Document:

tcrd-ex47_506.htm

Exhibit 4.7

Description of THL Credit, Inc.’s Registered Securities

DESCRIPTION OF OUR CAPITAL STOCK 

The following description summarizes the material provisions of the Delaware General Corporation Law and our amended and restated certificate of incorporation (“certificate of incorporation”) and bylaws, as amended (“bylaws”) of THL Credit Inc. (the “Company,” “we,” or us”). This summary may not contain all of the information that is important, and is qualified by the Delaware General Corporation Law and our certificate of incorporation and bylaws for a more detailed description of the provisions summarized below. 

General 

We were incorporated on May 26, 2009 under the laws of the state of Delaware. Under the terms of our certificate of incorporation, our authorized capital stock will consist solely of 100,000,000 shares of common stock, par value $0.001 per share, and 100,000,000 shares of preferred stock, par value $0.001 per share. Our common stock is quoted on The NASDAQ Global Select Market under the ticker symbol “TCRD.”

Under the terms of our certificate of incorporation, holders of common stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. Accordingly, holders of a majority of the shares of common stock entitled to vote in any election of directors may elect all of the directors standing for election. Holders of common stock are entitled to receive proportionately any distributions declared by our board of directors, subject to any preferential dividend rights of outstanding preferred stock. Upon our liquidation, dissolution or winding up, the holders of common stock are entitled to receive ratably our net assets available after the payment of all debts and other liabilities and subject to the prior rights of any outstanding preferred stock. Holders of common stock have no preemptive, subscription, redemption or conversion rights. The rights, preferences and privileges of holders of common stock are subject to the rights of the holders of any series of preferred stock which we may designate and issue in the future. In addition, holders of our common stock may participate in our dividend reinvestment plan. 

Preferred stock 

Under the terms of our certificate of incorporation, our board of directors is authorized to issue shares of preferred stock in one or more series without stockholder approval. The board has discretion to determine the rights, preferences, privileges and restrictions, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences of each series of preferred stock. The Investment Company Act of 1940, as amended (the “1940 Act”) limits our flexibility as to certain rights and preferences of the preferred stock that our certificate of incorporation may provide and requires, among other things, that immediately after issuance and before any distribution is made with respect to common stock, we meet a coverage ratio of total assets to total senior securities, which include all of our borrowings and our preferred stock, of at least 200%, and the holders of shares of preferred stock, if any are issued, must be entitled as a class to elect two directors at all times and to elect a majority of the directors if dividends on the preferred stock are unpaid in an amount equal to two full years of dividends on the preferred stock until all arrears are cured. The features of the preferred stock will be further limited by the requirements applicable to regulated investment companies under the Internal Revenue Code of 1986, as amended, or the Code. The purpose of authorizing our board to issue preferred stock and determine its rights and preferences is to eliminate delays associated with a stockholder vote on specific issuances. The issuance of preferred stock, while providing desirable flexibility in connection with providing leverage for our investment program, possible acquisitions and other corporate purposes, could make it more difficult for a third party to acquire, or could discourage a third party from acquiring, a majority of our outstanding voting stock. 

Delaware law and certain charter and bylaw provisions; anti-takeover measures 

At our 2018 Annual Meeting of Stockholders, stockholders approved an amendment to our certificate of incorporation to make certain revisions to bring provisions in our certificate of incorporation into conformity with Delaware law and our certificate of incorporation and bylaws provide that: 

  •   directors may be removed with or without cause by the affirmative vote of the holders of a majority of the then outstanding shares of our capital stock entitled to vote; and 

  •   subject to the rights of any holders of preferred stock, any vacancy on the board of directors, however the vacancy occurs, including a vacancy due to an enlargement of the board, may only be filled by vote of a majority of the directors then in office. 

The limitations on the filling of vacancies could have the effect of making it more difficult for a third party to acquire us, or of discouraging a third party from acquiring us. Our certificate of incorporation also provides that special meetings of the stockholders may only be called by our board of directors, Chairman or Chief Executive Officer. 

Delaware’s corporation law provides generally that the affirmative vote of a majority of the shares entitled to vote on any matter is required to amend a corporation’s certificate of incorporation or bylaws, unless a corporation’s certificate of incorporation or bylaws requires a greater percentage. Our certificate of incorporation permits our board of directors to adopt, amend or repeal our bylaws. Our bylaws generally can be amended by approval of at least 66 2/3% of the total number of continuing directors or by a vote of a majority of our stockholders. 

Limitations of liability and indemnification 

Under our certificate of incorporation, we will fully indemnify any person who was or is involved in any actual or threatened action, suit or proceeding by reason of the fact that such person is or was one of our directors or officers; provided, however, that, except for proceedings to enforce rights to indemnification, we will not be obligated to indemnify any director or officer in connection with a proceeding initiated by such person unless such proceeding was authorized or consented to by our board of directors. So long as we are regulated under the 1940 Act, the above indemnification and limitation of liability is limited by the 1940 Act or by any valid rule, regulation or order of the Securities and Exchange Commission thereunder. The 1940 Act provides, among other things, that a company may not indemnify any director or officer against liability to it or its security holders to which he or she might otherwise be subject by reason of his or her willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his or her office. 

Delaware law also provides that indemnification permitted under the law shall not be deemed exclusive of any other rights to which the directors and officers may be entitled under the corporation’s bylaws, any agreement, a vote of stockholders or otherwise. 

We have obtained liability insurance for our officers and directors. 

Anti-takeover provisions 

The following summary outlines certain provisions of Delaware law and our certificate of incorporation regarding anti-takeover provisions. These provisions could have the effect of limiting the ability of other entities or persons to acquire control of us by means of a tender offer, proxy contest or otherwise, or to change the composition of our board of directors. These provisions are expected to discourage certain coercive takeover practices and inadequate takeover bids and to encourage persons seeking to acquire control of us to negotiate first with our board of directors. These measures, however, may delay, defer or prevent a transaction or a change in control that might otherwise be in the best interests of our stockholders and could have the effect of depriving stockholders of an opportunity to sell their shares at a premium over prevailing market prices. These attempts could also have the effect of increasing our expenses and disrupting our normal operation. We believe, however, that the benefits of these provisions outweigh the potential disadvantages of discouraging acquisition proposals because the negotiation of the proposals may improve their terms. 

Pursuant to Delaware law and our certificate of incorporation, a director may be removed from office with or without cause by a vote of the holders of at a majority of the shares then entitled to vote for the election of the respective director. 

In addition, our certificate of incorporation requires the favorable vote of a majority of our board of directors followed by the favorable vote of the holders of at least 75% of our outstanding shares of each affected class or series, voting separately as a class or series, to approve, adopt or authorize certain transactions with 10% or greater holders of a class or series of shares and their associates, unless the transaction has been approved by at least 80% of our directors, in which case “a majority of the outstanding voting securities” (as defined in the 1940 Act) will be required. For purposes of these provisions, a 10% or greater holder of a class or series of shares, or a principal stockholder, refers to any person who, whether directly or indirectly and whether alone or together with its affiliates and associates, beneficially owns 10% or more of the outstanding shares of our voting securities. 

The 10% holder transactions subject to these special approval requirements are: the merger or consolidation of us or any subsidiary of ours with or into any principal stockholder; the issuance of any of our securities to any principal stockholder for cash, except pursuant to any automatic dividend reinvestment plan; the sale, lease or exchange of all or any substantial part of our assets to any principal stockholder, except assets having an aggregate fair market value of less than 5% of our total assets, aggregating for the purpose of such computation all assets sold, leased or exchanged in any series of similar transactions within a twelve-month period; or the sale, lease or exchange to us or any subsidiary of ours, in exchange for our securities, of any assets of any principal stockholder, except assets having an aggregate fair market value of less than 5% of our total assets, aggregating for purposes of such computation all assets sold, leased or exchanged in any series of similar transactions within a twelve-month period. 

