SECOND AMENDMENT TO AMENDED CREDIT AGREEMENT
Published on September 25, 2007
EXHIBIT 10.1
SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT
THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of September 19, 2007
(the Second Amendment) is entered into among Quanta Services, Inc., a Delaware
corporation (the Borrower), the Guarantors, the Lenders party hereto and Bank of America,
N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. All capitalized terms used herein
and not otherwise defined herein shall have the meanings given to such terms in the Credit
Agreement (as defined below).
RECITALS
WHEREAS, the Borrower, the Guarantors, the Lenders and the Administrative Agent entered into
that certain Amended and Restated Credit Agreement dated as of June 12, 2006 (as amended or
modified from time to time, the Credit Agreement);
WHEREAS, the Borrower has requested that the Lenders amend the Credit Agreement as set forth
below;
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. Amendments.
(a) The following new definitions are hereby added to Section 1.01 of the
Credit Agreement in the appropriate alphabetical order to read as follows:
Immaterial Subsidiary means, at any time, any Subsidiary of the
Borrower then having net assets with a book value of less than $5,000,000 and gross
assets with a book value of less than $20,000,000; provided, that if the aggregate
book value of (a) the net assets of all Subsidiaries of the Borrower that would
otherwise constitute Immaterial Subsidiaries shall exceed $20,000,000 or (b) the
gross assets of all Subsidiaries of the Borrower that would otherwise constitute
Immaterial Subsidiaries shall exceed $50,000,000, only those such Subsidiaries as
shall not then have net assets the aggregate book value of which is greater than
$20,000,000 or gross assets the aggregate book value of which is greater than
$50,000,000 and as shall be designated in writing by the Borrower to the
Administrative Agent as Immaterial Subsidiaries shall be deemed to constitute
Immaterial Subsidiaries.
Second Amendment Effective Date means September 19, 2007.
(b) The definition of Aggregate Revolving Commitments in Section 1.01
of the Credit Agreement is hereby amended to read as follows:
Aggregate Revolving Commitments means the Revolving Commitments of
all the Lenders. The amount of the Aggregate Revolving Commitments in effect on the
Second Amendment Effective Date is FOUR HUNDRED SEVENTY-FIVE MILLION DOLLARS
($475,000,000).
(c) The definition of Applicable Rate in Section 1.01 of the Credit
Agreement is hereby amended to read as follows:
Applicable Rate means the following percentages per annum, based upon
the Consolidated Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section
7.02(a):
Revolving Loans | ||||||||||||||||||
Pricing | Consolidated | Commitment | Letter of | Eurodollar | Base Rate | |||||||||||||
Level | Leverage Ratio | Fee | Credit Fee | Loans | Loans | |||||||||||||
1
|
> 3.0 to 1.0 | 0.35 | % | 1.75 | % | 1.75 | % | 0.75 | % | |||||||||
2
|
> 2.25 to 1.0 but < 3.0 to 1.0 | 0.30 | % | 1.50 | % | 1.50 | % | 0.50 | % | |||||||||
3
|
> 1.50 to 1.0 but < 2.25 to 1.0 | 0.275 | % | 1.375 | % | 1.375 | % | 0.375 | % | |||||||||
4
|
> 1.00 to 1.0 but < 1.50 to 1.0 | 0.225 | % | 1.25 | % | 1.25 | % | 0.25 | % | |||||||||
5
|
> 0.50 to 1.0 but < 1.00 to 1.0 | 0.175 | % | 1.00 | % | 1.00 | % | 0.00 | % | |||||||||
6
|
< 0.50 to 1.0 | 0.150 | % | 0.875 | % | 0.875 | % | 0.00 | % |
Any increase or decrease in the Applicable Rate resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is required to be delivered
pursuant to Section 7.02(a); provided, however, that if a
Compliance Certificate is not delivered when due in accordance with such Section,
then Pricing Level 1 shall apply as of the first Business Day after the date on
which such Compliance Certificate was required to have been delivered and shall
continue to apply until the first Business Day immediately following the date a
Compliance Certificate is delivered in accordance with Section 7.02(a),
whereupon the Applicable Rate shall be adjusted based upon the calculation of the
Consolidated Leverage Ratio contained in such Compliance Certificate.
Notwithstanding the foregoing, the Applicable Rate in effect from the Second
Amendment Effective Date through the first Business Day immediately following the
date a Compliance Certificate is required to be delivered pursuant to Section
7.02(a) for the fiscal quarter ending September 30, 2007 shall be determined
based upon Pricing Level 4.
(d) The definition of Consolidated EBIT in Section 1.01 of the Credit
Agreement is hereby amended to read as follows:
Consolidated EBIT means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for
such period plus the following to the extent deducted in calculating such
Consolidated Net Income: (a) Consolidated Interest Expense for such period, (b) the
provision for taxes based on income or revenues payable by the Borrower and its
Subsidiaries for such period, (c) without duplication, Non-Cash Charges for such
period and (d) any professional fees, facility closure costs, legal fees and other
out-of-pocket fees and expenses incurred as a result of the Borrowers Acquisition
of InfraSource Services and
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its Subsidiaries; provided that the amounts referred to in this clause (d) (x)
shall not, in the aggregate, exceed $25,000,000 and (y) shall only be permitted to
be added back to Consolidated Net Income during any period in the first eighteen
(18) months following the First Amendment Effective Date, all as determined in
accordance with GAAP. Notwithstanding the foregoing, for purposes of calculating
Consolidated EBIT for any period, the amount of Consolidated EBIT attributable to
Foreign Subsidiaries for such period shall not exceed twenty percent (20%) of total
Consolidated EBIT.
