Document:

ex10_1.htm

Exhibit 10.1

JOINDER AND AMENDMENT NO. 1 TO AMENDED AND RESTATED REVOLVING CREDIT,

TERM LOAN AND SECURITY AGREEMENT

This JOINDER AND AMENDMENT NO. 1 TO AMENDED AND RESTATED REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT (this “Joinder”), dated as of August 1, 2011, is by and among OF AIR HOLDINGS CORPORATION, a Delaware corporation (“Holdings”), OMNIFLIGHT HELICOPTERS, INC., a Texas corporation (“Omni Helicopters”), OMNIFLIGHT HELICOPTER SERVICES, INC., a Delaware corporation (“Omni Services”), OMNI TRANSPORT SYSTEMS, ALABAMA, LLC, a Nevada limited liability company (“Omni Alabama”), OMNI TRANSPORT SYSTEMS, CHARLESTON, LLC, a Nevada limited liability company (“Omni Charleston”), NATIVE AIR SERVICES, INC., a Nevada corporation (“Native Air”), NATIVE AMERICAN AIR AMBULANCE, INC., a Nevada corporation (“Native Ambulance Inc.”), NATIVE AMERICAN AIR AMBULANCE, LLC, a Delaware limited liability company (“Native Ambulance LLC”), ENCHANTMENT AVIATION, INC., a New Mexico corporation (“Enchantment”), OTS (SUB), LLC, an Alabama limited liability company (“OTS”, and together with Holdings, Omni Helicopters, Omni Services, Omni Alabama, Omni Charleston, Native Air, Native Ambulance Inc., Native Ambulance LLC, and Enchantment, each individually an “OF Borrower” and collectively, “OF Borrowers”), KEYBANK NATIONAL ASSOCIATION, a national banking association, as administrative agent for the Lenders (in such capacities, “Agent”), PNC BANK, National Association, as a Lender, as Joint Lead Arranger and Documentation Agent,  BBVA COMPASS BANK, as a Lender, as Joint Lead Arranger and Co-Syndication Agent, BANK OF AMERICA, N.A., as a Lender, as Joint Lead Arranger and Co-Syndication Agent and the other Lenders party to the Loan Agreement (defined below).

Recitals

	 	
A.

	
On June 1, 2011, AIR METHODS CORPORATION, a Delaware corporation (“AMC”), entered into that certain Agreement and Plan of Merger dated June 1, 2011 among AMC, Air Methods Acquisition Sub, Inc., a Delaware corporation, Holdings and Wind Point Partners V, L.P., a Delaware limited partnership (the "OF Acquisition Agreement").

 

	 	
B.

	
AMC, ROCKY MOUNTAIN HOLDINGS, L.L.C., a Delaware limited liability company (“RMH”), MERCY AIR SERVICE, INC., a California corporation (“Mercy”), LIFENET, INC., a Missouri corporation (“Lifenet”), FSS AIRHOLDINGS, LLC, a Delaware limited liability company (“FSS”), CJ SYSTEMS AVIATION GROUP, INC., a Pennsylvania corporation (“CJ Systems”),AIR METHODS TRANSPORT COMPANY, a Delaware corporation (“AMTC”), UNITED ROTORCRAFT SOLUTIONS, LLC, a Texas limited liability company (“URS”), and SPECIAL JET SERVICES, LLC, a Delaware limited liability company (“SJS”) as borrowers and debtors (each individually, an “Existing Borrower” and collectively, the “Existing Borrowers”), KEYBANK NATIONAL ASSOCIATION, a national banking association, as a Lender, as lead arranger, sole book runner and administrative agent (“KeyBank” or “Agent”), PNC BANK, National Association, as a Lender, as Joint Lead Arranger and Documentation Agent,  BBVA COMPASS BANK, as a Lender, as Joint Lead Arranger and Co-Syndication Agent, BANK OF AMERICA, N.A., as a Lender, as Joint Lead Arranger and Co-Syndication Agent and the other Lenders are party to an Amended and Restated Loan Agreement dated as of July 5, 2011 (the “Loan Agreement”).

 

 

  

  

  

	 	
C.

	
The Loan Agreement contemplated that AMC would acquire the OF Borrowers pursuant to the transactions contemplated by the OF Acquisition Agreement and immediately following the closing of the transactions contemplated by the OF Acquisition Agreement, the OF Borrowers will become borrowers and debtors under the Loan Agreement on the terms and conditions described in this Joinder.

 

Any capitalized terms used but not defined in this Joinder shall have the meanings given to such terms in the Loan Agreement.

 

Agreement

1.             OF Borrowers Joined as Borrower Under Loan Agreement.  Each OF Borrower, for good and valuable consideration received and intending to be legally bound, acknowledges and agrees that, effective upon the execution and delivery of this Joinder, each does hereby join, on a joint and several basis, and for all purposes become a Borrower under the Loan Agreement, and fully assumes and otherwise is entitled to and becomes obligated and liable for and undertakes to perform, all rights, benefits, burdens, obligations and liabilities of a Borrower under the Loan Agreement.

