EXHIBIT 10.2
EXECUTION COPY
================================================================================
BRIDGE LOAN AGREEMENT
dated as of
January 5, 2004
among
AGCO CORPORATION,
as Borrower,
THE LENDERS named herein,
COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
"RABOBANK NEDERLAND", NEW YORK BRANCH,
as Administrative Agent,
MORGAN STANLEY SENIOR FUNDING, INC.
and
COOPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A.,
"RABOBANK NEDERLAND", NEW YORK BRANCH,
as Joint Lead Arrangers and Joint Book-Runners,
and
MORGAN STANLEY SENIOR FUNDING, INC.,
as Syndication Agent
================================================================================
AGCO Bridge loan Agreement
TABLE OF CONTENTS
Page ARTICLE I DEFINITIONS............................................................................................ 2
SECTION 1.1. DEFINED TERMS....................................................................................... 2 SECTION 1.2. INTERPRETATION...................................................................................... 21
ARTICLE II THE CREDIT FACILITY................................................................................... 21
SECTION 2.1. THE BRIDGE LOANS.................................................................................... 21 SECTION 2.2. EXTENSION OF INITIAL MATURITY DATE.................................................................. 22 SECTION 2.3. OPTION TO EXCHANGE BRIDGE LOANS FOR EXCHANGE NOTES.................................................. 22 SECTION 2.4. INTEREST; PAYMENT IN KIND OPTION; AND DEFAULT INTEREST.............................................. 23 SECTION 2.5. COMMITMENT FEE...................................................................................... 24 SECTION 2.6. MANDATORY PREPAYMENT................................................................................ 24 SECTION 2.7. OPTIONAL PREPAYMENT................................................................................. 25 SECTION 2.8. BREAKAGE COSTS; INDEMNITY........................................................................... 25 SECTION 2.9. EFFECT OF NOTICE OF PREPAYMENT...................................................................... 25 SECTION 2.10. PAYMENTS........................................................................................... 25 SECTION 2.11. TAXES.............................................................................................. 26 SECTION 2.12. RIGHT OF SET OFF; SHARING OF PAYMENTS, ETC. ....................................................... 28
ARTICLE III REPRESENTATIONS AND WARRANTIES....................................................................... 29
SECTION 3.1. ORGANIZATION; POWER................................................................................. 29 SECTION 3.2. SUBSIDIARIES........................................................................................ 30 SECTION 3.3. JOINT VENTURES...................................................................................... 30 SECTION 3.4. DUE AUTHORIZATION AND ENFORCEABILITY................................................................ 30 SECTION 3.5. NO CONFLICTS........................................................................................ 30 SECTION 3.6. FINANCIAL STATEMENTS; NO UNDISCLOSED LIABILITIES.................................................... 31 SECTION 3.7. NO MATERIAL ADVERSE CHANGE.......................................................................... 32 SECTION 3.8. THE ACQUISITION..................................................................................... 32 SECTION 3.9. LITIGATION.......................................................................................... 32 SECTION 3.10. USE OF PROCEEDS.................................................................................... 32 SECTION 3.11. ERISA MATTERS...................................................................................... 32 SECTION 3.12. CASUALTIES; TAKING OF PROPERTIES................................................................... 33 SECTION 3.13. ENVIRONMENTAL MATTERS.............................................................................. 33 SECTION 3.14. TAXES.............................................................................................. 34 SECTION 3.15. TITLE TO PROPERTIES................................................................................ 34 SECTION 3.16. SOLVENCY........................................................................................... 34 SECTION 3.17. INVESTMENT COMPANY................................................................................. 34 SECTION 3.18. MATERIAL CONTRACTS................................................................................. 34 SECTION 3.19. INTELLECTUAL PROPERTY.............................................................................. 35 SECTION 3.20. EXISTING INDEBTEDNESS.............................................................................. 35 SECTION 3.21. EMPLOYEE RELATIONS................................................................................. 35 SECTION 3.22. ANTI-TERRORISM LAWS................................................................................ 35 SECTION 3.23. USE OF LOANS....................................................................................... 35 SECTION 3.24. PRIVATE OFFERING; RULE 144A MATTERS................................................................ 35