(e) The definition of Consolidated EBITDA in Section 1.01 of the
Credit Agreement is hereby amended to read as follows:
Consolidated EBITDA means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to (a) Consolidated EBIT for
such period plus (b) the amount of depreciation and amortization expense for
such period (to the extent deducted in calculating Consolidated Net Income for such
period), all as determined in accordance with GAAP. Notwithstanding the foregoing,
for purposes of calculating Consolidated EBITDA for any period, the amount of
Consolidated EBITDA attributable to Foreign Subsidiaries for such period shall not
exceed twenty percent (20%) of total Consolidated EBITDA.
(f) Clause (ii) in the definition of Disposition in Section 1.01 of
the Credit Agreement is hereby amended to read as follows:
(ii) (a) the sale, lease, license, transfer or other disposition of machinery
and equipment (including vehicles) that is obsolete, uneconomical, surplus, worn out
or otherwise no longer used or useful in the conduct of business of the Borrower and
its Subsidiaries, or the retirement or replacement of any such assets (with assets
of equal or greater value) and (b) the lease or sublease of machinery and equipment
(including vehicles) to subcontractors in the ordinary course of business,
(g) The . at the end of the definition of Excluded Property in Section
1.01 of the Credit Agreement is hereby replaced with the word and, and the following
clauses (f), (g) and (h) are hereby added after clause (e) in such definition to read as
follows:
(f) the fractional interest of the Borrower or its Subsidiary in that certain
Raytheon Hawker 900XP aircraft (or any replacement thereof), (g) any owned real
Property of InfraSource Services or any of its Subsidiaries on the First Amendment
Effective Date having in the aggregate for all such real Properties a book value of
less than $3,000,000, and (h) the Capital Stock of any Foreign Subsidiary that is an
Immaterial Subsidiary and is acquired or formed on or after the First Amendment
Effective Date.
(h) The definition of Maturity Date in Section 1.01 of the Credit
Agreement is hereby amended to read as follows:
Maturity Date means September 19, 2012.
(i) The definition of Threshold Amount in Section 1.01 of the Credit
Agreement is hereby amended to read as follows:
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Threshold Amount means $15,000,000.
(j) The references to Sunesys, Inc. in Section 6.24 of the Credit Agreement
and Section 3.5(c) of the Pledge Agreement are each hereby amended to read as
Sunesys, LLC.
(k) The first paragraph of Article VII of the Credit Agreement is hereby
amended to read as follows:
So long as any Lender shall have any Revolving Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied (other than any contingent indemnity
obligations that, by their terms, survive the termination of this Agreement) or any Letter
of Credit shall remain outstanding, the Loan Parties shall and shall cause each Subsidiary
to:
(l) The second sentence of Section 7.14 of the Credit Agreement is hereby
amended to read as follows:
Without limiting the generality of the above, subject to the provisions of
Section 7.12 the Loan Parties will cause (a) 100% of the issued and
outstanding Capital Stock of each Domestic Subsidiary and (b) 65% (or such greater
percentage that, due to a change in an applicable Law after the date hereof, (1)
could not reasonably be expected to cause the undistributed earnings of such Foreign
Subsidiary as determined for United States federal income tax purposes to be treated
as a deemed dividend to such Foreign Subsidiarys United States parent and (2) could
not reasonably be expected to cause any material adverse tax consequences) of the
issued and outstanding Capital Stock entitled to vote (within the meaning of Treas.
Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Capital Stock not
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) that in
each case is directly owned by the Borrower or any Domestic Subsidiary in each
Foreign Subsidiary (other than any Immaterial Subsidiary acquired or formed on or
after the First Amendment Effective Date) to be subject at all times to a first
priority, perfected Lien in favor of the Administrative Agent pursuant to the terms
and conditions of the Collateral Documents or such other security documents as the
Administrative Agent shall reasonably request.
