Document:

EXHIBIT 10.1

 

TWELFTH AMENDMENT TO SECURED REVOLVING CREDIT AGREEMENT

 

This TWELFTH AMENDMENT TO SECURED REVOLVING CREDIT AGREEMENT (this “Amendment”) is entered into as of August 30, 2019 (the “Effective Date”) by and between MVC CAPITAL, INC., a Delaware corporation, as borrower (“Borrower”), and BRANCH BANKING AND TRUST COMPANY, a North Carolina banking corporation, as lender (“Lender”).

 

RECITALS:

 

WHEREAS, the Borrower and Lender entered into a certain Secured Revolving Credit Agreement dated as of July 31, 2013 (the “Credit Agreement”), as amended by that certain First Amendment to Secured Revolving Credit Agreement dated January 31, 2014 between Borrower and Lender (the “First Amendment”), that certain Second Amendment to Secured Revolving Credit Agreement dated April 29, 2014 between Borrower and Lender (the “Second Amendment”), that certain Third Amendment to Secured Revolving Credit Agreement dated July 30, 2014 between Borrower and Lender (the “Third Amendment”), that certain Fourth Amendment to Secured Revolving Credit Agreement dated April 29, 2015 (the “Fourth Amendment”), that certain Fifth Amendment to Secured Revolving Credit Agreement dated July 31, 2015 (the “Fifth Amendment”), that certain Sixth Amendment to Secured Revolving Credit Agreement dated September 30, 2015 (the “Sixth Amendment”), that certain Seventh Amendment to Secured Revolving Credit Agreement dated December 1, 2015 (the “Seventh Amendment”), that certain Eighth Amendment to Secured Revolving Credit Agreement dated  June 30, 2016 (the “Eighth Amendment”), that certain Ninth Amendment to Secured Revolving Credit Agreement dated February 28, 2017 (the “Ninth Amendment”), that certain Tenth Amendment dated August 31, 2017 (the “Tenth Amendment”), and that certain Eleventh Amendment dated August 10, 2018 (the “Eleventh Amendment”), and collectively with all prior amendments described in this paragraph the “Prior Amendments”);

 

WHEREAS, the Borrower has requested that the Lender extend the maturity of the Revolver Commitment by amending the definition of “Termination Date”;

 

WHEREAS, the Lender is willing to provide the requested amendment upon the terms and subject to the conditions set forth below and amend the Credit Agreement as provided herein subject to the terms and conditions herein.

 

NOW, THEREFORE, in consideration of the Recitals and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and the Lender agree as follows:

 

AGREEMENT:

 

SECTION 1.                            Recitals.  The Recitals are incorporated herein by reference and shall be deemed to be a part of this Amendment.

 

SECTION 2.                            Amendments to Credit Agreement.  The Credit Agreement is hereby amended as set forth in this Section 2.

 

[-Sensitive-]

 

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SECTION 2.02.           Amendment to Section 1.01.  The definition of “Termination Date” in Section 1.01 of the Credit Agreement is deleted and replaced with the following:

 

“Termination Date” means the earlier to occur of (i) August 31, 2020, (ii) the date the Revolver Commitment is terminated pursuant to Section 6.01 following the occurrence of an Event of Default, or (iii) the date the Borrower terminates the Revolver Commitment entirely pursuant to Section 2.09.

 

SECTION 3.                            Reaffirmation.  To induce the Lender to enter into this Amendment, the Borrower hereby (a) restates and renews each and every representation and warranty heretofore made by it under, or in connection with the execution and delivery of, the Credit Agreement and the other Loan Documents (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 representation or warranty is true and correct as of such date), and (b) restates, ratifies and reaffirms each and every term and condition set forth in the Credit Agreement and in the other Loan Documents.

