US$44,200,000 FACILITY AGREEMENT dated 27 November 2007 for PT INDOSAT TBK as Borrower arranged by HSBC FRANCE with HSBC FRANCE as Original Lender and HSBC FRANCE acting as Facility Agent and HSBC FRANCE acting as Security Agent SINOSURE TERM FACILITY...
Exhibit 15.10
US$44,200,000
dated 27 November 2007
for
as Borrower
arranged by
HSBC FRANCE
with
HSBC FRANCE
as Original Lender
and
HSBC FRANCE
acting as Facility Agent
and
HSBC FRANCE
acting as Security Agent
SINOSURE TERM FACILITY AGREEMENT
Ref: L-142434
CONTENTS
CLAUSE | PAGE | |||
SECTION 1 | ||||
DEFINITIONS AND INTERPRETATION | ||||
1. |
Definitions and Interpretation |
3 | ||
SECTION 2 | ||||
THE FACILITY | ||||
2. |
The Facility |
19 | ||
3. |
Purpose |
19 | ||
4. |
Conditions of Utilisation |
19 | ||
SECTION 3 | ||||
UTILISATION | ||||
5. |
Utilisation |
21 | ||
SECTION 4 | ||||
REPAYMENT, PREPAYMENT AND CANCELLATION | ||||
6. |
Repayment |
23 | ||
7. |
Prepayment and Cancellation |
23 | ||
SECTION 5 | ||||
COSTS OF UTILISATION | ||||
8. |
Interest |
26 | ||
9. |
Interest Periods |
26 | ||
10. |
Changes to the calculation of interest |
27 | ||
11. |
Designation of Restricted and Unrestricted Subsidiaries |
28 | ||
12. |
Fees and Sinosure Premium |
29 | ||
SECTION 6 | ||||
ADDITIONAL PAYMENT OBLIGATIONS | ||||
13. |
Tax Gross Up and Indemnities |
30 | ||
14. |
Increased Costs |
32 | ||
15. |
Other Indemnities |
33 | ||
16. |
Mitigation by the Lenders |
34 | ||
17. |
Costs and Expenses |
34 | ||
SECTION 7 | ||||
REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT | ||||
18. |
Representations |
36 | ||
19. |
Information Undertakings |
39 | ||
20. |
Financial Covenants |
41 | ||
21. |
General Undertakings |
41 | ||
22. |
Events of Default |
47 | ||
SECTION 8 | ||||
CHANGES TO PARTIES | ||||
23. |
Changes to the Lenders |
51 | ||
24. |
Changes to the Borrower |
55 |
i
SECTION 9 | ||||
THE FINANCE PARTIES | ||||
25. |
Role of the Facility Agent, Security Agent and the Arranger |
56 | ||
26. |
Conduct of Business by the Finance Parties |
61 | ||
27. |
Sharing among the Finance Parties |
61 | ||
SECTION 10 | ||||
ADMINISTRATION | ||||
28. |
Payment Mechanics |
64 | ||
29. |
Set-Off |
66 | ||
30. |
Notices/Communications |
66 | ||
31. |
Calculations and Certificates |
68 | ||
32. |
Partial Invalidity |
68 | ||
33. |
Remedies and Waivers |
68 | ||
34. |
Amendments and Waivers |
68 | ||
35. |
Counterparts |
70 | ||
SECTION 11 | ||||
GOVERNING LAW AND ENFORCEMENT | ||||
36. |
Governing Law |
71 | ||
37. |
Arbitration |
71 |
THE SCHEDULES
SCHEDULE | PAGE | |||
SCHEDULE 1 |
Name of Original Lenders |
72 | ||
SCHEDULE 2 |
Conditions Precedent |
73 | ||
SCHEDULE 3 |
Documents Required for Utilisation |
76 | ||
SCHEDULE 4 |
Form of Notice from the Supplier |
77 | ||
SCHEDULE 5 |
Form of Transfer Certificate |
79 | ||
SCHEDULE 6 |
Timetables |
81 | ||
SCHEDULE 7 |
Security Agency Provisions |
82 | ||
SCHEDULE 8 |
Form of Assignment of Insurance Proceeds |
85 | ||
SCHEDULE 9 |
Form of Compliance Certificate |
86 |
ii
THIS FACILITY AGREEMENT (the “Agreement”) is dated 27 November 2007 and made between:
(1) | PT INDOSAT TBK (the “Borrower”); |
(2) | HSBC FRANCE as mandated lead arranger (the “Arranger”); |
(3) | HSBC FRANCE as lender (the “Original Lender”); and |
(4) | HSBC FRANCE as agent of the other Finance Parties (the “Facility Agent”). |
(5) | HSBC FRANCE as security agent of the Finance Parties (the “Security Agent”). |
IT IS AGREED as follows:
SECTION 1
DEFINITIONS AND INTERPRETATION
1. | DEFINITIONS AND INTERPRETATION |
1.1 | Definitions |
In this Agreement:
“Affiliate” of any specified person means:
(a) | any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person, or |
(b) | any other person who is a commissioner or director or officer of: |
(i) | such specified person; |
(ii) | any Subsidiary of such specified person; or |
(iii) | any person described in (a) above. |
For the purposes of this definition, “control” when used with respect to any person means the power to direct the management and policies of such person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing,
“Assignment of Insurance Proceeds” means the document in the form of Schedule 8 (Form of Assignment of Insurance Proceeds).
“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.
“Availability Period” means the period from and including the Initial CPs Satisfaction Date to the earliest to occur of either (i) twenty-four (24) Months thereafter or (ii) the date of full utilisation, cancellation or termination of the Facility.
“Available Commitment” means a Lender’s Commitment at any time minus:
(a) | the amount of its participation in the outstanding Loan at such time; and |
(b) | in relation to any proposed Utilisation, the amount of its participation in any Utilisation that is due to be made on or before the Utilisation Date. |
3
“Available Facility” means the aggregate amount of each Lender’s Available Commitment at any time.
“Break Costs” means the amount (if any) payable under Clause 10.4 (Break Costs).
“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in Paris and Jakarta and if on that day a payment is to be made, New York City.
“Capital Lease Obligation” means any obligation under a lease that is required to be capitalised for financial reporting purposes in accordance with GAAP; and the amount of Debt represented by such obligation shall be the capitalised amount of such obligations determined in accordance with GAAP; and the Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be terminated by the lessee without payment of a penalty. For purposes of Clause 21.8 (Liens), a Capital Lease Obligation shall be deemed secured by a Lien on the Property being leased.
“Capital Stock” means with respect to any person, any shares or other equivalents (however designated) of any class of corporate stock or partnership interests or any other participations, rights, warrants, options or other interests in the nature of an equity interest in such persons, including Preferred Stock, but excluding any debt security convertible or exchangeable into such equity interest.
“Chinese Content” means the portion of the Launch Services Contract Price which is attributable to goods and services of Chinese origin eligible for financing by Sinosure.
“COFACE” means Compagnie Francaise D’Assurance Pour Le Commerce Exterieur, the official export credit agency of the Republic of France.
“COFACE Facility” means the COFACE Facility Agreement dated on or about the date of this Agreement made between (a) the Borrower, (b) HSBC France as arranger, (c) HSBC France as facility agent and (d) the COFACE Lenders, in which the COFACE Lenders have agreed to make available to the Borrower a loan facility in the amount of US$157,242,996.
“COFACE Lender” means any lender as defined under the COFACE Facility.
“Commercial Facility” means the Commercial Facility Agreement dated on or about the date of this Agreement made between (a) the Borrower, (b) The Hongkong and Shanghai Banking Corporation Limited (Jakarta Branch) as arranger, (c) The Hongkong and Shanghai Banking Corporation Limited as facility agent and (d) the lenders, in which the lenders have agreed to make available to the Borrower a loan facility in the amount of [US$27,057,004].
“Commitment” means:
(a) | in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in Schedule 1 (Name of Original Lenders) and the amount of any other Commitment transferred to it under this Agreement; and |
(b) | in relation to any other Lender, the amount of any Commitment transferred to it under this Agreement, to the extent not cancelled, reduced or transferred by it under this Agreement. |
4
“Constructive Total Loss” shall have the meaning ascribed to it in the Contract.
“Compliance Certificate” means a certificate substantially in the form set out in Schedule 9 (Form of Compliance Certificate).
“Contract” means the in-orbit delivery contract entered into between the Supplier and the Borrower as buyer dated 29 June 2007 in respect of a Palapa D Satellite.
“Contract Price” shall have the meaning ascribed to it in the Contract.
“Currency Exchange Protection Agreement” means, in respect of a person, any foreign exchange contract, currency swap agreement, currency option or other similar agreement or arrangement designed to protect such person against fluctuations in currency exchange rates.
“Debt” means, with respect to any person on any date of determination (without duplication):
(a) | the principal of and premium (if any) in respect of debt of such person for money borrowed and debt evidenced by notes, debentures, bonds or other similar instruments for the payment of which such person is responsible or liable which in any such case, bears interest or on which interest accrues; and |
(b) | all obligations of such person in relation to accounts payable to such person’s suppliers which bear interest or on which interest accrues. |
“Default” means an Event of Default under Clause 22 (Events of Default) or any event or circumstance which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.
“Délégation” means an agreement between the Borrower, the Supplier and the Security Agent under which the Supplier and the Borrower direct to the Security Agent the payment of Supplier’s Contract Payments and Termination Payments.
“Disruption Event” means either or both of:
(a) | a material disruption to those payment or communications systems or to those financial markets which are, in each case, required to operate in order for payments to be made in connection with the Facility (or otherwise in order for the transactions contemplated by the Finance Documents to be carried out) which disruption is not caused by, and is beyond the control of, any of the Parties; or |
(b) | the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing that, or any other Party: |
(i) | from performing its payment obligations under the Finance Documents; or |
(ii) | from communicating with other Parties in accordance with the terms of the Finance Documents, (and which (in either such case)) is not caused by, and is beyond the control of, the Party whose operations are disrupted. |
5
“EBITDA” means, for any period, an amount equal to the sum of net consolidated profit plus interest, other operating income and expenses, income tax expense, depreciation and amortisation under GAAP.
“Environmental Claim” means any claim, proceeding or investigation by any person in respect of any Environmental Law.
“Environmental Law” means any applicable law in the Republic of Indonesia which relates to the pollution or protection of the environment or harm to or the protection of human health or the health of animals or plants.
“Environmental Permits” means any permit, licence, consent, approval and other authorisation and the filing of any notification, report or assessment required under any Environmental Law for the operation of the business in the Republic of Indonesia of any member of the Group conducted on or from the properties in the Republic of Indonesia owned or used by the relevant member of the Group.
“Equity” means total assets less minority interests less total liabilities.
“Equity Interests” means all Capital Stock and all warrants or options with respect to, or other rights to purchase, Capital Stock, but excluding Debt convertible into equity.
“Event of Default” means any event or circumstance specified as such in Clause 22 (Events of Default).
“Facility” means the USD term loan facility provided under this Agreement as described in Clause 2 (The Facility).
“Facility Office” means the office or offices notified by a Lender to the Facility Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five (5) Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement.
“Fair Market Value” means, with respect to any Property, the price that could be negotiated in an arms-length free market transaction, for cash, between a willing seller and a willing buyer neither of whom is under undue pressure or compulsion to complete the transaction. Fair Market Value shall be determined, except as otherwise provided:
(a) | if such Property has a Fair Market Value equal to or less than US$ 5 million, by any Officer of the Borrower; or |
(b) | if such Property has a Fair Market Value in excess of US$5 million, by a majority of the board of directors of the Borrower and evidenced by a board resolution of the Borrower, dated within 30 days of the relevant transaction, delivered to the Facility Agent. |
“Fee Letter” means any letter dated on or about the date of this Agreement between the Arranger and the Borrower setting out the structuring fee referred to in Clause 12 (Fees and Sinosure Premium).
“Final Maturity Date” means the tenth anniversary date of the Starting Date of Credit.
6
“Finance Documents” means:
(a) | this Agreement; |
(b) | the Délégation; |
(c) | the Assignment of Insurance Proceeds; |
(d) | any Fee Letter; and |
(e) | any other document designated as such by the Arranger and by the Borrower, |
and each being a “Finance Document”.
“Finance Parties” means:
(a) | the Facility Agent; |
(b) | the Arranger; |
(c) | the Lender; or |
(d) | the Security Agent, |
with each being a “Finance Party”
“First Repayment Date” means the date falling six (6) Months after the Starting Date of Credit.
“GAAP” means generally accepted accounting principles in Indonesia.
“Group” means the Borrower and its Subsidiaries.
“guarantee” means any obligation, contingent or otherwise, of any person directly or indirectly guaranteeing any Debt of any other person and any obligation, direct or indirect, contingent or otherwise, of such person:
(a) | to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt of such other person (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take-or-pay or to maintain financial statement conditions or otherwise), or |
(b) | entered into for the purpose of assuring in any other manner the obligee against loss in respect thereof (in whole or in part), |
provided, however, that the term “guarantee” shall not include:
(i) | endorsements for collection or deposit in the ordinary course of business; or |
(ii) | a contractual commitment by one person to invest in another person if, as a result of such commitment, such other person is merged or consolidated into, or transfers all or substantially all of its property to the Borrower or a Restricted Subsidiary, provided that such other person’s primary business is the same or substantially similar to that of the Borrower or such Restricted Subsidiary (as the case may be). |
7
“Hedging Obligation” of any person means any obligation of such person pursuant to any Interest Rate Agreement, Currency Exchange Protection Agreement or any other similar agreement or arrangement.
“Incur” means, with respect to any Debt or other obligation of any person, to create, issue, incur, extend, assume, guarantee or become liable in respect of such Debt or other obligation or the recording, as required pursuant to GAAP or otherwise, of any such Debt or obligation on the balance sheet of such person (and “Incurrence” and “Incurred” shall have meanings correlative to the foregoing); provided, however, that any Debt or Capital Stock of a person existing at the time such person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Subsidiary at the time it becomes a Subsidiary; provided further, however, that a change in GAAP that results in an obligation of such person that exists at such time, and is not theretofore classified as Debt, becoming Debt shall not be deemed an Incurrence of such Debt.
“Indosat Towers” means telecommunication tower structures owned by the Borrower designed and constructed specially to support antennae for transmission or reception and retransmission of electronic signals in the Telecommunication Business, including associated civil and mechanical structure and interests in the real property on which any such tower structure is located.
“Insurance Proceeds” means all proceeds the Borrower may receive, or become entitled to, under the Launch Insurance and In-Orbit Insurance applicable to the Replacement Satellite.
“Initial CPs Satisfaction Date” means the date on which all of the documents and evidence referred to in Schedule 2 (Conditions Precedent) have been received or waived (as the case may be) by the Facility Agent, such date to be confirmed by a certificate of the Facility Agent.
“Interest Expense” means for any period, interest expense on Debt.
“Interest Payment Date” means the last day of an Interest Period.
“Interest Period” means, in relation to the Loan, each period determined in accordance with Clause 9 (Interest Periods) and in relation to an Unpaid Sum, each period determined in accordance with Clause 8.3 (Default interest).
“Interest Rate Agreement” means, for any person, any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement designed to protect against fluctuations in interest rates or reduce borrowing costs and/or costs of Currency Exchange Protection Agreement.
“Investment Grade Ratings” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, provided that no negative watch is placed on such rating.
“Launch Insurance and In-Orbit Insurance” shall have the meaning ascribed to the term “Launch and In-Orbit Insurance” in the Contract.
8
“Launch Services Contract” means the launch services contract dated 31 July 2007 between the Supplier and the Launch Service Provider in relation to the launch of the Satellite pursuant to a launch schedule consistent with the requirements of the Contract.
“Launch Services Contract Price” means the amount of fees for launch services payable by the Supplier to the Launch Service Provider pursuant to the Launch Services Contract, being US$52,000,000 in aggregate.
“Launch Service Provider” means Beijing Talentway Technology Corporation, a company incorporated and existing under PRC law.
“Lenders” mean:
(a) | the Original Lender; and |
(b) | any bank or financial institution which has become a Party in accordance with Clause 23 (Changes to the Lenders), which in each case has not ceased to be a Party in accordance with the terms of this Agreement. |
“LIBOR” means, in relation to any Utilisation:
(a) | the applicable Screen Rate; or |
(b) | (if no Screen Rate is available for the currency or Interest Period of that Utilisation) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility Agent at its request quoted by the Reference Banks to leading banks in the Relevant Interbank Market, |
as of the Specified Time on the Quotation Day for the offering of deposits in the currency of that Utilisation and for a period comparable to the Interest Period for that Utilisation.
“Lien” means, with respect to any Property of any person, any mortgage or deed of trust, pledge, hypothecation, assignment, deposit arrangement, security interest, lien, charge, easement (other than any easement not materially impairing usefulness or marketability), encumbrance, preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever on or with respect to such Property (including any Capital Lease Obligation, conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing or any Sale and Leaseback Transaction).
“Loan” means the aggregate principal amount outstanding for the time being of the Utilisations made under the Facility.
“London Business Day” means a day (other than a Saturday or Sunday) on which deposits may be dealt in on the Relevant Interbank Market and banks are open for general business in London.
“Majority Lenders” means:
(a) | if there is no Loan outstanding, a Lender or Lenders whose Commitments aggregate more than 50% of the Total Commitments (or, if the Total Commitments have been reduced to zero, aggregated more than 50% of the Total Commitments immediately prior to the reduction); or |
9
(b) | at any other time, a Lender or Lenders whose participations in the Loan then outstanding aggregate more than 50% of the Loan outstanding. |
“Margin” means 0.35 per cent. per annum.
