Ollie's Bargain Outlet (OLLI) 8-KEntry into a Material Definitive Agreement

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

THIS SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of January 9, 2024 (the “Second Amendment Effective Date”), by and among BARGAIN PARENT, INC. (“Parent”), OLLIE’S HOLDINGS, INC., OLLIE’S BARGAIN OUTLET, INC. and OBO VENTURES, INC. (each as a “Borrower” and collectively, the “Borrowers”), the financial institutions party hereto as a “Lender” (the “Lenders”), the Exiting Lender (as defined below) and MANUFACTURERS AND TRADERS TRUST COMPANY, as Administrative Agent (together with its successors and assigns, the “Administrative Agent”).

WHEREAS, the Parent, the Borrowers, the Lenders party thereto, the Administrative Agent and certain other parties have entered into that certain Amended and Restated Credit Agreement dated as of May 22, 2019 (as amended by that certain First Amendment to Amended and Restated Credit Agreement dated as of January 24, 2023 and as further amended and in effect immediately prior to the effectiveness of this Amendment, the “Existing Credit Agreement”; and the Existing Credit Agreement as amended by this Amendment, the “Amended Credit Agreement”); and

WHEREAS, the Borrowers and the Parent have requested that and the Administrative Agent and Lenders extend the Revolver Termination Date and to amend certain other provisions of the Existing Credit Agreement on the terms and conditions contained herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties hereto hereby agree as follows:

Section 1. Specific Amendments to Credit Agreement.  Upon the satisfaction of each of the conditions set forth in Section 3 of this Amendment, the parties hereto agree that the Existing Credit Agreement is amended as follows:

(a)           Section 1.01 of the Existing Credit Agreement is hereby amended by adding the following new definitions in alphabetical order:

“Second Amendment Effective Date” shall mean January 9, 2024.

(b)          Section 1.01 of the Existing Credit Agreement is hereby amended by restating the followings definitions in full as follows:

“ABR” shall mean, for any day, a rate per annum equal to the highest of (a) the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day plus 0.5%, and (c) the SOFR Loan Rate with a term of one-month in effect on such day plus the SOFR Spread Adjustment plus 1.00%.  For purposes hereof: “Prime Rate” shall mean the rate of interest per annum designated from time to time by M&T as its prime rate and notified to the Lead Borrower (the Prime Rate not being intended to be the lowest rate of interest charged by M&T in connection with extensions of credit to debtors).  Any change in the ABR due to a change in the Prime Rate, the Federal Funds Effective Rate or such SOFR Loan Rate shall be effective as of the opening of business on the effective day of such change in the Prime Rate, the Federal Funds Effective Rate or such SOFR Loan Rate, respectively.

“Revolver Termination Date” shall mean, as the context may require, (a) with respect to the Revolver Facility in effect on the Second Amendment Effective Date including any Incremental Revolver Facility incurred after the date hereof, January 9, 2029,

“SOFR Loan Rate” means for any Interest Period, the rate per annum (rounded upward to the nearest 1/16 of 1%) equal to Term SOFR published for the date that is two (2) U.S. Government Securities Business Days (the “Rate Determination Date”) prior to the commencement of such Interest Period and having a term equivalent to such Interest Period.  Notwithstanding the foregoing, if, as of 5:00 p.m. (ET) on any Rate Determination Date, Term SOFR has not been published, then the rate used will be such Term SOFR as published for the first preceding U.S. Government Securities Business Day so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities Business Days prior to such Rate Determination Date.  Notwithstanding any provision above, (i) if the SOFR Loan Rate as so determined would be less than the Floor, the SOFR Loan Rate will be deemed to be the Floor for purposes hereof and (ii) the practice of rounding to determine the SOFR Loan Rate may be discontinued at any time in the Administrative Agent’s sole discretion.

“SOFR Spread Adjustment” means 0.10% with respect to the SOFR Loan Rate.

Section 2. Reallocations on the Second Amendment Effective Date.

(b)       On the Second Amendment Effective Date after giving effect to this Agreement and the reallocations described in clause (a) above, the Revolver Commitments of KeyBank National Association (the “Exiting Lender”) shall be terminated, all outstanding amounts due under the Existing Credit Agreement and the other Loan Documents to the Exiting Lender on the Second Amendment Effective Date shall be paid in full, and the Exiting Lender shall cease to be a Lender under the Amended Credit Agreement; provided that obligations of the Loan Parties under the Loan Documents that are intended to survive any Lender ceasing to be a Lender or a party to any Loan Document shall survive in accordance with their respective terms for the benefit of the Exiting Lender.

