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Credit and Guarantee Agreement

 

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Title:

Credit and Guarantee Agreement

Entities:

Bank of Nova Scotia; Calpine Channel Energy Center LP, LLC; Morgan Stanley & Co. Inc.; Morgan Stanley Senior Funding Inc.; POSCO; Solutia Inc.; Union Bank of California, NA; International Swaps & Derivatives Association, Inc.; Bracewell & Patterson L.L.P.; Davis Wright Tremaine; Kilpatrick Stockton; Thelen Reid & Priest LLP; Winston & Strawn

Date:

2004

Size:

Preview shows 6KB of 528KB total

Price:

$95

ID:

#2528264

 

 

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                                                               EXECUTION VERSION


THE LOANS TO BE MADE HEREUNDER SHALL BE ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR
UNITED STATES FEDERAL INCOME TAX PURPOSES AND ARE SUBJECT TO TREASURY
REGULATIONS REGARDING THE REPORTING OF ORIGINAL ISSUE DISCOUNT. FURTHER
INFORMATION MAY BE OBTAINED BY SUBMITTING A REQUEST TO THE CHIEF FINANCIAL
OFFICER OF THE COMPANY AT 50 WEST SAN FERNANDO STREET, 5TH FLOOR, SAN JOSE,
CALIFORNIA 95113.
================================================================================

$100,000,000

SECOND PRIORITY SECURED INSTITUTIONAL TERM LOANS DUE 2010

CREDIT AND GUARANTEE AGREEMENT

Dated as of March 23, 2004

among

CALPINE GENERATING COMPANY, LLC
The Borrower

THE GUARANTORS PARTY HERETO FROM TIME TO TIME
The Guarantors

THE LENDERS PARTY HERETO FROM TIME TO TIME
The Lenders

MORGAN STANLEY SENIOR FUNDING, INC.
Administrative Agent

and

MORGAN STANLEY SENIOR FUNDING, INC.
Sole Lead Arranger and Sole Bookrunner

================================================================================

{PAGE}

TABLE OF CONTENTS

{TABLE}
{CAPTION}
PAGE
{S} {C}
ARTICLE I.
DEFINITIONS AND RULES OF CONSTRUCTION

SECTION 1.01. Definitions.......................................................... 3
SECTION 1.02. Rules of Construction................................................ 47

ARTICLE II.
THE SECOND PRIORITY TERM LOANS

SECTION 2.01. Second Priority Term Loans........................................... 48
SECTION 2.02. Amount of Second Priority Term Loans; Availability of Funds.......... 49
SECTION 2.03. Use of Proceeds...................................................... 49
SECTION 2.04. Evidence of Debt; Register; Lenders' Books and Records;
Notes............................................................. 49
SECTION 2.05. Interest............................................................. 50
SECTION 2.06. Continuation Notice.................................................. 51
SECTION 2.07. Default Interest..................................................... 52
SECTION 2.08. Fees................................................................. 53
SECTION 2.09. Payments............................................................. 53
SECTION 2.10. Voluntary Prepayments................................................ 53
SECTION 2.1l. Mandatory Repayment Offers........................................... 54
SECTION 2.12. General Provisions Regarding Payments................................ 56
SECTION 2.13. Ratable Sharing...................................................... 57
SECTION 2.14. Making or Maintaining Second Priority Term Loans..................... 57
SECTION 2.15. Increased Costs; Capital Adequacy.................................... 59
SECTION 2.16. Taxes; Withholding, etc.............................................. 60
SECTION 2.17. Removal or Replacement of a Lender................................... 63

ARTICLE III.
CONDITIONS PRECEDENT

SECTION 3.01. Resolutions.......................................................... 64
SECTION 3.02. Incumbency........................................................... 64
SECTION 3.03. Formation Documents.................................................. 64
SECTION 3.04. Good Standing Certificates........................................... 64
SECTION 3.05. Financial Officer's Certificate...................................... 65
SECTION 3.06. Security............................................................. 65
SECTION 3.07. Consummation of Notes Offering, First Priority Term Loan
Agreement, Revolving Loan Agreement and Second Priority
Term Loan Documents............................................... 67
SECTION 3.08. Ratings.............................................................. 67
SECTION 3.09. No Material Adverse Change........................................... 67
SECTION 3.10. Third Party Approvals................................................ 68
{/TABLE}

i
{PAGE}

{TABLE}
{S} {C}
SECTION 3.1l. Opinions............................................................. 68
SECTION 3.12. Officer's Certificates............................................... 68
SECTION 3.13. Title Policies....................................................... 68
SECTION 3.14. Evidence of Insurance................................................ 69
SECTION 3.15. Other Financing Documents............................................ 69

 

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