|
|
|
|
|
Delaware
|
|
001-33264
|
|
68-0623433
|
(State or other jurisdiction
of incorporation)
|
|
(Commission
File Number)
|
|
(IRS Employer
Identification No.)
|
¨
|
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))
|
•
|
The net orderly liquidation value inventory advance rate was increased from 85% to 90%.
|
•
|
The Company’s required excess availability related to the “Covenant Testing Trigger Period” (as defined under the Credit Agreement) under the revolving commitment under the Credit Agreement was reduced to less than $2,000,000 from less than $4,000,000 for the period commencing on any day that excess availability is less than $2,000,000 and continuing until excess availability has been greater than or equal to $2,000,000 for 45 consecutive days.
|
•
|
The period during which the Company is subject to a fixed charge coverage ratio begins after June 30, 2016 and the applicable period would begin for a 5 month period ending May 31, 2016 and continue through a 12 month applicable period ending December 31, 2016.
|
•
|
Certain negative covenants applicable to the Company and AutoMD, Inc. (“AutoMD”), a subsidiary of the Company, related to certain contractual and financial tests to permit the Company and AutoMD to consummate certain obligations set forth in the agreements entered into by the Company and AutoMD on October 8, 2014 (the “Financing Documents”) in connection with the sale of AutoMD common stock to certain investors (the “AutoMD Financing”) have been revised where the availability requirements are no longer applicable until after June 30, 2016 and further revised reducing the availability requirement to $2,000,000 before and after giving effect to the consummation of such obligations. A summary of the Financing Documents and the AutoMD Financing were disclosed by the Company in a Current Report on Form 8-K filed with the Securities and Exchange Commission on October 9, 2014.
|
•
|
The trigger, requiring the Company to provide certain reports under the Credit Agreement, relating to excess availability under the revolving commitment under the Credit Agreement, has been reduced to less than $4,000,000 from less than $6,000,000 and continuing until excess availability has been greater than or equal to $4,000,000 for 45 consecutive days.
|
99.1
|
Sixth Amendment to Credit Agreement and Second Amendment to Pledge and Security Agreement, dated as of January 5, 2015, by and between U.S. Auto Parts Network, Inc., certain of its domestic subsidiaries and JPMorgan Chase Bank, N.A.
|
|
|
|
|
|
|
|
Dated: January 7, 2015
|
|
|
|
U.S. AUTO PARTS NETWORK, INC.
|
||
|
|
|
|
|||
|
|
|
|
By:
|
|
/s/ BRYAN P. STEVENSON
|
|
|
|
|
Name:
|
|
Bryan P. Stevenson
|
|
|
|
|
Title:
|
|
VP, General Counsel
|
A.
|
Borrowers, the other parties signatory thereto as “Loan Parties” (each individually, a “
Loan Party
” and collectively, the “
Loan Parties
”), Administrative Agent, and the financial institutions party thereto as lenders (each individually, a “
Lender
” and collectively, the “
Lenders
”) have previously entered into that certain Credit Agreement, dated as of April 26, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “
Credit Agreement
”), pursuant to which the Lenders have made certain loans and financial accommodations available to Borrowers. Terms used herein without definition shall have the meanings ascribed to them in the Credit Agreement.
|
B.
|
Borrowers, the other Loan Parties and Administrative Agent have previously entered into that certain Pledge and Security Agreement, dated as of April 26, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “
Security Agreement
”).
|
C.
|
Borrowers and the other Loan Parties have requested that Administrative Agent and the Lenders amend the Credit Agreement and the Security Agreement, and Administrative Agent and the Lenders are willing to amend the Credit Agreement and the Security Agreement pursuant to the terms and conditions set forth herein.
|
D.
|
Each Borrower and each other Loan Party is entering into this Amendment with the understanding and agreement that, except as specifically provided herein, none of Administrative Agent’s or any Lender’s rights or remedies as set forth in the Credit Agreement and the other Loan Documents are being waived or modified by the terms of this Amendment.
|
1.
|
Amendments to Credit Agreement
.
|
a.
|
The following definitions are hereby added to
Section 1.01
of the Credit Agreement in their proper alphabetical order:
|
b.
|
Effective as of January 2, 2015, the following definition set forth in
Section 1.01
of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
|
c.
