Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to: (i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing; (ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders; (iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing; (iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and (v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request. (b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing. (c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 2 contracts
Sources: Merger Agreement (Empire District Electric Co), Merger Agreement (Algonquin Power & Utilities Corp.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05The Company shall, and unless otherwise agreed by Parentshall cause its Subsidiaries to, the Company will use and shall cause its reasonable best efforts to cooperate with Parent and its Affiliates as their Representatives to, provide all cooperation reasonably requested by Parent in connection with Parent’s arrangement financing arrangements (including amendments, supplements, modifications, repayments, refinancings, terminations or prepayments of existing financing arrangements and new financings) as Parent may reasonably determine to be necessary or advisable in connection with the completion of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity Merger or debt capital markets financings the other transactions contemplated by the Debt Letters)hereby or to be consummated in connection therewith. Such cooperation will shall include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation participating in bank a reasonable and mutually agreed number of meetings, presentations or due diligence sessions, meetings sessions upon reasonable advance notice and (ii) providing reasonable and timely assistance with ratings agencies and road shows, reasonable assistance in the preparation of confidential information materials for presentations, offering memoranda, private placement memoranda, prospectuses, presentations prospectuses and similar documents as may be reasonably requested by Parent required in connection with such financing arrangements. Notwithstanding the foregoing or any Financing Partyanything set forth in Section 1.1(b) or Section 5.12(c), in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise shall not be required pursuant to applicable Law Section 1.1(b), this Section 5.12(a) or the rules Section 5.12(c) to (A) enter into any letter, certificate, document, agreement or regulations of any national securities exchange in connection with the Merger or any alternative financing thereforinstrument (other than customary authorization and representation letters and notices), and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may Company Board will not be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as adopt any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, furtherresolutions, that nothing in this Agreement shall require will be effective prior to the Company to cause Closing (or if the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iiiClosing does not occur), (2B) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any provide such cooperation to the extent that it would (1) require disrupt unreasonably the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiariesany of its Subsidiaries or require any of them to take any actions that would reasonably be expected to violate applicable Law, any Contract or their respective Organizational Documents, (3C) require provide information to the extent such information would not be required to be provided pursuant to the first proviso to the first sentence of Section 5.2 (subject to the second proviso to such sentence), (D) take any actions, or omit to take an action, that would reasonably be expected to result in any personal liability for the directors, officers, employees or stockholders of the Company or any of its Subsidiaries or (E) would reasonably be expected to cause any representation, warranty or covenant in this Agreement to be breached by the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors its Subsidiaries (unless waived by Parent and Merger Sub) or equivalent bodies) cause any closing condition set forth in Article VI to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation fail to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingsatisfied.
(cb) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees any reasonable and documented costs and expenses (including fees legal expenses but excluding costs of the Company’s preparation of financial information and expenses financial statements in connection with its compliance with its periodic reporting obligations under the Exchange Act or otherwise in the ordinary course of counsel and accountantsbusiness) incurred by the Company, any of the Company Subsidiaries, or any of its or their Representatives Subsidiaries in connection with any providing the cooperation contemplated required by this Section 5.05 1.1(b), Section 5.12(a) or Section 5.12(c) and (ii) indemnify and hold harmless the Company, the Company its Subsidiaries and its and their respective Representatives against from any claimlosses, lossdamages, damagefines, injuryamounts paid in settlement (with the consent of Parent, liabilitynot to be unreasonably withheld, judgment, award, penalty, fine, Tax, cost (including cost of investigationdelayed or conditioned), expense costs or expenses arising out of or relating to such cooperation (including fees and other than to the extent such losses, damages, costs or expenses of counsel and accountants) or settlement payment are incurred as a result ofof gross negligence, bad faith or willful misconduct of the Company, any of its Subsidiaries or any of their respective Representatives or any such Person’s material breach of this Agreement, or with respect to any material misstatement or omission in information provided hereunder by any of the foregoing Persons for use in connection herewith or in connection withwith any financing arrangement).
(c) The Company shall, and shall cause its Subsidiaries to, use commercially reasonable efforts to, as soon as reasonably practicable after (and not prior to) the receipt of a written request from Parent to do so, on the terms and conditions specified by Parent and in compliance with all applicable terms and conditions of the applicable Company Debt Agreement, seek an amendment or amendments to any of the Company Debt Agreements and to take any other actions requested by Parent, in each case, in connection with any approach chosen by Parent to the defeasance, satisfaction and discharge, constructive satisfaction and discharge, refinancing, repayment, repurchase, redemption, termination, amendment, assumption, guarantee or purchase of, compliance with or any other treatment of, the Company Debt Agreements and the Indebtedness incurred pursuant thereto, in each case, subject to the occurrence of the Closing (any such transaction, a “Debt Transaction”). The Company shall not be required to take any action in respect of any Debt Transaction until Parent shall have provided the Company with drafts of the necessary documentation required in connection with such Debt Transaction (collectively, the “Debt Transaction Documents”). The Company shall use commercially reasonable efforts to, and shall cause its Subsidiaries to use commercially reasonable efforts to, cause its and their respective Representatives to provide cooperation and assistance reasonably requested by Parent in connection with the Debt Transactions (including taking all corporate action reasonably necessary to authorize the execution and delivery of any Debt Transaction Documents to be entered into prior to Closing and delivering all officer’s certificates and legal opinions required to be delivered in connection therewith (such corporate action, execution and delivery not to be unreasonably withheld, delayed or conditioned)); provided, that the effectiveness of any such Debt Transaction Documents shall be expressly conditioned on the Closing. It is understood and agreed that a failure to effectuate any Debt Transaction in and of itself shall not constitute a failure by the Company to satisfy its obligations under this Section 5.12(c).
(d) The Company shall, and shall cause its Subsidiaries to, after (and not prior to) the receipt of a written request from Parent to do so, deliver all notices and use commercially reasonable efforts to take all other actions to facilitate the termination at the Effective Time of all commitments in respect of the Company Credit Facilities and any other Indebtedness of the Company to be paid off, discharged and terminated on the Closing Date, in each case as and to the extent specifically requested by Parent in writing, the repayment in full on the Closing Date of all obligations in respect of the Indebtedness thereunder, and the release on the Closing Date of any Liens securing such Indebtedness and guarantees in connection therewith (it being understood that, to the extent customary for the applicable type of Indebtedness, the recording of any Lien release documentation related thereto may occur immediately following the Closing, provided that the applicable Payoff Letter (as defined below) shall have authorized the Parent or the Financing Company to make such recording). In furtherance and not in limitation of the foregoing, after (and not prior to) the receipt of a timely written request from Parent to do so, the Company and its Subsidiaries shall use commercially reasonable efforts to deliver to Parent (i) at least five (5) Business Days prior to the Closing Date, draft payoff letters with respect to the Company Credit Facilities and any information used other Indebtedness of the Company to be paid off, discharged and terminated on the Closing Date and (ii) at least two (2) Business Days prior to the Closing Date, an executed payoff letter (the “Payoff Letters”) with respect to each of the Company Credit Facilities to be repaid and any other Indebtedness of the Company to be paid off, discharged and terminated on the Closing Date, in each case in form and substance customary for transactions of this type, from the applicable agent on behalf of the Persons to whom such Indebtedness is owed, which Payoff Letters together with any related release documentation shall, among other things, include the payoff amount and provide that Liens (and guarantees), if any, granted in connection therewithwith the Company Credit Facilities or any other Indebtedness of the Company to be paid off, discharged and terminated on the Closing Date relating to the assets, rights and properties of the Company and its Subsidiaries securing or relating to such Indebtedness, shall, upon the payment of the amount set forth in the applicable Payoff Letter at or prior to the Effective Time, be released and terminated.
(e) All confidential information regarding the Company and its Subsidiaries provided by the Company and its Subsidiaries pursuant to this Section 5.12 shall be kept confidential in accordance with the terms of the Confidentiality Agreement, except that Parent shall be permitted to disclose any such information to any actual or potential sources of or arrangers of, underwriters or purchasers of or agents in respect of any financing arrangements Parent may reasonably determine to be necessary or advisable in connection with the completion of the Merger or the other transactions contemplated hereby or to be consummated in connection therewith or to any other Person with whom Parent enters or may enter into an agreement relating to any such financing transaction, subject to customary confidentiality undertakings by the recipients of such information.
Appears in 2 contracts
Sources: Merger Agreement (New Senior Investment Group Inc.), Merger Agreement (Ventas, Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant The Company agrees to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with provide, and shall cause its Subsidiaries and use reasonable best efforts to cause its Representatives to use reasonable best efforts to provide, in each case at Parent’s sole expense, such customary cooperation as may be reasonably requested in writing by the Parent and its Affiliates as reasonably requested Merger Sub for the arrangement of any debt or equity financing by Parent in connection with Parent’s arrangement or any of its Subsidiaries to finance the Financing Transactions (whichthe “Financing”), solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using reasonable best efforts to:
(i) make appropriate officers furnish to Parent and Merger Sub the Business Financial Statements and such other historical financial information regarding the Company and its Subsidiaries as is reasonably availableavailable to the Company at such time, customarily required in connection with the execution of financings of a type similar to the Financing and reasonably requested by ▇▇▇▇▇▇ in writing;
(ii) upon reasonable prior notice and at reasonable times and locations to be mutually agreed, cause members of management of the Company with appropriate advance noticeseniority and expertise to participate in a reasonable number of rating agency presentations, for participation in bank meetings, lender presentations and due diligence sessions, meetings in each case in connection with ratings agencies the Financing (including with providers or potential providers of the Financing), in each case which shall be virtual unless otherwise agreed to by the Company;
(iii) provide reasonable and road shows, reasonable timely assistance in the preparation of confidential information memorandacustomary lender and investor presentations (including “roadshow” or investor meeting slides), rating agency presentations, prospectus, offering memorandum, private placement memorandamemorandum, prospectuses, presentations bank information memoranda and similar customary documents as may be reasonably requested (including cooperation to incorporate by Parent reference therein information included in the SEC filings of the Company) or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates material for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
provide at least four (v) furnish Parent and the Financing Parties, within five (54) Business Days following written request, such prior to the Closing Date all documentation and other information related to the Company as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. providedUSA Patriot Act of 2001 and Beneficial Ownership Certificates, furtherto the extent required in order to consummate the Financing and requested in writing at least nine (9) Business Days prior to the Closing Date;
(v) in the case of any Financing consisting of an offering of debt securities or equity securities, that nothing in this Agreement shall require cause the certified independent auditors of the financial statements of the Company to cause the delivery (A) furnish customary consents for use of (1) legal their audit opinions in any materials related to any debt securities or reliance letters or any certificate equity securities offerings as to solvency or any other certificate necessary for part of the Financing, other (B) provide, consistent with customary practice, customary comfort letters (including “negative assurance” comfort and change period comfort) with respect to customary financial information relating to the Company and its Subsidiaries as necessary or customary for financings similar to such Financing and (C) attend a reasonable number of accounting due diligence sessions and drafting sessions, in each case which shall be virtual unless otherwise agreed to by the Company;
(vi) cooperate with Parent in Parent’s replacement or backstop, effective no earlier than as provided by Section 5.05(a)(iii)the Closing, of any outstanding letters of credit or similar obligations or items issued for the account of the Company and its Subsidiaries;
(vii) assist Parent with its preparation of projections and pro forma financial information (including pro forma financial statements) of the type customarily included in offering documents or marketing materials for financings similar to the Financing, it being agreed that the Company will not be required to provide any information or assistance relating to (A) the proposed aggregate amount of debt financing, together with assumed interest rates, dividends (if any) and fees and expenses relating to the incurrence of any debt financing, (2B) any post-Closing or pro forma cost savings, synergies, capitalization or ownership desired to be incorporated into any information used in connection with the Financing or (C) any financial information for any period, including any audited financial information related to Parent or any financial information prepared of its Subsidiaries;
(viii) assist Parent in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933preparation and negotiation by Parent of, as amendedand (not prior to the Closing) execution and delivery of, in any case in a form not customarily prepared by the Company definitive agreements with respect to such period, other than the Financing (the “Definitive Financing Agreements”) and the schedules and exhibits thereto as provided may reasonably be requested by Section 5.05(a)(iiParent or Merger Sub; and
(ix) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date extent required by the Financing, facilitate the pledging of such requestcollateral (provided, that (A) none of the documents or certificates shall be executed and/or delivered except in connection with, and not earlier than, the Closing and (B) the effectiveness thereof shall be conditioned upon, or become operative after, the occurrence of the Closing).
(b) The Company shall, as promptly as reasonably practicable, at Parent’s sole expense (to the extent required under Section 6.24(d)), to the extent necessary or desirable for Parent’s arrangement of the Financing, (i) furnish to Parent and Merger Sub the Business Financial Statements based on the Closing Date and (ii) if requested by Parent or Merger Sub, execute and deliver customary authorization letters (without a “knowledge qualifier”) to the Financing providers authorizing the distribution (subject to customary restrictions relating to distribution of material non-public information to “private side” financing sources) of information regarding the Company to prospective lenders or investors in connection with the Financing (“Financing Authorization Letters”).
(c) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): to the contrary, (i) nothing in this Agreement (including this Section 5.056.24(a), Section 6.24(b) or Section 6.24(g) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of its Subsidiaries or Representatives to take or permit the taking of any action to the extent that it could unreasonably disrupt or interfere in any material respect with the business or the operations of the Company or any of its Subsidiaries, taken as whole, (ii) nothing in Section 6.24(a), Section 6.24(b) or Section 6.24(g) shall require the Company or any of its Subsidiaries or Representatives to take or permit the taking of any action to the extent that it could (A) subject any of the Company’s or its Subsidiary’s respective directors, managers, officers or employees to any personal liability or (B) cause any condition to the Closing to not be satisfied, (iii) prior to Closing neither the Company nor any of its Subsidiaries shall be required to (A) pay any commitment or other similar fee or incur or assume any liability or other obligation in connection with the Financing or any of the actions contemplated by Section 6.24(g), (B) deliver or obtain opinions of internal or external counsel, (C) provide access to or disclose information where such access or disclosure could jeopardize the attorney-client privilege (or other applicable privilege or protection of the Company or any of its Affiliates) or contravene any material Law or material contractual obligation, (D) take any action that would cause any representation or warranty in this Agreement to be breached by the Company or any of its Subsidiaries or (E) require the Company to prepare or deliver any Excluded Information and (iv) none of the Company or any of its Subsidiaries shall be required to execute, deliver or enter into or approve perform any agreement Definitive Financing Agreement or any other documentation effective certificate (except with respect to any instrument expressly contemplated to be so executed prior to the Closing pursuant to Schedule 6.24(g) of the Company Disclosure Letter), document, instrument or agreement (other than the execution of the Financing Authorization Letters) or agree to any change or modification of any existing certificate, document, instrument or agreement or adopt any resolutions or take any other documentation that would actions approving the agreements, documents and instruments pursuant to which the Financing is obtained or the actions contemplated by Section 6.24(g) (except with respect to any instrument expressly contemplated to be effective so executed by the Company prior to Closing pursuant to Schedule 6.24(g) of the Company Disclosure Letter) are taken, including any Definitive Financing Agreement or any supplemental indenture prior to the occurrence of the Closing (provided, that the Company will, to the extent otherwise required hereby, use reasonable best efforts to cause Persons who will continue as officers or (4) directors, as applicable, of the Company and its Subsidiaries after the occurrence of Closing, and who will not be removed or replaced in connection therewith, to pass resolutions and to execute documents in their capacities as such officers or directors, in each case which resolutions and documents are subject to and conditioned upon, and do not become effective until, the occurrence of Closing). Nothing contained in this Section 6.24 or otherwise in this Agreement shall require the CompanyCompany or any of its Affiliates, prior to the Closing, to be an issuer or other obligor with respect to the Financing. The Company hereby consents to the use of logos of the Company and its Subsidiaries in connection with the Financing (or any replacement thereof); provided, that such logos are used solely in a manner that is not intended to, nor reasonably likely to, harm or disparage the Company and its Subsidiaries.
(d) Parent shall indemnify, defend and hold harmless each of the Company and its Subsidiaries and each of their respective Representatives (the “Financing Indemnified Parties”) from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by them in connection with the Financing and the performance of their respective obligations under Section 6.24, other than to the extent any of the Company Subsidiaries foregoing arises from (i) the bad faith, gross negligence, fraud, or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, willful misconduct by such Financing Indemnified Party and (ii) no actionfrom any errors, liability omissions, misrepresentation or obligation inaccuracies set forth in any information (including any obligation to pay any commitment including, without limitation, the Company SEC Documents or other fees historical information) provided by or reimburse behalf of any expenses) of the CompanyFinancing Indemnified Parties pursuant to Section 6.24(a), its SubsidiariesSection 6.24(b) or Section 6.24(g). Parent shall, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by of the Company, reimburse the Company for all of its fees reasonable, documented out-of-pocket third-party fees, costs and expenses (including fees and expenses of counsel and accountants) incurred by the Company and its Subsidiaries in connection with the cooperation required by Section 6.24(a), Section 6.24(b) or Section 6.24(g); provided, that the Company and its Subsidiaries, and not Parent or Merger Sub, shall be responsible for (x) fees, costs and expenses incurred in connection with the preparation of the Company SEC Documents and any historical financial statements that are or would be prepared in the ordinary course of business regardless of the Financing, and (y) any amounts that would have been incurred in connection with the transactions contemplated hereby regardless of the Financing.
(e) The parties hereto acknowledge and agree that the provisions contained in this Section 6.24 represent the sole obligation of the Company and its Subsidiaries with respect to cooperation in connection with the arrangement of any financing (including the Financing) to be obtained by Parent with respect to the transactions contemplated by this Agreement, and no other provision of this Agreement (including the Exhibits and Schedules hereto) shall be deemed to expand or modify such obligations. In no event shall the receipt or availability of any funds or financing (including the Financing) by Parent any of its Affiliates or any other financing or other transactions be a condition to any of Parent’s obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, the Company, ’s breach of any of the covenants required to be performed by it under this Section 6.24 shall not be considered in determining the satisfaction of the condition set forth in Section 7.2(b), unless such breach is a Willful and Material Breach and is the primary cause of Parent being unable to obtain at Closing the proceeds of the Financing required by Parent to satisfy its payment obligations under this Agreement on the Closing Date (including in respect of repayment in full of the Company’s Indebtedness under the Existing Credit Agreement).
(f) All non-public or otherwise confidential information regarding the Company Subsidiaries, or any of its Affiliates obtained by Parent or their Representatives in connection with any cooperation contemplated by its representatives pursuant to this Section 5.05 6.24 shall be kept confidential in accordance with the Confidentiality Agreement.
(g) The Company shall use reasonable best efforts to, and (ii) indemnify shall cause each of its Subsidiaries to use reasonable best efforts to, and hold harmless the Company, the Company Subsidiaries and shall use reasonable best efforts to cause its and their Representatives against any claimto, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost provide all reasonable and customary cooperation to Parent as may be reasonably requested by Parent in writing to assist (including cost of investigation), expense (including fees and expenses of counsel and accountantsby delivering customary officer’s certificate as necessary) or settlement payment incurred as a result of, or Parent in connection withwith Parent’s or its Subsidiaries’ amendment or supplement, such cooperation no earlier than Closing, to any Existing Senior Notes Indenture under the applicable provisions thereof allowing supplement or amendment thereof without consent of holders of the Financing and any information used in connection therewithsecurities issued thereunder. The Company shall comply with its obligations under Schedule 6.24(g) of the Company Disclosure Letter.
Appears in 2 contracts
Sources: Merger Agreement (Compass, Inc.), Merger Agreement (Anywhere Real Estate Inc.)
Financing Cooperation. (a1) From Prior to the date hereof until Closing, the Closing Vendor shall (or and shall cause the earlier termination Corporation to), at the sole cost and expense of this Agreement pursuant the Purchaser (subject to Section 8.017.2(2) below), subject use their commercially reasonable efforts to cause the limitations set forth in this Section 5.05applicable officers, Employees and unless otherwise agreed by Parentadvisors, including legal and accounting, of the Company will use its reasonable best efforts Corporation, to cooperate with Parent the Purchaser as necessary in connection with the arrangement of any financing as may be customary and its Affiliates as reasonably requested by Parent in connection the Purchaser (provided that such requested cooperation does not unreasonably interfere with Parent’s arrangement the ongoing operations of the Financing (whichCorporation), solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using their commercially reasonable best efforts to:
(ia) make appropriate officers reasonably available, with appropriate advance notice, for participation participate at reasonable times in bank a reasonable number of meetings, presentations and due diligence sessions, meetings with ratings agencies ; (b) assist the Purchaser and road shows, reasonable assistance any financing sources in the preparation of confidential bank information memoranda, private placement memoranda, prospectuses, presentations memoranda and similar documents for any portion of financing; (c) take all corporate actions reasonably requested by the Purchaser to permit the consummation of a financing and to permit the proceeds thereof to be made available to the Purchaser at Closing; (d) execute and deliver any customary credit agreements and pledge and security documents and otherwise reasonably facilitate the granting of a security interest (and perfection thereof) in collateral, guarantees, mortgages, other definitive financing documents or other certificates, customary closing certificates (including a solvency certificate) and documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion Purchaser (provided that no obligation of the Financing;
Corporation under any agreement or financing document contemplated in this Section 7.2(1) shall be effective until Closing); (iie) furnish Parent and the Financing Parties with copies of such financial data obtain customary authorization letters with respect to the Company bank information memoranda and its Subsidiaries which is prepared by the Company in the ordinary course consents of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar accountants to the Financing committed pursuant use of their reports in any materials relating to a financing; and (f) cooperate reasonably with the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Companyfinancing sources, to the extent required in connection with the marketing customary and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, reasonable and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) not unreasonably interfere interfering with the ongoing business or operations of the Company Corporation; provided, however, that the Vendor and the Corporation shall not be obligated to provide or the Company Subsidiaries, (3) require the Company or be responsible for any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the post-Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Companypro forma statements, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiariesinformation, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating adjustments desired to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and incorporated into any information used in connection therewithwith procurement of the financing unless already required to be provided by the Vendor for the Prospectus.
(2) The Purchaser shall promptly reimburse the Vendor for all reasonable and documented out-of-pocket costs incurred by the Corporation or the Vendor in connection with such cooperation (it being understood and agreed, however, that the Purchaser shall not be responsible for any amounts that would have been incurred in connection with the transactions contemplated hereby regardless of efforts to obtain financing, or otherwise incurred independently of the transactions contemplated hereby).
(3) In the event that the minimum cash requirement in section 7.03(E) of the Signing Date Sagicor Arrangement Agreement is not met due to excessive redemptions of Alignvest Class A Shares, (a) Alignvest shall use reasonable commercial efforts to seek to obtain additional debt or equity or other financing sufficient to restore Alignvest’s cash level to meet such minimum cash requirement, or make other appropriate arrangements to seek to complete the Sagicor Acquisition Closing, and (b) Sagicor shall use reasonable commercial efforts to cooperate with Alignvest’s efforts to seek to obtain such financing.
Appears in 2 contracts
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant The Company shall provide to Section 8.01), subject to the limitations set forth in this Section 5.05Parent, and unless otherwise agreed by shall cause the respective officers and employees of the Company, and use its commercially reasonable efforts to cause the Representatives of the Company to provide to Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as at Parent’s sole expense, all cooperation reasonably requested by Parent that is necessary or reasonably required in connection with Parent’s arrangement any third party debt financing transaction or underwritten public offering of Parent Common Stock for cash that Parent may pursue prior to the Financing Closing Date, including the following: (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(ia) make appropriate officers furnishing Parent as promptly as reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested practicable upon request by Parent or any Financing Partywith all financial statements, in each case, with respect to financial data and other information relating to regarding the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared type that would be required by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X and Regulation S-K promulgated under the Securities Act for a public offering of 1933, as amended, securities of Parent (including for use in Parent’s preparation of pro forma financial statements); and identify any such financial information as suitable for distribution to “public side” lenders;
(iiib) request that requesting the Company’s independent accountants participate in drafting sessions to prepare and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on deliver “comfort letters,” dated the date of this Agreement) or each final offering document used in connection with a customary any securities offering of securities, including the type described in the Commitment Letter, consistent by Parent (with their customary practice, including requesting that they provide customary consents and appropriate bring-down comfort letters delivered on the closing date of any such offering), in compliance with professional standards (including providing “negative assurance” comfort)comfort and Statement on Auditing Standards No. 100 review of interim financial statements) and otherwise on terms reasonably acceptable to Parent, including in respect of historical financial statements of as the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as case may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financingbe; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, furtherhowever, that nothing in this Agreement shall require the Company to cause the delivery none of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company its Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would shall be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation required to pay any commitment fee or incur any liability in connection with any such financing, and no personal liability shall be imposed on any officers, directors or other fees or reimburse any expenses) Representatives of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) . Parent shall (i) promptly promptly, upon request by the Company, reimburse the Company for all of its reasonable and documented out-of-pocket costs and expenses paid to third parties (including advisor’s fees and expenses (including fees and expenses of counsel and accountantsexpenses) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any the cooperation contemplated by this Section 5.05 provided in connection with the foregoing and (ii) indemnify and hold harmless the Company, the Company its Subsidiaries and its their respective officers, directors and their other Representatives from and against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgmentexpenses, awardinterest, penaltyawards, finejudgments and penalties (collectively, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants“Losses”) suffered or settlement payment incurred as a result of, or by them in connection withwith any such financing transaction or public offering, such cooperation or the Financing and any information used utilized in connection therewith; provided, however, that the foregoing indemnity shall not apply with respect to any Losses resulting from a willful or intentional breach of any representation, warranty, covenant or agreement of the Company or any Company Subsidiaries under this Agreement. All non-public or otherwise confidential information regarding the Company and Company Subsidiaries obtained by Parent, its Affiliates or their Representatives pursuant to this Section 6.14 shall be kept confidential in accordance with the terms of the Parent Confidentiality Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Thomas Properties Group Inc), Merger Agreement (Parkway Properties Inc)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.055.06, and unless otherwise agreed by Parent, the Company will, and will cause each of its Subsidiaries to, and will use its reasonable efforts to cause its and its Subsidiaries’ Representatives to, use its or their reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.055.06 and the use of the term Financing Party in this Section 5.06, shall include any alternative equity or debt capital markets financings contemplated by financings, all or a portion of which will be used to fund the Debt LettersCash Consideration). Such cooperation will include using reasonable best efforts to:
(i) make cooperate with the marketing efforts of Parent for all or any part of the Financing, including making appropriate officers reasonably available, with appropriate advance notice, for participation in bank lender or investor meetings, due diligence sessions, meetings with ratings agencies and road shows, and reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, lender and investor presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary such marketing efforts of Parent and its Affiliates for all or any portion of the Financingefforts;
(ii) furnish Parent and the Financing Parties with copies of such financial data the Required Financial Information and any other information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily (A) required for the marketing, arrangement and syndication of financings similar to the Financing committed pursuant or (B) used in the preparation of customary offering or information documents or rating agency, lender presentations or road shows relating to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersFinancing;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, ) to the extent required in connection with the marketing and syndication of the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in contemplated by the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingFinancing;
(iv) furnish obtain or provide certificates and other customary documents (other than legal opinions) relating to legal counsel of Parent and to legal counsel of any the Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; andParent;
(v) furnish Parent and cooperate in satisfying the conditions precedent set forth in any definitive documentation relating to the Financing Partiesto the extent the satisfaction of such condition reasonably requires the cooperation of, or is within five the control of, the Company;
(5vi) Business Days following written request, such furnish all documentation and other information as required by a Governmental Entity or any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT ActACT (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), to the extent reasonably requested by Purchaser at least 10 Business Days prior to the anticipated Closing Date;
(vii) assist Parent in obtaining any credit ratings from rating agencies contemplated by the Debt Letters; and
(viii) use reasonable best efforts to obtain such consents, waivers, estoppels, approvals, authorizations and instruments which may be requested by Parent in connection with the Financing; provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided allowed by Section 5.05(a)(iii5.06(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in or any case financial information in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) period or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 forty-five (45) days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.055.06): (i) nothing in this Agreement (including this Section 5.055.06) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company its Subsidiaries, or (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing. The Company hereby consents to the use of its and its Subsidiaries’ logos in connection with the Financing in a form and manner mutually agreed with the Company; provided, however, that such logos are used solely in a manner that is not intended, or reasonably likely, to harm or disparage the Company or its Subsidiaries or any of their respective subsidiaries or the reputation or goodwill of any of the foregoing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its reasonable and documented out-of-pocket fees and expenses (including reasonable fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 5.06 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewiththerewith other than those claims, losses, damages, injuries, liabilities, judgments, awards, penalties, fines, costs, expenses and settlement payment arising out of or resulting from the gross negligence, fraud or willful misconduct of the Company, any of the Company Subsidiaries or any of their respective Representatives as finally determined by a court of competent jurisdiction.
Appears in 2 contracts
Sources: Merger Agreement (Kansas City Power & Light Co), Merger Agreement (Westar Energy Inc /Ks)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts to cooperate with Parent provide, and shall cause each of its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement Subsidiaries and each of the Financing (whichtheir respective officers, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using employees and Representatives to use reasonable best efforts to:
(i) make appropriate officers reasonably availableto provide, with appropriate advance noticeto Parent, for participation in bank meetingsGuarantor and Merger Sub, due diligence sessionsat Guarantor’s sole cost and expense, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents all cooperation on a timely basis as may be reasonably requested by Parent or any its Representatives in connection with obtaining the Debt Financing Partyand the arrangement, in each casesyndication and consummation thereof, with respect to information relating to including (i) participating, and causing appropriate advisors of the Company and appropriate members of management of the Company and its Subsidiaries with appropriate seniority and expertise to participate, in a reasonable number of calls, meetings, presentations, due diligence sessions, road shows, and drafting sessions with Representatives of Guarantor, any Debt Financing Sources (or, in connection with customary marketing syndication efforts of Parent for the Debt Financing, Persons who may become Debt Financing Sources), investors and its Affiliates for all or any portion of rating agencies (as the Financing;
case may be), at reasonable times and with reasonable advance notice, and in each case which may be virtual; (ii) furnish Parent assisting in the preparation of (A) materials for any rating agency presentations and (B) any syndication documents and materials, including lender and investor presentations, rating and bank books, information memoranda (confidential and public) (collectively, the “Syndication Documentation”), including by providing all documentation and information within the Company’s possession or control for due diligence purposes reasonably requested by ▇▇▇▇▇▇, Guarantor or their respective Representatives in connection with such Debt Financing; (iii) (A) cooperating with advisors, consultants and accountants of Parent, Guarantor and the Debt Financing Parties with copies Sources or potential sources of such financial data Debt Financing (or their designees) with respect to the conduct of any audit, examination, appraisal or review of the financial condition or any of the assets or liabilities of the Company and or any of its Subsidiaries which is prepared by the Company in the ordinary course of business and policies and procedures relating thereto (and providing all relevant information or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is documentation reasonably requested by Parent or any Financing Party and is customarily required in connection therewith), including for the arrangement purpose of establishing collateral eligibility and syndication of financings similar values; (B) assisting Parent and Guarantor to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) establish or maintain cash management procedures and/or bank accounts in connection with a any Debt Financing; and (C) cooperating with any back stop, “roll over” or termination of any existing letters of credit in connection with any Debt Financing Documents (it being understood and agreed that any prepayment and/or redemption are (and shall be) contingent upon the occurrence of the Closing and no actions shall be required which would obligate the Company or its Subsidiaries to complete such prepayment or redemption prior to the occurrence of the Closing); (iv) to the extent customary offering and not prohibited by applicable Law, assisting and facilitating the granting of securitiesguaranty, including the type described security interest or pledging of collateral related to such Debt Financing (and any perfection of such security interests or collateral pledges); provided, that any collateral to be pledged or security interest to be granted by Parent, Guarantor or Merger Sub in the Commitment Letter, consistent connection with their customary practice, including requesting such Debt Financing that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of any manner involves the Company, any of its Subsidiaries or any of their respective assets shall not be effective prior to the extent Effective Time; (v) as promptly as reasonably practicable furnishing Parent, Guarantor and their respective Representatives promptly with all documentation and other information required in connection with the marketing and syndication of such Debt Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided; (vi) as promptly as reasonably practicable furnishing Parent, further, that nothing Guarantor and their respective Representatives with the Financing Information; (vii) assisting in this Agreement shall require the Company to cause preparation and facilitating the execution and delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal yearexecution and delivery, 60 days) prior solely to the date extent any such execution would only be effective on or after the Closing Date) of any definitive financing documentation required in connection with the Debt Financing and the schedules and exhibits thereto, in each case, required to be delivered under such definitive financing documentation, including credit agreements (or joinders thereto), pledge and security documents, mortgages, schedules, and other definitive financing documents and deliverables, including providing factual information in connection with any of the foregoing; (viii) providing customary authorization letters authorizing the distribution of information relating to the Company and its Subsidiaries to any Debt Financing Source and containing a customary representation to the Debt Financing Sources as to the presence or absence of material non-public information relating to the Company and its Subsidiaries; (ix) authorizing ▇▇▇▇▇ Fargo Capital Finance, LLC, as administrative and collateral agent under its Existing Credit Facility, to share with the Debt Financing Sources the field exams, appraisals and other information relating to the Company’s assets and operations delivered from time to time pursuant to the Existing Credit Facility and coordinating the actual delivery of such requestfield exams, appraisals and other information to the Debt Financing Sources; (x) assisting Guarantor in procuring public ratings (but no specific ratings) for the component of the Debt Financing consisting of a term loan facility from each of Standard & Poor’s Financial Services LLC (“S&P”) and ▇▇▇▇▇’▇ Investors Service, Inc. (“▇▇▇▇▇’▇”), and a public corporate credit rating (but no specific rating) and a public corporate family rating (but no specific rating) in respect of the borrower under such Debt Financing and after giving effect to the Transactions from each of S&P and Moody’s, respectively and (xi) ensuring that any syndication efforts for the Debt Financing benefit materially from the Company’s and its Subsidiaries’ existing lending and investment banking relationships.
