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Document Preview Credit Agreement [Amended and Restated] |
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Title: |
Credit Agreement [Amended and Restated] |
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Entities: |
Banc of America Securities LLC; Heritage Health Systems, Inc.; Raymond James Bank; U.S. Bank, NA; Universal American Financial Corp.; Wells Fargo Bank, NA; Federal National Mortgage Association; Bank of America, NA; Bank of New York; Weil, Gotshal & Manges LLP; ING Capital LLC; SunTrust Bank |
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Date: |
2004 |
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Size: |
Preview shows 28KB of 404KB total |
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Price: |
$72 |
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ID: |
#292368 |
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AMENDED AND RESTATED CREDIT AGREEMENT
among
UNIVERSAL AMERICAN FINANCIAL CORP.,
VARIOUS LENDING INSTITUTIONS,
and
BANK OF AMERICA, N.A.,
as the Administrative Agent,
the Collateral Agent and the L/C Issuer
Dated as of May 28, 2004
$120,000,000
ING CAPITAL LLC, as Syndication Agent
SUNTRUST BANK, as Documentation Agent
BANC OF AMERICA SECURITIES LLC,
as Sole Lead Arranger and Book Manager
{PAGE}
TABLE OF CONTENTS
{TABLE}
{S} {C} {C}
Page
SECTION 1. Amount and Terms of Credit......................................................................1
1.01 Commitments..........................................................................................1
1.02 Minimum Amount of Each Borrowing; Maximum Number of Borrowings.......................................2
1.03 Notice of Borrowing..................................................................................2
1.04 Disbursement of Funds................................................................................3
1.05 Notes................................................................................................4
1.06 Conversions..........................................................................................4
1.07 Letters of Credit....................................................................................4
1.08 Pro Rata Borrowings.................................................................................11
1.09 Interest............................................................................................11
1.10 Interest Periods....................................................................................12
1.11 Increased Costs, Illegality, etc....................................................................13
1.12 Compensation........................................................................................15
1.13 Change of Lending Office............................................................................15
1.14 Replacement of Banks................................................................................16
SECTION 2. Fees; Commitments..............................................................................16
2.01 Fees................................................................................................16
2.02 Mandatory Reductions of Commitments.................................................................16
SECTION 3. Payments.......................................................................................17
3.01 Termination or Reduction of the Total Revolving Loan Commitment.....................................17
3.02 Voluntary Prepayments...............................................................................17
3.03 Mandatory Repayments and Prepayments................................................................17
3.04 Method and Place of Payment.........................................................................20
3.05 Net Payments........................................................................................21
SECTION 4. Conditions Precedent...........................................................................23
4.01 Effectiveness; Notes................................................................................24
4.02 No Default; Representations and Warranties..........................................................24
4.03 Officer's Certificate...............................................................................24
4.04 Opinions of Counsel.................................................................................24
4.05 Corporate Proceedings...............................................................................24
4.06 No Material Adverse Effect..........................................................................24
4.07 Litigation..........................................................................................24
4.08 Subsidiary Guaranty.................................................................................25
4.09 Pledge Agreement....................................................................................25
4.10 Security Agreement..................................................................................25
4.11 Lien Searches.......................................................................................26
4.12 Consummation of the Transaction.....................................................................26
4.13 Acquisition Documents...............................................................................26
4.14 Financial Statements; Projections...................................................................26
4.15 Approvals, etc......................................................................................27
4.16 Indebtedness........................................................................................27
4.17 Payment of Fees.....................................................................................27
4.18 Notice of Borrowing.................................................................................27
4.19 Insurance Policies..................................................................................27
4.20 Capital Structure...................................................................................27
4.21 Ratings.............................................................................................27
SECTION 5. Representations, Warranties and Agreements.....................................................28
5.01 Corporate Status....................................................................................28
i
{PAGE}
5.02 Corporate Power and Authority.......................................................................28
5.03 No Contravention of Laws, Agreements or Organizational Documents....................................28
