EX-10.6 29 a2204980zex-10_6.htm EX-10.6

Exhibit 10.6

 

 

AMENDMENT NO. 4 AND MODIFICATION AND WAIVER
TO SECOND AMENDED AND RESTATED FIRST LIEN CREDIT AGREEMENT

 

AMENDMENT NO. 4 AND MODIFICATION AND WAIVER TO SECOND AMENDED AND RESTATED FIRST LIEN CREDIT AGREEMENT dated as of June 18, 2009 (this “Amendment”), among NEW ENTERPRISE STONE & LIME CO., INC. (the “Borrower”), the GUARANTORS signatory hereto, MANUFACTURERS AND TRADERS TRUST COMPANY, as Agent (the “Agent”), issuing Bank, Swing Lender and a Lender, and the other LENDERS party hereto.

 

WITNESSETH:

 

WHEREAS, the Borrower, the Agent and certain other parties entered into that certain Second Amended and Restated Credit Agreement, dated as of January 11,2008 (as amended by that certain Amendment No. 1 to Second Amended and Restated Credit Agreement dated as of February 14,2008, that certain Waiver and Modification to Second Amended and Restated Credit Agreement, dated as of May 30,2008, that certain Amendment No. 2 and Modification to Second Amended and Restated Credit Agreement, dated as of June 20,2008, and that certain Amendment No. 3 and Authorization, dated as of January 22,2009, the “Existing Credit Agreement”), which provides for certain extensions of credit to the Borrower, subject to certain terms and conditions; terms not otherwise defined herein are used as defined in the Existing Credit Agreement;

 

WHEREAS, the Borrower has requested that the Lenders amend the Existing Credit Agreement in certain respects and the Lenders agree, subject to the terms and conditions set forth herein, to amend the Existing Credit Agreement as more specifically set forth herein (the Existing Credit Agreement, as amended by this Amendment, and as the same may be further amended, restated, modified and/or supplemented from time to time, being referred to as the “Credit Agreement”);

 

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

 

1.             AMENDMENTS.  Upon satisfaction of the conditions set forth in Section 5 below, effective as of the date hereof, the Existing Credit Agreement shall be amended as of February 28, 2009 in the manner set forth below:

 

a.             The defined term “Net Worth” in Article 9 (Definitions) of the Existing Credit Agreement shall be amended and restated to read as follows:

 

“‘Net Worth:  the excess of total assets over total liabilities (each to be determined in accordance with GAAP), but without reduction for (i) the Conversion Deferred Tax Liabilities and (ii) non-cash impairment charges related to SFAS No. 142, ‘Goodwill and Other Intangible Assets’ reflected on the statement of income in an amount not to exceed $25,000,000 in the aggregate during the term of the Credit Agreement.”

 



 

b.             Clause (h) of Section 7.1.1 (Indebtedness; In General) is hereby amended by deleting “$3,000,000” and replacing it with “$8,000,000”.

 

2.             MODIFICATION.  Upon satisfaction of the conditions set forth in Section 5 below, effective as of the date hereof, the Agent and the Lenders agree to modify the requirement that Borrower deliver;

 

a.             its annual financial statements for the fiscal year ended February 28, 2009, (which under the Existing Credit Agreement would be due by May 29, 2009),

 

b.             its Officer’s Compliance Certificate for the quarter ended February 28, 2009, (which under the Existing Credit Agreement would be due by May 29, 2009),

 

c.             its annual budget for the fiscal year commencing on March 1, 2009, (which under the Existing Credit Agreement would be due by May 29, 2009),

 

d.             its monthly reports for the month ended March 31, 2009, (which under the Existing Credit Agreement would be due by May 15, 2009), and

 

e.             its monthly reports for the month ended April 30, 2009 (which under the Existing Credit Agreement would be due by June 15, 2009),

 

in each case, to extend the delivery deadline until June 19, 2009.  The modifications set forth herein are limited to their express terms and shall not imply that the Agent or the Lenders would be willing to expand the terms or provide additional waivers or modifications in the future.

 

3.             WAIVERS.  Agent and Lenders hereby waive (i) any Default or Event of Default that may have arisen as a result of the amendments set forth in Section 1 above and the modifications set forth in Section 2 not becoming effective until the date hereof and (ii) the imposition of the Default Rate in connection therewith.  The waivers set forth herein are limited to their express terms and shall not imply that the Agent or the Lenders would be willing to expand the terms or provide additional waivers in the future.