(b) Notwithstanding anything to the contrary contained Nothing in this Agreement (including this Section 5.05): 6.16 will require the Company or its Subsidiaries to (i) nothing in waive or amend any terms of this Agreement (including this Section 5.05) shall require Agreement, pay any such cooperation to the extent that it would (1) require the Company commitment fee or similar fee or agree to pay any commitment other fees or other fees, reimburse any expenses or otherwise incur any liabilities issue or give provide any indemnities prior to the ClosingClosing Date, for which it has not received prior reimbursement or is not otherwise indemnified or entitled to reimbursement by or on behalf of Guarantor; (2ii) take any action that, in the good faith determination of the Company, would unreasonably interfere with the ongoing conduct of the business or operations of the Company in any material respect; (iii) execute any Contract, adopt any resolutions, execute any consents or the Company Subsidiaries, (3) require the Company otherwise take any corporate or any of the Company Subsidiaries similar action to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing (other than customary authorization and representation letters contemplated in connection with any Syndication Documentation) (and, in each case, only by their respective directors, officers, managers or other Persons holding similar positions at the Company or any of its Subsidiaries who are expected to continue to hold such positions following the Closing); (iv) take any action that would result in any employee, officer or director of the Company or any of its Subsidiaries incurring any personal liability with respect to any matters relating to the Debt Financing; (v) provide any legal opinion on or prior to the Closing that is not contingent upon the Closing or that must be effective prior to the Effective Time (other than customary representation letters, financial officer certificates and bank authorization letters); (vi) take any action that would conflict with or violate its Organizational Documents or any applicable Law in any material respect or would result in a material violation or breach of, or default under, any material Contract to which the Company or any of its Subsidiaries is a party; or (4vii) require disclose or provide any information the disclosure to the extent it could result in (x) a loss or waiver of any privilege or (y) in the disclosure of any Trade Secrets not otherwise required to be provided under this Agreement or the violation of any confidentiality obligation; provided, however, that the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of ’s Subsidiaries and their respective Representatives under shall use reasonable best efforts to provide an alternative means of disclosing or providing such information, and in the case of any certificateconfidentiality obligation, agreementthe Company or such Subsidiary shall, arrangement, document or instrument relating to the Financing shall be effective until the Closingextent permitted by such confidentiality obligations, notify Guarantor if any such information that Guarantor has specifically identified and requested is being withheld as a result of any such obligation of confidentiality.
(c) Parent shall (i) promptly Promptly upon request (but in any event within 30 days thereafter) by the Company, Parent will reimburse the Company for all of its fees any reasonable and documented out-of-pocket costs and expenses (including fees reasonable and expenses of counsel and accountantsdocumented attorneys’ fees) incurred by the Company, any Company in connection with the cooperation of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 6.16; provided that the Company (and not Parent) shall be responsible for any amounts that would otherwise have been incurred in the absence of the transactions contemplated by this Agreement.
(d) The Company will be indemnified and held harmless by ▇▇▇▇▇▇ and Guarantor from and against any and all liabilities, losses, damages, claims, costs, expenses (including attorneys’ fees), interest, awards, judgments, penalties and amounts paid in settlement suffered or incurred by them in connection with their cooperation in arranging the Debt Financing pursuant to this Agreement or the provision of information utilized in connection therewith, in each case, other than as a result of (i) information relating to the Company and its Subsidiaries provided by or on behalf of the Company and its Subsidiaries in connection with the Debt Financing that is determined to be materially false or misleading or omit to state any material fact necessary to make the required information not materially false or misleading or (ii) indemnify fraud, bad faith, gross negligence or willful misconduct by or on behalf of such Person.
(e) The Company hereby grants to Guarantor a non-exclusive, non-sublicensable, non-transferable, royalty free, limited license to use the Marks included in the Company Intellectual Property prior to the Closing Date solely in connection with the Debt Financing; provided, that such Marks are used solely in a manner that is not intended to, and hold harmless is not reasonably likely to, harm or disparage the Company or any of its Subsidiaries or their reputation. All uses of such Marks by Guarantor shall be in connection with business operations, products, services and materials of quality equivalent to or higher than those in connection with which the Marks were used prior to the date hereof, and Guarantor shall use the Marks in a manner consistent with the Company’s standards, the Company Subsidiaries quality, style and its and their Representatives against any claimimage, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection withwith the Company’s guidelines as may be provided from time to time in writing to Guarantor.
(f) Notwithstanding anything in this Agreement to the contrary, such cooperation or each of Parent, Guarantor and ▇▇▇▇▇▇ Sub acknowledges and agrees that obtaining the Debt Financing is not a condition to the obligations of the parties to consummate the Merger in accordance with the terms and any information used in connection therewithprovisions of this Agreement.
Appears in 2 contracts
Sources: Merger Agreement (SpartanNash Co), Merger Agreement (SpartanNash Co)
Financing Cooperation. Without limiting the generality of Section 7.02 or Section 7.05, and to assist the Parent in its financing efforts, the Company agrees to reasonably cooperate with the arrangement of the Financing, including by (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant preparing and providing to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates Financing Sources, as promptly as reasonably requested by Parent in connection with practicable after Parent’s arrangement of the Financing (whichwritten request therefor, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers all customary and reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies available financial and road shows, reasonable assistance in the preparation of confidential other information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and each of its Subsidiaries which is prepared and the transactions contemplated hereby and by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar Financing, including, to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with extent as would be required by Rule 3-05 and Article 11 of Regulation S-X to be filed on a Form 8-K by Parent, regardless of the timing of such filing, (i) audited consolidated annual financial statements of the Company and (ii) unaudited interim consolidated financial statements of the Company (which shall have been reviewed by the independent accountants for the Company as provided in Statement on Auditing Standards No. 100), (b) providing as promptly as reasonably practicable after Parent’s written request therefor any information reasonably necessary to assist Parent with the preparation of customary pro forma financial statements that meet the requirements of Regulation S-X and all other applicable accounting rules and regulations of the SEC promulgated thereunder and required to be included in a Registration Statement on Form S-3 under the Securities 1933 Act of 1933, as amended, or reasonably and identify customarily required by the Financing Sources to be included in any such financial information as suitable offering documents for distribution the Financing and (c) using commercially reasonable efforts to “public side” lenders;
(iii) request that cause the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and to cooperate with the Financing (including as set forth Sources in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, manner consistent with their customary practice, including requesting that they practice and to participate in customary auditor due diligence calls and provide customary consents and accountants’ “comfort letters” (including customary “negative assurances”) (it being understood that the comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required delivered in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date Company’s public offerings shall be deemed to be customary for purposes of this AgreementSection 7.06) or as are customarily required in an underwritten offering and customary consents to the inclusion of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange audit reports in connection with the Merger Financing if historical financial statements or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel other financial information of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or are included in any certificate as to solvency or any other certificate necessary offering documents for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 2 contracts
Sources: Merger Agreement (Tyson Foods Inc), Merger Agreement (Tyson Foods Inc)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination For purposes of this Agreement pursuant to Section 8.016.10, the term “Financing” shall include any Permanent Financing (as defined in the Financing Letter), subject whether for debt, equity or otherwise. Prior to the limitations set forth in this Section 5.05Closing, Seller shall, and unless otherwise agreed by Parent, the Company will shall use its reasonable best efforts to cooperate with Parent and cause each of its Affiliates as and Representatives to, use reasonable best efforts to provide to Buyer such cooperation reasonably requested by Parent Buyer and reasonably required in connection with Parent’s arrangement of the Financing or the Alternate Financing, including (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by to the Debt Letters). Such cooperation will include using reasonable best efforts to:extent reasonably requested and reasonably required):
(i) make appropriate officers reasonably availableparticipating in a customary and reasonable number of meetings, with appropriate advance notice, for participation in bank meetingspresentations, due diligence sessions, meetings drafting sessions, road shows and sessions with ratings agencies and road shows, reasonable assistance in rating agencies;
(ii) assisting with the preparation of confidential information memorandamaterials for rating agency presentations, offering documents, private placement memoranda, prospectusesbank information memoranda, presentations prospectuses (registered or otherwise) and similar documents for the Financing, including execution and delivery of customary representation letters in connection with an audit of the Business and auditors comfort letter;
(iii) as promptly as reasonably practical, and in no event later than March 31, 2013, furnishing Buyer with (x) audited balance sheets for the Business as at December 31, 2011 and 2012, and (y) audited statements of income and cash flows for the Business for the three (3) years ended December 31, 2012 and (z) within forty-five (45) days of the end of the relevant fiscal quarter, unaudited interim financial statements for each fiscal quarter ending after January 1, 2013 (collectively, the “Carve-Out Financials”);
(iv) in addition to the information required pursuant to clause (iii), above, as promptly as reasonably practical, furnishing Buyer and the other parties to the Financing Letter with financial and other information regarding the Business and the Assets as may be reasonably requested by Parent Buyer (including in connection with Buyer’s preparation of pro forma financial statements), including unaudited interim financial statements, financial data, projections, audit reports and other information of the type required by Regulation S-X and Regulation S-K of the Securities Act of 1933 for a registered public offering, and of type and form customarily included in private placements under Rule 144A, to consummate the offering(s) of debt or equity securities contemplated by the Financing, or as otherwise reasonably required in connection with the Financing, or as otherwise necessary in order to assist in receiving customary “comfort” (including “negative assurance” comfort) from independent accountants in connection with the offering(s) of debt or equity securities contemplated by the Financing (all such information in clause (iii) and this clause (iv), including the Carve-Out Financials, the “Required Information”);
(v) providing information relating to the Business that is reasonably available to it to assist in the preparation of any credit agreements, indentures, purchase agreements, currency or interest hedging arrangements, other definitive financing documents, officer’s certificates, customary closing documents, or other certificates or documents with respect to the Financing contemplated by the Financing as may be reasonably requested by Buyer;
(vi) furnishing Buyer and their Financing sources as promptly as practicable all financial information required to be delivered pursuant to the Financing Letter and monthly financial statements for the Business (to the extent prepared in the ordinary course of business);
(vii) assisting Buyer to obtain waivers, consents, estoppels and approvals from other parties to Contracts, material Leases and Easements, and Encumbrances to which the Assets or the Business are bound; and
(viii) cooperating with Buyer in its efforts to obtain accountants’ comfort Letter, consents, legal opinions, surveys, appraisals, engineering reports, environmental and other inspections, title insurance and other documentation and items relating to the Financing, as reasonably requested by Buyer; provided that (A) nothing herein shall require such cooperation to the extent it would require Seller or any Financing Partyof its Affiliates to waive or amend any terms of this Agreement, incur any Liabilities, pay any fees, reimburse any expenses, in each case, with respect to information relating the Financing, prior to the Company and its Subsidiaries in connection with customary marketing efforts Closing for which it has not received prior reimbursement by or on behalf of Parent and Buyer, or would cause Seller or any of its Affiliates for all to breach this Agreement or any portion of the Financing;
become unable to satisfy a condition to Closing, (iiB) furnish Parent and the Financing Parties with copies of nothing herein shall require such financial data with respect to the Company and cooperation from Seller or its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, Affiliates to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company Seller or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, its Affiliates and (iiC) there shall be no action, liability Liability or obligation (including any obligation to pay any commitment of Seller or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives Affiliates under any certificate, agreement, arrangement, document or instrument relating to the Financing Financing. Notwithstanding anything to the contrary in this Section 6.10, neither Seller nor its Affiliates shall be effective until in breach of the Closingcovenant set forth in this Section 6.10 if it has acted in good faith to comply with the cooperation and assistance set forth herein.
(b) Buyer shall indemnify the Seller Indemnitees from, against and in respect of any Losses imposed on, sustained, incurred or suffered by, or asserted against, any of them, directly or indirectly relating to, arising out of or resulting from the arrangement of the Financing, any other financing and/or the provision of information utilized in connection therewith to the fullest extent permitted by applicable Legal Requirement.
(c) Parent shall Seller will use its reasonable best efforts to update the Required Information provided to Buyer pursuant to clauses (iiii) promptly upon request by and (iv) of Section 6.10(a) as may be necessary such that the CompanyRequired Information does not contain any untrue statement of material fact or omit to state any material fact necessary in order to make the statements made therein, reimburse in the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any light of the Company Subsidiariescircumstances under which they were made, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithnot misleading.
Appears in 2 contracts
Sources: Purchase and Sale Agreement (Laclede Group Inc), Purchase and Sale Agreement (Southern Union Co)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentEffective Time, the Company will shall, and shall cause its Subsidiaries to, and shall use its commercially reasonable best efforts to cooperate with Parent cause its and its Affiliates as their Representatives to, provide all customary cooperation and all customary financial and other information, in each case, that is reasonably requested by Parent in connection with Parent’s arrangement any new financing by Parent in connection with the refinancing, replacement or repayment of any Indebtedness (the Financing (which“Financing”), solely for purposes of this Section 5.05, shall include including cooperation with any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, customary due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents process as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts providers of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution Financing and using commercially reasonable efforts to “public side” lenders;
(iii) request that cause the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a to provide any customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort “comfort” letters (including customary “negative assurance” comfort)comfort for any applicable Financing) in connection with any such Financing; provided, including that neither the Company nor any of its Subsidiaries shall be required to (i) become an issuer or an obligor with respect to the Financing prior to the Effective Time, (ii) cause any director, officer, member, partner, accountant, legal counsel, employee or other Representative of the Company or any of its Subsidiary to take any action that would reasonably be expected to result in respect such Person incurring any personal liability, (iii) waive or amend any terms of historical financial statements this Agreement or (iv) incur any fees, expenses or other liabilities prior to the Effective Time for which it is not previously or simultaneously reimbursed and indemnified. The Company hereby consents to the reasonable use of the Company, to the extent required ’s and its Subsidiaries’ logos solely in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described Financing; provided that such logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Debt Letters, Company or as may otherwise be required pursuant to applicable Law its Subsidiaries or the rules reputation or regulations goodwill of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestits Subsidiaries.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon written request by the Company, reimburse the Company for all of its fees any reasonable and documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountantsreasonable attorneys’ fees) actually incurred by the Company, any of the Company Subsidiaries, any of its or Subsidiaries and their respective Representatives in connection with any the cooperation contemplated by this Section 5.05 5.14, and (ii) indemnify and hold harmless the Company, the Company its Subsidiaries and its and their respective Affiliates and Representatives from and against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liability, judgment, award, penalty, fine, Tax, cost costs and expenses (including cost of investigation), expense (including fees and expenses of counsel and accountantsreasonable attorney’s fees) suffered or settlement payment incurred as a result of, or by them in connection with, such with their cooperation or with the Financing and any pursuant to this Agreement, the provision of information used utilized in connection therewiththerewith (other than written information provided by or on behalf of the Company) and the cooperation contemplated by this Section 5.14, in each case, other than to the extent any such costs, expenses, liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments or penalties are the result of the gross negligence, bad faith or willful misconduct of the Company, any of its Subsidiaries or their respective Representatives, as determined by a court of competent jurisdiction by final and non-appealable judgment. This indemnification shall survive the termination of this Agreement.
(c) ▇▇▇▇▇▇ expressly acknowledges and agrees that Parent’s obligations under this Agreement, including pursuant to Article VI are not conditioned in any manner whatsoever upon Parent obtaining any financing, including the Financing. Parent further acknowledges and agrees that the Company’s, its Subsidiaries’ or their respective Representatives’ compliance or failure of compliance with this Section 5.14 shall not be taken into account for purposes of determining whether the condition referred to in Section 6.2(b) shall have been satisfied.
Appears in 2 contracts
Sources: Merger Agreement (Evoqua Water Technologies Corp.), Agreement and Plan of Merger (Xylem Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant Subject to Section 8.017.13(b) and (c), subject prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts to cooperate with provide, and shall use its reasonable best efforts to cause its Subsidiaries and their officers, employees, consultants and advisors, including legal and accounting advisors to, provide, at Parent’s sole cost and expense, to Parent and its Affiliates all cooperation as may be reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
Financing, including (i) make appropriate officers reasonably available, with appropriate advance notice, for participation by senior management in bank a reasonable number of meetings, presentations, and due diligence sessionssessions at times and locations mutually agreed and reasonably coordinated in advance thereof, meetings (ii) reasonably assisting with ratings agencies the preparation of materials (to the extent relating to the Company and road showsits Subsidiaries) for rating agency presentations, reasonable assistance information and offering memoranda, lender presentations, and similar marketing documents to be used in connection with the Debt Financing, including customary comfort and authorization letters, and such information and data related to the Company and its Subsidiaries as is reasonably required by Parent for Parent to produce the financial statements and information identified in paragraph 6 of Exhibit C of the Debt Commitment Letter or otherwise required in connection with the Debt Financing, (iii) assisting in the preparation of confidential information memorandadefinitive financing documents, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing PartyParent, (iv) facilitating the pledging of collateral for the Debt Financing, (v) obtaining customary payoff letters, lien terminations and instruments of discharge in respect of the payoff, discharge and termination on the Closing Date of all obligations under the Company Credit Agreement, including releases of liens relating thereto, in each casecase as reasonably requested by Parent, (vi) using commercially reasonable efforts to ensure that the syndication efforts for the Debt Financing benefit from the Company’s existing lending and banking relationships, (vii) using commercially reasonable efforts in assisting Parent in its efforts to obtain corporate credit or family ratings of Parent to the extent reasonably requested by Parent, (viii) as promptly as practicable after reasonable request therefor, furnishing the Financing Sources with respect to reasonable documents or other information reasonably requested by the Financing Sources relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data required by bank regulatory authorities with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require U.S.A. Patriot Act of 2011 and (ix) cooperating with Parent to satisfy the conditions precedent to the Debt Financing to the extent reasonably requested by Parent and within the control of the Company and its Subsidiaries, and taking all corporate actions, subject to cause the delivery occurrence of (1) legal opinions or reliance letters or any certificate as the Closing, reasonably requested by Parent to solvency or any other certificate necessary for permit the consummation of the Debt Financing and taking all corporate actions, subject to the occurrence of the Closing, reasonably requested by Parent to permit the consummation of the Debt Financing. Without limiting the generality of the foregoing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect shall ensure that all financial and other projections concerning the Company and its Subsidiaries that are made available to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to Parent after the date of this Agreement are prepared in good faith. The Company consents to the use of its logos in connection with the Debt Financing; provided that such requestlogos shall be used solely in a manner that is not intended or reasonably likely to harm, disparage or otherwise adversely affect the Company or any of its Subsidiaries.
(b) Notwithstanding anything to the contrary contained in this Agreement to the contrary, (including this Section 5.05): (ix) nothing in this Agreement (including this Section 5.05) neither the Company nor any of its Subsidiaries shall require be required to take or permit the taking of any such cooperation action to the extent that it would (1) interfere unreasonably with the business or operations of the Company or any of its Subsidiaries (2) require the Company or any of its Subsidiaries or any of their respective Affiliates to pay (or agree to pay) any commitment or other fees, or reimburse any expenses prior to the Closing for which it is not promptly reimbursed, or otherwise incur any liabilities other obligations or give any indemnities prior to the Closing that are not contingent on the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require cause any representation or warranty or covenant in this Agreement to be breached by the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or its Subsidiaries, (4) require cause any director, officer or employee of the Company or any of its Subsidiaries to incur any personal liability, (5) conflict with the organizational documents of the Company or any of its Subsidiaries or any Laws, (6) result in the contravention or breach of, or default under, any Material Contract, (7) provide access to or disclose information that the Company or any of its Subsidiaries determines would jeopardize any attorney-client privilege of the Company or any of its Subsidiaries, or (8) prepare separate financial statements for any Subsidiary of the Company or change any fiscal period; or (y) none of the Company, any of the Company its Subsidiaries or any of their respective boards of directors (or equivalent bodies) officers shall be obligated to adopt resolutions or execute consents to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) execution of the Company, its Subsidiaries, Debt Financing; provided that this clause (y) shall not prohibit the adoption or execution of any resolutions or consents effective no earlier than the Closing Date by any persons that shall remain or will become officers or directors of the Company or any of their respective Representatives under its Subsidiaries as of the Effective Time; and (z) any certificate, agreement, arrangement, document or instrument relating to documentation executed by the Financing Company of any of its Subsidiaries shall be not become effective until the Closing.
(c) Effective Time. Parent shall (i1) promptly upon request by the Company, reimburse the Company for all of its fees reasonable out-of-pocket costs and expenses (including fees and expenses of counsel and accountantsattorney’s fees) incurred by the Company, any of the Company Subsidiaries, or any of its or Subsidiaries and their Representatives respective Representatives, as applicable, in connection with any cooperation the Debt Financing and providing the assistance contemplated by this Section 5.05 7.13 and (ii2) indemnify and hold harmless the Company, the Company and its Subsidiaries and its and their respective Representatives (collectively, the “Financing Indemnitees”) from and against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgment, award, penalty, fine, Tax, cost expenses (including cost of investigationattorney’s fees), expense (including fees awards, judgments and expenses penalties suffered or incurred by any of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the Debt Financing and any information used in connection therewiththerewith or providing the assistance contemplated by this Section 7.13, in each case other than to the extent any of the foregoing arises from the fraud, intentional misrepresentation or willful misconduct of such Financing Indemnitee, as finally determined by a court of competent jurisdiction (the obligations of Parent in this clause (2), the “Financing Cooperation Indemnity”). The Financing Cooperation Indemnity shall survive the consummation of the Merger and any termination of this Agreement.
(c) All non-public or otherwise confidential information regarding the Company or any of its Affiliates and Subsidiaries obtained by Parent or its Affiliates or Representatives pursuant to this Section 7.13 shall be kept confidential in accordance with the Confidentiality Agreement.
Appears in 2 contracts
Sources: Merger Agreement (Microsemi Corp), Merger Agreement (PMC Sierra Inc)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall, and shall cause its Subsidiaries to, use its reasonable best efforts to cooperate with provide to Parent and its Affiliates as Merger Sub, at Parent’s sole expense, all cooperation reasonably requested by Parent that is necessary in connection with Parent’s arrangement obtaining financing in connection with the Merger (so long as such cooperation does not unreasonably interfere with the ongoing operations of the Financing Company and its Subsidiaries), including (whicha) furnishing Parent and Merger Sub such financial and other pertinent information regarding the Company as may be reasonably requested by Parent, solely for purposes (b) participating in a reasonable number of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings drafting sessions and sessions with ratings rating agencies and road showsin connection with obtaining financing in connection with the Merger, reasonable assistance (c) assisting Parent in the preparation of confidential customary offering memoranda, bank information memoranda, private placement memorandaauthorization letters, prospectusesconfirmations and undertakings, rating agency presentations and similar lender presentations relating to obtaining financing in connection with the Merger, (d) providing and executing such customary documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect related to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required financing in connection with the marketing and syndication of Financing Merger, (including as e) using reasonable best efforts to satisfy the conditions precedent set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant any definitive documentation relating to applicable Law or the rules or regulations of any national securities exchange financing in connection with the Merger to the extent the satisfaction of such conditions requires the cooperation of or any alternative financing thereforis within the control of the Company, and provide customary management letters in connection (f) using reasonable best efforts to cooperate with the foregoing;
financing sources’ due diligence investigation, to the extent customary and reasonable and not unreasonably interfering with the business of the Company and (ivg) furnish using commercially reasonable efforts to obtain accountant’s comfort letters and legal counsel of Parent and to legal counsel of any Financing Party such information as may be opinions reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, customary for such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationsfinancings, including without limitation the PATRIOT Actissuing any customary representations letters to KPMG LLP. provided, further, that nothing Anything in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything 5.15 to the contrary contained in this Agreement (including this Section 5.05): notwithstanding, until the Effective Time occurs, neither the Company nor any of its Subsidiaries, nor any of their respective officers or directors, as the case may be, shall (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company be required to pay any commitment or other feessimilar fee, reimburse (ii) enter into any expenses definitive agreement or otherwise have any liability or any obligation under any certificate, document, instrument, credit agreement or any related document or any other agreement or document related to the financing in connection with the transactions contemplated by this Agreement, (iii) unless promptly reimbursed by Parent, be required to incur any liabilities other expenses in connection with such financing or give (iv) be required to take any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations action in his/her capacity as a director of the Company or the Company Subsidiaries, (3) require the Company or any of the Company its Subsidiaries with respect to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) such financing. Parent shall (i) promptly promptly, upon request by the Company, reimburse the Company for all of its fees reasonable and expenses documented out-of-pocket costs (including fees and expenses of counsel and accountantsreasonable attorneys’ fees) incurred by the Company, any of the Company Subsidiaries, or any of its Subsidiaries or their respective Representatives in connection with any cooperation contemplated by their respective obligations pursuant to, and in accordance with, this Section 5.05 5.15, and (ii) shall indemnify and hold harmless the Company, the Company its Subsidiaries and its their respective Representatives from and their Representatives against any claimand all damages, losslosses, damagecosts, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost liabilities or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the Financing arrangement of Parent’s financing and any information used in connection therewiththerewith (other than information provided by the Company or any of its Subsidiaries) and all other actions taken by the Company, its Subsidiaries and their respective Representatives pursuant to this Section 5.15.
Appears in 2 contracts
Sources: Merger Agreement (Harris Teeter Supermarkets, Inc.), Merger Agreement (Kroger Co)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, Stockholder shall, and unless otherwise agreed by Parentshall cause each of its Affiliates to, the Company will use its reasonable best efforts to cooperate with cause their respective directors, officers, employees, investment bankers, attorneys, accountants and other advisors or representatives (collectively, “Representatives”) to, provide to Parent and its Affiliates as Merger Sub such cooperation reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts toFinancing, including:
(i) make appropriate officers reasonably availableparticipating in a customary and reasonable number of meetings, with appropriate advance notice, for participation in bank meetingspresentations, due diligence sessions, meetings drafting sessions, road shows and sessions with ratings rating agencies and road shows, reasonable assistance assisting Parent and Merger Sub in obtaining ratings as contemplated by the Debt Financing;
(ii) assisting with the preparation of confidential information memorandamaterials for rating agency presentations, offering documents, private placement memoranda, prospectusesbank information memoranda, presentations prospectuses and similar documents for the Debt Financing, including execution and delivery of customary representation letters in connection with bank information memoranda;
(iii) as promptly as reasonably practical, furnishing Parent and Merger Sub and their Debt Financing sources with financial and other information regarding the Company and its subsidiaries as may be reasonably requested by Parent (including in connection with Parent’s or Merger Sub’s preparation of pro forma financial statements), including financial statements, financial data, projections, audit reports and other information of the type required by Regulation S-X and Regulation S-K of the Securities Act of 1933 for a registered public offering, and of type and form customarily included in private placements under Rule 144A, to consummate the offering(s) of debt securities contemplated by the Debt Financing, or as otherwise reasonably required in connection with the Debt Financing, or as otherwise necessary in order to assist in receiving customary “comfort” (including “negative assurance” comfort) from independent accountants in connection with the offering(s) of debt securities contemplated by the Debt Financing (all such information in this clause (iii), the “Required Information”);
(iv) executing and delivering any credit agreement, customary and reasonable pledge and security documents, indentures, purchase agreements, currency or interest hedging arrangements, other definitive financing documents, officer’s certificates, customary closing documents, or other certificates or documents with respect to the Debt Financing contemplated by the Debt Financing as may be reasonably requested by Parent (including customary consents of accountants for use of their reports in any materials relating to the Debt Financing) or otherwise reasonably facilitating the pledging of collateral;
(v) furnishing Parent and Merger Sub and their Financing sources as promptly as practicable all financial information required to be delivered pursuant to the Debt Commitment Letter and monthly financial statements for the Company within fifteen (15) days of the end of each month prior to the Closing Date;
(vi) executing and delivering, as of the Closing Date, a certificate of the chief financial officer of the Company with respect to solvency matters;
(vii) assisting Parent and Merger Sub to obtain waivers, consents, estoppels and approvals from other parties to material leases, Encumbrances and Contracts to which the Company or any subsidiary is a party and arranging discussions among Parent and Merger Sub and their financing sources with other parties to material leases, encumbrances and contracts as of the Closing Date;
(viii) taking all corporate actions, subject to the occurrence of the Closing Date, reasonably requested by Parent that are necessary or customary to permit the consummation of the Debt Financing Party(including any high yield financing), and to permit the proceeds thereof, together with the cash at the Company and its Subsidiaries (not needed for other purposes), to be made available to the Company on the Closing Date to consummate the Transactions);
(ix) cooperating with Parent and Merger Sub in their efforts to obtain accountants’ comfort letters, consents, legal opinions, surveys, appraisals, engineering reports, environmental and other inspections, title insurance and other documentation and items relating to the Debt Financing, as reasonably requested by Parent; and
(x) taking all actions reasonably necessary to (x) permit the prospective lenders involved in the Debt Financing to evaluate the Companies’ current assets, cash management and accounting systems, policies and procedures relating thereto for the purpose of establishing collateral arrangements to the extent customary and reasonable and (y) establish bank and other accounts and blocked account agreements and lock box arrangements in connection with the foregoing; provided that (A) nothing herein shall require such cooperation to the extent it would require Stockholder or its Affiliates to waive or amend any terms of this Agreement, incur any Liabilities, pay any fees, reimburse any expenses or give any indemnities, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
Debt Financing (ii) furnish Parent and the Financing Parties with copies of such financial data other than with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or a purchase agreement in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comforthigh yield financing), including in respect prior to the Closing for which it has not received prior reimbursement by or on behalf of historical financial statements of the CompanyParent or Merger Sub, (B) nothing herein shall require such cooperation from Stockholder or its Affiliates to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company Stockholder or the Company Subsidiariesits Affiliates, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (iiC) no action, liability Liability or obligation (including any obligation to pay any commitment of Stockholder or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives Affiliates under any certificate, agreement, arrangement, document or instrument relating to the Debt Financing shall be effective until the Closing.
Closing (c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives other than with respect to a purchase agreement in connection with any cooperation contemplated by this Section 5.05 a high yield financing) and (iiD) indemnify any offering documents, private placement memoranda, bank information memoranda, prospectuses and hold harmless similar documents required in relation to the Company, Debt Financing shall contain disclosure and financial statements reflecting the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithobligor.
