as Borrower,
as Administrative Agent, Collateral Agent, Swing Line Lender and Issuer,
HSBC SECURITIES (USA) INC.,
and
JPMORGAN CHASE BANK, N.A.
as Co-Syndication Agents,
as Documentation Agent
JEFFERIES FINANCE LLC,
HSBC SECURITIES (USA) INC.,
CITIGROUP GLOBAL MARKETS INC.
and
J.P. MORGAN SECURITIES INC.
as Joint Lead Arrangers and as Joint Bookrunners
SECTION 1.01. | Defined Terms | 1 | ||||
SECTION 1.02. | Types of Loans and Borrowings | 43 | ||||
SECTION 1.03. | Terms Generally; Currency Translation; Accounting Terms; GAAP | 43 | ||||
SECTION 1.04. | Resolution of Drafting Ambiguities | 44 | ||||
SECTION 1.05. | Letter of Credit Amounts | 44 |
SECTION 2.01. | The Loans | 44 | ||||
SECTION 2.02. | Borrowings, Conversions and Continuations of Loans | 45 | ||||
SECTION 2.03. | Letters of Credit | 46 | ||||
SECTION 2.04. | Swing Line Loans | 54 | ||||
SECTION 2.05. | Prepayments and Repurchase of Loans | 57 | ||||
SECTION 2.06. | Repayment of Loans; Evidence of Debt | 61 | ||||
SECTION 2.07. | Interest Rates and Payment Dates; Default Interest | 62 | ||||
SECTION 2.08. | Computation of Interest and Fees | 62 | ||||
SECTION 2.09. | Fees | 62 | ||||
SECTION 2.10. | Termination or Reduction of Commitments | 63 | ||||
SECTION 2.11. | Inability to Determine Interest Rate; Unavailability of Deposits; Inadequacy of Interest Rate | 63 | ||||
SECTION 2.12. | Payments Generally; Administrative Agent’s Clawback | 64 | ||||
SECTION 2.13. | Illegality | 66 | ||||
SECTION 2.14. | Increased Costs; Reserves on Eurodollar Loans | 66 | ||||
SECTION 2.15. | Taxes | 68 | ||||
SECTION 2.16. | Compensation for Lender Losses | 71 | ||||
SECTION 2.17. | Change of Lending Office | 71 | ||||
SECTION 2.18. | Sharing of Payments by Lenders | 72 | ||||
SECTION 2.19. | Replacement of Lenders Under Certain Circumstances | 72 | ||||
SECTION 2.20. | Notice of Certain Costs | 73 | ||||
SECTION 2.21. | Increase in Commitments | 73 |
SECTION 3.01. | Organization, etc | 75 | ||||
SECTION 3.02. | Due Authorization, Non-Contravention, etc | 76 | ||||
SECTION 3.03. | Government Approval, Regulation, etc | 76 | ||||
SECTION 3.04. | Validity, etc | 76 | ||||
SECTION 3.05. | Financial Information | 76 | ||||
SECTION 3.06. | No Material Adverse Effect | 77 |
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SECTION 3.07. | Litigation | 77 | ||||
SECTION 3.08. | Compliance with Laws and Agreements | 77 | ||||
SECTION 3.09. | Ownership of Subsidiaries | 77 | ||||
SECTION 3.10. | Ownership of Properties | 78 | ||||
SECTION 3.11. | Intellectual Property | 79 | ||||
SECTION 3.12. | Taxes | 79 | ||||
SECTION 3.13. | Pension and Welfare Plans | 79 | ||||
SECTION 3.14. | Environmental | 80 | ||||
SECTION 3.15. | Federal Reserve Regulations | 81 | ||||
SECTION 3.16. | Disclosure; Accuracy of Information; Pro Forma Balance Sheets and Projected Financial Statements | 81 | ||||
SECTION 3.17. | Insurance | 82 | ||||
SECTION 3.18. | Labor Matters | 82 | ||||
SECTION 3.19. | Solvency | 83 | ||||
SECTION 3.20. | Security Documents | 83 | ||||
SECTION 3.21. | Anti-Terrorism Laws | 84 | ||||
SECTION 3.22. | Status as Senior Debt | 85 |
