Looking for an agreement? Search from over 1 million agreements now.

$91,936,418.54 Credit Facility

This is an actual contract by Culp.
Browse the agreement preview below and buy the entire agreement for $35
Search This Document
Exhibit 10(bb)


1996 AMENDED AND RESTATED


$91,936,418.54 CREDIT FACILITY


TO


CULP, INC.


BY


FIRST UNION NATIONAL BANK OF NORTH CAROLINA


AND


WACHOVIA BANK OF NORTH CAROLINA, N.A.


April 1, 1996


TABLE OF CONTENTS


Page


SECTION 1. Definitions.................................................................................2


SECTION 2. Commitment and Security....................................................................13
2.1. Commitment.................................................................................13
2.2. Security...................................................................................14


SECTION 3. Loans Evidenced by Term Notes..............................................................14
3.1. Term Loans.................................................................................14
3.2. Term Notes.................................................................................14
3.3. Repayment of Term Loans....................................................................14
3.4. Optional and Mandatory Prepayment of Term Loans............................................15


SECTION 4. Loans Evidenced by Revolving Credit Notes..................................................16
4.1 Revolving Loans............................................................................16
4.2. Payments of Interest and Principal.........................................................17
4.3. Termination or Reduction of Revolving Credit
Commitments................................................................................18
4.4. Bankers' Acceptances.......................................................................19
4.5. Letters of Credit..........................................................................21


SECTION 5. The Notes..................................................................................26
5.1. Computation of Interest....................................................................26
5.2. Payments...................................................................................26
5.3. Facility Fee...............................................................................27
5.4. Default Rate of Interest...................................................................27
5.5. Late Charge................................................................................27


SECTION 6. Use of Proceeds............................................................................27


SECTION 7. Representations and Warranties.............................................................28
7.1. Incorporation..............................................................................28
7.2. Power and Authority........................................................................28
7.4. Title to Assets............................................................................29
7.6. Contingent Liabilities.....................................................................29
7.7. Taxes......................................................................................30
7.8. Contract or Restriction Affecting Borrower.................................................30
7.9. [INTENTIONALLY LEFT BLANK].................................................................30
7.10. Permits and Licenses.......................................................................30
7.11. Trademarks, Franchises and Licenses........................................................30
7.12. [INTENTIONALLY LEFT BLANK].................................................................30
7.13. [INTENTIONALLY LEFT BLANK].................................................................30
7.14. ERISA......................................................................................30
7.15. Environmental Matters......................................................................31
7.16. No Default.................................................................................31


SECTION 8. Conditions.................................................................................31
8.1. Conditions of Closing......................................................................31
8.2. Conditions to Each Extension of Credit.....................................................32


(i)


SECTION 9. Affirmative Covenants......................................................................32
9.1. Financial Reports and Other Data...........................................................32
9.2. Taxes and Liens............................................................................34
9.3. Business and Existence.....................................................................34
9.4. Insurance on Properties....................................................................34
9.5. Maintain Property..........................................................................35
9.6. Right of Inspection........................................................................35
9.7. [INTENTIONALLY LEFT BLANK].................................................................35
9.8. Covenant Extended to Subsidiaries..........................................................35
9.9. Borrower's Knowledge of Default............................................................35
9.10. Suits or Other Proceedings.................................................................35
9.11. Observe All Laws...........................................................................35
9.12. Compliance with Laws; Governmental Approvals...............................................35
9.13. ERISA......................................................................................36
9.14. Payment of Obligations.....................................................................36
9.15. [RESERVED].................................................................................36
9.16. Tangible Shareholders' Equity..............................................................36
9.17. [RESERVED].................................................................................37
9.18. [RESERVED].................................................................................37
9.19. Operating Cash Flow to Interest Expense....................................................37
9.20. Consolidated Funded Debt to Total Capitalization...........................................37
9.21. Environmental Provisions and Indemnity.....................................................37
9.22. [INTENTIONALLY LEFT BLANK].................................................................38
9.23. [INTENTIONALLY LEFT BLANK].................................................................38
9.24. [INTENTIONALLY LEFT BLANK].................................................................38


