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<PAGE> 1
EXHIBIT 10.1
AMENDMENT NO. 1 TO
AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT (this
"Agreement") is made and entered into as of this 29th day of December, 1998 by
and between WINDMERE-DURABLE HOLDINGS, INC., a Florida corporation (the
"Borrower"), EACH OF THE SUBSIDIARIES OF THE BORROWER SIGNATORY HERETO
(collectively, the "Guarantors"), the LENDERS SIGNATORY HERETO (the "Lenders")
and NATIONSBANK, NATIONAL ASSOCIATION, a national banking association organized
and existing under the laws of the United States, in its capacity as agent for
the Lenders (the "Agent").
W I T N E S S E T H:
WHEREAS, the Borrower, the Agent and the Lenders have entered into an
Amended and Restated Credit Agreement dated as of August 7, 1998 (as amended
hereby and as from time to time further amended, supplemented or replaced, the
"Credit Agreement");
WHEREAS, the Borrower has requested and the Agent and the Lenders have
agreed, subject to the terms and conditions of this Agreement, to amend certain
financial covenants contained in the Credit Agreement;
NOW, THEREFORE, in consideration of the mutual covenants, promises and
conditions herein set forth, it is hereby agreed as follows:
1. DEFINITIONS. The term "Credit Agreement" as used herein and in the
Credit Agreement and the other Loan Documents shall mean the Credit Agreement as
hereby amended and as from time to time further amended or modified. Unless the
context otherwise requires, all capitalized terms used herein without definition
shall have the respective meanings provided therefor in the Credit Agreement.
2. AMENDMENT TO CREDIT AGREEMENT. Subject to the terms and conditions
set forth herein, the Credit Agreement is hereby amended as follows:
(a) The definition of "Applicable Margin" in Section 1.2 of
the Credit Agreement is hereby deleted and the following new definition
is inserted in replacement thereof:
"Applicable Margin" means that percent per annum set forth
below, which shall be based upon the Consolidated Leverage Ratio for
the period of four consecutive fiscal quarters most recently ended as
specified below:
<PAGE> 2
<TABLE>
<CAPTION>
Applicable
Margin for Applicable Applicable
Applicable Margin Eurodollar Margin for Base Margin for Base
for Eurodollar Rate Rate Loans Rate Loans that Rate Loans that
Loans that are that are are Revolving are Segments of
Revolving Loans or Segments of Loans or Term Loan B
Consolidated Segments of Term Term Loan B Segments of Term and Term
Tier Leverage Ratio Loan A and Term Loan C Loan A Loan C
---------- ------------------ --------------------- ---------------- ------------------ ------------------
<S> <C> <C> <C> <C> <C>
I Equal to or less 1.75% 2.75% .75% 1.75%
than 4.00 to 1.00
---------- ------------------ --------------------- ---------------- ------------------ ------------------
II Greater than 2.00% 2.75% 1.00% 1.75%
4.00 to 1.00 and
less than or
equal to 4.50 to
1.00
---------- ------------------ --------------------- ---------------- ------------------ ------------------
III Greater than 2.25% 3.00% 1.25% 2.00%
4.50 to 1.00 and
less than or
equal to 5.00 to
1.00
---------- ------------------ --------------------- ---------------- ------------------ ------------------
IV Greater than 2.50% 3.00% 1.50% 2.00%
5.00 to 1.00 and
less than or
equal to 6.00 to
1.00
---------- ------------------ --------------------- ---------------- ------------------ ------------------
V Greater than 2.75% 3.375 1.50% 2.00%
6.00 to 1.00
---------- ------------------ --------------------- ---------------- ------------------ ------------------
</TABLE>
The Applicable Margin shall be established at the end of each fiscal
quarter of the Borrower (each, a "Determination Date"). Any change in
the Applicable Margin following each Determination Date shall be
determined based upon the computations set forth in the certificate
furnished to the Agent pursuant to SECTION 9.1(A) and (B) hereof,
subject to review and confirmation of such computations by the Agent,
and shall be effective (the "Effective Date") commencing on the first
Business Day next following the date such certificate is received (or,
if earlier, the date such certificate was required to be delivered)
until the first Business Day following the date on which a new
certificate is delivered or is required to be delivered, whichever
shall first occur; PROVIDED HOWEVER, if the Borrower shall fail to
deliver any such certificate within the time period required by SECTION
9.1 hereof, then the Applicable Margin shall be Tier V until the
appropriate certificate is so delivered; and PROVIDED FURTHER, that
from December 30, 1998 through the Effective Date first occurring after
December 31, 1999, the Applicable Margin shall be as set forth in Tier
V.
