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MIAMI COMPUTER SUPPLY CORPORATION
AS THE BORROWER
AND
THE FINANCIAL INSTITUTIONS NAMED HEREIN
AS LENDERS
NATIONAL CITY BANK
AS A LENDER AND AS DOCUMENTATION AGENT
PNC BANK, NATIONAL ASSOCIATION
AS A LENDER, THE SWING LINE LENDER
A LETTER OF CREDIT ISSUER
AND AS ADMINISTRATIVE AGENT
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AMENDMENT NO. 7
DATED AS OF
FEBRUARY 4, 2000
TO
AMENDED AND RESTATED CREDIT AGREEMENT
DATED AS OF
DECEMBER 1, 1998
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AMENDMENT NO. 7
TO
AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDMENT NO. 7 TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as
of February 4, 2000 ("THIS AMENDMENT"), among:
(i) MIAMI COMPUTER SUPPLY CORPORATION, an Ohio corporation
(herein, together with its successors and assigns, the "BORROWER");
(ii) the financial institutions listed on the signature pages
hereof (the "LENDERS");
(iii) NATIONAL CITY BANK, a national banking association, as a
Lender and as Documentation Agent; and
(iv) PNC BANK, NATIONAL ASSOCIATION, a national banking
association, as a Lender, the Swing Line Lender, a Letter of Credit
Issuer and as Administrative Agent (the "ADMINISTRATIVE AGENT") for the
Lenders under the Credit Agreement:
PRELIMINARY STATEMENTS:
(1) The Borrower, the Lenders named therein, and the Administrative
Agent entered into the Amended and Restated Credit Agreement, dated as of
December 1, 1998, as amended by Amendment No. 1 thereto, dated as of March 31,
1999, Amendment No. 2 thereto, dated as of April 19, 1999, Amendment No. 3
thereto, dated as of August 13, 1999, Amendment No. 4 thereto, dated as of
August 31, 1999, Amendment No. 5 thereto, dated as of December 20, 1999, and
Amendment No. 6 thereto, dated as of January 10, 2000 (as so amended, the
"CREDIT AGREEMENT"; with the terms defined therein, or the definitions of which
are incorporated therein, being used herein as so defined).
(2) The parties hereto desire to amend certain of the provisions of the
Credit Agreement, all as more fully set forth below.
NOW, THEREFORE, the parties hereby agree as follows:
1. AMENDMENTS, ETC.
1.1. TEMPORARY INCREASE IN TOTAL GENERAL REVOLVING COMMITMENT, ETC.
(a) Effective only during the period from February 4, 2000 through April 30,
2000, the Total General Revolving Commitment shall be increased from
$160,000,000 to $175,000,000, and the General Revolving Commitments of the
Lenders set forth in Annex I to the Credit Agreement shall be amended to
reflect the following:
<TABLE>
<CAPTION>
Lender General Revolving Commitment
----------------------------------- -------------------------------
<S> <C>
PNC Bank, National Association $27,343,750
National City Bank $27,343,750
KeyCorporate Capital Inc. $27,343,750
Bank One, Indiana, N. A. $27,343,750
Firstar Bank, N. A. $27,343,750
The Huntington National Bank $27,343,750
The Provident Bank $10,937,500
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TOTAL $175,000,000
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</TABLE>
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(b) For the avoidance of doubt, it is noted that the Borrower has the
right to make permant reductions in the amount of the Total General Revolving
Commitment in accordance with the provisions of section 4.2(c) of the Credit
Agreement. If as of 5:00 P. M. (local time at the Notice Office of the
Administrative Agent) on April 30, 2000, the Total General Revolving Commitment
shall not previously have been permanently reduced to $160,000,000 or less by a
voluntary and permanent reduction made in accordance with the provisions of
section 4.2(c) of the Credit Agreement, THEN effective as of such time the Total
General Revolving Commitment shall be automatically and permanently reduced from
$175,000,000 to $160,000,000, and Annex I to the Credit Agreement shall be
amended to reflect the reduced General Revolving Commitments of the Lenders as
follows:
<TABLE>
<CAPTION>
Lender General Revolving Commitment
----------------------------------- ----------------------------------
<S> <C>
PNC Bank, National Association $25,000,000
National City Bank $25,000,000
KeyCorporate Capital Inc. $25,000,000
Bank One, Indiana, N. A. $25,000,000
Firstar Bank, N. A. $25,000,000
The Huntington National Bank $25,000,000
The Provident Bank $10,000,000
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TOTAL $160,000,000
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</TABLE>
(c) To the extent that General Revolving Loans outstanding under the
Credit Agreement reflect a usage of the temporary increase in the Total General
Revolving Commitment from $160,000,000 to $175,000,000 effected by this
Amendment (General Revolving Loans reflecting such usage are referred to herein
as "BRIDGE LOANS"), THEN notwithstanding anything to the contrary contained in
the Credit Agreement, (i) the Applicable Prime Rate Margin for Bridge Loans
which are Prime Rate Loans shall be 200 basis points, and (ii) the Applicable
Eurodollar Margin for Bridge Loans which are Eurodollar Loans shall be 400 basis
points.