“Material Adverse Effect” means a material adverse effect on:
(a) | the business, assets, operations or financial condition of the Borrower or of the Group taken as a whole; |
(b) | the ability of the Borrower to perform its obligations under the Finance Documents; or |
(c) | the validity or enforceability of the Finance Documents or the rights or remedies of any Finance Party under the Finance Documents. |
“Material Licence” means, with respect to the Borrower or a Restricted Subsidiary, any licence, authorisation or concession to operate its current business, which, at the time of determination, accounts for more than 10% of the EBITDA for the four full fiscal quarters next preceding the date of determination for which consolidated financial statements are available.
“Month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:
(a) | if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; and |
(b) | if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month. |
The above rules will only apply to the last Month of any period.
“Moody’s” means Xxxxx’x Investors Service, Inc. or any successor to the rating agency business thereof.
“Non-Chinese Content” means the portion of the Launch Services Contract Price which is attributable to goods and services other than those of Chinese origin.
“Non-Recourse Debt” means Debt:
(a) | as to which neither the Borrower nor any of its Restricted Subsidiaries (1) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Debt) (other than pledges of Equity Interests of Unrestricted Subsidiaries for the benefit of lenders of Unrestricted Subsidiaries), (2) is directly or indirectly liable as a guarantor or otherwise or (3) constitutes the lender; and |
(b) | no default with respect to which (including any rights that the holders of the Debt may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Debt of the Borrower or any of its Restricted Subsidiaries to declare a default on such other Debt or cause the payment of the Debt to be accelerated or payable prior to its Stated Maturity. |
“Officer” means the President Director, Deputy President Director or any Director of the Borrower.
10
“Original Financial Statements” means in relation to the Borrower, its audited financial statements for its financial year ended 31 December 2006.
“Partial Loss” shall have the meaning ascribed to it in the Contract.
“Party” means a party to this Agreement.
“Permitted Liens” means:
(a) | Liens to secure Purchase Money Debt of the Borrower or any Restricted Subsidiary; provided that: |
(i) | the aggregate principal amount of such Debt subject to such Liens does not exceed 100% of the sum of (i) the Fair Market Value (on the date of the Incurrence thereof) of the applicable Telecommunication Assets, (ii) the Fair Market Value of any services to be provided to the Borrower or such Restricted Subsidiary by the seller of the Telecommunication Assets in connection therewith, (iii) the amount of interest on such Debt permitted to be capitalized during the period of construction and installation of such assets under GAAP and (iv) any fees required to be paid by the Borrower or such Restricted Subsidiary with respect to such Debt; and |
(ii) | any such Lien may not extend to any Property of the Borrower or Restricted Subsidiary, other than the Property acquired, constructed or leased with the proceeds of such Purchase Money Debt and any improvements or accessions to such Property; |
(b) | Liens for taxes, assessments or governmental charges or levies on the Property of the Borrower or any Restricted Subsidiary if the same shall not at the time be delinquent or thereafter can be paid without penalty, or are being contested in good faith and by appropriate proceedings promptly instituted and diligently concluded; provided that any reserve or other appropriate provision that shall be required in conformity with GAAP shall have been made therefor; |
(c) | Liens imposed by law, such as carriers’, warehousemen’s and mechanics’ Liens and other similar Liens, on the Property of the Borrower or any Restricted Subsidiary arising in the ordinary course of business and securing payment of obligations that are not more than 60 days past due or are being contested in good faith and by appropriate proceedings; |
(d) | Liens on the Property of the Borrower or any Restricted Subsidiary Incurred in the ordinary course of business to secure performance of obligations with respect to statutory or regulatory requirements, performance or return-of-money bonds, surety bonds or other obligations of a like nature and incurred in a manner consistent with industry practice, in each case which are not Incurred in connection with the borrowing of money, the obtaining of advances or credit or the payment of the deferred purchase price of Property and which do not in the aggregate impair in any material respect the use of Property in the operation of the business of the Borrower and the Restricted Subsidiaries taken as a whole; |
11
(e) | Liens on Property at the time the Borrower or any Restricted Subsidiary acquired such Property, including any acquisition by means of a merger or consolidation with or into the Borrower or any Restricted Subsidiary; provided, however, that any such Lien may not extend to any other Property of the Borrower or any Restricted Subsidiary; provided further, however, that such Liens shall not have been Incurred in anticipation of or in connection with the transaction or series of transactions pursuant to which such Property was acquired by the Borrower or any Restricted Subsidiary; |
(f) | Liens on the Property of a person at the time such person becomes a Restricted Subsidiary; provided, however, that (i) any such Lien may not extend to any other Property of the Borrower or any Restricted Subsidiary that is not a direct Subsidiary of such person and (ii) any such Lien was not Incurred in anticipation of or in connection with the transaction or series of transactions pursuant to which such person became a Restricted Subsidiary; |
(g) | Pledges or deposits by the Borrower or any Restricted Subsidiary under workmen’s compensation laws, unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Debt) or leases to which the Borrower or any Restricted Subsidiary is party, or deposits to secure public or statutory obligations of the Borrower, or deposits for the payment of rent, in each case Incurred in the ordinary course of business; |
(h) | Utility easements, building restrictions and such other encumbrances or charges against real Property as are of a nature generally existing with respect to properties of a similar character; |
(i) | Liens existing on the date of this Agreement not otherwise described in Clauses (a) through (h) above; |
(j) | Liens on the Property of the Borrower or any Restricted Subsidiary to secure any refinancing, in whole or in part, of any Debt secured by Liens referred to in Clauses (e), (f) or (g) above; provided, however, that any such Lien shall be limited to all or part of the same Property that secured the original Lien (together with improvements and accessions to such Property) and the aggregate principal amount of Debt that is secured by such Lien shall not be increased to an amount greater than the sum of: |
(i) | the outstanding principal amount, or, if greater, the committed amount, of the Debt secured by Liens described under Clauses (e), (f) or (g) above at the time the original Lien became a Permitted Lien under the Indenture; and |
(ii) | an amount necessary to pay any fees and expenses, including premiums and defeasance costs, incurred by the Borrower or such Restricted Subsidiary in connection with such refinancing; |
(k) | Liens on the assets of Unrestricted Subsidiaries, or on the Capital Stock of Unrestricted Subsidiaries, that secure Non-Recourse Debt of Unrestricted Subsidiaries; |
(l) | Liens not otherwise permitted by Clauses (a) through (k) above securing Debt not in excess of US$25,000,000 outstanding at any time; and |
12
(m) | Liens encumbering customary initial deposits and margin deposits, netting provisions and setoff rights, in each case securing Debt under Hedging Obligations. |
“PRC” means the People’s Republic of China (for the purpose of this Agreement, excluding the Hong Kong Special Administrative Region, the Macau Special Administrative Region and Taiwan).
“Preferred Stock” means any Capital Stock of a person, however designated, which entitles the holder thereof to a preference with respect to the payment of dividend, or as to the distribution of assets upon any voluntary or involuntary liquidation or dissolution of such person, over share’s of any other class of Capital Stock issued by such person.
“Project” means:
(a) | manufacturing, testing and delivery of the Satellite in-orbit at the orbital location specified in the Contract equipped with 24 standard C-band, 11 extended C-band and 5 Ku-band transponders and other terms and scope of work agreed in the Contract; and |
(b) | operation and maintenance of the Satellite. |
“Project Property” means:
(a) | the Satellite; |
(b) | the Contract and any rights thereunder; and |
(c) | any other assets relating to the Project. |
“Property” means, with respect to any person, any interest of such person in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including Capital Stock in, and other securities of, any other person.
“Purchase Money Debt” means Debt:
(a) | consisting of the deferred purchase price of Telecommunications Assets, conditional sale obligations, obligations under any title retention agreement, other purchase money obligations and obligations in respect of industrial revenue bonds, in each case where the maturity of such Debt does not exceed the anticipated useful life of the Telecommunications Assets being financed; and |
(b) | incurred to finance the acquisition and construction by the Borrower or a Restricted Subsidiary of Telecommunications Assets, including additions and improvements thereto, |
provided, however, that such Debt is Incurred within 180 days after the acquisition and construction of Telecommunications Assets by the Borrower or such Restricted Subsidiary.
“Quotation Day” means, in relation to any period for which an interest rate is to be determined, two London Business Days before the first day of that period.
“Rating Agencies” means Xxxxx’x and S&P.
13
“Reference Banks” means, in relation to LIBOR, the principal London offices of HSBC Bank plc., XX Xxxxxx Chase Bank, N.A. and The Royal Bank of Scotland plc or such other banks as may be appointed by the Facility Agent in consultation with the Borrower.
“Relevant Interbank Market” means the London interbank market.
“Repay” means, in respect of any Debt, to repay, prepay, repurchase, redeem, legally defease or otherwise retire such Debt. “Repayment” and “Repaid” shall have correlative meanings.
“Repayment Date” means the First Repayment Date and each of the days which are 6, 12,18, 24, 30, 36, 42, 48, 54, 60, 66, 72, 78, 84, 90, 96, 102, 108 and 114 Months after the First Repayment Date but if any such date is not a Business Day, then that Repayment Date shall be deemed to be the immediately succeeding Business Day.
“Repayment Instalment” means each instalment for repayment of the Loan referred to in Clause 6.1 (Repayment of Loan).
“Repeating Representations” means each of the representations set out in Clauses 18.1 (Status) to 18.4 (Power and authority), Clause 18.6 (Governing law and enforcement), Clause 18.8 (No default) and 18.11 (Pari passu ranking).
“Replacement Satellite” shall have the meaning ascribed to it in the Contract.
“Restricted Subsidiary” means:
(a) | a Subsidiary of the Borrower unless such Subsidiary has been and remains designated as an “Unrestricted Subsidiary” in accordance with Clause 11.1 (Designation of Restricted Subsidiary as Unrestricted Subsidiary), and |
(b) | an Unrestricted Subsidiary that has been designated under Clause 11.1 (Designation of Restricted Subsidiary as Unrestricted Subsidiary) to be a Restricted Subsidiary. |
“S&P” means Standard & Poor’s Ratings Services or any successor to the rating agency business thereof.
“Sale and Leaseback Transaction” means any direct or indirect arrangement relating to Property now owned or hereafter acquired whereby the Borrower or any Subsidiary transfers such Property to another person and the Borrower or such Subsidiary leases it back from such person.
“Satellite” shall have the meaning ascribed to it in the Contract.
“Satellite In-Orbit Acceptance Review” shall have the meaning ascribed to the term “In-Orbit Acceptance Review” in the Contract.
“Screen Rate” means, in relation to LIBOR, the British Bankers Association Interest Settlement Rate for the relevant currency and period, displayed on the appropriate page of the Telerate screen. If the agreed page is replaced or service ceases to be available, the Facility Agent may specify another page or service displaying the appropriate rate after consultation with the Borrower and the Lenders.
“Security” means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.
14
“Sinosure” means China Export & Credit Insurance Corporation, a company incorporated and existing under PRC law.
“Sinosure Cover” means the medium-long term buyer credit insurance policy issued by Sinosure in relation to this Agreement.
“Sinosure Premium” means the premium due to Sinosure under the Sinosure Cover for a maximum amount currently estimated to be US$4,010,942.91, such premium being subject to the final approval of Sinosure.
“Specified Time” means a time determined in accordance with Schedule 6 (Timetables).
“Starting Date of Credit” means the earlier of (i) the date of successful completion of the Satellite In-Orbit Acceptance Review under the Contract and (ii) 29 September 2009.
“Stated Maturity” means, with respect to any security, the date specified in such security as the fixed date on which the payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase of such security at the option of the holder thereof upon the happening of any contingency beyond the control of the issuer unless such contingency has occurred).
“Subsidiary” means in relation to any company or corporation, a company or corporation:
(a) | which is controlled, directly or indirectly, by the first mentioned company or corporation; |
(b) | more than half the issued share capital of which is beneficially owned, directly or indirectly by the first mentioned company or corporation; or |
(c) | which is a Subsidiary of another Subsidiary of the first mentioned company or corporation, |
and for this purpose, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to direct its affairs and/or to control the composition of its board of directors or equivalent body.
“Supplier” means Thales Alenia Space France, a company incorporated and existing under French law.
“Supplier’s Contract Payments” means all amounts payable by the Supplier to the Borrower under the Contract including performance incentive payments and liquidated damages but excluding Termination Payments.
“Taxes” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same) and “Tax” and “Taxation” shall be construed accordingly.
“Telecommunication Assets” means:
(a) | any Property (other than cash, cash equivalents and Capital Stock or other securities) to be owned by the Borrower or any Restricted Subsidiary and the Telecommunications Business; or |
15
(b) | Capital Stock of a person that becomes a Restricted Subsidiary as a result of the acquisition of such Capital Stock by the Borrower or another Restricted Subsidiary from any person other than an Affiliate of the Borrower, |
provided, however, that in the case of Clause (b), such person is primarily engaged in the Telecommunications Business; and provided further, however, that for purposes of the definition of Purchase Money Debt, Telecommunications Asset shall consist only of Property described in Clause (a) above and shall not include Property constituting all or substantially all the assets of a business or an operating unit of a business.
“Telecommunications Business” means the business of:
(a) | transmitting, or providing services relating to the transmission of, voice, video or data; |
(b) | constructing, creating, developing or marketing communications networks, related network transmission equipment, software and other devices for use in a communications business; or |
(c) | evaluating, participating in or pursuing any other activity or opportunity that is primarily related to those identified in Clause (a) or (b) above, |
provided that the determination of what constitutes a Telecommunications Business shall be made in good faith by the board of directors of the Borrower.
“Termination Payments” means any amount payable by the Supplier to the Borrower in case of termination of the Contract by the Borrower for convenience following a Total Loss or Constructive Total Loss of the first Satellite after launch. The amount payable shall be the difference between (i) the amount of the insurance proceeds received by the Supplier for the manufacture and launch of the Replacement Satellite it is then no longer required to build and deliver under the Contract and (ii) all costs and expenses incurred by the Supplier as a result of the termination.
“Total Commitments” means US$44,200,000 (representing 85% of the price payable under the Launch Services Contract at the date of this Agreement).
“Total Loss” shall have the meaning ascribed to it in the Contract.
“Transfer Certificate” means a certificate substantially in the form set out in Schedule 5 (Form of Transfer Certificate) or any other form agreed between the Facility Agent and the Borrower.
“Transfer Date” means, in relation to a transfer, the later of:
(a) | the proposed Transfer Date specified in the Transfer Certificate; and |
(b) | the date on which the Facility Agent executes the Transfer Certificate. |
“Unpaid Sum” means any sum due and payable but unpaid by the Borrower under the Finance Documents.
“Unrestricted Subsidiary” means any Subsidiary of the Borrower that has been designated as an Unrestricted Subsidiary in accordance with Clause 11.1 (Designation of Restricted Subsidiary as Unrestricted Subsidiary).
“US$” or “Dollars” means the lawful currency of the United States of America.
16
“Utilisation” means any utilisation made under the Facility.
“Utilisation Date” means, with respect to a Utilisation, the date of that Utilisation.
“VAT” means value added tax or goods and services tax and any other tax of a similar nature.
“Voting Stock” of any person means all classes of Capital Stock or other interests (including partnership interests) of such person then outstanding and normally entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof.
“Wholly-Owned Subsidiary” means, at any time, a Restricted Subsidiary all the Voting Stock of which (except directors’ qualifying shares) is at such time owned, directly or indirectly, by the Borrower and its other Wholly-Owned Subsidiaries.
1.2 | Construction |
(a) | Unless a contrary indication appears, any reference in this Agreement or any other Finance Document to: |
(i) | the “Facility Agent”, the “Security Agent” the “Arranger”, any “Finance Party”, any “Lender” or any “Party” shall be construed so as to include its successors in title, permitted assigns and permitted transferees; |
(ii) | “assets” or “properties” includes present and future properties, revenues and rights of every description; |
(iii) | an “authorised signatory” means a person that has been duly authorised by another person (the “other person”) to execute or sign any Finance Document (or other document or notice to be executed or signed by the other person under or in connection with any Finance Document) on behalf of that other person; |
(iv) | a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended or novated except for the purposes of references to defined terms under the Contract, which shall mean those terms in the Contract as at the date of this Agreement so that any changes to those defined terms will only be applicable if confirmed in accordance with Clause 34.4 (Defined Terms in Contract); |
(v) | “indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent; |
(vi) | a “person” includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) of two or more of the foregoing; |
(vii) | a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; |
(viii) | a provision of law is a reference to that provision as amended or re-enacted; and |
17
(ix) | a time of day is a reference to Paris time. |
(b) | Section, Clause and Schedule headings are for ease of reference only and shall not affect the construction of this Agreement. |
(c) | Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement. |
(d) | A Default (other than an Event of Default) is “continuing” if it has not been remedied or waived and an Event of Default is “continuing” if it has not been waived. |
1.3 | Third party rights |
(a) | Unless expressly provided to the contrary in a Finance Document, a person who is not a Party has no right under the Contracts (Rights of Third Parties) Xxx 0000 (the “Third Parties Act”) to enforce or to enjoy the benefit of any term of this Agreement. |
(b) | Notwithstanding any term of any Finance Document, the consent of any person who is not a Party, with the exception of Sinosure, is not required to rescind or vary this Agreement at any time. |
18
SECTION 2
THE FACILITY
2. | THE FACILITY |
2.1 | The Facility |
Subject to the terms of this Agreement, the Lenders agree to make available to the Borrower a dollar term loan facility up to an aggregate amount equal to the Total Commitments as set out in Schedule 1 (Name of Original Lenders), of which no more than 25 per cent of the Total Commitments shall be advanced in respect of Non-Chinese Content (being US$11,050,000).