(m) The first paragraph of Article VIII of the Credit Agreement is hereby
amended to read as follows:
So long as any Lender shall have any Revolving Commitment hereunder, any Loan
or other Obligation hereunder shall remain unpaid or unsatisfied (other than any
contingent indemnity obligations that, by their terms, survive the termination of
this Agreement) or any Letter of Credit shall remain outstanding, no Loan Party
shall, nor shall it permit any Subsidiary to, directly or indirectly:
(n) Section 8.01(q) of the Credit Agreement is hereby amended to read as
follows:
(q) (i) Liens in favor of the Surety on the Surety Priority Collateral arising
pursuant to any of the Surety Credit Documents; provided that such Liens
remain subject to the terms of the Intercreditor Agreement, (ii) Liens (provided
that those of the Surety shall be subject to the terms of the Intercreditor
Agreement) arising as a matter of law which secure the obligations of the Borrower
or any Subsidiary under any surety bond
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provided in the ordinary course of business, (iii) Liens in favor of Arch
Insurance Company or any subsidiary or affiliate of Arch Insurance Company or any of
their respective co-sureties or reinsurers which secure the obligations of
InfraSource Services or any of its Subsidiaries under those certain surety bonds
identified on Schedule 8.03(e) and (iv) Liens which secure the obligations
of any Subsidiary (including any Person with which such Subsidiary is merged or
consolidated pursuant to the applicable Permitted Acquisition) that in either case
is acquired subsequent to the Second Amendment Effective Date pursuant to a
Permitted Acquisition under any surety bonds permitted under Section
8.03(e)(iv); provided that such Liens are terminated within one hundred
eighty (180) days of the date of such Permitted Acquisition; and
(o) The word and is hereby deleted from the end of Section 8.01(q) of the
Credit Agreement, Section 8.01(r) of the Credit Agreement is hereby renamed to be
Section 8.01(v) and new Sections 8.01(r), (s), (t) and
(u) are hereby added after Section 8.01(q) and prior to Section
8.01(v) of the Credit Agreement to read as follows:
(r) Liens on insurance policies and the proceeds thereof pursuant to insurance
premium financing arrangements;
(s) Liens on the assets of Foreign Subsidiaries in connection with financing
arrangements for their benefit that are not otherwise prohibited under this
Agreement;
(t) Liens on cash reserves securing Indebtedness of the Borrower and its
Subsidiaries in respect of surety bonds permitted by Section 8.03(e)(i);
provided that the aggregate amount of all such deposits and cash reserves
provided by the Borrower and its Subsidiaries in respect of surety bonds shall not,
at any time, exceed ten percent (10%) of the aggregate backlog of all contracts
covered by surety bonds;
(u) Liens on machinery and equipment in favor of contract counterparties
arising under contracts entered into in the ordinary course of business, provided
that such Liens (x) secure only future performance and (y) shall not secure any
surety bonds; and
(p) Section 8.01(r) of the Credit Agreement (which is being renamed to be
Section 8.01(v)) is hereby amended to read as follows:
(v) other Liens in an aggregate amount outstanding not exceeding $15,000,000 at
any time.
(q) Section 8.02(j) of the Credit Agreement is hereby amended to read as
follows:
(j) Investments in Foreign Subsidiaries in an amount not to exceed $50,000,000
in the aggregate at any time outstanding; and
(r) Section 8.02(k) of the Credit Agreement is hereby amended to read as
follows:
(k) any other Investments in an aggregate amount at any time outstanding not to
exceed the greater of (i) $50,000,000 and (ii) an amount equal to sum of (A) 7.5 %
of Consolidated Net Worth plus (B) the amount of Non-Cash Charges for each fiscal
quarter period ending after the Second Amendment Effective Date plus (C) the
aggregate amount of
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all repurchases or redemptions of shares of the Borrowers Capital Stock to the
extent permitted under Section 8.06(c).
(s) The word and is hereby deleted from the end of Section 8.02(j) of the
Credit Agreement, the . is hereby deleted from the end of Section 8.02(k) of the
Credit Agreement and new Sections 8.02(l) and (m) are hereby added after
Section 8.02(k) of the Credit Agreement to read as follows:
(l) Investments (including Indebtedness and Equity Interests) received in
connection with the bankruptcy or reorganization of suppliers and customers and in
settlement of delinquent obligations of, and other disputes with, customers and
suppliers arising in the ordinary course of business; and
(m) Investments by the Borrower or any Subsidiary in Swap Contracts permitted
under Section 8.03(d).
(t) Section 8.03(e) of the Credit Agreement is hereby amended to read as
follows:
(e) (i) obligations of the Borrower or any Subsidiary under surety bonds
provided in the ordinary course of business, (ii) obligations of the Borrower and
its Subsidiaries under the Surety Credit Documents; provided that such
obligations are subject to the terms of the Intercreditor Agreement, (iii)
obligations of InfraSource Services or any of its Subsidiaries with respect to the
surety bonds identified on Schedule 8.03(e), it being understood and agreed
that such surety bonds identified on Schedule 8.03(e) shall not be renewed
or extended and (iv) obligations of any Subsidiary of the Borrower (including any
Person with which such Subsidiary is merged or consolidated pursuant to the
applicable Permitted Acquisition) that in either case is acquired subsequent to the
Second Amendment Effective Date pursuant to a Permitted Acquisition with respect to
any surety bonds in existence at the time of the applicable Permitted Acquisition;
provided that such surety bonds are released or replaced with surety bonds
issued pursuant to the Surety Credit Documents and subject to the terms of the
Intercreditor Agreement within one hundred eighty (180) days of the date of such
Permitted Acquisition;
(u) Section 8.03(n) of the Credit Agreement is hereby amended to read as
follows:
(n) Guarantees with respect to Indebtedness permitted under clauses (a) through
(i), (p) and (q) of this Section 8.03;
(v) The . is hereby deleted from the end of Section 8.03(o) of the Credit
Agreement and new Sections 8.03(p) and (q) are hereby added after
Section 8.03(o) of the Credit Agreement to read as follows:
(p) Indebtedness in an aggregate principal amount not to exceed $5,000,000 of
all Foreign Subsidiaries; and
(q) Indebtedness of the Borrower or any of its Subsidiaries consisting of the
financing of insurance premiums in the ordinary course of business.