Appears in 2 contracts
Sources: Merger Agreement (EVERTEC, Inc.), Merger Agreement (Popular Inc)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will Entities shall, and shall use its their respective reasonable best efforts to cooperate with Parent and its Affiliates cause their respective Representatives to, provide such reasonable cooperation as reasonably requested by the Parent Entities in connection with Parent’s arrangement the obtaining and arranging of the Debt Financing (whichand the Preferred Equity Financing. Without limiting the generality of the foregoing, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using such reasonable best efforts toin any event shall include:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents taking such actions as may be are reasonably requested by the Parent or any Entities to facilitate the satisfaction on a timely basis of all conditions precedent to obtaining the Debt Financing Partyand the Preferred Equity Financing that are within its control, in each case, with respect including authorizing the Definitive Financing Agreements and permitting the proceeds thereof to information relating be made available to the Company Entities, the Company Subsidiaries and its Subsidiaries in connection with customary marketing efforts certain of Parent and its Affiliates for all or any portion of their respective equityholders at the FinancingClosing, as applicable, pursuant to the Restructuring Steps, as applicable; provided that no such corporate action shall become effective until the Effective Time;
(ii) furnish Parent participating in a reasonable number of meetings (including meetings with prospective Debt Financing Sources), presentations, road shows, due diligence sessions and the Financing Parties sessions with copies of such financial data rating agencies, at reasonable and mutually agreed times and with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersreasonable advance notice;
(iii) to the extent required to satisfy a condition precedent to the initial funding of the Debt Financing, facilitating the pledging of, and perfection of security interests in, collateral, effective no earlier than the Effective Time;
(iv) furnishing the Parent Entities and the Debt Financing Sources and the Preferred Equity Financing Sources as promptly as reasonably practicable following the delivery of a request therefor to the Company Entities by the Parent Entities (which notice shall state with specificity the information requested) such financial and other information regarding the Company Entities and the Company Subsidiaries as is customarily required in connection with the execution of financings of a type similar to the Debt Financing or the Preferred Equity Financing, including the Company Financial Information;
(v) in each case following the Parent Entities’ reasonable request, assisting the Parent Entities and the Merger Subs in the preparation of (A) confidential information memoranda (including a version that does not include material non-public information) and other customary marketing materials required in connection with financings similar to the Debt Financing (it being understood and agreed that the Company’s independent accountants participate Company Entities shall not be responsible for any projections or pro forma financial statements) and (B) materials for rating agency presentations;
(vi) providing (A) customary authorization and representation letters to the Debt Financing Sources with respect to marketing materials from a senior officer of the Company Entities (which authorization and representation letters will become effective before the Effective Time) and (B) a certificate of the chief financial officer of the Company in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as form set forth in on Annex I to Exhibit D of the Debt Letters Commitment Letter (as in effect on the date of this Agreementhereof) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements ▇▇▇▇▇ ▇▇ of the CompanyPreferred Equity Commitment Letter (as in effect as of the date hereof) with respect to solvency matters, in each case, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) Commitment Letter or as are customarily required in an underwritten offering of securities of the type described in the Debt LettersPreferred Equity Commitment Letter, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingrespectively;
(ivvii) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably if requested by such counsel in connection with any legal opinion that such counsel may be required the Parent Entities pursuant to deliver in connection with such Financing; and
the Debt Commitment Letter or the Preferred Equity Commitment Letter, providing (vA) furnish Parent and the Financing Parties, within five (5) at least three Business Days following written requestprior to the Closing Date, such all documentation and other information regarding the Company Entities and the Company Subsidiaries as any the Debt Financing Party may Sources or Preferred Equity Financing Sources reasonably determine is required by United States regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing to the extent requested by the Parent Entities in this Agreement shall require writing at least nine Business Days prior to the anticipated Closing Date and (B) to the extent the Borrower (as defined in the Debt Commitment Letter) or the Company qualifies as a “legal entity customer” under the Beneficial Ownership Regulation (as defined in the Debt Commitment Letter on the date hereof), certification regarding beneficial ownership as required by 31 C.F.R. §1010.230 to cause any Debt Financing Source or the Preferred Equity Financing Source that has requested such certification;
(viii) assisting reasonably in the preparation, execution and delivery of necessary and customary Definitive Financing Agreements (1including one or more credit agreements, security agreements, mortgages or guarantees and the schedules and exhibits thereto) legal opinions in connection with the Debt Financing or reliance letters the Preferred Equity Financing or any certificate other certificates or documents as to solvency or any other certificate necessary for may reasonably be requested by the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amendedParent Entities, in any case each case, to be held in a form not customarily prepared escrow pending release by the Company at, and subject to the occurrence of, the Effective Time;
(ix) to the extent required in the Debt Commitment Letter, using reasonable best efforts to ensure that the syndication efforts with respect to the Debt Financing benefit materially from the existing lending and investment banking relationships of the Company Entities; and
(x) in connection with the Margin Loan Financing, cooperating in requesting from TKO and TKO OpCo an issuer agreement (an “Issuer Agreement”) with the applicable lenders on customary terms to be mutually agreed by TKO, TKO OpCo and such lenders in order to allow a Margin Loan Financing on commercially reasonable terms, it being understood and agreed that (x) such cooperation shall not (A) unreasonably interfere with the ongoing operations of the Company Entities or any of their respective Affiliates or (B) require TKO to make any “additional” filings with the SEC or take any other action that would result in such a filing being required, except, after consultation between the Parent Entities and the Company Entities, the furnishing on Current Reports on Form 8-K by TKO of information included in the documents with respect to such periodDebt Financing to the extent required in order to satisfy TKO’s legal or regulatory disclosure obligations, other than as provided by and (y) the provisions set forth in this Section 5.05(a)(ii7.12(a) or (3) any financial information collectively represent the sole obligation of the Company Entities and their respective Affiliates with respect to a month the Debt Financing or fiscal period that has the Preferred Equity Financing and no other provision of this Agreement (including the exhibits and schedules hereto) or the Debt Commitment Letter or the Preferred Equity Commitment Letter will be deemed to expand such obligations. All non-public or otherwise confidential information regarding the Company Entities or their respective Affiliates obtained by the Parent Entities or the Merger Subs or their respective Representatives pursuant to this Section 7.12 shall be kept confidential in accordance with the Confidentiality Agreement, including any joinder or other agreement entered into in connection therewith (which, with respect to the potential Debt Financing Sources who are not yet ended or has ended less than 40 days (or, party to the Debt Commitment Letter but are participating in the case syndication process, shall be satisfied by the confidentiality provisions applicable under customary confidentiality undertakings in the context of a fiscal year, 60 days) prior customary syndication practices for debt financings of the type contemplated by the Debt Commitment Letter (as in effect on the date hereof)). The Company Entities hereby consent to the date use of their respective and the Company Subsidiaries’ logos in connection with the Debt Financing or the Preferred Equity Financing; provided, that such requestlogos are used solely in a manner that is reasonable and customary and that is not reasonably likely to harm or disparage the Company Entities or the Company Subsidiaries in any respect.
(b) Notwithstanding anything herein to the contrary contained in this Agreement (including this Section 5.05): contrary, (i) nothing in this Agreement other than as may be contemplated by an Issuer Agreement, no directors or managers of the Company Entities or their respective Affiliates (including this Section 5.05other than any director or manager who is continuing as a director or manager of any of the Company Entities or the Company Subsidiaries following the consummation of the Transactions) shall require be required to pass resolutions or consents to approve or authorize the execution or delivery of the Debt Financing or the Preferred Equity Financing or to execute, deliver or enter into, or perform any such cooperation agreement, certificate, arrangement, document or instrument with respect to the extent that it would Debt Financing (1other than the documents to be delivered pursuant to Sections 7.12(a)(vi) require and 7.14, including definitive agreements with respect to the Debt Financing (the “Definitive Financing Agreements”)) or the Preferred Equity Financing, (ii) no obligation of the Company Entities, their respective Affiliates or any of their respective Representatives undertaken pursuant to the foregoing shall be effective until Closing (other than the authorization and representation letters to be delivered pursuant to Section 7.12(a)(vi)(A) and the prepayment and termination notices to be delivered pursuant to Section 7.14) and (iii) none of the Company Entities, their respective Affiliates or any of their respective Representatives shall be required to (A) pay any commitment or other fees, reimburse any expenses similar fee in connection with the Debt Financing or otherwise the Preferred Equity Financing or incur any liabilities other cost or give expense that is not promptly reimbursed by the Parent Entities in connection with the Debt Financing or the Preferred Equity Financing, (B) take any indemnities prior actions to the Closing, (2) extent such actions would unreasonably interfere with the ongoing business or operations of the Company Entities and their respective Affiliates, (C) take any actions that would conflict with or violate the Company SubsidiariesEntities’ or their respective Affiliates’ organizational documents or any Laws, or that would reasonably be expected to result in a violation or breach of, or default under, any material Contract to which any of them are a party or by which any of their assets are bound, (3D) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree give to any change or modification of other Person any existing agreement or other documentation indemnities in connection with the Financing that would be are effective prior to the Closing or (4E) take any actions that would cause any representation or warranty in this Agreement to be breached or that would cause any closing condition set forth in Article VIII to fail to be satisfied or that would otherwise cause a breach of this Agreement. Nothing contained in this Section 7.12 or otherwise shall require the Company, any of the Company Subsidiaries Entities or any of their respective boards of directors (or equivalent bodies) Affiliates to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment be an issuer or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating obligor with respect to the Debt Financing shall be effective until or the ClosingPreferred Equity Financing prior to the Effective Time.
(c) The Parent shall (i) Entities and the Merger Subs acknowledge and agree that the only obligations of the Company or any of its Affiliates or Representatives with respect to any portion of the Financing prior to the Effective Time are the obligations expressly set forth in this Agreement. The Parent Entities shall, promptly upon request by the Company, reimburse OpCo and the Company Subsidiaries for all of its fees out-of-pocket costs and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of Company Entities and the Company Subsidiaries, any of its their respective Affiliates or their respective Representatives in connection with such cooperation by the Company Entities or any cooperation contemplated by this Section 5.05 of their respective Affiliates and (ii) shall indemnify and hold harmless the CompanyCompany Entities, their respective Affiliates and their respective Representatives for and against any and all liabilities, losses, obligations, damages, costs and expenses of any kind (whether direct or indirect, known or unknown, asserted or unasserted, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, due or to become due and whether in contract, tort, strict liability or otherwise) suffered or incurred by them in connection with the arrangement of any Financing, any alternative financing, any action taken by them pursuant to this Section 7.12 and any information utilized in connection therewith (other than written information provided by the Company Entities to the Parent Entities or the Merger Subs for use in connection with the Debt Financing or the Preferred Equity Financing), except to the extent resulting from the gross negligence, fraud or willful misconduct of the Company Entities or the Company Subsidiaries or their respective Representatives.
(d) Each of the Parent Entities and the Merger Subs acknowledge and agree that it is not a condition to the Closing or to any of the other obligations under this Agreement that the Parent Entities and Merger Subs obtain the Equity Financing, any Financing or any other financing.
(e) Notwithstanding anything to the contrary in this Section 7.12 or any other provision of this Agreement, the condition set forth in Section 8.02(b), as it applies to the obligations of the Company Entities under this Section 7.12, will be deemed to be satisfied except in the case where (i) any Company Entity materially breaches its obligations under this Section 7.12, (ii) the Parent Entities have provided the Company prompt written notice informing the Company of such breach, (iii) if curable, the Company Subsidiaries Entities have not cured such breach by the earlier of (A) 60 days after the date of such written notice is given by the Parent Entitles to the Company and its (B) the Outside Date and their Representatives against (iv) such breach has contributed in any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost material respect to the failure of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation the Debt Financing or the Preferred Equity Financing and any information used in connection therewithto be obtained.
Appears in 2 contracts
Sources: Merger Agreement (Endeavor Group Holdings, Inc.), Merger Agreement (Emanuel Ariel)
Financing Cooperation. (a) From Prior to the date hereof until Merger Closing Date, the Closing (or the earlier termination Company shall, and shall cause its subsidiaries and Affiliated Entities to, use commercially reasonable efforts to cause their respective directors, officers, employees, consultants and advisors, including legal and accounting advisors, to provide to each of this Agreement Parent and Merger Sub, subject to reimbursement by Parent and/or Merger Sub pursuant to Section 8.015.21(c), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as all cooperation (x) reasonably requested by Parent and/or Merger Sub and (y) as is necessary and customary to assist Parent and Merger Sub in connection with Parent’s arrangement securing financing in an amount sufficient to permit Parent and Merger Sub to fund (A) the aggregate amount of Merger Consideration required to be paid pursuant to Article II, (B) all associated costs and expenses of the Financing Merger (which, solely for purposes including any repayment or refinancing of this Section 5.05, shall include any alternative equity indebtedness of the Company required in connection therewith) payable by Parent or debt capital markets financings Merger Sub and (C) all other amounts required to be paid in connection with the consummation of the transactions contemplated by this Agreement by Parent or Merger Sub (the Debt Letters“Financing”). Such cooperation will include using reasonable best efforts , including to:
: (i) make appropriate officers promptly provide each of Parent and Merger Sub and its financing sources and their respective agents with the Required Information (as defined below); (ii) assist Parent and/or Merger Sub and use commercially reasonable efforts to cause its independent auditors to assist with Parent and/or Merger Sub’s preparation of pro forma financial statements customarily included in offering documents for high yield debt securities (or as otherwise reasonably availablerequired by each of Parent and Merger Sub’s financing sources and their respective agents); (iii) prior to and during the Marketing Period (as defined below), with appropriate advance noticeparticipate in a reasonable number of meetings, for participation in bank meetingspresentations, road shows, drafting sessions, due diligence sessionssessions (including using commercially reasonable efforts to cause the Company’s and its subsidiaries’ independent auditors to participate therein and to otherwise cooperate with the reasonable requests of each of Parent and Merger Sub), sessions with prospective lenders, including direct contact between senior management and the other representatives of the Company, on the one hand, and the actual and potential lenders, on the other hand (including customary one-on-one meetings with ratings agencies the parties acting as lead arrangers or agents for, and road showsprospective lenders and purchasers with respect to, the Financing), and sessions with rating agencies, in each case, at reasonable assistance times and locations mutually agreed; (iv) in advance of the Marketing Period, assist with the preparation of materials for rating agency and investor presentations (including “roadshow” or investor meeting slides), registration statements, bank information memoranda, offering memorandum, prospectuses, private placement memoranda (including under Rule 144A under the Securities Act), confidential information memoranda, private placement memoranda, prospectuses, presentations marketing materials and similar documents required in connection with the Financing; (v) provide appropriate representations in connection with the preparation of financial statements and other financial data of the Company and its subsidiaries and cause the Company’s independent auditors to provide reasonable and customary assistance and cooperation in connection with the Financing, including, (A) rendering customary “comfort letters” under AU Section 634 for a public offering or a Rule 144A placement of securities with respect to financial information regarding the Company’s subsidiaries contained in the offering materials relating to the Financing, including providing customary representations to such accountants and furnishing, prior to the commencement of the Marketing Period, drafts of such comfort letters (which shall provide “negative assurance” comfort) which such accountants are prepared to issue upon completion of customary procedures, and (B) providing consents for use of their reports in any filings required to be made by the Parent and/or Merger Sub pursuant to the Securities Act or the Exchange Act; (vi) cooperate with the marketing efforts of each of Parent and Merger Sub and their respective financing sources for any portion of the Financing, where financial information of the Company and its subsidiaries and Affiliated Entities is included in such efforts; (vii) facilitate the obtaining of guarantees, pledging of collateral in connection with the Financing, including executing and delivering any customary guarantee, pledge and security documents, currency or interest hedging arrangements or other definitive financing documents or other customary certificates, legal opinions or documents as may be reasonably requested by Parent or and/or Merger Sub (including a certificate of the chief financial officer with respect to solvency matters as of the Merger Closing Date on a pro forma basis) to facilitate any guarantee, obtaining and perfection of security interests in collateral from and after the Merger Closing Date (provided that any obligations contained in such documents shall be effective no earlier than as of the Effective Time); (viii) as applicable, cooperate in connection with any payoff and release of existing indebtedness of the Company and its subsidiaries and cause the release of all liens on the equity interests and assets of the Company and its subsidiaries related thereto (including obtaining customary payoff letters, lien terminations and other instruments of discharge) (in each case subject to the occurrence of the Effective Time); (ix) cooperate with Parent to obtain corporate and facilities ratings in connection with the Financing Partyprior to the commencement of the Marketing Period, in each case, with respect from each of Standard & Poor’s Ratings Services and ▇▇▇▇▇’▇ Investors Service, Inc., (x) provide to information relating to the Company and its Subsidiaries in connection with customary marketing efforts each of Parent and its Affiliates for Merger Sub and their respective financing sources all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided; (xi) execute and deliver (or assist in Parent and/or Merger Sub obtaining from legal counsel (including local counsel) to the Company and its subsidiaries and their advisors) customary certificates, furtherlegal opinions, credit agreements, indentures, guarantees or other documents and instruments as may be reasonably requested by Parent and/or Merger Sub, as are in each such case, necessary and customary in connection with the Financing; (xii) take corporate action (subject to the occurrence of the Merger Closing Date) reasonably necessary to permit the completion of the Financing; (xiii) facilitate the execution and delivery of the definitive documentation related to the Financing as may be reasonably requested by each of Parent and/or Merger Sub; (xiv) provide authorization letters to the lenders authorizing the distribution of information to prospective lenders or investors and containing a representation to the lenders that such information does not contain a material misstatement or omission and that the public side versions of such documents, if any, do not include material non-public information about the Company or its subsidiaries or securities; (xv) use commercially reasonable efforts to involve in any syndication efforts in connection with the Financing the Company’s and its subsidiaries’ existing lending and investment banking relationships; and (xvi) upon request, endeavor to update any Required Information provided to Parent and/or Merger Sub as may be necessary for such Required Information to remain Compliant (as defined below); provided that nothing in this Agreement herein shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as of its subsidiaries or the Affiliated Entities to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any provide such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) interfere unreasonably interfere with the ongoing business or operations of the Company or (including its subsidiaries); and provided further that the Company Subsidiaries, (3) require the Company or any Board and officers of the Company Subsidiaries and the board of directors and officers of its subsidiaries and Affiliated Entities shall not be required, prior to enter into the Merger Closing Date, to adopt resolutions approving the agreements, documents and instruments in connection with the Financing or approve pursuant to which any portion of the Financing is obtained, and no subsidiaries of the Company nor any officer or director thereof shall be required to execute, prior to the Merger Closing Date, any documents contemplated by the definitive documentation related to the Financing or any other certificate, document, instrument or agreement or other documentation that is effective prior to the Merger Closing Date or agree to any change or modification of to any existing certificate, document, instrument or agreement or other documentation that would be is effective prior to the Merger Closing or (4) require the Company, any Date. None of the Company Subsidiaries or nor any of their respective boards of directors (its subsidiaries or equivalent bodies) Affiliated Entities shall be required to approve take any action that would subject it to actual or authorize the Financingpotential liability, and (ii) no action, liability to bear any cost or obligation (including any obligation expense or to pay any commitment or other fees similar fee or reimburse make any expensesother payment (other than reasonable out-of-pocket costs) or incur any other liability or provide or agree to provide any indemnity, guarantee or pledge in connection with the Financing or any of the foregoing prior to the Merger Closing Date (other than to the extent such liabilities arise from the breach of this Agreement by the Company). The subsidiaries and Affiliated Entities of the Company hereby consent to the reasonable use of the Company, ’s and its Subsidiaries, subsidiaries’ and Affiliated Entities’ logos in connection with the arranging and consummation of the Financing; provided that such logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the business of the subsidiaries or Affiliated Entities or their marks. Parent acknowledges that its obligations under this Agreement are not contingent or conditioned in any of their respective Representatives under manner on obtaining any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingfinancing.
(cb) If the Merger Closing does not occur, Parent and/or Merger Sub, as applicable, shall (i) promptly upon request by the Company, reimburse the Company and its subsidiaries and Affiliated Entities for all of its fees and expenses reasonable out-of-pocket third party costs (including fees and expenses of counsel and accountantsreasonable attorneys’ fees) incurred by the Company, any of the Company Subsidiaries, any of its subsidiaries and Affiliated Entities or their respective Representatives in connection with such cooperation; provided that, in no event shall Parent or Merger Sub be required to reimburse the Company or any cooperation contemplated by of its subsidiaries or Affiliated Entities for any costs associated with producing the financial statements or other information that the Company would have otherwise generated in the absence of such requests or this Section 5.05 and 5.20.
(iic) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.For purposes hereof:
Appears in 2 contracts
Sources: Merger Agreement (IPC Healthcare, Inc.), Merger Agreement (Team Health Holdings Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentAcceptance Time, the Company will shall, and shall cause its subsidiaries to, and shall use its reasonable best efforts to cooperate with Parent cause the respective officers, employees, consultants and advisors, including legal and accounting advisors, of the Company and its Affiliates subsidiaries to, provide to Parent such cooperation as may be reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by obtaining the Debt Letters). Such cooperation will include using reasonable best efforts to:
Financing, including, (i) make appropriate officers reasonably available, with appropriate advance notice, for participation making senior management and advisors of the Company and its subsidiaries available to participate in bank a reasonable number of meetings, presentations, road shows and due diligence sessionssessions with proposed lenders, meetings underwriters, initial purchasers or placement agents, and in sessions with ratings agencies rating agencies; provided that, any rating agency presentations, bank information memoranda or similar documents required in connection with the Debt Financing shall contain disclosure reflecting the Company and/or its Subsidiaries or Affiliates as the obligor only at and road showsafter the Effective Time, reasonable assistance in the (ii) assisting Parent with Parent’s preparation of confidential pro forma financial information memorandaand pro forma financial statements and other materials for rating agency presentations, offering documents, private placement memoranda, registration statements, bank information memoranda, prospectuses, presentations business projections and similar documents as may be reasonably requested by Parent or any used in connection with the Debt Financing Party, in each case, with respect to and providing customary estimates and other forward-looking financial information relating to regarding the further performance of the business of the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect subsidiaries to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is extent reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amendedFinancing sources, and identify any such financial information as suitable for distribution to “public side” lenders;
providing customary authorization and representation letters in connection therewith, (iii) request that the Company’s using reasonable best efforts to cause its independent accountants participate to provide assistance and cooperation to Parent, including participating in drafting sessions and accounting due diligence sessions sessions, assisting in the preparation of any pro forma financial statements to be included in the documents referred to in clause (ii) above, providing consent to Parent to use their audit reports relating to the Company and cooperate with providing any necessary “comfort letters”, (iv) executing and delivering definitive financing documents, including pledge and security documents, and certificates, management representation letters and other documents, to the Financing extent reasonably requested by Parent, and otherwise reasonably facilitating the pledging of collateral, (including v) requesting and cooperating in obtaining customary lien terminations and instruments of discharge, relating to any indebtedness of the Company (it being understood and agreed that the Company’s obligations to provide payoff letters in respect of the Credit Agreement described in Section 6.10(c) below are as set forth in Section 6.10(c) below) and its subsidiaries, and executing and delivering an officer certificate, required to be delivered to the Debt Letters as in effect on Trustee under the date of this Agreement) or Notes Indenture in connection with a customary offering of securitiesthe Merger, provided that any such certificates and documentation do not contain any statements or representations that are not factually accurate in the Company’s sole judgment and that any such certificates and documentation comply in all respects with, and do not cause the Company to breach or violate, applicable Law or the Notes Indenture ; and provided further that, to the extent any statements contained in any such officer certificate are based in part upon facts relating to Parent, including the type described amount of Parent’s cash on hand, the pro forma amount of debt of Parent or the Company following the Merger or the Parent Merger, pro forma compliance with any ratio or the absence of any default of event of default under agreements governing any indebtedness of Parent, or require Parent to consummate any further action or refrain from taking any further action in the Commitment Letter, consistent with their customary practiceorder for any such statements to be accurate, including requesting that they provide customary consents consummating the Parent Merger, Parent shall deliver to the Company such officer certificates as are reasonably deemed necessary by the Company to enable it to delivery any such officer certificate to the Trustee; (vi) providing reasonable access by Parent and comfort letters any Debt Financing sources, and their respective officers, employees, consultants and advisors (including legal, valuation, and accounting advisors) to the books and records, properties, officers, directors, agents and representatives of the Company and its subsidiaries, (vii) assisting with due diligence activities relating to the Company’s financial information, (viii) furnishing to Parent and its Debt Financing sources all pertinent and customary financial and other information regarding the Company and its subsidiaries reasonably requested by Parent as promptly as practicable following such request to consummate the Debt Financing, including all historical financial statements and historical financial data regarding the Company and its subsidiaries, in each case (A) that is required by the Securities Act (including Regulations S-K and S-X thereunder and other accounting rules and regulations of the SEC) for inclusion in a registration statement to be filed with the SEC with respect to debt securities of Parent (other than Rule 3-09, Rule 3-10 or Rule 3-16 of Regulation S-X, Rule 4.02(b) of Regulation S-K and other customary exceptions), (B) that is otherwise customarily included in private placement memoranda relating to private placements under Rule 144A of the Securities Act and bank information memoranda, in each case of the type contemplated by the Debt Financing, and (C) as is otherwise necessary in order to assist in receiving customary “comfort” (including as to “negative assurance” comfortcomfort and change period) from the Company’s independent accountants in connection with offerings of debt securities, in each case at the time during the Company’s fiscal year such offerings will be made (all such information described in clauses (A) through (C) this clause (viii), including the “Required Financial Information”), (ix) taking all actions reasonably requested to (A) permit the prospective lenders involved in respect of historical financial statements of the Debt Financing to evaluate the Company’s and its subsidiaries’ assets, to cash management and accounting systems, policies and procedures relating thereto, including inventory appraisals and field audits, for the extent required purpose of establishing collateral arrangements and (B) establish bank and other accounts and blocked account contracts and lock box arrangements in connection with the marketing and syndication of Financing foregoing after the Acceptance Time, (including as set forth in the Debt Letters as in effect on the date of this Agreementx) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) providing at least 4 Business Days following written request, such prior to the Acceptance Time all documentation and other information as any Financing Party may reasonably determine is about the Company and its subsidiaries required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationsregulations including the USA Patriot Act to the extent requested at least 8 calendar days prior to the anticipated Acceptance Time, including without limitation and (xi) subject to the PATRIOT Act. occurrence of the Acceptance Time, taking all corporate actions necessary to permit consummation of the Debt Financing; provided, further, that nothing in this Agreement herein shall require the Company to cause the delivery of (1) legal opinions such cooperation to the extent it would interfere materially and unreasonably with the business or reliance letters operations of the Company or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii)its subsidiaries, (2) delivery of (A) any other financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3B) any financial information with respect to a month or fiscal period that has not yet ended ended, or has ended less (C) any financial statement with respect to any fiscal quarter (other than 40 days (or, in the case of a fiscal year, 60 daysfourth quarter) prior to the date that is 40 days after the end of the applicable fiscal quarter, or (D) any financial statement with respect to a fiscal year prior to the date that is 60 days after the end of the applicable fiscal year, or (E) any unaudited financial statement in respect of any period ended December 31, 2013, unless, except in the case of clauses (A) and (E), such information is earlier reasonably available to Company and reasonably requested by Parent, (3) delivery of any certificate as to solvency or any legal opinions, or (4) the taking of any action that would conflict with or violate (x) the Company’s Restated Certificate of Incorporation or By-laws, in each case that are not contingent upon the earlier of the Acceptance Time and the Effective Time or (y) any applicable Laws. The Company hereby consents to the use of its and its subsidiaries’ logos in connection with the Debt Financing; provided that such logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company or any of its Subsidiaries or the reputation or goodwill of the Company or any of its Subsidiaries or any of their logos and on such other customary terms and conditions as the Company shall reasonably impose. If the Company at any time in good faith reasonably believes that it has delivered the Required Financial Information to Parent, it may deliver to Parent a written notice to such effect, in which case the Company shall be deemed to have delivered the Required Financial Information at the time of delivery of such requestnotice, unless Parent shall provide to the Company within four Business Days after the delivery of such notice a written notice that describes with reasonable specificity the information that constitutes Required Financial Information that Parent in good faith reasonably believes the Company has not delivered.
(b) Notwithstanding anything in this Section 6.10 to the contrary contained in this Agreement (including this Section 5.05): contrary, neither the Company nor any of its subsidiaries shall be required to (i) nothing in this Agreement (including bear any out-of-pocket cost or expense that is not reimbursed pursuant to this Section 5.056.10(b) shall require any such cooperation to the extent that it would (1) require the Company to or pay any commitment or other feesfee in connection with the Debt Financing, reimburse any expenses or otherwise (ii) incur any liabilities liability (or give cause their respective directors, officers or employees to incur any indemnities liability) under the Debt Financing prior to the Closing, Effective Time or (2iii) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation commitment that would be effective prior to the Closing Effective Time (other than such management representation letters and authorization letters with respect to information memoranda, authorizing the distribution of information to prospective lenders and containing customary representations that such information does not contain a material misstatement or (4) require omission, and that the Companypublic-side versions of such documents, any of if any, do not include material non-public information with respect to the Company Subsidiaries or any of its subsidiaries or their respective boards securities for purposes of directors (or equivalent bodies) to approve or authorize the FinancingUnited States federal securities laws, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) than consents of the Company, its Subsidiaries, or any accountants for use of their respective Representatives under reports in any certificate, agreement, arrangement, document or instrument materials relating to the Financing shall be effective until the Closing.
(c) matters described above). Furthermore, Parent shall (i) shall, promptly upon request by the Company, reimburse the Company for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or subsidiaries and its and their Representatives respective representatives in connection with any cooperation contemplated by their respective obligations pursuant to this Section 5.05 and (ii) 6.10. Parent shall indemnify and hold harmless the Company, the Company Subsidiaries its subsidiaries and its and their Representatives respective representatives from and against any claimand all losses, lossdamages, damageclaims, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost costs or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the Debt Financing and any information used utilized in connection therewiththerewith (other than any information provided in writing specifically for use by or on behalf of the Company or any of its subsidiaries), in each case other than to the extent any of the foregoing arises from the bad faith, gross negligence or willful misconduct of, or breach of this Agreement by, the Company or any of its subsidiaries or their respective affiliates, officers, directors, employees, accountants, agents or representatives.
(c) The Company shall deliver to Acquisition Sub on or prior to the Acceptance Time, a payoff letter with respect to the Credit Agreement, dated as of June 27, 2011, by and among the Company, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent (as amended, supplemented, or otherwise modified from time to time), which payoff letter shall substantially provide (subject to customary exceptions)
Appears in 2 contracts
Sources: Merger Agreement (Harland Clarke Holdings Corp), Merger Agreement (Valassis Communications Inc)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject On and prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall, and shall cause its Subsidiaries to, and shall use its commercially reasonable best efforts to cause their respective directors, officers, employees, agents and advisors to, use commercially reasonable efforts to cooperate with Parent as necessary in connection with the arrangement of Debt Financing as may be customary and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (whichwriting, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using commercially reasonable best efforts to, upon such request of Parent:
(i) make appropriate officers reasonably available, or members of the management team (with appropriate advance notice, seniority and expertise) available for participation at reasonable times in bank a reasonable number of meetings, due diligence sessionslender presentations, conference calls, meetings with prospective lenders and ratings agencies and road showsagencies;
(ii) (A) furnish to Parent the Required Information, (B) provide reasonable assistance in the preparation of confidential any reasonable and customary bank information memoranda, memoranda (including using commercially reasonable efforts to obtain customary authorization letters with respect to the information specific to the Company or any of its Subsidiaries to be reasonably included in any such bank information memoranda from a senior officer of the Company) or private placement memoranda, prospectusesrating agency presentations, presentations marketing and/or syndication materials and similar documents as may be cooperate reasonably requested by Parent or any with the Debt Financing PartySources’ due diligence, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data case with respect to the Company and its Subsidiaries which is prepared by and to the Company extent customary and reasonable, and (C) assist Parent in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested preparation by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare customary pro forma financial statements and projections necessary in accordance connection with Article 11 of Regulation Sthe Debt Financing, it being understood that Parent shall be solely responsible for any pro forma cost savings, synergies, capitalization, ownership or other post-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersClosing pro forma adjustments;
(iii) request that assist in the Company’s independent accountants participate in drafting sessions preparation and accounting due diligence sessions negotiation and cooperate with execution and delivery as of the Financing Closing of any definitive financing documents (including as set forth in the Debt Letters as in effect on the date of this Agreementany schedules and exhibits thereto) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel Parent including, without limitation, customary certificates;
(iv) facilitate the pledging of, and granting of security interests in, the collateral in connection with the Debt Financing, including using commercially reasonable efforts to execute and deliver as of Closing any legal opinion that such counsel customary pledge and security documents or other definitive financing documents, in each case as may be required to deliver in connection with such Financing; andreasonably requested by Parent;
(v) furnish Parent cause the taking of corporate and other actions by the Company and its Subsidiaries reasonably necessary to permit the consummation of the Debt Financing Parties, within five on the Closing Date;
(5vi) provide at least three Business Days following written request, prior to the Closing Date (provided that Parent has made such request at least nine days prior to the Closing Date) all material documentation and other information about the Company as any Financing Party may is reasonably determine is required requested by regulatory authorities under the Parent to satisfy applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. provided;
(vii) request from the Company’s existing lenders such customary documents in connection with refinancings of the Company’s existing debt as reasonably requested by Parent in connection with the Debt Financing and collateral arrangements, furtherincluding customary payoff letters and related lien releases; and
(viii) comply with any obligations under the Convertible Debenture Indenture that arise as a result of the execution, that nothing in delivery or performance by the Company of this Agreement shall require and the Company to cause consummation of the transactions contemplated hereby, including the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, notices and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives certificates required in connection with any cooperation the transactions contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithhereby.
