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Credit Agreement

 

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Title:

Credit Agreement

Entities:

Constellation Energy Group Inc.; Constellation Energy Group, Inc.; Constellation Energy Partners LLC; McGraw-Hill Companies Inc.; Royal Bank of Scotland plc; Torch Energy Royalty Trust; Society of Petroleum Engineers; ShawPittman LLP

Date:

2006

Size:

Preview shows 36KB of 315KB total

Price:

$75

ID:

#2539699

 

 

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Start of Preview


 


$200,000,000

CREDIT AGREEMENT

DATED AS OF OCTOBER [    ], 2006

AMONG

CONSTELLATION ENERGY PARTNERS LLC

AS BORROWER,

THE ROYAL BANK OF SCOTLAND plc

AS ADMINISTRATIVE AGENT,

RBS SECURITIES CORPORATION

AS LEAD ARRANGER AND SOLE BOOK RUNNER,

AND

THE LENDERS PARTY HERETO

 



TABLE OF CONTENTS

 

          PAGE
   ARTICLE I   
   DEFINITIONS AND ACCOUNTING MATTERS   
Section 1.01    Terms Defined Above    1
Section 1.02    Certain Defined Terms    1
Section 1.03    Terms Generally    20
Section 1.04    Accounting Terms and Determinations; GAAP    20
   ARTICLE II   
   THE CREDITS   
Section 2.01    Commitments    21
Section 2.02    Loans and Borrowings    21
Section 2.03    Requests for Borrowings    22
Section 2.04    Interest Elections    23
Section 2.05    Funding of Borrowing    24
Section 2.06    Termination and Reduction of Aggregate Maximum Credit Amounts    24
Section 2.07    Borrowing Base    25
Section 2.08    Letters of Credit    29
   ARTICLE III   
   PAYMENTS OF PRINCIPAL AND INTEREST; PREPAYMENTS; FEES   
Section 3.01    Repayment of Loans    34
Section 3.02    Interest    34
Section 3.03    Prepayments    35
Section 3.04    Fees    36
   ARTICLE IV   
   PAYMENTS; PRO RATA TREATMENT; SHARING OF SET-OFFS.   
Section 4.01    Payments Generally; Pro Rata Treatment; Sharing of Set-offs    37
Section 4.02    Presumption of Payment by the Borrower    38
Section 4.03    Certain Deductions by the Administrative Agent    38
   ARTICLE V   
   INCREASED COSTS; BREAK FUNDING PAYMENTS; TAXES; ILLEGALITY   
Section 5.01    Increased Costs    39
Section 5.02    Break Funding Payments    40
Section 5.03    Taxes    40
Section 5.04    Designation of Different Lending Office    41
Section 5.05    Illegality    41
Section 5.06    Replacement of a Lender    42

 

i


   ARTICLE VI   
   CONDITIONS PRECEDENT   
Section 6.01    Closing Date    43
Section 6.02    Each Credit Event    45
   ARTICLE VII   
   REPRESENTATIONS AND WARRANTIES   
Section 7.01    Organization; Powers    46
Section 7.02    Authority; Enforceability    46
Section 7.03    Approvals; No Conflicts    46
Section 7.04    Financial Statements    47
Section 7.05    Litigation    47
Section 7.06    Environmental Matters    47
Section 7.07    Compliance with the Laws and Agreements    48
Section 7.08    Investment Company Act    48
Section 7.09    Taxes    48
Section 7.10    ERISA    49
Section 7.11    Disclosure; No Material Misstatements    50
Section 7.12    Insurance    50
Section 7.13    Restriction on Liens    50
Section 7.14    Subsidiaries    50
Section 7.15    Location of Business and Offices    51
Section 7.16    Properties; Titles, Etc.    51
Section 7.17    Title    52
Section 7.18    Security Instruments.    53
Section 7.19    Maintenance of Properties    53
Section 7.20    Gas Imbalances, Prepayments    54
Section 7.21    Marketing of Production    54
Section 7.22    Swap Agreements    54
Section 7.23    Use of Loans and Letters of Credit    54
Section 7.24    Solvency    55
   ARTICLE VIII   
   AFFIRMATIVE COVENANTS   
Section 8.01    Financial Statements; Ratings Change; Other Information    55
Section 8.02    Notices of Material Events    58
Section 8.03    Existence; Conduct of Business    59
Section 8.04    Payment of Obligations    59
Section 8.05    Performance of Obligations under Loan Documents    59
Section 8.06    Operation and Maintenance of Properties    59
Section 8.07    Insurance    60
Section 8.08    Books and Records; Inspection Rights    60
Section 8.09    Compliance with Laws    60

 

ii



 
Section 8.10    Environmental Matters    60
Section 8.11    Further Assurances    61
Section 8.12    Title Information    62
Section 8.13    Additional Collateral; Additional Guarantors    62
Section 8.14    ERISA Compliance    63
Section 8.15    Marketing Activities    64
Section 8.16    Title    64
Section 8.17    Board Composition    64
   ARTICLE IX   

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