To convert us to a closed-end or open-end investment company, to merge or consolidate us with any entity or sell all or substantially all of our assets to any entity in a transaction as a result of which the governing documents of the surviving entity do not contain substantially the same anti-takeover provisions as are provided in our certificate of incorporation or to liquidate and dissolve us other than in connection with a qualifying merger, consolidation or sale of assets or to amend certain of the provisions relating to these matters, our certificate of incorporation requires either (i) the favorable vote of a majority of our continuing directors followed by the favorable vote of the holders of at least 75% of our then outstanding shares of each affected class or series of our shares, voting separately as a class or series or (ii) the favorable vote of at least 80% of the then outstanding shares of our capital stock, voting together as a single class. As part of any such conversion to an open-end investment company, substantially all of our investment policies and strategies and portfolio would have to be modified to assure the degree of portfolio liquidity required for open-end investment companies. In the event of our conversion to an open-end investment company, the common shares would cease to be listed on any national securities exchange or market system. Stockholders of an open-end investment company may require the company to redeem their shares at any time, except in certain circumstances as authorized by or under the 1940 Act, at their net asset value, less such redemption charge, if any, as might be in effect at the time of a redemption. You should assume that it is not likely that our board of directors would vote to convert us to an open-end fund. 

The 1940 Act defines “a majority of the outstanding voting securities” as the lesser of a majority of the outstanding shares and 67% of a quorum of a majority of the outstanding shares. For the purposes of calculating “a majority of the outstanding voting securities” under our certificate of incorporation, each class and series of our shares will vote together as a single class, except to the extent required by the 1940 Act or our certificate of incorporation, with respect to any class or series of shares. If a separate class vote is required, the applicable proportion of shares of the class or series, voting as a separate class or series, also will be required. 

Our board of directors has determined that provisions with respect to the board of directors and the stockholder voting requirements described above, which voting requirements are greater than the minimum requirements under Delaware law or the 1940 Act.

 

DESCRIPTION OF DEBT SECURITIES

As required by federal law for all bonds and notes of companies that are publicly offered, our debt securities are governed by an indenture, dated as of November 18, 2014 by and between the Company and U.S. Bank National 

Association (the “trustee”), and is subject to and governed by the Trust Indenture Act of 1939, as amended. The trustee has two main roles. First, the trustee can enforce holders rights against us if we default. There are some limitations on the extent to which the trustee acts on the holders’ behalf, described in the second paragraph under “Events of Default—Remedies if an Event of Default Occurs.” Second, the trustee performs certain administrative duties for us. 

Because this section is a summary, it does not describe every aspect of the debt securities and the indenture. The following description summarizes the material provisions of the indenture. We urge you to read the indenture because it, and not this description, defines rights of the holders of debt securities. For example, in this section, we use capitalized words to signify terms that are specifically defined in the indenture. We have filed the form of the indenture with the SEC. The specific terms of any outstanding debt securities modify the terms of the indenture as provided in such debt securities supplemental indenture.

We are permitted, under specified conditions, to issue multiple classes of indebtedness if our asset coverage, as defined in the 1940 Act, is at least equal to 200% (or 150% if certain requirements are met) immediately after each such issuance. In addition, while any indebtedness and other senior securities remain outstanding, we must make provisions to prohibit any distribution to our stockholders or the repurchase of such securities or shares unless we meet the applicable asset coverage ratios at the time of the distribution or repurchase. We may also borrow amounts up to 5% of the value of our total assets for temporary or emergency purposes without regard to asset coverage.

General 

The indenture does not limit the amount of debt securities that may be issued thereunder from time to time. Debt securities issued under the indenture, when a single trustee is acting for all debt securities issued under the indenture, are called the “indenture securities.” The indenture also provides that there may be more than one trustee thereunder, each with respect to one or more different series of indenture securities. See “Resignation of Trustee” section below. At a time when two or more trustees are acting under the indenture, each with respect to only certain series, the term “indenture securities” means the one or more series of debt securities with respect to which each respective trustee is acting. In the event that there is more than one trustee under the indenture, the powers and trust obligations of each trustee described in this prospectus will extend only to the one or more series of indenture securities for which it is trustee. If two or more trustees are acting under the indenture, then the indenture securities for which each trustee is acting would be treated as if issued under separate indentures. 

We have the ability to issue indenture securities with terms different from those of indenture securities previously issued and, without the consent of the holders thereof, to reopen a previous issue of a series of indenture securities and issue additional indenture securities of that series unless the reopening was restricted when that series was created.

Issuance of Securities in Registered Form 

Debt securities issued in book-entry form are represented by global securities. 

Book-Entry Holders 

Debt securities are represented by one or more global securities registered in the name of a depositary that holds them on behalf of financial institutions that participate in the depositary’s book-entry system. These participating institutions, in turn, hold beneficial interests in the debt securities held by the depositary or its nominee. These institutions may hold these interests on behalf of themselves or customers. 

Under the indenture, only the person in whose name a debt security is registered is recognized as the holder of that debt security. Consequently, for debt securities issued in book-entry form, we recognize only the depositary as the holder of the debt securities and we will make all payments on the debt securities to the depositary. The depositary will then pass along the payments it receives to its participants, which in turn will pass the payments along to their customers who are the beneficial owners. The depositary and its participants do so under agreements 

they have made with one another or with their customers; they are not obligated to do so under the terms of the debt securities. 

As a result, investors do not own debt securities directly. Instead, they own beneficial interests in a global security, through a bank, broker or other financial institution that participates in the depositary’s book-entry system or holds an interest through a participant. As long as the debt securities are represented by one or more global securities, investors will be indirect holders, and not holders, of the debt securities. 

Legal Holders 

Our obligations, as well as the obligations of the applicable trustee and those of any third parties employed by us or the applicable trustee, run only to the legal holders of the debt securities. We do not have obligations to investors who hold beneficial interests in global securities, in street name or by any other indirect means. This will be the case whether an investor chooses to be an indirect holder of a debt security or has no choice because we are issuing the debt securities only in book-entry form. 

For example, once we make a payment or give a notice to the holder, we have no further responsibility for the payment or notice even if that holder is required, under agreements with depositary participants or customers or by law, to pass it along to the indirect holders but does not do so. Similarly, if we want to obtain the approval of the holders for any purpose (for example, to amend an indenture or to relieve us of the consequences of a default or of our obligation to comply with a particular provision of an indenture), we would seek the approval only from the holders, and not the indirect holders, of the debt securities. Whether and how the holders contact the indirect holders is up to the holders. 

When we refer to you, we mean those who invest in the debt securities being offered by this prospectus, whether they are the holders or only indirect holders of those debt securities. When we refer to your debt securities, we mean the debt securities in which you hold a direct or indirect interest.

Global Securities 

Our debt securities were issued as registered securities in book-entry form only. A global security represents one or any other number of individual debt securities. Generally, all debt securities represented by the same global securities will have the same terms. 

 

Each debt security issued in book-entry form is represented by a global security that we deposit with and register in the name of a financial institution or its nominee that we select. The financial institution that we select for this purpose is called the depositary. The Depository Trust Company, New York, New York, known as DTC, is the depositary for all debt securities issued in book-entry form. 

A global security may not be transferred to or registered in the name of anyone other than the depositary or its nominee, unless special termination situations arise. We describe those situations below under “Special Situations when a Global Security Will Be Terminated”. As a result of these arrangements, the depositary, or its nominee, is the sole registered owner and holder of all debt securities represented by a global security, and investors will be permitted to own only beneficial interests in a global security. Beneficial interests must be held by means of an account with a broker, bank or other financial institution that in turn has an account with the depositary or with another institution that has an account with the depositary. Thus, an investor whose security is represented by a global security will not be a holder of the debt security, but only an indirect holder of a beneficial interest in the global security. 

Special Considerations for Global Securities 

As an indirect holder, an investor’s rights relating to a global security are governed by the account rules of the investor’s financial institution and of the depositary, as well as general laws relating to securities transfers. The depositary that holds the global security is considered the holder of the debt securities represented by the global security. 

