as Borrower,
as Parent and a Guarantor,
as Guarantors,
as Sole Lead Arranger, Sole Bookrunner and Syndication Agent,
as Administrative Agent and Collateral Agent
Page | ||||
SECTION 1. DEFINITIONS AND INTERPRETATION | ||||
1.1 Definitions | 2 | |||
1.2 Accounting Terms | 35 | |||
1.3 Interpretation, etc. | 35 | |||
1.4 Currency Matters | 36 | |||
1.5 Pro Forma Transactions | 36 | |||
1.6 Effect of this Agreement on the Original Credit Agreement and Other Original Credit Documents | 36 | |||
SECTION 2. LOANS AND LETTERS OF CREDIT | ||||
2.1 Term Loans | 36 | |||
2.2 Revolving Loans | 37 | |||
2.3 Swing Line Loans | 38 | |||
2.4 Issuance of Letters of Credit and Purchase of Participations Therein | 40 | |||
2.5 Pro Rata Shares; Availability of Funds | 44 | |||
2.6 Use of Proceeds | 44 | |||
2.7 Evidence of Debt; Register; Lenders’ Books and Records; Notes | 45 | |||
2.8 Interest on Loans | 45 | |||
2.9 Conversion/Continuation | 47 | |||
2.10 Default Interest | 47 | |||
2.11 Fees | 48 | |||
2.12 Mandatory Term Loan Commitment Reductions | 49 | |||
2.13 Voluntary Prepayments/Commitment Reductions | 49 | |||
2.14 Mandatory Prepayments | 50 | |||
2.15 Application of Prepayments | 52 | |||
2.16 General Provisions Regarding Payments | 52 | |||
2.17 Ratable Sharing | 53 | |||
2.18 Making or Maintaining Eurodollar Rate Loans | 54 | |||
2.19 Increased Costs; Capital Adequacy | 55 | |||
2.20 Taxes; Withholding, etc. | 57 | |||
2.21 Obligation to Mitigate | 59 | |||
2.22 Defaulting Lenders | 60 | |||
2.23 Removal or Replacement of a Lender | 61 | |||
2.24 Interest Act (Canada) | 62 | |||
2.25 Incremental Facilities | 62 | |||
SECTION 3. CONDITIONS PRECEDENT | ||||
3.1 Restatement Date | 63 | |||
3.2 First Credit Date | 65 | |||
3.3 Conditions to Each Credit Extension | 65 | |||
3.4 Conditions to the Term Loan Borrowings | 66 | |||
SECTION 4. REPRESENTATIONS AND WARRANTIES |
Page | ||||
4.1 Organization; Requisite Power and Authority; Qualification | 67 | |||
4.2 Equity Interests and Ownership | 67 | |||
4.3 Due Authorization | 67 | |||
4.4 No Conflict | 67 | |||
4.5 Governmental Consents | 67 | |||
4.6 Binding Obligation | 68 | |||
4.7 Historical Financial Statements | 68 | |||
4.8 Projections | 68 | |||
4.9 No Material Adverse Change | 68 | |||
4.10 Adverse Proceedings, etc. | 68 | |||
4.11 Payment of Taxes | 68 | |||
4.12 Properties | 69 | |||
4.13 Environmental Matters | 69 | |||
4.14 No Defaults | 70 | |||
4.15 Governmental Regulation | 70 | |||
4.16 Employee Matters | 70 | |||
4.17 Employee Benefit Plans | 71 | |||
4.18 Canadian Employee Benefit Plans | 71 | |||
4.19 Solvency | 72 | |||
4.20 Compliance with Statutes, etc | 72 | |||
4.21 Disclosure | 72 | |||
4.22 PATRIOT Act and PCTFA | 72 | |||
4.23 Creation, Perfection, etc. | 73 | |||
4.24 Senior Indebtedness | 73 | |||
4.25 OFAC Matters | 73 | |||
SECTION 5. AFFIRMATIVE COVENANTS | ||||
5.1 Financial Statements and Other Reports | 73 | |||
5.2 Existence | 77 | |||
5.3 Payment of Taxes and Claims | 77 | |||
5.4 Maintenance of Properties | 77 | |||
5.5 Insurance | 78 | |||
5.6 Books and Records; Inspections | 78 | |||
5.7 [Reserved] | 78 | |||