 

2.            Representations, Warranties, and Covenants.  Each OF Borrower joins and makes, as to itself and as of the date of this Joinder, each of the representations and warranties made by the Existing Borrowers in Article VI of the Loan Agreement and agrees to the covenants set forth in the Loan Agreement.  Any disclosures and exceptions to such representations and warranties that otherwise would be disclosed in the Schedules to the Loan Agreement are disclosed in the corresponding Schedules attached to this Joinder and shall be deemed, for purposes of this Joinder and by virtue of having been set forth in the Schedules attached to this Joinder, to have been set forth in the Schedules attached to the Loan Agreement.

 

3.            Grant of Security Interest.  Each OF Borrower hereby grants to Agent, for the benefit of the Lenders, a security interest in, and a Lien on, the following property of each OF Borrower wherever located and whether now owned or hereafter acquired:

 

(a)           All Accounts (other than any governmental Accounts that are not legally assignable by such OF Borrower), Inventory, general intangibles, payment intangibles, chattel paper, documents, and instruments, whether or not specifically assigned to Agent or any Lender, automotive equipment, motor vehicles and fixtures;

 

(b)           All guaranties, collateral, liens on, or security interests in, real or personal property, leases, letters of credit, and other rights, agreements, and property securing or relating to payment of Accounts;

 

  

  

  

(c)           All rights to receive the surplus funds, if any, which are payable to such OF Borrower following the termination of any Pension Plan and the satisfaction of all liabilities to participants and beneficiaries under such Pension Plan in accordance with applicable law;

 

(d)           All trademarks, trademark rights, patents, patent rights, intellectual property licenses and permits, trade names, trade name rights, and approvals, including, without limitation, those listed on Schedule 5.1(d) attached hereto, together with all income, royalties, damages and payments now and hereafter due and payable thereunder with respect thereto;

 

(e)           Equipment, whether or not affixed to realty, including Unencumbered Aircraft and equipment located thereon but excluding any Aircraft that is not an Unencumbered Aircraft;

 

(f)           All sale, service, performance and equipment lease contracts as to which such OF Borrower is lessee, agreements and grants (whether written or oral), and any other contract (whether written or oral) between such OF Borrower and any third party (except for any real property leases, or any equipment leases that do not allow an assignment of such leases by their terms, neither of which shall be Collateral);

 

(g)           The entire goodwill and all product lines of each OF Borrower’s businesses and other general intangibles, including, without limitation, know-how, trade secrets, customer lists, proprietary information, inventions, methods, procedures and formulae in connection with the use of and symbolized by the trademarks of such OF Borrower;

 

(h)           All books, records, ledger cards, data processing records, computer software, and other property at any time evidencing or relating to Collateral;

 

(i)           All cash, cash equivalents, monies, securities (including all stock of any Affiliate owned by such OF Borrower (provided that with respect to any Foreign Subsidiary, such pledge shall be limited to sixty-five percent (65%) of such Foreign Subsidiary’s outstanding voting stock and stock equivalents and one hundred percent (100%) of such Foreign Subsidiary’s outstanding non-voting stock and stock equivalents), whether now owned or hereafter formed or acquired, and all proceeds thereof, and other property now or hereafter held, or received by, or in transit to, the Agent or any Lender from or for such OF Borrower, and all of such OF Borrower's investment property and financial assets (as each is defined in the UCC)), deposit accounts, including those described on Schedule 5.1(i) attached hereto, credits, and balances with Agent or any Lender existing at any time;

 

(j)           All parts (other than parts included in the purchase of Aircraft that is the subject of a Permitted Encumbrance), accessories, attachments, special tools, additions, replacements, substitutions, and accessions to or for all of the foregoing;

 

(k)           All Commercial Tort Claims, including those described on Schedule 5.1(k) attached hereto; and

 

(l)           All proceeds and products of all of the foregoing in any form, including, without limitation, amounts payable under any policies of insurance insuring the foregoing against loss or damage, and all increases and profits received from all of the foregoing;

 

provided, however, the Collateral shall not include any rights or interests of any OF Borrower under any licenses, leases or other contracts if and to the extent that the granting of a security interest in such licenses, leases or contract is prohibited as a matter of law (as opposed to a contractual prohibition); provided, further, (i) if any such prohibition is no longer effective, a security interest therein in favor of Agent shall automatically arise hereunder without any further action on the part of OF Borrowers or Agent and (ii) nothing contained herein shall be deemed to limit, impair or otherwise affect Agent's security interest in any rights or interests of any OF Borrower in or to monies due or to become due under any such agreement.

 

  

  

  

 

4.            Indebtedness Secured.  The Security Interest secures payment of any and all Indebtedness and the performance of all obligations and agreements of each OF Borrower to Agent or any Lender under this Joinder or any other Transaction Documents, whether now existing or hereafter incurred or arising, of every kind and character, primary or secondary, direct or indirect, absolute or contingent, sole, joint or several, and whether such Indebtedness is from time to time reduced and thereafter increased, or entirely extinguished and thereafter reincurred, including, without limitation:  (a) all Advances under the Revolving Line of Credit, the Revolving Notes, and the Swingline Note, and all Indebtedness under any Letters of Credit, including Reimbursement Obligations; (b) all amounts owed under the Term Loan; (c) all interest which accrues on any Indebtedness, until payment of such Indebtedness in full, including, without limitation, all interest provided for under this Agreement or any other Transaction Documents; (d) all other monies payable by OF Borrowers, and all obligations and agreements of OF Borrowers to Lenders, pursuant to the Transaction Documents; (e) all  Product Obligations; and (f) all monies payable by any Third Party, and all obligations and agreements of any Third Party to the Agent or any Lender, pursuant to any of the Transaction Documents.

