Exhibit 10.72
195,000,000
CREDIT AGREEMENT
among
PUBLIC SERVICE COMPANY OF NEW MEXICO
as Borrower,
THE LENDERS IDENTIFIED HEREIN,
BANK OF AMERICA, N.A.,
as Administrative Agent
WACHOVIA BANK, NATIONAL ASSOCIATION,
as Syndication Agent
AND
FLEET NATIONAL BANK
as Documentation Agent
DATED AS OF DECEMBER 19, 0000
XXXX XX XXXXXXX SECURITIES LLC,
as Sole Lead Arranger and Sole Book Manager
TABLE OF CONTENTS
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SECTION 1 DEFINITIONS AND ACCOUNTING TERMS...................................1
1.1 Definitions.................................................1
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1.2 Computation of Time Periods and Other
Definitional Provisions....................................16
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1.3 Accounting Terms/Calculation of
Financial Covenants........................................16
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1.4 Time.......................................................16
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1.5 Rounding of Financial Covenants............................16
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1.6 References to Agreements and Requirement of Laws...........17
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SECTION 2 CREDIT FACILITY...................................................17
2.1 Revolving Loans............................................17
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2.2 Letter of Credit Subfacility...............................18
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2.3 Continuations and Conversions..............................25
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2.4 Minimum Amounts............................................26
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SECTION 3 GENERAL PROVISIONS APPLICABLE TO REVOLVING LOANS..................26
3.1 Interest...................................................26
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3.2 Payments Generally.........................................27
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3.3 Prepayments................................................28
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3.4 Fees.......................................................29
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3.5 Payment in full at Maturity................................29
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3.6 Computations of Interest and Fees..........................30
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3.7 Pro Rata Treatment.........................................30
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3.8 Sharing of Payments........................................31
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3.9 Capital Adequacy...........................................32
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3.10 Eurodollar Provisions......................................32
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3.11 Illegality.................................................32
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3.12 Requirements of Law; Reserves on Eurodollar Loans..........33
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3.13 Taxes......................................................33
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3.14 Compensation...............................................36
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3.15 Determination and Survival of Provisions...................36
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SECTION 4 CONDITIONS PRECEDENT TO CLOSING...................................37
4.1 Closing Conditions.........................................37
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SECTION 5 CONDITIONS TO ALL EXTENSIONS OF CREDIT............................39
5.1 Funding Requirements.......................................39
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SECTION 6 REPRESENTATIONS AND WARRANTIES....................................40
6.1 Organization and Good Standing.............................40
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6.2 Due Authorization..........................................40
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6.3 No Conflicts...............................................40
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6.4 Consents...................................................40
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6.5 Enforceable Obligations....................................41
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6.6 Financial Condition........................................41
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6.7 No Material Change.........................................41
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6.8 No Default.................................................41
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6.9 Litigation.................................................41
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6.10 Taxes......................................................41
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6.11 Compliance with Law........................................42
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6.12 ERISA......................................................42
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6.13 Use of Proceeds; Margin Stock..............................43
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6.14 Government Regulation......................................43
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6.15 Solvency...................................................43
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6.16 Disclosure.................................................43
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6.17 Environmental Matters......................................44
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6.18 Material Leases............................................44
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6.19 Material Lease Interest Payments and Discount Rate.........44
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SECTION 7 AFFIRMATIVE COVENANTS.............................................44
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7.1 Information Covenants......................................44
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7.2 Financial Covenants........................................46
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7.3 Preservation of Existence and Franchises...................46
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7.4 Books and Records..........................................47
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7.5 Compliance with Law........................................47
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7.6 Payment of Taxes and Other Indebtedness....................47
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7.7 Insurance..................................................47
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7.8 Performance of Obligations.................................47
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7.9 Use of Proceeds............................................48
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7.10 Audits/Inspections.........................................48
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SECTION 8 NEGATIVE COVENANTS................................................48
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8.1 Nature of Business.........................................48
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8.2 Consolidation and Merger...................................48
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8.3 Sale or Lease of Assets....................................48
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8.4 Affiliate Transactions.....................................49
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8.5 Liens......................................................49
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8.6 Accounting Changes.........................................50
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SECTION 9 EVENTS OF DEFAULT.................................................50
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9.1 Events of Default..........................................50
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9.2 Acceleration; Remedies.....................................52
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9.3 Allocation of Payments After Event of Default..............53
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SECTION 10 AGENCY PROVISIONS................................................54
10.1 Appointment and Authorization of Administrative Agent......54
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10.2 Delegation of Duties.......................................55
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10.3 Liability of Administrative Agent..........................55
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10.4 Reliance by Administrative Agent...........................55
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10.5 Notice of Default..........................................56
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10.6 Credit Decision; Disclosure of Information by the
Administrative Agent.......................................56
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10.7 Indemnification of Administrative Agent....................57
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10.8 Administrative Agent in its Individual Capacity............57
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10.9 Successor Administrative Agent.............................58
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10.10 Administrative Agent May File Proofs of Claim..............58
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10.11 Other Agents; Arrangers and Managers.......................59
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SECTION 11 MISCELLANEOUS....................................................59
11.1 Notices and Other Communications; Facsimile Copies.........59
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11.2 Right of Set-Off...........................................60
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11.3 Successors and Assigns.....................................61
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11.4 No Waiver; Remedies Cumulative.............................64
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11.5 Attorney Costs, Expenses, Taxes and Indemnification
by Borrower................................................64
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11.6 Amendments, Waivers and Consents...........................66
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11.7 Counterparts...............................................67
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11.8 Headings...................................................67
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11.9 Survival of Indemnification and Representations
and Warranties.............................................67
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11.10 Governing Law; Venue; Jurisdiction.........................67
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11.11 Waiver of Jury Trial; Waiver of Consequential Damages......68
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11.12 Severability...............................................68
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11.13 Further Assurances.........................................68
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11.14 Confidentiality............................................68
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11.15 Entirety...................................................69
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11.16 Binding Effect; Continuing Agreement.......................69
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11.17 Regulatory Statement.......................................69
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SCHEDULES
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Schedule 1.1(a) Pro Rata Shares
Schedule 1.1(c) Existing Letters of Credit
Schedule 6.18 Material Leases
Schedule 6.19 Material Lease Interest Payments and Discount Rate
Schedule 11.1 Notices
EXHIBITS
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Exhibit 2.1(b) Form of Notice of Borrowing
Exhibit 2.1(e) Form of Revolving Note
Exhibit 2.3 Form of Notice of Continuation/Conversion
Exhibit 7.1(c) Form of Compliance Certificate
Exhibit 11.3(b) Form of Assignment and Assumption
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CREDIT AGREEMENT
THIS CREDIT AGREEMENT (this "Credit Agreement") is entered into as of
December 19, 2002 among PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico
corporation, as Borrower, the Lenders and BANK OF AMERICA, N.A., as
Administrative Agent and L/C Issuer.
RECITALS
WHEREAS, the Borrower has requested the Lenders to provide a senior
credit facility to the Borrower in an aggregate principal amount of
$195,000,000; and
WHEREAS, the Lenders party hereto have agreed to make the requested
senior 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.
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The following terms shall have the meanings specified herein unless the
context otherwise requires. Defined terms herein shall include in the singular
number the plural and in the plural the singular:
"Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
Applicable Percentage.
"Administrative Agent" means Bank of America or any successor
administrative agent appointed pursuant to Section 10.9.
"Administrative Agent's Office" means the Administrative
Agent's address and, as appropriate, account as set forth on Schedule
11.1 or such other address or account with as the Administrative Agent
may from time to time notify the Borrower and the Lenders.
"Administrative Fees" has the meaning set forth in Section
3.4(d).
"Administrative Questionnaire" means an Administrative
Questionnaire in a form supplied by the Administrative Agent.
"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.
"Agent-Related Persons" means the Administrative Agent,
together with its Affiliates and the officers, directors, employees,
agents and attorneys-in-fact of the Administrative Agent and its
Affiliates.
"Applicable Percentage" means, for Eurodollar Loans, L/C Fees,
Commitment Fees and Utilization Fees, the appropriate applicable
percentages, in each case, corresponding to the Debt Rating in effect
as of the most recent Calculation Date as shown below:
------- --------------- ------------------ ----------------- -----------------
Applicable
Percentage for Applicable Applicable
Pricing Eurodollar Rate Percentage for Percentage for
Level Debt Rating Loans and L/C Fees Commitment Fees Utilization Fees
------- --------------- ------------------ ----------------- -----------------
greater than equal
I to BBB+/Baa1 .875% .10% .125%
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II BBB/Baa2 1.00% .15% .125%
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III BBB-/Baa3 1.125% .20% .125%
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IV BB+/Ba1 1.25% .25% .250%
------- --------------- ------------------ ----------------- -----------------
less than
V BB+/Ba1 .50% .30% .500%
------- --------------- ------------------ ----------------- -----------------
The Applicable Percentages shall be determined and adjusted on
the date (each a "Calculation Date") one Business Day after the date on
which the Borrower's Debt Rating is upgraded or downgraded in a manner
which requires a change in the then applicable Pricing Level set forth
above. If at any time there is a split in the Borrower's Debt Ratings
between S&P and Xxxxx'x, the Applicable Percentages shall be determined
by the lower of the two Debt Ratings (i.e. the higher pricing);
provided that if the two Debt Ratings are more than one level apart,
the Applicable Percentage shall be based on the Debt Rating which is
one level higher than the lower rating. Each Applicable Percentage
shall be effective from one Calculation Date until the next Calculation
Date. Any adjustment in the Applicable Percentage shall be applicable
to all existing Eurodollar Loans as well as any new Eurodollar Loans
made.
"Approved Fund" means any Fund that is administered or managed
by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an
Affiliate of an entity that administers or manages a Lender.
"Arranger" means Banc of America Securities LLC, together with
its successors and/or assigns.
"Assignment and Assumption" means an Assignment and Assumption
substantially in the form of Exhibit 11.3(b).
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"Authorized Officer" means any of the president, chief
executive officer, chief financial officer or treasurer of the
Borrower.
"Bank of America" means Bank of America, N.A., together with
its successors and/or assigns.
"Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
United States Code, as amended, modified, succeeded or replaced from
time to time.
"Base Rate" means for any day a fluctuating rate per annum
equal to the higher of (a) the Federal Funds Rate plus 1/2 of 1% and
(b) the rate of interest in effect for such day as publicly announced
from time to time by Bank of America as its "prime rate" (the "Prime
Rate"). The Prime Rate is a rate set by Bank of America based upon
various factors including Bank of America's costs and desired return,
general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above,
or below such announced rate. Any change in such rate announced by Bank
of America shall take effect at the opening of business on the day
specified in the public announcement of such change.
"Base Rate Loan" means any Revolving Loan bearing interest at
a rate determined by reference to the Base Rate.
"Borrower" means Public Service Company of New Mexico, a New
Mexico corporation, together with its successors and permitted assigns.
"Borrower Obligations" means, without duplication, all of the
obligations of the Borrower to the Lenders and the Administrative
Agent, whenever arising, under this Credit Agreement, the Revolving
Notes, or any of the other Credit Documents.
"Borrowing" means a borrowing consisting of simultaneous
Revolving Loans of the same Type and, in the case of Eurodollar Loans,
having the same Interest Period made by each of the Lenders pursuant to
Section 2.1.
"Business Day" means any day other than a Saturday, a Sunday,
a legal holiday or a day on which banking institutions are authorized
or required by Law or other governmental action to close in Xxx Xxxx,
Xxx Xxxx xx Xxxxxxxxx, Xxxxx Xxxxxxxx; provided that in the case of
Eurodollar Loans such day is also a day on which dealings are conducted
by and between banks in the London interbank market.
"Capital Stock" means (a) in the case of a corporation, all
classes of capital stock of such corporation, (b) in the case of a
partnership, partnership interests (whether general or limited), (c) in
the case of a limited liability company, membership interests and (d)
any other interest or participation that confers on a Person the right
to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person; including, in each case, all warrants,
rights or options to purchase any of the foregoing.
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"Cash Collateralize" means to pledge and deposit with or
deliver to the Administrative Agent, for the benefit of the L/C Issuer
and the Lenders, as collateral for the L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance
satisfactory to the Administrative Agent and the L/C Issuer.
"Change of Control" means the failure of PNM Resources, Inc.,
a New Mexico corporation, to own and control less than 100% of the
Voting Stock of the Borrower.
"Closing Date" means the date of this Credit Agreement, which
is the first date all the conditions precedent in Section 5.1 are
satisfied or waived in accordance with Section 5.1.
"Code" means the Internal Revenue Code of 1986 and the rules
and regulations promulgated thereunder, as amended, modified, succeeded
or replaced from time to time.
"Commitment" means, as to each Lender, its obligation to (a)
make Revolving Loans to the Borrower pursuant to Section 2.1 and (b)
fund or purchase Participation Interests in L/C Obligations pursuant to
Section 2.2, in an aggregate principal amount at any one time
outstanding not to exceed such Lender's Pro Rata Share of the Revolving
Committed Amount as set forth opposite such Lender's name on Schedule
1.1(a) or in the Assignment and Assumption pursuant to which such
Lender becomes a party hereto, as applicable, as such amount may be
adjusted from time to time in accordance with this Credit Agreement.
"Compensation Period" has the meaning set forth in Section
3.2(c)(ii).
"Compliance Certificate" means a fully completed and duly
executed officer's certificate in the form of Exhibit 7.1(c), together
with a Covenant Compliance Worksheet.
"Consolidated Capitalization" means the sum of (a) all of the
shareholders' equity or net worth of the Borrower and its Subsidiaries,
as determined in accordance with GAAP plus (b) Consolidated
Indebtedness.
"Consolidated EBITDA" means, for any period, an amount equal
to (a) Consolidated Net Income (excluding any extraordinary gains and
extraordinary losses) for such period plus (b) an amount which in the
determination of Consolidated Net Income for such period was deducted
for (i) Consolidated Interest Expense, (ii) income tax expense, (iii)
depreciation expense and (iv) amortization expense plus (c) non-cash
items reducing Consolidated Net Income for such period less (d)
non-cash items increasing Consolidated Net Income for such period.
"Consolidated Indebtedness" means, as of any date of
determination, with respect to the Borrower and its Subsidiaries on a
consolidated basis, an amount equal to all Indebtedness of the Borrower
and its Subsidiaries as of such date.
"Consolidated Interest Expense" means, for any period, with
respect to the Borrower and its Subsidiaries on a consolidated basis,
an amount equal to total interest expense of the Borrower and its
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Subsidiaries for such period (including, without limitation, all such
interest expense accrued or capitalized during such period, whether or
not actually paid during such period), as determined in accordance with
GAAP.
"Consolidated Net Income" means the consolidated net income of
the Borrower and its Subsidiaries, as determined in accordance with
GAAP.
"Contingent Obligation" means, with respect to any Person, any
direct or indirect liability of such Person with respect to any
Indebtedness, liability or other obligation (the "primary obligation")
of another Person (the "primary obligor"), whether or not contingent,
(a) to purchase, repurchase or otherwise acquire such primary
obligation or any property constituting direct or indirect security
therefor, (b) to advance or provide funds (i) for the payment or
discharge of any such primary obligation or (ii) to maintain working
capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency or any balance sheet item, level of
income or financial condition of the primary obligor, (c) to purchase
property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary
obligor in respect thereof to make payment of such primary obligation
or (d) otherwise to assure or hold harmless the owner of any such
primary obligation against loss or failure or inability to perform in
respect thereof; provided, however, that, with respect to the Borrower
and its Subsidiaries, the term Contingent Obligation shall not include
endorsements for collection or deposit in the ordinary course of
business. The amount of any Contingent Obligation of any Person shall
be deemed to be an amount equal to the maximum amount of such Person's
liability with respect to the stated or determinable amount of the
primary obligation for which such Contingent Obligation is incurred or,
if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to
perform thereunder).
"Covenant Compliance Worksheet" shall mean a fully completed
worksheet in the form of Attachment A to Exhibit 7.1(c).
"Credit Agreement" has the meaning set forth in the Preamble
hereof.
"Credit Documents" means this Credit Agreement, the Revolving
Notes, any Notice of Borrowing, any Notice of Continuation/Conversion,
and any other document, agreement or instrument entered into or
executed in connection with the foregoing.
"Credit Extension" means each of the following: (a) a
Borrowing and (b) an L/C Credit Extension.
"Debt Rating" means the long term unsecured senior non-credit
enhanced debt rating of the Borrower by S&P and Xxxxx'x.
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"Debtor Relief Laws" means the Bankruptcy Code, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief Laws of the United States or
other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.
"Default" means any event, act or condition which with notice
or lapse of time, or both, would constitute an Event of Default.
"Default Rate" means an interest rate equal to two percent
(2%) plus the rate that otherwise would be applicable (or if no rate is
applicable, the Base Rate plus two percent (2%) per annum).
"Defaulting Lender" means, at any time, any Lender that, (a)
has failed to make a Revolving Loan or purchase or fund a Participation
Interest (but only for so long as such Revolving Loan is not made or
such Participation Interest is not purchased or funded), (b) has failed
to pay to the Administrative Agent or any Lender an amount owed by such
Lender pursuant to the terms of this Credit Agreement (but only for so
long as such amount has not been repaid) or (c) has been deemed
insolvent or has become subject to a bankruptcy or insolvency
proceeding or to a receiver, trustee or similar official.
"Dollars" and "$" means dollars in lawful currency of the
United States of America.
"Eligible Assignee" means (a) a Lender, (b) an Affiliate of a
Lender, (c) an Approved Fund and (d) any other Person approved by the
Administrative Agent, the L/C Issuer and the Borrower (such approval
not to be unreasonably withheld or delayed); provided that (i) the
Borrower's consent is not required during the existence and
continuation of a Default or an Event of Default, (ii) approval by the
Borrower shall be deemed given if no objection is received by the
assigning Lender and the Administrative Agent from the Borrower within
five Business Days after notice of such proposed assignment has been
delivered to the Borrower and (iii) neither the Borrower nor any
Subsidiary or Affiliate of the Borrower shall qualify as an Eligible
Assignee.
"Environmental Claims" means any and all administrative,
regulatory or judicial actions, suits, demands, demand letters, claims,
liens, accusations, allegations, notices of noncompliance or violation,
investigations (other than internal reports prepared by any Person in
the ordinary course of its business and not in response to any third
party action or request of any kind) or proceedings relating in any way
to any actual or alleged violation of or liability under any
Environmental Law or relating to any permit issued, or any approval
given, under any such Environmental Law (collectively, "Claims"),
including, without limitation, (a) any and all Claims by Governmental
Authorities for enforcement, cleanup, removal, response, remedial or
other actions or damages pursuant to any applicable Environmental Law
and (b) any and all Claims by any third party seeking damages,
contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from Hazardous Substances or arising from
alleged injury or threat of injury to human health or the environment.
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"Environmental Laws" shall mean any and all federal, state and
local laws, statutes, ordinances, rules, regulations, permits,
licenses, approvals, rules of common law and orders of courts or
Governmental Authorities, relating to the protection of human health or
occupational safety or the environment, now or hereafter in effect and
in each case as amended from time to time, including, without
limitation, requirements pertaining to the manufacture, processing,
distribution, use, treatment, storage, disposal, transportation,
handling, reporting, licensing, permitting, investigation or
remediation of Hazardous Substances.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time, and any successor statute, and all
rules and regulations from time to time promulgated thereunder.
"ERISA Affiliate" means any Person (including any trade or
business, whether or not incorporated) that would be deemed to be under
"common control" with, or a member of the same "controlled group" as,
the Borrower or any of its Subsidiaries, within the meaning of Sections
414(b), (c), (m) or (o) of the Code or Section 4001 of ERISA.
"ERISA Event" means: (a) a Reportable Event with respect to a
Plan or a Multiemployer Plan, (b) a complete or partial withdrawal by
the Borrower, any of its Subsidiaries or any ERISA Affiliate from a
Multiemployer Plan, or the receipt by the Borrower, any of its
Subsidiaries or any ERISA Affiliate of notice from a Multiemployer Plan
that it is in reorganization or insolvency pursuant to Section 4241 or
4245 of ERISA or that it intends to terminate or has terminated under
Section 4041A of ERISA, (c) the distribution by the Borrower, any of
its Subsidiaries or any ERISA Affiliate under Section 4041 or 4041A of
ERISA of a notice of intent to terminate any Plan or the taking of any
action to terminate any Plan, (d) the commencement of proceedings by
the PBGC under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Plan, or the receipt by the
Borrower, any of its Subsidiaries or any ERISA Affiliate of a notice
from any Multiemployer Plan that such action has been taken by the PBGC
with respect to such Multiemployer Plan, (e) the institution of a
proceeding by any fiduciary of any Multiemployer Plan against the
Borrower, any of its Subsidiaries or any ERISA Affiliate to enforce
Section 515 of ERISA, which is not dismissed within thirty (30) days,
(f) the imposition upon the Borrower, any of its Subsidiaries or any
ERISA Affiliate of any liability under Title IV of ERISA, other than
for PBGC premiums due but not delinquent under Section 4007 of ERISA,
or the imposition or threatened imposition of any Lien upon any assets
of the Borrower, any of its Subsidiaries or any ERISA Affiliate as a
result of any alleged failure to comply with the Code or ERISA in
respect of any Plan, (g) the engaging in or otherwise becoming liable
for a nonexempt Prohibited Transaction by the Borrower, any of its
Subsidiaries or any ERISA Affiliate, (h) a violation of the applicable
requirements of Section 404 or 405 of ERISA or the exclusive benefit
rule under Section 401(a) of the Code by any fiduciary of any Plan for
which the Borrower, any of its Subsidiaries or any ERISA Affiliate may
be directly or indirectly liable, (i) the adoption of an amendment to
any Plan that, pursuant to Section 401(a)(29) of the Code or Section
307 of ERISA, would result in the loss of tax-exempt status of the
trust of which such Plan is a part if the Borrower, any of its
Subsidiaries or any ERISA Affiliate fails to timely provide security to
such Plan in accordance with the provisions of such sections or (j) the
withdrawal of the Borrower, any of its Subsidiaries or any ERISA
Affiliate from a Multiple Employer Plan during a play year in which it
was a substantial employer (as such term is defined in Section
4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan.
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"Eurodollar Loan" means a Revolving Loan bearing interest
based at a rate determined by reference to the Adjusted Eurodollar
Rate.
"Eurodollar Rate" means for any Interest Period with respect
to any Eurodollar Loan:
(a) the rate per annum equal to the rate
determined by the Administrative Agent to be the
offered rate that appears on the page of the Telerate
screen (or any successor thereto) that displays an
average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery
on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period,
or
(b) if the rate referenced in the preceding
clause (i) does not appear on such page or service or
such page or service shall not be available, the rate
per annum equal to the rate determined by the
Administrative Agent to be the offered rate on such
other page or other service that displays an average
British Bankers Association Interest Settlement Rate
for deposits in Dollars (for delivery on the first
day of such Interest Period) with a term equivalent
to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period,
or
(c) if the rates referenced in the preceding
clauses (i) and (ii) are not available, the rate per
annum reasonably determined by the Administrative
Agent as the rate of interest at which deposits in
Dollars for delivery on the first day of such
Interest Period in same day funds in the approximate
amount of the Eurodollar Loan being made, continued
or converted by Bank of America and with a term
equivalent to such Interest Period would be offered
by Bank of America's London Branch to major banks in
the London interbank eurodollar market at their
request at approximately 4:00 p.m. (London time) two
Business Days prior to the first day of such Interest
Period.
"Event of Default" has the meaning set forth in Section 9.1.
"Exchange Act" means the Securities Exchange Act of 1934, and
the rules and regulations promulgated thereunder, as amended, modified,
succeeded or replaced from time to time.
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"Existing Credit Agreement" means that certain Credit
Agreement, dated as of March 11, 1998, among the Borrower, the lenders
party thereto, and The Chase Manhattan Bank, as Administrative Agent,
as previously amended, modified or supplemented prior to the Closing
Date.
"Existing Letters of Credit" means the letters of credit set
forth on Schedule 1.1(c).
"Federal Funds Rate" means, for any day, the rate per annum
equal to the weighted average (rounded upward, if necessary, to a whole
multiple of 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve
Bank on the Business Day next succeeding such day; provided that (a) if
such day is not a Business Day, the Federal Funds Rate for such day
shall be such rate on such transactions on the next preceding Business
Day as so published on the next succeeding Business Day, and (b) if no
such rate is so published on such next succeeding Business Day, the
Federal Funds Rate for such day shall be the average rate (rounded
upward, if necessary, to a whole multiple of 1/100 of 1%) charged to
Bank of America on such day on such transactions as determined by the
Administrative Agent.
"Fee Letter" means that certain letter agreement, dated as of
November 22, 2002, among the Borrower, Bank of America and the
Arranger, as amended, modified, supplemented or restated from time to
time.
"Financial Officer" means the chief financial officer, vice
president-finance, principal accounting officer or treasurer of the
Borrower.
"First Mortgage Bonds" means those first mortgage bonds issued
pursuant to the FMB Indenture.
"FMB Indenture" means the Indenture of Mortgage and Deed of
Trust, dated as of June 1, 1947, between the Borrower and The Bank of
New York (formerly Irving Trust Company), as trustee thereunder, as
supplemented and amended.
"Foreign Lender" has the meaning set forth in Section 3.13(f).
"Fund" means any Person (other than a natural person) that is
(or will be) engaged in making, purchasing, holding or otherwise
investing in commercial loans and similar extensions of credit in the
ordinary course of its business.
"GAAP" means generally accepted accounting principles in the
United States set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified
Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of
comparable stature and authority within the U.S. accounting profession)
or that are promulgated by any Governmental Authority having
appropriate jurisdiction.
9
"Government Acts" has the meaning set forth in Section 2.2(k).
"Governmental Authority" means any domestic or foreign nation
or government, any state or other political subdivision thereof and any
central bank thereof, any municipal, local, city or county government,
and any entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government (including,
without limitation, any state dental board) and any corporation or
other entity owned or controlled, through stock or capital ownership or
otherwise, by any of the foregoing.
"Granting Lender" has the meaning specified in Section
11.3(g).
"Hazardous Substances" means any substances or materials (a)
that are or become defined as hazardous wastes, hazardous substances,
pollutants, contaminants or toxic substances under any Environmental
Law, (b) that are defined by any Environmental Law as toxic, explosive,
corrosive, ignitable, infectious, radioactive, mutagenic or otherwise
hazardous, (c) the presence of which require investigation or response
under any Environmental Law, (d) that constitute a nuisance, trespass
or health or safety hazard to Persons or neighboring properties, (e)
that consist of underground or aboveground storage tanks, whether
empty, filled or partially filled with any substance, or (f) that
contain, without limitation, asbestos, polychlorinated biphenyls, urea
formaldehyde foam insulation, petroleum hydrocarbons, petroleum derived
substances or wastes, crude oil, nuclear fuel, natural gas or synthetic
gas.
