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Title: |
Credit Agreement |
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Entities: |
Bank of Nova Scotia; Chase Manhattan Bank; ICS Integrated Communication Services LP ; Integrated Electrical Services, Inc.; J.P. Morgan Securities Inc.; Bank of New York |
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Date: |
2001 |
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Size: |
Preview shows 17KB of 254KB total |
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Price: |
$50 |
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ID: |
#2095950 |
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CREDIT AGREEMENT
Among
INTEGRATED ELECTRICAL SERVICES, INC.,
as Borrower,
THE FINANCIAL INSTITUTIONS
NAMED IN THIS CREDIT AGREEMENT,
as Banks,
CREDIT LYONNAIS and THE BANK OF NOVA SCOTIA,
as Syndication Agents,
TORONTO DOMINION (TEXAS), INC.,
as Documentation Agent,
and
THE CHASE MANHATTAN BANK,
as Administrative Agent
Dated as of May 22, 2001
Joint Bookrunners and Co-Lead Arrangers:
J.P. Morgan Securities Inc.
and Credit Lyonnais Securities
{PAGE} 2
TABLE OF CONTENTS
{TABLE}
{CAPTION}
PAGE
{S} {C} {C}
ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMS..................................1
1.1. Certain Defined Terms..............................................1
1.2. Computation of Time Periods.......................................18
1.3. Accounting Terms; Preparation of Financials.......................18
1.4. Types.............................................................19
1.5. Interpretation....................................................20
ARTICLE 2. CREDIT FACILITIES................................................20
2.1. Term Loan Facility................................................20
2.2. Revolving Loan Facility...........................................23
2.3. Letter of Credit Facility.........................................26
2.4. Swing Line Facility...............................................30
2.5. Fees..............................................................32
2.6. Interest..........................................................33
2.7. Breakage Costs....................................................35
2.8. Increased Costs...................................................36
2.9. Illegality........................................................36
2.10. Market Failure...................................................37
2.11. Payment Procedures and Computations..............................37
2.12. Taxes............................................................39
2.13. Change of Lending Office.........................................40
2.14. Conversion of the Term Loan......................................41
ARTICLE 3. CONDITIONS PRECEDENT.............................................41
3.1. Conditions Precedent to Initial Extension of Credit...............41
3.2. Conditions Precedent to Each Extension of Credit..................42
ARTICLE 4. REPRESENTATIONS AND WARRANTIES...................................42
4.1. Organization......................................................43
4.2. Authorization.....................................................43
4.3. Enforceability....................................................43
4.4. Absence of Conflicts and Approvals................................43
4.5. Investment Companies..............................................43
4.6. Public Utilities..................................................43
4.7. Financial Condition...............................................44
4.8. Condition of Assets...............................................44
4.9. Litigation........................................................44
4.10. Subsidiaries.....................................................44
4.11. Laws and Regulations.............................................45
4.12. Environmental Compliance.........................................45
4.13. ERISA............................................................45
4.14. Taxes............................................................45
4.15. True and Complete Disclosure.....................................46
4.16. Senior Indebtedness..............................................46
{/TABLE}
i
{PAGE} 3
{TABLE}
{CAPTION} PAGE
{S} {C} {C}
4.17. Certain Documents................................................46
4.18. Shell Subsidiaries...............................................46
ARTICLE 5. COVENANTS........................................................46
5.1. Organization......................................................46
5.2. Reporting.........................................................46
5.3. Inspection........................................................49
5.4. Use of Proceeds...................................................49
5.5. Financial Covenants...............................................49
5.6. Debt..............................................................50
5.7. Liens.............................................................50
5.8. Other Obligations.................................................50
5.9. Corporate Transactions............................................51
5.10. Distributions....................................................51
5.11. Transactions with Affiliates.....................................52
5.12. Insurance........................................................52
5.13. Investments......................................................53
5.14. Lines of Business................................................53
5.15. Compliance with Laws.............................................53
5.16. Environmental Compliance.........................................53
5.17. ERISA Compliance.................................................53
5.18. Payment of Certain Claims........................................53
5.19. Subsidiaries.....................................................54
5.20. Changes in Fiscal Periods........................................54
5.21. Negative Pledge Clauses..........................................54
5.22. Shell Subsidiaries...............................................54
ARTICLE 6. DEFAULT AND REMEDIES.............................................54
6.1. Events of Default.................................................54
6.2. Termination of Commitments........................................56
6.3. Acceleration of Credit Obligations................................56
6.4. Cash Collateralization of Letters of Credit.......................56
6.5. Default Interest..................................................57
6.6. Right of Setoff...................................................57
6.7. Actions Under Credit Documents....................................57
6.8. Remedies Cumulative...............................................57
6.9. Application of Payments...........................................58
