HomeMy WebLinkAbout2005-40i~
•
TOWN OF PULASHI, VIRGINIA
RESOLUTION 2005-40
AUTHORIZING EXECUTION OF SUNTRUST
COMMITMENT LETTER FOR MAGNOX
C
WHEREAS, the Town of Pulaski has previously made a commitment of UDAG
funds as security in the form of a Guarantee for a loan to Magnox by SunTrust Bank and
whereas, it is deemed to be consistent with that loan guarantee and the health, safety and
welfare of the citizens of the Town of Pulaski, and
WHEREAS, it is the policy of the Town of Pulaski to further economic
development and the continued success of its businesses; and
NOW THEREFORE BE IT RESOLVED by the Town Council of the Town of
Pulaski, Virginia that the Town Manager is authorized to execute the original of the
SunTrust Commitment Letter, a copy of which is attached hereto and expressly made a
part hereof. All terms and conditions of the existing Resolution 2005-15 and Resolution
2005-20 shall remain in full force and effect. All debt to the Town of Pulaski by Magnox
will be brought current prior to the execution of the Commitment Letter.
This resolution is effective upon adoption and is hereby adopted this lst day of
November 2005, by recorded vote of the Town Council of the Town of Pulaski, as
follows:
Bettye H. Steger
John T. Bolen
Lane R. Penn
- Absent Joel B. Burchett, Jr. -Aye
- Aye Jeffrey S. Worrell -Aye
- Aye Daniel Talbert, Jr. -Aye
Town of Pulaski, Virginia
f f. ~i
By:
Charles L. Wade, ayor
ATTESTED:
Patricia Cruise, Clerk of Council
•
•
SLJ~tUST
October 17, 2005
Mr. Tim Hopkins
Magnox Acquisitions, Inc.
3 Magnox Drive
Pulaski Va. 24073
Dear Mr. Hopkins:
On behalf of SunTrust Bank (the "Bank"), I am pleased to advise you that the Bank has approved the request
of Magnox Acquisitions, Inc. (the "Company") to modify certain Terms and Conditions of that certain letter
agreement between the Company; Timothy S. Hopkins (the "Guarantor"); and the Bank dated March 24.,
2005 (the "Agreement").
Specifically, the Bank agrees to delete the Advances and General and Special Conditions -Conditions
Precedent to Closing sections of the Agreement and substitute the following in its entirety:
Advances. Availability under the Line will be limited monthly to the lesser of (i) the Amount or
(ii) the sum of (a) 1,500,000 plus (c) 75% of eligible accounts receivable (defined as those accounts
receivable less than 90 days past due from invoice further excluding any receivables from related
• parties, retainage receivables, foreign accounts, bonded receivables, receivables with a 50% cross
aging and any contra receivables).
To be considered for eligibility, any foreign account receivables must have either (a) credit
insurance (in form acceptable to the Bank in its sole discretion) naming SunTrust Bank as payee; or
(b) an assigned Letter of Credit acceptable to the Bank in its sole discretion.
General and Special Conditions.
Conditions Precedent to Closing. 'The Company will deliver documentation, acceptable to the
Bank in its soles discretion, of modification of that certain $500,C001oan (subordinated to the
Bank) from the Virginia Small Business Financing Authority dated April 15, 2005, changing
repayment terms to interest only through September 30, 2006.
All other terms and Conditions of the Agreement will remain in full force and effect.
Should you have any questions, please do not hesitate to call meat 1-540-982-3119. Otherwise, if the terms
and conditions of this letter are satisfactory, please signify your acceptance by signing and returning the
enclosed copy of this letter no later than October 31, 2005, when this commitment will otherwise expire.
\J
~ .. ..
` Magnox Acquisitions, Inc.
October 17, 2005
Page 2
We appreciate this opportunity to work with you and wish you continued success.
Sincerely yours,
~~
R. rayson Goldsmith
Senior Vice President
Accepted this
GUARANTOR
CORPORATE GUARANTORS
day of October, 2005.
Its
C~121~~-n~'
Town of Pulaski I~ ~U
ItsT r ,,~~ ~,,~ _
Magnox Acquisitions, Inc.
By ~~_, ,--__
Its /<?e-S'. be~i