EXHIBIT 10.46
EXECUTION VERSION
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CREDIT AGREEMENT (MULTI-YEAR)
Dated as of December 6, 2001
among
SANMINA CORPORATION
and
CERTAIN SUBSIDIARIES,
as Borrowers,
BANK OF AMERICA, N.A.,
as Administrative Agent and
L/C Issuer,
CITICORP USA, INC.
as
Syndication Agent,
XXXXXXX XXXXX XXXXXX INC.
as
Co-Arranger,
ABN AMRO BANK N.V.,
THE BANK OF NOVA SCOTIA
and
BARCLAYS BANK PLC
as
Co-Documentation Agents,
and
The Other Lenders Party Hereto
BANC OF AMERICA SECURITIES LLC,
as
Sole Lead Arranger and Sole Book Manager
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[BANK OF AMERICA LOGO]
TABLE OF CONTENTS
Section Page
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Article I. DEFINITIONS AND ACCOUNTING TERMS................................................. 1
1.01 Defined Terms................................................................ 1
1.02 Other Interpretive Provisions................................................ 24
1.03 Accounting Terms............................................................. 24
1.04 Rounding..................................................................... 25
1.05 References to Agreements and Laws............................................ 25
1.06 Exchange Rates; Currency Equivalents......................................... 25
1.07 Additional Alternative Currencies............................................ 26
1.08 Redenomination of Certain Alternative Currencies............................. 26
Article II. THE COMMITMENTS AND CREDIT EXTENSIONS........................................... 26
2.01 Loans........................................................................ 26
2.02 Borrowings, Conversions and Continuations of Loans........................... 27
2.03 Letters of Credit............................................................ 29
2.04 Prepayments.................................................................. 36
2.05 Reduction or Termination of Commitments...................................... 36
2.06 Repayment of Loans........................................................... 37
2.07 Interest..................................................................... 37
2.08 Fees......................................................................... 37
2.09 Computation of Interest and Fees............................................. 38
2.10 Evidence of Debt............................................................. 38
2.11 Payments Generally........................................................... 39
2.12 Sharing of Payments.......................................................... 41
2.13 Increase in Commitments...................................................... 41
2.14 Security and Guaranties...................................................... 43
Article III. TAXES, YIELD PROTECTION AND ILLEGALITY......................................... 43
3.01 Taxes........................................................................ 43
3.02 Illegality................................................................... 45
3.03 Inability to Determine Rates................................................. 45
3.04 Increased Cost and Reduced Return; Capital Adequacy; Reserves on
Eurocurrency Rate Loans...................................................... 46
3.05 Compensation for Losses...................................................... 47
3.06 Matters Applicable to all Requests for Compensation.......................... 47
3.07 Survival..................................................................... 48
Article IV. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS....................................... 48
4.01 Conditions of Initial Credit Extension....................................... 48
4.02 Conditions to all Credit Extensions.......................................... 51
Article V. REPRESENTATIONS AND WARRANTIES................................................... 51
5.01 Existence, Qualification and Power; Compliance with Laws..................... 52
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Section Page
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5.02 Authorization; No Contravention.............................................. 52
5.03 Governmental Authorization; Other Consents................................... 52
5.04 Binding Effect............................................................... 52
5.05 Financial Statements; No Material Adverse Effect............................. 53
5.06 Litigation................................................................... 53
5.07 No Default................................................................... 53
5.08 Ownership of Property; Liens................................................. 54
5.09 Environmental Compliance..................................................... 54
5.10 Insurance.................................................................... 54
5.11 Taxes........................................................................ 54
5.12 ERISA Compliance; Foreign Plans.............................................. 54
5.13 Subsidiaries................................................................. 55
5.14 Margin Regulations; Investment Company Act; Public Utility Holding
Company Act.................................................................. 56
5.15 Disclosure................................................................... 56
5.16 Intellectual Property; Licenses, Etc......................................... 56
5.17 Pledge....................................................................... 57
5.18 Consummation of SCI Merger................................................... 57
5.19 Merger Representations....................................................... 57
Article VI. AFFIRMATIVE COVENANTS........................................................... 57
6.01 Financial Statements......................................................... 57
6.02 Certificates; Other Information.............................................. 58
6.03 Notices...................................................................... 59
6.04 Payment of Obligations....................................................... 60
6.05 Preservation of Existence, Etc............................................... 60
6.06 Maintenance of Properties.................................................... 60
6.07 Maintenance of Insurance..................................................... 60
6.08 Compliance with Laws......................................................... 60
