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Credit Agreement

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Title:

Credit Agreement

Entities:

Deutsche Bank Securities Inc.; Deutsche Bank Trust Company Americas; JPMorgan Chase Bank; Quality Distribution, Inc.; Royal Bank of Canada; Bank of New York

Date:

2004

Size:

Preview shows 106KB of 630KB total

Price:

$89

ID:

#1052837

► Loans ► Credit Agreements
► Financial
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Start of Preview

CREDIT AGREEMENT

among

QUALITY DISTRIBUTION, INC.,

QUALITY DISTRIBUTION, LLC,

VARIOUS LENDING INSTITUTIONS,

JPMORGAN CHASE BANK,

AS DOCUMENTATION AGENT,

DEUTSCHE BANK SECURITIES INC.

AND

BEAR STEARNS CORPORATE LENDING INC.,

AS CO-SYNDICATION AGENTS,

and

CREDIT SUISSE FIRST BOSTON,

ACTING THROUGH ITS CAYMAN ISLANDS BRANCH

AS ADMINISTRATIVE AGENT

Dated as of November 13, 2003

CREDIT SUISSE FIRST BOSTON

AND

DEUTSCHE BANK SECURITIES INC.,

AS JOINT LEAD ARRANGERS AND BOOK RUNNING MANAGERS

TABLE OF CONTENTS


		Page
SECTION 1. Amount and Terms of Credit		1
1.01	Commitments	1
1.02	Minimum Borrowing Amounts, etc.	4
1.03	Notice of Borrowing	4
1.04	Disbursement of Funds	5
1.05	Notes	6
1.06	Conversions	7
1.07	Pro Rata Borrowings	8
1.08	Interest	8
1.09	Interest Periods for Eurodollar Loans	9
1.10	Increased Costs; Illegality; etc.	10
1.11	Compensation	12
1.12	Change of Lending Office	13
1.13	Replacement of Lenders	14

SECTION 2. Letters of Credit.		15
2.01	Letters of Credit	15
2.02	Letter of Credit Requests	18
2.03	Letter of Credit Participations	18
2.04	Agreement to Repay Letter of Credit Drawings	21
2.05	Increased Costs	23
2.06	Credit-Linked Deposit Account	24

SECTION 3. Fees; Commitments.		25
3.01	Fees	25
3.02	Voluntary Termination or Reduction of Total Unutilized Revolving Loan Commitment and Total Unutilized PF Letter of Credit Commitment	27
3.03	Mandatory Reduction of Commitments	28

SECTION 4. Payments.		29
4.01	Voluntary Prepayments	29
4.02	Mandatory Repayments and Commitment Reductions	30
4.03	Method and Place of Payment	38
4.04	Net Payments	38

SECTION 5. Conditions Precedent to Initial Credit Events		41
5.01	Execution of Agreement; Notes	41
5.02	Officers Certificate	41
5.03	Opinions of Counsel	41
5.04	Company Documents; Proceedings	42
5.05	Adverse Change, etc.	42
5.06	Litigation	42

(i)

Table of Contents

(continued)


		Page
5.07	Approvals	42
5.08	Financing Transactions etc.	43
5.09	Refinancing	43
5.10	Security Documents; etc.	45
5.11	Subsidiaries Guaranty; Intercompany Subordination Agreement	47
5.12	Employee Benefit Plans; Shareholders Agreements; Management Agreements; Employment Agreements; Collective Bargaining Agreements; Existing Indebtedness Agreements; Material Contracts; Tax Allocation Agreements	48
5.13	Solvency Certificate; Insurance Certificates	49
5.14	Financial Statements; Pro Forma Balance Sheet; Projections	49
5.15	Payment of Fees	50
5.16	Compliance With Existing Senior Subordinated Secured Notes Indenture	50

SECTION 6A. Conditions Precedent to All Credit Events (other than Loans Made on the Redemption Date to Finance the Existing Senior Notes Refinancing)		50
6A.01	No Default; Representations and Warranties	50
6A.02	Notice of Borrowing; Letter of Credit Request	50
6A.03	Regulation U	51

SECTION 6B. Special Condition Precedent to Incurrence of Revolving Loans and Swingline Loans		51
6B.01	Limitation on Cash on Hand	51

SECTION 6C. Special Condition Precedent to Incurrence of Loans on the Redemption Date		51
6C.01	No Payment or Bankruptcy Default or Event of Default	51

SECTION 7. Representations and Warranties		52
7.01	Company Status	52
7.02	Company Power and Authority	52
7.03	No Violation	52
7.04	Litigation	53
7.05	Use of Proceeds; Margin Regulations	53
7.06	Governmental Approvals	54
7.07	Investment Company Act	54
7.08	Public Utility Holding Company Act	54
7.09	True and Complete Disclosure	54
7.10	Financial Condition; Financial Statements	54
7.11	Security Interests	56
7.12	Compliance with ERISA	56
7.13	Capitalization	58
7.14	Subsidiaries	59
7.15	Intellectual Property, etc.	59
7.16	Compliance with Statutes, etc.	59
7.17	Environmental Matters	59

