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Title: |
Credit Agreement |
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Entities: |
Canadian Imperial Bank of Commerce; CIBC World Markets Corp.; Fleet National Bank; KCS Energy, Inc.; Society of Petroleum Engineers; Bank of New York |
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Date: |
2002 |
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Size: |
Preview shows 25KB of 312KB total |
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Price: |
$99 |
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ID: |
#644667 |
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CREDIT AGREEMENT
DATED AS OF NOVEMBER 28, 2001
AMONG
KCS ENERGY, INC., AS THE BORROWER,
THE LENDERS SIGNATORY HERETO
CANADIAN IMPERIAL BANK OF COMMERCE,
NEW YORK AGENCY, AS AGENT,
CIBC INC., AS COLLATERAL AGENT,
CIBC WORLD MARKETS CORP., AS ARRANGER AND SOLE BOOK RUNNER,
GUARANTY BANK, AS CO-ARRANGER
{PAGE}
TABLE OF CONTENTS
{TABLE}
{CAPTION}
Page
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{S} {C}
ARTICLE I. DEFINITIONS AND INTERPRETATION........................................................ 1
1.1 Terms Defined Above................................................................ 1
1.2 Additional Defined Terms........................................................... 1
1.3 Undefined Financial Accounting Terms............................................... 20
1.4 References......................................................................... 20
1.5 Articles and Sections.............................................................. 20
1.6 Number and Gender.................................................................. 20
1.7 Incorporation of Exhibits.......................................................... 21
1.8 Knowledge.......................................................................... 21
ARTICLE II. TERMS OF FACILITIES.................................................................. 21
2.1 Loans.............................................................................. 21
2.2 Letters of Credit.................................................................. 22
2.3 [Intentionally Blank].............................................................. 25
2.4 Limitations on Interest Periods.................................................... 25
2.5 Limitation on Types of Loans....................................................... 25
2.6 Use of Loan Proceeds and Letters of Credit......................................... 25
2.7 Interest........................................................................... 26
2.8 Repayment of Loans and Interest.................................................... 26
2.9 General Terms...................................................................... 26
2.10 Time, Place, and Method of Payments................................................ 27
2.11 Pro Rata Treatment: Adjustments.................................................... 27
2.12 Borrowing Base Determinations...................................................... 29
2.13 Mandatory Prepayments.............................................................. 31
{/TABLE}
i
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{TABLE}
{S} {C}
2.14 Voluntary Prepayments and Conversions of Loans..................................... 31
2.15 Commitment Fees and Usage Fee...................................................... 31
2.16 Letter of Credit Fee............................................................... 32
2.17 Intentionally Blank................................................................ 32
2.18 Intentionally Blank................................................................ 32
2.19 Right of Offset.................................................................... 32
2.20 Maximum Interest................................................................... 32
2.21 Obligations Absolute............................................................... 33
2.22 Yield Protection................................................................... 34
2.23 Illegality......................................................................... 36
2.24 Taxes.............................................................................. 36
2.25 Replacement or Additional Lenders.................................................. 37
ARTICLE III. CONDITIONS.......................................................................... 39
3.1 Conditions Precedent to Initial Loan or Letter of Credit........................... 39
3.2 Conditions Precedent to Each Loan.................................................. 42
3.3 Conditions Precedent to Issuance of Letters of Credit.............................. 43
ARTICLE IV. REPRESENTATIONS AND WARRANTIES....................................................... 44
4.1 Due Authorization.................................................................. 44
4.2 Corporate Existence................................................................ 44
4.3 Valid and Binding Obligations...................................................... 44
4.4 Existing Indebtedness.............................................................. 45
4.5 Security Instruments............................................................... 45
4.6 Title to Assets.................................................................... 45
4.7 Scope and Accuracy of Financial Statements and Reserve Reports..................... 45
4.8 No Material Misstatements.......................................................... 45
{/TABLE}
ii
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4.9 Liabilities and Litigation......................................................... 46
4.10 Authorizations; Consents........................................................... 46
4.11 Compliance with Laws............................................................... 46
4.12 Default............................................................................ 46
4.13 ERISA.............................................................................. 47
4.14 Environmental Laws................................................................. 47
4.15 Compliance with Federal Reserve Regulations........................................ 48
4.16 Investment Company Act Compliance.................................................. 48
4.17 Public Utility Holding Company Act Compliance...................................... 48
4.18 Proper Filing of Tax Returns; Payment of Taxes Due................................. 48