For debt securities issued only in the form of a global security, an investor should be aware of the following: 

 

	
 
	
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An investor cannot cause the debt securities to be registered in his or her name, and cannot obtain certificates for his or her interest in the debt securities, except in the special situations we describe below. 

 

	
 
	
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An investor will be an indirect holder and must look to his or her own bank or broker for payments on the debt securities and protection of his or her legal rights relating to the debt securities, as we describe under “Issuance of Securities in Registered Form” above. 

 

	
 
	
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An investor may not be able to sell interests in the debt securities to some insurance companies and other institutions that are required by law to own their securities in non-book-entry form. 

 

	
 
	
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An investor may not be able to pledge his or her interest in a global security in circumstances where certificates representing the debt securities must be delivered to the lender or other beneficiary of the pledge in order for the pledge to be effective. 

 

	
 
	
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The depositary’s policies, which may change from time to time, will govern payments, transfers, exchanges and other matters relating to an investor’s interest in a global security. We and the trustee have no responsibility for any aspect of the depositary’s actions or for its records of ownership interests in a global security. We and the trustee also do not supervise the depositary in any way. 

 

	
 
	
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If we redeem less than all the debt securities of a particular series being redeemed, DTC’s practice is to determine by lot the amount to be redeemed from each of its participants holding that series. 

 

	
 
	
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An investor is required to give notice of exercise of any option to elect repayment of its debt securities, through its participant, to the applicable trustee and to deliver the related debt securities by causing its participant to transfer its interest in those debt securities, on DTC’s records, to the applicable trustee. 

 

	
 
	
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DTC requires that those who purchase and sell interests in a global security deposited in its book-entry system use immediately available funds. Your broker or bank may also require you to use immediately available funds when purchasing or selling interests in a global security. 

 

	
 
	
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Financial institutions that participate in the depositary’s book-entry system, and through which an investor holds its interest in a global security, may also have their own policies affecting payments, notices and other matters relating to the debt securities. There may be more than one financial intermediary in the chain of ownership for an investor. We do not monitor and are not responsible for the actions of any of those intermediaries. 

Special Situations when a Global Security will be Terminated 

In a few special situations described below, a global security will be terminated and interests in it will be exchanged for certificates in non-book-entry form (certificated securities). After that exchange, the choice of whether to hold the certificated debt securities directly or in street name will be up to the investor. Investors must consult their own banks or brokers to find out how to have their interests in a global security transferred on termination to their own names, so that they will be holders. We have described the rights of legal holders and street name investors under “Issuance of Securities in Registered Form” above. 

If a global security is terminated, only the depositary, and not we or the applicable trustee, is responsible for deciding the names of the institutions in whose names the debt securities represented by the global security will be registered and, therefore, who will be the holders of those debt securities. 

Payment and Paying Agents 

We will pay interest to the person listed in the applicable trustee’s records as the owner of the debt security at the close of business on a particular day in advance of each due date for interest, even if that person no longer owns the debt security on the interest due date. That day, often approximately two weeks in advance of the interest due 

date, is called the “record date.” Because we will pay all the interest for an interest period to the holders on the record date, holders buying and selling debt securities must work out between themselves the appropriate purchase price. The most common manner is to adjust the sales price of the debt securities to prorate interest fairly between buyer and seller based on their respective ownership periods within the particular interest period. This prorated interest amount is called “accrued interest.” 

Payments on Global Securities 

We will make payments on a global security in accordance with the applicable policies of the depositary as in effect from time to time. Under those policies, we will make payments directly to the depositary, or its nominee, and not to any indirect holders who own beneficial interests in the global security. An indirect holder’s right to those payments will be governed by the rules and practices of the depositary and its participants. 

Payment when Offices are Closed 

If any payment is due on a debt security on a day that is not a business day, we will make the payment on the next day that is a business day. Payments made on the next business day in this situation will be treated under the indenture as if they were made on the original due date, except as otherwise indicated in the attached prospectus supplement. Such payment will not result in a default under any debt security or the indenture, and no interest will accrue on the payment amount from the original due date to the next day that is a business day. 

Events of Default 

Holders have rights if an Event of Default occurs in respect of the debt securities of the applicable series and is not cured, as described later in this subsection. 

The term “Event of Default” in respect of the debt securities of your series means any of the following: 

 

	
 
	
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we do not pay the principal of, or any premium on, a debt security of the series on its due date, and do not cure this default within five days; 

 

	
 
	
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we do not pay interest on a debt security of the series when due, and such default is not cured within 30 days; 

 

	
 
	
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we do not deposit any sinking fund payment in respect of debt securities of the series on its due date, and do not cure this default within five days; 

 

	
 
	
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we remain in breach of a covenant in respect of debt securities of the series for 60 days after we receive a written notice of default stating we are in breach. The notice must be sent by either the trustee or holders of at least 25% of the principal amount of debt securities of the series; 

 

	
 
	
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we file for bankruptcy or certain other events of bankruptcy, insolvency or reorganization occur and remain undischarged or unstayed for a period of 60 days; 

 

	
 
	
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on the last business day of each of 24 consecutive calendar months, we have an asset coverage of less than 100%; and 

 

	
 
	
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any other Event of Default in respect of debt securities of the series described in the applicable prospectus supplement occurs. 

An Event of Default for a particular series of debt securities does not necessarily constitute an Event of Default for any other series of debt securities issued under the same or any other indenture. The trustee may withhold notice to the holders of debt securities of any default, except in the payment of principal, premium or interest, if it considers the withholding of notice to be in the best interests of the holders. 

Remedies if an Event of Default Occurs 

If an Event of Default has occurred and has not been cured, the trustee or the holders of at least 25% in principal amount of the debt securities of the affected series may declare the entire principal amount of all the debt securities of that series to be due and immediately payable. This is called a declaration of acceleration of maturity. In certain circumstances, a declaration of acceleration of maturity may be canceled by the holders of a majority in principal amount of the debt securities of the affected series. 

 

The trustee is not required to take any action under the indenture at the request of any holders unless the holders offer the trustee reasonable protection from expenses and liability (called an “indemnity”). If reasonable indemnity is provided, the holders of a majority in principal amount of the outstanding debt securities of the relevant series may direct the time, method and place of conducting any lawsuit or other formal legal action seeking any remedy available to the trustee. The trustee may refuse to follow those directions in certain circumstances. No delay or omission in exercising any right or remedy will be treated as a waiver of that right, remedy or Event of Default. 

Before a holder is allowed to bypass the trustee and bring their own lawsuit or other formal legal action or take other steps to enforce such holder’s rights or protect such holder’s interests relating to the debt securities, the following must occur: 

 

	
 
	
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the holder must give the trustee written notice that an Event of Default has occurred and remains uncured; 

 

	
 
	
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the holders of at least 25% in principal amount of all outstanding debt securities of the relevant series must make a written request that the trustee take action because of the default and must offer reasonable indemnity to the trustee against the cost and other liabilities of taking that action; 

 

	
 
	
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the trustee must not have taken action for 60 days after receipt of the above notice and offer of indemnity; and 

 

	
 
	
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the holders of a majority in principal amount of the debt securities must not have given the trustee a direction inconsistent with the above notice during that 60 day period. 

However, holders are entitled at any time to bring a lawsuit for the payment of money due on a holder’s debt securities on or after the due date. 

Holders of a majority in principal amount of the debt securities of the affected series may waive any past defaults other than: 

 

	
 
	
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the payment of principal, any premium or interest; or 

 

	
 
	
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in respect of a covenant that cannot be modified or amended without the consent of each holder. 

Each year, we will furnish to each trustee a written statement of certain of our officers certifying that to their knowledge we are in compliance with the indenture and the debt securities, or else specifying any default. 

