Exhibit 4.1
CONFORMED COPY
$1,300,000,000
CREDIT AGREEMENT
among
KEYSPAN CORPORATION,
as Borrower,
The Several Lenders
from Time to Time Parties Hereto,
ABN AMRO BANK N.V.
and
CITIBANK N.A.,
as Co-Syndication Agents,
THE BANK OF NEW YORK
and
THE ROYAL BANK OF SCOTLAND PLC,
as Co-Documentation Agents,
and
JPMORGAN CHASE BANK,
as Administrative Agent
Dated as of July 9, 2002
X.X. XXXXXX SECURITIES INC.,
Lead Arranger and Bookrunner
TABLE OF CONTENTS
Page
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Section 1 DEFINITIONS.....................................................................................1
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1.1 Defined Terms...................................................................................1
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1.2 Other Definitional Provisions..................................................................14
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Section 2 AMOUNT AND TERMS OF COMMITMENTS................................................................15
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2.1 Commitments....................................................................................15
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2.2 Competitive Bid Procedure......................................................................15
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2.3 Procedure for Loan Borrowing...................................................................17
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2.4 Facility Fees, etc.............................................................................17
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2.5 Termination or Reduction of Commitments........................................................17
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2.6 Optional Prepayments...........................................................................17
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2.7 Conversion and Continuation Options............................................................18
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2.8 Limitations on Eurodollar Tranches.............................................................18
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2.9 Interest Rates and Payment Dates...............................................................18
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2.10 Computation of Interest and Fees...............................................................19
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2.11 Inability to Determine Interest Rate...........................................................19
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2.12 Pro Rata Treatment and Payments................................................................20
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2.13 Requirements of Law............................................................................21
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2.14 Taxes..........................................................................................22
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2.15 Indemnity......................................................................................23
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2.16 Change of Lending Office.......................................................................24
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2.17 Replacement of Lenders.........................................................................24
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Section 3 REPRESENTATIONS AND WARRANTIES.................................................................24
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3.1 Financial Condition............................................................................24
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3.2 No Change......................................................................................25
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3.3 Corporate Existence; Compliance with Law.......................................................25
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3.4 Corporate Power; Authorization; Enforceable Obligations........................................25
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3.5 No Legal Bar...................................................................................25
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3.6 Litigation.....................................................................................25
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3.7 No Default.....................................................................................26
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3.8 Ownership of Property; Liens...................................................................26
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3.9 Intellectual Property..........................................................................26
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3.10 Taxes..........................................................................................26
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3.11 Federal Regulations............................................................................26
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3.12 Labor Matters..................................................................................26
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3.13 ERISA..........................................................................................26
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3.14 Investment Company Act; Other Regulations......................................................27
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3.15 Subsidiaries...................................................................................27
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3.16 Use of Proceeds................................................................................27
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3.17 Environmental Matters..........................................................................27
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3.18 Accuracy of Information, etc...................................................................28
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Section 4 CONDITIONS PRECEDENT...........................................................................28
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4.1 Conditions to Closing Date.....................................................................28
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4.2 Conditions to Initial Extension of Credit......................................................29
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4.3 Conditions to Each Extension of Credit.........................................................29
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Section 5 AFFIRMATIVE COVENANTS..........................................................................30
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5.1 Financial Statements...........................................................................30
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5.2 Certificates; Other Information................................................................30
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5.3 Payment of Obligations.........................................................................31
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5.4 Maintenance of Existence; Compliance...........................................................31
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5.5 Maintenance of Property; Insurance.............................................................31
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5.6 Inspection of Property; Books and Records; Discussions.........................................31
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5.7 Notices........................................................................................31
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5.8 Environmental Laws.............................................................................32
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5.9 Transaction with Affiliates....................................................................32
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Section 6 NEGATIVE COVENANTS.............................................................................32
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6.1 Financial Condition Covenant...................................................................32
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6.2 Liens..........................................................................................32
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6.3 Fundamental Changes............................................................................33
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6.4 Disposition of Property........................................................................34
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6.5 Negative Pledge Clauses........................................................................34
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6.6 Limitation on Restrictions on Distributions from Subsidiaries..................................34
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Section 7 EVENTS OF DEFAULT..............................................................................34
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Section 8 THE ADMINISTRATIVE AGENT.......................................................................37
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8.1 Appointment....................................................................................37
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8.2 Delegation of Duties...........................................................................37
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8.3 Exculpatory Provisions.........................................................................37
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8.4 Reliance by Administrative Agent...............................................................37
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8.5 Notice of Default..............................................................................38
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8.6 Non-Reliance on Administrative Agent and Other Lenders.........................................38
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8.7 Indemnification................................................................................38
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8.8 Administrative Agent in Its Individual Capacity................................................39
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8.9 Successor Administrative Agent.................................................................39
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Section 9 MISCELLANEOUS..................................................................................39
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9.1 Amendments and Waivers.........................................................................39
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9.2 Notices........................................................................................40
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9.3 No Waiver; Cumulative Remedies.................................................................40
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9.4 Survival of Representations and Warranties.....................................................41
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9.5 Payment of Expenses and Taxes..................................................................41
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9.6 Successors and Assigns; Participations and Assignments.........................................42
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9.7 Adjustments; Set-off...........................................................................43
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9.8 Counterparts...................................................................................44
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9.9 Severability...................................................................................44
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9.10 Integration....................................................................................44
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9.11 GOVERNING LAW..................................................................................44
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9.12 Submission To Jurisdiction; Waivers............................................................44
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9.13 Acknowledgements...............................................................................45
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9.14 Confidentiality................................................................................45
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9.15 WAIVERS OF JURY TRIAL..........................................................................45
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SCHEDULES:
1.1 Commitments
3.4 Consents, Authorizations, Filings and Notices
3.15 Subsidiaries
6.2(f) Existing Liens
6.5 Existing Negative Pledge Clauses
6.6 Existing Limitations on Restrictions on Distributions from Subsidiaries
EXHIBITS:
A Form of Closing Certificate
B Form of Assignment and Acceptance
C Form of Legal Opinion of Xxxxxxx X. Xxxx, Xx.
