Document:

Document

Exhibit 10.1

PNC Bank, National Association                                            
1900 East Ninth Street                                                              
8th Floor                                                                                   
Cleveland, Ohio 44144                                                            

July 27, 2022

Big Lots, Stores, LLC, as Borrowing Agent
4900 E. Dublin Granville Road
Columbus, Ohio 43081 
Attention:  Jonathan Ramsden, EVP, Chief Financial & Administrative Officer

Re:     Credit Facility provided to Big Lots Stores, LLC, an Ohio limited liability company ("BLS"), Big Lots, Inc., an Ohio corporation (the "Parent") (BLS, Parent and the Designated Borrowers (as defined in the Credit Agreement, as defined below) from time to time party to the Credit Agreement are each a "Borrower" and collectively, the "Borrowers"), each of the Guarantors (as listed on the signature pages hereto) (collectively, the "Guarantors", and together with the Borrowers, collectively, the "Loan Parties"), PNC Bank, National Association ("PNC Bank"), various other financial institutions from time to time (PNC Bank and such other financial institutions are each a "Bank" and collectively, the "Banks"), and PNC Bank, as administrative agent for the Banks  (in such capacity, the "Administrative Agent") (the "Credit Facility").

Dear Mr. Ramsden:

Reference is made to that certain Second Amended and Restated Credit Agreement, dated as of September 22, 2021, by and among the Borrowers, the Guarantors party thereto, the Banks party thereto and the Administrative Agent, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement, dated as of December 16, 2021, by and among the Borrowers, the Guarantors party thereto, the Banks party thereto and the Administrative Agent (as amended through the date hereof, the "Credit Agreement").  Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Credit Agreement.

Pursuant to Section 8.2.16 [Minimum Fixed Charge Coverage Ratio] of the Credit Agreement, the Loan Parties agreed to maintain a Fixed Charge Coverage Ratio of not less than 1.50 to 1.00, calculated as of the end of each fiscal quarter, in each case for the four (4) fiscal quarters then ended ("Minimum Fixed Charge Coverage Ratio"). The Loan Parties have requested that the Administrative Agent and the Banks suspend the testing of this Minimum Fixed Charge Coverage Ratio for the fiscal quarter period ending July 30, 2022 (the "July Minimum Fixed Charge Coverage Ratio Test").  

Please be advised that the Administrative Agent and Banks hereby consent to the suspension of the July Minimum Fixed Charge Coverage Ratio Test; provided, however, that such consent is given subject to the satisfaction of the Conditions (as defined below) on or before the date hereof.

In connection with such request, each Loan Party hereby covenants and agrees to either (a) duly execute and deliver an amendment to the existing Credit Agreement or (b) enter into a new credit facility to replace the existing Credit Agreement, in each case, on terms mutually agreeable among the Loan Parties, the Administrative Agent and the Banks no later than October 28, 2022 (as such time period may be extended by the Administrative Agent in its commercially reasonable discretion, the "Amendment or Replacement Date"); provided that, for the avoidance of doubt, the Loan Parties shall not be obligated to enter into any such amendment or new credit facility (subject to the Event of Default contemplated by the next paragraph).   

Each Loan Party acknowledges that this letter is hereby deemed to be a “Loan Document” under the Credit Agreement and failure to comply with the terms of this letter by the Amendment or Replacement Date shall at the Administrative Agent’s discretion, or upon the request of the Required Banks, constitute an immediate Event of Default under the Credit Agreement.  

As used herein, "Conditions" shall mean the performance and/or delivery, in form and substance reasonably satisfactory to the Administrative Agent, of the following items:

(a)        this letter, duly executed by the Loan Parties;

(b)        payment of all fees and expenses owed to the Administrative Agent and its counsel and the Banks in connection herewith; and

(c)        any other such documents, instruments or evidence as may be reasonably requested by the Administrative Agent, if any.

The consents and agreements contained herein shall be limited to the specific consents and agreements made herein.  Except as set forth herein, the Administrative Agent and the Banks hereby expressly reserve all rights, remedies, powers and privileges they have or may have under the Credit Agreement, any of the Loan Documents, and applicable law or equity.

This letter shall be deemed to be a contract under the Laws of the State of Ohio without regard to its conflict of laws principles.  

This letter constitutes an accommodation to the Loan Parties and the agreements contained herein shall be limited to the specific agreements made herein.  Except as otherwise modified herein, all other terms and conditions of the Credit Agreement and the Loan Documents continue in full force and effect and are unmodified by this letter.

This letter may be executed in multiple counterparts and delivered by facsimile, e-mail or portable document format (.pdf) transmission, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.  The delivery of a manually executed original counterpart signature page to this letter by fax or by electronic delivery in .pdf or similar format will be sufficient to bind the parties to the terms and conditions of this letter without the need for delivery of a manually executed original counterpart signature page.