Merger or Consolidation 

Under the terms of the indenture, we are generally permitted to consolidate or merge with another entity. We may also be permitted to sell all or substantially all of our assets to another entity. However, we may not take any of these actions unless all the following conditions are met: 

 

	
 
	
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where we merge out of existence or sell our assets, the resulting entity must agree to be legally responsible for our obligations under the debt securities; 

 

	
 
	
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immediately after giving effect to such transaction, no Default or Event of Default shall have happened and be continuing; 

 

	
 
	
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under the indenture, no merger or sale of assets may be made if as a result any of our property or assets or any property or assets of one of our subsidiaries, if any, would become subject to any mortgage, lien or other encumbrance unless either (a) the mortgage, lien or other encumbrance could be created pursuant to the limitation on liens covenant in the indenture without equally and ratably securing the indenture securities or (b) the indenture securities are secured equally and ratably with or prior to the debt secured by the mortgage, lien or other encumbrance;

 

	
 
	
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we must deliver certain certificates and documents to the trustee; and 

 

	
 
	
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we must satisfy any other requirements specified in the prospectus supplement relating to a particular series of debt securities. 

Modification or Waiver 

There are three types of changes we can make to the indenture and the debt securities issued thereunder. 

Changes Requiring Approval 

First, there are changes that we cannot make to debt securities without specific approval of all of the holders. The following is a list of those types of changes: 

 

	
 
	
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change the stated maturity of the principal of or interest on a debt security; 

 

	
 
	
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reduce any amounts due on a debt security; 

 

	
 
	
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reduce the amount of principal payable upon acceleration of the maturity of a security following a default; 

 

	
 
	
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adversely affect any right of repayment at the holder’s option; 

 

	
 
	
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change the place (except as otherwise described in the prospectus or prospectus supplement) or currency of payment on a debt security; 

 

	
 
	
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impair your right to sue for payment; 

 

	
 
	
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adversely affect any right to convert or exchange a debt security in accordance with its terms; 

 

	
 
	
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modify the subordination provisions in the indenture in a manner that is adverse to holders of the debt securities; 

 

	
 
	
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reduce the percentage of holders of debt securities whose consent is needed to modify or amend the indenture; 

 

	
 
	
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reduce the percentage of holders of debt securities whose consent is needed to waive compliance with certain provisions of the indenture or to waive certain defaults; 

 

	
 
	
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modify any other aspect of the provisions of the indenture dealing with supplemental indentures, modification and waiver of past defaults, changes to the quorum or voting requirements or the waiver of certain covenants; and 

 

	
 
	
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change any obligation we have to pay additional amounts. 

Changes Not Requiring Approval 

The second type of change does not require any vote by the holders of the debt securities. This type is limited to clarifications and certain other changes that would not adversely affect holders of the outstanding debt securities 

in any material respect. We also do not need any approval to make any change that affects only debt securities to be issued under the indenture after the change takes effect. 

 

Changes Requiring Majority Approval 

Any other change to the indenture and the debt securities would require the following approval: 

 

	
 
	
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if the change affects only one series of debt securities, it must be approved by the holders of a majority in principal amount of that series; and 

 

	
 
	
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if the change affects more than one series of debt securities issued under the same indenture, it must be approved by the holders of a majority in principal amount of all of the series affected by the change, with all affected series voting together as one class for this purpose. 

The holders of a majority in principal amount of all of the series of debt securities issued under an indenture, voting together as one class for this purpose, may waive our compliance with some of our covenants in that indenture. However, we cannot obtain a waiver of a payment default or of any of the matters covered by the bullet points included above under “—Changes Requiring Your Approval.” 

Further Details Concerning Voting 

When taking a vote, we will use the following rules to decide how much principal to attribute to a debt security: 

 

	
 
	
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for original issue discount securities, we will use the principal amount that would be due and payable on the voting date if the maturity of these debt securities were accelerated to that date because of a default; 

 

	
 
	
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for debt securities whose principal amount is not known (for example, because it is based on an index), we will use a special rule for that debt security described in the prospectus supplement; and 

 

	
 
	
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for debt securities denominated in one or more foreign currencies, we will use the U.S. dollar equivalent. 

Debt securities will not be considered outstanding, and therefore not eligible to vote, if we have deposited or set aside in trust money for their payment or redemption. Debt securities will also not be eligible to vote if they have been fully defeased as described later under “Defeasance—Full Defeasance.” 

We will generally be entitled to set any day as a record date for the purpose of determining the holders of outstanding indenture securities that are entitled to vote or take other action under the indenture. If we set a record date for a vote or other action to be taken by holders of one or more series, that vote or action may be taken only by persons who are holders of outstanding indenture securities of those series on the record date and must be taken within eleven months following the record date. 

Defeasance 

The following provisions will be applicable to each series of debt securities. 

Covenant Defeasance 

Under current U.S. federal tax law, we can make the deposit described below and be released from some of the restrictive covenants in the indenture under which the particular series was issued. This is called “covenant defeasance.” In that event, holders would lose the protection of those restrictive covenants but would gain the protection of having money and government securities set aside in trust to repay the holders’ debt securities. If applicable, holders also would be released from the subordination provisions as described under the “Indenture Provisions—Subordination” section below. In order to achieve covenant defeasance, we must do the following: 

 

	
 
	
•
	
 
	
if the debt securities of the particular series are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of such debt securities a combination of money and U.S. government or U.S. government agency notes or bonds that will generate enough cash to make interest, principal and any other payments on the debt securities on their various due dates; 

 

	
 
	
•
	
 
	
we must deliver to the trustee a legal opinion of our counsel confirming that, under current U.S. federal income tax law, we may make the above deposit without causing you to be taxed on the debt securities any differently than if we did not make the deposit and just repaid the debt securities ourselves at maturity; and 

 

	
 
	
•
	
 
	
we must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, as amended, and a legal opinion and officers’ certificate stating that all conditions precedent to covenant defeasance have been complied with. 

If we accomplish covenant defeasance, holders can still look to us for repayment of the debt securities if there were a shortfall in the trust deposit or the trustee is prevented from making payment. For example, if one of the remaining Events of Default occurred (such as our bankruptcy) and the debt securities became immediately due and payable, there might be a shortfall. Depending on the event causing the default, you may not be able to obtain payment of the shortfall. 

Full Defeasance 

If there is a change in U.S. federal tax law, as described below, we can legally release ourselves from all payment and other obligations on the debt securities of a particular series (called “full defeasance”) if we put in place the following other arrangements for you to be repaid: 

 

	
 
	
•
	
 
	
if the debt securities of the particular series are denominated in U.S. dollars, we must deposit in trust for the benefit of all holders of such debt securities a combination of money and United States government or United States government agency notes or bonds that will generate enough cash to make interest, principal and any other payments on the debt securities on their various due dates. 

 

	
 
	
•
	
 
	
we must deliver to the trustee a legal opinion confirming that there has been a change in current U.S. federal tax law or an IRS ruling that allows us to make the above deposit without causing you to be taxed on the debt securities any differently than if we did not make the deposit and just repaid the debt securities ourselves at maturity. Under current U.S. federal tax law, the deposit and our legal release from the debt securities would be treated as though we paid you your share of the cash and notes or bonds at the time the cash and notes or bonds were deposited in trust in exchange for your debt securities and you would recognize gain or loss on the debt securities at the time of the deposit; 

 

	
 
	
•
	
 
	
we must deliver to the trustee a legal opinion of our counsel stating that the above deposit does not require registration by us under the 1940 Act, as amended, and a legal opinion and officers’ certificate stating that all conditions precedent to defeasance have been complied with; 

 

	
 
	
•
	
 
	
Defeasance must not result in a breach of the indenture or any other material agreements; and 

 

	
 
	
•
	
 
	
Satisfy the conditions for covenant defeasance contained in any supplemental indentures. 

If we ever did accomplish full defeasance, as described above, holders would have to rely solely on the trust deposit for repayment of the debt securities. Holders could not look to us for repayment in the unlikely event of any shortfall. Conversely, the trust deposit would most likely be protected from claims of our lenders and other creditors if we ever became bankrupt or insolvent. 