(b) Section 3.1 of the Credit Agreement is hereby amended by
adding a new clause (d) at the end thereof which shall read as follows:
2
<PAGE> 3
(d) LIMITATION ON REVOLVING CREDIT OUTSTANDINGS. In
addition to the limitation on Revolving Credit Outstandings
set forth elsewhere in this Agreement, the Borrower agrees
that from the Closing Date through December 31, 1999 it shall
not permit the amount of Revolving Credit Outstandings on any
date to exceed $110,000,000; provided that this limitation on
Revolving Credit Outstandings shall remain in place on and
after December 31, 1999 if and for so long as any Event of
Default has occurred and is continuing. If at any time there
shall be Revolving Credit Outstandings in excess of
$110,000,000, the Borrower shall immediately make such
payments and prepayments as shall be necessary to comply with
the restriction contained in this section.
(c) Section 10.22(b) of the Credit Agreement is hereby deleted
and the following new subsection (b) is inserted in replacement
thereof:
(b) CONSOLIDATED FIXED CHARGE COVERAGE RATIO. Permit
Consolidated Fixed Charge Coverage Ratio to be less than the
ratio indicated below at any time during the period indicated:
Closing Date through
March 31, 1999 .80 to 1.00
April 1, 1999 through
June 30, 1999 .60 to 1.00
July 1, 1999 through
September 30, 1999 .75 to 1.00
October 1, 1999 through
September 30, 2000 1.10 to 1.00
October 1, 2000
and thereafter 1.50 to 1.00
(d) Section 10.22(c) of the Credit Agreement is hereby deleted
and the following new subsection (c) is inserted in replacement
thereof:
(c) CONSOLIDATED INTEREST COVERAGE RATIO. Permit
Consolidated Interest Coverage Ratio to be less than the ratio
indicated below at any time during the period indicated:
3
<PAGE> 4
Closing Date through
March 31, 1999 1.80 to 1.00
April 1, 1999 through
June 30, 1999 1.60 to 1.00
July 1, 1999 through
September 30, 1999 1.70 to 1.00
October 1, 1999 through
September 30, 2000 2.25 to 1.00
October 1, 2000
and thereafter 3.00 to 1.00
(e) Section 10.22(d) of the Credit Agreement is hereby deleted
and the following new subsection (d) is inserted in replacement
thereof:
(d) CONSOLIDATED LEVERAGE RATIO. Permit Consolidated
Leverage Ratio to be greater than the ratio indicated below at
any time during the period indicated:
April 1, 1999 through
September 30, 1999 6.25 to 1.00
October 1, 1999 through
March 31, 2000 5.00 to 1.00
April 1, 2000 through
September 30, 2000 4.50 to 1.00
October 1, 2000 through
June 30, 2001 3.00 to 1.00
July 1, 2001 through
September 30, 2001 3.50 to 1.00
October 1, 2001
and thereafter 3.00 to 1.00
4
<PAGE> 5
(f) Section 10.22(e) of the Credit Agreement is hereby deleted
and the following new subsection (e) is inserted in replacement
thereof:
(e) CONSOLIDATED EBITDA. Permit Consolidated EBITDA
to be less than the amount indicated below at the date
indicated:
Fourth fiscal quarter end 1998 $36,000,000
First fiscal quarter end 1999 $39,000,000
3. AMENDMENT FEE. The Borrower agrees to pay to the Agent for the
benefit of the Lenders signatory hereto on the effective date of this Agreement
an amendment fee (the "Amendment Fee") equal to .20% of the aggregate
Commitments of the Lenders signatory hereto, which fee shall be earned as of
such date and shall be allocated among the Lenders based upon their respective
Commitment.
