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Title: |
Credit Agreement |
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Entities: |
Bank One, NA; Citibank (USA) NA; Congress Financial Corp.; Fleet National Bank; Fleet Securities, Inc.; JPMorgan Chase Bank; McGraw-Hill Companies Inc.; Bank of America, NA; Bank of New York; Keybank NA; Bingham McCutchen; Troutman Sanders; Zale Delaware, Inc.; DDCC, Inc.; and TXDC, L.P.; Fleet Retail Finance, Inc.; Zale Corp. |
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Date: |
2003 |
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Size: |
Preview shows 85KB of 301KB total |
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Price: |
$99 |
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ID: |
#152350 |
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Start of Preview |
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CREDIT AGREEMENT
dated as of
July 23, 2003
among
ZALE DELAWARE, INC.,
ZALE CORPORATION,
DDCC, INC., and
TXDC, L.P., as
Borrowers
The LENDERS Party Hereto,
FLEET NATIONAL BANK
as Administrative Agent and Issuing Bank
FLEET RETAIL FINANCE, INC.
as Collateral Agent
and
FLEET SECURITIES INC.
as Arranger
and
BANK ONE, NA
CONGRESS FINANCIAL CORPORATION (SOUTHWEST)
as Co-Syndication Agents
and
JPMORGAN CHASE BANK
BANK OF AMERICA, N.A.
as Co-Documentation Agents
TABLE OF CONTENTS
| Page | ||||||||
|
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| ARTICLE I DEFINITIONS | 1 | |||||||
| SECTION 1.1. | Defined Terms | 1 | ||||||
| SECTION 1.2. | Terms Generally | 23 | ||||||
| SECTION 1.3. | Accounting Terms; GAAP | 24 | ||||||
| ARTICLE II AMOUNT AND TERMS OF CREDIT | 24 | |||||||
| SECTION 2.1. | Commitment of the Lenders | 24 | ||||||
| SECTION 2.2. | Reserves; Changes to Reserves | 25 | ||||||
| SECTION 2.3. | Making of Loans | 25 | ||||||
| SECTION 2.4. | Overadvances | 26 | ||||||
| SECTION 2.5. | Swingline Loans | 26 | ||||||
| SECTION 2.6. | Letters of Credit | 27 | ||||||
| SECTION 2.7. | Settlements Amongst Lenders | 31 | ||||||
| SECTION 2.8. | Notes; Repayment of Loans | 32 | ||||||
| SECTION 2.9. | Interest on Loans | 32 | ||||||
| SECTION 2.10. | Default Interest | 32 | ||||||
| SECTION 2.11. | Certain Fees | 33 | ||||||
| SECTION 2.12. | Unused Commitment Fee | 33 | ||||||
| SECTION 2.13. | Letter of Credit Fees | 33 | ||||||
| SECTION 2.14. | Nature of Fees | 34 | ||||||
| SECTION 2.15. | Termination or Reduction of Commitments | 34 | ||||||
| SECTION 2.16. | Alternate Rate of Interest | 34 | ||||||
| SECTION 2.17. | Conversion and Continuation of Loans | 35 | ||||||
| SECTION 2.18. | Mandatory Prepayment; Cash Collateral | 36 | ||||||
| SECTION 2.19. | Optional Prepayment of Loans; Reimbursement of Lenders | 36 | ||||||
| SECTION 2.20. | Maintenance of Loan Account; Statements of Account | 38 | ||||||
| SECTION 2.21. | Cash Receipts | 38 | ||||||
| SECTION 2.22. | Application of Payments | 40 | ||||||
| SECTION 2.23. | Increased Costs | 41 | ||||||
| SECTION 2.24. | Change in Legality | 42 | ||||||
| SECTION 2.25. | Payments; Sharing of Setoff | 43 | ||||||
| SECTION 2.26. | Taxes | 44 | ||||||
| SECTION 2.27. | Security Interests in Collateral | 45 | ||||||
| SECTION 2.28. | Mitigation Obligations; Replacement of Lenders | 46 | ||||||
| ARTICLE III REPRESENTATIONS AND WARRANTIES | 47 | |||||||
| SECTION 3.1. | Organization; Powers | 47 | ||||||
| SECTION 3.2. | Authorization; Enforceability | 47 | ||||||
| SECTION 3.3. | Governmental Approvals; No Conflicts | 47 | ||||||
| SECTION 3.4. | Financial Condition | 47 | ||||||
