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Document Preview Credit Agreement [Amended and Restated] |
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Title: |
Credit Agreement [Amended and Restated] |
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Entities: |
Banc of America Securities LLC; McGraw-Hill Companies Inc.; National City Bank; Packaging Dynamics Corp.; International Swaps & Derivatives Association, Inc.; Bank of America, NA; Skadden, Arps, Slate, Meagher & Flom LLP; Packaging Dynamics Operating Company; LaSalle Bank National Association |
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Date: |
2003 |
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Size: |
Preview shows 23KB of 475KB total |
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Price: |
$99 |
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ID: |
#199241 |
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AMENDED AND RESTATED
CREDIT AGREEMENT
Dated as of September 29, 2003
among
PACKAGING DYNAMICS OPERATING COMPANY,
as Borrower,
PACKAGING DYNAMICS CORPORATION,
and
The Domestic Subsidiaries of the Borrower
from time to time party hereto,
as Guarantors,
BANK OF AMERICA, N.A.,
as Administrative Agent and L/C Issuer,
NATIONAL CITY BANK,
as Syndication Agent
LASALLE BANK NATIONAL ASSOCIATION,
as Documentation Agent,
and
The other Lenders party hereto
BANC OF AMERICA SECURITIES LLC,
as Sole Lead Arranger and Sole Book Runner
{PAGE}
TABLE OF CONTENTS
{TABLE}
{S} {C}
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS..................................................................... 1
1.1 Definitions.................................................................................. 1
1.2 Other Interpretive Provisions................................................................ 31
1.3 Accounting Terms............................................................................. 32
1.4 Rounding..................................................................................... 33
1.5 References to Agreements and Laws............................................................ 33
1.6 Times of Day................................................................................. 33
1.7 Letter of Credit Amounts..................................................................... 33
SECTION 2 THE COMMITMENTS AND CREDIT EXTENSIONS................................................................ 33
2.1 Revolving Loans and Term Loans............................................................... 33
2.2 Borrowings, Conversions and Continuations of Loans........................................... 35
2.3 Letters of Credit............................................................................ 37
2.4 Prepayments.................................................................................. 47
2.5 Termination or Reduction of Aggregate Revolving Commitments.................................. 49
2.6 Repayment of Loans........................................................................... 50
2.7 Interest..................................................................................... 52
2.8 Fees......................................................................................... 52
2.9 Computation of Interest and Fees............................................................. 53
2.10 Evidence of Debt............................................................................. 53
2.11 Payments Generally........................................................................... 54
2.12 Sharing of Payments.......................................................................... 56
SECTION 3 TAXES, YIELD PROTECTION AND ILLEGALITY............................................................... 56
3.1 Taxes........................................................................................ 56
3.2 Illegality................................................................................... 58
3.3 Inability to Determine Rates................................................................. 58
3.4 Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans....... 59
3.5 Funding Losses............................................................................... 60
3.6 Matters Applicable to all Requests for Compensation.......................................... 61
3.7 Survival..................................................................................... 61
SECTION 4 GUARANTY............................................................................................. 61
4.1 Guaranty of Payment.......................................................................... 61
4.2 Credit Party Obligations Unconditional....................................................... 62
4.3 Reinstatement................................................................................ 63
4.4 Certain Additional Waivers................................................................... 63
4.5 Remedies..................................................................................... 64
4.6 Rights of Contribution....................................................................... 64
4.7 Guarantee of Payment; Continuing Guarantee................................................... 64
SECTION 5 CONDITIONS PRECEDENT................................................................................. 64
5.1 Closing Conditions........................................................................... 64
5.2 Conditions to All Extensions of Credit....................................................... 69
{/TABLE}
i
{PAGE}
{TABLE}
{S} {C}
SECTION 6 REPRESENTATIONS AND WARRANTIES....................................................................... 69
6.1 Financial Condition.......................................................................... 69
6.2 No Material Change........................................................................... 70
6.3 Organization and Good Standing............................................................... 70
