Document:

Exhibit 10.20

 

AMENDMENT NO. 1 TO CREDIT AGREEMENT

 

AMENDMENT NO. 1, dated as of May 5, 2015 (this “Amendment”), by and among VICTORY CAPITAL OPERATING, LLC, a Delaware limited liability company (the “Borrower”), VCH HOLDINGS, LLC, a Delaware limited liability company (“Holdings”), VICTORY CAPITAL MANAGEMENT, INC., a New York corporation (“VCM”), MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent (the “Administrative Agent”) and Amendment No. 1 Incremental Term Lender, to the Credit Agreement, dated as of October 31, 2014 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), among the Borrower, Holdings, the Administrative Agent, and each lender from time to time party thereto. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement, as amended by this Amendment.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower has requested $50,000,000 of additional Term Loans (the “Amendment No. 1 Incremental Term Loans”) pursuant to and on the terms set forth in Section 2.20 of the Credit Agreement;

 

WHEREAS, the Borrower has requested certain additional changes to the Credit Agreement as provided for herein;

 

WHEREAS, each Person set forth on Schedule I hereto (an “Amendment No. 1 Incremental Term Lender”) will make Amendment No. 1 Incremental Term Loans to the Borrower in the amount set forth next to such Amendment No. 1 Incremental Term Lender’s name on Schedule I hereto on the Amendment No. 1 Effective Date (as defined below) on the terms and conditions set forth herein;

 

WHEREAS, Morgan Stanley Senior Funding, Inc. is acting as the sole arranger and bookrunner for the Amendment No. 1 Incremental Term Loans (in such capacity, the “Amendment No. 1 Arranger”); and

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

ARTICLE I

 

Incremental Term Loan

 

Section 1.1.        Incremental Term Loans. The Borrower confirms and agrees that (i) it has requested an increase in the amount of Term Loans, to be referred to in the Credit Agreement as Amendment No. 1 Incremental Term Loans, in the aggregate principal amount of $50,000,000 from the Amendment No. 1 Incremental Term Lenders pursuant to and on the terms set forth in Section 2.20 of the Credit Agreement, effective on the Amendment No. 1 Effective Date and (ii) on the Amendment No. 1 Effective Date, the Borrower will borrow the full amount of Amendment No. 1 Incremental Term Loans from the Amendment No. 1 Incremental Term Lenders. Effective on and at all times after the Amendment No. 1 Effective Date, the Amendment No. 1 Incremental Term Loans will constitute Term Loans and, together with all Term Loans outstanding prior to the Amendment No. 1 Effective Date, will constitute a single Class of Term Loans.

 

Section 1.2.        Agreements of Incremental Term Lenders. Each Amendment No. 1 Incremental Term Lender agrees that, on the Amendment No. 1 Effective Date, subject to the satisfaction

 

 

or waiver of the conditions set forth in Article III of this Amendment, such Amendment No. 1 Incremental Term Lender will fund, on a several and not joint basis, Amendment No. 1 Incremental Term Loans in the amount set forth next to such Amendment No. 1 Incremental Term Lender’s name on Schedule I. On the Amendment No. 1 Effective Date, any Amendment No. 1 Incremental Term Lender not a Lender prior to the Amendment No. 1 Effective Date will become a Lender for all purposes of the Credit Agreement.

 

ARTICLE II

 

Amendments

 

Section 2.1.        Amendments. Subject to the occurrence of the Amendment No. 1 Effective Date:

 

(a)           Section 1.01 of the Credit Agreement is hereby amended by inserting in appropriate alphabetical order the following new definitions:

 

“Amendment No. 1” means Amendment No. 1 to this Agreement dated as of May 5, 2015.

 

“Amendment No. 1 Effective Date” means May 5, 2015, the date of effectiveness of Amendment No. 1.

 

“Amendment No. 1 Incremental Term Commitment” means, as to the Amendment No. 1 Incremental Term Lenders, the obligation, on a several and not joint basis, of the Amendment No. 1 Incremental Term Lenders to make an Amendment No. 1 Incremental Term Loan to the Borrower on the Amendment No. 1 Effective Date, in the aggregate principal amount of $50,000,000.