 

SECTION 4.                            Conditions to Effectiveness.  This Amendment shall become effective as of the date first written above when, and only when, each of the following conditions precedent shall have been satisfied or waived:

 

(a)                                 the Lender shall have received this Amendment, duly executed by the Borrower and the Lender;

 

(b)                                 the Lender shall have received resolutions from the Borrower and other evidence as the Lender may reasonably request, respecting the authorization, execution and delivery of this Amendment;

 

(c)                                  the fact that the representations and warranties of the Borrower contained in Section 6 of this Amendment shall be true and correct on and as of the date hereof;

 

(d)                                 after giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing;

 

(e)                                  the Borrower shall have delivered, by wire transfer or immediately available funds, to the Lender the amount of $50,000 as an upfront fee, which such upfront fee shall be fully earned and payable on the Effective Date; and

 

(f)                                   all other documents and legal matters in connection with the transactions contemplated by this Amendment shall be reasonably satisfactory in form and substance to the Lender and its counsel.

 

SECTION 5.                            No Other Amendment.  Except for the amendments set forth above, the text of the Credit Agreement shall remain unchanged and in full force and effect.  On and after the Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by the Prior Amendments and this

 

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Amendment.  This Amendment is not intended to effect, nor shall it be construed as, a novation.  The Credit Agreement, the Prior Amendments and this Amendment shall be construed together as a single agreement.  Nothing herein contained shall waive, annul, vary or affect any provision, condition, covenant or agreement contained in the Credit Agreement or the Prior Amendments, except as herein amended, nor affect nor impair any rights, powers or remedies under the Credit Agreement or the Prior Amendments, as each is hereby amended, and each is confirmed to be in full force and effect.

 

SECTION 6.                            Representations and Warranties.  The Borrower hereby represents and warrants to the Lender that, as of the Effective Date:

 

(a)                                 the Borrower has all requisite power and authority to enter into this Amendment and to carry out the transactions contemplated by, and perform its obligations under, the Credit Agreement and the other Loan Documents;

 

(b)                                 the execution and delivery of this Amendment and the performance of the Credit Agreement and the other Loan Documents have been duly authorized by all necessary action (if any) on the part of the Borrower;

 

(c)                                  the execution and delivery by the Borrower of this Amendment will not result in, or require, the creation or imposition of any Lien on any of its properties or revenues pursuant to any Applicable Law or any such contractual obligation (other than the Liens created by the Loan Documents on the Closing Date and from time to time thereafter);

 

(d)                                 this Amendment has been duly executed and delivered by the Borrower and constitutes a legal, valid, and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, moratorium, reorganization, or other similar laws affecting creditors’ rights generally and except as enforceability may be limited by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or in law);

 

(e)                                  the execution and delivery of this Amendment and the performance by the Borrower hereunder does not and will not require the consent or approval of any regulatory authority or governmental authority or agency having jurisdiction over the Borrower, nor be in contravention of or in conflict with the articles of incorporation, bylaws or other organizational documents of the Borrower, or the provision of any statute, or any judgment, order or indenture, instrument, agreement or undertaking, to which the Borrower is party or by which the assets or properties of the Borrower are or may become bound;

 

(f)                                   the Collateral Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Lender, which security

 

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interests and Liens are perfected in accordance with the terms of the Collateral Documents and prior to all other Liens; and

 

(g)                                  no event has occurred and is continuing or will result from the consummation of the transactions contemplated by this Amendment that would constitute an Event of Default or a Default.

 

SECTION 7.                            Counterparts.  This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same agreement.

 

SECTION 8.                            Governing Law.  This Amendment shall be construed in accordance with and governed by the laws of the State of North Carolina.

 

SECTION 9.                            Further Assurances.  The Borrower agrees to promptly take such action, upon the request of the Lender, as is necessary to carry out the intent of this Amendment.

 

SECTION 10.                     Waiver of Claims or Defenses.  The Borrower represents that it does not have any set-offs, defenses, recoupments, offsets, counterclaims or other causes of action against the Lender relating to the Loan Documents and the indebtedness evidenced and secured thereby and agree that, if any such set-off, defense, counterclaim, recoupment or offset otherwise exists on the date of this Amendment, each such defense, counterclaim, recoupment, offset or cause of action is hereby waived and released forever.