 

Form, Exchange and Transfer of Certificated Registered Securities 

Holders may exchange their certificated securities, if any, for debt securities of smaller denominations or combined into fewer debt securities of larger denominations, as long as the total principal amount is not changed. 

Holders may exchange or transfer their certificated securities, if any, at the office of their trustee. We have appointed the trustee to act as our agent for registering debt securities in the names of holders transferring debt securities. We may appoint another entity to perform these functions or perform them ourselves. 

Holders will not be required to pay a service charge to transfer or exchange their certificated securities, if any, but they may be required to pay any tax or other governmental charge associated with the transfer or exchange. The transfer or exchange will be made only if our transfer agent is satisfied with the holder’s proof of legal ownership. 

If we have designated additional transfer agents for your debt security, they will be named in your prospectus supplement. We may appoint additional transfer agents or cancel the appointment of any particular transfer agent. We may also approve a change in the office through which any transfer agent acts. 

If any certificated securities of a particular series are redeemable and we redeem less than all the debt securities of that series, we may block the transfer or exchange of those debt securities during the period beginning 15 days before the day we mail the notice of redemption and ending on the day of that mailing, in order to freeze the list of holders to prepare the mailing. We may also refuse to register transfers or exchanges of any certificated securities selected for redemption, except that we will continue to permit transfers and exchanges of the unredeemed portion of any debt security that will be partially redeemed. 

Resignation of Trustee 

Each trustee may resign or be removed with respect to one or more series of indenture securities provided that a successor trustee is appointed to act with respect to these series. In the event that two or more persons are acting as trustee with respect to different series of indenture securities under the indenture, each of the trustees will be a trustee of a trust separate and apart from the trust administered by any other trustee. 

The Trustee under the Indenture 

U.S. Bank National Association serves as the trustee under the indenture. 

 

6.125% SENIOR NOTES DUE 2023

The below description of our 6.125% Senior Notes due 2023 (the “2023 Notes”) should be read together with the indenture and the Third Supplemental Indenture, dated as of October 5, 2018, by and between the Company and U.S. Bank National Association, as trustee (the “trustee”) (the “Third Supplemental Indenture” and together with the indenture, the “2023 Notes Indenture”). The terms below modify any terms of the indenture as stated below.  

 

	
Issuer 
	
THL Credit, Inc. 

 

	
Title of the securities 
	
6.125% Notes due 2023 

 

	
Aggregate principal amount 
	
$50,000,000 

 

 

	
Initial public offering price 
	
$25 per 2023 Note (Par) 

 

	
Principal payable at maturity 
	
100% of the aggregate principal amount; the principal amount of each 2023 Note will be payable on its stated maturity date at the office of the trustee in the City of St. Paul, Minnesota or at such other office designated by the trustee. 

 

	
Type of Note 
	
Fixed rate note 

 

	
Listing 
	
The 2023 Notes are listed on the NYSE under the trading symbol “TCRW.” 

 

	
Interest rate 
	
6.125% per year 

 

	
Day count basis 
	
360-day year of twelve 30-day months 

 

	
Original issue date 
	
October 5, 2018 

 

	
Stated maturity date 
	
October 30, 2023 

 

	
Date interest starts accruing 
	
October 5, 2018 

 

	
Interest payment dates 
	
Each March 30, June 30, September 30 and December 30, commencing December 30, 2018. If an interest payment date falls on a non-business day, the applicable interest payment will be made on the next business day and no additional interest will accrue as a result of such delayed payment. 

 

	
Interest periods 
	
The initial interest period will be the period from and including          , 2018, to, but excluding, the initial interest payment date, and the subsequent interest periods will be the periods from and including an interest payment date to, but excluding, the next interest payment date or the stated maturity date, as the case may be. 

 

	
Regular record dates for interest 
	
Each March 15, June 15, September 15 and December 15. 

 

	
Specified currency 
	
U.S. Dollars 

 

	
Place of payment 
	
St. Paul, Minnesota 

 

	
Ranking of Notes 
	
The 2023 Notes are our direct unsecured obligations and will rank: 

 

	
 
	
•
	
 
	
pari passu with our other outstanding and future unsecured unsubordinated indebtedness; 

 

	
 
	
•
	
 
	
senior to any of our future indebtedness that expressly provides it is subordinated to the 2023 Notes; 

 

	
 
	
•
	
 
	
effectively subordinated to all our existing and future secured indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such indebtedness; and 

 

	
 
	
•
	
 
	
structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, of which there is currently none. 

 

	
Denominations 
	
The 2023 Notes are in denominations of $25 and integral multiples of $25 in excess thereof. 

 

	
Business day 
	
Each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City or the place of payment are authorized or required by law or executive order to close. 

 

	
Optional redemption 
	
The 2023 Notes may be redeemed in whole or in part at any time or from time to time at our option on or after October 30, 2021, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. 

 

	
 
	
Holders may be prevented from exchanging or transferring the 2023 Notes when they are subject to redemption. In case any 2023 Notes are to be redeemed in part only, the redemption notice will provide that, upon surrender of such 2023 Note, each holder will receive, without a charge, a new 2023 Note or 2023 Notes of authorized denominations representing the principal amount of such holder’s remaining unredeemed 2023 Notes. Any exercise of our option to redeem the 2023 Notes will be done in compliance with the indenture and the 1940 Act, to the extent applicable. 

 

	
 
	
If we redeem only some of the 2023 Notes, the trustee will determine the method for selection of the particular 2023 Notes to be redeemed, in accordance with the indenture and the 1940 Act and in accordance with the rules of any national securities exchange or quotation system on which the 2023 Notes are listed, in each case, to the extent applicable. Unless we default in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the 2023 Notes called for redemption. 

 

	
Sinking fund 
	
The 2023 Notes will not be subject to any sinking fund. 

 

	
Repayment at option of Holders 
	
Holders will not have the option to have the 2023 Notes repaid prior to the stated maturity date. 

 

	
Defeasance and covenant defeasance 
	
The 2023 Notes are subject to defeasance by us. 

 

	
 
	
The 2023 Notes are subject to covenant defeasance by us. 

 

	
 
	
Under the Revolving Facility, as currently in effect, we would be prohibited from defeasing the 2023 Notes or effecting covenant defeasance under the 2023 Notes without the consent of the lenders. 

 

	
Form of Notes 
	
The 2023 Notes will be represented by global securities that will be deposited and registered in the name of DTC, or its nominee. Except in limited circumstances, you will not receive certificates for the 2023 Notes. Beneficial interests in the 2023 Notes will be represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect participants in DTC. Investors may elect to hold interests in the 2023 Notes through either DTC, if they are a participant, or indirectly through organizations which are participants in DTC. 

 

	
Trustee, Paying Agent and Security Registrar 
	
U.S. Bank National Association is the trustee, security registrar and paying agent. U.S. Bank National Association, in each of its capacities, including without limitation as trustee, security registrar and paying agent, assumes no responsibility for the accuracy or completeness of the information concerning us or our affiliates or any other party contained 

in this document or the related documents or for any failure by us or any other party to disclose events that may have occurred and may affect the significance or accuracy of such information, or for any information provided to it by us, including but not limited to settlement amounts and any other information. 

 

	
 
	
We may maintain banking relationships in the ordinary course of business with the trustee and its affiliates. 

 

	
Other covenants 
	
In addition to the covenants described in the indenture, the following covenants shall apply to the 2023 Notes: 

 

	
 
	
•
	
 
	
We agree that for the period of time during which the 2023 Notes are outstanding, we will not violate Section 18(a)(1)(A) as modified by Section 61(a) of the 1940 Act or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the SEC. Currently, these provisions generally prohibit us from making additional borrowings, including through the issuance of additional debt or the sale of additional debt securities, unless our asset coverage, as defined in the 1940 Act, equals at least 200% after such borrowings (or 150% if certain requirements are met). 