4. BORROWER'S REPRESENTATIONS AND WARRANTIES. The Borrower hereby
represents, warrants and certifies that:
(a) The representations and warranties made by it in Article
VIII of the Credit Agreement (other than Section 8.6(b) to the extent
certain material adverse changes in the condition of the Borrower and
its Subsidiaries have been disclosed to the Agent and the Lenders) are
true on and as of the date hereof before and after giving effect to
this Agreement except that the financial statements referred to in
Section 8.6(c) shall be those most recently furnished to each Lender
pursuant to Section 9.1(a) and (b) of the Credit Agreement;
(b) The Borrower and each Guarantor has the power and
authority to execute and perform this Agreement and has taken all
action required for the lawful execution, delivery and performance
thereof.
(c) There has been no material adverse change in the
condition, financial or otherwise, of the Borrower and its Subsidiaries
since the date of the most recent financial reports of the Borrower
delivered under Section 9.1 of the Credit Agreement;
(d) No event has occurred and no condition exists which, upon
the consummation of the transaction contemplated hereby, constituted a
Default or an Event of Default on the part of the Borrower under the
Credit Agreement or the Notes either immediately or with the lapse of
time or the giving of notice, or both.
5. ENTIRE AGREEMENT. This Agreement sets forth the entire understanding
and agreement of the parties hereto in relation to the subject matter hereof and
supersedes any prior negotiations and agreements among the parties relative to
such subject matter. None of the terms or conditions of this Agreement may be
changed, modified, waived or canceled orally or otherwise, except by writing,
signed by all the parties hereto, specifying such change, modification, waiver
or cancellation of such terms or conditions, or of any proceeding or succeeding
breach thereof.
5
<PAGE> 6
6. FULL FORCE AND EFFECT OF AGREEMENT. Except as hereby specifically
amended, modified or supplemented, the Credit Agreement and all of the other
Loan Documents are hereby confirmed and ratified in all respects and shall
remain in full force and effect according to their respective terms.
7. COUNTERPARTS. This Agreement may be executed in any number of
counterparts and all the counterparts taken together shall be deemed to
constitute one and the same instrument.
8. ENFORCEABILITY. Should any one or more of the provisions of this
Agreement be determined to be illegal or unenforceable as to one or more of the
parties hereto, all other provisions nevertheless shall remain effective and
binding on the parties hereto.
6
<PAGE> 7
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their duly authorized officers, all as of the day and year
first above written.
BORROWER:
WINDMERE-DURABLE HOLDINGS, INC.
By: /s/ Cindy Solovci
-------------------------------
Name: Cindy Solovci
-------------------------------
Title: Treasurer
------------------------------
AGENT:
NATIONSBANK, NATIONAL
ASSOCIATION, as Agent for the Lenders
By: /s/ Andrew M. Airheart
-------------------------------
Name: Andrew M. Airheart
-------------------------------
Title: Senior Vice President
------------------------------
LENDERS:
NATIONSBANK, NATIONAL
ASSOCIATION
By: /s/ Andrew M. Airheart
-------------------------------
Name: Andrew M. Airheart
-------------------------------
Title: Senior Vice President
------------------------------
ABN AMRO BANK N.V.
By: /s/ Deborah Day Orozco
-------------------------------
Name: Deborah Day Orozco
-------------------------------
Title: Vice President
------------------------------
By: /s/ Robert Lozano
-------------------------------
Name: Robert Lozano
-------------------------------
Title: Vice President
------------------------------
7
<PAGE> 8
BANKATLANTIC
By: /s/ Ana C. Bolduc
-------------------------------
Name: Ana C. Bolduc
-------------------------------
Title: Senior Vice President
------------------------------
BANK LEUMI LE-ISRAEL
By: /s/ Joseph F. Realini
-------------------------------
Name: Joseph F. Realini
-------------------------------
Title: Vice President
------------------------------
SCOTIABANC INC.
