UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report: (Date of earliest event reported) November 27, 2013

 

 

OCI Partners LP

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-36098   90-0936556

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

Mailing Address:   Physical Address:

P.O. Box 1647

Nederland, Texas 77627

 

5470 N. Twin City Highway

Nederland, Texas 77627

(Address of principal executive offices and zip code)

(409) 723-1900

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01 Entry into a Material Definitive Agreement.

OCI USA Equity Commitment

In connection with the financing transactions described in Item 2.03 of this Current Report on Form 8-K, on November 27, 2013, OCI USA Inc. (“OCI USA”) and OCI Partners LP (the “Partnership”) entered into a letter agreement providing for OCI USA’s obligation to make equity contributions to the Partnership under certain circumstances (the “Commitment Letter”). Pursuant to the Commitment Letter, (i) if prior to the completion of the Partnership’s debottlenecking project in 2014, the Partnership or OCI Beaumont LLC (“OCIB”) have liquidity needs for working capital or other purposes and the restrictions under the Term Loan Facility (as defined below) or any other debt instruments of the Partnership or OCIB prohibit the Partnership or OCIB from incurring sufficient additional debt to fund such liquidity needs, then upon notice from the Partnership, OCI USA (or an affiliate designated by OCI USA) shall provide such liquidity to the extent of such needs in the form of an equity contribution to the Partnership and (ii) in the event OCIB fails to comply with any of the financial covenants contained in the Term Loan Facility as of the last day of any fiscal quarter, then upon notice from the Partnership, OCI USA (or an affiliate designated by OCI USA that is not a party to the Term Loan Facility) shall make cash contributions to the Partnership as common equity in the amount of the cure amount and by the date required by the Term Loan Facility, so that the Partnership can further contribute such funds to OCIB to cure such non-compliance, subject to and in accordance with the terms and conditions of the Term Loan Facility. OCI USA shall not be obligated to make aggregate equity contributions to the Partnership in excess of $100.0 million pursuant to the Commitment Letter.

The foregoing description of the Commitment Letter is not complete and is qualified in its entirety by reference to the full text of the Commitment Letter, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated into this Item 1.01 by reference.

Amendment No. 1 to Term Loan Credit Agreement

The description of Amendment No. 1 (as defined below) provided under Item 2.03 of this Current Report on Form 8-K is incorporated into this Item 1.01 by reference. A copy of Amendment No. 1 is filed as Exhibit 10.2 to this Current Report on Form 8-K and is incorporated herein by reference.

Amendment No. 1 to Intercompany Term Facility Agreement

The description of the Intercompany Facility Amendment (as defined below) provided under Item 2.03 of this Current Report on Form 8-K is incorporated into this Item 1.01 by reference. A copy of the Intercompany Facility Amendment is filed as Exhibit 10.3 to this Current Report on Form 8-K and is incorporated herein by reference.

 

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

Amendment No. 1 to Term Loan Credit Agreement

On November 27, 2013, OCI USA, OCIB and the Partnership entered into Amendment No. 1 (“Amendment No. 1”) to the Term Loan Credit Agreement, dated August 20, 2013 (as so amended, the “Term Loan Facility”), with Bank of America, N.A., as administrative agent, collateral agent and incremental term loan lender, and the other lenders party thereto. Pursuant to the terms of Amendment No. 1, OCIB borrowed $165.0 million in incremental term loans (the “Incremental Term Loans”) under the Term Loan Facility. The Incremental Term Loans have terms and provisions identical to the existing term loans (the “Existing Term Loans”) outstanding under the Term Loan Facility, and the Incremental Term Loans and the Existing Term Loans collectively comprise a single tranche of Term B-2 Loans under the Term Loan Facility (the “Term B-2 Loans”). OCIB will use the proceeds from the Incremental Term Loans to (i) repay all of its outstanding intercompany indebtedness under the Intercompany Term Facility (as defined below) (such repayment of intercompany indebtedness, the “Intercompany Repayment”) and (ii) pay fees and expenses related to the foregoing repayment and the Incremental Term Loans. Amendment No. 1 also adjusted the amortization schedule for the Term B-2 Loans to encompass the new tranche composed of the Incremental Term Loans. In addition, Amendment No. 1 clarified that the maximum principal amount of Incremental Term Loans that may be incurred under the Term Loan Facility is the sum of (and not the greater of) (a) $100.0 million and (b) such other amount such that, after giving effect on a pro forma basis to any such incremental facility and other applicable pro forma adjustments, the first lien net leverage ratio is equal to or less than 1.25 to 1.00.