|
The following definitions set forth in
Section 1.01
of the Credit Agreement are hereby amended and restated to read in their entirety as follows:
|
d.
|
Clause (f) of the definition of “Borrowing Base” set forth in
Section 1.01
of the Credit Agreement is hereby amended and restated to read in its entirety as follows:
|
e.
|
Section 2.01(ii)(x)
is hereby amended and restated to read in its entirety as follows:
|
f.
|
The last sentence of
Section 2.06(b)
is hereby amended and restated to read in its entirety as follows:
|
g.
|
Section 2.09(b)(iii)
is hereby amended and restated to read in its entirety as follows:
|
h.
|
Section
2.11(b)(A)
is hereby amended and restated to read in its entirety as follows:
|
i.
|
Sections 6.04(p)
,
(q)
and
(r)
of the Credit Agreement are hereby amended and restated to read in their entirety as follows:
|
j.
|
Section 6.08(a)(v)
of the Credit Agreement is hereby amended and restated in its entirety as follows:
|
k.
|
Section 6.13
of the Credit Agreement is hereby amended and restated in its entirety as follows:
|
Applicable Amount
|
Applicable Period
|
1.0 to 1.0
|
For the 5 month period ending May 31, 2016
|
1.0 to 1.0
|
For the 6 month period ending June 30, 2016
|
1.0 to 1.0
|
For the 7 month period ending July 31, 2016
|
1.0 to 1.0
|
For the 8 month period ending August 31, 2016
|
1.0 to 1.0
|
For the 9 month period ending September 30, 2016
|
1.0 to 1.0
|
For the 10 month period ending October 31, 2016
|
1.0 to 1.0
|
For the 11 month period ending November 30, 2016
|
1.0 to 1.0
|
For the 12 month period ending December 31, 2016, and for the 12 month period ending at the end of each month thereafter”
|
2.
|
Amendments to Security Agreement
.
|
a.
|
In the definition of “Dominion Trigger Period” in
Article I
of the Security Agreement, the text “$5,000,000” is hereby deleted and replaced with the text “$4,000,000 (without giving effect to the Availability Block)”, and the text “6,000,000” is hereby deleted and replaced with the text “5,000,000 (without giving effect to the Availability Block)”.
|
a.
|
Amendment
. Administrative Agent shall have received this Amendment fully executed in a sufficient number of counterparts for distribution to all parties.
|
b.
|
Representations and Warranties
. The representations and warranties set forth herein, and in the Credit Agreement and the Security Agreement (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof), must be true and correct in all material respects without duplication of any materiality qualifier contained therein.
|
a.
|
Authority
. Each Borrower and each other Loan Party has the requisite corporate power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Loan Documents (as amended or modified hereby) to which it is a party. The execution, delivery, and performance by each Borrower and each other Loan Party of this Amendment have been duly approved by all necessary corporate action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual restriction binding on such Borrower or such Loan Party.
|
b.
|
Enforceability
. This Amendment has been duly executed and delivered by each Borrower and each other Loan Party. This Amendment and each Loan Document (as amended or modified hereby) is the legal, valid, and binding obligation of each Borrower and each other Loan Party, enforceable against each Borrower and each other Loan Party in accordance with its terms, and is in full force and effect.
|
c.
|
Representations and Warranties
. The representations and warranties contained in the Credit Agreement and the Security Agreement (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof) are correct on and as of the date hereof in all material respects without duplication of any materiality qualifier contained therein as though made on and as of the date hereof.
|
d.
|
No Default
. No event has occurred and is continuing that constitutes a Default or Event of Default.
|
a.
|
Upon and after the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.
|
b.
|
Upon and after the effectiveness of this Amendment, each reference in the Security Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Security Agreement, and each reference in the other Loan Documents to “the Security Agreement”, “thereof” or words of like
|
c.
|
Except as specifically set forth in this Amendment, the Credit Agreement, the Security Agreement and all other Loan Documents, are and shall continue to be in full force and effect and are hereby in all respects ratified, and confirmed and shall constitute the legal, valid, binding, and enforceable obligations of each Borrower and the other Loan Parties to Administrative Agent and the Lenders without defense, offset, claim, or contribution.
|
d.
|
The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power, or remedy of Administrative Agent or any Lender under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.
|