 

	
 
	
•
	
 
	
We agree that, for the period of time during which the 2023 Notes are outstanding, we will not declare any dividend (except a dividend payable in our stock), or declare any other distribution (except a distribution payable in our stock), upon any class of our capital stock, or purchase or redeem any of our capital stock, if our asset coverage, as defined in the 1940 Act and after giving effect to any exemptive relief granted to us by the SEC with respect to such asset coverage, is (i) below the Asset Coverage Requirement (as defined below) at the time of the declaration of such dividend or distribution or purchase or redemption and after deducting the amount of such dividend, distribution, purchase or redemption and (ii) has been below the Asset Coverage Requirement for the six consecutive months immediately preceding such declaration or purchase or redemption, in each case whether or not we continue to be subject to the Asset Coverage Requirement. Notwithstanding the foregoing restriction, we will be permitted to declare a cash dividend or distribution on our capital stock only up to such amount as is necessary for us to maintain our status as a regulated investment company under Subchapter M of the the Code. “Asset Coverage Requirement” shall mean the asset coverage test set forth in Section 18(a)(1)(B) as modified by Section 61(a) of the 1940 Act or any successor provisions with respect to such asset coverage test.

 

	
 
	
 

 

	
Reports by the Company 
	
If, at any time, we are not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934 as amended, or the Exchange Act, to file any periodic reports with the SEC, we agree to furnish to holders of the 2023 Notes and the trustee, for the period of time during which the 2023 Notes are outstanding, our audited annual consolidated financial statements, within 90 days of our fiscal year end, and unaudited interim consolidated financial statements, within 45 days of our fiscal quarter end (other than our fourth fiscal 

quarter). All such financial statements will be prepared, in all material respects, in accordance with applicable United States generally accepted accounting principles.

 

	
 
	
 

 

	
Modifications to events of default 
	
The following events of default, as described in the indenture: 

 

	
 
	
•
	
 
	
We do not pay the principal of, or any premium on, a debt security of the series on its due date, and do not cure this default within 5 days. 

 

	
 
	
•
	
 
	
On the last business day of each of 24 consecutive calendar months, we have an asset coverage of less than 100%. 

 

	
 
	
with respect to the Notes has been revised to read as follows: 

 

	
 
	
•
	
 
	
We do not pay the principal of, or any premium on, any 2023 Note on its due date. 

 

	
 
	
•
	
 
	
On the last business day of each of 24 consecutive calendar months, we have an asset coverage of less than 100%, giving effect to any exemptive relief granted to us by the SEC. 

 

	
Global Clearance and Settlement Procedures 
	
Interests in the 2023 Notes trade in DTC’s Same Day Funds Settlement System, and any permitted secondary market trading activity in such 2023 Notes will, therefore, be required by DTC to be settled in immediately available funds. None of the issuer, the trustee or the paying agent will have any responsibility for the performance by DTC or its participants or indirect participants of their respective obligations under the rules and procedures governing their operations. 

 

 

6.75% SENIOR NOTES DUE 2022

The below description of our 6.75% Senior Notes due 2022 (the “2022 Notes”) should be read together with the indenture and the Second Supplemental Indenture, dated as of December 14, 2015, by and between the Company and the trustee (the “Second Supplemental Indenture” and together with the indenture, the “2022 Notes Indenture”). The terms below modify any terms of the indenture as stated below.  

 

 

	
Issuer 
	
THL Credit, Inc. 

 

	
Title of the securities 
	
6.75% Notes due 2022 

 

	
Aggregate principal amount 
	
$60,000,000 

  

	
Initial public offering price 
	
100.00% of the aggregate principal amount. 

 

	
Principal payable at maturity 
	
100.00% of the aggregate principal amount; the principal amount of each 2022 Note will be payable on its stated maturity date at the office of the trustee in the City of St. Paul, Minnesota or at such other office designated by the trustee. 

 

	
Type of Note 
	
Fixed rate note 

 

	
Listing 
	
The 2022 Notes are listed on the New York Stock Exchange under the symbol “TCRZ.” 

 

	
Interest rate 
	
6.75% per year 

 

	
Day count basis 
	
360-day year of twelve 30-day months 

  

	
Stated maturity date 
	
December 30, 2022 

  

	
Interest payment dates 
	
Each March 30, June 30, September 30, and December 30, commencing December 30, 2016. If an interest payment date falls on a non-business day, the applicable interest payment will be made on the next business day and no additional interest will accrue as a result of such delayed payment. 

 

	
Interest periods 
	
The subsequent interest periods will be the periods from and including an interest payment date to, but excluding, the next interest payment date or the stated maturity date, as the case may be. 

 

	
Regular record dates for interest 
	
Each March 15, June 15, September 15 and December 15. 

 

	
Specified currency 
	
U.S. Dollars 

 

	
Place of payment 
	
St. Paul, Minnesota 

 

	
Ranking of Notes 
	
The 2022 Notes will be our direct unsecured obligations and will rank: 

 

	
 
	
•
	
 
	
pari passu with our other outstanding and future senior unsecured indebtedness; 

 

	
 
	
•
	
 
	
senior to any of our future indebtedness that expressly provides it is subordinated to the 2022 Notes; 

 

	
 
	
•
	
 
	
effectively subordinated to all our existing and future secured indebtedness (including indebtedness that is initially unsecured to which we subsequently grant security), to the extent of the value of the assets securing such indebtedness, including without limitation, the $96.2 million in borrowings under; and 

 

	
 
	
•
	
 
	
structurally subordinated to all existing and future indebtedness and other obligations of any of our subsidiaries, of which there is currently none. 

 

	
Denominations 
	
The 2022 Notes are in denominations of $25 and integral multiples of $25 in excess thereof. 

 

	
Business day 
	
Each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City or the place of payment are authorized or required by law or executive order to close. 

 

	
Optional redemption 
	
The 2022 Notes may be redeemed in whole or in part at any time or from time to time at our option on or after December 30, 2018, upon not 

less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. 

 

	
 
	
Holders may be prevented from exchanging or transferring the 2022 Notes when they are subject to redemption. In case any 2022 Notes are to be redeemed in part only, the redemption notice will provide that, upon surrender of such 2022 Note, such holder will receive, without a charge, a new 2022 Note or 2022 Notes of authorized denominations representing the principal amount of such holder’s remaining unredeemed 2022 Notes. Any exercise of our option to redeem the 2022 Notes will be done in compliance with the indenture and the 1940 Act, to the extent applicable.

 

 

	
 
	
If we redeem only some of the 2022 Notes, the trustee will determine the method for selection of the particular 2022 Notes to be redeemed, in accordance with the Third Supplemental Indenture and the 1940 Act and in accordance with the rules of any national securities exchange or quotation system on which the 2022 Notes are listed, in each case, to the extent applicable. Unless we default in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the 2022 Notes called for redemption. 

 

	
Sinking fund 
	
The 2022 Notes will not be subject to any sinking fund. 

 

	
Repayment at option of Holders 
	
Holders will not have the option to have the 2022 Notes repaid prior to the stated maturity date. 

 

	
Defeasance and covenant defeasance 
	
The 2022 Notes are subject to defeasance by us. 

 

	
 
	
The 2022 Notes are subject to covenant defeasance by us. 

 

	
Form of Notes 
	
The 2022 Notes will be represented by global securities that will be deposited and registered in the name of DTC, or its nominee. Except in limited circumstances, holders will not receive certificates for the 2022 Notes. Beneficial interests in the 2022 Notes will be represented through book-entry accounts of financial institutions acting on behalf of beneficial owners as direct and indirect participants in DTC. Investors may elect to hold interests in the 2022 Notes through either DTC, if they are a participant, or indirectly through organizations which are participants in DTC. 

 

	
Trustee, Paying Agent and Security Registrar 
	
U.S. Bank National Association is the trustee, security registrar and paying agent. U.S. Bank National Association, in each of its capacities, including without limitation as trustee, security registrar and paying agent, assumes no responsibility for the accuracy or completeness of the information concerning us or our affiliates or any other party contained in this document or the related documents or for any failure by us or any other party to disclose events that may have occurred and may affect the significance or accuracy of such information, or for any information provided to it by us, including but not limited to settlement amounts and 

any other information. We may maintain banking relationships in the ordinary course of business with the trustee and its affiliates. 