2.2 | Finance Parties’ rights and obligations |
(a) | The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. |
(b) | The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from the Borrower shall be a separate and independent debt. |
(c) | A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents. |
3. | PURPOSE |
3.1 | Purpose |
The purpose of this Facility is to finance the payment of 85% of the price payable under the Launch Services Contract.
3.2 | Waiver of claims and defences |
The Borrower hereby acknowledges that its liability to pay in full any sum payable under this Agreement on the due date for payment thereof is totally independent from, and is in no way conditional upon performance by the Supplier of its obligations under the Contract or by the Launch Service Provider of its obligations under the Launch Services Contract, or under any other agreement and shall not be affected in any way by reason of any claim or defence which the Borrower may have or may consider that it has against the Supplier or the Launch Service Provider or any other third party.
4. | CONDITIONS OF UTILISATION |
4.1 | Initial conditions precedent |
No Utilisation under the Facility shall be made unless the Facility Agent has received all of the documents and other evidence listed in Schedule 2 (Conditions Precedent) in form and substance reasonably satisfactory to the Facility Agent. The Facility Agent shall notify the Borrower and the Lenders promptly upon being so reasonably satisfied.
4.2 | Further conditions precedent |
The Lenders will only be obliged to comply with Clause 5 (Utilisation) if on the proposed Utilisation Date:
(a) | no Default is continuing or would result from the proposed Utilisation; |
19
(b) | the representations in Clause 18 (Representations) to be made by the Borrower are true in all material respects; |
(c) | the Facility Agent has received not later than five (5) Business Days prior to the proposed Utilisation Date the documents listed in Schedule 3 (Documents Required for Utilisation; and a written confirmation from the Supplier (a copy of which has been delivered to the Borrower) that it has duly delivered the relevant invoice to the Borrower and not been notified in the 10 days following such delivery of any dispute in the payment of the invoiced amount, pursuant to the Contract; |
(d) | the Sinosure Cover remains in full force and effect and not suspended or cancelled, and the Facility Agent is, in its sole discretion, satisfied that all conditions of the Sinosure Cover with respect to this Agreement and of the credit insurance cover with respect to this Agreement are fully fulfilled and that the credit insurance coverage will apply to such Utilisation under this Agreement; and |
(e) | each of the Contract and the Launch Services Contract is in full force and effect, has not been suspended, interrupted, cancelled or terminated, amended or modified (otherwise than as authorised under this Agreement); no arbitration or other legal proceedings have been initiated between the Supplier and the Launch Service Provider in respect of the Launch Services Contract and neither the Supplier nor the Launch Service Provider have taken any action to suspend the Launch Services Contract. |
20
SECTION 3
UTILISATION
5. | UTILISATION |
5.1 | Payments |
Any and all Utilisations under the Facility:
(a) | shall only be made, as instructed by the Supplier in a notice in the form set out in Schedule 4 (Form of Notice from the Supplier), by direct payment from the Facility Agent to the Launch Service Provider in accordance with Clause 3.1 (Purpose), Clause 5.2 (Borrower’s Mandate: Payment Instructions) and Schedule 4 (Form of Notice from the Supplier); |
(b) | shall be for the account of the Borrower, each payment being made in the name of, and on behalf of, the Borrower, towards its satisfaction of the relevant payment obligation under the Contract; |
(c) | on its or their respective Utilisation Date, shall (in the case of the first Utilisation) constitute the Loan; and (in the case of each subsequent Utilisation) be added to and form part of the Loan; and |
(d) | shall comply with the following schedule as set out in the Launch Services Contract, with the terms “Payment Due Date” or “Date” referring to each relevant Utilisation Date, the term “Payment Amounts in USD” referring to the amount of each Utilisation, the term “EDC” referring to the effective date of the Launch Services Contract and “D” referring to the Launch Date as defined under the Launch Services Contract: |
Payment Due Date |
Date |
Payment Amounts in USD | ||
EDC+6 months |
Jan 31st 2008 |
6,760,000 | ||
EDC+8 months |
March 31st 2008 |
10,400,000 | ||
EDC+12 months |
July 31st 2008 |
6,240,000 | ||
EDC+16 months |
Nov 30th 2008 |
5,200,000 | ||
EDC+20 months |
March 31st 2009 |
5,200,000 | ||
D-15 Days |
5,200,000 | |||
D+1 month |
5,200,000 | |||
Total |
44,200,000 |
5.2 | Borrower’s Mandate: Payment Instructions |
(a) | Utilisations under the Facility may be made only pursuant to Clause 5.1 (Payments). The Borrower accordingly authorises the Facility Agent to pay on the relevant payment due date, on its behalf and for its account, the amount directly to the Launch Service Provider pursuant to Clause 5.1 (Payments), against the delivery by the Supplier to the Facility Agent on or before the Specified Time of the documents specified in Schedule 3 (Documents Required for Utilisation) and Schedule 4 (Form of Notice from the Supplier) where such documents are found by the Facility Agent to be in order. |
21
(b) | Such instructions, which are hereby accepted by the Facility Agent and acknowledged by the Facility Agent, the Borrower and each Lender to be made in their joint interest, are irrevocable and may not be revoked or modified without the express written consent of the Borrower and the Facility Agent, acting on the instructions of the Majority Lenders and Sinosure. |
(c) | The Facility Agent shall notify the Borrower and Sinosure of the amount and Utilisation Date of each Utilisation promptly after such Utilisation has been made. The Borrower also agrees that any Utilisation made under or pursuant to this Clause 5 shall be deemed to have been made to or for the account of the Borrower and the Borrower waives all rights of protest it may have to the contrary. |
(d) | The responsibility of the Facility Agent for the examination of the documents referred to in Clause 5.2(a) shall be limited to ascertaining that they appear to be in order on their face, in accordance with the meaning of such terms under the Uniform Customs and Practice for Documentary Credits (Publication 600). Documents which appear on their face to be inconsistent with one another shall be considered not to be in order. |
(e) | The Facility Agent and the Lenders shall not be responsible for any delay in making available any Utilisation resulting from a failure to meet any requirement for the delivery of further information or documents required by the Facility Agent to confirm that the conditions of Clause 4 (Conditions of Utilisation) and of this Clause 5 have been met. |
(f) | No Utilisation may be made outside of the Availability Period. |
22
SECTION 4
REPAYMENT, PREPAYMENT AND CANCELLATION
6. | REPAYMENT |
6.1 | Repayment of Loan |
The Loan outstanding after the Availability Period shall be repaid in twenty equal semi-annual instalments (each a “Repayment Instalment”). One Repayment Instalment shall fall due on each Repayment Date.
6.2 | Reborrowing |
The Borrower may not reborrow any part of the Facility which is repaid.
7. | PREPAYMENT AND CANCELLATION |
7.1 | Illegality |
If, at any time, it is or will become unlawful in any applicable jurisdiction for any Lender to perform any of its obligations as contemplated by this Agreement or to fund a Utilisation or maintain its participation in the Loan:
(a) | the relevant Lender shall promptly notify the Facility Agent upon becoming aware of that event; |
(b) | upon the Facility Agent notifying the Borrower, the Commitment of that Lender will be immediately cancelled; and |
(c) | the Borrower shall repay that Lender’s participation in the Loan on the last day of the Interest Period occurring after the Facility Agent has notified the Borrower or, if earlier, the date specified by the Facility Agent (being no earlier than the last day of any applicable grace period permitted by law). |
7.2 | Voluntary cancellation |
The Borrower may at any time prior to the Utilisation Date and prior to the end of the Availability Period, if it gives the Facility Agent not less than 30 days’ prior notice, cancel the whole or any part (being a minimum amount of US$10,000,000) of the Available Facility, provided that the Borrower also makes a corresponding pro rata cancellation of the available facility under the COFACE Facility, except in the case of a cancellation of the entire remaining Available Facility in an amount no greater than US$2,000,000, in which case no such corresponding pro-rata cancellation under the COFACE Facility is required. Any cancellation under this Clause 7.2 shall reduce the Commitments of the Lenders rateably.
7.3 | Voluntary prepayment |
(a) | The Borrower may, if it gives the Facility Agent not less than 30 days’ prior notice, prepay the whole or any part of the Loan (but, if in part, being an amount that reduces the amount of the Loan by a minimum amount of US$10,000,000 and in integral multiples of US$1,000,000); |
(b) | The Loan may only be prepaid after the last day of the Availability Period (or, if earlier, the day on which the Available Facility is zero) and on a Repayment Date; and |
23
(c) | Any prepayment under this Clause 7.3 shall satisfy the obligations under Clause 6.1 (Repayment of Loan) in inverse chronological order, |
provided that the Borrower shall not make a voluntary prepayment under the Facility unless the Borrower also makes a corresponding pro rata voluntary prepayment under the COFACE Facility.
7.4 | Mandatory prepayment |
(a) | In the event that: |
(i) | the Contract and/or the Launch Services Contract is terminated prior to the Starting Date of Credit; |
(ii) | a Total Loss or Constructive Total Loss of (x) the Satellite and a subsequent cancellation, repudiation or termination of the Contract and the Launch Services Contract, or (y) of the Replacement Satellite (if the Launch Service Provider is selected under the Contract to launch the Replacement Satellite); |
(iii) | the Launch Service Provider ceases to be selected under the Contract to launch the Satellite or the Replacement Satellite; |
(iv) | the Sinosure Cover is invalid or not in full force and effect; or |
(v) | the Borrower’s request for covenant suspension/relaxation is not agreed by the Facility Agent acting on the instructions of the Majority Lenders and with the consent of Sinosure under Clause 21.13 (Suspension and Relaxation of Certain Covenants) within 30 days of that request, |
the Borrower shall immediately prepay the outstanding Loan under the Facility and the outstanding loans under the COFACE Facility on a pro-rata basis, except that in the events as described in paragraphs (iii) or (iv), the Borrower shall only immediately prepay the outstanding Loan under the Facility.
(b) | The Facility Agent shall immediately instruct the Security Agent to apply amounts directed to the Security Agent under the Délégation in respect of a cancellation of the Contract and under the Assignment of Insurance Proceeds in or towards prepayment of the outstanding Loan under the Facility and the outstanding loan under the COFACE Facility on a pro-rata basis, except that under the events as described in Clauses 7.4(a)(iii) or 7.4(a)(iv) only the outstanding Loan under the Facility shall be prepaid. |
(c) | Any prepayment under this Clause 7.4 shall satisfy the obligations under Clause 6.1 (Repayment of Loan) in inverse chronological order. |
7.5 | Right of repayment and cancellation in relation to a single Lender |
(a) | If: |
(i) | any sum payable to any Lender by the Borrower is required to be increased under Clause 13.2 (Tax gross-up); or |
(ii) | any Lender claims indemnification from the Borrower under Clause 13.3 (Tax indemnity) or Clause 14 (Increased Costs), |
24
the Borrower may, whilst the circumstance giving rise to the requirement or indemnification continues, give the Facility Agent notice of cancellation of the Commitment of that Lender and its intention to procure the repayment of that Lender’s participation in the Loan.
(b) | On receipt of a notice referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero. |
(c) | On the last day of the Interest Period which ends after the Borrower has given notice under paragraph (a) above (or, if earlier, the date specified by the Borrower in that notice), the Borrower shall repay that Lender’s participation in the Loan. |
7.6 | Restrictions |
(a) | Any notice of cancellation or prepayment given by any Party under this Clause 7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment. |
(b) | Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs (if applicable), without premium or penalty. |
(c) | The Borrower may not reborrow any part of the Facility which is prepaid. |
(d) | The Borrower shall not repay or prepay all or any part of the Loan or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement. |
(e) | If the Facility Agent receives a notice under this Clause 7 it shall promptly forward a copy of that notice to either the Borrower or the affected Lender or Lenders, as appropriate. |
(f) | Any pro-rata prepayment of the COFACE Facility shall take place on the same date as prepayment of the Facility. |
25
SECTION 5
COSTS OF UTILISATION
8. | INTEREST |
8.1 | Calculation of interest |
The Borrower shall pay interest to the Facility Agent on the Loan at a rate per annum determined by the Facility Agent to be the aggregate of (a) the Margin and (b) LIBOR for such Interest Period at or about 11.00 a.m. on the Quotation Day. Such interest shall accrue from the date of the first Utilisation to the date of actual repayment of the Loan.
8.2 | Payment of interest |
The Borrower shall pay on each Interest Payment Date accrued interest on the Loan. Interest shall be calculated on the actual number of days elapsed on the basis of a 360-day year.
8.3 | Default interest |
(a) | If the Borrower fails to pay any amount payable by it under a Finance Document to which it is a party on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which is the sum of two per cent and the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Utilisation in the currency of the overdue amount for successive Interest Periods. Any interest accruing under this Clause 8.3 shall be immediately payable by the Borrower on demand by the Facility Agent. |
(b) | Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount on each Interest Payment Date applicable to that overdue amount but will remain immediately due and payable. |
8.4 | Notification of interest |
The Facility Agent shall send to the Borrower a statement of the interest due for each Interest Period prior to the relevant Interest Payment Date. If a Utilisation is made upon or the Starting Date of Credit becomes known to the Facility Agent after such statement has been sent, the Facility Agent shall, where practicable, send to the Borrower a supplementary statement. The statement will be sent by fax no later than twenty (20) days prior to the relevant Interest Payment Date (and the supplementary statement will be sent by fax promptly upon becoming aware of the amount due) and will, in each case, be followed by delivery of the original statement all in accordance with Clause 30 (Notices/Communications). Notwithstanding the foregoing provisions of this Clause 8.4, any delay or failure by the Facility Agent to send a statement shall not affect the obligation of the Borrower to pay interest.
9. | INTEREST PERIODS |
9.1 | Duration of Interest Periods |
(a) | Each Interest Period shall, subject as provided in Clause 8.1 (Calculation of interest) and below, be six (6) Months. |
(b) | The first Interest Period for the Loan will start on the Utilisation Date of the first Utilisation and, if the COFACE Facility has been utilised before that first Utilisation Date, end on the last day of the current interest period for the loan under the COFACE Facility. Each subsequent Interest Period until the First Repayment Date shall start on the last day of its preceding Interest Period and end on the earlier of (i) six (6) Months after such date or (ii) the Starting Date of Credit. |
26
(c) | The first Interest Period relating to that part of the Loan represented by each of the second and all subsequent Utilisations shall start on its Utilisation Date and end on the next Interest Payment Date. |
(d) | The Interest Period commencing on the Starting Date of Credit will start on the Starting Date of Credit and end on the First Repayment Date and each subsequent Interest Period will start on the last day of its preceding Interest Period and end on the following Repayment Date, with the last Interest Period ending on the Final Maturity Date. |
(e) | The Loan shall only have one Interest Period applicable to it at any time, except in the circumstances described in paragraph (c) above for the first Interest Periods applicable to that part of the Loan represented by further Utilisations before they are consolidated on subsequent Interest Payment Date(s). |
9.2 | Non-Business Days |
If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that calendar month (if there is one) or the preceding Business Day (if there is not).
10. | CHANGES TO THE CALCULATION OF INTEREST |
10.1 | Absence of quotations |
Subject to Clause 10.2 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.
10.2 | Market disruption |
(a) | If a Market Disruption Event occurs in relation to a Utilisation for any Interest Period, then the rate of interest on each Lender’s share of that Utilisation for the Interest Period shall be the rate per annum which is the sum of: |
(i) | the Margin; and |
(ii) | the rate notified to the Facility Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Utilisation from whatever source it may reasonably select. |
(b) | In this Agreement “Market Disruption Event” means: |
(i) | at or about noon in London on the Quotation Day for the relevant Interest Period the Screen Rate is not available or the Screen Rate is zero or negative and none or only one of the Reference Banks supplies a rate to the Facility Agent to determine LIBOR for US Dollars for the relevant Interest Period; or |
27
(ii) | before close of business in London on the Quotation Day for the relevant Interest Period, the Facility Agent receives notifications from a Lender or Lenders (whose participations in a Utilisation exceed 35 per cent. of that Utilisation) that the cost to it or them of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR. |
10.3 | Alternative basis of interest or funding |
(a) | If a Market Disruption Event occurs and the Facility Agent or the Borrower so requires, the Facility Agent and the Borrower shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest. |
(b) | Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Borrower, be binding on all Parties. |
10.4 | Break Costs |
The Borrower shall reimburse to each Lender, upon demand, all costs and expenses incurred by such Lender in relation to any repayment or prepayment of the Loan (or any part thereof) other than on an Interest Payment Date, whether by voluntary prepayment or by acceleration, pursuant to any of the provisions of this Agreement (including, but not limited to, Clauses 7.3 (Voluntary prepayment), Clause 7.5 (Right of repayment and cancellation in relation to a single Lender), Clause 14 (Increased Costs) and Clause 22 (Events of Default)) but excluding any repayment made under Clause 6 (Repayment) or any prepayment under Clauses 7.1 (Illegality), Clause 7.4 (Mandatory prepayment) or Clause 14 (Increased Costs) for its losses, costs and expenses incurred in obtaining, liquidating, employing or reemploying deposits from third parties in respect of funds borrowed, contracted for or utilized to fund the amount so repaid or paid, arising directly from such payment by the Borrower, provided that such demand of the Lender shall be supported by a statement certifying in reasonable detail the amount of such costs or expenses, which statement shall constitute evidence thereof and shall be conclusive and binding save for manifest error proved by the Borrower.