Appears in 2 contracts
Sources: Merger Agreement (Synnex Corp), Merger Agreement (Synnex Corp)
Financing Cooperation. (ai) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts to cooperate with provide to Parent and Merger Sub, and shall cause each of its Affiliates as Subsidiaries to use its reasonable best efforts to provide, and shall use commercially reasonable efforts to cause its non-legal Representatives, including accounting, to provide (in each case at Parent’s sole expense) all cooperation reasonably requested by Parent that is customary in connection with Parent’s the arrangement of any Debt Financing in connection with the Financing transactions contemplated hereby, including, but not limited to using commercially reasonable efforts to (whichprovided, solely for purposes of however, that nothing in this Section 5.057.13 shall require the Company, shall include its Subsidiaries or any alternative equity of its or debt capital markets financings contemplated by the Debt Letterstheir Representatives to disclose any information that is subject to attorney-client, attorney work product or similar privilege or to contravene Law or violate any Contract). Such cooperation will include using reasonable best efforts to:
, (i) make assist in preparation for and participate (and use commercially reasonable efforts to cause management of an appropriate officers reasonably available, with appropriate advance notice, for participation level to participate) in a reasonable number of meetings (but no more than two (2) in person “bank meetings” and additional telephonic meetings at reasonably agreed times), due diligence sessions, meetings drafting sessions, and presentations with prospective lenders and rating agencies, (ii) assist Parent with the timely preparation of customary materials for bank information memoranda and ratings agencies agency presentations (and road shows, reasonable assistance assisting in the preparation obtaining of confidential information memorandacorporate, private placement memorandacredit and facility ratings from ratings agencies), prospectuses, presentations and similar documents required to be delivered in connection with the Debt Financing (including executing a customary authorization letter to the extent reasonably requested by the Debt Financing Source authorizing the distribution of information about the Company and its Subsidiaries to prospective lenders), (iii) furnish Parent with the historical financial statements of the Company reasonably requested by the Debt Financing Sources (subject to the immediately following proviso, the “Required Financial Information”), (iv) provide Parent and Merger Sub with information reasonably necessary to complete customary perfection certificates and other customary loan documents as may be required in connection with the Debt Financing as may be reasonably requested by Parent or the Merger Sub, (v) assist Parent in delivering original stock certificates in the possession of the Company, if any, and original stock powers (or, if any, similar documents for limited liability companies) to the extent customary and reasonably required on or prior to the Closing Date by any Financing Party, in each case, definitive documentation with respect to information relating the Debt Financing (including assisting in obtaining copies thereof prior to the Closing Date), and (vi) take reasonable corporate actions, subject to and only effective upon the occurrence of the Closing, reasonably necessary to permit the consummation of the Debt Financing; provided, that the Company shall not be required to provide, or cause its Subsidiaries or Representatives to provide, cooperation under this Section 7.13(c) that: (A) unreasonably interferes with the ongoing business of the Company or its Subsidiaries; (B) causes any covenant, representation or warranty in this Agreement to be breached; (C) causes any condition set forth in Article VIII to fail to be satisfied or otherwise causes the breach of this Agreement; (D) requires the Company or its Subsidiaries, prior to the Closing, to pay any commitment or other similar fee or incur or become subject to any other liability or obligation in connection with the Debt Financing which is not otherwise funded or promptly reimbursed by Parent; and (E) requires the Company and its Subsidiaries in connection or their respective directors, officers, managers or employees to execute, deliver or enter into, or perform any agreement, document, certificate or instrument with customary marketing efforts respect to the Debt Financing and the directors and managers of Parent the Company and its Affiliates for all or any portion Subsidiaries shall not be required to adopt resolutions approving the agreements, documents and instruments pursuant to which the Debt Financing is obtained. So long as requested by Parent at least ten (10) days prior to the Closing Date, the Company will, and will cause each of the Financing;
(ii) its Subsidiaries to, use commercially reasonable efforts to furnish Parent and the Financing Parties with copies of such financial data Merger Sub promptly, and in any event at least three (3) Business Days prior to the Closing Date, all documentation and other information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including including, without limitation limitation, the PATRIOT ActAct and the beneficial ownership regulation set forth in 31 C.F.R. § 1010.230. The Company hereby consents to the use of its and its Subsidiaries’ trademarks, service marks or logos in connection with the Debt Financing; provided, furtherthat such trademarks, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions service marks or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case logos are used solely in a form manner that is not customarily prepared by the Company with respect intended to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect reasonably likely to a month harm or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require disparage the Company or any of its Subsidiaries or the Company Subsidiaries to enter into reputation or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any goodwill of the Company or any of its Subsidiaries or any of their respective boards intellectual property rights. At least one (1) Business Day prior to the anticipated Closing Date, the Company will deliver to Parent a customary payoff letter in form reasonably acceptable to Parent executed by the lenders of directors the Credit Agreement, which letter will set forth (a) the total amount required to be paid at the Effective Time to satisfy in full the repayment of all Indebtedness outstanding under the Credit Agreement and, if any, all prepayment penalties, premiums and breakage costs that become payable upon such repayment and any other fees or equivalent bodiesexpenses outstanding thereunder (the “Payoff Amount”), (b) the lenders’ obligation to approve or authorize release all liens and other security securing the FinancingCredit Agreement at Parent’s expense immediately after receiving the Payoff Amount, and (iic) no actionwire transfer instructions for paying the Payoff Amount. Notwithstanding the above, all corporate, limited liability or obligation (including any obligation other organizational actions shall be deemed to pay any commitment become effective only if and when the Closing occurs and shall be derived exclusively from the authority of, and shall only be taken by, the board of directors of the Company and its Subsidiaries or other fees or reimburse any expenses) governing body of the Company, Company and its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating Subsidiaries as constituted after giving effect to the Financing shall be effective until the Closing.
(cii) Parent shall (i) promptly upon request by Upon the Company’s request, Parent will reimburse the Company for all of its reasonable and documented out-of-pocket costs, fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any or on behalf of the Company Subsidiaries, or any of its or their Representatives Subsidiaries in connection with any cooperation contemplated by this Section 5.05 and (ii) 7.13. Parent shall indemnify and hold harmless the Company, its Subsidiaries and their respective Representatives for any liabilities incurred by any of them in connection with any action taken by them pursuant to this Section 7.13 (other than arising from fraud, gross negligence or intentional misrepresentation on the part of the Company or its Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigationor Representatives), expense (including fees whether or not the Merger is consummated or this Agreement is terminated in accordance with Article IX. Parent and expenses of counsel Merger Sub acknowledge and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or agree that Section 7.13 shall not create any independent conditions to Closing and that obtaining the Financing and any information used in connection therewithis not a condition to the Closing.
Appears in 2 contracts
Sources: Agreement and Plan of Merger (Majesco), Merger Agreement (Majesco)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts efforts, and shall cause the Company Subsidiaries to cooperate with Parent and its Affiliates as use reasonable best efforts, to provide customary cooperation, to the extent reasonably requested by Parent in writing, in connection with Parent’s arrangement the offering, arrangement, syndication, consummation or issuance of the Financing or Alternative Financing or Replacement Financing obtained in accordance with Section 6.20 (whichprovided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company or any of its Affiliates), solely for purposes of this Section 5.05including, shall include any alternative equity or debt capital markets financings contemplated by to the Debt Letters). Such cooperation will include extent so requested, using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies furnish to Parent and road shows, reasonable assistance in the preparation of confidential Financing Parties historical financial statements and other pertinent financial information memoranda, private placement memoranda, prospectuses, presentations regarding the Company and similar documents as may be the Company Subsidiaries to the extent reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries customary in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish to Parent and the Financing Parties with copies customary information regarding the Company and the Company Subsidiaries (including information to be used in the preparation of such one or more information packages regarding the business, operations, financial data with respect projections and prospects of the Company or the Company Subsidiaries) to the extent reasonably available to the Company and its Subsidiaries which is prepared by or the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is Subsidiaries and reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersParent;
(iii) request that provide reasonable and customary assistance to Parent in the Company’s independent accountants participate in drafting sessions preparation of (A) customary offering documents, offering memoranda, roadshow presentations, bridge teasers, syndication documents and accounting due diligence sessions other syndication materials, including information memoranda and cooperate with lender presentations for any portion of the Financing, (B) materials for rating agency presentations and (C) other marketing materials reasonably requested by Parent and reasonably necessary for the Financing (including as set forth or Alternative Financing or Replacement Financing obtained in the Debt Letters as in effect on the date of this Agreement) or in connection accordance with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingSection 6.20;
(iv) furnish make appropriate members of senior management of the Company available at reasonable times and locations and upon reasonable prior notice, to legal counsel participate in a reasonable number of Parent meetings (including one-on-one meetings or conference calls with Financing Parties, underwriters or ratings agencies), drafting sessions, presentations, road shows, rating agency presentations and to legal counsel of due diligence sessions and other syndication activities, provided that any Financing Party such information as meeting or communication may be reasonably requested conducted virtually by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; andvideoconference or other media;
(v) furnish cause the Company’s independent auditors to deliver (A) customary “comfort letters” (including customary “negative assurances” comfort) in connection with the Financing and (B) customary consent to use of their audit reports in any materials reasonably necessary for the Financing;
(vi) provide customary authorization letters (including customary confirmations and undertakings reasonably requested by Parent) authorizing the distribution of Company information to prospective lenders in connection with a syndicated bank financing (including customary representations with respect to presence or absence of material nonpublic information and accuracy of the information contained therein);
(vii) cooperate with Parent and Merger Sub in their obtaining customary corporate and facilities credit ratings;
(viii) provide customary prepayment notices within the Financing Partiestime period contemplated by (A) the Existing Credit Agreement and (B) any other agreements relating to Indebtedness of the Company or any of the Company Subsidiaries as Parent may reasonably request;
(ix) provide customary documents reasonably requested by Parent relating to (A) the repayment of (1) the Existing Credit Agreement and (2) any other agreements relating to Indebtedness of the Company or any of the Company Subsidiaries as Parent may reasonably request, within and (B) the release of related Liens (if any), including using reasonable best efforts to obtain customary payoff letters in respect of the Existing Credit Agreement and such other agreements relating to Indebtedness of the Company or any of the Company Subsidiaries at least five (5) Business Days following written request, such prior to the Closing Date;
(x) provide all documentation and other information as any Financing Party may reasonably determine is required by bank regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. providedAct and 31 C.F.R. §1010.230, further, that nothing in this Agreement shall require relating to the Company or any Company Subsidiary as soon as practicable but in any event at least five (5) Business Days prior to the Closing Date, in each case as reasonably requested by Parent at least ten (10) Business Days prior to the Closing Date;
(xi) cooperate with due diligence of the Financing Parties, to the extent customary and reasonable;
(xii) consent to the use of the Company’s and the Company Subsidiaries’ logos in connection with the Financing; provided that such logos are used solely in a manner that is not intended to, nor reasonably likely to, harm or disparage the Company or the Company Subsidiaries or the Company’s or the Company Subsidiaries’ reputation or goodwill;
(xiii) provide customary and reasonable assistance requested by Parent in connection with Parent’s preparation of pro forma financial statements and pro forma financial information;
(xiv) provide customary certificates and other customary closing documents as may be reasonably requested in writing by the Financing Parties (provided that no obligation of the Company or any Company Subsidiary under any such certificate or document shall be effective until the Closing);
(xv) cause the delivery taking of corporate actions and organizational changes reasonably requested by Parent and within the control of the Company that are reasonably necessary to permit the completion of the Financing;
(1xvi) legal opinions or reliance letters or reasonably assist in the preparation of, and executing and delivering at Closing, the Definitive Agreements and any certificate as indentures, notes and purchase agreements relating to solvency or any other certificate necessary for the Financing, other than including assisting with the execution and delivery as provided by Section 5.05(a)(iii), of the Closing (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form but not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date Closing) of any guarantee and collateral documents and customary closing certificates as may be reasonably requested by Parent and required by the Commitment Letter or the Financing (provided that no obligation of the Company or any Company Subsidiary under any such requestdocument, agreement or certificate shall be effective until the Closing) and otherwise use commercially reasonable efforts to provide customary and reasonable assistance requested by Parent in connection with satisfying the conditions precedent set forth in the Definitive Agreements;
(xvii) reasonably cooperate with Parent’s legal counsel in connection with any legal opinion that such legal counsel may be required to deliver in connection with the Financing, including using reasonable best efforts to furnish documents required to satisfy any customary negative assurance opinion required in connection with the Financing;
(xviii) to the extent necessary or advisable, reasonably cooperate to facilitate the pledging of collateral and the executing and delivering of customary pledge and security documents (and any other customary documents or instruments required for the creation and perfection of security interests in the collateral securing the Financing as may be reasonably requested by Parent) or other customary definitive financing documents reasonably requested by the Financing Parties (including customary guarantees and other deliverables), in each case required in connection with the Financing and effective as of the Closing (but not prior to the Closing);
(xix) provide customary and reasonable assistance to Parent and Merger Sub in obtaining required consents, landlord waivers and estoppels, estoppels and SNDAs from tenants under any leases, ground lease estoppels and consents from fee owners under any Facility Leases, estoppels and consents pursuant to any PILOT documents and surveys and title insurance as reasonably requested by Parent or Merger Sub, including by using reasonable best efforts to provide customary non-imputation title affidavits, title affidavits or similar documents required by a nationally-recognized title company for (A) the deletion of any standard or pre-printed exceptions in any title insurance policies or proforma or (B) the satisfaction of any requirement set forth in any title commitment and, to the extent appropriate, appraisals of the Company Properties; and
(xx) take any other actions reasonably requested by Parent and necessary to permit the Financing Parties to conduct customary field examinations for third party reports and environmental assessments, and, to the extent appropriate, appraisals of the Company Properties.
(b) Notwithstanding anything The foregoing notwithstanding, none of the Company nor any of its Affiliates shall be required to take or permit the contrary contained in this Agreement (including taking of any action pursuant to this Section 5.05): 6.19 that would: (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company SubsidiariesSubsidiaries or and of their respective Affiliates or any persons who are officers or directors of such entities to pass resolutions or consents to approve or authorize the execution of the Financing (other than any customary authorization letters), except (A) resolutions or consents which are subject to the occurrence of the Closing passed by directors or officers continuing in their positions following the Closing and (B) as expressly provided in Section 6.19(a), (3ii) cause any representation or warranty in this Agreement to be breached by the Company or any of its Affiliates, (iii) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation its Affiliates to pay any commitment or other fees similar fee or reimburse incur any expenses) other expense, liability or obligation in connection with the Financing prior to the Closing or have any obligation of the Company, its Subsidiaries, Company or any of their respective Representatives its Affiliates under any certificate, agreement, arrangementcertificate, document or instrument relating to the Financing shall be effective until the Closing.
, (civ) cause any director, officer, employee or shareholders of the Company or any of its Affiliates to incur any personal liability, (v) conflict with the organizational documents of the Company or any of its Affiliates or any Laws, (vi) reasonably be expected to result in a material violation or breach of, or a default (with or without notice, lapse of time, or both) under, any Contract to which the Company or any of its Affiliates is a party, (vii) provide access to or disclose information that the Company or any of its Affiliates determines would jeopardize any attorney-client privilege or other applicable privilege or protection of the Company or any of its Affiliates, (viii) require the Company to prepare any financial statements or information that are not available to it and prepared in the ordinary course of its financial reporting practice, or (ix) require the Company to prepare or deliver any Excluded Information. Nothing contained in this Section 6.19 or otherwise shall require the Company or any of its Affiliates, prior to the Closing, to be an issuer or other obligor with respect to the Financing. Parent shall (i) shall, promptly upon on request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, or any of its Affiliates for all reasonable and documented out-of-pocket costs incurred by them or their respective Representatives in connection with the Financing or with any cooperation contemplated by this Section 5.05 such cooperation, and (ii) shall indemnify and hold harmless the Company, the Company Subsidiaries and its Affiliates and their respective Representatives from and against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) all losses actually suffered or settlement payment incurred as a result of, or by them in connection withwith the Financing, such cooperation any action taken by them at the request of Parent or the Financing its Representatives pursuant to this Section 6.19, and any information used in connection therewiththerewith (other than information provided to Parent in writing by the Company or the Company Subsidiaries specifically in connection with their obligations pursuant to Section 6.19(a)).
(c) The parties hereto acknowledge and agree that the provisions contained in this Section 6.19 represent the sole obligation of the Company and the Company Subsidiaries with respect to cooperation in connection with the arrangement of any financing (including the Financing) to be obtained by Parent, and no other provision of this Agreement (including the Exhibits and Schedules hereto) shall be deemed to expand or modify such obligations. In no event shall the receipt or availability of any funds or financing (including the Financing) by Parent any of its Affiliates be a condition to any of Parent’s obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, the breach by the Company of any of the covenants required to be performed thereby under this Section 6.19 shall not be considered in determining the satisfaction of the condition set forth in Section 7.2(b) unless such breach is the primary cause of Parent being unable to obtain the proceeds of the Financing at the Closing.
(d) All non-public or otherwise confidential information regarding the Company or any of its Affiliates obtained by Parent or its Representatives pursuant to this Section 6.19 shall be kept confidential in accordance with the Confidentiality Agreement; provided that Parent shall be permitted to disclose information as necessary and consistent with customary practices in connection with the Financing subject to customary confidentiality arrangements reasonably satisfactory to the Company.
Appears in 2 contracts
Sources: Merger Agreement (Industrial Logistics Properties Trust), Merger Agreement (Monmouth Real Estate Investment Corp)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth To assist Parent in this Section 5.05, and unless otherwise agreed by Parentits financing efforts, the Company will agrees to use its commercially reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents Offering as may be reasonably requested by Parent or any with the arrangement of the Financing Partyas may be reasonably requested by Parent and is necessary and customary for financings of the type contemplated in connection with the arrangement of the Financing, including, in each casecase (subject in each case to Section 6.05(b) below), by (i)(A) preparing and providing to Parent, its Financing Sources and the underwriters in connection with the Offering (an “Underwriter”), as promptly as reasonably practicable after Parent’s written request therefor, customary and reasonably available financial and other information with respect to information relating to the Company and each of its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion the transactions contemplated hereby and by the Financing, including (x) audited consolidated annual financial statements of the Financing;
Company and (iiy) furnish Parent unaudited interim consolidated financial statements of the Company (which shall have been reviewed by the independent accountants for the Company as provided in Statement on Auditing Standards No. 100) and the Financing Parties with copies of such financial data (B) providing as promptly as reasonably practicable after Parent’s written request therefor any information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow assist Parent to prepare with the preparation of customary pro forma financial statements in accordance with Article 11 that meet the requirements of Regulation S-X and all other applicable accounting rules and regulations of the SEC promulgated thereunder and required to be included in a Registration Statement on Form S-3 under the Securities 1933 Act or reasonably and customarily required by the Financing Sources or Underwriters to be included in any offering documents; provided, that notwithstanding anything to the contrary in this Section 6.05, nothing will require the Company to provide (or be deemed to require the Company to provide) any (1) pro forma financial statements; (2) description of 1933all or any portion of the Financing, as amendedincluding any “description of notes”, and identify other information customarily provided by financing sources or their counsel; (3) risk factors relating to all or any such component of the Financing; (4) “segment” financial information as suitable or (5) any Compensation Discussion and Analysis or other information required by Item 402 of Regulation S -K under the 1933 Act or any other information customarily excluded from offering documents for distribution the type of financing contemplated by the Financing, (ii) using commercially reasonable efforts to “public side” lenders;
(iii) request that cause the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and to reasonably cooperate with the Financing (including as set forth Sources or Underwriters in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, manner consistent with their customary practice, including requesting that they practice and to participate in customary auditor due diligence calls and provide customary consents and accountants’ “comfort letters” (including customary “negative assurances”) (it being understood that the comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required delivered in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date Company’s public offerings shall be deemed to be customary for purposes of this AgreementSection 6.05) or as are customarily required in an underwritten offering and customary consents to the inclusion of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange audit reports in connection with the Merger Financing if historical financial statements or other financial information of the Company are included in any offering documents for the Financing, (iii) providing reasonable cooperation with customary syndication or other marketing efforts, or a customary offering, by Parent for all or any alternative financing thereforportion of the Financing or the Offering, including reasonable access to documents and provide customary management letters other information in connection with customary due diligence investigations and causing its management team, with appropriate seniority and expertise, to assist in a reasonable number of meetings and presentations (which, in the foregoing;
Company’s discretion, may be in the form of virtual meetings, video calls or conference calls) with Financing Sources or Underwriters and ratings agencies, in each case, on reasonable advance notice during normal business hours, (iv) furnish upon reasonable advance notice and during normal business hours, providing customary and reasonably necessary assistance to legal counsel Parent (including by causing its management team, with appropriate seniority and expertise), to participate in a reasonable number of Parent meetings and to legal counsel of any Financing Party such information as presentations (which, in the Company’s discretion, may be reasonably requested by such counsel in connection with any legal opinion that such counsel may the form of virtual meetings, video calls or conference calls and shall be required to deliver during normal business hours) in connection with such Financing; and
the preparation of offering documents for the Financing or the Offering, (v) furnish furnishing Parent and the Financing Parties, within five (5) at least four Business Days following written request, such prior to the date of the Closing with all customary documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationsregulations and under the USA Patriot Act of 2001 reasonably required and reasonably requested in writing by the parties acting as lead arrangers for, including without limitation or lenders under, the PATRIOT Act. provided, further, that nothing in this Agreement shall require Financing or the Underwriters to the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 at least ten days (or, in the case of a fiscal year, 60 days) prior to the date of the Closing, (vi) providing reasonable facilitation (through providing and executing customary agreements, documents or certificates) of the pledge and perfection of liens and security interests in connection with the Financing, as may be reasonably requested by Parent (provided that no obligation under any such requestdocument or agreement will take effect on or prior to the Closing) and (vii) otherwise providing cooperation that is customary and reasonable in connection with the marketing efforts of Parent, the Financing Sources and any Underwriters.
(b) Notwithstanding anything to the contrary contained foregoing, nothing in this Agreement (including this Section 5.05): 6.05 shall require the Company or any of its Subsidiaries to: (i) nothing take any action in this Agreement (including this Section 5.05) shall require any such cooperation respect of the Financing or an Offering to the extent that it such action would cause any condition to Closing set forth in Article 9 or any condition set forth in Article 9 to fail to be satisfied by the End Date or the Effective Time, as applicable, or otherwise result in a breach of this Agreement by the Company; (ii) take any action in respect of the Financing or an Offering that would conflict with or violate the Company’s or any if its Subsidiaries’ organizational documents or any Applicable Law, or result in the contravention of, or violation or breach of, or default under, any Contract to which the Company or any of its Subsidiaries is a party; (iii) take any action to the extent such action would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2A) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, its Subsidiaries or (3B) require cause significant competitive harm to the Company or its Subsidiaries if the transactions contemplated by this Agreement are not consummated; (iv) execute and deliver any of letter, Contract, registration statement, document or certificate in connection with the Company Subsidiaries to enter into Financing or approve take any agreement corporate action that is not contingent on, or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to, the occurrence of the Closing, it being agreed that the foregoing shall not apply to the inclusion of customary acquiree financial and related information in a registration statement or prospectus prior to Closing and cooperation in connection therewith; (v) pay any commitment fee or (4) require the Company, other fee or payment to obtain consent or incur any of the Company Subsidiaries liability with respect to or cause or permit any Lien to be placed on any of their respective boards assets in connection with the Financing prior to the date of directors the Closing; (vi) provide access to or equivalent bodiesdisclose information where the Company determines that such access or disclosure would reasonably be expected to jeopardize the attorney-client privilege or contravene any Applicable Law or Contract (but shall use commercially reasonable efforts to grant such access or provide such disclosure in a manner which would not jeopardize such privilege or contravene any such Applicable Law or Contract); (vii) to approve or authorize the Financing, and (ii) no action, liability or obligation (including subject any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, ’s or its Subsidiaries’ respective directors, managers, officers or employees to any of their respective Representatives under any certificate, agreement, arrangement, document actual or instrument relating to potential personal liability; (viii) cause the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees directors and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any managers of the Company Subsidiariesto adopt resolutions approving the agreements, documents and instruments pursuant to which the Financing is obtained unless such resolutions are contingent upon the occurrence of, or only effective as of, the Closing; (ix) waive or amend any terms of this Agreement or any other Contract to which the Company or its Subsidiaries is party; or their Representatives (x) take any action that would subject it to actual or potential liability, to bear any cost or expense or to make any other payment or agree to provide any indemnity in connection with any cooperation contemplated commitment letters or the definitive documents related to the Financing or any information utilized in connection therewith (in each case under this clause (x), except following the Closing). In no event shall the Company be in breach of this Agreement because of the failure to deliver any financial or other information that is not currently readily available to the Company on the date hereof or is not otherwise prepared in the ordinary course of business of the Company at the time requested by this Section 5.05 and (ii) Parent or for the failure to obtain any comfort with respect to, or review of, any financial or other information by its accountants. Whether or not the Closing occurs, Parent shall indemnify and hold harmless the Company, each Subsidiary thereof, and each of their respective Representatives and Affiliates from and against any and all liabilities or losses suffered or incurred by them in connection with the arrangement of the Financing or any Offering, any cooperation provided pursuant to this Section 6.05, and any information utilized in connection therewith. Additionally, if this Agreement is terminated by the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigationpursuant to Section 10.01(d), expense (including Parent shall, promptly upon written request by the Company or any Subsidiary thereof, reimburse such party for all reasonable and documented out-of-pocket costs, fees and expenses (including reasonable attorneys’ fees and expenses) incurred by such Persons in connection with any such Person complying with the obligations under this Section 6.05. Notwithstanding anything to the contrary, upon any breach by the Company or its Subsidiaries of counsel and accountantstheir obligations under this Section 6.05, neither the Company nor its Subsidiaries shall be deemed to have breached their respective obligations under this Agreement (including for purposes of the termination right set forth in Section 10.01(c)) or settlement payment incurred as the condition described in Section 9.02(b) unless (i) such breach is a Knowing and Intentional Breach and for this purpose each obligation in this Section 6.05 that is not qualified by a commercially reasonable efforts qualification will be deemed to be so qualified, (ii) Parent provides written notice of such alleged breach and the Company fails to promptly use commercially reasonable efforts to cure any such alleged breach that is a breach and (iii) the failure to obtain the Financing or to complete the Offering is a result ofof such breach; provided that nothing in this sentence will preclude Parent from seeking specific performance in respect thereof in accordance with Section 11.14. Parent and Merger Sub expressly acknowledge and agree that none of the following is a condition to either Parent’s or Merger Sub’s obligation to consummate the Merger: Parent or Merger Sub obtaining Financing, or in connection with, such cooperation Parent or the Financing and Merger Sub or any information used in connection therewithAffiliate of Parent completing an Offering.
Appears in 2 contracts
Sources: Merger Agreement (ProFrac Holding Corp.), Merger Agreement (FTS International, Inc.)
Financing Cooperation. (a) From the date hereof until Prior to the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentDate, the Company will shall use its commercially reasonable best efforts to cooperate with provide, and shall cause each Subsidiary of the Company and each of the Company’s and each Subsidiary’s non-legal Representatives to use commercially reasonable efforts to provide, to Parent and its Affiliates as Merger Sub, in each case at Parent’s sole expense, all cooperation that is reasonably requested by Parent and customary in connection with Parent’s arrangement Parent arranging the Debt Financing effective as of or after (and conditioned on the occurrence of) the Effective Time of the Financing (whichMerger, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using commercially reasonable best efforts to:
(i) make appropriate officers reasonably availableupon reasonable notice, direct employees of the Company and its Subsidiaries with appropriate advance noticeseniority and expertise to be available at reasonable times and participate in a reasonable number of meetings (including one-on-one meetings or conference calls with providers of the Debt Financing); provided, for participation in bank meetings, due diligence sessions, meetings that any such meeting or communication may be conducted virtually by videoconference or other media;
(ii) provide reasonable and customary assistance to Parent with ratings agencies and road shows, reasonable assistance in the Parent’s preparation of confidential bank information memoranda, private placement memoranda, prospectuses, presentations memoranda and similar marketing documents reasonably necessary in connection with the Debt Financing (which may include, but not be limited to customary offering and syndication documents) and provide reasonably timely and customary access to diligence materials, appropriate personnel and properties during normal business hours and on reasonable advance notice to allow sources of the Debt Financing and their representatives to complete all reasonable due diligence; in each case in this clause: (A) subject to customary confidentiality provisions and disclaimers; (B) as may be reasonably requested in writing (e-mail being sufficient) by Parent or any Financing Party, in each case, Parent; and (C) limited to information to be contained therein with respect to the Company and its Subsidiaries;
(iii) to the extent requested by Debt Financing Sources, furnish Parent, reasonably promptly upon written request, with such historical financial, statistical and other pertinent business information relating to the Company and its Subsidiaries in connection as may be reasonably requested by Parent (which notice shall state with customary marketing efforts reasonable specificity the information requested), as is customarily required with financings of Parent the type similar to the Debt Financing and reasonably available and prepared by or for the Company and its Affiliates Subsidiaries in the ordinary course of business; provided, that, the Company shall not be responsible in any manner for all any pro forma financial information or any portion financial statements;
(iv) facilitate, effective no earlier than the Effective Time, simultaneously with, and conditioned upon, and subject to the occurrence of, the Closing, the execution and delivery of definitive financing, pledge, security and guarantee documents relating to the Debt Financing;
(iiv) furnish Parent provide documentation and the Financing Parties with copies of such financial data other information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. Act in connection with the Debt Financing, in each case as reasonably requested by Parent in writing;
(vi) (A) cooperate in connection with the repayment or defeasance of any existing indebtedness of the Company and its Subsidiaries as of the Effective Time and the release of related Liens, including delivering such payoff, defeasance, termination or similar notices under any existing financing documents of the Company and its Subsidiaries as are reasonably requested by Parent;
(vii) to the extent requested by ▇▇▇▇▇▇ in writing, obtain from the Company’s independent auditors customary “comfort letters” and customary consents to the use of accountants’ audit reports in connection with the Debt Financing;
(viii) provide reasonable and customary assistance with respect to Parent attempting to obtain any third-party consents associated with the Debt Financing which shall not be required to be effective until as of, and subject to the occurrence of, the Closing;
(ix) provide reasonable consent to the use of the Company’s and its Subsidiaries’ logos in connection with the Debt Financing;
(x) to the extent reasonably requested in writing by Parent, (A) mail and e-mail requests for estoppels, subordination agreements and certificates from non-residential tenants, lenders, managers, franchisors, ground lessors, ground lessees, and counterparties to parking agreements, reciprocal easement agreements, association or condo regimes, declarations and similar agreements in form and substance reasonably satisfactory to such Debt Financing Source and reasonably cooperate to facilitate the negotiation and execution of such agreements and certificates, and (B) provide customary owner’s affidavits, gap indemnities, no change survey affidavits and non-imputation affidavits to enable Parent’s title company to issue policies of title insurance; and
(xi) to the extent reasonably requested in writing (e-mail being sufficient) by Parent, provide customary and reasonable assistance to allow Parent, the Debt Financing Sources, and each of their respective Representatives to conduct customary appraisal, survey field work and non-invasive environmental and engineering inspections of each Company Real Property (provided, furtherhowever, that nothing all such activities and inspections shall be conducted, and Parent shall schedule and coordinate all such activities with the Company, in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared each case in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request5.03).
(b) Notwithstanding anything the foregoing, the Company shall not be required to the contrary contained in this Agreement (including provide, or cause its Subsidiaries or Representatives to provide, cooperation under this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation 5.20 to the extent that it would it: (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2i) unreasonably interfere interferes with the ongoing business or operations of the Company or and its Subsidiaries; (ii) requires the Company Subsidiaries, (3) require the Company or any of the Company and its Subsidiaries to enter into or approve incur any agreement or other documentation effective liability (including any commitment fees and expense reimbursement) in connection with the Debt Financing prior to the Closing (except those fees, expenses and liabilities that are reimbursable by Parent pursuant to Section 5.20(c)); (iii) requires the Company and its Subsidiaries or their respective Representatives to execute, deliver or enter into, or perform any agreement, document, certificate or instrument (or agree to any change or modification of any existing certificate, document, instrument or agreement or other documentation that would be is effective prior to the Effective Time) with respect to the Debt Financing (other than with respect to customary authorization letters with respect to the Debt Financing) or adopt resolutions approving the agreements, documents and instruments pursuant to which the Debt Financing is obtained, in each case which is not contingent upon the Closing or would be effective at or prior to the Effective Time (4it being understood that in no event shall any officer or director of the Company and its Subsidiaries be required to take any such action described in this clause (iii) require unless such Person shall be continuing in such role following the Effective Time, and shall only be required to do so in such continuing capacity); (iv) requires the Company and its Subsidiaries or their counsel to give any legal opinion, to the extent not contingent on and effective as of the Closing; (v) requires the Company and its Subsidiaries to provide any information that is prohibited or restricted by applicable Law; (vi) requires the Company and its Subsidiaries to provide access to or disclose information that the Company or any of its Subsidiaries determines could reasonably be expected to result in a loss or waiver of or jeopardize any attorney-client privilege, attorney work product or other legal privilege (provided, that the Company shall use commercially reasonable efforts to allow for such access or disclosure in a manner that does not result in the events set out in this clause (vi)); (vii) requires the Company and its Subsidiaries to take any action that is prohibited or restricted by, or would conflict with or violate, its Organizational Documents, any Company Material Contract or any applicable Laws; (viii) would reasonably be expected to result in any Representative of the Company or its Subsidiaries incurring personal liability with respect to any matter relating to the Debt Financing or requires any Representative of the Company or any of its Subsidiaries to deliver any certificate that such Representative reasonably believes, in good faith, contains any untrue certifications; (ix) requires the Company and its Subsidiaries or their Representatives, as applicable, to waive or amend any terms of this Agreement; or (x) causes any representation, warranty, covenant or other term in this Agreement to be breached or causes any Closing condition set forth in ARTICLE VI to fail to be satisfied. In no event shall the Company be in breach of this Agreement because of (A) the failure to deliver any financial or other information that is not currently readily available to the Company and its Subsidiaries on the date hereof and has not otherwise been prepared in the ordinary course of business of Company and its Subsidiaries at the time requested by Parent or (B) the failure to obtain review of any financial or other information by its accountants and in no event shall the Company or its Subsidiaries be required to provide or assist in the preparation of any projections or “pro forma” financial statements. None of the representations, warranties or covenants of the Company set forth in this Agreement shall be deemed to apply to, or deemed breached or violated by, any of the actions taken by the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under at the request of Parent pursuant to this Section 5.20. Nothing contained in this Section 5.20 or otherwise shall require the Company or any certificateof its Subsidiaries, agreement, arrangement, document or instrument relating prior to the Financing shall Effective Time, to be effective until an issuer or other obligor with respect to the ClosingDebt Financing.
(c) Parent shall (i) reimburse or cause to be reimbursed the Company and its Subsidiaries promptly upon request by the Company, reimburse the Company written demand for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees reasonable and expenses documented attorneys’ and out-of-pocket accountants’ fees) (other than in respect of counsel the preparation of customary historical and accountantsordinary course financial statements already prepared by the Company and its Subsidiaries in the ordinary course of their business and/or with respect to information or materials already in the possession or control of any of the Company and its Subsidiaries) incurred by the Company, any of the Company Subsidiaries, any of and its or Subsidiaries and their Representatives in connection with any the cooperation contemplated by under this Section 5.05 5.20 and any action taken by them at the request of Parent pursuant to Section 5.20 (ii) including the dissolution and termination of any subsidiaries formed and documentation entered into pursuant to Section 5.20), and shall indemnify and hold harmless the Company, the Company Subsidiaries and its Subsidiaries and their Representatives and each of the Company’s and its Subsidiaries’ and their Representatives’ respective present and former directors, officers, employees and agents (collectively, the “Financing Indemnified Parties”) from and against any claimand all documented out-of-pocket costs, lossexpenses, damagelosses, injurydamages, liabilityclaims, judgmentjudgments, awardfines, penaltypenalties, fineinterest, Taxsettlements, cost (including cost awards and liabilities suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation with the arrangement and consummation of the Debt Financing or the Financing Assumed Indebtedness and any information used in connection therewith, in each case, except to the extent such costs, expenses, losses, damages, claims, judgments, fines, penalties, interest, settlements, awards and liabilities are suffered or incurred as a result of bad faith, gross negligence or willful misconduct by any Financing Indemnified Party as determined by a court of competent jurisdiction in a final judgment not subject to further appeal. The provisions of this Section 5.20(c) are intended to be for the benefit of, and shall be enforceable by, each of the foregoing Financing Indemnified Parties. This Section 5.20(c) shall survive the termination of this Agreement (and in the event the Merger and the other transactions contemplated hereby are not consummated, notwithstanding anything to the contrary in this Agreement, Parent shall promptly reimburse the Company for any reasonable and documented out-of-pocket costs incurred by the Company and its Subsidiaries in connection with the cooperation under Section 5.20, reimbursable under this Section 5.20(c) and not previously reimbursed and any indemnification obligations under this Section 5.20(c), in each case, without regard to any other limitations on liability set forth in this Agreement).
