EX-10 2 d72692_ex-10.htm AMENDMENT NO. 2 TO CREDIT AGREEMENT

Exhibit 10


EXECUTION COPY

 

AMENDMENT NO. 2

TO

CREDIT AGREEMENT

This AMENDMENT NO. 2 TO CREDIT AGREEMENT (this “Amendment”) dated as of October 2, 2007 is among ArvinMeritor, Inc., an Indiana corporation (the “Company”), ArvinMeritor Finance Ireland, a company organized under the laws of Ireland, (the “Subsidiary Borrower” and, collectively with the Company, the “Borrowers”), the financial institutions listed on the signature pages hereto and JPMorgan Chase Bank, National Association, in its capacity as administrative agent for itself and the other Lenders (in such capacity, the “Administrative Agent”). Defined terms used herein and not otherwise defined herein shall have the meanings given to them in the Credit Agreement.

WHEREAS, the signatories hereto are parties to that certain Credit Agreement, dated as of June 23, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among the Borrowers, the financial institutions from time to time parties thereto (the “Lenders”) and the Administrative Agent; and

WHEREAS, the Borrowers wish to amend the Credit Agreement in certain respects, and the Lenders party hereto and the Administrative Agent are willing to amend the Credit Agreement on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises set forth above, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrowers, the Lenders party hereto and the Administrative Agent agree as follows:

1.          Amendments. Effective as of the date first above written and subject to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows:

(a)        Section 7.4(A) of the Credit Agreement is hereby amended to delete therefrom the phrase “(i) 5.00 to 1.00 on the last day of any fiscal quarter from the Closing Date through and including the fiscal quarter ending on or about June 30, 2008” and to insert therefor the following phrase:

“(i)(A) 5.00 to 1.00 on the last day of any fiscal quarter from the Closing Date through and including the fiscal quarter ending December 31, 2007, (B) 5.25 to 1.00 on the last day of the fiscal quarter ending March 31, 2008 and (C) 5.00 to 1.00 on the last day of the fiscal quarter ending June 30, 2008”

 

 

 



 

 

(b)        Section 7.4(B) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“(B) Fixed Charge Coverage Ratio. The Company shall not permit its Fixed Charge Coverage Ratio, calculated on a consolidated basis for the Company and its Subsidiaries, to be less than (i) 1.25 to 1.00 on the last day of any fiscal quarter from the Closing Date through and including the fiscal quarter ending June 30, 2007, (ii) 1.00 to 1.00 on the last day of the fiscal quarter ending September 30, 2007, (iii) 0.70 to 1.00 on the last day of the fiscal quarter ending December 31, 2007 or the fiscal quarter ending March 31, 2008, (iv) 1.00 to 1.00 on the last day of the fiscal quarter ending June 30, 2008, (v) 1.25 to 1.00 on the last day of any fiscal quarter from and including the fiscal quarter ending September 30, 2008 through and including the fiscal quarter ending June 30, 2009 and (vi) 1.50 to 1.00 on the last day of any fiscal quarter thereafter.”

(c)        The rows of the Pricing Schedule attached to the Credit Agreement pertaining to the “Applicable Commitment Fee Percentage,” the “Applicable Floating Rate Margin (Revolving Loans)” and the “Applicable Eurocurrency Margin (Revolving Loans) and Applicable L/C Fee Percentage” are hereby amended and restated in their entirety to read as follows:

RATING

≥ Baa3
and
≥ BBB-

Ba1
and
BB+

Ba2
and
BB

Ba3
and
BB-

<Ba3
or
<BB-

Applicable Commitment Fee Percentage

0.25%

0.30%

0.40%

0.45%

0.50%

Applicable Floating Rate Margin (Revolving Loans)

0.25%

0.75%

1.00%

1.25%

1.50%

Applicable Eurocurrency Margin (Revolving Loans) and Applicable L/C Fee Percentage

1.25%

1.75%

2.00%

2.25%

2.50%

 

