Document:

exhibit102creditagreement.htm

 

Exhibit 10.2

 

FOURTH AMENDMENT

 

This Fourth Amendment, dated as of October 6, 2010 (this “Amendment”), to the Credit Agreement dated as of April 19, 2006, as amended by the First Amendment dated as of December 23, 2008, the Second Amendment dated as of March 10, 2010 and the Third Amendment dated as of July 21, 2010  (the “Credit Agreement”), among AVIS BUDGET HOLDINGS, LLC (“Holdings”), AVIS BUDGET CAR RENTAL, LLC (the “Borrower”), the subsidiary borrowers from time to time parties thereto, the several lenders from time to time parties thereto (the “Lenders”), BANK OF AMERICA, N.A., CREDIT AGRICOLE CORPORATE & INVESTMENT BANK NEW YORK BRANCH (formerly known as CALYON) and CITICORP USA, INC. as documentation agents, WACHOVIA BANK, NATIONAL ASSOCIATION as co-documentation agent, DEUTSCHE BANK SECURITIES INC. as syndication agent, JPMORGAN CHASE BANK, N.A., as administrative agent (in such capacity, the “Administrative Agent”; and together with the other agents named therein, the “Agents”) and CITIGROUP GLOBAL MARKETS INC., as arranger of this Amendment (in such capacity, the “Fourth Amendment Arranger”).

 

W I T N E S S E T H:

 

 

WHEREAS, Holdings, the Borrower, the Lenders and the Agents are parties to the Credit Agreement;  

 

 

 WHEREAS, the Borrower has requested that the Lenders amend certain terms in the Credit Agreement in the manner provided for herein; and  

 

 

WHEREAS, the Administrative Agent and the Lenders are willing to agree to the requested amendments subject to the provisions of this Amendment;  

 

NOW, THEREFORE, in consideration of the premises contained herein, the parties hereto agree as follows:

 

1. Defined Terms.  Unless otherwise defined herein, capitalized terms are used herein as defined in the Credit Agreement as amended hereby.

 

2. Amendments to Section 1.1 (Defined Terms).  Section 1.1 of the Credit Agreement is hereby amended as follows:

 

 (a)           by amending the definition of “Permitted Refinancing” by deleting all the text preceding the proviso thereto and inserting the following in lieu thereof:  “any Indebtedness or Capital Stock issued in exchange for, or for the purpose of applying the net proceeds thereof to extend, refinance, renew, replace, defease or refund other Indebtedness”; and

 

(b)           by adding the following new definitions in the appropriate alphabetical order:

 

“Dollar Target”: Dollar Thrifty Automotive Group, Inc.

 

“DTA Acquisition”: the acquisition in accordance with the terms hereof (by merger or otherwise) by the Borrower or a Subsidiary Guarantor of 100% of the outstanding Capital Stock of Dollar Target.

 

 “Fourth Amendment”: the Fourth Amendment to this Agreement, dated as of October 6, 2010, among Holdings, Borrower, the Administrative Agent, the Fourth Amendment Arranger and the Lenders party thereto.

 

 “Fourth Amendment Effective Date”: the date on which all of the conditions set forth in Section 6 of the Fourth Amendment shall have been satisfied.

 

  

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3. Amendment to Section 7.2 (Indebtedness).   Section 7.2 of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause (x) thereof, inserting the word “and” at the end of clause (y) thereof, and inserting immediately following clause (y) thereof the following new clause (z):

 

“(z)           Indebtedness of the Borrower and its Subsidiaries (including any Guarantee Obligations in respect thereof) incurred (i) to finance a portion of the DTA Acquisition or (ii) to refinance any Term Loans (including any Incremental Term Loans), and any Permitted Refinancing thereof;”

 

4. Amendment to Section 7.3 (Liens).  Section 7.3 of the Credit Agreement is hereby amended by deleting the word “and” at the end of clause (r) thereof, inserting the word “and” at the end of clause (s) thereof, and inserting immediately following clause (s) thereof the following new clause (t):

 

“(t)           Liens on the proceeds of Indebtedness permitted to be incurred by Section 7.2 in favor of escrow agents, account custodians or similar third party intermediaries during the period which any such proceeds are held under escrow or similar contingent release arrangements;”  

 

5. Representations and Warranties.  On and as of the date hereof, the Borrower hereby confirms, reaffirms and restates that the representations and warranties set forth in Section 4 of the Credit Agreement are true and correct in all material respects except to the extent that such representations and warranties expressly relate solely to a specific earlier date, and except for any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect,” or similar language, in which case the Borrower hereby confirms, reaffirms and restates that such representations and warranties are true and correct in all respects.