By: /s/ Frank F. Sandler
-------------------------------
Name: Frank S. Sandler
-------------------------------
Title: Relationship Manager
------------------------------
PARIBAS
By:
-------------------------------
Name:
-------------------------------
Title:
------------------------------
By:
-------------------------------
Name:
-------------------------------
Title:
------------------------------
BARCLAYS BANK PLC
By: /s/ Gregory Roll
-------------------------------
Name: Gregory Roll
-------------------------------
Title: Vice President
------------------------------
8
<PAGE> 9
BHF-BANK ATKIENGESELLSCHAFT
By:
-------------------------------
Name:
-------------------------------
Title:
------------------------------
CREDITANSTALT CORPORATE FINANCE, INC.
By:
-------------------------------
Name:
-------------------------------
Title:
------------------------------
By:
-------------------------------
Name:
-------------------------------
Title:
------------------------------
ERSTE BANK NEW YORK
By: /s/ Arcinee Hovanessian
-------------------------------
Name: Arcinee Hovanessian
-------------------------------
Title: Vice President
------------------------------
By: /s/ John S. Runnion
-------------------------------
Name: John S. Runnion
-------------------------------
Title: First Vice President
------------------------------
FLEET BANK, N.A.
By: /s/ Thomas J. Levy
-------------------------------
Name: Thomas J. Levy
-------------------------------
Title: Vice President
------------------------------
IMPERIAL BANK, A CALIFORNIA BANKING
CORPORATION
By: /s/ Jamie Hamey
-------------------------------
Name: Jamie Hamey
-------------------------------
Title: Vice President
------------------------------
9
<PAGE> 10
THE LONG-TERM CREDIT BANK OF JAPAN,
LTD.
By: /s/ Akihiko Haruyama
-------------------------------
Name: Akihiko Haruyama
-------------------------------
Title: Head of Southeast Region
------------------------------
THE MITSUBISHI TRUST AND BANKING
CORPORATION
By: /s/ Toshihiro Hayashi
-------------------------------
Name: Toshihiro Hayashi
-------------------------------
Title: Senior Vice President
------------------------------
NATIONAL BANK OF CANADA
By: /s/ Michael Bloomenfeld
-------------------------------
Name: Michael Bloomenfeld
-------------------------------
Title: Vice President & Manager
------------------------------
SANWA BUSINESS CREDIT CORPORATION
By: /s/ Stanley Kaminski
-------------------------------
Name: Stanley Kaminski
-------------------------------
Title: Vice President
------------------------------
SUMMIT BANK
By:
-------------------------------
Name:
-------------------------------
Title:
------------------------------
10
<PAGE> 11
USTRUST
By: /s/ Thomas F. Macina
-------------------------------
Name: Thomas F. Macina
-------------------------------
Title: Vice President
------------------------------
ALLIANCE INVESTMENT OPPORTUNITIES
FUND, L.L.C.
By: ALLIANCE INVESTMENT OPPORTUNITIES
MANAGEMENT, L.L.C., as Managing
Member
By: ALLIANCE CAPITAL MANAGEMENT
L.P., as Managing Member
By: ALLIANCE CAPITAL MANAGEMENT
CORPORATION, as General
Partner
By: /s/ Sheryl Rothman
-------------------------------
Name: Sheryl A. Rothman
-------------------------------
Title: Vice President
------------------------------
ALLIANCE CAPITAL MANAGEMENT L.P., as
Manager on behalf of ALLIANCE CAPITAL
FUNDING, L.L.C.
By: ALLIANCE CAPITAL MANAGEMENT
CORPORATION, General Partner of
Alliance Capital Management L.P.
