Document:

upcsaletransactionannoun

1  1006406674v1  UNITED INSURANCE HOLDINGS CORP. ANNOUNCES TRANSFER OF BUSINESS IN  NORTHEAST TO HCI GROUP, INC.  St. Petersburg, FL – December 17, 2020:  United Insurance Holdings Corp. (NASDAQ: UIHC), a property and  casualty insurance holding company (“UPC”) and HCI Group, Inc. (NYSE: HCI), an InsurTech company with operations  in insurance, software development and real estate (“HCI”), have reached an agreement in principle to transfer UPC’s  personal lines business in four Northeast states of Connecticut, New Jersey, Massachusetts, and Rhode Island to HCI.  UPC, and its wholly owned subsidiaries, United Property & Casualty Insurance Company (“UPCIC”) and Interboro  Insurance Company, will continue writing policies and servicing policyholders in New York.  The transaction will better  enable UPC to focus on growing its specialty commercial property business and improve its statutory risk based capital  position by reducing operating leverage.  Under the terms of the transaction, HCI will provide 69.5% quota share reinsurance on  UPCIC’s in-force, new and  renewal policies in Connecticut, Massachusetts, New Jersey and Rhode Island for the period December 31, 2020  through May 31, 2021. UPCIC’s 30.5% quota share reinsurance with other reinsurers will remain in place. Under the  quota share arrangement, HCI will pay to UPC a provisional ceding commission of 25% of premium earned during the  term of the contract that could increase up to 31.5% depending on the direct loss ratio results for the reinsured business.  The estimated ceded earned premium for the quota share period December 31, 2020 through May 31, 2021 is $37.6  million (69.5% of $54.2 million).  This would result in estimated net ceding commissions to UPC between $13.8 million  and $16.3 million, including a $4.4 million catastrophe reinsurance allowance.     As part of the transaction, HCI will also pay UPC consideration of 100,000 shares of HCI common stock. Additionally,  HCI will pay UPC a cash payment of up to $3.1 million depending on the amount of premium transitioned to HCI. In  connection with the transaction, UPC will agree not to compete with HCI for the issuance of personal lines homeowners  business in the four Northeast states until July 1, 2024.  The transaction is subject to negotiation of definitive agreements and customary closing conditions, including receipt of  all applicable regulatory approvals.  The quota share reinsurance agreement is expected to be effective no later than  December 31, 2020.  Raymond James is acting as financial advisor to UPC in the transactions and Debevoise & Plimpton LLP is acting as  legal advisor.  Foley & Lardner LLP is acting as legal advisor to HCI.  About UPC Insurance  Founded in 1999, UPC Insurance is an insurance holding company that sources, writes and services personal and  commercial residential property and casualty insurance policies using a group of wholly owned insurance subsidiaries  and one majority owned insurance subsidiary through a variety of distribution channels. The Company currently writes  policies in Connecticut, Florida, Georgia, Hawaii, Louisiana, Massachusetts, New Jersey, New York, North Carolina,  Rhode Island, South Carolina and Texas. From its headquarters in St. Petersburg, UPC Insurance's team of dedicated  professionals manages a completely integrated insurance company, including sales, underwriting, customer service and  claims.  Forward-Looking Statements  Statements made in this press release may be “forward-looking statements.” These statements are made subject to the safe-harbor  provisions of the Private Securities Litigation Reform Act of 1995. These statements are made subject to the safe-harbor provisions of  the Private Securities Litigation Reform Act of 1995. These forward-looking statements do not relate strictly to historical or current  facts and may be identified by their use of words such as “may,” “will,” “expect,” "endeavor," "project," “believe,” "plan," “anticipate,”  “intend,” “could,” “would,” “estimate” or “continue” or the negative variations thereof or comparable terminology.  We believe these  Exhibit 10.1 

 

  2  1006406674v1  statements are based on reasonable estimates, assumptions and plans. However, if the estimates, assumptions or plans underlying  the forward-looking statements prove inaccurate or if other risks or uncertainties arise, actual results could differ materially from those  communicated in these forward-looking statements. Factors that could cause actual results to differ materially from those expressed  in, or implied by, the forward-looking statements may be found in our filings with the U.S. Securities and Exchange Commission,  including the “Risk Factors” section in our most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10- Q. Forward-looking statements speak only as of the date on which they are made, and, except as required by applicable law, we  undertake no obligation to update or revise any forward-looking statement.          CONTACT:  OR  INVESTOR RELATIONS:  United Insurance Holdings Corp.    The Equity Group  Jessica Strathman    Adam Prior  Director of Financial Reporting    Senior Vice-President  (727) 895-7737 / jstrathman@upcinsurance.com    (212) 836-9606 / aprior@equityny.comthirdamendmenttocreditag

