EXHIBIT 10.130
CREDIT AGREEMENT
among
FIRST HEALTH GROUP CORP.
as Borrower,
AND
CERTAIN SUBSIDIARIES OF THE BORROWER
as Guarantors,
AND
THE LENDERS IDENTIFIED HEREIN,
AND
BANK OF AMERICA, N.A.,
as Administrative Agent
BANK ONE, NA
SUNTRUST BANK
LASALLE BANK NATIONAL ASSOCIATION,
and
BNP PARIBAS,
as Co-Syndication Agents
DATED AS OF APRIL 23, 0000
XXXX XX XXXXXXX SECURITIES LLC,
as Sole Book Manager and Co-Joint Lead Arranger
BANC ONE CAPITAL MARKETS, INC.,
as Co-Joint Lead Arranger
TABLE OF CONTENTS
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS.....................1
1.1 Definitions...........................................1
1.2 Computation of Time Periods and Other Definitional
Provisions..........................................16
1.3 Accounting Terms/Calculation of Financial Covenants..16
1.4 Time.................................................17
SECTION 2 CREDIT FACILITIES...................................17
2.1 Revolving Loans......................................17
2.2 Letter of Credit Subfacility.........................19
2.3 Swing Line Loans Subfacility.........................23
2.4 Continuations and Conversions........................24
2.5 Minimum Amounts......................................25
SECTION 3 GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS
OF CREDIT...........................................25
3.1 Interest.............................................25
3.2 Place and Manner of Payments.........................25
3.3 Prepayments..........................................26
3.4 Fees.................................................26
3.5 Payment in Full at Maturity..........................27
3.6 Computations of Interest and Fees....................27
3.7 Pro Rata Treatment...................................28
3.8 Sharing of Payments..................................28
3.9 Capital Adequacy.....................................29
3.10 Inability To Determine Interest Rate.................29
3.11 Illegality...........................................29
3.12 Requirements of Law..................................30
3.13 Taxes................................................30
3.14 Compensation.........................................31
3.15 Determination and Survival of Provisions.............32
SECTION 4 GUARANTY............................................32
4.1 Guaranty of Payment..................................32
4.2 Obligations Unconditional............................32
4.3 Modifications........................................33
4.4 Waiver of Rights.....................................33
4.5 Reinstatement........................................33
4.6 Remedies.............................................34
4.7 Limitation of Guaranty...............................34
4.8 Rights of Contribution...............................34
SECTION 5 CONDITIONS PRECEDENT................................34
5.1 Closing Conditions...................................34
5.2 Conditions to All Extensions of Credit...............36
SECTION 6 REPRESENTATIONS AND WARRANTIES......................37
6.1 Organization and Good Standing.......................37
6.2 Due Authorization....................................37
6.3 Enforceable Obligations..............................37
6.4 No Conflicts.........................................37
6.5 Consents.............................................37
6.6 Financial Condition..................................38
6.7 No Material Change...................................38
6.8 Disclosure...........................................38
6.9 No Default...........................................38
6.10 Litigation...........................................38
6.11 Taxes................................................38
6.12 Compliance with Law..................................39
6.13 Licensing and Accreditation..........................39
6.14 Title to Properties..................................39
6.15 Insurance............................................39
6.16 Use of Proceeds......................................39
6.17 Government Regulation................................40
6.18 No Burdensome Restrictions...........................40
6.19 ERISA................................................40
6.20 Environmental Matters................................41
6.21 Intellectual Property................................42
6.22 Subsidiaries.........................................42
6.23 Solvency.............................................42
6.24 Indebtedness.........................................42
SECTION 7 AFFIRMATIVE COVENANTS...............................43
7.1 Information Covenants................................43
7.2 Financial Covenants..................................45
7.3 Preservation of Existence and Franchises.............46
7.4 Books and Records....................................46
7.5 Compliance with Law..................................46
7.6 Payment of Taxes and Other Claims....................46
7.7 Insurance............................................46
7.8 Maintenance of Property..............................46
7.9 Use of Proceeds......................................47
7.10 Audits/Inspections...................................47
7.11 Additional Guarantors................................47
7.12 PPO Business.........................................47
7.13 Claims Administration Business.......................47
SECTION 8 NEGATIVE COVENANTS..................................47
8.1 Indebtedness.........................................47
8.2 Liens................................................48
8.3 Nature of Business...................................48
8.4 Consolidation and Merger.............................48
8.5 Sale or Lease of Assets..............................49
8.6 Investments..........................................49
8.7 Transactions with Affiliates.........................49
8.8 Fiscal Year; Accounting; Organizational Documents....49
8.9 No Limitations.......................................49
8.10 No Other Negative Pledges............................50
8.11 Restricted Payments..................................50
SECTION 9 EVENTS OF DEFAULT...................................50
9.1 Events of Default....................................50
9.2 Acceleration; Remedies...............................52
9.3 Allocation of Payments After Acceleration............53
SECTION 10 AGENCY PROVISIONS..................................54
10.1 Appointment..........................................54