6.09 Books and Records............................................................ 61
6.10 Inspection Rights............................................................ 61
6.11 Compliance with ERISA and Foreign Plans...................................... 61
6.12 Use of Proceeds.............................................................. 61
6.13 Change in Material Subsidiaries.............................................. 62
6.14 Opinions of Counsel Concerning Foreign Subsidiaries; Additional Items........ 64
6.15 Further Assurances........................................................... 64
6.16 Hadco Subordinated Notes..................................................... 64
Article VII. NEGATIVE COVENANTS............................................................. 65
7.01 Liens........................................................................ 65
7.02 Investments.................................................................. 67
7.03 Indebtedness................................................................. 69
7.04 Fundamental Changes.......................................................... 71
7.05 Dispositions................................................................. 71
7.06 Lease Obligations............................................................ 72
7.07 Restricted Payments.......................................................... 73
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Section Page
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7.08 ERISA; Foreign Plans......................................................... 73
7.09 Change in Nature of Business................................................. 74
7.10 Transactions with Affiliates................................................. 74
7.11 Burdensome Agreements........................................................ 74
7.12 Use of Proceeds.............................................................. 74
7.13 Financial Covenants.......................................................... 74
7.14 SCI Merger Documents......................................................... 75
Article VIII. EVENTS OF DEFAULT AND REMEDIES................................................ 75
8.01 Events of Default............................................................ 75
8.02 Remedies Upon Event of Default............................................... 78
Article IX. ADMINISTRATIVE AGENT............................................................ 78
9.01 Appointment and Authorization of Administrative Agent........................ 78
9.02 Delegation of Duties......................................................... 79
9.03 Liability of Administrative Agent............................................ 79
9.04 Reliance by Administrative Agent............................................. 80
9.05 Notice of Default............................................................ 80
9.06 Credit Decision; Disclosure of Information by Administrative Agent........... 81
9.07 Indemnification of Administrative Agent...................................... 81
9.08 Administrative Agent in its Individual Capacity.............................. 82
9.09 Successor Administrative Agent............................................... 82
9.10 Other Agents; Lead Managers.................................................. 83
9.11 Collateral Matters........................................................... 83
Article X. MISCELLANEOUS.................................................................... 83
10.01 Amendments, Etc.............................................................. 83
10.02 Notices and Other Communications; Facsimile Copies........................... 85
10.03 No Waiver; Cumulative Remedies............................................... 86
10.04 Attorney Costs, Expenses and Taxes........................................... 86
10.05 Indemnification by the Company............................................... 86
10.06 Marshalling; Payments Set Aside.............................................. 87
10.07 Successors and Assigns....................................................... 87
10.08 Confidentiality.............................................................. 90
10.09 Set-off...................................................................... 91
10.10 Interest Rate Limitation..................................................... 91
10.11 Counterparts................................................................. 92
10.12 Integration.................................................................. 92
10.13 Survival of Representations and Warranties................................... 92
10.14 Severability................................................................. 92
10.15 Addition of Designated Borrowers............................................. 92
10.16 Tax Forms.................................................................... 93
10.17 Removal and Replacement of Lenders........................................... 94
10.18 Governing Law................................................................ 95
10.19 Waiver of Right to Trial by Jury............................................. 95
10.20 Waiver of Immunity........................................................... 96
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Section Page
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10.21 Judgment Currency............................................................ 96
10.22 Designation as Senior Debt................................................... 96
iv
SCHEDULES
1.01 Mandatory Cost Rate
2.01 Commitments and Pro Rata Shares
10.02 Eurocurrency and Domestic Lending Offices, Addresses for Notices
EXHIBITS
FORM OF
A Notice
B Note
C Compliance Certificate
D Assignment and Acceptance
E Stock Pledge Agreement
F Company Guaranty
G Subsidiary Guaranty
H Designated Borrower Request and Assumption Agreement
I Designated Borrower Notice
J Opinion of U.S. Company Counsel
K Joinder Agreement
v
CREDIT AGREEMENT
(MULTI-YEAR)
This CREDIT AGREEMENT (MULTI-YEAR) (this "Agreement") is entered into as
of December 6, 2001 among SANMINA CORPORATION, a Delaware corporation (the
"Company"), certain Subsidiaries of the Company that from time to time become
parties hereto pursuant to Section 10.15 (each a "Designated Borrower" and,
together with the Company, the "Borrowers" and, each a "Borrower"), each lender
from time to time party hereto (collectively, the "Lenders" and individually, a
"Lender") and BANK OF AMERICA, N.A., as Administrative Agent and L/C Issuer.
