as Borrower,
as Administrative Agent and as Collateral Agent,
as Syndication Agent,
as Documentation Agent,
GOLDMAN SACHS CREDIT PARTNERS L.P. and
DEUTSCHE BANK SECURITIES INC.,
as Joint Lead Arrangers and as Joint Bookrunners
Page | ||||||
ARTICLE I | ||||||
DEFINITIONS | ||||||
SECTION 1.01. | Defined Terms | 1 | ||||
SECTION 1.02. | Types of Loans and Borrowings | 37 | ||||
SECTION 1.03. | Terms Generally; Currency Translation; Accounting Terms; GAAP | 37 | ||||
SECTION 1.04. | Resolution of Drafting Ambiguities | 38 | ||||
ARTICLE II | ||||||
THE CREDITS | ||||||
SECTION 2.01. | Commitments | 39 | ||||
SECTION 2.02. | Procedure for Borrowing | 39 | ||||
SECTION 2.03. | Conversion and Continuation Options for Loans | 40 | ||||
SECTION 2.04. | Optional and Mandatory Prepayments of Loans; Repayments of Loans | 40 | ||||
SECTION 2.05. | Repayment of Loans; Evidence of Debt | 43 | ||||
SECTION 2.06. | Interest Rates and Payment Dates; Default Interest | 43 | ||||
SECTION 2.07. | Computation of Interest | 44 | ||||
SECTION 2.08. | Agent Fees | 44 | ||||
SECTION 2.09. | Termination of Commitments | 44 | ||||
SECTION 2.10. | Inability to Determine Interest Rate; Unavailability of Deposits; Inadequacy of Interest Rate | 44 | ||||
SECTION 2.11. | Pro Rata Treatment and Payments | 45 | ||||
SECTION 2.12. | Illegality | 46 | ||||
SECTION 2.13. | Requirements of Law | 46 | ||||
SECTION 2.14. | Taxes | 47 | ||||
SECTION 2.15. | Indemnity | 50 | ||||
SECTION 2.16. | Change of Lending Office | 50 | ||||
SECTION 2.17. | Sharing of Setoffs | 50 | ||||
SECTION 2.18. | Assignment of Commitments Under Certain Circumstances | 51 | ||||
SECTION 2.19. | Notice of Certain Costs | 51 | ||||
ARTICLE III | ||||||
REPRESENTATIONS AND WARRANTIES | ||||||
SECTION 3.01. | Organization, etc. | 52 | ||||
SECTION 3.02. | Due Authorization, Non-Contravention, etc. | 52 | ||||
SECTION 3.03. | Government Approval, Regulation, etc. | 53 | ||||
SECTION 3.04. | Validity, etc. | 53 | ||||
SECTION 3.05. | Financial Information | 53 | ||||
SECTION 3.06. | No Material Adverse Effect | 54 | ||||
SECTION 3.07. | Litigation | 54 |
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Page | ||||||||||
SECTION 3.08. | Compliance with Laws and Agreements | 54 | ||||||||
SECTION 3.09. | Ownership of Subsidiaries | 54 | ||||||||
SECTION 3.10. | Ownership of Properties | 55 | ||||||||
SECTION 3.11. | Intellectual Property | 56 | ||||||||
SECTION 3.12. | Taxes | 56 | ||||||||
SECTION 3.13. | Pension and Welfare Plans | 56 | ||||||||
SECTION 3.14. | Environmental | 57 | ||||||||
SECTION 3.15. | Federal Reserve Regulations | 58 | ||||||||
SECTION 3.16. | Disclosure; Accuracy of Information; Pro Forma Balance Sheets and Projected Financial Statements | 59 | ||||||||
SECTION 3.17. | Insurance | 60 | ||||||||
SECTION 3.18. | Labor Matters | 60 | ||||||||
SECTION 3.19. | Solvency | 60 | ||||||||
SECTION 3.20. | Consummation of the Reorganization Plan and Related Agreements | 61 | ||||||||
SECTION 3.21. | Security Documents | 61 | ||||||||
SECTION 3.22. | Use of Proceeds | 62 | ||||||||
SECTION 3.23. | Anti-Terrorism Laws | 62 | ||||||||
SECTION 3.24. | Status as Senior Debt | 63 | ||||||||
