Exhibit 99.12
TERM LOAN
CREDIT AGREEMENT
among
QUEST DIAGNOSTICS INCORPORATED
as Borrower,
AND
CERTAIN SUBSIDIARIES OF THE BORROWER
as Guarantors,
AND
THE LENDERS IDENTIFIED HEREIN,
AND
BANK OF AMERICA, N.A.,
as Administrative Agent
AND
XXXXXXX XXXXX & CO.,
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
as Syndication Agent
AND
WACHOVIA BANK, NATIONAL ASSOCIATION,
DEUTSCHE BANK SECURITIES INC.
AND
THE BANK OF NEW YORK
as Co-Documentation Agents
DATED AS OF JUNE 21, 0000
XXXX XX XXXXXXX SECURITIES LLC
AND
XXXXXXX XXXXX & CO.,
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX INCORPORATED
as Joint Book Managers and Co-Lead Arrangers
TABLE OF CONTENTS
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS...................................................................... 1
1.1 Definitions...................................................................................... 1
1.2 Computation of Time Periods and Other Definitional Provisions.................................... 23
1.3 Accounting Terms/Calculation of Financial Covenants.............................................. 23
1.4 Time............................................................................................. 24
SECTION 2 CREDIT FACILITY....................................................................................... 24
2.1 Term Loans....................................................................................... 24
2.2 Continuations and Conversions.................................................................... 26
2.3 Minimum Amounts.................................................................................. 27
SECTION 3 GENERAL PROVISIONS APPLICABLE TO LOANS................................................................ 27
3.1 Interest......................................................................................... 27
3.2 Place and Manner of Payments..................................................................... 27
3.3 Prepayments; Revision of Amortization Schedule................................................... 28
3.4 Fees............................................................................................. 28
3.5 Payment in full at Maturity or Otherwise......................................................... 29
3.6 Computations of Interest and Fees................................................................ 29
3.7 Pro Rata Treatment............................................................................... 30
3.8 Sharing of Payments.............................................................................. 30
3.9 Capital Adequacy/Regulation D.................................................................... 31
3.10 Inability To Determine Interest Rate............................................................. 31
3.11 Illegality....................................................................................... 32
3.12 Requirements of Law.............................................................................. 32
3.13 Taxes............................................................................................ 33
3.14 Compensation..................................................................................... 36
3.15 Determination and Survival of Provisions......................................................... 36
3.16 Notification by Lenders.......................................................................... 36
3.17 Mitigation; Mandatory Assignment................................................................. 37
SECTION 4 GUARANTY.............................................................................................. 37
4.1 Guaranty of Payment.............................................................................. 37
4.2 Obligations Unconditional........................................................................ 37
4.3 Modifications.................................................................................... 38
4.4 Waiver of Rights................................................................................. 39
4.5 Reinstatement.................................................................................... 39
4.6 Remedies......................................................................................... 39
4.7 Limitation of Guaranty........................................................................... 40
4.8 Rights of Contribution........................................................................... 40
4.9 Release of Guarantors............................................................................ 40
SECTION 5 CONDITIONS PRECEDENT.................................................................................. 40
5.1 Closing Conditions............................................................................... 40
i
5.2 Conditions to Initial Funding of the Term Loans.................................................. 40
5.3 Conditions to All Extensions of Credit........................................................... 43
SECTION 6 REPRESENTATIONS AND WARRANTIES........................................................................ 43
6.1 Organization and Good Standing................................................................... 43
6.2 Due Authorization................................................................................ 44
6.3 Enforceable Obligations.......................................................................... 44
6.4 No Conflicts..................................................................................... 44
6.5 Consents......................................................................................... 44
6.6 Financial Condition.............................................................................. 45
6.7 No Material Change............................................................................... 45
6.8 Disclosure....................................................................................... 45
6.9 No Default....................................................................................... 45
6.10 Litigation....................................................................................... 45
6.11 Taxes............................................................................................ 46
6.12 Compliance with Law.............................................................................. 46
6.13 Licensing and Accreditation...................................................................... 46
6.14 Title to Properties, Liens....................................................................... 47
6.15 Insurance........................................................................................ 47
6.16 Use of Proceeds.................................................................................. 47
6.17 Government Regulation............................................................................ 47
6.18 ERISA............................................................................................ 47
6.19 Environmental Matters............................................................................ 48
6.20 Intellectual Property............................................................................ 50
6.21 Subsidiaries..................................................................................... 50