The Term B-2 Loans, as well as related fees and expenses, are unconditionally guaranteed by the Partnership. The Term B-2 Loans mature on August 20, 2019 and are subject to certain mandatory prepayment obligations upon the disposition of certain assets and the incurrence of certain indebtedness. The Term B-2 Loans, and related fees and expenses, are secured by a first priority lien on substantially all of OCIB’s assets and a pledge by the Partnership of its ownership interest in OCIB. The Term B-2 Loans are subject to mandatory repayments of 0.25% of the aggregate principal amount outstanding at the end of each fiscal quarter. Interest on the Term B-2 Loans accrues, at OCIB’s option, at adjusted LIBOR plus 5.00% per annum or the alternate base rate plus 4.00%, but if


OCIB has received both (a) a corporate credit rating of B from S&P and (b) a corporate family rating of Ba3 from Moody’s (in each case with at least a stable outlook), or better, such rates will immediately be reduced by 0.50% until such time, if any, as such ratings are no longer in effect. The Term Loan Facility contains customary covenants and conditions. Upon the occurrence of certain events of default under the Term Loan Facility, OCIB’s obligations under the Term Loan Facility may be accelerated. In addition, OCIB may not permit, on the last day of any fiscal quarter, (i) the consolidated senior secured net leverage ratio to exceed (x) in the case of each fiscal quarter ending prior to March 31, 2015, 2.00 to 1.00 and (y) in the case of the fiscal quarter ending March 31, 2015 and each fiscal quarter ending thereafter, 1.75 to 1.00, and (ii) the consolidated interest coverage ratio on the last day of any fiscal quarter to be less than 5.00 to 1.00.

The foregoing description of Amendment No. 1 is not complete and is qualified in its entirety by reference to the full text of Amendment No. 1, which is filed as Exhibit 10.2 to this Current Report on Form 8-K and incorporated into this Item 2.03 by reference.

Amendment No. 1 to Intercompany Term Facility Agreement

In connection with the Intercompany Repayment from the proceeds of the Incremental Term Loans described above, on November 27, 2013, OCIB entered into Amendment No. 1 (the “Intercompany Facility Amendment”) to the Intercompany Term Facility Agreement, dated September 15, 2013 (as so amended, the “Intercompany Term Facility”), with OCI Fertilizer International B.V. (“OCI Fertilizer”). Pursuant to the Intercompany Facility Amendment, OCI Fertilizer agreed to lend up to $100.0 million to OCIB after the effectiveness of the Intercompany Repayment. Borrowings under the Intercompany Term Facility bear interest at an interest rate equal to the sum of (i) the rate per annum applicable to the Term B-2 Loans discussed above, plus (ii) 0.25%.

The foregoing description of the Intercompany Facility Amendment is not complete and is qualified in its entirety by reference to the full text of the Intercompany Facility Amendment, which is filed as Exhibit 10.3 to this Current Report on Form 8-K and incorporated into this Item 2.03 by reference.

 

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit No.

  

Description

10.1    Letter Agreement, dated as of November 27, 2013, by and between OCI USA Inc. and OCI Partners LP
10.2    Amendment No. 1 to Term Loan Credit Agreement, dated as of November 27, 2013, among OCI USA Inc., OCI Beaumont LLC, OCI Partners LP, Bank of America, N.A., as administrative agent, collateral agent and incremental term loan lender, and the other lenders party thereto
10.3    Amendment No. 1 to Intercompany Term Facility Agreement, dated as of November 27, 2013, by and among OCI Fertilizer International B.V. and OCI Beaumont LLC


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

        OCI Partners LP
    By: OCI GP LLC, its general partner
Dated: November 27, 2013     By:   /s/ Frank Bakker
      Frank Bakker
      President and Chief Executive Officer


EXHIBIT INDEX

 

Exhibit No.

  

Description

10.1    Letter Agreement, dated as of November 27, 2013, by and between OCI USA Inc. and OCI Partners LP
10.2    Amendment No. 1 to Term Loan Credit Agreement, dated as of November 27, 2013, among OCI USA Inc., OCI Beaumont LLC, OCI Partners LP, Bank of America, N.A., as administrative agent, collateral agent and incremental term loan lender, and the other lenders party thereto
10.3    Amendment No. 1 to Intercompany Term Facility Agreement, dated as of November 27, 2013, by and among OCI Fertilizer International B.V. and OCI Beaumont LLC

Exhibit 10.1

OCI USA Inc.

