Exhibit 4.1
CREDIT AGREEMENT
among
AT&T COMCAST CORPORATION
AT&T BROADBAND CORP.
The Financial Institutions Party Hereto
JPMORGAN CHASE BANK,
as Administrative Agent, Swing Line Lender
and
Issuing Lender
CITIBANK, N.A.,
as Syndication Agent
and
BANK OF AMERICA, N.A.,
XXXXXXX XXXXX & CO.,
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
and
XXXXXX XXXXXXX SENIOR FUNDING, INC.
as Co-Documentation Agents
Dated as of April 26, 2002
X.X. XXXXXX SECURITIES INC.
and
XXXXXXX XXXXX XXXXXX INC.,
as
Joint Lead Arrangers and Joint Bookrunners
BANC OF AMERICA SECURITIES LLC,
XXXXXXX XXXXX & CO.,
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
and
XXXXXX XXXXXXX SENIOR FUNDING, INC.
as Co-Arrangers
TABLE OF CONTENTS
PAGE
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS.....................................1
1.01 Defined Terms.......................................................1
1.02 Use of Certain Terms...............................................17
1.03 Accounting Terms...................................................17
1.04 Rounding...........................................................18
1.05 Exhibits and Schedules.............................................18
1.06 References to Agreements and Laws..................................18
1.07 Pro Forma Calculations.............................................18
SECTION 2 THE COMMITMENTS AND EXTENSIONS OF CREDIT............................19
2.01 Amount and Terms of Revolving Commitments..........................19
2.02 Procedure for Revolving Loan Borrowings............................19
2.03 Letters of Credit..................................................20
2.04 Swing Line Loans...................................................24
2.05 Prepayments of Revolving Loans.....................................26
2.06 Reduction or Termination of Revolving Commitments..................25
2.07 Term Loans.........................................................25
2.08 Procedure for Borrowing of Term Loans..............................25
2.09 Repayment of Term Loans............................................26
2.10 Documentation of Loans.............................................26
2.11 Continuation and Conversion Option.................................27
2.12 Interest...........................................................27
2.13 Fees...............................................................28
2.14 Computation of Interest and Fees...................................29
2.15 Making Payments....................................................29
2.16 Funding Sources....................................................30
SECTION 3 TAXES, YIELD PROTECTION AND ILLEGALITY..............................30
3.01 Taxes..............................................................30
3.02 Illegality.........................................................31
3.03 Inability to Determine Eurodollar Rates............................31
3.04 Increased Cost and Reduced Return; Capital Adequacy................31
3.05 Breakfunding Costs.................................................32
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3.06 Matters Applicable to all Requests for Compensation................32
3.07 Survival...........................................................33
SECTION 4 CONDITIONS PRECEDENT TO EXTENSIONS OF CREDIT........................33
4.01 Conditions Precedent to Effective Date.............................33
4.02 Conditions to all Extensions of Credit.............................35
SECTION 5 REPRESENTATIONS AND WARRANTIES......................................36
5.01 Existence and Qualification; Power; Compliance with Laws...........36
5.02 Power; Authorization; Enforceable Obligations......................36
5.03 No Legal Bar.......................................................36
5.04 Financial Statements; No Material Adverse Effect...................36
5.05 Litigation.........................................................37
5.06 No Default.........................................................37
5.07 Authorizations.....................................................37
5.08 Taxes..............................................................37
5.09 Margin Regulations; Investment Company Act; Public
Utility Holding Company Act........................................37
5.10 ERISA Compliance...................................................37
5.11 Assets; Liens......................................................38
5.12 Environmental Compliance...........................................38
5.13 Use of Proceeds....................................................38
5.14 Disclosure.........................................................38
SECTION 6 AFFIRMATIVE COVENANTS...............................................39
6.01 Financial Statements...............................................39
6.02 Certificates, Notices and Other Information........................39
6.03 Payment of Taxes...................................................40
6.04 Preservation of Existence..........................................40
6.05 Maintenance of Properties..........................................40
6.06 Maintenance of Insurance...........................................40