 

“Amendment No. 1 Incremental Term Lender” means, at any time, any Lender that has an Amendment No. 1 Incremental Term Commitment or an Amendment No. 1 Incremental Term Loan outstanding at such time.

 

“Amendment No. 1 Incremental Term Loan” means a Loan made pursuant to Section 2.01(c).

 

“Special Distribution” means the payment of a distribution to Holdings in the amount of $50,000,000, which is to be used by Holdings to pay a distribution to its equityholders.

 

“Special Distribution Transactions” means the effectiveness of Amendment No. 1, the payment of the Special Distribution, the borrowing of the Amendment No. 1 Incremental Term Loans and the payment of fees and expenses in connection with the foregoing.

 

(b)           Section 2.01 of the Credit Agreement is hereby amended by adding the following paragraph (c) to such Section:

 

“(c)         Subject to the terms and conditions herein, each Amendment No. 1 Incremental Term Lender agrees to make an Amendment No. 1 Incremental Term Loan to the Borrower in an amount equal to such Lender’s Amendment No. 1 Incremental Term Loan Commitment. The Borrower may make only one borrowing under the Amendment No. 1 Incremental Term Loan Commitment, which shall be on the Amendment No. 1

 

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Effective Date. Any amount borrowed under this Section 2.01(c) and subsequently repaid or prepaid may not be reborrowed. Subject to Section 2.11, all amounts owed hereunder with respect to the Amendment No. 1 Incremental Term Loans shall be paid in full no later than the Term Maturity Date. The Amendment No. 1 Incremental Term Loan Commitment shall terminate immediately and without further action on the Amendment No. 1 Effective Date after giving effect to the funding of the Amendment No. 1 Incremental Term Loan Commitment on such date.”

 

(c)           Section 2.10(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“Subject to adjustment pursuant to paragraph (c) of this Section, the Borrower shall repay Term Loan Borrowings with respect to Term Loans on the last day of each March, June, September and December (commencing on June 30, 2015), an aggregate principal amount equal to $4,328,525.65; provided that if any such date is not a Business Day, such payment shall be due on the next preceding Business Day.”

 

(d)           Section 2.20(a)(i) of the Credit Agreement is hereby amended by adding the following before the “;” at the end thereof:

 

“plus $50,000,000 of Amendment No. 1 Incremental Term Loans”.

 

(e)           Section 3.17 of the Credit Agreement is hereby amended by replacing the word “and” at the end of clause (a) with a “,”, and adding the following before the period:

 

“and (c) the Amendment No. 1 Incremental Term Loans made on the Amendment No. 1 Effective Date to finance the Special Distribution Transactions”

 

(f)            Section 5.10 of the Credit Agreement is hereby amended by adding the following after the last sentence:

 

“The Borrower will use the proceeds of the Amendment No. 1 Incremental Term Loans made on the Amendment No. 1 Effective Date to finance the Special Distribution Transactions.”

 

(g)           Section 6.08(a) of the Credit Agreement is hereby amended by adding the following before the period:

 

“; and

 

(x)           the Special Distribution”.

 

ARTICLE III

 

Conditions to Effectiveness

 

Section 3.1.        Effective Date. This Amendment shall become effective on the date (the “Amendment No. 1 Effective Date”) on which:

 

(a)           The Administrative Agent shall have received (i) counterparts to this Amendment duly executed and delivered by the Borrower, Holdings, each Guarantor, the Administrative Agent and each Amendment No. 1 Incremental Term Lender and (ii) consents, in the form attached

 

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hereto as Exhibit A (each, a “Consent”), executed and delivered by the Required Lenders.

 

(b)           The representations and warranties of each Loan Party set forth in the Loan Documents shall be true and correct in all material respects on and as of the date hereof; provided that (i) to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date and (ii) the representations and warranties contained in Sections 3.04(a), (b) and (c) of the Credit Agreement shall be deemed to refer to the most recent financial statements furnished pursuant to Section 5.01(a) and (b) of the Credit Agreement, as applicable; provided, further, that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct in all respects on the date hereof or on such earlier date, as the case may be.

 

(c)           At the time of and immediately after giving effect to the Amendment No. 1 Incremental Term Loans, but, in each case, giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing.