SECTION 10. Negative Covenants of Borrower.............................................................38
10.1. Limitations on Liens.......................................................................39
10.2. Guarantee..................................................................................39
10.3. [RESERVED].................................................................................39
10.5. Sale of Assets, Dissolution, etc...........................................................39
10.6. [INTENTIONALLY LEFT BLANK].................................................................40
10.7. Loans and Investments......................................................................40
10.8. Fiscal Year................................................................................40


10.9. [RESERVED]..............................................................................................40
10.10. Rental Obligations.........................................................................40
10.11. Prepayments................................................................................40
10.12. ...........................................................................................40


SECTION 11. Events of Default..........................................................................41
11.1. Definition.................................................................................41
11.2. Remedies...................................................................................43


SECTION 12. The Agent..................................................................................44
12.1. Appointment................................................................................44
12.2. Nature of Duties...........................................................................44
12.3. Lack of Reliance on the Agent..............................................................44
12.4. Certain Rights of the Agent................................................................45
12.5. Reliance...................................................................................45
12.6. Indemnification............................................................................45


(ii)


12.7. The Agent in its Individual Capacity.......................................................46
12.8. Holders....................................................................................46
12.9. Reimbursement..............................................................................46
12.10. Defaults...................................................................................47
12.12. Resignation or Removal of Agent............................................................47
12.13. Annual Fee.................................................................................48


SECTION 13. Miscellaneous..............................................................................48
13.1. Amendments and Waivers.....................................................................48
13.2. Ratable Sharing of Set-Offs, Payments......................................................49
13.3. Successors and Assigns.....................................................................50
13.4. Confidentiality............................................................................53
13.5. Unavailability of Adjusted LIBOR Rate......................................................53
13.6. Increased Costs............................................................................53
13.7. Headings; Table of Contents................................................................54
13.8. Lawful Charges.............................................................................54
13.9. Conflict of Terms..........................................................................54
13.10. Notices....................................................................................54
13.11. Survival of Agreements.....................................................................55
13.12. Governing Law..............................................................................55
13.13. Enforceability of Agreement................................................................55
13.14. Stamp or Other Tax.........................................................................55
13.15. Counterparts and Effectiveness.............................................................56
13.16. Fees and Expenses..........................................................................56
13.17. Liens; Set Off by Banks....................................................................56
13.18. Loan Documents.............................................................................56
13.19. Entire Agreement...........................................................................56
13.20. Survival of Certain Provisions Upon Termination............................................56
13.21. Accounting Terms and Computations..........................................................57
13.22. Obligations Several........................................................................57


SECTION 14. Pledge of Bonds............................................................................57
14.1. The Pledge.................................................................................57
14.2. Remedies Upon Default......................................................................58
14.3. Valid Perfected First Lien.................................................................59
14.4. Release of Pledged Bonds...................................................................59


(iii)


1996 AMENDED AND RESTATED CREDIT AGREEMENT


THIS 1996 AMENDED AND RESTATED CREDIT AGREEMENT, dated as of April 1, 1996 (the "Credit Agreement" or "Agreement"), is made by and among CULP, INC., a North Carolina corporation (herein called the "Borrower"), FIRST UNION NATIONAL BANK OF NORTH CAROLINA, a national banking association ("First Union"), WACHOVIA BANK OF NORTH CAROLINA, N.A., a national banking association ("Wachovia") (First Union and Wachovia being referred to collectively herein as the "Banks"), and FIRST UNION, acting in the manner and to the extent described in Section 12 hereof (in such capacity, the "Agent").


RECITALS


A. The Borrower and First Union were parties to a 1988 Credit Agreement, dated as of November 11, 1988 (the "1988 Credit Agreement"), pursuant to which First Union extended certain loans to the Borrower (collectively referred to as the "Original Loan").


B. Subsequently, the Borrower and First Union executed the following amendments to the 1988 Credit Agreement (whereby the Original Loan was amended): an Amendment to 1988 Credit Agreement, dated as of October 30, 1989; a Second Amendment to 1988 Credit Agreement, dated as of January 26, 1990; a Third Amendment to 1988, Credit Agreement, dated as of February 6, 1990; a Fourth Amendment to 1988 Credit Agreement, dated as of November 27, 1990; a Fifth Amendment to 1988 Credit Agreement, dated as of August 19, 1991; a Sixth Amendment to 1988 Credit Agreement, dated as of October 24, 1991 and Amendment A to the Credit Agreement dated September 1, 1992.