 

SECTION 11.                     Loan Document.  This Amendment is a Loan Document and is subject to all provisions of the Credit Agreement applicable to Loan Documents, all of which are incorporated in this Amendment by reference the same as if set forth in this Amendment verbatim.

 

SECTION 12.                     Severability.  Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or thereof or affecting the validity or enforceability of such provision in any other jurisdiction.

 

SECTION 13.                     Entire Agreement.  This Amendment contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed herein. This Amendment supersedes all prior drafts and communications with respect hereto.

 

SECTION 14.                     Notices.  All notices, requests and other communications to any party to the Loan Documents, as amended hereby, shall be given in accordance with the terms of Section 9.01 of the Credit Agreement.

 

SECTION 15.                     Expenses.  The Borrower shall pay all reasonable out-of-pocket expenses incurred by the Lender (including the reasonable fees, charges and disbursements of counsel for the Lender) in connection with the preparation and closing of this Amendment.

 

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SECTION 16.  Definitions.  Capitalized terms used in this Amendment which are not otherwise defined in this Amendment shall have the respective meanings assigned to them in the Credit Agreement.

 

[SIGNATURE PAGES FOLLOW]

 

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

 

 

	
 
    	
MVC CAPITAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Scott J. Schuenke
    
	
 
    	
Name:
    	
Scott J. Schuenke
    
	
 
    	
Title:
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
[CORPORATE SEAL]
    

 

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BRANCH BANKING AND TRUST   COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Steven Whitcomb
    
	
 
    	
Name:
    	
Steven Whitcomb
    
	
 
    	
Title:
    	
Senior Vice President
    

 

7Exhibit 10.2

 

FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

FIRST AMENDMENT TO CREDIT AND SECURITY AGREEMENT (this “First Amendment”) dated June   , 2019 (the “First Amendment Closing Date”), by and among MVC CAPITAL, INC., a corporation formed under the laws of the State of Delaware (the “Borrower”), MVC FINANCIAL SERVICES, INC., a corporation formed under the laws of the State of Delaware, MVC CAYMAN, an exempted company incorporated under the laws of the Cayman Islands, MVC GP II, LLC, a limited liability company formed under the laws of the State of Delaware, and MVC PARTNERS LLC, a limited liability company formed under the laws of the State of Delaware, (collectively, the “Guarantors”, and each a “Guarantor”), the financial institutions or entities from time to time parties to the Credit Agreement (as such term is defined herein) (collectively, the “Lenders”, and each a “Lender”), and PEOPLE’S UNITED BANK, NATIONAL ASSOCIATION, as agent (“Agent”).

 

BACKGROUND

 

WHEREAS, Borrower, Lenders and Agent are parties to a Credit and Security Agreement dated as of January 29, 2019 (as same has been and may be further modified, amended, supplemented and/or restated from time to time, the “Credit Agreement”). Capitalized terms used herein shall have the meanings given to them in the Credit Agreement unless otherwise specified.

 

WHEREAS, Borrower served the Agent and the Lenders with a Notice of New Commitments, the Agent, the Lenders and the Borrower have agreed Bank Leumi USA will be the New Lender for purposes of this First Amendment with New Commitments in an amount equal to Fifteen Million Dollars ($15,000,000) and has requested that the Agent and the Lenders amend the Credit Agreement as described in this First Amendment.

 

WHEREAS, Agent and Lenders are willing to amend certain terms and conditions of the Credit Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:

 

1.                                      Amendments to Credit Agreement.  As of the date hereof, the Credit Agreement is amended as follows:

 

(1)                                 Definitions.  Section 1.1 of the Credit Agreement is amended by the deletion or the amendment and restatement of the following definitions, as applicable, to read in their entirety as follows:

 

(a)                     Effective as of the First Amendment Closing Date, the definition of Maximum Credit is hereby deleted and amended and restated in its entirety to read as follows:

 

“Maximum Credit” means Fifty Million Dollars ($50,000,000) as the same may be increased in accordance with Section 2.3 of this Agreement.