 

5.            Notes.  Pursuant to the Loan Agreement and in connection with this Joinder, the outstanding Revolving Notes and Swingline Notes are being replaced with Amended and Restated Revolving Notes and an Amended and Restated Swingline Note, which amended notes add the OF Borrowers as makers, and such notes are the Revolving Notes and the Swingline Note, respectively, as defined in the Loan Agreement. Additionally, the OF Borrower and the Existing Borrowers shall execute and deliver to the Agent and the Lenders the Term Notes.

 

6.            Amendment.  Article VIII of the Loan Agreement is hereby amended to add a new Section 8.22 which shall read in its entirety as follows:

 

"8.22           CORPORATE HEADQUARTERS.

 

On or before December 31, 2011, (a) Borrowers shall have caused Borrowers' books and records, including Borrowers' records concerning the Collateral which are kept at the leased locations in Addison, Texas and Mesa, Arizona listed on Schedule 6.7, as amended by the Joinder and Amendment No. 1 to the Loan Agreement, to be relocated to Borrowers' chief executive offices located in Englewood, Colorado or (b) to the extent Borrowers the have not caused such books and records to be relocated to Borrowers' chief executive offices located in Englewood, Colorado, Borrowers shall have delivered to Agent a Landlord Agreement, in a form acceptable to Agent, executed by the landlord of such leased location."

 

  

  

  

7.            Conditions Precedent.  The terms of this Joinder shall become effective only when each of the following conditions has been completely satisfied as determined by Agent in its sole discretion:

 

(a)           Documents.  Agent shall have received this Joinder duly executed and delivered by the OF Borrowers, Agent, and Lenders; and

 

(b)           Conditions set forth in Loan Agreement.  Each of the conditions set forth in Section 7.1(b) of the Loan Agreement shall have been satisfied or waived in writing by Agent.

 

8.            Waiver of Claims.  The OF Borrowers and the Existing Borrowers hereby agree that this Joinder is a reasonable agreement among the parties in connection with the current facts and circumstances related to the OF Borrowers’ business and is in keeping with the tenor of the Loan Agreement, and the OF Borrowers and the Existing Borrowers hereby completely and generally waive, release, remise, acquit and forever discharge the Lenders and their respective affiliates, present and past officers, directors, agents, attorneys, predecessors, successors, insurers, parent, subsidiary and sibling corporations and entities, and assigns (collectively, the “Bank Releasees”) of and from any and all past and present claims, damages or causes of action arising or relating in any way to the actions of the Bank Releasees relating to the Loan Agreement, this Joinder, the Transaction Documents or any other agreement among the parties, which the OF Borrowers or the Existing Borrowers ever had or now has against the Bank Releasees, or any of them.

 

9.            Miscellaneous.

 

(a)           No modification, rescission, waiver, release, or amendment of any provision of this Joinder shall be made, except by a written agreement signed by the OF Borrowers and a duly authorized officer of each Lender.

 

(b)           This Joinder may be executed in any number of counterparts, and by Lenders and the OF Borrowers on separate counterparts, each of which, when so executed and delivered, shall be an original, but all of which shall together constitute one and the same Joinder.

 

(c)           The provisions of this Joinder are independent of, and separable from, each other, and no such provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason any other such provision may be invalid or unenforceable in whole or in part. If any provision of this Joinder is prohibited or unenforceable in any jurisdiction, such provision shall be ineffective in such jurisdiction only to the extent of such prohibition or unenforceability, and such prohibition or unenforceability shall not invalidate the balance of such provision to the extent it is not prohibited or unenforceable nor render prohibited or unenforceable such provision in any other jurisdiction.

 

(d)           The terms of this Joinder, the Loan Agreement and the Transaction Documents shall be cumulative except to the extent that they are specifically inconsistent with each other, in which case the terms of this Joinder shall prevail.

 

  

  

  

(e)           This Joinder, the Loan Agreement, and the other Transaction Documents constitute the entire agreement and understanding between the parties hereto with respect to the transactions contemplated hereby and supersede all prior negotiations, understandings, and agreements among such parties with respect to such transactions, including, without limitation, those expressed in any commitment letter delivered by Lenders to the OF Borrowers.

 

(f)           THIS JOINDER, AND THE TRANSACTIONS EVIDENCED HEREBY, SHALL BE GOVERNED BY, AND CONSTRUED UNDER, THE INTERNAL LAWS OF THE STATE OF COLORADO, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW, AS THE SAME MAY FROM TIME TO TIME BE IN EFFECT, INCLUDING, WITHOUT LIMITATION, THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN THE STATE.

 

(g)           THE OF BORROWERS AND LENDERS AGREE THAT ANY ACTION OR PROCEEDING TO ENFORCE, OR ARISING OUT OF, THE TRANSACTION DOCUMENTS MAY BE COMMENCED IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE OF COLORADO, AND BORROWERS WAIVE PERSONAL SERVICE OF PROCESS AND AGREE THAT A SUMMONS AND COMPLAINT COMMENCING AN ACTION OR PROCEEDING IN ANY SUCH COURT SHALL BE PROPERLY SERVED AND SHALL CONFER PERSONAL JURISDICTION IF SERVED BY REGISTERED OR CERTIFIED MAIL TO BORROWERS, OR AS OTHERWISE PROVIDED BY THE LAWS OF THE STATE OR THE UNITED STATES.

