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Document Preview Term Loan Agreement |
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Title: |
Term Loan Agreement |
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Entities: |
Arch Coal, Inc.; Natural Resource Partners LP; Bank of New York; Gibson, Dunn & Crutcher; Thompson & Knight; FRC-WPP NRP Investment L.P.; Southwest Bank of Texas, N.A.; First Reserve GP IX Inc. |
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Date: |
2004 |
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Size: |
Preview shows 21KB of 196KB total |
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Price: |
$75 |
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ID: |
#191958 |
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================================================================================
TERM LOAN AGREEMENT
----------
FRC-WPP NRP INVESTMENT L.P.
and
SOUTHWEST BANK OF TEXAS, N.A.
as Administrative Agent,
Sole Book Runner and Lead Arranger
and CERTAIN FINANCIAL INSTITUTIONS
as Lenders
----------
$25,000,000
December 22, 2003
================================================================================
{PAGE}
TABLE OF CONTENTS
{Table}
{Caption}
Page
{S} {C} {C} {C}
ARTICLE I - Definitions and References............................................................................1
Section 1.1. Defined Terms..........................................................................1
Section 1.2. Exhibits and Schedules; Additional Definitions........................................12
Section 1.3. Amendment of Defined Instruments......................................................12
Section 1.4. References and Titles.................................................................12
Section 1.5. Calculations and Determinations.......................................................12
Section 1.6. Joint Preparation; Construction of Indemnities and Releases...........................13
ARTICLE II - The Loans...........................................................................................13
Section 2.1. Commitments to Lend; Notes............................................................13
Section 2.2. Request for Loans.....................................................................13
Section 2.3. Continuations and Conversions of Loans................................................14
Section 2.4. Use of Proceeds.......................................................................15
Section 2.5. Interest Rates and Fees...............................................................15
Section 2.6. Optional Prepayments..................................................................16
Section 2.7. Scheduled Payments and Mandatory Prepayments..........................................16
ARTICLE III - Payments to Lenders................................................................................17
Section 3.1. General Procedures....................................................................17
Section 3.2. Capital Reimbursement.................................................................18
Section 3.3. Increased Cost of LIBOR Loans.........................................................18
Section 3.4. Availability..........................................................................19
Section 3.5. Funding Losses........................................................................20
Section 3.6. Reimbursable Taxes....................................................................20
ARTICLE IV - Conditions Precedent to Lending.....................................................................21
Section 4.1. Documents to be Delivered.............................................................21
Section 4.2. Additional Conditions Precedent.......................................................23
ARTICLE V - Representations and Warranties.......................................................................23
Section 5.1. No Default............................................................................23
Section 5.2. Organization and Good Standing........................................................23
Section 5.3. Authorization.........................................................................24
Section 5.4. No Conflicts or Consents..............................................................24
Section 5.5. Enforceable Obligations...............................................................24
Section 5.6. Initial Financial Statements..........................................................24
Section 5.7. Other Obligations and Restrictions....................................................24
Section 5.8. Full Disclosure.......................................................................25
Section 5.9. Litigation............................................................................25
Section 5.10. Labor Disputes and Acts of God........................................................25
Section 5.11. ERISA Plans and Liabilities...........................................................25
Section 5.12. Environmental and Other Laws..........................................................25
Section 5.13. Names and Places of Business..........................................................26
Section 5.14. Borrower's Subsidiaries...............................................................26
{/Table}
i
{PAGE}
{Table}
{S} {C} {C} {C}
Section 5.15. Government Regulation.................................................................26
Section 5.16. Insider...............................................................................27
Section 5.17. Solvency..............................................................................27
Section 5.18. Title to Collateral...................................................................27
ARTICLE VI - Affirmative Covenants of Borrower...................................................................27
Section 6.1. Payment and Performance...............................................................27
Section 6.2. Books, Financial Statements and Reports...............................................27
Section 6.3. Other Information and Inspections.....................................................28
Section 6.4. Notice of Material Events and Change of Address.......................................29
Section 6.5. Maintenance of Properties.............................................................29
Section 6.6. Maintenance of Existence and Qualifications...........................................29
Section 6.7. Payment of Trade Liabilities, Taxes, etc..............................................29
