as Borrower
as Parent Company and Guarantor
to Time Party to this Credit Agreement
as Issuing Lender
as Sole Lead Arranger
- -and-
SUNTRUST BANK,
as Joint Book Managers
as Syndication Agent
BMO CAPITAL MARKETS FINANCING, INC.,
–and-
WELLS FARGO FOOTHILL, INC.
as Co-Documentation Agents
as Administrative Agent
Page | ||||||||
ARTICLE I | DEFINITIONS | 1 | ||||||
1.1. | Defined Terms | 1 | ||||||
1.2. | Other Interpretive Provisions | 38 | ||||||
1.3. | Accounting Terms | 39 | ||||||
1.4. | Rounding | 39 | ||||||
1.5. | Times of Day | 39 | ||||||
1.6. | Timing of Payment or Performance | 39 | ||||||
ARTICLE II | THE CREDIT FACILITIES | 40 | ||||||
2.1. | Amounts and Terms of Commitments | 40 | ||||||
2.2. | Loan Accounts; Notes | 40 | ||||||
2.3. | Requests for Borrowings | 41 | ||||||
2.4. | Interest Elections for all Borrowings | 42 | ||||||
2.5. | Reduction and Termination of Commitments | 43 | ||||||
2.6. | Voluntary Prepayments | 44 | ||||||
2.7. | Mandatory Prepayments | 45 | ||||||
2.8. | Repayments of Principal | 47 | ||||||
2.9. | Fees | 49 | ||||||
2.10. | Computation of Fees and Interest | 50 | ||||||
2.11. | Interest | 50 | ||||||
2.12. | Payments Generally | 51 | ||||||
2.13. | Pro Rata Treatment | 52 | ||||||
2.14. | Sharing of Payments | 53 | ||||||
2.15. | Incremental Facilities | 53 | ||||||
ARTICLE III | THE LETTERS OF CREDIT | 55 | ||||||
3.1. | Letter of Credit Subfacility | 55 | ||||||
3.2. | Issuance, Amendment and Renewal of Letters of Credit | 56 | ||||||
3.3. | Participations, Drawings and Reimbursement | 58 | ||||||
3.4. | Repayment of Participation | 59 | ||||||
3.5. | Role of Issuing Lender | 60 | ||||||
3.6. | Obligations Absolute | 60 | ||||||
3.7. | Cash Collateralization | 61 | ||||||
3.8. | Letter of Credit Fees | 61 | ||||||
ARTICLE IV | TAXES, YIELD PROTECTION AND ILLEGALITY | 62 | ||||||
4.1. | Taxes | 62 | ||||||
4.2. | Illegality | 64 | ||||||
4.3. | Inability to Determine Rates | 64 | ||||||
4.4. | Increased Costs | 65 | ||||||
4.5. | Compensation for Losses | 66 | ||||||
4.6. | Mitigation Obligations | 67 | ||||||
4.7. | Survival | 67 |
i
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ARTICLE V | CONDITIONS PRECEDENT | 67 | ||||||
5.1. | Conditions to Making First Credit Extensions | 67 | ||||||
5.1.1. Execution and Delivery of this Agreement and Notes | 67 | |||||||
5.1.2. Guaranty Agreement; Collateral Documents | 68 | |||||||
5.1.3. Other Loan Documents; etc | 68 | |||||||
5.1.4. Termination of Existing Credit Facilities; etc | 68 | |||||||
5.1.5. Financial Statements | 69 | |||||||
5.1.6. Certificates of Insurance | 69 | |||||||
5.1.7. Resolutions; etc | 69 | |||||||
5.1.8. Certificates of Good Standing; etc | 70 | |||||||
5.1.9. No Materially Adverse Effect; etc | 70 | |||||||
5.1.10. Affiliate Transactions; etc | 70 | |||||||
5.1.11. Maximum Consolidated Leverage Ratio; Ratings; etc | 70 | |||||||
5.1.12. Minimum Reserve Amount | 71 | |||||||
5.1.13. Fees and Expenses | 71 | |||||||
5.1.14. Legal Opinions of Counsel | 71 | |||||||
5.2. | Conditions Precedent to Each Delayed Draw Term Loan | 71 | ||||||
5.3. | All Credit Extensions | 72 | ||||||