[SIGNATURE PAGES FOLLOW]

If the foregoing terms and conditions are acceptable to you, please indicate your acceptance by signing in the spaces indicated below.  This letter agreement shall constitute a rider to and form a part of the Credit Agreement, as the same may be amended, modified or supplemented from time to time.

PNC Bank, National Association, as 
Administrative Agent and as a Lender

						
	By:	/s/ Anthony Irwin
	Name:	Anthony Irwin
	Title:	Vice President

Acknowledged and accepted as of this
27th day of July, 2022.

						
		BORROWERS:
		
	ATTEST:

By: /s/ Steven J. Hutkai
Name: Steven J. Hutkai
Title: VP, Tax & Treasurer

	BIG LOTS STORES, LLC.

By: /s/ Jonathan E. Ramsden
Name: Jonathan E. Ramsden
Title: EVP, Chief Financial & 
         Administrative Officer

	ATTEST:

By: /s/ Steven J. Hutkai
Name: Steven J. Hutkai
Title: VP, Tax & Treasurer

	BIG LOTS, INC.

By: /s/ Jonathan E. Ramsden
Name: Jonathan E. Ramsden
Title: EVP, Chief Financial & 
         Administrative Officer

	ATTEST:

By: /s/ Steven J. Hutkai
Name: Steven J. Hutkai
Title: VP, Tax & Treasurer

	GUARANTORS:

AVDC, LLC
Big Lots eCommerce LLC
BIG LOTS F&S, LLC
CLOSEOUT DISTRIBUTION, LLC
BIG LOTS STORES – CSR, LLC
CSC DISTRIBUTION, LLC
DURANT DC, LLC
GREAT BASIN LLC
BIG LOTS STORES – PNS, LLC
BIG LOTS MANAGEMENT, LLC 
BROYHILL, LLC 
PAFDC LLC 
GAFDC LLC 
CONSOLIDATED PROPERTY HOLDINGS, INC. 
INFDC, LLC 
WAFDC, LLC

By: /s/ Jonathan E. Ramsden
Name: Jonathan E. Ramsden
Title: EVP, Chief Financial & 
         Administrative Officer

ADMINISTRATIVE AGENT AND BANKS:

PNC BANK, NATIONAL ASSOCIATION, 
individually and as Administrative Agent

						
	By:	/s/ Anthony Irwin
	Name:	Anthony Irwin
	Title:	Vice President

WELLS FARGO BANK, NATIONAL 
ASSOCIATION

						
	By:	/s/ Andre Hester
	Name:	Andre Hester
	Title:	Director

U.S. BANK NATIONAL ASSOCIATION 

						
	By:	/s/ Peter Hale
	Name:	Peter Hale
	Title:	Vice President

TRUIST BANK

						
	By:	/s/ Tesha Winslow
	Name:	Tesha Winslow
	Title:	Director

THE HUNTINGTON NATIONAL BANK

						
	By:	/s/ Phil Andresen
	Name:	Phil Andresen
	Title:	Vice President

BANK OF AMERICA, N.A.

						
	By:	/s/ Gregg Bush
	Name:	Gregg Bush
	Title:	Senior Vice President

MUFG BANK, LTD.

						
	By:	/s/ Reema Sharma
	Name:	Reema Sharma
	Title:	Authorized Signatory

Capital One, National Association

						
	By:	/s/ Benjamin Lucas
	Name:	Benjamin Lucas
	Title:	Duly Authorized Signatory

Citizens Bank, N.A.

						
	By:	/s/ Carl S. Tabacjar, Jr.
	Name:	Carl S. Tabacjar, Jr.
	Title:	Senior Vice President

First Commonwealth Bank 

						
	By:	/s/ David Wright
	Name:	David Wright
	Title:	Corporate Banker

The Bank of Nova Scotia

						
	By:	/s/ Todd Kennedy
	Name:	Todd Kennedy
	Title:	Managing Director

BOKF, NA

						
	By:	/s/ Timberly Harding
	Name:	Timberly Harding
	Title:	Senior Vice President

Comerica Bank

						
	By:	/s/ John Lascody
	Name:	John Lascody
	Title:	Vice President

Fifth Third Bank

						
	By:	/s/ Todd S. Robinson
	Name:	Todd S. Robinson
	Title:	SVPDocument

Exhibit 10.2

Wells Fargo Bank, National Association
MAC N9305-157
90 S. 7th Street, 15th Floor
Minneapolis, MN 55402
Attention:  Zach Shimota