6.07 Compliance With Laws...............................................41
6.08 Inspection Rights..................................................41
6.09 Keeping of Records and Books of Account............................41
6.10 Compliance with ERISA..............................................41
6.11 Compliance With Agreements.........................................41
6.12 Use of Proceeds....................................................41
6.13 Designation of Unrestricted Companies..............................41
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SECTION 7 NEGATIVE COVENANTS..................................................42
7.01 Liens..............................................................42
7.02 Subsidiary Indebtedness............................................43
7.03 Fundamental Changes................................................43
7.04 ERISA..............................................................44
7.05 Limitations on Upstreaming.........................................44
7.06 Margin Regulations.................................................44
7.07 Financial Covenants................................................44
SECTION 8 EVENTS OF DEFAULT AND REMEDIES......................................45
8.01 Events of Default..................................................45
8.02 Remedies Upon Event of Default.....................................46
SECTION 9 THE AGENTS..........................................................47
9.01 Appointment........................................................47
9.02 Delegation of Duties...............................................48
9.03 Exculpatory Provisions.............................................48
9.04 Reliance by Administrative Agent...................................48
9.05 Notice of Default..................................................48
9.06 Non-Reliance on Agents and Other Lenders...........................49
9.07 Indemnification....................................................49
9.08 Agent in Its Individual Capacity...................................49
9.09 Successor Administrative Agent.....................................50
9.10 Documentation Agents and Syndication Agent.........................50
SECTION 10 MISCELLANEOUS......................................................50
10.01 Amendments; Consents...............................................50
10.02 Requisite Notice; Effectiveness of Signatures
and Electronic Mail................................................51
10.03 Attorney Costs, Expenses and Taxes.................................52
10.04 Binding Effect; Assignment.........................................53
10.05 Set-off............................................................54
10.06 Sharing of Payments................................................55
10.07 No Waiver; Cumulative Remedies.....................................55
10.08 Usury..............................................................55
10.09 Counterparts.......................................................56
10.10 Integration........................................................56
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10.11 Nature of Lenders' Obligations.....................................56
10.12 Survival of Representations and Warranties.........................56
10.13 Indemnity by Borrower..............................................56
10.14 Nonliability of Lenders............................................57
10.15 No Third Parties Benefitted........................................58
10.16 Severability.......................................................58
10.17 Confidentiality....................................................58
10.18 Headings...........................................................59
10.19 Time of the Essence................................................59
10.20 Foreign Lenders....................................................59
10.21 Removal and Replacement of Lenders.................................59
10.22 Governing Law......................................................60
10.23 Waiver of Right to Trial by Jury...................................60
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EXHIBITS
A Form of Guarantee Agreement
B Form of Request for Extension of Credit
C Form of Compliance Certificate
D Form of Assignment and Acceptance
SCHEDULES
A Excluded Indebtedness
2.01 Commitments
7.01 Existing Liens
7.02 Existing Subsidiary Indebtedness
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CREDIT AGREEMENT
This CREDIT AGREEMENT is entered into as of April 26, 2002, by and
among AT&T COMCAST CORPORATION, a Pennsylvania corporation ("Borrower"), AT&T
BROADBAND CORP., a Delaware corporation, each lender from time to time party
hereto (collectively, "Lenders" and individually, a "Lender"), JPMORGAN CHASE
BANK, as Administrative Agent, Swing Line Lender and an Issuing Lender,
CITIBANK, N.A., as syndication agent (in such capacity, "Syndication Agent"),
and BANK OF AMERICA, N.A., XXXXXXX XXXXX & CO., XXXXXXX LYNCH, PIERCE, XXXXXX &
XXXXX INCORPORATED and XXXXXX XXXXXXX SENIOR FUNDING, INC., as co-documentation
agents (in such capacity, "Co-Documentation Agents").
