Exhibit 10.1

 

EXECUTION VERSION

 

THIRD AMENDMENT TO CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT dated as of May 11, 2015 (this “Amendment”) is entered into among EARTHLINK HOLDINGS CORP., a Delaware corporation (the “Borrower”), the Guarantors, the Lenders party hereto and REGIONS BANK, in its capacities as Administrative Agent and Collateral Agent.  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below).

 

RECITALS

 

WHEREAS, the Borrower, the Guarantors, the Lenders and Regions Bank, in its capacities as Administrative Agent and Collateral Agent, entered into that certain Amended and Restated Credit Agreement dated as of May 29, 2013 (as amended, modified, supplemented or extended from time to time, including pursuant to that certain First Amendment to Credit Agreement dated as of December 31, 2013 and that certain Second Amendment to Credit Agreement dated as of November 19, 2014, the “Credit Agreement”);

 

WHEREAS, the Borrower has requested that the Lenders (by act of the Required Lenders) amend the Credit Agreement as set forth below;

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Amendments to Credit Agreement.  The Credit Agreement is hereby amended as follows:

 

(a)                                 Section 6.8 of the Credit Agreement is restated in its entirety to read as follows:

 

Section 6.8                                    Use of Proceeds.  The Credit Parties will use the proceeds of the Credit Extensions for (a) working capital, (b) Permitted Acquisitions, (c) capital expenditures, (d) the refinancing of Indebtedness under the ITC^Deltacom Notes on the Effective Date, (e) the purchase, repurchase, prepayment or redemption of the Senior Secured Notes and the 2019 Notes and (f) other general corporate purposes, in each case not in contravention of Applicable Laws or of any Credit Document.  No portion of the proceeds of any Credit Extension shall be used in any manner that causes such Credit Extension or the application of such proceeds to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System as in effect from time to time or any other regulation thereof or to violate the Exchange Act.

 

(b)                                 Clause (b) of Section 7.12 of the Credit Agreement is restated in its entirety to read as follows:

 

(b)                                 make any prepayment, redemption, defeasance or acquisition for value of (including by way of depositing money or securities with the trustee with respect thereto before due for the purpose of paying when due), or refund, refinance or exchange of, any Funded Debt (other than the Indebtedness under the Credit Documents and Indebtedness permitted under Section 7.1(b)) other than (i) regularly scheduled payments of principal and interest on such Funded Debt, (ii) in connection with (A) a refinancing or refunding permitted hereunder or (B) any prepayment, redemption, defeasance or

 











 

acquisition for value of Funded Debt out of the proceeds of any equity offering of the Borrower and (iii) the purchase, repurchase, prepayment or redemption of Senior Secured Notes and/or those certain 8-7/8% senior notes of the Borrower due 2019 (the “2019 Notes”) issued pursuant to that certain Indenture, dated as of May 17, 2011 between the Borrower, the guarantor parties thereto and Deutsche Bank Trust Company Americas, as Trustee, provided that, with respect to this clause (iii), (A) no Default or Event of Default then exists or would arise after giving effect thereto, (B) such purchase, repurchase, prepayment or redemption is made on or before June 30, 2016, (C) such purchase, repurchase, prepayment or redemption is made using only available and unencumbered cash of the Borrower and/or proceeds of Revolving Loans in an aggregate amount not to exceed $100,000,000, (D) any such purchase, repurchase, prepayment or redemption is made in accordance with the terms of the indentures (and supplements thereto) applicable to the Senior Secured Notes and/or the 2019 Notes, as applicable and (E) after giving effect to such purchase, repurchase, prepayment or redemption on a Pro Forma Basis, the Consolidated Net Total Leverage Ratio does not exceed 3.25:1.0.

 

2.                                      Conditions Precedent.  This Amendment shall be effective upon satisfaction of the following conditions precedent:

 

(a)                                 Receipt by the Administrative Agent of counterparts of this Amendment duly executed by the Borrower, the Guarantors, the Required Lenders and the Administrative Agent;

 

(b)                                 Payment by the Borrower of a fee to each Lender executing this Amendment in an amount equal to 0.10% of such Lender’s Revolving Commitment;

 

(c)                                  Payment by the Borrower to the Administrative Agent and Regions Capital Markets, a division of Regions Bank, all fees due and payable to the Administrative Agent and Regions Capital Markets, a division of Regions Bank, on the date hereof; and

 

(d)                                 Payment by the Borrower of the out-of-pocket costs and expenses of the Administrative Agent and Collateral Agent, including without limitation, the fees and expenses of Moore & Van Allen PLLC.

 

3.                                      Miscellaneous.

 

(a)                                 Each of the Credit Parties hereby (i) acknowledges and consents to all of the terms and conditions of this Amendment, (ii) ratifies and affirms its obligations under the Credit Documents, (iii) agrees that (A) its obligations under each of the Credit Documents to which it is party shall remain in full force and effect according to their terms and (B) this Amendment and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Credit Documents.

 

(b)                                 Each of the Credit Parties hereby represents and warrants as follows:

 

(i)                                     Such Credit Party has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

 

(ii)                                  This Amendment has been duly executed and delivered by such Credit Parties and constitutes such Credit Party’s legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to

 











 

(A) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (B) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

(iii)                               No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Credit Party of this Amendment.

 

(c)                                  Each of the Credit Parties represents and warrants to the Administrative Agent and the Lenders that (i) the representations and warranties of the Credit Parties set forth in Section 5 of the Credit Agreement and in each other Credit Document are (A) with respect to representations and warranties that contain a materiality qualification, true and correct (after giving effect to such materiality qualification set forth therein) and (B) with respect to representations and warranties that do not contain a materiality qualification, true and correct in all material respects, on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct on and as of such earlier date and (ii) no event has occurred and is continuing which constitutes a Default or an Event of Default.