July 27, 2022

AVDC, LLC
c/o Big Lots, Inc.
4900 E. Dublin-Granville Road
Columbus, OH 43081
Attention:  Jonathan Ramsden, EVP, Chief Financial & Administrative Officer

Re:     Synthetic Lease Facility provided to AVDC, LLC (formerly, AVDC, Inc.), an Ohio limited liability company (“AVDC”) by Wachovia Service Corporation, a Delaware corporation (“WSC”) and certain other financing parties pursuant to the Participation Agreement (as such term is hereinafter defined) and the other Operative Agreements

Dear Mr. Ramsden:

Reference is made to that certain Participation Agreement dated as of November 30, 2017 (the “Original Participation Agreement”) by and among AVDC (the “Construction Agent” or “Lessee”); the various entities which are parties thereto from time to time as guarantors (individually, a “Guarantor” and collectively, the “Guarantors” and together with the Construction Agent and the Lessee, the “Credit Parties”); WSC (the “Lessor”); the various banks and other lending institutions which are parties thereto from time to time as lease participants (individually, a “Lease Participant” and collectively, the “Lease Participants” and together with the Lessor, the “Lessor Parties”); and Wells Fargo Bank, National Association, a national banking association, as the agent for the Lessor Parties and, respecting the Security Documents, as the agent for the Secured Parties (in such capacity, the “Agent”), as the Original Participation Agreement has been amended by (x) that certain First Amendment to Certain Operative Agreements dated as of August 31, 2018 (the “First Amendment”) by and among the Credit Parties thereto, the Lessor Parties thereto and the Agent, (y) that certain Second Amendment to Certain Operative Agreements dated as of August 2, 2019 (the “Second Amendment”) by and among the Credit Parties thereto, the Lessor Parties thereto and the Agent, and (z) that certain Third Amendment to Certain Operative Agreements dated as of September 22, 2021(the “Third Amendment”) by and among the Credit Parties thereto, the Lessor Parties thereto and the Agent.  The Original Participation Agreement, as amended by the First Amendment, the Second Amendment and the Third Amendment shall be referred to herein as the “Participation Agreement”.  Capitalized terms used herein but not otherwise defined herein shall have the meanings set forth in Appendix A to the Participation Agreement.

Pursuant to Section 8.3B(p) of the Participation Agreement, the Credit Parties agreed to maintain a Fixed Charge Coverage Ratio of not less than 1.50 to 1.00, calculated as of the end of each fiscal quarter, in each case for the four (4) fiscal quarters then ended (the “Minimum Fixed Charge Coverage Ratio”). The Credit Parties have requested that the Agent and the Lessor Parties suspend the testing of this Minimum Fixed Charge Coverage Ratio solely for the fiscal quarter period ending July 30, 2022 (the “July Minimum Fixed Charge Coverage Ratio Test”).
CHAR1\1920476v5

Please be advised that the Agent and the Lessor Parties hereby consent to the suspension of the July Minimum Fixed Charge Coverage Ratio Test; provided, however, that such consent is given subject to the satisfaction of the Conditions (as defined below) on or before the date hereof.

In connection with such request to suspend the July Minimum Fixed Charge Coverage Ratio Test, each Credit Party hereby covenants and agrees to duly execute and deliver an amendment to the existing Participation Agreement on terms mutually agreeable among the Credit Parties, the Agent and the Lessor Parties no later than October 28, 2022 (as such time period may be extended by the Majority Secured Parties in their commercially reasonable discretion, the “Amendment Date”); provided that, for the avoidance of doubt, the Credit Parties shall not be obligated to enter into any such amendment by the Amendment Date, however, any failure by the Credit Parties, the Agent and the Lessor Parties to enter into any such amendment by the Amendment Date shall (at the Agent’s discretion or upon the request of the Majority Secured Parties) constitute an immediate Lease Event of Default by the Lessee and the other Credit Parties pursuant to Section 17.1 of the Lease as though Section 17.1 of the Lease expressly referenced an immediate Lease Event of Default regarding the lack of such amendment to be in effect by the Amendment Date.

Each Credit Party acknowledges that this letter agreement is hereby deemed to be an “Operative Agreement”.

As used herein, “Conditions” shall mean the performance and/or delivery, in form and substance reasonably satisfactory to the Agent, of the following items:

(a)        this letter agreement, duly executed by the Credit Parties;

(b)        the consent letter regarding the Revolving Credit Agreement dated on or about the date hereof, duly executed by the Parent, Big Lots Stores, LLC (formerly, Big Lots Stores, Inc.), the other Loan Parties (as such term is defined in such consent letter), the Banks (as such term is defined in such consent letter) and PNC Bank, National Association, as administrative agent for the Banks;

(c)        payment of all fees and expenses owed to the Agent and its counsel and the Lessor Parties in connection herewith; and

(d)        any other such documents, instruments or evidence as may be reasonably requested by the Agent, if any.