 

6. Conditions to Effectiveness.  This Amendment shall become effective (the effective date of this Amendment, the “Fourth Amendment Effective Date”) upon the receipt by Fourth Amendment Arranger of the following:

 

(i)  counterparts to this Amendment duly executed by Holdings, the Borrower, the Administrative Agent and the Required Lenders; and

 

(ii)  counterparts to the Guarantee and Collateral Acknowledgement substantially in the form attached hereto as Exhibit A duly executed by each Loan Party.

7. Continuing Effect; No Other Amendments or Consents.  Except as expressly provided herein, all of the terms and provisions of the Credit Agreement are and shall remain in full force and effect.  The amendments provided for herein are limited to the specific subsections of the Credit Agreement specified herein and shall not constitute a consent, waiver or amendment of, or an indication of the Administrative Agent’s or the Lenders’ willingness to consent to any action requiring consent under any other provisions of the Credit Agreement or the same subsection for any other date or time period. Upon the effectiveness of the amendments set forth herein, on and after the Fourth Amendment Effective Date, each reference in the Credit Agreement to “this Agreement,” “the Agreement,” “hereunder,” “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “Credit Agreement,” “thereunder,” “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as amended hereby.

 

8. Affect on Third Amendment.  The amendments contained in Section 2(b) of this Amendment adding the defined terms “Dollar Target” and “DTA Acquisition” to Section 1.1 of the Credit Agreement and the amendments contained in Section 3 this Amendment shall be in lieu of the 

 

  

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corresponding amendments contained in the Third Amendment (the “Duplicative Amendments”), which Duplicative Amendments shall be disregarded after the Fourth Amendment Effective Date.  In the event the amendments to Section 7.3 in the Third Amendment become effective, the amended subsection references contained therein shall be modified to take into account the amended subsection references set forth in Section 4 of this Amendment.

 

9. Expenses.  The Borrower agrees to pay and reimburse the Fourth Amendment Arranger and the Administrative Agent for all its reasonable costs and out-of-pocket expenses incurred in connection with the preparation and delivery of this Amendment, including, without limitation, the reasonable fees and disbursements of counsel to the Fourth Amendment Arranger and the Administrative Agent in accordance with the terms in the Credit Agreement (and in the case of the Fourth Amendment Arranger, to the extent the Administrative Agent would be paid and reimbursed under the Credit Agreement).

 

10. Counterparts.  This Amendment may be executed in any number of counterparts by the parties hereto (including by facsimile and electronic (e.g. “.pdf”, or “.tif”) transmission), each of which counterparts when so executed shall be an original, but all the counterparts shall together constitute one and the same instrument.

 

11. GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

 

  

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

 

 

 

	  	
AVIS BUDGET HOLDINGS, LLC

 

 

	  
	
By:

	
/s/ David B. Wyshner

	  
	  	
Name:         David B. Wyshner

	  
	  	
Title:           Executive Vice President and Treasurer

	  

 

 

	  	
AVIS BUDGET CAR RENTAL, LLC

 

 

	  
	
By:

	
/s/ David B. Wyshner

	  
	  	
Name:         David B. Wyshner

	  
	  	
Title:           Executive Vice President and Treasurer

	  

 

 

  

  

  

 

 

	  	
CITIGROUP GLOBAL MARKETS INC., as

Fourth Amendment Arranger

 

 

	  
	
By:

	
/s/ Christopher M. Wood

	  
	  	
Name:         Christopher M. Wood

	  
	  	
Title:           Director

	  

 

 

	  	
JPMORGAN CHASE BANK, N.A., as Administrative Agent

 

	  
	
By:

	
/s/ Mary E. Gherty

	  
	  	
Name:         Mary E. Gherty

	  
	  	
Title:           Managing Director

	  

 

  

  

  

 

	  	
BANK OF AMERICA, N.A. as a Lender

 

 

	  
	
By:

	
/s/ Brian Lukehart

	  
	  	
Name:         Brian Lukehart

	  
	  	
Title:           VP, Corporate Debt Products

	  

 

 

  

  

  

 

	  	
THE BANK OF NOVA SCOTIA, as a Lender

 

 

	  
	
By:

	
/s/ Todd Meller

	  
	  	
Name:         Todd Meller

	  
	  	
Title:           Managing Director

	  

  

  

  

 

	  	
CITIBANK N.A., as a Lender

 

 

	  
	
By:

	
/s/ Justin S. Tichauer

	  
	  	
Name:         Justin S. Tichauer

	  
	  	
Title:           Vice President

	  

 

  

  

  

	  	
Crédit Agricole Corporate & Investment Bank, as a Lender

 

 

	  
	
By:

	
/s/ Michael Madnick

	  
	  	
Name:         Michael Madnick

	  
	  	