5.04 Litigation and Contingent Liabilities...............................................................29
5.05 Use of Proceeds; Margin Regulations.................................................................29
5.06 Approvals...........................................................................................29
5.07 Investment Company Act..............................................................................29
5.08 Public Utility Holding Company Act..................................................................29
5.09 True and Complete Disclosure; Projections and Assumptions...........................................30
5.10 Consummation of Transaction.........................................................................30
5.11 Financial Condition; Financial Statements...........................................................30
5.12 Security Interests..................................................................................31
5.13 Tax Returns and Payments............................................................................31
5.14 Compliance with ERISA...............................................................................31
5.15 Subsidiaries........................................................................................32
5.16 Intellectual Property, etc..........................................................................33
5.17 Pollution and Other Regulations.....................................................................33
5.18 Labor Relations; Collective Bargaining Agreements...................................................33
5.19 Representations and Warranties in Transaction Documents.............................................34
5.20 Indebtedness........................................................................................34
5.21 Compliance with Statutes, etc.......................................................................34
5.22 Insurance Licenses..................................................................................34
SECTION 6. Affirmative Covenants..........................................................................34
6.01 Information Covenants...............................................................................34
6.02 Books, Records and Inspections......................................................................37
6.03 Insurance...........................................................................................37
6.04 Payment of Taxes....................................................................................38
6.05 Corporate Franchises................................................................................38
6.06 Compliance with Statutes, etc.......................................................................38
6.07 ERISA...............................................................................................38
6.08 Performance of Obligations..........................................................................39
6.09 Good Repair.........................................................................................39
6.10 End of Fiscal Years; Fiscal Quarters................................................................39
6.11 Maintenance of Licenses and Permits.................................................................39
6.12 Register............................................................................................39
6.13 Ratings.............................................................................................40
SECTION 7. Negative Covenants.............................................................................40
7.01 Changes in Business.................................................................................40
7.02 Consolidation, Merger, Sale or Purchase of Assets...................................................40
7.03 Liens...............................................................................................42
7.04 Indebtedness........................................................................................44
7.05 Capital Expenditures................................................................................45
7.06 Advances, Investments and Loans.....................................................................46
7.07 Modifications of Agreements, etc....................................................................47
7.08 Dividends, Restricted Payments, etc.................................................................48
7.09 Transactions with Affiliates........................................................................49
7.10 Leverage Ratio......................................................................................49
7.11 Fixed Charge Coverage Ratio.........................................................................49
7.12 Minimum Risk Based Capital..........................................................................49
7.13 Minimum Consolidated Net Worth......................................................................50
7.14 Minimum Combined Adjusted Statutory Capital and Surplus.............................................50
ii
{PAGE}
7.15 Issuance of Stock...................................................................................50
7.16 Creation of Subsidiaries............................................................................50
7.17 Partnership Agreements..............................................................................51
SECTION 8. Events of Default..............................................................................51
8.01 Payments............................................................................................51
8.02 Representations, etc................................................................................51
8.03 Covenants...........................................................................................51
8.04 Default Under Other Agreements......................................................................51
8.05 Bankruptcy, etc.....................................................................................51
8.06 ERISA...............................................................................................52
8.07 Invalidity of Credit Documents......................................................................52
8.08 Collateral Documents................................................................................52
8.09 Judgments...........................................................................................53
8.10 Remedies Upon Event of Default......................................................................53