5.3.1. Compliance with Warranties; No Default; etc | 72 | |||||||
5.3.2. Borrowing Request; Interest Election Request | 72 | |||||||
5.3.3. Legality of Transactions | 73 | |||||||
5.3.4. Satisfactory Legal Form; etc | 73 | |||||||
5.3.5. Minimum Availability Under Revolving Commitments | 73 | |||||||
ARTICLE VI | REPRESENTATIONS AND WARRANTIES | 73 | ||||||
6.1. | Corporate Existence and Power; etc | 73 | ||||||
6.2. | Corporate Authorization; etc | 74 | ||||||
6.3. | Governmental Authorization | 74 | ||||||
6.4. | Binding Effect | 75 | ||||||
6.5. | Collateral Documents | 75 | ||||||
6.6. | No Default | 75 | ||||||
6.7. | Use of Proceeds; Margin Regulations | 75 | ||||||
6.8. | Financial Statements; etc | 75 | ||||||
6.9. | Materially Adverse Effect | 76 | ||||||
6.10. | Existing Indebtedness, Liens and Investments; etc | 76 | ||||||
6.11. | Transactions with Affiliates | 77 | ||||||
6.12. | Corporate Structure; etc | 77 | ||||||
6.13. | Title to Properties | 77 | ||||||
6.14. | Intellectual Property Rights; etc | 77 | ||||||
6.15. | Litigation | 78 | ||||||
6.16. | Compliance with Applicable Law; etc | 78 | ||||||
6.17. | Governmental Regulation | 78 | ||||||
6.18. | Taxes | 78 | ||||||
6.19. | ERISA | 78 |
ii
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Page | ||||||||
6.20. | Environmental Liabilities | 79 | ||||||
6.21. | Labor Controversies | 79 | ||||||
6.22. | FCC Authorizations | 79 | ||||||
6.23. | Pending Acquisition Documents; etc | 80 | ||||||
ARTICLE VII | AFFIRMATIVE COVENANTS | 80 | ||||||
7.1. | Financial Information; etc | 81 | ||||||
7.2. | Compliance Certificates; Other Information | 82 | ||||||
7.3. | Notices | 83 | ||||||
7.4. | Maintenance of Corporate Existence; etc | 83 | ||||||
7.5. | Foreign Qualification; etc | 84 | ||||||
7.6. | Payment of Taxes; etc | 84 | ||||||
7.7. | Maintenance of Property; Insurance | 84 | ||||||
7.8. | Compliance with Laws; etc | 84 | ||||||
7.9. | Books and Records | 85 | ||||||
7.10. | Use of Proceeds | 85 | ||||||
7.11. | Interest Rate Protection | 86 | ||||||
7.12. | Identification of Subsidiaries; Provision of Collateral | 86 | ||||||
7.13. | Information Regarding Pending Acquisition; etc | 87 | ||||||
7.14. | Minimum Reserve Amount | 88 | ||||||
7.15. | Further Assurances | 89 | ||||||
ARTICLE VIII | NEGATIVE COVENANTS | 89 | ||||||
8.1. | Limitations on Lines of Business | 90 | ||||||
8.2. | Indebtedness | 90 | ||||||
8.3. | Liens | 91 | ||||||
8.4. | Financial Covenants | 92 | ||||||
8.5. | Consolidations, Mergers, Sales; etc | 92 | ||||||
8.6. | Investments and Acquisitions | 94 | ||||||
8.7. | Restricted Payments | 95 | ||||||
8.8. | Limitations on Swap Contracts | 96 | ||||||
8.9. | Limitations on Restrictive Agreements | 96 | ||||||
8.10. | Transactions with Affiliates | 97 | ||||||
8.11. | Sale of Capital Stock; etc | 98 | ||||||
8.12. | Change of Control | 99 | ||||||
8.13. | Limitations on Optional Payments; etc | 99 | ||||||
8.14. | Modification of other Ancillary Documents; etc | 99 | ||||||
8.15. | Maintenance of Separateness | 99 | ||||||
8.16. | Use of Credits; Compliance with Margin Regulations | 99 | ||||||