C. The Borrower, First Union and Wachovia entered into a 1993 Amended and Restated Credit Agreement dated January 28, 1993 (the "1993 Credit Agreement"), which 1993 Credit Agreement amended and restated the 1988 Credit Agreement, as amended, in its entirety and further amended the Original Loan. The 1993 Credit Agreement was amended by a First Amendment to 1993 Amended and Restated Credit Agreement dated August 3, 1993, and a Second Amendment to 1993 Amended and Restated Credit Agreement dated November 1, 1993.


D. The Borrower, First Union and Wachovia entered into a 1994 Amended and Restated Credit Agreement dated April 15, 1994 (the "1994 Credit Agreement"), which 1994 Credit Agreement amended and restated the 1993 Credit Agreement, as amended, in its entirety and further amended the Original Loan. The 1994 Credit Agreement has been amended by a First Amendment to 1994 Amended and Restated Credit Agreement dated April 30, 1994; a Second Amendment to Amended and Restated Credit Agreement dated July 13, 1994; a Third Amendment to 1994 Amended and Restated Credit Agreement dated November 1, 1994; and a Fourth Amendment to 1994 Amended and Restated Credit Agreement dated March 6,


1995.


E. The Borrower, First Union and Wachovia entered into a 1995 Amended and Restated Credit Agreement dated July 1, 1995 (as amended and modified, the "1995 Credit Agreement"), which 1995 Credit Agreement amended and restated the 1994 Credit Agreement, as amended, in its entirety and further amended the Original Loan.


F. The Borrower, First Union and Wachovia desire to restate the 1995 Credit Agreement, as amended and modified, so that the parties' agreement regarding the Borrower's indebtedness and obligations will be contained in one restated agreement.


G. The parties intend that this Agreement shall restate, supersede and replace in its entirety the 1995 Credit Agreement and all amendments and modifications relating thereto. This Agreement is not intended to and does not represent the making of new loans from the Banks to the Borrower, is not a novation, and the loans described hereunder shall continue to be secured by and enjoy the benefits of all of the Loan Documents not amended or replaced hereby or hereunder.


STATEMENT OF AGREEMENT


NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, each of the Banks and the Agent hereby agree as follows:


SECTION 1. Definitions. For purposes of this Agreement, the following terms shall have the following meanings:


"Accepted Drafts" means such term as defined in Section 4.4.


"Accepting Bank" means such terms as defined in Section 4.4.


"Acts" means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sec. 9601 et seq. ; the Toxic Substances Control Act, 15 U.S.C. Sec. 2601 et seq.; the Resource Conservation and Recovery Act, 42 U.S.C. Sec. 6901 et seq.; the Clean Air Act, 42 U.S.C. Sec. 7401 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Sec. 201 et seq.; the Emergency Planning and Community Right-to- Know Act, 42 U.S.C. Sec. 11001 et seq.; and all other federal, state or local laws or rules and the regulations adopted and publications promulgated pursuant thereto, all as amended from time to time, regulating environmental matters.


"Adjusted LIBOR Rate" means a rate per annum (rounded upwards, if necessary, to the next higher 1/100 of 1%) determined pursuant to the following formula:


-2-


Adjusted LIBOR Rate = LIBOR BASE RATE
----------------------------
1 - LIBOR RESERVE PERCENTAGE


"Agreement" means this 1996 Credit Agreement between the Borrower, the Banks and the Agent, as it may be amended, modified, supplemented or restated from time to time.


"Applicable Margin" or "Applicable Percentage" means (i) the marginal rate of interest which shall be paid by Borrower in addition to the Prime Rate or the Adjusted LIBOR Rate, as the case may be, or (ii) the applicable Letter of Credit Fee, which in each case coincides to the ratio of Consolidated Funded Debt to Operating Cash Flow for Borrower (calculated quarterly with respect to the immediately preceding four calendar quarters), as specifically set forth in a separate letter agreement dated as of the date hereof between the Borrower and the Banks as such letter may be amended, restated, modified or supplemented from time to time.


"BA Obligations" means, at any time, the sum of (i) the maximum aggregate amount which is, or at any time thereafter may become, payable by an Accepting Bank under all Accepted Drafts then outstanding, plus (ii) the aggregate amount of reimbursement obligations owing to an Accepting Bank on a matured Accepted Draft and not theretofore reimbursed.