Section 6.8. Intentionally deleted.................................................................30
Section 6.9. Performance on Borrower's Behalf......................................................30
Section 6.10. Interest..............................................................................30
Section 6.11. Compliance with Agreements and Law....................................................30
Section 6.12. Environmental Matters; Environmental Reviews..........................................30
Section 6.13. Evidence of Compliance................................................................31
Section 6.14. Bank Accounts; Offset.................................................................31
Section 6.15. Agreement to Deliver Security Documents...............................................31
Section 6.16. Registration of Acquired Units........................................................32
Section 6.17. Cash Collateral Account...............................................................32
ARTICLE VII - Negative Covenants of Borrower.....................................................................32
Section 7.1. Indebtedness..........................................................................32
Section 7.2. Limitation on Liens...................................................................33
Section 7.3. Limitation on Mergers, Issuances of Securities........................................33
Section 7.4. Limitation on Sales of Property.......................................................33
Section 7.5. Limitation on Dividends and Redemptions...............................................33
Section 7.6. Limitation on Investments and New Businesses..........................................33
Section 7.7. Limitation on Credit Extensions.......................................................33
Section 7.8. Transactions with Affiliates..........................................................33
Section 7.9. No Further Negative Pledges...........................................................33
Section 7.10. Prohibited Contracts..................................................................34
Section 7.11. Financial Covenants...................................................................34
ARTICLE VIII - Events of Default and Remedies....................................................................34
Section 8.1. Events of Default.....................................................................34
Section 8.2. Remedies..............................................................................37
ARTICLE IX - Administrative Agent................................................................................37
Section 9.1. Appointment and Authority.............................................................37
Section 9.2. Exculpation, Administrative Agent's Reliance, Etc.....................................38
Section 9.3. Credit Decisions......................................................................38
Section 9.4. Indemnification.......................................................................38
Section 9.5. Rights as Lender......................................................................39
{/Table}
ii
{PAGE}
{Table}
{S} {C} {C} {C}
Section 9.6. Sharing of Set-Offs and Other Payments................................................39
Section 9.7. Investments...........................................................................40
Section 9.8. Benefit of Article IX.................................................................40
Section 9.9. Resignation...........................................................................40
ARTICLE X - Miscellaneous........................................................................................41
Section 10.1. Waivers and Amendments; Acknowledgments...............................................41
Section 10.2. Survival of Agreements; Cumulative Nature.............................................42
Section 10.3. Notices...............................................................................42
Section 10.4. Payment of Expenses; Indemnity........................................................43
Section 10.5. Joint and Several Liability; Parties in Interest; Assignments.........................45
Section 10.6. Confidentiality.......................................................................47
Section 10.7. Governing Law; Submission to Process..................................................47
Section 10.8. Limitation on Interest................................................................48
Section 10.9. Termination; Limited Survival.........................................................49
Section 10.10. Severability..........................................................................49
Section 10.11. Counterparts; Fax.....................................................................49
Section 10.12. WAIVER OF JURY TRIAL..................................................................49
Section 10.13. Waiver of Punitive Damages............................................................50
Section 10.14. Binding Arbitration...................................................................50
{/Table}
iii
{PAGE}
Schedules and Exhibits:
Schedule 1 - Disclosure Schedule
Schedule 2 - Security Schedule
Schedule 3 - Lenders Schedule
Exhibit A - Promissory Note
Exhibit B - Borrowing Notice
Exhibit C - Continuation/Conversion Notice
Exhibit D - Certificate Accompanying Financial Statements
Exhibit E - Opinion of Gibson Dunn & Crutcher LLP, Counsel for Borrower
and General Partner
Exhibit F - Assignment and Acceptance
iv
{PAGE}
TERM LOAN AGREEMENT
THIS TERM LOAN AGREEMENT is made as of December 22, 2003 by and among
FRC-WPP NRP Investment L.P., a Delaware limited partnership (herein called
"Borrower"), Southwest Bank of Texas, N.A., individually and as agent (herein
called "Administrative Agent") and the Lenders referred to below. In
consideration of the mutual covenants and agreements contained herein the
parties hereto agree as follows:
ARTICLE I - Definitions and References
Section 1.1. Defined Terms. As used in this Agreement, each of the
following terms has the meaning given to such term in this Section 1.1 or in the
sections and subsections referred to below:
"Acquired Units" means the 4,796,920 subordinated units of NRP acquired
by Borrower pursuant to the Acquisition Documents, which are convertible into
common units of NRP pursuant to the NRP Limited Partnership Agreement
"Acquisition" means the acquisition by Borrower of the Acquired Units
from Ark Land Company, a wholly-owned subsidiary of Arch Coal, Inc. pursuant to
the Acquisition Documents.