6.4 Due Authorization............................................................................ 71
6.5 No Conflicts................................................................................. 71
6.6 Consents..................................................................................... 71
6.7 Enforceable Credit Party Obligations......................................................... 71
6.8 No Default................................................................................... 72
6.9 Ownership.................................................................................... 72
6.10 Indebtedness................................................................................. 72
6.11 Litigation................................................................................... 72
6.12 Taxes........................................................................................ 72
6.13 Compliance with Law.......................................................................... 72
6.14 ERISA........................................................................................ 73
6.15 Subsidiaries as of the Closing Date.......................................................... 74
6.16 Use of Proceeds.............................................................................. 74
6.17 Government Regulation........................................................................ 74
6.18 Environmental Matters........................................................................ 75
6.19 Intellectual Property........................................................................ 76
6.20 Solvency..................................................................................... 76
6.21 Investments.................................................................................. 76
6.22 Location of Collateral....................................................................... 77
6.23 Disclosure................................................................................... 77
6.24 Licenses, etc................................................................................ 77
6.25 Collateral Documents......................................................................... 77
6.26 Burdensome Restrictions...................................................................... 78
6.27 Labor Contracts and Disputes................................................................. 78
6.28 Broker's Fees................................................................................ 78
6.29 Classification as Senior Indebtedness........................................................ 78
6.30 Tax Shelter Regulations...................................................................... 78
SECTION 7 AFFIRMATIVE COVENANTS................................................................................ 79
7.1 Information Covenants........................................................................ 79
7.2 Financial Covenants.......................................................................... 82
7.3 Preservation of Existence and Franchises..................................................... 83
7.4 Books and Records............................................................................ 83
7.5 Compliance with Law.......................................................................... 84
7.6 Payment of Taxes and Claims.................................................................. 84
7.7 Insurance.................................................................................... 84
7.8 Maintenance of Property...................................................................... 86
7.9 Collateral................................................................................... 86
7.10 Use of Proceeds.............................................................................. 86
7.11 Audits/Inspections........................................................................... 87
7.12 Additional Subsidiaries...................................................................... 87
7.13 Post-Closing Covenant........................................................................ 88
{/TABLE}
ii
{PAGE}
{TABLE}
{S} {C}
SECTION 8 NEGATIVE COVENANTS................................................................................... 89
8.1 Indebtedness................................................................................. 89
8.2 Liens........................................................................................ 90
8.3 Nature of Business........................................................................... 90
8.4 Consolidation; Merger; Dissolution; Liquidation; Winding Up.................................. 90
8.5 Disposition of Assets........................................................................ 91
8.6 Sale Leasebacks.............................................................................. 92
8.7 Investments.................................................................................. 92
8.8 Restricted Payments.......................................................................... 92
8.9 Restrictions on Modifications to and Payments of Certain Indebtedness........................ 92
8.10 Transactions with Affiliates................................................................. 93
8.11 Fiscal Year; Organizational Documents........................................................ 93
8.12 No Limitations............................................................................... 93
8.13 Ownership of Subsidiaries; Limitations on Operations of Borrower............................. 94
8.14 No Other Negative Pledges.................................................................... 94
8.15 No Foreign Subsidiaries...................................................................... 95
SECTION 9 EVENTS OF DEFAULT.................................................................................... 95
9.1 Events of Default............................................................................ 95