i
AGCO Bridge Loan Agreement
ARTICLE IV COVENANTS............................................................................................. 36
SECTION 4.1. COMPLIANCE WITH LAWS, ETC. ......................................................................... 36 SECTION 4.2. PRESERVATION OF EXISTENCE, ETC. .................................................................... 36 SECTION 4.3. PAYMENT OF TAXES AND CLAIMS......................................................................... 36 SECTION 4.4. COMPLIANCE WITH ENVIRONMENTAL LAWS.................................................................. 37 SECTION 4.5. MAINTENANCE OF INSURANCE............................................................................ 37 SECTION 4.6. VISITATION RIGHTS................................................................................... 37 SECTION 4.7. ACCOUNTING METHODS.................................................................................. 38 SECTION 4.8. MAINTENANCE OF PROPERTIES, ETC. .................................................................... 38 SECTION 4.9. PAYMENT OF INDEBTEDNESS; PERFORMANCE OF MATERIAL CONTRACTS.......................................... 38 SECTION 4.10. ERISA.............................................................................................. 38 SECTION 4.11. CONDUCT OF BUSINESS................................................................................ 38 SECTION 4.12. [INTENTIONALLY OMITTED]............................................................................ 38 SECTION 4.13. ANTI-LAYERING...................................................................................... 38 SECTION 4.14. FURTHER ASSURANCES................................................................................. 38 SECTION 4.15. ACCOUNTS RECEIVABLE SECURITIZATIONS................................................................ 39 SECTION 4.16. COMPLIANCE WITH OTHER AGREEMENTS................................................................... 39 SECTION 4.17. BROKER'S CLAIMS.................................................................................... 39 SECTION 4.18. MATERIAL SUBSIDIARIES.............................................................................. 39 SECTION 4.19. USE OF PROCEEDS.................................................................................... 39 SECTION 4.20. NEW EQUITY ISSUANCE................................................................................ 39 SECTION 4.21. REPORTING REQUIREMENTS............................................................................. 39 SECTION 4.22. ACCESS TO ACCOUNTANTS.............................................................................. 42 SECTION 4.23. NEGATIVE COVENANTS................................................................................. 42
ARTICLE V CONDITIONS............................................................................................. 49
SECTION 5.1. CORPORATE AND OTHER PROCEEDINGS..................................................................... 49
ARTICLE VI TRANSFER OF THE LOANS, THE INSTRUMENTS EVIDENCING SUCH LOANS AND THE SECURITIES; REPRESENTATIONS OF
LENDERS .................................................................................................. 53
SECTION 6.1. TRANSFER OF THE BRIDGE LOANS, THE INSTRUMENTS EVIDENCING THE BRIDGE LOANS AND THE SECURITIES........ 53 SECTION 6.2. PERMITTED ASSIGNMENTS............................................................................... 53 SECTION 6.3. REPLACEMENT SECURITIES UPON TRANSFER OR EXCHANGE.................................................... 53 SECTION 6.4. REGISTER............................................................................................ 54
ARTICLE VII EVENTS OF DEFAULT.................................................................................... 54
SECTION 7.1. EVENTS OF DEFAULT................................................................................... 54 SECTION 7.2. ACCELERATION........................................................................................ 56 SECTION 7.3. RIGHTS AND REMEDIES CUMULATIVE...................................................................... 57 SECTION 7.4. DELAY OR OMISSION NOT WAIVER........................................................................ 57 SECTION 7.5. WAIVER OF PAST DEFAULTS............................................................................. 57 SECTION 7.6. RIGHTS OF LENDERS TO RECEIVE PAYMENT................................................................ 57
ii
AGCO Bridge Loan Agreement
ARTICLE VIII [INTENTIONALLY OMITTED]............................................................................. 57
