Second Amendment to Secured Super-Priority Debtor-In- Possession Revolving Credit and Guaranty Agreement

 

Exhibit 4.1
SECOND AMENDMENT TO SECURED SUPER-PRIORITY DEBTOR-IN-
POSSESSION
          SECOND AMENDMENT TO SECURED SUPER-PRIORITY DEBTOR-IN-POSSESSION , dated as of April 26, 2006 (this “Amendment”), to that certain SecuredSuper-Priority Debtor-In-Possession , dated as of February11, 2005, as amended by that certain First Amendment to Secured Super-Priority Debtor-In-Possession, dated as of December 23, 2005 (as amended, supplemented,or otherwise modified from time to time, the “Credit Agreement”; capitalized terms used herein butnot otherwise defined herein shall have the meanings given such terms in the Credit Agreement),among Kaiser Aluminum & Chemical Corporation, a Delaware corporation as a debtor anddebtor-in-possession in a case pending under Chapter 11 of the Bankruptcy Code (“Company”), KaiserAluminum Corporation, a Delaware corporation and a debtor and debtor-in-possession in a casepending under Chapter 11 of the Bankruptcy Code (“Parent”) and each of their respectivesubsidiaries party thereto (the “Subsidiary Borrowers”, and together with Company and Parent, eacha “Borrower” and collectively, “Borrowers”), certain of the direct or indirect subsidiaries ofBorrowers party thereto (each a “Guarantor” and collectively, “Guarantors”), the Lenders partythereto and JPMorgan Chase Bank, National Association, as administrative agent for the Lenders (insuch capacity, “Agent”).
W I T N E S S E T H:
          WHEREAS, Borrowers, Guarantors, the Lenders named therein and Agent have entered into theCredit Agreement;
          WHEREAS, Borrowers have asked Lenders to extend the Maturity Date of the Credit Agreement (i)initially, to May 17, 2006, and (ii) subsequently, to August 31, 2006; and
          WHEREAS, Lenders are willing to consent to both extensions of the Maturity Date of the CreditAgreement and grant such amendment to the Credit Agreement on the terms and subject to theconditions set forth herein;
          NOW, THEREFORE, in consideration of the premises and the agreements herein contained,Borrowers, Guarantor, Lenders, and Agent hereby agree as follows:
ARTICLE I
AMENDMENTS TO CREDIT AGREEMENT
          Section 1.1 Immediately upon the occurrence of the First Effective Date (as defined in ArticleII below), the definition of “Maturity Date” in Section 1.01 to the Credit Agreement shall beamended and restated in its entirety as follows:
          “Maturity Date” shall mean May 17, 2006.
          Section 1.2 Immediately upon the occurrence of the Second Effective Date (as defined inArticle II below), the definition of “Maturity Date” in Section 1.01 to the Credit Agreement shallbe further amended and restated in its entirety as follows:
          “Maturity Date” shall mean August 31, 2006.

 


 

Second Amendment
ARTICLE II
CONDITIONS TO CLOSING
          Section 2.1 The first date on which each of the following conditions are satisfied shall bethe “First Effective Date”:
               (a) Second Amendment. Agent shall have received a duly executed counterpart of thisAmendment from each of the Borrowers, each of the Guarantors and each of the Lenders;
               (b) Second Amendment Fee Letter. Agent shall have received a duly executedcounterpart of that certain Second Amendment Fee Letter, dated the date hereof, among Agent, Parentand Company;
               (c) Amendment No. 2 to Commitment Letter. Agent shall have received a duly executedcounterpart of that certain Amendment No. 2 to Commitment Letter, dated the date hereof, amongAgent, Parent, Company, J.P. Morgan Securities Inc. (“JPMSI”) and CIT Group/Business Credit, Inc.(“CIT”);
               (d) Amendment No. 1 to Amended and Restated Fee Letter. Agent shall have received aduly executed counterpart of that certain Amendment No. 1 to Amended and Restated Fee Letter, datedthe date hereof, among Agent, Parent, Company and JPMSI; and
               (e) Extension Stipulation. Agent shall have received a certified copy of astipulation executed by the Borrowers and Agent and approved by the Bankruptcy Court insubstantially the form of Exhibit A attached hereto (the “Extension Stipulation”), whichExtension Stipulation shall be in full force and effect and shall not have been vacated, stayed,reversed, modified or amended in any respect.
          Section 2.2 The first date on which each of the conditions set forth in Section 2.1 and eachof the following additional conditions are satisfied shall be the “Second Effective Date”:
               (a) Amendment No. 3 to Commitment Letter. Agent shall have received a duly executedcounterpart of that certain Amendment No. 3 to Commitment Letter, dated the date hereof, amongAgent, Parent, Company, JPMSI and CIT;
               (b) Amendment No. 2 to Amended and Restated Fee Letter. Agent shall have received aduly executed counterpart of that certain Amendment No. 2 to Amended and Restated Fee Letter, datedthe date hereof, among Agent, Parent, Company and JPMSI; and
               (c) Extension Order. Agent shall have received a certified copy of a final,non-appealable order of the Bankruptcy Court approving this Amendment and the Amendment No. 2 toAmended and Restated Fee Letter referenced in Section 2.2(b), in substantially a form acceptable tothe Agent in its sole discretion (the “Extension Order”), which Extension Order shall be in fullforce and effect and shall not have been vacated, stayed, reversed, modified or amended in anyrespect.