660 Madison Ave., 19th Floor

New York, NY 10065

November 27, 2013

OCI Partners LP

P.O. Box 1647

Nederland, TX 77627

Attn: Frank Bakker, President and Chief Executive Officer

Dear Mr. Bakker:

This letter agreement (this “ Agreement ”) sets forth the commitment of OCI USA Inc. (“ OCI USA ”), subject to the terms and conditions contained herein, to make an equity contribution to OCI Partners LP, a Delaware limited partnership (the “ Partnership ”) in connection with a Term Loan Credit Agreement among OCI Beaumont LLC, a Texas limited liability company (“ OCI Beaumont ”), the Partnership and certain lenders party thereto (as amended, restated, refinanced or replaced, the “ Term Loan Agreement ”). Defined terms used herein and not otherwise defined shall have the meanings ascribed to them in the Term Loan Agreement.

1. Commitments . OCI USA hereby commits (its “ Commitment ”), that:

 

  a. if prior to the completion of the debottlenecking project in 2014, the Partnership or OCI Beaumont have liquidity needs for working capital or other purposes and the restrictions under the Term Loan Agreement or any other debt instruments of the Partnership or OCI Beaumont prohibit the Partnership or OCI Beaumont from incurring sufficient additional debt to fund such liquidity needs, then upon notice from the Partnership, OCI USA (or an affiliate designated by OCI USA) shall provide such liquidity to the extent of such needs in the form of an equity contribution to the Partnership; and

 

  b. in the event OCI Beaumont fails to comply with any of the Financial Covenants as of the last day of any fiscal quarter, then upon notice from the Partnership, OCI USA (or an affiliate designated by OCI USA that is not a Credit Party) shall make cash contributions to the Partnership as common equity in the amount of the Cure Amount and by the date required by the Term Loan Agreement, so that the Partnership can further contribute such funds to OCI Beaumont to cure such non-compliance, subject to and in accordance with the terms and conditions of the Term Loan Agreement;

provided that, the aggregate Commitments that OCI USA shall be obligated to make under sections 1.a. and 1.b. of this letter shall not exceed $100 million.

2. Parties in Interest; Third Party Beneficiary . The parties hereto hereby agree that their respective agreements and obligations set forth herein are solely for the benefit of the other party hereto and their respective successors and permitted assigns, in accordance with and subject to the terms of this Agreement, and this Agreement is not intended to, and does not, confer upon any person or entity other than the parties hereto and their respective successors and permitted assigns any benefits, rights or remedies under or by reason of, or any rights to enforce or cause the Partnership or OCI Beaumont to enforce, the obligations set forth herein.


3. No Modification; Entire Agreement . This Agreement may not be amended or otherwise modified without the prior written consent of each of the parties hereto. This Agreement (and the agreements referenced therein) constitutes the sole agreement, and supersedes all prior agreements, understandings and statements, written or oral, between the parties hereto with respect to the transactions contemplated hereby. No transfer or assignment of any rights or obligations hereunder shall be permitted without the consent of each of the parties hereto. Any transfer in violation of the preceding sentence shall be null and void.

4. Representations and Warranties . OCI USA represents and warrants that t he execution, delivery and performance by it of this Agreement, and the consummation of the transactions contemplated hereby, are within OCI USA’s corporate or other powers, have been duly authorized by all necessary corporate or other organizational action and do not contravene the terms of OCI USA’s organizational agreements or other material agreements or violate any law in any material respect.

5. Governing Law; Jurisdiction; Venue; Waiver of Jury Trial .

(a) This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of New York.

(b) Each of the parties hereto (a) consents to submit itself to the exclusive personal jurisdiction of any state court sitting in New York, New York, or, if that court does not have jurisdiction, a federal court sitting in New York, New York in any action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated by this Agreement, (b) agrees that all claims in respect of such action or proceeding shall be heard and determined only in any such court, (c) agrees that it shall not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, and (d) agrees not to bring any action or proceeding arising out of or relating to this Agreement or any of the transactions contemplated by this Agreement in any other court. Each of the parties hereto waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety or other security that might be required of any other person with respect thereto. Any party hereto may make service on another party by sending or delivering a copy of the process to the party to be served at the address and in the manner provided for the giving of notices in the Term Loan Agreement. Nothing in this Section 5(b), however, shall affect the right of any person to serve legal process in any other manner permitted by law.

(c) EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUCH ACTION OR PROCEEDING. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT: (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER; (B) IT UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (C) IT MAKES THIS WAIVER VOLUNTARILY; AND (D) IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5(c).

 

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6. Counterparts . This Agreement may be executed in two or more counterparts (including by facsimile or by an electronic scan delivered by electronic mail), each of which shall be deemed an original but all of which together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each of the parties hereto and delivered to the other parties, it being understood that all parties need not sign the same counterpart.

