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EXHIBIT 10.24
EXECUTION VERSION
FOURTH AMENDMENT TO CREDIT AGREEMENT
THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as of September 30, 1999, is entered into by and among:
(1) ETEC SYSTEMS, INC., a Nevada corporation ("Borrower");
(2) Each of the financial institutions which are listed in Schedule I of the Credit Agreement referred to in Recital A below (collectively, the "Lenders") that executes this Amendment; and
(3) ABN AMRO BANK N.V., a Netherlands public company acting through its San Francisco Representative Office, as agent for the Lenders (in such capacity, "Agent").
RECITALS
A. Borrower, the Lenders and Agent are parties to a Credit Agreement dated as of May 24, 1996, as amended by that certain First Amendment to Credit Agreement dated as of April 23, 1997, as further amended by that certain Second Amendment to Credit Agreement dated as of April 29, 1998 and as further amended by that certain Third Amendment to Credit Agreement dated as of July 20, 1998 (as amended, the "Credit Agreement").
B. Borrower has requested Agent and the Lenders to amend the Credit Agreement in certain respects.
C. The Lenders executing this Amendment and Agent are willing so to amend the Credit Agreement upon the terms and subject to the conditions set forth below.
AGREEMENT
NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower, the Lenders executing this Amendment and Agent hereby agree as follows:
"Fourth Amendment Effective Date" shall mean September 30, 1999.
"Applicable Margin" shall mean:
(a) With respect to Revolving Base Rate Loans, zero percent (0%);
(b) With respect to Revolving LIBOR Loans:
(i) At all times prior to the Fourth Amendment Effective Date, nineteen- twentieths of one percent (0.95%); and
(ii) At all times on and after the Fourth Amendment Effective Date, one and one quarter percent (1.25%); provided, however, that if, after the Fourth Amendment Effective Date, both (A) the cumulative Adjusted Net Income of Borrower and its Subsidiaries for its most recent consecutive four-quarter period is greater than $0 and (B) the Adjusted Net Income of Borrower and its Subsidiaries for each of two consecutive quarters occurring within such consecutive four quarter period is greater than $0 (each as reflected in Borrower's most recent Financial Statements delivered to Agent pursuant to Subparagraph 5.01(a)), then beginning on the first day of the month following the delivery of such Financial Statements, the Applicable Margin for Revolving LIBOR Loans thereafter shall once again be nineteen-twentieths of one percent (0.95%); and
(c) With respect to Term Loans, one and one quarter percent (1.25%).
"Debt Service Coverage Ratio" shall mean, with respect to Borrower and its Subsidiaries for any quarter, the ratio, determined on a consolidated basis in accordance with GAAP where applicable, of:
(a) The remainder of (i) EBITDA of Borrower and its Subsidiaries for such period minus (ii) all Capital Expenditures of Borrower and its Subsidiaries for such period; provided, however, that (i) for the fiscal quarter periods ending on October 31, 1999 and January 31, 2000, all Capital Expenditures made by Borrower and its Subsidiaries during such periods shall be excluded from such calculation and (ii) for the fiscal quarter periods ending on April 30, 2000 and July 31, 2000, fifty percent (50%) of all Capital Expenditures made by Borrower and its Subsidiaries during such period shall be excluded from such calculation;
to
(b) The sum of (i) all Interest Expenses of Borrower and its Subsidiaries for such quarter and (ii) all principal payments on long-term Indebtedness for borrowed money of Borrower and its Subsidiaries scheduled for payment during the immediately succeeding quarter (excluding any payments of the Outstanding Lease Amount payable on the Expiration Date of the Lease Agreement (as each such term is defined in the Participation Agreement));
Provided, however, that for purposes of calculating Borrower's Debt-Service Coverage Ratio during its fiscal year 2000, EBITDA shall be calculated as follows:
(A) for the consecutive four-quarter period ending on October 31, 1999, EBITDA of Borrower and its Subsidiaries for such period shall be an amount equal to the EBITDA of Borrower and its Subsidiaries for the fiscal quarter period ending on October 31, 1999 multiplied by four (4);
(B) for the consecutive four-quarter period ending on January 31, 2000, EBITDA of Borrower and its Subsidiaries for such period shall be an amount equal to the EBITDA of Borrower and its Subsidiaries for the two fiscal quarter periods ending on January 31, 2000 multiplied by two (2); and
(C) for the consecutive four-quarter period ending on April 30, 2000, EBITDA of Borrower and its Subsidiaries for such period shall be an amount equal to the EBITDA of Borrower and its Subsidiaries for the three fiscal quarter periods ending on April 30, 2000 multiplied by one and one-third (1 and 1/3).