 


 

Second Amendment
ARTICLE III
MISCELLANEOUS
          Section 3.1 Effect of Amendment. Except as expressly set forth herein, this Amendmentshall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affectthe rights and remedies of Agent or any Lender under the Loan Documents, and shall not alter,modify,amend or in any way affect any of the terms, conditions, obligations, covenants or agreementscontained in the Loan Documents, all of which are ratified and affirmed in all respects and shallcontinue in full force and effect except that, on and after the effectiveness of this Amendment,each reference to the Credit Agreement in the Loan Documents shall mean and be a reference to theCredit Agreement as amended by this Amendment. Nothing herein shall be deemed to entitle anyBorrower to a consent to, or a waiver, amendment, modification or other change of, any of theterms, conditions, obligations, covenants or agreements contained in the Loan Documents in similaror different circumstances. This Amendment is a Loan Document executed pursuant to the CreditAgreement and shall be construed, administered and applied in accordance with the terms andprovisions thereof.
          Section 3.2 No Representations by Lenders or Agent. Borrowers hereby acknowledge thatthey have not relied on any representation, written or oral, express or implied, by any Lender orAgent, other than those expressly contained herein, in entering into this Amendment.
          Section 3.3 Representations of Borrowers and Guarantors. Each Borrower and Guarantorrepresents and warrants to Agent and Lenders that, as of the date hereof, as of the First EffectiveDate and as of the Second Effective Date: (a) (i) it is duly organized and validly existing underthe laws of the State of its organization and is duly qualified as a foreign organization and is ingood standing in each jurisdiction in which the failure to so qualify would reasonably be expectedto have a Material Adverse Effect, and (ii) subject to the entry by the Bankruptcy Court of theExtension Stipulation or the Extension Order, as applicable, it has the requisite corporate powerand authority to effect the transactions contemplated hereby, and by the other Loan Documents towhich it is a party; (b) the execution, delivery and performance by it of this Amendment (i) iswithin its organizational powers, has been duly authorized by all necessary organizational action,and does not (A) contravene its charter or by-laws or other constituent documents, (B) violate anylaw or regulation, or any order or decree of any court or Governmental Authority applicable to it,(C) conflict with or result in a breach of, or constitute a default under, any material indenture,mortgage or deed of trust entered into after the applicable Filing Date or any material lease,agreement or other instrument entered into after the applicable Filing Date binding on it or any ofits properties, or (D) result in or require the creation or imposition of any Lien upon any of itsproperty other than the Liens granted pursuant to the Loan Documents, the Order, the ExtensionStipulation or the Extension Order; and (ii) does not require the consent, authorization by orapproval of or notice to or filing or registration with any Governmental Authority, other than theentry of the Extension Stipulation or the Extension Order, as applicable; (c) this Amendment hasbeen duly executed and delivered by it; and (d) this Amendment is a legal, valid and bindingobligation of such Borrower or Guarantor, enforceable against it in accordance with its terms andthe Order. Each Borrower and Guarantor further represents and warrants to Agent and Lenders that,as of the date hereof, as of the First Effective Date and as of the Second Effective Date, andafter giving effect to this Amendment, (a) the representations and warranties set forth in the LoanDocuments are true and correct in all material respects on and as of the date hereof, as of theFirst Effective Date or as of the Second Effective Date, as applicable, with the same effect asthough made on such date, except to the extent that such representations and warranties expresslyrelate to an earlier date, in which case such

 


 

