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Revolving Credit and Security Agreement

 

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Title:

Revolving Credit and Security Agreement

Entities:

Citibank, NA; Horizon Medical Products Inc.; Medtronic, Inc.; RITA Medical Systems, Inc.

Date:

2006

Size:

226KB total

Price:

$84

ID:

#860497

 

 

► Financing ► Security ► Credit ► Revolving Credit & Security Agreements
► Financial
► Healthcare ► Medical Equipment & Supplies

 

 

Start of Preview




 
 
REVOLVING CREDIT AND SECURITY AGREEMENT



between


RITA MEDICAL SYSTEMS, INC. AND SUBSIDIARIES

and


CAPITALSOURCE FINANCE LLC





Dated as of
January 31, 2006






REVOLVING CREDIT AND SECURITY AGREEMENT

TABLE OF CONTENTS


   
Page
I.
DEFINITIONS
2
 
1.1
General Terms
2
     
II.
ADVANCES, PAYMENT AND INTEREST
2
 
2.1
The Revolving Facility
2
 
2.2
The Loans; Maturity
3
 
2.3
Interest on the Facility
4
 
2.4
Revolving Facility Disbursements; Requirement to Deliver Borrowing Certificate
4
 
2.5
Revolving Facility Collections; Repayment; Borrowing Availability and Lockbox
4
 
2.6
Promise to Pay; Manner of Payment
5
 
2.7
Repayment of Excess Advances
6
 
2.8
Payments by Lender
6
 
2.9
Grant of Security Interest; Collateral
6
 
2.10
Collateral Administration
8
 
2.11
Power of Attorney
9
 
2.12
Evidence of Loans
9
     
III.
FEES AND OTHER CHARGES
11
 
3.1
Commitment Fee
11
 
3.2
Unused Line Fee
11
 
3.3
Collateral Management Fee
11
 
3.4
Computation of Fees; Lawful Limits
11
 
3.5
Default Rate of Interest
12
 
3.6
Acknowledgement of Joint and Several Liability
12
     
IV.
CONDITIONS PRECEDENT
12
 
4.1
Conditions to Closing
12
 
4.2
Conditions to Initial Advance
14
 
4.3
Conditions to Each Advance
15
     
V.
REPRESENTATIONS AND WARRANTIES
16
 
5.1
Organization and Authority
16
 
5.2
Loan Documents
17
 
5.3
Subsidiaries, Capitalization and Ownership Interests
17
 
5.4
Properties
18
 
5.5
Other Agreements
18
 
5.6
Litigation
18
 
5.7
Hazardous Materials
19
 
5.8
Potential Tax Liability; Tax Returns; Governmental Reports
19
 
5.9
Financial Statements and Reports
19
 
5.10
Compliance with Law
20
 
5.11
Intellectual Property
20
 
5.12
Licenses and Permits; Labor
20
 
5.13
No Default
21
 
5.14
Disclosure
21
 

 
 
5.15
Existing Indebtedness; Investments, Guarantees and Certain Contracts
21
 
5.16
Other Agreements
22
 
5.17
Insurance
22
 
5.18
Names; Location of Offices, Records and Collateral
22
 
5.19
Non-Subordination
22
 
5.20
Accounts and Inventory
23
 
5.21
Food and Drug Administration Approvals
24
 
5.22
Product Recalls
24
 
5.23
Foreign Subsidiaries
24
 
5.24
Inactive Subsidiaries
25
 
5.25
Survival
25
     
VI.
AFFIRMATIVE COVENANTS
25
 
6.1
Financial Statements, Borrowing Certificate, Financial Reports and Other Information
25
 
6.2
Payment of Obligations
27
 
6.3
Conduct of Business and Maintenance of Existence and Assets
27
 
6.4
Compliance with Legal and Other Obligations
27
 
6.5
Insurance
28
 
6.6
True Books
28
 
6.7
Inspections; Periodic Audits and Reappraisals
28
 
6.8
Further Assurances; Post Closing
28
 
6.9
Payment of Indebtedness
29
 
6.10
Lien Searches
29
 
6.11
Use of Proceeds
29
 
6.12
Collateral Documents; Security Interest in Collateral
29
 
6.13
Right of First Refusal
30
 
6.14
Taxes and Other Charges
30
 
6.15
Payroll Taxes
31
 
6.16
Inventory Covenants
31
 
6.17
Inactive Subsidiaries
32
     
VII.
NEGATIVE COVENANTS
32
 
7.1
Financial Covenants
32
 
7.2
Permitted Indebtedness
32
 
7.3
Permitted Liens
33
 
7.4
Investments; New Facilities or Collateral; Subsidiaries
33
 
7.5
Dividends; Redemptions
34
 
7.6
Transactions with Affiliates
34
 
7.7
Charter Documents; Fiscal Year; Name; Jurisdiction of Organization; Dissolution; Use of Proceeds
35
 
7.8
Truth of Statements
35
 
7.9
IRS Form 8821
35
 
7.10
Transfer of Assets
35
 
7.11
Payment on Permitted Subordinated Debt
36
 
7.12
Foreign Subsidiaries
36
 
7.13
Inactive Subsidiaries
37
     
VIII.
EVENTS OF DEFAULT
37
     
IX.
RIGHTS AND REMEDIES AFTER DEFAULT
40
 
9.1
Rights and Remedies
40
 

 

 
 
9.2
Application of Proceeds
41
 
9.3
Rights of Lender to Appoint Receiver
42
 
9.4
Rights and Remedies not Exclusive
42
     
X.
WAIVERS AND JUDICIAL PROCEEDINGS
42
 
10.1
Waivers
42
 
10.2
Delay; No Waiver of Defaults
43
 
10.3
Jury Waiver
43
 
10.4
Cooperation in Discovery and Litigation
43
     
XI.
EFFECTIVE DATE AND TERMINATION
44
 
11.1
Termination and Effective Date Thereof
44
 
11.2
Survival
45
     
XII.
MISCELLANEOUS
45
 
12.1
Governing Law; Jurisdiction; Service of Process; Venue

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