"Hedging Agreements" means, collectively, interest rate
protection agreements, equity index agreements, foreign currency
exchange agreements, option agreements or other interest or exchange
rate or commodity price hedging agreements.
"Indebtedness" means, with respect to any Person (without
duplication), (a) all indebtedness and obligations of such Person for
borrowed money or in respect of loans or advances of any kind, (b) all
obligations of such Person evidenced by notes, bonds, debentures or
similar instruments, (c) all reimbursement obligations of such Person
with respect to surety bonds, letters of credit and bankers'
acceptances (in each case, whether or not drawn or matured and in the
stated amount thereof), (d) all obligations of such Person to pay the
deferred purchase price of property or services, (e) all indebtedness
created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person, (f) all
obligations of such Person as lessee under leases that are or are
required to be, in accordance with GAAP, recorded as capital leases, to
the extent such obligations are required to be so recorded, (g) the net
termination obligations of such Person under any Hedging Agreements,
calculated as of any date as if such agreement or arrangement were
terminated as of such date in accordance with the applicable rules
under GAAP, (h) all Contingent Obligations of such Person, (i) all
obligations and liabilities of such Person incurred in connection with
any transaction or series of transactions providing for the financing
of assets through one or more securitizations or in connection with, or
pursuant to, any synthetic lease or similar off-balance sheet
financing, (j) the aggregate amount of uncollected accounts receivable
of such Person subject at the time of determination to a sale of
receivables (or similar transaction) to the extent such transaction is
effected with recourse to such Person (whether or not such transaction
would be reflected on the balance sheet of such Person in accordance
with GAAP), (k) all obligations, contingent or otherwise, under the
Material Leases and (l) all indebtedness referred to in clauses (a)
through (k) above secured by any Lien on any property or asset owned or
held by such Person regardless of whether the indebtedness secured
thereby shall have been assumed by such Person or is nonrecourse to the
credit of such Person.
10
"Indemnified Liabilities" has the meaning set forth in Section
11.5(b).
"Indemnitees" has the meaning set forth in Section 11.5(b).
"Insured Series First Mortgage Bonds" means First Mortgage
Bonds in the aggregate principal amount of $111,000,000 pledged by the
Borrower to secure guarantees of $111,000,000 principal amount of
pollution control revenue bonds issued by the City of Farmington, New
Mexico, for the benefit of the Borrower, which pollution control
revenue bonds are also supported by a municipal bond insurance policy
issued by AMBAC Indemnity Corporation.
"Interest Payment Date" means, (a) as to any Eurodollar Loan,
the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for a
Eurodollar Loan exceeds three months, the respective dates that fall
every three months after the beginning of such Interest Period shall
also be Interest Payment Dates and (b) as to any Base Rate Loan, the
last Business Day of each fiscal quarter of the Borrower and the
Maturity Date.
"Interest Period" means, as to each Eurodollar Loan, the
period commencing on the date such Eurodollar Loan is disbursed or
converted to or continued as a Eurodollar Loan and ending on the date
one, two, three or six months thereafter, as selected by the Borrower
in its Notice of Borrowing or Notice of Continuation/Conversion;
provided that:
(a) any Interest Period that would otherwise end on a
day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period
shall end on the next preceding Business Day;
(b) any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there
is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last
Business Day of the calendar month at the end of such Interest
Period; and
(c) no Interest Period shall extend beyond the
Maturity Date.
"Laws" means, collectively, all international, foreign,
federal, state and local statutes, treaties, rules, guidelines,
regulations, ordinances, codes and administrative or judicial
precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the
enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental
Authority, in each case whether or not having the force of law.
11
"L/C Credit Extension" means, with respect to any Letter of
Credit, the issuance thereof, the extension of the expiry date thereof,
the renewal or increase of the amount thereof or any extension of
credit resulting from a drawing thereunder that has not been
reimbursed.
"L/C Fees" has the meaning set forth in Section 3.4(c).
"L/C Fronting Fee" has the meaning set forth in Section
2.2(i).
"L/C Issuer" means (a) solely with respect to the Existing
Letters of Credit, X.X. Xxxxxx Xxxxx Bank in its capacity as issuer of
such Existing Letters of Credit and (b) with respect to all other
Letters of Credit, Bank of America in its capacity as issuer of such
Letters of Credit hereunder, or any successor issuer of Letters of
Credit hereunder.
"L/C Obligations" means, as of any date of determination, the
aggregate undrawn amount of all outstanding Letters of Credit plus the
aggregate of all unreimbursed drawings under any Letter of Credit.
"Lender" means any of the Persons identified as a "Lender" on
the signature pages hereto, and any Eligible Assignee which may become
a Lender by way of assignment in accordance with the terms hereof,
together with their successors and permitted assigns.
"Lending Office" means, as to any Lender, the office or
offices of such Lender described as such in such Lender's
Administrative Questionnaire, or such other office or offices as a
Lender may from time to time notify the Borrower and the Administrative
Agent.
"Letter of Credit" means any letter of credit issued hereunder
and shall include the Existing Letters of Credit.
"Letter of Credit Application" means an application and
agreement for the issuance or amendment of a Letter of Credit in the
form from time to time in use by the L/C Issuer.
"Letter of Credit Expiration Date" means the day that is ten
days prior to the Maturity Date then in effect (or, if such day is not
a Business Day, the next preceding Business Day).
"Letter of Credit Sublimit" means an amount equal to FIFTY
MILLION DOLLARS ($50,000,000). The Letter of Credit Sublimit is part
of, and not in addition to, the Revolving Committed Amount.
"Lien" means any mortgage, pledge, hypothecation, assignment,
security interest, lien (statutory or otherwise), preference, priority,
charge or other encumbrance of any nature, whether voluntary or
involuntary, including, without limitation, the interest of any vendor
or lessor under any conditional sale agreement, title retention
agreement, capital lease or any other lease or arrangement having
substantially the same effect as any of the foregoing.
12
"Mandatory Borrowing" has the meaning set forth in Section
2.2(d).
"Margin Stock" has the meaning ascribed to such term in
Regulation U.
"Material Adverse Change" means a material adverse change in
the condition (financial or otherwise), operations, business,
performance, properties or assets of the Borrower and its Subsidiaries,
taken as a whole.
"Material Adverse Effect" means a material adverse effect upon
(a) the business, assets, liabilities (actual or contingent),
operations, condition (financial or otherwise) or prospects of the
Borrower and its Subsidiaries, taken as a whole, (b) the ability of the
Borrower to perform its obligations under this Credit Agreement or any
of the other Credit Documents or (c) the legality, validity or
enforceability of this Credit Agreement or any of the other Credit
Documents or the rights and remedies of the Administrative Agent and
the Lenders hereunder and thereunder.
"Material Lease" means any lease to the Borrower of its
leasehold interests in (i) Unit 1 or Xxxx 0, and related common
facilities, of the Palo Verde Nuclear Generating Station or (ii) the
electric transmission line, and related facilities, known as the
Eastern Interconnection Project, including, without limitation, any
lease set forth on Schedule 6.18 hereto.
"Maturity Date" means December 18, 2003.
"Moody's" means Xxxxx'x Investors Service, Inc. and its
successors.
"Multiemployer Plan" means any "multiemployer plan" within the
meaning of Section 4001(a)(3) of ERISA to which the Borrower, any of
its Subsidiaries or any ERISA Affiliate makes, is making or is
obligated to make contributions or has made or been obligated to make
contributions.
"Multiple Employer Plan" means a Single Employer Plan to which
the Borrower, any of its Subsidiaries or any ERISA Affiliate and at
least one employer other than the Borrower, any of its Subsidiaries or
any ERISA Affiliate are contributing sponsors.
"Nonrenewal Notice Date" has the meaning set forth in Section
2.2(b)(iii).
"Notice of Borrowing" means a request by the Borrower for a
Revolving Loan in the form of Exhibit 2.1(b).
"Notice of Continuation/Conversion" means a request by the
Borrower to continue an existing Eurodollar Loan to a new Interest
Period or to convert a Eurodollar Loan to a Base Rate Loan or a Base
Rate Loan to a Eurodollar Loan, in the form of Exhibit 2.3.
13
"Other Taxes" has the meaning set forth in Section 3.13(b).
"PBGC" means the Pension Benefit Guaranty Corporation and any
successor thereto.
"Participant" has the meaning set forth in Section 11.3(d).
"Participation Interest" means (a) the purchase by a Lender of
a participation in Letters of Credit or L/C Obligations as provided in
Section 2.2 or (b) the purchase by a Lender of a participation in any
Revolving Loan as provided in Section 3.8.
"Person" means any individual, partnership, joint venture,
firm, corporation, limited liability company, association, trust or
other enterprise (whether or not incorporated), or any Governmental
Authority.
"Plan" means any "employee benefit plan" (within the meaning
of Section 3(3) of ERISA) which is covered by ERISA and with respect to
which the Borrower, any of its Subsidiaries or any ERISA Affiliate is
(or, if such plan were terminated at such time, would under Section
4069 of ERISA be deemed to be) an "employer" within the meaning of
Section 3(5) of ERISA.
"Prime Rate" has the meaning set forth in the definition of
Base Rate in this Section 1.1.
"Pro Rata Share" means, with respect to each Lender at any
time, a fraction (expressed as a percentage, carried out to the ninth
decimal place), the numerator of which is the amount of the Commitment
of such Lender at such time and the denominator of which is the amount
of the Revolving Committed Amount at such time; provided that if the
Commitment of each Lender to make Revolving Loans and the obligation of
the L/C Issuer to make L/C Credit Extensions have been terminated
pursuant to Section 9.2 or otherwise, then the Pro Rata Share of each
Lender shall be determined based on such Lender's percentage ownership
of the sum of the aggregate amount of outstanding Revolving Loans plus
the aggregate amount of outstanding L/C Obligations. The initial Pro
Rata Share of each Lender is set forth opposite the name of such Lender
on Schedule 1.1(a) or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.
"Prohibited Transaction" means any transaction described in
(a) Section 406 of ERISA that is not exempt by reason of Section 408 of
ERISA or by reason of a Department of Labor prohibited transaction
individual or class exemption or (b) Section 4975(c) of the Code that
is not exempt by reason of Section 4975(c)(2) or 4975(d) of the Code.
"Property" means any right, title or interest in or to any
property or asset of any kind whatsoever, whether real, personal or
mixed and whether tangible or intangible.
"Register" has the meaning set forth in Section 11.3(c).
14
"Regulations T, U and X" means Regulations T, U and X,
respectively, of the Federal Reserve Board, and any successor
regulations.
"Reportable Event" means (a) any "reportable event" within the
meaning of Section 4043(c) of ERISA for which the notice under Section
4043(a) of ERISA has not been waived by the PBGC (including any failure
to meet the minimum funding standard of, or timely make any required
installment under, Section 412 of the Code or Section 302 of ERISA,
regardless of the issuance of any waivers in accordance with Section
412(d) of the Code), (b) any such "reportable event" subject to advance
notice to the PBGC under Section 4043(b)(3) of ERISA, (c) any
application for a funding waiver or an extension of any amortization
period pursuant to Section 412 of the Code, and (d) a cessation of
operations described in Section 4062(e) of ERISA.
"Required Lenders" means Lenders whose aggregate Credit
Exposure (as hereinafter defined) constitutes more than 50% of the
Credit Exposure of all Lenders at such time; provided, however, that if
any Lender shall be a Defaulting Lender at such time then there shall
be excluded from the determination of Required Lenders the aggregate
principal amount of Credit Exposure of such Lender at such time. For
purposes of the preceding sentence, the term "Credit Exposure" as
applied to each Lender shall mean (a) at any time prior to the
termination of the Commitments, the Pro Rata Share of such Lender of
the Revolving Committed Amount multiplied by the Revolving Committed
Amount and (b) at any time after the termination of the Commitments,
the sum of (i) the principal balance of the outstanding Revolving Loans
of such Lender plus (ii) such Lender's Participation Interests in the
face amount of the outstanding Letters of Credit.
"Requirement of Law" means, with respect to any Person, the
organizational documents of such Person and any Law applicable to or
binding upon such Person or any of its property or to which such Person
or any of its property is subject or otherwise pertaining to any or all
of the transactions contemplated by this Credit Agreement and the other
Credit Documents.
"Responsible Officer" means the president, the chief executive
officer, the co-chief executive officer, the chief financial officer,
any executive officer, vice president-finance, principal accounting
officer or treasurer of the Borrower, and any other officer or similar
official thereof responsible for the administration of the obligations
of the Borrower in respect of this Credit Agreement and the other
Credit Documents.
"Revolving Committed Amount" means ONE HUNDRED NINETY-FIVE
MILLION DOLLARS ($195,000,000) or such lesser amount, as it may be
reduced from time to time in accordance with Section 2.1(d).
"Revolving Loans" or "Loans" has the meaning set forth in
Section 2.1(a).
15
"Revolving Notes" or "Notes" means the promissory notes of the
Borrower in favor of each of the Lenders evidencing the Revolving Loans
provided pursuant to Section 2.1, individually or collectively, as
appropriate, as such promissory notes may be amended, modified,
supplemented, extended, renewed or replaced from time to time and as
evidenced in the form of Exhibit 2.1(e).
"S&P" means Standard & Poor's Rating Service, a division of
The XxXxxx-Xxxx Companies, Inc. and its successors.
"Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations promulgated thereunder.
"Single Employer Plan" means any Plan which is covered by
Title IV of ERISA, but which is not a Multiemployer Plan or Multiple
Employer Plan.
"Solvent" means, with respect to any Person as of a particular
date, that on such date (a) such Person is able to pay its debts and
other liabilities, Contingent Obligations and other commitments as they
mature in the normal course of business, (b) such Person does not
intend to, and does not believe that it will, incur debts or
liabilities beyond such Person's ability to pay as such debts and
liabilities mature in their ordinary course, (c) such Person is not
engaged in a business or a transaction, and is not about to engage in a
business or a transaction, for which such Person's assets would
constitute unreasonably small capital after giving due consideration to
the prevailing practice in the industry in which such Person is engaged
or is to engage, (d) the fair value of the assets of such Person is
greater than the total amount of liabilities, including, without
limitation, Contingent Obligations, of such Person and (e) the present
fair saleable value of the assets of such Person is not less than the
amount that will be required to pay the probable liability of such
Person on its debts as they become absolute and matured.
"SPC" has the meaning set forth in Section 11.3(g).
"Subsidiary" means, as to any Person, (a) any corporation more
than 50% of whose stock of any class or classes having by the terms
thereof ordinary voting power to elect a majority of the directors of
such corporation (irrespective of whether or not at the time, any class
or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time owned by
such Person directly or indirectly through Subsidiaries, and (b) any
partnership, association, joint venture or other entity in which such
person directly or indirectly through Subsidiaries has more than a 50%
equity interest at any time. Any reference to Subsidiary herein, unless
otherwise identified, shall mean a Subsidiary, direct or indirect, of
the Borrower. Any reference to a Subsidiary of the Borrower herein
shall not include any Subsidiary that is inactive, has minimal or no
assets and does not generate revenues.
"Taxes" has the meaning set forth in Section 3.13(a).
"3838 Securization" means the electric and gas accounts
receivable securitization program which is the subject of New Mexico
Public Regulation Commission in Case 3838.
"Total Assets" means all assets of the Borrower as shown on
its most recent quarterly consolidated balance sheet, as determined in
accordance with GAAP.
16
"Type" means, with respect to a Revolving Loan, its character
as a Base Rate Loan or a Eurodollar Loan.
"Unused Revolving Commitment" means, for any date of
determination, the amount by which (a) the aggregate Revolving
Committed Amount on such date exceeds (b) the sum of the aggregate
principal amount of outstanding Revolving Loans plus the aggregate
principal amount of outstanding L/C Obligations on such date.
"Utilization Fees" has the meaning set forth in Section 3.4(b).
"Voting Stock" means the Capital Stock of a Person that is
then outstanding and normally entitled to vote in the election of
directors and other securities of such Person convertible into or
exercisable for such Capital Stock (whether or not such securities are
then currently convertible or exercisable).
1.2 Computation of Time Periods and Other Definitional Provisions.
-------------------------------------------------------------
For purposes of computation of periods of time hereunder, the word
"from" means "from and including" and the words "to" and "until" each mean "to
but excluding." References in this Credit Agreement to "Articles", "Sections",
"Schedules" or "Exhibits" shall be to Articles, Sections, Schedules or Exhibits
of or to this Credit Agreement unless otherwise specifically provided.
1.3 Accounting Terms/Calculation of Financial Covenants.
---------------------------------------------------
Except as otherwise expressly provided herein, all accounting terms
used herein or incorporated herein by reference shall be interpreted, and all
financial statements and certificates and reports as to financial matters
required to be delivered to the Administrative Agent or the Lenders hereunder
shall be prepared, in accordance with GAAP applied on a consistent basis.
Notwithstanding anything to the contrary in this Credit Agreement, for purposes
of calculation of the financial covenants set forth in Section 7.2, all
accounting determinations and computations thereunder shall be made in
accordance with GAAP as in effect as of the date of this Credit Agreement
applied on a basis consistent with the application used in preparing the most
recent financial statements of the Borrower referred to in Section 4.1(d). In
the event that any changes in GAAP after such date are required to be applied to
the Borrower and would affect the computation of the financial covenants
contained in Section 7.2, such changes shall be followed only from and after the
date this Credit Agreement shall have been amended to take into account any such
changes.
1.4 Time.
----
All references to time herein shall be references to Central Standard
Time or Central Daylight time, as the case may be, unless specified otherwise.
17
1.5 Rounding of Financial Covenants.
-------------------------------
Any financial ratios required to be maintained by the Borrower pursuant
to this Credit Agreement shall be calculated by dividing the appropriate
component by the other component, carrying the result to one place more than the
number of places by which such ratio is expressed herein and rounding the result
up or down to the nearest number (with a rounding-up if there is no nearest
number).
1.6 References to Agreements and Requirement of Laws.
------------------------------------------------
Unless otherwise expressly provided herein: (a) references to
organization documents, agreements (including the Credit Documents) and other
contractual instruments shall be deemed to include all subsequent amendments,
restatements, extensions, supplements and other modifications thereto, but only
to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Credit Document and (b) references
to any Requirement of Law shall include all statutory and regulatory provisions
consolidating, amending, replacing, supplementing or interpreting such
Requirement of Law.
SECTION 2
CREDIT FACILITY
2.1 Revolving Loans.
---------------
(a) Revolving Loan Commitment. Subject to the terms and
conditions set forth herein, each Lender severally agrees to make
revolving loans (each a "Revolving Loan" or "Loan" and collectively the
"Revolving Loans" or "Loans") in Dollars to the Borrower, at any time
and from time to time, during the period from and including the Closing
Date to but not including the Maturity Date (or such earlier date if
the Commitments have been terminated as provided herein); provided,
however, that after giving effect to any Borrowing (i) the sum of the
aggregate principal amount of outstanding Revolving Loans plus the
aggregate principal amount of outstanding L/C Obligations shall not
exceed the Revolving Committed Amount and (ii) with respect to each
individual Lender, the sum of the aggregate principal amount of
outstanding Revolving Loans plus the aggregate principal amount of
outstanding L/C Obligations of such Lender shall not exceed such
Lender's Pro Rata Share of the Revolving Committed Amount. Subject to
the terms of this Credit Agreement (including Section 3.3), the
Borrower may borrow, repay and reborrow Revolving Loans.
(b) Method of Borrowing for Revolving Loans. By no later than
11:00 a.m. (i) on the date of the requested Borrowing of Revolving
Loans that will be Base Rate Loans and (ii) three Business Days prior
to the date of the requested Borrowing of Revolving Loans that will be
Eurodollar Loans, the Borrower shall telephone the Administrative Agent
as well as submit a written Notice of Borrowing in the form of Exhibit
18
2.1(b) to the Administrative Agent setting forth (A) the amount
requested, (B) the date of the requested Borrowing, (C) the Type of
Revolving Loan, (D) with respect to Revolving Loans that will be
Eurodollar Loans, the Interest Period applicable thereto, and (E)
certification that the Borrower has complied in all respects with
Section 5. If the Borrower shall fail to specify (1) an Interest Period
in the case of a Eurodollar Loan, then such Eurodollar Loan shall be
deemed to have an Interest Period of one month or (2) the Type of
Revolving Loan requested, then such Revolving Loan shall be deemed to
be a Base Rate Loan. All Revolving Loans made on the Closing Date shall
be Base Rate Loans. Thereafter, all or any portion of the Revolving
Loans may be converted into Eurodollar Loans in accordance with the
terms of Section 2.3.
(c) Funding of Revolving Loans. Upon receipt of a Notice of
Borrowing, the Administrative Agent shall promptly inform the Lenders
as to the terms thereof. Each such Lender shall make its Pro Rata Share
of the requested Revolving Loans available to the Administrative Agent
in immediately available funds at the Administrative Agent's Office not
later than 1:00 p.m. on the Business Day specified in the applicable
Notice of Borrowing. Upon satisfaction of the conditions set forth in
Section 5, the amount of the requested Revolving Loans will then be
made available to the Borrower by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of the
Administrative Agent with the amount of such funds or (ii) wire
transfer of such funds, in each case in accordance with instructions
provided to (and reasonably acceptable to) the Administrative Agent by
the Borrower.
(d) Reductions of Revolving Committed Amount. Upon at least
three Business Days' notice, the Borrower shall have the right to
permanently terminate or reduce the aggregate unused amount of the
Revolving Committed Amount at any time or from time to time; provided
that (i) each partial reduction shall be in an aggregate amount at
least equal to $5,000,000 and in integral multiples of $1,000,000 above
such amount and (ii) no reduction shall be made which would reduce the
Revolving Committed Amount to an amount less than the sum of the
aggregate principal amount of outstanding Revolving Loans plus the
aggregate principal amount of outstanding L/C Obligations. Any
reduction in (or termination of) the Revolving Committed Amount shall
be permanent and may not be reinstated.
(e) Revolving Notes. The Revolving Loans made by each Lender
shall be evidenced by a duly executed promissory note of the Borrower
to such Lender in substantially the form of Exhibit 2.1(e).
2.2 Letter of Credit Subfacility.
----------------------------
(a) The Letter of Credit Commitment.
(i) Subject to the terms and conditions set forth
herein and other terms and conditions that the L/C Issuer may
reasonably require, (A) the L/C Issuer agrees, in reliance
upon the agreements of the other Lenders set forth in this
Section 2.2, from time to time on any Business Day during the
period from the Closing Date until the Letter of Credit
Expiration Date, to issue standby Letters of Credit in Dollars
19
for the account of the Borrower and to amend Letters of Credit
previously issued by it, in each case in accordance with
subsection (b) below and (B) the Lenders severally agree to
participate in Letters of Credit issued for the account of the
Borrower; provided, however, that after giving effect to the
issuance of any Letter of Credit (1) the sum of the aggregate
principal amount of outstanding Revolving Loans plus the
aggregate principal amount of outstanding L/C Obligations
shall not exceed the Revolving Committed Amount, (2) with
respect to each individual Lender, the sum of the aggregate
principal amount of outstanding Revolving Loans of such Lender
plus the aggregate principal amount of outstanding L/C
Obligations of such Lender shall not exceed such Lender's Pro
Rata Share of the Revolving Committed Amount and (3) the
aggregate amount of L/C Obligations shall not at any time
exceed the Letter of Credit Sublimit. Within the foregoing
limits, and subject to the terms and conditions hereof, the
Borrower may, during the foregoing period, obtain Letters of
Credit to replace Letters of Credit that have expired or that
have been drawn upon and reimbursed.
(ii) The L/C Issuer shall not issue or amend any
Letter of Credit if:
(A) any order, judgment or decree of any
Governmental Authority or arbitrator shall by its
terms purport to enjoin or restrain the L/C Issuer
from issuing such Letter of Credit, or any
Requirement of Law applicable to the L/C Issuer or
any request or directive (whether or not having the
force of law) from any Governmental Authority with
jurisdiction over the L/C Issuer shall prohibit, or
request that the L/C Issuer refrain from, the
issuance of letters of credit generally or such
Letter of Credit in particular or shall impose upon
the L/C Issuer with respect to such Letter of Credit
any restriction, reserve or capital requirement (for
which the L/C Issuer is not otherwise compensated
hereunder) not in effect on the Closing Date, or
shall impose upon the L/C Issuer any unreimbursed
loss, cost or expense which was not applicable on the
Closing Date and which the L/C Issuer in good xxxxx
xxxxx material to it;
(B) the expiry date of such requested Letter
of Credit would occur more than twelve months after
the date of issuance, unless the Required Lenders
have approved such expiry date;
(C) the expiry date of such requested Letter
of Credit would occur after the Letter of Credit
Expiration Date, unless all the Lenders have approved
such expiry date;
(D) the issuance of such Letter of Credit
would violate one or more policies of the L/C Issuer;
or
(E) such Letter of Credit is in an initial
amount less than $100,000 (unless otherwise agreed to
by the L/C Issuer), is to be used for a purpose other
than as permitted by Section 7.11, or is denominated
in a currency other than Dollars.
20
(iii) The L/C Issuer shall be under no obligation to
amend any Letter of Credit if (A) the L/C Issuer would have no
obligation at such time to issue such Letter of Credit in its
amended form under the terms hereof or (B) the beneficiary of
such Letter of Credit does not accept the proposed amendment
to such Letter of Credit.
(b) Procedures for Issuance and Amendment of Letters of
Credit.
(i) Each Letter of Credit shall be issued or amended,
as the case may be, upon the request of the Borrower delivered
to the L/C Issuer (with a copy to the Administrative Agent) in
the form of a Letter of Credit Application, appropriately
completed and signed by a Responsible Officer of the Borrower.
The Letter of Credit Application must be received by the L/C
Issuer and the Administrative Agent not later than 11:00 a.m.
at least two Business Days (or such later date and time as the
L/C Issuer may agree in a particular instance in its sole
discretion) prior to the proposed issuance date or date of
amendment, as applicable. In the case of a request for an
initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to
the L/C Issuer: (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day),
(B) the amount thereof, (C) the expiry date thereof, (D) the
name and address of the beneficiary thereof, (E) the documents
to be presented by such beneficiary in case of any drawing
thereunder, (F) the full text of any certificate to be
presented by such beneficiary in case of any drawing
thereunder and (G) such other matters as the L/C Issuer may
require. In the case of a request for an amendment of any
outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to
the L/C Issuer (1) the Letter of Credit to be amended, (2) the
proposed date of amendment thereof (which shall be a Business
Day), (3) the nature of the proposed amendment and (4) such
other matters as the L/C Issuer may require.
(ii) Promptly after receipt of any Letter of Credit
Application, the L/C Issuer will confirm with the
Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of
Credit Application from the Borrower and, if not, the L/C
Issuer will provide the Administrative Agent with a copy
thereof. Upon receipt by the L/C Issuer of confirmation from
the Administrative Agent that the requested issuance or
amendment is permitted in accordance with the terms hereof,
then, subject to the terms and conditions hereof, the L/C
Issuer shall, on the requested date, issue a Letter of Credit
for the account of the Borrower or enter into the applicable
amendment, as the case may be, in each case in accordance with
the L/C Issuer's usual and customary business practices.