ARTICLE IV | ||||||||||
CONDITIONS | ||||||||||
SECTION 4.01. | Effective Date | 63 | ||||||||
SECTION 4.02. | Conditions to Each Borrowing | 69 | ||||||||
ARTICLE V | ||||||||||
AFFIRMATIVE COVENANTS | ||||||||||
SECTION 5.01. | Financial Information, Reports, Notices, etc. | 70 | ||||||||
SECTION 5.02. | Compliance with Laws, etc. | 72 | ||||||||
SECTION 5.03. | Maintenance of Properties | 73 | ||||||||
SECTION 5.04. | Insurance | 73 | ||||||||
SECTION 5.05. | Books and Records; Visitation Rights; Lender Meetings | 74 | ||||||||
SECTION 5.06. | Environmental Covenant | 74 | ||||||||
SECTION 5.07. | Information Regarding Collateral | 75 | ||||||||
SECTION 5.08. | Existence; Conduct of Business | 75 | ||||||||
SECTION 5.09. | Performance of Obligations | 76 | ||||||||
SECTION 5.10. | Casualty and Condemnation | 76 | ||||||||
SECTION 5.11. | Pledge of Additional Collateral | �� | 76 | |||||||
SECTION 5.12. | Further Assurances | 77 | ||||||||
SECTION 5.13. | Use of Proceeds | 77 | ||||||||
SECTION 5.14. | Payment of Taxes and Claims | 77 | ||||||||
SECTION 5.15. | Additional Guarantors | 78 | ||||||||
SECTION 5.16. | Interest Rate Protection | 78 | ||||||||
SECTION 5.17. | Post-Closing Covenants | 78 | ||||||||
SECTION 5.18. | Designation of Subsidiaries | 78 | ||||||||
SECTION 5.19. | Permitted Restructuring | 79 | ||||||||
SECTION 5.20. | Certain Properties | 79 |
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Page | ||||||
ARTICLE VI | ||||||
NEGATIVE COVENANTS | ||||||
SECTION 6.01. | Indebtedness | 80 | ||||
SECTION 6.02. | Liens | 83 | ||||
SECTION 6.03. | Fundamental Changes; Line of Business | 87 | ||||
SECTION 6.04. | Investments, Loans, Advances, Guarantees and Acquisitions | 87 | ||||
SECTION 6.05. | Asset Sales | 90 | ||||
SECTION 6.06. | Sale and Leaseback Transactions | 91 | ||||
SECTION 6.07. | Restricted Payments | 92 | ||||
SECTION 6.08. | Transactions with Affiliates | 92 | ||||
SECTION 6.09. | Restrictive Agreements | 93 | ||||
SECTION 6.10. | Amendments or Waivers of Certain Documents; Prepayments of Certain Indebtedness | 94 | ||||
SECTION 6.11. | Accounting Treatment; Fiscal Year | 94 | ||||
SECTION 6.12. | Fixed Charge Coverage Ratio | 94 | ||||
SECTION 6.13. | Total Leverage Ratio | 95 | ||||
SECTION 6.14. | Capital Expenditures | 96 | ||||
SECTION 6.15. | Hedging Agreements | 96 | ||||
SECTION 6.16. | Assets, Liabilities and Actions of SFC. | 97 | ||||
ARTICLE VII | ||||||
EVENTS OF DEFAULT | ||||||
SECTION 7.01. | Listing of Events of Default | 97 | ||||
SECTION 7.02. | Action if Bankruptcy | 99 | ||||
SECTION 7.03. | Action if Other Event of Default | 99 | ||||
ARTICLE VIII | ||||||
THE AGENTS | ||||||
SECTION 8.01. | Appointment and Authority | 100 | ||||
SECTION 8.02. | Agents Individually | 100 | ||||
SECTION 8.03. | Duties of Agents; Exculpatory Provisions | 101 | ||||
SECTION 8.04. | Reliance by Agents | 102 | ||||
SECTION 8.05. | Delegation of Duties | 102 | ||||
SECTION 8.06. | Resignation of Agents | 102 | ||||
SECTION 8.07. | Non-Reliance on Agents and Other Lenders | 103 | ||||
SECTION 8.08. | No Other Duties, etc | 104 | ||||
SECTION 8.09. | Security Trust Deed | 104 | ||||