 

(h)           THE OF BORROWERS AND LENDERS HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY BORROWERS OR LENDERS MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS RELATED THERETO. BORROWERS REPRESENT AND WARRANT THAT NO REPRESENTATIVE OR AGENT OF ANY LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT ANY LENDER WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS RIGHT TO JURY TRIAL WAIVER. BORROWERS ACKNOWLEDGE THAT THE LENDERS HAVE BEEN INDUCED TO ENTER INTO THIS JOINDER BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS PARAGRAPH.

 

(i)           ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT, INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT, ARE NOT ENFORCEABLE. TO PROTECT YOU (BORROWERS) AND US (LENDERS) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THE TRANSACTION DOCUMENTS, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

 

[signature page follows]

 

  

  

  

 

IN WITNESS WHEREOF, the parties have executed this Joinder as of the date first above written.

	  	
OF AIR HOLDINGS CORPORATION, OMNIFLIGHT HELICOPTERS, INC. OMNIFLIGHT HELICOPTER SERVICES, INC., OMNI TRANSPORT SYSTEMS, ALABAMA, LLC, OMNI TRANSPORT SYSTEMS, CHARLESTON, LLC, NATIVE AIR SERVICES, INC., NATIVE AMERICAN AIR AMBULANCE, INC., NATIVE AMERICAN AIR AMBULANCE, LLC, ENCHANTMENT AVIATION, INC. AND OTS (SUB), LLC

	  	  	 
	  	  	 
	  	
By:

	/s/ Trent J. Carman
	  	
Name:

	Trent J. Carman
	  	
Title:

	Chief Financial Officer
	  	  	 
	  	
Address:

	  	
7301 South Peoria Street

	  	
Englewood, Colorado 80112

	  	
Attn:

	Trent J. Carman 
	  	
Phone:

	303-792-7591
	  	
Facsimile:   

	303-790-4780

 

Acknowledged and Agreed as to Paragraphs 6 and 8:

AIR METHODS CORPORATION,

ROCKY MOUNTAIN HOLDINGS, L.L.C.,

MERCY AIR SERVICE, INC.,

LIFENET, INC., FSS AIRHOLDINGS, LLC,

CJ SYSTEMS AVIATION GROUP, INC.,

SPECIAL JET SERVICES, LLC,

AIR METHODS TRANSPORT COMPANY AND

UNITED ROTORCRAFT SOLUTIONS, LLC

	
By: 

	/s/ Trent J. Carman	 
	
Name: 

	Trent J. Carman	 
	
Title: 

	Chief Financial Officer	 

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
LENDERS:

	  	  	 
	  	
As Lender, Administrative Agent, Joint Lead Arranger and Sole Book Runner:

	  	  	 
	  	
KEYBANK NATIONAL ASSOCIATION

	  	  	 
	  	  	 
	  	  	 
	  	
By:

	/s/  Michelle K. Bushey
	  	
Name:

	Michelle K. Bushey
	  	
Title:

	Senior Vice President
	  	  	 
	  	
Address:

	  	
1675 Broadway, Suite 300

	  	
Denver, Colorado 80202

	  	
Attn:

	Michelle Bushey
	  	
Phone:

	720-904-4536
	  	
Facsimile:  

	720-904-4515

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

 

  

  

  

	  	
As Lender, Joint Lead Arranger and Co-Syndication Agent:

	  	  	 
	  	
BANK OF AMERICA, N.A.

	  	  	 
	  	  	 
	  	
By:

	/s/  Robert Likos
	  	
Name:

	Robert Likos
	  	
Title:

	Senior Vice President
	  	  	 
	  	
Address:

	  	
370 17th Street, Suite 3590

	  	
Denver, Colorado 80202

	  	
Attn:

	Robert Likos
	  	
Phone: 

	303-825-7571
	  	
Facsimile:   

	303-825-7580

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
As Lender, Joint Lead Arranger and Documentation Agent:

	  	  	 
	  	
PNC BANK, NATIONAL ASSOCIATION

	  	  	 
	  	  	 
	  	
By: 

	/s/  Philip K. Liebscher
	  	
Name:   

	Philip K. Liebscher
	  	
Title:     

	Senior Vice President
	  	  	 
	  	
Address:

	  	
249 Fifth Avenue

	  	
Pittsburg, PA 15222

	  	
Attn:

	Philip K. Liebscher
	  	
Phone:

	412-762-3202
	  	
Facsimile:   

	412-762-6484

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
As Lender, Joint Lead Arranger and Co-Syndication Agent:

	  	  	 
	  	
BBVA COMPASS BANK

	  	  	 
	  	  	 
	  	
By: 

	/s/  Mark A. Mooney
	  	
Name:   

	Mark A. Mooney
	  	
Title:     

	Senior Vice President
	  	  	 
	  	
Address:

	  	
999 18th Street, Ste 2800

	  	
Denver, CO  80202

	  	
Attn:

	Mark A. Mooney
	  	
Phone:

	(303) 217-2257
	  	
Facsimile:  

	(303) 209-8499

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
JPMORGAN CHASE BANK, N.A.

