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Title: |
Loan Agreement |
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Entities: |
Cedar Shopping Centers Inc.; Cedar Shopping Centers Partnership, LP; Commerzbank AG; Commerzbank AG, New York Branch; Firehouse Realty Corp.; Fleet National Bank; Fleet Securities, Inc.; Raymond James Bank; SPSP Corp.; Bank of New York; Stroock & Stroock & Lavan; PB Capital Corporation |
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Date: |
2004 |
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Size: |
Preview shows 37KB of 489KB total |
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Price: |
$99 |
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ID: |
#254680 |
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LOAN AGREEMENT
Dated: As of January 30, 2004
Among
CEDAR SHOPPING CENTERS PARTNERSHIP, L.P. a Delaware limited partnership
("Borrower")
and
FLEET NATIONAL BANK, as Administrative Agent ("Administrative Agent"),
and
FLEET NATIONAL BANK, COMMERZBANK AG NEW YORK BRANCH, PB CAPITAL
CORPORATION, MANUFACTURERS AND TRADERS TRUST COMPANY, SOVEREIGN
BANK, RAYMOND JAMES BANK, FSB, CITIZENS BANK, and any
other Lenders, if any, which may become parties to
this Agreement ( "Lenders")
________________
FLEET SECURITIES, INC. ("Arranger")
________________
$100,000,000.00 LOAN
{PAGE}
TABLE OF CONTENTS
Page
1. BACKGROUND...........................................................1
1.1 Defined Terms...............................................1
1.2 Borrower....................................................1
1.3 Use of Loan Proceeds........................................1
1.4 Guaranties..................................................1
1.5 Loan........................................................1
2. LOAN PROVISIONS......................................................2
2.1 General Loan Provisions.....................................2
2.1.1 Limit............................................2
2.1.2 Procedures and Limits............................2
2.1.3 Funding Procedures...............................3
2.2 Term of Loan................................................4
(i) No Default................................4
(ii) Notice From Borrower......................4
(iii) Covenant Compliance.......................5
(iv) Conditions Satisfied......................5
(v) Extension Fee.............................5
(vii) Additional Documents......................5
(viii) Before End of Term........................5
2.3 Interest Rate and Payment Terms.............................5
2.3.1 Borrower's Options...............................5
2.3.2 Selection To Be Made.............................5
2.3.3 Notice...........................................6
2.3.4 If No Notice.....................................6
2.3.5 Telephonic Notice................................6
2.3.6 Limits On Options, One Selection Per Month.......6
2.3.7 Payment and Calculation of Interest..............6
2.3.8 Mandatory Principal Payments.....................6
2.3.9 Prepayment.......................................7
2.3.10 Maturity.........................................7
2.3.11 Method of Payment; Date of Credit................7
2.3.12 Billings.........................................7
2.3.13 Default Rate.....................................8
2.3.14 Late Charges.....................................8
2.3.15 Breakage Fees....................................8
2.4 Loan Fees; Administrative Agent's Fees......................8
2.4.1 Loan Fees........................................8
2.4.2 Line Fee.........................................8
2.4.3 Issuance Fees....................................9
2.4.4 Letter of Credit Fees............................9
2.5 Acceleration................................................9
2.6 Additional Provisions Related to Interest Rate Selection....9
2.6.1 Increased Costs..................................9
2.6.2 Illegality.......................................9
2.6.3 Additional LIBO Rate Conditions.................10
2.6.4 Variable Rate Advances..........................11
2.7 Letters of Credit..........................................11
(2)
{PAGE}
3. SECURITY FOR THE LOAN; LOAN AND SECURITY DOCUMENTS..................14
3.1 Security...................................................14
3.1.1 Mortgage/ Deed of Trust and Security Agreement..15
3.1.2 Collateral Assignment of Leases and Rents.......16
3.1.3 Collateral Assignment of Contracts..............16
3.1.4 Guaranties......................................16
3.1.5 Environmental Compliance and Indemnification
Agreement.....................................16
3.1.6 Ownership Interest and Inter-Company Loan
Pledge........................................16
3.2 Loan Documents and Security Documents......................16
3.3 Removal of Individual Property as a Borrowing Base Property
- Borrower...............................................17
3.4 Removal of Individual Property as a Borrowing Base Property
- Administrative Agent...................................18
3.5 Additional Borrowing Base Property.........................19
4. CONTINUING AUTHORITY OF AUTHORIZED REPRESENTATIVES..................20
5. CONDITIONS PRECEDENT................................................20
5.1 Closing Loan and Funding Initial Loan Advance..............20
5.1.2 Financial Information; No Material Change.......20
5.1.3 Warranties and Representations Accurate.........21
5.1.4 Validity and Sufficiency of Security Documents..21
5.1.5 Litigation......................................22
5.1.6 Formation Documents and Entity Agreements.......22
