EXHIBIT 99.2
364-DAY CREDIT AGREEMENT
dated as of
September 28, 2004
among
PIONEER NATURAL RESOURCES COMPANY,
as the Borrower
JPMORGAN CHASE BANK,
as Administrative Agent
and
The Lenders Party Hereto
----------------------------
BANK OF AMERICA, N.A., BARCLAYS BANK PLC, XXXXX FARGO BANK,
NATIONAL ASSOCIATION, and WACHOVIA BANK, NATIONAL ASSOCIATION,
Co-Documentation Agent
----------------------------
X.X. XXXXXX SECURITIES INC.,
as Lead Arranger and Sole Bookrunner
TABLE OF CONTENTS
Page:
----
ARTICLE I Definitions......................................................1
Section 1.01 Defined Terms...................................1
Section 1.02 Classification of Loans and Borrowings.........15
Section 1.03 Terms Generally................................15
Section 1.04 Accounting Terms; GAAP.........................15
ARTICLE II The Credits....................................................16
Section 2.01 Commitments....................................16
Section 2.02 Conversion to Term Loans.......................16
Section 2.03 Revolving Loans and Borrowings.................16
Section 2.04 Requests for Revolving Borrowings..............17
Section 2.05 Intentionally Omitted..........................17
Section 2.06 Intentionally Omitted..........................17
Section 2.07 Funding of Borrowings..........................18
Section 2.08 Interest Elections.............................18
Section 2.09 Termination and Reduction of Commitments.......19
Section 2.10 Repayment of Loans; Evidence of Debt...........20
Section 2.11 Prepayment of Loans............................21
Section 2.12 Fees...........................................21
Section 2.13 Interest.......................................22
Section 2.14 Alternate Rate of Interest.....................22
Section 2.15 Increased Costs................................23
Section 2.16 Break Funding Payments.........................24
Section 2.17 Taxes..........................................24
Section 2.18 Payments Generally; Pro Rata Treatment;
Sharing of Set-offs............................26
Section 2.19 Mitigation Obligations; Replacement
of Lenders.....................................27
ARTICLE III Representations and Warranties................................28
Section 3.01 Organization; Powers...........................28
Section 3.02 Authorization; Enforceability..................28
Section 3.03 Governmental Approvals; No Conflicts...........28
Section 3.04 Financial Condition; No Material
Adverse Change.................................28
Section 3.05 Properties.....................................29
Section 3.06 Litigation and Environmental Matters...........29
Section 3.07 Compliance with Laws...........................29
Section 3.08 Investment and Holding Company Status..........29
Section 3.09 Taxes..........................................29
Section 3.10 ERISA..........................................30
Section 3.11 Disclosure.....................................30
Section 3.12 Subsidiary Guarantees..........................30
ARTICLE IV Conditions.....................................................30
Section 4.01 Effective Date.................................30
Section 4.02 Each Credit Event..............................31
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364-DAY CREDIT AGREEMENT
ARTICLE V Affirmative Covenants...........................................31
Section 5.01 Financial Statements and Other Information.....31
Section 5.02 Notices of Material Events.....................33
Section 5.03 Existence; Conduct of Business.................33
Section 5.04 Payment of Obligations.........................33
Section 5.05 Maintenance of Properties; Insurance...........33
Section 5.06 Books and Records; Inspection Rights...........34
Section 5.07 Compliance with Laws...........................34
Section 5.08 Use of Proceeds................................34
Section 5.09 Operations.....................................34
ARTICLE VI Negative Covenants.............................................34
Section 6.01 Indebtedness...................................34
Section 6.02 Liens..........................................35
Section 6.03 Fundamental Changes............................36
Section 6.04 Financial Covenants............................36
Section 6.05 Investments, Loans, Advances, Guarantees
and Acquisitions...............................36
Section 6.06 Swap Agreements................................37
Section 6.07 Transactions with Affiliates...................37
Section 6.08 Restrictive Agreements.........................37
ARTICLE VII Events of Default.............................................37
ARTICLE VIII The Administrative Agent.....................................40
Section 8.01 Administrative Agent...........................40
Section 8.02 The Lead Arranger, Sole Bookrunner, and
Co-Documentation Agents........................42
ARTICLE IX Miscellaneous..................................................42
Section 9.01 Notices........................................42
Section 9.02 Waivers; Amendments............................43
Section 9.03 Expenses; Indemnity; Damage Waiver.............43
Section 9.04 Successors and Assigns.........................44
Section 9.05 Survival.......................................47
Section 9.06 Counterparts; Integration; Effectiveness.......48
Section 9.07 Severability...................................48
Section 9.08 Governing Law; Jurisdiction; Consent to
Service of Process.............................48
SECTION 9.09 WAIVER OF JURY TRIAL...........................49
Section 9.10 Headings.......................................49
Section 9.11 Confidentiality................................49
Section 9.12 Interest Rate Limitation.......................50
Section 9.13 USA Patriot Act Notice.........................51
Schedules:
---------
Schedule 2.01 Commitments
Schedule 3.06 Disclosed Matters
Schedule 6.02 Liens
Schedule 6.08 Existing Restrictive Agreements
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364-DAY CREDIT AGREEMENT
Exhibits:
--------
Exhibit A Form of Assignment and Assumption
Exhibit B Form of Opinion of Borrower's Counsel
Exhibit C Form of Subsidiary Guaranty
Exhibit D Form of Promissory Note
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364-DAY CREDIT AGREEMENT
364-DAY CREDIT AGREEMENT dated as of September 28, 2004, among PIONEER
NATURAL RESOURCES COMPANY, a Delaware corporation, as the Borrower, JPMORGAN
CHASE BANK, as Administrative Agent, the LENDERS party hereto, BANK OF AMERICA,
N.A., BARCLAYS BANK PLC, XXXXX FARGO BANK, NATIONAL ASSOCIATION, AND WACHOVIA
BANK, NATIONAL ASSOCIATION, as Lender and Co-Documentation Agents, and X.X.
XXXXXX SECURITIES INC., as Lead Arranger and Sole Bookrunner.
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.
"Adjusted LIBO Rate" means, with respect to any Eurodollar Borrowing for
any Interest Period, an interest rate per annum (rounded upwards, if necessary,
to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period
multiplied by (b) the Statutory Reserve Rate.
"Administrative Agent" means JPMorgan Chase 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.
"Agreement" means this 364-Day Credit Agreement, as the same may be
amended, modified, restated, or replaced from time to time.
"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 including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.
"Applicable Percentage" means, with respect to any Lender, the percentage
of the Commitments represented by such Lender's Commitment. If the Commitments
have terminated or expired, the Applicable Percentages shall be determined based
upon the Commitments most recently in effect, giving effect to any assignments.
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364-DAY CREDIT AGREEMENT
"Applicable Margin" means, for any day, with respect to any Eurodollar
Loan, or with respect to the commitment fees payable hereunder, as the case may
be, the Applicable Margin per annum set forth below under the caption
"Eurodollar Spread" or "Commitment Fee Rate", as the case may be, based upon the
ratings by Xxxxx'x and S&P, respectively, applicable on such date to the Index
Debt:
==================== ===================== ===================
Index Debt Ratings Commitment Fee Rate Eurodollar Spread
-------------------- --------------------- -------------------
Category 1 0.25 % 0.75 %
>=Baa3/BBB-
-------------------- --------------------- -------------------
Category 2 0.30 % 1.00 %