7. Termination . The obligations of OCI USA under this Agreement will terminate automatically and immediately upon the earliest to occur of (a) the funding in full of the Commitment hereunder (at which time all such obligations shall be discharged) or (b) the occurrence of a Bankruptcy Event. “ Bankruptcy Event ” means any one of the following events: (i) a proceeding under 11 U.S.C. §§101 et seq. , as amended, and any similar or successor Federal statute, and the rules and regulations thereunder (collectively, the “ Bankruptcy Code ”), seeking an order for relief or under any other bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law or statute is filed against the Partnership or any entity controlled by the Partnership (including each of its direct and indirect subsidiaries) (each such entity, a “ Partnership Entity ”) and such proceeding is not dismissed within thirty (30) days of the date of its filing, or a proceeding under the Bankruptcy Code seeking an order for relief or under any bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of debt or receivership law or statute is filed by any Partnership Entity, or any Partnership Entity makes an assignment for the benefit of creditors, or any Partnership Entity takes any corporate action to authorize any of the foregoing; or (ii) any Partnership Entity becomes insolvent or fails generally to pay its debts as they become due.

[ Remainder of Page Intentionally Left Blank ]

 

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Sincerely,
OCI USA INC.
By:   /s/ Kevin Struve
  Name: Kevin Struve
  Title: President

Agreed and accepted:

 

OCI PARTNERS LP
by its general partner, OCI GP LLC
By:   /s/ Frank Bakker
  Name: Frank Bakker
  Title: President and Chief Executive Officer

[S IGNATURE P AGE TO E QUITY C OMMITMENT L ETTER ]

Exhibit 10.2

EXECUTION VERSION

AMENDMENT NO. 1 , dated as of November 27, 2013 (this “ Amendment ”), among OCI USA INC., a Delaware corporation (“ Holdings ”), OCI BEAUMONT LLC, a Texas limited liability company (the “ Borrower ”), OCI PARTNERS LP, a Delaware limited partnership (the “ MLP ”), BANK OF AMERICA, N.A., as administrative agent for the Lenders and collateral agent for the Guaranteed Creditors (in such capacities, the “ Administrative Agent ”) and as the Incremental Term Loan Lender (the “ Incremental Term Loan Lender ”), and the other Lenders party hereto.

WHEREAS, reference is hereby made to the Credit Agreement dated as of August 20, 2013 (as amended, supplemented, amended and restated or otherwise modified from time to time prior to the date hereof) (the “ Credit Agreement ”) among the Borrower, Holdings, the MLP, the Administrative Agent and the Lenders party thereto. Capitalized terms used and not otherwise defined herein shall have the meanings assigned to them in the Credit Agreement;

WHEREAS, pursuant to Section 2.15 of the Credit Agreement, the Borrower may establish incremental Term Loans in the form of a new tranche of term loans designated as the Term B-2-B Loans (the “ Incremental Term Loans ”);

WHEREAS, the Borrower has requested the borrowing of $165,000,000 of Incremental Term Loans (the “ Increase ”) which will be used to (i) refinance all indebtedness outstanding under the Intercompany Term Facility, dated as of September 15, 2013, by and between OCI Fertilizer International B.V. (“ OCI Fertilizer ”) and the Borrower (the “ Intercompany Loan Agreement ”) and (ii) pay fees and expenses related to the foregoing and the Incremental Term Loans (the incurrence of the Incremental Term Loans, together with clauses (i) and (ii), the “ Amendment Transactions ”);

WHEREAS, the Incremental Term Loan Lender has agreed to make the Incremental Term Loans on the terms set forth herein;

WHEREAS, pursuant to Section 13.12 of the Credit Agreement, Holdings, the Borrower, the MLP and the Required Lenders may amend the Credit Agreement and the other Credit Documents for certain purposes and the Credit Parties desire to amend the Credit Agreement pursuant to Section 13.12 (the “ Additional Amendments ”) as set forth below; and

NOW, THEREFORE, in consideration of the premises and covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

Section 1. Incremental Term Loans .

(a) Each party hereto agrees that the Incremental Term Loan Lender shall be considered a Lender for all purposes under the Credit Documents. The Incremental Term Loan Lender agrees to be bound by the terms of the Credit Documents and to make Incremental Term Loans to the Borrower in an aggregate amount not to exceed $165,000,000. The Incremental Term Loans will be an increase in the Term B-2 Loans


(to be redesignated as the Term B-2-A Loans as set forth herein) outstanding prior to the date hereof (the “ Existing Term Loans ”) and the Existing Term Loans and the Incremental Term Loans will collectively comprise a single Tranche of Term B-2 Loans. The Incremental Term Loans shall have terms and provisions identical to the Existing Term Loans and will constitute Term Loans and Term B-2 Loans for all purposes under the Credit Agreement. The aggregate amount of the Incremental Term Loans made under this Amendment shall be $165,000,000. The Borrower shall use the proceeds of the Incremental Term Loans as set forth in the recitals to this Amendment.