5.8 Compliance with Laws | 78 | |||
5.9 Environmental | 79 | |||
5.10 Subsidiaries | 80 | |||
5.11 Additional Material Real Estate Assets | 82 | |||
5.12 [Reserved] | 82 | |||
5.13 Further Assurances | 82 | |||
5.14 Maintenance of Ratings | 82 | |||
5.15 Post-Closing Matters | 82 | |||
5.16 Canadian Employee Benefit Plans | 83 | |||
5.17 Cooperation | ||||
SECTION 6. NEGATIVE COVENANTS |
-2-
Page | ||||
6.1 Indebtedness | 83 | |||
6.2 Liens | 86 | |||
6.3 No Further Negative Pledges | 89 | |||
6.4 Restricted Junior Payments | 89 | |||
6.5 Restrictions on Subsidiary Distributions | 90 | |||
6.6 Investments | 91 | |||
6.7 Leverage Ratio | 92 | |||
6.8 Fundamental Changes; Disposition of Assets; Acquisitions | 92 | |||
6.9 Disposal of Subsidiary Interests | 95 | |||
6.10 Sales and Leasebacks | 95 | |||
6.11 Transactions with Shareholders and Affiliates | 95 | |||
6.12 Conduct of Business | 95 | |||
6.13 Amendments or Waivers with Respect to Subordinated Indebtedness | 95 | |||
6.14 Amendments or Waivers of Organizational Documents | 96 | |||
6.15 Fiscal Year | 96 | |||
6.16 Specified Subsidiary Dispositions | 96 | |||
6.17 Biovail Insurance | 96 | |||
6.18 Establishment of Defined Benefit Plan | 96 | |||
6.19 After-Acquired Liens/Additional Guarantors | 96 | |||
SECTION 7. GUARANTY | ||||
7.1 Guaranty of the Obligations | 97 | |||
7.2 Contribution by Guarantors | 97 | |||
7.3 Payment by Guarantors | 97 | |||
7.4 Liability of Guarantors Absolute | 97 | |||
7.5 Waivers by Guarantors | 99 | |||
7.6 Guarantors’ Rights of Subrogation, Contribution, etc. | 99 | |||
7.7 Subordination of Other Obligations | 100 | |||
7.8 Continuing Guaranty | 100 | |||
7.9 Authority of Guarantors or Borrower | 100 | |||
7.10 Financial Condition of Borrower | 100 | |||
7.11 Bankruptcy, etc. | 101 | |||
7.12 Discharge of Guaranty upon Sale of Guarantor | 101 | |||
SECTION 8. EVENTS OF DEFAULT | ||||
8.1 Events of Default | 102 | |||
SECTION 9. AGENTS | ||||
9.1 Appointment of Agents | 104 | |||
9.2 Powers and Duties | 105 | |||
9.3 General Immunity | 105 | |||
9.4 Agents Entitled to Act as Lender | 106 | |||
9.5 Lenders’ Representations, Warranties and Acknowledgment | 106 | |||
9.6 Right to Indemnity | 107 | |||
9.7 Successor Administrative Agent, Collateral Agent and Swing Line Lender | 107 | |||
9.8 Collateral Documents and Guaranty | 109 |
-3-
Page | ||||
9.9 Withholding Taxes | 110 | |||
9.10 Quebec Security | 110 | |||
SECTION 10. MISCELLANEOUS | ||||
10.1 Notices | 111 | |||
10.2 Expenses | 112 | |||
10.3 Indemnity | 113 | |||
10.4 Set-Off | 114 | |||
10.5 Amendments and Waivers | 114 | |||
10.6 Successors and Assigns; Participations | 116 | |||
10.7 Independence of Covenants | 120 | |||
10.8 Survival of Representations, Warranties and Agreements | 120 | |||
10.9 No Waiver; Remedies Cumulative | 120 | |||
10.10 Marshalling; Payments Set Aside | 120 | |||
10.11 Severability | 120 | |||
10.12 Obligations Several; Independent Nature of Lenders’ Rights | 121 | |||
10.13 Headings | 121 | |||
10.14 APPLICABLE LAW | 121 | |||
10.15 CONSENT TO JURISDICTION | 121 | |||
10.16 WAIVER OF JURY TRIAL | 122 | |||
10.17 Confidentiality | 122 | |||