5.1.7 Compliance With Law.............................23
5.1.8 Compliance With Financial Covenants.............23
5.1.9 Borrowing Base Property Due Diligence...........23
5.1.10 Condition of Property...........................23
5.1.11 Insurance.......................................23
5.1.12 Third Party Consents and Agreements.............23
5.1.13 Cash Management.................................23
5.1.14 Legal and other Opinions........................23
5.1.15 No Default......................................23
6. WARRANTIES AND REPRESENTATIONS......................................24
6.1 Formation..................................................24
6.2 Proceedings; Enforceability................................24
6.3 Conflicts..................................................24
6.4 Ownership and Taxpayer Identification Numbers..............25
6.5 Litigation.................................................25
6.6 Information................................................25
6.7 Taxes......................................................25
6.8 Financial Information......................................25
6.9 Control Provisions.........................................25
6.10 Formation Documents........................................26
6.11 Bankruptcy Filings.........................................26
6.12 Investment Company.........................................26
6.13 Holding Company............................................26
(3)
{PAGE}
6.14 Borrowing Base Properties..................................26
6.15 Use of Proceeds............................................28
6.16 Insurance..................................................28
6.17 Deferred Compensation and ERISA............................28
6.18 Conditions Satisfied.......................................28
6.19 No Default.................................................28
6.20 Other Loan Parties' Warranties and Representations.........28
6.21 Qualification as a REIT....................................28
6.22 Regarding Representations and Warranties...................28
7. AFFIRMATIVE COVENANTS...............................................29
7.1 Notices....................................................29
7.2 Financial Statements; Reports; Officer's Certificates......29
7.2.1 Annual Statements...............................29
7.2.2 Periodic Statements.............................29
7.2.3 Borrowing Base Property Reports.................30
7.2.4 SEC Reports.....................................30
7.2.5 Compliance Certificates.........................30
7.2.6 Data Requested..................................30
7.2.7 Tax Returns.....................................30
7.2.8 Lease Notices...................................30
7.2.9 Ground Lessor Interest Notices..................31
7.2.10 Entity Notices..................................31
7.2.12 Property Finance................................31
7.2.13 Notice of Litigation............................31
7.3 Existence..................................................31
7.4 Payment of Taxes...........................................31
7.5 Insurance; Casualty, Taking................................32
7.6 Inspection.................................................32
7.7 Loan Documents.............................................32
7.8 Further Assurances.........................................33
7.9 Books and Records..........................................33
7.10 Business and Operations....................................33
7.11 Title......................................................33
7.12 Estoppel...................................................34
7.13 ERISA......................................................34
7.14 Depository Account.........................................35
7.15 Costs and Expenses.........................................35
7.16 Appraisals.................................................35
7.16.1 Appraisal.......................................35
7.16.2 Costs of Appraisal..............................35
7.17 Indemnification............................................35
7.18 Leasing Matters............................................36
7.18.1 Administrative Agent's Approval Required........36
7.18.2 Borrower's Requests.............................36
7.18.3 Response........................................37
7.18.4 Advance Information. ..........................37
7.18.5 Preliminary Submission. .......................37
7.19 Interest Expense Coverage..................................37
7.20 Leverage Ratio.............................................37
7.21 Fixed Charge Ratio.........................................38
7.22 Net Worth..................................................38
(4)
{PAGE}
7.23 Borrowing Base Property Covenants..........................38
7.25 Replacement Documentation..................................38
7.26 Other Covenants............................................38
7.27 Maintenance of REIT Status.................................39
7.28 Lenders' Consultants.......................................39
7.28.1 Right to Employ. ...............................39
7.28.2 Functions.......................................39
7.28.3 Payment.........................................39
7.28.4 Access..........................................39
7.28.5 No Liability....................................39
8. NEGATIVE COVENANTS..................................................39
8.1 No Changes to Borrower and other Loan Parties..............39
8.2 Restrictions on Liens......................................40