(d) Promptly following Parent’s request, the Company shall, or shall cause its Subsidiaries to, use commercially reasonable efforts to deliver to each of the lenders or any agent or trustee acting on their behalf (each, an “Existing Lender”) under the existing indebtedness of the Company and its Subsidiaries set forth on Section 5.20(d) of the Company Disclosure Letter (the “Assumed Indebtedness”), a notice prepared by Parent, in form and substance reasonably approved by the Company, requesting that such Existing Lender deliver to Parent and the Company a written statement or documents (the “Assumption Documents”) (A) confirming (1) the aggregate principal amount of the indebtedness outstanding under such Assumed Indebtedness, (2) the date to which interest and principal has been paid in respect of such Assumed Indebtedness, and (3) the amount of any escrows being held by such Existing Lender in respect of such Assumed Indebtedness; and (B) consenting to the assumption of the existing indebtedness, the replacement of any guaranty and the consummation of the Merger and the other transactions contemplated by this Agreement, and to the modifications of the terms of such Assumed Indebtedness that Parent may reasonably request after the date hereof; provided, that the Company shall be informed of any such request or modification; provided, further, that, in the event Parent requests Assumption Documents in accordance with this Section 5.20(d), (x) the Assumption Documents will be effective as of or immediately prior to and conditioned on the occurrence of the Effective Time and (y) the Company and its Subsidiaries shall not have obligation, responsibility or liability to Parent or Merger Sub in connection with Parent’s request for any consent of any Existing Lender requested pursuant to this Section 5.20(d), other than to use commercially reasonable efforts to deliver such request in the form prepared by Parent (and approved by Company) to the applicable Existing Lender.
Appears in 2 contracts
Sources: Merger Agreement (Sotherly Hotels Lp), Merger Agreement (Sotherly Hotels Lp)
Financing Cooperation. (a) From In connection with Parent’s financing in connection with the date hereof until the Closing (or the earlier termination of transactions contemplated by this Agreement pursuant to Section 8.01(including the Financing) (the “Parent Financing”), subject prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will use its reasonable best efforts shall provide to cooperate with Parent and Merger Sub, at Parent’s sole expense, customary cooperation reasonably requested by Parent and Merger Sub that is necessary in connection with the arrangement and consummation of the Parent Financing, including (in each case, to the extent reasonably requested by Parent):
(i) participating in a reasonable number of meetings, due diligence sessions, drafting sessions and sessions between senior management and the actual or perspective Financing Sources;
(ii) (A) promptly providing (1) the Required Information and (2) such other pertinent information regarding the Company and its Affiliates Subsidiaries and such other financial data relating to the Company and its Subsidiaries as may be reasonably available to the Company and which is reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of one or more bank information memoranda and packages (confidential information memorandaand public), lender and investor presentations, rating agency materials, private placement memoranda, prospectusesoffering memoranda, presentations prospectuses and similar documents as may customary in order to consummate the Parent Financing or that would be reasonably requested by necessary to obtain a consent from or receive customary “comfort” letters from the independent registered public accounting firm of the Company (including negative assurance comfort), and (B) cooperating with Parent in preparing such pro forma financial statements and other pro forma financial data and financial information;
(iii) providing reasonable and customary assistance with the preparation of documents customarily required in connection with any bank debt, public or private senior note financings or equity securities issuances or equity linked, convertible, exchangeable or other debt securities issuances and, to the extent required under the Commitment Letter (including any alternative or replacement financing referred to in Section 5.15(b)) or any Financing Partyother financing in connection with the transactions contemplated by this Agreement, in each case, with respect to providing all documentation and other information relating to the Company and or any of its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securitiesthereunder, including the type described in customary representation letter to the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements independent registered public accounting firm of the Company, to the extent required Company in connection with the marketing and syndication delivery of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger a comfort letter or any alternative financing thereforconsent, and provide customary management consents to use the audit reports relating to the Company, the customary authorization letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent any bank debt and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and or other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. providedU.S.A. Patriot Act of 2001;
(iv) using reasonable best efforts to assist Parent in obtaining legal opinions from applicable outside counsel (and not internal counsel) as customarily required in connection with any bank debt or public or private senior note financings or equity securities issuances or equity linked, furtherconvertible, that nothing exchangeable or other debt securities issuances, as the case may be (including, in this Agreement shall require all cases, the Company Parent Financing); and
(v) using reasonable best efforts to cause the delivery of (1) legal opinions Company’s registered public accounting firm to provide written consent to use such firm’s audit report in a registration statement filed with the SEC or reliance letters or any certificate as to solvency or in any other certificate necessary for offering document and to deliver a customary “comfort” letter (including negative assurance comfort) to the FinancingFinancing Sources as customarily required in connection with any public or private senior note financings or equity securities issuances or equity linked, convertible, exchangeable or other than as provided by Section 5.05(a)(iii), debt securities issuances (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amendedincluding, in any case in a form not customarily prepared by all cases, the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestParent Financing).
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feesSection 5.16, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations no obligation of the Company or the Company Subsidiaries, (3) require the Company or any of its Subsidiaries under any certificate or document (other than the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior customary representation letter to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any independent registered public accounting firm of the Company Subsidiaries in connection with the delivery of a comfort letter or consent, any customary authorization letters in connection with any bank debt and any notices of their respective boards of directors (or equivalent bodies) to approve or authorize prepayment and/or commitment terminations which are delivered by the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) Company not in contravention of the Company, its Subsidiaries, or any applicable agreement and conditioned upon the consummation of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall Merger and delivered in accordance with Section 5.11) will be effective until the Closing.
(c) Effective Time. In addition, Parent shall (i) promptly upon request by the Companywill indemnify, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify defend and hold harmless the Company, the Company and its Subsidiaries and its and their Representatives from and against any claimand all liabilities, lossobligations, damagelosses, injurydamages, liabilityclaims, judgmentcosts, awardexpenses, penaltyawards, fine, Tax, cost (including cost judgments and penalties suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or the with any Parent Financing and any information used in connection therewith, except and solely to the extent that any such obligations, losses, damages, claims, costs, expenses, awards, judgments and penalties, fees, costs or other liabilities are suffered or incurred as a result of the Company’s or its Subsidiaries or its or their Representatives’ gross negligence, bad faith, willful misconduct or material breach of this Agreement.
(c) Notwithstanding the requirements of this Section 5.16, (i) none of the Company or any of the Company’s Subsidiaries will be required to pay or commit to pay any commitment or other fee or incur any other liability (including any guarantee, indemnity or pledge) for the Financing prior to the Effective Time, except fees that are promptly reimbursed by Parent and (ii) nothing in this Section 5.16 will require the Company or any of its Subsidiaries to provide any information or take any action, the disclosure or taking of which would violate applicable Law, any fiduciary duty, any Contract or obligation of confidentiality owing to a third-party, or jeopardize the protection of the attorney-client privilege (it being agreed that the Company shall give notice to Parent of the fact that it is withholding such information or documents on the basis of any such Law, duty, Contract, obligation or privilege, shall withhold only that portion of such information that is reasonably necessary to be withheld to not violate applicable Law, duty, Contract or obligation and to preserve attorney-client privilege, and thereafter the Company shall use its reasonable best efforts to cause such information to be provided in a manner that would not reasonably be expected to violate such Law, duty, Contract or obligation or waive attorney-client privilege).
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, Windstream, New Uniti, New Windstream LLC, HoldCo and unless otherwise agreed by Parent, the Company will Merger Sub agree to use its reasonable best efforts to cooperate with Parent provide, and its Affiliates as reasonably requested by Parent shall cause their respective Subsidiaries and representatives to use reasonable best efforts to provide, customary cooperation in connection with Parent’s (x) the arrangement and consummation of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by including the Debt LettersFinancing) or (y) any other financing or filing of any registration statement which Uniti, in its sole discretion, elects to pursue to the extent that such financing or filing is permitted pursuant to Section 6.01 (any financing or filing described in this clause (y). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance noticecollectively, for participation a “Permitted Transaction”), in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents each case as may be reasonably requested by Parent Uniti, at Uniti’s sole cost and expense, including:
(i) taking all actions reasonably necessary to consummate common equity financing issued by New Uniti (solely in the event that Uniti elects to consummate the Financing in such a manner), including by causing New Uniti to issue equity securities, or agree to issue equity securities; provided that New Uniti shall not be obligated to take any Financing Party, in each case, with respect to information relating to such action that is not conditioned upon the Company and its Subsidiaries in connection with customary marketing efforts occurrence of Parent and its Affiliates for all or any portion of the FinancingClosing;
(ii) furnish Parent solely in connection with a registered offering or offering made in reliance on Rule 144A of the 1933 Act (a “Rule 144A Offering”) of equity securities or securities convertible into equity securities, furnishing Uniti and/or the Debt Financing Sources, as applicable, as promptly as reasonably practicable, with audited and the Financing Parties with copies of such interim financial statements (subject to their completion and availability) and any other financial data with respect to and information of the Company and its Subsidiaries which is prepared type required by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X and Regulation S-K under the Securities Act or of 1933the type and form customarily included in documents for the Financing or any Permitted Transaction, as amendedexcluding, and identify for the avoidance of doubt, any such financial information as suitable for distribution to “public side” lenderspro forma financing statements;
(iii) request that solely in connection with a registered offering or Rule 144A Offering of equity securities or securities convertible into equity securities, other documents and information regarding Windstream and its Subsidiaries required or reasonably requested in connection with the Company’s independent accountants participate delivery of any customary negative assurance opinion,
(iv) (x) participating in drafting sessions a reasonable number of meetings (including customary one-on-one meetings with the prospective purchasers and accounting underwriters, representatives or other agents of Uniti), presentations, road shows, due diligence sessions and cooperate sessions with prospective lenders, investors and ratings agencies that are customary for financings of a type similar to the Debt Financing, and making available members of senior management and representatives of Windstream with appropriate seniority and expertise therefor, and (y) providing customary authorization letters to the Debt Financing Sources authorizing the distribution of information to prospective lenders or investors;
(v) assisting in the preparation of any customary offering documents, private placement memoranda, lender presentations, bank information memoranda, rating agency presentations, offering memoranda, prospectuses and similar documents reasonably requested by Uniti in connection with the Financing or any Permitted Transaction;
(including as set forth in the Debt Letters as in effect on the date of this Agreementvi) or solely in connection with a customary registered offering or Rule 144A Offering of equity securities or securities convertible into equity securities, including the type described in the Commitment Letter, consistent with their causing Windstream’s auditors to deliver drafts of customary practicecomfort letters, including requesting as to customary negative assurances and change period, confirming that they provide customary consents and such auditors are prepared to issue any such comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required letter reasonably requested in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing thereforPermitted Transaction, and provide customary management letters obtaining consents of Windstream’s auditors for use of their reports in connection with any materials relating to the foregoing;
(iv) furnish to legal counsel of Parent Financing or any Permitted Transaction and to legal counsel of any Financing Party such information be named as may be reasonably requested by such counsel experts in connection with any legal opinion that such counsel may be required filings made by Uniti pursuant to deliver in connection with such Financingthe 1933 Act or the 1934 Act where any of the Windstream Audited Financial Statements or any other financial data and information are included or incorporated by reference; and
(vvii) furnish Parent reasonably cooperating with the marketing efforts of Uniti and its Debt Financing Sources or other financing sources for the Financing Parties, within five (5) Business Days following written request, such documentation and other information as or any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationsPermitted Transaction, including without limitation ensuring that any syndication efforts benefit materially from the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery existing lending and investment banking relationships of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestWindstream.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) foregoing, nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2i) unreasonably disrupt or interfere with the ongoing business or operations of Windstream and its Subsidiaries or obligate Windstream to provide, to produce or prepare financial information that is not reasonably available or prepared by Windstream in the Company or the Company Subsidiariesordinary course of business, (3ii) require conflict with or violate the Company organizational documents of any of Windstream or any of its Subsidiaries or any Applicable Law or result in the Company contravention of, or that would reasonably be expected to result in a violation or breach of, or default under, any contract to which any of Windstream or any of its Subsidiaries is a party, (iii) cause Windstream or any of its Subsidiaries to enter into breach any representation, warranty, covenant or approve agreement in this Agreement or (iv) require Windstream or any agreement of its Subsidiaries to (x) agree to pay any fees or reimburse any expenses prior to the Effective Time unless such fees and expenses are subject to the expense reimbursement provisions set forth in the penultimate sentence of this paragraph below or to incur any other documentation liabilities that are effective prior to the Closing or agree Effective Time (except to the extent such liabilities are subject to the indemnity set forth in the final sentence of this paragraph below), (y) give any change or modification of any existing agreement or other documentation indemnities that would be are effective prior to the Closing Effective Time (except to the extent such indemnities are subject to the indemnity set forth in the final sentence of this paragraph below), or (4z) require deliver any certificate or take any other action that would reasonably be expected to result in personal liability to a director, officer or other personnel (other than customary representation letters delivered to Windstream’s auditors in connection with the Companydelivery of a comfort letter or consent from such auditor), deliver any legal opinion or otherwise provide any information or take any action to the extent it could result in (A) a loss or waiver of any privilege or (B) the disclosure of any trade secrets, customer-specific data or competitively sensitive information not otherwise required to be provided under this Agreement or the violation of any confidentiality obligation; provided that Windstream shall use reasonable best efforts to provide an alternative means of disclosing or providing such information, and in the case of any confidentiality obligation, Windstream shall, to the extent permitted by such confidentiality obligations, notify Uniti if any such information that Uniti has specifically identified and requested is being withheld as a result of any such obligation of confidentiality. Uniti shall, promptly after written request by Windstream, reimburse Windstream and its Subsidiaries for all costs and expenses (including, to the extent incurred at the request or consent of Uniti, reasonable attorneys’ fees) incurred by Windstream or any of its Subsidiaries prior to the Effective Time in connection with the Financing or any Permitted Transaction, including the cooperation contemplated by this Section 7.07. Uniti shall indemnify Windstream, its Subsidiaries and their respective Representatives from, against and in respect of all losses, damages, claims, costs or expenses (including reasonable attorneys’ fees) actually suffered or incurred by any of them in connection with the Financing and any Permitted Transaction (including any offering memorandum, offering circular, registration statement, prospectus or other disclosure or offering document in connection with the Financing) to the fullest extent permitted by Applicable Law, except to the extent that any of the Company Subsidiaries foregoing arises from statements or omissions made in the Financing or any Permitted Transaction in reliance upon and in conformity with written information furnished by Windstream to Uniti used in connection therewith or the gross negligence or willful misconduct of, or material breach of their respective boards of directors (or equivalent bodies) to approve or authorize the Financingthis Agreement by, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the CompanyWindstream, its Subsidiaries, or any of their respective Representatives under any certificatepre-Closing Representatives, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingas applicable.
(c) Parent shall (i) promptly upon request by Windstream consents to the Company, reimburse the Company for all use of its fees logos in connection with the Financing and expenses (including fees and expenses of counsel and accountants) incurred by the Companyany Permitted Transaction; provided, that such logos are used solely in a manner that is not intended to, nor reasonably likely to, harm or disparage Windstream. Notwithstanding any of the Company Subsidiaries, other provision set forth herein or in any other agreement between Uniti or any of its Affiliates and Windstream or their Representatives any of its Affiliates, Uniti may, upon reasonable request and with the written consent of Windstream (such consent not to be unreasonably withheld, delayed or conditioned) share non-public or confidential information regarding Windstream and its businesses with the Debt Financing Sources, and Uniti, its Affiliates and the Debt Financing Sources may share such information with potential financing sources in connection with any cooperation contemplated by marketing efforts (including any syndication) in connection with the Financing; provided, however, that Uniti shall use its best efforts to assure confidential treatment of such information.
(d) Notwithstanding anything in this Agreement to the contrary, Windstream, New Uniti, New Windstream LLC, HoldCo and Merger Sub shall be deemed to have complied with Section 5.05 7.07(a) as it applies to any Permitted Transaction unless (i) Windstream, New Uniti, New Windstream LLC, HoldCo and Merger Sub have willfully and materially breached Section 7.07(a), (b) Uniti has notified Windstream in writing of such breach with reasonably sufficient time to cure such breach and (iic) indemnify and hold harmless Windstream, New Uniti, New Windstream LLC, HoldCo and/or Merger Sub, as applicable, has failed to cure such breach reasonably promptly following receipt of the Companynotice referred to in clause (b) above, the Company Subsidiaries and its and their Representatives against any claimand, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection witheach case, such cooperation or failure to cure is the Financing and any information used in connection therewithproximate cause of Uniti not consummating such Permitted Transaction, as applicable.
Appears in 1 contract
Sources: Merger Agreement (Uniti Group Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05The Company shall, and unless otherwise agreed by Parent, the Company will shall cause its Subsidiaries to (and shall use its reasonable best efforts to cooperate with Parent cause its and their respective Representatives to), use its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using and their respective reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents to provide all cooperation as may be reasonably requested by Parent in arranging, obtaining and syndicating any third party indebtedness for borrowed money to be raised by Parent or its Subsidiaries for the purpose of financing the aggregate Merger Consideration and any Financing Partyother amounts required to be paid in connection with the consummation of the transactions contemplated hereby and all related fees and expenses of Parent and Merger Sub (any such debt financing, the “Financing”). Without limiting the generality of the foregoing, the Company shall, and shall cause its Subsidiaries to (and shall use its reasonable best efforts to cause its and their respective Representatives to), use its and their respective reasonable best efforts to (i) upon reasonable advance notice and during normal business hours, make senior management, external auditors and advisors of the Company and its Subsidiaries available to participate in a reasonable number of meetings, presentations, road shows, drafting sessions and due diligence sessions with proposed lenders, lead arrangers and/or other agents or lenders for the Financing, and in sessions with rating agencies, (ii) provide reasonable assistance with the preparation of customary materials (to the extent relating to the Company or its Subsidiaries) for lender presentations, rating agency presentations, confidential information memoranda and similar documents customary or reasonably required in connection with the Financing, including the marketing and syndication thereof, in each casecase as may be reasonably requested by Parent, (iii) on an ongoing basis, and in any event prior to the Effective Time, furnish Parent and its Financing Sources with respect to such customary financial statements, schedules or other financial data or information reasonably requested by Parent regarding the Company and its Subsidiaries, (iv) promptly furnish Parent and its Financing Sources with such other financial, due diligence and other information relating to the Company and its Subsidiaries in connection with as reasonably requested by the Parent or its Financing Sources from time to time or which is customary marketing efforts of Parent and its Affiliates reasonably necessary for all or any portion the completion of the Financing;
, (iiv) furnish Parent and the Financing Parties with copies of such financial data with respect use reasonable best efforts to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that cause the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, to provide reasonable assistance to Parent consistent with their customary practice, including requesting (vi) furnish to such Financing Sources at least five Business Days prior to Closing all information regarding the Company and its Subsidiaries that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent is required in connection with, and in accordance with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Lettersterms of, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Patriot Act. provided, furtherto the extent requested by any Financing Source in writing at least 10 Business Days prior to Closing and (vii) provide customary authorization letters authorizing the distribution of information to prospective lenders, subject to customary terms and conditions, and containing a customary representation to the Financing Sources which are arranging or providing the portion of the Financing constituting syndicated credit facilities that nothing in this Agreement shall require such information does not contain a material misstatement or omission and containing a customary representation to such Financing Sources that the public side versions of such documents, if any, do not include material non-public information about the Company to cause the delivery of (1) legal opinions and its Subsidiaries or reliance letters its or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requesttheir securities.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly promptly, upon written request by the Company, reimburse (or cause to be reimbursed) the Company and its Subsidiaries for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees but, for the sake of clarity, excluding the costs of the Company’s preparation of its annual and expenses of counsel and accountantsquarterly financial statements) incurred by the Company, any of the Company Subsidiaries, or any of its Subsidiaries or their respective Representatives in connection with any the Financing, including the cooperation of the Company and its Subsidiaries and Representatives contemplated by this Section 5.05 5.17(a), and (ii) shall indemnify and hold harmless the Company, the Company its Subsidiaries and its their respective Representatives from and their Representatives against any claimand all losses, lossdamages, damageclaims, injuryinterest, liabilityawards, judgmentjudgments, awardpenalties, penalty, fine, Tax, cost (including cost costs or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the arrangement of the Financing and any information used in connection therewith, except with respect to (i) any information provided in writing by the Company or any of its Subsidiaries to Parent or any Financing Source for use in connection with the Financing or (ii) any fraud or willful breach by any such persons, as determined by a final, non-appealable judgment by a court of competent jurisdiction.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts efforts, and shall cause its Subsidiaries and their respective Representatives to cooperate with Parent and its Affiliates as use reasonable best efforts, to provide customary cooperation for debt financings similar to the Debt Financing, to the extent reasonably requested by Parent or Merger Sub in writing and at Merger Sub’s sole expense (other than Excluded Costs), in connection with Parent’s the arrangement or consummation of the Debt Financing (whichprovided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company or any of its Subsidiaries), solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using reasonable best efforts to:
(i) make appropriate officers reasonably availablecause management of the business of the Company, with appropriate seniority and expertise, to assist in the preparation for and participate in a reasonable number of customary investor and lender meetings (including a reasonable and limited number of one-on-one meetings and calls that are requested in advance with or by the parties acting as lead arrangers or agents for, and prospective lenders of, the Debt Financing), presentations, road shows, due diligence and drafting sessions and sessions with rating agencies and accountants, at reasonable times and with reasonable advance notice, for participation and in each case which shall be virtual unless otherwise agreed to by the Company;
(ii) to the extent required by the Debt Financing, to facilitate the pledging and the granting and perfection of security interests in collateral of the Company, effective no earlier than the Closing;
(iii) provide at least three (3) Business Days prior to the Closing Date all documentation and other information required by bank meetingsregulatory authorities under applicable “know-your-customer”, due diligence sessionsanti-money laundering rules and regulations and beneficial ownership rules and regulations, meetings including the USA PATRIOT Act and 31 C.F.R. § 1010.230, relating to the Company or any of its Subsidiaries, in each case as reasonably requested by Parent at least nine (9) Business Days prior to the Closing Date;
(iv) to the extent reasonably requested by ▇▇▇▇▇▇, provide reasonable and customary assistance to Merger Sub in obtaining corporate and facilities credit ratings with ratings agencies respect to the Debt Financing;
(v) assist in the preparation of, and road showsfacilitate the execution and delivery at the Closing of, Definitive Agreements, including schedules, guarantee and collateral documents and customary closing certificates to the extent required by the Debt Commitment Letter (including a solvency certificate in the form set forth on Annex I to Exhibit C of the Debt Commitment Letter);
(vi) facilitate in the taking of all corporate and other similar actions, subject to and contingent upon the occurrence of the Closing, reasonably necessary to permit the consummation of the Debt Financing on the Closing Date; it being understood that (A) no such corporate or other action will occur or take effect prior to the Closing and (B) any such corporate or other action will only be required of the directors, members, partners, managers or officers of the Company and its Subsidiaries who retain (or are appointed to) their respective positions as of and following the Closing;
(vii) provide reasonable and customary assistance to Parent and the Debt Financing Source in the preparation of confidential information customary offering memoranda, private placement memoranda, prospectusesbank information memoranda, syndication memoranda, ratings agency presentations, lender presentations and similar documents as may be investor presentations (including (A) if reasonably necessary and requested by Parent the Debt Financing Sources, furnishing (x) records, data or other information reasonably available and necessary to support any Financing Party, statistical information or claims relating to the Company appearing in each case, such materials and (y) customary executed certificates of the chief financial officer (or other comparable officer) of the Company with respect to historical financial information (but not, for the avoidance of doubt, pro forma financial information) included in the materials and (B) providing customary authorization and representation letters authorizing the distribution of information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent to prospective lenders or investors and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data containing representations with respect to presence of or absence of material non-public information relating to the Company and its Subsidiaries which is prepared by and the accuracy of the information relating to the Company and its Subsidiaries contained therein) and other customary marketing materials for the Debt Financing;
(viii) deliver the Required Information and such readily available other information regarding the Company as is reasonably requested by Parent or Merger Sub in connection with the ordinary course Debt Financing and solely to the extent such information is of business or the type customarily provided by a borrower in connection with similar debt financings to the Debt Financing and can be prepared by the Company without unreasonable effort or undue burden (it being understood and agreed that, notwithstanding anything to the contrary contained herein, the Company shall not be required to provide any Excluded Information);
(ix) provide reasonable and customary assistance to Parent with any cost thereof to be promptly reimbursed by Parent’s preparation of projections and pro forma financial information (including pro forma financial statements) as is reasonably requested by Parent of the type customarily included in offering documents or any Financing Party and is customarily required marketing materials for the arrangement and syndication of debt financings similar to the Financing committed pursuant Debt Financing, it being agreed that the Company will not be required to provide any information or assistance relating to (A) the proposed aggregate amount of debt financing, together with assumed interest rates, dividends (if any) and fees and expenses relating to the Debt Lettersincurrence of such debt, including such information necessary to allow Parent to prepare (B) any post-Closing or pro forma financial statements cost savings, synergies, capitalization or ownership desired to be incorporated into any information used in accordance connection with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify Debt Financing or (C) any such financial information as suitable for distribution related to “public side” lenders;Parent or any of its Subsidiaries; and
(iiix) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Debt Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the CompanySources’ due diligence, to the extent required in connection with the marketing customary and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestreasonable.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feesThe foregoing notwithstanding, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations none of the Company nor any of its Subsidiaries nor any of its or their respective Representatives shall be required to take or permit the Company Subsidiaries, taking of any action pursuant to this Section 6.16 or Section 6.18 that could (3i) require the Company or its Subsidiaries or any of its or their respective Representatives (collectively, the “Company Subsidiaries Cooperation Parties”) to pass resolutions or consents to approve or authorize the execution of the Debt Financing, any Debt Tender Offer or any Redemption or enter into into, execute or approve deliver any certificate, document, instrument or agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement certificate, document, instrument or agreement, in each case that are not conditioned on the occurrence of the Closing (other than the execution of customary authorization and representation letters in connection with the obligations set forth above, and the execution of any documents as expressly provided in Section 6.18); provided that (1) in no event shall the Company or its Subsidiaries be required to assume any expense in connection with the execution of such documents and (2) any action will only be required of the directors, members, partners, managers or officers of the Company and its Subsidiaries who retain (or are appointed to) their respective positions as of and following the Closing, (ii) cause any representation or warranty in this Agreement to be breached by any Company Cooperation Party or require any Company Cooperation Party to make a representation, warranty or certification that, in good faith determination of such Person, is not true, (iii) require any Company Cooperation Party to (A) pay any commitment or other documentation similar fee or incur any other expense, liability or obligation whatsoever other than, in the case of the Company and its Subsidiaries, (x) under customary authorization and representation letters and (y) any such fee, expense, liability or obligation that would is effective on or after the Closing or (B) require any Company Cooperation Party to enter into or approve any Debt Financing (other than, in the case of the Company and its Subsidiaries, any such approval that is conditioned on the occurrence of the Closing) or incur any obligation under any agreement, certificate, document or instrument (other than, in the case of the Company and its Subsidiaries, obligations that are effective only upon or after the Closing)or (iv) cause any director, officer, employee or stockholder or other Representative of the Company Cooperation Parties to incur any personal liability, (v) conflict with or violate the organizational documents of the Company Cooperation Parties or any applicable Laws or any applicable Order or result in the disclosure or access to any trade secrets or competitively sensitive information to third parties and/or jeopardize the protection of an attorney-client privilege, attorney work product protection or other legal privilege, (vi) conflict or be effective reasonably expected to result in a violation or breach of, or a default (with or without notice, lapse of time, or both) under, any Material Contract to which any of the Company Cooperation Parties is a party, (vii) [reserved], or (viii) provide or deliver any internal or external legal opinions by the Company Cooperation Parties (other than a Company Indenture Legal Opinion or Company Redemption Legal Opinion as expressly provided in Section 6.18), (ix) require any of the Company Cooperation Parties to consent to a pre-filing of UCC-1s or any other grant of Liens or that result in any Company Cooperation Party being responsible to any third parties for any representations or warranties prior to the Closing or (4x) require the Company, any of the Company Subsidiaries Cooperation Parties to prepare or deliver any Excluded Information. Nothing contained in this Section 6.16 or otherwise shall require the Company or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating prior to the Closing, to be an issuer or other obligor with respect to the Debt Financing shall or other financing or require any other Company Cooperation Party to be effective until an issuer or other obligor with respect to the ClosingDebt Financing or other financing or to incur any liability or expense whatsoever.
(c) Parent shall (i) promptly upon request by shall, promptly, on the Company’s written request therefor, reimburse the Company Cooperation Parties for all of its fees and expenses (including fees and expenses of counsel and accountants) costs incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives Cooperation Parties in connection with any cooperation contemplated by fulfilling their respective obligations pursuant to this Section 5.05 6.16 and Section 6.18 (iiincluding all reasonable and documented out-of-pocket costs and attorneys’ fees and expenses) or otherwise in connection with marketing or arranging of the Debt Financing or any other financing of Parent or Merger Sub, any Debt Tender Offer or any Redemption, but in any event, excluding costs relating to ordinary course financial statement preparation, any litigation initiated by the Company or its Subsidiaries or controlled Affiliates in contravention of the requirements of Section 9.14 or financial reporting requirements or other costs that would have been incurred regardless of whether the Debt Financing occurred (collectively, “Excluded Costs”) and shall indemnify and hold harmless the Company, the Company Subsidiaries Cooperation Parties from and its and their Representatives against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgment, award, penalty, fine, Tax, cost expenses (including cost of investigationattorneys’ fees and expenses), expense (including fees interest, awards, judgments and expenses of counsel and accountants) penalties suffered or settlement payment incurred as a result of, or by them in connection withwith the Debt Financing or any other financing of Parent or Merger Sub, such cooperation any Debt Tender Offer or the Financing any Redemption, any action taken by them pursuant to this Section 6.16 or Section 6.18 and any information used in connection therewiththerewith or used with the cooperation by the Company Cooperation Parties, except if such liabilities or other losses are the result of the fraud, gross negligence or willful misconduct of the Company Cooperation Parties.
(d) The parties hereto acknowledge and agree that the provisions contained in this Section 6.16 represent the sole obligations of the Company Cooperation Parties with respect to cooperation in connection with the arrangement of any financing (including the Financing) to be obtained by Parent and/or Merger Sub with respect to the transactions contemplated by this Agreement and the Commitment Letters, and no other provision of this Agreement (including the Exhibits and Schedules hereto) or the Commitment Letters shall be deemed to expand or modify such obligations. In no event shall the receipt or availability of any funds or financing (including the Financing) by Parent, Merger Sub or any of their respective Affiliates or any other financing or other transactions or the availability of, or ability to access, any cash on hand of the Company or its Subsidiaries be a condition to any of Parent’s or Merger Sub’s obligations under this Agreement.
(e) All non-public or otherwise confidential information regarding the Company Cooperation Parties obtained by Parent and its Representatives shall be kept confidential in accordance with the Confidentiality Agreements; provided that Parent shall be permitted to disclose information as is consistent with customary practices in connection with the Debt Financing. Parent and its Affiliates shall have the right to use the name and logo of the Company or any of its Subsidiaries in connection with any Financing; provided, that such name and logos shall be used solely in a manner that is not intended or reasonably likely to harm, disparage or otherwise adversely affect in any material respect the Company, any of its Subsidiaries or any of its or their respective Affiliates or Representatives.
(f) The Company shall obtain and deliver to Parent at least one (1) Business Day prior to Closing a customary payoff letter with respect to the Company Credit Agreement, executed by the applicable agents or lenders (or their duly authorized agent or representative) under the Company Credit Agreement, together with all required UCC-3 termination statements and any other customary documents required to evidence the discharge of the liens and security interests related thereto upon repayment by Parent or Merger Sub on the Closing Date of all “Obligations” (as defined in the Company Credit Agreement) in accordance with the terms of such payoff letter (in each case, with reasonable best efforts of the Company to share a draft of such payoff letter with Parent at least five (5) Business Days prior to the Closing); and
(g) Notwithstanding anything to the contrary in this Agreement, the failure of the Company to comply with this Section 6.16 shall not give rise to the failure of a condition precedent set forth in Section 7.2(b) or a right to terminate this Agreement pursuant to Section 8.1(e) unless such failure is the result of a material breach by the Company of any provision of this Section 6.16 and is the proximate cause of Parent or Merger Sub being unable to obtain the proceeds of the Debt Financing at the Closing Date.