EXECUTION VERSION  CID #:  000016249  CHAR1\1760870v5  THIRD AMENDMENT TO   THIRD AMENDED AND RESTATED CREDIT AGREEMENT    THIS THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT  AGREEMENT (this “Amendment”), dated as of December 15, 2020, is by and among DENNY’S,  INC., a Florida corporation (“Denny’s” or the “Borrower”), DENNY’S CORPORATION, a Delaware  corporation (“Parent”), each of those Subsidiaries of Parent party hereto (Parent and such Subsidiaries,  each a “Guarantor” and collectively, the “Guarantors”), WELLS FARGO BANK, NATIONAL  ASSOCIATION, as administrative agent on behalf of the Lenders under the Credit Agreement (as  hereinafter defined) (in such capacity, the “Administrative Agent”), and the Lenders party hereto.        W I T N E S S E T H    WHEREAS, the Borrower, the Parent, the other Guarantors, certain banks and financial  institutions from time to time party thereto (the “Lenders”) and the Administrative Agent are parties to  that certain Third Amended and Restated Credit Agreement dated as of October 26, 2017 (as amended,  modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”;  capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in  the Credit Agreement);     WHEREAS, the Loan Parties have requested that the Lenders make certain amendments to the  Credit Agreement as set forth herein; and    WHEREAS, the Lenders party hereto have agreed to amend the Credit Agreement, in each case,  subject to the terms and conditions set forth herein.    NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other  good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties  hereto agree as follows:    ARTICLE I  AMENDMENTS TO CREDIT AGREEMENT    1.1 Amendment to the definition of “Applicable Rate”.  The definition of “Applicable  Rate” in Section 1.01 of the Credit Agreement is hereby amended by replacing the text in the last  sentence of the definition to read as follows:      Notwithstanding the foregoing, from the Third Amendment Effective Date until the first  Business Day immediately following the date a Compliance Certificate is delivered pursuant to  Section 6.02(a) for the fiscal quarter ending of the Parent on or about December 29, 2021, the  Applicable Rate shall be equal to (i) 3.00% with respect to Eurodollar Rate Loans, (ii) 3.00%  with respect to standby Letter of Credit Fees, (iii) 3.00% with respect to commercial Letter of  Credit Fees, (iv) 2.00% with respect to Base Rate Loans and (v) 0.40% with respect to the  Commitment Fee, and thereafter the Pricing Tier shall be determined by reference to the  Consolidated Leverage Ratio as of the last day of the most recently ended fiscal quarter of the  Parent as set forth in the Compliance Certificate delivered pursuant to Section 6.02(a) for such  fiscal quarter.     

 

CHAR1\1760870v5 2 1.2 Amendment to the definition of “Consolidated Interest Expense”.  The definition of  “Consolidated Interest Expense” in Section 1.01 of the Credit Agreement is hereby amended and restated  in its entirety to read as follows:    “Consolidated Interest Expense” means, for any Measurement Period, the sum of (a) all  interest, premium payments, debt discount, fees, charges and related expenses in connection with  borrowed money (including capitalized interest) or in connection with the deferred purchase price  of assets, net of cash interest income, in each case to the extent treated as interest in accordance  with GAAP, (b) the portion of rent expense under Capital Lease Obligations that is treated as  interest in accordance with GAAP, (c) interest expense related to discounted liabilities that is  treated as interest in accordance with GAAP, and (d) cash payments made with respect to any de- designated Swap Contract, in each case, of or by Parent and its Subsidiaries on a consolidated  basis for the most recently completed Measurement Period, less (e) all cash receipts with respect  to any de-designated Swap Contract, in each case, by Parent and its Subsidiaries on a  consolidated basis for the most recently completed Measurement Period.    1.3 Amendment to the definition of “Consolidated Leverage Ratio”.  The definition of  “Consolidated Leverage Ratio” in Section 1.01 of the Credit Agreement is hereby amended by replacing  the text in the last sentence of the definition to read as follows:    Notwithstanding the foregoing, for purposes of calculating the Consolidated Leverage  Ratio to determine compliance with Section 7.10(a) as of the end of the fiscal quarters of the  Parent ending on or about June 30, 2021, September 29, 2021 and December 29, 2021,  Consolidated EBITDA included in clause (b) above shall be calculated as (x) in the case of the  fiscal quarter ending on or about June 30, 2021, actual Consolidated EBITDA for such fiscal  quarter divided by 26.9%, (y) in the case of the fiscal quarter ending on or about September 29,  2021, actual Consolidated EBITDA for the period of two (2) consecutive fiscal quarters then  ending divided by 52.4%, and (z) in the case of the fiscal quarter ending on or about December  29, 2021, actual Consolidated EBITDA for the period of three (3) consecutive fiscal quarters then  ending divided by 78.8%.    1.4 Amendment to the definition of “Consolidated Maintenance Capital Expenditures”.   The definition of “Consolidated Maintenance Capital Expenditures” in Section 1.01 of the Credit  Agreement is hereby amended and restated in its entirety to read as follows:    “Consolidated Maintenance Capital Expenditures” means, for any Measurement Period,  any Consolidated Capital Expenditures that are not Consolidated Growth Capital Expenditures  (which, for the avoidance of doubt, shall not include any Consolidated Capital Expenditures made  in connection with any exchange of property permitted under Section 7.04(c)).    1.5 Amendment to the definition of “Eurodollar Rate Loan”.  The definition of  “Eurodollar Rate Loan” in Section 1.01 of the Credit Agreement is hereby amended and restated in its  entirety to read as follows:    “Eurodollar Rate Loan” means a Loan that bears interest at a rate based on clause (a) of  the definition of “LIBOR”, or based on the Benchmark Replacement, if then applicable.    1.6 Amendment to the definition of “LIBOR”.  The definition of “LIBOR” in Section 1.01  of the Credit Agreement is hereby amended and restated in its entirety to read as follows:    

 