	  	  	 
	  	  	 
	  	
By: 

	/s/  Brennon J. Crist
	  	
Name:  

	Brennon J Crist
	  	
Title:    

	Senior Vice President
	  	  	 
	  	
Address:

	  	
1125 17th Street, 3rd Floor

	  	
Denver, CO 80202

	  	
Attn:

	Brennon J Crist
	  	
Phone:

	(303) 244-3220
	  	
Facsimile:   

	(303) 244-3351

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
RBS CITIZENS, N.A.

	  	  	 
	  	  	 
	  	
By: 

	/s/  André A. Nazareth
	  	
Name:

	André A. Nazareth
	  	
Title:

	Senior Vice President
	  	  	 
	  	  	 
	  	
Address:

	  	
27777 Franklin Road, 19th Floor

	  	
Southfield, Michigan 48034

	  	
Attn:

	André A. Nazareth
	  	
Phone:

	(248) 226-7736
	  	
Facsimile:  

	(248) 228-9402

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
BOKF, NA dba Colorado State Bank and Trust

	  	  	 
	  	  	 
	  	
By:

	/s/  Matthew J. Mason
	  	
Name:

	Matthew J. Mason
	  	
Title:

	Vice President
	  	  	 
	  	
Address:

	  	
1600 Broadway, 4th floor

	  	
Denver, CO 80202

	  	
Attn:

	Matthew J. Mason
	  	
Phone:

	(303) 863-4265
	  	
Facsimile:  

	(303) 863-4463

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
FIFTH THIRD BANK

	  	  	 
	  	  	 
	  	
By: 

	/s/  Mitchell A. Early
	  	
Name: 

	Mitchell A. Early
	  	
Title:

	Portfolio Manager
	  	  	 
	  	  	 
	  	
Address:

	  	
38 Fountain Square Plaza

	  	
Cincinnati, OH 45263

	  	
Attn:

	Mitchell A. Early
	  	
Phone:

	(312) 704-5535
	  	
Facsimile:   

	(312) 704-7365

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
UMB BANK COLORADO, N.A.

	  	  	 
	  	  	 
	  	
By: 

	/s/   Patrick Fairfield
	  	
Name:

	Patrick Fairfield
	  	
Title:

	Senior Vice President
	  	  	 
	  	
Address:

	  	
1670 Broadway

	  	
Denver, CO 80202

	  	
Attn:

	Patrick Fairfield
	  	
Phone:

	(303) 839-2298
	  	
Facsimile:  

	(303) 839-2289

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
BANK OF THE WEST

	  	  	 
	  	  	 
	  	
By:

	/s/    Terry A. Switz
	  	
Name:

	Terry A. Switz
	  	
Title:

	Vice President
	  	  	 
	  	  	 
	  	
Address:

	  	
600 17th Street, Suite 1500

	  	
Denver, CO 80202

	  	
Attn:    

	Terry A. Switz
	  	
Phone:

	(303) 202-5760
	  	
Facsimile:  

	(402) 918-7253

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]

  

  

  

	  	
U.S. BANK NATIONAL ASSOCIATION

	  	  	 
	  	  	 
	  	
By:

	/s/  Carlos L. Lamboglia
	  	
Name:

	Carlos L. Lamboglia
	  	
Title:

	Assistant Vice President
	  	  	 
	  	  	 
	  	
Address:

	  	
US Bancorp Center

	  	
BC-MN-H03P

	  	
800 Nicollet Mall

	  	
Minneapolis, MN 55402

	  	
Attn:    

	Carlos L. Lamboglia
	  	
Phone: 

	(612) 303-3788
	  	
Facsimile:   

	(612) 303 2265

[Signature Page to Joinder to Amended and restated Revolving Credit,

Term Loan and Security Agreement]nxstexhibit.htm

  

  

  

Exhibit 10.1

 

FIFTH AMENDMENT TO FOURTH

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

This FIFTH AMENDMENT TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT, dated as of July 29, 2011 (this "Amendment"), is by and among (a) NEXSTAR BROADCASTING, INC. (the "Borrower"), a Delaware corporation, (b) NEXSTAR BROADCASTING GROUP, INC. (the "Ultimate Parent"), a Delaware corporation, (c) NEXSTAR FINANCE HOLDINGS, INC. ("Nexstar Finance Holdings"), a Delaware corporation, (d) certain Lenders (as defined below) and (e) BANK OF AMERICA, N.A., as administrative agent (the "Administrative Agent") for itself and the other Lenders party to that certain Fourth Amended and Restated Credit Agreement, dated April 1, 2005, as amended by that certain First Amendment to Credit Agreement, dated as of October 18, 2005, that certain Second Amendment to Credit Agreement, dated as of October 8, 2009, that certain Third Amendment to Credit Agreement, dated as of April 19, 2010 and that certain Fourth Amendment to the Credit Agreement dated as of April 15, 2011 (as further amended, supplemented, and restated or otherwise modified and in effect from time to time, the "Credit Agreement"), by and among the Borrower, the Ultimate Parent, Nexstar Finance Holdings, the lending institutions party thereto (the "Lenders") and the Administrative Agent.  Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement.