 

(d)           The Administrative Agent shall have received from the Borrower, in form and substance reasonably satisfactory to the Administrative Agent, a certificate dated as of the date hereof signed by a Responsible Officer of the Borrower certifying that the conditions specified in Section 3.1(b) and (c) are satisfied and that the Borrower is in compliance on a Pro Forma Basis with the Financial Performance Covenant recomputed (without netting the cash proceeds of any Additional Commitments in calculating the First Lien Net Leverage Ratio) as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements have been or were required to have been delivered pursuant to Section 5.01(a) or (b) of the Credit Agreement (only if such Financial Performance Covenant is applicable).

 

(e)           Prior to or substantially concurrently with the funding of the Amendment No. 1 Incremental Term Loans, the Borrower shall have paid all fees, costs and expenses of the Administrative Agent and the Amendment No. 1 Arranger due and payable on or prior to the Amendment No. 1 Effective Date, including to the extent invoiced at least one Business Day prior to the Amendment No. 1 Effective Date, reasonable fees and disbursements of their counsel.

 

(f)            Prior to or substantially concurrently with the funding of the Amendment No. 1 Incremental Term Loans, the Borrower shall have paid (i) to each Amendment No. 1 Incremental Term Lender an amount equal to 0.75% of the aggregate principal amount of Amendment No. 1 Incremental Term Loans made by such Amendment No. 1 Incremental Term Lender, which fee may be netted against the proceeds of Amendment No. 1 Incremental Term Loans made by such Amendment No. 1 Incremental Term Lender and (ii) to the Administrative Agent for the account of each Lender that has executed and delivered to the Administrative Agent (or its counsel) the Consent at or prior to 5:00 p.m. (New York City time) on April 30, 2015 or such later date and time as specified by the Borrower and notified in writing to the Lenders by the Administrative Agent (the “Consent Deadline”) an amount equal to 0.25% of such Lender’s Term Loans (excluding any Amendment No. 1 Incremental Term Loan) outstanding and Revolving Commitments in effect as of the Consent Deadline.

 

(g)           The Administrative Agent shall have received customary evidence of authorization of the transactions described herein, valid organization and good standing (to the extent applicable)

 

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in the jurisdiction of organization, in each case with respect to the Borrower and each Guarantor, and an officer’s certificate related thereto.

 

(h)           The Administrative Agent shall have received a written opinion of Willkie Farr & Gallagher LLP, in form and substance consistent with the opinion delivered on the Closing Date with such changes thereto as are reasonably requested or satisfactory to the Administrative Agent necessary to reflect changes in connection with the Special Distribution Transactions.

 

(i)            The Borrower and each of the Guarantors shall have provided at least three Business Days prior to the Amendment No. 1 Effective Date all documentation and other information to the Administrative Agent and the Lenders that are required by regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including, without limitation, the USA Patriot Act, to the extent the Borrower shall have received written requests therefor at least five Business Days prior to the Amendment No. 1 Effective Date.

 

(j)            The Administrative Agent shall have received a Borrowing Request in accordance with the requirements of the Credit Agreement.

 

(k)           The Administrative Agent shall have received certified copies of Uniform Commercial Code, United States Patent and Trademark Office and United States Copyright Office, tax and judgment lien searches, bankruptcy and pending lawsuit searches or equivalent reports or searches, each of a recent date listing all effective financing statements, lien notices or comparable documents that name any Loan Party as debtor and that are filed in those state and county jurisdictions in which any Loan Party is organized or maintains its principal place of business and such other searches that the Administrative Agent deems necessary or appropriate, none of which encumber the Collateral covered or intended to be covered by the Security Documents (other than Permitted Encumbrances).

 

(l)            The Administrative Agent shall have received a certificate from the chief financial officer of the Borrower substantially in the form of Exhibit F to the Credit Agreement certifying as to the solvency of the Borrower and its Subsidiaries on a consolidated basis after giving effect to the Special Distribution Transactions.

 

It is understood and agreed that if the Amendment No. 1 Effective Date shall not have occurred on or before May 15, 2015, then it shall not occur.

 

Section 3.2.        Notification. The Administrative Agent shall notify the Borrower and the Lenders of the Amendment No. 1 Effective Date.