CHAR1\1760870v5 3 “LIBOR” means, subject to the implementation of a Benchmark Replacement in  accordance with Section 3.03(b),  (a) for any interest rate calculation with respect to a Eurodollar Rate Loan, the rate  of interest per annum determined on the basis of the rate for deposits in Dollars for a period equal  to the applicable Interest Period as published by the ICE Benchmark Administration Limited, a  United Kingdom company, or a comparable or successor quoting service approved by the  Administrative Agent, at approximately 11:00 a.m. (London time) two (2) London Banking Days  prior to the first day of the applicable Interest Period.  If, for any reason, such rate is not so  published then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic  average of the rate per annum at which deposits in Dollars would be offered by first class banks  in the London interbank market to the Administrative Agent at approximately 11:00 a.m.  (London time) two (2) London Banking Days prior to the first day of the applicable Interest  Period for a period equal to such Interest Period, and  (b) for any interest rate calculation with respect to a Base Rate Loan, the rate of  interest per annum determined on the basis of the rate for deposits in Dollars for an Interest  Period equal to one month (commencing on the date of determination of such interest rate) as  published by ICE Benchmark Administration Limited, a United Kingdom company, or a  comparable or successor quoting service approved by the Administrative Agent, at approximately  11:00 a.m. (London time) on such date of determination, or, if such date is not a Business Day,  then the immediately preceding Business Day.  If, for any reason, such rate is not so published  then “LIBOR” for such Base Rate Loan shall be determined by the Administrative Agent to be  the arithmetic average of the rate per annum at which deposits in Dollars would be offered by  first class banks in the London interbank market to the Administrative Agent at approximately  11:00 a.m. (London time) on such date of determination for a period equal to one month  commencing on such date of determination.  Each calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all  purposes, absent manifest error.  Notwithstanding the foregoing, (x) in no event shall LIBOR (including  any Benchmark Replacement with respect thereto) be less than 0% and (y) unless otherwise specified in  any amendment to this Agreement entered into in accordance with Section 3.03(b), in the event that a  Benchmark Replacement with respect to LIBOR is implemented then all references herein to LIBOR  shall be deemed references to such Benchmark Replacement.    1.7 Amendment to the definition of “Revolving Credit Facility”.  The definition of  “Revolving Credit Facility” in Section 1.01 of the Credit Agreement is hereby amended and restated in its  entirety to read as follows:      “Revolving Credit Facility” means, at any time, the aggregate amount of the Lenders’  Commitments at such time.  As of the Third Amendment Effective Date, the Revolving Credit  Facility is $375,000,000; provided that, the Revolving Credit Facility shall be automatically  reduced to $350,000,000 on July 1, 2021 (which is the first day of the fiscal quarter of the Parent  ending on or about September 29, 2021).  1.8 Amendment to Section 1.01.  Section 1.01 of the Credit Agreement is hereby amended  by inserting the following definitions in the appropriate alphabetical order therein:    “Benchmark Replacement” means the sum of: (a) the alternate benchmark rate (which  may include Term SOFR) that has been selected by the Administrative Agent and the Borrower  giving due consideration to (i) any selection or recommendation of a replacement rate or the  

 

CHAR1\1760870v5 4 mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving  or then-prevailing market convention for determining a rate of interest as a replacement to  LIBOR for U.S. dollar-denominated syndicated credit facilities and (b) the Benchmark  Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would  be less than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this  Agreement.  “Benchmark Replacement Adjustment” means, with respect to any replacement of  LIBOR with an Unadjusted Benchmark Replacement for each applicable Interest Period, the  spread adjustment, or method for calculating or determining such spread adjustment, (which may  be a positive or negative value or zero) that has been selected by the Administrative Agent and  the Borrower giving due consideration to (a) any selection or recommendation of a spread  adjustment, or method for calculating or determining such spread adjustment, for the replacement  of LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant  Governmental Body or (b) any evolving or then-prevailing market convention for determining a  spread adjustment, or method for calculating or determining such spread adjustment, for the  replacement of LIBOR with the applicable Unadjusted Benchmark Replacement for U.S. dollar- denominated syndicated credit facilities at such time.   “Benchmark Replacement Conforming Changes” means, with respect to any Benchmark  Replacement, any technical, administrative or operational changes (including changes to the  definition of “Base Rate,” the definition of “Interest Period,” timing and frequency of  determining rates and making payments of interest and other administrative matters) that the  Administrative Agent decides may be appropriate to reflect the adoption and implementation of  such Benchmark Replacement and to permit the administration thereof by the Administrative  Agent in a manner substantially consistent with market practice (or, if the Administrative Agent  decides that adoption of any portion of such market practice is not administratively feasible or if  the Administrative Agent determines that no market practice for the administration of the  Benchmark Replacement exists, in such other manner of administration as the Administrative  Agent decides is reasonably necessary in connection with the administration of this Agreement).   “Benchmark Replacement Date” means the earlier to occur of the following events with  respect to LIBOR:   (a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,”  the later of (i) the date of the public statement or publication of information referenced therein  and (ii) the date on which the administrator of LIBOR permanently or indefinitely ceases to  provide LIBOR; and   (b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the  date of the public statement or publication of information referenced therein.   “Benchmark Transition Event” means the occurrence of one or more of the following  events with respect to LIBOR:   (a) a public statement or publication of information by or on behalf of the  administrator of LIBOR announcing that such administrator has ceased or will cease to provide  LIBOR, permanently or indefinitely; provided that, at the time of such statement or publication,  there is no successor administrator that will continue to provide LIBOR;   

 