ARTICLE 7. THE ADMINISTRATIVE AGENT AND THE ISSUING BANK....................58
7.1. Authorization and Action..........................................58
7.2. Reliance, Etc.....................................................59
7.3. Affiliates........................................................59
7.4. Bank Credit Decision..............................................59
7.5. Expenses..........................................................60
7.6. Indemnification...................................................60
7.7. Successor Administrative Agent and Issuing Bank...................60
{/TABLE}
ii
{PAGE} 4
{TABLE}
{CAPTION}
PAGE
{S} {C} {C}
ARTICLE 8. MISCELLANEOUS....................................................61
8.1. Expenses..........................................................61
8.2. Indemnification...................................................61
8.3. Modifications, Waivers, and Consents..............................62
8.4. Survival of Agreements............................................62
8.5. Assignment and Participation......................................62
8.6. Notice........................................................... 65
8.7. CHOICE OF LAW.....................................................65
8.8. Submission To Jurisdiction; Waivers...............................65
8.9. WAIVER OF JURY TRIAL..............................................66
8.10. Counterparts.....................................................66
8.11. No Further Agreements............................................66
{/TABLE}
EXHIBITS
Exhibit A - Form of Compliance Certificate
Exhibit B-1 - Form of Revolving Loan Borrowing Request
Exhibit B-2 - Form of Term Loan Borrowing Request
Exhibit C - Form of Continuation/Conversion Request
Exhibit D-1 - Form of Revolving Loan Note
Exhibit D-2 - Form of Term Loan Note
Exhibit D-3 - Form of Swing Line Note
Exhibit E - Form of Assignment and Acceptance
Exhibit F - Closing Documents List
Exhibit G - Form of Joinder Agreement
Exhibit H - Form of Acquisition Certificate
Exhibit I - Joinder Deliveries
Exhibit J - Form of Borrowing Base Certificate
SCHEDULES
Schedule I-A - Commitments
Schedule I-B - Administrative Information (Borrower; Administrative Agent;
Banks)
Schedule II - Disclosures (Existing Subsidiaries)
Schedule III - Restricted Payment Terms (Qualified Preferred Stock)
Schedule IV - Good Standing Exceptions
iii
{PAGE} 5
CREDIT AGREEMENT
This Credit Agreement dated as of May 22, 2001, is among Integrated
Electrical Services, Inc., a Delaware corporation, as Borrower, the financial
institutions named herein, as Banks, Credit Lyonnais and The Bank of Nova
Scotia, as syndication agents, Toronto Dominion (Texas), Inc., as documentation
agent, and The Chase Manhattan Bank, as administrative agent.
The parties hereto agree as follows:
ARTICLE 1. DEFINITIONS AND ACCOUNTING TERMS
1.1. Certain Defined Terms. As used in this Agreement, the following terms shall
have the following meanings (unless otherwise indicated, such meanings to be
equally applicable to both the singular and plural forms of the terms defined):
"Acquisition" means the direct or indirect purchase or acquisition,
whether in one or more related transactions, of any Person or group of Persons
or any related group of assets, liabilities, or securities of any Person or
group of Persons.
"Acquisition Certificate" means an acquisition certificate executed by
a Responsible Officer of the Borrower in substantially the form of Exhibit H.
"Additional Senior Subordinated Notes" has the meaning set forth in the
definition of "Senior Subordinated Notes".
"Administrative Agent" means The Chase Manhattan Bank, together with
its affiliates, as the arranger of the Commitments and as the administrative
agent for the Banks under this Agreement and the other Credit Documents,
together with any of its successors.
"Affiliate" means, as to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, is controlled by, or
is under common control with, such Person or any Subsidiary of such Person. The
term "control" (including the terms "controlled by" or "under common control
with") means the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through
ownership, by contract, or otherwise.
"Agreement" means this Credit Agreement.
"Annual Aggregate Acquisition Limit" means (i) $40,000,000 for the
fiscal year ending September 30, 2001, (ii) $60,000,000 for the fiscal year
ending September 30, 2002, (iii) $60,000,000 for the fiscal year ending
September 30, 2003, and (iv) $60,000,000 for the fiscal year ending September
30, 2004.
{PAGE} 6
"Applicable Lending Office" means, with respect to each Bank and for
any particular type of transaction, the office of such Bank set forth in
Schedule I-B to this Agreement (or in the applicable Assignment and Acceptance
by which such Bank joined this Agreement) as its applicable lending office for
such type of transaction or such other office of such Bank as such Bank may from
time to time specify in writing to the Borrower and the Administrative Agent for
such particular type of transaction.
"Applicable Margin" means, with respect to interest rates and letter of
credit fees and as of any date of its determination, an amount equal to the
percentage amount set forth in the table below opposite the applicable ratio of
(a) the consolidated Total Debt of the Borrower as of the end of the fiscal
quarter then most recently ended to (b) the consolidated EBITDA of the Borrower
for the four fiscal quarters then most recently ended:
{TABLE}
{CAPTION}
Applicable Margin
Total Debt LIBOR Tranches and Applicable Margin
to EBITDA Letter of Credit Fee Prime Rate Tranche
--------- -------------------- ------------------
{S} {C} {C}
Less than or equal to 1.50 1.75% 0.25%
Greater than 1.50 but less
than or equal to 2.00 2.00% 0.50%
Greater than 2.00 but less
than or equal to 2.50 2.25% 0.75%
Greater than 2.50 but less
than or equal to 3.00 2.50% 1.00%
Greater than 3.00 2.75% 1.25%
{/TABLE}
The foregoing ratio and resulting Applicable Margin shall be based upon Schedule
C of the most recent Compliance Certificate delivered to the Administrative
Agent pursuant to Section 5.2(a) or Section 5.2(b) (provided that for the period
from the date of this Agreement until the date when the Applicable Margin is
reset based upon the Compliance Certificate for the period ending June 30, 2001,
the ratio shall be deemed to be 2.01:1.00 and the Applicable Margin shall be set
accordingly).
Any adjustments to the Applicable Margin shall become effective on the 45th day
following the last day of each fiscal quarter or on the 90th day following the
last day of each fiscal year as applicable; provided, however, that if any such
Compliance Certificate is not delivered when required hereunder, the Applicable
Margin shall be deemed to be the maximum percentage amount in each table from
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