1
CONFORMED COPY
CREDIT AGREEMENT
dated as of
September 30, 1999
among
XXXXX 0 COMMUNICATIONS, INC.
The Borrowers named herein
The Lenders Party hereto
and
THE CHASE MANHATTAN BANK,
as Agent
---------------------------
CHASE SECURITIES INC.,
as Sole Book Manager and Lead Arranger
---------------------------
CHASE SECURITIES INC., XXXXXXX XXXXX
CREDIT PARTNERS L.P., X.X. XXXXXX SECURITIES INC.
AND XXXXXXX XXXXX XXXXXX INC.,
as Syndication Agents
================================================================================
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TABLE OF CONTENTS
Page
ARTICLE I
Definitions
SECTION 1.01. Defined Terms................................................. 1
SECTION 1.02. Classification of Loans and
Borrowings....................................41
SECTION 1.03. Terms Generally...............................................41
SECTION 1.04. Accounting Terms; GAAP........................................42
ARTICLE II
The Credits
SECTION 2.01. Commitments...................................................43
SECTION 2.02. Loans and Borrowings..........................................43
SECTION 2.03. Requests for Borrowings.......................................44
SECTION 2.04. Swingline Loans...............................................45
SECTION 2.05. Letters of Credit.............................................47
SECTION 2.06. Funding of Borrowings.........................................53
SECTION 2.07. Interest Elections............................................54
SECTION 2.08. Termination and Reduction of
Commitments...................................55
SECTION 2.09. Repayment of Loans; Evidence of Debt..........................56
SECTION 2.10. Automatic Revolving Commitment
Reductions; Amortization of
Term Loans....................................57
SECTION 2.11. Prepayment of Loans...........................................60
SECTION 2.12. Tranche B Facility Prepayment Fee.............................63
SECTION 2.13. Fees..........................................................63
SECTION 2.14. Interest......................................................65
SECTION 2.15. Alternate Rate of Interest....................................66
SECTION 2.16. Increased Costs...............................................66
SECTION 2.17. Break Funding Payments........................................68
SECTION 2.18. Taxes.........................................................69
SECTION 2.19. Payments Generally; Pro Rata Treatment;
Sharing of Set-offs...............................70
SECTION 2.20. Mitigation Obligations; Replacement
of Lenders....................................73
SECTION 2.21. Incremental Facility..........................................74
SECTION 2.22. Interim Loans.................................................76
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ARTICLE III
Representations and Warranties
SECTION 3.01. Organization; Powers..........................................81
SECTION 3.02. Authorization; Enforceability.................................81
SECTION 3.03. Governmental Approvals; No Conflicts..........................81
SECTION 3.04. Financial Condition; No Material
Adverse Change................................82
SECTION 3.05. Properties....................................................82
SECTION 3.06. Litigation and Environmental Matters..........................83
SECTION 3.07. Compliance with Laws and Agreements...........................84
SECTION 3.08. Investment and Holding Company Status.........................84
SECTION 3.09. Taxes.........................................................84
SECTION 3.10. ERISA.........................................................84
SECTION 3.11. Disclosure....................................................85
SECTION 3.12. Subsidiaries..................................................85
SECTION 3.13. Insurance.....................................................85
SECTION 3.14. Labor Matters.................................................85
SECTION 3.15. Intellectual Property.........................................86
SECTION 3.16. Year 2000.....................................................86
SECTION 3.17. Security Interests............................................87
SECTION 3.18. Absence of Non-Permitted Obligations..........................87
SECTION 3.19. FCC Compliance................................................88
ARTICLE IV
Conditions
SECTION 4.01. Effective Date................................................89
SECTION 4.02. First Credit Event for an RC Borrower
or an Equipment Borrower......................91
SECTION 4.03. Each Credit Event.............................................94
ARTICLE V
Affirmative Covenants
SECTION 5.01. Financial Statements and Other
Information...................................96
SECTION 5.02. Notices of Material Events....................................97
SECTION 5.03. Information Regarding Collateral..............................98
SECTION 5.04. Existence; Conduct of Business................................99
SECTION 5.05. Payment of Taxes..............................................99
SECTION 5.06. Maintenance of Properties.....................................99
SECTION 5.07. Insurance.....................................................99