CHAR1\1760870v5 5 (b) a public statement or publication of information by the regulatory supervisor for  the administrator of LIBOR, the U.S. Federal Reserve System, an insolvency official with  jurisdiction over the administrator for LIBOR, a resolution authority with jurisdiction over the  administrator for LIBOR or a court or an entity with similar insolvency or resolution authority  over the administrator for LIBOR, which states that the administrator of LIBOR has ceased or  will cease to provide LIBOR permanently or indefinitely; provided that, at the time of such  statement or publication, there is no successor administrator that will continue to provide LIBOR;  or   (c) a public statement or publication of information by the regulatory supervisor for  the administrator of LIBOR announcing that LIBOR is no longer representative.   “Benchmark Transition Start Date” means (a) in the case of a Benchmark Transition  Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark  Transition Event is a public statement or publication of information of a prospective event, the  90th day prior to the expected date of such event as of such public statement or publication of  information (or if the expected date of such prospective event is fewer than 90 days after such  statement or publication, the date of such statement or publication) and (b) in the case of an Early  Opt-in Election, the date specified by the Administrative Agent or the Required Lenders, as  applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the  Required Lenders) and the Lenders.   “Benchmark Unavailability Period” means, if a Benchmark Transition Event and its  related Benchmark Replacement Date have occurred with respect to LIBOR and solely to the  extent that LIBOR has not been replaced with a Benchmark Replacement, the period (a)  beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no  Benchmark Replacement has replaced LIBOR for all purposes hereunder in accordance with  Section 3.03(b) and (b) ending at the time that a Benchmark Replacement has replaced LIBOR  for all purposes hereunder pursuant to Section 3.03(b).  “Early Opt-in Election” means the occurrence of:   (a) (i) a determination by the Administrative Agent or (ii) a notification by the  Required Lenders to the Administrative Agent (with a copy to the Borrower) that the Required  Lenders have determined that U.S. dollar-denominated syndicated credit facilities being executed  at such time, or that include language similar to that contained in Section 3.03(b) are being  executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to  replace LIBOR, and   (b) (i) the election by the Administrative Agent or (ii) the election by the Required  Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by  the Administrative Agent of written notice of such election to the Borrower and the Lenders or by  the Required Lenders of written notice of such election to the Administrative Agent.  “Federal Reserve Bank of New York’s Website” means the website of the Federal  Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.    “Relevant Governmental Body” means the Federal Reserve Board and/or the Federal  Reserve Bank of New York, or a committee officially endorsed or convened by the Federal  Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.   

 

CHAR1\1760870v5 6  “SOFR” with respect to any day means the secured overnight financing rate published  for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark,  (or a successor administrator) on the Federal Reserve Bank of New York’s Website.    “Third Amendment Effective Date” means December 15, 2020.   “Term SOFR” means the forward-looking term rate based on SOFR that has been  selected or recommended by the Relevant Governmental Body.   “Unadjusted Benchmark Replacement” means the Benchmark Replacement excluding  the Benchmark Replacement Adjustment.  1.9 Amendment to Article I.  Article I of the Credit Agreement is hereby amended by  inserting the following new Section 1.09 at the end thereof:    1.09 Rates.  The Administrative Agent does not warrant or accept responsibility for,  and shall not have any liability with respect to, the administration, submission or any other matter  related to the rates in the definition of “LIBOR” or with respect to any rate that is an alternative  or replacement for or successor to any such rate (including, without limitation, any Benchmark  Replacement) or the effect of any of the foregoing, or of any Benchmark Replacement  Conforming Changes.    1.10 Amendment to Section 2.13.  Section 2.13 of the Credit Agreement is hereby amended  and restated in its entirety to read as follows:   2.13 RESERVED.  1.11 Amendment to Section 3.03.  Section 3.03 of the Credit Agreement is hereby amended  and restated in its entirety to read as follows:    3.03  Changed Circumstances.  (a) Subject to clause (b) below, if the Required Lenders determine that for  any reason in connection with any request for a Eurodollar Rate Loan or a conversion  to or continuation thereof that (i) Dollar deposits are not being offered to banks in the  London interbank eurodollar market for the applicable amount and Interest Period of  such Eurodollar Rate Loan, (ii) adequate and reasonable means do not exist for  determining the Eurodollar Rate for any requested Interest Period with respect to a  proposed Eurodollar Rate Loan or in connection with an existing or proposed Base  Rate Loan, or (iii) the Eurodollar Rate for any requested Interest Period with respect to  a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such  Lenders of funding such Loan, the Administrative Agent will promptly so notify the  Borrower and each Lender.  Thereafter, (x) the obligation of the Lenders to make or  maintain Eurodollar Rate Loans shall be suspended, and (y) in the event of a  determination described in the preceding sentence with respect to the Eurodollar Rate  component of the Base Rate, the utilization of the Eurodollar Rate component in  determining the Base Rate shall be suspended, in each case until the Administrative  Agent (upon the instruction of the Required Lenders) revokes such notice.  Upon  receipt of such notice, the Borrower may revoke any pending request for a Borrowing  of, conversion to or continuation of Eurodollar Rate Loans or, failing that, will be  

 