Title:           Managing Director

	  

 

 

	  	
 

	  
	
By:

	
/s/ Yuri Muzichenko

	  
	  	
Name:         Yuri Muzichenko

	  
	  	
Title:           Director

	  

  

  

  

 

	  	
DEUTSCHE BANK AG NEW YORK BRANCH, as a Lender

 

 

	  
	
By:

	
/s/ Scottye Lindsey

	  
	  	
Name:         Scottye Lindsey

	  
	  	
Title:           Director

	  

	  	  	  
	
By:

	
/s/ Erin Morrissey

	  
	  	
Name:         Erin Morrissey

	  
	  	
Title:           Vice President

	  

 

  

  

  

 

	  	
JPMORGAN CHASE BANK, N.A., as a Lender

 

 

	  
	
By:

	
/s/ Mary E. Gherty

	  
	  	
Name:         Mary E. Gherty

	  
	  	
Title:           Managing Director

	  

 

 

  

  

  

 

 

	  	
THE ROYAL BANK OF SCOTLAND PLC, as a Lender

 

	  
	
By:

	
/s/ James Welch

	  
	  	
Name:         James Welch

	  
	  	
Title:           Senior Vice President

	  

 

  

  

  

	  	
Wells Fargo Bank, N.A., successor-by-merger to Wachovia Bank, National Association, as a Lender

 

	  
	
By:

	
/s/ Ronald F. Bentien, Jr.

	  
	  	
Name:         Ronald F. Bentien, Jr.

	  
	  	
Title:           Directorexhibit103approvalletter1.htm

Exhibit 10.3

Avis Budget Rental Car Funding (AESOP) LLC

48 Wall Street

New York, NY 10005

 

October 7, 2010

 

 

 

To the Persons Listed

On Schedule I Attached Hereto

 

 

Ladies and Gentlemen:

 

Reference is made to the Amended and Restated Series 2008-1 Supplement, dated as of October 29, 2009 (as amended to date, the “Series 2008-1 Supplement”), among Avis Budget Rental Car Funding (AESOP) LLC (“ABRCF”), as Issuer, Avis Budget Car Rental, LLC (“ABCR”), as Administrator, the CP Conduit Purchasers, the APA Banks and the Funding Agents named therein, JPMorgan Chase Bank, N.A., as Administrative Agent, and The Bank of New York Mellon Trust Company, N.A., as Trustee (in such capacity, the “Trustee”) and as Series 2008-1 Agent, to the Second Amended and Restated Base Indenture, dated as of June 3, 2004 (as amended to date, the “Base Indenture”), between ABRCF and the Trustee.  Capitalized terms used herein, unless otherwise defined herein, shall have the respective meanings set forth in the Base Indenture or the Series 2008-1 Supplement, as applicable.

 

ABCR, Avis Budget Holdings, LLC, JPMorgan Chase Bank, N.A., as Administrative Agent, and the Lenders party thereto have entered into the Fourth Amendment, dated as of the date hereof and attached as Schedule II hereto, to the Credit Agreement (the “Credit Agreement Amendment”).

 

Pursuant to the definition of “Credit Agreement” in the Series 2008-1 Supplement, references to the Credit Agreement in the Series 2008-1 Supplement do not give effect to any amendment thereto (subsequent to the Second Amendment thereto dated as of March 10, 2010) unless such amendment has been approved in writing by the Requisite Noteholders.

 

Pursuant to this approval letter (this “Approval”), ABRCF is requesting the approval of each of the persons identified on Schedule I attached hereto of the Credit Agreement Amendment.

 

By executing the appropriate signature block below, each of the Purchaser Groups approves the Credit Agreement Amendment for purposes of the definition of “Credit Agreement” in the Series 2008-1 Supplement.  Upon the receipt by ABRCF (or its agent) of such approvals from the Purchaser Groups comprising the Requisite Noteholders, references to the Credit Agreement in the Series 2008-1 Supplement shall be deemed to be references to the Credit Agreement as further amended by the Credit Agreement Amendment.

 

  

  

  

If you agree to the foregoing, please sign and return a copy of this Approval by facsimile or email to Kate Barrington (fax no.: (212) 354-8113; email: kbarrington@whitecase.com).  Please also send ten (10) executed originals to Kate Barrington at White & Case LLP, 1155 Avenue of the Americas, New York, New York 10036.

 

This Approval may be executed in any number of counterparts, and by the different parties hereto on separate counterparts, each of which when executed and delivered, shall be an original, but all of which shall together constitute one and the same instrument.  Execution and delivery of this Approval by delivery of facsimile signatures shall have the same force and effect as delivery of manual signatures hereon.