Section 3. Conditions Precedent. The effectiveness of this Amendment is subject to the truth and accuracy of the representations and warranties set forth in Section 4 below and the satisfaction of each of the following conditions:

(a)         The Administrative Agent shall have received a counterpart of this Amendment duly executed by the Borrowers, the Parent, the Administrative Agent and each of the Lenders and the Exiting Lender.

(b)         To the extent requested by a Lender, each such Lender shall have received a replacement Note in the form of Exhibit M to the Amended Credit Agreement, duly executed and delivered by the Borrowers in favor of such Lender.

(c)          The Administrative Agent shall have received in the case of each Loan Party each of the following items:

(d)        (i) The Collateral and Guarantee Requirement shall be satisfied on and as of the Second Amendment Effective Date, (ii) the Administrative Agent shall have received the results of a search of the Uniform Commercial Code (or equivalent) filings made with respect to the Loan Parties and, to the extent requested, copies of the financing statements (or similar documents) disclosed by such search and (iii) the Administrative Agent shall have received evidence reasonably satisfactory to the Administrative Agent that the Liens indicated by such financing statements (or similar documents) are either permitted by Section 6.02 of the Amended Credit Agreement or have been released (or authorized for release in a manner reasonably satisfactory to the Administrative Agent).

(e)         The Administrative Agent shall have received all fees payable thereto or to any Lender on or prior to the Second Amendment Effective Date (including, without limitation, all fees due and payable pursuant to that certain Engagement Letter dated as of August 2, 2023 by and between the Administrative Agent and Ollie’s) and all other amounts due and payable pursuant to the Loan Documents on or prior to the Second Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Loan Parties hereunder, the Amended Credit Agreement or under any other Loan Document.

(f)          The Administrative Agent shall have received such other documents, instruments and agreements as the Administrative Agent may reasonably request.

Section 4. Representations. The Parent and each Borrower represents and warrants to the Administrative Agent and the Lenders that:

Section 5. Reaffirmation of Representations by Parent and Borrower. Each of the Parent and each Borrower hereby reaffirms that the representations and warranties made or deemed made by the Parent, the Borrowers and each other Loan Party in the Loan Documents to which any of them is a party are true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty is true and correct in all respects) on and as of the date hereof with the same force and effect as if made on and as of the date hereof except to the extent that such representations and warranties expressly relate solely to an earlier date (in which case such representations and warranties were true and correct in all material respects (except in the case of a representation or warranty qualified by materiality, in which case such representation or warranty was true and correct in all respects) on and as of such earlier date).

Section 6. Certain References. Each reference to the Credit Agreement in any of the Loan Documents shall be deemed to be a reference to the Amended Credit Agreement.  This Amendment shall constitute a Loan Document.

Section 7. Expenses. The Borrowers jointly and severally agree to reimburse the Administrative Agent upon demand for all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) incurred by the Administrative Agent in connection with the preparation, negotiation and execution of this Amendment and the other agreements and documents executed and delivered in connection herewith.

Section 8. Benefits. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

Section 9. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS EXECUTED, AND TO BE FULLY PERFORMED, IN SUCH STATE.

Section 10. Effect. Except as expressly herein amended, the terms and conditions of the Existing Credit Agreement and the other Loan Documents remain in full force and effect. The amendments contained herein shall be deemed to have prospective application only from the date as of which this Amendment is dated, unless otherwise specifically stated herein.

Section 11. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and shall be binding upon all parties, their successors and assigns.

Section 12. Definitions. All capitalized terms not otherwise defined herein are used herein with the respective definitions given them in the Amended Credit Agreement.

Section 13.  Reaffirmation of Obligations Under Loan Documents.  Each of the undersigned Loan Parties acknowledges and reaffirms that (i) all Liens and Guarantees granted by such Loan Party to the Administrative Agent, the Lenders and the other Secured Parties under the Security Documents to which such Person is a party (including, without limitation, that certain Amended and Restated Guarantee and Collateral Agreement dated as of May 22, 2019 (the “Amended and Restated Collateral Agreement”)) remain in full force and effect and shall continue to secure the Obligations (including the Secured Obligations (as defined in the Amended and Restated Collateral Agreement)) and (ii) the validity, perfection, enforceability or priority of such Liens and Guarantees, as applicable, will not be impaired in any way by this Amendment or the Amended Credit Agreement. Each of the undersigned Loan Parties hereby further reaffirms its continuing obligations owing to the Administrative Agent, the Lenders and the other Secured Parties, as applicable, under each of the Loan Documents to which such Person is a party, and each Loan Party agrees that this Amendment and the Amended Credit Agreement are solely to amend the terms of the Existing Credit Agreement and do not in any way affect the validity and/or enforceability of any Loan Document, or reduce, impair or discharge the obligations of such Person thereunder.

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IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to Amended and Restated Credit Agreement to be executed as of the date first above written.