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Title: |
Credit Agreement |
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Entities: |
Bear, Stearns & Co. Inc.; Canadian Imperial Bank of Commerce; Fleet National Bank; General Electric Capital Corp.; Goldman Sachs Credit Partners LP; Lehman Brothers Inc.; Lehman Commercial Paper Inc.; Northwestern Mutual Life Insurance Co.; State Street Bank & Trust Co.; Bank of New York; Goldman, Sachs & Co.; Cahill Gordon & Reindel LLP; Kirkland & Ellis; Muzak Holdings LLC; Muzak LLC; Bi Acquisition LLC |
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Date: |
2003 |
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Size: |
Preview shows 21KB of 756KB total |
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Price: |
$99 |
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ID: |
#126144 |
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$60,000,000
CREDIT AGREEMENT
among
MUZAK HOLDINGS LLC,
as Parent Guarantor,
MUZAK LLC,
as Borrower,
The Several Lenders
from Time to Time Parties Hereto,
LEHMAN COMMERCIAL PAPER INC. and FLEET NATIONAL BANK,
as Co-Syndication Agents,
GENERAL ELECTRIC CAPITAL CORPORATION,
as Documentation Agent,
and
BEAR STEARNS CORPORATE LENDING INC.,
as Administrative Agent
Dated as of May 20, 2003
================================================================================
BEAR, STEARNS & CO. INC. and LEHMAN BROTHERS INC., as Joint Lead Arrangers
and Joint Bookrunners
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
----
{S} {C} {C}
SECTION 1. DEFINITIONS........................................................1
1.1. Defined Terms......................................................1
1.2. Other Definitional Provisions.....................................28
SECTION 2. AMOUNT AND TERMS OF REVOLVING COMMITMENTS.........................29
2.1. Revolving Commitments.............................................29
2.2. Procedure for Loan Borrowing......................................29
2.3. Commitment Fees, etc..............................................29
2.4. Termination or Reduction of Revolving Commitments.................30
2.5. L/C Commitment....................................................30
2.6. Procedure for Issuance of Letter of Credit........................31
2.7. Fees and Other Charges............................................31
2.8. L/C Participations................................................32
2.9. Reimbursement Obligation of the Borrower..........................33
2.10. Obligations Absolute..............................................33
2.11. Letter of Credit Payments.........................................34
2.12. Applications......................................................34
SECTION 3. GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT......34
3.1. Optional Prepayments..............................................34
3.2. Mandatory Prepayments and Revolving Commitment Reductions.........34
3.3. Conversion and Continuation Options...............................35
3.4. Limitations on Eurodollar Tranches................................35
3.5. Interest Rates and Payment Dates..................................36
3.6. Computation of Interest and Fees..................................36
3.7. Inability to Determine Interest Rate..............................36
3.8. Pro Rata Treatment and Payments...................................37
3.9. Requirements of Law...............................................38
3.10. Taxes.............................................................39
3.11. Indemnity.........................................................41
3.12. Change of Lending Office..........................................42
3.13. Replacement of Lenders............................................42
3.14. Evidence of Debt..................................................43
3.15. Illegality........................................................43
{/TABLE}
-i-
{PAGE}
{TABLE}
{CAPTION}
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----
{S} {C} {C}
SECTION 4. REPRESENTATIONS AND WARRANTIES....................................43
4.1. Financial Condition...............................................43
4.2. No Change.........................................................44
4.3. Corporate Existence; Compliance with Law..........................44
4.4. Power; Authorization; Enforceable Obligations.....................45
4.5. No Legal Bar......................................................45
4.6. Litigation........................................................45
4.7. No Default........................................................45
4.8. Ownership of Property; Liens......................................45
4.9. Intellectual Property.............................................46
4.10. Taxes.............................................................46
4.11. Federal Regulations...............................................46
4.12. Labor Matters.....................................................46
4.13. ERISA.............................................................46
4.14. Investment Company Act; Other Regulations.........................47
4.15. Subsidiaries......................................................47
4.16. Use of Proceeds...................................................47
4.17. Environmental Matters.............................................47
4.18. Accuracy of Information, etc......................................48
4.19. Security Documents................................................49
4.20. Solvency..........................................................49
4.21. Senior Indebtedness...............................................50
4.22. Regulation H......................................................50
4.23. Certain Documents.................................................50
4.24. Holdings..........................................................50
SECTION 5. CONDITIONS PRECEDENT..............................................50
5.1. Conditions to Initial Extension of Credit.........................50
5.2. Conditions to Each Extension of Credit............................53
SECTION 6. AFFIRMATIVE COVENANTS.............................................54