2.          Conditions Precedent. This Amendment shall become effective as of the date first above written if, and only if, (a) the Administrative Agent has received (i) duly executed copies of this Amendment from the Borrowers and the Required Lenders, (ii) duly executed copies of the Reaffirmation in the form of Attachment A attached hereto from each Subsidiary Guarantor and (iii) for the ratable account of each Revolving Lender which executes and delivers its signature page hereto as and when required by the Administrative Agent, an amendment fee equal to 0.225% of such Revolving Lender’s Revolving Loan Commitment on the date hereof and (b) the Company shall have paid all fees and expenses (including, to the

 

2

 



 

extent invoiced, reimbursement of fees and expenses of the Administrative Agent’s counsels) in connection with this Amendment and the other Loan Documents.

3.          Representations and Warranties of the Borrowers. The Borrowers hereby represent and warrant as follows:

(a)        Each Borrower has the corporate or other power and authority and legal right to execute and deliver this Amendment and to perform its obligations hereunder and under the Credit Agreement, as amended hereby. The execution and delivery by each Borrower of this Amendment, and the performance of its obligations under this Amendment and the Credit Agreement, as amended hereby, have been duly authorized by proper corporate, partnership or limited liability company proceedings (or analogous acts in the case of the Subsidiary Borrower).

(b)        This Amendment and the Credit Agreement, as amended hereby, constitute the legal, valid and binding obligations of each Borrower enforceable against such Borrower in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, or similar laws affecting the enforcement of creditors’ rights generally.

(c)        Neither the execution and delivery by the Borrowers of this Amendment, nor the consummation of the transactions contemplated herein and in the Credit Agreement, as amended hereby, nor compliance with the provisions hereof or thereof will violate any law, rule, regulation, order, writ, judgment, injunction, decree or award binding on the Company or any of its Subsidiaries or the Company’s or any Subsidiary’s articles of incorporation or by-laws or comparable constitutive documents or the provisions of any indenture, instrument or agreement to which the Company or any of its Subsidiaries is a party or is subject, or by which it, or its Property, is bound, or conflict with or constitute a default thereunder, or result in the creation or imposition of any Lien (other than any Lien permitted by Section 7.3(F) of the Credit Agreement) in, of or on the Property of the Company or a Subsidiary pursuant to the terms of any such indenture, instrument or agreement, except any such violation, conflict or default as would not reasonably be expected to have a Material Adverse Effect. No order, consent, approval, license, authorization, or validation of, or filing, recording or registration with, or exemption by, any Governmental Authority, or any other third party, is required to authorize, or is required in connection with the execution or delivery of this Amendment or the performance of, or the legality, validity, binding effect or enforceability of, this Amendment or the Credit Agreement, as amended hereby.

(d)        Each representation and warranty by the Borrowers in Article VI of the Credit Agreement, as amended hereby, is true and correct as of the date hereof in all material respects, except to the extent that such representation or warranty expressly relates to an earlier date (in which case such representation and warranty shall be true and correct as of such earlier date).

(e)        Upon the effectiveness of this Amendment, no Default or Unmatured Default exists under the terms of the Credit Agreement.

 

 

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4.

Reference to and Effect on the Credit Agreement.

(a)        Upon the effectiveness of Section 1 hereof, on and after the date hereof, each reference in the Credit Agreement to “this Credit Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Credit Agreement, as amended hereby.

(b)        Except as specifically amended above, the Credit Agreement, as amended hereby, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed. Without limiting the foregoing, each Borrower hereby reaffirms all Liens on the Collateral which have been granted by it in favor of the Administrative Agent (for itself and the other Holders of Secured Obligations) pursuant to any of the Loan Documents.

(c)        Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement or any other documents, instruments and agreements executed and/or delivered in connection therewith.

5.          GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

6.          Headings. Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

7.          Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate counterparts and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or e-mail transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

Remainder of page intentionally left blank.