| SECTION 3.5. | Properties | 48 | ||||||
TABLE OF CONTENTS
(Continued)
| Page | ||||||||
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| SECTION 3.6. | Litigation and Environmental Matters | 48 | ||||||
| SECTION 3.7. | Compliance with Laws and Agreements | 49 | ||||||
| SECTION 3.8. | Investment and Holding Company Status | 49 | ||||||
| SECTION 3.9. | Taxes | 49 | ||||||
| SECTION 3.10. | ERISA | 49 | ||||||
| SECTION 3.11. | Disclosure | 50 | ||||||
| SECTION 3.12. | Subsidiaries | 50 | ||||||
| SECTION 3.13. | Insurance | 51 | ||||||
| SECTION 3.14. | Accounts; Credit Cards | 51 | ||||||
| SECTION 3.15. | Labor Matters | 51 | ||||||
| SECTION 3.16. | Security Documents | 51 | ||||||
| SECTION 3.17. | Federal Reserve Regulations | 51 | ||||||
| SECTION 3.18. | Solvency | 51 | ||||||
| SECTION 3.19. | Foreign Assets Control Regulations, Etc. | 52 | ||||||
| ARTICLE IV CONDITIONS | 52 | |||||||
| SECTION 4.1. | Closing Date | 52 | ||||||
| SECTION 4.2. | Conditions Precedent to Each Loan and Each Letter of Credit | 55 | ||||||
| ARTICLE V AFFIRMATIVE COVENANTS | 55 | |||||||
| SECTION 5.1. | Financial Statements and Other Information | 55 | ||||||
| SECTION 5.2. | Notices of Material Events | 57 | ||||||
| SECTION 5.3. | Information Regarding Collateral | 58 | ||||||
| SECTION 5.4. | Existence; Conduct of Business | 58 | ||||||
| SECTION 5.5. | Payment of Obligations | 58 | ||||||
| SECTION 5.6. | Maintenance of Properties | 59 | ||||||
| SECTION 5.7. | Insurance | 59 | ||||||
| SECTION 5.8. | Casualty and Condemnation | 60 | ||||||
| SECTION 5.9. | Books and Records; Inspection and Audit Rights; Appraisals | 60 | ||||||
| SECTION 5.10. | Compliance with Laws | 60 | ||||||
| SECTION 5.11. | Employee Benefit Plans | 60 | ||||||
| SECTION 5.12. | Use of Proceeds and Letters of Credit | 61 | ||||||
| SECTION 5.13. | New Subsidiaries | 61 | ||||||
| SECTION 5.14. | Further Assurances | 61 | ||||||
| ARTICLE VI NEGATIVE COVENANTS | 61 | |||||||
| SECTION 6.1. | Indebtedness and Other Obligations | 62 | ||||||
| SECTION 6.2. | Liens | 62 | ||||||
| SECTION 6.3. | Fundamental Changes | 64 | ||||||
| SECTION 6.4. | Investments, Loans, Advances, Guarantees and Acquisitions | 64 | ||||||
| SECTION 6.5. | Asset Sales | 65 | ||||||
-ii-
TABLE OF CONTENTS
(Continued)
| Page | ||||||||
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| SECTION 6.6. | Restricted Payments; Certain Payments of Indebtedness | 66 | ||||||
| SECTION 6.7. | Transactions with Affiliates | 67 | ||||||
| SECTION 6.8. | Fixed Charge Coverage Ratio | 67 | ||||||
| SECTION 6.9. | Hedging Agreements | 67 | ||||||
| ARTICLE VII EVENTS OF DEFAULT | 68 | |||||||
| SECTION 7.1. | Events of Default | 68 | ||||||
| SECTION 7.2. | When Continuing | 71 | ||||||
| SECTION 7.3. | Remedies on Default | 71 | ||||||
| SECTION 7.4. | Application of Proceeds | 71 | ||||||
| ARTICLE VIII THE AGENTS | 72 | |||||||
| SECTION 8.1. | Administration by the Agents | 72 | ||||||
| SECTION 8.2. | The Collateral Agent | 72 | ||||||
| SECTION 8.3. | Sharing of Excess Payments | 72 | ||||||
| SECTION 8.4. | Agreement of Required Lenders | 73 | ||||||
| SECTION 8.5. | Liability of Agents | 73 | ||||||
| SECTION 8.6. | Reimbursement and Indemnification | 74 | ||||||
| SECTION 8.7. | Rights of Agents | 74 | ||||||
| SECTION 8.8. | Independent Lenders and Issuing Bank | 75 | ||||||
| SECTION 8.9. | Notice of Transfer | 75 | ||||||
| SECTION 8.10. | Successor Agent | 75 | ||||||
| SECTION 8.11. | Reports and Financial Statements | 75 | ||||||
