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Credit Agreement

 

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Title:

Credit Agreement

Entities:

Banc of America Securities LLC; Caraustar Industries Inc.; Deutsche Banc Alex. Brown Inc.; Temple-Inland, Inc.; Paper, Allied-Industrial, Chemical & Energy Workers International Union; Bank of America, NA; Bank of New York; Goldman Sachs Group Inc.

Date:

2003

Size:

Preview shows 50KB of 456KB total

Price:

$99

ID:

#368175

 

 

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CREDIT AGREEMENT

 

Dated as of June 24, 2003

 

Among

 

THE FINANCIAL INSTITUTIONS NAMED HEREIN

 

as the Lenders

 

and

 

BANK OF AMERICA, N.A.

 

as the Agent

 

and

 

BANC OF AMERICA SECURITIES LLC

 

as the Arranger

 

and

 

CARAUSTAR INDUSTRIES, INC.

AND CERTAIN OF ITS SUBSIDIARIES

 

as the Borrowers

 

and

 

CERTAIN OTHER SUBSIDIARIES OF

CARAUSTAR INDUSTRIES, INC.

 

as the Guarantors

 

 



TABLE OF CONTENTS

 

Section


        Page

ARTICLE 1 LOANS AND LETTERS OF CREDIT

   2

1.1

  

Credit Facility.

   2

1.2

  

Revolving Loans.

   2

1.3

  

Letters of Credit.

   5

1.4

  

Bank Products.

   9

ARTICLE 2 INTEREST AND FEES

   9

2.1

  

Interest.

   9

2.2

  

Continuation and Conversion Elections.

   10

2.3

  

Maximum Interest Rate.

   11

2.4

  

Closing Fees.

   11

2.5

  

Unused Line Fee.

   12

2.6

  

Letter of Credit Fee.

   12

ARTICLE 3 PAYMENTS AND PREPAYMENTS

   12

3.1

  

Revolving Loans.

   12

3.2

  

Reduction and Termination of Facility.

   12

3.3

  

Prepayments of the Loans.

   14

3.4

  

LIBOR Rate Loan Prepayments.

   14

3.5

  

Payments by the Borrowers.

   14

3.6

  

Payments as Revolving Loans.

   15

3.7

  

Apportionment, Application and Reversal of Payments.

   15

3.8

  

Indemnity for Returned Payments.

   16

3.9

  

Agents and Lenders Books and Records; Monthly Statements.

   16

3.10

  

Borrowers Agent.

   16

3.11

  

Joint and Several Liability.

   17

3.12

  

Obligations Absolute.

   17

3.13

  

Waiver of Suretyship Defenses.

   18

3.14

  

Contribution and Indemnification among the Borrowers.

   18

ARTICLE 4 TAXES, YIELD PROTECTION AND ILLEGALITY

   19

4.1

  

Taxes.

   19

4.2

  

Illegality.

   20

4.3

  

Increased Costs and Reduction of Return.

   20

4.4

  

Funding Losses.

   21

4.5

  

Inability to Determine Rates.

   21

4.6

  

Certificates of Agent.

   22

4.7

  

Survival.

   22

ARTICLE 5 BOOKS AND RECORDS; FINANCIAL INFORMATION; NOTICES

   22

 

i


Section


        Page

5.1

  

Books and Records.

   22

5.2

  

Financial Information.

   22

5.3

  

Notices to the Lenders.

   25

5.4

  

Collateral Reporting.

   27

5.5

  

Subordinated Debt Certificate.

   28

ARTICLE 6 GENERAL WARRANTIES AND REPRESENTATIONS

   29

6.1

  

Authorization, Validity, and Enforceability of this Agreement and the Loan Documents.

   29

6.2

  

Validity and Priority of Security Interest.

   29

6.3

  

Organization and Qualification.

   29

6.4

  

Corporate Name; Prior Transactions.

   30

6.5

  

Subsidiaries and Affiliates.

   30

6.6

  

Financial Statements and Projections.

   30

6.7

  

Capitalization.

   30

6.8

  

Solvency; Fair Consideration.

   31

6.9

  

Debt.

   31

6.10

  

Distributions.

   31

6.11

  

Real Estate; Leases.

   31

6.12

  

Proprietary Rights.

   32

6.13

  

Trade Names.

   32

6.14

  

Litigation.

   32

6.15

  

Labor Disputes.

   32

6.16

  

Environmental Laws.

   32

6.17

  

No Violation of Law.

   34

6.18

  

No Default.

   34

6.19

  

ERISA Compliance.

   34

6.20

  

Taxes.

   34

6.21

  

Regulated Entities.

   35

6.22

  

Use of Proceeds; Margin Regulations.

   35

6.23

  

Copyrights, Patents, Trademarks and Licenses, etc.

   35

6.24

  

No Material Adverse Change.

   35

6.25

  

Full Disclosure.

   35

6.26

  

Material Agreements.

   35

6.27

  

Bank Accounts.

   36

6.28

  

Governmental Authorization.

   36

6.29

  

Tax Shelter Regulations.

   36

6.30

  

Designated Senior Debt, Etc.

   36

ARTICLE 7 AFFIRMATIVE AND NEGATIVE COVENANTS

   36

7.1

  

Taxes and Other Obligations.

   36

7.2

  

Legal Existence and Good Standing.

   37

7.3

  

Compliance with Law and Agreements; Maintenance of Licenses.

   37

 

ii



 

Section


        Page

7.4

  

Maintenance of Property; Inspection of Property.

   37

7.5

  

Insurance.

   37

7.6

  

Insurance and Condemnation Proceeds.

   38

7.7

  

Environmental Laws.

   38

7.8

  

Compliance with ERISA.

   39

7.9

  

Mergers, Consolidations or Sales.

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