ARTICLE IX TERMINATION........................................................................................... 57
SECTION 9.1. TERMINATION......................................................................................... 57 SECTION 9.2. SURVIVAL OF CERTAIN PROVISIONS...................................................................... 57
ARTICLE X SUBORDINATION.......................................................................................... 57
SECTION 10.1. AGREEMENT TO SUBORDINATE........................................................................... 57 SECTION 10.2. CERTAIN DEFINITIONS................................................................................ 58 SECTION 10.3. LIQUIDATION; DISSOLUTION; BANKRUPTCY............................................................... 59 SECTION 10.4. INDEBTEDNESS....................................................................................... 60 SECTION 10.5. SUBROGATION........................................................................................ 61 SECTION 10.6. OBLIGATIONS OF BORROWER UNCONDITIONAL.............................................................. 61 SECTION 10.7. NOTICE TO ADMINISTRATIVE AGENT..................................................................... 62 SECTION 10.8. RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF LIQUIDATING AGENT..................................... 62 SECTION 10.9. ADMINISTRATIVE AGENT'S RELATION TO SENIOR INDEBTEDNESS............................................. 63 SECTION 10.10. SUBORDINATION RIGHTS NOT IMPAIRED BY ACTS OR OMISSIONS OF THE BORROWER OR HOLDERS OF SENIOR
INDEBTEDNESS ..................................................................................... 63 SECTION 10.11. LENDERS AUTHORIZE AGENTS TO EFFECTUATE SUBORDINATION OF BRIDGE NOTES.............................. 63 SECTION 10.12. NOT TO PREVENT EVENTS OF DEFAULT.................................................................. 63 SECTION 10.13. ADMINISTRATIVE AGENT'S COMPENSATION NOT PREJUDICED................................................ 63 SECTION 10.14. NO WAIVER OF SUBORDINATION PROVISIONS............................................................. 63 SECTION 10.15. PAYMENTS MAY BE PAID PRIOR TO DISSOLUTION......................................................... 64 SECTION 10.16. CONSENT OF HOLDERS OF SENIOR INDEBTEDNESS UNDER THE CREDIT AGREEMENT.............................. 64
ARTICLE XI [INTENTIONALLY DELETED]............................................................................... 64
ARTICLE XII INDEMNITY............................................................................................ 64
SECTION 12.1. INDEMNIFICATION BY THE BORROWER.................................................................... 64
ARTICLE XIII THE ADMINISTRATIVE AGENT AND OTHER AGENTS........................................................... 65
SECTION 13.1. APPOINTMENT AND AUTHORIZATION OF AGENTS............................................................ 65 SECTION 13.2. DELEGATION OF DUTIES............................................................................... 66 SECTION 13.3. LIABILITY OF AGENTS................................................................................ 66 SECTION 13.4. RELIANCE BY AGENTS................................................................................. 66 SECTION 13.5. NOTICE OF DEFAULT.................................................................................. 67 SECTION 13.6. CREDIT DECISION; DISCLOSURE OF INFORMATION BY AGENTS............................................... 67 SECTION 13.7. INDEMNIFICATION OF AGENTS.......................................................................... 67 SECTION 13.8. AGENTS IN THEIR INDIVIDUAL CAPACITIES.............................................................. 68 SECTION 13.9. SUCCESSOR AGENTS................................................................................... 68 SECTION 13.10. ADMINISTRATIVE AGENT MAY FILE PROOFS OF CLAIM..................................................... 68 SECTION 13.11. GUARANTY MATTERS.................................................................................. 69 SECTION 13.12. OTHER AGENTS; ARRANGERS AND MANAGERS.............................................................. 69
iii
AGCO Bridge Loan Agreement
ARTICLE XIV MISCELLANEOUS........................................................................................ 69
