EX-10.2.3 4 dex1023.htm WAIVER DATED FEBRUARY 16, 2006 TO THE AMMENDED AND RESTATED CREDIT AGREEMENT Waiver dated February 16, 2006 to the Ammended and Restated Credit Agreement

Exhibit 10.2.3

WAIVER dated as of February 16, 2006 (this “Waiver”) to the Amended and Restated Credit Agreement dated as of March 21, 2005 (the “Credit Agreement”), among HEALTHSOUTH CORPORATION (the “Borrower”), the Lenders party thereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent and Collateral Agent.

WHEREAS, the Borrower has informed the Administrative Agent that it desires to issue Capital Stock of the Borrower generating Net Proceeds of up to $400,000,000, with such issuance to be completed no later than March 31, 2006 (such issuance, the “Equity Issuance”);

WHEREAS, Section 2.10(c) of the Credit Agreement requires that the Borrower apply 50% of the Net Proceeds from the issuance of any Capital Stock of the Borrower (other than any such issuance to any Subsidiary) to prepay Borrowings and/or cash collateralize Letters of Credit under the Credit Agreement in accordance with the terms of the Credit Agreement;

WHEREAS, the Borrower is contemplating a series of transactions pursuant to which, among other things, the Borrower will (a) offer to repurchase and, to the extent tendered, repurchase substantially all of its outstanding senior notes and senior subordinated notes, (b) repay all outstanding Loans and pay all other amounts due under, and terminate, the Credit Agreement and (c) repay certain other outstanding indebtedness (the transactions referred to in clauses (a) through (c) above being called the “Debt Refinancing”);

WHEREAS, Section 2.10(g) of the Credit Agreement requires that the Borrower notify the Administrative Agent of any prepayment of Loans under the Credit Agreement (in the case of a prepayment of Eurodollar Borrowings, three Business Days before the date of such prepayment);

WHEREAS, the Borrower has requested that compliance with (i) Section 2.10(c) of the Credit Agreement be waived to the extent necessary to permit the Borrower to use 100% of the Net Proceeds from the Equity Issuance to repay certain Existing Indebtedness of the Borrower and (ii) Section 2.10(g) of the Credit Agreement be waived to the extent such Section requires irrevocable notice three Business Days prior to a prepayment of Loans under the Credit Agreement in connection with the Debt Refinancing, and the undersigned Lenders, constituting the Required Lenders, are willing, on the terms and subject to the conditions set forth herein, to grant such a waiver;

NOW, THEREFORE, in consideration of the above premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

SECTION 1. Defined Terms. Capitalized terms used and not defined herein shall have meanings given to them in the Credit Agreement.

SECTION 2. Waiver. Effective as of the Effective Date (as defined in Section 5), the Lenders hereby waive compliance by the Borrower with the provisions of (i) Section

 

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2.10(c) of the Credit Agreement to the extent, and only to the extent, necessary to permit the Borrower to apply 100% of Net Proceeds in an aggregate amount of up to $400,000,000 from the Equity Issuance to repay Existing Indebtedness of the Borrower and (ii) Section 2.10(g) of the Credit Agreement to the extent such Section requires irrevocable notice three Business Days prior to a prepayment of Loans under the Credit Agreement in connection with the Debt Refinancing.

SECTION 3. No Amendments or Other Waivers; Confirmation. Except as expressly set forth herein, this Waiver shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances. This Waiver shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to in Section 2 herein, and only to the extent specified in Section 2 herein.

SECTION 4. Representations and Warranties. The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that as of the date hereof:

(a) no Default or Event of Default has occurred and is continuing; and

(b) the representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects on and as of the date hereof (and after giving effect to this Waiver) with the same effect as though made on and as of the date hereof (except to the extent such representations and warranties by their terms relate to an earlier date, in which case such representations and warranties were true and correct in all material respects on and as of such earlier date).

SECTION 5. Effectiveness. This Waiver shall become effective on the date (the “Effective Date”) on which the Administrative Agent shall have received counterparts hereof duly executed and delivered by the Borrower and the Required Lenders.