RECITAL
Borrower has requested that Lenders, Swing Line Lender and Issuing
Lender provide a revolving line of credit and a term loan facility, and Lenders,
Swing Line Lender, Issuing Lender and Administrative Agent 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:
SECTION 1
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 (a) any purchase or other acquisition of
assets or series of related purchases or other acquisitions of assets by
Borrower or any Restricted Subsidiary (including by way of asset or stock
purchase, swap or merger) other than from Borrower or any Restricted Subsidiary
or (b) the designation by Borrower of an Unrestricted Subsidiary as a Restricted
Subsidiary.
"Administrative Agent" means JPMorgan Chase Bank, in its capacity
as administrative agent under any of the Loan Documents, or any successor
administrative agent permitted under the Loan Documents.
"Administrative Agent's Office" means Administrative Agent's
address and, as appropriate, account set forth below its signature to this
Agreement, or such other address or account as Administrative Agent hereafter
may designate by written notice to Borrower and Lenders.
"Administrative Agent-Related Persons" means Administrative Agent
(including any successor agent), together with its Affiliates and the officers,
directors, employees, agents and attorneys-in-fact of such Persons and
Affiliates.
"Administrative Questionnaire" means, with respect to each Lender,
an administrative questionnaire in the form prepared by Administrative Agent and
submitted to Administrative Agent (with a copy to Borrower) duly completed by
such Lender.
"Affiliate" means, as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under direct
or indirect common control with, such Person.
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"Agents" means the collective reference to Administrative Agent,
Syndication Agent and Co-Documentation Agents.
"Aggregate Exposure" means, with respect to any Lender at any
time, an amount equal to (a) until the Effective Date, the aggregate Commitments
of such Lender at such time and (b) thereafter, the sum of (i) the aggregate
then unpaid principal amount of such Lender's Term Loans and (ii) the amount of
such Lender's Revolving Commitment then in effect or, if the Revolving
Commitments have been terminated, the amount of such Lender's Outstanding
Revolving Obligations.
"Aggregate Exposure Percentage" means, with respect to any Lender
at any time, the ratio (expressed as a percentage) of such Lender's Aggregate
Exposure at such time to the Aggregate Exposure of all Lenders at such time.
"Agreement" means this Credit Agreement, as amended, restated,
extended, supplemented or otherwise modified in writing from time to time.
"Annualized EBITDA" means, at any date of determination, EBITDA
for the two fiscal quarter periods then most recently ended times two (2);
provided that (x) for the purposes of calculating the Interest Coverage Ratio at
December 31, 2002 and March 31, 2003, Annualized EBITDA shall mean EBITDA for
the period from the first day of the fiscal quarter in which the Effective Date
occurs to such date of determination and (y) for the purposes of calculating the
Leverage Ratio at March 31, 2003, Annualized EBITDA shall mean EBITDA for the
fiscal quarter then ended times four (4).
"Annualized Interest Expense" means, at any date of determination,
Interest Expense for the two fiscal quarter periods then most recently ended
times two (2); provided that for the purposes of calculating the Interest
Coverage Ratio at December 31, 2002 and March 31, 2003, Annualized Interest
Expense shall mean Interest Expense for the period from the first day of the
fiscal quarter in which the Effective Date occurs to such date of determination.
"Applicable Amount" means the rate per annum, in basis points, set
forth under the relevant column heading below based upon the applicable Debt
Ratings:
REVOLVING FACILITY
PRICING DEBT RATINGS COMMITMENT BASE EURODOLLAR RATE/ UTILIZATION FEE UTILIZATION FEE
LEVEL S&P/XXXXX'X FEE RATE LETTERS OF CREDIT (>33.3%) (>66.7%)
------- ------------ ---------- ---- ----------------- --------------- ---------------
1 >A/A2 8.5 0 22.5 12.5 25.0
2 A-/A3 10.0 0 37.5 12.5 25.0
3 BBB+/Baa1 12.5 0 62.5 12.5 25.0
4 BBB/Baa2 15.0 0 87.5 12.5 25.0
5 BBB-/Baa3 18.0 12.5 112.5 12.5 25.0
6 A/A2 0 47.5
2 A-/A3 0 62.5
3 BBB+/Baa1 0 87.5
4 BBB/Baa2 12.5 112.5
5 BBB-/Baa3 37.5 137.5
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