SECTION 14.1. ATTORNEY COSTS, EXPENSES AND TAXES................................................................. 69 SECTION 14.2. NOTICES AND OTHER COMMUNICATIONS; FACSIMILE COPIES................................................. 70 SECTION 14.3. AMENDMENTS, ETC. .................................................................................. 71 SECTION 14.4. PARTIES............................................................................................ 72 SECTION 14.5. NEW YORK LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL..................................... 72 SECTION 14.6. REPLACEMENT NOTES.................................................................................. 72 SECTION 14.7. APPOINTMENT OF AGENT FOR SERVICE................................................................... 72 SECTION 14.8. PAYMENTS SET ASIDE................................................................................. 73 SECTION 14.9. LIMITATION OF LIABILITY............................................................................ 73 SECTION 14.10. CURRENCY INDEMNITY................................................................................ 73 SECTION 14.11. WAIVER OF IMMUNITY................................................................................ 73 SECTION 14.12. FREEDOM OF CHOICE................................................................................. 74 SECTION 14.13. SUCCESSORS AND ASSIGNS............................................................................ 74 SECTION 14.14. INTEGRATION....................................................................................... 74 SECTION 14.15. SEVERABILITY...................................................................................... 74 SECTION 14.16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES........................................................ 74 SECTION 14.17. NO WAIVER; CUMULATIVE REMEDIES.................................................................... 74 SECTION 14.18. CONFIDENTIALITY................................................................................... 74 SECTION 14.19. SETOFF............................................................................................ 75 SECTION 14.20. INTEREST RATE LIMITATION.......................................................................... 76 SECTION 14.21. COUNTERPARTS...................................................................................... 76 SECTION 14.22. TAX FORMS......................................................................................... 76 SECTION 14.23. BINDING EFFECT.................................................................................... 77
EXHIBIT A. FORM OF ASSIGNMENT AND ACCEPTANCE EXHIBIT B. FORM OF BRIDGE NOTE EXHIBIT C. SUMMARY OF PRINCIPAL TERMS OF EXCHANGE NOTES EXHIBIT D. OPINION OF TROUTMAN SANDERS LLP, COUNSEL TO THE BORROWER
Schedule C-1 Closed Facilities to be sold Schedule P-1 Permitted Real Property Liens Schedule 3.2 Subsidiaries; Restricted Subsidiaries; Material
Subsidiaries Schedule 3.3 Joint Ventures Schedule 3.5(b) Authorizations; Approvals Schedule 3.6 Financial Statements Schedule 3.9 Litigation Schedule 3.11 ERISA Matters Schedule 3.13 Environmental Matters Schedule 3.14 Tax Matters Schedule 3.15 Permitted Liens as of the Closing Date Schedule 3.18 Material Contracts Schedule 3.19 Intellectual Property Schedule 3.20 Indebtedness as of September 30, 2003 Schedule 3.21 Employee Relations Schedule 4.23(f) Mergers Schedule 14.2 Notices for Borrower, Administrative Agent and Lead
Arrangers
iv
AGCO Bridge Loan Agreement
THIS BRIDGE LOAN AGREEMENT, dated as of January 5, 2004 (as amended, restated and/or otherwise modified from time to time, this "AGREEMENT"), is by and among:
(a) AGCO Corporation, a Delaware corporation (the
"BORROWER"),
(b) Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
"Rabobank Nederland", New York Branch ("RABOBANK"), as Administrative
Agent (the "ADMINISTRATIVE AGENT"),
(c) Morgan Stanley Senior Funding, Inc. ("MSSF") and
Rabobank, as Joint Lead Arrangers and Joint Book-Runners (the "LEAD
ARRANGERS"),
(d) MSSF, as Syndication Agent, and
(e) MSSF and Rabobank, as Initial Bridge Lenders (the
"INITIAL BRIDGE LENDERS").
PRELIMINARY STATEMENTS
(1) The Borrower has entered into a Master Agreement Purchase of Assets and Business (the "ACQUISITION AGREEMENT") dated September 10, 2003 with Valtra Oy Ab ("VALTRA"), Tracfin Holding Oy ("TRACFIN"), Partek Cargotec Holding Netherlands B.V. ("PARTEK CARGOTEC"), Partek Holding Inc. ("PARTEK", and together with Valtra, Tracfin and Partek Cargotec, the "SELLERS") and KONE Corporation to purchase (the "ACQUISITION") assets, operations, businesses and legal entities that comprise the tractor and diesel engine operations of Kone Valtra (the "TARGET").
(2) The Borrower proposes to enter into a credit agreement dated as of January 5, 2004 by and among the Borrower, AGCO Canada, Ltd., a Saskatchewan corporation, AGCO Limited, an English corporation, AGCO International Limited, an English corporation, AGCO Holding B.V., a Netherlands corporation, AGCO Deutschland Holding Limited & Co. KG, a German limited partnership and Valtra Holding Oy, a Finnish corporation; the lenders party thereto; Rabobank, as lead arranger and book runner; Suntrust Bank and Morgan Stanley, as co-syndication agents, Cobank, ACB and Bank of Tokyo-Mitsubishi, New York Branch, as co-documentation agents; Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland", Canadian Branch, as Canadian administrative agent for the Canadian Lenders, and Rabobank, as administrative agent for the lenders thereunder (without giving effect to any amendments, waivers, supplements, terminations or other modifications made subsequent to the date hereof, the "CREDIT AGREEMENT").