10.18 Usury Savings Clause | 123 | |||
10.19 Counterparts | 123 | |||
10.20 Effectiveness; Entire Agreement | 123 | |||
10.21 PATRIOT Act; PCTFA | 123 | |||
10.22 Electronic Execution of Assignments | 124 | |||
10.23 No Fiduciary Duty | 124 | |||
10.24 Judgment Currency | 124 | |||
10.25 Joint and Several Liability | 125 | |||
10.26 Advice of Counsel; No Strict Construction | 125 | |||
10.27 Day Not a Business Day | 125 | |||
10.28 Limitations Act, 2002 | 125 |
-4-
APPENDICES: | A-1 A-2 B | Revolving Commitments Term Loan Commitments Notice Addresses | ||||
SCHEDULES: | 1.1(b) | Restatement Date Guarantors | ||||
3.1(e)(i) | Mortgaged Properties | |||||
4.1 | Jurisdictions of Organization and Qualification | |||||
4.2 | Equity Interests and Ownership | |||||
4.12 | Real Estate Assets | |||||
4.18 | Certain Defined Benefit Plans | |||||
5.10(a) | Barbados Security Documents | |||||
5.10(b) | Quebec Security Documents | |||||
5.15 | Post-Closing Matters | |||||
6.1 | Certain Indebtedness | |||||
6.2 | Certain Liens | |||||
6.3 | Certain Negative Pledges | |||||
6.5 | Certain Restrictions on Subsidiary Distributions | |||||
6.6 | Certain Investments | |||||
6.8 | Certain Permitted Acquisitions and Asset Sales | |||||
6.11 | Certain Affiliate Transactions | |||||
EXHIBITS: | A-1 | Funding Notice | ||||
A-2 | Conversion/Continuation Notice | |||||
B-1 | Revolving Loan Note | |||||
B-2 | Swing Line Note | |||||
B-3 | Term Loan Note | |||||
C | Compliance Certificate | |||||
D | Assignment Agreement | |||||
E | Certificate re Non-Bank Status | |||||
F-1 | Restatement Date Certificate | |||||
F-2 | Solvency Certificate | |||||
G | Counterpart Agreement | |||||
H-1 | Form of Canadian Guarantee | |||||
H-2 | Form of Barbados Guarantee | |||||
I-1 | Form of Pledge and Security Agreement | |||||
I-2 | Form of Canadian Pledge and Security Agreement | |||||
J-1 | Intercompany Note | |||||
J-2 | Subordination Agreement | |||||
K | [Reserved] | |||||
L | Contribution Agreement | |||||
M | Collateral Questionnaire |
-2-
-3-
-4-
-5-
-6-
-7-
-8-
-9-
-10-
-11-
-12-
-13-
-14-
-15-
-16-
-17-
-18-
-19-
-20-
-21-
-22-
-23-
-24-
-25-
-26-
-27-
-28-
-29-
-30-
-31-
-32-
-33-
-34-
-35-
-36-
-37-
-38-
-39-
-40-
-41-
-42-
-43-
-44-
(i) | in the case of Revolving Loans: |
• | if a Base Rate Loan, at the Base Rateplus the Applicable Margin; or | ||
• | if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rateplus the Applicable Margin; |
(ii) | in the case of Swing Line Loans, at the Base Rateplus the Applicable Margin; and |
-45-
(iii) | in the case of Term Loans: |
• | if a Base Rate Loan, at the Base Rate plus the Applicable Margin; or | ||
• | if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rateplus the Applicable Margin. |
-46-
-47-
-48-
(a) | Voluntary Prepayments. | ||
(i) | Any time and from time to time: |
• | with respect to Base Rate Loans, Borrower may prepay any such Loans on any Business Day in whole or in part (in the case of a partial prepayment, in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount); | ||