 

4.             REPRESENTATIONS AND WARRANTIES.  In order to induce the Lenders, the Issuing Bank, the Swing Lender and the Agent to agree to amend and modify the Existing Credit Agreement in the manner set forth herein, the Borrower makes the following representations and warranties, which shall survive the execution and delivery of this Amendment:

 

a.             As of the date hereof, after giving effect to the amendments and modifications contained herein, no Default or Event of Default has occurred and is continuing;

 

b.             Each of the representations and warranties of the Borrower and the other Loan Parties made herein and in the other Loan Documents is true and correct in all respects (or in all material respects if any such representation or warranty is not by its terms already qualified as to materiality) both before and after giving effect to the amendments contemplated hereby as though each such representation and warranty were made at and as of the date hereof unless relating solely to an earlier date, in which case such representation and

 

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warranty shall be true and correct in all respects as of such earlier date (or in all material respects as of such earlier date if any such representation or warranty is not by its terms qualified as to materiality);

 

c.             The execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of Borrower;

 

d.             No consent or approval of any third party, including, without limitation, any governmental agency or authority is necessary in connection with the execution, delivery and/or performance of this Amendment and/or the enforceability hereof.  Upon satisfaction of the conditions set forth in Section 5, this Amendment will constitute the legal, valid and binding obligation of the Borrower, enforceable against it in accordance with the terms hereof

 

e.             All Secured Obligations are due and payable without setoff or counterclaim and the Loan Parties have no claims against the Agent or Lenders.

 

5.             EFFECTIVENESS.  The amendments, modifications and waivers to the Existing Credit Agreement set forth herein shall become effective, as of the date hereof, immediately upon the last to occur of the following;

 

a.             The Agent shall have executed this Amendment and received counterparts of this Amendment duly executed and delivered on behalf of the Loan Parties and the Majority Lenders;

 

b.             The Agent shall have received payment by Borrower of all invoiced out- of-pocket fees, costs, expenses and other amounts required to be paid by Borrower in connection with the execution and delivery of this Amendment or otherwise under the Loan Documents;

 

c.             The Borrower shall have paid to the Agent an amendment fee, for the account of each of the Lenders (based on each Lenders outstanding Term Loans and RC Commitment) who shall have executed and delivered its signature page to this Amendment no later than the time specified, and in accordance with the instructions set forth on Annex A hereto; and

 

d.             The Agent shall have received an amendment and waiver to the Second Lien Credit Agreement, in form and substance reasonably satisfactory to the Agent, executed by the Borrower and Majority Lenders (in this instance, as defined in the Second Lien Credit Agreement).

 

e.             The Agent shall have received such other information as it shall reasonably request.

 

6.             MISCELLANEOUS.

 

a.             Counterparts.  This Amendment may be executed in counterparts and by different parties hereto in separate counterparts, each of which, when executed and

 

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delivered, shall be deemed to be an original and all of which, when taken together, shall constitute one and the same instrument.  A photocopied, facsimile or pdf signature shall be deemed to be the functional equivalent of a manually executed original for all purposes.

 

b.             Ratification.  Except as set forth herein, no amendment, modification or waiver is intended hereby.  The Existing Credit Agreement, as amended by this Amendment and the other Loan Documents (and/or in connection with this Amendment) are, and shall continue to be, in full force and effect.  Each of the parties hereto hereby confirms, approves and ratifies in all respects the Existing Credit Agreement, as amended by this Amendment, and each of the parties hereto and each of the Guarantors hereby confirms and ratifies in all respects all of the other agreements, documents and instruments to which such Person is a party and delivered in connection with the Existing Credit Agreement (and/or in connection with this Amendment).  Without limiting the generality of the foregoing, the Borrower and the Guarantors, hereby confirm that the pledges and the security interest granted pursuant to the Loan Documents continue to secure all of the Secured Obligations under and ratifies (i) the Existing Credit Agreement as amended hereby and (ii) the other Loan Documents.

 

c.             Payment of Expenses.  Without limiting other payment obligations of the Borrower set forth in the Credit Agreement, the Borrower agrees to pay all reasonable costs and expenses incurred by Agent in connection with the preparation, execution and delivery of this Amendment and any other documents, agreements and/or instruments which may be delivered in connection herewith, including, without limitation, the reasonable fees and expenses of Agent’s counsel, Drinker Biddle & Ream LLP.