10.2 Delegation of Duties.................................54
10.3 Exculpatory Provisions...............................54
10.4 Reliance on Communications...........................55
10.5 Notice of Default....................................55
10.6 Non-Reliance on Administrative Agent and Other
Lenders..............................................56
10.7 Indemnification......................................56
10.8 Administrative Agent in Its Individual Capacity......56
10.9 Successor Agent......................................57
10.10 Other Agents; Lead Managers.........................57
SECTION 11 MISCELLANEOUS......................................57
11.1 Notices..............................................57
11.2 Right of Set-Off; Automatic Debits...................57
11.3 Benefit of Agreement.................................58
11.4 No Waiver; Remedies Cumulative.......................61
11.5 Payment of Expenses; Indemnification.................61
11.6 Amendments, Waivers and Consents.....................61
11.7 Counterparts/Telecopy................................62
11.8 Headings.............................................62
11.9 Survival of Indemnification and Representations and
Warranties...........................................62
11.10 Governing Law; Venue; Jurisdiction..................62
11.11 Waiver of Jury Trial; Waiver of Consequential
Damages.............................................63
11.12 Severability........................................63
11.13 Further Assurances..................................63
11.14 Confidentiality.....................................63
11.15 Entirety............................................63
11.16 Binding Effect; Continuing Agreement................64
SCHEDULES
---------
Schedule 1.1(a) Commitment Percentages/Lending Offices
Schedule 2.2(c) Existing Letters of Credit
Schedule 6.22 Subsidiaries
Schedule 6.24 Indebtedness
Schedule 8.2 Liens
Schedule 8.6 Investments
Schedule 11.1 Notices
EXHIBITS
--------
Exhibit 2.1(b) Form of Notice of Borrowing
Exhibit 2.1(e) Form of New Commitment Agreement
Exhibit 2.1(f) Form of Revolving Note
Exhibit 2.3(b) Form of Swing Line Loan Request
Exhibit 2.3(d) Form of Swing Line Note
Exhibit 2.4 Form of Notice of Continuation/Conversion
Exhibit 7.1(c) Form of Officer's Certificate
Exhibit 7.12 Form of Joinder Agreement
Exhibit 11.3(b) Form of Assignment and Assumption
CREDIT AGREEMENT
THIS CREDIT AGREEMENT (this "Credit Agreement"), is entered into as of
April 23, 2002 among FIRST HEALTH GROUP CORP., a Delaware corporation (the
"Borrower"), the Guarantors (as defined herein), the Lenders (as defined
herein), and BANK OF AMERICA, N.A., as Administrative Agent for the Lenders
and as Issuing Lender.
RECITALS
WHEREAS, the Borrower has requested the Lenders to provide a senior
credit facility to the Borrower in an aggregate principal amount of up to
$400,000,000; and
WHEREAS, the Lenders party hereto have agreed to make the requested
senior credit facility available to the Borrower on the terms and conditions
hereinafter set forth.
NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
SECTION 1
DEFINITIONS AND ACCOUNTING TERMS
--------------------------------
1.1 Definitions.
As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
include in the singular number the plural and in the plural the singular:
"Acquisition" means the acquisition by any Person of (a) all or
substantially all of the Capital Stock of another Person, (b) all or
substantially all of the assets of another Person or (c) all or
substantially all of a line of business of another Person, in each
case whether or not involving a merger or consolidation with such
other Person.
"Additional Commitment" means, with respect to any Lender which
executes a New Commitment Agreement in accordance with Section 2.1(e),
the commitment of such Lender in an aggregate principal amount up to
the amount specified in such New Commitment Agreement to (i) make
Revolving Loans in accordance with the provisions of Section 2.1, (ii)
purchase participation interests in Letters of Credit in accordance
with the provisions of Section 2.2 and (iii) purchase participation
interests in the Swing Line Loans in accordance with the provisions
of Section 2.3.
"Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
Applicable Percentage.
"Administrative Agent" means Bank of America, N.A. (or any
successor thereto) or any successor administrative agent appointed
pursuant to Section 10.9.
"Administrative 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 (including but not limited to all directors and officers of
such Person) or is Controlled by or is under direct or indirect common
Control with the Person specified. "Control" means the possession,
directly or indirectly, of the power (a) to vote 5% or more of the
securities having ordinary voting power for the election of directors
of a Person or (b) to direct or cause the direction of the management
or policies of a Person, whether through the ability to exercise voting
power, by contract or otherwise. "Controlled" has the meaning
correlative thereto.
"Agency Services Address" means Bank of America, N.A., NC1-001-15-
04, 000 Xxxxx Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attn:
Agency Services, or such other address as may be identified by written
notice from the Administrative Agent to the Borrower.
"Agent-Related Person" means the Administrative Agent (including
any successor administrative agent), together with its Affiliates
(including, in the case of Bank of America in its capacity as the
Administrative Agent, BAS), and their respective officers, directors,
employees, agents, counsel and attorneys-in-fact.
"Applicable Percentage" means the appropriate applicable
percentages corresponding to the Debt Rating of the Borrower in effect
from time to time as described below:
================================================================================
Pricing Debt Rating Applicable Applicable Applicable All-in
Level Percentage Percentage Percentage Drawn
for for Letter for
Eurodollar of Credit Facility
Loans Fees Fee
--------------------------------------------------------------------------------
I >= BBB+ from S&P/ .60% .60% .15% .75%
>= Baa1 from Xxxxx'x
--------------------------------------------------------------------------------
II >=BBB but < BBB+ from S&P/ .70% .70% .175% .875%
>=Baa2 but =BBB- but =Baa3 but =BB+ but < BBB- from S&P/ 1.075% 1.075% .350% 1.425%
>=Ba1 but