• | with respect to Eurodollar Rate Loans, Borrower may prepay any such Loans on any Business Day in whole or in part (in the case of a partial prepayment, in an aggregate minimum amount of $5,000,000 and integral multiples of $1,000,000 in excess of that amount); and | ||
• | with respect to Swing Line Loans, Borrower may prepay any such Loans on any Business Day in whole or in part (in the case of a partial prepayment, in an aggregate minimum amount of $500,000, and in integral multiples of $100,000 in excess of that amount). |
(ii) | All such prepayments shall be made: |
• | upon not less than one Business Day’s prior written or telephonic notice in the case of Base Rate Loans; | ||
• | upon not less than three Business Days’ prior written or telephonic notice in the case of Eurodollar Rate Loans; and | ||
• | upon written or telephonic notice on the date of prepayment, in the case of Swing Line Loans; |
-49-
-50-
-51-
first, to repay the Term Loans, if any; | ||
second, to repay outstanding Swing Line Loans to the full extent thereof; and | ||
third, to repay outstanding Revolving Loans to the full extent thereof. |
first, to prepay Term Loans, if any; | ||
second, to prepay the Swing Line Loans to the full extent thereof; | ||
third, to prepay the Revolving Loans to the full extent thereof; | ||
fourth, to prepay outstanding reimbursement obligations with respect to Letters of Credit; | ||
fifth, to cash collateralize Letters of Credit; and | ||
sixth, to Borrower. |
-52-
-53-
-54-
-55-
-56-
-57-
-58-
-59-
-60-
-61-
-62-
-63-
-64-
-65-
-66-
-67-
-68-
-69-
-70-
-71-
-72-
-73-
-74-
-75-
-76-
-77-
-78-
-79-
-80-
-81-
-82-
-83-
-84-
-85-
-86-
-87-
-88-
-89-
-90-
-91-
-92-
-93-
-94-
-95-
-96-
-97-
-98-
-99-
-100-
-101-
-102-
-103-
-104-
-105-
-106-
-107-
-108-
-109-
-110-
-111-
-112-
-113-
-114-
-115-
-116-
-117-
-118-
-119-
-120-
-121-
-122-
-123-
-124-
-125-
VALEANT PHARMACEUTICALS INTERNATIONAL | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President & Chief Operating Officer | |||
VALEANT PHARMACEUTICALS INTERNATIONAL, INC. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President & Chief Operating Officer | |||
ATON PHARMA, INC. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President & Chief Operating Officer | |||
CORIA LABORATORIES, LTD. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President & Chief Operating Officer | |||
DOW PHARMACEUTICAL SCIENCES, INC. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President & Chief Operating Officer | |||
VALEANT PHARMACEUTICALS NORTH AMERICA LLC | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President |
DR. LEWINN’S PRIVATE FORMULA INTERNATIONAL, INC. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President | |||
OCEANSIDE PHARMACEUTICALS, INC. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President | |||
PRINCETON PHARMA HOLDINGS, LLC | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President | |||
PRIVATE FORMULA CORP. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President | |||
RENAUD SKIN CARE LABORATORIES, INC. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President | |||
VALEANT BIOMEDICALS, INC. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President | |||
BIOVAIL AMERICAS CORP. | ||||