6.22 Solvency......................................................................................... 50
SECTION 7 AFFIRMATIVE COVENANTS................................................................................. 50
7.1 Information Covenants............................................................................ 50
7.2 Financial Covenants.............................................................................. 53
7.3 Preservation of Existence and Franchises......................................................... 54
7.4 Books and Records................................................................................ 54
7.5 Compliance with Law.............................................................................. 54
7.6 Payment of Taxes and Other Indebtedness.......................................................... 55
7.7 Insurance........................................................................................ 55
7.8 Maintenance of Property.......................................................................... 55
7.9 Performance of Obligations....................................................................... 55
7.10 Use of Proceeds.................................................................................. 55
7.11 Audits/Inspections............................................................................... 56
7.12 Additional Credit Parties........................................................................ 56
7.13 Credit Party Revenues............................................................................ 57
7.14 Compliance Program............................................................................... 57
7.15 Unilab Acquisition............................................................................... 57
SECTION 8 NEGATIVE COVENANTS.................................................................................... 57
8.1 Indebtedness..................................................................................... 57
8.2 Liens............................................................................................ 58
ii
8.3 Nature of Business............................................................................... 58
8.4 Consolidation and Merger......................................................................... 59
8.5 Sale or Lease of Assets.......................................................................... 59
8.6 Investments...................................................................................... 60
8.7 Transactions with Affiliates..................................................................... 60
8.8 Fiscal Year; Accounting; Organizational Documents................................................ 60
8.9 Stock Repurchases................................................................................ 60
8.10 Sale/Leasebacks.................................................................................. 61
SECTION 9 EVENTS OF DEFAULT..................................................................................... 62
9.1 Events of Default................................................................................ 62
9.2 Acceleration; Remedies........................................................................... 64
9.3 Allocation of Payments After Event of Default.................................................... 65
SECTION 10 AGENCY PROVISIONS.................................................................................... 66
10.1 Appointment...................................................................................... 66
10.2 Delegation of Duties............................................................................. 67
10.3 Exculpatory Provisions........................................................................... 67
10.4 Reliance on Communications....................................................................... 67
10.5 Notice of Default................................................................................ 68
10.6 Non-Reliance on Administrative Agent and Other Lenders........................................... 68
10.7 Indemnification.................................................................................. 69
10.8 Administrative Agent in Its Individual Capacity.................................................. 69
10.9 Successor Agent.................................................................................. 70
SECTION 11 MISCELLANEOUS........................................................................................ 70
11.1 Notices.......................................................................................... 70
11.2 Right of Set-Off................................................................................. 70
11.3 Benefit of Agreement............................................................................. 71
11.4 No Waiver; Remedies Cumulative................................................................... 74
11.5 Payment of Expenses; Indemnification............................................................. 75
11.6 Amendments, Waivers and Consents................................................................. 75
11.7 Counterparts/Telecopy............................................................................ 76
11.8 Headings......................................................................................... 76
11.9 Defaulting Lender................................................................................ 76
11.10 Survival of Indemnification...................................................................... 77
11.11 Governing Law; Venue; Jurisdiction............................................................... 77
11.12 Waiver of Jury Trial; Waiver of Consequential Damages............................................ 77
11.13 Severability..................................................................................... 78
11.14 Further Assurances............................................................................... 78
11.15 Confidentiality.................................................................................. 78
11.16 Entirety......................................................................................... 78
11.17 Binding Effect; Continuing Agreement............................................................. 78
iii
SCHEDULES
---------
Schedule 1.1(a) Commitment Percentages/Lending Offices
Schedule 6.10 Litigation
Schedule 6.21 Subsidiaries
Schedule 8.1 Indebtedness
Schedule 8.2 Liens
Schedule 8.6 Investments
Schedule 8.7 Affiliate Transactions
Schedule 11.1 Notices
EXHIBITS
--------
Exhibit 2.1(b) Form of Notice of Borrowing
Exhibit 2.1(f) Form of Term Note
Exhibit 2.2 Form of Notice of Continuation/Conversion
Exhibit 7.1(c) Form of Officer's Certificate
Exhibit 7.12 Form of Joinder Agreement
Exhibit 11.3(b) Form of Assignment Agreement
iv
TERM LOAN CREDIT AGREEMENT
THIS Term Loan Credit Agreement (this "Credit Agreement"), is entered
into as of June 21, 2002 among QUEST DIAGNOSTICS INCORPORATED, a Delaware
corporation (the "Borrower"), certain of the Subsidiaries of the Borrower
(individually a "Guarantor" and collectively the "Guarantors"), the Lenders (as
defined herein), and BANK OF AMERICA, N.A., as Administrative Agent for the
Lenders.