The consents and agreements contained herein shall be limited to the specific consents and agreements made herein.  Except as set forth herein, the Agent and the Lessor Parties hereby expressly reserve all rights, remedies, powers and privileges they have or may have under the Participation Agreement, any of the other Operative Agreements and applicable law or equity.

THIS LETTER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK EXCEPT TO THE EXTENT THAT LOCAL LAW IS PROPERLY APPLICABLE FOR MATTERS OF REAL PROPERTY.

This letter agreement constitutes an accommodation to the Credit Parties and the agreements contained herein shall be limited to the specific agreements made herein.  Except as otherwise modified herein, all other terms and conditions of the Participation Agreement and the other Operative Agreements continue in full force and effect and are unmodified by this letter agreement.
2

CHAR1\1920476v5

This letter agreement may be executed in multiple counterparts and delivered by facsimile, e-mail or portable document format (.pdf) transmission, each of which shall be deemed an original, but all of which shall constitute one and the same instrument.  The delivery of a manually executed original counterpart signature page to this letter agreement by fax or by electronic delivery in .pdf or similar format will be sufficient to bind the parties to the terms and conditions of this letter agreement without the need for delivery of a manually executed original counterpart signature page.

[SIGNATURE PAGES FOLLOW]

3

CHAR1\1920476v5

If the foregoing terms and conditions are acceptable to you, please indicate your acceptance by signing in the spaces indicated below.  This letter agreement shall constitute a rider to and form a part of the Participation Agreement, as the same may be amended, modified, extended, supplemented, restated and/or replaced from time to time.

WELLS FARGO BANK, NATIONAL
ASSOCIATION, as the Agent

						
	By:	/s/ Andre Hester
	Name:	Andre Hester
	Title:	Director

[signature pages continue]
CONSENT LETTER AGREEMENT
CHAR1\1920476

Acknowledged and accepted as of this 27th day of July, 2022.

CONSTRUCTION AGENT AND LESSEE:

AVDC, LLC (formerly, AVDC, Inc.), as the
Construction Agent and the Lessee

						
	By:	/s/ Jonathan E. Ramsden
	Name:	Jonathan E. Ramsden
	Title:	EVP, Chief Financial & Administrative Officer

(signature pages continue)
CONSENT LETTER AGREEMENT
CHAR1\1920476

GUARANTORS:

BIG LOTS STORES, LLC (formerly, Big Lots Stores, 
Inc.)
BIG LOTS, INC.
BIG LOTS ECOMMERCE LLC
BIG LOTS F&S, LLC (formerly, Big Lots F&S, Inc.)
BIG LOTS MANAGEMENT, LLC (formerly, BLHQ 
LLC)
BROYHILL, LLC
CLOSEOUT DISTRIBUTION, LLC (formerly, 
Closeout Distribution, Inc.)
CONSOLIDATED PROPERTY HOLDINGS, INC.
CSC DISTRIBUTION LLC (formerly, CSC 
Distribution, Inc.)
BIG LOTS STORES – CSR, LLC (formerly, C.S. Ross 
Company)
DURANT DC, LLC
GAFDC LLC
GREAT BASIN LLC
PAFDC LLC
BIG LOTS STORES – PNS, LLC (formerly, PNS 
Stores, Inc.)
WAFDC, LLC
INFDC, LLC

						
	By:	/s/ Jonathan E. Ramsden
	Name:	Jonathan E. Ramsden
	Title:	EVP, Chief Financial & Administrative Officer

(signature pages continue)
CONSENT LETTER AGREEMENT
CHAR1\1920476

LESSOR PARTIES:

WACHOVIA SERVICE CORPORATION, as the 
Lessor

						
	By:	/s/ John G. McGowan
	Name:	John G. McGowan
	Title:	Vice President

(signature pages continue)

CONSENT LETTER AGREEMENT
CHAR1\1920476

BANKERS COMMERCIAL CORPORATION, as a 
Lease Participant

						
	By:	/s/ Manuel Gonzalez
	Name:	Manuel Gonzalez
	Title:	Vice President

(signature pages continue)
CONSENT LETTER AGREEMENT
CHAR1\1920476

PNC BANK, NATIONAL ASSOCIATION (successor-
by-merger to PNC Equipment Finance, LLC), as a Lease 
Participant

						
	By:	/s/ Craig A. Zimmerman
	Name:	Craig A. Zimmerman
	Title:	Senior Vice President

(signature pages end)
CONSENT LETTER AGREEMENT
CHAR1\1920476

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