 

d.             Governing Law.  This Amendment shall be construed in accordance with, and governed by, the internal laws of the Commonwealth of Pennsylvania, without regard to the choice of law principles of such state.

 

e.             References.  From and after the effective date of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereof, “hereunder” or words of like import, and all references to the Credit Agreement in any and all agreements, instruments, certificates and other documents, shall be deemed to mean the Credit Agreement as modified and amended by this Amendment and as the same may be further amended, modified or supplemented in accordance with the terms thereof.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the undersigned have caused this Amendment No. 2 to be duly executed by their respective, duly authorized officers as of the date first above written.

 

 

NEW ENTERPRISE STONE & LIME CO., INC., as Borrower

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

Name:

Paul I. Detwiler, III

 

 

Title:

Executive Vice President, Chief Financial Officer and Secretary

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

MANUFACTURERS AND TRADERS TRUST COMPANY, as Agent and Lender

 

 

 

By:

/s/ Stephen A. Foreman

 

 

Name:

Stephen A. Foreman

 

 

Title:

Regional Executive

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

Acknowledged and agreed to by:

 

 

Guarantors:

 

 

 

 

 

MARTIN LIMESTONE, INC.

 

 

STAR CARRIERS, INC.

 

 

ABC PAVING CO., INC.

 

 

E.R.S.C., INC.

 

 

GATEWAY TRADE CENTER INC.

 

 

BUFFALO CRUSHED STONE INC.

 

 

 

 

 

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

 

Name:

Paul I. Detwiler, III

 

 

 

Title:

Vice President and Assistant Secretary,

 

 

 

 

on behalf of each of the foregoing

 

 

 

 

 

NEW ENTERPRISE TRANSPORTATION, INC.

 

 

 

 

 

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

 

Name:

Paul I. Detwiler, III

 

 

 

Title:

Vice President and Secretary

 

 

 

 

 

VALLEY QUARRIES, INC.

 

 

 

 

 

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

 

Name:

Paul I. Detwiler, III

 

 

 

Title:

President and Assistant Secretary

 

 

 

 

 

BLAIR BEDFORD PAVING COMPANY, INC.

 

 

 

 

 

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

 

Name:

Paul I. Detwiler, III

 

 

 

Title:

Secretary and Treasurer

 

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

NESL BUFFALO HOLDINGS, INC.

 

 

2544 CLINTON, INC.

 

 

 

 

 

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

 

Name:

Paul I. Detwiler, III

 

 

 

Title:

Vice President, Secretary and Treasurer

 

 

 

 

 

 

 

STABLER COMPANIES INC.

 

 

 

 

 

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

 

Name:

Paul I. Detwiler, III

 

 

 

Title:

Vice President and Secretary

 

 

 

 

 

PROTECTION SERVICES INC.

 

 

SCI PRODUCTS INC.

 

 

WORK AREA PROTECTION CORP.

 

 

EASTERN INDUSTRIES, INC.

 

 

STABLER DEVELOPMENT COMPANY

 

 

ELCO-HAUSMAN CONSTRUCTION CORPORATION

 

 

EII TRANSPORT INC.

 

 

PRECISION SOLAR CONTROLS INC.

 

 

ASTI TRANSPORTATION SYSTEMS, INC.

 

 

 

 

 

 

 

 

By:

/s/ Paul I. Detwiler, III

 

 

 

Name:

Paul I. Detwiler, III

 

 

 

Title:

Vice President and Assistant Secretary

 

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 


 

 

NATIONAL CITY BANK

 

 

 

 

 

By:

/s/ Kenneth S. Jamison

 

 

Name:

Kenneth F. Jamison

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

FIRSTMERIT BANK, N.A.

 

 

 

 

 

By:

/s/ Robert G. Morlan

 

 

Name:

Robert G. Morlan

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

WILMINGTON TRUST COMPANY

 

 

 

 

 

By:

/s/ Megan V. Rosanova

 

 

Name:

Megan V. Rosanova

 

 

Title:

AVP

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

HSBC BANK USA, N.A.