4.19 Refunds............................................................................ 48
4.20 Gas Contracts...................................................................... 49
4.21 Intellectual Property.............................................................. 49
4.22 Labor Matters...................................................................... 49
4.23 Casualties or Taking of Property................................................... 49
4.24 Locations of Borrower.............................................................. 49
4.25 Subsidiaries....................................................................... 50
4.26 Good Standing...................................................................... 50
ARTICLE V. AFFIRMATIVE COVENANTS................................................................. 50
5.1 Maintenance and Access to Records.................................................. 50
5.2 Quarterly Financial Statements; Compliance Certificates............................ 50
5.3 Annual Financial Statements........................................................ 50
5.4 Oil and Gas Reserve Reports........................................................ 50
5.5 Title Opinions; Title Defects...................................................... 51
5.6 Notices of Certain Events.......................................................... 52
{/TABLE}
iii
{PAGE}
{TABLE}
{S} {C}
5.7 Additional Information............................................................. 52
5.8 Compliance with Laws............................................................... 53
5.9 Payment of Assessments and Charges................................................. 53
5.10 Maintenance of Corporate Existence and Good Standing............................... 53
5.11 Payment of Notes; Performance of Obligations....................................... 53
5.12 Further Assurances................................................................. 53
5.13 Fees and Expenses.................................................................. 54
5.14 Operation of Oil and Gas Properties................................................ 55
5.15 Maintenance and Inspection of Properties........................................... 55
5.16 Maintenance of Insurance........................................................... 55
5.17 Indemnification.................................................................... 55
5.18 Liens on Material Properties; Additional Guaranties and Mortgages.................. 56
5.19 Maintenance of Agreements, etc..................................................... 59
5.20 Hedging............................................................................ 59
ARTICLE VI. NEGATIVE COVENANTS................................................................... 59
6.1 Indebtedness....................................................................... 59
6.2 Contingent Obligations............................................................. 60
6.3 Liens.............................................................................. 60
6.4 Negative Pledge Agreements......................................................... 60
6.5 Sales of Assets.................................................................... 61
6.6 Leasebacks......................................................................... 61
6.7 Loans; Advances; Investments....................................................... 61
6.8 Dividends and Distributions........................................................ 62
6.9 Environmental Matters.............................................................. 62
6.10 Merger, etc.; Changes in Corporate Structure....................................... 63
{/TABLE}
iv
{PAGE}
{TABLE}
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6.11 Transactions with Affiliates....................................................... 63
6.12 Lines of Business.................................................................. 63
6.13 ERISA Compliance................................................................... 63
6.14 Subordinated Indebtedness; Production Payments..................................... 63
6.15 Use of Proceeds.................................................................... 64
6.16 Intentionally Blank................................................................ 64
6.17 Change of Ownership................................................................ 64
6.18 Capital Expenditures............................................................... 64
6.19 Working Capital.................................................................... 64
6.20 Interest Coverage Ratio............................................................ 64
6.21 Debt to Adjusted EBITDA Ratio...................................................... 64
ARTICLE VII. EVENTS OF DEFAULT................................................................... 64
7.1 Enumeration of Events of Default................................................... 64
7.2 Remedies........................................................................... 67
ARTICLE VIII. THE AGENTS AND THE ARRANGER........................................................ 68
8.1 Appointment........................................................................ 68
8.2 Delegation of Duties............................................................... 68
8.3 Exculpatory Provisions............................................................. 68
8.4 Reliance by Agent.................................................................. 69
8.5 Notice of Default.................................................................. 69
8.6 Non-Reliance on Agent and Other Lenders............................................ 70
8.7 Indemnification.................................................................... 70
8.8 Restitution........................................................................ 71
8.9 Agents in Individual Capacity...................................................... 71
8.10 Successor Agent.................................................................... 72
{/TABLE}
v
{PAGE}
{TABLE}
{S} {C}
8.11 Applicable Parties................................................................. 72
ARTICLE IX. MISCELLANEOUS........................................................................ 72
9.1 Assignments; Participations........................................................ 72
9.2 Survival of Representations, Warranties, and Covenants............................. 74