(b) Commitment Fees. Borrower shall pay to Agent, for the ratable benefit of the Revolving Lenders as provided in clause (iii) of Subparagraph 2.09(a), commitment fees (the "Commitment Fees") calculated on the daily average Unused Commitment for the period beginning on the date of this Agreement and ending on the Revolving Loan Maturity Date at the following rates:
(i) At all times prior to the Fourth Amendment Effective Date, 0.2750% per annum; and
(ii) At all times on and after the Fourth Amendment Effective Date, 0.30%; provided, however, that if, after the Fourth Amendment Effective Date, both (A) the cumulative Adjusted Net Income of Borrower and its Subsidiaries for its most recent consecutive four-quarter period is greater than $0 and (B) the Adjusted Net Income of Borrower and its Subsidiaries for each of two consecutive quarters occurring within such consecutive four quarter period is greater than $0 (each as reflected in Borrower's most recent Financial Statements delivered to Agent pursuant to Subparagraph 5.01(a)), then beginning on the first day of the month following the delivery of such Financial Statements, the Commitment Fees payable by Borrower on the daily average Unused Commitment shall once again be calculated at a rate of 0.2750% per annum.
Borrower shall pay the Commitment Fees in arrears on the last Business Day in each February, May, August and November (commencing August 30, 1996) and on the Revolving Loan Maturity Date (or if the Total Commitment is cancelled on a date prior to the Revolving Loan Maturity Date, on such prior date).
(x) Sales by Borrower and its Subsidiaries of other assets and property that are leased back by Borrower and its Subsidiaries, provided that (A) all such leases are operating leases under GAAP and (B) the aggregate value of all such assets and property (based upon the greater of the fair market or book value of such assets and property) so sold and leased back in any fiscal year does not exceed five percent (5%) of Borrower's Tangible Net Worth on the last day of the immediately preceding fiscal year; and
(d) Cash Balances. Borrower shall not permit the Cash Balances of Borrower and its Subsidiaries to be less than $35,000,000 on the last day of any fiscal quarter.
(e) Debt Service Coverage Ratio. Borrower shall not permit the Debt Service Coverage Ratio of Borrower and its Subsidiaries for any consecutive four-quarter period ending on any date set forth below to be less than the ratio set forth opposite such quarter below:
Quarter ending on
October 31, 1999 2.00 to 1.00;
Quarters ending on
January 31, 2000, and
April 30, 2000 2.50 to 1.00;
Quarter ending on
July 31, 2000 3.00 to 1.00;
Each quarter thereafter 5.00 to 1.00.
(f) Profitability. Borrower shall not permit:
(i) The Adjusted Net Income of Borrower and its Subsidiaries to be a loss greater than $4,000,000 for the quarter ended July 31, 1999;
(ii) The Adjusted Net Income of Borrower and its Subsidiaries to be a loss greater than $6,000,000 for the quarter ending October 31, 1999;
(iii) The Adjusted Net Income of Borrower and its Subsidiaries to be a loss greater than $1,500,000 for the quarter ending January 31, 2000;
(iv) The Adjusted Net Income of Borrower and its Subsidiaries to be less than $1 for the quarter ending April 30, 2000;
(v) Beginning with the quarter ending July 31, 2000 and for each quarter thereafter, the cumulative Adjusted Net Income of Borrower and its Subsidiaries for any consecutive four-quarter period to be less than $1.00.
(vi) Beginning with the quarter ending October 31, 1999, the Adjusted Net Income of Borrower and its Subsidiaries to be a loss in more than two quarters in any consecutive four-quarter period or the aggregate amount of any such two quarterly losses to exceed $10,000,000; or
(vii) The Operating Income of Borrower and its Subsidiaries to be a loss in more than two quarters in any consecutive four-quarter period or the aggregate amount of any such two quarterly losses to exceed $10,000,000.
(g) Capital Expenditures. Borrower and its Subsidiaries shall not pay or incur Capital Expenditures which exceed $22,000,000 in the aggregate during the two fiscal quarter periods ending on October 31, 1999 and January 31, 2000.
(Without limiting the scope of the term "Credit Documents," Borrower expressly acknowledges in making the representations and warranties set forth in this Paragraph 3 that, on and after the date hereof, such term includes this Amendment.)
[The signature pages follow.]
IN WITNESS WHEREOF, Borrower, Agent and the Lenders executing this Amendment have caused this Amendment to be executed as of the day and year first above written.
BORROWER: ETEC SYSTEMS, INC.
By: __/s/__________________________________
Name: Neil J. Young
Title: Treasurer
AGENT: ABN AMRO BANK N.V.
By: /s/
Name: Richard R. DaCosta
Title: Vice President
By: /s/
Name: Christopher L. Snider
Title: Assistant Vice President
LENDERS: ABN AMRO BANK N.V.
By: /s/
Name: Richard R. DaCosta
Title: Vice President
By: /s/
Name: Christopher L. Snider
Title: Assistant Vice President
COMERICA BANK-CALIFORNIA
By: /s/
Name: Robert Ways
Title: C.B.O
THE INDUSTRIAL BANK OF JAPAN, LTD.
By: /s/
Name: Ken Iwata
Title: Senior Vice President
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