 

(2)                                 Schedule 1.1. Effective as of the First Amendment Closing Date, Schedule 1.1 of the Credit Agreement is hereby deleted and amended and restated in its entirety by Schedule 1.1

 

 

attached to this First Amendment.

 

(3)                                 No Other Changes. Except as explicitly amended by this First Amendment, all of the terms and conditions of the Credit Agreement shall remain in full force and effect and shall apply to all Revolving Loans and Letters of Credit thereunder.

 

2.                                      Conditions Precedent. This First Amendment shall be effective when the Agent shall have received an executed copy hereof of each of (a) through (f) and payment of (g) (collectively, the “First Amendment Conditions”):

 

(a)                     this First Amendment duly executed;

 

(b)                     the Revolving Note in favor of the New Lender duly executed;

 

(c)                      the Acknowledgment and Agreement of Guarantors set forth at the end of this First Amendment, duly executed by the Guarantors;

 

(d)                     the Supplemental Agreement duly executed;

 

(e)                      the Notice of New Commitments duly executed;

 

(f)                       the Assignment and Assumption Agreement duly executed; and

 

(g)                      payment of fees in accordance with the Fee Letter, which fees shall be fully earned, irrevocable, due and payable on the First Amendment Closing Date.

 

3.                                      Conditions Subsequent. The Borrower agrees that within thirty (30) days of the date of this First Amendment it will deliver to the Agent a fully executed Deposit Account Control Agreement, in form and substance acceptable to the Agent, among the Borrower, the Agent and Bank Leumi USA.

 

4.                                      Representations and Warranties. Borrower hereby represents and warrants to Agent and Lenders as follows:

 

(a)                     Borrower has all requisite organizational power and authority to execute this First Amendment and to perform all of its obligations hereunder, and the First Amendment has been duly executed and delivered by Borrower and constitutes the legal, valid and binding obligation of Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency reorganization, moratorium or other laws affecting creditor’s rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

(b)                     The execution, delivery and performance by Borrower of this First Amendment has been duly authorized by all necessary corporate action and does not (i) require any authorization, consent or approval by any Governmental Authority, other than registrations, consents, approvals, notices or other action that have been obtained and that are still in force and effect and except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to Agent for filing or recordation, as of the First Amendment Closing Date, (ii) violate

 

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any material provision of Federal, State or local law or regulation applicable to the Borrower, the Organization Documents of Borrower or any court or other Governmental Authority binding on Borrower or its property, or (iii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material agreement of Borrower where any such conflict, breach or default could individually or in the aggregate reasonably be expected to have a Material Adverse Effect.

 

(c)                                  All of the representations and warranties contained in the Credit Agreement that are qualified as to materiality or Material Adverse Effect shall be true and correct and the representations and warranties that are not so qualified shall be true and correct in all material respects, on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.

 

5.                                      References. All references in the Credit Agreement to the “Agreement” shall be deemed to refer to the Credit Agreement as amended hereby; and any and all references in the Loan Documents to the Credit Agreement shall be deemed to refer to the Credit Agreement as amended hereby.

 

6.                                      No Waiver.  The execution of this First Amendment and of any documents related hereto shall not be deemed to be a waiver of any Default or Event of Default under the Credit Agreement or breach, default or event of default under any Loan Documents or other document held by Agent or Lenders, whether or not known to Agent or Lenders and whether or not existing on the date of this First Amendment.

 

7.                                      Release.  Borrower and Guarantors by signing the Acknowledgment and Agreement of Guarantors attached hereto, each hereby absolutely and unconditionally releases and forever discharges the Agent, Lenders and L/C Issuers, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which Borrower or Guarantors has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this First Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.