 

ARTICLE IV

 

Miscellaneous

 

Section 4.1.        Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

Section 4.2.        Reaffirmation. Each of the undersigned Guarantors (each, a “Reaffirming Party”) hereby acknowledges this Amendment and the transactions contemplated thereby. Each Reaffirming

 

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Party hereby reaffirms all obligations and liabilities of such Reaffirming Party under the Loan Documents to which it is a party, as such obligations and liabilities have been amended by this Amendment, and confirms that such obligations and liabilities shall continue to be in full force and effect and shall continue to apply to the Credit Agreement and each other Loan Document.

 

Section 4.3.        Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Section 4.4.        Headings. The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

Section 4.5.        Tax Matters. For U.S. federal income tax purposes, the parties hereto intend to treat the Amendment No. 1 Incremental Term Loans as a “qualified reopening” (within the meaning of Treasury Regulations Section 1.1275-2(k)) of the existing Term Loans. Unless otherwise required by law (including the good faith resolution of a tax audit), no Borrower, Administrative Agent or Lender shall take any U.S. federal, state or local income tax position inconsistent with the preceding sentence.

 

Section 4.6.        Effect of Amendment. On and after the Amendment No. 1 Effective Date, each reference to the Credit Agreement in any Loan Document (including to any Exhibit or Schedule attached thereto) shall be deemed to be a reference to the Credit Agreement as amended by this Amendment. Except as expressly set forth in this Amendment, nothing herein shall be deemed to entitle any Loan Party 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 as in effect immediately prior to the Amendment No. 1 Effective Date 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.

 

[Remainder of this page intentionally left blank]

 

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

 

	
 
    	
VICTORY CAPITAL   OPERATING, LLC,
    
	
 
    	
as Borrower
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael D.   Policarpo
    
	
 
    	
 
    	
Name:
    	
Michael D.   Policarpo
    
	
 
    	
 
    	
Title:
    	
Treasurer and   Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
VCH HOLDINGS,   LLC,
    
	
 
    	
as Holdings and a Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael D.   Policarpo
    
	
 
    	
 
    	
Name:
    	
Michael D.   Policarpo
    
	
 
    	
 
    	
Title:
    	
Treasurer and   Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
VICTORY CAPITAL   MANAGEMENT, INC.,
    
	
 
    	
as a Guarantor
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael D.   Policarpo
    
	
 
    	
 
    	
Name:
    	
Michael D.   Policarpo
    
	
 
    	
 
    	
Title:
    	
Treasurer and   Chief Financial Officer
    

 

[Signature Page to Amendment No.1]

 

 

	
 
    	
MORGAN STANLEY   SENIOR FUNDING, INC.,
    
	
 
    	
as Administrative Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ F. Michael Manfred
    
	
 
    	
 
    	
Name:
    	
F. Michael   Manfred
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

	
 
    	
MORGAN STANLEY   SENIOR FUNDING, INC.,
    
	
 
    	
as an Amendment No. 1 Incremental Term Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ F. Michael Manfred
    
	
 
    	
 
    	
Name:
    	
F. Michael   Manfred
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

 

 

(Consents on file with the Administrative Agent)

 

 

Exhibit A

 

CONSENT TO AMENDMENT NO. 1

 

CONSENT (this “Consent”) to Amendment No. 1 (the “Amendment”) to the certain Credit Agreement, dated as of October 31, 2014 (the “Credit Agreement”), by and among VICTORY CAPITAL OPERATING, LLC, a Delaware limited liability company (the “Borrower”), VCH HOLDINGS, LLC, a Delaware limited liability company (“Holdings”), MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent (the “Administrative Agent”) and the lenders party thereto.

 

The undersigned Lender hereby consents to the Amendment.

 

	
 
    	
 
    	
,
    
	
 
    	
(Name of   Institution)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
If a second   signature is necessary:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
				

 

 

[Consent to Amendment No. 1 to Victory Credit Agreement]Exhibit 10.21

 

Execution Version

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT

 

AMENDMENT NO. 2, dated as of July 29, 2016 (this “Amendment”), by and among VICTORY CAPITAL OPERATING, LLC, a Delaware limited liability company (the “Borrower”), VCH HOLDINGS, LLC, a Delaware limited liability company (“Holdings”), MORGAN STANLEY SENIOR FUNDING, INC., as administrative agent (the “Administrative Agent”), and ROYAL BANK OF CANADA (“Royal Bank”), as the Amendment No. 2 Arranger (as defined below), to the Credit Agreement, dated as of October 31, 2014 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), among the Borrower, Holdings, the Administrative Agent, and each lender from time to time party thereto. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement, as amended by this Amendment and Amendment No. 3.