8.3 Consolidations, Mergers, Sales of Assets, Issuance and Sale
of Equity.................................................40
8.4 Restrictions on Debt.......................................42
8.5 Other Business.............................................42
8.6 Change of Control..........................................43
8.7 Forgiveness of Debt........................................43
8.8 Affiliate Transactions.....................................43
8.9 ERISA. ................................................43
8.10 Bankruptcy Filings.........................................43
8.11 Investment Company.........................................43
8.12 Holding Company............................................43
8.13 Use of Proceeds............................................43
8.14 Distributions..............................................43
8.15 Restrictions on Investments................................43
8.16 Negative Pledges, etc......................................44
9. SPECIAL PROVISIONS..................................................44
9.1 Legal Requirements.........................................44
9.2 Limited Recourse Provisions................................44
9.2.1 Borrower Fully Liable...........................44
9.2.2 Certain Non-Recourse............................44
9.2.3 Additional Matters..............................45
9.3 Payment of Obligations.....................................45
10. EVENTS OF DEFAULT...................................................45
10.1 Default and Events of Default..............................45
10.1.1 Failure to Pay the Loan.........................45
10.1.2 Failure to Make Other Payments..................45
10.1.3 Note, Security Documents, and Other Loan
Documents.....................................46
10.1.4 Default under Other Agreements..................46
10.1.5 Representations and Warranties..................46
10.1.6 Affirmative Covenants...........................46
10.1.7 Negative Covenants..............................46
10.1.8 Financial Status and Insolvency.................46
10.1.9 Loan Documents..................................47
10.1.10 Judgments.......................................47
10.1.11 ERISA...........................................47
(5)
{PAGE}
10.1.12 Change of Control...............................47
10.1.15 Generally.......................................48
10.2 Grace Periods and Notice...................................48
10.2.1 No Notice or Grace Period.......................48
10.2.2 Nonpayment of Interest..........................48
10.2.3 Other Monetary Defaults.........................48
10.2.4 Nonmonetary Defaults Capable of Cure............48
10.2.5 Borrowing Base Property Defaults................49
11. REMEDIES............................................................49
11.1 Remedies...................................................49
11.1.1 Accelerate Debt.................................49
11.1.2 Collateralize Letters of Credit.................49
11.1.3 Pursue Remedies.................................49
11.2 Written Waivers............................................49
11.3 Power of Attorney..........................................49
12. SECURITY INTEREST AND SET-OFF.......................................50
12.1 Security Interest..........................................50
12.2 Set-Off....................................................50
12.3 Right to Freeze............................................51
12.4 Additional Rights..........................................51
13. THE ADMINISTRATIVE AGENT AND THE LENDERS............................51
13.1 Rights, Duties and Immunities of the Administrative Agent..51
13.1.1 Appointment of Administrative Agent.............51
13.1.2 Administration of Loan by Administrative Agent..51
13.1.3 Delegation of Duties............................52
13.1.4 Exculpatory Provisions..........................52
13.1.5 Reliance by Administrative Agent................52
13.1.6 Notice of Default...............................53
13.1.7 Lenders' Credit Decisions.......................53
13.1.8 Administrative Agent's Reimbursement and
Indemnification...............................53
13.1.9 Administrative Agent in its Individual Capacity.54
13.1.10 Successor Administrative Agent..................54
13.1.11 Duties in the Case of Enforcement...............54
13.2 Respecting Loans and Payments..............................55
13.2.1 Procedures for Loans............................55
13.2.2 Nature of Obligations of Lenders................55
13.2.3 Payments to Administrative Agent................56
13.2.4 Distribution of Liquidation Proceeds............56
13.2.5 Adjustments.....................................57
13.2.6 Setoff..........................................57
13.2.7 Distribution by Administrative Agent............57
13.2.8 Delinquent Lender...............................57
13.2.9 Holders.........................................58
13.3 Assignment and Participation...............................58
13.3.1 Conditions to Assignment by Lenders.............58
13.3.2 Certain Representations and Warranties..........59
(6)
{PAGE}
13.3.3 Register........................................60
13.3.4 Register........................................60
13.3.5 Participations..................................60
13.3.6 Disclosure......................................60
13.3.7 Miscellaneous Assignment Provisions.............61
13.3.8 Assignment by Borrower..........................61
13.4 Administrative Matters.....................................61
13.4.1 Amendment, Waiver, Consent, Etc.................61