SECTION 4.01. | Effective Date | 85 | ||||
SECTION 4.02. | Conditions to All Credit Extensions | 88 |
SECTION 5.01. | Financial Information, Reports, Notices, etc. | 88 | ||||
SECTION 5.02. | Compliance with Laws, etc. | 91 | ||||
SECTION 5.03. | Maintenance of Properties | 91 | ||||
SECTION 5.04. | Insurance | 91 | ||||
SECTION 5.05. | Books and Records; Visitation Rights; Lender Meetings | 92 | ||||
SECTION 5.06. | Environmental Covenant | 92 | ||||
SECTION 5.07. | Information Regarding Collateral | 93 | ||||
SECTION 5.08. | Existence; Conduct of Business | 94 | ||||
SECTION 5.09. | Performance of Obligations | 94 | ||||
SECTION 5.10. | Casualty and Condemnation | 94 | ||||
SECTION 5.11. | Pledge of Additional Collateral | 94 | ||||
SECTION 5.12. | Further Assurances | 95 | ||||
SECTION 5.13. | Use of Proceeds | 96 | ||||
SECTION 5.14. | Payment of Taxes and Claims | 96 | ||||
SECTION 5.15. | Additional Guarantors | 96 | ||||
SECTION 5.16. | Post-Closing Covenants | 96 | ||||
SECTION 5.17. | Designation of Subsidiaries | 98 |
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SECTION 6.01. | Indebtedness | 99 | ||||
SECTION 6.02. | Liens | 102 | ||||
SECTION 6.03. | Fundamental Changes; Line of Business | 105 | ||||
SECTION 6.04. | Investments, Loans, Advances, Guarantees and Acquisitions | 106 | ||||
SECTION 6.05. | Asset Sales | 109 | ||||
SECTION 6.06. | Sale and Leaseback Transactions | 111 | ||||
SECTION 6.07. | Restricted Payments | 111 | ||||
SECTION 6.08. | Transactions with Affiliates | 112 | ||||
SECTION 6.09. | Restrictive Agreements | 113 | ||||
SECTION 6.10. | Amendments or Waivers of Certain Documents; Prepayments of Certain Indebtedness | 114 | ||||
SECTION 6.11. | Accounting Treatment; Fiscal Year | 115 | ||||
SECTION 6.12. | Fixed Charge Coverage Ratio | 115 | ||||
SECTION 6.13. | Total Leverage Ratio | 115 | ||||
SECTION 6.14. | Hedging Agreements | 116 | ||||
SECTION 6.15. | Assets, Liabilities and Actions of SFC | 116 |
SECTION 7.01. | Listing of Events of Default | 116 | ||||
SECTION 7.02. | Action if Bankruptcy | 118 | ||||
SECTION 7.03. | Action if Other Event of Default | 119 | ||||
SECTION 7.04. | Application of Funds upon Event of Default | 119 |
SECTION 8.01. | Appointment and Authority | 120 | ||||
SECTION 8.02. | Agents Individually | 120 | ||||
SECTION 8.03. | Duties of Agents; Exculpatory Provisions | 121 | ||||
SECTION 8.04. | Reliance by Agents | 122 | ||||
SECTION 8.05. | Delegation of Duties | 122 | ||||
SECTION 8.06. | Resignation of Agents | 123 | ||||
SECTION 8.07. | Non-Reliance on Agents and Other Lenders | 123 | ||||
SECTION 8.08. | No Other Duties, etc | 124 | ||||
SECTION 8.09. | Security Trust Deed | 124 | ||||
SECTION 8.10. | Administrative Agent May File Proofs of Claim | 124 | ||||
SECTION 8.11. | Collateral and Guarantee Matters | 125 | ||||
SECTION 8.12. | Withholding Taxes | 126 |
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SECTION 9.01. | Notices | 126 | ||||
SECTION 9.02. | Survival of Agreement | 128 | ||||
SECTION 9.03. | Binding Effect | 129 | ||||
SECTION 9.04. | Successors and Assigns | 129 | ||||
SECTION 9.05. | Expenses; Indemnity | 132 | ||||