 

W  I  T  N  E  S  S  E  T  H:

 

WHEREAS, the Borrower and the Amendment No. 2 Arranger have requested certain additional changes to the Credit Agreement as provided for herein;

 

WHEREAS, concurrently with the effectiveness of this Amendment, the Borrower, Holdings, the Administrative Agent and Royal Bank shall enter into Amendment No. 3;

 

WHEREAS, Royal Bank of Canada is acting as the sole arranger and bookrunner for Amendment No. 2 (in such capacity, the “Amendment No. 2 Arranger”); and

 

NOW, THEREFORE, the parties hereto hereby agree as follows:

 

ARTICLE I

 

Amendments

 

Section 1.1.                                 Amendments. Subject to the occurrence of the Amendment No. 2 Effective Date:

 

(a)                                 Section 1.01 of the Credit Agreement is hereby amended by inserting in appropriate alphabetical order the following new definitions:

 

“Amendment No. 2” means Amendment No. 2 to this Agreement dated as of July 29, 2016.

 

“Amendment No. 2 Arranger” means Royal Bank of Canada in its capacity as arranger of Amendment No. 2.

 

“Amendment No. 2 Effective Date” means July 29, 2016, the date of effectiveness of Amendment No. 2.

 

“Amendment No. 3” means Amendment No. 3 to this Agreement dated as of July 29, 2016.

 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“Repricing Transaction” means (i) all or any portion of the Term Facility is (A) repaid, prepaid, refinanced or replaced (other than in connection with a Change of Control) or (B) repriced or effectively refinanced through any waiver, consent or amendment (in the case of each of clauses (A) and (B), in connection with the incurrence of any debt financing having an effective interest cost or weighted average yield that is less than the effective interest cost or weighted average yield of the Term Facility (or portion thereof) so repaid, prepaid, refinanced, replaced or repriced or any waiver, consent or amendment to the Term Facility directed at, or the result of which would be, the lowering of the effective interest cost or the weighted average yield of the Term Facility) occurring within twelve (12) months of the Amendment No. 2 Effective Date, and/or (ii) all or any portion of the Term Facility held by any Lender is repaid, prepaid, refinanced or replaced pursuant to Section 9.02(c) as a result of, or in connection with, such Lender not agreeing or otherwise consenting to any waiver, consent or amendment referred to in clause (i)(B) above (or otherwise in connection with a transaction described in the parenthetical of clause (i) above).

 

“RSIM” means RS Investment Management Co. LLC, a Delaware limited liability company.

 

“RSIM Acquisition” means the direct or indirect acquisition by the Borrower of 100% of the outstanding equity interests of RSIM and its subsidiaries pursuant to the RSIM Acquisition Agreement.

 

“RSIM Acquisition Agreement” means that certain Agreement and Plan of Merger dated December 15, 2015 by and among the Borrower, VCO MS, LLC, RSIM, Guardian Investor Services LLC, as Unitholders’ Representative (as defined therein), and VCH with respect to certain provisions therein.

 

“RSIM Equity Contribution” means (i) the cash common equity investment in Holdings by the Sponsor which shall be contributed in cash to the common equity capital of the Borrower

 

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and (ii) the exchange by certain existing equityholders of the RSIM Seller of certain of their Equity Interests in RSIM and its subsidiaries to be acquired immediately prior to the consummation of the RSIM Acquisition for common equity in Holdings, in an aggregate amount of not less than $85,000,000.

 

“RSIM Seller” means the equityholders of RSIM immediately prior to the consummation of the RSIM Acquisition.