6.1. Financial Statements..............................................54
6.2. Certificates; Other Information...................................55
6.3. Payment of Obligations............................................57
6.4. Maintenance of Existence; Compliance..............................57
6.5. Maintenance of Property; Insurance................................57
6.6. Inspection of Property; Books and Records; Discussions............57
6.7. Notices...........................................................58
6.8. Environmental Laws................................................58
6.9. Additional Collateral, etc........................................59
{/TABLE}
-ii-
{PAGE}
{TABLE}
{CAPTION}
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{S} {C} {C}
6.10. Further Assurances................................................60
6.11. Post-Closing Obligations..........................................60
SECTION 7. NEGATIVE COVENANTS................................................61
7.1. Financial Condition Covenants.....................................61
7.2. Indebtedness......................................................63
7.3. Liens.............................................................66
7.4. Fundamental Changes...............................................68
7.5. Disposition of Property...........................................69
7.6. Restricted Payments...............................................69
7.7. Capital Expenditures..............................................72
7.8. Investments.......................................................73
7.9. Modifications of Certain Debt Instruments.........................74
7.10. Transactions with Affiliates......................................74
7.11. Sales and Leasebacks; Sale or Discount of Receivables.............75
7.12. Hedge Agreements..................................................75
7.13. Changes in Fiscal Periods.........................................75
7.14. Negative Pledge Clauses...........................................75
7.15. Clauses Restricting Subsidiary Distributions......................75
7.16. Lines of Business; Holdings.......................................76
7.17. Amendments to Certain Related Agreements..........................76
SECTION 8. EVENTS OF DEFAULT.................................................76
SECTION 9. THE AGENTS........................................................80
9.1. Appointment.......................................................80
9.2. Delegation of Duties..............................................80
9.3. Exculpatory Provisions............................................80
9.4. Reliance by Agents................................................80
9.5. Notice of Default.................................................81
9.6. Non-Reliance on Agents and Other Lenders..........................81
9.7. Indemnification...................................................82
9.8. Agent in Its Individual Capacity..................................82
9.9. Successor Administrative Agent....................................82
9.10. Agents Generally..................................................83
9.11. The Joint Lead Arrangers..........................................83
SECTION 10. MISCELLANEOUS.....................................................83
10.1. Amendments and Waivers............................................83
10.2. Notices...........................................................84
10.3. No Waiver; Cumulative Remedies....................................86
{/TABLE}
-iii-
{PAGE}
{TABLE}
{CAPTION}
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{S} {C} {C}
10.4. Survival of Representations and Warranties........................87
10.5. Payment of Expenses and Taxes.....................................87
10.6. Successors and Assigns; Participations and Assignments............88
10.7. Adjustments; Set-off..............................................91
10.8. Counterparts......................................................92
10.9. Severability......................................................92
10.10. Integration.......................................................92
10.11. GOVERNING LAW.....................................................93
10.12. Submission to Jurisdiction; Waivers...............................93
10.13. Acknowledgments...................................................93
10.14. Releases of Guarantees and Liens..................................94
10.15. Confidentiality...................................................94
10.16. WAIVERS OF JURY TRIAL.............................................94
10.17. Delivery of Addenda...............................................95
10.18. Agreement Currency................................................95
10.19. Usury Savings Clause..............................................95
{/TABLE}
ANNEX:
A Pricing Grid
SCHEDULES:
1.1 Mortgaged Property
1.1(a) Fee and Leasehold Property
2.5(c) Existing Letters of Credit
4.4 Consents, Authorizations, Filings and Notices
4.6 Litigation
4.9 Intellectual Property
4.12 Labor Matters
4.15 Subsidiaries
4.19(a) UCC Filing Jurisdictions
4.19(b) Mortgage Filing Jurisdictions
7.2(d) Existing Indebtedness
7.3(f) Existing Liens
7.8(e) Existing Investments
EXHIBITS:
A Form of Guarantee and Collateral Agreement
B Form of Compliance Certificate
C Form of Closing Certificate
D Form of Mortgage
E Form of Assignment and Assumption
F-1 Form of Legal Opinion of Kirkland & Ellis
F-2 Form of Local Counsel Opinion
-iv-
{PAGE}
G Form of Exemption Certificate
H Form of Note
I Form of Addendum
J Form of Permitted Sponsor Subordinated Debt Agreement
K Form of Solvency Certificate
L Form of Borrowing Notice
M Form of Conversion Notice
-v-
{PAGE}
CREDIT AGREEMENT, dated as of May 20, 2003, among MUZAK LLC, a
Delaware limited liability company (the "Borrower"), MUZAK HOLDINGS LLC, a
Delaware limited liability company ("Holdings"), the several banks and other
financial institutions or entities from time to time parties to this Agreement
(the "Lenders"), BEAR, STEARNS & CO. INC. and LEHMAN BROTHERS INC., as joint
lead arrangers and joint bookrunners (together with their successors and
assigns, collectively, the "Joint Lead Arrangers"), LEHMAN COMMERCIAL PAPER INC.
