1
Exhibit (10b)
EXECUTION COPY
===============================================================================
364-DAY CREDIT AGREEMENT
dated as of
June 30, 2000
among
USG CORPORATION
as Borrower
The Lenders Party Hereto
THE CHASE MANHATTAN BANK
as Administrative Agent
BANK ONE, NA and CITIBANK, N.A.
as Syndication Agents
and
BANK OF AMERICA, N.A.
as Documentation Agent
---------------------------
CHASE SECURITIES INC.
as Sole Lead Arranger and Sole Book Manager
===============================================================================
2
ARTICLE I Definitions.................................................1
SECTION 1.01. Defined Terms...............................................1
SECTION 1.02. Classification of Loans and Borrowings.....................17
SECTION 1.03. Terms Generally............................................17
SECTION 1.04. Accounting Terms; GAAP.....................................18
ARTICLE II The Credits................................................18
SECTION 2.01. Commitments................................................18
SECTION 2.02. Loans and Borrowings.......................................18
SECTION 2.03. Requests for Revolving Borrowings..........................19
SECTION 2.04. Competitive Bid Procedure..................................20
SECTION 2.05. Funding of Borrowings......................................22
SECTION 2.06. Repayment of Borrowings; Evidence of Debt..................23
SECTION 2.07. Interest Elections.........................................23
SECTION 2.08. Termination, Reduction and Extension of Commitments........24
SECTION 2.09. Increase in Commitments....................................26
SECTION 2.10. Prepayment of Loans........................................28
SECTION 2.11. Fees.......................................................28
SECTION 2.12. Interest...................................................29
SECTION 2.13. Alternate Rate of Interest.................................30
SECTION 2.14. Increased Costs............................................31
SECTION 2.15. Break Funding Payments.....................................32
SECTION 2.16. Taxes......................................................32
SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing
of Setoffs...............................................33
SECTION 2.18. Mitigation Obligations; Replacement of Lenders.............35
ARTICLE III Representations and Warranties.............................36
SECTION 3.01. Organization; Corporate Powers.............................36
SECTION 3.02. Authority..................................................36
SECTION 3.03. Subsidiaries; Ownership of Capital Stock...................36
SECTION 3.04. No Conflict................................................36
SECTION 3.05. Governmental Consents......................................37
SECTION 3.06. Governmental Regulation....................................37
SECTION 3.07. Labor Matters..............................................37
SECTION 3.08. Litigation; Material Adverse Effects.......................37
SECTION 3.09. Payment of Taxes...........................................37
SECTION 3.10. Margin Stock...............................................38
SECTION 3.11. No Material Misstatements..................................38
SECTION 3.12. Requirements of Law........................................38
SECTION 3.13. Environmental Matters......................................38
SECTION 3.14. ERISA......................................................39
SECTION 3.15. Assets and Properties......................................40
SECTION 3.16. Agreements.................................................40
3
SECTION 3.17. Financial Statements.......................................40
ARTICLE IV Conditions.................................................40
SECTION 4.01. Effective Date.............................................40
SECTION 4.02. Each Credit Event..........................................41
ARTICLE V Affirmative Covenants......................................42
SECTION 5.01. Corporate Existence; Corporate Powers; Etc.................42
SECTION 5.02. Compliance with Laws, Etc..................................42
SECTION 5.03. Maintenance of Properties; Insurance.......................42
SECTION 5.04. Payment of Taxes and Claims................................43
SECTION 5.05. Inspection of Property; Books and Records..................43
SECTION 5.06. ERISA......................................................43
SECTION 5.07. Financial Statements.......................................44
SECTION 5.08. Notices of Material Events.................................45
ARTICLE VI Negative Covenants.........................................45
SECTION 6.01. Debt.......................................................46
SECTION 6.02. Sales of Assets............................................46
SECTION 6.03. Liens......................................................47
SECTION 6.04. Transactions with Affiliates...............................48
SECTION 6.05. Fundamental Changes........................................48
SECTION 6.06. Sales and Lease-Back.......................................49