(b) Without limiting the generality of the foregoing and except as set forth in this Amendment, the Incremental Term Loans shall: (i) constitute Obligations and have all of the benefits thereof, (ii) have terms, rights, remedies, privileges and protections identical to those applicable to Initial Term Loans under the Credit Agreement and each of the other Credit Documents and (iii) be secured by the Liens granted to the Collateral Agent for the benefit of the Guaranteed Creditors under the Security Agreement.

(c) Section 5.02(a)(i)(y) is hereby amended and restated in its entirety as follows: “on the last Business Day of each March, June, September and December, commencing with the last Business Day of December 2013 and ending with the last Business Day of the fiscal quarter preceding the Initial Maturity Date of the Term B-2 Loans, the Borrower shall be required to repay that principal amount of the Term B-2 Loans equal to the sum of (x) 0.25% of the aggregate principal amount of all Term B-2 Loans outstanding on the Closing Date and (y) 0.25% of the aggregate principal amount of all Incremental Term Loans outstanding on the Amendment No. 1 Effective Date”.

Section 2. Additional Amendments . Effective on the Amendment No. 1 Effective Date (as defined below) and subject to the satisfaction of the terms and conditions set forth herein:

(a) The following definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical location:

Amendment No. 1 ” shall mean Amendment No. 1 to this Agreement, dated as of November 27, 2013, by and among Holdings, the Borrower, the MLP, the Incremental Term Loan Lender party thereto, the Administrative Agent and the other Lenders party thereto.

Amendment No. 1 Effective Date ” shall mean November 27, 2013.

(b) The following definitions set forth in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety as follows:

Incremental Amount ” shall mean the sum of (a) $100,000,000 and (b) the maximum principal amount of Indebtedness that may be incurred at such time that would not cause the Consolidated First Lien Net Leverage Ratio, determined on a

 

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Pro Forma Basis as of the last day of the most recently ended Test Period for which Section 9.01 Financials were required to have been delivered (calculated based on audited or reviewed financial statements, or to the extent such financials are not available for the most recent fiscal quarter, certified internal management accounts for such quarter), to exceed 1.25 to 1.00 (with usage of the Incremental Amount being counted under clause (b) prior to clause (a)); provided that for calculating the Consolidated First Lien Net Leverage Ratio for purposes of this definition, (i) all Indebtedness (whether or not unsecured or secured on a pari passu basis with the Liens securing the Obligations or by a junior Lien) being incurred at such time pursuant to Section 2.15 or Section 10.04(xvi) shall be included in Consolidated First Lien Debt and (ii) the cash proceeds of any Incremental Term Loans shall be excluded solely for purposes of calculating the Consolidated First Lien Net Leverage Ratio on such date.

Term B-2-A Loans ” shall mean the term loans made on the Closing Date pursuant to Section 2.01(a) .

Term B-2-B Loans ” shall mean the term loans made on the Amendment No. 1 Effective Date pursuant to Section 2.15 .

Term B-2 Loans ” shall mean the Term B-2-A Loans and the Term B-2-B Loans.

(c) Section 13.12(a) is hereby amended by inserting “and” after clause (vii) and adding a new clause (viii): “amend or modify any provision of this Agreement or any Credit Document to differentiate between the Term B-2-A Loans, on the one hand, and the Term B-2-B Loans, on the other hand, other than as to the date of their initial issuance, without the prior written consent of each Lender”.

Section 3. Representations and Warranties . Each of the Credit Parties represents and warrants to the Administrative Agent and the Lenders as of the Amendment No. 1 Effective Date (as defined below) (before and after giving effect to the Increase) that:

(a) This Amendment has been duly authorized, executed and delivered by it and constitutes a legal, valid and binding obligation of such Credit Party, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws affecting creditors’ rights generally and by general principles of equity.