Appears in 1 contract
Sources: Merger Agreement (Hologic Inc)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant The Company agrees to Section 8.01), subject to the limitations set forth in this Section 5.05provide such assistance, and unless otherwise agreed by Parent, the Company will use to cause its reasonable best efforts to cooperate with Parent Subsidiaries and its Affiliates and their respective Representatives to provide such assistance, with the Debt Financing as is reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts assistance shall include, but not be limited to:
, the following: (i) make appropriate officers reasonably available, with appropriate advance notice, for participation participating in bank a reasonable number of meetings, drafting sessions, rating agency presentations and due diligence sessions, meetings (ii) furnishing Parent and its lenders with ratings agencies all financial and road showsother information reasonably required by Parent’s lenders in connection with the Debt Financing, reasonable assistance including, the Required Financial Information, (iii) assisting Parent and its lenders in the preparation of (A) a customary bank information memorandum, confidential information memoranda, private placement memoranda, prospectuses, presentations memorandum and similar documents documents, including customary authorization or reliance letters, for the Debt Financing and (B) materials for rating agency presentations, (iv) cooperating with Parent to satisfy the conditions precedent to the Debt Financing to the extent within the control of the Company and reasonably requested by Parent, (v) assisting in the preparation of, and executing and delivering, definitive financing documents, including, customary closing certificates, as may be reasonably required in connection with the Debt Financing and other customary certificates and collateral security and guarantee documentation, as may be reasonably requested by Parent or any Financing PartyParent, in each case, with respect to information relating (vi) delivering to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
at least three (ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (53) Business Days following written request, such prior to the Closing Date all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, regulations (including without limitation the PATRIOT U.S.A. Patriot Act. provided, further), that nothing has been reasonably requested in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared writing by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or Financing Sources at least eight (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) 8) Business Days prior to the date Closing Date, (vii) using commercially reasonable efforts to furnish Parent and its lenders as promptly as reasonably practicable with financial, business and other information regarding the Company and its Subsidiaries as may be reasonably requested by the Parent, (viii) using commercially reasonable efforts to ensure that the Financing Sources benefit materially from existing lending and investment banking relationships of such request.
the Company and (bx) Notwithstanding anything cooperating with Parent to the contrary contained extent within the control of the Company, and taking all corporate actions, subject to the occurrence of the Closing, reasonably requested by Parent to permit the consummation of the Debt Financing; provided, that (w) the Company shall not be required to pay any fees (other than reasonable out of pocket expenses reimbursed by Parent hereunder) or incur any other liability or give any indemnity in this Agreement connection with the Debt Financing, (including x) no obligation of the Company under any agreement, certificate, document or instrument required to be delivered under this Section 5.05): 5.17(a) shall be effective until the Closing other than in respect of customary authorization or reliance letters, (iy) no Representative of the Company shall be required to take any action that could reasonably be expected to result in or cause any personal liability on the part of any Representative, and (z) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) will require the Company board of directors to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to financing, including the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Debt Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating definitive documentation related thereto prior to the Financing shall be effective until the Closing.
(c) . Parent shall (i) promptly upon request by the Company, reimburse the Company for all reasonable and documented out of its fees pocket costs and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any the Company’s cooperation contemplated by and compliance with this Section 5.05 and (ii) 5.17(a). Parent will indemnify and hold harmless the Company, the Company Subsidiaries and its Subsidiaries from and their Representatives against any claimand all losses, lossdamages, damageclaims, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and costs or expenses of counsel and accountants) actually suffered or settlement payment incurred as a result of, or by them in connection with, such cooperation or with the arrangement of the Debt Financing and any information used in connection therewith. Notwithstanding anything in this Section 5.17(a) to the contrary, the Company may refuse to provide any access, or to disclose any information, if the Company is advised in writing by its outside legal counsel that providing such access or disclosing such information would (A) violate applicable Law (including antitrust and privacy laws); provided, that, the Company shall provide such access or disclose such information to the greatest extent possible without violating applicable Law or (B) cause the loss of any attorney-client privilege; provided, that, if any information is withheld pursuant to the foregoing clause (B), the Company shall inform the Parent as to the general nature of what is being withheld and the parties shall use commercially reasonable efforts, such as entry into a customary joint defense agreement, to enable the Company to provide such information without causing the loss of any attorney-client privilege. The Company hereby consents to the use of its and its Subsidiaries’ logos in connection with the Debt Financing; provided that such logos are used solely in a manner that is not intended to nor reasonably likely to harm or disparage the Company or any of its Subsidiaries or the reputation or goodwill of the Company or any of its Subsidiaries and its or their marks.
(b) The Company shall obtain and deliver to Parent no later than two (2) Business Days prior to the Closing Date, an accurate and complete copy of a payoff letter, dated no more than five (5) Business Days prior to the Closing Date, with respect to the Company Debt and all amounts payable to the lender thereof necessary to (i) satisfy such Company Debt and all other amounts payable to the lender thereof in full as of the Closing and (ii) terminate and release any Liens related thereto.
Appears in 1 contract
Sources: Merger Agreement (GigPeak, Inc.)
Financing Cooperation. (a) From In the period between the date hereof until and the Closing (Date or the earlier termination of this Agreement pursuant Agreement, Seller will use commercially reasonable efforts to Section 8.01)provide, and cause the Company and it and their respective representatives to use their commercially reasonable efforts to provide, subject to the limitations set forth in this Section 5.056.2, and unless otherwise agreed by Parentat Buyer’s sole expense, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such Buyer such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries Buyer that is customary in connection with customary marketing efforts of Parent and its Affiliates for all any effort by Buyer to obtain debt or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required other financing in connection with the marketing transactions contemplated hereby (the “Buyer Financing”), including (i) furnishing Buyer and syndication its actual and potential financing sources with financial and other pertinent information regarding the Company and the Covered Business as required by the definitive documents governing the Buyer Financing, (ii) participation in a reasonable number of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Lettersmeetings, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange drafting sessions, due diligence presentations, ratings agency sessions and road shows in connection with the Merger or any alternative financing therefor, Buyer Financing to the extent customary and provide customary management letters in connection reasonable and not unreasonably interfering with the foregoing;
business of the Seller, (iviii) furnish to legal counsel assisting with the preparation of Parent marketing materials for rating agency presentations, offering documents, private placement memoranda, confidential and to legal counsel of any Financing Party such customary bank information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver memoranda and similar documents used in connection with such Buyer Financing, (iv) executing and delivering, as of the Closing Date, any pledge and security documents, other definitive financing documents, or other certificates or documents, in each case as applicable and to the extent reasonably requested by the Buyer; and
provided that the effectiveness thereof shall be conditioned upon, or become operative after, the occurrence of the Closing, and (v) furnish Parent as of the Closing Date, taking all corporate actions necessary to satisfy the conditions to consummation of the Buyer Financing and to permit the Financing Partiesproceeds thereof to be made available to Buyer. Notwithstanding the above, within five (5) Business Days following written requestall organizational actions shall be deemed to become effective only if and when the Closing occurs and shall be derived exclusively from the authority of, such documentation and shall only be taken by, the board of directors or other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require equivalent governing body of the Company as constituted after giving effect to cause the delivery of (1) legal opinions Closing. All non-public information or reliance letters or any certificate as other confidential information provided pursuant to solvency or any other certificate necessary for the Financing, other than as provided by this Section 5.05(a)(iii6.22(a), (2) any financial information for any period, including any audited financial information or any financial information prepared shall be kept confidential in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933Confidentiality Agreement, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period except that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, Buyer and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing Affiliates shall be effective until the Closing.
permitted to disclose such information to potential syndicate members during syndication (c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives allow such potential syndicate members to use such information in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigationsuch syndication), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, subject to customary confidentiality undertakings by such cooperation or the Financing and any information used in connection therewithpotential syndicate members.
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (Associated Banc-Corp)
Financing Cooperation. (a) From the date hereof of this Agreement until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parentaccordance with Article VIII, the Company will shall use its reasonable best efforts to, and shall use reasonable best efforts to cooperate with Parent and cause its Affiliates as and each of its and their respective Representatives to use reasonable best efforts to, provide all customary cooperation reasonably requested by Parent in connection with Parent’s arrangement satisfying any conditions to the Financing set out in Part II of Schedule 2 of the Financing (whichAgreements and syndicating the Financing, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including but not limited to using reasonable best efforts to:
to (i) make cause appropriate officers reasonably and employees of the Company to (A) be available, with appropriate on a customary basis and on reasonable advance notice, for participation to meet with prospective lenders, rating agencies and investors in bank meetings, presentations, road shows and due diligence sessions, sessions (including one-on-one meetings with ratings agencies the parties acting as lead arrangers or agents for, and road showsprospective lenders and purchaser of, the Financing and members of senior management and other Representatives of the Company) and (B) provide reasonable and timely assistance in with the preparation of confidential information memorandabusiness projections, private placement memoranda, prospectuses, rating agency presentations and similar documents materials, (ii) otherwise reasonably cooperate with the marketing efforts of Parent and the Financing Sources for any of the Financing, (iii) furnish Parent with timely financial and other pertinent information regarding the Company as may be reasonably requested by Parent or any Financing Partyto enable Parent to prepare pro forma financial statements, in each case, with respect to the extent customary and reasonably required pursuant to the Financing and to the extent reasonably available and in the possession of the Company, (iv) to the extent reasonably requested by Parent, assist Parent (including by participating in drafting sessions) in the timely preparation of offering or similar marketing documents required for the syndication of any of the Financing or any other alternative to all or any portion thereof, (v) provide customary authorization letters to the Financing Sources authorizing the distribution of information relating to the Company and its Subsidiaries in connection with to prospective lenders or investors (including customary marketing efforts of Parent 10b-5 and its Affiliates for all or any portion of the Financing;
material non-public information representations) and (iivi) furnish furnishing Parent and the Financing Parties Sources promptly, and in any event no later than three Business Days prior to Closing, with copies of such financial data with respect all customary documentation and information reasonably requested at least ten Business Days prior to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver anticipated Closing Date in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT ActAct and the CDD Rule. providedSubject to the indemnity rights set forth herein, further, that nothing in this Agreement shall require the Company consents to cause the delivery reasonable use of (1) legal opinions the Company’s logos in connection with any Financing in a manner customary for such financing transactions, provided that such logos are used solely in a manner that is not intended to or reliance letters reasonably likely to harm or disparage the Company or any certificate as to solvency of its Affiliates or the reputation or goodwill of the Company or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information of its Affiliates or any financial information prepared in accordance with Regulation S-K of their respective products, services, offerings or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestIntellectual Property Rights.
(b) Notwithstanding anything If requested by Parent in writing, the Company and its Subsidiaries shall use its reasonable best efforts to deliver customary letters, terminations and releases related to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require payoff, satisfaction, discharge and/or defeasance of any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations existing Indebtedness of the Company or the Company Subsidiaries, (3) require the Company or any its Subsidiaries set forth on Section 6.18 of the Company Subsidiaries to enter into or approve Disclosure Letter (the “Debt Payoffs”); provided that any agreement or other documentation effective prior to such action NAI-1507512591v13 described above shall not be required unless it can be conditioned on the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any occurrence of the Closing. The Company shall, and shall cause its applicable Subsidiaries or any of to, use their respective boards of directors (or equivalent bodies) reasonable best efforts to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of cause their respective Representatives under representatives to, provide cooperation reasonably requested by Parent in connection with any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the ClosingDebt Payoff.
(c) Parent shall indemnify and hold harmless the Company, its Subsidiaries and its and their respective Representatives from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by them in connection with any Financing that is the subject of this Section 6.18 (iincluding any action taken in accordance with this Section 6.18) promptly and any information utilized, or the use or misuse of any Intellectual Property Rights of the Company or any of its Subsidiaries, in connection therewith. Parent shall promptly, upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) any cost, liability or expense incurred by the Company or any of its Affiliates in connection with the Company’s cooperation pursuant to this Section 6.18. Additionally, any such cooperation shall only be provided to the extent it is not (i) does not materially impact the operations of the Company Subsidiaries, and its Subsidiaries or (ii) a disclosure of any information to Parent or its Representatives that is reasonably likely to cause a violation of any Contract to which the Company or any of its Subsidiaries is a party, is reasonably likely to cause a risk of a loss of attorney-client privilege to the Company or their Representatives any of its Subsidiaries or that is competitively sensitive information (provided that the Company shall use its reasonable best efforts to allow for such access in connection a manner that does not result in such a violation of a Contract, the loss of attorney-client privilege or sharing of competitively sensitive information with individuals that would not be permitted under applicable Law). For the avoidance of doubt, the parties acknowledge and agree that neither the obtaining of the Financing as contemplated by Section 6.17 nor the provision of any cooperation or information contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of6.18 is, or in connection withwill be, such cooperation or a condition to effect the Financing and any information used in connection therewithMerger.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant Closing, in order to Section 8.01), subject to the limitations set forth assist Parent in this Section 5.05, and unless otherwise agreed by Parentobtaining its debt financing, the Company will shall, and shall use its reasonable best efforts to cause its Subsidiaries to, use and provide reasonable best efforts to cooperate with Parent and its Affiliates Merger Sub as reasonably requested by Parent that are customary in connection with the arrangement and implementation of Parent’s arrangement debt financing, including Parent’s expectation of the Financing (which, solely for purposes a public offering of this Section 5.05, shall include any alternative equity or Parent’s debt capital markets financings contemplated by the Debt Letters)securities. Such cooperation will include using reasonable best efforts to:
by the Company shall include, at the reasonable request of Parent and Merger Sub, (i) make appropriate officers cooperation in the preparation of any offering memorandum, prospectus, bank book, ratings agency presentations or similar documents used in connection with the syndication and marketing of Parent’s debt financing; provided, that Parent is solely responsible for the content of any pro forma financial statements contained therein, (ii) furnishing Parent and its debt financing sources as promptly as reasonably availablepracticable after Parent’s request with the Required Financial Statements, with appropriate advance notice, for participation (iii) causing the Company’s senior management teams to participate in bank meetingsa reasonable number of lender presentations, due diligence sessions, meetings “road shows”, sessions with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Partymeetings with prospective lenders, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of upon reasonable advance notice, during normal business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amendedhours, and identify any such financial information as suitable for distribution at mutually agreed times, (iv) at least two (2) Business Days prior to “public side” lenders;
Closing (iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with requested from the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within Company at least five (5) Business Days following written requestprior to the anticipated Closing), such providing all documentation and other information about the Company as any Financing Party may is reasonably requested by the Parent which Parent’s debt financing sources reasonably determine is required by regulatory authorities under with respect to applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. providedAct and that is required by the debt financing sources associated with Parent’s debt financing or otherwise reasonably required or requested by the underwriters in connection with a public offering of Parent’s debt securities, further(v) solely to the extent constituting a condition to any of Parent’s debt financing sources’ obligations under the debt commitment letter (if any) associated with Parent’s debt financing, and as reasonably requested by Parent, using reasonable best efforts to facilitate the pledging of collateral and the granting of security interests in connection with Parent’s debt financing; provided that nothing no such action shall be effective until the Closing, (vi) assisting Parent in obtaining the cooperation of the independent accountants of the Company and its Subsidiaries, including with respect to the delivery of customary accountants’ consents and comfort letters (or an agreed upon procedures letter in lieu of a comfort letter) in connection with a public offering of Parent’s debt securities and (vii) assisting Parent in obtaining customary legal opinions, to the extent reasonably requested by Parent, to be delivered in connection with Parent’s debt financing or in connection with a public offering of Parent’s debt securities.
(b) Notwithstanding the foregoing or anything else in this Agreement to the contrary, in no event shall “reasonable best efforts” of the Company, its Subsidiaries or their respective officers, directors, employees, agents, attorneys, accountants and advisors be deemed to construe to require such Persons to and such Persons shall not be required to, (i) take any action to the extent it would unreasonably interfere with the business or operations of the Company or any of its Subsidiaries, (ii) pay any commitment or other similar fee in connection with Parent’s debt financing unless and until the Closing occurs, (iii) pass resolutions or consents to approve or authorize Parent’s debt financing or the execution and delivery of the definitive documentation related thereto or require the board of directors (or any similar governing body) to take any action or cause any of its representatives to waive or amend any terms of this Agreement, agree to pay any commitment, financing or other fees or reimburse any expenses or to approve the execution or delivery of any document or certificate in connection with Parent’s debt financing, (iv) deliver any financial statements or other information for any period that is not otherwise specifically required hereunder or prepare any pro forma financial statements, adjustments, or projections, (v) take any action that will conflict with or violate their formation or organizational documents or any legal requirements or result in the contravention of, or would reasonably be expected to result in a violation or breach of, or default under, any Law or material agreement (in each case prior to the Closing) (it being understood that the foregoing shall not prevent such Persons from seeking any consents reasonably requested by Parent in connection with Parent’s debt financing), (vi) take any action that could reasonably be expected to result in any officer, director, employee, agent, attorney, accountant or advisor of the Company or any of its Subsidiaries incurring personal liability (as opposed to liability in his or her capacity as an officer of such Person) with respect to any matters related to Parent’s debt financing, (vii) take any action that could reasonably be expected to cause any condition to Closing set forth in this Agreement to fail to be satisfied or otherwise cause any breach of this Agreement that would provide Parent the right to terminate this Agreement (unless, in each case, waived in advance by Parent), (viii) incur any liability (or cause its directors, officers or employees to incur any liability) under Parent’s debt financing prior to the Closing Date, (ix) cause the delivery of (1) any legal opinions or reliance opinions, any authorization letters or any certificate as to solvency by the Company or its Subsidiaries, (x) prepare a description of any portion of Parent’s debt financing (including any “description of notes”) or other information customarily prepared by Parent or its counsel or Parent’s debt financing sources or underwriters or their counsel, or (xi) prepare any “risk factors” relating to any component of the financing included in any offering memorandum, prospectus or other offering document.
(c) Parent acknowledges and agrees that none of the Company, its Subsidiaries or any other certificate necessary for of their respective directors, officers, employees, representatives and advisors (including legal, financial and accounting advisors) shall have any responsibility for, and shall not be required to incur any liability (personal or otherwise) to any Person under or in connection with, the Financingarrangement of Parent’s debt financing that Parent may raise in connection with the transactions contemplated by this Agreement, other than as provided by Section 5.05(a)(iii)and that Parent shall indemnify and hold harmless the Company, (2) any financial information for any period, including any audited financial information its Subsidiaries or any of their respective directors, officers, employees, representatives and advisors (including legal, financial and accounting advisors) from and against any and all losses, liabilities, costs or expenses suffered or incurred by them in connection with the arrangement of Parent’s debt financing, any cooperation efforts set forth herein and any information prepared utilized in connection therewith. If this Agreement is validly terminated in accordance with Regulation Sits terms for any reason, Parent shall promptly reimburse the Company for all out-K of-pocket costs or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared expenses incurred by the Company and its Subsidiaries in connection with respect to such period, other than as cooperation provided by for in this Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request6.06.
(bd) Notwithstanding anything to the contrary in this Agreement, no breach or other failure to comply with this Section 6.06 by the Company, its Subsidiaries, the Representative or their respective representatives shall be taken into account for purposes of determining the accuracy of the representation and warranty contained in Section 5.08. The Company, its Subsidiaries, the Representative and their respective representatives will be deemed to be in compliance with this Section 6.06, and Parent shall not allege that the Company, its Subsidiaries, the Representative or their respective representatives is or has not been in compliance with this Section 6.06, unless and until Parent provides written notice of the alleged failure to comply specifying in reasonable detail specific steps to cure such alleged failure in a commercially reasonable and practical manner (to the extent such breach may be so cured), which failure to comply has not been cured within five Business Days from receipt of such written notice. Notwithstanding anything to the contrary contained in this Agreement (including Agreement, the condition set forth in Section 3.01(b), as it applies to the Company’s and the Representative’s obligations under this Section 5.05): (i) nothing in this Agreement (including 6.06, shall be deemed satisfied if the Company’s and/or its Subsidiaries’ breach(es), if any, of its obligations under this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors 6.06 did not cause (or equivalent bodieswas not a material factor in causing) the failure of Parent to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, obtain its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingdebt financing.
(ce) For the avoidance of doubt and notwithstanding anything to the contrary in this Agreement, each of Parent shall (i) promptly upon request by and Merger Sub acknowledges and agrees that its obligation to consummate the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation transactions contemplated by this Section 5.05 Agreement on the terms and (ii) indemnify and hold harmless subject to the Companyconditions set forth herein are not conditioned upon the availability or consummation of any debt financing, the Company Subsidiaries and its and their Representatives against availability of any claimalternate debt financing, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost the availability of investigation), expense (including fees and expenses any equity financing or receipt of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithproceeds therefrom.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until and ending at the earlier of (i) the Closing Date and (or the earlier ii) termination of this Agreement pursuant to Section 8.01)8.1, subject to the limitations set forth in this Section 5.05Company shall, and unless otherwise agreed shall cause each of its Subsidiaries to, cooperate and cause the respective officers, employees and advisors, including legal and accounting, of the Company and each of its Subsidiaries to provide to Parent and/or Merger Sub, at Parent’s sole expense, such reasonable cooperation in connection with the arrangement of the Debt Financing as is customary and may be reasonably requested by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance upon reasonable notice, for participation participate in bank meetings, a reasonable number of meetings and presentations with prospective lenders or investors and due diligence and drafting sessions, meetings ;
(ii) assist with ratings agencies and road shows, reasonable assistance in the preparation of confidential materials for bank information memoranda, private placement memorandamemoranda or prospectuses and similar documents reasonably necessary in connection with the Debt Financing (including executing customary authorization letters); provided, prospectuseshowever, that prior to the consummation of the transaction hereunder, neither the Company nor its Subsidiaries will be required to issue any securities; provided, further, that any such memoranda or prospectuses shall contain disclosure and financial statements with respect to the Company or the Surviving Corporation reflecting the Surviving Corporation and/or its Subsidiaries as the obligor(s);
(iii) prepare and furnish to Parent or Merger Sub and the Financing Sources as promptly as practicable all Required Information and to the extent customary and not unreasonably interfering with the business of the Company, provide reasonable access as necessary for completion of an initial field exam, appraisals and audits in connection with the borrowing base for the asset based loan component of the Debt Financing;
(iv) have the Company designate members of senior management of the Company to participate in a reasonable number of presentations and similar sessions, upon reasonable advance notice, with rating agencies in connection with the Financing, including direct contact between such senior management of the Company and its Subsidiaries and the Financing Sources and other potential lenders in the Financing;
(v) assist Parent in obtaining any corporate credit and family ratings from any ratings agencies contemplated by the Debt Commitment Letters;
(vi) assist in the preparation of, and execute and deliver, definitive financing documents, including guarantee and collateral documents and customary closing certificates as may be required by the Financing (including a certificate of an appropriate officer of the Company with respect to solvency of the Company and its Subsidiaries on a consolidated basis to the extent required by the Financing Sources) and other customary documents as may be reasonably requested by Parent and that are not effective until as of or any after the Closing;
(vii) assist the Financing Party, Sources in each case, with respect to information relating to benefiting from the existing lending relationships of the Company and its Subsidiaries Subsidiaries;
(viii) request from the Company’s existing lenders such customary payoff letters and lien release and termination documentation in connection with customary marketing efforts of refinancings as reasonably requested by Parent in connection with the Financing and its Affiliates for all or any portion of the Financing;collateral arrangements; and
(iiix) furnish Parent and the Financing Parties Sources with copies of such financial data all documentation and other information required by Governmental Entities with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Debt Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation pursuant to the PATRIOT Actrequirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001); provided, furtherhowever, that nothing in this Agreement shall require the Company shall not be required to provide, or cause the delivery any of (1) legal opinions or reliance letters or any certificate as its Subsidiaries to solvency or any other certificate necessary for the Financingprovide, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X cooperation under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): 6.11(e) that: (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2u) unreasonably interfere interferes with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of its Subsidiaries; (w) causes any representation or warranty in this Agreement to be breached; (x) causes any closing condition set forth in Article VII to fail to be satisfied or otherwise causes the breach of this Agreement; (y) requires the Company or any of its Subsidiaries to take any action that would reasonably be expected to conflict with or violate its organizational documents or any Law and for which it would be subject to liability for which it is not indemnified hereunder; or (z) requires (i) the Company, any of its Subsidiaries or their respective pre-Closing directors, officers, managers, general partners or employees to execute, deliver or enter into into, or approve perform any agreement agreement, document or other documentation effective prior instrument, including any Debt Financing Document, with respect to the Debt Financing or (ii) the pre-Closing directors, managers and general partners of the Company and its Subsidiaries to adopt resolutions approving the agreements, documents and instruments pursuant to which the Debt Financing is obtained, in each case of clauses (z)(i) and (z)(ii), that is not contingent upon consummation of the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require Effective Time. The Company hereby consents to the reasonable use of the Company’s and the Subsidiaries’ logos in connection with the Debt Financing, provided that such logos are used in a manner that is not intended to or reasonably likely to harm or disparage the Company or any of the Subsidiaries or the reputation or goodwill of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Sources: Merger Agreement (Belk Inc)
Financing Cooperation. (a) From Parent shall and shall cause its Affiliates and its and their Representatives to use their respective reasonable best efforts to arrange debt financing of Parent or any of its Affiliates necessary to be obtained in connection with the date hereof until transactions contemplated hereby (the "Financing").
(b) Prior to the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentDate, the Company will shall use its reasonable best efforts to cooperate with Parent provide, and to cause its Affiliates Subsidiaries and Representatives to provide, to Parent, in each case at Parent's sole expense, such reasonable cooperation as is customary and reasonably requested by Parent in connection with Parent’s the arrangement of the Financing (whichFinancing, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using its reasonable best efforts to:
to (i) make appropriate officers reasonably available, furnish Parent and its financing sources with appropriate advance notice, for participation information regarding the Company and its Subsidiaries of a type and form customarily included in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, an offering memorandum with respect to a private placement pursuant to Rule 144A promulgated under the Securities Act for financings similar to such financing or required in a registration statement on Form S-1 by Regulation S-X and Regulation S-K under the Securities Act (including pro forma financial information, provided that it is understood that assumptions underlying the pro forma adjustments to be made are the responsibility of Parent) for registered offerings of debt securities, and information relating to the Company and its Subsidiaries customary for use in connection information documents with customary marketing efforts respect to the placement, arrangement or syndication of Parent and its Affiliates for all or any portion loans of the Financing;
type contemplated by such financing, as applicable (ii) furnish Parent and the Financing Parties with copies of such financial data including using reasonable best efforts to deliver to Parent, with respect to the Company and its Subsidiaries Subsidiaries, (A) audited consolidated balance sheets and related consolidated statements of income, shareholder's equity and cash flows for the three most recently completed fiscal years ended at least 60 days prior to the Closing Date, and (B) unaudited consolidated balance sheets and related consolidated statements of income and cash flows for each interim fiscal quarter ended since the last audited financial statements and at least 35 days prior to the Closing Date, which is financial statements shall be prepared by on a basis consistent with and shall otherwise comply with the requirements set forth with respect to financial statements of the Company in Section 3.05(b)) (information required to be delivered pursuant to this clause (i) being referred to as the ordinary course "Required Financial Information"), (ii) cause its senior management to be available for and participate in a reasonable number of business requested meetings (including customary one-on-one meetings (or can be prepared conference calls in lieu thereof) that are requested in advance with the parties acting as lead arrangers or agents for, and prospective lenders and purchasers of, such financing and the Company's senior management and representatives), presentations, road shows, due diligence sessions, drafting sessions and sessions with rating agencies and Parent's financing sources in connection with such financing, (iii) assist with the preparation of customary materials for rating agency presentations, offering documents, bank information memoranda and similar documents reasonably required in connection with such financing, (iv) request its independent auditors to provide reasonable assistance to Parent (including by providing consent to Parent to prepare and use their audit reports relating to the Company without undue burden and any necessary "comfort letters" (including "negative assurance"), in each case, on customary terms in connection with any cost such financing), (v) take all corporate actions, subject to the occurrence of the Closing Date, reasonably requested by Parent to permit the consummation of such financing and to permit the proceeds thereof to be promptly reimbursed made available to Parent at the Closing Date, (vi) cooperate reasonably with Parent's financing sources' due diligence, to the extent customary and reasonable, (vii) arrange for customary payoff letters, lien terminations and instruments of discharge to be delivered on the Closing Date providing for the payoff, discharge and termination on the Closing Date of all indebtedness contemplated by Parentthe definitive agreements in respect of such financing to be paid off, discharged and terminated on the Closing Date, (viii) provide customary materials that facilitate the perfection or enforcement of liens on the assets of the Company or any of its Subsidiaries pursuant to such agreements as is may be reasonably requested for such financing, (ix) to the extent reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Lettersits financing sources, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) its financing sources at least three Business Days following written request, such prior to the Closing Date with all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities Governmental Entities with respect to such financing under applicable “"know your customer” " and anti-money laundering rules and regulations, including without limitation (x) cooperate with the PATRIOT Act. providedmarketing efforts of Parent and its financing sources and (xi) provide requested customary authorization letters to Parent's financing sources and (xiv) at the reasonable request of Parent, furtherfile a report on Form 8-K with the SEC disclosing information identified by Parent relating to the Company and its Subsidiaries for purposes of permitting such information to be included in marketing materials or memoranda for such financing to be provided to potential investors who do not wish to receive material non-public information with respect to the Company and its Subsidiaries, that nothing in which information shall be subject to the approval of the Company, not to be unreasonably withheld, delayed or conditioned (any such filing a "Company Financing Filing").
(c) In no event shall this Agreement shall Section 6.11 require the Company or any of its Subsidiaries to cause the delivery of (1) legal opinions bear any cost or reliance letters expense, pay any fee, enter into any definitive agreement or incur any other liability prior to the Closing in connection with any debt financing of Parent or any certificate as to solvency or any other certificate necessary for of its Affiliates in connection with the Financing, other than as provided by Section 5.05(a)(iii)transactions contemplated hereby, (2) take any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation actions to the extent that it such actions would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company and its Subsidiaries, (3) require take any action that would reasonably be expected to conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time, or both) under, the certificate of incorporation and bylaws or comparable organizational documents of the Company or any of its Subsidiaries, any Applicable Law or any Contract to which the Company or any of its Subsidiaries is a party, (4) cause or facilitate the Company Board or any board of directors or equivalent bodies of any of the Company Subsidiaries to enter into approve or approve adopt any agreement Financing or other documentation effective agreements related thereto (or any alternative financing) at or prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.Effective Time or
Appears in 1 contract
Financing Cooperation. (a) Buyer shall use commercially reasonable efforts to complete, obtain and consummate an agreement with its lenders whereby certain lender parties will commit to lend an amount to Buyer for the purpose of funding the transactions contemplated by this Agreement (the “Financing”). From the date hereof until the earlier of the Closing (or Date and the earlier termination of this Agreement pursuant Agreement, the Seller Parties agree to Section 8.01), subject use their commercially reasonable efforts to the limitations set forth in this Section 5.05provide, and unless otherwise agreed by Parentcause their respective management, the Company will agents and Representatives to use its their respective commercially reasonable best efforts to cooperate promptly provide, such assistance with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or ▇▇▇▇▇, including: (i) furnishing Buyer with (x) any Financing Party and is customarily required financial information (provided, that Buyer shall be responsible for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare preparing any pro forma financial information and any projections, risk factors or other forward-looking statements in accordance with Article 11 relating to the Financing) and (y) other information regarding the Business conducted at or by the Acquired Facilities or the Purchased Assets or Assumed Liabilities as is reasonably necessary to satisfy a condition to the initial funding of Regulation S-X under the Securities Act of 1933, as amended, and identify any Financing or such other financial information as suitable for distribution customarily provided to “public side” lenders;
lenders in connection with similar financings, (ii) upon reasonable notice, procuring the participation by members of management at reasonable times in a reasonable number of meetings, conference calls and presentations with prospective lenders and investors (and in the preparation of materials in connection therewith), (iii) request that facilitating (x) the Company’s independent accountants participate granting of Encumbrances (and perfection thereof) in drafting sessions collateral and accounting due diligence sessions (y) the preparation of any definitive financing documents and cooperate with certificates, as may be necessary to satisfy a condition to the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements initial funding of the CompanyFinancing, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
furnishing no later than four (v) furnish Parent and the Financing Parties, within five (54) Business Days following written request, such prior to the Closing Date all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities any Governmental Authority or financing party under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities U.S.A. Patriot Act of 19332001 and the requirements of 31 C.F.R. § 1010.230, as amended, in any case in a form not customarily prepared to the extent reasonably requested by the Company with respect to such period, other than as provided by Section 5.05(a)(ii▇▇▇▇▇ at least nine (9) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) Business Days prior to the date Closing Date and (v) using commercially reasonable efforts to cooperate in satisfying the conditions precedent set forth in the definitive document relating to the Financing to the extent satisfaction of such request.
condition requires the cooperation of the Seller Parties; provided, that in each case in clauses (ba)(i) Notwithstanding anything to the contrary contained in this Agreement through (including this Section 5.05): v), that (iA) nothing in this Agreement (including this Section 5.05) 6.17 shall require any such cooperation to the extent that it would conflict with or violate the organizational documents of any Seller Party or applicable Law or any Contract to which any Seller Party is a party as identified to Buyer in writing, (1B) require the Company in no event shall any Seller Party (or their respective governing bodies) be required to pay any commitment adopt resolutions, consents or other feesapprovals with respect to the agreements, reimburse any expenses or otherwise incur any liabilities or give any indemnities documents and instruments pursuant to which the Financing is obtained, in each case that are effective prior to the consummation of the Financing at the Closing, (2C) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, no Seller Party (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (directors, officers, employees or equivalent bodiesAffiliates) shall be required to approve execute and deliver any financing agreements or authorize other agreements, pledge or security documents, or other certificates, legal opinions or documents in connection with the Financing, and (iiD) no actionnothing in this Section 6.17 shall obligate any Seller Party to take any actions that would unreasonably interrupt the normal course of business of any Seller Party, (E) nothing in this Section 6.17 shall obligate any Seller Party to take any action that could result in any such Person incurring any liability with respect to the matters relating to the Financing or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or cause any of their respective Representatives under directors, officers, employees or Affiliates to incur any certificate, agreement, arrangement, document or instrument relating to personal liability in connection with the Financing.