11. | DESIGNATION OF RESTRICTED AND UNRESTRICTED SUBSIDIARIES |
11.1 | Designation of Restricted Subsidiary as Unrestricted Subsidiary |
The board of directors of the Borrower may, by written notice to the Facility Agent, designate any Restricted Subsidiary to be an Unrestricted Subsidiary if:
(i) | all Debt of such Subsidiary, whether in existence at the time of designation as an Unrestricted Subsidiary, or Incurred thereafter, is Non-Recourse Debt; |
(ii) | such Subsidiary is not party to any agreement, contract, arrangement or understanding with the Borrower or any Restricted Subsidiary unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Borrower or such Restricted Subsidiary than those that might be obtained at the time from persons who are not Affiliates of the Borrower; |
(iii) | such Subsidiary is a person with respect to which neither the Borrower nor any Restricted Subsidiaries has any direct or indirect obligation (i) to subscribe for additional Equity Interests, or (ii) to maintain or preserve such person to achieve any specified levels of operating results; and |
28
(iv) | the designation would not otherwise cause a Default. |
11.2 | Automatic reversion |
If, at any time, any Unrestricted Subsidiary fails to meet the requirements outlined in Clause 11.1 (Designation of Restricted Subsidiary as Unrestricted Subsidiary) for an Unrestricted Subsidiary, it will immediately cease to be an Unrestricted Subsidiary.
11.3 | Designation of Unrestricted Subsidiary as Restricted Subsidiary |
The board of directors of the Borrower may, by written notice to the Facility Agent, designate any Unrestricted Subsidiary to be a Restricted Subsidiary if the designation would not cause a Default.
12. | FEES AND SINOSURE PREMIUM |
12.1 | Structuring Fee |
The Borrower shall pay to the Facility Agent (for the account of the Arranger) a structuring fee in the amount and at the times agreed in the Fee Letter.
12.2 | Commitment Fee |
The Borrower shall pay to the Facility Agent (for the account of each Lender) a fee of 0.20% (zero point two per cent) per annum on each Lender’s Available Commitment on the basis of the actual number of days elapsed and a year of 360 days. Accrued commitment fees shall be payable as from the date of this Agreement on the last day of each successive period of six (6) Months which ends during the Availability Period and on the last day of the Availability Period (or, if the Available Facility is cancelled in full, on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective). This fee will be distributed by the Facility Agent to the Lenders pro rata to their respective Commitments.
12.3 | Sinosure Premium |
(a) | The Borrower shall pay directly to Sinosure the Sinosure Premium within thirty (30) days after the date of receipt from the Facility Agent of the notice issued by Sinosure for the payment of the Sinosure Premium in connection with the Sinosure Cover. The amount of the Sinosure Premium provided by Sinosure in such notice shall be binding upon the Borrower. The Sinosure Cover will only become effective after payment by the Borrower of the Sinosure Premium. |
(b) | Subject to the final confirmation by Sinosure, the Sinosure Premium is currently estimated to be in an amount of US$4,010,942. |
29
SECTION 6
ADDITIONAL PAYMENT OBLIGATIONS
13. | TAX GROSS UP AND INDEMNITIES |
13.1 | Definitions |
(a) | In this Clause 13: |
“Protected Party” means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.
“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment to a Finance Party under a Finance Document.
(b) | Unless a contrary indication appears, in this Clause 13 a reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination. |
13.2 | Tax gross-up |
(a) | The Borrower shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law. |
(b) | The Borrower shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Facility Agent accordingly. Similarly, a Lender shall notify the Facility Agent on becoming so aware in respect of a payment payable to that Lender. If the Facility Agent receives such notification from a Lender it shall notify the Borrower. |
(c) | Subject to paragraph (e) below, if the Borrower is required to make a Tax Deduction, the Borrower shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law. |
(d) | Within thirty (30) days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Borrower shall deliver to the Facility Agent for the Finance Party entitled to the payment evidence reasonably satisfactory (which may include if available, without limitation, an original receipt (or certified copy thereof)) to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid in accordance with law or regulation to the relevant taxing authority. |
(e) | In the event there is a Tax Deduction required by the Indonesian tax authorities, the Lenders shall use reasonable endeavours to offset the Tax Deduction with a tax credit, subject to the availability of the tax credit under the Indonesia-France tax treaty. The Lenders’ obligation to apply for a tax credit for the cost of such Tax Deduction is subject to (i) the Lenders’ ability to continue to be entitled to receive the appropriate tax credit in an amount up to the amount of the Tax Deduction required by the Indonesian government and/or Indonesian tax authorities on interest payments, and (ii) the extent to which the Lenders’ taxable income is sufficient for them to realise the benefit of the relevant tax credit. In the event of any change in the Indonesia- French tax treaty or French law (including any amendment or change in an official, |
30
administrative or judicial interpretation, pronouncement or application of, or practice under, such treaty or law, or any change in the published practice of any tax authority) that removes in whole or in part the entitlement to a tax credit available to the Lenders, or, if for any other reason, the Lenders do not receive the net amount of interest due to it as a result of a withholding required by the Indonesian government and/or Indonesian tax authorities, applicable payments of interest made by the Borrower under the Finance Documents shall be increased by an amount which (after making any withholding required by the Indonesian government and/or Indonesian tax authorities) leaves a net amount equal to the payment which would have been due if no such withholding had been required. |
13.3 | Tax indemnity |
(a) | The Borrower shall (within ten (10) Business Days of demand by the Facility Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document. |
(b) | Paragraph (a) above shall not apply: |
(i) | with respect to any Tax assessed on a Protected Party: |
(A) | under the law of the jurisdiction in which that Protected Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Protected Party is treated as resident for tax purposes; or |
(B) | under the law of the jurisdiction in which that Protected Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction, |
if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Protected Party; or
(ii) | to the extent a loss, liability or cost is compensated for by an increased payment under Clause 13.2 (Tax gross-up). |
(c) | A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Facility Agent of the event which will give, or has given, rise to the claim, following which the Facility Agent shall notify the Borrower. |
(d) | A Protected Party shall, on receiving a payment from the Borrower under this Clause 13.3, notify the Facility Agent. |
13.4 | Stamp taxes |
The Borrower shall pay and, within ten (10) Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.
13.5 | Value added tax |
(a) | All amounts set out, or expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the consideration for VAT purposes shall be deemed to be exclusive of any VAT which is chargeable |
31
on such supply, and accordingly, subject to paragraph (c) below, if VAT is chargeable on any supply made by any Finance Party to any Party under a Finance Document, that Party shall pay to the Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the VAT (and such Finance Party shall promptly provide an appropriate VAT invoice to such Party). |
(b) | If VAT is chargeable on any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the “Recipient”) under a Finance Document, and any Party (the “Relevant Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration for such supply to the Supplier (rather than being required to reimburse the Recipient in respect of that consideration), such Party shall also pay to the Supplier (in addition to and at the same time as paying such amount) an amount equal to the amount of such VAT. The Recipient will promptly pay to the Relevant Party an amount equal to any credit or repayment from the relevant tax authority which it reasonably determines relates to the VAT chargeable on that supply. |
(c) | Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party shall also at the same time pay and indemnify the Finance Party against all VAT incurred by the Finance Party in respect of the costs or expenses to the extent that the Finance Party reasonably determines that neither it nor any other member of any group of which it is a member for VAT purposes is entitled to credit or repayment from the relevant tax authority in respect of the VAT. |
14. | INCREASED COSTS |
14.1 | Increased costs |
(a) | Subject to Clause 14.3 (Exceptions) the Borrower shall, within ten (10) Business Days of a demand by the Facility Agent, pay to a Finance Party the amount of any Increased Costs incurred by that Finance Party in respect of such Finance Party as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or regulation made after the date of this Agreement. |
(b) | In this Agreement “Increased Costs” means: |
(i) | a reduction in the rate of return from the Facility or on a Finance Party’s overall capital; |
(ii) | an additional or increased cost; or |
(iii) | a reduction of any amount due and payable under any Finance Document, |
which is incurred or suffered by a Finance Party, to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations under any Finance Document.
14.2 | Increased cost claims |
(a) | A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased costs) shall notify the Facility Agent of the event giving rise to the claim, following which the Facility Agent shall promptly notify the Borrower. |
32
(b) | Each Finance Party shall, as soon as practicable after a demand by the Facility Agent, provide a certificate confirming the amount of Increased Costs. |
14.3 | Exceptions |
(a) | Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost is: |
(i) | attributable to a Tax Deduction required by law to be made by the Borrower; |
(ii) | compensated for by Clause 13.3 (Tax indemnity) (or would have been compensated for under Clause 13.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 13.3 (Tax indemnity) applied); or |
(iii) | attributable to the wilful breach by the relevant Finance Party of any law or regulation. |
(b) | In this Clause 14.3, a reference to a “Tax Deduction” has the same meaning given to the term in Clause 13.1 (Definitions), |
15. | OTHER INDEMNITIES |
15.1 | Currency indemnity |
(a) | If any sum due from the Borrower under the Finance Documents to which it is party (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of: |
(i) | making or filing a claim or proof against the Borrower; |
(ii) | obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, |
the Borrower shall as an independent obligation, within ten (10) Business Days of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.
(b) | The Borrower waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable. |
15.2 | Other indemnities |
The Borrower shall, within ten (10) Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party as a result of:
(a) | the occurrence of any Event of Default; |
(b) | a failure by the Borrower to pay any amount due under a Finance Document on its due date, or the receipt by any Lender of all or any part of the Loan or an Unpaid Sum by way of voluntary or mandatory prepayment or otherwise than on the date originally scheduled or a date on which repayment is to be made pursuant to Clause 6 (Repayment); |
33
(c) | funding, or making arrangements to fund, its participation in the Utilisations requested by the Borrower but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone); or |
(d) | the Loan (or part of the Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower. |
Without prejudice to its generality, the foregoing indemnity shall extend to any costs to a Lender of any loss of margin and to any interest, fees or other sum whatsoever paid or payable on account of any funds borrowed in order to carry any part of the Facility but shall not extend to (i) any claim which is of the type referred to in Clause 10.4 (Break Costs) or (ii) any other indirect or consequential loss not directly attributable to the relevant event or circumstance described in paragraphs (a) to (d) above.
15.3 | Indemnity to the Facility Agent |
The Borrower shall promptly indemnify the Facility Agent against any cost, loss or liability incurred by the Facility Agent (acting reasonably) as a result of:
(a) | investigating any event which it reasonably believes is a Default; or |
(b) | acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised. |
16. | MITIGATION BY THE LENDERS |
16.1 | Mitigation |
(a) | Each Finance Party shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 7.1 (Illegality), Clause 13 (Tax Gross Up and Indemnities), Clause 14 (Increased Costs) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office. |
(b) | Paragraph (a) above does not in any way limit the obligations of the Borrower under the Finance Documents. |
16.2 | Limitation of liability |
(a) | The Borrower shall indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 16.1 (Mitigation). |
(b) | A Finance Party is not obliged to take any steps under Clause 16.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it. |
17. | COSTS AND EXPENSES |
17.1 | Legal costs and expenses |
The Borrower shall within ten (10) Business Days of receipt of demand pay the Facility Agent, the Security Agent and the Arranger the amount of all costs and expenses reasonably incurred by any of them in engaging legal counsel (acting for the Arranger) in connection with the negotiation, preparation, printing and execution of:
(a) | this Agreement and any other documents referred to in this Agreement; and |
34
(b) | any other Finance Documents executed after the date of this Agreement, |
provided that such costs and expenses shall be subject to any agreed caps.
17.2 | Amendment costs |
If (a) the Borrower requests an amendment, waiver or consent under any Finance Document or (b) an amendment is required pursuant to Clause 28.9 (Change of currency), the Borrower shall, within ten (10) Business Days of demand, reimburse the Facility Agent or the Security Agent, as appropriate, for the amount of all costs and expenses (including legal fees) reasonably incurred by the Facility Agent and the Security Agent in responding to, evaluating, negotiating or complying with that request or requirement.
17.3 | Enforcement and other costs |
The Borrower shall, within ten (10) Business Days of demand:
(a) | pay to each of the Facility Agent and the Security Agent the amount of all costs and expenses (including legal fees) incurred by it in connection with the administration, holding, enforcement of, or the preservation of any rights under, any Finance Document; and |
(b) | reimburse the Facility Agent in full for the fees and costs of any accountants and telecommunications consultants with which it consults pursuant to Clause 21.4 (Disposal of non-Project Property). |
35
SECTION 7
REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT
18. | REPRESENTATIONS |
The Borrower makes the representations and warranties set out in this Clause 18 to each Finance Party on the date of this Agreement.
18.1 | Status |
(a) | It is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation. |
(b) | It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted. |
18.2 | Binding obligations |
The obligations expressed to be assumed by it in each Finance Document and the Contract are, subject to any general principles of law as at the date of this Agreement limiting its obligations which are specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation), legal, valid, binding and enforceable obligations subject to the laws of bankruptcy and other laws affecting the rights of creditors generally,
18.3 | Non-conflict with other obligations |
The entry into and performance by it of, and the transactions contemplated by, the Finance Documents or the Contract do not and will not conflict with:
(a) | any law or regulation applicable to it; |
(b) | its or any of its Subsidiaries’ constitutional documents; or |
(c) | any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries’ assets. |
18.4 | Power and authority |
It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the Contract and the transactions contemplated by those Finance Documents and the Contract.
18.5 | Validity and admissibility in evidence |
All Authorisations required or desirable:
(a) | to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party and the Contract; |
(b) | to make the Finance Documents and the Contract to which it is a party admissible in evidence in its jurisdiction of incorporation; and |
(c) | to import, own, operate and maintain the Satellite and to contract for the construction and launch of the Satellite, |
have been obtained or effected and are in full force and effect.
36
18.6 | Governing law and enforcement |
(a) | The choice of English law as the governing law of this Agreement, the Assignment of Insurance Proceeds, and any other agreements designated as such by the Arranger and the Borrower and expressed to be governed by English law, and the choice of French law as the governing law of the Délégation, will be recognised and enforced in its jurisdiction of incorporation. |
(b) | Any arbitral award obtained in Singapore in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation. |
18.7 | No filing or stamp taxes |
Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents or the Contract be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the Contract or the transactions contemplated by the Finance Documents or the Contract other than (a) the reporting to and filing of, this Agreement by the Borrower with each of Bank Indonesia, the Department of Finance and the Foreign Commercial Loan Team; and (b) the payment of stamp duty of Rp6,000 on this Agreement.
18.8 | No default |
(a) | No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation. |
(b) | No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its (or any of its Subsidiaries’) assets are subject which might have a Material Adverse Effect. |
18.9 | No misleading information |
Any factual information provided in writing by any member of the Group to the Lenders was true and accurate in all material respects and did not omit to include material information as at the date it was provided or as at the date (if any) at which it is stated and is not misleading in any material respect and did not omit to include material information.
18.10 | Financial statements |
(a) | Its Original Financial Statements were prepared in accordance with GAAP consistently applied unless expressly disclosed to the Facility Agent in writing to the contrary before the date of this Agreement. |
(b) | Its Original Financial Statements fairly represent its financial condition and operations during the relevant financial year unless expressly disclosed to the Facility Agent in writing to the contrary before the date of this Agreement. |
(c) | There has been no material adverse change in its business or financial condition since 31 December 2006 which could reasonably be expected materially to affect the ability of the Borrower to observe or perform its payment obligations under this Agreement. |
18.11 | Pari passu ranking |
Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.
37
18.12 | No proceedings pending or threatened |
As far as the Borrower is aware, no litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a Material Adverse Effect have been started or threatened against it or any of its Subsidiaries.
18.13 | Environmental compliance |
Each member of the Group has performed and observed in all material respects all Environmental Law, Environmental Permits and all other material covenants, conditions, restrictions or agreements directly or indirectly concerned with any contamination, pollution or waste or the release or discharge of any toxic or hazardous substance in connection with any real property in the Republic of Indonesia which is or was at any time owned, leased or occupied by any member of the Group or on which any member of the Group has conducted any activity where failure to do so might reasonably be expected to have a Material Adverse Effect.
18.14 | Environmental Claims |
As far as the Borrower is aware, no Environmental Claim has been commenced is threatened against any member of the Group where that claim would be reasonably likely, if determined against that member of the Group to have a Material Adverse Effect.
18.15 | Taxation |
(a) | It has duly paid and discharged all Taxes imposed upon it or its assets (save to the extent that (i) payment is being contested in good faith, (ii) it has maintained adequate reserves for those Taxes and (iii) payment can be lawfully withheld), |
(b) | It is not materially overdue in the filing of any Tax returns. |
(c) | No claims are being or are reasonably likely to be asserted against it with respect to Taxes. |
18.16 | No Immunity |
In any proceedings taken in its jurisdiction of incorporation in relation to this Agreement, it will not be entitled to claim for itself or any of its assets immunity from suit, execution, attachment or other legal process.
18.17 | Private and commercial acts |
Its execution of the Finance Documents constitutes, and its exercise of its rights and performance of its obligations hereunder will constitute, private and commercial acts done and performed for private and commercial purposes.
18.18 | Confirmation |
Neither it nor any member of the Group has promised, offered or given a bribe to a domestic or foreign official and no such person nor anyone acting on its behalf has engaged in or will engage in any such corrupt activity in connection with the export transaction contemplated by the Contract.
18.19 | Security |
The Délégation and, if applicable, the provisions of the Assignment of Insurance Proceeds are, and when entered into, will be, effective to create, in favour of the Security Agent, legal, valid and enforceable liens and a first priority security interest on or in all of the collateral intended to be covered thereby, enforceable against the Borrower in accordance with their terms, subject to any general principles of law as at the date of the Agreement limiting its obligations which are specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation).
38
18.20 | Ground Stations etc |
All ground stations for the Satellite and other utility services, facilities and other equipment and materials necessary for construction, importation, launch and operation of the Satellite are available to the Project or will be available to the Project when required.
