Exhibit 10.4
AMENDED AND RESTATED FIVE-YEAR REVOLVING
LOAN CREDIT AGREEMENT
DATED AS OF JUNE 24, 2005
AMONG
VISTEON CORPORATION, AS BORROWER,
THE SEVERAL BANKS
FROM TIME TO TIME PARTIES HERETO,
JPMORGAN CHASE BANK, N.A.
AS ADMINISTRATIVE AGENT,
AND
CITICORP USA, INC.,
AS SYNDICATION AGENT
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J.P. MORGAN SECURITIES INC. AND
CITIGROUP GLOBAL MARKETS INC.,
AS JOINT LEAD ARRANGERS AND JOINT BOOKRUNNERS
TABLE OF CONTENTS
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---- SECTION 1. DEFINITIONS............................................................................... 1
SECTION 2. THE LOANS................................................................................. 24
2.1 The Commitment; Termination Date.......................................................... 24
2.2 Proceeds of Loans......................................................................... 24
2.3 Commitment Fee............................................................................ 24
2.4 Mark-to-Market............................................................................ 25
2.5 Optional Termination or Reduction of Commitments.......................................... 25
2.6 Notice of Borrowing; Procedure............................................................ 26
2.7 Extension of Term of Loans; Conversion of Loans........................................... 27
2.8 Register.................................................................................. 29
2.9 Interest Rates............................................................................ 30
2.10 Interest Payment Dates................................................................... 30
2.11 Overdue Principal and Interest........................................................... 30
2.12 Dates for Payment or Optional Prepayment of Principal.................................... 31
2.13 Optional and Mandatory Prepayments; Reimbursement for Certain Costs...................... 31
2.14 Method of Payment........................................................................ 33
2.15 Pro Rata Treatment and Payments.......................................................... 34
2.16 Limitation on Eurocurrency Tranches...................................................... 35
2.17 Certain Additional Provisions Relating to Borrowings..................................... 35
2.18 Indemnity................................................................................ 36
SECTION 3. LETTERS OF CREDIT......................................................................... 36
3.1 L/C Commitment............................................................................ 36
3.2 Procedure for Issuance of Letter of Credit................................................ 37
3.3 Fees and Other Charges.................................................................... 37
3.4 L/C Participations........................................................................ 37
3.5 Reimbursement Obligation of the Company or Affiliate...................................... 38
3.6 Obligations Absolute...................................................................... 39
3.7 Letter of Credit Payments................................................................. 39
3.8 Applications.............................................................................. 40
SECTION 4. GUARANTEE OF LOANS TO AFFILIATES.......................................................... 40
SECTION 5. CONDITIONS TO LOANS AND LETTERS OF CREDIT................................................. 41
5.1 Each Loan to, or Letter of Credit Issued for the Account of, the Company or any
Affiliate............................................................................. 41
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5.2 Effectiveness of this Agreement; Loans or Letter of Credit Issued for the
Account of, the Company or any Affiliate.............................................. 42
SECTION 6. REPRESENTATIONS AND WARRANTIES OF THE COMPANY............................................. 47
6.1 Financial Condition....................................................................... 47
6.2 No Change................................................................................. 47
6.3 Existence; Compliance with Law............................................................ 47
6.4 Power; Authorization; Enforceable Obligations............................................. 48
6.5 No Legal Bar.............................................................................. 48
6.6 Litigation................................................................................ 48
6.7 No Default................................................................................ 49
6.8 Ownership of Property; Liens.............................................................. 49
6.9 Intellectual Property..................................................................... 49
6.10 Taxes..................................................................................... 49
6.11 Federal Regulations....................................................................... 50
6.12 Labor Matters............................................................................. 50
6.13 ERISA..................................................................................... 50
6.14 Investment Company Act; Other Regulations................................................. 51
6.15 Subsidiaries.............................................................................. 51
6.16 Use of Proceeds........................................................................... 51
6.17 Environmental Matters..................................................................... 51
6.18 Accuracy of Information, etc.............................................................. 52
6.19 Security Documents........................................................................ 52
6.20 Copyrights................................................................................ 53
SECTION 7. AFFIRMATIVE COVENANTS..................................................................... 53
7.1 Financial Statements...................................................................... 53