SECTION 6. Waiver Fee. In consideration of the agreements of the Lenders contained herein, the Borrower agrees to pay to the Administrative Agent, for the account of each Lender that delivers an executed counterpart of this Waiver by 5:00 p.m., New York City time, on February 22, 2006, a waiver fee (the “Waiver Fee”) in an amount equal to .05% of the aggregate amount of such Lender’s Commitments and Term Loans on such date, provided that such Waiver Fee shall not be payable unless and until this Waiver becomes effective as provided in Section 5 above, in which case such Waiver Fee shall become immediately payable by the Borrower.

 

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SECTION 7. Expenses. The Borrower agrees to reimburse the Administrative Agent for its reasonable and documented out-of-pocket expenses in connection with this Waiver, including the reasonable and documented fees, charges and disbursements of counsel for the Administrative Agent.

SECTION 8. Governing Law; Counterparts. (a) This Waiver and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the laws of the State of New York.

(b) This Waiver may be executed by one or more of the parties to this Waiver on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. This Waiver may be delivered by facsimile transmission electronic pdf of the relevant signature pages hereof.

SECTION 9. Headings. The headings of this Waiver are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

 

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

 

HEALTHSOUTH CORPORATION,
by   /s/ JOHN WORKMAN
  Name: John Workman
  Title: Executive Vice President and Chief
            Financial Officer

 

JPMORGAN CHASE BANK, N.A.,
individually and as Administrative Agent,
by   /s/ DAWN LEE LUM
  Name:   Dawn Lee Lum
  Title:   Vice President

 

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SIGNATURE PAGE FOR

WAIVER DATED FEBRUARY 16, 2006

TO THE HEALTHSOUTH CORPORATION

AMENDED AND RESTATED CREDIT AGREEMENT

DATED AS OF MARCH 21, 2005

 

Institution:   First Commercial Bank
by    /s/ FRED R. ELLIOT
  Name:   Fred R. Elliot
  Title:   Sr. Vice President
Institution:   Merrill Lynch Capital Corp.
by    /s/ MICHAEL E. O’BRIEN
  Name:   Michael E. O’Brien
  Title:   Vice President
Institution:   Credit Suisse, Cayman Islands
 

Branch

by    /s/ BARRY ZAMORE
  Name:   Barry Zamore
  Title:   Managing Director
by    /s/ MICHAEL T. WOTANOWSKI
  Name:   Michael T. Wotanowski
  Title:   Vice President
Institution:   Regiment Capital, LTD
by    Regiment Capital Management
 

LLC as its Investment Advisor

by    Regiment Capital Advisors, LP
 

its Manager and pursuant to

 

delegated authority

 

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by    /s/ TIMOTHY S. PETERSON
  Name:   Timothy S. Peterson
  Title:   President
Institution:   The Foothill Group, Inc.
by    /s/ MICHAEL R. BOHANNON
  Name:   Michael R. Bohannon
  Title:   SVP
Institution:   Grand Central Asset Trust,
 

BDC Series

by    /s/ MIKUS N. KINS
  Name:   Mikus N. Kins
  Title:   Attorney-in-fact
Institution:   The Hartford Mutual Funds,
 

Inc., on behalf of the Hartford

 

Floating Rate Fund by Hartford

 

Investment Management

 

Company, its sub-advisor

by    /s/ ADRAYLL ASKEW
  Name:   Adrayll Askew
  Title:   AVP
Institution:   WB Loan Funding 1, LLC
by    /s/ DIANA M. HIMES
  Name:   Diana M. Himes
  Title:   Associate
Institution:   WB Loan Funding 2, LLC
by    /s/ DIANA M. HIMES
  Name:   Diana M. Himes
  Title:   Associate

 

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Institution:   WB Loan Funding 3, LLC
by    /s/ DIANA M. HIMES
  Name:   Diana M. Himes
  Title:   Associate
Institution:   Spiret IV Loan Trust 2003-B
by   

Wilmington Trust Company

  not in its individual capacity
  but solely as trustee
by    /s/ RACHEL L. SIMPSON
  Name:   Rachel L. Simpson
  Title:   Financial Services Officer
by    /s/ DORRI E. WOLHAR
  Name:   Dorri E. Wolhar
  Title:   Financial Services Officer
Institution:   Deutsche Bank Trust Company
 