CHAR1\1760870v5 7 deemed to have converted such request into a request for a Borrowing of Base Rate  Loans in the amount specified therein.   (b) Effect of Benchmark Transition Event.     (i) Benchmark Replacement.  Notwithstanding anything to the  contrary herein or in any other Loan Document, upon the occurrence of a  Benchmark Transition Event or an Early Opt-in Election, as applicable, the  Administrative Agent and the Borrower may amend this Agreement to replace  LIBOR with a Benchmark Replacement.  Any such amendment with respect to a  Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th)  Business Day after the Administrative Agent has posted such proposed  amendment to all Lenders and the Borrower so long as the Administrative Agent  has not received, by such time, written notice of objection to such amendment  from Lenders comprising the Required Lenders.  Any such amendment with  respect to an Early Opt-in Election will become effective on the date that Lenders  comprising the Required Lenders have delivered to the Administrative Agent  written notice that such Required Lenders accept such amendment. No  replacement of LIBOR with a Benchmark Replacement pursuant to this Section  3.03(b) will occur prior to the applicable Benchmark Transition Start Date.   (ii) Benchmark Replacement Conforming Changes.  In connection  with the implementation of a Benchmark Replacement, the Administrative Agent  will have the right to make Benchmark Replacement Conforming Changes from  time to time and, notwithstanding anything to the contrary herein or in any other  Loan Document, any amendments implementing such Benchmark Replacement  Conforming Changes will become effective without any further action or consent  of any other party to this Agreement.   (iii) Notices; Standards for Decisions and Determinations.  The  Administrative Agent will promptly notify the Borrower and the Lenders of (A)  any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as  applicable, and its related Benchmark Replacement Date and Benchmark  Transition Start Date, (B) the implementation of any Benchmark Replacement,  (C) the effectiveness of any Benchmark Replacement Conforming Changes and  (D) the commencement or conclusion of any Benchmark Unavailability Period.   Any determination, decision or election that may be made by the Administrative  Agent or Lenders pursuant to this Section 3.03(b), including any determination  with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence  of an event, circumstance or date and any decision to take or refrain from taking  any action, will be conclusive and binding absent manifest error and may be  made in its or their sole discretion and without consent from any other party  hereto, except, in each case, as expressly required pursuant to this Section  3.03(b).   (iv) Benchmark Unavailability Period.  Upon the Borrower’s receipt  of notice of the commencement of a Benchmark Unavailability Period, the  Borrower may revoke any request for a Eurodollar Rate Loan of, conversion to or  continuation of Eurodollar Rate Loans to be made, converted or continued during  any Benchmark Unavailability Period and, failing that, the Borrower will be  deemed to have converted any such request into a request for a borrowing of or  

 

CHAR1\1760870v5 8 conversion to Base Rate Loans.  During any Benchmark Unavailability Period,  the component of the Base Rate based upon LIBOR will not be used in any  determination of the Base Rate.    1.12 Amendment to Section 5.05(c).  Section 5.05(c) of the Credit Agreement is hereby  amended by replacing the text in the proviso at the end thereof with the below text:    ; provided that, for purposes of this Section 5.05(c), only from the Third Amendment  Effective Date until the date in which the Loan Parties are required to deliver the financial  statements and Compliance Certificate for the fiscal quarter of the Parent ending on or about June  30, 2021 pursuant to Section 6.01(b) and Section 6.02(a) respectively, the impacts of the COVID- 19 pandemic on the business, assets, operations, properties, condition (financial or otherwise),  liabilities or material agreements of Parent and its Subsidiaries that (x) occurred prior to the Third  Amendment Effective Date and (y) were disclosed in writing to the Administrative Agent and the  Lenders prior to the Third Amendment Effective Date shall be disregarded (to the extent the  scope of such impacts are not greater than so disclosed).  1.13 Amendment to Section 6.01(d).  Section 6.01(d) of the Credit Agreement is hereby  amended and restated in its entirety to read as follows:    (d) Monthly Reports.     (i) From the Third Amendment Effective Date through the date in which the Loan Parties  demonstrate compliance with the financial covenants set forth in Section 7.10 for the fiscal quarter  of the Parent ending on or about September 29, 2021 as determined based on the Compliance  Certificate provided by the Loan Parties pursuant to Section 6.02(a) for such fiscal quarter, as soon  as practicable and in any event within eight (8) Business Days after the end of each fiscal month,  (x) a summary of same-store sales for such month and (y) a report of restaurant closures and  openings for such month, in each case, for the restaurants of (A) the Loan Parties and their  Subsidiaries and (B) franchisees of the Loan Parties, in form and detail consistent with in the  customary public filings of the Parent; and     (ii) from the Third Amendment Effective through the date in which the Loan Parties  demonstrate compliance with the financial covenants set forth in Section 7.10 for the fiscal quarter  of the Parent ending on or about September 29, 2021 as determined based on the Compliance  Certificate provided by the Loan Parties pursuant to Section 6.02(a) for such fiscal quarter, as soon  as practicable and in any event within eight (8) Business Days after the end of each fiscal month, a  calculation of Liquidity and demonstrating compliance with Section 7.10(c) as of the end of such  month, in form and detail reasonably acceptable to the Administrative Agent.    1.14 Amendment to Section 7.03.  Section 7.03 of the Credit Agreement is hereby amended  by replacing the text in the proviso at the end thereof with the below text:    ; provided further that no Investments shall be permitted to be made under clauses (d)  (other than Investments resulting from any Restricted Payments made pursuant to  Section 7.05(a)(i)), (f) (other than Investments in an aggregate amount not to exceed $250,000),  (g), (h) and (i) of this Section 7.03 during the period commencing on the Third Amendment  Effective Date and ending on the date in which the Loan Parties demonstrate compliance with the  financial covenants set forth in Section 7.10 for the fiscal quarter of the Parent ending on or about  September 29, 2021 as determined based on the Compliance Certificate provided by the Loan  Parties pursuant to Section 6.02(a) for such fiscal quarter (other than Investments consisting of  

 