RECITALS
WHEREAS, the Borrower and the Guarantors have requested the Lenders to
provide a term loan credit facility to the Borrower in an aggregate principal
amount of up to $450,000,000; and
WHEREAS, the Lenders party hereto have agreed to make the requested
term loan credit facility available to the Borrower on the terms and conditions
hereinafter set forth.
NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
SECTION 1
DEFINITIONS AND ACCOUNTING TERMS
1.1 DEFINITIONS.
As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
include in the singular number the plural and in the plural the singular:
"Acquisition" means the acquisition by any Person of (a) more than 50%
of the Capital Stock of another Person, (b) all or substantially all of the
assets of another Person or (c) all or substantially all of a line of business
of another Person, in each case whether or not involving a merger or
consolidation with such other Person.
"Additional Credit Party" means each Person that becomes a Guarantor
after the Closing Date, as provided in Section 7.12 or otherwise.
"Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
Applicable Percentage.
"Administrative Agent" means Bank of America, N.A. (or any successor
thereto) or any successor administrative agent appointed pursuant to Section
10.9.
"Administrative Fees" has the meaning set forth in Section 3.4.
"Affiliate" means, with respect to any Person, any other Person
directly or indirectly controlling (including but not limited to all directors
and officers of such Person), controlled by or under direct or indirect common
control with such Person. A Person shall be deemed to control a corporation if
such Person possesses, directly or indirectly, the power (a) to vote 10% or more
of the securities having ordinary voting power for the election of directors of
such corporation or (b) to direct or cause direction of the management and
policies of such corporation, whether through the ownership of voting
securities, by contract or otherwise.
"Agency Services Address" means Bank of America, N.A., NC1-001-15-04,
000 Xxxxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attn: Agency Services,
Attn: Credit Services, or such other address as may be identified by written
notice from the Administrative Agent to the Borrower.
"Agent-Related Person" means the Administrative Agent (including any
successor administrative agent), together with its Affiliates (including, in the
case of Bank of America in its capacity as the Administrative Agent, BAS), and
their respective officers, directors, employees, agents, counsel and
attorneys-in-fact.
"Agents" means Bank of America N.A., in its capacity as Administrative
Agent, and Xxxxxxx Xxxxx & Co., Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated, in its capacity as Syndication Agent.
"AML Acquisition" means the Borrower's acquisition of American Medical
Laboratories, Inc. on April 1, 2002 as described in the Borrower's Form 8-K
dated April 1, 2002 filed with the United States Securities and Exchange
Commission.
"Applicable Percentage" means the appropriate applicable percentages
corresponding to the Debt Rating of the Borrower in effect from time to time as
described below:
Applicable
Percentage for
Pricing Level Debt Rating Eurodollar Loans
------------- ----------- ----------------
I greater than or equal to BBB+ from S&P/ .875%
greater than or equal to Baa1 from Xxxxx'x
II greater than or equal to BBB but < BBB+ from 1.1875%
S&P/
greater than or equal to Baa2 but
