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Title: |
Credit Agreement |
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Entities: |
Canadian Imperial Bank of Commerce; Comerica Bank; Deutsche Bank Securities Inc.; ITC Holdings Corp.; J.P. Morgan Securities Inc.; McGraw-Hill Companies Inc. |
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Date: |
2006 |
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Size: |
Preview shows 16KB of 285KB total |
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Price: |
$87 |
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ID: |
#2590566 |
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CREDIT AGREEMENT
among
MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC,
as Borrower,
The Several Lenders from Time to Time Parties Hereto,
COMERICA BANK
as Syndication Agent,
and
JPMORGAN CHASE BANK,
as Administrative Agent
Dated as of December 10, 2003
================================================================================
J.P. MORGAN SECURITIES INC.,
as Sole Lead Arranger and Sole Bookrunner
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
----
{S} {C}
SECTION 1. DEFINITIONS................................................... 1
1.1 Defined Terms................................................... 1
1.2 Other Definitional Provisions................................... 21
SECTION 2. AMOUNT AND TERMS OF COMMITMENTS............................... 22
2.1 Commitments..................................................... 22
2.2 Procedure for Borrowing......................................... 22
2.3 Swingline Commitment............................................ 22
2.4 Procedure for Swingline Borrowing; Refunding of
Swingline Loans.............................................. 23
2.5 Commitment Fees, etc............................................ 24
2.6 Termination or Reduction of Commitments......................... 24
2.7 Optional Prepayments............................................ 25
2.8 Mandatory Prepayments and Commitment Reductions................. 25
2.9 Conversion and Continuation Options............................. 26
2.10 Limitations on LIBOR Tranches................................... 26
2.11 Interest Rates and Payment Dates................................ 27
2.12 Computation of Interest and Fees................................ 27
2.13 Inability to Determine Interest Rate............................ 27
2.14 Pro Rata Treatment and Payments................................. 28
2.15 Requirements of Law............................................. 29
2.16 Taxes........................................................... 30
2.17 Indemnity....................................................... 32
2.18 Change of Lending Office........................................ 32
2.19 Replacement of Lenders.......................................... 33
SECTION 3. LETTERS OF CREDIT............................................. 33
3.1 L/C Commitment.................................................. 33
3.2 Procedure for Issuance of Letter of Credit...................... 34
3.3 Fees and Other Charges.......................................... 34
3.4 L/C Participations.............................................. 34
3.5 Reimbursement Obligation of the Borrower........................ 35
3.6 Obligations Absolute............................................ 35
3.7 Letter of Credit Payments....................................... 36
3.8 Applications.................................................... 36
SECTION 4. REPRESENTATIONS AND WARRANTIES................................ 36
4.1 Organization; Power and Authority............................... 36
4.2 Authorization, etc.............................................. 36
4.3 Disclosure...................................................... 37
{/TABLE}
{PAGE}
{TABLE}
{CAPTION}
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----
{S} {C}
4.4 Organization and Ownership of Subsidiaries; Affiliates.......... 37
4.5 Financial Statements and Condition.............................. 37
4.6 No Change....................................................... 38
4.7 No Default...................................................... 38
4.8 No Legal Bar.................................................... 38
4.9 No Consents Required............................................ 38
4.10 Litigation; Observance of Agreements, Statutes and Orders....... 39
4.11 Taxes........................................................... 39
4.12 Title to Real and Personal Property............................. 39
4.13 Licenses, Permits, Etc.......................................... 40
4.14 Compliance with ERISA........................................... 40
4.15 Use of Proceeds; Margin Regulations............................. 41
4.16 Existing Debt; Future Liens..................................... 41
4.17 Solvency........................................................ 41
4.18 Affiliate Transactions.......................................... 42
4.19 Independent Accountants......................................... 42
4.20 Insurance....................................................... 42
4.21 Compliance With Environmental Laws.............................. 42
4.22 Pro Forma Projections........................................... 43
4.23 Pari Passu...................................................... 43
4.24 Independent Engineer............................................ 43
4.25 Regulatory Matters.............................................. 43
4.26 No Labor Disputes............................................... 43
4.27 Security Documents.............................................. 43
4.28 Transmission Documents.......................................... 44
SECTION 5. CONDITIONS PRECEDENT.......................................... 44
5.1 Conditions to Initial Extension of Credit....................... 44
5.2 Conditions to Each Extension of Credit.......................... 47
SECTION 6. AFFIRMATIVE COVENANTS......................................... 48
6.1 Financial and Business Information.............................. 48
6.2 Certificates; Other Information................................. 51
6.3 Inspection Rights............................................... 52
6.4 Payment of Obligations.......................................... 52
6.5 Maintenance and Operation of Properties......................... 52