(iii) If the Borrower so requests in any applicable
Letter of Credit Application, the L/C Issuer may, in its sole
and absolute discretion, agree to issue a Letter of Credit
that has automatic renewal provisions (each, an "Auto-Renewal
Letter of Credit"); provided that any such Auto-Renewal Letter
of Credit must permit the L/C Issuer to prevent any such
renewal at least once in each twelve-month period (commencing
21
with the date of issuance of such Letter of Credit) by giving
prior notice to the beneficiary thereof not later than a day
(the "Nonrenewal Notice Date") in each such twelve-month
period to be agreed upon at the time such Letter of Credit is
issued. Unless otherwise directed by the L/C Issuer, the
Borrower shall not be required to make a specific request to
the L/C Issuer for any such renewal. Once an Auto-Renewal
Letter of Credit has been issued, the Lenders shall be deemed
to have authorized (but may not require) the L/C Issuer to
permit the renewal of such Letter of Credit at any time to an
expiry date not later than the Letter of Credit Expiration
Date; provided, however, that the L/C Issuer shall not permit
any such renewal if (A) the L/C Issuer has determined that it
would have no obligation at such time to issue such Letter of
Credit in its renewed form under the terms hereof (by reason
of the provisions of Section 2.2(a)(ii) or otherwise), or (B)
it has received notice (which may be by telephone or in
writing) on or before the day that is two Business Days before
the Nonrenewal Notice Date (1) from the Administrative Agent
that the Required Lenders have elected not to permit such
renewal or (2) from the Administrative Agent, any Lender or
the Borrower that one or more of the applicable conditions
specified in Section 5 is not then satisfied.
(iv) Promptly after its delivery of any Letter of
Credit or any amendment to a Letter of Credit to an advising
bank with respect thereto or to the beneficiary thereof, the
L/C Issuer will also deliver to the Borrower and the
Administrative Agent a true and complete copy of such Letter
of Credit or amendment.
(c) Participations.
(i) On the Closing Date, each Lender shall be deemed
to have purchased without recourse a risk participation from
the L/C Issuer in each Existing Letter of Credit and the
obligations arising thereunder and any collateral relating
thereto, in each case in an amount equal to its Pro Rata Share
of the obligations under such Existing Letter of Credit, and
shall absolutely, unconditionally and irrevocably assume, as
primary obligor and not as surety, and be obligated to pay to
the L/C Issuer therefor and discharge when due, its Pro Rata
Share of the obligations arising under such Existing Letter of
Credit.
(ii) Each Lender, upon issuance of a Letter of
Credit, shall be deemed to have purchased without recourse a
risk participation from the L/C Issuer in such Letter of
Credit and the obligations arising thereunder and any
collateral relating thereto, in each case in an amount equal
to its Pro Rata Share of the obligations under such Letter of
Credit, and shall absolutely, unconditionally and irrevocably
assume, as primary obligor and not as surety, and be obligated
to pay to the L/C Issuer therefor and discharge when due, its
Pro Rata Share of the obligations arising under such Letter of
Credit.
22
(d) Reimbursement.
(i) In the event of any drawing under any Letter of
Credit, the L/C Issuer will promptly notify the Borrower. The
Borrower shall reimburse the L/C Issuer on the day of drawing
under any Letter of Credit either with the proceeds of a
Revolving Loan obtained hereunder or otherwise in immediately
available funds. If the Borrower shall fail to reimburse the
L/C Issuer as provided hereinabove, the unreimbursed amount of
such drawing shall bear interest at a per annum rate equal to
the Base Rate plus two percent (2%).
(ii) Subsequent to a drawing under any Letter of
Credit, unless the Borrower shall immediately notify the L/C
Issuer of its intent to otherwise reimburse the L/C Issuer,
the Borrower shall be deemed to have requested a Base Rate
Loan in the amount of the drawing as described herein, the
proceeds of which will be used to satisfy the reimbursement
obligations. On any day on which the Borrower shall be deemed
to have requested a Revolving Loan borrowing to reimburse a
drawing under a Letter of Credit, the Administrative Agent
shall give notice to the Lenders that a Revolving Loan has
been deemed requested in connection with a drawing under a
Letter of Credit, in which case a Revolving Loan borrowing
comprised solely of Base Rate Loans (each such borrowing, a
"Mandatory Borrowing") shall be immediately made from all
Lenders (without giving effect to any termination of the
Commitments pursuant to Section 9.2 or otherwise) pro rata
based on each Lender's respective Pro Rata Share and the
proceeds thereof shall be paid directly to the L/C Issuer for
application to the respective L/C Obligations. Each Lender
hereby irrevocably agrees to make such Revolving Loans
immediately upon any such request or deemed request on account
of each such Mandatory Borrowing in the amount and in the
manner specified in the preceding sentence and on the same
such date notwithstanding (A) the amount of Mandatory
Borrowing may not comply with the minimum amount for
borrowings of Revolving Loans otherwise required hereunder,
(B) the failure of any conditions specified in Section 5.2 to
have been satisfied, (C) the existence of a Default or an
Event of Default, (D) the failure of any such request or
deemed request for Revolving Loans to be made by the time
otherwise required hereunder, (E) the date of such Mandatory
Borrowing, or (F) any reduction in the Revolving Committed
Amount or any termination of the Commitments.
(iii) In the event that any Mandatory Borrowing
cannot for any reason be made on the date otherwise required
above (including, without limitation, as a result of the
commencement of a proceeding under the Bankruptcy Code with
respect to the Borrower), then each such Lender hereby agrees
that it shall forthwith fund (as of the date the Mandatory
Borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and
prior to such purchase) its Pro Rata Share in the outstanding
L/C Obligations; provided, that in the event any Lender shall
23
fail to fund its Pro Rata Share on the day the Mandatory
Borrowing would otherwise have occurred, then the amount of
such Lender's unfunded participation interest therein shall
bear interest payable to the L/C Issuer upon demand, at the
rate equal to, if paid within two Business Days of such date,
the Federal Funds Rate, and thereafter at a rate equal to the
Base Rate. Simultaneously with the making of each such payment
by a Lender to the L/C Issuer, such Lender shall,
automatically and without any further action on the part of
the L/C Issuer or such Lender, acquire a participation in an
amount equal to such payment (excluding the portion of such
payment constituting interest owing to the L/C Issuer) in the
related unreimbursed drawing portion of the L/C Obligation and
in the interest thereon and shall have a claim against the
Borrower with respect thereto. Any payment by the Lenders
pursuant to this clause (iii) shall not relieve or otherwise
impair the obligations of the Borrower to reimburse the L/C
Issuer under a Letter of Credit.
(e) Obligations Absolute. The obligation of the Borrower to
reimburse the L/C Issuer for each drawing under each Letter of Credit
shall be absolute, unconditional and irrevocable, and shall be paid
strictly in accordance with the terms of this Credit Agreement under
all circumstances, including the following:
(i) any lack of validity or enforceability of such
Letter of Credit, this Credit Agreement, or any other
agreement or instrument relating thereto;
(ii) the existence of any claim, counterclaim,
set-off, defense or other right that the Borrower may have at
any time against any beneficiary or any transferee of such
Letter of Credit (or any Person for whom any such beneficiary
or any such transferee may be acting), the L/C Issuer or any
other Person, whether in connection with this Credit
Agreement, the transactions contemplated hereby or by such
Letter of Credit or any agreement or instrument relating
thereto, or any unrelated transaction;
(iii) any draft, demand, certificate or other
document presented under such Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or
any statement therein being untrue or inaccurate in any
respect; or any loss or delay in the transmission or otherwise
of any document required in order to make a drawing under such
Letter of Credit;
(iv) any payment by the L/C Issuer under such Letter
of Credit against presentation of a draft or certificate that
does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such
Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or
successor to any beneficiary or any transferee of such Letter
of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or
(v) any other circumstance or happening whatsoever,
whether or not similar to any of the foregoing, including any
other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Borrower.
The Borrower shall promptly examine a copy of each Letter of Credit and
each amendment thereto that is delivered to it and, in the event of any
claim of noncompliance with the Borrower's instructions or other
irregularity, the Borrower will immediately notify the L/C Issuer. The
Borrower shall be conclusively deemed to have waived any such claim
against the L/C Issuer and its correspondents unless such notice is
given as aforesaid.
24
(f) Role of L/C Issuer. Each Lender and the Borrower agree
that, in paying any drawing under a Letter of Credit, the L/C Issuer
shall not have any responsibility to obtain any document (other than
any sight draft, certificates and documents expressly required by the
Letter of Credit) or to ascertain or inquire as to the validity or
accuracy of any such document or the authority of the Person executing
or delivering any such document. None of the L/C Issuer, any
Agent-Related Person nor any of the respective correspondents,
participants or assignees of the L/C Issuer shall be liable to any
Lender for (i) any action taken or omitted in connection herewith at
the request or with the approval of the Lenders or the Required
Lenders, as applicable, (ii) any action taken or omitted in the absence
of gross negligence or willful misconduct or (iii) the due execution,
effectiveness, validity or enforceability of any document or instrument
related to any Letter of Credit or Letter of Credit Application. The
Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of
Credit; provided, however, that this assumption is not intended to, and
shall not, preclude the Borrower's pursuing such rights and remedies as
it may have against the beneficiary or transferee at law or under any
other agreement. None of the L/C Issuer, any Agent-Related Person, nor
any of the respective correspondents, participants or assignees of the
L/C Issuer, shall be liable or responsible for any of the matters
described in clauses (i) through (v) of Section 2.2(e). In furtherance
and not in limitation of the foregoing, the L/C Issuer may accept
documents that appear on their face to be in order, without
responsibility for further investigation and the L/C Issuer shall not
be responsible for the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign a Letter
of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, which may prove to be invalid or ineffective for any
reason.
(g) Cash Collateral. If, as of the Letter of Credit Expiration
Date, any Letter of Credit for any reason remains outstanding and
partially or wholly undrawn, the Borrower shall immediately Cash
Collateralize the then aggregate principal amount of all L/C
Obligations (in an amount equal to such aggregate principal amount
determined as of the Letter of Credit Expiration Date). The Borrower
hereby grants to the Administrative Agent, for the benefit of the L/C
Issuer and the Lenders, a security interest in all such cash, deposit
accounts and all balances therein and all proceeds of the foregoing.
Cash collateral shall be maintained in blocked, non-interest bearing
deposit accounts at Bank of America.
(h) Applicability of ISP98 and UCP. Unless otherwise expressly
agreed by the L/C Issuer and the Borrower when a Letter of Credit is
issued (including any such agreement applicable to an Existing Letter
of Credit), the rules of the "International Standby Practices 1998"
published by the Institute of International Banking Requirement of Law
& Practice (or such later version thereof as may be in effect at the
time of issuance) and the rules of the Uniform Customs and Practice for
Documentary Credits, as most recently published by the International
Chamber of Commerce (the "ICC") at the time of issuance (including the
ICC decision published by the Commission on Banking Technique and
Practice on April 6, 1998 regarding the European single currency
(euro)) shall apply to each Letter of Credit.
25
(i) Fronting Fee and Documentary and Processing Charges
Payable to L/C Issuer. The Borrower shall pay directly to the L/C
Issuer for its own account a fronting fee with respect to each Letter
of Credit in an amount equal to 0.125% times the daily maximum amount
available to be drawn under such Letter of Credit (the "L/C Fronting
Fee"). The L/C Fronting Fee shall be computed on a quarterly basis in
arrears and shall be due and payable on the last Business Day of each
fiscal quarter of the Borrower (as well as on the Letter of Credit
Expiration Date) for the fiscal quarter (or portion thereof) then
ending, beginning with the first of such dates to occur after the
issuance of such Letter of Credit. In addition, the Borrower shall pay
directly to the L/C Issuer for its own account the customary issuance,
presentation, amendment and other processing fees, and other standard
costs and charges, of the L/C Issuer relating to letters of credit as
from time to time in effect. Such customary fees and standard costs and
charges are due and payable on demand and are nonrefundable.
(j) Conflict with Letter of Credit Application. In the event
of any conflict between the terms hereof and the terms of any Letter of
Credit Application, the terms hereof shall control.
(k) Indemnification of L/C Issuer.
(i) In addition to its other obligations under this
Credit Agreement, the Borrower hereby agrees to protect,
indemnify, pay and hold the L/C Issuer harmless from and
against any and all claims, demands, liabilities, damages,
losses, costs, charges and expenses (including reasonable
attorneys' fees) that the L/C Issuer may incur or be subject
to as a consequence, direct or indirect, of (A) the issuance
of any Letter of Credit or (B) the failure of the L/C Issuer
to honor a drawing under a Letter of Credit as a result of any
act or omission, whether rightful or wrongful, of any present
or future de jure or de facto government or Governmental
Authority (all such acts or omissions, herein called
"Government Acts").
(ii) As between the Borrower and the L/C Issuer, the
Borrower shall assume all risks of the acts, omissions or
misuse of any Letter of Credit by the beneficiary thereof. In
the absence of gross negligence or willful misconduct, the L/C
Issuer shall not be responsible for: (A) the form, validity,
sufficiency, accuracy, genuineness or legal effect of any
document submitted by any party in connection with the
application for and issuance of any Letter of Credit, even if
it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (B) the
validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign any Letter of
Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, that may prove to be invalid or
ineffective for any reason; (C) failure of the beneficiary of
a Letter of Credit to comply fully with conditions required in
order to draw upon a Letter of Credit; (D) errors, omissions,
interruptions or delays in transmission or delivery of any
messages, by mail, cable, telegraph, telex or otherwise,
whether or not they be in cipher; (E) errors in interpretation
of technical terms; (F) any loss or delay in the transmission
or otherwise of any document required in order to make a
drawing under a Letter of Credit or of the proceeds thereof;
and (G) any consequences arising from causes beyond the
control of the L/C Issuer, including, without limitation, any
Government Acts. None of the above shall affect, impair, or
prevent the vesting of the L/C Issuer's rights or powers
hereunder.
26
(iii) In furtherance and extension and not in
limitation of the specific provisions hereinabove set forth,
any action taken or omitted by the L/C Issuer, under or in
connection with any Letter of Credit or the related
certificates, if taken or omitted in good faith, shall not put
the L/ C Issuer under any resulting liability to the Borrower.
It is the intention of the parties that this Credit Agreement
shall be construed and applied to protect and indemnify the
L/C Issuer against any and all risks involved in the issuance
of the Letters of Credit, all of which risks are hereby
assumed by the Borrower, including, without limitation, any
and all risks of the acts or omissions, whether rightful or
wrongful, of any present or future Government Acts. The L/C
Issuer shall not, in any way, be liable for any failure by the
L/C Issuer or anyone else to pay any drawing under any Letter
of Credit as a result of any Government Acts or any other
cause beyond the control of the L/C Issuer.
(iv) Nothing in this subsection (l) is intended to
limit the reimbursement obligation of the Borrower contained
in this Section 2.2. The obligations of the Borrower under
this subsection (l) shall survive the termination of this
Credit Agreement. No act or omission of any current or prior
beneficiary of a Letter of Credit shall in any way affect or
impair the rights of the L/ C Issuer to enforce any right,
power or benefit under this Credit Agreement.
(l) Letter of Credit Amounts. Unless otherwise specified, all
references herein to the amount of a Letter of Credit at any time shall
be deemed to mean the maximum face amount of such Letter of Credit
after giving effect to all increases thereof contemplated by such
Letter of Credit or the Letter of Credit Application therefor, whether
or not such maximum face amount is in effect at such time.
2.3 Continuations and Conversions.
-----------------------------
Subject to the terms below, the Borrower shall have the option, on any
Business Day prior to the Maturity Date, to continue existing Eurodollar Loans
for a subsequent Interest Period, to convert Base Rate Loans into Eurodollar
Loans or to convert Eurodollar Loans into Base Rate Loans. By no later than
11:00 a.m. (a) on the date of the requested conversion of a Eurodollar Loan to a
Base Rate Loan and (b) three Business Days prior to the date of the requested
continuation of a Eurodollar Loan or conversion of a Base Rate Loan to a
Eurodollar Loan, the Borrower shall provide telephonic notice to the
Administrative Agent, followed promptly by a written Notice of
Continuation/Conversion in the form of Exhibit 2.3, setting forth whether the
Borrower wishes to continue or convert such Revolving Loans. Notwithstanding
anything herein to the contrary, (A) except as provided in Section 3.11,
Eurodollar Loans may only be continued or converted into Base Rate Loans on the
last day of the Interest Period applicable thereto, (B) Eurodollar Loans may not
be continued nor may Base Rate Loans be converted into Eurodollar Loans during
the existence and continuation of a Default or an Event of Default and (C) any
request to continue a Eurodollar Loan that fails to comply with the terms hereof
or any failure to request a continuation of a Eurodollar Loan at the end of an
Interest Period shall be deemed a request to convert such Eurodollar Loan to a
Base Rate Loan on the last day of the applicable Interest Period.
27
2.4 Minimum Amounts.
---------------
Each request for a borrowing, conversion or continuation shall be
subject to the requirements that (a) each Eurodollar Loan shall be in a minimum
amount of $5,000,000 and in integral multiples of $1,000,000 in excess thereof,
(b) each Base Rate Loan shall be in a minimum amount of $3,000,000 and in
integral multiples of $100,000 in excess thereof (or the remaining amount of
outstanding Revolving Loans) and (c) no more than five Eurodollar Loans shall be
outstanding hereunder at any one time. For the purposes of this Section 2.4,
separate Eurodollar Loans that begin and end on the same date, as well as
Eurodollar Loans that begin and end on different dates, shall all be considered
as separate Eurodollar Loans.
SECTION 3
GENERAL PROVISIONS APPLICABLE
TO REVOLVING LOANS
3.1 Interest.
--------
(a) Interest Rate. Subject to Sections 3.1(b), (i) all Base
Rate Loans shall accrue interest at the Base Rate and (ii) all
Eurodollar Loans shall accrue interest at the Adjusted Eurodollar Rate.
(b) Default Rate of Interest. After the occurrence, and during
the continuation, of an Event of Default, the principal of and, to the
extent permitted by Law, interest on the Revolving Loans and any other
amounts owing hereunder or under the other Credit Documents (including
without limitation fees and expenses) shall bear interest, payable on
demand, at the Default Rate.
(c) Interest Payments. Interest on Revolving Loans shall be
due and payable in arrears on each Interest Payment Date.
3.2 Payments Generally.
------------------
(a) No Deductions; Place and Time of Payments. All payments to
be made by the Borrower shall be made without condition or deduction
for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein, all payments by the Borrower
hereunder shall be made to the Administrative Agent, for the account of
the respective Lenders to which such payment is owed, at the
Administrative Agent's Office in Dollars and in immediately available
funds not later than 2:00 p.m. on the date specified herein. The
Administrative Agent will promptly distribute to each Lender its Pro
Rata Share (or other applicable share as provided herein) of such
payment in like funds as received by wire transfer to such Lender's
Lending Office. All payments received by the Administrative Agent after
2:00 p.m. shall deemed received on the next succeeding Business Day and
any applicable interest or fee shall continue to accrue.
28
(b) Payment Dates. Subject to the definition of "Interest
Period," if any payment to be made by the Borrower shall come due on a
day other than a Business Day, payment shall be made on the next
following Business Day, and such extension of time shall be reflected
in computing interest or fees, as the case may be.
(c) Advances by Administrative Agent. Unless the Borrower or
any Lender has notified the Administrative Agent, prior to the date any
payment is required to be made by it to the Administrative Agent
hereunder, that the Borrower or such Lender, as the case may be, will
not make such payment, the Administrative Agent may assume that the
Borrower or such Lender, as the case may be, has timely made such
payment and may (but shall not be so required to), in reliance thereon,
make available a corresponding amount to the Person entitled thereto.
If and to the extent that such payment was not in fact made to the
Administrative Agent in immediately available funds, then:
(i) if the Borrower failed to make such payment, each
Lender shall forthwith on demand repay to the Administrative
Agent the portion of such assumed payment that was made
available to such Lender in immediately available funds,
together with interest thereon in respect of each day from and
including the date such amount was made available by the
Administrative Agent to such Lender to the date such amount is
repaid to the Administrative Agent in immediately available
funds at the Federal Funds Rate from time to time in effect;
and
(ii) if any Lender failed to make such payment, such
Lender shall forthwith on demand pay to the Administrative
Agent the amount thereof in immediately available funds,
together with interest thereon for the period from the date
such amount was made available by the Administrative Agent to
the Borrower to the date such amount is recovered by the
Administrative Agent (the "Compensation Period") at a rate per
annum equal to the Federal Funds Rate from time to time in
effect. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender's
Revolving Loan included in the applicable Borrowing. If such
Lender does not pay such amount forthwith upon the
Administrative Agent's demand therefor, the Administrative
Agent may make a demand therefor upon the Borrower, and the
Borrower shall pay such amount to the Administrative Agent,
together with interest thereon for the Compensation Period at
a rate per annum equal to the rate of interest applicable to
such Borrowing. Nothing herein shall be deemed to relieve any
Lender from its obligation to fulfill its Commitment or to
prejudice any rights which the Administrative Agent or the
Borrower may have against any Lender as a result of any
default by such Lender hereunder.
A notice of the Administrative Agent to any Lender or the Borrower with
respect to any amount owing under this subsection (c) shall be
conclusive, absent manifest error.
29
(d) Several Obligations. The obligations of the Lenders
hereunder to make Revolving Loans and to fund or purchase Participation
Interests are several and not joint. The failure of any Lender to make
any Revolving Loan or to fund or purchase any Participation Interest on
any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its
Revolving Loan or fund or purchase its Participation Interest.
(e) Funding Offices. Nothing herein shall be deemed to
obligate any Lender to obtain the funds for any Revolving Loan in any
particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Revolving
Loan in any particular place or manner.
3.3 Prepayments.
-----------
(a) Voluntary Prepayments. The Borrower shall have the right
to prepay the Revolving Loans in whole or in part from time to time
without premium or penalty; provided, however, that (i) all prepayments
under this Section 3.3(a) shall be subject to Section 3.14, (ii)
Eurodollar Loans may only be prepaid on three Business Days' prior
written notice to the Administrative Agent, (iii) each such partial
prepayment of Eurodollar Loans shall be in the minimum principal amount
of $5,000,000 and integral multiples of $1,000,000 and (iv) each such
partial prepayment of Base Rate Loans shall be in the minimum principal
amount of $500,000 and integral multiples of $100,000 or, in the case
of clauses (iii) and (iv), if less than such minimum amounts, the
entire principal amount thereof then outstanding. Amounts prepaid
pursuant to this Section 3.3(a) shall be applied as the Borrower may
elect based on the Lenders' Pro Rata Shares; provided, however, if the
Borrower fails to specify, such prepayment shall be applied by the
Administrative Agent, subject to Section 3.7, in such manner as it
deems reasonably appropriate.
(b) Mandatory Prepayments. If at any time (i) the sum of the
aggregate principal amount of Revolving Loans outstanding plus the
aggregate principal amount of L/C Obligations outstanding exceeds the
Revolving Committed Amount or (ii) the aggregate principal amount of
L/C Obligations outstanding exceeds the Letter of Credit Sublimit, the
Borrower shall immediately make a principal payment to the
Administrative Agent and/or Cash Collateralize outstanding L/C
Obligations in a manner, in an amount and in Dollars as is necessary to
be in compliance with Sections 2.1 and 2.2, as applicable, and as
directed by the Administrative Agent. All amounts required to be
prepaid pursuant to this Section 3.3(b) shall be applied first to Base
Rate Loans, second to Eurodollar Loans in direct order of Interest
Period maturities and third to Cash Collateralize outstanding L/C
Obligations. All prepayments pursuant to this Section 3.3(b) shall be
subject to Section 3.14.
3.4 Fees.
----
(a) Commitment Fees. In consideration of the Revolving
Committed Amount being made available by the Lenders hereunder, the
Borrower agrees to pay to the Administrative Agent, for the pro rata
benefit of each Lender based on its Pro Rata Share, a per annum fee
30
equal to the daily average sum of the Applicable Percentage for
Commitment Fees for each day during the period of determination
multiplied by the Unused Revolving Commitment for each such day (the
"Commitment Fees"). The Commitment Fees shall commence to accrue on the
Closing Date and shall be due and payable in arrears on the last
Business Day of each fiscal quarter of the Borrower (as well as on the
Maturity Date and on any date that the Revolving Committed Amount is
reduced) for the fiscal quarter (or portion thereof) then ending,
beginning with the first of such dates to occur after the Closing Date.
(b) Utilization Fees. If at any time the aggregate principal
amount of outstanding Revolving Loans exceeds an amount equal to
thirty-three percent (33%) of the Revolving Committed Amount, the
Borrower shall pay to the Administrative Agent, for the ratable benefit
of the Lenders, a utilization fee (the "Utilization Fees") equal to the
product of (i) the average daily aggregate principal amount of
outstanding Revolving Loans, calculated from the date the aggregate
principal amount of outstanding Revolving Loans exceeds an amount equal
to thirty-three percent (33%) of the Revolving Committed Amount but
excluding the date the aggregate principal amount of outstanding
Revolving Loans falls below an amount equal to thirty-three percent
(33%), times (ii) a per annum percentage equal to the Applicable
Percentage for Utilization Fees. The Utilization Fees shall be payable
in arrears on the last Business Day of each fiscal quarter of the
Borrower (as well as on the Maturity Date and on any date that the
Revolving Committed Amount is reduced) for the fiscal quarter (or
portion thereof) then ending, beginning with the first of such dates to
occur after the Closing Date.
(c) L/C Fees. The Borrower shall pay to the Administrative
Agent for the account of each Lender in accordance with its Pro Rata
Share a fee for each Letter of Credit equal to the Applicable
Percentage for L/C Fees times the daily maximum amount available to be
drawn under such Letter of Credit (the "L/C Fees"). The L/C Fees shall
be computed on a quarterly basis in arrears and shall be due and
payable on the last Business Day of each fiscal quarter of the Borrower
(as well as on the Letter of Credit Expiration Date) for the fiscal
quarter (or portion thereof) then ending, beginning with the first of
such dates to occur after the issuance of such Letter of Credit.
(d) Administrative Fees. The Borrower agrees to pay to the
Administrative Agent, for its own account, an annual fee as agreed to
between the Borrower and the Administrative Agent (the "Administrative
Fees") in the Fee Letter.
3.5 Payment in full at Maturity.
---------------------------
On the Maturity Date, the entire outstanding principal balance of all
Revolving Loans, together with accrued but unpaid interest and all fees and
other sums owing under the Credit Documents, shall be due and payable in full,
unless accelerated sooner pursuant to Section 9.2; provided that if the Maturity
Date is not a Business Day, then such principal, interest, fees and other sums
shall be due and payable in full on the next preceding Business Day.
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3.6 Computations of Interest and Fees.