8.11 Application of Funds................................................................................53
SECTION 9. Definitions....................................................................................54
SECTION 10. The Administrative Agent.......................................................................75
10.01 Appointment.........................................................................................75
10.02 Delegation of Duties................................................................................76
10.03 Liability of the Administrative Agent...............................................................76
10.04 Reliance by the Administrative Agent................................................................76
10.05 Notice of Default...................................................................................77
10.06 Credit Decision; Disclosure of Information by the Administrative Agent..............................77
10.07 Indemnification.....................................................................................77
10.08 The Administrative Agent in its Individual Capacity.................................................78
10.09 Successor Administrative Agent......................................................................78
10.10 Administrative Agent May File Proofs of Claim.......................................................78
10.11 Other Agents; Arrangers and Managers................................................................79
SECTION 11. Miscellaneous..................................................................................79
11.01 Payment of Expenses and Taxes; Indemnification by the Borrower......................................79
11.02 Right of Setoff.....................................................................................80
11.03 Notices.............................................................................................81
11.04 Benefit of Agreement................................................................................82
11.05 No Waiver; Remedies Cumulative......................................................................84
11.06 Payments Pro Rata...................................................................................84
11.07 Payments Set Aside..................................................................................85
11.08 Calculations; Computations..........................................................................85
11.09 GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE....................................................86
11.10 Counterparts........................................................................................87
11.11 Effectiveness.......................................................................................87
11.12 Headings Descriptive................................................................................87
11.13 Amendment or Waiver.................................................................................87
11.14 Survival............................................................................................88
11.15 Domicile of Loans...................................................................................88
11.16 Interest Rate Limitations...........................................................................89
11.17 Confidentiality.....................................................................................89
11.18 WAIVER OF JURY TRIAL................................................................................89
11.19 Severability........................................................................................90
11.20 USA Patriot Act Notice..............................................................................90
11.21 Entire Agreement....................................................................................90
11.22 Restatement of Original Agreement...................................................................90
{/TABLE}
iii
{PAGE}
Schedule 1 - List of Banks and Commitments
Schedule 2 - Bank Addresses
Schedule 5.04 - Existing Litigation
Schedule 5.13 - Past Due Tax Returns and Payments
Schedule 5.14 - Pension Plans and Post-Retirement Health Care Obligations
Schedule 5.15 - Subsidiaries
Schedule 5.18 - Collective Bargaining Agreements
Schedule 5.20 - Existing Indebtedness
Schedule 7.03 - Existing Liens
Schedule 7.06 - Existing Investment Commitments
Exhibit A - Form of Notice of Borrowing
Exhibit B-1 - Form of Amended and Restated Term Note
Exhibit B-2 - Form of Amended and Restated Revolving Note
Exhibit C - Form of Opinion(s) of Counsel to the Credit Parties
Exhibit D - Form of Officer's Certificate
Exhibit E - Form of Section 3.05(e)(ii) Certificate
Exhibit F - Form of Amended and Restated Subsidiary Guaranty
Exhibit G - Form of Amended and Restated Pledge Agreement
Exhibit H - Form of Amended and Restated Security Agreement
Exhibit I - Form of Compliance Certificate
Exhibit J - Form of Assignment and Assumption Agreement
iv
{PAGE}
AMENDED AND RESTATED CREDIT AGREEMENT, dated as of May 28, 2004,
among UNIVERSAL AMERICAN FINANCIAL CORP., a New York corporation (the
"Borrower"), the lending institutions listed from time to time on Schedule 1
hereto (each a "Bank" and, collectively, the "Banks"), and BANK OF AMERICA,
N.A., as Administrative Agent (the "Administrative Agent") and L/C Issuer
(defined herein). Unless otherwise defined herein, all capitalized terms used
herein and defined in Section 9 are used herein as so defined.
RECITALS:
A. The Borrower has entered into that certain Credit Agreement dated
as of March 31, 2003, as amended by that certain First Amendment to Credit
Agreement dated as of May 27, 2003, and as further amended by that certain
Second Amendment to Credit Agreement dated as of October 29, 2003 (such Credit
Agreement, as so amended, the "Original Agreement") with Bank of America, in its
capacity as administrative agent thereunder and as a bank, and certain other
banks party thereto (together with Bank of America, the "Existing Banks"),
providing for, among other things, a revolving credit facility up to $15,000,000
and a term loan facility up to $65,000,000.
B. Subject to the terms and conditions set forth below, the Borrower
and the Banks desire to entirely amend, modify and restate the Original
Agreement.
C. The amendment and restatement of the Original Agreement hereunder
is not intended by the parties to constitute either a novation or a discharge or
satisfaction of the indebtedness and obligations outstanding under the Original
Agreement, which indebtedness and obligations under the Original Agreement shall
remain outstanding hereunder on the terms and conditions hereinafter provided.