SECTION 5.08. Casualty and Condemnation....................................100
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SECTION 5.09. Books and Records; Inspection and
Audit Rights.................................100
SECTION 5.10. Compliance with Laws.........................................100
SECTION 5.11. Use of Proceeds and Letters of Credit........................100
SECTION 5.12. Additional Subsidiaries......................................101
SECTION 5.13. Further Assurances...........................................101
SECTION 5.14. Interest Rate Protection.....................................102
SECTION 5.15. Support of Equipment Borrowers...............................103
ARTICLE VI
Negative Covenants
SECTION 6.01. Indebtedness; Certain Equity Securities......................103
SECTION 6.02. Liens........................................................106
SECTION 6.03. Fundamental Changes..........................................108
SECTION 6.04. Sale and Lease-Back Transactions.............................109
SECTION 6.05. Investments, Loans, Advances
Guarantees and Acquisitions..................109
SECTION 6.06. Asset Sales..................................................112
SECTION 6.07. Hedging Agreements...........................................112
SECTION 6.08. Restricted Payments; Certain Payments
of Indebtedness..............................113
SECTION 6.09. Transactions with Affiliates.................................114
SECTION 6.10. Restrictive Agreements.......................................115
SECTION 6.11. Amendment of Material Documents..............................116
SECTION 6.12. Liabilities of Equipment Borrowers;
Business and Liabilities of Interim
Borrower.....................................116
SECTION 6.13. Designation of Unrestricted
Subsidiaries.................................117
SECTION 6.14. Financial Covenants..........................................119
ARTICLE VII
Events of Default
ARTICLE VIII
The Agent
ARTICLE IX
Miscellaneous
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SECTION 9.01. Notices......................................................128
SECTION 9.02. Waivers; Amendments..........................................127
SECTION 9.03. Expenses; Indemnity; Damage Waiver...........................131
SECTION 9.04. Successors and Assigns.......................................133
SECTION 9.05. Survival.....................................................137
SECTION 9.06. Counterparts; Integration;
Effectiveness....................................137
SECTION 9.07. Severability.................................................138
SECTION 9.08. Right of Setoff..............................................138
SECTION 9.09. Governing Law; Jurisdiction; Consent to
Service of Process.................................................138
SECTION 9.10. WAIVER OF JURY TRIAL.........................................139
SECTION 9.11. Headings.....................................................139
SECTION 9.12. Confidentiality..............................................139
SECTION 9.13. Interest Rate Limitation.....................................140
SECTION 9.14. Liability of Borrowers.......................................141
SECTION 9.15. Release of Subsidiaries and Borrowers........................141
SECTION 9.16 Special Funding Option....................................142
SCHEDULES:
Schedule 2.01 -- Commitments
Schedule 3.03 -- LLC Approvals
Schedule 3.06 -- Disclosed Matters
Schedule 3.17 -- Mortgages
Schedule 4.02 -- Immaterial Subsidiaries
Schedule 6.01 -- Existing Indebtedness
Schedule 6.02 -- Existing Liens
Schedule 6.05 -- Existing Investments
Schedule 6.10 -- Existing Restrictions
Schedule 6.13 -- Existing Unrestricted Subsidiaries
EXHIBITS:
Exhibit A -- Form of Assignment and Acceptance
Exhibit B -- Form of Perfection Certificate
Exhibit C-1 -- Form of Effective Date Opinion of Xxxxxxx
Xxxx & Xxxxxxxxx
Exhibit C-2 -- Form of Effective Date Opinion of
Regulatory Counsel
Exhibit C-3 -- Form of Full Effective Date Opinion of
Xxxxxxx Xxxx & Xxxxxxxxx
Exhibit C-4 -- Form of Full Effective Date Opinion of
Level 3's and Borrowers' Counsel
Exhibit C-5 -- Form of Opinion of Regulatory Counsel
Exhibit C-6 -- Form of Opinion of Local Counsel
Exhibit D -- Form of RC Guarantee Agreement
Exhibit E -- Form of Term Loan Guarantee Agreement
Exhibit F -- Form of Shared Collateral Pledge Agreement
Exhibit G -- Form of Shared Collateral Security
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Agreement
Exhibit H -- Form of Term Loan Security Agreement
Exhibit I -- Form of RC Indemnity, Subrogation and
Contribution Agreement
Exhibit J -- Form of Term Loan Indemnity,
Subrogation and Contribution Agreement
Exhibit K -- Form of Mortgage
Exhibit L -- Form of Revolving Note
Exhibit M -- Form of Term Note
Exhibit N -- Form of Loan Allocation Agreement
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CREDIT AGREEMENT dated as of September 30,
1999 among XXXXX 0 XXXXXXXXXXXXXX, XXX., XXXXX 0
COMMUNICATIONS, LLC, XXXXX 0 XXXXXXXXXXXXX XXXXXXXX,
XXX., XXXXX 0 INTERNATIONAL, INC., BTE EQUIPMENT,
LLC, ELDORADO FUNDING, LLC, the LENDERS party hereto,
and THE CHASE MANHATTAN BANK, as Administrative Agent
and Collateral Agent.