 

“RSIM Transactions” means the effectiveness of Amendment No. 2 and Amendment No. 3, the RSIM Acquisition and the other transactions contemplated by the RSIM Acquisition Agreement, the borrowing of the Amendment No. 3 Incremental Term Loans and the payment of fees and expenses in connection with the foregoing.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)                                 The definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is hereby amended by amending and restating clause (a) thereof as follows:

 

“(a) with respect to any Term Loan, (1) 6.50% per annum, in the case of an ABR Loan, or (2) 7.50% per annum, in the case of a Eurocurrency Loan”

 

(c)                                  The definition of “Available Amount Basket” in Section 1.01 of the Credit Agreement is hereby amended by adding the following to the end of clause (b) thereof: “but excluding the proceeds of the RSIM Equity Contribution.”

 

(d)                                 Following consummation of the RSIM Transactions, the following proviso shall be added to Section 1.01 of the Credit Agreement to the definition of “Consolidated EBITDA” to apply to transactions occurring after the date hereof:

 

“; provided, further, that following the consummation of the RSIM Transactions, amounts included in calculating Consolidated EBITDA pursuant to clauses (a)(vi) and (b) above and clause (III)(B) of the immediately preceding proviso (excluding any such amounts attributable to the RSIM Transactions) shall not, when taken together, account for more than 20% of Consolidated EBITDA in any Test Period (calculated prior to giving effect to such clauses and excluding for purposes of such calculation any unusual or non-recurring charges or Pro Forma Adjustments that are determined on a basis consistent with Article 11 of Regulation S-X promulgated under the Securities Act of 1933 or as identified in a quality of earnings report prepared by a nationally recognized accounting firm)”;

 

(e)                                  The definition of “Defaulting Lender” in Section 1.01 of the Credit Agreement is hereby amended by adding the following to the end of clause (d)(i): “or become the subject of a Bail-In Action”;

 

(f)                                   The definition of “ECF Percentage” in Section 1.01 of the Credit Agreement is hereby amended and restated as follows:

 

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“ECF Percentage” means, with respect to the prepayment required by Section 2.11(d) with respect to any fiscal year of the Borrower, if the First Lien Leverage Ratio (without giving effect to the applicable prepayment pursuant to Section 2.11(d)) as of the end of such fiscal year is (a) greater than 2.25 to 1.00, 75% of Excess Cash Flow for such fiscal year, (b) greater than 1.75 to 1.00 but less than or equal to 2.25 to 1.00, 50% of Excess Cash Flow for such fiscal year, (c) greater than 1.50 to 1.00 but less than or equal to 1.75 to 1.00, 25% of Excess Cash Flow for such fiscal year and (d) less than or equal to 1.50 to 1.00, 0% of Excess Cash Flow for such fiscal year.

 

(g)                                  The definition of “Prepayment Premium” in Section 1.01 of the Credit Agreement is hereby amended by replacing the words “Closing Date” in clause (i) thereof with the words “Amendment No. 2 Effective Date”.

 

(h)                                 The definition of “Sponsor” in Section 1.01 of the Credit Agreement is hereby amended and restated as follows:

 

“Sponsor” means Crestview Partners II, L.P. and Reverence Capital Partners and their respective Affiliates.

 

(i)                                     Section 2.11(h) of the Credit Agreement is hereby amended by replacing clause (3) thereof with the following:

 

“(3) in the event of a Repricing Transaction, the Prepayment Premium.

 

(j)                                    Section 2.24 of the Credit Agreement is amended by adding the following new clause (d) thereto:

 

“(d)                           Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Credit Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Credit Document, to the extent such liability is unsecured, may be subject to the write down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(i)                                     the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(ii)                                  the effects of any Bail-in Action on any such liability, including, if applicable:

 

(A)                               a reduction in full or in part or cancellation of any such liability;

 

(B)                               a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Credit Document; or

 

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(C)                               the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.”

 

ARTICLE II

 

Conditions to Effectiveness

 

Section 2.1.                                 Effective Date. This Amendment shall become effective on the date (the “Amendment No. 2 Effective Date”) on which:

 

(a)                                 The Administrative Agent and the Amendment No. 2 Arranger shall have received (i) counterparts to this Amendment duly executed and delivered by the Borrower, Holdings, each Guarantor, the Administrative Agent and (ii) consents, in the form attached hereto as Exhibit A (each, a “Consent”), executed and delivered by the Required Lenders.

 

(b)                                 Substantially concurrently with the Amendment No. 2 Effective Date, Amendment No. 3 shall have become effective.