(d) The only Interest Period which shall be available for a Bridge Loan
which is a Eurodollar Loan is an Interest Period of one month, subject to
Continuation for additional Interest Periods as provided in section 2.8 of the
Credit Agreement. No Interest Period for a Bridge Loan which is a Eurodollar
Loan may be selected which would end after April 30, 2000.
1.2. DEFINITIONS. The definition of the term "CONSOLIDATED TOTAL
DEBT" contained in section 1.1 of the Credit Agreement is amended to read in
its entirety as follows:
"CONSOLIDATED TOTAL DEBT" shall mean the sum (without
duplication) of all Indebtedness of the Borrower and of each of its
Subsidiaries, all as determined on a consolidated basis.
1.3. CONSENT TO ACQUISITIONS; LIMIT ON ACQUISITIONS. As
contemplated by the definition of the term "Permitted Acquisition" contained
in section 1.1 of the Credit Agreement, the Lenders hereby consent to the
Acquisitions by the Borrower of "Duocomm" and "Fairview", on the terms
generally described in the descriptive materials previously furnished to the
Lenders by the Borrower. Except as contemplated by the preceding sentence,
the Borrower will not directly or indirectly make any other Acquisition
during the period when Bridge Loans are available under the Credit Agreement.
1.4. LEVERAGE RATIO. Section 9.7 of the Credit Agreement is
amended, with retroactive effect to December 31, 1999, to read in its
entirety as follows:
9.7. CONSOLIDATED TOTAL DEBT/CONSOLIDATED EBITDA RATIO. The
Borrower will not at any time permit the ratio of (i) the amount of
Consolidated Total Debt at such time to (ii) Consolidated EBITDA for the
Testing Period most recently ended, to exceed (x) 4.30 to 1.00 in the
case of any Testing Period ended on or prior to June 29, 2000, (y) 4.00
to 1.00, in the case of the Testing Periods ended June 30, 2000 and
September 30, 2000, or (z) 3.75 to 1.00, in the case of any Testing
Period ended thereafter.
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1.5. FIXED CHARGE COVERAGE RATIO. Section 9.8 of the Credit
Agreement is amended, with retroactive effect to December 31, 1999, to read
in its entirety as follows:
9.8. FIXED CHARGE COVERAGE RATIO. The Borrower will not permit
its Fixed Charge Coverage Ratio for any Testing Period ending on or
prior to June 30, 2000 to be less than 1.20 to 1.00, or for any
subsequent Testing Period to be less than 1.40 to 1.00.
1.6. AMENDMENT FEE. As consideration for the changes in the Credit
Agreement effected by sections 1.2 through 1.5 of this Amendment, the Borrower
will pay to the Administrative Agent, for PRO RATA distribution among the
Lenders in accordance with the amounts by which their respective General
Revolving Commitments are temporarily increased as provided in section 1.1(a)
above, (i) an amendment fee at the rate of 50 basis points, calculated on the
$15,000,000 aggregate amount of the temporary increase, such amendment fee being
payable in immediately available funds on the date this Amendment becomes
effective as provided in section 3 hereof, and (ii) if as of April 1, 2000, the
Total General Revolving Commitment shall not previously have been permanently
reduced to $160,000,000 or less by a voluntary and permanent reduction made in
accordance with the provisions of section 4.2(c) of the Credit Agreement, an
additional amendment fee at the rate of 50 basis points, calculated on the
$15,000,000 aggregate amount of the temporary increase provided in section
1.1(a) above, such additional amendment fee being payable in immediately
available funds on April 1, 2000.
2. REPRESENTATIONS AND WARRANTIES.
The Borrower represents and warrants to the Lenders and the
Administrative Agent as follows:
2.1. AUTHORIZATION, VALIDITY AND BINDING EFFECT. This Amendment has
been duly authorized by all necessary corporate action on the part of the
Borrower, has been duly executed and delivered by a duly authorized officer
or officers of the Borrower, and constitutes the valid and binding agreement
of the Borrower, enforceable against the Borrower in accordance with its
terms.