 

THIS APPROVAL AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

  

-2-

  

 

	  	
Very truly yours,

 

 

AVIS BUDGET RENTAL CAR FUNDING

(AESOP) LLC

 

 

	  
	
By:

	
/s/ Rochelle Tarlowe

	  
	  	
Name:           Rochelle Tarlowe

	  
	  	
Title:           Vice President and Treasurer

	  

 

 

 

  

  

  

AGREED, ACKNOWLEDGED AND APPROVED:

 

	  	
LIBERTY STREET FUNDING LLC,

as a CP Conduit Purchaser under the Series

2008-1 Supplement

 

 

	  
	
By:

	
/s/ Frank B. Bilotta

	  
	  	
Name:        Frank B. Bilotta

	  
	  	
Title:          President

	  

 

 

 

	  	
THE BANK OF NOVA SCOTIA,

as a Funding Agent and an APA Bank under

the Series 2008-1 Supplement

 

 

	  
	
By:

	
/s/ Darren Ward

	  
	  	
Name:        Darren Ward

	  
	  	
Title:          Director

	  

 

 

  

  

  

 

 

	  	
FALCON ASSET SECURITIZATION COMPANY LLC,

as a CP Conduit Purchaser under the Series

2008-1 Supplement

 

 

	  
	
By:

	
/s/ Catherine V. Frank

	  
	  	
Name:         Catherine V. Frank

	  
	  	
Title:           Managing Director

	  

 

 

	  	
JPMORGAN CHASE BANK, N.A.

as a Funding Agent under the Series

2008-1 Supplement

 

 

	  
	
By:

	
/s/ Catherine V. Frank

	  
	  	
Name:         Catherine V. Frank

	  
	  	
Title:           Managing Director

	  

 

 

 

	  	
JPMORGAN CHASE BANK, N.A.

as an APA Bank under the Series 2008-1

Supplement

 

	  
	
By:

	
/s/ Catherine V. Frank

	  
	  	
Name:         Catherine V. Frank

	  
	  	
Title:           Managing Director

	  

 

 

  

  

  

 

 

 

	  	
ATLANTIC ASSET SECURITIZATION LLC,

     as a CP Conduit Purchaser under the Series

     2008-1 Supplement

 

 

	  
	
By:

	
/s/ Sam Pilcer

	  
	  	
Name:         Sam Pilcer

	  
	  	
Title:           Managing Director

	  
	  	
 

  

	  
	
By:

	
/s/ Kostantina Kourmpetis

	  
	  	
Name:         Kostantina Kourmpetis

	  
	  	
Title:           Managing Director

	  

 

 

 

 

	  	
CREDIT AGRICOLE CORPORATE & INVESTMENT BANK NEW YORK BRANCH,

     as a Funding Agent and an APA Bank under the

     Series 2008-1 Supplement

 

 

	  
	
By:

	
/s/ Sam Pilcer

	  
	  	
Name:         Sam Pilcer

	  
	  	
Title:           Managing Director

	  
	  	
  

 

	  
	
By:

	
/s/ Kostantina Kourmpetis

	  
	  	
Name:         Kostantina Kourmpetis

	  
	  	
Title:           Managing Director

	  

 

 

 

  

  

  

 

	  	
AMSTERDAM FUNDING CORPORATION,

     as a CP Conduit Purchaser under the Series 2008-1 Supplement

 

 

	  
	
By:

	
/s/ Bernard J. Angelo

	  
	  	
Name:         Bernard J. Angelo

	  
	  	
Title:           Vice President

	  

 

 

 

	  	
THE ROYAL BANK OF SCOTLAND PLC,

as an APA Bank under the Series 2008-1 Supplement

by:  RBS Securities Inc., as agent

 

 

	  
	
By:

	
/s/ David Viney

	  
	  	
Name:         David Viney

	  
	  	
Title:           Managing Director

	  

 

 

 

	  	
THE ROYAL BANK OF SCOTLAND PLC,

as a Funding Agent under the Series 2008-1 Supplement

by: RBS Securities Inc., as agent

 

 

	  
	
By:

	
/s/ David Viney

	  
	  	
Name:         David Viney

	  
	  	
Title:           Managing Director

	  

 

 

  

  

  

 

ACKNOWLEDGED BY:

 

 

	  	
AVIS BUDGET CAR RENTAL, LLC,

     as Administrator

 

 

	  
	
By:

	
/s/ Rochelle Tarlowe

	  
	  	
Name:         Rochelle Tarlowe

	  
	  	
Title:           Vice President and Treasurer

	  

 

 

  

  

  

 

	  	
JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

	  
	
By:

	
/s/ Catherine V. Frank

	  
	  	
Name:           Catherine V. Frank

	  
	  	
Title:           Managing Director

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