ARTICLE IX | EVENTS OF DEFAULT | 100 | ||||||
9.1. | Events of Default | 100 | ||||||
9.1.1. Non Payment of Obligations | 100 |
iii
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Page | ||||||||
9.1.2. Non Performance of Certain Obligations | 100 | |||||||
9.1.3. Non Performance of Other Obligations | 100 | |||||||
9.1.4. Breach of Representation or Warranty | 100 | |||||||
9.1.5. Cross Default | 100 | |||||||
9.1.6. Insolvency; Voluntary Proceedings | 101 | |||||||
9.1.7. Involuntary Proceedings | 101 | |||||||
9.1.8. ERISA | 101 | |||||||
9.1.9. Judgments | 101 | |||||||
9.1.10. Change of Control | 101 | |||||||
9.1.11. Guaranty Agreement | 101 | |||||||
9.1.12. Collateral Documents | 102 | |||||||
9.1.13. Main Station Licenses | 102 | |||||||
9.2. | Remedies | 103 | ||||||
9.3. | Application of Funds | 104 | ||||||
ARTICLE X | THE ADMINISTRATIVE AGENT | 104 | ||||||
10.1. | Appointment and Authority | 104 | ||||||
10.2. | Rights as a Lender | 105 | ||||||
10.3. | Exculpatory Provisions | 105 | ||||||
10.4. | Reliance by Administrative Agent | 106 | ||||||
10.5. | Delegation of Duties | 106 | ||||||
10.6. | Resignation of Administrative Agent | 107 | ||||||
10.7. | Non-Reliance on Administrative Agent and Other Lenders | 108 | ||||||
10.8. | No Other Duties; etc | 108 | ||||||
10.9. | Administrative Agent May File Proofs of Claim | 108 | ||||||
10.10. | Collateral and Guaranty Matters | 109 | ||||||
ARTICLE XI | SUCCESSORS AND ASSIGNS | 109 | ||||||
11.1. | Successors and Assigns Generally | 109 | ||||||
11.2. | Assignments by Lenders | 110 | ||||||
11.3. | Register | 112 | ||||||
11.4. | Participations | 112 | ||||||
11.5. | Limitations upon Participant Rights | 112 | ||||||
11.6. | Certain Pledges | 113 | ||||||
11.7. | Electronic Execution of Assignments | 113 | ||||||
11.8. | Special Purpose Funding Vehicles | 113 | ||||||
11.9. | Resignation as Issuing Lender | 114 | ||||||
ARTICLE XII | MISCELLANEOUS | 114 | ||||||
12.1. | Amendments and Waivers | 114 | ||||||
12.2. | Notices; Effectiveness; Electronic Communications | 116 | ||||||
12.3. | No Waiver; Cumulative Remedies | 118 | ||||||
12.4. | Expenses; Indemnity; Damage Waiver | 118 |
iv
(continued)
Page | ||||||||
12.5. | Payments Set Aside | 120 | ||||||
12.6. | Treatment of Certain Information; Confidentiality | 120 | ||||||
12.7. | Set off | 121 | ||||||
12.8. | Survival of Representations, Warranties and Agreements | 121 | ||||||
12.9. | Marshalling | 122 | ||||||
12.10. | Obligations Several; Independent Nature of Lenders’ Rights | 122 | ||||||
12.11. | Notification of Addresses, Lending Offices; etc | 122 | ||||||
12.12. | Counterparts | 122 | ||||||
12.13. | Severability | 122 | ||||||
12.14. | No Third Parties Benefited | 122 | ||||||
12.15. | Governing Law and Jurisdiction; Waiver of Trial by Jury | 122 | ||||||
12.16. | Interest Rate Limitation | 123 | ||||||
12.17. | Replacement of Lenders | 124 | ||||||
12.18. | No Advisory or Fiduciary Responsibility | 124 | ||||||
12.19. | USA PATRIOT Act Notice | 125 | ||||||
12.20. | ENTIRE AGREEMENT | 125 | ||||||
12.21. | Delivery by Facsimile | 126 |
v
SCHEDULE | DESCRIPTION | |