Americas

by    /s/ DIANE F. ROLFE
  Name:   Diane F. Rolfe
  Title:   Vice President
by    /s/ SCOTTYE LINDSEY
  Name:   Scottye Lindsey
  Title:   Director
Institution:   SunAmerica Life Insurance
  Company
by   

AIG Global Investment Corp.,

  Its Investment Advisor
by    /s/ W. JEFFREY BAXTER
  Name:   W. Jeffrey Baxter
  Title:   Managing Director

 

7

Institution:   SunAmerica Senior Floating
  Rate Fund
by   

AIG Global Investment Corp.,

  Its Investment Sub-Advisor
by    /s/ W. JEFFREY BAXTER
  Name:   W. Jeffrey Baxter
  Title:   Managing Director
Institution:   Galaxy CLO 1999-1, Ltd.
by   

AIG Global Investment Corp.,

  Its Collateral Manager
by    /s/ W. JEFFREY BAXTER
  Name:   W. Jeffrey Baxter
  Title:   Managing Director
Institution:   Oppenheimer Senior Floating Rate Fund
by    /s/ LISA CHAFFEE
  Name:   Lisa Chaffee
  Title:   AVP
Institution:   Wells Fargo Bank
by    /s/ PETA SWIDLER
  Name:   Peta Swidler
  Title:   Senior Vice President

 

8

Institution:

  

TRS Quogue LLC

by 

  

/s/ ALICE L. WAGNER

 

Name:

  

Alice L. Wagner

 

Title:

  

Vice President

Institution:

  

Citibank, N.A.

by 

  

/s/ DAVID E. GRABER

 

Name:

  

David E. Graber

 

Title:

  

Attorney-In-Fact

Institution:

  

Citicorp North America, Inc.

by 

  

/s/ HECTOR GUENTHER

 

Name:

  

Hector Guenther

 

Title:

  

Vice President

Institution:

  

NYLIM Institutional Floating Rate Fund, L.P.

by 

  

New York Life Investment Management LLC,

its Investment Manager

by 

  

/s/ F. BERTHELOT

 

Name:

  

F. Berthelot

 

Title:

  

Director

Institution:

  

MainStay Floating Rate Fund,

a series of Eclipse Funds, Inc.

by 

  

New York Life Investment Management LLC

by 

  

/s/ F. BERTHELOT

 

Name:

  

F. Berthelot

 

Title:

  

Director

 

9

Institution:   TRS Callisto LLC

by 

   /s/ ALICE L. WAGNER
 

Name:

  

Alice L. Wagner

 

Title:

  

Vice President

Institution:

   AG Alpha Credit Master, Ltd.

by 

  

Angelo Gordon & Co., L.P.

As Investment Manager

by 

   /s/ MICHAEL L. GORDON
 

Name:

  

Michael L. Gordon

 

Title:

  

Authorized Signatory

Institution:

   Riviera Funding LLC

by 

   /s/ M. CRISTINA HIGGINS
 

Name:

  

M. Cristina Higgins

 

Title:

  

Assistant Vice President

Institution:

  

Western Asset Floating Rate

High Income Fund LLC

by 

   /s/ TIMOTHY J. SETTEL
 

Name:

  

Timothy J. Settel

 

Title:

  

Portfolio Manager

Institution:

  

First Trust/Highland Capital

Floating Rate Income Fund

by 

   /s/ JOE DOUGHERTY
 

Name:

  

Joe Dougherty

 

Title:

  

Portfolio Manager

 

10

Institution:

   Citadel Hill 2000 Ltd.

by 

   /s/ BRIAN CERRETA
 

Name:

  

Brian Cerreta

 

Title:

  

Authorized Signatory

Institution:

  

Sankaty Advisors, LLC

as Collateral Manager for

Prospect Funding I, LLC

as Term Lender

by 

   /s/ JAMES F. KELLOGG III
 

Name:

  

James F. Kellogg III

 

Title:

  

Managing Director

Institution:

   Sankaty High Yield Partners, III, L.P.

by 

   /s/ JAMES F. KELLOGG III
 

Name:

  

James F. Kellogg III

 

Title:

  

Managing Director

Institution:

   Sankaty High Yield Partners, II, L.P.

by 

   /s/ JAMES F. KELLOGG III
 

Name:

  

James F. Kellogg III

 

Title:

  

Managing Director

Institution:

   Goldman Sachs Credit Partners

by 

   /s/ PEDRO RAMIREZ
 

Name:

  

Pedro Ramirez

 

Title:

  

Authorized Signatory

 

11

Institution:

   TRSL LLC

by 

   /s/ DEIRDRE WHORTON
 

Name:

  

Deirdre Whorton

 

Title:

  

Assistant Vice President

Institution:

   Waterville Funding LLC

by 

   /s/ M. CRISTINA HIGGINS
 

Name:

  

M. Cristina Higgins

 

Title:

  

Assistant Vice President

Institution:

   Blackrock Global Floating Rate Income Trust

by 

   /s/ TOM COLWELL
 

Name:

  

Tom Colwell

 

Title:

  

Authorized Signatory

Institution:

   Blackrock Limited Duration Income Trust

by 

   /s/ TOM COLWELL
 

Name:

  

Tom Colwell

 

Title:

  

Authorized Signatory

Institution:

   Magnetite Asset Investors LLC

by 

   /s/ TOM COLWELL
 

Name:

  

Tom Colwell

 

Title:

  

Authorized Signatory

Institution:

   Magnetite Asset Investors III LLC

by 

   /s/ TOM COLWELL
 

Name:

  

Tom Colwell

 

Title:

  

Authorized Signatory

 

12

Institution:

  

Colonial Funding LLC

by  

  

/s/ M. CRISTINA HIGGINS

 

Name: M. Cristina Higgins

Title: Assistant Vice President

Institution:

  

PPM Spyglass Funding Trust

by  

  

/s/ M. CRISTINA HIGGINS

 

Name: M. Cristina Higgins

Title: Authorized Agent

Institution:

  

PPM Monarch Bay Funding LLC

by  

  

/s/ M. CRISTINA HIGGINS

 

Name: M. Cristina Higgins

Title: Assistant Vice President

Institution:

  

Fidelity Puritan Trust: Fidelity

Puritan Fund

by  

  

/s/ JOHN H. COSTELLO

 

Name: John H. Costello

Title: Assistant Treasurer

Institution:

  

PPM Shadow Creek Funding LLC

by  

  

/s/ M. CRISTINA HIGGINS

 

Name: M. Cristina Higgins

Title: Assistant Vice President

Institution:

  

Fidelity Advisor Series II:

Fidelity Advisor Floating Rate High Income Fund

by  

  

/s/ JOHN H. COSTELLO

 

Name: John H. Costello

Title: Assistant Treasurer

 

13

Institution:

  

Fidelity Central Investment

Portfolios LLC: Fidelity

Floating Rate Central Investment Portfolio

by  

  

/s/ JOHN H. COSTELLO

 

Name: John H. Costello

Title: Assistant Treasurer

Institution:

  

Birchwood Funding LLC

by  

  

/s/ M. CRISTINA HIGGINS

 

Name: M. Cristina Higgins

Title: Assistant Vice President

Institution:

  

Raintree Trading LLC

by  

  

/s/ M. CRISTINA HIGGINS

 

Name: M. Cristina Higgins

Title: Assistant Vice President

Institution:

  

Classic Cayman B.D. Limited

by  

  

/s/ JANET WOLFF

 

Name: Janet Wolff

Title: Authorized Signatory

by  

  

/s/ DANIEL CONLON

 

Name: Daniel Conlon

Title: Authorized Signatory

Institution:

  

Pioneer Floating Rate Trust

by  

  

/s/ JOE DOUGHERTY

 

Name: Joe Dougherty

Title: Portfolio Manager

 

14

Institution:

  

Highland Floating Rate

Advantage Fund

by  

  

/s/ JOE DOUGHERTY

 

Name: Joe Dougherty

Title: Senior Vice President

Institution:

  

Highland Floating Rate LLC

by  

  

/s/ JOE DOUGHERTY

 

Name: Joe Dougherty

Title: Senior Vice President

Institution:

  

Senior Debt Portfolio

by  

  

Boston Management and

Research as Investment Advisor

by  

   /s/ MICHAEL B. BOTTHOF
 

Name: Michael B. Botthof

Title: Vice President

Institution:

  

Eaton Vance Senior Income

Trust

by  

  

Eaton Vance Management

as Investment Advisor

by  

  