"Bankers' Acceptance" means an Accepted Draft hereunder.


"Bond Documents" means the Indentures and those other documents executed in connection with the bonds and obligations relating to the VRDN Programs as referenced in the respective Indentures.


"Business Day" means a banking business day of both Banks in High Point, North Carolina.


"Canada" means 3096726 Canada Inc., a Canadian corporation and a wholly-owned Subsidiary of the Borrower.


"Capital Asset" means any asset that would, in accordance with generally accepted accounting principles in the United States, be required to be classified and accounted for as a capital asset.


"Capital Expenditures" means, for any period, the aggregate cost (including repairs, replacements and improvements), less the amount of trade-in allowances included in such cost, of all Capital Assets acquired by the Borrower and any Subsidiary during such period, plus all Capital Lease Obligations of the Borrower and any Subsidiary incurred during the relevant period.


"Capital Lease" means, as to the Borrower and its Subsidiaries, any lease of any property (whether real, personal


-3-


or mixed) that would, in accordance with generally accepted accounting principles in the United States, be required to be classified and accounted for as a capital lease on a balance sheet of the lessee.


"Capital Lease Obligations" means, with respect to any Capital Lease, the amount of the obligation of the lessee thereunder that would, in accordance with generally accepted accounting principles in the United States, appear on a balance sheet as liability of such lessee in respect of such Capital Lease.


"Closing Date" means April 15, 1994.


"Commitment" or "Commitments" means, collectively, the Revolving Credit Commitments and the LOC Commitments.


"Consolidated Adjusted Current Liabilities" means the amount of all liabilities of the Borrower and its Subsidiaries which by their terms are payable within one year (including all indebtedness payable on demand or maturing not more than one year from the date of computation and the current portion of long term debt, but excluding the outstanding principal amount of the Revolving Credit Notes, except to the extent that such outstanding principal amount exceeds the amount of the Revolving Credit Commitments as they will stand one year in the future), all determined in accordance with generally accepted accounting principles in the United States.


"Consolidated Current Assets" means cash and all other assets or resources of the Borrower and its Subsidiaries which are expected to be realized in cash, sold in the ordinary course of business, or consumed within one year, all determined in accordance with generally accepted accounting principles in the United States.


"Consolidated Funded Debt" means all indebtedness for money borrowed of the Borrower and its Subsidiaries, whether direct or contingent, as determined in accordance with generally acceptable accounting principles in the United States, including (without limitation) Capital Lease Obligations, the deferred purchase price of any property or asset or indebtedness evidenced by a promissory note, bond, guaranty or similar written obligation for the payment of money (including, but not limited to, conditional sales or similar title retention agreements); minus amounts of restricted investments relating to industrial revenue bond financing ("IRB").


"Consolidated Tangible Shareholders' Equity" of the Borrower and its Subsidiaries shall mean at any time as of which the amount thereof is to be determined, the sum of the following in respect of, the Borrower and its Subsidiaries (on a consolidated basis and excluding intercompany items):


-4-


(i) the amount of issued and outstanding share
capital, plus


(ii) the amount of additional paid-in capital,
retained earnings (or, in the case of a
deficit, minus the amount of such deficit),
minus


(iii) the sum of the following (without duplication
or deductions in respect of items already
deducted in arriving at surplus and retained
earnings): (a) all reserves, except legal
reserves and other contingency reserves
(i.e., reserves not allocated by specific
purposes and not deducted from assets) which
are properly treated as appropriations or
surplus or retained earnings; (b) the book
value of all assets which would be treated as
intangibles under generally accepted
accounting principles in the United States
including, without limitation, capitalized
expenses, goodwill, trademarks, trade names,
franchises, copyrights, patents and
unamortized debt discount and expense; and
(c) any treasury stock.


"Consolidated Total Liabilities" means the sum of the aggregate amount of all liabilities of the Borrower and its Subsidiaries, all determined in accordance with generally accepted accounting principles in the United States plus all guaranties of the obligations of third parties other than Subsidiaries; provided, however, that for the purposes of this definition, the amount of the Consolidated Funded Debt of the Borrower and its Subsidiaries relating to industrial revenue bond financing, and the amount of all guaranties of the Borrower and its Subsidiaries in connection with such financing, shall
-- End of Preview --
Home| About Us| FAQ| Subscription | Contact Us |