EXHIBIT 10.8(c)
EXECUTION COPY
BRIDGE CREDIT AGREEMENT
among
ATMOS ENERGY CORPORATION
as Borrower,
THE LENDERS IDENTIFIED HEREIN,
AND
BANK ONE, NA
as Administrative Agent
AND
WACHOVIA BANK, NATIONAL ASSOCIATION
as Syndication Agent
AND
SUNTRUST BANK
and
SOCIETE GENERALE, NEW YORK BRANCH
as Co-Documentation Agents
DATED AS OF OCTOBER 7, 2002
BANC ONE CAPITAL MARKETS, INC.
as Sole Lead Arranger and Sole Book Manager
TABLE OF CONTENTS
PAGE SECTION 1. DEFINITIONS AND ACCOUNTING TERMS...........................................................1
1.1 Definitions....................................................................................1
1.2 Computation of Time Periods...................................................................12
1.3 Accounting Terms..............................................................................13
1.4 Time..........................................................................................13
SECTION 2. LOANS.....................................................................................13
2.1 Bridge Loan Commitment........................................................................13
2.2 Method of Borrowing for Bridge Loans..........................................................13
2.3 Funding of Bridge Loans.......................................................................14
2.4 Continuations and Conversions.................................................................14
2.5 Minimum Amounts...............................................................................15
2.6 Reductions of Bridge Loan Commitment..........................................................15
2.7 Notes.........................................................................................16
SECTION 3. PAYMENTS..................................................................................16
3.1 Interest......................................................................................16
3.2 Prepayments...................................................................................16
3.3 Payment in full at Maturity...................................................................17
3.4 Fees..........................................................................................17
3.5 Place and Manner of Payments..................................................................18
3.6 Pro Rata Treatment............................................................................18
3.7 Computations of Interest and Fees.............................................................19
3.8 Sharing of Payments...........................................................................19
3.9 Evidence of Debt..............................................................................20
SECTION 4. ADDITIONAL PROVISIONS REGARDING LOANS.....................................................21
4.1 Eurodollar Loan Provisions....................................................................21
4.2 Capital Adequacy..............................................................................22
4.3 Compensation..................................................................................23
4.4 Taxes.........................................................................................23
SECTION 5. CONDITIONS PRECEDENT......................................................................25
5.1 Closing Conditions............................................................................25
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TABLE OF CONTENTS
(continued)
PAGE
5.2 Conditions to Loans...........................................................................27
SECTION 6. REPRESENTATIONS AND WARRANTIES............................................................28
6.1 Organization and Good Standing................................................................28
6.2 Due Authorization.............................................................................28
6.3 No Conflicts..................................................................................28
6.4 Consents......................................................................................28
6.5 Enforceable Obligations.......................................................................28
6.6 Financial Condition...........................................................................29
6.7 No Material Change............................................................................29
6.8 No Default....................................................................................29
6.9 Litigation....................................................................................29
6.10 Taxes.........................................................................................29
6.11 Compliance with Law...........................................................................30
6.12 Material Agreements...........................................................................30
6.13 ERISA.........................................................................................30
6.14 Use of Proceeds...............................................................................31
6.15 Government Regulation.........................................................................31
6.16 Disclosure....................................................................................32
6.17 Environmental Matters.........................................................................32
6.18 Insurance.....................................................................................32
6.19 Franchises, Licenses, Etc.....................................................................32
6.20 Secured Indebtedness..........................................................................32
6.21 Subsidiaries..................................................................................33
SECTION 7. AFFIRMATIVE COVENANTS.....................................................................33
7.1 Information Covenants.........................................................................33
7.2 Debt to Capitalization Ratio..................................................................35