13.4.2 Deemed Consent or Approval......................62
13.5 Arranger...................................................62
14. CASUALTY AND TAKING.................................................62
14.1 Casualty or Taking; Obligation To Repair...................62
14.2 Adjustment of Claims.......................................62
14.3 Payment and Application of Insurance Proceeds and
Condemnation Awards......................................63
14.4 Conditions To Release of Insurance Proceeds................64
15. GENERAL PROVISIONS..................................................65
15.1 Notices....................................................65
15.2 Limitations on Assignment..................................67
15.3 Further Assurances.........................................67
15.4 Payments...................................................67
15.5 Parties Bound..............................................67
15.6 Governing Law; Consent to Jurisdiction; Mutual Waiver of
Jury Trial...............................................68
15.6.1 Substantial Relationship.......................68
15.6.2 Place of Delivery..............................68
15.6.3 Governing Law..................................68
15.6.4 Exceptions.....................................68
15.6.5 Consent to Jurisdiction........................68
15.6.6 JURY TRIAL WAIVER..............................69
15.7 Survival..........................................69
15.8 Cumulative Rights..........................................69
15.9 Claims Against Administrative Agent or Lenders.............69
15.9.1 Borrower Must Notify............................69
15.9.2 Remedies........................................70
15.9.3 Limitations.....................................70
15.10 Regarding Consents.........................................70
15.11 Obligations Absolute.......................................70
15.12 Table of Contents, Title and Headings......................70
15.13 Counterparts...............................................71
15.14 Satisfaction of Commitment Letter..........................71
15.15 Time Of the Essence........................................71
15.16 No Oral Change.............................................71
15.17 Monthly Statements.........................................71
(7)
{PAGE}
EXHIBITS
Exhibits .....................................................................2
Exhibit A -- Definitions..............................................EA-1
Exhibit B-1 -- Requisition; Availability Certificate....................EB-1
Exhibit C -- Note....................................................EC-1
Exhibit D -- Authorized Representatives...............................ED-1
Exhibit E -- Required Property, Hazard and Other Insurance............EE-1
Exhibit F -- Ownership Interests and Taxpayer Identification
Numbers.................................................EF-1
Exhibit G -- Compliance Certificate...................................EG-1
Exhibit H -- Form of Assignment and Acceptance........................EH-1
Exhibit I -- Lenders' Commitment......................................EI-1
Exhibit J -- Borrowing Base Properties................................EJ-1
Exhibit K -- Loan Agenda.........................................Exhibit A
Exhibit EC -- Estoppel Certificate................................Exhibit A
Exhibit TP -- Theater Parcel..........................................3.3.7
Exhibit CC -- Closing Compliance Certificate..........................3.3.7
(8)
{PAGE}
SCHEDULES
Page
Schedule 1.3............................................................1
Schedule 6.14.2(i).....................................................26
Schedule 6.14.4(ii)....................................................27
Schedule 6.14.4(iii)...................................................27
Schedule 6.14.4(iv)....................................................28
Schedule 6.14.5........................................................28
(9)
{PAGE}
LOAN AGREEMENT
This agreement ("Loan Agreement" or "Agreement") is made and entered
into as of the 30th day of January, 2004, by and between CEDAR SHOPPING CENTERS
PARTNERSHIP, L.P., a Delaware limited partnership having an address at 44 South
Bayles Avenue, Port Washington, New York 11050 ("Borrower") and FLEET NATIONAL
BANK, a national banking association, with a place of business at 100 Federal
Street, Boston, Massachusetts, 02110, COMMERZBANK AG NEW YORK BRANCH, with an
address at 2 World Financial Center, New York, New York 10281, PB CAPITAL
CORPORATION, with an address at 590 Madison Avenue, New York, New York, 10022,
MANUFACTURERS AND TRADERS TRUST COMPANY, with an address at One M & T Plaza,
Buffalo, New York 14240, SOVEREIGN BANK, with an address at 75 State Street,
Boston, Massachusetts 02109 RAYMOND JAMES BANK, FSB, with an address at 710
Carillon Parkway, St. Petersburg, Florida 33716, CITIZENS BANK, with an address
at 3025 Chemical Road 194-0245, Suite 245, Plymouth Meeting, Pennsylvania 19462,
and the other lending institutions which are or may hereafter become parties to
this Agreement pursuant to Section 13.3 (the "Lenders") and FLEET NATIONAL BANK,
a national banking association, with a place of business at 100 Federal Street,
Boston, Massachusetts, 02110, as agent for itself and such other lending
institutions (the "Administrative Agent").
WITNESSETH:
1. BACKGROUND.
1.1 Defined Terms. Capitalized terms used in this Agreement are defined
either in Exhibit A, or in specific sections of this Agreement, or in another
Loan Document, as referenced in Exhibit A.