18.21 | Business in Indonesia |
(a) | It is not necessary under the laws and constitution of Indonesia in order to enable the Finance Parties to enforce their rights hereunder or for the execution, delivery and performance of any of the Finance Documents that the Finance Parties should be licensed, qualified or otherwise entitled to carry on business in Indonesia. |
(b) | The Finance Parties are not deemed to be domiciled or carrying on business in Indonesia by reason only of the execution, performance or enforcement of any of the Finance Documents. |
18.22 | Authorised signatures |
Any person specified as its authorised signatory under Schedule 2 (Conditions Precedent) or 19.4 (Information: miscellaneous) is authorised to sign any certificates and other notices on its behalf.
18.23 | Repetition |
The representations in this Clause 18 are deemed to be made by the Borrower (by reference to the facts and circumstances then existing) on the date of each Utilisation. The Repeating Representations are deemed to be made by the Borrower (by reference to the facts and circumstances then existing) on the first day of each Interest Period.
19. | INFORMATION UNDERTAKINGS |
The undertakings in this Clause 19 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.
19.1 | Financial statements |
(a) | The Borrower shall: |
(i) | as soon as the same become available, but in any event within 180 days after the end of the Borrower’s relevant financial year, publish on its website the Borrower’s audited consolidated financial statements in English for each financial year of the Borrower; |
(ii) | as soon as the same become available, but in any event within 60 days after the end of each of the first three quarters of each of its financial years, publish on its website the Borrower’s unaudited consolidated financial statements in English for that period. |
(b) | If a Lender determines that publication of the financial statements listed at paragraphs (a)(i) and (ii) above on the Borrower’s website is not sufficient to satisfy any law or regulation applicable to that Lender, the Borrower shall, following a request by that Lender, promptly supply a copy of its financial statements. |
39
19.2 | Compliance Certificate |
(a) | The Borrower shall supply to the Facility Agent as soon as the Borrower’s audited consolidated financial statements become available, but in any event within 180 days after the end of the Borrower’s relevant financial year, a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 20 (Financial Covenants) as at the date as at which those financial statements were drawn up. |
(b) | Each Compliance Certificate shall be signed by an Officer. |
19.3 | Requirements as to financial statements |
The Borrower shall procure that each set of financial statements published (or delivered if applicable) pursuant to Clause 19.1 (Financial statements) is prepared using GAAP.
19.4 | Information: miscellaneous |
The Borrower shall supply to the Facility Agent (in sufficient copies for all the Lenders, if the Facility Agent so requests):
(a) | all documents dispatched by the Borrower to its shareholders (or any class of them) or its creditors generally at the same time as they are dispatched; |
(b) | promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which might, if adversely determined, have a Material Adverse Effect; |
(c) | promptly, such further information regarding the financial condition, business and operations of any member of the Group as any Finance Party (through the Facility Agent) may reasonably request; and |
(d) | promptly, such notices of (i) any suspension of construction under the Contract, (ii) any event constituting force majeure under the Contract, (iii) any notice of claims under the Launch Insurance and In-Orbit Insurance, (iv) any damage or loss to the Project (whether insured or not) in excess of US$1,000,000 for each event or US$5,000,000 in aggregate for a given year or (v) any Total Loss, Constructive Total Loss or Partial Loss; and |
(e) | promptly, notice of any change in authorised signatories signed by a director or company secretary accompanied by specimen signatures of any new authorised signatories. |
19.5 | Notification of default |
(a) | The Borrower shall notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence. |
(b) | Promptly upon a request by the Facility Agent, the Borrower shall supply to the Facility Agent a certificate signed by an Officer, on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it). |
40
20. | FINANCIAL COVENANTS |
20.1 | Financial definitions |
In this Clause 20:
“Relevant Period” means each period of twelve (12) Months ending on the last day of the Borrower’s financial year and each period of twelve (12) Months ending on the last day of each of the first three quarters of the Borrower’s financial year.
20.2 | Financial condition |
The Borrower shall ensure that:
(a) | the minimum consolidated Equity shall not be less than IDR 5 trillion; |
(b) | the ratio of the aggregate Debt of the Group at the end of a Relevant Period to EBITDA of the Group in respect of such Relevant Period shall not at any time exceed 3.5:1; |
(c) | the ratio of EBITDA of the Group for any Relevant Period to aggregate Interest Expense of the Group for that Relevant Period shall at all times be at least 2.5:1; and |
(d) | the ratio of aggregate Debt of the Group to Equity of the Group shall not at any time exceed 1.75:1. |
20.3 | Financial testing |
The financial covenants set out in Clause 20.2 (Financial condition) shall be tested by reference to each of the financial statements and/or each Compliance Certificate delivered pursuant to Clause 19.2 (Compliance Certificate).
21. | GENERAL UNDERTAKINGS |
The undertakings in this Clause 21 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force unless the Facility Agent (acting on the instructions of the Majority Lenders) shall otherwise agree in writing.
21.1 | Authorisations |
The Borrower shall promptly:
(a) | obtain, comply with and do all that is necessary to maintain in full force and effect; and |
(b) | supply certified copies to the Facility Agent of, |
any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document.
21.2 | Compliance with laws, etc. |
(a) | The Borrower shall comply in all respects with all laws and regulations or permits including (without prejudice to the generality of the foregoing) all Environmental Laws and Environmental Permits to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents. |
41
(b) | The Borrower shall not (and the Borrower shall ensure that no member of the Group will), promise, offer or give a bribe to a domestic or foreign official and no such person nor anyone acting on its behalf has engaged in or will engage in any such corrupt activity in connection with the export transaction contemplated by the Contract. |
21.3 | Disposal of Project Property |
The Borrower shall not (and shall ensure that no Restricted Subsidiary will) enter into a single transaction or a series of transactions (whether related or not and whether voluntary or involuntary) to sell, lease, transfer or otherwise dispose of any Project Property except as contemplated or permitted under the Contract or the Finance Documents or any lease or licence of any transponders or transponder capacity.
In addition, if the Project Property is to be disposed of to a Subsidiary of the Borrower, the requisite prior written consent of the Majority Lenders shall not be unreasonably withheld or (it being accepted that the Lenders will want to have concluded their consultations with Sinosure) unreasonably delayed so long as (i) all rights enjoyed in respect of the Project Property by the Finance Parties will continue to be enjoyed (so that the Subsidiary may need to novate and become liable to relevant parts of Finance Documents, including the Délégation and, if applicable, the Assignment of Insurance Proceeds), (ii) the Borrower continues otherwise to be bound by the terms of the Finance Documents, (iii) the Majority Lenders are satisfied with the identity of the direct and indirect minority shareholders of the relevant Subsidiary and (iv) any necessary amending or supplementing documents and related legal opinions are acceptable to the Facility Agent.
21.4 | Disposal of non-Project Property |
(a) | In relation to any Property that is not a Project Property, the Borrower shall not (and the Borrower shall ensure that no Restricted Subsidiary will), enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of such Property. |
(b) | Paragraph (a) above does not apply to: |
(i) | any sale, lease, transfer or other disposal made in the ordinary course of business of the disposing entity (including in connection with the leasing or procurement of any capacity of satellite transponders); |
(ii) | any sale, lease, transfer or other disposal of assets in exchange for other assets comparable or superior as to type, value and quality; |
(iii) | any sale, lease, transfer or other disposal where the higher of the market value or consideration receivable (when aggregated with the higher of the market value or consideration receivable for any other sale, lease, transfer or other disposal, other than any permitted under paragraphs (i) to (ii) above) does not exceed US$20,000,000 (or its equivalent in another currency or currencies) in any financial year; |
(iv) | any single or series of transactions involving the disposal and lease back of Indosat Towers (or part(s) thereof) where the higher of aggregate market value or aggregate consideration receivable does not exceed 10% of Indosat’s total assets; |
42
(v) | any single or series of transactions involving any further disposal and lease back of Indosat Towers (or part(s) thereof) where the Facility Agent is satisfied in its discretion and after consulting with accountants or telecommunications consultants, as it deems appropriate, that the higher of aggregate market value or aggregate consideration receivable, when aggregated with the higher of market value or consideration receivable under (iv) above does not exceed 20% of Indosat’s total assets, that the consideration received or receivable is used to fund the Borrower’s business activities and operations and not to fund any dividend or distribution to its shareholders, and provided that any such disposal and lease back: (i) is entered into with a counterparty which is competent to own and operate Telecommunication Assets and will result in the Borrower or Group continuing to have sufficient use of and access to the Indosat Towers to allow it to carry on its business until after the Final Maturity Date, (ii) will not have any adverse commercial impact to the business and financial standing of the Borrower, and (iii) will be in compliance with the prevailing rules and regulations for telecommunications and related businesses in Indonesia; or |
(vi) | any single or series of transactions involving any additional disposal and lease back of Indosat Towers (or part(s) thereof) with the prior written consent of the Facility Agent acting on instructions of the Majority Lenders, such consent not to be unreasonably withheld (it being accepted that the Lenders will want to have concluded their consultations with Sinosure), where the higher of aggregate market value or aggregate consideration receivable, when aggregated with the higher of aggregate market value or aggregate consideration receivable under (iv) and (v) above exceeds 20% of Indosat’s total assets, provided that, after consulting with accountants or telecommunications consultants, as it deems appropriate, that the consideration received or receivable is used to fund the Borrower’s business activities and operations and not to fund any dividend or distribution to its shareholders, and provided further that any such disposal and lease back: (i) is entered into with a counterparty which is competent to own and operate Telecommunication Assets and will result in the Borrower or Group continuing to have sufficient use of and access to the Indosat Towers to allow it to carry on its business until after the Final Maturity Date, (ii) will not have any adverse commercial impact to the business and financial standing of the Borrower, and (iii) will be in compliance with the prevailing rules and regulations for telecommunications and related businesses in Indonesia. |
21.5 | Change of Business |
The Borrower shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, engage in any business activities other than in the Telecommunications Business except where such other business activities do not exceed one percent of the total consolidated tangible assets of the Borrower.
21.6 | Insurance |
(a) | The Borrower shall maintain insurances on and in relation to its business and assets with reputable underwriters or insurance companies against those risks and to the extent as is usual for companies carrying on the same of substantially similar business in Indonesia, including third party liability insurance and (after the successful completion of the Satellite In-Orbit Acceptance Review) Launch Insurance and In-Orbit Insurance. |
43
(b) | The Borrower shall procure that the Supplier puts in place and maintains (prior to the successful completion of the Satellite In-Orbit Acceptance Review) the Launch Insurance and In-Orbit Insurance in an aggregate amount not less than the Total Commitments and the full amount of the COFACE Facility. |
(c) | To the extent that the cost of the Launch Insurance and In-Orbit Insurance exceeds US$23,700,000 the Borrower shall meet such excess cost on a timely and as required basis. |
21.7 | Taxation |
The Borrower shall (and it shall ensure that each member of the Group will) duly pay and discharge all Taxes imposed upon it or its assets (save to the extent that (i) payment is being contested in good faith, (ii) adequate reserves are being maintained for those Taxes and (iii) payment can be lawfully withheld).
21.8 | Liens |
The Borrower shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, create, incur, assume or suffer to exist:
(a) | any Lien upon or with respect to any Project Property or assign any right to receive income from any Project Property, other than pursuant to the Finance Documents; and |
(b) | any Lien upon or with respect to any Property that is not Project Property, whether owned at the date of this Agreement or thereafter acquired, or any interest therein or any income or profits therefrom, provided that the provisions of this paragraph (b) shall not prevent the creation, incurrence, assumption or existence of any Permitted Liens. |
21.9 | Merger, Consolidation and Sale of Property |
The Borrower shall not, and shall not permit any Restricted Subsidiary to, merge, consolidate or amalgamate with or into any other person (other than a merger of a Wholly-Owned Subsidiary into the Borrower), or sell, transfer, assign, lease, convey or otherwise dispose of all or substantially all its Property in any one transaction or series of transactions unless:
(a) | the Borrower shall be the surviving person (the “Surviving person”) or, in the case of a merger, consolidation or amalgamation of a Restricted Subsidiary, the Surviving person (if other than the Borrower) formed by such merger, consolidation or amalgamation or to which such sale, transfer, assignment, lease, conveyance or disposition is made shall be a corporation organized and existing under the laws of the Republic of Indonesia; |
(b) | in the case of a sale, transfer, assignment, lease, conveyance or other disposition of all or substantially all the Property of such Restricted Subsidiary, such Property shall have been transferred as an entirety or virtually as an entirety to one person; and |
(c) | immediately before and after giving effect to such transaction or series of transactions on a pro forma basis (and treating, for purposes of this sub-Clause (c), any Debt that becomes, or is anticipated to become, an obligation of the Surviving person or any Restricted Subsidiary as a result of such transaction or series of transactions as having been Incurred by the Surviving person or such Restricted Subsidiary at the time of such transaction or series of transactions), no Default or Event of Default shall have occurred and be continuing. |
44
21.10 | Further Assurance |
The Borrower shall at its own cost comply with the following filing and notification requirements and provide evidence of the same to the Facility Agent on request by the Facility Agent from time to time:
(a) | an initial report (accompanied by a copy of this Agreement) to Bank Indonesia, the Ministry of Finance and the Team for the Coordination of the Management of Offshore Commercial Loans (the PKLN Team) within ten (10) days of the date of this Agreement; |
(b) | a monthly report of its payment obligations (and any other related information) under this Agreement to Bank Indonesia (in accordance with the provisions and procedures of Bank Indonesia Regulation No. 2/22/PBI/2000 dated 2 October 2000 (as may be further amended), for so long as such regulation remains in effect, on the Obligation to Report Offshore Loans and its implementing regulations prevailing from time to time); |
(c) | any information relating to this Agreement (other than referred to in paragraph (a) above) that must be reported to any other competent Governmental Agency in Indonesia in accordance with applicable laws and/or regulations, if failure to do so would materially impair: |
(i) | its ability to perform its payment or other material obligations under the Finance Documents; or |
(ii) | the validity, legality, enforceability or admissibility in evidence in Indonesia of any Finance Document; and |
(d) | if required by Bank Indonesia Regulation No. 4/2/PBI/2002 dated 28 March 2002 as amended by Bank Indonesia Regulation Xx. X/X XXX00000 dated 31 January 2003 (as may be further amended) and its implementing regulations prevailing from time to time, an appropriate periodical foreign exchange flow activities report in connection with this Agreement, if failure to do so would materially impair: |
(i) | its ability to perform its payment or other material obligations under the Finance Documents; or |
(ii) | the validity, legality, enforceability or admissibility in evidence in Indonesia of any Finance Document. |
21.11 | Project |
The Borrower shall maintain and preserve the Project and all of its other related assets necessary or useful in the proper conduct of the Project in good working order and in such condition that the Project will have the capacity and functional ability to perform, on a continuing basis (ordinary wear and tear excepted), in normal commercial operation. The Borrower shall cause the Project to be operated, serviced and maintained in all material respects in accordance and compliance with prudent operating practices reasonably satisfactory to the Facility Agent, the terms and conditions of all insurance policies maintained with respect to the Project and the launch and orbit of the Satellite at any time, all requirements of law and all Authorisations applicable to the operation of the Project and the launch and orbit of the Satellite, and the terms of the Contract.
45
21.12 | Contract |
(a) | The Borrower shall perform and observe in all material respects all of its covenants and agreements contained in the Contract, shall use reasonable endeavours to prevent the termination of the Contract in accordance with the terms thereof, and shall take any and all action as may be reasonably necessary promptly to enforce its material rights and to collect any and all material sums due to it under the Contract. |
(b) | The Borrower shall further undertake to not consent to any modification to the Contract without the prior written consent of the Majority Lenders and Sinosure concerning the parties to the Contract, the payment terms and price, the purpose, the delivery schedule, and such other terms which may affect the financing under Chinese export credit on maintenance of Sinosure Cover. |
21.13 | Sinosure Cover |
(a) | The Borrower shall not take any action that is reasonably likely to adversely affect the benefits of the Lenders in the Sinosure Cover. |
(b) | The Borrower shall promptly provide such information or documents or take or refrain from taking such action as requested by the Facility Agent in order to retain the Lenders’ benefits in the Sinosure Cover. |
(c) | The Borrower shall notify the Facility Agent of the occurrence of any political risk event (as defined in the Sinosure Cover) or any other event that is likely to result in a claim under the Sinosure Cover, within five (5) Business Days of its becoming aware of the occurrence of such event. |
(d) | Promptly following its receipt from the Facility Agent after the end of the Availability Period, the Borrower shall sign and deliver to the Facility Agent for onward transmission to Sinosure, an original schedule of Repayment Dates and the corresponding Repayment Instalments which shall have been prepared by the Facility Agent and signed by the Facility Agent for the Lenders. |
21.14 | Suspension and Relaxation of Certain Covenants |
(a) | Following the first day that (a) the Borrower has Investment Grade Ratings from both Rating Agencies and (b) no Default has occurred and is continuing, the Borrower may request the Facility Agent to agree on behalf of the Majority Lenders (with the consent of Sinosure) that the Borrower and the Restricted Subsidiaries will: |
(i) | Only be subject to the terms of Clause 21.4 (Disposal of non-Project Property) with the reference to “US$20,000,000” being replaced by a reference to “5% of Equity”; and |
(ii) | Not be subject to Clause 21.5 (Change of Business). |
(b) | In the event that the Facility Agent notifies the Borrower that the Majority Lenders agree to that request (that notification date being the “Suspension Date”), the Borrower and the Restricted Subsidiaries will only be subject to Clause 21.4 (Disposal of non-Project Property) in its amended form and will not be subject to Clause 21.5 (Change of Business) from the Suspension Date to any subsequent date (the “Reversion Date”), when one or both of the Rating Agencies withdraws its ratings or downgrades the ratings assigned to the Borrower below the required Investment Grade Ratings or a Default |
46
occurs and is continuing, at which time the Borrower and the Restricted Subsidiaries will again be subject to the original form of Clause 21.4 (Disposal of non-Project Property) and to Clause 21.5 (Change of Business). The period of time between the Suspension Date and the Reversion Date is referred to in this Clause 21.14 as the “Suspension Period”. Notwithstanding the reinstatement, no Default will be deemed to have occurred as a result of a failure to comply with Clause 21.4 (Disposal of non-Project Property) in its original form, and with Clause 21.5 (Change of Business) during the Suspension Period. |
22. | EVENTS OF DEFAULT |
Each of the events or circumstances set out in Clause 22 is an Event of Default.