 

 

	
Other covenants 
	
In addition to the covenants described in the indenture, the following covenant shall apply to the Notes: 

 

	
 
	
•
	
 
	
We agree that for the period of time during which the 2022 Notes are outstanding, we will not violate Section 18(a)(1)(A) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the SEC. 

 

	
 
	
•
	
 
	
We agree that, for the period of time during which the 2022 Notes are outstanding, we will not declare any dividend (except a dividend payable in our stock), or declare any other distribution (except a distribution payable in our stock), upon any class of our capital stock, or purchase or redeem any of our capital stock, if our asset coverage, as defined in the 1940 Act and after giving effect to any exemptive relief granted to us by the SEC with respect to such asset coverage, is (i) below the Asset Coverage Requirement (as defined below) at the time of the declaration of such dividend or distribution or purchase or redemption and after deducting the amount of such dividend, distribution, purchase or redemption and (ii) has been below the Asset Coverage Requirement for the six consecutive months immediately preceding such declaration or purchase or redemption. Notwithstanding the foregoing restriction, we will be permitted to declare a cash dividend or distribution on our capital stock only up to such amount as is necessary for us to maintain our status as a regulated investment company under Subchapter M of the Code. “Asset Coverage Requirement” shall mean the asset coverage test set forth in Section 18(a)(1)(B) as modified by Section 61(a)(1) of the 1940 Act or any successor provisions with respect to such asset coverage test. 

 

	
Reports by the Company 
	
If, at any time, we are not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934 to file any periodic reports with the SEC, we agree to furnish to holders of the 2022 Notes and the trustee, for the period of time during which the 2022 Notes are outstanding, our audited annual consolidated financial statements, within 90 days of our fiscal year end, and unaudited interim consolidated financial statements, within 45 days of our fiscal quarter end (other than our fourth fiscal quarter). All such financial statements will be prepared, in all material respects, in accordance with applicable United States generally accepted accounting principles.

 

	
 
	
 

 

	
Modifications to events of default 
	
The following events of default, as described in the indenture: 

 

	
 
	
•
	
 
	
We do not pay the principal of, or any premium on, a debt security of the series on its due date, and do not cure this default within 5 days. 

 

	
 
	
•
	
 
	
On the last business day of each of 24 consecutive calendar months, we have an asset coverage of less than 100%. 

 

	
 
	
with respect to the 2022 Notes has been revised to read as follows: 

 

	
 
	
•
	
 
	
We do not pay the principal of, or any premium on, any 2022 Note on its due date. 

 

	
 
	
•
	
 
	
On the last business day of each of 24 consecutive calendar months, we have an asset coverage of less than 100%, giving effect to any exemptive relief granted to us by the SEC. 

 

	
Global Clearance and Settlement Procedures 
	
Interests in the 2022 Notes trade in DTC’s Same Day Funds Settlement System, and any permitted secondary market trading activity in such Notes will, therefore, be required by DTC to be settled in immediately available funds. None of the issuer, the trustee or the paying agent will have any responsibility for the performance by DTC or its participants or indirect participants of their respective obligations under the rules and procedures governing their operations.tcrd-ex1010_505.htm

Exhibit 10.10

 

Execution Version

 

AMENDMENT NO. 3 TO SECOND AMENDED AND RESTATED 
SENIOR SECURED REVOLVING CREDIT AGREEMENT 

This AMENDMENT NO. 3  (this “Amendment”) dated as of January 14, 2020, is made with respect to the Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of December 15, 2017 (as amended by that certain Amendment No. 1 to Second Amended and Restated Senior Secured Revolving Credit Agreement and Third Amended and Restated Guarantee, Pledge and Security Agreement, dated as of March 26, 2019, Amendment No. 2 to Second Amended and Restated Senior Secured Revolving Credit Agreement, dated as of July 24, 2019, and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among THL Credit, Inc., a Delaware corporation (the “Borrower”), the lenders from time to time party thereto and ING Capital LLC, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”).  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement (as amended hereby).  

W I T N E S S E T H:

WHEREAS, pursuant to the Credit Agreement, the Lenders have made certain loans and other extensions of credit to the Borrower; 

WHEREAS, On December 8, 2019, THL Credit Advisors LLC (“Advisors”) entered into an agreement and plan of merger (the “Merger Agreement”) by and among, inter alia,  Advisors, First Eagle Investment Management, LLC (“Parent”), and First Eagle Alternative Credit, LLC, a wholly-owned subsidiary of Parent (“Merger Sub”). Pursuant to the terms of the Merger Agreement, at the closing of the transactions contemplated by the Merger Agreement, Merger Sub will merge with and into Advisors, with Advisors surviving the merger as a wholly-owned subsidiary of Parent (the “Merger”);

WHEREAS, the Borrower has requested that the Lenders, the Administrative Agent and the Collateral Agent amend certain provisions of the Credit Agreement in connection with the Merger;

WHEREAS, the Lenders signatory hereto, the Administrative Agent and the Collateral Agent have agreed to do so on the terms and subject to the conditions contained in this Amendment. 

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

ACTIVE/101850926.2  

 

 

 

2

SECTION I  AMENDMENTS TO CREDIT AGREEMENT

Effective as of the Amendment No. 3 Effective Date (as defined below), and subject to the terms and conditions set forth below, the Credit Agreement is hereby amended as follows:

(a)Section 1.01 is hereby amended by adding the following definitions in alphabetical order thereto:

““First Eagle” means First Eagle Holdings, Inc., a Delaware corporation, or an Affiliate thereof.  

“THLCA Acquisition Date” means the date on which First Eagle completes its acquisition of THL Credit Advisors LLC, pursuant to the Agreement and Plan of Merger Agreement dated December 8, 2019, as may be amended, restated, supplemented or otherwise modified from time to time.”

(b)Section 1.01 is hereby amended by deleting the definitions of “Investment Advisor”, “Investment Advisor Departure Event”, and “Permitted Holders” in their entirety and replacing each with the following:

“Investment Advisor” means (a) prior to the THLCA Acquisition Date, THL Credit Advisors LLC, a Delaware limited liability company, or an Affiliate thereof and (b) on and after the THLCA Acquisition Date, (i) THL Credit Advisors LLC, (ii) First Eagle or (iii) a wholly-owned subsidiary of First Eagle.

“Investment Advisor Departure Event” means any of the following events: 

(a)the Investment Advisor shall cease to be the investment adviser of the Borrower; or

(b)in the first three years following the THLCA Acquisition Date, fewer than two of Christopher J. Flynn, James Fellows, Terrence W. Olson and any other Person reasonably acceptable to the Administrative Agent are actively engaged in the day to day operations of the Investment Advisor relating to the Borrower. 

“Permitted Holders” means (1) prior to the THLCA Acquisition Date (a) Thomas H. Lee Partners, L.P. or (b) THLP Debt Partners, L.P. or its Affiliates (but only if THLP Debt Partners, L.P. or such Affiliate(s) are under common Control with Thomas H. Lee Partners, L.P.) and (2) on and after the THLCA Acquisition Date, First Eagle.”

(c)Article IX is hereby amended by adding the following new Section 9.17 thereto:

“Acknowledgment Regarding Any Supported QFCs.  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Hedging Agreements or any other agreement or instrument that is a QFC (such support, “QFC Credit Support” and each such QFC a “Supported QFC”), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act 

 

ACTIVE/101850926.2  

 

 

 

3

(together with the regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

(a)In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”) becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States.  In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolutions Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States.  Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.

(b)As used in this Section 9.17, the following terms have the following meanings:

“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted in accordance with, 12 U.S.C. §1841(k)) of such party.

“Covered Entity” means any of the following: (i)  a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §252.82(b), (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §382.2(b).

 

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§252.81, 47.2 or 382.1, as applicable.

 

“QFC” has the meaning assigned to the term “qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. §5390(c)(8)(D).”