SECTION 9.06. | Right of Setoff | 133 | ||||
SECTION 9.07. | Applicable Law | 134 | ||||
SECTION 9.08. | Waivers; Amendment | 134 | ||||
SECTION 9.09. | Interest Rate Limitation | 137 | ||||
SECTION 9.10. | Entire Agreement | 137 | ||||
SECTION 9.11. | WAIVER OF JURY TRIAL | 137 | ||||
SECTION 9.12. | Severability | 137 | ||||
SECTION 9.13. | Counterparts | 138 | ||||
SECTION 9.14. | Headings | 138 | ||||
SECTION 9.15. | Jurisdiction; Consent to Service of Process | 138 | ||||
SECTION 9.16. | Confidentiality | 138 | ||||
SECTION 9.17. | Posting of Approved Electronic Communications | 139 | ||||
SECTION 9.18. | Treatment of Information | 140 | ||||
SECTION 9.19. | USA PATRIOT Act Notice | 142 | ||||
SECTION 9.20. | Intercreditor Agreement | 142 | ||||
SECTION 9.21. | No Fiduciary Duty | 142 | ||||
SECTION 9.22. | Payments Set Aside | 142 |
EXHIBIT A | Form of Administrative Questionnaire | |
EXHIBIT B-1 | Form of Borrowing Notice | |
EXHIBIT B-2 | Form of Swing Line Loan Notice | |
EXHIBIT C | Form of Assignment and Assumption | |
EXHIBIT D | Form of Compliance Certificate | |
EXHIBIT E | Form of Indemnity, Subrogation and Contribution Agreement | |
EXHIBIT F-1 | Form of Term Note | |
EXHIBIT F-2 | Form of Revolving Credit Note | |
EXHIBIT F-3 | Form of Swing Line Note | |
EXHIBIT G | Form of Closing Certificate | |
EXHIBIT H | Form of Guarantee Agreement | |
EXHIBIT I | Form of Pledge Agreement | |
EXHIBIT J | Form of Security Agreement | |
EXHIBIT K | Form of United States Tax Compliance Certificate | |
EXHIBIT L | Form of Solvency Certificate | |
EXHIBIT M | Form of Lender Participation Notice | |
EXHIBIT N | Form of Letter of Credit Request | |
SCHEDULE 1.01(a) | Immaterial Restricted Subsidiaries | |
SCHEDULE 1.01(b) | Specified Asset Sales | |
SCHEDULE 1.01(d) | Existing Joint Ventures | |
SCHEDULE 1.01(e) | Existing L/Cs | |
SCHEDULE 1.01(f) | Specified Businesses |
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SCHEDULE 2.01 | Lenders and Commitments | |
SCHEDULE 3.05 | Financial Information | |
SCHEDULE 3.09(a) | Subsidiaries | |
SCHEDULE 3.09(b) | Securities | |
SCHEDULE 3.10(b) | Leased and Owned Real Property | |
SCHEDULE 3.14 | Environmental | |
SCHEDULE 3.17 | Insurance | |
SCHEDULE 4.01(f)(i) | Local and Foreign Counsel Jurisdictions (Pledged Equity Interests) | |
SCHEDULE 5.16(a) | Post-Closing Covenants | |
SCHEDULE 5.16(b) | Mortgaged Properties | |
SCHEDULE 6.01(ii) | Existing Indebtedness | |
SCHEDULE 6.02(iv)(A) | Existing Liens | |
SCHEDULE 6.04 | Existing Investments | |
SCHEDULE 6.08 | Transactions with Affiliates | |
SCHEDULE 6.09 | Existing Restrictions |
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Applicable Rate | ||||||||||||||||||
Revolving | Term Loans | |||||||||||||||||
Total Net | Revolving Credit | Credit Loans | that are | Term Loans | ||||||||||||||
Pricing | Leverage | Loans that are | that are Base | Eurodollar | that are Base | |||||||||||||
Level | Ratio | Eurodollar Loans | Rate Loans | Loans | Rate Loans | |||||||||||||
1 | >2.50:1 | 3.50 | % | 2.50 | % | 3.25 | % | 2.25 | % | |||||||||
2 | £2.50:1 | 3.25 | % | 2.25 | % | 3.00 | % | 2.00 | % |
