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Title: |
Credit Agreement |
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Entities: |
J.P. Morgan Securities Inc.; JPMorgan Chase Bank; Prudential Insurance Co. of America; Suntrust Capital Markets, Inc.; TBC Corp.; U.S. Bank, NA; Bank of New York; Thompson Hine; SunTrust Bank; TBC Corp. |
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Date: |
2003 |
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Size: |
Preview shows 23KB of 543KB total |
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Price: |
$99 |
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ID: |
#113089 |
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[JPMORGAN LOGO]
$208,500,000
CREDIT AGREEMENT
dated as of
March 31, 2003
among
TBC CORPORATION
The Lenders Party Hereto,
U.S. BANK NATIONAL ASSOCIATION
as Documentation Agent,
SUNTRUST BANK
as Syndication Agent,
FIRST TENNESSEE BANK NATIONAL ASSOCIATION
as Administrative Agent
and
JPMORGAN CHASE BANK
as Co-Administrative Agent
------------------------------
J.P. MORGAN SECURITIES INC.
as Sole Advisor, Lead Arranger and Bookrunner
================================================================================
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
PAGE
{S} {C}
ARTICLE I Definitions............................................................................................ 1
SECTION 1.01. Defined Terms........................................................................... 1
SECTION 1.02. Classification of Loans and Borrowings.................................................. 20
SECTION 1.03. Terms Generally......................................................................... 21
SECTION 1.04. Accounting Terms; GAAP.................................................................. 21
ARTICLE II The Credits........................................................................................... 21
SECTION 2.01. Revolving and Term Loan Commitments..................................................... 21
SECTION 2.02. Loans and Borrowings.................................................................... 22
SECTION 2.03. Requests for Borrowings................................................................. 23
SECTION 2.04. Swingline Loans......................................................................... 25
SECTION 2.05. Letters of Credit....................................................................... 26
SECTION 2.06. Funding of Borrowings................................................................... 30
SECTION 2.07. Interest Elections...................................................................... 31
SECTION 2.08. Termination and Reduction of Revolving Credit Commitments............................... 32
SECTION 2.09. Repayment of Loans; Evidence of Debt.................................................... 32
SECTION 2.10. Prepayment of Loans..................................................................... 35
SECTION 2.11. Fees.................................................................................... 36
SECTION 2.12. Interest................................................................................ 37
SECTION 2.13. Alternate Rate of Interest.............................................................. 38
SECTION 2.14. Increased Costs......................................................................... 39
SECTION 2.15. Break Funding Payments.................................................................. 40
SECTION 2.16. Taxes................................................................................... 40
SECTION 2.17. Payments Generally; Pro Rata Treatment; Sharing of Set-offs............................. 41
SECTION 2.18. Mitigation Obligations; Replacement of Lenders.......................................... 43
ARTICLE III Representations and Warranties....................................................................... 44
SECTION 3.01. Organization; Powers.................................................................... 44
SECTION 3.02. Authorization; Enforceability........................................................... 44
SECTION 3.03. Governmental Approvals; No Conflicts.................................................... 44
SECTION 3.04. Financial Condition; No Material Adverse Change......................................... 44
SECTION 3.05. Properties.............................................................................. 45
SECTION 3.06. Litigation and Environmental Matters.................................................... 45
{/TABLE}
i
{PAGE}
{TABLE}
{CAPTION}
PAGE
{S} {C}
SECTION 3.07. Compliance with Laws and Agreements..................................................... 46
SECTION 3.08. Investment and Holding Company Status................................................... 46
SECTION 3.09. Taxes................................................................................... 46
SECTION 3.10. ERISA................................................................................... 46
SECTION 3.11. Disclosure.............................................................................. 47
SECTION 3.12. Margin Stock............................................................................ 47
SECTION 3.13. Compliance with Conditions Precedent.................................................... 47
SECTION 3.14. Labor Matters........................................................................... 47
SECTION 3.15. Assets.................................................................................. 47
SECTION 3.16. Security Documents...................................................................... 47
SECTION 3.17. Solvency................................................................................ 48
SECTION 3.18. Certain Documents....................................................................... 48
SECTION 3.19. Regulation H............................................................................ 48