 

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IN WITNESS WHEREOF, this Amendment has been duly executed and delivered on the date first above written.

ARVINMERITOR, INC., as a Borrower

 

 

By: /s/ Mary A. Lehmann                                         

Name: Mary A. Lehmann

 

Title: Senior Vice President, Strategic
Initiatives, and Treasurer

 

 

 

 

 

ARVINMERITOR FINANCE IRELAND,
as a Borrower

 

 

By: /s/ Scott Stevens                                                

Name: Scott Stevens

 

Title: Director

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

JPMORGAN CHASE BANK, NATIONAL

 

ASSOCIATION, as Administrative Agent
and as a Lender

 

 

 

 

 

By: /s/ Robert P. Kellas                                                       

Name: Robert P. Kellas

 

Title: Executive Director

 

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

CITICORP NORTH AMERICA, INC.,

 

as a Lender

 

 

 

 

 

By: /s/ Edward D. Herko                                  

Name: Edward D. Herko

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

UBS LOAN FINANCE LLC, as a Lender

 

 

By: /s/ Irja R. Otsa                                                                    

Name: Irja R. Otsa

 

Title: Associate Director, Banking Products Services, US

 

 

 

By: /s/ Richard L. Tavrow

 

Name: Richard L. Tavrow

 

Title: Director, Banking Products Services, US

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

ABN AMRO BANK N.V., as a Lender

 

 

By: /s/ David Carrington                               

Name: David Carrington

Title: Director

 

 

By: /s/ Marc Brondyke                                  

Name: Marc Brondyke

Title: Associate

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

BNP PARIBAS, as a Lender

 

 

By: /s/ Andrew Strait                                  

Name: Andrew Strait

Title: Managing Director

 

 

By: /s/ Nader Tannous                                

Name: Nader Tannous

Title: Director

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

LEHMAN COMMERCIAL PAPER INC.,

as a Lender

 

 

By: /s/ Randall Braunfeld                                

Name: Randall Braunfeld

 

Title: Authorized Signatory

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

NATIONAL CITY BANK, as a Lender

 

 

By: /s/ Kenneth M. Blackwell                            

Name: Kenneth M. Blackwell

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

BANK OF AMERICA, N.A., as a Lender

 

 

By: /s/ Chas McDonell                                           

Name: Chas McDonell

 

Title: Senior Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

SUNTRUST BANK, as a Lender

 

 

By: /s/ Michael Lapresi                                      

Name: Michael Lapresi

 

Title: Managing Director

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

BANK OF TOKYO-MITSUBISHI UFJ

TRUST COMPANY, as a Lender

 

 

By: /s/ Lillian Kim                                                     

Name: Lillian Kim

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

COMERICA BANK, as a Lender

 

 

By: /s/ Thomas VanderMeulen                                

Name: Thomas VanderMeulen

 

Title: Account Officer

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

THE BANK OF NEW YORK, as a Lender

 

 

By: /s/ Mark F. Johnston                                     

Name: Mark F. Johnston

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

BAYERISCHE LANDESBANK,

 

as a Lender

 

 

 

 

 

By: /s/ Michael Hintz                                        

 

Name: Michael Hintz

Title: Vice President

 

 

 

 

By: /s/ Nikolai von Mengden                          

 

Name: Nikolai von Mengden

Title: Senior Vice President

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

THE BANK OF NOVA SCOTIA,

as a Lender

 

 

By: /s/ J. F. Todd                                             

Name: J. F. Todd

 

Title: Managing Director

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

FIFTH THIRD BANK, as a Lender

 

 

By: /s/ Brian Jelinski                                        

Name: Brian Jelinski

 

Title: Portfolio Manager

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

THE ROYAL BANK OF SCOTLAND PLC,

as a Lender

 

 

By: /s/ James P. Welch                                              

Name: James P. Welch

 

Title: Senior Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

BANK AUSTRIA CREDITANSTALT AG,

as a Lender

 