(3) Upon the consummation of the Acquisition, the Sellers will each repay (the "VALTRA REFINANCING"), other than as permitted hereunder, all indebtedness and terminate all commitments to make extensions of credit, in each case existing prior to such date (the "VALTRA EXISTING DEBT").
(4) The Borrower has requested that the Lenders lend to the Borrower up to $100 million to, together with funds under the Credit Agreement, (i) pay to the Sellers the cash consideration for the Acquisition, (ii) pay transaction fees and expenses, (iii) pay to the Sellers funds for purposes of consummating the Valtra Refinancing and (iv) to repay the Existing Credit Agreement (as defined in the Credit Agreement). The Lenders have indicated their willingness to agree to lend such amounts on the terms and conditions of this Agreement including, without limitation, the agreement of the Borrower to repay the Initial Bridge Lenders and the other Lenders with the proceeds of the Permanent Securities (as hereinafter defined) or otherwise.
The parties hereto agree as follows:
AGCO Bridge Loan Agreement
ARTICLE I
DEFINITIONS
SECTION 1.1. DEFINED TERMS. As used in this Agreement, the following terms shall have the meanings specified below. Capitalized terms used herein and not otherwise defined shall have the meaning herein as defined in the Credit Agreement.
"ACQUISITION" has the meaning specified in the Preliminary Statements.
"ACQUISITION AGREEMENT" has the meaning specified in the Preliminary Statements.
"ADMINISTRATIVE AGENT" means Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., "Rabobank Nederland", New York Branch, acting as agent pursuant to Article XIII or any successor or replacement Administrative Agent, acting in such capacity.
"ADMINISTRATIVE QUESTIONNAIRE" means an Administrative Questionnaire in a form supplied by any Agent.
"AFFECTED PARTY" means any Lender, any beneficial owner of any Lender and their respective successors and assigns.
"AFFILIATE" means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. "CONTROL" means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise. "CONTROLLING" and "CONTROLLED" have meanings correlative thereto. Without limiting the generality of the foregoing, a Person shall be deemed to be Controlled by another Person if such other Person possesses, directly or indirectly, power to vote 10% or more of the securities having ordinary voting power for the election of directors, managing general partners or the equivalent.
"AGCO" means AGCO Corporation.
"AGENT-RELATED PERSONS" means the Administrative Agent and each Lead Arranger, together with their respective Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates.
"AGENTS" means the Administrative Agent and the Lead Arrangers.
"AGREEMENT" has the meaning specified in the preamble to this Agreement.
"ANTI-TERRORISM LAWS" means, collectively, any law, regulation or order relating to terrorism, national security, U.S. embargoes or other sanctions, or money laundering, including, without limitation, the International Emergency Economic Powers Act (50 U.S.C. Section 1701 et seq.), the Trading with the Enemy Act (50 U.S.C. Section 5 et seq.), the International Security Development and Cooperation Act (22 U.S.C. Section 2349aa-9 et seq.), Executive Order No. 13224, and the USA Patriot Act, and any rules and regulations promulgated pursuant to or under the authority of any of the foregoing (including, without limitation, the rules and regulations promulgated or administered by OFAC).
"APPLICABLE CAPITAL MARKET TRANSACTION DOCUMENTS" means, collectively, as of any date, the Loan Documents, the New Senior Subordinated Note Documents, the Convertible Note Documents, the Existing 2008 Note Documents, the Existing 2006 Note Documents, and any other
2
AGCO Bridge Loan Agreement
document governing the Applicable Capital Market Transactions that are in effect and binding on the Borrower, as of such date of determination.
"APPLICABLE CAPITAL MARKET TRANSACTIONS" means, collectively, the Existing Capital Market Transactions and the New Capital Market Transactions.
"APPLICABLE LAW" means, in respect of any Person, all provisions of constitutions, statutes, rules, regulations, permits and orders of governmental bodies or regulatory agencies applicable to such Person, and all orders and decrees of all courts and ar ...
*End of Preview*
Click the 'Add to Cart' button to download the complete and formatted agreement.