---------------------------------
(a) Calculation of Interest. Except for Base Rate Loans that
are based upon the Prime Rate, in which case interest shall be computed
on the basis of the actual number of days elapsed over a year of 365 or
366 days, as the case may be, all computations of interest and fees
hereunder shall be made on the basis of the actual number of days
elapsed over a year of 360 days. Interest shall accrue from and
including the first date of Borrowing (or continuation or conversion)
to but excluding the last day occurring in the period for which such
interest is payable.
(b) Usury. It is the intent of the Lenders and the Borrower to
conform to and contract in strict compliance with applicable usury Law
from time to time in effect. All agreements between the Lenders and the
Borrower are hereby limited by the provisions of this subsection which
shall override and control all such agreements, whether now existing or
hereafter arising and whether written or oral. In no way, nor in any
event or contingency (including but not limited to prepayment or
acceleration of the maturity of any Borrower Obligation), shall the
interest taken, reserved, contracted for, charged, or received under
this Credit Agreement, under the Revolving Notes or otherwise, exceed
the maximum nonusurious amount permissible under applicable Law. If,
from any possible construction of any of the Credit Documents or any
other document, interest would otherwise be payable in excess of the
maximum nonusurious amount, any such construction shall be subject to
the provisions of this subsection and such documents shall be
automatically reduced to the maximum nonusurious amount permitted under
applicable Law, without the necessity of execution of any amendment or
new document. If any Lender shall ever receive anything of value which
is characterized as interest on the Revolving Loans under applicable
Law and which would, apart from this provision, be in excess of the
maximum nonusurious amount, an amount equal to the amount which would
have been excessive interest shall, without penalty, be applied to the
reduction of the principal amount owing on the Revolving Loans and not
to the payment of interest, or refunded to the Borrower or the other
payor thereof if and to the extent such amount which would have been
excessive exceeds such unpaid principal amount of the Revolving Loans.
The right to demand payment of the Revolving Loans or any other
Indebtedness evidenced by any of the Credit Documents does not include
the right to accelerate the payment of any interest which has not
otherwise accrued on the date of such demand, and the Lenders do not
intend to charge or receive any unearned interest in the event of such
demand. All interest paid or agreed to be paid to the Lenders with
respect to the Revolving Loans shall, to the extent permitted by
applicable Law, be amortized, prorated, allocated, and spread
throughout the full stated term (including any renewal or extension) of
the Revolving Loans so that the amount of interest on account of the
Revolving Loans does not exceed the maximum nonusurious amount
permitted by applicable Law.
3.7 Pro Rata Treatment.
------------------
Except to the extent otherwise provided herein, each Borrowing, each
payment or prepayment of principal of any Revolving Loan, each L/C Credit
Extension, each payment of interest, each payment of fees (other than
administrative fees paid to the Administrative Agent and fronting, documentary
and processing fees paid to the L/C Issuer), each conversion or continuation of
any Revolving Loans and each reduction in the Revolving Committed Amount, shall
be allocated pro rata among the relevant Lenders in accordance with their Pro
Rata Shares; provided that, if any Lender shall have failed to pay its Pro Rata
Share of any Revolving Loan or fund or purchase its Participation Interest, then
32
any amount to which such Lender would otherwise be entitled pursuant to this
Section 3.7 shall instead be payable to the Administrative Agent until the share
of such Revolving Loan or such Participation Interest not funded or purchased by
such Lender has been repaid. In the event any principal, interest, fee or other
amount paid to any Lender pursuant to this Credit Agreement or any other Credit
Document is rescinded or must otherwise be returned by the Administrative Agent,
(a) such principal, interest, fee or other amount that had been satisfied by
such payment shall be revived, reinstated and continued in full force and effect
as if such payment had not occurred and (b) such Lender shall, upon the request
of the Administrative Agent, repay to the Administrative Agent the amount so
paid to such Lender, with interest for the period commencing on the date such
payment is returned by the Administrative Agent until the date the
Administrative Agent receives such repayment at a rate per annum equal to the
Federal Funds Rate if repaid within two (2) Business Days after such request and
thereafter the Base Rate.
3.8 Sharing of Payments.
-------------------
The Lenders agree among themselves that, except to the extent otherwise
provided herein, in the event that any Lender shall obtain payment in respect of
any Revolving Loan, any L/C Obligations or any other obligation owing to such
Lender under this Credit Agreement through the exercise of a right of setoff,
banker's lien or counterclaim, or pursuant to a secured claim under Section 506
of the Bankruptcy Code or other security or interest arising from, or in lieu
of, such secured claim, received by such Lender under any applicable Debtor
Relief Law or other similar Law or otherwise, or by any other means, in excess
of its Pro Rata Share of such payment as provided for in this Credit Agreement,
such Lender shall promptly pay in cash or purchase from the other Lenders a
participation in such Revolving Loans, L/C Obligations and other obligations in
such amounts, and make such other adjustments from time to time, as shall be
equitable to the end that all Lenders share such payment in accordance with
their Pro Rata Shares. The Lenders further agree among themselves that if
payment to a Lender obtained by such Lender through the exercise of a right of
setoff, banker's lien, counterclaim or other event as aforesaid shall be
rescinded or must otherwise be returned, each Lender which shall have shared the
benefit of such payment shall, by payment in cash or a repurchase of a
participation theretofore sold, return its share of that benefit (together with
its share of any accrued interest payable with respect thereto) to each Lender
whose payment shall have been rescinded or otherwise returned. The Borrower
agrees that (a) any Lender so purchasing such a participation may, to the
fullest extent permitted by Law, exercise all rights of payment, including
setoff, banker's lien or counterclaim, with respect to such participation as
fully as if such Lender were a holder of such Revolving Loan, L/C Obligations or
other obligation in the amount of such participation and (b) the Borrower
Obligations that have been satisfied by a payment that has been rescinded or
otherwise returned shall be revived, reinstated and continued in full force and
effect as if such payment had not occurred. Except as otherwise expressly
provided in this Credit Agreement, if any Lender or the Administrative Agent
shall fail to remit to any other Lender an amount payable by such Lender or the
Administrative Agent to such other Lender pursuant to this Credit Agreement on
the date when such amount is due, such payments shall be made together with
interest thereon for each date from the date such amount is due until the date
such amount is paid to the Administrative Agent or such other Lender at a rate
per annum equal to the Federal Funds Rate. If under any applicable Debtor Relief
Law or other similar Law, any Lender receives a secured claim in lieu of a
setoff to which this Section 3.8 applies, such Lender shall, to the extent
practicable, exercise its rights in respect of such secured claim in a manner
consistent with the rights of the Lenders under this Section 3.8 to share in the
benefits of any recovery on such secured claim.
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3.9 Capital Adequacy.
If any Lender determines that the introduction after the Closing Date
of any Law, rule or regulation or other Requirement of Law regarding capital
adequacy or any change therein or in the interpretation thereof, or compliance
by such Lender (or its Lending Office) therewith, has or would have the effect
of reducing the rate of return on the capital or assets of such Lender or any
corporation controlling such Lender as a consequence of such Lender's
obligations hereunder (taking into consideration its policies with respect to
capital adequacy and such Lender's desired return on capital), then from time to
time upon demand of such Lender (with a copy of such demand to the
Administrative Agent), the Borrower shall pay to such Lender such additional
amounts as will compensate such Lender for such reduction.
3.10 Eurodollar Provisions.
If the Administrative Agent determines (which determination
shall be conclusive and binding upon the Borrower) in connection with
any request for a Eurodollar Loan or a conversion to or continuation
thereof that (i) deposits in Dollars are not being offered to banks in
the applicable offshore interbank market for the applicable amount and
Interest Period of such Eurodollar Loan, (ii) adequate and reasonable
means do not exist for determining the Eurodollar Rate for such
Eurodollar Loan, or (iii) the Eurodollar Rate for such Eurodollar Loan
in such does not adequately and fairly reflect the cost to the Lenders
of funding such Eurodollar Loan, the Administrative Agent will promptly
notify the Borrower and the Lenders. Thereafter, the obligation of the
Lenders to make or maintain Eurodollar Loans shall be suspended until
the Administrative Agent revokes such notice. Upon receipt of such
notice, the Borrower may revoke any pending Notice of Borrowing or
Notice of Continuation/Conversion with respect to Eurodollar Loans or,
failing that, will be deemed to have converted such request into a
request for a Borrowing of or, to the extent permitted hereunder,
conversion into a Base Rate Loan in the amount specified therein.
3.11 Illegality.
If any Lender determines that any Requirement of Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund
Eurodollar Loans, or materially restricts the authority of such Lender to
purchase or sell, or to take deposits of Dollars in the London interbank market,
or to determine or charge interest rates based upon the Eurodollar Rate, then,
on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue Eurodollar Loans or to
convert Base Rate Loans to Eurodollar Loans shall be suspended until such Lender
notifies the Administrative Agent and the Borrower that the circumstances giving
rise to such determination no longer exist. Upon receipt of such notice, the
Borrower shall, upon demand to the Borrower from such Lender (with a copy to the
Administrative Agent), prepay or, if applicable, convert all Eurodollar Loans of
such Lender to Base Rate Loans, either on the last day of the Interest Period
34
thereof, if such Lender may lawfully continue to maintain such Eurodollar Loans
to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurodollar Loans. Upon any such prepayment or conversion, the
Borrower shall also pay interest on the amount so prepaid or converted, together
with any amounts due with respect thereto pursuant to Section 3.14.
3.12 Requirements of Law; Reserves on Eurodollar Loans.
-------------------------------------------------
(a) Changes in Law. If any Lender determines that as a result
of the introduction of or any change in, or in the interpretation of,
any Requirement of Law, or such Lender's compliance therewith, there
shall be any increase in the cost to such Lender of agreeing to make or
making, funding or maintaining Eurodollar Loans, or a reduction in the
amount received or receivable by such Lender in connection with any of
the foregoing (excluding for purposes of this Section 3.12 any such
increased costs or reduction in amount resulting from (i) Taxes or
Other Taxes (as to which Section 3.13 shall govern) and (ii) reserve
requirements contemplated by subsection (b) below), then from time to
time, upon demand of such Lender (through the Administrative Agent),
the Borrower shall pay to such Lender such additional amounts as will
compensate such Lender for such increased cost or reduction in yield.
(b) Reserves. The Borrower shall pay to each Lender (to the
extent such Lender has not otherwise been compensated therefor
hereunder), as long as such Lender shall be required to maintain
reserves with respect to liabilities or assets consisting of or
including Eurodollar funds or deposits (currently known as "Eurodollar
liabilities"), additional interest on the unpaid principal amount of
each Eurodollar Loan equal to the actual costs of such reserves
allocated to such Loan by such Lender (as determined by such Lender in
good faith, which determination shall be conclusive absent demonstrable
error), which shall be due and payable on each date on which interest
is payable on such Loan; provided that the Borrower shall have received
at least 15 days' prior notice (with a copy to the Administrative
Agent) of such additional interest from such Lender. If a Lender fails
to give notice 15 days prior to the relevant Interest Payment Date,
such additional interest shall be due and payable 15 days from receipt
of such notice.
3.13 Taxes.
-----
(a) Payment of Taxes. Any and all payments by the Borrower to
or for the account of the Administrative Agent or any Lender under any
Credit Document shall be made free and clear of and without deduction
for any and all present or future income, stamp or other taxes, duties,
levies, imposts, deductions, assessments, fees, withholdings or similar
charges, and all liabilities with respect thereto, but excluding, in
the case of the Administrative Agent and each Lender, taxes imposed on
or measured by its net income, and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the Laws of which the Administrative Agent
or such Lender, as the case may be, is organized or maintains its
Lending Office (all such non-excluded present or future income, stamp
or other taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and liabilities being hereinafter
referred to as "Taxes"). If the Borrower shall be required by any
35
Requirement of Law to deduct any Taxes from or in respect of any sum
payable under any Credit Document to the Administrative Agent or any
Lender, (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable
to additional sums payable under this Section 3.13(a)), the
Administrative Agent or such Lender, as the case may be, receives an
amount equal to the sum it would have received had no such deductions
been made, (ii) the Borrower shall make such deductions, (iii) the
Borrower shall pay the full amount deducted to the relevant taxation
authority or other Governmental Authority in accordance with applicable
Requirements of Law, and (iv) within 30 days after the date of such
payment, the Borrower shall furnish to the Administrative Agent (which
shall forward the same to such Lender, if applicable) the original or a
certified copy of a receipt evidencing payment thereof, to the extent
such receipt is issued therefor, or other written proof of payment
thereof that is reasonably satisfactory to the Administrative Agent.
(b) Additional Taxes. In addition, the Borrower agrees to pay
any and all present or future stamp, court or documentary taxes and any
other excise or property taxes or charges or similar levies which arise
from any payment made under any Credit Document or from the execution,
delivery, performance, enforcement or registration of, or otherwise
with respect to, any Credit Document (hereinafter referred to as "Other
Taxes").
(c) No Deduction for Taxes. If the Borrower shall be required
to deduct or pay any Taxes or Other Taxes from or in respect of any sum
payable under any Credit Document to the Administrative Agent or any
Lender, the Borrower shall also pay to the Administrative Agent (for
the account of such Lender) or to such Lender, at the time interest is
paid, such additional amount that such Lender specifies as necessary to
preserve the after-tax yield (after factoring in all taxes, including
taxes imposed on or measured by net income) such Lender would have
received if such Taxes or Other Taxes had not been imposed.
(d) Indemnification. The Borrower agrees to indemnify the
Administrative Agent and each Lender for (i) the full amount of Taxes
and Other Taxes (including any Taxes or Other Taxes imposed or asserted
by any jurisdiction on amounts payable under this Section 3.13(d)) paid
by the Administrative Agent and such Lender, and (ii) any liability
(including penalties, interest and expenses) arising therefrom or with
respect thereto.
(e) Exemption from Taxes. In the case of any payment hereunder
or under any other Credit Document by or on behalf of the Borrower
through an account or branch outside the United States, or on behalf of
the Borrower by a payor that is not a United States person, if the
Borrower determines that no taxes are payable in respect thereof, the
Borrower shall furnish, or shall cause such payor to furnish, to the
Administrative Agent, an opinion of counsel reasonably acceptable to
the Administrative Agent stating that such payment is exempt from
Taxes. For purposes of this subsection (e), the terms "United States"
and "United States person" shall have the meanings specified in Section
7701 of the Code.
(f) Foreign Lenders. Each Lender that is a foreign
corporation, foreign partnership or foreign trust within the meaning of
the Code (a "Foreign Lender") shall deliver to the Administrative
Agent, prior to receipt of any payment subject to withholding under the
Code, two duly signed completed copies of either IRS Form W-8BEN or any
36
successor thereto (relating to such Lender and entitling it to an
exemption from, or reduction of, withholding tax on all payments to be
made to such Lender by the Borrower pursuant to this Credit Agreement),
as appropriate, or IRS Form W-8ECI or any successor thereto (relating
to all payments to be made to such Lender by the Borrower pursuant to
this Credit Agreement) or such other evidence satisfactory to the
Borrower and the Administrative Agent that such Lender is entitled to
an exemption from, or reduction of, United States withholding tax.
Thereafter and from time to time, each such Lender shall (i) promptly
submit to the Administrative Agent such additional duly completed and
signed copies of one of such forms (or such successor forms as shall be
adopted from time to time by the relevant United States taxing
authorities), as appropriate, as may reasonably be requested by the
Borrower or the Administrative Agent and then be available under then
current United States Laws and regulations to avoid, or such evidence
as is satisfactory to the Borrower and the Administrative Agent of any
available exemption from or reduction of, United States withholding
taxes in respect of all payments to be made to such Lender by the
Borrower pursuant to this Credit Agreement, (ii) promptly notify the
Administrative Agent of any change in circumstances which would modify
or render invalid any claimed exemption or reduction, and (iii) take
such steps as shall not be materially disadvantageous to it, in the
reasonable judgment of such Lender, and as may be reasonably necessary
(including the re-designation of its Lending Office) to avoid any
Requirement of Law that the Borrower make any deduction or withholding
for taxes from amounts payable to such Lender. If the forms or other
evidence provided by such Lender at the time such Lender first becomes
a party to this Credit Agreement indicate a United States interest
withholding tax rate in excess of zero, withholding tax at such rate
shall be considered excluded from Taxes unless and until such Lender
provides the appropriate forms certifying that a lesser rate applies,
whereupon withholding tax at such lesser rate only shall be considered
excluded from Taxes for periods governed by such forms; provided,
however, that, if at the date of any assignment pursuant to which a
Lender becomes a party to this Credit Agreement, the assignor Lender
was entitled to payments under Section 3.13(a) in respect of United
States withholding tax with respect to interest paid at such date,
then, to such extent, the term Taxes shall include (in addition to
withholding taxes that may be imposed in the future or other amounts
otherwise includable in Taxes) United States withholding tax, if any,
applicable with respect to the assignee Lender on such date. If such
Lender fails to deliver the above forms or other evidence, then the
Administrative Agent may withhold from any interest payment to such
Lender an amount equal to the applicable withholding tax imposed by
Sections 1441 and 1442 of the Code, without reduction. If any
Governmental Authority asserts that the Administrative Agent did not
properly withhold any tax or other amount from payments made in respect
of such Lender, such Lender shall indemnify the Administrative Agent
therefor, including all penalties and interest, any taxes imposed by
any jurisdiction on the amounts payable to the Administrative Agent
under this Section 3.13(f), and costs and expenses (including the
reasonable fees and expenses of legal counsel) of the Administrative
Agent. For any period with respect to which a Lender has failed to
provide the Borrower with the above forms or other evidence (other than
if such failure is due to a change in the applicable Law, or in the
interpretation or application thereof, occurring after the date on
which such form or other evidence originally was required to be
provided or if such form or other evidence otherwise is not required),
such Lender shall not be entitled to indemnification under subsection
(a) or (c) of this Section 3.13 with respect to Taxes imposed by the
United States by reason of such failure; provided, however, that should
37
a Lender become subject to Taxes because of its failure to deliver such
form or other evidence required hereunder, the Borrower shall take such
steps as such Lender shall reasonably request to assist such Lender in
recovering such Taxes. The obligation of the Lenders under this Section
3.13(f) shall survive the payment of all Borrower Obligations and the
resignation or replacement of the Administrative Agent.
(g) Reimbursement. In the event that an additional payment is
made under Section 3.13(a) or (c) for the account of any Lender and
such Lender, in its reasonable judgment, determines that it has finally
and irrevocably received or been granted a credit against or release or
remission for, or repayment of, any tax paid or payable by it in
respect of or calculated with reference to the deduction or withholding
giving rise to such payment, such Lender shall, to the extent that it
determines that it can do so without prejudice to the retention of the
amount of such credit, relief, remission or repayment, pay to the
Borrower such amount as such Lender shall, in its reasonable judgment,
have determined to be attributable to such deduction or withholding and
which will leave such Lender (after such payment) in no worse position
than it would have been in if the Borrower had not been required to
make such deduction or withholding. Nothing herein contained shall
interfere with the right of a Lender to arrange its tax affairs in
whatever manner it thinks fit nor oblige any Lender to claim any tax
credit or to disclose any information relating to its tax affairs or
any computations in respect thereof or require any Lender to do
anything that would prejudice its ability to benefit from any other
credits, reliefs, remissions or repayments to which it may be entitled.
3.14 Compensation.
------------
Upon the written demand of any Lender, the Borrower shall promptly
compensate such Lender for and hold such Lender harmless from any loss, cost or
expense incurred by it as a result of:
(a) any continuation, conversion, payment or prepayment of any
Eurodollar Loan on a day other than the last day of the Interest Period
for such Eurodollar Loan (whether voluntary, mandatory, automatic, by
reason of acceleration, or otherwise); or
(b) any failure by a Borrower (for a reason other than the
failure of such Lender to make a Eurodollar Loan) to prepay, borrow,
continue or convert any Eurodollar Loan on the date or in the amount
previously requested by such Borrower.
The amount each such Lender shall be compensated pursuant to this Section 3.14
shall include, without limitation, (i) any loss incurred by such Lender in
connection with the re-employment of funds prepaid, repaid, not borrowed or
paid, as the case may be and (ii) any reasonable out-of-pocket expenses
(including the reasonable fees and expenses of legal counsel) incurred and
reasonably attributable thereto.
For purposes of calculating amounts payable by the Borrower to the
Lenders under this Section 3.14, each Lender shall be deemed to have funded each
Eurodollar Loan made by it at the Eurodollar Rate for such Loan by a matching
deposit or other borrowing in the London interbank market for a comparable
amount and for a comparable period, whether or not such Eurodollar Loan was in
fact so funded.
38
3.15 Determination and Survival of Provisions.
----------------------------------------
All determinations by the Administrative Agent or a Lender of amounts
owing under Sections 3.9 through 3.14, inclusive, shall, absent manifest error,
be conclusive and binding on the parties hereto and all amounts owing thereunder
shall be due and payable within ten Business Days of demand therefor. In
determining such amount, the Administrative Agent or such Lender may use any
reasonable averaging and attribution methods. Section 3.9 through 3.14,
inclusive, shall survive the termination of this Credit Agreement and the
payment of all Borrower Obligations.
SECTION 4
CONDITIONS PRECEDENT TO CLOSING
4.1 Closing Conditions.
------------------
The obligation of the Lenders to enter into this Credit Agreement and
make the initial Revolving Loans is subject to satisfaction of the following
conditions:
(a) Executed Credit Documents. Receipt by the Administrative
Agent of duly executed copies of: (i) this Credit Agreement, (ii) the
Revolving Notes, and (iii) all other Credit Documents, each in form and
substance reasonably acceptable to the Lenders in their sole
discretion.
(b) Authority Documents. Receipt by the Administrative Agent
of the following:
(i) Organizational Documents. Copies of the articles
of incorporation of the Borrower certified to be true and
complete as of a recent date by the appropriate Governmental
Authority of the state or other jurisdiction of its formation
and copies of the bylaws of the Borrower certified by a
secretary or assistant secretary (or the equivalent) of the
Borrower to be true and correct as of the Closing Date.
(ii) Resolutions. Copies of resolutions of the board
of directors of the Borrower approving and adopting this
Credit Agreement and the other Credit Documents to which it is
a party, the transactions contemplated herein and therein and
authorizing execution and delivery hereof and thereof,
certified by a secretary or assistant secretary (or the
equivalent) of the Borrower to be true and correct and in full
force and effect as of the Closing Date.
(iii) Good Standing. Copies of certificates of good
standing, existence or its equivalent with respect to the
Borrower certified as of a recent date by the appropriate
Governmental Authority of the state or other jurisdiction of
its formation.
39
(iv) Incumbency. An incumbency certificate of the
Borrower certified by a secretary or assistant secretary (or
the equivalent) of the Borrower to be true and correct as of
the Closing Date.
(c) Opinions of Counsel. Receipt by the Administrative Agent
of opinions of counsel from outside counsel to the Borrower, in form
and substance acceptable to the Administrative Agent, addressed to the
Administrative Agent and the Lenders and dated as of the Closing Date.
(d) Financial Statements. Receipt by the Administrative Agent
of a copy of (i) the annual consolidated financial statements
(including balance sheets, income statements and cash flow statements)
of the Borrower and its Subsidiaries for fiscal years 2000 and 2001,
audited by independent public accountants of recognized national
standing, (ii) the consolidated balance sheet and income statement of
the Borrower and its Subsidiaries for the fiscal quarter ended
September 30, 2002, together with the related consolidated statement of
income for such fiscal quarter and a year to date statement of cash
flows and (iii) such other financial information regarding the Borrower
as the Administrative Agent may reasonably request.
(e) Due Diligence. The Administrative Agent and the Lenders
shall have completed all due diligence with respect to the Borrower and
its Subsidiaries and the transactions contemplated by this Credit
Agreement and the other Credit Documents, in scope and determination
reasonably satisfactory to the Administrative Agent and the Lenders.
(f) Material Adverse Effect. Since December 31, 2001, there
shall have been no development or event relating to or affecting the
Borrower or any of its Subsidiaries that has had or could be reasonably
expected to have a Material Adverse Effect and no Material Adverse
Change in the facts and information regarding the Borrower and its
Subsidiaries as represented to date.
(g) Absence of Market Disruption. There shall not have
occurred a material adverse change in or material disruption of
conditions in the financial, banking or capital markets which the
Administrative Agent and the Arranger, in their sole discretion, deem
material in connection with the syndication of the Credit Agreement.
(h) Litigation. There shall not exist any material order,
decree, judgment, ruling or injunction or any material pending or
threatened action, suit, investigation or proceeding against the
Borrower or any of its Subsidiaries.
(i) Consents. All necessary governmental, shareholder and
third party consents and approvals, if any, with respect to this Credit
Agreement and the Credit Documents and the transactions contemplated
herein and therein have been received and no condition or Requirement
of Law exists which would reasonably be likely to restrain, prevent or
impose any material adverse conditions on the transactions contemplated
hereby and by the other Credit Documents.
40
(j) Officer's Certificates. Receipt by the Administrative
Agent of a certificate or certificates executed by an Authorized
Officer of the Borrower as of the Closing Date stating that (i) the
Borrower and each of its Subsidiaries are in compliance in all material
respects with all existing material financial obligations and all
material Requirements of Law, (ii) there does not exist any material
order, decree, judgment, ruling or injunction or any material pending
or threatened action, suit, investigation or proceeding against the
Borrower or any of its Subsidiaries, (iii) the financial statements and
information delivered to the Administrative Agent on or before the
Closing Date were prepared in good faith and in accordance with GAAP
and (iv) immediately after giving effect to this Credit Agreement, the
other Credit Documents and all the transactions contemplated herein or
therein to occur on such date, (A) the Borrower is Solvent, (B) no
Default or Event of Default exists, (C) all representations and
warranties contained herein and in the other Credit Documents are true
and correct in all material respects, (D) since December 31, 2001,
there has been no development or event relating to or affecting the
Borrower or any of its Subsidiaries that has had or could be reasonably
expected to have a Material Adverse Effect and there exists no event,
condition or state of facts that could result in or reasonably be
expected to result in a Material Adverse Change and (E) the Borrower is
in compliance with each of the financial covenants set forth in Section
7.2, as of September 30, 2002, as demonstrated in Covenant Compliance
Worksheets attached to such certificate.
(k) Existing Credit Agreement. Receipt by the Administrative
Agent of evidence that all amounts outstanding under the Existing
Credit Agreement have been paid in full and the commitments thereunder
terminated or that such payments will be made and commitments
terminated simultaneously with the execution and delivery of the Credit
Documents.
(l) Fees and Expenses. Unless waived by the Person entitled
thereto, payment by the Borrower of all fees and expenses owed by them
to the Administrative Agent, the Arranger and the Lenders on or before
the Closing Date, including, without limitation, as set forth in the
Fee Letter.
(m) Other. Receipt by the Lenders of such other documents,
instruments, agreements or information as reasonably requested by any
Lender.