 

Section 2.2.                                 Notification. The Amendment No. 2 Arranger and the Administrative Agent shall notify the Borrower and the Lenders of the Amendment No. 2 Effective Date.

 

ARTICLE III

 

Miscellaneous

 

Section 3.1.                                 Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be deemed to be an original, but all of which when taken together shall constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.

 

Section 3.2.                                 Reaffirmation. Each of the undersigned Guarantors (each, a “Reaffirming Party”) hereby acknowledges this Amendment and the transactions contemplated thereby. Each Reaffirming Party hereby reaffirms all obligations and liabilities of such Reaffirming Party under the Loan Documents to which it is a party, as such obligations and liabilities have been amended by this Amendment, and confirms that such obligations and liabilities shall continue to be in full force and effect and shall continue to apply to the Credit Agreement and each other Loan Document.

 

Section 3.3.                                 Applicable Law. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Section 3.4.                                 Headings. The headings of this Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

Section 3.5.                                 Effect of Amendment. On and after the Amendment No. 2 Effective Date, each reference to the Credit Agreement in any Loan Document (including to any Exhibit or Schedule attached thereto) shall be deemed to be a reference to the Credit Agreement as amended by this Amendment and Amendment No. 3. Except as expressly set forth in this Amendment and Amendment No. 3, nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment,

 

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modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement as in effect immediately prior to the Amendment No. 2 Effective Date 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 3.6.                                 Direction to Administrative Agent. The Lenders party hereto constituting the Required Lenders hereby (i) direct the Administrative Agent to execute and deliver this Agreement and Amendment No. 3 and (ii) acknowledge and agree that (x) the of the direction in this Section 3.6 constitutes a direction from the Required Lenders under the provisions of Article VIII of the Credit Agreement and (y) Sections 8.06 and 9.03 of the Credit Agreement shall apply to any and all actions taken by the Administrative Agent in accordance with such direction.

 

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

 

	
 
    	
VICTORY CAPITAL   OPERATING, LLC,
    
	
 
    	
as   Borrower
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael D.   Policarpo
    
	
 
    	
 
    	
Name:
    	
Michael D.   Policarpo
    
	
 
    	
 
    	
Title:
    	
Chief Financial   Officer
    
	
 
    	
 
    
	
 
    	
VCH HOLDINGS,   LLC,
    
	
 
    	
as   Holdings and a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael D.   Policarpo
    
	
 
    	
 
    	
Name:
    	
Michael D.   Policarpo
    
	
 
    	
 
    	
Title:
    	
Chief Financial   Officer
    
	
 
    	
 
    
	
 
    	
VICTORY CAPITAL   MANAGEMENT, INC.,
    
	
 
    	
as   a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael D.   Policarpo
    
	
 
    	
 
    	
Name:
    	
Michael D.   Policarpo
    
	
 
    	
 
    	
Title:
    	
Treasuer, Chief   Financial Officer and Chief Operating Officer
    
	
 
    	
 
    
	
 
    	
RS INVESTMENT   MANAGEMENT CO. LLC,
    
	
 
    	
as   a Guarantor
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Michael D.   Policarpo
    
	
 
    	
 
    	
Name:
    	
Michael D.   Policarpo
    
	
 
    	
 
    	
Title:
    	
Chief Financial   Officer
    

 

[Signature Page to Amendment No. 2 to Credit Agreement]

 

 

	
 
    	
MORGAN STANLEY   SENIOR FUNDING, INC.,
    
	
 
    	
as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Lisa Hanson
    
	
 
    	
 
    	
Name:
    	
Lisa Hanson
    
	
 
    	
 
    	
Title:
    	
Authorized   Signatory
    

 

[Signature Page to Amendment No. 2 to Credit Agreement]

 

 

	
 
    	
ROYAL BANK OF   CANADA,
    
	
 
    	
as   Amendment No. 2 Arranger
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ James S. Wolfe
    
	
 
    	
 
    	
Name:
    	
JAMES S. WOLFE
    
	
 
    	
 
    	
Title:
    	
MANAGING   DIRECTOR

HEAD OF GLOBAL   LEVERAGED FINANCE
    

 

[Signature Page to Amendment No. 2 to Credit Agreement]

 

 

(Consents on file with the Administrative Agent)

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