ARTICLE IX | ||||||
MISCELLANEOUS | ||||||
SECTION 9.01. | Notices | 104 | ||||
SECTION 9.02. | Survival of Agreement | 106 |
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SECTION 9.03. | Binding Effect | 106 | ||||
SECTION 9.04. | Successors and Assigns | 106 | ||||
SECTION 9.05. | Expenses; Indemnity | 109 | ||||
SECTION 9.06. | Right of Setoff | 110 | ||||
SECTION 9.07. | Applicable Law | 111 | ||||
SECTION 9.08. | Waivers; Amendment | 111 | ||||
SECTION 9.09. | Interest Rate Limitation | 113 | ||||
SECTION 9.10. | Entire Agreement | 114 | ||||
SECTION 9.11. | WAIVER OF JURY TRIAL | 114 | ||||
SECTION 9.12. | Severability | 114 | ||||
SECTION 9.13. | Counterparts | 114 | ||||
SECTION 9.14. | Headings | 114 | ||||
SECTION 9.15. | Jurisdiction; Consent to Service of Process | 114 | ||||
SECTION 9.16. | Confidentiality | 115 | ||||
SECTION 9.17. | Posting of Approved Electronic Communications | 116 | ||||
SECTION 9.18. | Treatment of Information | 117 | ||||
SECTION 9.19. | USA PATRIOT Act Notice | 118 | ||||
SECTION 9.20. | Intercreditor Agreement | 118 | ||||
SECTION 9.21. | No Fiduciary Duty | 119 |
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EXHIBIT A | Form of Administrative Questionnaire | |
EXHIBIT B | Form of Borrowing Request | |
EXHIBIT C | Form of Assignment and Assumption | |
EXHIBIT D | Form of Compliance Certificate | |
EXHIBIT E | Form of Indemnity, Subrogation and Contribution Agreement | |
EXHIBIT F | Form of 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 Exemption Certificate | |
EXHIBIT L | Form of Solvency Certificate | |
EXHIBIT M | Form of Mortgage | |
SCHEDULE 1.01(a) | Immaterial Restricted Subsidiaries | |
SCHEDULE 1.01(b) | Permitted Restructuring | |
SCHEDULE 1.01(c) | Specified Asset Sales | |
SCHEDULE 1.01(d) | Existing Joint Ventures | |
SCHEDULE 2.01 | Lenders and Commitments | |
SCHEDULE 3.05 | Financial Information | |
SCHEDULE 3.09(a) | Subsidiaries | |
SCHEDULE 3.09(b) | Securities | |
SCHEDULE 3.10(a) | Options, Rights of First Refusal, Etc. | |
SCHEDULE 3.10(b) | Leased and Owned Real Property | |
SCHEDULE 3.17 | Insurance | |
SCHEDULE 4.01(f)(i) | Local and Foreign Counsel Jurisdictions (Pledged Equity Interests) | |
SCHEDULE 4.01(f)(ii) | Local and Foreign Counsel Jurisdictions (Non-U.S. Pledge Agreements and Security Documents) | |
SCHEDULE 4.01(u) | Initial Mortgaged Properties | |
SCHEDULE 4.01(u)(C) | Title Insurance Amounts | |
SCHEDULE 5.17(a) | Post-Closing Covenants | |
SCHEDULE 5.17(b) | Post-Closing Covenants | |
SCHEDULE 5.19 | Permitted Restructuring Conditions | |
SCHEDULE 5.20 | Certain Properties | |
SCHEDULE 6.01(ii)(A) | Existing Indebtedness | |
SCHEDULE 6.01(ii)(B) | Existing Indebtedness | |
SCHEDULE 6.01(xxi) | Intercompany Notes | |
SCHEDULE 6.02(iv)(A) | Existing Liens | |
SCHEDULE 6.02(iv)(B) | Existing Liens | |
SCHEDULE 6.02(xxvi) | Title Policy Exclusions | |
SCHEDULE 6.04 | Existing Investments | |
SCHEDULE 6.09 | Existing Restrictions |
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Date | Ratio | |||
September 30, 2008 | 1.00:1.00 | |||
December 31, 2008 | 1.05:1.00 | |||
March 31, 2009 | 1.15:1.00 | |||