22.1 | Non-payment |
The Borrower does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless:
(a) | its failure to pay any such amount is caused by: |
(i) | administrative or technical error; or |
(ii) | a Disruption Event; and |
(b) | payment of such amount is made within five (5) Business Days of its due date. |
22.2 | Financial covenants |
Any requirement of Clause 20 (Financial Covenants) is not satisfied unless the Borrower demonstrates that such failure is capable of remedy and is remedied within the earlier of:
(a) | 30 days of the Facility Agent giving notice to the Borrower; or |
(b) | 30 days of the Borrower becoming aware of the failure to comply. |
22.3 | Other obligations |
(a) | The Borrower does not comply with any provision of the Finance Documents (other than those referred to in Clause 19.5 (Notification of default) insofar as it relates to notification of a Default which is not yet an Event of Default, Clause 22.1 (Non-payment) and Clause 22.2 (Financial covenants)). |
(b) | No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within the earlier of: |
(i) | within 30 days of the Facility Agent giving notice to the Borrower; or |
(ii) | within 30 days of the Borrower becoming aware of the failure to comply. |
22.4 | Misrepresentation |
Any representation or statement made or deemed to be made by the Borrower in the Finance Documents or any other document delivered by or on behalf of the Borrower under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made (a “misrepresentation”), unless the circumstances giving rise to the misrepresentation are capable of remedy and are remedied within 30 days of written notice from the Facility Agent to the Borrower.
47
22.5 | Cross default |
(a) | Any Debt of any member of the Group is not paid when due nor within any originally applicable grace period. |
(b) | Any Debt of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described). |
(c) | Any creditor of any member of the Group becomes entitled to declare any Debt of any member of the Group due and payable prior to its specified maturity as a result of an event of default (however described). |
(d) | No Event of Default will occur under this Clause 22.5 if the aggregate amount of Debt or commitment for Debt falling within paragraphs (a) to (d) above is less than US$20,000,000 (or its equivalent in any other currency or currencies). |
22.6 | Insolvency |
(a) | A member of the Group is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness. |
(b) | The value of the assets of any member of the Group is less than its liabilities (taking into account contingent and prospective liabilities). |
(c) | A moratorium is declared in respect of any indebtedness of any member of the Group. |
22.7 | Insolvency proceedings |
Any corporate action, legal proceedings or other procedure or step is taken in relation to:
(a) | the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any member of the Group other than a solvent liquidation or reorganisation of any member of the Group which is not the Borrower; |
(b) | a composition, compromise, assignment or arrangement with any creditor of any member of the Group; |
(c) | the appointment of a liquidator (other than in respect of a solvent liquidation of a member of the Group which is not the Borrower), receiver, administrative receiver, administrator, compulsory or interim manager or other similar officer in respect of any member of the Group or any of its assets; or |
(d) | enforcement of any Security over any assets of any member of the Group, |
or any analogous procedure or step is taken in any jurisdiction and is not discharged or stayed within 30 days of commencement.
22.8 | Expropriation or similar process |
Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of a member of the Group having an aggregate value of US$20,000,000 and is not discharged or stayed within 30 days.
48
22.9 | Unlawfulness |
It is or becomes unlawful for the Borrower to perform any of its payment or other material obligations under the Finance Documents.
22.10 | Repudiation |
The Borrower repudiates a Finance Document or evidences an intention to repudiate a Finance Document.
22.11 | Material Licence |
Any of:
(a) | the revocation, suspension or termination of any Material Licence; or |
(b) | the failure of the Borrower to renew or extend, or the expiration, release, surrender or transfer of, any Material Licence. |
22.12 | Material adverse change |
Any event or circumstance occurs which the Majority Lenders reasonably believe will have a Material Adverse Effect.
22.13 | Contract |
At any time prior to (i) the date of successful completion of the In-Orbit Acceptance Review for the first Satellite or, if that does not occur, then (ii) the date when the Borrower executes the Assignment of Insurance Proceeds, the Contract is terminated or suspended or the Borrower or the Supplier repudiates the Contract, or the Borrower or Supplier defaults in the observance or performance of any of the material covenants or agreements contained in the Contract.
22.14 | Project |
(a) | In the reasonable opinion of the Lenders, the Borrower shall have abandoned the continuing operation of the Project. |
(b) | A material part of the Project shall be destroyed or there occurs a Total Loss or Constructive Total Loss and, as a result thereof: |
(i) | the Satellite (other than in the circumstances giving rise to the Supplier’s obligation under the Contract to deliver a Replacement Satellite); or |
(ii) | Replacement Satellite delivered pursuant to the Contract (other than in the circumstances giving rise to the Supplier’s obligation under the Contract to reimburse the Borrower in full for the cost of such Replacement Satellite), |
shall be unable to be launched or operate for a period in excess of three (3) Months.
22.15 | Assignment of Insurance Proceeds |
The Borrower fails to enter into the Assignment of Insurance Proceeds and (if applicable) within 60 days of the Satellite suffering a Total Loss or Constructive Total Loss except in circumstances where the Contract is cancelled, repudiated or terminated prior to the expiry of those 60 days.
22.16 | Acceleration |
On and at any time after the occurrence of an Event of Default which is continuing and has not been waived the Facility Agent may, and shall if so directed by the Majority Lenders, by notice to the Borrower:
(a) | cancel the Total Commitments whereupon they shall immediately be cancelled; |
49
(b) | declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; |
(c) | declare that all or part of the Loan be payable on demand, whereupon they shall immediately become payable on demand by the Facility Agent on the instructions of the Majority Lenders; and/or |
(d) | instruct the Security Agent to enforce the rights of the Finance Parties under the Délégation and/or the Assignment of Insurance Proceeds. |
50
SECTION 8
CHANGES TO PARTIES
23. | CHANGES TO THE LENDERS |
23.1 | Assignments and transfers by the Lenders |
Subject to this Clause 23, a Lender (the “Existing Lender”) may:
(a) | assign any of its rights; or |
(b) | transfer by novation any of its rights and obligations, to another bank or financial institution (the “New Lender”), |
subject to the prior approval of Sinosure and provided that:
(i) | the New Lender’s participation is at all times booked with its Facility Office located in France (which shall be deemed satisfied upon the Borrower being provided with a copy of the New Lender’s domicile in France); and |
(ii) | the assignment or transfer neither result in there being more than 5 Lenders (including HSBC France) nor in HSBC France being unable alone to constitute “Majority Lenders”. |
23.2 | Conditions of assignment or transfer |
(a) | The written consent of the Borrower (which shall not be unreasonably withheld or delayed) is required for an assignment or transfer by an Existing Lender, unless a Default is continuing. |
(b) | An assignment will only be effective on: |
(i) | receipt by the Facility Agent of written confirmation from the New Lender (in form and substance satisfactory to the Facility Agent) that the New Lender will assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender; |
(ii) | performance by the Facility Agent of all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to such assignment to a New Lender, the completion of which the Facility Agent shall promptly notify to the Existing Lender and the New Lender; and |
(iii) | Sinosure’s issuance of an endorsement to the Sinosure Cover confirming that the New Lender becomes an insured party under the Sinosure Cover. |
(c) | A transfer will only be effective if the procedure set out in Clause 23.5 (Procedure for transfer) is complied with. |
(d) | If: |
(i) | a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and |
(ii) | the Borrower would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 13 (Tax Gross Up and Indemnities) or Clause 14 (Increased Costs), then the New Lender or |
51
Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred. |
23.3 | Assignment or transfer fee |
The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Facility Agent (for its own account) a fee of US$2,500.
23.4 | Limitation of responsibility of Existing Lenders |
(a) | Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for: |
(i) | the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents; |
(ii) | the financial condition of the Borrower; |
(iii) | the performance and observance by the Borrower of its obligations under the Finance Documents or any other documents; or |
(iv) | the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document, |
and any representations or warranties implied by law are excluded.
(b) | Each New Lender confirms to the Existing Lender and the other Finance Parties in the case of (i) and (ii) below, and to the Borrower in the case of (iii) below, that: |
(i) | it has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of the Borrower and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; |
(ii) | it will continue to make its own independent appraisal of the creditworthiness of the Borrower and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force; and |
(iii) | it acknowledges and agrees to the provisions of sub-Clause (b)(ii) of Clause 23.2 (Conditions of assignment or transfer). |
(c) | Nothing in any Finance Document obliges an Existing Lender to: |
(i) | accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 23; or |
(ii) | support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by the Borrower of its obligations under the Finance Documents or otherwise. |
52
23.5 | Procedure for transfer |
(a) | Subject to the conditions set out in Clause 23.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (c) below when the Facility Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Facility Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate. |
(b) | The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender once it is satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations in relation to the transfer to such New Lender. |
(c) | On the Transfer Date: |
(i) | to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance Documents each of the Borrower and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their respective rights against one another under the Finance Documents shall be cancelled (being the “Discharged Rights and Obligations”); |
(ii) | the Borrower and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and Obligations only insofar as the Borrower and the New Lender have assumed and/or acquired the same in place of the Borrower and the Existing Lender; |
(iii) | the Facility Agent, the Arranger, the Security Agent, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Facility Agent, the Arranger, the Security Agent, and the Existing Lender shall each be released from further obligations to each other under the Finance Documents; and |
(iv) | the New Lender shall become a Party as a “Lender”. |
23.6 | Copy of Transfer Certificate to Borrower |
The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate, send to the Borrower a copy of that Transfer Certificate.
23.7 | Disclosure of information |
Subject to the proviso below, as a condition to Lender being furnished with information by the Borrower pursuant to this Agreement, it agrees to treat any information (whether prepared by the Borrower, its advisers or otherwise) which is furnished to it by or on behalf of the Borrower (the “Confidential Information”) in accordance with the provisions of this Clause 23.7 and take or abstain from taking certain other actions set forth in this Clause 23.7. The Confidential Information does not include information which (i) is already in the Lender’s possession, provided that such information is not known to
53
the Lender to be subject to another confidentiality agreement with or other obligation of secrecy to the Borrower or to another party, or (ii) is or becomes generally available to the public other than as a result of a disclosure by the Lender or any of the Lender’s directors, officers, employees, affiliates, agents or advisers (collectively, its “Representatives”), or (iii) becomes available to the Lender on a non-confidential basis from a source other than the Borrower or its directors, officers, employees, agents or advisers, which source, to the best of the Lender’s knowledge after due inquiry, is not known by the Lender to be bound by a confidentiality agreement with or other obligation of secrecy to the Borrower or another party. Subject to the proviso below, the Lender agrees that the Confidential Information will be used solely for the purpose of the Finance Documents and that such information will be kept strictly confidential by the Lender and its Representatives, provided, however, that (i) any of such information may be disclosed to its Representatives who need to know such information for the purpose of the Finance Documents (it being understood that such directors, officers, employees, agents and advisers shall be informed by the Lender of the confidential nature of such information and shall be instructed by the Lender to treat such information confidentially and that the Lender will be responsible if they should fail to comply with such instruction), (ii) any disclosure of such information may be made with the prior written consent of the Borrower, and (iii) any disclosure of such information may be made pursuant to a subpoena or order issued by a court of competent jurisdiction. In the event that the Lender receives a request or is required to disclose any such information under such subpoena or order, it agrees (subject to compliance with applicable law or regulation) to (a) promptly notify the Borrower of such request or requirement, (b) consult with the Borrower on the advisability of taking steps to resist or narrow such a request, and (c) if disclosure is required or deemed advisable, cooperate with the Borrower in any attempt that it may make to obtain an order or other reliable assurance that confidential treatment will be accorded to designated portions of such information,
provided that any Lender and Sinosure may disclose to any ministry or governmental department in France (in accordance with its usual practice) and, subject to the written consent of the Borrower in the case of (a) and (b) below, any other person:
(a) | to (or through) whom that Lender assigns or transfers (or may potentially assign or transfer) all or any of its rights and obligations under this Agreement; |
(b) | with (or through) whom that Lender enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by reference to, this Agreement or the Borrower; |
(c) | to whom, and to the extent that, information is required to be disclosed by any applicable law or regulation or court order; |
(d) | to its professional advisers, officers, agents or employees; or |
(e) | for whose benefit that the Lender charges, assigns or otherwise creates Security (or may do so) pursuant to Clause 23.8 (Security over Lenders’ rights) |
any information about the Borrower, the Group and the Finance Documents as that Lender shall consider appropriate.
54
23.8 | Security over Lenders’ rights |
In addition to the other rights provided to Lenders under this Clause 23, each Lender may without consulting with or obtaining consent from the Borrower, at any time charge, assign or otherwise create Security in or over (whether by way of collateral or otherwise) all or any of its rights under any Finance Document to secure obligations of that Lender including:
(a) | any charge, assignment or other Security to secure obligations to a federal reserve or central bank; and |
(b) | in the case of any Lender which is a fund, any charge, assignment or other Security granted to any holders (or trustee or representatives of holders) of obligations owed, or securities issued, by that Lender as Security for those obligations or securities, |
except that no such charge, assignment or Security shall:
(c) | release a Lender from any of its obligations under the Finance Document or substitute the beneficiary of the relevant charge, assignment or Security for the Lender as a party to any of the Finance Documents; or |
(d) | require any payments to be made by the Borrower or grant to any person any more extensive rights than those required to be made or granted to the relevant Lender under the Finance Documents. |
23.9 | No rights for sub-participants |
Sub-participants shall not have any rights under this Agreement including but not limited to rights to participate in Lenders’ or Majority Lenders’ decisions or enjoy the benefit of any indemnity claims, those rights being conferred only upon the relevant Finance Parties.
24. | CHANGES TO THE BORROWER |
The Borrower may not assign any of its rights or transfer any of its rights or obligations under the Finance Documents.
55
SECTION 9
THE FINANCE PARTIES
25. | ROLE OF THE FACILITY AGENT, SECURITY AGENT AND THE ARRANGER |
25.1 | Appointment of the Facility Agent and the Security Agent |
(a) | Each other Finance Party appoints the Facility Agent to act as its agent under and in connection with the Finance Documents. |
(b) | Each other Finance Party appoints the Security Agent to act as security agent under and in connection with the Finance Documents. |
(c) | Each other Finance Party authorises the Facility Agent and the Security Agent to exercise the rights, powers, authorities and discretions specifically given to it under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions subject to the Sinosure Cover. |
25.2 | Duties of the Facility Agent and the Security Agent |
(a) | The Facility Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Facility Agent for that Party by any other Party. |
(b) | Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party. |
(c) | If the Facility Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties. |
(d) | If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Facility Agent or the Arranger) under this Agreement it shall promptly notify the other Finance Parties. |
(e) | The Facility Agent shall promptly send to the Security Agent such certification as the Security Agent may require pursuant to paragraph 6 (Basis of distribution) of Schedule 7 (Security Agency Provisions). |
(f) | The duties of the Facility Agent and Security Agent under the Finance Documents are solely mechanical and administrative in nature. |
(g) | The Facility Agent shall at all times consult with the Lenders to comply with any instructions given by Sinosure in accordance with the Sinosure Cover. |
25.3 | Role of the Arranger |
Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.
25.4 | Role of the Security Agent |
The Security Agent shall not be an agent of (except as expressly provided in any Finance Document) any Finance Party under or in connection with any Finance Document.
56
25.5 | No fiduciary duties |
(a) | Nothing in this Agreement constitutes the Facility Agent, the Security Agent or the Arranger as a trustee or fiduciary of any other person. |
(b) | Neither the Facility Agent, the Security Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account. |
25.6 | Business with the Group |
The Facility Agent, the Security Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.
25.7 | Rights and discretions of the Facility Agent and the Security Agent |
(a) | The Facility Agent and the Security Agent may rely on: |
(i) any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and
(ii) any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.