 

8.                                      Costs and Expenses. Borrower hereby reaffirms its agreement under the Credit Agreement to pay or reimburse Agent, Lenders and L/C Issuer on demand for all reasonable costs and expenses incurred by Agent, Lenders and L/C Issuer in connection with the Loan Documents, including without limitation all reasonable fees and disbursements of legal counsel. Without limiting the generality of the foregoing, Borrower specifically agrees to pay all reasonable fees and disbursements of counsel to Agent, Lenders and L/C Issuer for the services performed by such counsel in connection with the preparation of this First Amendment and the documents and instruments incidental hereto.  Borrower hereby agrees that Agent may, at any time or from time to time in its sole discretion and without further authorization by Borrower, make an Advance to Borrower under the Credit Agreement, or apply the proceeds of any Advance, for the purpose of

 

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paying any such fees, disbursements, costs and expenses.

 

8.                                Miscellaneous. This First Amendment and the Acknowledgment and Agreement of Guarantors may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original and all of which counterparts, taken together, shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this First Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this First Amendment.

 

[SIGNATURE PAGE FOLLOWS]

 

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

 

	
 
    	
MVC CAPITAL, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ MICHAEL T. TOKARZ
    
	
 
    	
Name:
    	
MICHAEL T. TOKARZ
    
	
 
    	
Title:
    	
Chairman
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
PEOPLE’S UNITED BANK,   NATIONAL ASSOCIATION,
    
	
 
    	
as Agent and Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ CARMEN CAPORRINO
    
	
 
    	
Name:
    	
CARMEN CAPORRINO
    
	
 
    	
Title:
    	
Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK   LEUMI USA, as New Lender and a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ DOUGLAS MEYER
    
	
 
    	
Name:
    	
DOUGLAS MEYER
    
	
 
    	
Title:
    	
Senior Vice President
    

 

[Signature Page to First Amendment and Security Agreement]

 

 

ACKNOWLEDGMENT AND AGREEMENT OF GUARANTORS

 

The undersigned, each a Guarantor of the Indebtedness of MVC Capital, Inc. (the “Borrower”) to People’s United Bank, National Association ( “Agent”) for itself, as a lender, and as agent for the other lenders (the “Lenders”) signatory to that certain Credit and Security Agreement dated as of January 29, 2019 (as same has been and may be further modified, amended, supplemented and/or restated from time to time, the (“Credit Agreement”) by and among the Borrower, the Lenders, and the Agent, pursuant to the Guaranty Agreement dated as of January 29, 2019 (the “Guaranty”), hereby (i) acknowledges receipt of the foregoing amendment; (ii) consents to the terms and execution thereof; (iii) reaffirms its obligations to Agent, Lenders or L/C Issuer pursuant to the terms of the Guaranty; and (iv) acknowledges that the Agent and Lenders may amend, restate, extend, renew or otherwise modify the Credit Agreement and any indebtedness or agreement of the Borrower, or enter into any agreement or extend additional or other credit accommodations, without notifying or obtaining the consent of the undersigned and without impairing the liability of the undersigned under the Guaranty for all of the Borrower’s present and future indebtedness to the Agent and Lenders.

 

	
 
    	
MVC   FINANCIAL SERVICES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ MICHAEL T. TOKARZ
    
	
 
    	
Name:
    	
MICHAEL   T. TOKARZ
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MVC   CAYMAN
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ MICHAEL T. TOKARZ
    
	
 
    	
Name:
    	
MICHAEL   T. TOKARZ
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MVC   GP II, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ JAMES PINTO
    
	
 
    	
Name:
    	
JAMES   PINTO
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MVC   PARTNERS LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/S/ MICHAEL T. TOKARZ
    
	
 
    	
Name:
    	
MICHAEL   T. TOKARZ
    
	
 
    	
Title:
    	
 
    

 

Date:                  June 19, 2019

 

 

SCHEDULE 1.1

 

Lenders’ Commitments

 

	
Lender
    	
 
    	
Commitment
    	
 
    	
Commitment Percentage
    	
 
    
	
People’s United   Bank, National Association
    	
 
    	
$
    	
35,000,000.00
    	
 
    	
70
    	
%
    
	
Bank Leumi USA
    	
 
    	
$
    	
15,000,000.00
    	
 
    	
30
    	
%
    
	
TOTAL
    	
 
    	
$
    	
50,000,000.00
    	
 
    	
100
    	
%

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