ARTICLE IV Conditions............................................................................................ 48
SECTION 4.01. Effective Date.......................................................................... 48
SECTION 4.02. Each Credit Event....................................................................... 50
ARTICLE V Affirmative Covenants.................................................................................. 51
SECTION 5.01. Punctual Payment........................................................................ 51
SECTION 5.02. Financial Statements and Other Information.............................................. 51
SECTION 5.03. Notices of Material Events.............................................................. 52
SECTION 5.04. Existence; Conduct of Business.......................................................... 52
SECTION 5.05. Payment of Obligations.................................................................. 53
SECTION 5.06. Maintenance of Properties; Insurance.................................................... 53
SECTION 5.07. Books and Records; Inspection Rights.................................................... 53
SECTION 5.08. Compliance with Laws.................................................................... 53
SECTION 5.09. Use of Proceeds......................................................................... 53
SECTION 5.10. Intercompany Loans/Payments............................................................. 53
SECTION 5.11. Subsidiary Guarantees and Collateral.................................................... 54
SECTION 5.12. Environmental Laws...................................................................... 54
SECTION 5.13. Additional Collateral, etc.............................................................. 55
SECTION 5.14. Title Insurance, etc.................................................................... 55
ARTICLE VI Negative Covenants.................................................................................... 57
SECTION 6.01. Indebtedness............................................................................ 57
SECTION 6.02. Liens................................................................................... 58
SECTION 6.03. Fundamental Changes..................................................................... 59
{/TABLE}
ii
{PAGE}
{TABLE}
{CAPTION}
PAGE
{S} {C}
SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions............................... 59
SECTION 6.05. Hedging Agreements...................................................................... 61
SECTION 6.06. Transactions with Affiliates............................................................ 61
SECTION 6.07. Restrictive Agreements.................................................................. 61
SECTION 6.08. Fixed Charge Coverage Ratio............................................................. 62
SECTION 6.09. Maximum Leverage Ratio.................................................................. 62
SECTION 6.10. Adjusted Debt to EBITDAR................................................................ 63
SECTION 6.11. Asset Test.............................................................................. 64
SECTION 6.12. Disclosure.............................................................................. 64
SECTION 6.13. Sale of Assets.......................................................................... 64
SECTION 6.14. Restricted Payments..................................................................... 64
ARTICLE VII Events of Default.................................................................................... 65
ARTICLE VIII The Administrative Agent and the Co-Administrative Agent............................................ 67
ARTICLE IX Miscellaneous......................................................................................... 70
SECTION 9.01. Notices................................................................................. 70
SECTION 9.02. Waivers; Amendments..................................................................... 70
SECTION 9.03. Expenses; Indemnity; Damage Waiver...................................................... 72
SECTION 9.04. Successors and Assigns; Participations and Assignments.................................. 73
SECTION 9.05. Survival................................................................................ 76
SECTION 9.06. Counterparts; Integration; Effectiveness................................................ 76
SECTION 9.07. Severability............................................................................ 77
SECTION 9.08. Right of Setoff......................................................................... 77
SECTION 9.09. Governing Law, Jurisdiction; Consent to Service of Process.............................. 77
SECTION 9.10. WAIVER OF JURY TRIAL.................................................................... 78
SECTION 9.11. Headings................................................................................ 78
SECTION 9.12. Confidentiality......................................................................... 78
SECTION 9.13. Interest Rate Limitation................................................................ 79
{/TABLE}
{TABLE}
{S} {C} {C}
Schedule 1.01A FORM OF ASSIGNMENT AND ACCEPTANCE..........................................................
Schedule 1.01B FORM OF INCREMENTAL FACILITY ACTIVATION NOTICE.............................................
Schedule 1.01C EXISTING LETTERS OF CREDIT.................................................................
Schedule 2.01 COMMITMENTS................................................................................
Schedule 2.02 FORM OF NEW LENDER SUPPLEMENT..............................................................
Schedule 3.01 BORROWER AND SUBSIDIARIES AND JURISDICTIONS OF
ORGANIZATION............................................................................