(b) | The Facility Agent and the Security Agent may assume, unless it has received notice to the contrary in its capacity as Facility Agent for the Lenders or, as the case may be, as Security Agent for the Finance Parties that: |
(i) | no Default has occurred (unless it has actual knowledge of a Default arising under Clause 22.1 (Non-payment)); and |
(ii) | any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised. |
(c) | Each of the Facility Agent and the Security Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts. |
(d) | Each of the Facility Agent and the Security Agent may act in relation to the Finance Documents through its personnel and agents. |
(e) | The Facility Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement. |
(f) | Notwithstanding any other provision of any Finance Document to the contrary, neither the Facility Agent, the Security Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality. |
25.8 | Majority Lenders’ instructions |
(a) | Unless a contrary indication appears in a Finance Document, each of the Facility Agent and the Security Agent shall (i) exercise any right, power, authority or discretion vested in it as Facility Agent or Security Agent in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Facility Agent or as the Security Agent for the Finance Parties) and (ii) not be liable for any act (or omission) if it acts (or refrains from taking any action) in accordance with an instruction of the Majority Lenders, provided always that any such instructions shall be consistent with those, if applicable, provided by Sinosure to the Facility Agent under the Sinosure Cover. |
57
(b) | Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties. |
(c) | Each of the Facility Agent and the Security Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions. |
(d) | In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) each of the Facility Agent and the Security Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders. |
(e) | Neither the Facility Agent nor the Security Agent is authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document. |
(f) | Each Lender agrees (for the benefit of the other Lenders) to take such action (as advised by the Facility Agent) as may be necessary or advisable at any time to comply with its obligations under or the conditions of the Sinosure Cover or to enable the Facility Agent to comply with its obligations under or the conditions of the Sinosure Cover. |
(g) | Each Lender agrees (for the benefit of the other Lenders) to comply with its obligations under the Sinosure Cover and to take such action as may be necessary to enable the Facility Agent to comply with its obligations under the Sinosure Cover. |
(h) | Each Lender irrevocably authorises the Facility Agent to take such action and exercise such rights, powers and discretions, notwithstanding the other provisions of this Agreement, as it may deem necessary for the purpose of preserving the Lenders’ rights under the Sinosure Cover. |
25.9 | Responsibility for documentation |
Neither the Facility Agent, the Security Agent nor the Arranger:
(a) | is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Facility Agent, the Security Agent, the Arranger, the Borrower or any other person given in or in connection with any Finance Document; or |
(b) | is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document. |
25.10 | Exclusion of liability |
(a) | Without limiting paragraph (b) below, the Facility Agent will not be liable for any action taken by it under or in connection with any Finance Document, unless directly caused by its gross negligence or wilful misconduct. |
58
(b) | No Party (other than the Facility Agent or the Security Agent) may take any proceedings against any officer, employee or agent of the Facility Agent or the Security Agent in respect of any claim it might have against the Facility Agent or the Security Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Facility Agent or the Security Agent may rely on this Clause subject to Clause 1.3 (Third party rights) and the provisions of the Contracts (Rights of Third Parties) Xxx 0000. |
(c) | Neither the Facility Agent nor the Security Agent will be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by it if it has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by it for that purpose. |
(d) | Nothing in this Agreement shall oblige the Facility Agent, the Security Agent or the Arranger to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Facility Agent, the Security Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Facility Agent, the Security Agent or the Arranger. |
25.11 | Lenders’ indemnity to the Facility Agent and the Security Agent |
Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify the Facility Agent and the Security Agent, within three (3) Business Days of demand, against any cost, loss or liability incurred by the Facility Agent or the Security Agent (otherwise than by reason of the gross negligence or wilful misconduct of the Facility Agent or the Security Agent) in acting as Facility Agent or Security Agent under the Finance Documents (unless the Facility Agent or Security Agent has been reimbursed by the Borrower pursuant to a Finance Document).
25.12 | Resignation of the Facility Agent or Security Agent |
Subject to the proviso set out at the end of this Clause 25.12:
(a) | the Facility Agent or Security Agent may resign and appoint one of its Affiliates as successor by giving notice to the other Finance Parties and the Borrower; |
(b) | alternatively the Facility Agent or Security Agent may resign by giving notice to the other Finance Parties and the Borrower, in which case the Majority Lenders (after consultation with the Borrower) may appoint a successor Facility Agent or Security Agent; |
(c) | if the Majority Lenders have not appointed a successor Facility Agent or Security Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the Facility Agent or Security Agent (after consultation with the Borrower) may appoint a successor Facility Agent or, as the case may be, Security Agent; |
(d) | the retiring Facility Agent or Security Agent shall, at its own cost, make available to its successor Facility Agent or Security Agent such documents and records and provide such assistance as its successor Facility Agent or Security Agent may reasonably request for the purposes of performing its functions as Facility Agent or Security Agent under the Finance Documents; and |
59
(e) | the Facility Agent’s or the Security Agent’s resignation notice shall only take effect upon the appointment of a successor and subject to the approval by Sinosure, |
provided that any successor Facility Agent or successor Security Agent shall also act as facility agent and security agent under the COFACE Facility.
(f) | Upon the appointment of a successor, the retiring Facility Agent or Security Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 25. Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. |
(g) | After consultation with the Borrower, the Majority Lenders may, by notice to the Facility Agent or, as the case may be, the Security Agent, require it to resign in accordance with paragraph (b) above. In this event, the Facility Agent or the Security Agent shall resign in accordance with paragraph (b) above. |
25.13 | Confidentiality |
(a) | The Facility Agent (in acting as Facility Agent for the Finance Parties) and the Security Agent (in acting as Security Agent for the Finance Parties) shall be regarded as acting through its respective agency or security agency division which in each case shall be treated as a separate entity from any other of its divisions or departments. |
(b) | If information is received by another division or department of the Facility Agent or, as the case may be, the Security Agent, it may be treated as confidential to that division or department and the Facility Agent or, as the case may be, the Security Agent, shall not be deemed to have notice of it. |
25.14 | Relationship with the Lenders |
The Facility Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five (5) Business Days prior notice from that Lender to the contrary in accordance with the terms of this Agreement.
25.15 | Credit appraisal by the Lenders |
Without affecting the responsibility of the Borrower for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms to the Facility Agent, the Security Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:
(a) | the financial condition, status and nature of each member of the Group; |
(b) | the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, Security, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; |
60
(c) | whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, Security, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and |
(d) | the adequacy, accuracy and/or completeness of any information provided by the Facility Agent, the Security Agent, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, Security, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document. |
25.16 | Facility Agent’s and Security Agent’s Management Time |
Any amount payable to the Facility Agent or the Security Agent under Clause 15.3 (Indemnity to the Facility Agent), Clause 17 (Costs and Expenses) and Clause 25.11 (Lenders’ indemnity to the Facility Agent and the Security Agent) shall include the cost of utilising the Facility Agent’s or, as the case may be, the Security Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Facility Agent or the Security Agent may notify to the Borrower and the Lenders.
25.17 | Deduction from amounts payable by the Facility Agent or the Security Agent |
If any Party owes an amount to the Facility Agent or the Security Agent under the Finance Documents the Facility Agent or the Security Agent may, after giving notice to that Party, deduct an amount not exceeding that amount from any payment to that Party which the Facility Agent or the Security Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.
25.18 | Security Agency provisions |
The provisions of Schedule 7 (Security Agency Provisions) shall bind each Party.
26. | CONDUCT OF BUSINESS BY THE FINANCE PARTIES |
No provision of this Agreement will:
(a) | interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; |
(b) | oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or |
(c) | oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. |
27. | SHARING AMONG THE FINANCE PARTIES |
27.1 | Payments to Finance Parties |
If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from the Borrower other than in accordance with Clause 28 (Payment Mechanics) and applies that amount to a payment due under the Finance Documents then:
(a) | the Recovering Finance Party shall, within three (3) Business Days, notify details of the receipt or recovery, to the Facility Agent; |
61
(b) | the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Facility Agent and distributed in accordance with Clause 28 (Payment Mechanics), without taking account of any Tax which would be imposed on the Facility Agent in relation to the receipt, recovery or distribution; and |
(c) | the Recovering Finance Party shall, within three (3) Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Facility Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 28.5 (Partial payments). |
27.2 | Redistribution of payments |
The Facility Agent shall treat the Sharing Payment as if it had been paid by the Borrower and distribute it between the Finance Parties (other than the Recovering Finance Party) in accordance with Clause 28.5 (Partial payments).
27.3 | Recovering Finance Party’s rights |
On a distribution by the Facility Agent under Clause 27.2 (Redistribution of payments), the Recovering Finance Party will be subrogated to the rights of the Finance Parties which have shared in the redistribution,
27.4 | Reversal of redistribution |
If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:
(a) | each Lender which has received a share of the relevant Sharing Payment pursuant to Clause 27.2 (Redistribution of payments) shall, upon request of the Facility Agent, pay to the Facility Agent for account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay); and |
(b) | that Recovering Finance Party’s rights of subrogation in respect of any reimbursement shall be cancelled and the Borrower will be liable to the reimbursing Finance Party for the amount so reimbursed. |
27.5 | Exceptions |
(a) | This Clause 27 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the Borrower. |
(b) | A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if: |
(i) | it notified that other Finance Party of the legal or arbitration proceedings; and |
62
(ii) | that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and did not take separate legal or arbitration proceedings. |
63
SECTION 10
ADMINISTRATION
28. | PAYMENT MECHANICS |
28.1 | Payments to the Facility Agent |
(a) | On each date on which the Borrower or a Lender is required to make a payment under a Finance Document, the Borrower (subject to Clause 28.10 (Payments to the Security Agent)) or that Lender shall make the same available to the Facility Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Facility Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment. |
(b) | Payment shall be made to such account in the principal financial centre of the country of that currency with such bank as the Facility Agent specifies. |
28.2 | Distributions by the Facility Agent |
Each payment received by the Facility Agent under the Finance Documents for another Party shall, subject to Clause 28.3 (Distributions to the Borrower), Clause 28.4 (Clawback), Clause 25.17 (Deduction from amounts payable by the Facility Agent or the Security Agent) and Clause 28.10 (Payments to the Security Agent) be made available by the Facility Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Facility Agent by not less than five (5) Business Days’ notice with a bank in the principal financial centre of the country of that currency.
28.3 | Distributions to the Borrower |
The Facility Agent and the Security Agent may (in accordance with Clause 29 (Set-Off) or otherwise apply any amount received by it for the Borrower in or towards payment (on the date and in the currency and funds of receipt) of any amount due from the Borrower under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.
28.4 | Clawback |
(a) | Where a sum is to be paid to the Facility Agent or the Security Agent under the Finance Documents for another Party, the Facility Agent or, as the case may be, the Security Agent, is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. |
(b) | If the Facility Agent or Security Agent pays an amount to another Party and it proves to be the case that it had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract) was paid shall on demand refund the same to the Facility Agent or, as the case may be, the Security Agent together with interest on that amount from the date of payment to the date of receipt by the Facility Agent or, as the case may be, the Security Agent, calculated by it to reflect its cost of funds. |
64
28.5 | Partial payments |
(a) | If the Facility Agent receives a payment that is insufficient to discharge all the amounts then due and payable by the Borrower under the Finance Documents, the Facility Agent shall apply that payment towards the obligations of the Borrower under the Finance Documents in the following order: |
(i) | first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Facility Agent, the Security Agent and the Arranger under the Finance Documents; |
(ii) | secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement; |
(iii) | thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and |
(iv) | fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. |
(b) | The Facility Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above. |
(c) | Paragraphs (a) and (b) above will override any appropriation made by the Borrower. |
28.6 | No set-off by the Borrower |
All payments to be made by the Borrower under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.
28.7 | Business Days |
(a) | Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not). |
(b) | During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date. |
28.8 | Currency of account |
(a) | Subject to paragraphs (b) and (c) below dollars is the currency of account and payment for any sum from the Borrower under any Finance Document. |
(b) | Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. |
(c) | Any amount expressed to be payable in a currency other than dollars shall be paid in that other currency. |
28.9 | Change of currency |
(a) | Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then: |
(i) | any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Facility Agent (after consultation with the Borrower); and |
65
(ii) | any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Facility Agent (acting reasonably). |
(b) | If a change in any currency of a country occurs, this Agreement will, to the extent the Facility Agent (acting reasonably and after consultation with the Borrower) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the relevant interbank market and otherwise to reflect the change in currency. |
28.10 | Payments to the Security Agent |
Notwithstanding any other provision of any Finance Document, at any time after any Security created by or pursuant to the Assignment of Insurance Proceeds becomes enforceable, the Security Agent may require:
(a) | the Borrower to pay all sums due under any Finance Document; or |
(b) | the Facility Agent to pay all sums received or recovered from the Borrower under any Finance Document, |
in each case as the Security Agent may direct for application in accordance with the terms of the Assignment of Insurance Proceeds.
29. | SET-OFF |
A Finance Party may set off any matured obligation due from the Borrower under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to the Borrower, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.
30. | NOTICES/COMMUNICATIONS |
30.1 | Communications in writing |
Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.
30.2 | Addresses |
The address, fax number and (if applicable) email address (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:
(a) | in the case of the Borrower, that identified with its name below; |
(b) | in the case of each Lender, that notified in writing to the Facility Agent on or prior to the date on which it becomes a Party; and |
66
(c) | in the case of the Facility Agent and the Security Agent, that identified with its name below, |
or any substitute address, fax number, email address or department or officer as the Party may notify to the Facility Agent (or the Facility Agent may notify to the other Parties, if a change is made by the Facility Agent) by not less than five (5) Business Days’ notice.
30.3 | Delivery |
(a) | Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective: |
(i) | if by way of fax, when received in legible form; |
(ii) | if by way of letter, when it has been left at the relevant address or five (5) Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address; or |
(iii) | if by way of email, if such email has complied with the rules under Clause 30.5 (Electronic communication), |
and, if a particular department or officer is specified as part of its address details provided under Clause 30.2 (Addresses), if addressed to that department or officer.
(b) | Any communication or document to be made or delivered to the Facility Agent or the Security Agent will be effective only when actually received by it and then only if it is expressly marked for the attention of the department or officer identified with its signature below (or any substitute department or officer as it shall specify for this purpose). |
(c) | All notices from or to the Borrower shall be sent through the Facility Agent. |
30.4 | Notification of address and fax number |
Promptly upon receipt of notification of an address, fax number and email address or change of address, fax number or email address pursuant to Clause 30.2 (Addresses) or changing its own address, fax number or email address, the Facility Agent shall notify the other Parties.
30.5 | Electronic communication |
(a) | Any communication to be made between the Facility Agent and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Facility Agent and the relevant Lender: |
(i) | agree that, unless and until notified to the contrary, this is to be an accepted form of communication; |
(ii) | notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and |
(iii) | notify each other of any change to their address or any other such information supplied by them. |
(b) | Any electronic communication made between the Facility Agent and a Lender will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender to the Facility Agent only if it is addressed in such a manner as the Facility Agent shall specify for this purpose. |
67
30.6 | English language |
(a) | Any notice given under or in connection with any Finance Document must be in English. |
(b) | All other documents provided under or in connection with any Finance Document must be: |
(i) | in English; or |
(ii) | if not in English, and if so required by the Facility Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document. |
31. | CALCULATIONS AND CERTIFICATES |
31.1 | Accounts |
In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.
31.2 | Certificates and Determinations |
Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.
31.3 | Day count convention |
Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days or, in any case where the practice in the relevant interbank market differs, in accordance with that market practice.
32. | PARTIAL INVALIDITY |
If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.
33. | REMEDIES AND WAIVERS |
No failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.
34. | AMENDMENTS AND WAIVERS |
34.1 | Required consents |
(a) | Subject to Clause 34.2 (Exceptions) and Clause 34.3 (Security Agent / Intercreditor terms), terms of this Agreement may not be amended or waived without the consent of the Majority Lenders, the Borrower and (where applicable) Sinosure and any such amendment or waiver will be binding on all Parties. |
68
(b) | An amendment or waiver which relates to the rights or obligations of the Facility Agent, the Security Agent or the Arranger may not be effected without the consent of the Facility Agent, the Security Agent or the Arranger. |
34.2 | Exceptions |
An amendment or waiver that has the effect of changing or which relates to:
(i) | the definition of “Majority Lenders” in Clause 1.1 (Definitions); |
(ii) | a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable; |
(iii) | any extension of a Repayment Date or Interest Payment Date, any increase to any Commitment or any other clause a change to which expressly requires the consent of all the Lenders; or |
(iv) | Clause 2.2 (Finance Parties’ rights and obligations), Clause 23 (Changes to the Lenders) or this Clause 34, |
shall not be made without the prior consent of all the Lenders.
34.3 | Security Agent / Intercreditor terms |
An amendment or waiver that has the effect of changing or which relates to:
(a) | an extension to the date of payment of any amount of principal or interest under this Agreement or the COFACE Facility; |
(b) | an increase in or extension of any Commitment under this Agreement or of any commitment under the COFACE Facility; |
(c) | the pro-rata entitlement to cancellation and application of any payment as between the Facility and the COFACE Facility pursuant to Clause 7.2 (Voluntary cancellation), Clause 7.3 (Voluntary prepayment) and Clause 7.4 (Mandatory prepayment) including related rights under the Délégation and (if implemented) the Assignment of Insurance Proceeds; |
(d) | the terms of Clause 25.12 (Resignation of the Facility Agent or Security Agent); or |
(e) | the terms of Clause 15 of Schedule 7, |
may not be amended or waived without the consent of each party to this Agreement and the COFACE Facility.
34.4 | Defined Terms in Contract |
In order to achieve consistency between the Finance Documents, the COFACE Facility and the Commercial Facility, any amendment to the Contract affecting definitions incorporated in to the Finance Documents may only be effective and binding by a written confirmation from the Facility Agent to the Borrower under this Agreement and an equivalent written confirmation to the Borrower by the facility agent for the COFACE Lenders under the COFACE Facility and by the facility agent for the lenders under the Commercial Facility.
69
34.5 | Sinosure |
Where a required amendment or waiver has not been accepted by Lenders or Majority Lenders, as appropriate, directly as a result of Sinosure, the Facility Agent agrees with the Borrower to use its reasonable endeavours to give the Borrower an opportunity to discuss the matter in question directly with Sinosure.
35. | COUNTERPARTS |
Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.
70
SECTION 11
GOVERNING LAW AND ENFORCEMENT
36. | GOVERNING LAW |
This Agreement is governed by, and shall be construed in accordance with, English law.
37. | ARBITRATION |
All dispute arising out of or in connection with this Agreement shall be finally settled in Singapore under the Rules of Arbitration of the International Chamber of Commerce (“the Rules”) by one or more arbitrators appointed in accordance with the said Rules.