(ii)

Table of Contents

(continued)


		Page
7.18	Properties	60
7.19	Labor Relations	60
7.20	Tax Returns and Payments	61
7.21	Scheduled Existing Indebtedness	61
7.22	Insurance	61
7.23	Representations and Warranties in Other Documents	61
7.24	Special Purpose Corporation	62
7.25	Subordination	62

SECTION 8. Affirmative Covenants		62
8.01	Information Covenants	62
8.02	Books, Records and Inspections	66
8.03	Insurance	66
8.04	Payment of Taxes	67
8.05	Existence; Franchises	67
8.06	Compliance with Statutes; etc.	67
8.07	Compliance with Environmental Laws	67
8.08	ERISA	69
8.09	Good Repair	71
8.10	End of Fiscal Years; Fiscal Quarters	71
8.11	Additional Security; Further Assurances	71
8.12	Foreign Subsidiaries Security	72
8.13	Performance of Obligations	73
8.14	Use of Proceeds	73
8.15	Permitted Acquisitions	73
8.16	Maintenance of Company Separateness	75
8.17	Existing Senior Notes Refinancing	76
8.18	Margin Regulations	76

SECTION 9. Negative Covenants		77
9.01	Changes in Business	77
9.02	Consolidation; Merger; Sale or Purchase of Assets; etc.	78
9.03	Liens	82
9.04	Indebtedness	85
9.05	Advances; Investments; Loans	88
9.06	Dividends; etc.	91
9.07	Transactions with Affiliates and Unrestricted Subsidiaries	95
9.08	Designated Senior Debt	96
9.09	Consolidated Interest Coverage Ratio.	96
9.10	Adjusted Total Leverage Ratio	97
9.11	Capital Expenditures.	97
9.12	Limitation on Voluntary Payments and Modifications of Indebtedness; Modifications of Certificate of Incorporation, By-Laws and Certain Other Agreements; Issuances of Capital Stock; etc.	98
9.13	Limitation on Issuance of Equity Interests	101

(iii)

Table of Contents

(continued)


		Page
9.14	Limitation on Certain Restrictions on Subsidiaries	102
9.15	Limitation on the Creation of Subsidiaries, Joint Ventures and Unrestricted Subsidiaries	103

SECTION 10. Events of Default		104
10.01	Payments	104
10.02	Representations, etc.	104
10.03	Covenants	104
10.04	Default Under Other Agreements	105
10.05	Bankruptcy, etc.	105
10.06	ERISA	105
10.07	Security Documents	106
10.08	Guaranties	106
10.09	Judgments	106
10.10	Ownership	107

SECTION 11. Definitions		107

SECTION 12. The Agents.		150
12.01	Appointment	150
12.02	Delegation of Duties	151
12.03	Exculpatory Provisions	151
12.04	Reliance by Agents	151
12.05	Notice of Default	152
12.06	Nonreliance on Agents and Other Lenders	152
12.07	Indemnification	152
12.08	Agents in their Individual Capacities	153
12.09	Holders	153
12.10	Resignation of the Agents	153
12.11	Appointment of Collateral Agent as Administrator (Mexico)	154

SECTION 13. Miscellaneous.		155
13.01	Payment of Expenses, etc.	155
13.02	Right of Setoff	156
13.03	Notices	156
13.04	Benefit of Agreement	157
13.05	No Waiver; Remedies Cumulative	159
13.06	Payments Pro Rata	159
13.07	Calculations; Computations	160
13.08	Governing Law; Submission to Jurisdiction; Venue	160
13.09	Counterparts	161
13.10	Effectiveness	161
13.11	Headings Descriptive	161
13.12	Amendment or Waiver; etc.	161
13.13	Survival	164
13.14	Domicile of Loans and Commitments	164

(iv)

Table of Contents

(continued)


		Page
13.15	Confidentiality	164
13.16	Waiver of Jury Trial	165
13.17	Register	165
13.18	Limitation on Additional Amounts, etc.	166
13.19	Post-Closing Actions	166

SECTION 14. Holdings Guaranty		168
14.01	Holdings Guaranty	168
14.02	Bankruptcy	168
14.03	Nature of Liability	169
14.04	Independent Obligation	169
14.05	Authorization	169
14.06	Reliance	170
14.07	Subordination	170
14.08	Waiver	171
14.09	Payment	171

Schedules


SCHEDULE I	-	List of Lenders and Commitments
SCHEDULE II	-	Lender Addresses
SCHEDULE III	-	Real Properties
SCHEDULE IV	-	Scheduled Existing Indebtedness
SCHEDULE V	-	Plans
SCHEDULE VI	-	Existing Investments
SCHEDULE VII	-	Subsidiaries
SCHEDULE VIII	-	Insurance
SCHEDULE IX	-