The Company has requested that the Lenders provide a revolving
multicurrency credit facility with a letter of credit subfacility, and the
Lenders are willing to do so on the terms and conditions set forth herein.
In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:
ARTICLE I.
DEFINITIONS AND ACCOUNTING TERMS
1.01 DEFINED TERMS. As used in this Agreement, the following terms shall
have the meanings set forth below:
"Acquisition" means any transaction or series of related transactions
for the purpose of or resulting, directly or indirectly, in (a) the acquisition
of all or substantially all of the assets of a Person, or of any business or
division of a Person, (b) the acquisition of in excess of 50% of the capital
stock, partnership interests, membership interests or equity of any Person, or
otherwise causing any Person to become a Subsidiary, or (c) a merger or
consolidation or any other combination with another Person (other than a Person
that is a Subsidiary of the Company).
"Administrative Agent" means Bank of America in its capacity as
administrative agent under any of the Loan Documents, or any successor
administrative agent.
"Administrative Agent's Office" means, with respect to any currency, the
Administrative Agent's address and, as appropriate, account as set forth on
Schedule 10.02 with respect to such currency, or such other address or account
with respect to such currency as the Administrative Agent may from time to time
notify to the Company and the Lenders.
"Affiliate" means, as to any Person, any other Person directly or
indirectly controlling, controlled by, or under direct or indirect common
control with, such Person. A Person shall be deemed to be "controlled by" any
other Person if such other Person possesses, directly or indirectly, power (a)
to vote 10% or more of the securities having ordinary voting power for the
election of directors or managing general partners; or (b) to direct or cause
the direction of the management and policies of such Person whether through
ownership of voting securities, by contract or otherwise.
"Agent-Related Persons" means the Administrative Agent and the
Collateral Agent (including any successor agent or agents), together with their
Affiliates (including, in the case of Bank of America in its capacity as the
Administrative Agent, the Collateral Agent and the Arranger), and the officers,
directors, employees, agents and attorneys-in-fact of such Persons and
Affiliates.
"Aggregate Commitments" means the Commitments of the Lenders.
"Agreement" means this Credit Agreement.
"Alternative Currency" means each of Euro, Krona, Sterling, Yen and each
other lawful currency (other than Dollars) that is freely available and freely
transferable and convertible into Dollars and which is approved by all the
Lenders in accordance with Section 1.07.
"Alternative Currency Equivalent" means, at any time, with respect to
any amount denominated in Dollars, the equivalent amount thereof in the
applicable Alternative Currency as determined by the Administrative Agent at
such time on the basis of the Spot Rate (determined in respect of the most
recent Revaluation Date) for the purchase of such Alternative Currency with
Dollars.
"Alternative Currency Sublimit" means an amount equal to the lesser of
the Aggregate Commitments and $100,000,000. The Alternative Currency Sublimit is
part of, and not in addition to, the Aggregate Commitments.
"Applicable Currency" has the meaning specified in Section 3.02.
"Applicable Rate" means, from time to time, the following percentages
per annum, based upon the Debt Rating existing at such time:
Pricing Debt Rating Base Eurocurrency Utilization Facility
Level S&P / Xxxxx'x Rate Rate & L/Cs Fee Fee
------- --------------- ------ ------------ ----------- --------
1 >/- BBB / Baa2 0% 0.700% 0.125% 0.175%
2 BBB- / Baa3 0% 0.900% 0.125% 0.225%
3 BB+ / Ba1 0% 1.000% 0.250% 0.250%
4 BB / Ba2 0% 1.100% 0.250% 0.400%
5