7.2 Certificates; Other Information........................................................... 54
7.3 Payment of Obligations.................................................................... 56
7.4 Maintenance of Existence; Compliance...................................................... 56
7.5 Maintenance of Property; Insurance........................................................ 56
7.6 Inspection of Property; Books and Records; Discussions.................................... 56
7.7 Notices................................................................................... 56
7.8 Environmental Laws........................................................................ 57
7.9 Additional Collateral, etc................................................................ 57
7.10 Post-Closing Matters...................................................................... 60
SECTION 7A. NEGATIVE COVENANTS........................................................................ 60
7A.1 Consolidated Leverage Ratio............................................................... 60
7A.2 Indebtedness.............................................................................. 61
7A.3 Liens..................................................................................... 62
7A.4 Fundamental Changes....................................................................... 64
7A.5 Disposition of Property................................................................... 64
7A.6 Restricted Payments....................................................................... 65
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7A.7 Capital Expenditures...................................................................... 66
7A.8 Investments............................................................................... 66
7A.9 Optional Payments and Modifications of Certain Debt Instruments........................... 67
7A.10 Transactions with Affiliates.............................................................. 68
7A.11 Sales and Leasebacks...................................................................... 68
7A.12 Swap Agreements........................................................................... 68
7A.13 Changes in Fiscal Periods................................................................. 69
7A.14 Negative Pledge Clauses................................................................... 69
7A.15 Clauses Restricting Subsidiary Distributions.............................................. 69
7A.16 Modifications to the MOU; Ford Loan....................................................... 69
7A.17 Business of Visteon International Holdings, Inc........................................... 70
7A.18 Cash Management........................................................................... 70
SECTION 8. DEFAULT................................................................................... 70
8.1 Defaults Relating to the Group Members.................................................... 70
8.2 Defaults Relating to Bankruptcy of the Group Members...................................... 72
SECTION 9. ASSIGNMENT; PARTICIPATIONS................................................................ 73
9.1 Successors and Assigns; Participations and Assignments.................................... 73
SECTION 10. CHANGE IN CIRCUMSTANCES................................................................... 76
10.1 Basis for Determining Interest Rate Inadequate or Unfair.................................. 76
10.2 Illegality................................................................................ 77
10.3 Increased Cost............................................................................ 78
10.4 Taxes..................................................................................... 81
10.5 Replacement of Banks...................................................................... 83
SECTION 11. THE AGENTS................................................................................ 83
11.1 Appointment............................................................................... 83
11.2 Delegation of Duties...................................................................... 83
11.3 Exculpatory Provisions.................................................................... 84
11.4 Reliance by Administrative Agent.......................................................... 84
11.5 Notice of Default......................................................................... 84
11.6 Non-Reliance on Agents and Other Banks.................................................... 85
11.7 Indemnification........................................................................... 85
11.8 Agent in Its Individual Capacity.......................................................... 86
11.9 Successor Administrative Agent............................................................ 86
11.10 Syndication Agent......................................................................... 86
SECTION 12. MISCELLANEOUS............................................................................. 87
12.1 Notices................................................................................... 87
12.2 Term of Agreement......................................................................... 87
12.3 No Waivers................................................................................ 87
12.4 New York Law and Jurisdiction............................................................. 88
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---- 12.5 Entire Agreement.......................................................................... 88 12.6 Payment of Certain Expenses............................................................... 88 12.7 Judgment Currency......................................................................... 89 12.8 Changes, Waivers, etc.; Adjustments....................................................... 90 12.9 Severability.............................................................................. 91 12.10 Successors and Assigns.................................................................... 91 12.11 Counterparts.............................................................................. 91 12.12 Third Party Beneficiaries................................................................. 92 12.13 Electronic Recording...................................................................... 92 12.14 Aggregation or Comparison of Amounts in Different Currencies; Calculation of