For the avoidance of doubt, and as an independent stipulation, this agreement to arbitrate in Singapore is not intended to be and shall not be construed as a submission by either party to the jurisdiction of the Singapore courts.
This Agreement has been entered into on the date stated at the beginning of this Agreement.
71
SCHEDULE 1
NAME OF ORIGINAL LENDERS
Original Lenders |
Commitments | ||
HSBC France |
US$ | 44,200,000 |
72
SCHEDULE 2
CONDITIONS PRECEDENT
CONDITIONS PRECEDENT TO INITIAL UTILISATION
1. | The Borrower |
1.1 | A copy of the constitutional documents of the Borrower. |
1.2 | A copy of a resolution of the board of commissioners of the Borrower approving the financing and the terms of, and the transactions contemplated by, the Finance Documents to which it is a party. |
1.3 | A specimen of the signature of each person authorised by the resolution referred to in paragraph 1.2 above. |
1.4 | A certificate of the Borrower (signed by a director) confirming that borrowing the Total Commitments would not cause any borrowing or similar limit binding on the Borrower to be exceeded. |
1.5 | A certificate of an authorised signatory of the Borrower certifying that each copy document relating to it specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. |
2. | Security related |
2.1 | The Délégation executed by the parties thereto. |
3. | Legal opinions |
3.1 | A legal opinion of Linklaters, legal advisers to the Arranger and the Facility Agent in England, substantially in the form distributed to the Original Lenders prior to signing this Agreement. |
3.2 | A legal opinion of Hadiputranto, Hadinoto & Partners, legal advisers to the Arranger and the Facility Agent in Indonesia, substantially in the form distributed to the Original Lenders prior to signing this Agreement. |
3.3 | A legal opinion of Linklaters, legal advisers to the Arranger and the Facility Agent in France, substantially in the form distributed to the Original Lenders prior to signing this Agreement. |
3.4 | A legal opinion of Global Law Office, legal advisers to the Arranger and the Facility Agent in the People’s Republic of China, substantially in the form distributed to the Original Lenders prior to signing this Agreement. |
4. | Other documents and evidence |
4.1 | Original copies of any other Finance Documents not previously listed in this Schedule 2 (other than the Assignment of Insurance Proceeds) executed by the parties thereto. |
4.2 | A certified copy of the Contract and the Launch Services Contract. |
73
4.3 | Evidence that any agent for service of process, in relation to any proceedings before the Singapore arbitration and any Finance Document governed by English [or French] law has accepted its appointment. |
4.4 | The Original Financial Statements. |
4.5 | Evidence that the fees, costs and expenses then due from the Borrower pursuant to Clause 17 (Costs and Expenses) have been paid or will be paid by the Utilisation Date. |
4.6 | A certificate signed by an authorised officer of the Supplier confirming that the Contract has been duly executed by the Supplier and is in full force and effect. |
4.7 | A certificate signed by an authorised officer of the Launch Service Provider confirming that (a) the Launch Services Contract has been duly executed by the Launch Service Provider and is in full force and effect; (b) it has received the 15% advance payment; and (c) there is no breach of the Launch Services Contract. |
4.8 | The issuance by Sinosure of the Sinosure Cover in a form acceptable to the Facility Agent, with a confirmation from Sinosure that it has received payment in full of the Sinosure Premium and that the Sinosure Policy is in full force and effect. |
4.9 | A letter of undertaking signed by the Launch Service Provider and addressed to Sinosure in the form of the Buyer’s Export Credit Insurance Commitments as provided by Sinosure. |
4.10 | A written confirmation from the Launch Service Provider certifying that all approvals, authorizations and consents required in China in connection with the Launch Services Contract have been/will be obtained and are in full force and effect, or that no such approvals, authorizations and consents are required. |
4.11 | A written confirmation from the Borrower confirming the Contract is in full force and effect. |
4.12 | A list, certified by a duly authorized officer of the Launch Service Provider, of the names and specimen signatures of each person authorised to sign, (a) certificates, confirmations and undertakings required under this Agreement, and (b) any other document that the Launch Service Provider may present to the Facility Agent or the Lenders from time to time. Such evidence shall be updated by the Launch Service Provider if there shall be any change of such persons and/or their authority. |
4.13 | Evidence that the COFACE Facility has been executed and all conditions precedent to the initial disbursement have become effective (other than any corresponding condition relating to the effectiveness of the Facility). |
4.14 | Evidence that all insurances required under this Agreement to be established and maintained by the Borrower and the Supplier have been put in place and are effective. |
4.15 | A copy of each of the Authorisations necessary as of the date of the first Utilisation for the execution, entry into force and performance of the Contract and the implementation of the Project (including, inter alia, in respect of the purchase and import of goods to be supplied and services to be rendered to the Borrower in accordance with the terms of the Contract and operation of the Satellite), each to be in full force and effect. |
74
4.16 | A copy of the approval from the Board of Commissioners and the Board of Directors of the Borrower and any other Authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary or desirable (if it has notified the Borrower accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document. |
75
SCHEDULE 3
DOCUMENTS REQUIRED FOR UTILISATION
1. | An appropriate invoice issued by the Supplier in accordance with Clause 9 of the Contract, with an attachment of (X) a certificate signed by the Launch Service Provider certifying the Chinese Content under the Launch Services Contract and (Y) an appropriate invoice issued by the Launch Services Provider to the Supplier pursuant to the Launch Services Contract; and |
[Note: HSBC to confirm if there is any other document required.]
76
SCHEDULE 4
FORM OF NOTICE FROM THE SUPPLIER
From: |
[Supplier] |
|||||
To: |
HSBC France |
|||||
Dated: [ ] |
Dear Sirs
Sinosure-covered Term Loan Facility Agreement dated [ ] (the “Agreement”) (HSBC Ref:XXX)
1. | We refer to the Agreement. This is the notice from the Supplier as referred to in Clause 5.1 of the Agreement. Terms defined in the Agreement have the same meaning in this notice unless given a different meaning in this notice. |
2. | Please see attached a certified copy of the invoice from us to the Borrower in respect of the payment for the launch services under the Contract, being the amount of US$[ ], together with a certified copy of the invoice from the Launch Service Provider to us under the Launch Services Contract with an amount of US$[ ] and the certificate signed by the Launch Service Provider. |
3. | We hereby instruct you to directly credit the proceeds of this Utilisation to the bank account as designated below: |
Proposed Utilisation Date: |
[ ] (or, if that is not a Business Day, the next Business Day) | |
Amount: |
US$[ ] | |
Bank Account: |
Bank of Communications, Beijing Branch SWIFT: ACCOUNT NAME: Beijing Talentway Technology Corporation Account No.: 110060576146300001883 |
Yours faithfully, |
||
|
| |
duly authorised by and for and on behalf of [Supplier] |
77
Appendix
From: |
[Launch Service Provider] |
|||||
To: |
[Supplier] |
|||||
Dated: [ ] |
Dear Sirs
Sinosure-covered Term Loan Facility Agreement dated [ ] (the “Agreement”) (HSBC Ref:XXX)
1. | We refer to the Agreement. This is the appendix as referred to in the notice from the Supplier. Terms defined in the Agreement have the same meaning in this appendix unless given a different meaning herein. |
2. | We enclose a commercial invoice issued by us as the Launch Service Provider pursuant to the Launch Services Contract, being an amount of US$[ ] (the “Invoice Amount”). |
3. | We certify that the Invoice Amount is comprised of: |
ii. | Chinese Content: US$[ ]; and |
iii. | Non-Chinese Content: US$[ ].* |
4. | We warrant that: |
(i) | the Invoice Amount does not include any amounts which have already been claimed by us under the Launch Services Contract; |
(ii) | the Invoice Amount does not include any amount in respect of any matter currently the subject of an arbitration or dispute resolution nor, to the best of our knowledge and belief, will it be the subject of an arbitration or dispute resolution; and |
(iii) | there is no default under the Launch Services Contract which remains in full force and effect. |
5. | The Invoice Amount should be credited to the following account: |
TO: Bank of Communications, Beijing Branch
SWIFT:
ACCOUNT NAME: Beijing Talentway Technology Corporation
Account No.: 110060576146300001883
Yours faithfully, |
||
|
| |
duly authorised by and for and on behalf of
Beijing Talentway Technology Corporation |
Encl.:
[The commercial invoice from the Launch Service Provider]
78
SCHEDULE 5
FORM OF TRANSFER CERTIFICATE
To: |
[ ] as Facility Agent | |
From: |
[The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”) | |
Dated: |
PT Indosat Tbk - Facility Agreement
dated [ ] 2007 (the “Agreement”)
1. | We refer to the Agreement. This is a Transfer Certificate, Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this Transfer Certificate. |
2. | We refer to Clause 23.5 (Procedure for transfer): |
2.1 | The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 23.5 (Procedure for transfer). |
2.2 | The proposed Transfer Date is [ ]. |
2.3 | The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 30.2 (Addresses) are set out in the Schedule. |
3. | The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 23.4 (Limitation of responsibility of Existing Lenders). |
4. | This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer Certificate. |
5. | This Transfer Certificate is governed by English law. |
79
THE SCHEDULE
Commitment/rights and obligations to be transferred
[insert relevant details]
[Facility Office address, fax number and attention details for notices and account details for payments, ]
[Existing Lender] |
[New Lender] | |
By: |
By: |
This Transfer Certificate is accepted by the Facility Agent and the Transfer Date is confirmed as [ ].
[Facility Agent]
By:
80
SCHEDULE 6
TIMETABLES
Delivery of an appropriate invoice and any other documents required under Schedule 3 (Documents Required for Utilisation) |
U-5 9.30am CET | |
Facility Agent notifies the Lenders of the Utilisation |
U-5 3.00pm CET | |
LIBOR is fixed |
Quotation Day (U-2) as of 11:00 a.m. (London time) |
“U” = date of Utilisation
“U - X” = X Business Days prior to date of Utilisation
“CET” = Central European Time
81
SCHEDULE 7
SECURITY AGENCY PROVISIONS
1. | Definitions |
In this Schedule:
“Security Property” means all right, title and interest in:
(a) | the benefit of the undertakings in the Délégation; |
(b) | the benefit of the undertakings in the Assignment of Insurance Proceeds; and |
(c) | all sums received or recovered by the Security Agent pursuant to the above and any assets representing the same. |
2. | Declaration of trust |
(a) | The Security Agent and each other Finance Party agree that the Security Agent shall hold the Security Property as agent for the Finance Parties on the terms of the Finance Documents. |
3. | Defects in Security |
The Security Agent shall not be liable for any failure or omission to perfect, or defect in perfecting, the Security created pursuant to any Security Document, including:
(a) | failure to obtain any Authorisation for the execution, validity, enforceability or admissibility in evidence of any Security Document; or |
(b) | failure to effect or procure registration of or otherwise protect or perfect any of the Security created by the Security Documents under any laws in any territory. |
4. | Retention of documents |
The Security Agent may hold title deeds and other documents relating to any of the Security Property in such manner as it sees fit.
5. | Indemnity out of Security Property |
The Security Agent and every receiver, delegate, attorney, agent or other similar person appointed may indemnify itself out of the Security Property against any cost, loss or liability incurred by it in that capacity (otherwise than by reason of its own gross negligence or wilful misconduct).
6. | Basis of distribution |
To enable it to make any distribution, the Security Agent may fix a date as at which the amount of the Liabilities is to be calculated and may require, and rely on, a certificate from any Finance Party giving details of:
(a) | any sums due or owing to any Finance Party as at that date; and |
(b) | such other matters as it thinks fit. |
82
7. | No duty to collect payments |
The Security Agent shall not have any duty:
(a) | to ensure that any payment or other financial benefit in respect of any of the Security Property is duly and punctually paid, received or collected; or |
(b) | to ensure the taking up of any (or any offer of any) stocks, shares, rights, moneys or other property accruing or offered at any time by way of interest, dividend, redemption, bonus, rights, preference, option, warrant or otherwise in respect of any of the Security Property. |
8. | Appropriation |
(a) | Each Party irrevocably waives any right to appropriate any payment to, or other sum received, recovered or held by, the Security Agent in or towards payment of any particular part of the Liabilities and agrees that the Security Agent shall have the exclusive right to do so. |
(b) | Paragraph (a) above will override any application made or purported to be made by any other person. |
9. | Investments |
All money received or held by the Security Agent under the Finance Documents may, in the name of, or under the control of, the Security Agent:
(a) | be invested in any investment it may select; or |
(b) | be deposited at such bank or institution (including itself any other Finance Party or any Affiliate of any Finance Party) as it thinks fit. |
10. | Suspense Account |
Subject to paragraph 14 below the Security Agent may:
(a) | hold in an interest bearing suspense account any money received by it from the Borrower; and |
(b) | invest an amount equal to the balance from time to time standing to the credit of that suspense account in any of the investments authorised by paragraph 12 above. |
11. | Timing of Distributions |
Distributions by the Security Agent shall be made as and when determined by it.
12. | Delegation |
(a) | The Security Agent may: |
(i) | employ and pay an agent selected by it to transact or conduct any business and to do all acts required to be done by it (including the receipt and payment of money); |
(ii) | delegate to any person on any terms (including power to sub-delegate) all or any of its functions; and |
83
(iii) | with the prior consent of the Majority Lenders, appoint, on such terms as it may determine, or remove, any person to act either as separate or joint security trustee or agent with those rights and obligations vested in the Security Agent by this Agreement, the Délégation or the Assignment of Insurance Proceeds. |
(b) | The Security Agent will not be: |
(i) | responsible to anyone for any misconduct or omission by any agent, delegate or security trustee or agent appointed by it pursuant to paragraph (a) above; or |
(ii) | bound to supervise the proceedings or acts of any such agent, delegate or security trustee or agent, |
provided that it exercises reasonable care in selecting that agent, delegate or security trustee or agent.
13. | Unwinding |
Any appropriation or distribution which later transpires to have been or is agreed by the Security Agent to have been invalid or which has to be refunded shall be refunded and shall be deemed never to have been made.
14. | Lenders |
The Security Agent shall be entitled to assume that each Lender is a Lender unless notified by the Facility Agent to the contrary.
15. | Relationship between the Lenders and the COFACE Lenders |
15.1 | Except where the Facility is required to be mandatorily prepaid as a result of the Launch Service Provider not being selected to launch the Replacement Satellite: |
(a) | Payments received by the Security Agent under the Délégation in respect of the Termination Payments and the Supplier’s Contract Payments shall be applied towards the repayment of the COFACE Facility. |
(b) | Payments received by the Security Agent under the Délégation in respect of a cancellation of the Contract and under the Assignment of Insurance Proceeds shall be applied towards the repayment of this Facility and the COFACE Facility on a pro-rata basis. |
15.2 | Clause 15 of Schedule 7 may not be amended or waived without the consent of each party to this Agreement and the COFACE Facility. |
84
SCHEDULE 8
FORM OF ASSIGNMENT OF INSURANCE PROCEEDS
85
SCHEDULE 9
FORM OF COMPLIANCE CERTIFICATE
To: |
[ ] as Facility Agent | |
From: |
PT Indosat Tbk | |
Dated: |
Dear Sirs
PT Indosat Tbk - Facility Agreement
dated [ ] 2007 (the “Agreement”)
1. | We refer to the Agreement. This is a Compliance Certificate. Terms defined in the Agreement have the same meaning in this Compliance Certificate unless given a different meaning in this Compliance Certificate. |
2. | We confirm that: |
[Insert details of financial covenants and whether the Borrower is in compliance with those covenants.]
3. | [We confirm that no Default is continuing.] |
Signed: |
| |
Officer of | ||
[Insert applicable certification language]
86
SIGNATURES
THE BORROWER | ||
By: |
| |
Name: |
Xxxxxx Swandi Sjam | |
Title: |
President Director | |
Address: |
Xx. Xxxxx Xxxxxxx Xxxxx Xx. 00 | |
Xxxxxxx 00000, Xxxxxxxxx | ||
Fax: |
x00 00 0000 0000 | |
Attention: |
Group Head of Treasury | |
THE ARRANGER | ||
HSBC FRANCE | ||
By: |
| |
Name: |
Xxxxxxxxxxx Xxxxx | |
Address: |
000 xxxxxx xxx Xxxxxx Xxxxxxx, 00000 Xxxxx Xxxxx 00, Xxxxxx | |
Fax: |
x000 00 00 0000 | |
Attention: |
Xxxxxx Xxxxxx / Brigitte Ait-Amar | |
THE FACILITY AGENT | ||
HSBC FRANCE | ||
By: |
| |
Name: |
Xxxxxxxxxxx Xxxxx | |
Address: |
000 xxxxxx xxx Xxxxxx Xxxxxxx, 00000 Xxxxx Xxxxx 00, Xxxxxx | |
Fax: |
x000 00 00 0000 | |
Attention: |
Xxxxxx Xxxxxx / Brigitte Ait-Amar | |
THE ORIGINAL LENDER | ||
HSBC FRANCE | ||
By: |
| |
Name: |
Xxxxxxxxxxx Xxxxx | |
Address: |
000 xxxxxx xxx Xxxxxx Xxxxxxx, 00000 Xxxxx Xxxxx 00, Xxxxxx | |
Fax: |
x000 00 00 0000 | |
Attention: |
Xxxxxx Xxxxxx / Brigitte Ait-Amar |
87
THE SECURITY AGENT | ||
HSBC FRANCE | ||
By: |
| |
Name: |
Xxxxxxxxxxx Xxxxx | |
Address: |
000 xxxxxx xxx Xxxxxx Xxxxxxx, 00000 Xxxxx Xxxxx 00, Xxxxxx | |
Fax: |
x000 00 00 0000 | |
Attention: |
Xxxxxx Xxxxxx / Brigitte Ait-Amar |
88