7.3 Preservation of Existence, Franchises and Assets..............................................35
7.4 Books and Records.............................................................................35
7.5 Compliance with Law...........................................................................35
7.6 Payment of Taxes and Other Indebtedness.......................................................35
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TABLE OF CONTENTS
(continued)
PAGE
7.7 Insurance.....................................................................................36
7.8 Use of Proceeds...............................................................................36
7.9 Audits/Inspections............................................................................36
SECTION 8. NEGATIVE COVENANTS........................................................................36
8.1 Nature of Business............................................................................36
8.2 Consolidation and Merger......................................................................36
8.3 Sale or Lease of Assets.......................................................................37
8.4 Arm's-Length Transactions.....................................................................37
8.5 Fiscal Year; Organizational Documents.........................................................37
8.6 Liens.........................................................................................37
SECTION 9. EVENTS OF DEFAULT.........................................................................38
9.1 Events of Default.............................................................................38
9.2 Acceleration; Remedies........................................................................42
9.3 Allocation of Payments After Event of Default.................................................42
SECTION 10. AGENCY PROVISIONS.........................................................................42
10.1 Appointment...................................................................................42
10.2 Delegation of Duties..........................................................................43
10.3 Exculpatory Provisions........................................................................43
10.4 Reliance on Communications....................................................................44
10.5 Notice of Default.............................................................................44
10.6 Non-Reliance on Administrative Agent and Other Lenders........................................44
10.7 Indemnification...............................................................................45
10.8 Administrative Agent in Its Individual Capacity...............................................45
10.9 Successor Agent...............................................................................45
SECTION 11. MISCELLANEOUS.............................................................................46
11.1 Notices.......................................................................................46
11.2 Right of Set-Off..............................................................................46
11.3 Benefit of Agreement..........................................................................47
11.4 No Waiver; Remedies Cumulative................................................................50
11.5 Payment of Expenses, etc......................................................................50
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TABLE OF CONTENTS
(continued)
PAGE
11.6 Amendments, Waivers and Consents..............................................................50
11.7 Counterparts/Telecopy.........................................................................51
11.8 Headings......................................................................................52
11.9 Defaulting Lender.............................................................................52
11.10 Survival of Indemnification and Representations and Warranties................................52
11.11 Governing Law; Venue..........................................................................52
11.12 Waiver of Jury Trial..........................................................................53
11.13 Severability..................................................................................53
11.14 Further Assurances............................................................................53
11.15 Entirety......................................................................................53
11.16 Binding Effect; Continuing Agreement..........................................................53
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TABLE OF CONTENTS
SCHEDULES Schedule 1.1(a) Commitment Percentages Schedule 1.1(b) Pricing Schedule Schedule 6.20 Secured Indebtedness Schedule 6.21 Subsidiaries Schedule 11.1 Notices
EXHIBITS
Exhibit 2.2 Form of Notice of Borrowing Exhibit 2.4 Form of Notice of Continuation/Conversion Exhibit 2.7 Form of Bridge Loan Note Exhibit 7.1(c) Form of Officer's Certificate Exhibit 11.3(b) Form of Assignment Agreement
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BRIDGE CREDIT AGREEMENT
THIS BRIDGE CREDIT AGREEMENT (this "Credit Agreement"), dated as of October 7, 2002, is entered into among ATMOS ENERGY CORPORATION, a Texas and Virginia corporation (the "Borrower"), the Lenders (as defined herein) and BANK ONE, NA as agent for the Lenders (in such capacity, the "Administrative Agent").
RECITALS
WHEREAS, the Borrower wishes, from time to time, to obtain loans in the principal sum of up to $150,000,000 and the Lenders are willing to make such loans to the Borrower, on the terms and conditions hereinafter set forth.
NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
SECTION 1.
DEFINITIONS AND ACCOUNTING TERMS
1.1 DEFINITIONS.
As used herein, the following terms shall have the meanings herein specified unless the context otherwise requires. Defined terms herein shall include in the singular number the plural and in the plural the singular.
"Adjusted Eurodollar Rate" means the Eurodollar Rate plus the
Applicable Percentage for Eurodollar Loans.