D Form of Exemption Certificate
CREDIT AGREEMENT, dated as of July 9, 2002, among KEYSPAN
CORPORATION, a New York corporation (the "Borrower"), the several banks and
other financial institutions or entities from time to time parties to this
Agreement (the "Lenders"), ABN AMRO BANK N.V., and CITIBANK N.A, as
co-syndication agents, THE BANK OF NEW YORK and THE ROYAL BANK OF SCOTLAND PLC,
as co-documentation agents, and JPMORGAN CHASE BANK, as administrative agent.
The parties hereto hereby agree as follows:
Section 1 DEFINITIONS
1.1 Defined Xxxxx.Xx used in this Agreement, the terms listed in this Section
1.1 shall have the respective meanings set forth in this Section 1.1.
"ABR": for any day, a rate per annum (rounded upwards, if necessary, to the
next 1/16 of 1%) equal to the greatest of (a) the Prime Rate in effect on such
day, (b) the Base CD Rate in effect on such day plus 1% and (c) the Federal
Funds Effective Rate in effect on such day plus 1/2 of 1%. For purposes hereof:
"Prime Rate" shall mean the rate of interest per annum publicly announced from
time to time by the Reference Lender as its prime rate in effect at its
principal office in New York City (the Prime Rate not being intended to be the
lowest rate of interest charged by the Reference Lender in connection with
extensions of credit to debtors); "Base CD Rate" shall mean the sum of (a) the
product of (i) the Three-Month Secondary CD Rate and (ii) a fraction, the
numerator of which is one and the denominator of which is one minus the C/D
Reserve Percentage and (b) the C/D Assessment Rate; and "Three-Month Secondary
CD Rate" shall mean, for any day, the secondary market rate for three-month
certificates of deposit reported as being in effect on such day (or, if such day
shall not be a Business Day, the next preceding Business Day) by the Board
through the public information telephone line of the Federal Reserve Bank of New
York (which rate will, under the current practices of the Board, be published in
Federal Reserve Statistical Release H.15(519) during the week following such
day), or, if such rate shall not be so reported on such day or such next
preceding Business Day, the average of the secondary market quotations for
three-month certificates of deposit of major money center banks in New York City
received at approximately 10:00 A.M., New York City time, on such day (or, if
such day shall not be a Business Day, on the next preceding Business Day) by the
Reference Lender from three New York City negotiable certificate of deposit
dealers of recognized standing selected by it. Any change in the ABR due to a
change in the Prime Rate, the Three-Month Secondary CD Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on the effective
day of such change in the Prime Rate, the Three-Month Secondary CD Rate or the
Federal Funds Effective Rate, respectively.
"ABR Loans": Loans the rate of interest applicable to which is based upon
the ABR.
"Administrative Agent": JPMorgan Chase Bank, together with its affiliates,
as the administrative agent for the Lenders under this Agreement and the other
Loan Documents, together with any of its successors.
"Affiliate": as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, "control" of a Person means the
power, directly or indirectly, either to (a) vote 10% or more of the securities
having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b) direct or cause the
direction of the management and policies of such Person, whether by contract or
otherwise.
"Aggregate Exposure": with respect to any Lender at any time, the amount of
such Lender's Commitments then in effect or, if the Commitments have been
terminated, the amount of such Lender's Loans then outstanding.
"Aggregate Exposure Percentage": 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": this Credit Agreement, as amended, supplemented or otherwise
modified from time to time.
"Applicable Margin": for each Type of Loan, the rate per annum set forth
under the relevant column heading below which corresponds with the most current
rating of the Borrower's senior unsecured long-term debt issued by S&P, Xxxxx'x
and/or Fitch respectively; provided that, through the Termination Date, for each
day the aggregate principal amount of Loans outstanding is greater than the
amount equal to 33% of the Total Commitments, the Applicable Margin then in
effect on all borrowings will be increased by 0.125% per annum. After the
Termination Date, the Applicable Margin then in effect will be increased by
0.125% per annum.
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Applicable Margin Applicable Margin
Ratings For Eurodollar Loans for ABR Loans
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A/A2/A 0.305% 0.000%
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A-/A3/A- 0.425% 0.000%
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BBB+/Baa1/BBB+ 0.525% 0.000%
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BBB/Baa2/BBB 0.625% 0.000%
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