| SECTION 8.12. | Syndication Agent, Documentation Agent, and Arranger | 75 | ||||||
| ARTICLE IX MISCELLANEOUS | 76 | |||||||
| SECTION 9.1. | Notices | 76 | ||||||
| SECTION 9.2. | Waivers; Amendments | 76 | ||||||
| SECTION 9.3. | Expenses; Indemnity; Damage Waiver | 78 | ||||||
| SECTION 9.4. | Successors and Assigns | 80 | ||||||
| SECTION 9.5. | Accession | 82 | ||||||
| SECTION 9.6. | Survival | 82 | ||||||
| SECTION 9.7. | Counterparts; Integration; Effectiveness | 83 | ||||||
| SECTION 9.8. | Severability | 83 | ||||||
| SECTION 9.9. | Right of Setoff | 83 | ||||||
| SECTION 9.10. | Governing Law; Jurisdiction; Consent to Service of Process | 83 | ||||||
| SECTION 9.11. | Waiver of Jury Trial | 84 | ||||||
| SECTION 9.12. | Headings | 84 | ||||||
| SECTION 9.13. | Interest Rate Limitation | 84 | ||||||
| SECTION 9.14. | Confidentiality | 85 | ||||||
| SECTION 9.15. | Additional Waivers | 86 | ||||||
-iii-
TABLE OF CONTENTS
(Continued)
| EXHIBITS | ||
|
|
||
| A. | Assignment and Acceptance | |
| B-1. | Revolving Note | |
| B-2. | Swingline Note | |
| C. | Security Agreement | |
| D. | Opinion of Troutman Sanders LLP | |
| E. | Borrowing Base Certificate | |
| F. | Instrument of Accession | |
| SCHEDULES | ||
|
|
||
| 1.1 | Lenders and Commitments | |
| 1.1(a) | Existing Letters of Credit | |
| 2.21(a)(i) | DDAs and Concentration Accounts | |
| 2.21(a)(ii) | Credit Card Arrangements | |
| 3.6 | Litigation and Environmental Matters | |
| 3.12 | Subsidiaries | |
| 3.13 | Insurance | |
| 5.1(i) | Financial Reporting Requirements | |
| 6.1 | Indebtedness | |
| 6.2 | Liens | |
| 6.4 | Investments | |
| 6.7 | Transactions with Affiliates |
-iv-
CREDIT AGREEMENT dated as of July 23, 2003 (this Agreement) among
| ZALE DELAWARE, INC., a corporation organized under the laws of the State of Delaware having a place of business at 901 W. Walnut Hill Lane, Irving, Texas 75038-1003 (Zale Delaware), | ||
| ZALE CORPORATION, a corporation organized under the laws of the State of Delaware having a place of business at 901 W. Walnut Hill Lane, Irving, Texas 75038-1003 (Zale), | ||
| DDCC, INC., a corporation organized under the laws of the State of Delaware having a place of business at 101 Convention Center Drive, Suite 850 Las Vegas, Nevada 89109 (DDCC), and | ||
| TXDC, L.P., a limited partnership organized under the laws of the State of Texas, having a place of business at 901 W. Walnut Hill Lane, Irving, Texas 75038-1003 (TXDC), as BORROWERS; and | ||
| the LENDERS party hereto; and | ||
| FLEET NATIONAL BANK, as Administrative Agent and Issuing Bank, a national banking association having a place of business at 40 Broad Street, Boston, Massachusetts 02109; and | ||
| FLEET RETAIL FINANCE, INC., as Collateral Agent for the Lenders, a Delaware corporation, having a place of business at 40 Broad Street, Boston, Massachusetts 02109; and | ||
| BANK ONE, NA and CONGRESS FINANCIAL CORPORATION (SOUTHWEST) as Co-Syndication Agents; and | ||
| JP MORGAN CHASE BANK and BANK OF AMERICA, N.A. as Co-Documentation Agents |
in consideration of the mutual covenants herein contained and benefits to be derived herefrom.
ARTICLE I
DEFINITIONS
SECTION 1.1. Defined Terms. As used in this Agreement, the following terms have the meanings specified below:
Account means any right to payment for goods sold or leased or for services rendered, whether or not earned by performance, or any right to payment for credit extended for goods sold or leased or services rendered.
ACH means automated clearing house transfers.
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