"Administrative Agent" means Bank One, NA and any successors
and assigns in such capacity.
"Affiliate" means, with respect to any Person, any other
Person directly or indirectly controlling, controlled by or under
direct or indirect common control with such Person. A Person shall be
deemed to control another Person if such Person possesses, directly or
indirectly, the power (a) to vote 10% or more of the securities having
ordinary voting power for the election of directors of such other
Person or (b) to direct or cause direction of the management and
policies of such other Person, whether through the ownership of voting
securities, by contract or otherwise.
"Agency Services Address" means 1 Bank One Plaza, 10th Floor,
Chicago, IL 60670 or such other address as the Administrative Agent may
designate in writing.
"Applicable Percentage" - See the Pricing Schedule.
"Bankruptcy Code" means the Bankruptcy Code in Title 11 of the
United States Code, as amended, modified, succeeded or replaced from
time to time.
"Base Rate" means a fluctuating rate of interest equal to the
higher of (a) the Prime Rate and (b) the sum of the Federal Funds Rate
most recently determined by the Administrative Agent plus 1/2% per
annum. If for any reason the Administrative Agent shall have determined
(which determination shall be conclusive absent manifest error) that it
is unable after due inquiry to ascertain the Federal Funds Rate for any
reason, including the inability or failure of the Administrative Agent
to obtain sufficient quotations in accordance with the terms hereof,
the Base Rate shall be determined without regard to clause (a) of the
first sentence of this definition until the circumstances giving rise
to such inability no longer exist. Any change in the Base Rate due to a
change in the Prime Rate or the Federal Funds Rate shall be effective
on the effective date of such change in the Prime Rate or the Federal
Funds Rate, respectively.
"Base Rate Loan" means a Loan which bears interest based on
the Base Rate.
"Borrower" means Atmos Energy Corporation, a Texas and
Virginia corporation.
"Borrower Obligations" means, without duplication, all of the
obligations of the Borrower to the Lenders and the Administrative
Agent, whenever arising, under this Credit Agreement, the Notes or any
of the other Credit Documents.
"Bridge Loan" means a loan made by a Lender to the Borrower
pursuant to Section 2.1(a).
"Bridge Loan Commitment" means one hundred fifty million
Dollars ($150,000,000) as such amount may be otherwise reduced in
accordance with Section 2.6.
"Bridge Loan Notes" means the promissory notes of the Borrower
in favor of each Lender evidencing the Bridge Loans and substantially
in the form of Exhibit 2.7, as such promissory notes may be amended,
modified, supplemented or replaced from time to time.
"Business Day" means any day other than a Saturday, a Sunday,
a legal holiday or a day on which banking institutions are authorized
or required by law or other governmental action to close in Chicago,
Illinois; provided that in the case of Eurodollar Loans, such day is
also a day on which dealings between banks are carried on in U.S.
dollar deposits in the London interbank market.
"Capital Stock" means (a) in the case of a corporation, all
classes of capital stock of such corporation, (b) in the case of a
partnership, partnership interests (whether general or limited), (c) in
the case of a limited liability company, membership interests and (d)
any other interest or participation that confers on a Person the right
to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.
"Change of Control" means either of the following events:
(a) any "person" or "group" (within the meaning of
Section 13(d) or 14(d) of the Exchange Act) has become,
directly or indirectly, the "beneficial
2
owner" (as defined in Rules 13d-3 (other than subsection (d)
thereof) and 13d-5 under the Exchange Act), by way of merger,
consolidation or otherwise of 40% or more of the voting power
of the Borrower on a fully-diluted basis, after giving effect
to the conversion and exercise of all outstanding warrants,
options and other securities of the Borrower convertible into
or exercisable for voting stock of the Borrower (whether or
not such securities are then currently convertible or
exercisable); or
(b) during any period of two consecutive calendar
years, individuals who at the beginning of such period
constituted the board of directors of the Borrower together
with any new members of such board of directors whose
elections by such board or board of directors or whose
nomination for election by the stockholders of the Borrower
was approved by a vote of a majority of the members of such
board of directors then still in office who either were
directors at the beginning of such period or whose election or
nomination for election was previously so approved cease for
any reason to constitute a majority of the directors of the
Borrower then in office.