Certain Fees.......................................................................... 92 12.15 USA Patriot Act........................................................................... 92 12.16 Intercreditor Agreement................................................................... 92 12.17 Reserved.................................................................................. 93 12.18 Waiver of Jury Trial...................................................................... 93 12.19 Effect of Amendment and Restatement of the Existing Five-Year Revolving Credit
Agreement............................................................................. 93 12.20 Release of Guarantees and Liens........................................................... 93
Schedule 1.1A Commitments Schedule 1.1B Mortgaged Properties Schedule 1.1C MOU Properties Schedule 1.1D Subsidiary Guarantors Schedule 5.1 Restatement Issues Schedule 5.4 Consents Schedule 6.6 Litigation Schedule 5.15 Subsidiaries Schedule 5.19(a) UCC Filings Schedule 5.19(b) Mortgage Filings Schedule 7.10(a) Post-Closing Matters - Pledged Stock Schedule 7A.2(d) Existing Guarantee Obligations Schedule 7A.2(e) Existing Indebtedness of Foreign Subsidiaries Schedule 7A.2(h) Existing Permitted Receivables Financings of Foreign Subsidiaries Schedule 7A.2(o) Existing Indebtedness of Non-Wholly Owned Subsidiaries Schedule 7A.3(n) Existing Liens Schedule 7A.6(d) Share Repurchases Pursuant to Employee Programs Schedule 7A.8(l) Existing Investments Schedule 7A.15 Existing Restrictions
Exhibit A Form of Accession Memorandum Exhibit B Form of Assignment and Acceptance Exhibit C Form of Compliance Certificate Exhibit D Notices Exhibit E Form of Guarantee and Collateral Agreement Exhibit F Form of Mortgage
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---- Exhibit G Form of Notice of Borrowing Exhibit H Form of Closing Certificate Exhibit I-1 Form of Legal Opinion of Dickinson Wright PLLC Exhibit I-2 Form of Legal Opinion of Hodgson Russ LLP
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AMENDED AND RESTATED
FIVE-YEAR REVOLVING LOAN CREDIT AGREEMENT
This AMENDED AND RESTATED FIVE-YEAR REVOLVING LOAN CREDIT AGREEMENT, dated as of June 24, 2005, is among VISTEON CORPORATION, a
Delaware corporation (the "Company"), the several banks and other financial institutions or entities from time to time parties to this Agreement (the "Banks"), JPMORGAN CHASE BANK, N.A., as administrative agent (the "Administrative Agent"), and CITICORP USA, INC., as syndication agent (the "Syndication Agent").
WHEREAS, the Company has entered into a Memorandum of Understanding (the "MOU") with Ford Motor Company ("Ford") pursuant to which, among other things, (a) the Company and Ford set forth certain agreements with respect to the ongoing business relationship between the Company and Ford and their respective subsidiaries, including the timing for the payment of receivables to the Company and its subsidiaries, (b) Ford agreed to purchase certain assets and assume certain liabilities from the Company and (c) Ford agreed to make available a loan to the Company in the amount of up to $250,000,000 upon the execution of final documentation with respect to the MOU;
WHEREAS, the Company, certain of the Banks, the Administrative Agent and Bank of America N.A., as syndication agent are parties to the Five-Year Revolving Loan Credit Agreement dated June 20, 2002 (as amended, the "Existing Five-Year Revolving Credit Agreement");
WHEREAS, pursuant to the Existing Five-Year Revolving Credit Agreement, certain of the Banks have made loans and other extensions of credit to the Company;
WHEREAS, in connection with the transactions contemplated by the MOU, the Company has requested that the Existing Five-Year Revolving Credit Agreement be amended and restated in the manner provided for herein; and
WHEREAS, the parties hereto hereby agree that, subject to the satisfaction of the conditions set forth in Section 5, the Existing Five-Year Revolving Credit Agreement is hereby amended and restated in its entirety to read as follows;
NOW THEREFORE, the parties hereto hereby agree that, subject to Section 5, the Existing Five-Year Revolving Loan Credit Agreement is hereby amended and restated in its entirety as follows:
SECTION 1. DEFINITIONS
The following terms, as used herein, have the following respective meanings:
"A Revolving Obligation" has the meaning set forth in Section 2.17.
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"Accession Memorandum" means a memorandum of an Affiliate substantially in the form of Exhibit A hereto evidencing the Affiliate's agreement to be bound by the terms of this Agreement; provided that such a memorandum shall contain such changes or additional provisions as may be deemed necessary by mutual agreement of the Administrative Agent, the Affiliate and the Company.
"Adjusted Balance Sheet" has the meaning set forth in Section 5.2(d).
"Administrative Agent" has the meaning set forth in the preamble, it being understood that matters concerning Foreign Currency Loans will be administered by J.P. Morgan Europe Limited and therefore all notices concerning such Foreign Currency Loans will be required to be given at the Foreign Currency Notice Office.
"Affected Foreign Currency" has the meaning set forth in Section 10.1(c).
"Affiliate" means any direct or indirect majority-owned subsidiary of the Company and any partnership of which the Company or a direct or indirect majority-owned subsidiary of the Company is a general or unlimited partner. For purposes of this definition, "majority-owned" means ownership of more than 50% of the capital stock of or other equity interest in, or more than 50% of the voting power with respect to, an entity.
"Agents" means the Administrative Agent and the Syndication Agent collectively.
"Aggregate Commitments" means, at any time, the aggregate amount of the Commitments then in effect. The original amount of the Aggregate Commitments is $775,000,000.