(b) The execution, delivery and performance by such Credit Party of the Amendment, and the consummation of the Amendment Transactions, are within such Credit Party’s corporate or other powers, have been duly authorized by all necessary corporate or other organizational action and do not (a) contravene the terms of any of such Person’s organizational documents, or (b) violate any law; except with respect to any violation referred to in this clause (b) to the extent that such violation could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

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(c) All representations and warranties of the Borrower and each other Credit Party contained in Section 8 of the Credit Agreement or any other Credit Document are true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) on and as of the Amendment No. 1 Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (and in all respects if any such representation or warranty is already qualified by materiality) as of such earlier date;

(d) No Default or Event of Default exists or has occurred and is continuing on and as of the Amendment No. 1 Effective Date or, after giving effect hereto, would result from the application of the proceeds from the Incremental Term Loans;

(e) As of the Amendment No. 1 Effective Date, Holdings and its Subsidiaries, on a consolidated basis, are Solvent (after giving effect to the Amendment Transactions);

(f) Other than as set forth in Section 5 , the execution, delivery, performance or effectiveness of this Amendment will not (a) impair the validity, effectiveness or priority of the Liens granted pursuant to any Credit Document, and such Liens continue unimpaired with the same priority to secure repayment of all of the applicable Obligations, whether heretofore or hereafter incurred, or (b) require that any new filings be made or other action taken to perfect or to maintain the perfection of such Liens.

Section 4. Conditions to Effectiveness . The effectiveness of Section 1 and Section 2 of this Amendment and the obligation of the Incremental Term Loan Lender to make its Incremental Term Loans hereunder shall be subject to the satisfaction of the following conditions precedent (the date upon which Section 1 and Section 2 of this Amendment become effective, the “ Amendment No. 1 Effective Date ”):

(a) Certain Documents . The Administrative Agent shall have received each of the following, each dated the Amendment No. 1 Effective Date unless otherwise indicated or agreed to by the Administrative Agent and each in form and substance reasonably satisfactory to the Administrative Agent:

(i) counterparts of this Amendment that, when taken together, bear the signatures of (A) Holdings, (B) the Borrower, (C) the MLP, (D) the Required Lenders and (E) the Incremental Term Loan Lender;

(ii) a Note executed by the Borrower in favor of the Incremental Term Loan Lender if the Incremental Term Loan Lender requests a Note reasonably in advance of the Amendment No. 1 Effective Date;

 

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(iii) a Notice of Borrowing relating to the Increase;

(iv) a certificate from each Credit Party signed by a Responsible Officer of such Credit Party, and attested to by the Secretary or any Assistant Secretary of such Credit Party, with appropriate insertions, together with copies of the certificate or articles of incorporation and by-laws (or equivalent organizational documents), as applicable, of such Credit Party and the resolutions of such Credit Party referred to in such certificate, and each of the foregoing shall be in form and substance reasonably satisfactory to the Administrative Agent;

(v) good standing certificates and bring-down telegrams or facsimiles, if any, for the Credit Parties which the Administrative Agent may reasonably have requested, certified by proper governmental authorities;

(vi) a certificate signed on behalf of the Borrower (and not in any individual capacity) by a Responsible Officer of the Borrower certifying on behalf of the Borrower that each of the conditions set forth in this Section 4 have been satisfied and including supporting calculations demonstrating compliance with the Consolidated First Lien Net Leverage Ratio;

(vii) an opinion of Latham & Watkins LLP, special counsel to the Credit Parties, addressed to the Administrative Agent and each of the Lenders, in form and substance and reasonably satisfactory to the Administrative Agent; and

(viii) with respect to any parcel of improved Mortgaged Property, a completed “Life-of-Loan” Federal Emergency Management Agency standard flood hazard determination (together with a notice about special flood hazard area status and flood disaster assistance duly executed by the Borrower and each applicable Credit Party) together with a copy of, or a certificate as to coverage under, and a declaration page relating to, the insurance policies required by Section 9.03 of the Credit Agreement (including, without limitation, flood insurance policies) and the applicable provisions of the Security Documents, each of which (i) shall be endorsed or otherwise amended to include a “standard” or “New York” lender’s loss payable or mortgagee endorsement (as applicable), (ii) shall name the Collateral Agent, on behalf of the Guaranteed Creditors, as additional insured, (iii) in the case of flood insurance, shall (a) identify the addresses of each property located in a special flood hazard area, (b) indicate the applicable flood zone designation, the flood insurance coverage and the deductible relating thereto and (c) provide that the insurer will give the Collateral Agent 45 days’ written notice of cancellation or non-renewal if permitted by applicable law and (iv) shall be otherwise in form and substance satisfactory to the Administrative Agent; provided that the Administrative Agent acknowledges that the requirements of this clause (viii) were satisfied on November 19, 2013.

 

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(b) Fees and Expenses Paid . The Lead Arranger (as defined below) and Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Amendment No. 1 Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses (including the legal fees and expenses of Cahill Gordon & Reindel LLP , counsel to the Administrative Agent) required to be reimbursed or paid by the Borrower on or prior to the Amendment No. 1 Effective Date hereunder or under any other Credit Document.