 

WHEREAS, the Borrower, the Ultimate Parent, Nexstar Finance Holdings, the several Lenders party to this Amendment (which Lenders constitute the Majority Lenders and the Majority Revolver Lenders as required under the Credit Agreement to effect the amendment intended hereby) and the Administrative Agent have agreed to modify certain terms and conditions of the Credit Agreement as specifically set forth in this Amendment.

 

NOW THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Borrower, the Ultimate Parent, Nexstar Finance Holdings, the Majority Lenders, the Majority Revolver Lenders and the Administrative Agent hereby agree as follows:

 

§1. Amendments to Credit Agreement.

 

(a) Section 1.01 of the Credit Agreement is hereby amended by restating in its entirety the definition of "Credit Parties" to read as follows:

 

"Credit Parties" means the collective reference to the Parent Guarantors (including but not limited to Nexstar Finance Holdings), the Borrower, the Subsidiary Guarantors, any other Nexstar Entities, the Mission Entities and any other Person hereafter executing and delivering a Security Document or a Guaranty Agreement or any equivalent document for the benefit of the Administrative Agent and/or any Lender; provided that no pledgor under a Mission Equity Pledge Agreement (as defined in the Mission Credit Agreement) that is not a Mission Entity or Nexstar Entity will be included in this definition.

 

  

  

  

Section 1.01 of the Credit Agreement is hereby amended by adding the following new definitions in alphabetical order to read as follows:

 

"Fifth Amendment" means that certain Fifth Amendment to Fourth Amended and Restated Credit Agreement, dated as of July 29, 2011, among Nexstar Broadcasting, Inc., Nexstar Broadcasting Group, Inc., Nexstar Finance Holdings, Inc., the Lenders and the Administrative Agent.

 

"Fifth Amendment Effective Date" means the date that all applicable conditions of effectiveness set forth in the Fifth Amendment are satisfied.

 

(b) Section 1.01 of the Credit Agreement is hereby amended by deleting in its entirety the definition "Former Major Network Affiliate".

 

(c) Section 1.01 of the Credit Agreement is hereby amended by restating in its entirety the definition of "Security Documents" to read as follows:

 

"Security Documents" means collectively the Pledge and Security Agreement, the Security Agreement, each Mortgage and each Joinder to Pledge and Security Agreement and Joinder to Security Agreement, and any other pledge agreement, security agreement, guaranty or other document granting a Lien or security interest to secure payment of all or any portion of the Obligations, or otherwise assuring payment of all or any portion of the Obligations, executed and delivered by any Credit Party, any Person owning any Capital Stock of the Mission Borrower, or any other Person, pursuant to any Loan Document or otherwise, that certain Omnibus Consent, dated as of October 8, 2009, by and among the Nexstar Entities and the Mission Entities, and acknowledged and agreed to by the Administrative Agent, the 2010 Intercreditor Agreement, any Intercreditor Agreement, other intercreditor agreement or similar agreement executed by the Collateral Agent or the Administrative Agent from time to time in connection with this Agreement or any Loan Document or any of the Collateral, each of the mortgages, collateral assignments, security agreement supplements, intellectual property security agreement supplements, security agreements, pledge agreements or other similar agreements delivered to the Administrative Agent pursuant to Section 6.16 or Section 6.17, and each of the other agreements, instruments or documents that creates or purports to create a Lien in favor of the Administrative Agent for the benefit of the Secured Parties.

 

(d) Section 8.01(p) of the Credit Agreement is hereby restated in its entirety to read as follows:

 

(p)           [Reserved]

 

(e) Section 7.09(a) of the Credit Agreement is hereby restated in its entirety to read as follows:

 

(a)           Consolidated Total Leverage Ratio.  The Consolidated Total Leverage Ratio shall not at any time during any period set forth below exceed the ratio set forth opposite such period below:

	
Period

	
Ratio

	
Fifth Amendment Effective Date through December 30, 2012

	
7.50 to 1.00

	
December 31, 2012 and thereafter

	
 6.50 to 1.00

§2. Conditions to Effectiveness.  This Amendment shall become effective as of the date set forth above upon the satisfaction of the following conditions:

 

(a) there shall exist no Default both immediately before and after giving effect to this Amendment; and

 

(b) the Administrative Agent shall have received a counterpart signature page to this Amendment, duly executed and delivered by the Borrower, the Ultimate Parent, Nexstar Finance Holdings, each Guarantor, the Majority Lenders and the Majority Revolver Lenders; and

 

(c) the representations and warranties set forth in this Amendment shall be true and correct in all material respects as of the date of this Amendment (except (1) to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date and (2) that any representation or warranty that is qualified by "materiality" or "Material Adverse Effect" shall be true and correct in all respects); and

 

(d) the Administrative Agent shall have received a copy of the executed Third Amendment to the Mission Credit Agreement on terms reasonably acceptable to the Administrative Agent, and all conditions to effectiveness of such Third Amendment to the Mission Credit Agreement shall have been satisfied or waived (except the condition relating to the effectiveness of this Amendment); and

 

(e) the Administrative Agent shall have received, for the account of each Lender timely executing this Amendment, an amendment fee equal to five basis points (0.05%) of the Commitment of such Lender; and

 

(f) the Administrative Agent shall have received such confirmations and affirmations of any of the Loan Documents by the applicable Credit Parties, in each case reasonably acceptable to the Administrative Agent and the Lenders; and

 

(g) the Borrower shall have paid all reasonable invoiced fees and expenses of the Administrative Agent's counsel, Winstead PC.