SCHEDULE 2.1 | COMMITMENTS OF LENDERS | |
SCHEDULE 6 | DISCLOSURE SCHEDULE | |
SCHEDULE 12.2 | LENDING OFFICES/NOTICE ADDRESSES |
EXHIBIT | DESCRIPTION | |
EXHIBIT A | FORM OF TERM B NOTE | |
EXHIBIT B | FORM OF REVOLVING CREDIT NOTE | |
EXHIBIT C | FORM OF DELAYED DRAW TERM NOTE | |
EXHIBIT D | FORM OF GUARANTY AGREEMENT | |
EXHIBIT E | FORM OF PLEDGE AGREEMENT | |
EXHIBIT F | FORM OF SECURITY AGREEMENT | |
EXHIBIT G | FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT | |
EXHIBIT H | FORM OF COMPLIANCE CERTIFICATE | |
EXHIBIT I | FORM OF ASSIGNMENT AND ASSUMPTION | |
EXHIBIT J | FORM OF CASH COLLATERAL AGREEMENT | |
EXHIBIT K | FORM OF CLOSING DATE COMPLIANCE CERTIFICATE | |
EXHIBIT L | FORM OF LEGAL OPINION OF SPECIAL COUNSEL | |
FOR PARENT COMPANY AND BORROWER | ||
EXHIBIT M | FORM OF LEGAL OPINION OF SPECIAL FCC COUNSEL | |
FOR PARENT COMPANY AND BORROWER |
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Consolidated Leverage Ratio | ||||||
Greater Than or | Commitment | |||||
Equal to | Less Than | Fee | ||||
7.25:1.00 | 0.500 | % | ||||
5.75:1.00 | 7.25:1.00 | 0.375 | % | |||
5.75:1.00 | 0.250 | % |
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PRICING GRID FOR REVOLVING LOANS AND DELAYED DRAW TERM LOANS | ||||||||||||||||||||
Applicable Margin For | Applicable Margin For | |||||||||||||||||||
Consolidated Leverage Ratio | Revolving Loans | Delayed Draw Term Loans | ||||||||||||||||||
Greater Than | Base Rate | Eurodollar | Base Rate | Eurodollar | ||||||||||||||||
or Equal to | Less Than | Loan | Loan | Loan | Loan | |||||||||||||||
7.25:1.00 | 1.000 | % | 2.500 | % | 1.000 | % | 2.500 | % | ||||||||||||
6.50:1.00 | 7.25:1.00 | 0.500 | % | 2.000 | % | 0.500 | % | 2.000 | % | |||||||||||
5.75:1.00 | 6.50:1.00 | 0.250 | % | 1.750 | % | 0.250 | % | 1.750 | % | |||||||||||
5.00:1.00 | 5.75:1.00 | 0.000 | % | 1.500 | % | 0.000 | % | 1.500 | % | |||||||||||
4.25:1.00 | 5.00:1.00 | 0.000 | % | 1.250 | % | 0.000 | % | 1.250 | % | |||||||||||
3.50:1.00 | 4.25:1.00 | 0.000 | % | 1.000 | % | 0.000 | % | 1.000 | % | |||||||||||
3.50:1.00 | 0.000 | % | 0.750 | % | 0.000 | % | 0.750 | % |
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Eurodollar Rate | = | Eurodollar Base Rate | ||||||
1.00 – Eurodollar Reserve Percentage |
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Principal Payment Date | Amount | |||
03/31/07 | $ | 287,500 | ||
06/30/07 | $ | 287,500 | ||
09/30/07 | $ | 287,500 | ||
12/31/07 | $ | 287,500 | ||
03/31/08 | $ | 287,500 | ||
06/30/08 | $ | 287,500 | ||
09/30/08 | $ | 287,500 | ||
12/31/08 | $ | 287,500 |
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Principal Payment Date | Amount | |||
03/31/09 | $ | 287,500 | ||
06/30/09 | $ | 287,500 | ||
09/30/09 | $ | 287,500 | ||
12/31/09 | $ | 287,500 | ||
03/31/10 | $ | 287,500 | ||
06/30/10 | $ | 287,500 | ||
09/30/10 | $ | 287,500 | ||
12/31/10 | $ | 287,500 | ||
03/31/11 | $ | 287,500 | ||
06/30/11 | $ | 287,500 | ||
09/30/11 | $ | 287,500 | ||
12/31/11 | $ | 287,500 | ||
03/31/12 | $ | 287,500 | ||
06/30/12 | $ | 287,500 | ||
09/30/12 | $ | 287,500 | ||
12/31/12 | $ | 287,500 | ||