The parties hereto agree as follows:
ARTICLE I
Definitions
SECTION 1.01. Defined Terms. As used in this
Agreement, the following terms have the meanings specified
below:
"ABR", when used in reference to any Loan or Borrowing, refers
to whether such Loan, or the Loans comprising such Borrowing, are bearing
interest at a rate determined by reference to the Alternate Base Rate.
"Additional Lender" shall have the meaning
assigned thereto in Section 2.21(a).
"Administrative Agent" means The Chase Manhattan Bank, in its
capacity as administrative agent for the Lenders hereunder.
"Administrative Questionnaire" means an
Administrative Questionnaire in a form supplied by the
Administrative Agent.
"Affiliate" means, with respect to a specified Person, another
Person that directly, or indirectly through one or more intermediaries, Controls
or is Controlled by or is under common Control with the Person specified.
"Agent" means The Chase Manhattan Bank, in its
capacities as Administrative Agent and Collateral Agent.
"Alternate Base Rate" means, for any day, a rate per annum
equal to the greater of (a) the Prime Rate in effect on such day and (b) the
Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in
the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective from and
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including the effective date of such change in the Prime Rate or the Federal
Funds Effective Rate, respectively.
"Applicable Commitment Fee Rate" means, with respect to the
commitment fee payable pursuant to Section 2.13.(a), a rate per annum equal to
(x) 1.00% for each day on which Usage is less than 33%, (y) 0.75% for each day
on which Usage is equal to or greater than 33% but less than or equal to 66% and
(z) 0.50% for each day on which Usage is greater than 66%. For purposes of the
foregoing, "Usage" means, on any date, the percentage obtained by dividing (i)
the sum of the aggregate outstanding Tranche A Term Loans and the aggregate
Revolving Exposure on such date by (ii) the sum of the aggregate outstanding
Tranche A Term Loans, unutilized Tranche A Commitments and Revolving Commitments
on such date.
"Applicable Percentage" means, with respect to any Revolving
Lender, the percentage of the total Revolving Commitments represented by such
Lender's Revolving Commitment. If the Revolving Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the Revolving
Commitments most recently in effect, giving effect to any assignments.
"Applicable Rate" means, for any day (a) with respect to any
Tranche B Term Loan, (i) 2.50% per annum, in the case of an ABR Loan and (ii)
3.50% per annum, in the case of a Eurodollar Loan, and (b) with respect to any
ABR Loan or Eurodollar Loan that is a Revolving Loan or a Tranche A Term Loan,
as the case may be, the applicable rate per annum set forth below under the
caption "ABR Spread" or "Eurodollar Spread", as the case may be, based upon the
ratings established by Xxxxx'x and S&P for the Index Debt; provided that until
the date that is one year from the Effective Date the "Applicable Rate" for
purposes of clause (b) shall be the applicable rate per annum set forth below in
Level I:
Eurodollar
Level Ratings ABR Spread Spread
IV >=BBB-/Baa3 0.50% 1.50%
III BB+/Ba1 1.00% 2.00%
II BB/Ba2 1.25% 2.25%
I