SECTION 5
CONDITIONS TO ALL EXTENSIONS OF CREDIT
5.1 Funding Requirements.
--------------------
In addition to the conditions precedent stated elsewhere herein, the
Lenders shall not be obligated to make Revolving Loans and the L/C Issuer shall
not be obligated to issue Letters of Credit unless:
(a) Notice. The Borrower shall have delivered (i) in the case
of any new Revolving Loan, a Notice of Borrowing, duly executed and
completed, by the time specified in Section 2.1 and (ii) in the case of
any Letter of Credit, a Letter of Credit Application, duly executed and
completed, by the time specified in Section 2.2.
41
(b) Representations and Warranties. The representations and
warranties made by the Borrower in any Credit Document are true and
correct in all material respects at and as if made as of such date
except to the extent they expressly and exclusively relate to an
earlier date.
(c) No Default. No Default or Event of Default shall exist and
be continuing either prior to or after giving effect to such Credit
Extension.
(d) Availability. Immediately after giving effect to such
Credit Extension (and the application of the proceeds thereof), (i) the
aggregate principal amount of outstanding Revolving Loans plus the
aggregate principal amount of outstanding L/C Obligations shall not
exceed the Revolving Committed Amount, (ii) with respect to each
individual Lender, the sum of outstanding principal amount of Revolving
Loans of such Lender and outstanding principal amount of L/C
Obligations of such Lender shall not exceed such Lender's Pro Rata
Share of the Revolving Committed Amount and (iii) the aggregate amount
of L/C Obligations shall not exceed the Letter of Credit Sublimit.
The delivery of each Notice of Borrowing or a Letter of Credit Application shall
constitute a representation and warranty by the Borrower of the correctness of
the matters specified in subsections (b), (c) and (d) above.
SECTION 6
REPRESENTATIONS AND WARRANTIES
To induce the Administrative Agent and the Lenders to enter into this
Credit Agreement and to induce the Lenders to extend the credit contemplated
hereby, the Borrower represents and warrants to the Administrative Agent and the
Lenders as follows:
6.1 Organization and Good Standing.
------------------------------
Each of the Borrower and its Subsidiaries (a) is a corporation, duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) is duly qualified and in good standing as
a foreign entity authorized to do business in every other jurisdiction where the
failure to so qualify would have a Material Adverse Effect and (c) has the
requisite power and authority to own its properties and to carry on its business
as now conducted and as proposed to be conducted.
6.2 Due Authorization.
-----------------
The Borrower (a) has the requisite power and authority to execute,
deliver and perform this Credit Agreement and the other Credit Documents and to
incur the obligations herein and therein provided for and (b) has been
authorized by all necessary action to execute, deliver and perform this Credit
Agreement and the other Credit Documents.
42
6.3 No Conflicts.
------------
Neither the execution and delivery of this Credit Agreement and the
other Credit Documents, nor the consummation of the transactions contemplated
herein and therein, nor performance of and compliance with the terms and
provisions hereof and thereof by the Borrower will (a) violate or conflict with
any provision of its organizational documents, (b) violate, contravene or
conflict with any law (including without limitation, the Public Utility Holding
Company Act of 1935, as amended), regulation (including without limitation,
Regulation U and Regulation X), order, writ, judgment, injunction, decree or
permit applicable to it, (c) violate, contravene or conflict with contractual
provisions of, or cause an event of default under, any indenture, loan
agreement, mortgage, deed of trust, contract or other agreement or instrument to
which it is a party or by which it may be bound, the violation of which would
have or would be reasonably expected to have a Material Adverse Effect or (d)
result in or require the creation of any Lien upon or with respect to its
properties.
6.4 Consents.
--------
Other than the filing of annual short-term financing plans with the New
Mexico Public Regulation Commission in the normal course of business, no
consent, approval, authorization or order of, or filing, registration or
qualification with, any court or Governmental Authority or third party is
required in connection with the execution, delivery or performance of this
Credit Agreement or any of the other Credit Documents that has not been obtained
or completed.
6.5 Enforceable Obligations.
-----------------------
This Credit Agreement and the other Credit Documents have been duly
executed and delivered and constitute the legal, valid and binding obligations
of the Borrower enforceable against the Borrower in accordance with their
respective terms, except as may be limited by Debtor Relief Laws or similar laws
affecting creditors' rights generally or by general equitable principles.
6.6 Financial Condition.
-------------------
The financial statements delivered to the Lender pursuant to Section
4.1(d) and pursuant to Sections 7.1(a) and (b): (i) have been prepared in
accordance with GAAP except that the quarterly financial statements are subject
to year-end adjustments and have fewer footnotes than annual statements and (ii)
present fairly the financial condition, results of operations and cash flows of
the Borrower and its Subsidiaries as of such date and for such periods. No
opinion provided with respect to the Borrower's financial statements pursuant to
Section 7.1 (or as to any prior annual financial statements) has been withdrawn.
6.7 No Material Change.
------------------
(a) Since December 31, 2001, there has been no development or
event relating to or affecting the Borrower which would have or would
reasonably be expected to have a Material Adverse Effect.
43
(b) Since December 31, 2001, there has been no sale, transfer
or other disposition by the Borrower of any material part of its
business or property, and no purchase or other acquisition by the
Borrower of any business or property (including the Capital Stock of
any other Person) material in relation to the financial condition of
the Borrower, in each case which is not (i) reflected in the most
recent financial statements delivered to the Lender pursuant to Section
4.1(d) or 7.1 or in the notes thereto or (ii) otherwise permitted by
the terms of this Credit Agreement and communicated to the Lender.
6.8 No Default.
----------
Neither the Borrower nor any of its Subsidiaries is in default in any
respect under any contract, lease, loan agreement, indenture, mortgage, security
agreement or other agreement or obligation to which it is a party or by which
any of its properties is bound which default would have or would reasonably be
expected to have a Material Adverse Effect. No Default or Event of Default
presently exists and is continuing.
6.9 Litigation.
----------
There are no actions, suits, investigations or legal, equitable,
arbitration or administrative proceedings, pending or, to the knowledge of the
Borrower, threatened against the Borrower or any of its Subsidiaries which would
have or would reasonably be expected to have a Material Adverse Effect.
6.10 Taxes.
-----
Each of the Borrower and its Subsidiaries has filed, or caused to be
filed, all material tax returns (federal, state, local and foreign) required to
be filed and paid all amounts of taxes shown thereon to be due (including
interest and penalties) and has paid all other taxes, fees, assessments and
other governmental charges (including mortgage recording taxes, documentary
stamp taxes and intangibles taxes) owing by it, except for such taxes which are
not yet delinquent or that are being contested in good faith and by proper
proceedings, and against which adequate reserves are being maintained in
accordance with GAAP.
6.11 Compliance with Law.
-------------------
Each of the Borrower and its Subsidiaries is in compliance with all
laws, rules, regulations, orders and decrees applicable to it or to its
properties, unless such failure to comply would not have or would not reasonably
be expected to have a Material Adverse Effect.
6.12 ERISA.
-----
Except as would not result or reasonably be expected to result in a
Material Adverse Effect:
(a) During the five-year period prior to the date on which
this representation is made or deemed made: (i) no ERISA Event has
occurred, and, to the best knowledge of the Borrower, no event or
condition has occurred or exists as a result of which any ERISA Event
would be reasonably expected to occur, with respect to any Plan; (ii)
no "accumulated funding deficiency," as such term is defined in Section
44
302 of ERISA and Section 412 of the Code, whether or not waived, has
occurred with respect to any Plan; (iii) each Plan has been maintained,
operated, and funded in compliance with its own terms and in material
compliance with the provisions of ERISA, the Code, and any other
applicable federal or state laws; and (iv) no Lien in favor or the PBGC
or a Plan has arisen or is reasonably likely to arise on account of any
Plan.
(b) The actuarial present value of all "benefit liabilities"
under each Single Employer Plan (determined within the meaning of
Section 401(a)(2) of the Code, utilizing the actuarial assumptions used
to fund such Plans), whether or not vested, did not, as of the last
annual valuation date prior to the date on which this representation is
made or deemed made, exceed the current value of the assets of such
Plan allocable to such accrued liabilities, except as disclosed in the
Borrower's financial statements.
(c) Neither the Borrower nor any ERISA Affiliate has incurred,
or, to the best knowledge of the Borrower, is reasonably expected to
incur, any withdrawal liability under ERISA to any Multiemployer Plan
or Multiple Employer Plan. Neither the Borrower nor any ERISA Affiliate
has received any notification that any Multiemployer Plan is in
reorganization (within the meaning of Section 4241 of ERISA), is
insolvent (within the meaning of Section 4245 of ERISA), or has been
terminated (within the meaning of Title IV of ERISA), and no
Multiemployer Plan is, to the best knowledge of the Borrower,
reasonably expected to be in reorganization, insolvent, or terminated.
(d) No prohibited transaction (within the meaning of Section
406 of ERISA or Section 4975 of the Code) or breach of fiduciary
responsibility has occurred with respect to a Plan which has subjected
or would be reasonably likely to subject the Borrower or any ERISA
Affiliate to any liability under Sections 406, 409, 502(i), or 502(l)
of ERISA or Section 4975 of the Code, or under any agreement or other
instrument pursuant to which the Borrower or any ERISA Affiliate has
agreed or is required to indemnify any person against any such
liability.
(e) The present value (determined using actuarial and other
assumptions which are reasonable with respect to the benefits provided
and the employees participating) of the liability of the Borrower and
each ERISA Affiliate for post-retirement welfare benefits to be
provided to their current and former employees under Plans which are
welfare benefit plans (as defined in Section 3(1) of ERISA), net of all
assets under all such Plans allocable to such benefits, are reflected
on the financial statements referenced in Section 7.1 in accordance
with FASB 106.
(f) Each Plan which is a welfare plan (as defined in Section
3(1) of ERISA) to which Sections 601-609 of ERISA and Section 4980B of
the Code apply has been administered in compliance in all material
respects with such sections.
6.13 Use of Proceeds; Margin Stock.
-----------------------------
The proceeds of the Credit Extensions hereunder will be used solely for
the purposes specified in Section 7.9. None of such proceeds will be used for
the purpose of (a) (i) purchasing or carrying any Margin Stock or (ii) reducing
45
or retiring any Indebtedness which was originally incurred to purchase or carry
Margin Stock, or (iii) for any other purpose that might constitute this
transaction a "purpose credit" within the meaning of Regulation U or (b) for the
acquisition of another Person unless the board of directors (or other comparable
governing body) or stockholders, as appropriate, of such Person has approved
such acquisition.
6.14 Government Regulation.
---------------------
(a) The Borrower is not a "holding company" within the meaning
of the Public Utility Holding Company Act of 1935, as amended
("PUHCA"). The issuance of the Note by the Borrower and the Credit
Extensions contemplated by this Credit Agreement are not subject to
regulation under PUHCA or subject to regulation by the Securities and
Exchange Commission
(b) The Borrower is not an "investment company" registered or
required to be registered under the Investment Company Act of 1940, as
amended, or controlled by such a company.
6.15 Solvency.
--------
The Borrower is and, after the consummation of the transactions
contemplated by this Credit Agreement, will be Solvent.
6.16 Disclosure.
----------
Neither this Credit Agreement nor any financial statements delivered to
the Lender nor any other document, certificate or statement furnished to the
Lender by or on behalf of the Borrower in connection with the transactions
contemplated hereby contains any untrue statement of a material fact or omits to
state a material fact necessary in order to make the statements contained
therein or herein, taken as a whole, not misleading.
6.17 Environmental Matters.
---------------------
Except as would not result or reasonably be expected to result in a
Material Adverse Effect: (a) each of the properties of the Borrower and its
Subsidiaries (the "Properties") and all operations at the Properties are in
substantial compliance with all applicable Environmental Laws, (b) there is no
undocumented or unreported violation of any Environmental Law with respect to
the Properties or the businesses operated by the Borrower and its Subsidiaries
(the "Businesses") that the Borrower is aware of, and (c) there are no
conditions relating to the Businesses or Properties that have given rise to or
would reasonably be expected to give rise to a liability under any applicable
Environmental Laws.
6.18 Material Leases.
---------------
Set forth on Schedule 6.18 hereto is a complete and accurate list of
the Material Leases on the date hereof, showing the expiration date and annual
rental cost thereof. The Borrower is entitled to exercise all of the rights of
lessee purported to be granted to the Borrower under each such Material Lease.
46
6.19 Material Lease Interest Payments and Discount Rate.
--------------------------------------------------
Schedule 6.19 hereto, as most recently provided to the Administrative
Agent, sets forth the same (a) amounts with respect to the interest portion of
payments under the Material Leases and (b) discount rate used to calculate the
net present value of all amounts payable under the Material Leases as have been
most recently provided (or that the Borrower intends to provide shortly) to
Xxxxx'x and S&P or as have otherwise been agreed to by the Required Lenders.
SECTION 7
AFFIRMATIVE COVENANTS
---------------------
The Borrower covenants and agrees that, until the termination of the
Commitments, the termination or expiration of all Letters of Credit and the
payment in full of all Borrower Obligations:
7.1 Information Covenants.
---------------------
The Borrower will furnish, or cause to be furnished, to the Lenders:
(a) Annual Financial Statements. As soon as available, and in
any event within 120 days after the close of each fiscal year of the
Borrower, a consolidated balance sheet and income statement of the
Borrower and its Subsidiaries, as of the end of such fiscal year,
together with the related consolidated statements of income and of cash
flows for such fiscal year, setting forth in comparative form figures
for the preceding fiscal year, all such financial information described
above to be in reasonable form and detail and, in each case, audited by
independent certified public accountants of recognized national
standing reasonably acceptable to the Lender and whose opinion shall be
furnished to the Lender, and shall be to the effect that such financial
statements have been prepared in accordance with GAAP (except for
changes with which such accountants concur) and shall not be limited as
to the scope of the audit or qualified in any respect.
(b) Quarterly Financial Statements. As soon as available, and
in any event within 60 days after the close of each fiscal quarter of
the Borrower (other than the fourth fiscal quarter), a consolidated
balance sheet and income statement of the Borrower and its Subsidiaries
as of the end of such fiscal quarter, together with the related
consolidated statement of income for such fiscal quarter and a year to
date statement of cash flows, in each case setting forth in comparative
form figures for the corresponding period of the preceding fiscal year,
all such financial information described above to be in reasonable form
and detail and reasonably acceptable to the Lender, and, in each case,
accompanied by a certificate of a Financial Officer of the Borrower to
the effect that such quarterly financial statements fairly present in
all material respects the financial condition of such Person and have
been prepared in accordance with GAAP, subject to changes resulting
from audit and normal year-end audit adjustments and except that the
quarterly financial statements have fewer footnotes than annual
statements.
47
(c) Officer's Certificate. At the time of delivery of the
financial statements provided for in Sections 7.1(a) and 7.1(b) above,
a certificate of a Financial Officer substantially in the form of
Exhibit 7.1(c): (i) setting forth calculations demonstrating compliance
by the Borrower with the financial covenants set forth in Section 7.2
as of the end of such fiscal period and (ii) stating that no Default or
Event of Default exists, or if any Default or Event of Default does
exist, specifying the nature and extent thereof and what action the
Borrower proposes to take with respect thereto.
(d) Reports. Notice of the filing by the Borrower of any Form
10-Q, Form 10-K or Form 8-K with the SEC promptly upon the filing
thereof and copies of all financial statements, proxy statements,
notices and reports as the Borrower shall send to its shareholders
concurrently with the mailing of any such statements, notices or
reports to its shareholders.
(e) Notices. Upon the Borrower obtaining knowledge thereof,
the Borrower will give written notice to the Lender within ten days of
(i) the occurrence of a Default or Event of Default, specifying the
nature and extent thereof and what action the Borrower proposes to take
with respect thereto and (ii) the occurrence of any of the following
with respect to the Borrower or any of its Subsidiaries (A) the
pendency or commencement of any litigation, arbitration or governmental
proceeding against the Borrower or any of its Subsidiaries which, if
adversely determined, would have or would reasonably be expected to
have a Material Adverse Effect, (B) one or more judgments, orders, or
decrees shall be entered against the Borrower or any of its
Subsidiaries involving a liability of $5,000,000 or more, in the
aggregate or (C) the institution of any proceedings against the
Borrower or any of its Subsidiaries with respect to, or the receipt of
notice by such Person of potential liability or responsibility for
violation or alleged violation of, any federal, state or local law,
rule or regulation (including, without limitation, any Environmental
Law), the violation of which would have or would reasonably be expected
to have a Material Adverse Effect.
(f) ERISA. Upon the Borrower or any ERISA Affiliate obtaining
knowledge thereof, the Borrower will give written notice to the Lender
promptly (and in any event within ten days) of any of the following
which would result in or reasonably would be expected to result in a
Material Adverse Effect: (i) any event or condition, including, but not
limited to, any Reportable Event, that constitutes, or would be
reasonably expected to lead to, an ERISA Event; (ii) with respect to
any Multiemployer Plan, the receipt of notice as prescribed in ERISA or
otherwise of any withdrawal liability assessed against the Borrower or
any of its ERISA Affiliates, or of a determination that any
Multiemployer Plan is in reorganization or insolvent (both within the
meaning of Title IV of ERISA); (iii) the failure to make full payment
on or before the due date (including extensions) thereof of all amounts
which the Borrower or any of its Subsidiaries or ERISA Affiliates is
required to contribute to each Plan pursuant to its terms and as
required to meet the minimum funding standard set forth in ERISA and
the Code with respect thereto; or (iv) a change in the funding status
of any Plan, in each case together with a description of any such event
or condition or a copy of any such notice and a statement by an officer
of the Borrower briefly setting forth the details regarding such event,
48
condition, or notice, and the action, if any, which has been or is
being taken or is proposed to be taken with respect thereto. Promptly
upon request, the Borrower shall furnish the Lender with such
additional information concerning any Plan as may be reasonably
requested, including, but not limited to, copies of each annual
report/return (Form 5500 series), as well as all schedules and
attachments thereto required to be filed with the Department of Labor
and/or the Internal Revenue Service pursuant to ERISA and the Code,
respectively, for each "plan year" (within the meaning of Section 3(39)
of ERISA).
(g) Debt Ratings. Promptly upon any change in its Debt
Ratings.
(h) Other Information. With reasonable promptness upon any
such request, such other information regarding the business, properties
or financial condition of the Borrower as the Lender may reasonably
request.
7.2 Financial Covenants.
-------------------
(a) Debt Capitalization. At all times the ratio of (i)
Consolidated Indebtedness to (ii) Consolidated Capitalization shall be
less than or equal to .65 to 1.0. For purposes of such calculation, the
portion of Consolidated Indebtedness attributable to obligations under
Material Leases shall be the net present value (using (i) the discount
rate (A) set forth in Schedule 6.19, so long as Schedule 6.19 specifies
the same relevant discount rate as is used in calculating such net
present value provided to Xxxxx'x and S&P or (B) the discount rate used
in calculating such net present value provided to Xxxxx'x and S&P or
(ii) any such other rate as shall be proposed by the Borrower (and
agreed upon by the Required Lenders) of all amounts payable under the
Material Leases.
(b) Interest Coverage Ratio. As of the last day of each fiscal
quarter of the Borrower, for the twelve month period ending on such
date, the ratio of (i) Consolidated EBITDA to (ii) Consolidated
Interest Expense shall be greater than or equal to 3.0 to 1.0.
7.3 Preservation of Existence and Franchises.
----------------------------------------
(a) The Borrower will do (and will cause each of its
Subsidiaries to do) all things necessary to preserve and keep in full
force and effect its existence and rights, franchises and authority.
(b) The Borrower will maintain (and will cause each of its
Subsidiaries to maintain) its properties in good condition and not
waste or otherwise permit such properties to deteriorate, reasonable
wear and tear excepted.
7.4 Books and Records.
-----------------
The Borrower will keep (and will cause each of its Subsidiaries to
keep) complete and accurate books and records of its transactions in accordance
with good accounting practices on the basis of GAAP (including the establishment
and maintenance of appropriate reserves).
49
7.5 Compliance with Law.
-------------------
(a) The Borrower will comply (and will cause each of its Subsidiaries
to comply) with all laws (including, without limitation, all Environmental Laws
and ERISA laws), rules, regulations and orders, and all applicable restrictions
imposed by all Governmental Authorities, applicable to it and its properties, if
the failure to comply would have or would reasonably be expected to have a
Material Adverse Effect.
(b) The Borrower will timely file with the New Mexico Public Regulation
Commission such short-term financing plans (and obtain all appropriate
approvals) as are necessary to ensure that the indebtedness incurred hereunder
is permitted.
7.6 Payment of Taxes and Other Indebtedness.
---------------------------------------
The Borrower will (and will cause each of its Subsidiaries to) pay,
settle or discharge (a) all taxes, assessments and governmental charges or
levies imposed upon it, or upon its income or profits, or upon any of its
properties, before they shall become delinquent, (b) all lawful claims
(including claims for labor, materials and supplies) which, if unpaid, might
give rise to a Lien upon any of its properties, and (c) all of its other
Indebtedness as it shall become due (to the extent such repayment is not
otherwise prohibited by this Credit Agreement); provided, however, that the
Borrower and its Subsidiaries shall not be required to pay any such tax,
assessment, charge, levy, claim or Indebtedness which is being contested in good
faith by appropriate proceedings and as to which adequate reserves therefor have
been established in accordance with GAAP, unless the failure to make any such
payment (i) would give rise to an immediate right to foreclose or collect on a
Lien securing such amounts or (ii) would have or would be reasonably expected to
have a Material Adverse Effect.
7.7 Insurance.
---------
The Borrower will (and will cause each of its Subsidiaries to) at all
times maintain in full force and effect insurance (including worker's
compensation insurance and general liability insurance) in such amounts,
covering such risks and liabilities and with such deductibles or self-insurance
retentions as are in accordance with normal industry practice.
7.8 Performance of Obligations.
--------------------------
The Borrower will perform (and will cause each of its Subsidiaries to
perform) in all material respects all of its obligations under the terms of all
material agreements, indentures, mortgages, security agreements or other debt
instruments to which it is a party or by which it is bound.
7.9 Use of Proceeds.
---------------
The proceeds of the Credit Extensions may be used solely (a) to repay
amounts under the Existing Credit Agreement, (b) to pay fees and expenses
required by the Credit Document, and (c) for general corporate purposes of the
Borrower (including working capital and capital expenditures).
50
7.10 Audits/Inspections.
------------------
Upon reasonable notice and during normal business hours, the Borrower
will permit representatives appointed by the Lender, including, without
limitation, independent accountants, agents, attorneys, and appraisers to visit
and inspect the Borrower's property, including its books and records, its
accounts receivable and inventory, the Borrower's facilities and its other
business assets, and to make photocopies or photographs thereof and to write
down and record any information such representative obtains and shall permit the
Lender or its representatives to investigate and verify the accuracy of
information provided to the Lender and to discuss all such matters with the
officers, employees and representatives of the Borrower; provided, that an
officer or authorized agent of the Borrower shall be present during any such
discussions between the officers, employees or representatives of the Borrower
and the representatives of the Lender.
SECTION 8
NEGATIVE COVENANTS
------------------
Unless otherwise approved in writing by the Required Lenders, the
Borrower covenants and agrees that, until the termination of the Commitments,
the termination or expiration of all Letters of Credit and the payment in full
of all Borrower Obligations:
8.1 Nature of Business.
------------------
The Borrower will not materially alter the character of its business
from that conducted as of the Closing Date.
8.2 Consolidation and Merger.
------------------------
The Borrower will not (a) enter into any transaction of merger or (b)
consolidate, liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution); provided that, so long as no Default or Event of Default shall
exist or be caused thereby, a Person may be merged or consolidated with or into
the Borrower so long as the Borrower shall be the continuing or surviving
corporation.
8.3 Sale or Lease of Assets.
-----------------------
The Borrower will not (nor will it permit its Subsidiaries to) sell,
lease, transfer or otherwise dispose of, any of its assets (including, without
limitation, all or substantially all of its assets, whether in one transaction
or a series of related transactions) except (a) sales of accounts receivable and
energy services contract revenues in connection with the 3838 Securitization and
other sales of accounts receivable and energy services contract revenues so long
as such other sales are non-recourse to the Borrower and are otherwise on
customary market terms; (b) sales of assets (excluding those permitted in clause
(a) hereof) for fair value, if the aggregate value of all such transactions in
any calendar year, does not exceed 25% of the book value of Total Assets, as
calculated as of the end of the most recent fiscal quarter; and (c) sale, lease,
transfer or other disposition, at less than fair value, of any other assets,
provided that the aggregate book value of such assets shall not exceed
$10,000,000 in any calendar year.
51
8.4 Affiliate Transactions.
----------------------
The Borrower will not enter into any transaction or series of
transactions, whether or not in the ordinary course of business, with any
Affiliate other than on terms and conditions substantially as favorable as would
be obtainable in a comparable arm's-length transaction with a Person other than
an Affiliate.
8.5 Liens.
-----
The Borrower will not (and will not permit its Subsidiaries to)
contract, create, incur, assume or permit to exist any Lien with respect to any
of its property or assets of any kind (whether real or personal, tangible or
intangible), whether now owned or hereafter acquired, securing any Indebtedness
other than the following: (a) Liens securing Borrower Obligations, (b) Liens for
taxes not yet due or Liens for taxes being contested in good faith by
appropriate proceedings for which adequate reserves determined in accordance
with GAAP have been established (and as to which the property subject to any
such Lien is not yet subject to foreclosure, sale or loss on account thereof),
(c) Liens in respect of property imposed by law arising in the ordinary course
of business such as materialmen's, mechanics', warehousemen's, carrier's,
landlords' and other nonconsensual statutory Liens which are not yet due and
payable, which have been in existence less than 90 days or which are being
contested in good faith by appropriate proceedings for which adequate reserves
determined in accordance with GAAP have been established (and as to which the
property subject to any such Lien is not yet subject to foreclosure, sale or
loss on account thereof), (d) pledges or deposits made in the ordinary course of
business to secure payment of worker's compensation insurance, unemployment
insurance, pensions or social security programs, (e) Liens arising from good
faith deposits in connection with or to secure performance of tenders, bids,
leases, government contracts, performance and return-of-money bonds and other
similar obligations incurred in the ordinary course of business (other than
obligations in respect of the payment of borrowed money), (f) Liens arising from
good faith deposits in connection with or to secure performance of statutory
obligations and surety and appeal bonds, (g) easements, rights-of-way,
restrictions (including zoning restrictions), minor defects or irregularities in
title and other similar charges or encumbrances not, in any material respect,
impairing the use of the encumbered property for its intended purposes, (h)
judgment Liens that would not constitute an Event of Default, (i) Liens arising
by virtue of any statutory or common law provision relating to banker's liens,
rights of setoff or similar rights as to deposit accounts or other funds
maintained with a creditor depository institution, (j) any Lien created or
arising over any property which is acquired, constructed or created by the
Borrower or its Subsidiaries, but only if (i) such Lien secures only principal
amounts (not exceeding the cost of such acquisition, construction or creation)
raised for the purposes of such acquisition, construction or creation, together
with any costs, expenses, interest and fees incurred in relation thereto or a
guarantee given in respect thereof, (ii) such Lien is created or arises on or
before 180 days after the completion of such acquisition, construction or
creation, (iii) such Lien is confined solely to the property so acquired,
constructed or created and any improvements thereto and (iv) the aggregate
principal amount of all Indebtedness secured by such Liens shall not exceed
$25,000,000 at any one time outstanding, (k) any Lien on Margin Stock, (l) the
52
FMB Indenture, but only to the extent of the Insured Series First Mortgage
Bonds, and the "permitted encumbrances" under the FMB Indenture, (m) the
assignment of, or Liens on, accounts receivable in connection with 3838
Securitization and the filing of related financing statements under the Uniform
Commercial Code of the applicable jurisdictions, (n) the assignment of, or Liens
on, demand, energy or wheeling revenues, or on capacity reservation or option
fees, payable to the Borrower with respect to any wholesale electric service or
transmission agreements, the assignment of, or Liens on, revenues from energy
services contracts, and the assignment of, or Liens on, capacity reservation or
option fees payable to the Borrower with respect to asset sales permitted
herein, (o) any extension, renewal or replacement (or successive extensions,
renewals or replacements), as a whole or in part, of any Liens referred to in
the foregoing clauses (a) through (n), for amounts not exceeding the principal
amount of the Indebtedness secured by the Lien so extended, renewed or replaced,
provided that such extension, renewal or replacement Lien is limited to all or a
part of the same property or assets that were covered by the Lien extended,
renewed or replaced (plus improvements on such property or assets), (p) Liens on
Property that is subject to a Material Lease that is classified as an operating
lease as of the Closing Date but which is subsequently converted into a capital
lease, and (q) Liens on Property, in addition to those otherwise permitted by
clauses (a) through (p) above, securing, directly or indirectly, Indebtedness or
obligations arising pursuant to other agreements entered into in the ordinary
course of business which do not exceed, in the aggregate at any one time
outstanding, $25,000,000.