03/31/13 | $ | 287,500 | ||
06/30/13 | $ | 287,500 | ||
09/30/13 | $ | 287,500 | ||
11/21/13 | $ | 107,237,500 |
Principal Payment Date | Percentage | |||
03/31/08 | 1.25 | % | ||
06/30/08 | 1.25 | % | ||
09/30/08 | 1.25 | % | ||
12/31/08 | 1.25 | % | ||
03/31/09 | 2.50 | % | ||
06/30/09 | 2.50 | % | ||
09/30/09 | 2.50 | % | ||
12/31/09 | 2.50 | % | ||
03/31/10 | 3.75 | % | ||
06/30/10 | 3.75 | % | ||
09/30/10 | 3.75 | % |
-49-
Principal Payment Date | Percentage | |||
12/31/10 | 3.75 | % | ||
03/31/11 | 5.00 | % | ||
06/30/11 | 5.00 | % | ||
09/30/11 | 5.00 | % | ||
12/31/11 | 5.00 | % | ||
03/31/12 | 6.25 | % | ||
06/30/12 | 6.25 | % | ||
09/30/12 | 6.25 | % | ||
12/31/12 | 6.25 | % | ||
03/31/13 | 6.25 | % | ||
06/30/13 | 6.25 | % | ||
09/30/13 | 6.25 | % | ||
11/21/13 | Entire principal balance then remaining unpaid |
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Period | Ratio | |||
Closing Date through 03/31/07 | 7.75:1.00 | |||
04/01/07 through 09/30/07 | 7.50:1.00 | |||
10/01/07 through 03/31/08 | 7.25:1.00 | |||
04/01/08 through 09/30/08 | 7.00:1.00 | |||
10/01/08 through 03/31/09 | 6.75:1.00 | |||
04/01/09 through 09/30/09 | 6.50:1.00 | |||
10/01/09 through 09/30/10 | 6.00:1.00 | |||
10/01/10 through 09/30/11 | 5.50:1.00 | |||
10/01/11 and thereafter | 4.50:1.00 |
Period | Ratio | |||
Closing Date through 09/30/08 | 1.50:1.00 | |||
10/01/08 through 09/30/09 | 1.75:1.00 | |||
10/01/09 and thereafter | 2.00:1.00 |
Period | Ratio | |||
Closing Date through the Maturity Date | 1.10:1.00 |
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The Borrower: | ||||||||
REGENT BROADCASTING, LLC | ||||||||
By: | /s/ Anthony A. Vasconcellos | |||||||
Name: | Anthony A. Vasconcellos | |||||||
Title: | Executive Vice President and | |||||||
Chief Financial Officer |
The Parent Company: | ||||||||
REGENT COMMUNICATIONS, INC. | ||||||||
By: | /s/ Anthony A. Vasconcellos | |||||||
Name: | Anthony A. Vasconcellos | |||||||
Title: | Executive Vice President and | |||||||
Chief Financial Officer |
The Administrative Agent: | ||||||
BANK OF AMERICA, N.A., as Administrative Agent | ||||||
By: | /s/ William J. Faidell | |||||
Name: William J. Faidell | ||||||
Title: Assistant Vice President |
The Lenders: | ||||||
BANK OF AMERICA, N.A., as a Lender and the Issuing Lender | ||||||
By: | /s/ Bradley K. Rousseau | |||||
Name: Bradley K. Rousseau | ||||||
Title: Principal |
SUNTRUST BANK,as a Lender | ||||||
By: | /s/ Brian Combs | |||||
Name: Brian Combs | ||||||
Title: Director |
GENERAL ELECTRIC CAPITAL CORPORATION, as a Co-Documentation Agent and a Lender | ||||||
By: | /s/ Karl Kieffer | |||||
Name: Karl Kieffer | ||||||
Title: Duly Authorized Signatory |
BMO CAPITAL MARKETS FINANCING, INC.,as a Co-Documentation Agent and a Lender | ||||||
By: | /s/ Sarah Kim | |||||
Name: Sarah Kim | ||||||
Title: Managing Director |
NATIONAL CITY BANK,as a Lender | ||||||
By: | /s/ Joseph R. Netzel | |||||
Name: Joseph R. Netzel | ||||||
Title: Senior Vice President |
WELLS FARGO FOOTHILL, INC., as a Co- Documentation Agent and a Lender | ||||||
By: | /s/ Katy Brooks | |||||
Name: Katy Brooks | ||||||
Title: Vice President |