SECTION 6.07. Restrictive Agreements.....................................49
SECTION 6.08. No More Restrictive Covenants..............................49
SECTION 6.09. Financial Covenants........................................50
ARTICLE VII Events of Default..........................................50
SECTION 7.01. Events of Default..........................................50
SECTION 7.02. Rights and Remedies........................................53
ARTICLE VIII The Administrative Agent...................................53
ARTICLE IX Miscellaneous..............................................56
SECTION 9.01. Notices....................................................56
SECTION 9.02. Waivers; Amendments........................................56
SECTION 9.03. Expenses; Indemnity; Damage Waiver.........................58
SECTION 9.04. Successors and Assigns.....................................59
SECTION 9.05. Survival...................................................61
SECTION 9.06. Counterparts; Integration; Effectiveness...................62
SECTION 9.07. Severability...............................................62
SECTION 9.08. Right of Setoff............................................62
SECTION 9.09. Governing Law; Jurisdiction; Consent to
Service of Process.......................................62
SECTION 9.10. WAIVER OF JURY TRIAL.......................................63
SECTION 9.11. Headings...................................................63
SECTION 9.12. Confidentiality............................................63
SECTION 9.13. Non-Reliance by the Lenders................................64
ii
4
SCHEDULES:
Schedule 2.01 -- Lenders and Commitments
Schedule 2.17 -- Payment Instructions
Schedule 3.03 -- Subsidiaries
Schedule 3.08 -- Litigation; Material Adverse Effects
Schedule 3.13 -- Environmental Matters
Schedule 3.14 -- ERISA
Schedule 6.01 -- Existing Debt
Schedule 6.03 -- Existing Liens
Schedule 6.07 -- Existing Restrictive Agreements
EXHIBITS:
Exhibit A -- Form of Assignment and Acceptance
Exhibit B-1 -- Form of Opinion of Special Counsel for the Administrative
Agent
Exhibit B-2 -- Form of Opinion of Assistant General Counsel of the Company
iii
5
364-DAY CREDIT AGREEMENT dated as of June 30, 2000, among USG
CORPORATION, a Delaware corporation (the "Company"); the LENDERS from time to
time party hereto; THE CHASE MANHATTAN BANK, as Administrative Agent; BANK ONE,
NA and CITIBANK, N.A., as Syndication Agents; and BANK OF AMERICA, N.A., as
Documentation Agent.
The Company has requested the Lenders (such term and each
other capitalized term used and not otherwise defined herein having the meaning
assigned to it in Article I) to extend credit in the form of Commitments under
which the Company may obtain Loans in US Dollars in an aggregate principal
amount at any time outstanding that will not result in the sum of the Revolving
Exposures and the Competitive Loan Exposures exceeding $200,000,000. The Company
has also requested the Lenders to provide a procedure pursuant to which the
Company may invite the Lenders to bid on an uncommitted basis on short-term
Loans to the Company.
The Lenders are willing to establish the credit facilities
referred to in the preceding paragraph upon the terms and subject to the
conditions set forth herein. Accordingly, 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 Eurocurrency
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 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.
"Alternate Base Rate" means, for any day, a rate per annum
equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Base
CD Rate in effect on such day plus 1% and (c) the Federal Funds Effective Rate
in effect on such day plus 1/2 of 1%. Any change in the
6
Alternate Base Rate due to a change in the Prime Rate, the Base CD Rate or the
Federal Funds Effective Rate shall be effective from and including the effective
date of such change in the Prime Rate, the Base CD Rate or the Federal Funds
Effective Rate, respectively.
"Applicable Rate" means, for any day, with respect to (i) any
Loan of any Type or (ii) the facility fees payable hereunder, as the case may
be, the applicable rate per annum set forth under the appropriate caption in the
table below, based upon the ratings by Xxxxx'x and S&P, respectively, applicable
on such date to the Index Debt:
================================================================
Eurocurrency Facility Fee
Index Debt Ratings: ABR Spread Spread Rate
----------------------------------------------------------------
Category 1 0% 0.24% 0.06%
----------
A2/A
----------------------------------------------------------------
Category 2 0% 0.295% 0.08%
----------
A3/A-
----------------------------------------------------------------
Category 3 0% 0.40% 0.10%
----------
Baa1/BBB+
----------------------------------------------------------------
Category 4 0% 0.50% 0.125%
----------
Baa2/BBB
----------------------------------------------------------------
Category 5 0% 0.60% 0.15%
----------
Baa3/BBB-
----------------------------------------------------------------
Category 6 0% 1.0625% 0.1875%
----------