2.2. REPRESENTATIONS AND WARRANTIES TRUE AND CORRECT. The
representations and warranties of the Borrower contained in the Credit
Agreement, as amended hereby, are true and correct on and as of the date hereof
as though made on and as of the date hereof, except to the extent that such
representations and warranties expressly relate to a specified date, in which
case such representations and warranties are hereby reaffirmed as true and
correct when made.
2.3. NO EVENT OF DEFAULT, ETC. No condition or event has occurred or
exists which constitutes or which, after notice or lapse of time or both, would
constitute an Event of Default.
2.4. COMPLIANCE. The Borrower is in full compliance with all covenants
and agreements contained in the Credit Agreement, as amended hereby.
2.5. RECENT FINANCIAL STATEMENTS. The Borrower has furnished to the
Lenders and the Administrative Agent complete and correct copies of the
unaudited condensed consolidated balance sheet of the Borrower and its
consolidated subsidiaries as of September 30, 1999, and the related unaudited
condensed consolidated statements of income and of cash flows of the Borrower
and its consolidated subsidiaries for the fiscal period then ended, as contained
in the Form 10-Q Quarterly Report of the Borrower, as amended, filed with the
SEC. All such financial statements have been prepared in accordance with GAAP,
consistently applied (except as stated therein), and fairly present the
financial position of the Borrower and its consolidated subsidiaries as of the
date indicated and the consolidated results of their operations and cash flows
for the period indicated, subject to normal audit adjustments, none of which
will involve a Material Adverse Effect.
2.6. RECENT MERGERS OF SUBSIDIARY GUARANTORS. Britco, Inc., which was
one of the Subsidiary Guarantors, merged into the Borrower on December 6, 1999.
TBS Printware Corporation and Minnesota Western, Inc., both of which were
Subsidiary Guarantors, merged into the Borrower on January 3, 2000.
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3. EFFECTIVENESS.
This Amendment shall become effective on a date (the "EFFECTIVE DATE"),
on or before February 4, 2000, if the following conditions are satisfied on or
before the Effective Date:
(a) this Amendment shall have been executed by the Borrower and
the Administrative Agent, and counterparts hereof as so executed shall
have been delivered to the Administrative Agent;
(b) the Acknowledgment and Consent appended hereto shall have
been executed by the Credit Parties named therein, and counterparts
hereof as so executed shall have been delivered to the Administrative
Agent;
(c) the Administrative Agent shall have been notified by all of
the Lenders that such Lenders have executed this Amendment (which
notification may be by facsimile or other written confirmation of such
execution);
(d) the Borrower shall have duly executed and delivered to the
Administrative Agent, for the account of the Lenders, additional General
Revolving Notes made payable to the order of the respective Lenders in
the amount of the temporary increase in their respective General
Revolving Commitments provided for in this Amendment, and otherwise
conforming to the requirements of the Credit Agreement;
(e) the Borrower shall have delivered to the Administrative Agent
a certificate of its Secretary or an Assistant Secretary, dated as of a
recent date, certifying the due adoption by the Board of Directors of a
resolution or resolutions approving the increase in the Total General
Revolving Commitment under the Credit Agreement to $175,000,000, and
certifying that such resolution(s) remains in full force and effect, and
such certificate and resolution(s) shall be satisfactory in form and
substance to the Administrative Agent; and
(f) the Borrower shall have paid to the Administrative Agent, for
the account of the Lenders, such amendment fees as are payable at such
time as provided in section 1.6 of this Amendment (the Administrative
Agent hereby agreeing to promptly re-transmit pro rata portions of the
amendment fees to the respective Lenders).
Subject to satisfaction of the foregoing conditions, the Administrative Agent
shall notify the Borrower and each Lender in writing of the effectiveness
hereof.
4. RATIFICATIONS.
The terms and provisions set forth in this Amendment shall modify and
supersede all inconsistent terms and provisions set forth in the Credit
Agreement, and except as expressly modified and superseded by this Amendment,
the terms and provisions of the Credit Agreement are ratified and confirmed and
shall continue in full force and effect.
5. MISCELLANEOUS.
5.1. SUCCESSORS AND ASSIGNS. This Amendment shall be binding upon and
inure to the benefit of the Borrower, each Lender and the Administrative Agent
and their respective permitted successors and assigns.
5.2. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made in this Amendment shall survive the
execution and delivery of this Amendment, and no investigation by the
Administrative Agent or any Lender or any subsequent Loan or issuance of a
Letter of Credit shall affect the representations and warranties or the right
of the Administrative Agent or any Lender to rely upon them.