8.6 Accounting Changes.
------------------
The Borrower will not make or permit, or permit any of its Subsidiaries
to make or permit, any change in accounting policies or reporting practices,
except as required by GAAP, or as permitted by GAAP, if the amounts involved are
not material.
SECTION 9
EVENTS OF DEFAULT
-----------------
9.1 Events of Default.
-----------------
An Event of Default shall exist upon the occurrence of any of the
following specified events (each an "Event of Default"):
(a) Payment. The Borrower shall: (i) default in the payment
when due of any principal of any of the Revolving Loans; or (ii)
default, and such default shall continue for three or more Business
Days, in the payment when due of any interest on the Loans or of any
fees or other amounts owing hereunder, under any of the other Credit
Documents or in connection herewith or therewith.
(b) Representations. Any representation, warranty or statement
made or deemed to be made by the Borrower herein, in any of the other
Credit Documents, or in any statement or certificate delivered or
required to be delivered pursuant hereto or thereto shall prove untrue
in any material respect on the date as of which it was deemed to have
been made.
53
(c) Covenants. The Borrower shall:
(i) default in the due performance or observance of
any term, covenant or agreement contained in Sections 7.2,
7.3(a) (solely with respect to the existence of the Borrower),
7.9, 7.10 or 8.1 through 8.6, inclusive; or
(ii) default in the due performance or observance by
it of any term, covenant or agreement (other than those
referred to in subsections (a), (b) or (c)(i) of this Section
9.1) contained in this Credit Agreement or any other Credit
Document and such default shall continue unremedied for a
period of at least 10 days after the earlier of the Borrower
becoming aware of such default or notice thereof given by the
Lender.
(d) Credit Documents. Any Credit Document shall fail to be in
force and effect or the Borrower shall so assert or any Credit Document
shall fail to give the Lender the rights, powers, liens and privileges
purported to be created thereby.
(e) Bankruptcy, etc. The occurrence of any of the following
with respect to the Borrower or any of its Subsidiaries (i) a court or
governmental agency having jurisdiction in the premises shall enter a
decree or order for relief in respect of the Borrower or any of its
Subsidiaries in an involuntary case under any applicable Debtor Relief
Law now or hereafter in effect, or appoint a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official of the
Borrower or any of its Subsidiaries or for any substantial part of
their property or ordering the winding up or liquidation of its
affairs; or (ii) an involuntary case under any applicable Debtor Relief
Law now or hereafter in effect is commenced against the Borrower or any
of its Subsidiaries and such petition remains unstayed and in effect
for a period of 60 consecutive days; or (iii) the Borrower or any of
its Subsidiaries shall commence a voluntary case under any applicable
Debtor Relief Law now or hereafter in effect, or consent to the entry
of an order for relief in an involuntary case under any such law, or
consent to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar
official of such Person or any substantial part of its property or make
any general assignment for the benefit of creditors; or (iv) the
Borrower or any of its Subsidiaries shall admit in writing its
inability to pay its debts generally as they become due or any action
shall be taken by any Person in furtherance of any of the aforesaid
purposes.
(f) Defaults under Other Agreements.
(i) The Borrower or any of its Subsidiaries shall
default in the due performance or observance (beyond the
applicable grace period with respect thereto) of any material
obligation or condition of any contract or lease to which it
is a party, if such default would have or would reasonably be
expected to have a Material Adverse Effect.
(ii) With respect to any Indebtedness of the Borrower
or any of its Subsidiaries (other than Indebtedness
outstanding under this Credit Agreement) in excess of
$20,000,000 in the aggregate (A) the Borrower or such
Subsidiary shall (x) default in any payment (beyond the
applicable grace period with respect thereto, if any) with
54
respect to such Indebtedness, or (y) default (after giving
effect to any applicable grace period) in the observance or
performance of any covenant or agreement relating to such
Indebtedness or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event
or condition shall occur or condition exist, the effect of
which default or other event or condition is to cause or
permit the holder or the holders of such Indebtedness (or any
trustee or agent on behalf of such holders) to cause
(determined without regard to whether any notice or lapse of
time is required) such Indebtedness to become due prior to its
stated maturity; or (B) such Indebtedness shall be declared
due and payable, or required to be prepaid other than by a
regularly scheduled required prepayment prior to the stated
maturity thereof; or (C) such Indebtedness shall mature and
remain unpaid.
(g) Judgments. Any judgment, order or decree involving a
liability of $20,000,000 or more, or one or more judgments, orders, or
decrees involving a liability of $40,000,000 or more, in the aggregate,
shall be entered against the Borrower or any of its Subsidiaries and
such judgments, orders or decrees shall continue unsatisfied,
undischarged and unstayed for a period ending on the first to occur of
(i) the last day on which such judgment, order or decree becomes final
and unappealable and, where applicable, with the status of a judicial
lien or (ii) 60 days; provided that if such judgment, order or decree
provides for periodic payments over time then the Borrower or such
Subsidiary shall have a grace period of 30 days with respect to each
such periodic payment.
(h) ERISA. The occurrence of any of the following events or
conditions if any of the same would have or would be reasonably
expected to have a Material Adverse Effect: (i) any "accumulated
funding deficiency," as such term is defined in Section 302 of ERISA
and Section 412 of the Code, whether or not waived, shall exist with
respect to any Plan, or any lien shall arise on the assets of the
Borrower or any ERISA Affiliate in favor of the PBGC or a Plan; (ii) an
ERISA Event shall occur with respect to a Single Employer Plan which
is, in the reasonable opinion of the Lender, likely to result in the
termination of such Plan for purposes of Title IV of ERISA; (iii) an
ERISA Event shall occur with respect to a Multiemployer Plan or
Multiple Employer Plan which is, in the reasonable opinion of the
Lender, likely to result in (A) the termination of such Plan for
purposes of Title IV of ERISA, or (B) the Borrower or any ERISA
Affiliate incurring any liability in connection with a withdrawal from,
reorganization of (within the meaning of Section 4241 of ERISA), or
insolvency (within the meaning of Section 4245 of ERISA) of such Plan;
or (iv) any prohibited transaction (within the meaning of Section 406
of ERISA or Section 4975 of the Code) or breach of fiduciary
responsibility shall occur which would be reasonably expected to
subject the Borrower or any ERISA Affiliate to any liability under
Sections 406, 409, 502(i), or 502(l) of ERISA or Section 4975 of the
Code, or under any agreement or other instrument pursuant to which the
Borrower or any ERISA Affiliate has agreed or is required to indemnify
any person against any such liability.
(i) Change of Control. There shall occur a Change of Control.
55
9.2 Acceleration; Remedies.
----------------------
Upon the occurrence and during the continuation of an Event of Default,
the Administrative Agent may or, upon the request and direction of the Required
Lenders, shall take the following actions without prejudice to the rights of the
Administrative Agent or any Lender to enforce its claims against the Borrower,
except as otherwise specifically provided for herein:
(a) Termination of Commitments. Declare the Commitments and
the obligation of the L/C Issuer to make L/C Credit Extensions
terminated whereupon the Commitments and the obligation of the L/C
Issuer to make L/C Credit Extensions shall be immediately terminated.
(b) Acceleration of Revolving Loans. Declare the unpaid
principal of and any accrued interest in respect of all Revolving
Loans, all L/C Obligations and any and all other Borrower Obligations
of any and every kind owing by the Borrower to the Administrative Agent
or the Lenders under the Credit Documents to be due, whereupon the same
shall be immediately due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by
the Borrower.
(c) Cash Collateral. Direct the Borrower to Cash Collateralize
(and the Borrower agrees that upon receipt of such notice, or upon the
occurrence of an Event of Default under Section 9.1(e), it will
immediately Cash Collateralize) L/C Obligations in respect of
subsequent drawings under all then outstanding Letters of Credit in an
amount equal to the then outstanding principal amount of L/C
Obligations.
(d) Enforcement of Rights. To the extent permitted by Law
enforce any and all rights and interests created and existing under
applicable Law and under the Credit Documents, including, without
limitation, all rights of set-off.
Notwithstanding the foregoing, if an Event of Default specified in Section
9.1(e) shall occur, then the Commitments and any obligation of the L/C Issuer to
make L/C Credit Extensions shall automatically terminate and all Revolving
Loans, all L/C Obligations, all accrued interest in respect thereof, all accrued
and unpaid fees and other Borrower Obligations owing to the Administrative Agent
and the Lenders hereunder shall immediately become due and payable without the
giving of any notice or other action by the Administrative Agent or the Lenders,
which notice or other action is expressly waived by the Borrower.
Notwithstanding the fact that enforcement powers reside primarily with the
Administrative Agent, each Lender has, to the extent permitted by Law, a
separate right of payment and shall be considered a separate "creditor" holding
a separate "claim" within the meaning of Section 101(5) of the Bankruptcy Code
or any other insolvency statute.
9.3 Allocation of Payments After Event of Default.
---------------------------------------------
Notwithstanding any other provisions of this Credit Agreement, after
the occurrence and during the continuation of an Event of Default, all amounts
collected or received by the Administrative Agent or any Lender on account of
amounts outstanding under any of the Credit Documents shall be paid over or
delivered as follows:
56
FIRST, to the payment of all reasonable out-of-pocket costs
and expenses (including the reasonable fees and expenses of legal
counsel) of the Administrative Agent, the L/C Issuer or any of the
Lenders in connection with enforcing the rights of the Administrative
Agent, the L/C Issuer and the Lenders under the Credit Documents,
ratably among them in proportion to the amounts described in this
clause "FIRST" payable to them;
SECOND, to payment of any fees owed to the Administrative
Agent, the L/C Issuer or any Lender, ratably among them in proportion
to the amounts described in this clause "SECOND" payable to them;
THIRD, to the payment of all accrued interest payable to the
Lenders, and the L/C Issuer hereunder, ratably among them in proportion
to the amounts described in this clause "THIRD" payable to them;
FOURTH, to the payment of the outstanding principal amount of
the Revolving Loans and L/C Obligations, ratably among them in
proportion to the amounts described in this clause "FOURTH" payable to
them;
FIFTH, to the Administrative Agent, for the account of the L/C
Issuer, to Cash Collateralize that portion of the L/C Obligations
comprised of the aggregate undrawn amount of Letters of Credit;
SIXTH, to all other Borrower Obligations which shall have
become due and payable under the Credit Documents and not repaid
pursuant to clauses "FIRST" through "FIFTH" above, ratably among the
holders of such Borrower Obligations in proportion to the amounts
described in this clause "SIXTH" payable to them; and
SEVENTH, the payment of the surplus, if any, to whomever may
be lawfully entitled to receive such surplus.
Amounts used to Cash Collateralize the aggregate undrawn amount of Letters of
Credit pursuant to clause "FIFTH" above shall be applied to satisfy drawings
under such Letters of Credit as they occur. If any amount remains on deposit as
cash collateral after all Letters of Credit have either been fully drawn or
expired, such remaining amount shall be applied to the other Borrower
Obligations, if any, in the order set forth above.
57
SECTION 10
AGENCY PROVISIONS
10.1 Appointment and Authorization of Administrative Agent.
-----------------------------------------------------
(a) Each Lender hereby irrevocably appoints, designates and
authorizes the Administrative Agent to take such action on its behalf
under the provisions of this Credit Agreement and each other Credit
Document and to exercise such powers and perform such duties as are
expressly delegated to it by the terms of this Credit Agreement or any
other Credit Document, together with such powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary
contained elsewhere herein or in any other Credit Document, the
Administrative Agent shall not have any duties or responsibilities,
except those expressly set forth herein, nor shall the Administrative
Agent have or be deemed to have any fiduciary relationship with any
Lender or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into
this Credit Agreement or any other Credit Document or otherwise exist
against the Administrative Agent. Without limiting the generality of
the foregoing sentence, the use of the term "agent" herein and in the
other Credit Documents with reference to the Administrative Agent is
not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any applicable Requirement
of Law. Instead, such term is used merely as a matter of market custom,
and is intended to create or reflect only an administrative
relationship between independent contracting parties.
(b) The L/C Issuer shall act on behalf of the Lenders with
respect to any Letters of Credit issued by it and the documents
associated therewith, and the L/C Issuer shall have all of the benefits
and immunities (i) provided to the Administrative Agent in this Section
10 with respect to any acts taken or omissions suffered by the L/C
Issuer in connection with Letters of Credit issued by it or proposed to
be issued by it and the applications and agreements for letters of
credit pertaining to such Letters of Credit as fully as if the term
"Administrative Agent" as used in this Section 10 and in the definition
of "Agent-Related Person" included the L/C Issuer with respect to such
acts or omissions, and (ii) as additionally provided herein with
respect to the L/C Issuer.
10.2 Delegation of Duties.
--------------------
The Administrative Agent may execute any of its duties under this
Credit Agreement or any other Credit Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other
consultants or experts concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct
of any agent or attorney-in-fact that it selects in the absence of gross
negligence or willful misconduct.
10.3 Liability of Administrative Agent.
---------------------------------
No Agent-Related Person shall (a) be liable for any action taken or
omitted to be taken by any of them under or in connection with this Credit
Agreement or any other Credit Document or the transactions contemplated hereby
(except for its own gross negligence or willful misconduct in connection with
its duties expressly set forth herein), or (b) be responsible in any manner to
any Lender or participant for any recital, statement, representation or warranty
58
made by the Borrower or any officer thereof, contained herein or in any other
Credit Document, or in any certificate, report, statement or other document
referred to or provided for in, or received by the Administrative Agent under or
in connection with, this Credit Agreement or any other Credit Document, or the
validity, effectiveness, genuineness, enforceability or sufficiency of this
Credit Agreement or any other Credit Document, or for any failure of the
Borrower or any other party to any Credit Document to perform its obligations
hereunder or thereunder. No Agent-Related Person shall be under any obligation
to any Lender or participant to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Credit
Agreement or any other Credit Document, or to inspect the properties, books or
records of the Borrower or any Affiliate thereof.
10.4 Reliance by Administrative Agent.
--------------------------------
(a) The Administrative Agent shall be entitled to rely, and
shall be fully protected in relying, upon any writing, communication,
signature, resolution, representation, notice, consent, certificate,
affidavit, letter, telegram, facsimile, telex or telephone message,
electronic mail message, statement or other document or conversation
believed by it to be genuine and correct and to have been signed, sent
or made by the proper Person or Persons, and upon advice and statements
of legal counsel (including counsel to the Borrower), independent
accountants and other experts selected by the Administrative Agent. The
Administrative Agent shall be fully justified in failing or refusing to
take any action under any Credit Document unless it shall first receive
such advice or concurrence of the Required Lenders as it deems
appropriate and, if it so requests, it shall first be indemnified to
its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing
to take any such action. The Administrative Agent shall in all cases be
fully protected in acting, or in refraining from acting, under this
Credit Agreement or any other Credit Document in accordance with a
request or consent of the Required Lenders (or such greater number of
Lenders as may be expressly required hereby in any instance) and such
request and any action taken or failure to act pursuant thereto shall
be binding upon all the Lenders.
(b) For purposes of determining compliance with the conditions
specified in Section 4.1, each Lender that has signed this Credit
Agreement shall be deemed to have consented to, approved or accepted or
to be satisfied with, each document or other matter required thereunder
to be consented to or approved by or acceptable or satisfactory to a
Lender unless the Administrative Agent shall have received notice from
such Lender prior to the proposed Closing Date specifying its objection
thereto.
10.5 Notice of Default.
-----------------
The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default, except with respect
to defaults in the payment of principal, interest and fees required to be paid
to the Administrative Agent for the account of the Lenders, unless the
Administrative Agent shall have received written notice from a Lender or the
Borrower referring to this Credit Agreement, describing such Default or Event of
59
Default and stating that such notice is a "notice of default." The
Administrative Agent will notify the Lenders of its receipt of any such notice.
The Administrative Agent shall take such action with respect to such Default or
Event of Default as may be directed by the Required Lenders in accordance with
Section 9; provided, however, that unless and until the Administrative Agent has
received any such direction, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect
to such Default or Event of Default as it shall deem advisable or in the best
interest of the Lenders.
10.6 Credit Decision; Disclosure of Information by the
-------------------------------------------------
Administrative Agent.
--------------------
Each Lender acknowledges that no Agent-Related Person has made any
representation or warranty to it, and that no act by the Administrative Agent
hereafter taken, including any consent to and acceptance of any assignment or
review of the affairs of the Borrower or any Affiliate thereof, shall be deemed
to constitute any representation or warranty by any Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed
material information in their possession. Each Lender represents to the
Administrative Agent that it has, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and
creditworthiness of the Borrower and their respective Subsidiaries, and all
applicable bank or other regulatory Requirement of Laws relating to the
transactions contemplated hereby, and made its own decision to enter into this
Credit Agreement and to extend credit to the Borrower hereunder. Each Lender
also represents that it will, independently and without reliance upon any
Agent-Related Person and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Credit
Agreement and the other Credit Documents, and to make such investigations as it
deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Borrower.
Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent herein, the Administrative
Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of the Borrower or
any of their respective Affiliates which may come into the possession of any
Agent-Related Person.
10.7 Indemnification of Administrative Agent.
---------------------------------------
Whether or not the transactions contemplated hereby are consummated,
the Lenders shall indemnify upon demand each Agent-Related Person (to the extent
not reimbursed by or on behalf of the Borrower and without limiting the
obligation of the Borrower to do so), pro rata, and hold harmless each
Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided, however, that no Lender shall be liable for the
payment to any Agent-Related Person of any portion of such Indemnified
Liabilities to the extent determined in a final, nonappealable judgment by a
court of competent jurisdiction to have resulted from such Agent-Related
Person's own gross negligence or willful misconduct; it being understood and
agreed that no action taken in accordance with the directions of the Required
Lenders shall be deemed to constitute gross negligence or willful misconduct for
purposes of this Section. Without limitation of the foregoing, each Lender shall
60
reimburse the Administrative Agent upon demand for its ratable share of any
costs or out-of-pocket expenses (including, without limitation, the reasonable
fees and expenses of legal counsel) incurred by the Administrative Agent in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Credit Agreement, any other Credit Document, or any
document contemplated by or referred to herein, to the extent that the
Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower. The undertaking in this Section shall survive termination of the
Commitments, the payment of all Borrower Obligations and the resignation of the
Administrative Agent.
10.8 Administrative Agent in its Individual Capacity.
-----------------------------------------------
Bank of America and its Affiliates may make loans to, issue letters of
credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with the Borrower and its Affiliates as though Bank of America
were not the Administrative Agent or the L/C Issuer hereunder and without notice
to or consent of the Lenders. The Lenders acknowledge that, pursuant to such
activities, Bank of America or its Affiliates may receive information regarding
the Borrower or its Affiliates (including information that may be subject to
confidentiality obligations in favor of the Borrower or an Affiliate) and
acknowledge that the Administrative Agent shall be under no obligation to
provide such information to them. With respect to its Revolving Loans, Bank of
America shall have the same rights and powers under this Credit Agreement as any
other Lender and may exercise such rights and powers as though it were not the
Administrative Agent or the L/C Issuer, and the terms "Lender" and "Lenders"
include Bank of America in its individual capacity. The foregoing provisions of
this Section 10.8 shall apply equally to Lenders and their Affiliates to the
extent such Lenders are acting in their individual capacities and not in their
capacities as Lenders hereunder.
10.9 Successor Administrative Agent.
------------------------------
The Administrative Agent may resign as Administrative Agent upon 30
days' notice to the Lenders; provided that any such resignation by Bank of
America shall also constitute its resignation as L/C Issuer. If the
Administrative Agent resigns under this Credit Agreement, the Required Lenders
shall appoint from among the Lenders a successor Administrative Agent for the
Lenders, which successor Administrative Agent shall be consented to by the
Borrower at all times other than during the existence of an Event of Default
(which consent of the Borrower shall not be unreasonably withheld or delayed).
If no successor Administrative Agent is appointed prior to the effective date of
the resignation of the retiring Administrative Agent, the retiring
Administrative Agent may appoint, after consulting with the Lenders and the
Borrower, a successor Administrative Agent from among the Lenders. Upon the
acceptance of its appointment as successor Administrative Agent hereunder, the
Person acting as such successor Administrative Agent shall succeed to all the
rights, powers and duties of the retiring Administrative Agent and the retiring
L/C Issuer and the respective terms "Administrative Agent" and "L/C Issuer"
shall mean such successor Administrative Agent and L/C Issuer and the retiring
Administrative Agent's appointment, powers and duties as Administrative Agent
shall be terminated and the retiring L/C Issuer's rights, powers and duties as
such shall be terminated, without any other or further act or deed on the part
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of such retiring Administrative Agent or L/C Issuer or any other Lender, other
than the obligation of the successor L/C Issuer to issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such
succession or to make other arrangements satisfactory to the retiring L/C Issuer
to effectively assume the obligations of the retiring L/C Issuer with respect to
such Letters of Credit. After any retiring Administrative Agent's resignation
hereunder as Administrative Agent, the provisions of this Section 10 and
Sections 11.5 and 11.6 shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was Administrative Agent under this Credit
Agreement. If no successor Administrative Agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring
Administrative Agent's notice of resignation, the retiring Administrative
Agent's resignation shall nevertheless thereupon become effective and the
Lenders shall perform all of the duties of the Administrative Agent hereunder
until such time, if any, as the Required Lenders appoint a successor
Administrative Agent as provided for above.
10.10 Administrative Agent May File Proofs of Claim.
---------------------------------------------
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Borrower, the Administrative Agent
(irrespective of whether the principal of any Revolving Loan or L/C Obligation
shall then be due and payable as herein expressed or by declaration or otherwise
and irrespective of whether the Administrative Agent shall have made any demand
on the Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise
(a) to file and prove a claim for the whole amount of the
principal and interest owing and unpaid in respect of the Revolving
Loans, L/C Obligations and all other Borrower Obligations that are
owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of the Lenders and the
Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders and
the Administrative Agent and its respective agents and counsel and all
other amounts due the Lenders and the Administrative Agent under
Sections 3.4 and 11.5) allowed in such judicial proceeding; and
(b) to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Lender to make such payments to the Administrative Agent and, in the event
that the Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to the Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 3.4 and 11.5.
Nothing contained herein shall be deemed to authorize the
Administrative Agent to authorize or consent to or accept or adopt on behalf of
any Lender any plan of reorganization, arrangement, adjustment or composition
affecting the Borrower Obligations or the rights of any Lender or to authorize
the Administrative Agent to vote in respect of the claim of any Lender in any
such proceeding.
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10.11 Other Agents; Arrangers and Managers.
------------------------------------
None of the Lenders or other Persons identified on the facing page or
signature pages of this Credit Agreement as a "syndication agent,"
"documentation agent," "co-agent," "book manager," "lead manager," "arranger,"
"lead arranger" or "co-arranger" shall have any right, power, obligation,
liability, responsibility or duty under this Credit Agreement other than, in the
case of such Lenders, those applicable to all Lenders as such. Without limiting
the foregoing, none of the Lenders or other Persons so identified shall have or
be deemed to have any fiduciary relationship with any Lender. Each Lender
acknowledges that it has not relied, and will not rely, on any of the Lenders or
other Persons so identified in deciding to enter into this Credit Agreement or
in taking or not taking action hereunder.
SECTION 11
MISCELLANEOUS
11.1 Notices and Other Communications; Facsimile Copies.
--------------------------------------------------
(a) General. Unless otherwise expressly provided herein, all
notices and other communications provided for hereunder shall be in
writing (including by facsimile transmission). All such written notices
shall be mailed, faxed or delivered to the applicable address,
facsimile number or (subject to subsection (c) below) electronic mail
address, and all notices and other communications expressly permitted
hereunder to be given by telephone shall be made to the applicable
telephone number, as follows:
(i) if to the Borrower, the Administrative Agent or
the L/C Issuer, to the address, facsimile number, electronic
mail address or telephone number specified for such Person on
Schedule 11.1 or to such other address, facsimile number,
electronic mail address or telephone number as shall be
designated by such party in a notice to the other parties; and
(ii) if to any other Lender, to the address,
facsimile number, electronic mail address or telephone number
specified in its Administrative Questionnaire or to such other
address, facsimile number, electronic mail address or
telephone number as shall be designated by such party in a
notice to the Borrower, the Administrative Agent and the L/C
Issuer.
All such notices and other communications shall be deemed to be given or made
upon the earlier to occur of (i) actual receipt by the relevant party hereto and
(ii) (A) if delivered by hand or by courier, when signed for by or on behalf of
the relevant party hereto; (B) if delivered by mail, four Business Days after
deposit in the mails, postage prepaid; (C) if delivered by facsimile, when sent
and receipt has been confirmed by telephone; and (D) if delivered by electronic
63
mail (which form of delivery is subject to the provisions of subsection (c)
below), when delivered; provided, however, that notices and other communications
to the Administrative Agent and the L/C Issuer pursuant to Section 2 shall not
be effective until actually received by such Person. In no event shall a
voicemail message be effective as a notice, communication or confirmation
hereunder.
