PBY » Topics » Conditions of Initial Credit Extension.

These excerpts taken from the PBY 10-K filed Apr 15, 2009.
Conditions of Initial Credit Extension.  The obligation of the L/C Issuer and each Lender to make its initial Credit Extension hereunder is subject to satisfaction of the following conditions precedent:

 

(a)                                  The Administrative Agent’s receipt of the following, each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and each in form and substance satisfactory to the Administrative Agent:
 

(i)                         executed counterparts of this Agreement sufficient in number for distribution to the Administrative Agent, each Lender and the Lead Borrower;

 

(ii)                      a Note executed by the Borrowers in favor of each Lender requesting a Note;

 


 

(iii)                   such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing (A) the authority of each Loan Party to enter into this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party and (B) the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party;

 

(iv)                  copies of each Loan Party’s Organization Documents and such other documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect;

 

(v)                     a favorable opinion of Morgan, Lewis & Bockius LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, as to such matters concerning the Loan Parties and the Loan Documents as the Administrative Agent may reasonably request (including, without limitation, with respect to enforceability, due authorization, perfection of the Liens in favor of the Collateral Agent and no lien creation as a result of the financing);

 

(vi)                  a certificate signed by a Responsible Officer of the Lead Borrower certifying (A) that the conditions specified in Sections 4.02(a) and (b) have been satisfied, (B) that there has been no event or circumstance since the Balance Sheet Date that has had or could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect and (C) either that (1) no consents, licenses or approvals are required in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, or (2) that all such consents, licenses and approvals have been obtained and are in full force and effect;

 

(vii)               evidence that all insurance required to be maintained pursuant to the Loan Documents and all endorsements in favor of the Agents required under the Loan Documents have been obtained and are in effect;

 

(viii)            a payoff letter from Wachovia Bank, National Association, as agent for the lenders under the Existing Credit Agreement satisfactory in form and substance to the Administrative Agent evidencing that the Existing Credit Agreement has been or concurrently with the Closing Date is being terminated, all obligations thereunder are being paid in full, and all Liens securing obligations under the Existing Credit Agreement have been or concurrently with the Closing Date are being released;

 

(ix)                    a certificate from the chief financial officer of the Lead Borrower, satisfactory in form and substance to the Administrative Agent, attesting to the Solvency of the Loan Parties as of the Closing Date after giving effect to the transactions contemplated hereby;

 



 

(x)                       the Security Documents, each duly executed by the applicable Loan Parties;

 

(xi)                    all other Loan Documents, each duly executed by the applicable Loan Parties;

 

(xii)                 (A) an appraisal (based on net liquidation value) by a third party appraiser acceptable to the Collateral Agent of all Inventory of the Borrowers, the results of which are satisfactory to the Collateral Agent, it being acknowledged that this condition has been satisfied, (B) a written report prepared for the Collateral Agent regarding the results of a commercial finance examination of the Loan Parties, which shall be satisfactory to the Collateral Agent and (C) other due diligence materials (including, without limitation, with respect to the Loan Parties’ and certain of their Affiliates’ organizational structure) reasonably requested by the Administrative Agent;

 

(xiii)              results of searches or other evidence reasonably satisfactory to the Collateral Agent (in each case dated as of a date reasonably satisfactory to the Collateral Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Permitted Encumbrances and Liens for which termination statements and releases, satisfactions and discharges of any mortgages, and releases or subordination agreements satisfactory to the Collateral Agent are being tendered concurrently with such extension of credit or other arrangements satisfactory to the Collateral Agent for the delivery of such termination statements and releases, satisfactions and discharges have been made;

 

(xiv)             duly executed Customs Broker Agreements with each of the Loan Parties’ customs brokers, freight forwarders or carriers;

 

(xv)                (A) all documents and instruments, including Uniform Commercial Code financing statements, required by law or reasonably requested by the Collateral Agent to be filed, registered or recorded to create or perfect the first priority Liens intended to be created under the Loan Documents and all such documents and instruments shall have been so filed, registered or recorded to the satisfaction of the Collateral Agent, (B) the DDA Notifications, Credit Card Notifications, and Blocked Account Agreements required pursuant to Section 6.13 hereof, and (C) control agreements with respect to the Loan Parties’ securities and investment accounts;

 

(xvi)             such other assurances, certificates, documents, consents or opinions as the Agents reasonably may require.

 

(b)                           After giving effect to (i) the first funding under the Loans, (ii) any charges to the Loan Account made in connection with the establishment of the credit facility contemplated hereby and (iii) all Letters of Credit to be issued at, or immediately subsequent to, such establishment, Availability shall be not less than $150,000,000.

 

(c)                            The Administrative Agent shall have received a Borrowing Base Certificate dated the Closing Date, relating to the month ended on November 2008, and executed by a Responsible Officer of the Lead Borrower.

