EXHIBIT 10.25
364-DAY/1-YEAR TERM-OUT CREDIT AGREEMENT
DATED AS OF JUNE 19, 2003
AMONG
VISTEON CORPORATION, AS BORROWER,
THE SEVERAL BANKS
FROM TIME TO TIME PARTIES HERETO,
JPMORGAN CHASE BANK,
AS ADMINISTRATIVE AGENT,
AND
CITIBANK, N.A.,
AS SYNDICATION AGENT
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X.X. XXXXXX SECURITIES INC. AND
CITIGROUP GLOBAL MARKETS INC.,
AS JOINT LEAD ARRANGERS AND JOINT BOOKRUNNERS
TABLE OF CONTENTS
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SECTION 1. DEFINITIONS..........................................................................................1
SECTION 2. THE LOANS...........................................................................................13
2.1 The Commitment; Termination Date; Increase in Commitments.........................................13
2.2 Proceeds of Loans.................................................................................15
2.3 Facility Fee; Utilization Fee.....................................................................15
2.4 Xxxx-to-Market....................................................................................15
2.5 Optional Termination or Reduction of Commitments..................................................16
2.6 Notice of Borrowing; Procedure....................................................................16
2.7 CAF Advances......................................................................................18
2.8 Procedure for CAF Advance Borrowing...............................................................18
2.9 CAF Advance Payments..............................................................................22
2.10 Certain Restrictions..............................................................................22
2.11 Promise to Pay CAF Advances; Evidence of CAF Advances.............................................22
2.12 Extension of Term of Loans; Conversion of Loans...................................................23
2.13 Register..........................................................................................25
2.14 Interest Rates....................................................................................26
2.15 Interest Payment Dates............................................................................26
2.16 Overdue Principal and Interest....................................................................27
2.17 Dates for Payment or Optional Prepayment of Principal.............................................27
2.18 Optional Prepayment on Other Dates; Reimbursement for Certain Costs...............................28
2.19 Method of Payment.................................................................................28
2.20 Pro Rata Treatment and Payments...................................................................29
2.21 Limitation on Eurocurrency Tranches...............................................................30
SECTION 3. [RESERVED]..........................................................................................30
SECTION 4. GUARANTEE OF LOANS TO AFFILIATES....................................................................30
SECTION 5. CONDITIONS TO LOANS AND CAF ADVANCES................................................................31
5.1 Each Loan or CAF Advance to the Company or any Affiliate..........................................31
5.2 First Loan or CAF Advance to the Company or any Affiliate.........................................32
SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.......................................................34
6.1 Corporate Authority of the Company, etc...........................................................34
6.2 Financial Statements..............................................................................35
6.3 Litigation........................................................................................35
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6.4 Use of Proceeds...................................................................................35
6.5 Compliance with ERISA.............................................................................35
SECTION 7. COVENANTS...........................................................................................35
7.1 Reports; Certificate as to Default................................................................36
7.2 Further Information...............................................................................36
7.3 Liens.............................................................................................37
7.4 Sale-Leasebacks...................................................................................37
7.5 Mergers and Consolidations........................................................................38
7.6 Additional Covenants..............................................................................38
7.7 ERISA.............................................................................................38
7.8 Notification......................................................................................39
7.9 Consolidated Leverage Ratio.......................................................................39
SECTION 8. DEFAULT.............................................................................................39
8.1 Defaults Relating to the Company..................................................................39
8.2 Defaults Relating to Affiliates...................................................................40
8.3 Defaults Relating to Bankruptcy of the Company....................................................41
SECTION 9. ASSIGNMENT; PARTICIPATIONS..........................................................................42
9.1 Assignment........................................................................................42
9.2 Participation.....................................................................................44
SECTION 10. CHANGE IN CIRCUMSTANCES............................................................................45
10.1 Basis for Determining Interest Rate Inadequate or Unfair..........................................45
10.2 Illegality........................................................................................45
10.3 Increased Cost....................................................................................46
10.4 Withholding Taxes.................................................................................49
10.5 Replacement of Banks..............................................................................51
SECTION 11. THE AGENTS.........................................................................................51
11.1 Appointment.......................................................................................52
11.2 Delegation of Duties..............................................................................52
11.3 Exculpatory Provisions............................................................................52
11.4 Reliance by Administrative Agent..................................................................52
11.5 Notice of Default.................................................................................53
11.6 Non-Reliance on Agents and Other Banks............................................................53
11.7 Indemnification...................................................................................54
11.8 Agent in Its Individual Capacity..................................................................54
11.9 Successor Administrative Agent....................................................................54
11.10 Syndication Agent.................................................................................55
SECTION 12. MISCELLANEOUS......................................................................................55
12.1 Notices...........................................................................................55
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12.2 Term of Agreement.................................................................................56
12.3 No Waivers........................................................................................56
12.4 New York Law and Jurisdiction.....................................................................56
12.5 Entire Agreement..................................................................................57
12.6 Payment of Certain Expenses.......................................................................57
12.7 Judgment Currency.................................................................................58
12.8 Changes, Waivers, etc.; Adjustments...............................................................59
12.9 Severability......................................................................................59
12.10 Successors and Assigns............................................................................60
12.11 Counterparts......................................................................................60
12.12 Third Party Beneficiaries.........................................................................60
12.13 Electronic Recording..............................................................................60
12.14 Aggregation or Comparison of Amounts in Different Currencies; Calculation of Certain Fees.........60
364-DAY/1-YEAR TERM-OUT CREDIT AGREEMENT
This 364-DAY/1-YEAR TERM-OUT CREDIT AGREEMENT, dated as of June 19,
2003, is among VISTEON CORPORATION, a Delaware corporation (the "Company"), the
several banks and other financial institutions or entities from time to time
parties to this Agreement (the "Banks"), JPMORGAN CHASE BANK, a New York banking
corporation, as administrative agent (the "Administrative Agent"), and CITIBANK,
N.A., as syndication agent (the "Syndication Agent").