(b) If any portion of the Financing becomes unavailable on the terms and conditions reasonably acceptable to Buyer, Buyer shall be effective until promptly (and, in any event, within two (2) Business Days of obtaining knowledge thereof) notify Seller and shall use its commercially reasonable efforts to obtain alternative financing (an “Alternative Financing”) that is sufficient to enable Buyer to consummate the Closingtransactions contemplated by this Agreement as promptly as practicable following the occurrence of such event. Buyer shall promptly deliver to Seller correct copies of all commitment letters, exhibits, annexes, schedules, term sheets, and other agreements pursuant to which any such Alternative Financing shall have been committed.
(c) Parent Prior to the Closing, Buyer shall (i) promptly upon request by keep Seller reasonably informed with respect to all material developments concerning the CompanyFinancing, reimburse the Company including if for any reason ▇▇▇▇▇ believes in good faith that it is reasonably likely that it will not be able to obtain all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, or any portion of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithFinancing.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until through the Closing (Date, the Parties shall use commercially reasonable efforts to secure at the Closing one or more financing commitments in the earlier termination form of this Agreement pursuant to Section 8.01)private placement transactions with institutional investors, subject backstops against exercises of SPAC Shareholder Redemption Rights, non-redemption agreements, or any other form of equity or equity-related financing, in each case on commercially reasonable and market-based terms reasonably acceptable to the limitations set forth SPAC and the Company, acting together in this Section 5.05, and unless otherwise agreed by Parentgood faith (the “Closing Offering”). In the event that the Closing Offering is structured as a private placement transaction, the Company and SPAC shall mutually select and agree upon a proposed list of potential investors for the Closing Offering. The subscription or other agreements relating to the Closing Offering will (i) be in a form mutually acceptable to the Parties, (ii) include the Company as a third-party beneficiary thereto, and (iii) close contingent upon and immediately prior to the Closing. In furtherance of the foregoing, the Parties shall use its commercially reasonable best efforts to identify sources of financing for the Closing Offering and to mutually negotiate the underlying subscription, financing and similar agreements and reasonably cooperate with Parent and its Affiliates as reasonably requested by Parent in a timely manner in connection with Parent’s arrangement of any such efforts, including (x) by providing such information and assistance as the Financing other Parties may reasonably request, (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(iy) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies granting such access to potential investors and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents their respective representatives as may be reasonably requested by Parent or any Financing Partynecessary for their due diligence, and (z) participating in each casea reasonable number of meetings, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data presentations, road shows, drafting sessions, due diligence sessions with respect to the Company Closing Offering. All such cooperation, assistance and its Subsidiaries which is prepared by the Company in the ordinary course of access shall be granted upon reasonable prior notice and during normal business or can hours and shall be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X granted under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request conditions that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or and operations of the Company Parties and shall be subject to any limitations under applicable Law. Each Party shall promptly inform the other Party of all aspects and developments related to obtaining the Closing Offering, including the proposed terms and conditions thereof and any material decisions or actions related to the Company Subsidiaries, (3) require Closing Offering. Neither the Company or any of Holdco, on the Company Subsidiaries to enter into one hand, or approve any agreement or the SPAC, on the other documentation effective prior to the Closing hand, shall make or agree to make any change amendments, changes, modifications or modification of waivers to any existing agreement or other documentation that would be effective prior to Contracts underlying the Closing Offering without the prior written consent of the SPAC or (4) require the Company, any of the Company Subsidiaries as applicable, which consent may not be unreasonably denied, conditioned, granted or any of their respective boards of directors (withheld or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingdelayed.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Sources: Business Combination Agreement (Coliseum Acquisition Corp.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant until the Effective Time, Axle agrees to Section 8.01), subject to the limitations set forth in this Section 5.05provide, and unless otherwise agreed by Parentshall cause the Axle Subsidiaries to provide, the Company and will use its reasonable best efforts Reasonable Efforts to cooperate with Parent cause their respective representatives and its Affiliates as agents to provide, all cooperation reasonably requested by the Buyer Parent in connection with Parent’s the arrangement of the Financing (whichand any substitutions, solely for purposes of this Section 5.05replacements or refinancing thereof), shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using reasonable best efforts to:
Reasonable Efforts to (i) make cause appropriate officers reasonably and employees to be available, with appropriate advance on a customary basis and upon reasonable notice, for participation to meet with prospective lenders and investors in bank presentations, meetings, road shows and due diligence sessions, meetings (ii) assist with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memorandadisclosure documents in connection therewith, private placement memoranda, prospectuses, presentations (iii) execute and similar deliver any pledge and security documents or other definitive financing documents as may be reasonably requested by Parent or any Financing Partythe Buyer Parent, in each case, with respect (iv) cause (A) its independent accountants and counsel to information relating provide assistance to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect Buyer Parent, including providing consent to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Buyer Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under and use their audit reports and SAS 100 reviews relating to Axle and the Securities Act of 1933Axle Subsidiaries and, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that at the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements cost of the CompanyBuyer Parent, to the extent required provide any necessary "comfort letters" in connection with the marketing Financing and syndication of Financing (B) appropriate officers to sign any customary management representation letters to its independent accountants and (v) solicit and cause to be delivered such certificates, affidavits and instruments (including as set forth in the Debt Letters as in effect on the date affidavits of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letterstitle, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing thereforsurvey affidavits, estoppel certificates and provide customary management letters in connection with the foregoing;
(iv) furnish to lien waivers), legal counsel of Parent opinions and to legal counsel of any Financing Party such information documents as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish the Buyer Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may or reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions any Lender or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requesttitle insurance company.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From In connection with the date hereof until Acquisition Financing, the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05Seller shall provide, and unless otherwise agreed by Parent, the Company will shall cause its Subsidiaries to provide and shall use its reasonable best efforts to cooperate with Parent cause its Representatives (including members of senior management of the Business as provided in this Section 5.12(b)), including legal and its Affiliates as reasonably requested by Parent accounting advisors, to provide (in all cases prior to the Closing), reasonable cooperation in connection with Parent’s the arrangement of the Acquisition Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent the Purchaser and that is necessary, customary or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries advisable in connection with customary marketing the Purchaser’s efforts to obtain the Acquisition Financing (provided that such requested cooperation does not unreasonably interfere with the ongoing operations of Parent the Seller or the Business), including: (i) participation in meetings, rating agency presentations and due diligence sessions and furnishing the Purchaser and its Affiliates for all financing sources with the financial and other information regarding the Business or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which transactions contemplated by this Agreement that is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof required to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed delivered pursuant to the Debt Commitment Letters, including such furnishing as promptly as reasonably practical, the Required Information; (ii) assisting the Purchaser and its financing sources in the preparation of (A) materials for any bank financing and similar documents in connection with any of the Acquisition Financing, including customary confidential information necessary memoranda and lender and investor presentations (including assistance with the preparation of “public” versions thereof), and providing to allow Parent to prepare pro forma financial statements the financing sources customary authorization and representation letters with respect thereto, and (B) materials for rating agency presentations, and otherwise assisting the Purchaser in accordance with Article 11 procuring a public corporate credit rating and a public corporate family rating in respect of Regulation S-X the borrower under the Securities Act Debt Financing and public ratings for any of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
the Debt Financing offered in connection therewith; (iii) request that the Company’s independent accountants participate in drafting sessions and accounting facilitating customary due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
diligence; (iv) furnish using reasonable best efforts to legal counsel of Parent obtain from its auditors such accountants’ comfort letters and to legal counsel of any Financing Party such information reports as may be reasonably requested by the Purchaser and the consent of such counsel auditors to the use of their reports in any materials relating to the Acquisition Financing; (v) using reasonable best efforts to obtain such consents, legal opinions, surveys and title insurance as reasonably requested by the Purchaser or its financing sources in connection with any legal opinion that such counsel may be of the Acquisition Financing; (vi) assisting in the preparation of the definitive agreements with respect to the Debt Financing, including credit agreements, intercreditor agreements, pledge and security documents and certificates and other documents relating thereto or required to deliver be delivered thereunder, as reasonably requested by the Purchaser and, to the extent contemplated by the Debt Commitment Letters, otherwise facilitating the granting or perfection of security interests to secure the Debt Financing, including delivery of certificates representing equity interests constituting collateral, intellectual property filings with respect to intellectual property constituting collateral and mortgages with respect to owned real property constituting collateral and obtaining releases of existing Liens; and (vii) furnishing the Purchaser and its financing sources promptly, and in connection with such Financing; and
any event at least three (v) furnish Parent and the Financing Parties, within five (53) Business Days following written requestprior to the Closing Date, such with all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities any Governmental Authority with respect to any Debt Financing under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Uniting and Strengthening of America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such periodeach case, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would such documentation and information has been reasonably requested at least ten (110) require days prior to the Company Closing Date; provided that neither the Seller nor any of its Affiliates shall be required to pay any commitment or other fees, reimburse any expenses similar fee or otherwise incur any liabilities or give any indemnities other Liability in connection with the Acquisition Financing prior to the Closing, (2) unreasonably interfere Closing for which it is not reimbursed by the Purchaser. The Seller hereby consents to the use of its and its Subsidiaries’ logos in connection with the ongoing business Debt Financing; provided that such logos are used solely in a manner that is not intended to or operations of reasonably likely to harm or disparage the Company or the Company Subsidiaries, (3) require the Company Seller or any of the Company Subsidiaries to enter into or approve any agreement the reputation or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any goodwill of the Company Subsidiaries Seller or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant Subject to Section 8.016.12(b), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will shall, and shall cause each of its Subsidiaries and controlled Representatives to, use its reasonable best efforts to cooperate with provide all reasonable cooperation that is reasonably necessary and customary to assist Parent and its Affiliates as reasonably requested by Parent Merger Sub in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent, at Parent’s sole expense; provided, that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company and its Subsidiaries. Such cooperation shall include, at the reasonable request of Parent:
(i) providing to Parent or any Financing Party, in each case, with respect and the Merger Sub from time to time financial and other information relating to regarding the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any the Debt Financing Party Sources in order to consummate the Financing, including furnishing, or causing to be furnished, to Parent and is customarily required its Financing Sources the (1) audited consolidated balance sheets and related statements of income and cash flows of the Company for the arrangement fiscal years 2013, 2012 and syndication 2011, (2) unaudited consolidated balance sheets and related statements of financings similar income and cash flows of the Company for each fiscal quarter of the Company (other than the fourth (4th) fiscal quarter) ended after the close of its most recent fiscal year and at least 45 days prior to the Financing committed pursuant Closing Date; provided that in no event shall the Company be required to provide pro forma financial statements or adjustments or projections) and (3) the Debt Letters, including such information necessary to allow for Parent to prepare pro forma financial statements after giving effect to the transactions contemplated hereby required to be delivered pursuant to the Debt Commitment Letter;
(ii) using commercially reasonable efforts to secure consents of the Company’s accountants related to the financial statements described in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersSection 6.12(a)(i);
(iii) request that participating in a reasonable number of meetings, lender presentations, ratings agency meetings (and other reasonable assistance in procuring a public corporate credit rating and a public corporate family rating in respect of the Company’s independent accountants participate relevant borrower under the Debt Financing and public ratings in respect of the Debt Financing), due diligence sessions, drafting sessions and accounting due diligence sessions road shows, in each case, upon reasonable advance notice and cooperate with the Financing at mutually agreed times;
(iv) providing reasonable assistance to Parent in its preparation of customary rating agency presentations, customary bank information memoranda (including as set forth in an additional bank information memorandum that does not include material non-public information and the Debt Letters as in effect on obtaining and delivery of executed authorization letters by a senior officer of the date of this Agreement) or in connection Company with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfortrespect to such memoranda), including in respect of historical financial statements of the Company, to the extent offering memoranda and similar documents reasonably and customarily required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingFinancing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and reasonably cooperating with the Financing Parties, within five lenders under the Debt Commitment Letter in an evaluation of the Company’s assets for the purpose of establishing collateral arrangements;
(5vi) furnishing at least four (4) Business Days following written request, such prior to the Closing all documentation and other information as relating to the Company or any Financing Party may of its Subsidiaries reasonably determine is required by regulatory authorities the Debt Financing Sources and requested no later than ten (10) Business Days prior to the Closing under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. U.S.A. Patriot Act of 2001;
(vii) obtaining customary evidence of authority and customary officer’s certificates as are, in the good faith determination of the Person(s) executing such certificates, accurate, and facilitating the receipt of customary legal opinions; and
(viii) assisting in the preparation of one or more credit agreements, note purchase agreements, indentures and/or other instruments pledge and security documents and other definitive financing documents (including guarantees) or certificates or other documents, in each case as contemplated by the Debt Commitment Letter, and reasonably facilitating the taking of all corporate actions by the Company and its Subsidiaries with respect to entering into such definitive financing documents and otherwise necessary to permit consummation of the Debt Financing (including with respect to any pledge of collateral contemplated under the Debt Commitment Letter); provided, furtherthat the actions contemplated in the foregoing clauses of this Section 6.12(a) do not (A) involve any binding commitment by the Company or any of its Subsidiaries which commitment is not conditioned on the Closing and does not terminate without liability to the Company or any of its Subsidiaries upon the termination of this Agreement, that nothing in this Agreement shall (B) require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as of its Subsidiaries to solvency be the issuer of any securities or issue any offering document prior to Closing, (C) require the Company or any other certificate necessary of its Subsidiaries to provide any information the disclosure of which is prohibited or restricted under applicable Law or is legally privileged, (D) require the Company or any of its Subsidiaries to take any action that will conflict with or violate its organizational documents or any Laws or (E) require the Company or any of its Subsidiaries to enter into or approve any Financing or purchase agreement for the Financing, Financing prior to the Effective Time. All non-public or other than as confidential information provided by the Company to Parent or its Affiliates pursuant to this Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared 6.12 shall be kept confidential in accordance with Regulation S-K or Regulation S-X under the Securities Act Confidentiality Agreement. Any reasonable use of 1933the Company’s and its Subsidiaries’ logos in connection with the Financing shall not require the Company’s prior consent; provided, as amended, in any case that such logos are used solely in a form manner that is not customarily prepared by intended to or is reasonably likely to harm or disparage the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month of its Subsidiaries or fiscal period that has not yet ended the reputation or has ended less than 40 days (or, in goodwill of the case Company or any of a fiscal year, 60 days) prior to the date of such requestits Subsidiaries.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): to the contrary, (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require neither the Company nor any of its Subsidiaries shall be required to pay any commitment or other fees, reimburse similar fee or enter into any expenses definitive agreement or otherwise incur any liabilities other actual or give potential liability or obligation to any indemnities Person, or bear any cost or expense or pay any commitment or other similar fee or make any other payment or incur any other liability or provide or agree to provide any indemnity) in connection with the Financing (or any Alternative Financing that Parent and Acquisition Sub may raise in connection with the transactions contemplated by this Agreement) or any cooperation provided pursuant to Section 6.11 or this Section 6.12, in each case that is effective prior to the ClosingEffective Time, (2ii) unreasonably interfere with the ongoing business or operations no officer of the Company or the Company Subsidiaries, (3) require the Company or any of its Subsidiaries shall be required to deliver any certificate or take any other action pursuant to this Section 6.12 to the Company Subsidiaries extent any such action would reasonably be expected to enter into or approve any agreement or other documentation effective result in personal liability to such officer, (iii) prior to the Closing or agree to any change or modification Effective Time, the board of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any directors of the Company Subsidiaries shall not be required to approve any Financing or agreements related thereto (or any of their respective boards of directors Alternative Financing), (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(civ) Parent shall from time to time (i) promptly upon and on request by the Company, ) promptly reimburse the Company for all of its any reasonable and documented out-of-pocket expenses and costs (including attorney’s fees and expenses (including fees and expenses of counsel and accountantsexpenses) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by the Company’s or its Subsidiaries’ obligations under this Section 5.05 6.12 and (iiv) Parent and Acquisition Sub shall, on a joint and several basis, indemnify and hold harmless the Company, the Company Subsidiaries and its Affiliates and its and their respective Representatives from and against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgmentinterest, awardawards, penaltyjudgments, fine, Tax, cost (including cost penalties or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the Financing and any information used utilized in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the The Company will shall use its reasonable best efforts to cooperate with Parent to, and shall cause its Subsidiaries and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using and their respective Representatives to use their reasonable best efforts to:
(i) make appropriate officers reasonably available, provide all cooperation in connection with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation arrangement of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents the Debt Financing as may be reasonably requested by Parent Buyer, including using its reasonable best efforts with respect to the following:
(i) participation at reasonable times and locations in a reasonable number of meetings, due diligence sessions (including accounting due diligence sessions), drafting sessions, presentations, “road shows” and sessions with prospective financing sources, investors and ratings agencies, including direct contact between appropriate members of senior management of the Company, on the one hand, and the actual and potential Debt Financing Sources, on the other hand;
(ii) assisting with the preparation of materials for rating agency presentations, bank information memoranda (including a bank information memorandum that does not include information of the type that would constitute material non-public information of the Company or any its Subsidiaries if the Company was a publicly reporting company and the delivery of customary authorization letters with respect to the bank information memoranda executed by a senior officer of the Company authorizing the distribution of information to prospective Debt Financing PartySources or investors and containing a representation to the Debt Financing Sources that the public side versions of such documents, if any, do not include information of the type that would constitute material non-public information about the Company or its Subsidiaries or securities if the Company was a publicly reporting company and containing a customary “10b-5” representation by the Company consistent with the Debt Commitment Letter), in each case, with respect to information relating to the Company extent reasonably necessary and its Subsidiaries customarily delivered in connection with customary marketing efforts of Parent and its Affiliates for all or any portion debt financings of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) same type as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersFinancing;
(iii) request that causing the Company’s independent accountants participate in drafting sessions auditors to provide reasonable and accounting due diligence sessions customary assistance and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required cooperation in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingFinancing;
(iv) furnish to legal counsel of Parent and to legal counsel of assisting Buyer in obtaining any Financing Party such information as may be reasonably requested corporate ratings from any ratings agencies contemplated by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such the Debt Financing; and;
(v) furnish Parent and the Financing Parties, within five furnishing (5x) at least four (4) Business Days following written requestprior to the Closing, such all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities any Governmental Authority under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. provided, furtherAct of 2001, that nothing has been reasonably requested by Buyer at least ten (10) Business Days prior to the Closing and (y) at least four (4) Business Days prior to the Closing, all documentation and other information relating to beneficial ownership and other information required by the Customer Due Diligence Requirements for Financial Institutions issued by the U.S. Department of Treasury Financial Crimes Enforcement Network under the Bank Secrecy Act (such rule published May 11, 2016 and effective May 11, 2018, as amended from time to time), to the extent such documentation or other information has been reasonably requested in this Agreement shall require writing by Buyer at least ten (10) Business Days prior to the Closing, and in each case is necessary to satisfy the conditions set forth in paragraph 8 of the Conditions Exhibit to the Debt Commitment Letter, but in each case, solely as relating to the Company and its Subsidiaries to cause the delivery extent reasonably requested by Buyer in advance thereof;
(vi) executing and delivering at Closing of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financingcredit agreements, pledge and security documents, other than as provided definitive financing documents or other requested certificates or documents, including a customary solvency certificate by the chief financial officer of the Company in the form of Annex I to the Conditions Exhibit to the Debt Commitment Letter;
(vii) cooperating with, and taking actions reasonably requested by, Buyer in order to facilitate the termination and payoff of the commitments and loans under the Credit Documents at Closing upon or simultaneously with the funding of the Debt Financing (including, upon such funding, and subject to receipt of funds from the Buyer pursuant to Section 5.05(a)(iii2.7, (w) the repayment in full of all obligations then outstanding thereunder, (x) the release of all encumbrances, security interests and collateral (subject to customary exceptions), (2y) any financial information for any period, including any audited financial information the termination of all guaranties and the agreements evidencing subordination in connection therewith and (z) the termination or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act replacement of 1933, as amendedall letters of credit outstanding thereunder, in any each case in a form not customarily prepared by at the Company Closing) and facilitating the delivery to Buyer of payoff letters, lien terminations and other instruments of discharge with respect to the Credit Documents in customary form and substance from the administrative agent or other similar agents under the Credit Documents;
(viii) assisting the Debt Financing Sources in benefiting from the existing material lending and investment banking relationships of the Company and its Subsidiaries; and
(ix) facilitating the obtaining of guarantees and pledging of collateral as may be reasonably requested by Buyer, including executing and delivering any customary guarantee, pledge and security documents, currency or interest hedging arrangements or other definitive financing documents, or other customary certificates or documents as may be reasonably requested by Buyer to facilitate any guarantee, obtaining and perfection of security interests in collateral from and after the Closing (provided that any obligations contained in such period, other documents shall be effective no earlier than as of the Closing) and delivery to the Debt Financing Sources at the Closing of all certificates representing outstanding equity interests of the Company and each of its Subsidiaries.
(x) updating any Required Information provided by Section 5.05(a)(iito Buyer as may be necessary to ensure that (i) or the financial statements comprising the Required Information present fairly, in all material respects, the consolidated financial position, results of operations, income and cash flows of Ranpak Corp. and its Subsidiaries as of the dates and for the periods indicated in such financial statements in conformity with GAAP consistently applied throughout the periods presented (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (orexcept, in the case of a fiscal any interim unaudited financial statements, for the absence of footnotes and other presentation items and for normal year-end adjustments (none of which will be material)) and (ii) no independent auditor has withdrawn, 60 days) prior or has advised the Company or any of its Subsidiaries in writing that they intend to withdraw, their audit opinion with respect to any financial statements contained in the date of such requestRequired Information.
(b) Notwithstanding anything to the contrary contained foregoing, nothing in this Agreement (including this Section 5.05): 6.9(a) shall require the Company, its Subsidiaries or any of their Representatives to:
(i) nothing in waive or amend any term of this Agreement (including this Section 5.05) shall require or any such cooperation other contract to which it is a party or take any action in respect of the Debt Financing to the extent that it such action would cause any condition to Closing set forth in Article IX to fail to be satisfied by the Termination Date or otherwise result in a breach of this Agreement by the Company;
(1ii) require take any action in respect of the Company to Debt Financing that would conflict with or violate the Company’s or any if its Subsidiaries’ organizational documents or any applicable Law or result in a breach of or default under any Material Contract;
(iii) execute and deliver any letter, agreement, document or certificate in connection with the Debt Financing (except the authorization letters contemplated by clause (a)(ii) above) or adopt any resolution, grant any approval or authorization or otherwise take any action that is not contingent on, or that would be effective prior to, the occurrence of, the Closing;
(iv) pay any commitment fee or other feesfee or payment, reimburse any expenses expenses, give any indemnities or otherwise incur any liabilities Liability or give cause or permit any indemnities Lien to be placed on any of their respective assets in connection with the Debt Financing prior to the ClosingClosing (except with respect to the authorization letters contemplated by clause (a)(ii) above);
(v) take any action that, (2) in the good faith determination of the Company, would unreasonably interfere with the ongoing conduct of the business or operations of the Company or its Subsidiaries or create an unreasonable risk of harm to any property or assets of the Company or its Subsidiaries;
(vi) provide any information the disclosure of which is subject to confidentiality obligations or is legally privileged; provided that in the event the Company does not provide information in reliance on confidentiality obligations or privilege, the Company shall provide notice to the Buyer that such information is being withheld (3but solely to the extent both feasible and permitted under such confidentiality obligation, or without waiving such privilege, as applicable) require and the Company shall use commercially reasonable efforts to describe, to the extent both feasible and permitted under such confidentiality obligation, or without waiving such privilege, as applicable, the applicable information; and
(vii) provide any legal opinion or other opinion of counsel prior to the Closing Date in connection with the Debt Financing. In addition, no Representative of the Company or any of the Company its Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingrequired to deliver any certificate or take any other action that could reasonably be expected to result in personal liability to such Representative.
(c) Parent Buyer shall (i) promptly upon request by comply with Section 11.6 with respect to the Companypayment of all fees, reimburse the Company for all of its fees costs and expenses (including fees and expenses of counsel reasonable attorneys’ and accountants’ fees) incurred by the Company, Company or any of its Subsidiaries solely in connection with the cooperation of the Company Subsidiaries, any of and its or their Representatives in connection with any cooperation Subsidiaries contemplated by this Section 5.05 6.9 and (ii) shall indemnify and hold harmless the Company, the Company its Subsidiaries and its their respective representatives from and their Representatives against any claimand all losses, lossdamages, damageclaims, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost costs or expenses actually suffered or incurred by any of investigation), expense (including fees and expenses them of counsel and accountants) or settlement payment incurred as a result of, or any type solely in connection with, such cooperation or with the arrangement of any Debt Financing and any information used in connection therewith, except with respect to a material misstatement or material omission in any information prepared or provided by the Company or any of its Subsidiaries or any of their respective representatives pursuant to this Section 6.9 or to the extent such losses, damages, claims, costs or expenses arise from the material breach of this Agreement by the Seller or the Company or result from the gross negligence, bad faith or willful misconduct of Seller, the Company, any of its Subsidiaries or their respective Representatives. This Section 6.9(c) shall survive the Closing and any termination of this Agreement.
(d) All non-public information provided by the Company or any of its Subsidiaries or any of their representatives pursuant to this Section 6.9 shall be kept confidential in accordance with the Confidentiality Agreement, except that Buyer shall be permitted to disclose such information to the financing sources (including the Debt Financing Sources) and other potential sources of capital, rating agencies and prospective lenders during syndication of the Debt Financing or any permitted replacement, amended, modified or alternative financing subject to such Persons entering into customary confidentiality undertakings with respect to such information (including through a notice and undertaking in a form customarily used in confidential information memoranda for senior credit facilities).
(e) The Company hereby consents, on behalf of itself and its Subsidiaries, to the use of the Company’s and its Subsidiaries’ logos in connection with the Debt Financing and the Equity Financing; provided that such logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company or its Subsidiaries or the reputation or goodwill of the Company and its Subsidiaries.
(f) The Company shall provide to the Buyer, as promptly as reasonably practicable, the Required Information.
(g) Notwithstanding anything to the contrary in this Agreement, the condition set forth in Section 9.2(b) as it applies to the obligations of the Company under this Section 6.9 shall be deemed satisfied unless the Company has knowingly materially breached its obligations under this Section 6.9 and such breach has been the primary cause of the Debt Financing not being obtained.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will Parent shall use its reasonable best efforts to cooperate take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the Financing on the terms and conditions described in the Commitment Letter, including using reasonable best efforts to (i) maintain in effect the Commitment Letter, (ii) negotiate definitive agreements with respect thereto on terms and conditions (including the "flex" provisions) contemplated by the Commitment Letter and execute and deliver to the Company a copy thereof concurrently with such execution, (iii) satisfy on a timely basis all conditions applicable to Parent in the Commitment Letter that are within its control and comply with its obligations thereunder, (iv) provide prior to the Effective Time the lenders under the Commitment Letter with such evidence as may be requested by such lenders to demonstrate the satisfaction of the condition set forth in Paragraph 2 of Annex D to the Commitment Letter, including if necessary by requesting that Moody's Investors Services, Inc. and Standard & Poor's provide writte▇ ▇▇▇▇▇nce thereof at the Closing and (v) enforce its rights under the Commitment Letter in the event of a breach by the financing sources that impedes or delays Closing, including seeking specific performance of the parties thereunder. In the event that all conditions to the Commitment Letter have been satisfied or, upon funding will be satisfied, Parent and Merger Sub shall use their reasonable best efforts to cause the lenders and the other Persons providing such Financing to fund on the Closing Date the Financing required to consummate the Merger and the other transactions contemplated by this Agreement (including by taking enforcement action, including seeking specific performance, to cause such lenders and the other Persons providing such Financing to fund such Financing). Parent shall have the right from time to time to amend, replace, supplement or otherwise modify, or waive any of its Affiliates rights under, the Commitment Letter and/or substitute other debt or equity financing for all or any portion of the Financing from the same and/or alternative financing sources, provided that any such amendment, replacement, supplement or other modification to or waiver of any provision of the Commitment Letter that amends the Financing and/or substitution of all or any portion of the Financing shall not (A) expand upon the conditions precedent or contingencies to the Financing as set forth in the Commitment Letter or (B) prevent or impede or delay the consummation of the Merger and the other transactions contemplated by this Agreement. Parent shall be permitted to reduce the amount of Financing under the Commitment Letter in its reasonable discretion, provided, that Parent shall not reduce the Financing to an amount committed below the amount that is required, together with the financial resources of Parent and Merger Sub, including cash on hand and marketable securities, to consummate the Merger, and provided further that such reduction shall not (A) expand upon the conditions precedent or contingencies to the Financing as set forth in the Commitment Letter or (B) prevent or impede or delay the consummation of the Merger and the other transactions contemplated by this Agreement. If any portion of the Financing becomes unavailable or Parent becomes aware of any event or circumstance that makes any portion of the Financing unavailable, in each case, on the terms and conditions (including the "flex" provisions) contemplated in the Commitment Letter and such portion is reasonably required to fund the Merger Consideration, Parent shall use its reasonable best efforts to arrange and obtain alternative financing from alternative financial institutions in an amount sufficient to consummate the transactions contemplated by this Agreement upon conditions no less favorable to Parent and the Company than those in the Commitment Letter as promptly as practicable following the occurrence of such event. Parent shall give the Company prompt oral and written notice (but in any event not later than 48 hours after the occurrence) of any material breach by any party to the Commitment Letter or of any condition not likely to be satisfied, in each case, of which Parent becomes aware or any termination of the Commitment Letter. Parent shall keep the Company informed on a reasonably current basis of the status of its efforts to arrange the Financing.
(b) The Company shall provide, and shall cause its Subsidiaries, and shall use its reasonable best efforts to cause each of its and their respective Representatives, including legal, tax, regulatory and accounting, to provide all cooperation reasonably requested by Parent in connection with Parent’s arrangement of the Financing (whichprovided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company and its Subsidiaries), solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
including (i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to providing information relating to the Company and its Subsidiaries to the Financing Parties (including information to be used in the preparation of an information package regarding the business, operations, financial projections and prospects of Parent and the Company customary for such financing or reasonably necessary for the completion of the Financing by the Financing Parties) to the extent reasonably requested by Parent to assist in preparation of customary offering or information documents to be used for the completion of the Financing as contemplated by the Commitment Letter, (ii) participating in a reasonable number of meetings (including customary one-on-one meetings with the parties acting as lead arrangers for the Financing and senior management and Representatives, with appropriate seniority and expertise, of the Company), presentations, road shows, drafting sessions, due diligence sessions (including accounting due diligence sessions) and sessions with the rating agencies, (iii) assisting in the preparation of (A) any customary offering documents, bank information memoranda, prospectuses and similar documents (including historical and pro forma financial statements and information) for any of the Financing, and (B) materials for rating agency presentations, (iv) cooperating with the marketing efforts for any of the Financing (including consenting to the use of the Company's and its Subsidiaries' logos; provided that such logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company or its Subsidiaries or the reputation or goodwill of the Company or any of its Subsidiaries), (v) executing and delivering (or using reasonable best efforts to obtain from its advisors), and causing its Subsidiaries to execute and deliver (or use reasonable best efforts to obtain from its advisors), customary certificates (including a certificate of the principal financial officer of the Company or any Subsidiary with respect to solvency matters), accounting comfort letters (including consents of accountants for use of their reports in any materials relating to the Financing), legal opinions or other documents and instruments relating to guarantees and other matters ancillary to the Financing as may be reasonably requested by Parent as necessary and customary in connection with customary marketing efforts the Financing, (vi) assisting in (A) the preparation of and entering into one or more credit agreements, currency or interest hedging agreements, or other agreements or (B) the amendment of any of the Company's or its Subsidiaries' existing credit agreements, currency or interest hedging agreements, or other agreements, in each case, on terms satisfactory to Parent and its Affiliates for all that are reasonably requested by Parent in connection with the Financing provided that no obligation of the Company or any portion of its Subsidiaries under any such agreements or amendments shall be effective until the Financing;
Effective Time, (iivii) furnish as promptly as practicable, furnishing Parent and the Financing Parties with copies of such all financial data with respect to and other information regarding the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel Parent to assist in connection with any legal opinion that such counsel may preparation of customary offering or information documents to be required to deliver in connection with such Financing; and
(v) furnish Parent and used for the completion of the Financing Partiesas contemplated by the Commitment Letter, within five (5viii) Business Days following written requestusing its reasonable best efforts, such documentation as appropriate, to have its independent accountants provide their reasonable cooperation and other information as assistance, (ix) using its reasonable best efforts to permit any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” cash and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require marketable securities of the Company and its Subsidiaries to cause be made available to the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for Parent and/or Merger Sub at the Financing, other than as provided by Section 5.05(a)(iii)Closing, (2x) any financial providing authorization letters to the Financing Parties authorizing the distribution of information for any periodto prospective lenders and containing a representation to the Financing Parties that the public side versions of such documents, including any audited financial if any, do not include material non-public information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by about the Company with respect or its Affiliates or securities, (xi) using its reasonable best efforts to such periodensure that the Financing Parties benefit from the existing lending relationships of the Company and its Subsidiaries, other than as provided by Section 5.05(a)(ii(xii) or providing audited consolidated financial statements of the Company covering the three (3) fiscal years immediately preceding the Closing for which audited consolidated financial statements are currently available, unaudited financial statements (excluding footnotes) for any interim period or periods of the Company ended after the date of the most recent audited financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 statements and at least 45 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
Closing Date, (bxiii) Notwithstanding anything cooperating reasonably with Parent's financing sources' due diligence, to the contrary contained extent customary and reasonable and to the extent not unreasonably interfering with the business of the Company and (xiv) terminating and repaying in this Agreement (including this Section 5.05): full the commitments under the Credit Agreement, dated as of August 2, 2007, among the Company, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent, on or prior to the Closing Date; provided that, until the Effective Time occurs, neither the Company nor any of its Subsidiaries shall (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company be required to pay any commitment or other feessimilar fee, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, have any liability or obligation (including any obligation to pay under any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, credit agreement or any of their respective Representatives under any certificate, agreement, arrangement, related document or instrument relating any other agreement or document related to the Financing shall (or alternative financing that Parent may raise in connection with the transactions contemplated by this Agreement) or (iii) be effective until required to incur any other liability in connection with the Closing.
