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Title:

Credit Agreement

Entities:

Bank of Ireland; Bank of Nova Scotia; Citicorp North America, Inc.; Commerzbank AG; Constellation Brands Inc.; Fleet National Bank; J.P. Morgan Securities Inc.; JPMorgan Chase Bank; LaSalle Bank, NA; McGraw-Hill Companies Inc.; National City Bank; Raymond James Bank; Wachovia Bank, NA; Wells Fargo Bank, NA; Bank of America, NA; Bank of New York; Clayton Utz; McDermott, Will & Emery; Milbank, Tweed, Hadley & McCloy; Nixon Peabody LLP

Date:

2004

Size:

Preview shows 50KB of 416KB total

Price:

$99

ID:

#879966

 

 

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CREDIT AGREEMENT

 

dated as of

 

December 22, 2004

 

Between

 

CONSTELLATION BRANDS, INC.,

 

The SUBSIDIARY GUARANTORS Party Hereto,

 

The LENDERS Party Hereto

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

as Syndication Agent

 

J.P. MORGAN SECURITIES INC.,

as Sole Lead Arranger and Bookrunner

 

and

 

BANK OF AMERICA, N.A.,

SUNTRUST BANK,

and

THE BANK OF NOVA SCOTIA

as Co-Documentation Agents

 

U.S.$2,900,000,000


TABLE OF CONTENTS

 

        Page

ARTICLE I    
DEFINITIONS    

SECTION 1.01.

  Defined Terms   1

SECTION 1.02.

  Classification of Loans and Borrowings   32

SECTION 1.03.

  Terms Generally   32

SECTION 1.04.

  Accounting Terms; GAAP   32

SECTION 1.05.

  Currency Equivalents   32
ARTICLE II    
THE CREDITS    

SECTION 2.01.

  The Commitments   33

SECTION 2.02.

  Loans and Borrowings.   35

SECTION 2.03.

  Requests for Borrowings   36

SECTION 2.04.

  Swingline Loans.   37

SECTION 2.05.

  Letters of Credit.   38

SECTION 2.06.

  Funding of Borrowings.   45

SECTION 2.07.

  Interest Elections.   45

SECTION 2.08.

  Termination and Reduction of the Commitments.   47

SECTION 2.09.

  Repayment of Loans; Evidence of Debt.   48

SECTION 2.10.

  Prepayment of Loans.   51

SECTION 2.11.

  Fees.   56

SECTION 2.12.

  Interest.   58

SECTION 2.13.

  Alternate Rate of Interest   59

SECTION 2.14.

  Increased Costs.   59

SECTION 2.15.

  Break Funding Payments   60

SECTION 2.16.

  Taxes.   61

SECTION 2.17.

  Payments Generally; Pro Rata Treatment; Sharing of Set-offs.   63

SECTION 2.18.

  Mitigation Obligations; Replacement of Lenders.   65
ARTICLE III    
GUARANTEE    

SECTION 3.01.

  The Guarantee   65

SECTION 3.02.

  Obligations Unconditional   66

SECTION 3.03.

  Reinstatement   71

SECTION 3.04.

  Subrogation   71

SECTION 3.05.

  Remedies   71

SECTION 3.06.

  Instrument for the Payment of Money   72

SECTION 3.07.

  Continuing Guarantee   72

 

- i -


SECTION 3.08.

  Rights of Contribution   72

SECTION 3.09.

  General Limitation on Guarantee Obligations   73

SECTION 3.10.

  Borrower Guarantee with Respect to Hedging Agreements   73
ARTICLE IV    
REPRESENTATIONS AND WARRANTIES    

SECTION 4.01.

  Organization; Powers   74

SECTION 4.02.

  Authorization; Enforceability   74

SECTION 4.03.

  Governmental Approvals; No Conflicts   74

SECTION 4.04.

  Financial Condition; No Material Adverse Change.   75

SECTION 4.05.

  Properties.   75

SECTION 4.06.

  Litigation.   75

SECTION 4.07.

  Environmental Matters   76

SECTION 4.08.

  Compliance with Laws and Agreements   78

SECTION 4.09.

  Investment and Holding Company Status   78

SECTION 4.10.

  Taxes   78

SECTION 4.11.

  ERISA   78

SECTION 4.12.

  Disclosure   78

SECTION 4.13.

  Use of Credit   79

SECTION 4.14.

  Capitalization   79

SECTION 4.15.

  Subsidiaries and Investments.   79

SECTION 4.16.

  Solvency   79
ARTICLE V    
CONDITIONS    

SECTION 5.01.

  Effective Date   80

SECTION 5.02.

  Each Credit Event   84
ARTICLE VI    
AFFIRMATIVE COVENANTS    

SECTION 6.01.

  Financial Statements and Other Information   84

SECTION 6.02.

  Notices of Material Events   86

SECTION 6.03.

  Existence; Conduct of Business   87

SECTION 6.04.

  Payment of Obligations   87

SECTION 6.05.

  Maintenance of Properties; Insurance   87

SECTION 6.06.

  Books and Records; Inspection Rights   87

SECTION 6.07.

  Compliance with Laws   87

SECTION 6.08.

  Use of Proceeds   88

SECTION 6.09.

  Certain Obligations Respecting Subsidiaries.   88

SECTION 6.10.

  Commitment Letter   91

 

- ii -



 
ARTICLE VII    
NEGATIVE COVENANTS    

SECTION 7.01.

  Indebtedness   91

SECTION 7.02.

  Liens   94

SECTION 7.03.

  Fundamental Changes   95

SECTION 7.04.

  Disposition of Property   97

SECTION 7.05.

  Acquisition of Property   97

SECTION 7.06.

  Investments   98

SECTION 7.07.

  Restricted Payments.   99

SECTION 7.08.

  Transactions with Affiliates   101

SECTION 7.09.

  Certain Restrictions.   101

SECTION 7.10.

  Certain Financial Covenants.   102

SECTION 7.11.

  Subordinated Indebtedness.   103

SECTION 7.12.

  Senior Unsecured Indebtedness.   104

SECTION 7.13.

  Modifications of Certificate of Incorporation.   104

SECTION 7.14.

  Specified Mondavi Entities.   104
ARTICLE VIII    
EVENTS OF DEFAULT    
ARTICLE IX    
THE ADMINISTRATIVE AGENT    
ARTICLE X    
MISCELLANEOUS    

SECTION 10.01.

  Notices   111

SECTION 10.02.

  Waivers; Amendments.   111

SECTION 10.03.

  Expenses; Indemnity; Damage Waiver.   113

SECTION 10.04.

  Successors and Assigns.   115

SECTION 10.05.

  Survival   119

SECTION 10.06.

  Counterparts; Integration; Effectiveness   119

SECTION 10.07.

  Severability   119

SECTION 10.08.

  Right of Setoff   119

SECTION 10.09.

  Governing Law; Jurisdiction; Etc.   120

SECTION 10.10.

  WAIVER OF JURY TRIAL   120

SECTION 10.11.

  Headings   121

SECTION 10.12.

  Treatment of Certain Information; Disclosure.   121

SECTION 10.13.

  Credit Agreement under Indentures; Existing Credit Agreement.   122

SECTION 10.14.

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