1.2 Borrower. Borrower is a limited partnership organized under the
laws of the State of Delaware of which the sole general partner is CSC.
1.3 Use of Loan Proceeds. Borrower has applied to Lenders for a
revolving loan of not to exceed ONE HUNDRED MILLION DOLLARS ($100,000,000.00)
("Loan"), the proceeds of which are to be used to (a) repay certain existing
indebtedness of the Borrower, (b) provide working capital to the Borrower, CSC,
and the Borrower Subsidiaries, (c) to provide funds for acquisitions,
development, capital expenditures, and refinancings of real estate properties by
the Borrower, CSC, and the Borrower Subsidiaries, (d) to pay certain closing and
transactional costs as approved by the Administrative Agent, and (e) for other
lawful REIT purposes, including, without limitation, the disbursements on the
Closing Date set forth in Schedule 1.3.
1.4 Guaranties. As an inducement to Lenders to make the Loan, CEDAR
SHOPPING CENTERS, INC., a Maryland corporation, ("CSC") and each Borrowing Base
Property Owner (severally and collectively called "Guarantor" or "Guarantors")
have agreed to furnish guaranties to the Administrative Agent, for the ratable
benefit of the Lenders. The establishment of the facility provided for herein
and the making of the Loan is in the best interest of each of the Guarantors as
the proceeds of the Loan are being, or may be, used to satisfy Debt of certain
of the Guarantors and to make available funds to the Guarantors for working
capital purposes and for acquisitions, development, capital expenditures, and
refinancings of real estate properties. The Lenders have advised the Borrower
that the Lenders will not establish this facility without the Guaranty from the
Guarantors.
-1-
{PAGE}
1.5 Loan. Subject to all of the terms, conditions and provisions of
this Agreement, and of the agreements and instruments referred to herein, each
of the Lenders agrees severally to make a loan to the Borrower up to a maximum
aggregate principal amount equal to such Lender's Commitment, and Borrower
agrees to accept and repay the Loan in accordance with the terms of this
Agreement.
2. LOAN PROVISIONS.
2.1 General Loan Provisions.
2.1.1 Limit.
(i) Subject to all of the terms and conditions
hereof, the Lenders hereby agree to lend to Borrower, and
Borrower may borrow, reborrow and repay from time to time sums
(the "Loan Advances") between the date hereof and the Initial
Maturity Date, provided that (a) the aggregate of (1)
outstanding principal balance of the Loan plus (2) the L/C
Exposure, shall at no time exceed (b) the least of (1) the
Established Loan Amount, (2) the Total Commitment, or (3) the
Availability (the least of (1), (2) or (3), the "Maximum Loan
Amount").
(ii) The obligations of the Lenders hereunder are
several and independent and not joint. Failure of any Lender
to fulfill its obligations hereunder shall not result in any
other Lender becoming obligated to advance more than its
Commitment Percentage of the Loan.
(iii) The Borrower acknowledges and agrees that no
Loan Advances shall be made during the Extended Term, if
applicable.
2.1.2 Procedures and Limits. Until the Initial Maturity Date,
the Lenders shall, subject to compliance with all of the other terms,
conditions and provisions of this Agreement and there then occurring no
Default or Event of Default, make disbursements to Borrower of Loan
Advances in installments in accordance with the following:
(i) Written Requests. Loan Advances shall be made, at
Borrower's written request to Administrative Agent, not more
frequently than four (4) times a month, on the basis of
written requests, made in accordance with the method and
procedures described in Section 2.1.3 below; and
Administrative Agent shall act upon such requests within three
(3) Business Days following the receipt of a written request
from Borrower for a Loan Advance, which action may include,
without limitation, funding the requested Loan Advance, or
specifying the basis for not funding and, when applicable,
requesting additional information and supporting
documentation. The date on which any Loan Advance is funded
(or Letter of Credit is issued) is herein called a "Drawdown
Date."
(ii) Requisitions, Certifications. Each request for a
Loan Advance shall be in writing and in the form attached
hereto as Exhibit B-1, and shall include an updated
Availability Certificate in the form of Exhibit B-1 attached
hereto. Each such request shall specify (i) the amount of the
Loan Advance requested, (ii) the purpose of the Loan Advance
requested, (iii) the aggregate outstanding principal balance
of the Loan plus L/C Exposure, (iv) the then aggregate
remaining amount which may be funded under the Note, and (v)
calculations evidencing the Borrower's continued compliance
with the Financial Covenants, as satisfied by the Closing
Compliance Certificate, or once delivered,
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