 

By: /s/ A. Anzenhofer                                                    

Name: A. Anzenhofer

 

Title: Deputy Managing Director

 

 

 

By: /s/ G. Pölzl

 

Name: G. Pölzl

 

Title: Senior Relationship Manager

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

LANDESBANK BADEN-WUERTTEMBERG,
NEW YORK AND/OR CAYMAN ISLAND BRANCH,

as a Lender

 

 

By: /s/ Donald Wolf                                                                

Name: Donald Wolf

 

Title: Vice President

 

 

 

By: /s/ Rainer Bucher

 

Name: Rainer Bucher

 

Title: Senior Credit Analyst

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

FOOTHILL GROUP, INC., as a Lender

 

 

By: /s/ Scott P. Quigley                                                

Name: Scott P. Quigley

 

Title: Vice President

 

 

Signature Page to
Amendment No. 2 to Credit Agreement

 



 

 

 

GENERAL ELECTRIC CAPITAL CORP.,
as a Lender

 

 

By: /s/ Rebecca L. Milligan                                             

Name: Rebecca L. Milligan

 

Title: Duly Authorized Signatory

 

 



 

 

ATTACHMENT A

 

Reaffirmation

 

dated as of October 2, 2007

Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 2 to that certain Credit Agreement, dated as of June 23, 2006 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among ArvinMeritor, Inc., an Indiana corporation (the “Company”), ArvinMeritor Finance Ireland, the financial institutions from time to time parties thereto (the “Lenders”) and JPMorgan Chase Bank, National Association, as Administrative Agent (in such capacity, the “Administrative Agent”), which Amendment No. 2 is dated as of October 2, 2007 (the “Amendment”). Capitalized terms used herein without definition shall have the meanings assigned to such terms in the Credit Agreement. Without in any way establishing a course of dealing by the Administrative Agent or any Lender, each of the undersigned reaffirms the terms and conditions of that certain Subsidiary Guaranty, dated as of June 23, 2006 (as amended, restated, supplemented or otherwise modified from time to time, including to add additional Subsidiary Guarantors, the “Subsidiary Guaranty”), by and among each of the undersigned in favor of the Administrative Agent, for the ratable benefit of the Holders of Secured Obligations, and acknowledges and agrees that the Subsidiary Guaranty and each other Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed. Without limiting the foregoing, each of the undersigned hereby reaffirms all Liens on the Collateral which have been granted by it in favor of the Administrative Agent (for itself and the other Holders of Secured Obligations) pursuant to any of the Loan Documents. All references to the Credit Agreement contained in the above referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, modified or restated.

Remainder of page intentionally left blank.

 

A-1

 



 

 

IN WITNESS WHEREOF, this Reaffirmation has been duly executed and delivered on the date first above written.

 

ARVINYL WEST, INC

ARVIN INTERNATIONAL HOLDINGS, LLC

ARVINMERITOR ASSEMBLY, LLC

ARVINMERITOR BRAKE HOLDINGS, INC.

ARVINMERITOR HOLDINGS MEXICO, LLC (successor to
ArvinMeritor Holdings Mexico, Inc.)

ARVINMERITOR INVESTMENTS, LLC (successor to each
of Meritor I Acquisition Corporation and Meritor Finance
Cayman Islands, Ltd.)

ARVINMERITOR OE, LLC

ARVINMERITOR TECHNOLOGY, LLC

ARVIN REPLACEMENT PRODUCTS FINANCE, LLC

EUCLID INDUSTRIES, LLC

GABRIEL EUROPE, INC.

GABRIEL RIDE CONTROL PRODUCTS, INC.

MAREMONT CORPORATION

MAREMONT EXHAUST PRODUCTS, INC.

MERITOR HEAVY VEHICLE BRAKING SYSTEMS (U.S.A.), INC.

MERITOR HEAVY VEHICLE SYSTEMS, LLC

MERITOR HEAVY VEHICLE SYSTEMS (MEXICO), INC.