6.6 Maintenance of Insurance........................................ 52
6.7 Use of Proceeds................................................. 53
6.8 Compliance with Laws, Regulations and Contractual Obligations... 53
6.9 Permits; Approvals.............................................. 53
6.10 Real Estate Filings............................................. 53
6.11 Compliance with ERISA........................................... 54
6.12 Delivery of Opinions of Counsel................................. 54
6.13 Maintenance of Existence, etc................................... 54
6.14 Books and Records............................................... 54
{/TABLE}
ii
{PAGE}
{TABLE}
{CAPTION}
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{S} {C}
6.15 Payment of Taxes and Other Claims............................... 54
6.16 Certain Additional Covenants with Respect to the
Mortgaged Property........................................... 54
6.17 Annual Officer's Certificate as to Compliance................... 55
SECTION 7. NEGATIVE COVENANTS............................................ 55
7.1 Restrictions on the Establishment of Subsidiaries............... 55
7.2 Limitations on Asset Sales...................................... 55
7.3 EBITDA / Interest Expense....................................... 55
7.4 Debt / EBITDA................................................... 56
7.5 Debt / Capitalization........................................... 57
7.6 Limitation on Debt.............................................. 57
7.7 Limitations on Liens............................................ 57
7.8 Restricted Payments............................................. 57
7.9 Restrictions on Investments..................................... 58
7.10 Limitation on Lines of Business................................. 58
7.11 Limitation on Transactions with Affiliates...................... 59
7.12 Limitation on Capital Expenditures.............................. 59
7.13 Limitation on Sale-Lease and Lease-Lease Back Transactions...... 59
7.14 Transmission Documents.......................................... 59
7.15 Mergers, Consolidations, Etc.................................... 59
7.16 Optional Payments and Modifications of Certain Debt
Instruments.................................................. 61
SECTION 8. EVENTS OF DEFAULT............................................. 61
SECTION 9. THE AGENTS.................................................... 64
9.1 Appointment..................................................... 64
9.2 Delegation of Duties............................................ 65
9.3 Exculpatory Provisions.......................................... 65
9.4 Reliance by Administrative Agent................................ 65
9.5 Notice of Default............................................... 66
9.6 Non-Reliance on Agents and Other Lenders........................ 66
9.7 Indemnification................................................. 66
9.8 Agent in Its Individual Capacity................................ 67
9.9 Successor Administrative Agent.................................. 67
9.10 Syndication Agent............................................... 67
SECTION 10. MISCELLANEOUS................................................ 68
10.1 Amendments and Waivers.......................................... 68
10.2 Notices......................................................... 68
10.3 No Waiver; Cumulative Remedies.................................. 69
10.4 Survival of Representations and Warranties...................... 69
10.5 Payment of Expenses and Taxes................................... 69
10.6 Successors and Assigns; Participations and Assignments.......... 70
10.7 Adjustments; Set-off............................................ 73
{/TABLE}
iii
{PAGE}
{TABLE}
{CAPTION}
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{S} {C}
10.8 Counterparts.................................................... 73
10.9 Severability.................................................... 74
10.10 Integration..................................................... 74
10.11 GOVERNING LAW................................................... 74
10.12 Submission To Jurisdiction; Waivers............................. 74
10.13 Acknowledgements................................................ 74
10.14 Confidentiality................................................. 75
10.15 WAIVERS OF JURY TRIAL........................................... 75
10.16 Limitation on Recourse.......................................... 76
10.17 Acknowledgment.................................................. 76
{/TABLE}
iv
{PAGE}
APPENDICES:
A Regulatory Update
B Correction to Private Placement Memorandum
SCHEDULES:
1.1 Commitments
4.9 Required Consents
4.16 Existing Debt
4.28 Material Agreements
EXHIBITS:
A Form of Compliance Certificate
B Form of Closing Certificate
C Form of Assignment and Acceptance
D-1 Form of Legal Opinion of Pillsbury Winthrop LLP
D-2 Form of Legal Opinion of Wright & Talisman, P.C.
E Form of Exemption Certificate
F Form of First Mortgage Indenture
G Form of Second Supplemental Indenture
H Form of Consumers Consent
I Subordination Terms
{PAGE}
CREDIT AGREEMENT (this "Agreement"), dated as of December 10, 2003,
among MICHIGAN ELECTRIC TRANSMISSION COMPANY, LLC, a Michigan limited liability
company (the "Borrower"), the several banks and other financial institutions or
entities from time to time parties to this Agreement (the "Lenders"), COMERICA
BANK, as syndication agent (in such capacity, the "Syndication Agent"), and
JPMORGAN CHASE BANK, as administrative agent (in such capacity, the
"Administrative Agent").
The parties hereto hereby agree as follows:
SECTION 1. DEFINITIONS
1.1 Defined Terms. As used in this Agreement, the terms listed in this
Section 1.1 shall have the respective meanings set forth in this Section 1.1.
"ABR": for any day, a rate per annum equal to the greater of (a) the
Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%. For purposes hereof: "Prime Rate" shall mean
the rate of interest per annum publicly announced from time to time by JPMorgan
Chase Bank as its prime rate in effect at its principal office in New York City
(the Prime Rate not being intended to be the lowest rate of interest charged by
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