5.3. REFERENCE TO CREDIT AGREEMENT. The Credit Agreement and any
and all other agreements, instruments or documentation now or hereafter
executed and delivered pursuant to the terms of the Credit Agreement
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as amended hereby, are hereby amended so that any reference therein to the
Credit Agreement shall mean a reference to the Credit Agreement as amended
hereby.
5.4. EXPENSES. As provided in the Credit Agreement, but without
limiting any terms or provisions thereof, the Borrower agrees to pay on
demand all costs and expenses incurred by the Administrative Agent in
connection with the preparation, negotiation, and execution of this
Amendment, including without limitation the costs and fees of the
Administrative Agent's special legal counsel, regardless of whether this
Amendment becomes effective in accordance with the terms hereof, and all
costs and expenses incurred by the Administrative Agent or any Lender in
connection with the enforcement or preservation of any rights under the
Credit Agreement, as amended hereby.
5.5. SEVERABILITY. Any term or provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the term or provision so held to be invalid or unenforceable.
5.6. APPLICABLE LAW. This Amendment shall be governed by and construed
in accordance with the laws of the State of Ohio.
5.7. HEADINGS. The headings, captions and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.
5.8. ENTIRE AGREEMENT. This Amendment is specifically limited to the
matters expressly set forth herein. This Amendment and all other instruments,
agreements and documentation executed and delivered in connection with this
Amendment embody the final, entire agreement among the parties hereto with
respect to the subject matter hereof and supersede any and all prior
commitments, agreements, representations and understandings, whether written or
oral, relating to the matters covered by this Amendment, and may not be
contradicted or varied by evidence of prior, contemporaneous or subsequent oral
agreements or discussions of the parties hereto. There are no oral agreements
among the parties hereto relating to the subject matter hereof or any other
subject matter relating to the Credit Agreement.
5.9. COUNTERPARTS. This Amendment may be executed by the parties
hereto separately in one or more counterparts, each of which when so executed
shall be deemed to be an original, but all of which when taken together shall
constitute one and the same agreement.
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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered
as of the date first above written.
<TABLE>
<S> <C>
MIAMI COMPUTER SUPPLY CORPORATION PNC BANK, NATIONAL ASSOCIATION,
INDIVIDUALLY AS A LENDER, A LETTER OF CREDIT
ISSUER, THE SWING LINE LENDER AND AS
ADMINISTRATIVE AGENT
BY:_________________________________
TITLE:
BY:_________________________________
VICE PRESIDENT
NATIONAL CITY BANK, FIRSTAR BANK, N. A.
INDIVIDUALLY AS A LENDER AND
AS DOCUMENTATION AGENT
BY:_________________________________
BY:_________________________________ TITLE:
TITLE:
KEY CORPORATE CAPITAL INC. THE HUNTINGTON NATIONAL BANK
BY:_________________________________ BY:_________________________________
TITLE: TITLE:
BANK ONE, INDIANA, N. A. THE PROVIDENT BANK
BY:_________________________________ BY:_________________________________
TITLE: TITLE:
</TABLE>
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ACKNOWLEDGMENT AND CONSENT
For the avoidance of doubt, and without limitation of the intent and
effect of sections 6 and 10 of the Amended and Restated Subsidiary Guaranty (as
such term is defined in the Credit Agreement referred to in the Amendment No. 7
to Amended and Restated Credit Agreement (the "AMENDMENT"), to which this
Acknowledgment and Consent is appended), each of the undersigned hereby
unconditionally and irrevocably (i) acknowledges receipt of a copy of the Credit
Agreement and the Amendment, and (ii) consents to all of the terms and
provisions of the Credit Agreement as amended by the Amendment.
Capitalized terms which are used herein without definition shall have
the respective meanings ascribed thereto in the Credit Agreement referred to
herein. This Acknowledgment and Consent is for the benefit of the Lenders and
the Administrative Agent, any other person who is a third party beneficiary of
the Subsidiary Guaranty, and their respective successors and assigns. No term or
provision of this Acknowledgment and Consent may be modified or otherwise
changed without the prior written consent of the Administrative Agent, given as
provided in the Credit Agreement. This Acknowledgment and Consent shall be
binding upon the successors and assigns of each of the undersigned. This
Acknowledgment and Consent may be executed by any of the undersigned in separate
counterparts, each of which shall be an original and all of which together shall
constitute one and the same instrument.
IN WITNESS WHEREOF, each of the undersigned has duly executed and
delivered this Acknowledgment and Consent as of the date of the Amendment
referred to herein.
Diversified Data Products, Inc. Electronic Image Systems, Inc.
Computer Showcase, Inc. Consolidated Media Systems, Inc.
By:_____________________________ By:_____________________________
Michael E. Peppel, an officer Ira Stanley, an officer