 

SECTION II  MISCELLANEOUS

2.1.Conditions to Effectiveness of Amendment.

This Amendment shall become effective as of the date (the “Amendment No. 3 Effective Date”) on which the Borrower and each Subsidiary Guarantor party hereto have satisfied each of the 

 

ACTIVE/101850926.2  

 

 

 

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following conditions precedent (unless a condition shall have been waived in accordance with Section 9.02 of the Credit Agreement):

(a)Executed Counterparts.  The Administrative Agent shall have received from each party hereto either (1) a counterpart of this Amendment signed on behalf of such party or (2) written evidence satisfactory to the Administrative Agent (which may include telecopy transmission or electronic mail of a signed signature page to this Amendment) that such party has signed a counterpart of this Amendment.

(b)Fees and Expenses.  The Borrower shall have paid in full to the Administrative Agent and the Lenders all fees and expenses owing related to this Amendment and the Credit Agreement owing, incurred and invoiced on or prior to the Amendment No. 3 Effective Date due to any Lender on the Amendment No. 3 Effective Date.  

(c)Other Documents.  The Administrative Agent shall have received such other documents as the Administrative Agent may reasonably request in form and substance reasonably satisfactory to the Administrative Agent.

The contemporaneous exchange and release of executed signature pages by each of the Persons contemplated to be a party hereto shall render this Amendment effective and any such exchange and release of such executed signature pages by all such persons shall constitute satisfaction or waiver (as applicable) of any condition precedent to such effectiveness set forth above. 

2.2.Representations and Warranties.  To induce the other parties hereto to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and each of the Lenders that, as of the Amendment No. 3 Effective Date and after giving effect to this Amendment:

(a)This Amendment has been duly authorized, executed and delivered by the Borrower and the Subsidiary Guarantors, and constitutes a legal, valid and binding obligation of the Borrower and the Subsidiary Guarantors enforceable in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  The Credit Agreement, as amended by this Amendment, constitutes the legal, valid and binding obligation of the Borrower enforceable in accordance with its respective terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

(b)The representations and warranties set forth in Article III of the Credit Agreement as amended by this Amendment and the representations and warranties in each other Loan Document are true and correct in all material respects (other than any representation or warranty already qualified by materiality or Material Adverse Effect, which shall be true and correct in all 

 

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respects) on and as of the Amendment No. 3 Effective Date or as to any such representations and warranties that refer to a specific date, as of such specific date.  

(c)Subject to Section 2.3, no Default or Event of Default has occurred or is continuing under the Credit Agreement.

2.3.Acknowledgement.  By entering into this Amendment, the parties hereto hereby waive their respective rights and remedies with respect to the Event of Default under paragraph (n) of Article VII of the Credit Agreement that would have occurred upon consummation of the Merger if not for the amendment to the definition of Permitted Holders under this Amendment.  

2.4.Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  This Amendment constitutes the entire contract between and among the parties relating to the subject matter hereof and supersedes any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Delivery of an executed counterpart of this Amendment by telecopy or electronic mail shall be effective as delivery of a manually executed counterpart of this Amendment.

2.5.Payment of Expenses.  The Borrower agrees to pay and reimburse, pursuant to Section 9.03 of the Credit Agreement, the Administrative Agent for all of its reasonable and documented out-of-pocket costs and expenses incurred in connection with this Amendment.

2.6.GOVERNING LAW.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

2.7.WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

2.7.Incorporation of Certain Provisions.  The provisions of Sections 9.01, 9.07, 9.09 and 9.12 of the Credit Agreement are hereby incorporated by reference mutatis mutandis as if fully set forth herein.

2.8.Effect of Amendment.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders, the Administrative Agent, the Collateral Agent, the Borrower or the Subsidiary Guarantors under the Credit Agreement or any other Loan Document, and, except as 

 

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expressly set forth herein, shall not alter, modify, amend or in any way affect any of the other terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle any Person 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 or any other Loan Document in similar or different circumstances.  This Amendment shall apply and be effective only with respect to the provisions amended herein of the Credit Agreement.  Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of similar import shall mean and be a reference to the Credit Agreement as amended by this Amendment and each reference in any other Loan Document shall mean the Credit Agreement as amended hereby.  This Amendment shall constitute a Loan Document.

2.9.Consent and Affirmation.  Without limiting the generality of the foregoing, by its execution hereof, (i) each of the Borrower and the Subsidiary Guarantors hereby to the extent applicable as of the Amendment No. 3 Effective Date consents to this Amendment and the transactions contemplated hereby and (ii) each of the Borrower and the Subsidiary Guarantors  hereby to the extent applicable as of the Amendment No. 3 Effective Date (x) agrees that the Guarantee and Security Agreement and each of the other Security Documents is in full force and effect, (y) confirms its guarantee (solely in the case of the Subsidiary Guarantors) and affirms its obligations under the Guarantee and Security Agreement and confirms its grant of a security interest in its assets as Collateral for the Secured Obligations (as defined in the Guarantee and Security Agreement), and (z) acknowledges and affirms that such guarantee and/or grant, as applicable, is in full force and effect in respect of, and to secure, the Secured Obligations (as defined in the Guarantee and Security Agreement ).

[Signature pages follow]

 

 

 

ACTIVE/101850926.2  

 

 

 

 

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

	
 
	
THL CREDIT, INC., as Borrower

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
 /s/ Terrence W. Olson
	
 

	
 
	
Name: Terrence W. Olson 

	
 
	
Title: Chief Financial Officer

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
THL CREDIT HOLDINGS, INC., as Subsidiary

	
 
	
Guarantor

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
 /s/ Terrence W. Olson

	
 
	
Name: Terrence W. Olson

	
 
	
Title: Chief Financial Officer

	
 
	
 
	
 
	
 
	
 
	
 

 

 

[Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement]

 

	
 
	
ING CAPITAL LLC, as Administrative Agent,

	
 
	
Collateral Agent, Issuing Bank and a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
 /s/ Patrick Frisch
	
 

	
 
	
Name: Patrick Frisch

	
 
	
Title: Managing Director

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Dina Kook
	
 

	
 
	
Name: Dina Kook

	
 
	
Title: Vice President

 

 

[Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement]

 

	
 
	
BANK OF AMERICA, N.A., as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Hema Kishnani
	
 

	
 
	
Name: Hema Kishnani

	
 
	
Title: Director

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

 

	
 
	
CIT BANK, N.A., as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Robert L. Klein
	
 

	
 
	
Name: Robert L. Klein

	
 
	
Title: Director

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

 

	
 
	
CITIBANK, N.A., as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Erik Andersen
	
 

	
 
	
Name: Erik Andersen

	
 
	
Title: Vice President

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

 

	
 
	
CITY NATIONAL BANK, as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Brandon L. Feitelson
	
 

	
 
	
Name: Brandon L. Feitelson C.F.A.

	
 
	
Title: Senior Vice President

 

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

 

	
 
	
CUSTOMERS BANK, as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Lyle P. Cunningham
	
 

	
 
	
Name: Lyle P. Cunningham

	
 
	
Title: Executive Vice President

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

 

	
 
	
STATE STREET BANK AND TRUST

	
 
	
COMPANY, as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ John Doherty
	
 

	
 
	
Name: John Doherty

	
 
	
Title: Vice President

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

 

	
 
	
STIFEL BANK & TRUST, as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Joseph L. Sooter, Jr.
	
 

	
 
	
Name: Joseph L. Sooter, Jr.

	
 
	
Title: Senior Vice President

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

 

	
 
	
TIAA, FSB, AS SUCCESSOR IN INTEREST

	
 
	
TO CERTAIN ASSETS OF EVERBANK

	
 
	
COMMERCIAL FINANCE, INC., as a Lender

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Joshua Kinsey
	
 

	
 
	
Name: Joshua Kinsey

	
 
	
Title: Vice President

 

 

 

Amendment No. 3 to Second Amended and Restated Revolving Credit Agreement

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