Second Amendment
representations and warranties were true as of suchearlier date and (b) no Default or Event of Default has occurred and is continuing.
          Section 3.4 Successors and Assigns. This Amendment shall be binding upon the partieshereto and their respective successors and assigns and shall inure to the benefit of the partieshereto and the successors and assigns of Lenders and Agent.
          Section 3.5 Headings. Section headings used herein are for convenience only and arenot to affect the construction of or be taken into consideration in interpreting this Amendment.
          Section 3.6 Severability. Any provision of this Amendment which is prohibited orunenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent ofsuch prohibition or unenforceability without invalidating the remaining provisions hereof, and anysuch prohibition or unenforceability in any jurisdiction shall not invalidate or renderunenforceable such provision in any other jurisdiction.
          Section 3.7 Counterparts. This Amendment may be executed in any number ofcounterparts, each of which shall constitute an original, but all of which taken together shallconstitute one and the same instrument. Delivery of an executed counterpart of a signature page tothis Amendment by facsimile shall be effective as delivery of a manually executed counterpart ofthis Amendment.
          Section 3.8 Governing Law. THIS AMENDMENT SHALL IN ALL RESPECTS BE CONSTRUED INACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION,SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND (TO THE EXTENT APPLICABLE)THE BANKRUPTCY CODE.
          Section 3.9 Costs and Expenses. Whether or not the transactions hereby contemplatedshall be consummated, Borrowers shall pay all reasonable out-of-pocket expenses (including, withoutlimitation, expenses incurred in connection with due diligence) of Agent associated with thisAmendment, including the reasonable out-of-pocket fees and expenses of Agent’s counsel.
          Section 3.10 Ratification of Guaranties. Each Guarantor hereby consents to thisAmendment and hereby confirms and agrees that notwithstanding the effectiveness of this Amendment,the guarantee made by such Guarantor pursuant to Section 9 of the Credit Agreement is, and shallcontinue to be, in full force and effect and is hereby ratified and confirmed in all respects,except that, on and after the effectiveness of this Amendment, each reference to the CreditAgreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.
[Remainder of this page is intentionally left blank.]

 


 

Second Amendment
          IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed anddelivered as of the date first above written.
                 
    BORROWERS:    
 
               
    KAISER ALUMINUM CORPORATION    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER ALUMINUM & CHEMICAL CORPORATION    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER ALUMINIUM INTERNATIONAL, INC.    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER BELLWOOD CORPORATION    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    GUARANTORS:    
 
               
    KAISER ALUMINUM & CHEMICAL INVESTMENT, INC.    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER ALUMINUM PROPERTIES, INC.    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    

 


 

Second Amendment
                 
    KAISER ALUMINUM TECHNICAL    
      SERVICES, INC.    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    ALWIS LEASING, LLC    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER CENTER, INC.    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER CENTER PROPERTIES    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    OXNARD FORGE DIE COMPANY, INC.    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    AKRON HOLDING CORPORATION    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER TEXAS MICROMILL HOLDINGS, LLC    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    

 


 

Second Amendment
                 
    KAISER MICROMILL HOLDINGS, LLC    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER SIERRA MICROMILLS, LLC    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER TEXAS SIERRA MICROMILLS, LLC    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAE TRADING, INC.    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    
 
               
    KAISER EXPORT COMPANY    
 
               
 
  By:            
             
 
      Name:   Daniel J. Rinkenberger    
 
      Title:   Vice President and Treasurer    

 


 

Second Amendment
                 
    JPMORGAN CHASE BANK, NATIONAL ASSOCIATION,    
    Individually and as Agent and Lender    
 
               
 
  By:            
             
 
      Name:   Devin Mock    
 
      Title:   Vice President    
 
               
    1717 Main Street, LL1    
    Dallas, TX 75201    

 


 

Second Amendment
                 
    LENDER:    
 
               
    THE CIT GROUP/BUSINESS CREDIT, INC.    
 
               
 
  By:            
             
 
      Name:        
 
      Title:        

 


 

Second Amendment
                 
    LENDER:    
 
               
    MERRILL LYNCH CAPITAL,A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.    
 
               
 
  By:            
             
 
      Name:        
 
      Title:        

 


 

Second Amendment
                 
    LENDER:    
 
               
    WACHOVIA BANK, NA    
 
               
 
  By:            
             
 
      Name:        
 
      Title:        

 


 

Second Amendment
                 
    LENDER:    
 
               
    BANK OF AMERICA, N.A.    
 
               
 
  By:            
             
 
      Name:        
 
      Title:        

 


 

Second Amendment
                 
    LENDER:    
 
               
    WELLS FARGO FOOTHILL, LLC    
 
               
 
  By:            
             
 
      Name:        
 
      Title:        

 


 

Second Amendment
                 
    LENDER:    
 
               
    UBS AG, STAMFORD BRANCH    
 
               
 
  By:            
             
 
      Name:        
 
      Title:        

 


 

Second Amendment
                 
    LENDER:    
 
               
    GMAC COMMERCIAL FINANCE LLC    
 
               
 
  By:            
             
 
      Name:        
 
      Title:        

 


 

Second Amendment
EXHIBIT A
Extension Stipulation
(attached hereto)