and FLEET NATIONAL BANK, as co-syndication agents (together with their
successors and assigns, in such capacity, collectively, the "Co-Syndication
Agents"), GENERAL ELECTRIC CAPITAL CORPORATION, as documentation agent (together
with its successors and assigns, in such capacity, the "Documentation Agent"),
and BEAR STEARNS CORPORATE LENDING INC., as administrative agent (together with
its successors and assigns, in such capacity, the "Administrative Agent").
The parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
1.1. Defined Terms. As used in this Agreement, the terms listed in
this Section 1.1 shall have the respective meanings set forth in this Section
1.1.
"Acquisition Subsidiary": an Included Subsidiary that is either
acquired in or formed simultaneously and in connection with, a Permitted
Acquisition.
"Addendum": an instrument, substantially in the form of Exhibit I, by
which a Lender becomes a party to this Agreement as of the Closing Date.
"Additional Related Agreements": collectively, the following: (i) any
agreements relating to Permitted Seller Debt and (ii) any agreements relating to
Holdings Preferred Stock.
"Additional Senior Notes": additional Senior Notes of the Borrower and
Muzak Finance to be issued pursuant to the Senior Notes Indenture.
"Additional Senior Subordinated Notes": additional Senior Subordinated
Notes of the Borrower and Muzak Finance to be issued pursuant to the Senior
Subordinated Notes Indenture.
"Adjustment Date": as defined in the Pricing Grid.
"Administrative Agent": as defined in the recitals to this Agreement.
"Affiliate": as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with,
such Person. For purposes of this definition, "control" of a Person means the
power, directly or indirectly, either to (a) vote 10% or more of the securities
having ordinary voting power for the election of directors (or persons
performing similar functions) of such Person or (b) direct or cause the
direction of the management and policies of such Person, whether by contract or
otherwise.
{PAGE}
-2-
"Agents": the collective reference to the Co-Syndication Agents, the
Documentation Agent, the Joint Lead Arrangers and the Administrative Agent,
which term shall include, for purposes of Section 9 only, the Issuing Lender.
"Aggregate Exposure": with respect to any Lender at any time, an
amount equal to (a) until the Closing Date, the aggregate amount of such
Lender's Revolving Commitment at such time and (b) thereafter, the amount of
such Lender's Revolving Commitment then in effect or, if the Revolving
Commitments have been terminated, the amount of such Lender's Revolving
Extensions of Credit then outstanding.
"Aggregate Exposure Percentage": with respect to any Lender at any
time, the ratio (expressed as a percentage) of such Lender's Aggregate Exposure
at such time to the Aggregate Exposure of all Lenders at such time.
"Agreement": this Credit Agreement.
"Agreement Currency": as defined in Section 10.18.
"Applicable Margin": for each Type of Loan, the rate per annum set
forth under the relevant column heading below:
Eurodollar Loans Base Rate Loans
---------------- ---------------
4.00% 2.75%
; provided that, on and after the first Adjustment Date (as defined in the
Pricing Grid) occurring upon receipt of the Borrower's financial statements for
the two full fiscal quarters of the Borrower completed after the Closing Date,
the Applicable Margin with respect to Loans will be determined pursuant to the
Pricing Grid.
"Application": an application, in such form as the Issuing Lender may
specify from time to time, requesting the Issuing Lender to open a Letter of
Credit.
"Approved Fund": with respect to any Lender that is a fund that
invests in commercial loans, any other fund that invests in commercial loans and
is managed or advised by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.
"Asset Sale": any Disposition of Property or series of related
Dispositions of Property (excluding any such Disposition permitted by clause
(a), (b), (c), (d), (f), (g) or (i) of Section 7.5) that yields gross proceeds
to any Group Member (valued at the initial principal amount thereof in the case
of non-cash proceeds consisting of notes or other debt securities and valued at
fair market value in the case of other non-cash proceeds) in excess of $500,000.
"Assignee": as defined in Section 10.6(b).
"Assignment and Assumption": an Assignment and Assumption,
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