June 30, 2009 | 1.15:1.00 | |||
September 30, 2009 | 1.15:1.00 | |||
December 31, 2009 | 1.15:1.00 | |||
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 | |||
June 30, 2008 | 5.50:1.00 | |||
September 30, 2008 | 5.25:1.00 | |||
December 31, 2008 | 5.00:1.00 | |||
March 31, 2009 | 4.75:1.00 | |||
June 30, 2009 | 4.50:1.00 | |||
September 30, 2009 | 4.25:1.00 | |||
December 31, 2009 | 4.25:1.00 | |||
March 31, 2010 | 3.75:1.00 | |||
June 30, 2010 | 3.75:1.00 | |||
September 30, 2010 | 3.75:1.00 | |||
December 31, 2010 | 3.75:1.00 |
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Date | Ratio | |||
March 31, 2011 | 3.50:1.00 | |||
June 30, 2011 | 3.50:1.00 | |||
September 30, 2011 | 3.50:1.00 | |||
December 31, 2011 | 3.50:1.00 | |||
March 31, 2012 and the last day of each Fiscal Quarter thereafter | 3.00:1.00 |
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(i) | if to the Borrower or any other Loan Party, |
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 Rosemary Klein
Telecopier No.: 314-674-2721
E-Mail Address:
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(ii) | if to the Administrative Agent, |
2 Penn’s Way
New Castle, DE 19720
Attention of: Brenna Makin
Telecopier No.: 212-994-0849
E-Mail Address: Brenna.Makin@citi.com
(iii) | if to the Collateral Agent, |
2 Penn’s Way
New Castle, DE 19720
Attention of: Brenna Makin
Telecopier No.: 212-994-0849
E-Mail Address: Brenna.Makin@citi.com
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SOLUTIA INC., as Borrower | ||||
By: | /s/ James A. Tichenor | |||
Name: | James A Tichenor | |||
Title: | Authorized Officer | |||
S -1
CITIBANK, N.A., as Administrative Agent and Collateral Agent and as a Lender | ||||
By: | /a/ Aaron Dannenberg | |||
Name: | Aaron Dannenberg | |||
Title: | Vice President |
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CITIGROUP GLOBAL MARKETS INC., as a Joint Lead Arranger and Bookrunner | ||||
By: | /s/ Aaron Dannenberg | |||
Name: | Aaron Dannenberg | |||
Title: | Vice President |
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GOLDMAN SACHS CREDIT PARTNERS L.P., as Syndication Agent, as a Joint Lead Arranger and Bookrunner and as a Lender | ||||
By: | /s/ Walter A. Jackson | |||
Name: | Walter A. Jackson | |||
Title: | Authorized Signatory |
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DEUTSCHE BANK AG, NEW YORK BRANCH, as Documentation Agent | ||||
By: | /s/ Mark B. Cohen | |||
Name: | Mark B. Cohen | |||
Title: | Managing Director | |||
By: | /s/ Marguerite Sutton | |||
Name: | Marguerite Sutton | |||
Title: | Director | |||
DEUTSCHE BANK SECURITIES INC., as a Joint Lead Arranger and Bookrunner | ||||
By: | /s/ Kevin Sherlock | |||
Name: | Kevin Sherlock | |||
Title: | Managing Director | |||
By: | /s/ Martin Arzac | |||
Name: | Martin Arzac | |||
Title: | Director |
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GERMAN AMERICAN CAPITAL CORPORATION as Lender | ||||
By: | /s/ Mark B. Cohen | |||
Name: | Mark B. Cohen | |||
Title: | Managing Director | |||
By: | /s/ Jeffrey Lehocky | |||
Name: | Jeffrey Lehocky | |||
Title: | Managing Director | |||
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