/s/ MICHAEL B. BOTTHOF

 

Name: Michael B. Botthof

Title: Vice President

Institution:

  

Eaton Vance Institutional Senior

Loan Fund

by  

  

Eaton Vance Management

as Investment Advisor

 

15

by  

  

/s/ MICHAEL B. BOTTHOF

 

Name: Michael B. Botthof

Title: Vice President

Institution:

  

Eaton Vance CDO III, Ltd.

by  

  

Eaton Vance Management

as Investment Advisor

by  

  

/s/ MICHAEL B. BOTTHOF

 

Name: Michael B. Botthof

Title: Vice President

Institution:

  

Eaton Vance CDO VI, Ltd.

by  

  

Eaton Vance Management

as Investment Advisor

by  

  

/s/ MICHAEL B. BOTTHOF

 

Name: Michael B. Botthof

Title: Vice President

Institution:

  

Grayson & Co.

by  

  

Boston Management and

Research as Investment Advisor

by  

  

/s/ MICHAEL B. BOTTHOF

 

Name: Michael B. Botthof

Title: Vice President

Institution:

  

Eaton Vance VT Floating Rate

Income Fund

by  

  

Eaton Vance Management

as Investment Advisor

by  

  

/s/ MICHAEL B. BOTTHOF

 

Name: Michael B. Botthof

Title: Vice President

 

16

Institution:

   Eaton Vance Limited Duration Income Fund

by 

   Eaton Vance Management as Investment Advisor

by 

   /s/ MICHAEL B. BOTTHOF
 

Name:

  

Michael B. Botthof

 

Title:

  

Vice President

Institution:

   Tolli & Co.

by 

   Eaton Vance Management as Investment Advisor

by 

   /s/ MICHAEL B. BOTTHOF
 

Name:

  

Michael B. Botthof

 

Title:

  

Vice President

Institution:

   Eaton Vance Senior Floating Rate Trust

by 

   Eaton Vance Management as Investment Advisor

by 

   /s/ MICHAEL B. BOTTHOF
 

Name:

  

Michael B. Botthof

 

Title:

  

Vice President

Institution:

   Eaton Vance Floating Rate Income Trust

by 

   Eaton Vance Management as Investment Advisor

by 

   /s/ MICHAEL B. BOTTHOF
 

Name:

  

Michael B. Botthof

 

Title:

  

Vice President

 

17

Institution:

  

Eaton Vance Short Duration

Diversified Income Fund

by 

   Eaton Vance Management as Investment Advisor

by 

   /s/ MICHAEL B. BOTTHOF
 

Name:

  

Michael B. Botthof

 

Title:

  

Vice President

Institution:

   Chatham Asset High Yield Master Fund, Ltd.

by 

  

Chatham Asset Management, LLC,

as Investment Advisor

by 

   /s/ ANTHONY MELCHIORRE
 

Name:

  

Anthony Melchiorre

 

Title:

  

Managing Member

Institution:

   Wachovia Bank, National Association

by 

   /s/ CHRIS McCOY
 

Name:

  

Chris McCoy

 

Title:

  

Vice President

Institution:

   Goldman Sachs Credit Partners

by 

   /s/ COURTNEY MATHER
 

Name:

  

Courtney Mather

 

Title:

  

Vice President

 

18

Institution:

   Putnam Floating Rate Income Fund

by 

   /s/ BETH MAZOR
 

Name:

  

Beth Mazor

 

Title:

  

V.P.

Institution:

   Putnam Diversified Income Trust

by 

   /s/ BETH MAZOR
 

Name:

  

Beth Mazor

 

Title:

  

V.P.

Institution:

   Putnam Premier Income Trust

by 

   /s/ BETH MAZOR
 

Name:

  

Beth Mazor

 

Title:

  

V.P.

Institution:

   Special Situations Investing Group

by 

   /s/ ALBERT DOMBROWSKI
 

Name:

  

Albert Dombrowski

 

Title:

  

Authorized Signatory

Institution:

   Eaton Vance CDO VIII, Ltd.

by 

   Eaton Vance Management as Investment Advisor

by 

   /s/ MICHAEL B. BOTTHOF
 

Name:

  

Michael B. Botthof

 

Title:

  

Vice President

 

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