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(w) The . at the end of Section 8.04 of the Credit Agreement is hereby
deleted and replaced with ; and and a new subsection (f) is hereby added at the end of
Section 8.04 to read as follows:
(f) any Immaterial Subsidiary may liquidate, wind up or dissolve.
(x) The first paragraph of Section 8.05 of the Credit Agreement is hereby
amended to read as follows:
Make any Disposition unless (a) the consideration paid in connection therewith
shall be cash or Cash Equivalents paid contemporaneously with consummation of the
transaction and shall be in an amount not less than the fair market value of the
Property disposed of, (b) if such transaction is a Sale and Leaseback Transaction,
such transaction is not prohibited by the terms of Section 8.15, (c) such
transaction does not involve a sale or other disposition of receivables other than
receivables owned by or attributable to other Property concurrently being disposed
of in a transaction otherwise permitted under this Section 8.05, and (d) the
aggregate net book value of all of the assets sold or otherwise disposed of by the
Borrower and its Subsidiaries in all such transactions in any fiscal year of the
Borrower shall not exceed an amount equal to three percent (3%) of Consolidated Net
Worth (without giving effect to any deduction for Non-Cash Charges) as of the end of
the preceding fiscal year.
(y) Sections 8.06(c) and (d) of the Credit Agreement are each hereby
amended to read as follows:
(c) provided that (i) no Default or Event of Default exists immediately prior
to and after giving effect to any such dividend, purchase, redemption, acquisition
or retirement and (ii) the Consolidated Leverage Ratio on a Pro Forma Basis after
giving effect to such dividend, purchase, redemption, acquisition or retirement is
less than 2.50 to 1.00, the Borrower may make dividends and purchase, redeem,
acquire or retire shares of its Capital Stock of any class or any warrants or
options to purchase any such shares of its Capital Stock in an aggregate amount not
to exceed in any fiscal year an amount equal to the sum of, without duplication, (x)
ten percent (10%) of Consolidated Net Worth as of the fiscal quarter ending
September 30, 2007 plus (y) the amount of Non-Cash Charges for each fiscal quarter
ending after the Second Amendment Effective Date plus (z) fifty percent (50%) of
Consolidated Net Income for each fiscal quarter ending after the Second Amendment
Effective Date; and
(d) for the avoidance of doubt, the Borrower or any Subsidiary may make any
payment permitted by Section 8.12(b).
(z) The . is hereby deleted from the end of Section 8.06(d) of the Credit
Agreement and replaced with and and a new subsection (e) is hereby added at the end of
Section 8.06 of the Credit Agreement to read as follows:
(e) provided that no Default or Event of Default exists immediately prior to or
after giving effect to any such purchase, redemption, acquisition or retirement, the
Borrower may purchase, redeem, acquire or retire shares of its Capital Stock in an
aggregate amount not to exceed $270,000,000 in connection with any
issuance of shares of Capital Stock of the Borrower to holders of the 2003 Convertible
Subordinated
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Debentures in connection with any conversion of the 2003 Convertible
Subordinated Debentures to Capital Stock of the Borrower.
(aa) Section 8.11(a) of the Credit Agreement is hereby amended to read as
follows:
(a) [Intentionally omitted.]
(bb) The following sentence is hereby added at the end of Section 8.12(b) of
the Credit Agreement to read as follows:
Notwithstanding the foregoing, the Borrower may purchase any or all of its
Indebtedness under the 2000 Subordinated Indenture, the 2003 Convertible
Subordinated Debentures Documents, the 2006 Convertible Subordinated Notes Documents
and the documents governing any Permitted Subordinated Refinancing Indebtedness so
long as no Default or Event of Default shall have occurred and be continuing or
would occur as a result therefrom.
(cc) Section 8.14 of the Credit Agreement is hereby amended to read as follows:
8.14 Preferred Capital Stock.
Notwithstanding any other provisions of this Agreement to the contrary, (a) permit
any Subsidiary of the Borrower to issue or have outstanding any shares of preferred
Capital Stock (other than (i) the 485 shares of preferred Capital Stock issued by
Allteck Line Contractors, Inc. to the Borrower and (ii) the 3,499 shares of
preferred Capital Stock issued by Quanta Services of Canada Ltd. to the Borrower) or
(b) create, incur, assume or suffer to exist any Lien on any Capital Stock of any
Subsidiary of the Borrower, except for Permitted Liens.
(dd) Section 8.15 of the Credit Agreement is hereby amended to read as follows:
8.15 Sale Leasebacks.
Enter into any Sale and Leaseback Transaction other than (a) the sale and leaseback
of trucks and other equipment for immaterial amounts in the ordinary course of
business and (b) those Sale and Leaseback Transactions subsequent to the Second
Amendment Effective Date which do not exceed $50,000,000 in the aggregate based on
the net book value, at the time of the applicable transaction, of the assets subject
thereto.