CHAR1\1760870v5 9 Guarantees by any Loan Party of obligations (including, without limitation, Operating Lease  obligations and Capital Lease Obligations) of franchisees or licensees or the Purchasing Coop (to  the extent the Purchasing Coop is acting on behalf of franchisees or licensees), consistent with  past practices and on usual and customary terms for transactions of this type, in an amount not to  exceed $10,000,000 for the Loan Parties and their Subsidiaries during such period).    1.15 Amendment to Section 7.04(e).  Section 7.04(e) of the Credit Agreement is hereby  amended and restated in its entirety to read as follows:    (e)  any Loan Party may sell, transfer, sell a franchise in or otherwise dispose of  restaurants or property (including real property, improvements, fixtures and equipment) relating  to current or former restaurants of such person (such restaurants and property are collectively  referred to as “Restaurant Businesses”) so long as no Default or Event of Default shall have  occurred and is continuing or would result therefrom and the consideration received for any  Restaurant Businesses sold, transferred or otherwise disposed is equal to the Fair Market Value of  such Restaurant Businesses, subject to the following:  (i) for the period commencing on the Third Amendment Effective Date through  the date in which the Loan Parties demonstrate compliance with the financial covenants  set forth in Section 7.10 for the fiscal quarter of the Parent ending on or about September  29, 2021 as determined based on the Compliance Certificate provided by the Loan Parties  pursuant to Section 6.02(a) for such fiscal quarter, the aggregate Fair Market Value of all  assets disposed of pursuant to this clause shall not exceed $25,000,000; provided that,  notwithstanding the foregoing, (x) such amount shall be limited to $10,000,000 in the  aggregate until the end of the end of the fiscal quarter of the Parent ending on or about  June 30, 2021 and (y) the Restaurant Business located at 5751 Sunset Blvd., Los Angeles,  California 90028 may be sold, transferred or otherwise disposed of during such period  without the restrictions set forth in this clause (i), so long as immediately prior to any  such sale, transfer or disposition, the sum of the Total Revolving Credit Outstandings is  less than $210,000,000 (without giving effect to the application of any proceeds of such  sale), and  (ii) following the date in which the Loan Parties demonstrate compliance with the  financial covenants set forth in Section 7.10 for the fiscal quarter of the Parent ending on  or about September 29, 2021 as determined based on the Compliance Certificate  provided by the Loan Parties pursuant to Section 6.02(a) for such fiscal quarter, the  aggregate Fair Market Value of all assets disposed of pursuant to this clause shall not  exceed $25,000,000 in any fiscal year; provided that, notwithstanding the foregoing, the  Restaurant Businesses located at (x) 5751 Sunset Blvd., Los Angeles, California 90028,  (y) 3600 Biscayne Blvd., Miami, Florida 33137 and (z) 221 NE 36th Street, Miami,  Florida 33137 may be sold, transferred or otherwise disposed of without the restrictions  set forth in this clause (ii).  1.16 Amendment to Section 7.05(a).  Section 7.05(a) of the Credit Agreement is hereby  amended by replacing the text in the proviso at the end thereof with the below text:    ; provided further that no Restricted Payments shall be permitted to be made under  clauses (ii), (iii) and (iv) of this Section 7.05(a) during the period commencing on the Third  Amendment Effective Date and ending on the date in which the Loan Parties demonstrate  compliance with the financial covenants set forth in Section 7.10 for the fiscal quarter of the  

 

CHAR1\1760870v5 10 Parent ending on or about September 29, 2021 as determined based on the Compliance Certificate  provided by the Loan Parties pursuant to Section 6.02(a) for such fiscal quarter.    1.17 Amendment to Section 7.10(a).  Section 7.10(a) of the Credit Agreement is hereby  amended and restated in its entirety to read as follows:    (a) Consolidated Leverage Ratio.  As of the last day of (i) the fiscal quarter ending  on or about June 30, 2021, permit the Consolidated Leverage Ratio to be greater than 5.25 to  1.00, (ii) the fiscal quarter ending on or about September 29, 2021, permit the Consolidated  Leverage Ratio to be greater than 4.75 to 1.00 and (iii) the fiscal quarter ending on or about  December 29, 2021 and each other fiscal quarter, permit the Consolidated Leverage Ratio to be  greater than 4.00 to 1.00, in each case, for the respective Measurement Period.  Notwithstanding  the foregoing, the covenant in this Section 7.10(a) shall not be tested as of the end of the fiscal  quarters ending on or about June 24, 2020, September 23, 2020, December 30, 2020 and March  31, 2021 (but otherwise shall be deemed to be in effect with respect to each such fiscal quarter  end for all provisions under this Agreement and the other Loan Documents that refer to  compliance or pro forma compliance with Section 7.10).  1.18 Amendment to Section 7.10(b).  Section 7.10(b) of the Credit Agreement is hereby  amended and restated in its entirety to read as follows:    (b) Consolidated Fixed Charge Coverage Ratio.  As of the last day of (i) the fiscal  quarter ending on or about June 30, 2021, permit the Consolidated Fixed Charge Coverage Ratio  to be less than 1.00 to 1.00, (ii) the fiscal quarter ending on or about September 29, 2021, permit  the Consolidated Fixed Charge Coverage Ratio to be less than 1.25 to 1.00, and (iii) the fiscal  quarter ending on or about December 29, 2021 and each other fiscal quarter, permit the  Consolidated Fixed Charge Coverage Ratio to be less than 1.50 to 1.00, in each case, for the  respective Measurement Period.  Notwithstanding the foregoing, (i) the covenant in this Section  7.10(b) shall not be tested as of the end of the fiscal quarters ending on or about June 24, 2020,  September 23, 2020, December 30, 2020 and March 31, 2021 (but otherwise shall be deemed to  be in effect with respect to each such fiscal quarter end for all provisions under this Agreement  and the other Loan Documents that refer to compliance or pro forma compliance with Section  7.10), (ii) for the fiscal quarter ending on or about June 30, 2021, the Consolidated Fixed Charge  Coverage Ratio shall be determined for only the single fiscal quarter of the Parent then ended  (rather than the period of four (4) consecutive fiscal quarters of the Parent then ended), (iii) for  the fiscal quarter ending on or about September 29, 2021, the Consolidated Fixed Charge  Coverage Ratio shall be determined for only the period of the two (2) consecutive fiscal quarters  of the Parent then ended (rather than the period of four (4) consecutive fiscal quarters of the  Parent then ended) and (iv) for the fiscal quarter ending on or about December 29, 2021, the  Consolidated Fixed Charge Coverage Ratio shall be determined for only the period of the three  (3) consecutive fiscal quarters of the Parent then ended (rather than the period of four (4)  consecutive fiscal quarters of the Parent then ended).  1.19 Amendment to Section 7.10(c).  Section 7.10(c) of the Credit Agreement is hereby  amended and restated in its entirety to read as follows:    (c) Minimum Liquidity.  As of the last day of any fiscal month ending during the  period commencing on the Third Amendment Effective Date and ending the date in which the  Loan Parties demonstrate compliance with the financial covenants set forth in Section 7.10 for the  fiscal quarter of the Parent ending on or about September 29, 2021 as determined based on the  