(b) Effectiveness of Facsimile Documents and Signatures.
Credit Documents may be transmitted and/or signed by facsimile. The
effectiveness of any such documents and signatures shall, subject to
applicable Requirement of Law, have the same force and effect as
manually-signed originals and shall be binding on the Borrower, the
Administrative Agent and the Lenders. The Administrative Agent may also
require that any such documents and signatures be confirmed by a
manually-signed original thereof; provided, however, that the failure
to request or deliver the same shall not limit the effectiveness of any
facsimile document or signature.
(c) Limited Use of Electronic Mail. Electronic mail and
Internet and intranet websites may be used only to distribute routine
communications, such as financial statements and other information as
provided in Section 7.1 and 7.2, and to distribute Credit Documents for
execution by the parties thereto, and may not be used for any other
purpose.
(d) Reliance by Administrative Agent and Lenders. The
Administrative Agent and the Lenders shall be entitled to rely and act
upon any notices (including telephonic Notices of Borrowing)
purportedly given by or on behalf of the Borrower even if (i) such
notices were not made in a manner specified herein, were incomplete or
were not preceded or followed by any other form of notice specified
herein, or (ii) the terms thereof, as understood by the recipient,
varied from any confirmation thereof. The Borrower shall indemnify each
Agent-Related Person and each Lender from all losses, costs, expenses
and liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf of the Borrower. All
telephonic notices to and other communications with the Administrative
Agent may be recorded by the Administrative Agent, and each of the
parties hereto hereby consents to such recording.
11.2 Right of Set-Off.
----------------
In addition to any rights now or hereafter granted under applicable Law
or otherwise, and not by way of limitation of any such rights, upon the
occurrence of an Event of Default and the commencement of remedies described in
Section 9.2, each Lender is authorized at any time and from time to time,
without presentment, demand, protest or other notice of any kind (all of which
rights being hereby expressly waived), to set-off and to appropriate and apply
any and all deposits (general or special) and any other indebtedness at any time
held or owing by such Lender (including, without limitation, branches, agencies
or Affiliates of such Lender wherever located) to or for the credit or the
account of the Borrower against obligations and liabilities of the Borrower to
the Lenders hereunder, under the Revolving Notes, the other Credit Documents or
otherwise, irrespective of whether the Administrative Agent or the Lenders shall
have made any demand hereunder and although such obligations, liabilities or
claims, or any of them, may be contingent or unmatured, and any such set-off
shall be deemed to have been made immediately upon the occurrence of an Event of
Default even though such charge is made or entered on the books of such Lender
subsequent thereto. The Borrower hereby agrees that any Person purchasing a
participation in the Revolving Loans and Commitments hereunder pursuant to
Sections 3.8 or 11.3(e) may exercise all rights of set-off with respect to its
participation interest as fully as if such Person were a Lender hereunder.
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11.3 Successors and Assigns.
----------------------
(a) The provisions of this Credit Agreement shall be binding
upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of each Lender
and no Lender may assign or otherwise transfer any of its rights or
obligations hereunder except (i) to an Eligible Assignee in accordance
with the provisions of subsection (b) of this Section, (ii) by way of
participation in accordance with the provisions of subsection (d) of
this Section, or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of subsection (f) or (i) of this
Section, or (iv) to an SPC in accordance with the provisions of
subsection (g) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this
Credit Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent
provided in subsection (d) of this Section and, to the extent expressly
contemplated hereby, the Indemnitees) any legal or equitable right,
remedy or claim under or by reason of this Credit Agreement.
(b) Any Lender may at any time assign to one or more Eligible
Assignees all or a portion of its rights and obligations under this
Credit Agreement (including all or a portion of its Commitment and the
Loans (including for purposes of this subsection (b), participations in
L/C Obligations) at the time owing to it); provided that (i) except in
the case of an assignment of the entire remaining amount of the
assigning Lender's Commitment and the Loans at the time owing to it or
in the case of an assignment to a Lender or an Affiliate of a Lender or
an Approved Fund (as defined in subsection (g) of this Section) with
respect to a Lender, the aggregate amount of the Commitment (which for
this purpose includes Loans outstanding thereunder) subject to each
such assignment, determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the
Administrative Agent or, if "Trade Date" is specified in the Assignment
and Assumption, as of the Trade Date, shall not be less than $5,000,000
unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents
(each such consent not to be unreasonably withheld or delayed); (ii)
each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender's rights and obligations
under this Credit Agreement with respect to the Loans or the Commitment
assigned, (iii) any assignment of a Commitment must be approved by the
Administrative Agent and the L/C Issuer (such approval not to be
unreasonably withheld or delayed) unless the Person that is the
proposed assignee is itself a Lender (whether or not the proposed
assignee would otherwise qualify as an Eligible Assignee); and (iv) the
parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee of $3,500. Subject to acceptance and
recording thereof by the Administrative Agent pursuant to subsection
(c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall
65
be a party to this Credit Agreement and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Credit Agreement, and the assigning
Lender thereunder shall, to the extent of the interest assigned by such
Assignment and Assumption, be released from its obligations under this
Credit Agreement (and, in the case of an Assignment and Assumption
covering all of the assigning Lender's rights and obligations under
this Credit Agreement, such Lender shall cease to be a party hereto but
shall continue to be entitled to the benefits of Sections 3.9, 3.12,
3.13, 3.14, and 11.5(b) with respect to facts and circumstances
occurring prior to the effective date of such assignment). Upon
request, the Borrower (at its expense) shall execute and deliver a Note
to the assignee Lender. Any assignment or transfer by a Lender of
rights or obligations under this Credit Agreement that does not comply
with this subsection shall be treated for purposes of this Credit
Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with subsection (d) of this Section.
(c) The Administrative Agent, acting solely for this purpose
as an agent of the Borrower, shall maintain at the Administrative
Agent's Office a copy of each Assignment and Assumption delivered to it
and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and
L/C Obligations owing to, each Lender pursuant to the terms hereof from
time to time (the "Register"). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders
may treat each Person whose name is recorded in the Register pursuant
to the terms hereof as a Lender hereunder for all purposes of this
Credit Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrower and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.
(d) Any Lender may at any time, without the consent of, or
notice to, the Borrower or the Administrative Agent, sell
participations to any Person (other than a natural person or the
Borrower or any of the Borrower's Affiliates or Subsidiaries) (each, a
"Participant") in all or a portion of such Lender's rights and/or
obligations under this Credit Agreement (including all or a portion of
its Commitment and/or the Loans (including such Lender's participations
in L/C Obligations) owing to it); provided that (i) such Lender's
obligations under this Credit Agreement shall remain unchanged, (ii)
such Lender shall remain solely responsible to the other parties hereto
for the performance of such obligations and (iii) the Borrower, the
Administrative Agent and the other Lenders shall continue to deal
solely and directly with such Lender in connection with such Lender's
rights and obligations under this Credit Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this
Credit Agreement and to approve any amendment, modification or waiver
of any provision of this Credit Agreement; provided that such agreement
or instrument may provide that such Lender will not, without the
consent of the Participant, agree to any amendment, waiver or other
modification described in the first proviso to Section 11.6 that
directly affects such Participant. Subject to subsection (e) of this
Section, the Borrower agrees that each Participant shall be entitled to
the benefits of Sections 3.9, 3.12, 3.13 and 3.14 to the same extent as
if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section. To the extent permitted by
Law, each Participant also shall be entitled to the benefits of Section
3.7 as though it were a Lender, provided such Participant agrees to be
subject to Section 3.8 as though it were a Lender.
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(e) A Participant shall not be entitled to receive any greater
payment under Section 3.9, 3.12, 3.13 or 3.14 than the applicable
Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower's prior
written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 3.13
unless the Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 3.13(f) as though it were a Lender.
(f) Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Credit
Agreement (including under its Note, if any) to secure obligations of
such Lender, including any pledge or assignment to secure obligations
to a Federal Reserve Bank; provided that no such pledge or assignment
shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party
hereto.
(g) Notwithstanding anything to the contrary contained herein,
any Lender (a "Granting Lender") may grant to a special purpose funding
vehicle identified as such in writing from time to time by the Granting
Lender to the Administrative Agent and the Borrower (an "SPC") the
option to provide all or any part of any Loan that such Granting Lender
would otherwise be obligated to make pursuant to this Credit Agreement;
provided that (i) nothing herein shall constitute a commitment by any
SPC to fund any Loan, and (ii) if an SPC elects not to exercise such
option or otherwise fails to make all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the
terms hereof. Each party hereto hereby agrees that (A) neither the
grant to any SPC nor the exercise by any SPC of such option shall
increase the costs or expenses or otherwise increase or change the
obligations of the Borrower under this Credit Agreement (including its
obligations under Sections 3.9, 3.12, 3.13 and 3.14), (B) no SPC shall
be liable for any indemnity or similar payment obligation under this
Credit Agreement for which a Lender would be liable, and (C) the
Granting Lender shall for all purposes, including the approval of any
amendment, waiver or other modification of any provision of any Credit
Document, remain the lender of record hereunder. The making of a
Committed Loan by an SPC hereunder shall utilize the Commitment of the
Granting Lender to the same extent, and as if, such Loan were made by
such Granting Lender. In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of
this Credit Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or
other senior debt of any SPC, it will not institute against, or join
any other Person in instituting against, such SPC any bankruptcy,
reorganization, arrangement, insolvency, or liquidation proceeding
under the Laws of the United States or any State thereof.
Notwithstanding anything to the contrary contained herein, any SPC may
(i) with notice to, but without prior consent of the Borrower and the
Administrative Agent and without paying any processing fee therefor,
assign all or any portion of its right to receive payment with respect
to any Loan to the Granting Lender and (ii) disclose on a confidential
basis any non-public information relating to its funding of Loans to
any rating agency, commercial paper dealer or provider of any surety or
guarantee or credit or liquidity enhancement to such SPC.
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(i) Notwithstanding anything to the contrary contained herein,
any Lender that is a Fund may create a security interest in all or any
portion of the Loans owing to it and the Note, if any, held by it to
the trustee for holders of obligations owed, or securities issued, by
such Fund as security for such obligations or securities, provided that
unless and until such trustee actually becomes a Lender in compliance
with the other provisions of this Section 11.3, (i) no such pledge
shall release the pledging Lender from any of its obligations under the
Credit Documents and (ii) such trustee shall not be entitled to
exercise any of the rights of a Lender under the Credit Documents even
though such trustee may have acquired ownership rights with respect to
the pledged interest through foreclosure or otherwise.
(j) Notwithstanding anything to the contrary contained herein,
if at any time Bank of America assigns all of its Commitment and Loans
pursuant to subsection (b) above, Bank of America may upon 30 days'
notice to the Borrower and the Lenders, resign as L/C Issuer. In the
event of any such resignation as L/C Issuer, the Borrower shall be
entitled to appoint from among the Lenders a successor L/C Issuer
hereunder; provided, however, that no failure by the Borrower to
appoint any such successor shall affect the resignation of Bank of
America as L/C Issuer. If Bank of America resigns as L/C Issuer, it
shall retain all the rights and obligations of the L/C Issuer hereunder
with respect to all Letters of Credit outstanding as of the effective
date of its resignation as L/C Issuer and all L/C Obligations with
respect thereto (including the right to require the Lenders to make
Loans or fund risk participations pursuant to Section 2.2.
11.4 No Waiver; Remedies Cumulative.
------------------------------
No failure or delay on the part of the Administrative Agent or any
Lender in exercising any right, power or privilege hereunder or under any other
Credit Document and no course of dealing between the Borrower and the
Administrative Agent or any Lender shall operate as a waiver thereof; nor shall
any single or partial exercise of any right, power or privilege hereunder or
under any other Credit Document preclude any other or further exercise thereof
or the exercise of any other right, power or privilege hereunder or thereunder.
The rights and remedies provided herein are cumulative and not exclusive of any
rights or remedies which the Administrative Agent or any Lender would otherwise
have. No notice to or demand on the Borrower in any case shall entitle the
Borrower to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the rights of the Administrative Agent
or the Lenders to any other or further action in any circumstances without
notice or demand.
11.5 Attorney Costs, Expenses, Taxes and Indemnification by
------------------------------------------------------
Borrower.
--------
(a) The Borrower agrees (i) to pay or reimburse the
Administrative Agent and the Arranger for all costs and expenses
incurred in connection with the development, preparation, negotiation
and execution of this Credit Agreement and the other Credit Documents
and any amendment, waiver, consent or other modification of the
provisions hereof and thereof (whether or not the transactions
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contemplated hereby or thereby are consummated), and the consummation
and administration of the transactions contemplated hereby and thereby,
including all reasonable fees and expenses of legal counsel, and (ii)
to pay or reimburse the Administrative Agent and each Lender for all
costs and expenses incurred in connection with the enforcement,
attempted enforcement, or preservation of any rights or remedies under
this Credit Agreement or the other Credit Documents (including all such
costs and expenses incurred during any "workout" or restructuring in
respect of the Borrower Obligations and during any legal proceeding,
including any proceeding under any Debtor Relief Law), including all
reasonable fees and expenses of legal counsel. The foregoing costs and
expenses shall include all search, filing, recording, and appraisal
charges and fees and taxes related thereto, and other out-of-pocket
expenses incurred by the Administrative Agent and the Arranger and the
cost of independent public accountants and other outside experts
retained by the Administrative Agent, the Arranger or any Lender. Other
than costs and expenses payable in connection with the closing of the
transactions contemplated by this Credit Agreement pursuant to Section
11.5(a) (which shall be payable on the Closing Date unless otherwise
agreed by the Administrative Agent and the Arranger), all amounts due
under this Section 11.5 shall be payable within ten Business Days after
demand therefor. The agreements in this Section shall survive the
termination of the Commitments and repayment of all other Borrower
Obligations.
(b) Whether or not the transactions contemplated hereby are
consummated, the Borrower shall indemnify and hold harmless each
Agent-Related Person, each Lender and their respective Affiliates,
directors, officers, employees, counsel, agents and attorneys-in-fact
(collectively the "Indemnitees") from and against any and all
liabilities, obligations, losses, damages, penalties, claims, demands,
actions, judgments, suits, costs, expenses and disbursements (including
the reasonable fees and expenses of legal counsel) of any kind or
nature whatsoever which may at any time be imposed on, incurred by or
asserted against any such Indemnitee in any way relating to or arising
out of or in connection with (i) the execution, delivery, enforcement,
performance or administration of any Credit Document or any other
agreement, letter or instrument delivered in connection with the
transactions contemplated thereby or the consummation of the
transactions contemplated thereby, (ii) any Commitment, Loan or Letter
of Credit or the use or proposed use of the proceeds therefrom
(including any refusal by the L/C Issuer to honor a demand for payment
under a Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of
Credit), or (iii) any actual or alleged presence or release of
Hazardous Substances on or from any property currently or formerly
owned or operated by the Borrower, any Subsidiary of the Borrower, or
any Environmental Claim related in any way to the Borrower or any
Subsidiary of the Borrower, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory
(including any investigation of, preparation for, or defense of any
pending or threatened claim, investigation, litigation or proceeding)
and regardless of whether any Indemnitee is a party thereto (all the
foregoing, collectively, the "Indemnified Liabilities"), in all cases,
whether or not caused by or arising, in whole or in part, out of the
negligence of the Indemnitee; provided that such indemnity shall not,
as to any Indemnitee, be available to the extent that such liabilities,
obligations, losses, damages, penalties, claims, demands, actions,
judgments, suits, costs, expenses or disbursements are determined by a
69
court of competent jurisdiction by final and nonappealable judgment to
have resulted from the gross negligence or willful misconduct of such
Indemnitee. No Indemnitee shall be liable for any damages arising from
the use by others of any information or other materials obtained
through IntraLinks or other similar information transmission systems in
connection with this Credit Agreement, nor shall any Indemnitee have
any liability for any indirect or consequential damages relating to
this Credit Agreement or any other Credit Document or arising out of
its activities in connection herewith or therewith (whether before or
after the Closing Date). All amounts due under this Section 11.5 shall
be payable within ten Business Days after demand therefor. The
agreements in this Section shall survive the resignation of the
Administrative Agent, the replacement of any Lender, the termination of
the Commitments and the repayment, satisfaction or discharge of all the
other Borrower Obligations.
11.6 Amendments, Waivers and Consents.
--------------------------------
Neither this Credit Agreement nor any other Credit Document nor any of
the terms hereof or thereof may be amended, changed, waived, discharged or
terminated unless such amendment, change, waiver, discharge or termination is in
writing and signed by the Required Lenders and the Borrower; provided that no
such amendment, change, waiver, discharge or termination shall, without the
consent of each Lender directly affected thereby:
(a) extend the Maturity Date;
(b) reduce the rate or extend the time of payment of interest
(other than as a result of waiving the applicability of any
post-default increase in interest rates on the Revolving Loans or fees
hereunder;
(c) reduce or waive the principal amount of any Revolving Loan
or extend the time of payment thereof;
(d) increase or extend the Commitment of a Lender (it being
understood and agreed that a waiver of any Default or Event of Default
or a waiver of any mandatory reduction in the Commitments shall not
constitute a change in the terms of any Commitment of any Lender);
(e) release the Borrower from its obligations or consent to
the assignment or transfer by the Borrower of any of its rights and
obligations under (or in respect of) the Credit Documents;
(f) amend, modify or waive any provision of this Section 11.6
or Sections 3.7, 3.8, 9.1(a), 11.2, 11.3 or 11.5; or
(g) reduce any percentage specified in, or otherwise modify,
the definition of Required Lenders.
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Notwithstanding the above, (i) no provision of Section 3.4(d) or
Section 10 may be amended or modified without the consent of the Administrative
Agent, (ii) no provision of this Credit Agreement or any other Credit Document
that addresses the rights or obligations of the Administrative Agent may be
amend or modified without prior written consent of the Administrative Agent and
(iii) no provision of Section 2.2 and no other provision of this Credit
Agreement or any other Credit Document that addresses the rights or obligations
of the L/C Issuer may be amended or modified without the prior written consent
of the L/C Issuer.
Each Lender understands and agrees that if such Lender is a Defaulting
Lender then, notwithstanding the provisions of this Section 11.6, it shall not
be entitled to vote on any matter requiring the consent of the Required Lenders
or to object to any matter requiring the consent of all the Lenders; provided,
however, that all other benefits and obligations under the Credit Documents
shall apply to such Defaulting Lender.
Notwithstanding the fact that the consent of all the Lenders is
required in certain circumstances as set forth above, (A) each Lender is
entitled to vote as such Lender sees fit on any reorganization plan that affects
the Borrower Obligations, and each Lender acknowledges that the provisions of
Section 1126(c) of the Bankruptcy Code supersede the unanimous consent
provisions set forth herein and (B) the Required Lenders may consent to allow a
Borrower to use cash collateral in the context of a bankruptcy or insolvency
proceeding.
11.7 Counterparts.
------------
This Credit Agreement may be executed in any number of counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall constitute one and the same instrument.
11.8 Headings.
--------
The headings of the sections and subsections hereof are provided for
convenience only and shall not in any way affect the meaning or construction of
any provision of this Credit Agreement.
11.9 Survival of Indemnification and Representations and
---------------------------------------------------
Warranties.
----------
(a) Survival of Indemnification. All indemnities set forth
herein shall survive the execution and delivery of this Credit
Agreement, the making of any Credit Extension and the repayment of the
Revolving Loans and other Borrower Obligations and the termination of
the Commitments hereunder.
(b) Survival of Representations and Warranties. All
representations and warranties made hereunder and in any other Credit
Document or other document delivered pursuant hereto or thereto or in
connection herewith or therewith shall survive the execution and
delivery hereof and thereof. Such representations and warranties have
been or will be relied upon by the Administrative Agent and each
Lender, regardless of any investigation made by the Administrative
Agent or any Lender or on their behalf and notwithstanding that the
Administrative Agent or any Lender may have had notice or knowledge of
any Default or Event of Default at the time of any Credit Extension,
and shall continue in full force and effect as long as any Loan or any
other Borrower Obligation hereunder shall remain unpaid or unsatisfied
or any Letter of Credit shall remain outstanding.
71
11.10 Governing Law; Service.
----------------------
THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE
NEW YORK GENERAL OBLIGATIONS LAW, BUT EXCLUDING ALL OTHER CHOICE OF LAW
AND CONFLICTS OF LAW RULES). The Borrower irrevocably consents to the
service of process in any action or proceeding with respect to this
Credit Agreement or any other Credit Document by the mailing of copies
thereof by registered or certified mail, postage prepaid, to it at the
address for notices pursuant to Section 11.1, such service to become
effective ten days after such mailing. Nothing herein shall affect the
right of a Lender to serve process in any other manner permitted by
Law.
11.11 Waiver of Jury Trial; Waiver of Consequential Damages.
-----------------------------------------------------
EACH OF THE PARTIES TO THIS CREDIT AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT
OF OR RELATING TO THIS CREDIT AGREEMENT, ANY OF THE OTHER CREDIT DOCUMENTS OR
THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY. Each of the parties to this
Credit Agreement agrees not to assert any claim against any other party hereto,
Administrative Agent, any Lender, any of their Affiliates, or any of their
respective directors, officers, employees, attorneys or agents, on any theory of
liability, for special, indirect, consequential or punitive damages arising out
of or otherwise relating to any of the transactions contemplated herein and in
the other Credit Documents.
11.12 Severability.
------------
If any provision of any of the Credit Documents is determined to be
illegal, invalid or unenforceable, such provision shall be fully severable and
the remaining provisions shall remain in full force and effect and shall be
construed without giving effect to the illegal, invalid or unenforceable
provisions.
11.13 Further Assurances.
------------------
The Borrower agrees, upon the request of the Administrative Agent, to
promptly take such actions, as reasonably requested, as is necessary to carry
out the intent of this Credit Agreement and the other Credit Documents.
11.14 Confidentiality.
---------------
Each Lender agrees that it will use reasonable efforts to keep
confidential any non-public information from time to time supplied to it under
any Credit Document; provided, however, that nothing herein shall prevent the
disclosure of any such information to (a) the extent a Lender in good faith
believes such disclosure is required by Law or judicial process, (b) counsel for
72
a Lender or to its accountants, (c) bank examiners or auditors or comparable
Persons, (d) any Affiliate of a Lender, (e) any other Lender, or any assignee,
transferee or Participant, or any potential assignee, transferee or Participant,
of all or any portion of any Lender's rights under this Credit Agreement who is
notified of the confidential nature of such information or (f) any other Person
in connection with (i) any litigation to which any one or more of the Lenders is
a party if required by a court of Law of competent jurisdiction or (ii) any
proceeding to enforce such Lender's rights hereunder, under any other Credit
Document or under any Hedging Agreement. No Lender shall have any obligation
under this Section 11.14 to the extent any such information becomes available on
a non-confidential basis from a source other than a Borrower or that any
information becomes publicly available other than by a breach of this Section
11.14 by any Lender or representative thereof.
11.15 Entirety.
--------
This Credit Agreement together with the other Credit Documents, the Fee
Letter and any confidentiality agreements between the Borrower and any Lender
represent the entire agreement of the parties hereto and thereto, and supersede
all prior agreements and understandings, oral or written, if any, including any
commitment letters or correspondence relating to the Credit Documents or the
transactions contemplated herein and therein.
11.16 Binding Effect; Continuing Agreement.
------------------------------------
(a) This Credit Agreement shall become effective at such time
when all of the conditions set forth in Section 5.1 have been satisfied
or waived by the Lenders and it shall have been executed by the
Borrower and the Administrative Agent, and the Administrative Agent
shall have received copies hereof (telefaxed or otherwise) which, when
taken together, bear the signatures of each Lender, and thereafter this
Credit Agreement shall be binding upon and inure to the benefit of the
Borrower, the Administrative Agent and each Lender and their respective
successors and assigns.
(b) This Credit Agreement shall be a continuing agreement and
shall remain in full force and effect until all Revolving Loans,
interest, fees and other Borrower Obligations have been paid in full
and all Letters of Credit and Commitments have been terminated. Upon
termination, the Borrower shall have no further obligations (other than
the indemnification provisions and other provisions that by their terms
survive) under the Credit Documents; provided that should any payment,
in whole or in part, of the Borrower Obligations be rescinded or
otherwise required to be restored or returned by the Administrative
Agent or any Lender, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, then the Credit Documents
shall automatically be reinstated and all amounts required to be
restored or returned and all costs and expenses incurred by the
Administrative Agent or any Lender in connection therewith shall be
deemed included as part of the Borrower Obligations.
73
11.17 Regulatory Statement.
--------------------
Pursuant to the terms of an order issued by the New Mexico Public
Regulation Commission, the Borrower is required to include the following
separateness covenants in any debt instrument:
(a) The Borrower and its corporate parent, PNM Resources, Inc.
("Parent") are being operated as separate corporate and legal entities. In
agreeing to make loans to Parent, Parent's lenders are relying solely on the
creditworthiness of Parent based on the assets owned by Parent, and the
repayment of the loan will be made solely from the assets of Parent and not from
any assets of the Borrower; and the Parent's lenders will not take any steps for
the purpose of procuring the appointment of an administrative receiver or the
making of an administrative order for instituting any bankruptcy,
reorganization, insolvency, wind up or liquidation or any like proceeding under
applicable law in respect of the Borrower.
(b) Notwithstanding any of the foregoing set forth in this Section
11.17, the Borrower and the Lenders hereby acknowledge and agree that (i) this
Credit Agreement and the Revolving Notes evidence Indebtedness of the Borrower
and not of the Parent, (ii) the Lenders are not, and shall not at any time be
deemed to be, "Parent's lenders" under this Credit Agreement and the Revolving
Notes and the foregoing covenants are therefore wholly inapplicable and
ineffective under the terms of this Credit Agreement and the Revolving Notes,
(iii) as set forth in this Credit Agreement and the Revolving Notes, the
Borrower is responsible for the repayment of all amounts outstanding hereunder,
(iv) the Lenders reserve all rights to pursue any and all remedies available at
law and otherwise (including, without limitation, in bankruptcy) should the
Borrower breach any of the its obligations under this Credit Agreement and/or
the Revolving Notes.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
74
Each of the parties hereto has caused a counterpart of this Credit
Agreement to be duly executed and delivered as of the date first above written.