{/TABLE}
iii
{PAGE}
{TABLE}
{CAPTION}
PAGE
{S} {C} {C}
Schedule 3.15 TRADEMARKS, TRADENAMES AND SERVICE MARKS...................................................
Schedule 3.16(a) UCC FILING JURISDICTIONS...................................................................
Schedule 3.16(b) MORTGAGE FILING JURISDICTIONS..............................................................
Schedule 4.01(b) FORM OF OPINION LETTER.....................................................................
Schedule 4.01(f) FORM OF GUARANTEE AND COLLATERAL AGREEMENT.................................................
Schedule 5.10 CERTAIN INTERCOMPANY LOANS.................................................................
Schedule 6.01 EXISTING INDEBTEDNESS......................................................................
Schedule 6.01(e) GUARANTEE OBLIGATIONS OF BIG O TIRES, INC. AND SUBSIDIARIES................................
Schedule 6.02 EXISTING LIENS.............................................................................
Schedule 6.03(a) DISPOSITION OF PROPERTY OF BIG O TIRES, INC. OR BIG
O RETAIL ENTERPRISES.......................................................................
Schedule 6.04(b) CERTAIN EXISTING INVESTMENTS AND LOANS.....................................................
Schedule 6.07 EXISTING RESTRICTIONS......................................................................
Schedule 6.13 CERTAIN ASSET SALES........................................................................
{/TABLE}
iv
{PAGE}
CREDIT AGREEMENT
THIS CREDIT AGREEMENT, dated as of March 31, 2003, is among
TBC Corporation, a Delaware corporation with its principal office located at
4770 Hickory Hill Road, Memphis, Tennessee 38141 (the "Borrower"), the Lenders
signatory to this Agreement (each a "Lender"), First Tennessee Bank National
Association, a banking corporation with its principal office located at 165
Madison Avenue, Memphis, Tennessee 38103, as administrative agent for the
Lenders (in such capacity, the "Administrative Agent") and JPMorgan Chase Bank,
a banking corporation with an office located at 270 Park Avenue, New York, New
York 10017, as co-administrative agent for the Lenders (in such capacity the
"Co-Administrative Agent").
RECITALS
WHEREAS, the Borrower is a party to an existing $160,000,000
amended and restated credit agreement (as amended from time to time, the
"Existing Credit Agreement"), dated as of January 5, 2001 among the Borrower,
certain of its subsidiaries, as guarantors, various lenders and the agents named
therein;
WHEREAS, the Borrower intends to refinance, terminate and
replace the Existing Credit Agreement (the "Refinancing"); and
WHEREAS, to facilitate the Refinancing, and to finance the
acquisition of Merchant's, Incorporated and its subsidiary (the "Merchant's
Acquisition"), the Borrower's working capital needs, capital expenditures,
further acquisitions and for all other general corporate purposes, the Borrower
wishes to establish with the Lenders credit facilities providing for term loans,
revolving loans, letters of credit and swingline loans of up to $208,500,000 in
the aggregate maximum principal amount at any time outstanding, and the Lenders
and the Administrative Agent are willing to establish such credit facilities on
the terms and conditions set forth herein;
NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged by the parties hereto,
such parties hereby 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.
"Acceptable Acquisition" has the meaning set forth in Section
6.04.
{PAGE}
2
"Additional Prudential Notes" means the Senior Notes the
Borrower issued and Prudential purchased pursuant to the Note Agreement to be
dated as of April 1, 2003 between the Borrower and Prudential and its
affiliates.
"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 First Tennessee Bank National
Association, 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 highest of (a) the Prime Rate in effect on such day, and (b) the
Federal Funds Effective Rate in effect on such day plus 0.5%. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective as of the opening of business on the effective
day of such change in the Prime Rate, or the Federal Funds Effective Rate,
respectively.
"Applicable Percentage" means, with respect to any Lender, at
any time, the percentage of the total Revolving Credit Commitments represented
by such Lender's Revolving Credit Commitment at such time. If the Revolving
Credit Commitments have terminated or expired, the Applicable Percentages shall
be determined based upon the principal amount of all Revolving Loans
outstanding, giving effect to any assignments and any increase pursuant to
Section 2.02(d).
"Applicable Rate" means, for any day, with respect to any ABR
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