"Acquisition Documents" means (i) that certain purchase and sale
agreement dated December 22, 2003 among Borrower, Ark Land Company, and Arch
Coal, Inc. and (ii) all other documents and instruments executed and delivered
in connection with the foregoing.
"Adjusted Base Rate" means the Base Rate plus the Base Rate Margin,
provided that the Adjusted Base Rate charged by any Person shall never exceed
the Highest Lawful Rate.
"Adjusted LIBOR Rate" means, for any LIBOR Loan for any Interest Period
therefor, the rate per annum equal to the sum of (a) the LIBOR Margin plus (b)
the rate per annum (rounded upwards, if necessary, to the nearest 1/16 of one
percent) determined by Administrative Agent to be equal to the quotient obtained
by dividing (i) the LIBOR Rate for such LIBOR Loan for such Interest Period by
(ii) 1 minus the Reserve Requirement for such LIBOR Loan for such Interest
Period, provided that no Adjusted LIBOR Rate charged by any Person shall ever
exceed the Highest Lawful Rate. The Adjusted LIBOR Rate for any LIBOR Loan shall
change whenever the LIBOR Margin or the Reserve Requirement changes.
"Affiliate" means, as to any Person, each other Person that directly or
indirectly (through one or more intermediaries or otherwise) controls, is
controlled by, or is under common control with, such Person. A Person shall be
deemed to be "controlled by" any other Person if such other Person possesses,
directly or indirectly, power
(a) to vote 20% or more of the securities (on a fully diluted basis)
having ordinary voting power for the election of directors or managing general
partners; or
(b) to direct or cause the direction of the management and policies of
such Person whether by contract or otherwise.
1
{PAGE}
"Administrative Agent" means Southwest Bank of Texas, N.A., as
Administrative Agent hereunder, and its successors in such capacity; provided,
however, that until such time as a Lender other than Southwest Bank of Texas,
N.A. becomes a party hereto, "Administrative Agent" shall mean Southwest Bank of
Texas, N.A., individually.
"Agreement" means this Term Loan Agreement.
"Applicable Lending Office" means, for each Lender and for each Type of
Loan, the "Lending Office" of such Lender (or of an Affiliate of such Lender)
designated for such Type of Loan on the Lenders Schedule or such other office of
such Lender (or an Affiliate of such Lender) as such Lender may from time to
time specify to Administrative Agent and Borrower by written notice in
accordance with the terms hereof as the office by which its Loans of such Type
are to be made and maintained.
"Base Rate" means, for any day, the rate per annum equal to the higher
of (a) the Federal Funds Rate for such day plus one-half of one percent (0.5%)
and (b) the Prime Rate for such day. Any change in the Base Rate due to a change
in the Prime Rate or the Federal Funds Rate shall be effective on the effective
date of such change in the Prime Rate or Federal Funds Rate. As used in this
definition, "Prime Rate" means the per annum rate of interest established from
time to time by Administrative Agent as its prime rate, which rate may not be
the lowest rate of interest charged by Administrative Agent to its customers.
"Base Rate Loan" means a Loan which does not bear interest at the LIBOR
Rate.
"Base Rate Margin" means, on each day:
(a) three-quarters of one percent (0.75%) per annum when the Debt/Cash
Flow Ratio is less than 1.50 to 1.00 on such day.
(b) one percent (1.00%) per annum when the Debt/Cash Flow Ratio is
equal to or greater than 1.50 to 1.00 but less than 2.00 to 1.00 on such day.
(c) one and one-quarter percent (1.25%) per annum when the Debt/Cash
Flow Ratio is equal to or greater than 2.00 to 1.00 on such day.
"Borrower" means FRC-WPP NRP Investment, L.P., a Delaware limited
partnership.
"Borrower's Partnership Agreement" means that certain Amended and
Restated Agreement of Limited Partnership of Borrower dated December 22, 2003,
as may be amended from time to time in accordance herewith.
"Borrowing" means a borrowing of new Loans of a single Type pursuant to
Section 2.2 or a Continuation or Conversion of existing Loans into a single Type
(and, in the case of LIBOR Loans, with the same Interest Period) pursuant to
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