(ee) Section 8.16 of the Credit Agreement is hereby amended to read as follows:
8.16 Capital Expenditures.
The Borrower and its Subsidiaries will not permit Consolidated Capital Expenditures
to exceed (a) $150,000,000 during the fiscal year ending December 31, 2007, (b)
$200,000,000 during the fiscal year ending December 31, 2008 and (c) during each
fiscal year thereafter an amount equal to fifty percent (50%) of Consolidated EBITDA
for the prior fiscal year; provided, however, up to $50,000,000 of the unused amount
for Consolidated Capital Expenditures for the fiscal year ending December 31, 2008
may be
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carried over and used to make Consolidated Capital Expenditures in the fiscal year
ending December 31, 2009.
(ff) Section 9.01(g) of the Credit Agreement is hereby amended to read as
follows:
(g) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries
(other than an Immaterial Subsidiary) institutes or consents to the institution of
any proceeding under any Debtor Relief Law, or makes an assignment for the benefit
of creditors; or applies for or consents to the appointment of any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it
or for all or any material part of its Property; or any receiver, trustee,
custodian, conservator, liquidator, rehabilitator or similar officer is appointed
without the application or consent of such Person and the appointment continues
undischarged or unstayed for sixty calendar days; or any proceeding under any Debtor
Relief Law relating to any such Person or to all or any material part of its
Property is instituted without the consent of such Person and continues undismissed
or unstayed for sixty calendar days, or an order for relief is entered in any such
proceeding; or
(gg) Section 9.01(h) of the Credit Agreement is hereby amended to read as
follows:
(h) Inability to Pay Debts; Attachment. (i) The Borrower or any Subsidiary
(other than an Immaterial Subsidiary) becomes unable or admits in writing its
inability or fails generally to pay its debts as they become due, or (ii) any writ
or warrant of attachment or execution or similar process is issued or levied against
all or any material part of the Property of any such Person and is not released,
vacated or fully bonded within thirty days after its issue or levy; or
(hh) Section 9.01(i) of the Credit Agreement is hereby amended to read as
follows:
(i) Judgments. There is entered against the Borrower or any Subsidiary
(other than an Immaterial Subsidiary) (i) one or more final judgments or orders for
the payment of money in an aggregate amount exceeding the Threshold Amount (to the
extent not covered by independent third-party insurance as to which the insurer does
not dispute coverage), and any such judgments or orders shall not have been paid,
discharged or bonded pending appeal (or the Borrower has not obtained an indemnity
against on terms and conditions satisfactory to the Lenders in their reasonable
discretion) within thirty (30) days from the entry thereof, or (ii) any one or more
non-monetary final judgments that have, or could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect and, in either case, (A)
enforcement proceedings are commenced by any creditor upon such judgment or order,
or (B) there is a period of ten consecutive days during which a stay of enforcement
of such judgment, by reason of a pending appeal or otherwise, is not in effect; or
(ii) Schedule 2.01 to the Credit Agreement is hereby amended to read as
provided on Schedule 2.01 attached hereto.
(jj) Schedule 8.02 to the Credit Agreement is hereby amended to read as
provided on Schedule 8.02 attached hereto.
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(kk) Section 1 of Schedule 11.02 to the Credit Agreement is hereby amended to
add the Borrowers website www.quantaservices.com.
2. Conditions Precedent. This Second Amendment shall be effective immediately upon
satisfaction of the following conditions precedent:
(a) Receipt by the Administrative Agent of counterparts of this Second Amendment duly
executed by each of the Borrower, the Guarantors, the Lenders and Bank of America, N.A., as
Administrative Agent.
(b) Receipt by the Administrative Agent of a certificate of a Responsible Officer of
the Borrower and each other Loan Party, in form and substance reasonably satisfactory to the
Administrative Agent and its legal counsel, (i) certifying that the Organization Documents
of each Loan Party delivered on the Closing Date have not been amended, supplemented or
otherwise modified since the Closing Date (except to the extent the Administrative Agent has
been notified thereof in accordance with the Credit Agreement) and remain in full force and
effect (as so amended, supplemented or otherwise modified, as applicable) as of the Second
Amendment Effective Date and (ii) attaching resolutions of each Loan Party approving and
adopting this Second Amendment, the transactions contemplated herein and authorizing the
execution and delivery of this Second Amendment and any documents, agreements or
certificates related thereto and certifying that such resolutions have not been amended,
supplemented or otherwise modified and remain in full force and effect as of the Second
Amendment Effective Date.
(c) Receipt by the Administrative Agent of favorable opinions of legal counsel to the
Loan Parties, addressed to the Administrative Agent and each Lender, dated as of the Second
Amendment Effective Date, in form and substance reasonably satisfactory to the
Administrative Agent.
(d) Receipt by the Administrative Agent and the Lenders of any fees and expenses
payable by the Borrower in connection with this Second Amendment.
3. Miscellaneous.
(a) The Credit Agreement and the obligations of the Loan Parties thereunder and under
the other Loan Documents, are hereby ratified and confirmed and shall remain in full force
and effect according to their terms.
(b) Upon the effectiveness of this Second Amendment, each reference in the Credit
Agreement to this Agreement, hereunder or words of like import shall mean and be a
reference to the Credit Agreement, as affected and amended by this Second Amendment.