9.3 Notices and Other Communications................................................... 75
9.4 Parties in Interest................................................................ 75
9.5 Rights of Third Parties............................................................ 75
9.6 No Waiver; Rights Cumulative....................................................... 75
9.7 Severability....................................................................... 75
9.8 Amendments; Waivers................................................................ 75
9.9 Confidentiality.................................................................... 76
9.10 Governing Law...................................................................... 77
9.11 Jurisdiction and Venue............................................................. 77
9.12 Appointment of Agent for Service of Process........................................ 77
9.13 Waiver of Rights to Jury Trial..................................................... 78
9.14 Integration........................................................................ 78
9.15 Counterparts....................................................................... 78
9.16 L/C Documents...................................................................... 78
{/TABLE}
vi
{PAGE}
LIST OF EXHIBITS
Exhibit I - Form of Note
Exhibit II - Form of Subordination
Exhibit III - Form of Assignment Agreement
Exhibit IV - Form of Borrowing Request
Exhibit V - Schedule of Jurisdictions Where Qualified to Do Business
Exhibit VI - Facility Amounts
Exhibit VII - Form of Compliance Certificate
Exhibit VIII - Form of Opinion of Borrower' Counsel
Exhibit IX - Form of Opinion of Local Counsel
Exhibit X - Disclosures
Exhibit XI - Specified Assets
Exhibit XII - Form of Pledge Agreement
Exhibit XIII - [Intentionally Blank]
Exhibit XIV - Form of Subsidiary Guaranty
vii
{PAGE}
CREDIT AGREEMENT
THIS CREDIT AGREEMENT is made and entered into effective as of November
28, 2001, by and among KCS ENERGY, INC., a Delaware corporation (the
"Borrower"); each lender that is a signatory hereto or becomes a party hereto as
provided in Sections 9.1 or 2.25 (individually, together with its successors and
such assigns, a "Lender" and, collectively, together with their respective
successors and such assigns, the "Lenders"); CANADIAN IMPERIAL BANK OF COMMERCE,
a Canadian chartered bank, acting through its New York Agency (in its individual
capacity, "CIBC"), as agent for the Lenders (in such capacity, together with its
successors in such capacity pursuant to the terms hereof, the "Agent"); CIBC
INC., a Delaware corporation (in its individual capacity, "CIBC Inc."), as
collateral agent for the Lender Parties (as herein defined; CIBC Inc. in such
capacity, together with its successors in such capacity pursuant to the terms
hereof, the "Collateral Agent"); CIBC World Markets Corp., as Arranger and Sole
Book Runner (the "Arranger"); and Guaranty Bank as Co-Arranger and Documentation
Agent (the "Co-Arranger").
W I T N E S S E T H:
WHEREAS, the Borrower would like to obtain credit from the Lenders and the
Lenders are willing to provide such credit on the terms, and subject to the
conditions herein set forth;
NOW THEREFORE, in consideration of the mutual covenants and agreements
herein contained, the parties hereto hereby agree as follows:
ARTICLE I.
DEFINITIONS AND INTERPRETATION
1.1 Terms Defined Above. As used in this Agreement, the terms "Agent,"
"Arranger," "Borrower," "CIBC," "CIBC Inc.," "Collateral Agent," "Lender," and
"Lenders" shall have the meanings assigned to them hereinabove.
1.2 Additional Defined Terms. As used in this Agreement, each of the
following terms shall have the meaning assigned thereto in this Section, unless
the context otherwise requires:
"Acquired Property" shall have the meaning specified in Section
5.18(c).
"Acquisition Indebtedness" shall have the meaning specified in
Section 5.18(c).
"Additional Costs" shall mean actual costs which the Agent or any
Lender reasonably determines have been incurred and are attributable to
its obligation to make or its making or maintaining any LIBO Rate Loan or
issuing or participating in Letters of Credit, or any reduction in any
amount receivable by the Agent or such Lender in respect of any such
obligation or any LIBO Rate Loan or Letter of Credit, in each case
resulting from any Regulatory Change which (a) changes the basis of
taxation of any amounts payable to the Agent or such Lender under this
Agreement or any Note in respect of any
{PAGE}
LIBO Rate Loan or Letter of Credit (other than taxes imposed on or
calculated on the basis of the overall net income, capital or profit of
the Agent or such Lender or its Applicable Lending Office for any such
LIBO Rate Loan or for issuing or participating in any Letter of Credit),
(b) imposes or modifies any reserve, special deposit, minimum capital,
capital ratio, or similar requirements (other than the Reserve Requirement
utilized in the determination of the Adjusted LIBO Rate for such Loan)
relating to any extensions of credit or other assets of, or any deposits
with or other liabilities of, such Lender (including LIBO Rate Loans and
Dollar deposits in the London interbank market in connection with LIBO
Rate Loans), or the Commitment of such Lender, or (c) imposes any other
condition affecting this Agreement or any Note or any of such extensions
of credit, liabilities, or Commitments.
"Adjusted Base Rate" shall mean, for any day and any Base Rate Loan,
an interest rate per annum equal to the sum of (a) the greater of (i) the
Federal Funds Rate for such day plus one percent (1%), or (ii) the Base
Rate for such day plus (b) the Applicable Margin for such Base Rate Loan,
such rate to be computed on the basis of a year of 365 or 366 days, as the
case may be, and actual days elapsed (including the first day but
excluding the last day) during the period for which payable, but in no
event shall such rate exceed the Highest Lawful Rate.
"Adjusted EBITDA" shall mean EBITDA less the amortization of
deferred revenue attributable to the Production Payment 2001 Facility.
"Adjusted LIBO Rate" shall mean, for any Interest Period for any
LIBO Rate Loan, an interest rate per annum (rounded upwards, if necessary,
to the nearest 1/100th of 1%) determined by the Agent to be equal to the
sum of (a) the quotient of (i) the LIBO Rate for such Interest Period for
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