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Exhibit (10a)
EXECUTION COPY
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FIVE YEAR CREDIT AGREEMENT
dated as of
June 30, 2000
among
USG CORPORATION
as Borrower
The Lenders Party Hereto
THE CHASE MANHATTAN BANK
as Administrative Agent
THE TORONTO-DOMINION BANK
as Canadian Agent
BANK ONE, NA and CITIBANK, N.A.
as Syndication Agents
and
BANK OF AMERICA, N.A.
as Documentation Agent
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CHASE SECURITIES INC.
as Sole Lead Arranger and Sole Book Manager
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ARTICLE I Definitions....................................................1
SECTION 1.01. Defined Terms..................................................1
SECTION 1.02. Classification of Loans and Borrowings........................24
SECTION 1.03. Terms Generally...............................................25
SECTION 1.04. Accounting Terms; GAAP........................................25
SECTION 1.05. Exchange Rates................................................25
ARTICLE II The Credits...................................................26
SECTION 2.01. Commitments...................................................26
SECTION 2.02. Loans and Borrowings..........................................26
SECTION 2.03. Requests for Revolving Borrowings.............................27
SECTION 2.04. Canadian Bankers' Acceptances.................................29
SECTION 2.05. Competitive Bid Procedure.....................................33
SECTION 2.06. Swingline Loans...............................................35
SECTION 2.07. Letters of Credit.............................................38
SECTION 2.08. Funding of Borrowings.........................................44
SECTION 2.09. Repayment of Borrowings; Evidence of Debt.....................45
SECTION 2.10. Interest Elections............................................46
SECTION 2.11. Termination and Reduction of Commitments......................47
SECTION 2.12. Increase in Commitments.......................................48
SECTION 2.13. Prepayment of Loans...........................................51
SECTION 2.14. Fees..........................................................52
SECTION 2.15. Interest......................................................54
SECTION 2.16. Alternate Rate of Interest....................................56
SECTION 2.17. Increased Costs...............................................56
SECTION 2.18. Break Funding Payments........................................57
SECTION 2.19. Taxes.........................................................58
SECTION 2.20. Payments Generally; Pro Rata Treatment; Sharing of Setoffs....59
SECTION 2.21. Mitigation Obligations; Replacement of Lenders................61
SECTION 2.22. Designation of Canadian Borrowers.............................62
ARTICLE III Representations and Warranties................................62
SECTION 3.01. Organization; Corporate Powers................................63
SECTION 3.02. Authority.....................................................63
SECTION 3.03. Subsidiaries; Ownership of Capital Stock......................63
SECTION 3.04. No Conflict...................................................63
SECTION 3.05. Governmental Consents.........................................64
SECTION 3.06. Governmental Regulation.......................................64
SECTION 3.07. Labor Matters.................................................64
SECTION 3.08. Litigation; Material Adverse Effects..........................64
SECTION 3.09. Payment of Taxes..............................................64
SECTION 3.10. Margin Stock..................................................65
SECTION 3.11. No Material Misstatements.....................................65
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SECTION 3.12. Requirements of Law...........................................65
SECTION 3.13. Environmental Matters.........................................65
SECTION 3.14. ERISA.........................................................66
SECTION 3.15. Assets and Properties.........................................66
SECTION 3.16. Agreements....................................................67
SECTION 3.17. Financial Statements..........................................67
ARTICLE IV Conditions....................................................67
SECTION 4.01. Effective Date................................................67
SECTION 4.02. Each Credit Event.............................................68
SECTION 4.03. Initial Credit Event for each Canadian Borrower...............69
ARTICLE V Affirmative Covenants.........................................69
SECTION 5.01. Corporate Existence; Corporate Powers; Etc....................69
SECTION 5.02. Compliance with Laws, Etc.....................................70
SECTION 5.03. Maintenance of Properties; Insurance..........................70
SECTION 5.04. Payment of Taxes and Claims...................................70
SECTION 5.05. Inspection of Property; Books and Records.....................70
SECTION 5.06. ERISA.........................................................71
SECTION 5.07. Financial Statements..........................................71
SECTION 5.08. Notices of Material Events....................................73
ARTICLE VI Negative Covenants............................................73
SECTION 6.01. Debt..........................................................73
SECTION 6.02. Sales of Assets...............................................74
SECTION 6.03. Liens.........................................................75
SECTION 6.04. Transactions with Affiliates..................................76
SECTION 6.05. Fundamental Changes...........................................76
SECTION 6.06. Sales and Lease-Back..........................................76
SECTION 6.07. Restrictive Agreements........................................76
SECTION 6.08. No More Restrictive Covenants.................................77
SECTION 6.09. Financial Covenants...........................................77
ARTICLE VII Events of Default.............................................77
SECTION 7.01. Events of Default.............................................77
SECTION 7.02. Rights and Remedies...........................................81
ARTICLE VIII The Agents....................................................81
ARTICLE IX Collection Allocation Mechanism...............................84
ARTICLE X Guarantee.....................................................85
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ARTICLE XI Miscellaneous.................................................86
SECTION 11.01. Notices.......................................................86
SECTION 11.02. Waivers; Amendments...........................................87