 

 

 

 

 

By:

/s/ Frank M. Eassa

 

 

Name:

Frank M. Eassa

 

 

Title:

AVP Commercial Banking

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

FIFTH THIRD BANK

 

 

 

 

 

By:

/s/ Joe Hynds

 

 

Name:

Joe Hynds

 

 

Title:

Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

S&T BANK

 

 

 

 

 

By:

/s/ Michael J. Settimio

 

 

Name:

Michael J. Settimio

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

FULTON BANK

 

 

 

 

 

By:

/s/ James J. Dougherty

 

 

Name:

James J. Dougherty

 

 

Title:

VP — Relationship Mgr.

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

CITIZENS BANK OF PENNSYLVANIA

 

 

 

 

 

By:

/s/ Benjamin K. Ditson

 

 

Name:

Benjamin K. Ditson

 

 

Title:

Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

SOVEREIGN BANK

 

 

 

 

 

By:

/s/ Zerick D. Cook

 

 

Name:

Zerick D. Cook

 

 

Title:

Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

AUDAX CREDIT OPPORTUNITIES OFFSHORE LTD.

 

 

 

 

 

By:

/s/ Michael P. McGonigle

 

 

Name:

Michael P. McGonigle

 

 

Title:

Authorized Signatory

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 


 

 

FIRST COMMONWEALTH BANK

 

 

 

 

 

By:

/s/ Lawrence C. Deihle

 

 

Name:

Lawrence C. Deihle

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

SANDY SPRING BANK

 

 

 

 

 

By:

/s/ Roy S. Lewis

 

 

Name:

Roy S. Lewis

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

FIRST NATIONAL BANK OF PENNSYLVANIA

 

 

 

 

 

By:

/s/ Nicholas B. Gates

 

 

Name:

Nicholas B. Gates

 

 

Title:

AVP Commercial Lending

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

TRISTATE CAPITAL BANK

 

 

 

 

 

By:

/s/ Paul J. Oris

 

 

Name:

Paul J. Oris

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

ATLAS OCI ENHANCED LOAN INCOME FUND LLC

 

 

 

 

 

By:

/s/ Heather M. Jousma

 

 

Name:

Heather M. Jousma

 

 

Title:

Authorized Signatory

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

OCTAGON INVESTMENT PARTNERS V, LTD.

 

By:

Octagon Credit Investors, LLC

By:

/s/ Donald C. Young

 

as Portfolio Manager

 

Name:

Donald C. Young

 

 

 

Title:

Portfolio Manager

 

 

 

OCTAGON INVESTMENT PARTNERS VI, LTD.

 

By:

Octagon Credit Investors, LLC

 

 

as Collateral Manager

 

OCTAGON INVESTMENT PARTNERS VII, LTD.

 

By:

Octagon Credit Investors, LLC

 

 

as Collateral Manager

 

OCTAGON INVESTMENT PARTNERS VIII, LTD.

 

By:

Octagon Credit Investors, LLC

 

 

as Collateral Manager

 

OCTAGON INVESTMENT PARTNERS IX, LTD.

 

By:

Octagon Credit Investors, LLC

 

 

as Manager

 

OCTAGON INVESTMENT PARTNERS X, LTD.

 

By:

Octagon Credit Investors, LLC

 

 

as Collateral Manager

 

OCTAGON INVESTMENT PARTNERS XI, LTD.

 

By:

Octagon Credit Investors, LLC

 

 

as Collateral Manager

 

HAMLET II, LTD.

 

By:

Octagon Credit Investors, LLC

 

 

as Portfolio Manager

 

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

AMMC CLO III, LIMITED

 

By:

American Money Management Corp.,

 

 

as Collateral Manager

 

 

 

 

 

 

 

By:

/s/ Chester M. Eng

 

 

Name:

Chester M. Eng

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

AMMC CLO V, LIMITED

 

By:

American Money Management Corp.,

 

 

as Collateral Manager

 

 

 

 

 

 

 

By:

/s/ Chester M. Eng

 

 

Name:

Chester M. Eng

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

AMMC CLO VI, LIMITED

 

By:

American Money Management Corp.,

 

 

as Collateral Manager

 

 

 

 

 

 

 

By:

/s/ Chester M. Eng

 

 

Name:

Chester M. Eng

 

 

Title:

Senior Vice President

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]

 



 

 

WELLS FARGO EQUIPMENT FINANCE

 

 

 

 

 

By:

/s/ Matthew C. Jungemann

 

 

Name:

Matthew C. Jungemann

 

 

Title:

Senior Account Executive

 

[Signature Page to Amendment No .4 to Second Amended and Restated Credit Agreement]