferowsky_____________

Name: Joseph Skaferowsky

Title:   Authorized Signatory

 

 

Signature Page to Fourth Amendment – REV Term Loan

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TRUIST BANK, FORMERLY KNOWN AS BRANCH BANKING AND TRUST COMPANY, as a Lender

 

 

By:__/s/ Eugene F. Walsh ___________________

Name: Eugene F. Walsh

Title:  Senior Vice President

 

 

Signature Page to Fourth Amendment – REV Term Loan

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WEBSTER BUSINESS CREDIT CORPORATION, as a Lender

 

 

By:__/s/ Arthur Kim ____________________

Name: Arthur Kim

Title:  Duly Authorized Signatory

 

 

 

Signature Page to Fourth Amendment – REV Term Loan

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ing cAPITAL LLC, as a Lender

 

By:_/s/ Marilyn Densel-Fulton ___________

Name: Marilyn Densel-Fulton

Title:  Managing Director

 

 

By:_/s/ Michael Kim___________________

Name: Michael Kim

Title:  Director

 

 

Signature Page to Fourth Amendment – REV Term Loan

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U.S. BANK NATIONAL ASSOCIATION, as a
Lender

 

 

By:__/s/ Thomas P. Chidester _______________

Name: Thomas P. Chidester

Title:  Vice President

 

Signature Page to Fourth Amendment – REV Term Loan