"Aggregate Exposure" means, with respect to any Bank at any time, an amount equal to the principal amount of such Bank's Commitment then in effect or, if the Commitments have been terminated, the sum of (i) the principal amount of the Loans held by such Bank then outstanding and (ii) such Bank's Revolving Percentage of the L/C Obligations then outstanding.
"Aggregate Exposure Percentage" means, with respect to any Bank at any time, the ratio (expressed as a percentage) of such Bank's Aggregate Exposure at such time to the Aggregate Exposure of all Banks at such time.
"Aggregate Extensions of Credit" means at any time, the aggregate amount of Extensions of Credit of the Banks outstanding at such time.
"Aggregate Loans" means the total principal amount of all outstanding Loans.
"Agreement" means this Amended and Restated Five-Year Revolving Credit Agreement, together with the exhibits hereto, as amended from time to time.
"Amended and Restated Five-Year Term Loan Agreement" means the Amended and Restated Five-Year Term Loan Agreement dated as of the date hereof, among the Company, the
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several banks from time to time parties thereto, JPMorgan Chase Bank, N.A., as administrative agent and Citicorp USA, Inc., as syndication agent, as amended from time to time.
"Application" means an application, in such form as any Issuing Bank may specify from time to time, requesting such Issuing Bank to open a Letter of Credit.
"Approved Fund" has the meaning set forth in Section 9.1.
"Arrangers" means the collective reference to J.P. Morgan Securities Inc. and Citigroup Global Markets Inc.
"Asset Sale" means any Disposition of property or series of related Dispositions of property (excluding any such Disposition permitted by clauses (a) through (e) and (g) of Section 7A.5) that yields gross proceeds to any Group Member (valued at the initial principal amount thereof in the case of non-cash proceeds consisting of notes or other debt securities and valued at fair market value in the case of other non-cash proceeds) in excess of $1,000,000.
"Assignment and Acceptance" means an Assignment and Acceptance, substantially in the form of Exhibit B.
"Available Commitment" means as to any Bank at any time, an amount equal to the excess, if any, of (a) such Bank's Commitment then in effect over (b) such Bank's Extensions of Credit then outstanding.
"B Revolving Obligation" has the meaning set forth in Section 2.17.
"Bank Facilities Secured Parties" has the meaning set forth in the Intercreditor Agreement.
"Banks" has the meaning provided in the preamble hereto; provided, that unless the context otherwise requires, each reference herein to the Banks shall be deemed to include any Conduit Bank.
"Bank's Actual Reserve Cost" has the meaning set forth in Section 10.3(b).
"Base Rate" means for any day the greater of (i) an annual rate of interest equal to that announced generally from time to time by the Administrative Agent at its Domestic Lending Office as its prime rate, base rate or equivalent rate and in effect on such day and (ii) the Federal Funds Effective Rate plus 0.50%.
"Base Rate Loan" means any loan hereunder denominated in United States dollars which the Company (on behalf of itself or an Affiliate) specifies pursuant to Section 2.6 or Section 2.7 as a Base Rate Loan.
"Base Rate Margin" means 3.50%.
"Benefitted Bank" has the meaning set forth in Section 12.8(b).
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"Borrowing" means a borrowing hereunder consisting of a Loan made to the Company or an Affiliate by any Bank. A Borrowing is a "Domestic Borrowing" if such Loan is a Domestic Loan, a "Eurocurrency Borrowing" if such Loan is a Eurocurrency Loan or a "Foreign Currency Borrowing" if such Loan is a Foreign Currency Loan.
"Business" has the meaning set forth in Section 6.17(b).
"Calculation Date" means, with respect to each Foreign Currency, the fifteenth and last day of each calendar month (or, if such day is not a Foreign Currency Business Day, the next succeeding Foreign Currency Business Day) and such other days from time to time as the Administrative Agent shall designate as a "Calculation Date", provided that (a) the second Foreign Currency Business Day preceding the date on which each Foreign Currency Loan is made, and each date of any continuation of, any Foreign Currency Loan shall also be a "Calculation Date" with respect to such Foreign Currency and (b) with respect to any monetary limitations set forth in Section 7A (other than Section 7A.1), the date of any action taken pursuant to Section 7A (other than Section 7A.1) which is subject to such monetary limitations shall also be a "Calculation Date" but solely for purposes of Section 8.1(c).
"Capital Expenditures" means for any period, with respect to any Person, the aggregate of all expenditures by such Person and its Subsidiaries for the acquisition or leasing (pursuant to a capital lease) of fixed or capital assets or additions to equipment (including replacements, capitalized repairs and improvements during such period) th ...