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Title: |
Indemnification Consent Agreement |
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Entities: |
Chase Manhattan Bank; Chase Securities Inc.; Citibank, NA; Middletown Power LLC; NRG Energy, Inc.; Salomon Smith Barney Inc. |
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Date: |
2000 |
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Size: |
Preview shows 5KB of 15KB total |
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Price: |
$37 |
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ID: |
#1407469 |
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INDEMNIFICATION CONSENT AGREEMENT
This Indemnification Consent Agreement (this "Agreement") is made as of
this 22nd day of February, 2000, among NRG Energy, Inc. (the "Company"), NRG
Northeast Generating LLC (the "Issuer"), Chase Securities Inc. and Salomon Smith
Barney Inc., as representatives of the several Initial Purchasers (as defined
below) (collectively the "Representatives"), The Chase Manhattan Bank (in its
capacity as trustee under the Indenture (as defined below), the "Trustee", in
its capacity as collateral agent under the Collateral Agency and Intercreditor
Agreement, the "Collateral Agent", and in its capacity as administrative agent
under the working capital revolving loan facility, a "Working Capital
Administrative Agent") and Citibank, N.A. (in its capacity as administrative
agent under the working capital revolving loan facility, a "Working Capital
Administrative Agent", and together with The Chase Manhattan Bank, the "Working
Capital Administrative Agents") in connection with (i) the issuance and sale by
the Issuer of $320,000,000 aggregate principal amount of its 8.065% Series A
Senior Secured Bonds due 2004, $130,000,000 aggregate principal amount of its
8.842% Series B Senior Secured Bonds due 2015 and $300,000,000 aggregate
principal amount of its 9.292% Series C Senior Secured Bonds due 2024
(collectively, the "Bonds"), guaranteed by Arthur Kill Power LLC, Astoria Gas
Turbine Power LLC, Connecticut Jet Power LLC, Devon Power LLC, Dunkirk Power
LLC, Huntley Power LLC, Middletown Power LLC, Montville Power LLC, Norwalk
Harbor Power LLC, Oswego Harbor Power LLC and Somerset Power LLC (each a
"Guarantor" and collectively the "Guarantors") and (ii) the execution and
delivery of a working capital revolving loan facility with an aggregate
principal amount of up to $50,000,000 provided by the lenders named therein (the
"Working Capital Facility").
RECITALS
A. The Issuer, the Guarantors party thereto, the Administrative Agents
party thereto, The Chase Manhattan Bank as the collateral agent, Citibank, N.A.
as the paying agent and the lenders referred to therein (the "Lenders") have
entered into a Loan Agreement dated as of June 4, 1999 (the "Loan Agreement"),
pursuant to which the Lenders agreed subject to the terms and conditions
thereof, to lend to the Issuer in an aggregate principal amount not exceeding
$686,564,000 including a loan in the principal amount of $68,440,000 (the
"Tranche D Term Loan") the proceeds of which the Issuer used, inter alia, to
lend to its affiliate, Oswego Harbor Power LLC ("Oswego Harbor Power") to enable
Oswego Harbor Power to purchase the Oswego facility from Niagara Mohawk Power
Corporation, and revolving loans in an aggregate principal amount not to exceed
$4,234,000 (the "Tranche D Revolver Amount") for working capital purposes of the
Issuer and its subsidiaries.
B. Before the completion of the acquisition of Oswego facility, on or
about July 12, 1999, suit was filed by Fortistar Capital, Inc. in District
Court, Fourth Judicial District, in Hennepin County, Minnesota against the
Company (together with any other actions or claims relating to or arising out of
such suit, the "Litigation"), as a result of
Indemnification Consent Agreement
---------------------------------
<PAGE> 2
which the Issuer was unable to make certain representations under the Loan
Agreement.
C. In order to draw-down the Tranche D Term Loan and the Tranche D
Revolver Amount, the Issuer requested that the Lenders waive certain conditions
precedent to the Loan Agreement that required the Issuer to make representations
concerning legal actions, suits and proceedings.
D. As a condition to agreeing to such waiver, the Administrative Agents
and the Lenders required that the Company indemnify each of them and certain
other persons for any losses, damages and expenses that might be incurred by any
of them or such persons with respect to the Litigation in accordance with the
Indemnification Agreement dated December 23, 1999 (the "Indemnification
Agreement").
E. Pursuant to the Indemnification Agreement, the Administrative Agents
and the Lenders required the Company to indemnify any bank, financing
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