 

CHAR1\1760870v5 11 Compliance Certificate provided by the Loan Parties pursuant to Section 6.02(a) for such fiscal  quarter, permit Liquidity to be less than $70,000,000 for such fiscal month.    1.20 Amendment to Section 7.19.  Section 7.19 of the Credit Agreement is hereby amended  and restated in its entirety to read as follows:    Section 7.19 Consolidated Capital Expenditures.  Make any Consolidated Capital  Expenditures in an amount that exceeds (i) during the period commencing on the Second  Amendment Effecting Date and ending on or about March 31, 2021, $10,000,000 in the aggregate  for the Loan Parties and their Subsidiaries during such period and (ii) during the period  commencing on April 1, 2021 (which is the first day of the fiscal quarter of the Parent ending on  or about June 30, 2021) and ending on or about September 29, 2021, $12,000,000 in the  aggregate for the Loan Parties and their Subsidiaries during such period (which amount shall be  reduced by the aggregate amount of any Consolidated Capital Expenditures made pursuant to  clause (i) herein); provided that any exchange of property permitted under Section 7.04(c) shall  not otherwise be restricted by this Section 7.19.    1.21 Amendment to Section 10.01.  Section 10.01 of the Credit Agreement is hereby  amended by inserting the following new clause (iv) at the end of the second proviso therein:    and (iv) the Administrative Agent and the Borrower may, without the consent of any Lender,  enter into amendments or modifications to this Agreement or any of the other Loan Documents or to enter  into additional Loan Documents as the Administrative Agent reasonably deems appropriate in order to  implement any Benchmark Replacement or any Benchmark Replacement Conforming Changes or  otherwise effectuate the terms of Section 3.03(b) in accordance with the terms of Section 3.03(b).    ARTICLE II  LIMITED WAIVER    2.1  Limited Waiver.  Effective as of the Third Amendment Effective Date, and subject to  the terms and conditions set forth herein and in reliance upon the representations and warranties set forth  herein, each Lender party hereto hereby waives compliance by the Loan Parties with Section 7.10 of the  Credit Agreement, solely for the fiscal quarters of the Parent ending on or about December 30, 2020 and  March 31, 2021 (and for this purpose such waiver shall be interpreted as if the Loan Parties were not  required to comply with Section 7.10 of the Credit Agreement for the fiscal quarters of the Parent ending  on or about December 30, 2020 and March 31, 2021).  The foregoing waiver is a one-time waiver and  applies only to the specified circumstances and does not modify or otherwise affect the Loan Parties’  obligations to comply with such provisions of the Credit Agreement or any other provision of the Loan  Documents in any other instance.  The foregoing limited waiver shall not be deemed or otherwise  construed to constitute a waiver of any other provision or to prejudice any right, power or remedy which  the Administrative Agent or any Lender may not have or may have in the future under or in connection  with the Credit Agreement or any other Loan Document, all of which rights, powers and remedies are  hereby expressly reserved by the Administrative Agent and the Lenders.  The agreements and consents set  forth in this Section 2 are limited to the extent specifically set forth above and no other terms, covenants  or provisions of the Credit Agreement or the other Loan Documents are intended to be affected hereby.    ARTICLE III  CONDITIONS  

 