 

§3. Affirmation of Nexstar Entities.  Each of the Nexstar Entities hereby affirms its Obligations under the Credit Agreement, each of the other Loan Documents to which each is a party, and each of the Mission Loan Documents to which each is a party, and each hereby affirms its absolute and unconditional promise to pay to the Lenders the Loans and all other amounts due (i) under the Credit Agreement (as amended hereby) and the other Loan Documents and (ii) under the Mission Credit Agreement and the Mission Loan Documents.

 

  

  

  

Representations and Warranties.  Each of the Nexstar Entities represents and warrants to the Administrative Agent and the Lenders as follows:

 

(a) Representations and Warranties.  Each of the representations and warranties contained in Article V of the Credit Agreement were true and correct in all material respects (except to the extent such representations and warranties are already qualified by materiality, in which case, such representations and warranties were true and correct in all respects) when made.  Each of the representations and warranties contained in Article V of the Credit Agreement are true and correct in all material respects on and as of the date hereof (giving effect to this Amendment), except to the extent such representations and warranties are already qualified by materiality, in which case, such representations and warranties are true and correct in all respects and to the extent that such representations and warranties relate specifically to a prior date.

 

(b) Enforceability.  The execution and delivery by the Nexstar Entities of this Amendment, and the performance by the Nexstar Entities of this Amendment and the Credit Agreement, as amended hereby, and each of the Loan Documents (and amendments, restatements and substitutions therefore in connection with this Amendment) are within the corporate authority of each of the Nexstar Entities and have been duly authorized by all necessary corporate proceedings.  This Amendment and the Credit Agreement, as amended, and each of the Loan Documents (and amendments, restatements and substitutions therefore in connection with this Amendment) hereby, constitute valid and legally binding obligations of each of the Nexstar Entities, enforceable against it in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws relating to or affecting the enforcement of creditors' rights generally or by equitable principles of general applicability.

 

(c) No Default.  No Default has occurred and is continuing, and no Default will result from the execution, delivery and performance by the Nexstar Entities of this Amendment, the other Loan Documents or from the consummation of the transactions contemplated herein.

 

(d) Disclosure.  None of the information provided to the Administrative Agent and the Lenders on or prior to the date of this Amendment contained any untrue statement of material fact or omitted to state any material fact (known to any of the Nexstar Entities in the case of any document or information not furnished by any such Nexstar Entity) necessary in order to make the statements herein or therein not misleading.  On the date hereof, none of the Nexstar Entities possess any material information with respect to the operations, business, assets, properties, liabilities (actual or contingent) or financial condition of the Nexstar Entities taken as a whole as to which the Lenders do not have access.

 

§4. No Other Amendments, etc.  Except as expressly provided in this Amendment, (a) all of the terms and conditions of the Credit Agreement and the other Loan Documents (as amended and restated in connection herewith, if applicable) remain unchanged, and (b) all of the terms and conditions of the Credit Agreement, as amended hereby, and of the other Loan Documents (as amended and restated in connection herewith, if applicable) are hereby ratified and confirmed and remain in full force and effect.  Nothing herein shall be construed to be an amendment, consent or a waiver of any requirements of any Nexstar Entity or of any other

 

  

  

  

Person under the Credit Agreement or any of the other Loan Documents except as expressly set forth herein or pursuant to a written agreement executed in connection herewith.  Nothing in this Amendment shall be construed to imply any willingness on the part of the Administrative Agent or any Lender to grant any similar or future amendment, consent or waiver of any of the terms and conditions of the Credit Agreement or the other Loan Documents.

 

§5. Release.  In order to induce the Administrative Agent and the Lenders to enter into this Amendment, each of the Nexstar Entities acknowledges and agrees that:  (i) none of the Nexstar Entities, Credit Parties or any of their Affiliates have any claim or cause of action against the Administrative Agent or any Lender (or any of their respective directors, officers, employees or agents); (ii) none of the Nexstar Entities, Credit Parties or any of their Affiliates have any offset right, counterclaim, right of recoupment or any defense of any kind against the Nexstar Entities', Credit Parties' or any of their Affiliates' obligations, indebtedness or liabilities to the Administrative Agent or any Lender; and (iii) each of the Administrative Agent and the Lenders has heretofore properly performed and satisfied in a timely manner all of its obligations to the Nexstar Entities, Credit Parties and any of their Affiliates.  Each of the Nexstar Entities, Credit Parties and their Affiliates wishes to eliminate any possibility that any past conditions, acts, omissions, events, circumstances or matters would impair or otherwise adversely affect any of the Administrative Agent's and the Lenders' rights, interests, contracts, collateral security or remedies.  Therefore, each of the Nexstar Entities, Credit Parties and each of their Affiliates unconditionally releases, waives and forever discharges (A) any and all liabilities, obligations, duties, promises or indebtedness of any kind of the Administrative Agent or any Lender to the Borrower, except the obligations to be performed by the Administrative Agent or any Lender on or after the date hereof as expressly stated in this Amendment, the Credit Agreement and the other Loan Documents, and (B) all claims, offsets, causes of action, right of recoupment, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which any Nexstar Entity, Credit Party or any of their Affiliates might otherwise have against the Administrative Agent, any Lender or any of their respective directors, officers, employees or agents (the Administrative Agent, the Lenders and their respective directors, officers, employees and agents, are collectively referred to herein as the "Lender Parties") in either case (A) or (B), on account of any past or presently existing condition, act, omission, event, contract, liability, obligation, indebtedness, claim, cause of action, defense, circumstance or matter of any kind.  Each of the Nexstar Entities, Credit Parties and each of their Affiliates agree not to sue any of the Lender Parties or in any way assist any other person or entity in suing any of the Lender Parties with respect to any claim released herein.  This release provision may be pleaded as a full and complete defense to, and may be used as the basis for an injunction against, any action, suit, or other proceeding which may be instituted, prosecuted, or attempted in breach of the release contained herein