(c) Each Guarantor (i) acknowledges and consents to all of the terms and conditions of
this Second Amendment, (ii) affirms all of its obligations under the Loan Documents as
affected and amended by this Second Amendment and (iii) agrees that this Second Amendment
and all documents executed in connection herewith do not operate to reduce or discharge its
obligations under the Credit Agreement or the other Loan Documents.
(d) The Borrower and the Guarantors hereby represent and warrant as follows:
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(i) Each Loan Party has taken all necessary action to authorize the execution,
delivery and performance of this Second Amendment;
(ii) This Second Amendment has been duly executed and delivered by the Loan
Parties and constitutes each of the Loan Parties legal, valid and binding
obligations, enforceable in accordance with its terms, except as such enforceability
may be subject to (A) bankruptcy, insolvency, reorganization, fraudulent conveyance
or transfer, moratorium or similar laws affecting creditors rights generally and
(B) general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity); and
(iii) No consent, approval, authorization or order of, or filing, registration
or qualification with, any court or governmental authority or third party is
required in connection with the execution, delivery or performance by any Loan Party
of this Second Amendment.
(e) The Loan Parties represent and warrant to the Lenders that (i) the representations
and warranties of the Loan Parties set forth in Article VI of the Credit Agreement
and in each other Loan Document are true and correct in all material respects as of the date
hereof with the same effect as if made on and as of the date hereof, except to the extent
such representations and warranties expressly relate solely to an earlier date and (ii) no
event has occurred and is continuing which constitutes a Default or an Event of Default.
(f) By executing this Second Amendment, each Lender identified as a New Lender on the
signature pages hereto hereby ratifies the terms and conditions of the Credit Agreement and
agrees to be bound by all of the terms and conditions of the Credit Agreement.
(g) This Second Amendment may be executed in any number of counterparts, each of which
when so executed and delivered shall be an original, but all of which shall constitute one
and the same instrument. Delivery of an executed counterpart of this Second Amendment by
telecopy shall be effective as an original and shall constitute a representation that an
executed original shall be delivered.
(h) THIS SECOND AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL
BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK.
[Signature pages follow]
11
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be duly executed
as of the date first above written.
BORROWER:
QUANTA SERVICES, INC., a Delaware corporation |
||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
GUARANTORS:
ARBY CONSTRUCTION, INC. AUSTIN TRENCHER, INC. CCLC, INC. CONTI COMMUNICATIONS, INC. CROCE ELECTRIC COMPANY, INC. DILLARD SMITH CONSTRUCTION COMPANY DRIFTWOOD ELECTRICAL CONTRACTORS, INC. GLOBAL ENERCOM MANAGEMENT, INC. GOLDEN STATE UTILITY CO. H.L. CHAPMAN PIPELINE CONSTRUCTION, INC. MANUEL BROS., INC. MEARS GROUP, INC. NETWORK ELECTRIC COMPANY NORTH SKY COMMUNICATIONS, INC. PARKSIDE SITE & UTILITY COMPANY CORPORATION PARKSIDE UTILITY CONSTRUCTION CORP. PWR FINANCIAL COMPANY QPC, INC. QSI, INC. QUANTA DELAWARE, INC. QUANTA GOVERNMENT SERVICES, INC. QUANTA GOVERNMENT SOLUTIONS, INC. QUANTA LX ACQUISITION, INC. QUANTA LXI ACQUISITION, INC. QUANTA LXII ACQUISITION, INC. QUANTA LXIII ACQUISITION, INC. QUANTA LXIV ACQUISITION, INC. QUANTA LXV ACQUISITION, INC. QUANTA LXVI ACQUISITION, INC. |
||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
QUANTA LXVII ACQUISITION, INC. QUANTA LXVIII ACQUISITION, INC. QUANTA LXIX ACQUISITION, INC. QUANTA LXX ACQUISITION, INC. QUANTA LXXI ACQUISITION, INC. QUANTA LXXII ACQUISITION, INC. QUANTA LXXIII ACQUISITION, INC. QUANTA SERVICES CONTRACTING, INC. QUANTA UNDERGROUND SERVICES, INC. QUANTA UTILITY INSTALLATION COMPANY, INC. QUANTA UTILITY SERVICES-GULF STATES, INC. QUANTA WIRELESS SOLUTIONS, INC. R.A. WAFFENSMITH & CO., INC. SPALJ CONSTRUCTION COMPANY SUMTER UTILITIES, INC. TOM ALLEN CONSTRUCTION COMPANY TTGP, INC. TTLP, INC. UNDERGROUND CONSTRUCTION CO., INC. UTILITY LINE MANAGEMENT SERVICES, INC. VCI TELCOM, INC. W.C. COMMUNICATIONS, INC., ADVANCED TECHNOLOGIES AND INSTALLATION CORPORATION ALLTECK LINE CONTRACTORS (USA), INC. POTELCO, INC. BRADFORD BROTHERS, INCORPORATED TTM, INC. CMI SERVICES, INC. TRAWICK CONSTRUCTION COMPANY, INC. FIBER TECHNOLOGIES, INC. VCS SUB, INC. FIVE POINTS CONSTRUCTION CO. MEJIA PERSONNEL SERVICES, INC. SOUTHWEST TRENCHING COMPANY, INC. INTERMOUNTAIN ELECTRIC, INC. IRBY CONSTRUCTION COMPANY METRO UNDERGROUND SERVICES, INC. OF ILLINOIS PROFESSIONAL TELECONCEPTS, INC. |
||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
PAR ELECTRICAL CONTRACTORS, INC. PROFESSIONAL TELECONCEPTS, INC. THE RYAN COMPANY, INC. |
||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QDE LLC |
||||