CHAR1\1760870v5 12   3.1 Closing Conditions.  This Amendment shall be deemed effective as of the date set forth  above (the “Third Amendment Effective Date”) upon satisfaction of the following conditions (in form and  substance reasonably acceptable to the Administrative Agent):    (a) Executed Amendment.  The Administrative Agent shall have received a copy of  this Amendment duly executed by each of the Loan Parties, the Administrative Agent and the  Required Lenders.    (b) Fees and Out of Pocket Costs.  The Administrative Agent shall have received  amendment fees for the account of each Lender consenting to this Amendment and the Borrower  shall have paid any and all reasonable out-of-pocket costs incurred by the Administrative Agent  (including the fees and expenses Moore & Van Allen PLLC as legal counsel to the  Administrative Agent) and all other fees and amounts required to be paid to the Administrative  Agent, in each case in connection with the negotiation, preparation, execution and delivery of this  Amendment.    ARTICLE IV  MISCELLANEOUS    4.1 Amended Terms.  On and after the date hereof, all references to the Credit Agreement in  each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.   Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and  confirmed and shall remain in full force and effect according to its terms.    4.2 Representations and Warranties of the Loan Parties.  Each of the Loan Parties  represents and warrants as follows:    (a) Each Loan Party has all requisite power and authority and has taken all necessary  corporate and other action to authorize the execution, delivery and performance of this  Amendment in accordance with its terms.      (b) This Amendment has been duly executed and delivered by the duly authorized  officers of each Loan Party that is a party hereto and constitutes a legal, valid and binding  obligation of each Loan Party, enforceable against each Loan Party that is party thereto in  accordance with its terms.    (c) No approval, consent, exemption, authorization, or other action by, or notice to,  or filing with, any Governmental Authority or any other Person is necessary or required for the  execution, delivery, performance, validity or enforceability of this Amendment.    (d) The representations and warranties set forth in Article V of the Credit Agreement  and in any other Loan Document (as amended hereby) are true and correct in all material respects  as of the date hereof (except for (i) those which expressly relate to an earlier date, which shall be  true and correct in all material respects as of such earlier date, (ii) those that are qualified by  materiality or reference to Material Adverse Effect, which are true and correct in all respects and  (iii) those contained in subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most  recent financial statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01  of the Credit Agreement).    

 

CHAR1\1760870v5 13 (e) No event has occurred and is continuing which constitutes a Default or an Event  of Default.    (f) The Collateral Documents continue to create a valid security interest in, and Lien  upon, the Collateral, in favor of the Administrative Agent, for the benefit of the Lenders, which  security interests and Liens are perfected in accordance with the terms of the Collateral  Documents and prior to all Liens other than Permitted Liens.    (g) Each Guarantor affirms all of its obligations under the Loan Documents and  agrees that this Amendment and all documents executed in connection herewith do not operate to  reduce or discharge its obligations under the Credit Agreement or the other Loan Documents.    (h) The Obligations of the Loan Parties are not reduced or modified by this  Amendment and are not subject to any offsets, defenses or counterclaims.    4.3 Reaffirmation of Obligations.  Each Loan Party hereby ratifies the Credit Agreement  and each other Loan Document to which it is a party and acknowledges and reaffirms (a) that it is bound  by all terms of the Credit Agreement and each other Loan Document to which it is a party applicable to it  and (b) that it is responsible for the observance and full performance of its respective obligations under  the Loan Documents.    4.4 Release.  The Borrower and each of the other Loan Parties hereby releases and forever  discharges the Administrative Agent, each Lender, the L/C Issuer and their respective predecessors,  successors, assigns, attorneys and Related Parties (each and every of the foregoing, a “Lender Party”)  from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of  action of any nature whatsoever, in each case to the extent arising in connection with any of the Loan  Documents through the date hereof, whether arising at law or in equity, whether known or unknown,  whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen  or unforeseen, and whether or not heretofore asserted, which any Loan Party may have or claim to have  against any Lender Party.    4.5 Loan Document.  This Amendment shall constitute a Loan Document under the terms of  the Credit Agreement.    4.6 Expenses.  The Borrower agrees to pay all reasonable costs and expenses of  Administrative Agent in connection with the preparation, execution and delivery of this Amendment,  including without limitation the reasonable fees and expenses of the Administrative Agent’s legal  counsel.    4.7 Entirety.  This Amendment and the other Loan Documents embody the entire agreement  among the parties hereto and supersede all prior agreements and understandings, oral or written, if any,  relating to the subject matter hereof.    4.8 Counterparts; Telecopy.  This Amendment may be executed in any number of  counterparts, each of which when so executed and delivered shall be an original, but all of which shall  constitute one and the same instrument.  Delivery of an executed counterpart to this Amendment by  telecopy or other electronic means shall be as delivery of a manually executed counterpart of this  Amendment.    

 

CHAR1\1760870v5 14 4.9 GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND  SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE  STATE OF NEW YORK.    4.10 Successors and Assigns.  This Amendment shall be binding upon and inure to the  benefit of the parties hereto and their respective permitted successors and assigns.    4.11 Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction,  services of process and waiver of jury trial provisions set forth in Sections 10.14 and 10.15 of the Credit  Agreement are hereby incorporated by reference, mutatis mutandis.      [Signature pages to follow]    

 

 

 

 

 

 

 

DENNY’S, INC.  THIRD AMENDMENT TO   THIRD AMENDED AND RESTATED CREDIT AGREEMENT    CITIZENS BANK, N.A.     By:        ___________________________________    Name:      Title:        Aaron Muccino AVP 

 

 

 

DENNY’S, INC.  THIRD AMENDMENT TO   THIRD AMENDED AND RESTATED CREDIT AGREEMENT  FIFTH THIRD BANK, NATIONAL  ASSOCIATION  By:        ___________________________________     Name:    Greg McGinley  Title:      Director    

 

  DENNY’S, INC.  THIRD AMENDMENT TO   THIRD AMENDED AND RESTATED CREDIT AGREEMENT    BANK OF THE WEST     By:       ___________________________________     Name:   David M. Hobert   Title:     Director            

 

 

 

DENNY’S, INC.  THIRD AMENDMENT TO   THIRD AMENDED AND RESTATED CREDIT AGREEMENT  MUFG UNION BANK, N.A.     By:          Name: R. Shawn Janko  Title: Managing Director        

 

 

 

  DENNY’S, INC.  THIRD AMENDMENT TO   THIRD AMENDED AND RESTATED CREDIT AGREEMENT  BANK OF AMERICA, N.A.  By:        Name:   Robert J. Beckley  Title:    Senior Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00318-of-00352.parquet"}]]