The Company desires to obtain a revolving credit facility for itself
and its Affiliates in the aggregate amount of U.S. $530,000,000 or the
Equivalent thereof (as hereinafter defined) at any one time outstanding, and the
Banks and Administrative Agent are willing to provide such revolving credit
facility and to make Loans to the Company and the Affiliates, subject to the
terms and conditions set forth below.
SECTION 1. DEFINITIONS
The following terms, as used herein, have the following respective
meanings:
"Accession Memorandum" means a memorandum of an Affiliate substantially
in the form of Exhibit A hereto evidencing the Affiliate's agreement to be bound
by the terms of this Agreement; provided that such a memorandum shall contain
such changes or additional provisions as may be deemed necessary by mutual
agreement of the Administrative Agent, the Affiliate and the Company.
"Administrative Agent" has the meaning set forth in the preamble, it
being understood that matters concerning Foreign Currency Loans will be
administered by X.X. Xxxxxx Europe Limited and therefore all notices concerning
such Foreign Currency Loans will be required to be given at the Foreign Currency
Notice Office.
"Affected Foreign Currency" has the meaning set forth in Section
10.1(c).
"Affiliate" means any direct or indirect majority-owned subsidiary of
the Company and any partnership of which the Company or a direct or indirect
majority-owned subsidiary of the Company is a general or unlimited partner. For
purposes of this definition, "majority-owned" means ownership of more than 50%
of the capital stock of or other equity interest in, or more than 50% of the
voting power with respect to, an entity.
"Affiliate Event of Default" has the meaning set forth in Section 8.2.
"Agents" means the Administrative Agent and the Syndication Agent
collectively.
"Aggregate Commitments" means, at any time, the aggregate amount of the
Commitments then in effect. The original amount of the Aggregate Commitments is
$530,000,000.
2
"Aggregate Exposure" means, with respect to any Bank at any time, an
amount equal to the principal amount of such Bank's Commitment then in effect
or, if the Commitments have been terminated, the principal amount of the Loans
held by such Bank then outstanding.
"Aggregate Exposure Percentage" means, with respect to any Bank at any
time, the ratio (expressed as a percentage) of such Bank's Aggregate Exposure at
such time to the Aggregate Exposure of all Banks at such time.
"Aggregate Extensions of Credit" means at any time, the aggregate
amount of Extensions of Credit of the Banks outstanding at such time.
"Aggregate Loans" means the total principal amount of all outstanding
Loans.
"Agreement" means this 364-Day/1-Year Term-Out Credit Agreement,
together with the exhibits hereto, as amended from time to time.
"Annual Report" has the meaning set forth in Section 7.1(a).
"Assignment and Acceptance" means an Assignment and Acceptance,
substantially in the form of Exhibit G.
"Augmenting Bank" has the meaning set forth in Section 2.1(c).
"Available Commitment" means as to any Bank at any time, an amount
equal to the excess, if any, of (a) such Bank's Commitment then in effect over
(b) such Bank's Extensions of Credit then outstanding.
"Banks" has the meaning provided in the preamble hereto; provided, that
unless the context otherwise requires, each reference herein to the Banks shall
be deemed to include any Conduit Bank.
"Bank's Actual Reserve Cost" has the meaning set forth in Section
10.3(b).
"Base Rate" means for any day the greater of (i) an annual rate of
interest equal to that announced generally from time to time by the
Administrative Agent at its Domestic Lending Office as its prime rate, base rate
or equivalent rate and in effect on such day and (ii) the Federal Funds
Effective Rate plus 0.50%.
"Base Rate Loan" means any loan hereunder denominated in United States
dollars which the Company (on behalf of itself or an Affiliate) specifies
pursuant to Section 2.6 or Section 2.12 as a Base Rate Loan.
"Base Rate Margin" means the applicable amount as set forth on the
Pricing Grid; provided, however, that in the event (x) the Commitments are
terminated pursuant to Section 8.1 or after the Termination Date Loans or CAF
Advances remain outstanding hereunder and (y) the Base Rate Margin is then
determined by reference to the margin opposite the rating category " BBB/Baa2 12.5 62.5 0.0
BBB/Baa2 15.0 85.0 0.0
< BBB/Baa2 17.5 107.5 0.0
The applicable Facility Fee, Eurocurrency Margin and Base Rate Margin
shall be determined based upon the long-term senior unsecured
non-credit-enhanced debt ratings as provided by S&P or Xxxxx'x. In the event
that S&P and Xxxxx'x ratings of the Company are not equivalent, the applicable
Facility Fee, Eurocurrency Margin and Base Rate Margin will be determined by the
higher rating. In the event that either S&P or Xxxxx'x ceases to provide a
long-term senior unsecured non-credit-enhanced debt rating for the Company, the
applicable Facility Fee, Eurocurrency Margin and Base Rate Margin will be
determined by reference to the rating issued by the other rating agency. For any
period in which neither S&P nor Xxxxx'x provides a long-term senior unsecured
non-credit-enhanced debt rating for the Company, the rating shall for purposes
of this definition be