 

(d)                           The Administrative Agent shall be reasonably satisfied that any financial statements delivered to it fairly present the business and financial condition of the Loan Parties

 



 

Conditions of Initial Credit Extension.  The
obligation of the L/C Issuer and each Lender to make its initial Credit
Extension hereunder is subject to satisfaction of the following conditions
precedent:



 



(a)                                  The
Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise
specified, each properly executed by a Responsible Officer of the signing Loan
Party, each dated the Closing Date (or, in the case of certificates of
governmental officials, a recent date before the Closing Date) and each in form
and substance satisfactory to the Administrative Agent:


 


(i)                         executed counterparts of this Agreement
sufficient in number for distribution to the Administrative Agent, each Lender
and the Lead Borrower;



 



(ii)                      a Note executed by the Borrowers in favor of
each Lender requesting a Note;



 













 



(iii)                   such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Administrative Agent may require evidencing (A) the
authority of each Loan Party to enter into this Agreement and the other Loan
Documents to which such Loan Party is a party or is to be a party and (B) the
identity, authority and capacity of each Responsible Officer thereof authorized
to act as a Responsible Officer in connection with this Agreement and the other
Loan Documents to which such Loan Party is a party or is to be a party;



 



(iv)                  copies of each Loan Party’s Organization
Documents and such other documents and certifications as the Administrative
Agent may reasonably require to evidence that each Loan Party is duly organized
or formed, and that each Loan Party is validly existing, in good standing and
qualified to engage in business in each jurisdiction where its ownership, lease
or operation of properties or the conduct of its business requires such
qualification, except to the extent that failure to do so could not reasonably
be expected to have a Material Adverse Effect;



 



(v)                     a favorable opinion of Morgan, Lewis &
Bockius LLP, counsel to the Loan Parties, addressed to the Administrative Agent
and each Lender, as to such matters concerning the Loan Parties and the Loan
Documents as the Administrative Agent may reasonably request (including,
without limitation, with respect to enforceability, due authorization,
perfection of the Liens in favor of the Collateral Agent and no lien creation
as a result of the financing);



 



(vi)                  a certificate signed by a Responsible Officer
of the Lead Borrower certifying (A) that the conditions specified in Sections
4.02(a)
 and (b) have been satisfied, (B) that there has
been no event or circumstance since the Balance Sheet Date that has had or
could be reasonably expected to have, either individually or in the aggregate,
a Material Adverse Effect and (C) either that (1) no consents,
licenses or approvals are required in connection with the execution, delivery
and performance by such Loan Party and the validity against such Loan Party of
the Loan Documents to which it is a party, or (2) that all such consents,
licenses and approvals have been obtained and are in full force and effect;



 



(vii)               evidence that all
insurance required to be maintained pursuant to the Loan Documents and all
endorsements in favor of the Agents required under the Loan Documents have been
obtained and are in effect;



 



(viii)            a payoff letter from
Wachovia Bank, National Association, as agent for the lenders under the
Existing Credit Agreement satisfactory in form and substance to the
Administrative Agent evidencing that the Existing Credit Agreement has been or
concurrently with the Closing Date is being terminated, all obligations
thereunder are being paid in full, and all Liens securing obligations under the
Existing Credit Agreement have been or concurrently with the Closing Date are
being released;



 



(ix)                    a certificate from the chief financial officer
of the Lead Borrower, satisfactory in form and substance to the Administrative
Agent, attesting to the Solvency of the Loan Parties as of the Closing Date
after giving effect to the transactions contemplated hereby;



 
















 



(x)                       the Security Documents, each duly executed by
the applicable Loan Parties;



 



(xi)                    all other Loan Documents, each duly executed
by the applicable Loan Parties;



 



(xii)                 (A) an appraisal (based on net
liquidation value) by a third party appraiser acceptable to the Collateral
Agent of all Inventory of the Borrowers, the results of which are satisfactory
to the Collateral Agent, it being acknowledged that this condition has been
satisfied, (B) a written report prepared for the Collateral Agent
regarding the results of a commercial finance examination of the Loan Parties,
which shall be satisfactory to the Collateral Agent and (C) other due
diligence materials (including, without limitation, with respect to the Loan
Parties’ and certain of their Affiliates’ organizational structure) reasonably
requested by the Administrative Agent;



 



(xiii)              results of searches or other evidence
reasonably satisfactory to the Collateral Agent (in each case dated as of a
date reasonably satisfactory to the Collateral Agent) indicating the absence of
Liens on the assets of the Loan Parties, except for Permitted Encumbrances and
Liens for which termination statements and releases, satisfactions and
discharges of any mortgages, and releases or subordination agreements
satisfactory to the Collateral Agent are being tendered concurrently with such
extension of credit or other arrangements satisfactory to the Collateral Agent
for the delivery of such termination statements and releases, satisfactions and
discharges have been made;



 



(xiv)             duly executed Customs Broker Agreements with
each of the Loan Parties’ customs brokers, freight forwarders or carriers;



 



(xv)                (A) all documents and instruments,
including Uniform Commercial Code financing statements, required by law or
reasonably requested by the Collateral Agent to be filed, registered or
recorded to create or perfect the first priority Liens intended to be created
under the Loan Documents and all such documents and instruments shall have been
so filed, registered or recorded to the satisfaction of the Collateral Agent, (B) the
DDA Notifications, Credit Card Notifications, and Blocked Account Agreements
required pursuant to Section 6.13 hereof, and (C) control
agreements with respect to the Loan Parties’ securities and investment
accounts;



 



(xvi)             such other assurances, certificates,
documents, consents or opinions as the Agents reasonably may require.



 



(b)                           After giving effect to (i) the
first funding under the Loans, (ii) any charges to the Loan Account made
in connection with the establishment of the credit facility contemplated hereby
and (iii) all Letters of Credit to be issued at, or immediately subsequent
to, such establishment, Availability shall be not less than $150,000,000.



 



(c)                            The Administrative Agent
shall have received a Borrowing Base Certificate dated the Closing Date,
relating to the month ended on November 2008, and executed by a
Responsible Officer of the Lead Borrower.



 



(d)                           The Administrative Agent
shall be reasonably satisfied that any financial statements delivered to it
fairly present the business and financial condition of the Loan Parties



 
















 



EXCERPTS ON THIS PAGE:

10-K (2 sections)
Apr 15, 2009

"Conditions of Initial Credit Extension." elsewhere:

Copart (CPRT)
Ferrellgas Partners, L.P. (FGP)
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