"Closing Date" means the date hereof.
"Code" means the Internal Revenue Code of 1986, as amended
from time to time, and the rules and regulations promulgated
thereunder.
"Commitment Percentage" means, for each Lender, the percentage
identified as its Commitment Percentage opposite such Lender's name on
Schedule 1.1(a), as such percentage may be modified by assignment in
accordance with the terms of this Credit Agreement.
"Commitments" means, collectively, each Lender's share of the
Bridge Loan Commitment based upon such Lender's Commitment Percentage,
as reflected on Schedule 1.1(a).
"Consolidated Capitalization" means, without duplication, the
sum of (a) all of the shareholders' equity or net worth of the Borrower
and its Subsidiaries on a consolidated basis, as determined in
accordance with GAAP plus (b) the aggregate principal amount of
Preferred Securities plus (c) the aggregate Minority Interests in
Subsidiaries plus (d) Consolidated Funded Debt.
"Consolidated Funded Debt" means, without duplication, the sum
of (a) all indebtedness of the Borrower and its Subsidiaries for
borrowed money, (b) all purchase money indebtedness of the Borrower and
its Subsidiaries, (c) the principal portion of all obligations of the
Borrower and its Subsidiaries under capital leases, (d) all commercial
letters of credit and the maximum amount of all performance and standby
letters of credit issued or bankers' acceptance facilities created for
the account of the Borrower or one of its Subsidiaries, including,
without duplication, all unreimbursed draws thereunder, (e) all
Guaranty Obligations of the Borrower and its Subsidiaries with respect
to funded indebtedness of another Person; provided that neither the
indebtedness of Woodward
3
Marketing, LLC ("Woodward") incurred in connection with the purchase of
gas by Woodward for resale to the Borrower nor the guaranty by the
Borrower or one of its Subsidiaries of such indebtedness shall be
included in this definition if such indebtedness has been outstanding
for less than two months from the date of its incurrence by Woodward,
(f) all indebtedness of another entity secured by a Lien on any
property of the Borrower or any of its Subsidiaries whether or not such
indebtedness has been assumed by the Borrower or any of its
Subsidiaries, (g) all indebtedness of any partnership or unincorporated
joint venture to the extent the Borrower or one of its Subsidiaries is
legally obligated with respect thereto, net of any assets of such
partnership or joint venture, (h) all obligations of the Borrower and
its Subsidiaries to advance or provide funds or other support for the
payment or purchase of funded indebtedness (including, without
limitation, maintenance agreements, comfort letters or similar
agreements or arrangements) (other than as may be given in respect of
Woodward) and (i) the principal balance outstanding under any synthetic
lease, tax retention operating lease, off-balance sheet loan or similar
off-balance sheet financing product of the Borrower or one of its
Material Subsidiaries where such transaction is considered borrowed
money indebtedness for tax purposes but is classified as an operating
lease in accordance with GAAP.
"Consolidated Net Property" means the Fixed Assets less,
without duplication, the amount of accumulated depreciation and
amortization attributable thereto.
"Credit Documents" means this Credit Agreement, the Notes, any
Notice of Borrowing and all other related agreements and documents
issued or delivered hereunder or thereunder or pursuant hereto or
thereto.
"Debt to Capitalization Ratio" means the ratio of (a)
Consolidated Funded Debt to (b) Consolidated Capitalization.
"Default" means any event, act or condition which with notice
or lapse of time, or both, would constitute an Event of Default.
"Defaulting Lender" means, at any time, any Lender that, at
such time (a) has failed to make a Loan required pursuant to the term
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