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Credit Agreement
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Title:
Credit Agreement
Entities:
AAR Corp.; Air France; Continental Airlines, Inc.; Bank of America, NA; Bank of New York
Date:
2003
Size:
Preview shows 9KB of 314KB total
Price:
$74
ID:
#374686
► Loans ► Credit Agreements
► Financial ► Money Center Banks
► Transportation ► Airline
► Capital Goods ► Aerospace
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                                CREDIT AGREEMENT



                            DATED AS OF MAY 29, 2003



                                      AMONG



                       AAR CORP., AAR DISTRIBUTION, INC.,

                AAR PARTS TRADING, INC., AAR MANUFACTURING, INC.,

             AAR ENGINE SERVICES, INC. AND AAR ALLEN SERVICES, INC.



                                  AS BORROWERS,



                             MERRILL LYNCH CAPITAL,

          A DIVISION OF MERRILL LYNCH BUSINESS FINANCIAL SERVICES INC.,

                            AS AGENT AND AS A LENDER



                                       AND



                             THE ADDITIONAL LENDERS

                         FROM TIME TO TIME PARTY HERETO



[MERRILL LYNCH LOGO]



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                                TABLE OF CONTENTS



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ARTICLE 1   DEFINITIONS................................................................................1

     Section 1.1     Certain Defined Terms.............................................................1

     Section 1.2     Accounting Terms and Determinations..............................................19

     Section 1.3     Other Definitional Provisions....................................................20

ARTICLE 2   LOANS AND LETTERS OF CREDIT...............................................................20

     Section 2.1     Revolving Loans..................................................................20

     Section 2.2     Interest, Interest Calculations and Certain Fees.................................22

     Section 2.3     Notes............................................................................26

     Section 2.4     Letters of Credit and Letter of Credit Fees......................................26

     Section 2.5     General Provisions Regarding Payment; Loan Account...............................28

     Section 2.6     Maximum Interest.................................................................29

     Section 2.7     Taxes............................................................................30

     Section 2.8     Ancillary Services...............................................................31

ARTICLE 3   REPRESENTATIONS AND WARRANTIES............................................................31

     Section 3.1     Existence and Power..............................................................31

     Section 3.2     Organization and Governmental Authorization; No Contravention....................31

     Section 3.3     Binding Effect...................................................................31

     Section 3.4     Capitalization...................................................................32

     Section 3.5     Financial Information............................................................32

     Section 3.6     Litigation.......................................................................33

     Section 3.7     Ownership of Property............................................................33

     Section 3.8     No Default.......................................................................33

     Section 3.9     Labor Matters....................................................................33

     Section 3.10    Regulated Entities...............................................................33

     Section 3.11    Margin Regulations...............................................................33

     Section 3.12    Compliance With Laws.............................................................34

     Section 3.13    Taxes............................................................................34

     Section 3.14    Compliance with ERISA............................................................34

     Section 3.15    Brokers..........................................................................35

     Section 3.16    Compliance with Environmental Requirements; No Hazardous Materials...............35

     Section 3.17    Intellectual Property............................................................36

     Section 3.18    Real Property Interests..........................................................36

     Section 3.19    Solvency.........................................................................36

     Section 3.20    Borrowers and Each Other Credit Party............................................36

     Section 3.21    Full Disclosure..................................................................37

     Section 3.22    Representations and Warranties Incorporated from Other Operative Documents.......37

ARTICLE 4   AFFIRMATIVE COVENANTS.....................................................................37

     Section 4.1     Financial Statements and Other Reports...........................................37

     Section 4.2     Payment and Performance of Obligations...........................................41

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                                TABLE OF CONTENTS

                                   (continued)



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     Section 4.3     Conduct of Business and Maintenance of Existence.................................41

     Section 4.4     Maintenance of Property; Insurance...............................................42

     Section 4.5     Compliance with Laws.............................................................43

     Section 4.6     Inspection of Property, Books and Records........................................43

     Section 4.7     Use of Proceeds..................................................................43

     Section 4.8     Lenders' Meetings................................................................43

     Section 4.9     Hazardous Materials; Remediation.................................................43

     Section 4.10    Further Assurances...............................................................44

ARTICLE 5   NEGATIVE COVENANTS........................................................................44

     Section 5.1     Debt.............................................................................44

     Section 5.2     Liens............................................................................46

     Section 5.3     Restricted Distributions.........................................................47

     Section 5.4     Restrictive Agreements...........................................................48

     Section 5.5     Payments and Modifications of Other Debt.........................................48

     Section 5.6     Consolidations, Mergers and Sales of Assets......................................49

     Section 5.7     Purchase of Assets, Investments..................................................50

     Section 5.8     Transactions with Affiliates.....................................................50

     Section 5.9     Modification of Organizational Documents.........................................51

     Section 5.10    Fiscal Year......................................................................51

     Section 5.11    Conduct of Business..............................................................51

     Section 5.12    Lease Payments...................................................................51

     Section 5.13    Bank Accounts....................................................................51

ARTICLE 6   ACCOUNTS AND INVENTORY REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS..............52

     Section 6.1     Accounts and Account Collections.................................................52

     Section 6.2     Inventory........................................................................53
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