(c) Financial Condition . The Administrative Agent shall have received certification as to the solvency of Holdings and its Subsidiaries, on a consolidated basis, (after giving effect to the Amendment Transactions) from a Responsible Officer of Holdings.

Section 5. Post-Closing Actions . Within 30 days after the Amendment No. 1 Effective Date (or such later date as the Administrative Agent may agree in its sole discretion), the Borrower will take, or shall cause the applicable Credit Party to take any actions deemed reasonably advisable by the Administrative Agent or Collateral Agent due to this Amendment to preserve or continue the perfection and priority of liens and security interests granted under the Mortgage to the Collateral Agent for the benefit of the Secured Parties as amended by this Amendment (including without limitation the Incremental Term Loan Lender) securing the Obligations as amended by this Amendment (including without limitation the Incremental Term Loans).

Section 6. Extension of Loan . Subject to the satisfaction of the conditions set forth in Section 4, the Incremental Term Loan Lender shall make the Increase available to the Borrower on the date specified therefor in the related Notice of Borrowing in accordance with instructions provided by the Borrower to (and reasonably acceptable to) the Administrative Agent.

Section 7. Counterparts . This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A set of counterparts executed by all the parties hereto shall be lodged with the Borrower and the Administrative Agent.

Section 8. Applicable Law . THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL, EXCEPT AS OTHERWISE PROVIDED IN THE CREDIT AGREEMENT OR THE SECURITY DOCUMENTS, BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

Section 9. Headings Descriptive . The headings of the several Sections and subsections of this Amendment are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Amendment.

 

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Section 10. Effect of Amendment . Except as expressly set forth herein, this Amendment shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or any other Credit Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. As of the Amendment No. 1 Effective Date, each reference in the Credit Agreement to “ this Agreement ,” “ hereunder ,” “ hereof ,” “ herein ,” or words of like import, and each reference in the other Credit Documents to the Credit Agreement (including, without limitation, by means of words like “ thereunder ,” “ thereof ” and words of like import), shall mean and be a reference to the Credit Agreement as amended hereby, and this Amendment and the Credit Agreement shall be read together and construed as a single instrument. This Amendment shall constitute a Credit Document. The parties hereto hereby consent to the Increase upon the terms set forth herein. Upon the effectiveness of this Amendment, all conditions and requirements set forth in the Credit Agreement or the other Credit Documents relating to the Increase shall be deemed satisfied and the Increase shall be deemed arranged and consummated in accordance with the terms of the Credit Agreement and the other Credit Documents. For the avoidance of doubt, the Lenders hereby waive any mandatory prepayment that would have been due pursuant to 5.02(a)(ii) of the Credit Agreement but for the amendments contained herein.

Section 11. Acknowledgement and Affirmation . Each Credit Party party hereto hereby expressly acknowledges, (i) all of its obligations under the Holdings Guaranty, the Subsidiaries Guaranty, the Security Agreement and the other Collateral Documents to which it is a party are reaffirmed and remain in full force and effect on a continuous basis, (ii) its grant of security interests pursuant to the Security Agreement and the other Security Documents are reaffirmed and remain in full force and effect after giving effect to this Amendment, (iii) the Obligations include, among other things and without limitation, the due and punctual payment of the principal of, interest on, and premium (if any) on, the Incremental Term Loans and (iv) except as expressly set forth herein, the execution of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or Lenders, constitute a waiver of any provision of any of the Credit Documents or serve to effect a novation of the Obligations.

Section 12. Roles . It is agreed that Bank of America, N.A. will act as sole lead arranger (the “ Lead Arranger ”) and each of Bank of America, N.A., Citigroup Global Markets Inc. and Barclays Bank PLC will act as joint bookrunners for the Incremental Term Loans.

[signature pages follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

OCI BEAUMONT LLC
By:   /s/ Frank Bakker
  Name: Frank Bakker
  Title: President and Chief Executive Officer
OCI USA INC.
By:   /s/ Kevin Struve
  Name: Kevin Struve
  Title: President

OCI PARTNERS LP

by OCI GP LLC, its general partner

By:   /s/ Frank Bakker
  Name: Frank Bakker
  Title: President and Chief Executive Officer

 

[OCI – Amendment No. 1 to the Credit Agreement]


BANK OF AMERICA, N.A.,
  as Administrative Agent
By:  

/s/ Kimberly D. Williams

  Name: Kimberly D. Williams
  Title: Vice President
BANK OF AMERICA, N.A.
  as Incremental Term Loan Lender
By:  

/s/ Anand Melvani

  Name: Anand Melvani
  Title: Managing Director

 

[OCI – Amendment No. 1 to the Credit Agreement]