By: | PWR Financial Company, | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA ASSET MANAGEMENT LLC |
||||
By: | QSI, Inc., its sole member |
|||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
TOTAL QUALITY MANAGEMENT SERVICES, LLC |
||||
By: | VCS Sub, Inc., its sole member | |||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
QUANTA UTILITY SERVICES, LLC |
||||
By: | Mejia Personnel Services, Inc., | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
TJADER, L.L.C. OKAY CONSTRUCTION COMPANY, LLC |
||||
By: | Spalj Construction Company, | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
MEARS/CPG LLC MEARS ENGINEERING/ LLC MEARS/HDD, LLC MEARS SERVICES LLC |
||||
By: | Mears Group, Inc., | |||
the sole member of each of the foregoing | ||||
limited liability companies | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
S.K.S. PIPELINERS, LLC |
||||
By: | Arby Construction, Inc., | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
TNS-VA, LLC |
||||
By: | Professional Teleconcepts, Inc., | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
NORTH HOUSTON POLE LINE, L.P. LINDSEY ELECTRIC, L.P. DIGCO UTILITY CONSTRUCTION, L.P. |
||||
By: | Mejia Personnel Services, Inc., | |||
its general partner | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA SERVICES MANAGEMENT PARTNERSHIP, L.P. QUANTA ASSOCIATES, L.P. |
||||
By: | QSI, Inc., | |||
its general partner | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
TRANS TECH ELECTRIC, L.P. |
||||
By: | TTGP, Inc., | |||
its general partner | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
PWR NETWORK, LLC |
||||
By: | PWR Financial Company, | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA RECEIVABLES, LP |
||||
By: | PWR Network, LLC, | |||
its general partner | ||||
By: | PWR Financial Company, | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
SPECTRUM CONSTRUCTION CONTRACTING, L.L.C. |
||||
By: | Conti Communications, Inc., | |||
its sole member | ||||
By: | /s/ Nicholas M. Grindstaff | |||
Name: | Nicholas M. Grindstaff | |||
Title: | Treasurer | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
ADMINISTRATIVE AGENT: |
BANK OF AMERICA, N.A., as Administrative Agent |
|||
By: | /s/ Rosanne Parsill | |||
Name: | Rosanne Parsill | |||
Title: | Assistant Vice President | |||
LENDERS: |
BANK OF AMERICA, N.A., as a Lender, Swing Line Lender and L/C Issuer |
|||
By: | /s/ Gary L. Mingle | |||
Name: | Gary L. Mingle | |||
Title: | Senior Vice-President | |||
WACHOVIA BANK, N.A., as a Lender |
||||
By: | /s/ Michael R. Quiray | |||
Name: | Michael R. Quiray | |||
Title: | Vice President | |||
CALYON NEW YORK BRANCH, as a Lender |
||||
By: | /s/ Samuel L. Hill | |||
Name: | Samuel L. Hill | |||
Title: | Managing Director/Region Head | |||
By: | /s/ Robert S. Smith | |||
Name: | Robert S. Smith | |||
Title: | Managing Director | |||
WELLS FARGO BANK, N.A. , as a Lender |
||||
By: | /s/ H. Michael Sultanik | |||
Name: | H. Michael Sultanik | |||
Title: | Vice President | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, as a Lender |
||||
By: | /s/ Brian N. Thomas | |||
Name: | Brian N. Thomas | |||
Title: | Vice President | |||
PRUCO LIFE INSURANCE COMPANY, as a Lender |
||||
By: | /s/ Brian N. Thomas | |||
Name: | Brian N. Thomas | |||
Title: | Vice President | |||
BMO CAPITAL MARKETS FINANCING, INC., as a New Lender |
||||
By: | /s/ John Armstrong | |||
Name: | John Armstrong | |||
Title: | Vice President | |||
JPMORGAN CHASE BANK, N.A., as a Lender |
||||
By: | /s/ R. Michael Arnett | |||
Name: | R. Michael Arnett | |||
Title: | Vice President | |||
COMPASS BANK, as a Lender |
||||
By: | /s/ Tom Brosig | |||
Name: | Tom Brosig | |||
Title: | Senior Vice President | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
MIDFIRST BANK, as a Lender |
||||
By: | /s/ Shawn D. Brewer | |||
Name: | Shawn D. Brewer | |||
Title: | Vice President | |||
PNC BANK, NATIONAL ASSOCIATION, as a New Lender |
||||
By: | /s/ W. J. Bowne | |||
Name: | W. J. Bowne | |||
Title: | Managing Director | |||
CREDIT SUISSE, as a Lender |
||||
By: | /s/ Vanessa Gomez | |||
Name: | Vanessa Gomez | |||
Title: | Vice President | |||
By: | /s/ Morenikeji Ajayi | |||
Name: | Morenikeji Ajayi | |||
Title: | Associate | |||
AMEGY BANK NATIONAL ASSOCIATION, as a Lender |
||||
By: | /s/ Laif Afseth | |||
Name: | Laif Afseth | |||
Title: | Senior Vice President | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES, as a Lender |
||||
By: | /s/ Edward C. A. Forsberg, Jr. | |||
Name: | Edward C. A. Forsberg, Jr. | |||
Title: | Senior Vice President & Manager | |||
By: | /s/ David A. Bennett | |||
Name: | David A. Bennett | |||
Title: | Vice President | |||
NORTH FORK BUSINESS CAPITAL CORP., as a Lender |
||||
By: | /s/ Ron Walker | |||
Name: | Ron Walker | |||
Title: | Vice President | |||
WEBSTER BANK, NATIONAL ASSOCIATION, as a Lender |
||||
By: | /s/ Gail Bruhn | |||
Name: | Gail Bruhn | |||
Title: | Sr. Vice President | |||
MB FINANCIAL BANK, N.A. as a Lender |
||||
By: | /s/ Henry Wessel | |||
Name: | Henry Wessel | |||
Title: | Vice President | |||
FIRSTRUST BANK, as a Lender |
||||
By: | /s/ Ellen Frank | |||
Name: | Ellen Frank | |||
Title: | Vice President | |||
QUANTA SERVICES, INC.