By: /s/ Sheryl Rothman
-------------------------------
Name: Sheryl A. Rothman
-------------------------------
Title: Vice President
------------------------------
11
<PAGE> 12
BALANCED HIGH-YIELD FUND I LTD
By: BHF-BANK AKTIENGESELLSCHAFT,
acting through its New York
Branch, as attorney-in-fact
By: /s/ Steven Alexander
-------------------------------
Name: Steven Alexander
-------------------------------
Title: Assistant Treasurer
------------------------------
By: /s/ Peter Leibman
-------------------------------
Name: Peter Leibman
-------------------------------
Title: Assistant Treasurer
------------------------------
BHF-BANK AKTIENGESELLSCHAFT
By: /s/ Steven Alexander
-------------------------------
Name: Steven Alexander
-------------------------------
Title: Assistant Treasurer
------------------------------
By: /s/ Peter Leibman
-------------------------------
Name: Peter Leibman
-------------------------------
Title: Assistant Treasurer
------------------------------
INDOSUEZ CAPITAL FUNDING III, LIMITED
By: INDOSUEZ CAPITAL as Portfolio
Advisor
By: /s/ Francoise Berthelot
-------------------------------
Name: Francoise Berthelot
-------------------------------
Title: Vice President
------------------------------
BANK AUSTRIA CREDITANSTALT CORPORATE
FINANCE, INC., f.k.a. Creditanstalt
Corporate Finance, Inc.
By: /s/ Scott Kray
-------------------------------
Name: Scott Kray
-------------------------------
Title: Vice President
------------------------------
By: /s/ Gary Andresen
-------------------------------
Name: Gary Andresen
-------------------------------
Title: Associate
------------------------------
12
<PAGE> 13
NATIONSBANC MONTGOMERY SECURITIES LLC
By:
-------------------------------
Name:
-------------------------------
Title:
------------------------------
ARES LEVERAGED INVESTMENT FUND, L.P.
By: ARES Management, L.P.
By: /s/ Michelle M. Hsu
-------------------------------
Name: Michelle Hsu
Title: Vice President
ARES LEVERAGED INVESTMENT FUND II,
L.P.
By: ARES Management II, L.P.
By: /s/ Michelle M. Hsu
-------------------------------
Name: Michelle Hsu
Title: Vice President
13
<PAGE> 14
THE UNDERSIGNED GUARANTORS HEREBY ACKNOWLEDGE AND CONSENT TO THIS AMENDMENT OF
THE CREDIT AGREEMENT AND REAFFIRM THEIR OBLIGATIONS UNDER THE FACILITY GUARANTY
THIS ___TH DAY OF DECEMBER, 1998:
WINDMERE CORPORATION
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary/Treasurer
------------------------------
WINDMERE HOLDINGS CORPORATION
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary
------------------------------
WINDMERE HOLDINGS CORPORATION II
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary
------------------------------
WINDMERE FAN PRODUCTS, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Treasurer
------------------------------
JERDON PRODUCTS, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary
------------------------------
14
<PAGE> 15
CONSUMER PRODUCTS AMERICAS, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary
------------------------------
EDI MASTERS, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Assistant Vice President
------------------------------
WINDMERE INNOVATIVE PET PRODUCTS,
INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Treasurer
------------------------------
BAY BOOKS & TAPES, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary
------------------------------
FORTUNE PRODUCTS, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Treasurer
------------------------------
HOUSEHOLD PRODUCTS, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary and Treasurer
------------------------------
15
<PAGE> 16
HP DELAWARE, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Treasurer
------------------------------
HP AMERICAS, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Treasurer
------------------------------
HPG LLC
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Treasurer
------------------------------
HP INTELLECTUAL CORP
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary and Treasurer
------------------------------
WD DELAWARE, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary
------------------------------
WD DELAWARE II, INC.
By: /s/ Cindy Solovei
-------------------------------
Name: Cindy Solovei
-------------------------------
Title: Secretary
------------------------------
16
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