In consideration of the foregoing and the mutual covenants contained
herein, the Borrower, Bank of America (in its capacity as Administrative Agent
under this Agreement and the Original Agreement), and the Banks agree that,
effective upon the Effective Date, the Original Agreement is amended and
restated in its entirety as follows:
SECTION 1. Amount and Terms of Credit.
1.01 Commitments. Subject to and upon the terms and conditions herein
set forth, each Bank severally agrees to make or maintain a loan or loans (each
a "Loan" and, collectively, the "Loans") to the Borrower, which Loans shall be
drawn or maintained, to the extent such Bank has a commitment under such
Facility, under the Term Loan Facility and the Revolving Loan Facility,
respectively, as set forth below:
(a) Each Loan under the Term Loan Facility (each, a "Term Loan" and,
collectively, the "Term Loans"):
(i) shall be incurred by the Borrower on the Initial Borrowing
Date or, in the case of the Existing Term Loans, shall have been
incurred under the Original Agreement;
(ii) shall be denominated in Dollars;
(iii) may, except as hereinafter provided, at the option of the
Borrower, be incurred and maintained as, and/or converted into, Base
Rate Loans or Eurodollar Loans;
(iv) shall not exceed, in the aggregate for any Bank, the Term
Loan Commitment of such Bank; and
(v) once repaid, may not be reborrowed.
1
{PAGE}
(b) Each Existing Term Loan:
(i) shall be deemed to have been incurred under the Term Loan
Facility pursuant to this Agreement, and from and after the Effective
Date shall be subject to and governed by the terms and conditions
hereof; and
(ii) shall be sold and assigned among the Banks on the Effective
Date (and such sale and assignment shall be effected by the execution
and delivery of this Agreement and shall be deemed to be made pursuant
to assignment and acceptance agreements in the form of Exhibit J to
the Original Agreement) so that, from and after the Effective Date,
each Existing Term Loan is held by each of the Banks pro rata based on
the percentage that its Term Loan Commitment is of the Total Term Loan
Commitment.
(c) Each Loan under the Revolving Loan Facility (each, a "Revolving
Loan" and, collectively, the "Revolving Loans"):
(i) may be incurred by the Borrower at any time and from time to
time on and after the Initial Borrowing Date but prior to the
Revolving Loan Maturity Date;
(ii) shall be denominated in Dollars;
(iii) may, except as hereinafter provided, at the option of the
Borrower, be incurred and maintained as, and/or converted into, Base
Rate Loans or Eurodollar Loans, provided that all Revolving Loans
incurred as part of the same Borrowing shall, unless otherwise
specifically provided herein, consist of Revolving Loans of the same
Type;
(iv) may be repaid and reborrowed in accordance with the
provisions hereof; and
(v) shall not exceed, for any Bank, a principal amount which,
when added to the Outstanding Amount of all other Revolving Loans made
by such Bank plus such Bank's pro rata share of the Outstanding Amount
of all L/C Obligations, equals the Revolving Loan Commitment of such
Bank.
1.02 Minimum Amount of Each Borrowing; Maximum Number of Borrowings.
The aggregate principal amount of each Borrowing hereunder shall not be less
than $1,000,000 and, if in excess thereof, shall be in an integral multiple of
$500,000; provided, however, that a Borrowing of Revolving Loans constituting
Base Rate Loans may be equal to the Total Unutilized Revolving Loan Commitment.
More than one Borrowing may be incurred on any day; provided that at no time
shall there be outstanding more than three Borrowings of Term Loans that are
Eurodollar Loans and five Borrowings of Revolving Loans that are Eurodollar
Loans.
1.03 Notice of Borrowing.
(a) Whenever the Borrower desires to incur Loans under any Facility,
it shall give the Administrative Agent at its Notice Office, prior to 12:00
Noon (New York time), at least three Business Days' prior written notice
(or telephonic notice promptly confirmed in writing) of each Borrowing of
Eurodollar Loans and at least one Business Day's prior written notice (or
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