MERITOR HEAVY VEHICLE SYSTEMS (SINGAPORE) PTE., LTD.

MERITOR HEAVY VEHICLE SYSTEMS (VENEZUELA), INC.

MERITOR LIGHT VEHICLE SYSTEMS (SPAIN) INC.

MERITOR MANAGEMENT CORP.

MERITOR TECHNOLOGY, INC.

MERITOR TRANSMISSION CORPORATION

ARVINMERITOR FILTERS OPERATING CO., LLC

ARVINMERITOR FILTERS HOLDING CO., LLC

ARVIN TECHNOLOGIES, INC.

ARVINMERITOR, INC., a Nevada corporation

ARVIN INDUSTRIES FOREIGN SALES CORPORATION

ARVINMERITOR HOLDINGS, LLC

AVM, INC.

 

 

By: /s/ Mary A. Lehmann                                         

Name: Mary A. Lehmann

 

Title: Vice President and Treasurer

 

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)

 



 

 

 

ARVINMERITOR B.V.

 

 

By: /s/ H. C. Nuijt                                              

Name: H. C. Nuijt

 

Title: Director

 

 

 

 

 

MERITOR HOLDINGS NETHERLANDS B.V.

 

 

 

 

 

By: /s/ H. C. Nuijt                                               

Name: H. C. Nuijt

 

Title: Director

 

 

 

 

 

ARVINMERITOR LIMITED

 

 

 

 

 

By: /s/ Daniel Hopgood                                     

Name: Daniel Hopgood

 

Title: Director

 

 

 

 

 

ARVIN EUROPEAN HOLDINGS (UK) LIMITED

 

 

 

 

 

By: /s/ Daniel Hopgood                                      

Name: Daniel Hopgood

 

Title: Director

 

 

 

 

 

ARVINMERITOR SWEDEN AB

 

 

 

 

 

By: /s/ Dan Johansson                                        

 

Name: Dan Johansson

 

Title: Board of Directors

 

 

 

 

 

MERITOR LUXEMBOURG S.A.R.L.

 

 

 

By: /s/ John A. Crable                                        

Name: John A. Crable

 

Title: Sole Manager

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)

 



 

 

IN WITNESS whereof the undersigned has executed this Reaffirmation as a deed the day and year first above written.

 

 

 

 

 

 

EXECUTED AS A DEED by ARVIN CAYMAN ISLANDS, LTD.

)

/s/ Mary A. Lehmann

)

Duly Authorised Signatory

 

)

 

 

)

Name:

Mary A. Lehmann

 

)

 

 

)

Title:

Vice President and Treasurer

 

)

 

 

 

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

 

 

/s/ Bonnie Wilkinson

 

Signature of Witness

 

 

 

Name:

Bonnie Wilkinson

 

 

 

Address:

2135 West Maple Road

 

Troy, MI 48084  

 

Occupation:

Attorney

 

 

 

 

(Note: These details are to be completed
in the witness’s own hand writing.)
 

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)

 



 

 

IN WITNESS whereof the undersigned has executed this Reaffirmation as a deed the day and year first above written.

 

 

 

 

 

 

EXECUTED AS A DEED by MERITOR CAYMAN ISLANDS, LTD.

)

/s/ Mary A. Lehmann

)

Duly Authorised Signatory

 

)

 

 

)

Name:

Mary A. Lehmann

 

)

 

 

)

Title:

Treasurer

 

)

 

 

 

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

 

 

 

 

Signature of Witness

 

 

 

Name:

Bonnie Wilkinson

 

 

 

Address:

2135 West Maple Road

 

Troy, MI 48084

 

Occupation:

Attorney

 

 

 

 

(Note: These details are to be completed
in the witness’s own hand writing.)
 

 

 

 

 

Signature Page to

Reaffirmation

(Amendment No. 2 to Credit Agreement)