The undersigned Lender hereby consents to this Amendment:

 

   

[ Lender Signature Pages Intentionally Omitted ],

as a Consenting Lender

    By:    
      Name:
      Title:
For any institution requiring a second signatory:      
    By:    
      Name:
      Title:

[OCI – Amendment No. 1 to the Credit Agreement]

Exhibit 10.3

AMENDMENT NO. 1 TO INTERCOMPANY TERM FACILITY AGREEMENT

THIS AMENDMENT NO. 1 TO INTERCOMPANY TERM FACILITY AGREEMENT (this “ Amendment ”) dated as of November 27, 2013 is by and among OCI FERTILIZER INTERNATIONAL B.V., a private limited liability company organized under the laws of the Netherlands (together with its successors and assigns, the “ Lender ”) and OCI BEAUMONT LLC, a limited liability company formed under the laws of the state of Texas (the “ Borrower ”).

W I T N E S S E T H

WHEREAS, the Borrower and the Lender entered into that certain Intercompany Term Facility Agreement made effective on September 15, 2013 (the “ Term Facility Agreement ”), which amended, restated and refinanced certain prior loan agreements as noted therein and pursuant to which the Lender agreed to lend to the Borrower an amount of up to USD $200,000,000 (the “ Term Facility Amount ”) to be made available at the request of the Borrower from time to time;

WHEREAS, the Borrower intends to make the Repayment (as defined below) under the Term Facility Agreement promptly after the date hereof;

WHEREAS, the Borrower and the Lender wish to modify the Term Facility Amount such that, after the Repayment becomes effective, the Term Facility Amount (and therefore the amount available to be drawn by the Borrower under the Term Facility Agreement (subject to the terms and conditions set forth therein)) would be one hundred million dollars (USD $100,000,000).

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Defined Terms . Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Term Facility Agreement.

2. Amendments . The Agreement is amended as follows:

 

  2.1 The following defined terms are added to Section 1 in the proper alphabetical order:

Repayment ” means the repayment of all amounts outstanding hereunder, expected to occur substantially contemporaneously with or promptly after execution of Amendment No. 1 hereto.

Repayment Date ” means the date that the Repayment is made.

 

  2.2 The defined term “Loan” in Section 1 is amended and restated as follows:

Loan ” means an unsecured term loan in an aggregate amount not to exceed one hundred million dollars (USD $100,000,000) made available under this Agreement as described in Section 2.


  2.3 Section 2.1 is amended and restated in its entirety to read as follows:

“From and after the Repayment Date, the Lender agrees to lend to the Borrower an amount of up to one hundred million dollars (USD 100,000,000) to be made available at the request of the Borrower from time to time, subject to the terms and conditions of this Agreement.”

2.3 In Section 2.2 , the amount “$100,000,000” shall replace the amount “$200,000,000” where it appears.

3. Conditions Precedent . This Amendment shall become effective upon (a) receipt by the Lender of executed counterparts of this Amendment executed by each of the parties hereto and (b) the making of the Repayment.

4. Representations and Warranties . The Borrower represents and warrants to the Lender that (a) the Borrower is duly organized, validly existing and in good standing under the laws of the State of Texas, USA; (b) the Borrower has duly authorized, executed and delivered this Amendment; and (c) this Amendment constitutes a legally valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms.

5. Reaffirmation of Obligations . The Borrower (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Term Facility Agreement and (c) agrees that this Amendment does not operate to reduce or discharge its obligations under the Term Facility Agreement (except as expressly set forth in Section 2 above).

6. No Other Changes . Except as modified hereby, all of the terms and provisions of the Term Facility Agreement shall remain in full force and effect.

7. Counterparts; Delivery . This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of this Amendment by facsimile or other electronic imaging means shall be effective as an original.

8. ENTIRE AGREEMENT . THIS AMENDMENT, TOGETHER WITH THE TERM FACILITY AGREEMENT, CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF.

9. Governing Law . This Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of New York.

[SIGNATURE PAGES FOLLOW]

 

2


IN WITNESS WHEREOF , the parties hereto have caused this AMENDMENT NO. 1 TO INTERCOMPANY TERM FACILITY AGREEMENT to be duly executed as of the date first above written.

 

LENDER:   OCI FERTILIZER INTERNATIONAL, B.V.
  By:   

/s/ Kevin Struve

  Name:    Kevin Struve
  Title:    Director

 

BORROWER:   OCI BEAUMONT LLC
  By:   

/s/ Fady Kiama

  Name:    Fady Kiama
  Title:    Chief Financial Officer

AMENDMENT NO. 1 TO INTERCOMPANY TERM FACILITY AGREEMENT