9.2 Acceleration; Remedies....................................................................... 98
9.3 Allocation of Payments After Event of Default................................................ 99
SECTION 10 ADMINISTRATIVE AGENT................................................................................ 100
10.1 Appointment and Authorization of Administrative Agent........................................ 100
10.2 Delegation of Duties......................................................................... 101
10.3 Liability of Administrative Agent............................................................ 101
10.4 Reliance by Administrative Agent............................................................. 101
10.5 Notice of Default............................................................................ 102
10.6 Credit Decision; Disclosure of Information by Administrative Agent........................... 102
10.7 Indemnification of Administrative Agent...................................................... 103
10.8 Administrative Agent in its Individual Capacity.............................................. 103
10.9 Successor Administrative Agent............................................................... 104
10.10 Administrative Agent May File Proofs of Claim................................................ 104
10.11 Collateral and Guaranty Matters.............................................................. 105
10.12 Other Agents; Arrangers and Managers......................................................... 106
SECTION 11 MISCELLANEOUS....................................................................................... 106
11.1 Amendments, Etc.............................................................................. 106
11.2 Notices and Other Communications; Facsimile Copies........................................... 109
11.3 No Waiver; Cumulative Remedies............................................................... 110
11.4 Attorney Costs, Expenses and Taxes........................................................... 110
11.5 Indemnification by the Borrower.............................................................. 111
11.6 Payments Set Aside........................................................................... 112
11.7 Successors and Assigns....................................................................... 112
11.8 Confidentiality.............................................................................. 115
11.9 Set-off...................................................................................... 116
11.10 Interest Rate Limitation..................................................................... 116
11.11 Counterparts................................................................................. 117
{/TABLE}
iii
{PAGE}
{TABLE}
{S} {C}
11.12 Integration; Effectiveness; Continuing Agreement............................................. 117
11.13 Survival of Representations and Warranties................................................... 118
11.14 Severability................................................................................. 118
11.15 Tax Forms.................................................................................... 118
11.16 Replacement of Lenders....................................................................... 120
11.17 Governing Law................................................................................ 121
11.18 Waiver of Right to Trial by Jury............................................................. 121
{/TABLE}
iv
{PAGE}
SCHEDULES
Schedule 1.1(a) Investments
Schedule 1.1(b) Permitted Liens
Schedule 1.1(c) Existing Letters of Credit
Schedule 2.1 Pro Rata Shares
Schedule 5.1(e) Mortgage Properties
Schedule 5.1(h) Corporate Structure
Schedule 6.10 Indebtedness
Schedule 6.15 Subsidiaries
Schedule 6.19 Intellectual Property
Schedule 6.22(a) Real Property Locations
Schedule 6.22(b) Personal Property Locations
Schedule 6.22(c) Chief Executive Offices
Schedule 6.27 Labor Contract and Disputes
Schedule 7.7 Insurance
Schedule 7.10 Indebtedness Repaid at Closing
Schedule 11.2 Notices
EXHIBITS
Exhibit A Form of Loan Notice
Exhibit B Form of Pledge Agreement
Exhibit C Form of Security Agreement
Exhibit D-1 Form of Revolving Note
Exhibit D-2 Form of Tranche A Term Note
Exhibit D-3 Form of Tranche B Term Note
Exhibit E Form of Officer's Certificate
Exhibit F Form of Joinder Agreement
Exhibit G Form of Assignment and Assumption
v
{PAGE}
AMENDED AND RESTATED
CREDIT AGREEMENT
THIS AMENDED AND RESTATED CREDIT AGREEMENT (this "Credit Agreement"),
is entered into as of September 29, 2003 among PACKAGING DYNAMICS OPERATING
COMPANY, a Delaware corporation (the "Borrower"), PACKAGING DYNAMICS
CORPORATION, a Delaware corporation ("Parent"), and each of the Domestic
Subsidiaries of the Borrower, as Guarantors, the Lenders (as defined herein) and
BANK OF AMERICA, N.A., as Administrative Agent for the Lenders.
RECITALS
WHEREAS, Packaging Dynamics, L.L.C. and International Converter, Inc.,
as borrowers, Packaging Holdings, L.L.C. and the Domestic Subsidiaries of the
Packaging Dynamics, L.L.C., as guarantors, the lenders party thereto and Bank of
America, N.A., as agent, are parties to that certain Credit Agreement dated as
of November 20, 1998 (as amended and modified, the "Existing Credit Agreement");
WHEREAS, the Lenders have agreed to refinance the Existing Credit
Agreement on the terms and conditions hereinafter set forth; and
WHEREAS, in connection with the refinancing of the Existing Credit
Agreement in accordance with the terms hereof, Packaging Dynamics, L.L.C. and
Packaging Holdings, L.L.C. will be merged, and the surviving limited liability
company will be converted to a corporation and renamed Packaging Dynamics
Operating Company.
NOW, THEREFORE, IN CONSIDERATION of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
SECTION 1
DEFINITIONS AND ACCOUNTING TERMS
1.1 DEFINITIONS.
As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
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