By: | /s/ Rajiv De Silva | |||
Name: | Rajiv De Silva | |||
Title: | President |
PRESTWICK PHARMACEUTICALS, INC. | |||||
By: | /s/ Rajiv De Silva | ||||
Name: | Rajiv De Silva | ||||
Title: | President | ||||
BIOVAIL HOLDINGS INTERNATIONAL SRL | |||||
By: | /s/ Alex Matheson on behalf of Richard K. Masterson | ||||
Name: | Richard K. Masterson | ||||
Title: | President & Chief Operating Officer | ||||
VALEANT INTERNATIONAL (BARBADOS) SRL | |||||
By: | /s/ Alex Matheson on behalf of Richard K. Masterson | ||||
Name: | Richard K. Masterson | ||||
Title: | President & Chief Operating Officer | ||||
BIOVAIL LABORATORIES INTERNATIONAL (BARBADOS) SRL | |||||
By: | /s/ Alex Matheson on behalf of Richard K. Masterson | ||||
Name: | Richard K. Masterson | ||||
Title: | President & Chief Operating Officer | ||||
HYTHE PROPERTY INCORPORATED | |||||
By: | /s/ Alex Matheson on behalf of Richard K. Masterson | ||||
Name: | Richard K. Masterson | ||||
Title: | President & Chief Operating Officer | ||||
Each Signature in the Presence of: | VALEANT CANADA GP LIMITED | ||||
/s/ Bruce Goins | By: | /s/ Robert R. Chai-Onn | |||
Name: Bruce Goins | Name: | Robert R. Chai-Onn | |||
Occupation: Vice President, Finance | Title: | Vice President | |||
Address: Valeant International (Barbados) SRL |
VALEANT CANADA LP by its sole general partner, VALEANT CANADA GP LIMITED | ||||
By: | /s/ Robert R. Chai-Onn | |||
Name: | Robert R. Chai-Onn | |||
Title: | Director | |||
V-BAC HOLDING CORP. | ||||
By: | /s/ Robert R. Chai-Onn | |||
Name: | Robert R. Chai-Onn | |||
Title: | Vice President |
GOLDMAN SACHS LENDING PARTNERS LLC, as Administrative Agent, Collateral Agent and Swing Line Lender. | ||||
By: | /s/ Robert Ehudin | |||
Robert Ehudin Authorized Signatory | ||||
GOLDMAN SACHS BANK USA, as a Lender. | ||||
By: | /s/ Robert Ehudin | |||
Robert Ehudin Authorized Signatory | ||||
APPENDIX A-1 | ||
TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT |
Pro | ||||
Lender | Revolving Commitment | Rata Share | ||
Goldman Sachs Bank USA | $200,000,000 | 100.00% | ||
Total | $200,000,000 | 100.00% |
APPENDIX A-2 | ||
TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT |
Pro | ||||
Lender | Term Loan Commitment | Rata Share | ||
Goldman Sachs Bank USA | $650,000,000 | 100.00% | ||
Total | $650,000,000 | 100.00% |
APPENDIX B | ||
TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT |
Irvine, California 92618
Attention: General Counsel
Facsimile: (949) 461-6661
Mississauga, ON L5N 8M5
Attention: Chief Financial Officer
Telecopier: (905) 286-3029
Mississauga, ON L5N 8M5
Attention: Legal Department
Telecopier: (905) 286-3385
as Lead Arranger and Syndication Agent
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (646) 769-7700
as a Lender
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (917) 977-3966
as Administrative Agent, Collateral Agent and
Swing Line Lender
Goldman Sachs Lending Partners LLC
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (646) 769-7700
200 West Street
New York, New York 10282
Attention: Gabe Jacobson
200 West Street
New York, New York 10282
Attention: Lauren Day
Telecopier: (646) 769-7700