 

§6. Execution in Counterparts.  This Amendment may be executed in any number of counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, but all of which together shall constitute one instrument.  In proving this Amendment, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom enforcement is sought.

 

§7. Interpretation.  This Amendment, the Credit Agreement and the other Loan Documents are the result of negotiation among, and have been reviewed by counsel to, among

 

  

  

  

others, the Administrative Agent and the Borrower and are the product of discussions and negotiations among all parties.  Accordingly, this Amendment, Credit Agreement and the other Loan Documents are not intended to be construed against the Administrative Agent or any of the Lenders merely on account of the Administrative Agent's or any Lender's involvement in the preparation of such documents.

 

§8. Loan Document.  This Amendment is a Loan Document under the terms of the Credit Agreement, and any breach of any provision of this Amendment shall be a Default under the Credit Agreement (as applicable).

 

§9. Governing Law.  This Amendment shall be governed by, an construed in accordance with, the law of the State of New York applicable to agreements made and to be performed entirely within such state; provided that the Administrative Agent and each Lender shall retain all rights arising under Federal Law.

 

§10. Miscellaneous.  The captions in this Amendment are for convenience of reference only and shall not define or limit the provisions hereof.  The Borrower agrees to pay to the Administrative Agent, on demand by the Administrative Agent, all reasonable costs and expenses incurred or sustained by the Administrative Agent in connection with the preparation of this Amendment, including reasonable legal fees in accordance with Section 10.04 of the Credit Agreement.  The parties hereto acknowledge and agree that this Amendment is subject to the terms of the 2010 Intercreditor Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

  

  

  

IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as a sealed instrument as of the date first set forth above.

 

The Borrower:

 

NEXSTAR BROADCASTING, INC.

 

By:          /s/ Thomas E. Carter

Name:         Thomas E. Carter

Title:           Chief Financial Officer

 

 

The Parent Guarantors:

 

NEXSTAR BROADCASTING GROUP, INC.

By:          /s/ Thomas E. Carter 

Name:         Thomas E. Carter

Title:           Chief Financial Officer

 

 

NEXSTAR FINANCE HOLDINGS, INC.

By:          /s/ Thomas E. Carter 

Name:         Thomas E. Carter

Title:           Chief Financial Officer

 

 

 

  

  

  

The Administrative Agent:

 

BANK OF AMERICA, N.A.,

as Administrative Agent

 

By:          /s/ Antonikia L. Thomas

Name:         Antonikia L. Thomas

Title:           Assistant Vice President

 

 

The Lenders:

 

BANK OF AMERICA, N.A.,

as a Lender

 

By:          /s/ Peter van der Horst

Name:         Peter van der Horst

Title:           Director

 

 

  

  

  

RATIFICATION OF GUARANTORS

 

Each of the undersigned Guarantors hereby (a) acknowledges and consents to the foregoing Amendment and the Nexstar Entities execution thereof; (b) joins the foregoing Amendment for the purpose of consenting to and being bound by the provisions thereof, (c) ratifies and confirms all of their respective obligations and liabilities under the Loan Documents to which any of them is a party and ratifies and confirms that such obligations and liabilities extend to and continue in effect with respect to, and continue to guarantee and secure, as applicable, the Obligations of the Borrower under the Credit Agreement; (d) acknowledges and confirms that the liens and security interests granted by such Guarantor pursuant to the Loan Documents are and continue to be valid and perfected first priority liens and security interests (subject only to Permitted Liens) that secure all of the Obligations on and after the date hereof; (e) acknowledges and agrees that such Guarantor does not have any claim or cause of action against the Administrative Agent or any Lender (or any of its respective directors, officers, employees or agents); (f) acknowledges, affirms and agrees that such Guarantor does not have any defense, claim, cause of action, counterclaim, offset or right of recoupment of any kind or nature against any of their respective obligations, indebtedness or liabilities to the Administrative Agent or any Lender and (g) acknowledges, affirms and agrees with each term of the Amendment, including, without limitation, the Section entitled "Release".

 

 

 

The Guarantors:

 

MISSION BROADCASTING, INC.

By:          /s/ Dennis P. Thatcher 

Name:       Dennis P. Thatcher

Title:         Executive Vice President and Chief Operating Officer

 

 

NEXSTAR BROADCASTING GROUP, INC.

NEXSTAR FINANCE HOLDINGS, INC.

 

By:          /s/ Thomas E. Carter

Name:         Thomas E. Carter

Title:           Chief Financial Officer

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