 

(d)                                 This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart of this Amendment by telecopy or other secure electronic format (.pdf) shall be effective as an original and shall constitute a representation that an executed original shall be delivered.

 

(e)                                  This Amendment shall be deemed to be, and is, a “Credit Document.”

 

(f)                                   This Amendment shall be governed by, and construed in accordance with, the law of the State of New York.

 

[Signature pages follow]

 











 

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

 

	
BORROWER:
    	
EARTHLINK   HOLDINGS CORP.,
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis M. Alterman
    
	
 
    	
Name:
    	
Louis   M. Alterman
    
	
 
    	
Title:
    	
Executive   Vice President, Chief Financial Officer
    
	
 
    	
 
    
	
GUARANTORS:
    	
BTI TELECOM CORP.
    
	
 
    	
BUSINESS TELECOM   OF VIRGINIA, INC.
    
	
 
    	
BUSINESS   TELECOM, INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF CONNECTICUT INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF MAINE INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF MASSACHUSETTS INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF NEW YORK INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF OHIO INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF PENNSYLVANIA INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF RHODE ISLAND INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS OF VERMONT INC.
    
	
 
    	
CHOICE ONE   COMMUNICATIONS RESALE L.L.C.
    
	
 
    	
CHOICE ONE OF NEW   HAMPSHIRE INC.
    
	
 
    	
CONNECTICUT   BROADBAND, LLC
    
	
 
    	
CONNECTICUT   TELEPHONE & COMMUNICATION SYSTEMS, INC.
    
	
 
    	
CONVERSENT   COMMUNICATIONS LONG DISTANCE, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF CONNECTICUT, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF MAINE, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF MASSACHUSETTS, INC.
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF NEW HAMPSHIRE, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF NEW JERSEY, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF NEW YORK, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF PENNSYLVANIA, LLC
    


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 











 

	
 
    	
CONVERSENT   COMMUNICATIONS OF RHODE ISLAND, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS OF VERMONT, LLC
    
	
 
    	
CONVERSENT   COMMUNICATIONS RESALE L.L.C.
    
	
 
    	
CTC COMMUNICATIONS   CORP.
    
	
 
    	
CTC COMMUNICATIONS   OF VIRGINIA, INC.
    
	
 
    	
DELTACOM, LLC
    
	
 
    	
EARTHLINK BUSINESS   HOLDINGS, LLC
    
	
 
    	
EARTHLINK   BUSINESS, LLC
    
	
 
    	
EARTHLINK CARRIER,   LLC
    
	
 
    	
EARTHLINK   JIGSAW I, LLC
    
	
 
    	
EARTHLINK MANAGED   SERVICES, LLC
    
	
 
    	
EARTHLINK SHARED   SERVICES, LLC
    
	
 
    	
ITC^DELTACOM, INC.
    
	
 
    	
LIGHTSHIP TELECOM,   LLC
    
	
 
    	
US XCHANGE INC.
    
	
 
    	
US XCHANGE OF   ILLINOIS, L.L.C.
    
	
 
    	
US XCHANGE OF   INDIANA, L.L.C.
    
	
 
    	
US XCHANGE OF   MICHIGAN, L.L.C.
    
	
 
    	
US XCHANGE OF   WISCONSIN, L.L.C.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Louis M. Alterman
    
	
 
    	
Name:
    	
Louis   M. Alterman
    
	
 
    	
Title:
    	
Executive   Vice President, Chief Financial Officer
    


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 











 

	
ADMINISTRATIVE   AGENT
    	
 
    
	
AND   COLLATERAL AGENT:
    	
REGIONS   BANK,
    
	
 
    	
as   Administrative Agent and Collateral Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen A. Brothers
    
	
 
    	
Name:
    	
Stephen   A. Brothers
    
	
 
    	
Title:
    	
Senior   Vice President
    


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 












 

	
LENDERS:
    	
REGIONS   BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Stephen A. Brothers
    
	
 
    	
Name:
    	
Stephen   A. Brothers
    
	
 
    	
Title:
    	
Senior   Vice President
    
				


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 











 

	
 
    	
FIFTH   THIRD BANK,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Dan Komitor
    
	
 
    	
Name:
    	
Dan   Komitor
    
	
 
    	
Title:
    	
Senior   Relationship Manager
    
				


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 











 

	
 
    	
CREDIT   SUISSE AG, CAYMAN ISLANDS BRANCH,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Judith Smith
    
	
 
    	
Name:
    	
Judith   Smith
    
	
 
    	
Title:
    	
Authorized   Signatory
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   D. Andrew Maletta
    
	
 
    	
Name:
    	
D.   Andrew Maletta
    
	
 
    	
Title:
    	
Authorized   Signatory
    
					


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 











 

	
 
    	
DEUTSCHE   BANK AG NEW YORK BRANCH,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Anca Trifan
    
	
 
    	
Name:
    	
Anca   Trifan
    
	
 
    	
Title:
    	
Managing   Director
    
				


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 











 

	
 
    	
JEFFERIES   FINANCE LLC,
    
	
 
    	
as   a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   J. Paul McDonnell
    
	
 
    	
Name:
    	
J.   Paul McDonnell
    
	
 
    	
Title:
    	
Managing   Director
    
				


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT

 











 

	
 
    	
JFIN   REVOLVER CLO 2014,
    
	
 
    	
By:
    	
Jefferies   Finance LLC, as
    
	
 
    	
 
    	
Portfolio   Manager
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   J. Paul McDonnell
    
	
 
    	
Name:
    	
J.   Paul McDonnell
    
	
 
    	
Title:
    	
Managing   Director
    
					


 

EARTHLINK HOLDINGS CORP.

THIRD AMENDMENT