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
SECOND AMENDMENT TO AMENDED
AND RESTATED CREDIT AGREEMENT
Schedule 2.01
REVOLVING COMMITMENTS AND PRO RATA SHARES
Pro Rata Share of | ||||||||
Revolving | Revolving | |||||||
Lenders | Commitment | Commitment | ||||||
Bank of America, N.A. |
$ | 65,000,000 | 13.684210526 | % | ||||
Wachovia Bank, N.A. |
$ | 52,500,000 | 11.052631579 | % | ||||
Calyon New York Branch |
$ | 40,000,000 | 8.421052632 | % | ||||
Wells Fargo Bank, N.A. |
$ | 40,000,000 | 8.421052632 | % | ||||
The Prudential Insurance Company of America |
$ | 28,772,727 | 6.057416211 | % | ||||
Pruco Life Insurance Company |
$ | 8,727,273 | 1.837320632 | % | ||||
BMO Capital Markets |
$ | 32,500,000 | 6.842105263 | % | ||||
JPMorgan Chase Bank, N.A. |
$ | 32,500,000 | 6.842105263 | % | ||||
Compass Bank |
$ | 27,500,000 | 5.789473684 | % | ||||
MidFirst Bank |
$ | 25,000,000 | 5.263157895 | % | ||||
PNC Bank, National Association |
$ | 25,000,000 | 5.263157895 | % | ||||
Credit Suisse, Cayman Islands
Branch |
$ | 20,000,000 | 4.210526316 | % | ||||
Amegy Bank National Association |
$ | 20,000,000 | 4.210526316 | % | ||||
Commerzbank AG, New York and
Grand Cayman Branches |
$ | 20,000,000 | 4.210526316 | % | ||||
North Fork |
$ | 15,000,000 | 3.157894737 | % | ||||
Webster Bank, National
Association |
$ | 10,000,000 | 2.105263158 | % | ||||
MB Financial Bank, N.A. |
$ | 7,500,000 | 1.578947368 | % | ||||
Firstrust Bank |
$ | 5,000,000 | 1.052631579 | % | ||||
Total |
$ | 475,000,000 | 100.000000000 | % |
Schedule 8.02
INVESTMENTS EXISTING ON THE SECOND AMENDMENT EFFECTIVE DATE
All Investments existing on the Second Amendment Effective Date in:
| Pivotel, LLC, a Delaware limited liability company (or any of its successors or assigns) in an aggregate amount of approximately $500,000; and | |
| Foreign Subsidiaries existing on or prior to the Second Amendment Effective Date in an aggregate amount of approximately $10 million as of the Second Amendment Effective Date, including, without limitation, Investments in: |
Allteck Line Contractors, Inc., a British Columbia corporation (or any of its
successors or assigns) (including, without limitation, pursuant to that certain
letter of credit no. 3048269 for the benefit of Bank of Nova Scotia in the amount of
$3,000,000);
Quanta Services of Canada Ltd., a British Columbia limited company (or any of its
successors or assigns);
Mears Canada Corp., a Nova Scotia corporation (or any of its successors or assigns);
Mearsmex S. de R.L. de C.V., a sociedad de responsabilidad limitada de capital
variable organized under the laws of Mexico (or any of its successors or assigns);
Par Internacional, S. de R.L. de C.V., a sociedad de responsabilidad limitada de
capital variable organized under the laws of Mexico (or any of its successors or
assigns);
Servicios Par Electric, S. de R.L. de C.V., a sociedad de responsabilidad limitada
de capital variable organized under the laws of Mexico (or any of its successors or
assigns);
Quanta International Limited, an international business company organized under the
laws of the British Virgin Islands (or any of its successors or assigns);
InfraSource Services (Canada), ULC, an Alberta company (or any of its successors or
assigns);
InfraSource Power (Canada) Inc., an Alberta company (or any of its
successors or assigns); and
EHV Elecon, Inc., a Puerto Rican company (or any of its successors or
assigns).