BORROWER:
--------
PUBLIC SERVICE COMPANY OF NEW MEXICO,
a New Mexico corporation
By: /s/ X. X. Xxxx
-----------------------------------------------
Name: X. X. Xxxx
---------------------------------------------
Title: Vice President and Treasurer
--------------------------------------------
LENDERS:
-------
BANK OF AMERICA, N.A.,
individually in its capacity as a Lender and in
its capacity as Administrative Agent and L/C Issuer
By: /s/ Xxxxxxxx X. Xxxxxxxxxx
----------------------------------------------
Name: Xxxxxxxx X. Xxxxxxxxxx
--------------------------------------------
Title: Principal
-------------------------------------------
S-1
SCHEDULE 1.1(a)
PRO RATA SHARES
---------------
-------------------------------------------- ---------------- ---------------
Lender Commitment Pro Rata Share
-------------------------------------------- ---------------- ---------------
Bank of America, N.A $25,000,000.00 12.8205128205%
-------------------------------------------- ---------------- ---------------
Fleet National Bank 25,000,000.00 12.8205128205%
-------------------------------------------- ---------------- ---------------
Wachovia Bank, National Association 25,000,000.00 12.8205128205%
-------------------------------------------- ---------------- ---------------
Bank of Albuquerque, N.A. 20,000,000.00 10.2564102564%
-------------------------------------------- ---------------- ---------------
Xxxxx Fargo Bank, National Association 20,000,000.00 10.2564102564%
-------------------------------------------- ---------------- ---------------
JPMorgan Chase Bank 15,000,000.00 7.6923076923%
-------------------------------------------- ---------------- ---------------
Citibank NA 15,000,000.00 7.6923076923%
-------------------------------------------- ---------------- ---------------
Bank of the West 15,000,000.00 7.6923076923%
-------------------------------------------- ---------------- ---------------
Compass Bank 15,000,000.00 7.6923076923%
-------------------------------------------- ---------------- ---------------
Mellon Bank, N.A. 10,000,000.00 5.1282051282%
-------------------------------------------- ---------------- ---------------
Xxxxxx Xxxxxxx Bank 10,000,000.00 5.1282051282%
-------------------------------------------- ---------------- ---------------
Total: $195,000,000.00 100%
-------------------------------------------- ---------------- ---------------
SCHEDULE 1.1(c)
EXISTING LETTERS OF CREDIT
--------------------------
ISSUER: XX Xxxxxx Xxxxx Bank
$3,000,000.0 Expiration Date: January 4, 2003 L/C No. P-360138
---------------------------------------------------------------------
Beneficiary: The California Power Exchange Corporation
000 Xxxxx Xxx Xxxxxx Xxx 000
Xxxxxxxx, Xxxxxxxxxx 00000-0000
$500,000.00 Expiration Date: March 11, 2003 L/C No. P-227635
---------------------------------------------------------------------
Beneficiary: California Independent System Operator Corporation
Blue Xxxxx Xxxx
Xxxxxx, Xxxxxxxxxx 00000
SCHEDULE 6.18
MATERIAL LEASES
---------------
Page 1
Description Expiration Annual Rent
----------- ---------- -----------
Palo Verde Unit 1
Facility Lease dated as of December 16, 1985 between 1/15/2015 $ 5,580,122.54
PNM and State Street Bank and Trust Company,( as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of December 16, 1985, with MFS
Leasing Corp. as Owner Participant, as amended.
Facility Lease dated as of December 16, 1985 between 1/15/2015 $ 15,693,862.76
PNM and State Street Bank and Trust Company, (as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of December 16, 1985, with Daimler
Chrysler Services North America LLC (as successor to Chrysler
Financial Corporation), as Owner Participant, as amended.
Facility Lease dated as of December 15, 1986 between 1/15/2015 $ 4,757,769.00
PNM and State Street Bank and Trust Company, (as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of December 15, 1986, with Palo
Verde 1- PNM [December 75] Corporation (successor-in-interest
to Chase Manhattan Realty Leasing Corporation), as Owner
Participant (Unit 1), as amended.
Facility Lease dated as of July 31, 1986 between 1/15/2015 $ 6,974,313.00
PNM and State Street Bank and Trust Company, (as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of July 31, 1986, with Palo
Verde 1- PNM [August 50] Corporation (successor-in-interest
to Chase Manhattan Realty Leasing Corporation), as Owner
Participant (Unit 1), as amended.
Total - Xxxx 0 $ 33,006.067.10
SCHEDULE 6.18
MATERIAL LEASES
---------------
Page 2
Description Expiration Annual Rent
----------- ---------- -----------
Palo Verde Unit 2
Facility Lease dated as of August 12, 1986 between 1/15/2016 $ 5,742,060.00
PNM and State Street Bank and Trust Company,( as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of August 12, 1986, with MFS
Leasing Corp. as Owner Participant, as amended.
Facility Lease dated as of August 12, 1986 between 1/15/2016 $ 9,958,478.04
PNM and State Street Bank and Trust Company, (as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of August 12, 1986, with CGI
Capital, Inc., as Owner Participant, as amended.
Facility Lease dated as of August 12, 1986 between 1/15/2016 $ 9,569,653.00
PNM and State Street Bank and Trust Company, (as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of August 12, 1986, with Palo Verde
Leasing Corporation (successor-in-interest to First Chicago Lease
Holdings, Inc.) as Owner Participant, as amended.
Facility Lease dated as of August 12, 1986 between 1/15/2016 $ 4,743,012.00
PNM and State Street Bank and Trust Company, (as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of August 12, 1986, with MFS
(successor-in-interest to Beneficial Leasing Group, Inc.),
as Owner Participant, as amended.
Facility Lease dated as of December 15, 1986 between 1/15/2016 $ 3,272,560.40
PNM and State Street Bank and Trust Company, (as successor
to The First National Bank of Boston), as Owner Trustee under
a Trust Agreement dated as of December 15, 1986, with Palo
Verde 2- PNM [December 35] Corporation (successor-in-interest
to Chase Manhattan Realty Leasing Corporation), as Owner
Participant (Unit 2), as amended.
Total - Xxxx 0 $ 33,285.763.44
SCHEDULE 6.18
MATERIAL LEASES
---------------
Page 3
Description Expiration Annual Rent
----------- ---------- -----------
Eastern Interconnection Project (EIP)
Amended and Restated Lease dated as of September 1, 4/1/2015 $ 4,009,766.52*
1993, between PNM as Lessee, and State Street Bank $ 4,487,119.64
and Trust Company,( as successor to The First National
Bank of Boston), as Owner Trustee under a Trust
Agreement dated as of January 2, 1985, with DCC
Project Finance Two, Inc., as Lessor.
Amended and Restated Lease dated as of September 1, 4/1/2015 $ 2,675,739.30*
1993, between PNM as Lessee, and State Street Bank $ 2,844,913.50
and Trust Company,( as successor to The First National
Bank of Boston), as Owner Trustee under a Trust
Agreement dated as of January 2, 1985, with General
Foods Credit Corporation, as Lessor.
Total EIP $ 6, 685,505.82*
$ 7,332,033.14
* 1994 Only
SCHEDULE 6.19
MATERIAL LEASE INTEREST PAYMENTS AND DISCOUNT RATE
Schedule 11.1
Notices
-------
PUBLIC SERVICE COMPANY OF NEW MEXICO:
Public Service Company of New Mexico
000 Xxxxxx Xxxxxx, XX 0000
Xxxxxxxxxxx, XX 00000
Attention: Xxxx Xxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: xxxxxx@xxx.xxx
ADMINISTRATIVE AGENT:
Administrative Agent's Office
-----------------------------
(for payments and Requests for Credit Extensions):
Bank of America, N.A.
Bank of America Plaza
000 Xxxx Xx., 00xx Xxxxx
Mail Code: TX1-492-14-14
Xxxxxx, XX 00000-0000
Attention: Xxxxxxxxx X. Xxxx
Telephone: 000.000.0000
Facsimile: 214.290.9653
Electronic Mail: xxxxxxxxx.x.xxxx@xxxxxxxxxxxxx.xxx
Account No.: 1292000883
Ref: Public Service Co of New Mexico
ABA# 000000000
Other Notices as Administrative Agent:
-------------------------------------
Bank of America, N.A.
Agency Management
Bank of America Plaza
000 Xxxx Xx., 00xx Xxxxx
Mail Code: TX1-492-14-11
Xxxxxx, XX 00000-0000
Attention: Xxxxx Xxxxxx
Telephone: 000.000.0000
Facsimile: 214.290.9520
Electronic Mail: xxxxx.xxxxxx@xxxxxxxxxxxxx.xxx
L/C ISSUER:
Bank of America, N.A.
Trade Operations-Los Angeles #22621
000 X. Xxxxxxx Xxxxxx, 00xx Xxxxx
Mail Code: CA9-703-19-23
Xxx Xxxxxxx, XX 00000-0000
Attention: Xxxxxx Xxxx
Vice President
Telephone: 000.000.0000
Facsimile: 213.345.6694
Electronic Mail: Xxxxxx.Xxxx@xxxxxxxxxxxxx.xxx
LENDERS:
Bank of America, N.A.
Bank of America Corporate Center
000 X. Xxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxx, XX 00000
Attn: Xxxxxxxx X. Xxxxxxxxxx
Telephone: 000.000.0000
Facsimile: 704.386.1319
Electronic Mail: xxxxxxxx.x.xxxxxxxxxx@xxxxxxxxxxxxx.xxx
Bank of Albuquerque, N.A.
000 Xxxxx Xxxxxx XX, Xxxxx 0000
Xxxxxxxxxxx, XX 00000
Attn: Xxxxxxx X. Xxxxxxx
Telephone: 000.000.0000
Facsimile: 505.222.8481
Electronic Mail: xxxxxxxx@xxxx.xxx
Mellon Bank, N.A.
One Mellon Center
Room 151-4530
Xxxxxxxxxx, XX 00000
Attn: Xxxx X. Xxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: xxxxxx.xx@xxxxxx.xxx
Xxxxxx Xxxxxxx Bank
000 Xxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx XxXxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000/1866
Electronic Mail: Xxxxxx.XxXxxxxx@xxxxxxxxxxxxx.xxx
Compass Bank
0000 Xxxxxxxxx Xxxx., XX
Xxxxx 000
Xxxxxxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: xxxxx.xxxxxxxx@xxxxxxxxxx.xxx
Citibank NA
000 Xxxxxxxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxxx
Telephone: 000-000-0000
Facsimile: TBD
Electronic Mail: Xxxxxx.x.xxxx@xxxxxxxxx.xxx
Fleet Xxxxxxxx Xxxx
Xxxxxx/Xxxxxxxxx, XX, XX 00000X
000 Xxxxxxx Xxxxxx
Xxxxxx, XX 00000
Attn: Xxxxxxx Xxxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: xxxxxxx_x_xxxxxxx@xxxxx.xxx
---------------------------
Bank of the West
000 Xxxxxxxxx XX, 00xx Xxxxx
Xxxxxxxxxxx, XX 00000
Attn: X. Xxxxxxx Steel
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: xxxxxx@xxxxxxxxxxxxx.xxx
Xxxxx Fargo Bank, N.A.
000 Xxxxx Xxxx. XX
XXX X0000-000
Xxxxxxxxxxx, XX 00000
Attn: Xxxxxxx X. Xxxxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: xxxxxxxx@xxxxxxxxxx.xxx
Wachovia Bank, National Association
000 X. Xxxxxxx Xxxxxx
Xxxxxxxxx, XX 00000
Attn: Xxx Xxxxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: Xxx.xxxxx@xxxxxxxx.xxx
JPMorgan Chase Bank
000 Xxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxxx Xxx
Telephone: 000-000-0000
Facsimile: 000-000-0000
Electronic Mail: Xxxxxx.Xxx@xxxxxxxx.xxx
EXHIBIT 2.1(b)
FORM OF
NOTICE OF BORROWING
-------------------
TO: BANK OF AMERICA, N.A., as Administrative Agent
RE: Credit Agreement dated as of December 19, 2002 among Public
Service Company of New Mexico (the "Borrower"), Bank of America,
N.A., as Administrative Agent, and the Lenders identified
therein (as the same may be amended, modified, extended or
restated from time to time, the "Credit Agreement")
DATE: _____________, ______
1. This Notice of Borrowing is made pursuant to the terms of the Credit
Agreement. All capitalized terms used herein unless otherwise defined
shall have the meanings set forth in the Credit Agreement.
2. Please be advised that the Borrower is requesting Revolving Loans on
the terms set forth below:
(a) Principal amount of requested
Revolving Loans $___________________
(b) Date of requested Revolving
Loans ___________________
(c) Interest rate applicable to the
requested Revolving Loans:
(i) ________Base Rate
(ii) ________Adjusted Eurodollar Rate for an
Interest Period of:
________ one month
________ two months
________ three months
________ six months
3. Subsequent to the funding of the requested Revolving Loan, the
aggregate amount of Revolving Loans outstanding plus the aggregate
amount of L/C Obligations outstanding will be $________________ which
is less than or equal the Revolving Committed Amount.
4. The representations and warranties made by the Borrower in any Credit
Document are true and correct in all material respects at and as if
made on the date of the requested Revolving Loans except to the extent
they expressly relate to an earlier date.
5. No Default or Event of Default exists or shall be continuing either
prior to or after giving effect to the Revolving Loans made pursuant to
this Notice of Borrowing.
PUBLIC SERVICE COMPANY OF NEW MEXICO,
a New Mexico corporation
By:
----------------------------------
Name:
--------------------------------
Title:
-------------------------------
Exhibit 2.1(e)
FORM OF
REVOLVING NOTE
--------------
Lender: ______________ _____________, 2002
FOR VALUE RECEIVED, PUBLIC SERVICE COMPANY OF NEW MEXICO, a New Mexico
corporation (the "Borrower"), hereby promises to pay to the order of the Lender
referenced above (the "Lender"), at the Administrative Agent's Office set forth
in that certain Credit Agreement dated as of December 19, 2002 (as amended,
modified, extended or restated from time to time, the "Credit Agreement") among
the Borrower, the Lenders party thereto (including the Lender) and Bank of
America, N.A., as Administrative Agent (the "Administrative Agent") (or at such
other place or places as the holder of this Revolving Note may designate), the
aggregate unpaid principal amount of the Revolving Loans made by the Lender to
the Borrower under the Credit Agreement, in lawful money and in immediately
available funds, on the dates and in the principal amounts provided in the
Credit Agreement, and to pay interest on the unpaid principal amount of each
Revolving Loan made by the Lender, at such office, in like money and funds, for
the period commencing on the date of each Revolving Loan until each Revolving
Loan shall be paid in full, at the rates per annum and on the dates provided in
the Credit Agreement.
This Note is one of the Revolving Notes referred to in the Credit
Agreement and evidences Revolving Loans made by the Lender thereunder.
Capitalized terms used in this Revolving Note have the respective meanings
assigned to them in the Credit Agreement and the terms and conditions of the
Credit Agreement are expressly incorporated herein and made a part hereof.
The Credit Agreement provides for the acceleration of the maturity of
the Revolving Loans evidenced by this Revolving Note upon the occurrence of
certain events (and for payment of collection costs in connection therewith) and
for prepayments of Revolving Loans upon the terms and conditions specified
therein. In the event this Revolving Note is not paid when due at any stated or
accelerated maturity, the Borrower agrees to pay, in addition to principal and
interest, all costs of collection, including reasonable attorney fees.
The date, amount, type, interest rate and duration of Interest Period
(if applicable) of each Revolving Loan made by the Lender to the Borrower, and
each payment made on account of the principal thereof, shall be recorded by the
Lender on its books; provided that the failure of the Lender to make any such
recordation or endorsement shall not affect the obligations of the Borrower to
make a payment when due of any amount owing under the Credit Agreement or under
this Revolving Note in respect of the Revolving Loans to be evidenced by this
Revolving Note, and each such recordation or endorsement shall be prima facie
evidence of such information, absent manifest error.
Except as permitted by Section 11.3(b) of the Credit Agreement, this
Revolving Note may not be assigned by the Lender to any other Person.
THIS REVOLVING NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, the Borrower has caused this Revolving Note to be
executed as of the date first above written.
PUBLIC SERVICE COMPANY OF NEW MEXICO,
a New Mexico corporation
By:
---------------------------------
Name:
-------------------------------
Title:
------------------------------
EXHIBIT 2.3
FORM OF NOTICE OF CONTINUATION/CONVERSION
-----------------------------------------
TO: BANK OF AMERICA, N.A., as Administrative Agent
RE: Credit Agreement dated as of December 19, 2002 among Public Service
Company of New Mexico (the "Borrower"), Bank of America, N.A., as
Administrative Agent, and the Lenders named therein (as the same may
be amended, modified, extended or restated from time to time, the
"Credit Agreement")
DATE: _____________, 200_
--------------------------------------------------------------------------------
1. This Notice of Continuation/Conversion is made pursuant to the terms of
the Credit Agreement. All capitalized terms used herein unless
otherwise defined shall have the meanings set forth in the Credit
Agreement.
2. Please be advised that the Borrower is requesting that a portion of the
current outstanding Revolving Loans in the amount of $ currently
accruing interest at
be extended or converted as of _____________, 200__ at the interest
rate option set forth in paragraph 3 below.
3. The interest rate option applicable to the extension or conversion of
all or part of the existing Revolving Loans (as set forth above) shall
be:
a. ________ the Base Rate
b. ________ the Adjusted Eurodollar Rate for an Interest Period of:
________ one month
________ two months
________ three months
________ six months
4. As of the date hereof, no Default or Event of Default has occurred and
is continuing.
PUBLIC SERVICE COMPANY OF NEW MEXICO,
a New Mexico corporation
By:
---------------------------------
Name:
-------------------------------
Title:
------------------------------
EXHIBIT 7.1(c)
FORM OF
COMPLIANCE CERTIFICATE
----------------------
TO: BANK OF AMERICA, N.A., as Administrative Agent
RE: Credit Agreement dated as of December 19, 2002 among Public
Service Company of New Mexico (the "Borrower"), Bank of America,
N.A. as Administrative Agent, and the Lenders named therein (as
the same may be amended, modified, extended or restated from time
to time, the "Credit Agreement")
DATE: _____________, 200__
________________________________________________________________________________
Pursuant to the terms of the Credit Agreement, I, ______________, Chief
Financial Officer of Public Service Company of New Mexico, hereby certify on
behalf of the Borrower that, as of the quarter ending ________, 200__, the
statements below are accurate and complete in all respects (all capitalized
terms used below shall have the meanings set forth in the Credit Agreement):
a. Attached hereto as Schedule 1 are calculations (calculated
as of the date of the financial statements referred to in paragraph c.
below) demonstrating compliance by the Borrower with the financial
covenants contained in Section 7.2 of the Credit Agreement.
b. No Default or Event of Default exists under the Credit
Agreement, except as indicated on a separate page attached hereto,
together with an explanation of the action taken or proposed to be
taken by the Borrower with respect thereto.
c. The quarterly/annual financial statements for the fiscal
quarter/year ended __________, 200__ which accompany this certificate
fairly present in all material respects the financial condition of the
Borrower and its Subsidiaries and have been prepared in accordance with
GAAP, subject to changes resulting from normal year-end audit
adjustments and except that the quarterly financial statements have
fewer footnotes than annual statements.
PUBLIC SERVICE COMPANY OF NEW MEXICO,
a New Mexico corporation
By:
---------------------------------
Name:
-------------------------------
Title:
------------------------------
SCHEDULE 1 TO COMPLIANCE CERTIFICATE
------------------------------------
A. Compliance with Section 7.2(a):
Debt to Capitalization
----------------------
1. Consolidated Indebtedness* $___________
2. Consolidated Capitalization* $___________
3. Debt to Capitalization Ratio
(Line 1 / Line 2) _____:_____
Maximum Allowed: Line A.3 shall be less than
or equal to 0.65 to 1.0
B. Compliance with Section 7.2(b):
Interest Coverage Ratio
-----------------------
1. Consolidated EBITDA
(See Exhibit A attached hereto) $___________
2. Consolidated Interest Expense $___________
3. Interest Coverage Ratio
(Line 1 / Line 2) _____:_____
Minimum Required: Line B.3 shall be greater than
or equal to 3.00 to 1.0
__________________
* For purposes of such calculation, the portion of Consolidated Indebtedness
attributable to obligations under Material Leases shall be the net present value
(using (i) the discount rate (A) set forth in Schedule 6.19 of the Credit
Agreement, so long as such Schedule 6.19 specifies the same relevant discount
rate as is used in calculating such net present value provided to Xxxxx'x and
S&P or (B) the discount rate used in calculating such net present value provided
to Xxxxx'x and S&P or (ii) any such other rate as shall be proposed by the
Borrower (and agreed upon by the Required Lenders) of all amounts payable under
the Material Leases.
Exhibit A
to Schedule 1
to Exhibit 7.2(a)
Calculation Schedule to Compliance Certificate
As of __________________
------------------------ ---------- --------- ---------- ---------- ----------
Twelve
Months Quarter Quarter Quarter Quarter
Consolidated EBITDA Ended Ended Ended Ended Ended
-------- -------- -------- -------- --------
------------------------ ---------- --------- ---------- ---------- ----------
Consolidated Net Income
------------------------ ---------- --------- ---------- ---------- ----------
+ Extraordinary Losses
------------------------ ---------- --------- ---------- ---------- ----------
- Extraordinary Gains
------------------------ ---------- --------- ---------- ---------- ----------
+ Consolidated Interest
Expense
------------------------ ---------- --------- ---------- ---------- ----------
+ Taxes
------------------------ ---------- --------- ---------- ---------- ----------
+ Depreciation
------------------------ ---------- --------- ---------- ---------- ----------
+ Amortization
------------------------ ---------- --------- ---------- ---------- ----------
+ Other Non-Cash Losses
------------------------ ---------- --------- ---------- ---------- ----------
- Other Non-Cash Gains
------------------------ ---------- --------- ---------- ---------- ----------
= Consolidated EBITDA
------------------------ ---------- --------- ---------- ---------- ----------
Exhibit 11.3(b)
FORM OF
ASSIGNMENT AND ASSUMPTION
-------------------------
This Assignment and Assumption (the "Assignment and Assumption") is
dated as of the Effective Date set forth below and is entered into by and
between ______________ (the "Assignor") and _______________________ (the
"Assignee"). Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the
"Credit Agreement"), receipt of a copy of which is hereby acknowledged by the
Assignee. The Standard Terms and Conditions set forth in Schedule 1 attached
hereto (the "Standard Terms and Conditions") are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and
Assumption as if set forth herein in full.
For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
the Administrative Agent as contemplated below (a) all of the Assignor's rights
and obligations in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified below of all of such
outstanding rights and obligations of the Assignor under the respective
facilities identified below (including without limitation any Letters of Credit,
guarantees, and swingline loans included in such facilities) and (b) to the
extent permitted to be assigned under applicable law, all claims, suits, causes
of action and any other right of the Assignor (in its capacity as a Lender)
against any Person, whether known or unknown, arising under or in connection
with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or
related to any of the foregoing, including, but not limited to, contract claims,
tort claims, malpractice claims, statutory claims and all other claims at law or
in equity related to the rights and obligations sold and assigned pursuant to
clause (a) above (the rights and obligations sold and assigned pursuant to
clauses (a) and (b) above being referred to herein collectively as, the
"Assigned Interest"). Such sale and assignment is without recourse to the
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by the Assignor.
1. Assignor: ______________________________
2. Assignee: ______________________________
and is an Affiliate/Approved Fund
of _________________
3. Borrower: Public Service Company of
New Mexico
4. Administrative Agent: Bank of America, N.A. as the Administrative
Agent under the Credit Agreement
5. Credit Agreement: Credit Agreement
dated as of December 19, 2002 among
Public Service Company of New
Mexico, as Borrower, the Lenders
party thereto and Bank of America,
N.A., as Administrative Agent for
the Lenders
6. Assigned Interest:
------------------------ -------------------------- ----------------------
Aggregate Amount of Amount of Commitment/Loans Percentage Assigned of
Commitment/Loans for all Assigned Commitment/Loans
Lenders
------------------------ -------------------------- ----------------------
$ $ %
------------------------ -------------------------- ----------------------
7. After giving effect to the foregoing assignment, the Assignor and the
Assignee shall have the following Commitments, Pro Rata Shares, outstanding
Loans and Participation Interests:
----------- ------------ -------------- ----------------- -------------------
Commitments Pro Rata Share Outstanding Participation
Revolving Interests in
Loans Letters of Credit
----------- ------------ -------------- ----------------- -------------------
Assignor
----------- ------------ -------------- ----------------- -------------------
Assignee
----------- ------------ -------------- ----------------- -------------------
8. Trade Date: ______________
Effective Date: _____________ ___, 200__
The terms set forth in this Assignment and Assumption are hereby agreed to:
ASSIGNOR
--------
[NAME OF ASSIGNOR]
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
ASSIGNEE
--------
[NAME OF ASSIGNEE]
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
Consented to and Accepted:
BANK OF AMERICA, N.A.,
as Administrative Agent and L/C Issuer
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
Consented to:
PUBLIC SERVICE COMPANY OF NEW MEXICO
By:
-----------------------------------------
Name:
---------------------------------------
Title:
--------------------------------------
Schedule1
TERMS AND CONDITIONS FOR
ASSIGNMENT AND ASSUMPTION
1. Representations and Warranties.
1.1 Assignor. The Assignor (a) represents and warrants that
(i) it is the legal and beneficial owner of the Assigned Interest, (ii)
the Assigned Interest is free and clear of any lien, encumbrance or
other adverse claim and (iii) it has full power and authority, and has
taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and
(b) assumes no responsibility with respect to (i) any statements,
warranties or representations made in or in connection with the Credit
Agreement or any other Credit Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the
Credit Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any
other Person obligated in respect of any Credit Document or (iv) the
performance or observance by the Borrower, any of its Subsidiaries or
Affiliates or any other Person of any of their respective obligations
under any Credit Document.
1.2. Assignee. The Assignee (a) represents and warrants that
(i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby and to become a Lender
under the Credit Agreement, (ii) it meets all requirements of an
Eligible Assignee under the Credit Agreement (subject to receipt of
such consents as may be required under the Credit Agreement), (iii)
from and after the Effective Date, it shall be bound by the provisions
of the Credit Agreement as a Lender thereunder and, to the extent of
the Assigned Interest, shall have the obligations of a Lender
thereunder, (iv) it has received a copy of the Credit Agreement,
together with copies of the most recent financial statements delivered
pursuant to Section 7.1 thereof, as applicable, and such other
documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and
Assumption and to purchase the Assigned Interest on the basis of which
it has made such analysis and decision independently and without
reliance on the Administrative Agent or any other Lender, and (v) if it
is a foreign lender, attached to the Assignment and Assumption is any
documentation required to be delivered by it pursuant to the terms of
the Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on the
Administrative Agent, the Assignor or any other Lender, and based on
such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking
action under the Credit Documents, and (ii) it will perform in
accordance with their terms all of the obligations which by the terms
of the Credit Documents are required to be performed by it as a Lender.
2. Payments. From and after the Effective Date, the Administrative
Agent shall make all payments in respect of the Assigned Interest (including
payments of principal, interest, fees and other amounts) to the Assignor for
amounts which have accrued to but excluding the Effective Date and to the
Assignee for amounts which have accrued from and after the Effective Date.
3. General Provisions. This Assignment and Assumption shall be binding
upon, and inure to the benefit of, the parties hereto and their respective
successors and assigns. This Assignment and Assumption may be executed in any
number of counterparts, which together shall constitute one instrument. Delivery
of an executed counterpart of a signature page of this Assignment and Assumption
by telecopy shall be effective as delivery of a manually executed counterpart of
this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of New York.