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Date | Ratio | |
March 31, 2010 | 1.35:1.00 | |
June 30, 2010 | 1.35:1.00 | |
September 30, 2010 | 1.35:1.00 | |
December 31, 2010 | 1.35:1.00 | |
March 31, 2011 | 1.55:1.00 | |
June 30, 2011 | 1.55:1.00 | |
September 30, 2011 | 1.55:1.00 | |
December 31, 2011 | 1.55:1.00 | |
March 31, 2012 and the last day of each Fiscal Quarter thereafter | 1.75:1.00 |
Date | Ratio | |
March 31, 2010 | 4.50:1.00 | |
June 30, 2010 | 4.50:1.00 | |
September 30, 2010 | 4.50:1.00 | |
December 31, 2010 | 4.50:1.00 | |
March 31, 2011 | 4.25:1.00 | |
June 30, 2011 | 4.25:1.00 | |
September 30, 2011 | 4.00:1.00 |
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Date | Ratio | |
December 31, 2011 | 4.00:1.00 | |
March 31, 2012 | 3.75:1.00 | |
June 30, 2012 | 3.75:1.00 | |
September 30, 2012 and the last day of each Fiscal Quarter thereafter | 3.50:1.00 |
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575 Maryville Centre Drive
P.O. Box 66760
St. Louis, Missouri 63166-6760
(courier delivers to: 575 Maryville Centre Drive, St. Louis, Missouri 63141)
Attention of: James Tichenor and Paul Berra
Telecopier No.: 314-674-6755
E-Mail Address: jatich@solutia.com and pjberr@solutia.com
Website Address: www.solutia.com
601 Lexington Avenue
New York, New York 10022
Attention of: Ashley Gregory, Esq.
Telecopier No.: 212-446-4900
E-Mail Address: ashley.gregory@kirkland.com
Attn: Erin Morrissey, Leveraged Loan Portfolio
60 Wall Street
New York, New York 10005
Attn: Nino Recko,
5022 Gate Parkway, Suite 200
Jacksonville, Florida 32256
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SOLUTIA INC., as Borrower | ||||
By: | /s/ James M. Sullivan | |||
Name: | James M. Sullivan | |||
Title: | Executive Vice President, Chief Financial Officer and Treasurer |
S-1
DEUTSCHE BANK TRUST COMPANY AMERICAS, as Administrative Agent, Collateral Agent, Swing Line Lender, an Issuer and a Lender | ||||
By: | /s/ Erin Morrissey | |||
Name: | Erin Morrissey | |||
Title: | Vice President | |||
By: | /s/ Carin Keegan | |||
Name: | Carin Keegan | |||
Title: | Director |
S-2
CITIBANK, N.A, as a Lender and an Issuer | ||||
By: | /s/ Kirkwood Roland | |||
Name: | Kirkwood Roland | |||
Title: | Vice President |
S-3
JPMORGAN CHASE BANK, N.A., as a Lender | ||||
By: | /s/ Jennifer Heard | |||
Name: | Jennifer Heard | |||
Title: | Vice President |
S-4
HSBC BANK USA, N.A., as a Lender | ||||
By: | /s/ Jeremy Bollington | |||
Name: | Jeremy Bollington | |||
Title: | Head of Coverage & Client Management Global Banking and Markets |
S-5
JEFFERIES FINANCE LLC, as a Lender | ||||
By: | /s/ E. Joseph Hess | |||
Name: | E. Joseph Hess | |||
Title: | Managing Director |
S-6
FIFTH THIRD BANK, as a Lender | ||||
By: | /s/ Robert M. Sander | |||
Name: | Robert M. Sander | |||
Title: | Vice President |
S-7
GE CAPITAL COMMERCIAL INC., as a Lender | ||||
By: | /s/ Stephen F. Schroppe | |||
Name: | Stephen F. Schroppe | |||
Title: | Duly Authorized Signatory |
S-8
THE NORTHERN TRUST COMPANY, as a Lender | ||||
By: | /s/ Laurie Kieta | |||
Name: | Laurie Kieta | |||
Title: | Vice President | |||
S-9