SECTION 11.03. Expenses; Indemnity; Damage Waiver............................89
SECTION 11.04. Successors and Assigns........................................90
SECTION 11.05. Survival......................................................93
SECTION 11.06. Counterparts; Integration; Effectiveness......................93
SECTION 11.07. Severability..................................................94
SECTION 11.08. Right of Setoff...............................................94
SECTION 11.09. Governing Law; Jurisdiction; Consent to Service of Process....94
SECTION 11.10. WAIVER OF JURY TRIAL..........................................95
SECTION 11.11. Headings......................................................95
SECTION 11.12. Confidentiality...............................................96
SECTION 11.13. Conversion of Currencies......................................96
SECTION 11.14. Non-Reliance by the Lenders...................................96
SCHEDULES:
Schedule 2.01 -- Lenders and Commitments
Schedule 2.07 -- Existing Letters of Credit
Schedule 2.20 -- Payment Instructions
Schedule 3.03 -- Subsidiaries
Schedule 3.08 -- Litigation; Material Adverse Effects
Schedule 3.13 -- Environmental Matters
Schedule 3.14 -- ERISA
Schedule 6.01 -- Existing Debt
Schedule 6.03 -- Existing Liens
Schedule 6.07 -- Existing Restrictive Agreements
EXHIBITS:
Exhibit A-1 -- Form of Borrowing Subsidiary Agreement
Exhibit A-2 -- Form of Borrowing Subsidiary Termination
Exhibit B -- Form of Assignment and Acceptance
Exhibit C-1 -- Form of Opinion of Special Counsel for the Administrative
Agent
Exhibit C-2 -- Form of Opinion of Assistant General Counsel of the Company
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FIVE YEAR CREDIT AGREEMENT dated as of June 30, 2000, among USG
CORPORATION, a Delaware corporation (the "Company"); the CANADIAN BORROWERS (as
defined herein) (the Company and the Canadian Borrowers being collectively
called the "Borrowers"); the LENDERS from time to time party hereto; THE CHASE
MANHATTAN BANK, as Administrative Agent; THE TORONTO-DOMINION BANK, as Canadian
Agent; BANK ONE, NA and CITIBANK, N.A., as Syndication Agents; and BANK OF
AMERICA, N.A., as Documentation Agent.
The Company has requested the Lenders (such term and each other
capitalized term used and not otherwise defined herein having the meaning
assigned to it in Article I) to extend credit in the form of (a) US Tranche
Commitments under which the Company may obtain Loans in US Dollars in an
aggregate principal amount at any time outstanding that will not result in the
sum of the US Tranche Revolving Exposures and the Competitive Loan Exposures
exceeding $325,000,000, (b) Canadian Tranche Commitments under which the
Canadian Borrowers may obtain Loans and Acceptances in Canadian Dollars and the
Company may obtain Loans in US Dollars in an aggregate principal amount at any
time outstanding that will not result in the Canadian Tranche Exposure exceeding
$75,000,000, (c) Letters of Credit in US Dollars in an aggregate stated amount
at any time outstanding up to $75,000,000 and (d) Letters of Credit in Canadian
Dollars in an aggregate stated amount at any time outstanding up to $10,000,000.
The Company has also requested the Lenders to provide a procedure pursuant to
which the Company may invite the Lenders to bid on an uncommitted basis on
short-term Loans to the Company.
The Lenders are willing to establish the credit facilities referred to
in the preceding paragraph upon the terms and subject to the conditions set
forth herein. Accordingly, the parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01 Defined Terms. As used in this Agreement, the following
terms have the meanings specified below:
"ABR", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.
"Acceptance" means a Draft issued by a Canadian Borrower and accepted
by a Canadian Tranche Lender pursuant to this Agreement.
"Acceptance Proceeds" means the cash proceeds derived from the sale of
a specified Acceptance before deduction of the Stamping Fee.
"Adjusted LIBO Rate" means, with respect to any Eurocurrency Borrowing
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory
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Reserve Rate.
"Administrative Agent" means The Chase Manhattan Bank, in its capacity
as administrative agent for the Lenders hereunder.
"Administrative Questionnaire" means an Administrative Questionnaire
in a form supplied by the Administrative Agent or the Canadian Agent, as
applicable.
"Affiliate" means, with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified.
"Agents" means, collectively, the Administrative Agent and the
Canadian Agent.
"Alternate Base Rate" means, for any day, a rate per annum 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%. Any change in the Alternate Base Rate due to a
change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate
shall be effective from and including the effective date of such change in the
Prime Rate, the Base CD Rate or the Federal Funds Effective Rate, respectively.
"Applicable Agent" means (a) with respect to a Loan, Borrowing or
Letter of Credit denominated in US Dollars, and with respect to any payment
hereunder that does not relate to a particular Loan, Borrowing or Letter of
Credit, the Administrative Agent and (b) with respect to a Loan, Acceptance,
Borrowing or Letter of Credit denominated in Canadian Dollars, the Canadian
Agent.
"Applicable Rate" means, for any day, with respect to (i) any Loan of
any Type, (ii) the Stamping Fee for any Acceptance or (iii) the facility fees
payable hereunder, as the case may be, the applicable rate per annum set forth
under the appropriate caption in the table below, based upon the ratings by
Xxxxx'x and S&P, respectively, applicable on such date to the Index Debt:
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ABR/C$ Prime Rate Eurocurrency Stamping Fee Rate Facility Fee
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Index Debt Ratings: Spread Spread Rate
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Category 1 0% 0.22% 0.22% 0.08%
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= A2/A
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Category 2 0% 0.275% 0.275% 0.10%
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A3/A-
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Category 3 0% 0.375% 0.375% 0.125%
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Baa1/BBB+
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Category 4 0% 0.475% 0.475% 0.15%
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Baa2/BBB
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Category 5 0% 0.575% 0.575% 0.175%
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Baa3/BBB-
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Category 6 0% 1.025% 1.025% 0.225%
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