Financing (cor any alternative financing that Parent may raise in connection with the transactions contemplated by this Agreement) unless reimbursed or reasonably satisfactorily indemnified by Parent. Parent shall (i) promptly shall promptly, upon request by the Company, reimburse the Company for all of its fees and expenses reasonable out-of-pocket costs (including fees and expenses of counsel and accountantsreasonable attorneys' fees) incurred by the Company, any of the Company Subsidiaries, any of its Subsidiaries or their respective Representatives in connection with any the cooperation of the Company and its Subsidiaries contemplated by this Section 5.05 and 6.13, (ii) acknowledges and agrees that the Company, its Subsidiaries and their respective Representatives shall not have any responsibility for, or incur any liability to any Person under, the Financing or any alternative financing that Parent may raise in connection with the transactions contemplated by this Agreement and (iii) shall indemnify and hold harmless the Company, the Company its Subsidiaries and its their respective Representatives from and their Representatives against any claimand all losses, lossdamages, damageclaims, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost costs or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the arrangement of the Financing and any information used in connection therewith, except with respect to any information provided by the Company or any of its Subsidiaries.
(c) In the event that the Commitment Letter is amended, replaced, supplemented or otherwise modified, including as a result of obtaining alternative financing in accordance with Section 6.13(a), or if Parent substitutes other debt or equity financing for all or a portion of the Financing, each of Parent and the Company shall comply with its covenants in Section 6.13(a) and (b) with respect to the Commitment Letter as so amended, replaced, supplemented or otherwise modified and with respect to such other debt or equity financing to the same extent that Parent and the Company would have been obligated to comply with respect to the Financing.
Appears in 1 contract
Sources: Merger Agreement (Pfizer Inc)
Financing Cooperation. Prior to the Closing, the Company shall, and shall cause its Subsidiaries to, use reasonable best efforts to provide to Parent and Merger Sub, at Parent’s sole expense, all cooperation reasonably requested by Parent that is necessary in connection with obtaining the Financing, any contemporaneous reorganization of the Surviving Corporation and any other matters related to the transition of the Company (so long as such cooperation does not unreasonably interfere with the ongoing operations of the Company and its Subsidiaries), including:
(a) From furnishing Parent and Merger Sub such financial and other pertinent information regarding the date hereof until the Closing (or the earlier termination of this Agreement Company as may be reasonably requested by Parent, including by granting Parent reasonable access pursuant to Section 8.01)5.6;
(b) assisting Parent in the preparation of customary offering memoranda, subject bank information memoranda, authorization letters, confirmations and undertakings, rating agency presentations and lender presentations relating to obtaining financing in connection with the limitations Merger;
(c) using reasonable best efforts to satisfy the conditions precedent set forth in this Section 5.05, and unless otherwise agreed by Parent, any definitive documentation relating to financing in connection with the Company will use its Merger to the extent the satisfaction of such conditions requires the cooperation of or is within the control of the Company;
(d) using reasonable best efforts to cooperate with the financing sources’ due diligence investigation, to the extent customary and reasonable and not unreasonably interfering with the business of the Company;
(e) obtaining any third-party consents or waivers deemed necessary by Parent, including consents and waivers that might be required in connection with any reorganization of the Surviving Corporation’s assets or liabilities anticipated by Parent to occur contemporaneously with the Closing;
(f) using commercially reasonable efforts to obtain accountant’s comfort letters and its Affiliates as legal opinions reasonably requested by Parent and customary for such financings, including issuing any customary representations letters to Gr▇▇▇ ▇▇▇▇▇▇▇▇. Anything in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.055.16 to the contrary notwithstanding, until the Effective Time occurs, neither the Company nor any of its Subsidiaries, nor any of their respective directors or officers, as the case may be, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feessimilar fee, reimburse (ii) enter into any expenses definitive agreement or otherwise have any liability or any obligation under any certificate, document, instrument, credit agreement or any related document or any other agreement or document related to the Financing, (iii) unless promptly reimbursed by Parent, be required to incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere other expenses in connection with the ongoing business Financing or operations (iv) be required to take any action in his/her capacity as a director or officer of the Company or the Company Subsidiaries, (3) require the Company or any of the Company its Subsidiaries to enter into or approve any agreement or other documentation effective prior with respect to the Closing Financing. The amounts required to be paid or agree to any change reimbursed in this paragraph shall not be deemed a part of or modification of any existing agreement or other documentation that would be effective prior subject to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingexpense limitation provisions in Section 7.3.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its commercially reasonable best efforts to, and shall use its commercially reasonable efforts to cooperate with Parent cause its Subsidiaries and its Affiliates Representatives to, provide such reasonable cooperation as is customary and reasonably requested by Parent in connection with Parent’s arrangement the obtaining and arranging of the Debt Financing (which, solely for purposes provided that such requested cooperation does not unreasonably interfere with the ongoing operations of this Section 5.05, shall include the Company or any alternative equity or debt capital markets financings contemplated by the Debt Lettersof its Subsidiaries). Such cooperation will include using Without limiting the generality of the foregoing, such commercially reasonable best efforts toin any event shall include:
(i) make appropriate officers reasonably availableupon reasonable notice, directing employees of the Company and its Subsidiaries with appropriate advance noticeseniority and expertise to be available at reasonable times and participating in a reasonable number of meetings (including one-on-one meetings or conference calls with the Debt Financing Sources), for participation in bank meetingsdrafting sessions and presentations; provided, due diligence sessions, meetings that any such meeting or communication may be conducted virtually by videoconference or other media;
(ii) providing reasonable and customary assistance to Parent with ratings agencies and road shows, reasonable assistance in the Parent’s preparation of confidential information customary documents, memoranda, private placement memorandadiligence, prospectusesmaterials, presentations and similar customary documents reasonably necessary in connection with the Debt Financing and providing reasonably timely and customary access to diligence materials, appropriate personnel and properties during normal business hours and on reasonable advance notice to allow the Debt Financing Sources and their representatives to complete all reasonable due diligence; in each case in this clause: (A) subject to customary confidentiality provisions and disclaimers, including the Confidentiality Agreement; (B) as may be reasonably requested in writing (e-mail being sufficient) by Parent or any Financing Party, in each case, Parent; and (C) limited to information to be contained therein with respect to the Company and its Subsidiaries;
(iii) to the extent requested by Debt Financing Sources, furnishing Parent, reasonably promptly upon written request, with such historical financial, statistical and other pertinent business information relating to the Company and its Subsidiaries in connection as may be reasonably requested by Parent (which notice shall state with customary marketing efforts reasonable specificity the information requested), as is customarily required with financings of Parent the type similar to the Debt Financing and reasonably available and prepared by or for the Company and its Affiliates Subsidiaries in the ordinary course of business; provided, that, the Company shall not be responsible in any manner for all any pro forma financial information or any portion financial statements;
(iv) facilitating, effective no earlier than the Effective Time, simultaneously with, and conditioned upon, and subject to the occurrence of, the Closing, the execution and delivery of definitive financing, pledge, security and guarantee documents relating to the Debt Financing;
(iiv) furnish Parent providing documentation and the Financing Parties with copies of such financial data other information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. Act in connection with the Debt Financing, in each case as reasonably requested by Parent in writing;
(A) cooperating in connection with the repayment or defeasance of any existing indebtedness of the Company and its Subsidiaries as of the Effective Time and the release of related Liens, including delivering such payoff, defeasance, termination or similar notices under any existing financing documents of the Company and its Subsidiaries as are reasonably requested by Parent (provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of clause (B), the Company shall not be required to deliver any notices, commitments, terminations or other documents that are not conditioned on, and subject to the occurrence of, the Closing);
(vii) to the extent requested by Par▇▇▇ ▇▇ writing, obtaining from the Company’s independent auditors customary “comfort letters” and customary consents to the use of accountants’ audit reports in connection with the Debt Financing;
(viii) providing reasonable and customary assistance with respect to Parent attempting to obtain any third-party consents associated with the Debt Financing which shall not be required to be effective until as of, and subject to the occurrence of, the Closing;
(ix) reasonably cooperating with the marketing efforts of Parent and its financing sources for any Debt Financing, including providing reasonable consent to the use of the Company’s or its Subsidiaries’ logos in connection with the Debt Financing; provided, that such logos are used solely in a fiscal yearmanner that is not intended to, 60 daysnor reasonably likely to, harm or disparage the Company’s or its Subsidiaries’ reputation or goodwill;
(x) to the extent reasonably requested in writing by Parent and necessary in connection with the Debt Financing, mailing and e-mailing requests for estoppels and certificates from non-residential tenants, lenders, managers, franchisors, ground lessors, ground lessees, and counterparties to reciprocal easement agreements, declarations and similar agreements in form and substance reasonably satisfactory to such Debt Financing Source;
(xi) as may be reasonably requested by Parent, no earlier than immediately prior to the date Effective Time, and provided such actions would not adversely affect the Tax status of such requestthe Company or any of its Subsidiaries or cause the Company or any of its Subsidiaries to be subject to additional Taxes, transferring or otherwise restructuring its ownership of existing Subsidiaries of the Company, properties or other assets, in each case, pursuant to documentation reasonably satisfactory to Parent and the Company; and
(xii) to the extent reasonably requested in writing (e-mail being sufficient) by P▇▇▇▇▇ and necessary in connection with the Debt Financing, provide customary and reasonable assistance to allow Parent, the Debt Financing Sources, and each of their respective Representatives to conduct customary appraisal, survey field work and, as permitted by Section 5.2(c), environmental and engineering inspections of each Company Real Property, tractors, trailers, and other assets.
(b) Notwithstanding anything the foregoing, the Company shall not be required to the contrary contained in this Agreement (including this provide, or cause its Subsidiaries or Representatives to provide, cooperation under Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation 5.14 to the extent that it would it: (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2i) unreasonably interfere interferes with the ongoing business or operations of the Company or the Company its Subsidiaries, ; (3ii) require requires the Company or any of the Company its Subsidiaries to enter into or approve incur any agreement or other documentation effective liability (including, without limitation, any commitment fees and expense reimbursement) in connection with the Debt Financing prior to the Closing (except those fees, expenses and liabilities that are reimbursable by Parent); or (iii) requires the Company or its Subsidiaries or their respective Representatives to execute, deliver or enter into, or perform any agreement, document, certificate or instrument (or agree to any change or modification of any existing certificate, document, instrument or agreement or other documentation that would be is effective prior to the Effective Time) with respect to the Debt Financing (other than with respect to customary authorization letters with respect to the Debt Financing) or adopt resolutions approving the agreements, documents and instruments pursuant to which the Debt Financing is obtained, in each case which is not contingent upon the Closing or would be effective at or prior to the Effective Time (4) require the Company, it being understood that in no event shall any officer or director of the Company or its Subsidiaries or be required to take any of their respective boards of directors such action described in this clause (or equivalent bodiesiii) to approve or authorize unless such Person shall be continuing in such role following the FinancingEffective Time, and (ii) no action, liability or obligation (including any obligation shall only be required to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingdo so in such continuing capacity).
(c) Parent shall (i) reimburse or cause to be reimbursed the Company and its Subsidiaries promptly upon request by the Company, reimburse the Company written demand for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees reasonable and expenses documented attorneys’ and out-of-pocket accountants’ fees) (other than in respect of counsel the preparation of customary historical and accountantsordinary course financial statements already prepared by the Company or its Subsidiaries in the ordinary course of their business and/or with respect to information or materials already in the possession or control of the Company or its Subsidiaries) incurred by the Company, any of the Company Subsidiaries, any of or its or Subsidiaries and their Representatives in connection with any the cooperation contemplated by under this Section 5.05 5.14 and any action taken by them at the request of Parent pursuant to this Section 5.14 (ii) including the dissolution and termination of any subsidiaries formed and documentation entered into pursuant to this Section 5.14), and shall indemnify and hold harmless the Company, the Company Subsidiaries and its Subsidiaries, and their Representatives and each of the Company’s, its Subsidiaries’ and their Representatives’ respective present and former directors, officers, employees and agents (collectively, the “Financing Indemnified Parties” ) from and against any claimand all documented out-of-pocket costs, lossexpenses, damagelosses, injurydamages, liabilityclaims, judgmentjudgments, awardfines, penaltypenalties, fineinterest, Taxsettlements, cost (including cost awards and liabilities suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the arrangement and consummation of the Debt Financing and any information used in connection therewith, in each case, except to the extent such costs, expenses, losses, damages, claims, judgments, fines, penalties, interest, settlements, awards and liabilities are suffered or incurred as a result of bad faith, gross negligence or willful misconduct by any Financing Indemnified Party as determined by a court of competent jurisdiction in a final judgment not subject to further appeal. The provisions of this Section 5.14 are intended to be for the benefit of, and shall be enforceable by, each of the foregoing Financing Indemnified Parties. This Section 5.14 shall survive the termination of this Agreement (and in the event the Merger and the other transactions contemplated hereby are not consummated, notwithstanding anything to the contrary in this Agreement, Parent shall promptly reimburse the Company for any reasonable and documented out-of-pocket costs incurred by the Company and its Subsidiaries in connection with the cooperation under this Section 5.14, reimbursable under this Section 5.14 and not previously reimbursed and any indemnification obligations under this Section 5.14, in each case, without regard to any other limitations on liability set forth in this Agreement).
(d) If, notwithstanding the use of reasonable best efforts by Parent to satisfy its obligations under this Section 5.14, the Debt Financing or the Debt Financing Commitment Letter (or any definitive financing agreement relating thereto) expire or are terminated or become unavailable prior to the Closing, in whole or in part, for any reason, and such portion is required to satisfy the Financing Purposes, Parent shall (i) promptly notify the Company of such expiration, termination, or unavailability and the reasons therefor and (ii) subject to the third to last sentence of this Section 5.14(d), use its reasonable best efforts promptly to arrange for a firm commitment for alternative financing (“Replacement Debt Financing” ) (which, shall not, without the prior consent of the Company, (A) impose any new or additional condition or otherwise expand any condition to the receipt of the Debt Financing that makes the funding of the Debt Financing in an amount required to satisfy the Financing Purposes less likely to occur or (B) otherwise be on terms and conditions that are materially less favorable to Parent from a conditionality or enforceability perspective than the terms and conditions of the Debt Financing Commitment Letter) to replace the financing contemplated by such expired, terminated, or unavailable commitment or arrangement or any portion thereof in an amount sufficient, when added to the portion of the Debt Financing that remains available, to satisfy the Financing Purposes. Notwithstanding anything to the contrary contained in this Agreement, nothing contained in this Section 5.14 shall require, and in no event shall the reasonable best efforts of Parent be deemed or construed to require, Parent to pay any fees or any interest rates applicable to the Debt Financing in excess of those contemplated by the Debt Financing Commitment Letter (including the market flex provisions) or agree to any other term materially less favorable to Parent or the Company than such corresponding term contained in or contemplated by the Debt Financing Commitment Letter (in either case, whether to secure waiver of any conditions contained therein or otherwise). Copies of any new financing commitment letter, including any term sheet, annex and any agreements related thereto entered into in connection with any Replacement Debt Financing (including any related fee letter (with fee amount redacted to the extent required by the applicable financing source)) shall be promptly provided to the Company and in any event within forty-eight (48) hours of receipt by Parent of a final executed copy of such new financing commitment letter. In such event, (1) the term “Debt Financing” will be deemed to include any Replacement Debt Financing and (2) the term “Debt Financing Commitment Letter” will be deemed to include any commitment letters with respect to such Replacement Debt Financing.
Appears in 1 contract
Sources: Merger Agreement (Patriot Transportation Holding, Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant Subject to Section 8.016.11(a), subject prior to the limitations set forth in this Section 5.05Acceptance Time with respect to the financing of the Offer, and unless otherwise agreed by Parentthe Effective Time with respect to the financing of the Merger, the Company will shall, and shall cause its subsidiaries to, and shall use its reasonable best efforts to cooperate cause its and their respective Representatives to, in each case at Parent’s sole expense, provide to Parent and Acquisition Sub all cooperation requested by Parent that is reasonably necessary, proper or advisable in connection with the Financing (for purposes of this Section 6.12, to include the issuance of senior notes contemplated by the Debt Commitment Letters) or any permitted amended or modified or replacement financing (collectively with the Financing, the “Available Financing”) and the transactions contemplated by this Agreement (provided that such requested cooperation does not interfere unreasonably with the business or operations of the Company and its subsidiaries), including (i) participation in a reasonable number of meetings, presentations, road shows, due diligence sessions (including accounting due diligence sessions), drafting sessions and meetings with, and presentations to, prospective lenders and investors and rating agencies; (ii) assisting with the preparation of materials for rating agency presentations, offering documents, private placement memoranda, bank information memoranda, prospectuses and similar documents required in connection with the Available Financing, including execution and delivery of customary representation letters in connection therewith; (iii) as promptly as practical after Parent’s request, furnishing Parent and its Affiliates Available Financing sources with financial and other information regarding the Company and its subsidiaries as may be reasonably requested by Parent, including all financial statements, pro forma financial information, financial data, audit reports and other information of the type required by Regulation S-X and Regulation S-K under the Securities Act to be included in a registration statement on Form S-1 (or any applicable successor form) under the Securities Act for a public offering or offerings of debt securities or as otherwise contemplated by the Debt Commitment Letters and any other Available Financing, assuming that such offering(s) were consummated at the same time during the Company’s fiscal year as the offering(s) of debt securities contemplated by the Debt Commitment Letters, or as otherwise required in connection with the Available Financing and the transactions contemplated by this Agreement, or as otherwise necessary in order to receive customary “comfort” (including “negative assurance” comfort) from independent accountants in connection with the offering(s) of debt securities contemplated by the Debt Commitment Letters and any other Available Financing (all such information in this clause (iii), the “Required Information”); (iv) using reasonable best efforts to obtain accountants’ comfort letters, legal opinions, appraisals, surveys, engineering reports, title insurance and other documentation and items relating to the Available Financing as reasonably requested by Parent or Acquisition Sub and, if requested by Parent or Acquisition Sub, to cooperate with and assist Parent or Acquisition Sub in connection with Parent’s arrangement obtaining such documentation and items; (v) executing and delivering, as of the Financing (whichEffective Time, solely for purposes of this Section 5.05any pledge and security documents, shall include any alternative equity other definitive financing documents, or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably availableother certificates, with appropriate advance noticemortgages, for participation in bank meetingsdocuments and instruments relating to guarantees, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar or documents as may be reasonably requested by Parent (including a certificate of the Chief Financial Officer of the Company or any Financing Party, in each case, subsidiary with respect to information solvency matters and consents of accountants for use of their reports in any materials relating to the Company Available Financing) and its Subsidiaries in connection with customary marketing efforts otherwise facilitating the pledging of Parent collateral and its Affiliates for all or any portion providing of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared guarantees contemplated by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with Debt Commitment Letters and any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the other Available Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required cooperation in connection with the marketing pay-off of existing indebtedness and syndication the release of Financing related Liens); (including as set forth vi) taking all actions necessary to (A) permit the prospective persons involved in the Debt Letters as in effect on Available Financing to evaluate the date Company, including the Company’s current assets, cash management and accounting systems, policies and procedures relating thereto for the purposes of this Agreementestablishing collateral arrangements and (B) or as are customarily required in an underwritten offering of securities of the type described in the Debt Lettersestablish bank and other accounts, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, blocked account agreements and provide customary management letters lock box arrangements in connection with the foregoing;
; (ivvii) furnish using reasonable best efforts to legal counsel obtain waivers, consents, estoppels and approvals from other parties to material leases, encumbrances and contracts to which any subsidiary of Parent the Company is a party and to legal counsel arrange discussions among Parent, Acquisition Sub and their financing sources with other parties to material leases, encumbrances and contracts; and (viii) facilitating the consummation of any the Available Financing Party such information as may and to permit the proceeds thereof, together with the cash at the Company and its subsidiaries, to be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required made available to deliver in connection with such Financing; and
(v) furnish Parent the Company to consummate the Offer and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. Merger; provided, however, that notwithstanding the foregoing, no obligations of the Company, its subsidiaries or their Representatives under any such agreement, certificate, document or instrument shall be effective until the Effective Time; provided further, that nothing in this Agreement herein shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) interfere unreasonably interfere with the ongoing business or operations of the Company or its subsidiaries; and provided further, that neither the Company Subsidiaries, (3) require nor any of its subsidiaries shall be required to pay any commitment fee or other fee or payment to obtain consent or to incur any liability with respect to the Debt Financing prior to the Effective Time. The Company will update any such Required Information in order to ensure that such Required Information does not contain any untrue statement of material fact or omit to state any material fact necessary in order to make the statements contained therein not misleading. The Company hereby consents to the use of its and its subsidiaries’ logos in connection with the Available Financing; provided that such logos are used solely in a manner that is not intended to nor reasonably likely to harm or disparage the Company or any its subsidiaries or the reputation or goodwill of the Company Subsidiaries to enter into or approve its subsidiaries. Parent shall reimburse the Company for any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require out-of-pocket costs and expenses incurred in connection with the Company’s, any of the Company Subsidiaries its subsidiaries’ or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives Representatives’ obligations under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith6.12.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until Prior to the Closing (or the earlier termination of this Agreement pursuant to Section 8.01)in accordance with Article 7, subject the Equityholders shall cause the Acquired Companies, and the Acquired Companies shall cause each of the Subsidiaries to, at the Buyer’s sole cost and expense, provide to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as Buyer such cooperation reasonably requested (including with respect to timeliness) by Parent the Buyer in connection with Parentany existing or future financing sought by the Buyer in connection with the Buyer’s arrangement acquisition of the Financing Units (whichsuch financing, solely for purposes of this Section 5.05whether debt or equity, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters“Financing”). Such cooperation will include using reasonable best efforts to:
, including: (i) make appropriate officers reasonably availableexecuting and delivering into escrow any credit agreement, joinder, pledge and security documents, currency or interest hedging arrangements, other definitive financing documents, other certificates or documents with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in respect to the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents Financing as may be reasonably requested by Parent or the Buyer, (ii) reasonably facilitating the pledging of collateral, including using commercially reasonable efforts to cause directors, officers, employees, counsel, auditors and representatives of the Company Group to (A) participate in a reasonable number of meetings, presentations and due diligence sessions, (B) furnish the Buyer and the potential Financing Parties with customary financial information of the Company Group and any Financing Partyother customary pertinent information regarding the Company Group, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities possession of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law Equityholders or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing thereforCompany Group, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by the Buyer to consummate such counsel Financing, (C) reasonably assist the Buyer and the Financing Parties in Buyer’s preparation of business projections, pro forma financial information, bank and investor information, memoranda and other customary materials for any portion of the Financing, (D) agree to pledge, grant security interests in, and otherwise grant Liens on, the Company Group’s assets pursuant to such agreements as may be reasonably requested (including cooperation in connection with any legal opinion that such counsel may be required the payoff of existing Indebtedness of the Company Group and the release of related Liens, obtaining landlord waivers, facilitating deposit account control agreements and assisting with disclosure schedules) to deliver in connection with such facilitate the satisfaction on a timely basis of all conditions to obtaining the Financing; and
(vE) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such provide all customary documentation and other information about the Company Group as any is reasonably requested by the Buyer on behalf of the sources of Financing Party may reasonably determine is required by regulatory authorities under with respect to applicable “know your customer” and anti-money laundering rules and regulations, including without limitation and (F) provide all such other reasonable and customary assistance as necessary to satisfy the PATRIOT Act. conditions to the Financing; provided, furtherhowever, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) herein shall require any such cooperation to the extent that it would (1) require the Equityholders or any member of the Company Group to waive or amend any material terms of this Agreement or to agree to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the ClosingClosing for which it has not received prior reimbursement by or on behalf of the Buyer, (2) unreasonably interfere with the ongoing business or operations to give any indemnities or incur any Liabilities other than reimbursements and Liabilities of the Company or Group that are effective only after the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and Closing; (ii) no action, liability Liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any members of their respective Representatives the Company Group under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until after the Closing; and (iii) neither the Acquired Companies nor any of the Subsidiaries shall be required to issue any offering documents, private placement memoranda, bank information memoranda, prospectuses and similar documents required in relation to the Financing, but such documents may contain disclosure and financial statements reflecting the Acquired Companies as obligors following the Closing.
(cb) Parent The Buyer shall (i) promptly upon request by indemnify the CompanyAcquired Companies, reimburse the Company for all Sellers and each of its fees their respective Affiliates and expenses (including fees their respective directors, officers, members, partners, members and expenses employees and their heirs, successors and permitted assigns, each in their capacity as such, from, against and in respect of counsel and accountants) any Damages imposed on, sustained, incurred by the Companyor suffered by, or asserted against, any of them, whether in respect of third-party claims, direct claims or otherwise, directly or indirectly relating to, arising out of or resulting from the Company Subsidiariesarrangement of the Financing, any other financing or the provision of its or their Representatives information utilized in connection with any cooperation contemplated therewith to the fullest extent permitted by Applicable Law, and the foregoing obligations shall survive termination of this Agreement; provided, that, the Buyer shall have no indemnification obligation pursuant to this Section 5.05 and (ii5.8(c) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against for any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) Damages caused by or settlement payment incurred as a result ofof any misstatement or omission by the Acquired Companies, the Sellers or any of their respective Affiliates or their respective directors, officers, members, partners, members or employees.
(c) In no event shall the Equityholders, the Company Group or any of their Affiliates be in connection with, such cooperation breach of this Section 5.8 because of the failure by the Acquired Companies or any Subsidiary to deliver any financial or other information that is not currently readily available to the Financing and Acquired Companies or any Subsidiary on the Effective Date or is not otherwise prepared in the ordinary course of its business at the time requested by the Buyer or for failure to obtain any review of any financial or other information used in connection therewithby its accountants.
Appears in 1 contract
Sources: Securities Purchase Agreement (Hydrofarm Holdings Group, Inc.)
Financing Cooperation. Prior to the Closing, Seller shall (aand shall cause each of the MMIS Entities and each of their respective Representatives to) From use reasonable best efforts at Purchaser’s sole cost and expense, to cooperate with Purchaser in connection with the date hereof until arrangement of the Closing Debt Financing as may be customary and reasonably requested by Purchaser (or provided that such requested cooperation does not unreasonably interfere with the earlier termination ongoing operations of this Agreement pursuant to Section 8.01the Seller Group), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its including using reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of do the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts tofollowing:
(ia) make appropriate officers reasonably available, with appropriate advance notice, for participation participate at reasonable times in bank a reasonable number of meetings, drafting sessions, road shows and rating agency and due diligence sessions, meetings ;
(b) furnish Purchaser and Lenders with ratings agencies financial and road shows, reasonable assistance in other pertinent information regarding the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents MMIS Business as shall exist or as may be reasonably requested by Parent Purchaser and its financing sources, including the Required Information (provided that, for the avoidance of doubt, Seller shall not be required to provide, and Purchaser shall be solely responsible for, (i) the adjustments desired to be incorporated into the pro forma financial information, including pro forma cost savings, synergies, capitalization, ownership or other post-Closing pro forma adjustments, (ii) any description of all or any component of the Financing, including any such description to be included in any liquidity or capital resources disclosure or any “description of notes”, (iii) projections, risk factors or other forward-looking statements relating to all or any component of the Financing, (iv) subsidiary financial statements or any other information of the type required by Rule 3-09, Rule 3-10 or Rule 3-16 of Regulation S-X (provided, however, that certain customary guarantor/non-guarantor metrics as it relates to non-guarantors in the aggregate shall be provided) or (v) Compensation Disclosure and Analysis required by Item 402(b) of Regulation S-K);
(c) assist Purchaser and its Lenders in the preparation of (i) customary offering documents, private placement memoranda, confirmations and undertakings in connection with such marketing material, bank information memoranda, prospectuses and similar documents for any portion of the Debt Financing Partyand (ii) customary materials for rating agency presentations (provided that the scope and nature of financial information to be provided by Seller is addressed exclusively in the foregoing clause (b)), and, in each case, with respect to information relating to the Company execute customary authorization and its Subsidiaries management representation letters in connection therewith; provided that such letters and confirmations provide that (x) Seller, the MMIS Entities and each of their respective Representatives and Affiliates shall not have any Liability of any kind or nature resulting from the use of information contained in any marketing material and (y) the recipient of such letters of authorizations agrees that it shall be entitled to rely only on the representations and warranties contained in Debt Documents;
(d) cooperate with customary the marketing efforts of Parent Purchaser and its Affiliates Lenders for all or any portion of the FinancingDebt Financing as reasonably requested by Purchaser;
(iie) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information promptly, and in any event no later than four Business Days prior to the Closing Date, reasonably requested by Purchaser to evidence compliance with Laws including (i) as any Financing Party may reasonably determine is be required by bank regulatory authorities under applicable “know your beneficial ownership”, “know-your-customer” and anti-money laundering rules and regulationsregulations and (ii) OFAC, including without limitation FCPA and the PATRIOT Investment Company Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such periodeach case, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would such documentation and information has been reasonably requested by Purchaser in writing at least 10 Business Days prior to the Closing Date; and
(1f) require assist with Purchaser’s preparation of the Company to pay definitive financing documentation, including (i) preparation of, effective only upon the Closing, any commitment credit agreements, guarantees, pledge and security documents, other definitive financing documents or other feescertificates (including a customary solvency certificate from the CFO (or its equivalent) of the MMIS Business in the form set forth as Exhibit A to Annex III to the Debt Commitment Letter as in effect as of the date hereof) or documents (including, reimburse in each case, any expenses schedules and exhibits thereto), contemplated by the Debt Financing, or otherwise any other agreements, documents or certificates that facilitate the creation, perfection or enforcement, in each case, as of the Closing, of Liens securing such Debt Financing, and (ii) use reasonable best efforts to obtain such consents, acknowledgements, authorizations, approvals and instruments reasonably requested by the Purchaser to permit the consummation of the Debt Financing, including releases, terminations, waivers, consents, estoppels and approvals as may be reasonably required in connection therewith (including releases and terminations with respect to any applicable guarantees or applicable Liens (other than Permitted Liens)); provided, in each case, that (A) Seller shall not be required to incur any liabilities Liability in connection with the Financing or give required to take any indemnities action that Seller reasonably believes would result in a violation of any material agreement or any confidentiality arrangement or the loss of any legal or other applicable privilege, (B) the pre-Closing directors and managers of the MMIS Entities shall not be required to adopt resolutions approving the agreements, documents and instruments pursuant to which the Financing is obtained that become effective prior to the Closing, (2C) unreasonably interfere with the ongoing business or operations of MMIS Entities shall not be required to execute prior to the Company or the Company Subsidiaries, (3) require the Company or Closing any of the Company Subsidiaries to enter into or approve any agreement or other documentation definitive financing documents that become effective prior to the Closing, including any credit or other agreements, pledge or security documents, or other certificates, legal opinions or documents in connection with the Financing or otherwise take any action that would reasonably be expected to (x) conflict with, or result in any violation or breach of, or default (with or without notice or lapse of time, or both) under, any Governing Documents of the MMIS Entities, any applicable Laws or any Contract, (y) cause any condition to Closing set forth in this Agreement to fail to be satisfied or agree otherwise cause any breach of this Agreement that would provide Purchaser the right to terminate this Agreement or seek indemnity under the terms hereof, or (z) result in any employee, officer or director of such Person incurring any personal liability (as opposed to liability in his or her capacity as an officer of such Person) with respect to any change or modification matters related to the Debt Financing, (D) the MMIS Entities shall not be required to take any corporate actions to permit the consummation of the Financing that would take effect prior to Closing, (E) in no event shall Seller be in breach of this Agreement because of the failure of any existing agreement financial or other documentation information to be delivered that would be effective prior is not currently readily available to Seller on the Closing date hereof or (4) require is not otherwise prepared in the Company, any Ordinary Course of the Company Subsidiaries or any Business of their respective boards of directors (or equivalent bodies) to approve or authorize the FinancingSeller, and (iiF) no action, liability or obligation (including neither Seller nor any obligation to pay any commitment or other fees or reimburse any expenses) member of the CompanySeller Group shall be responsible for any adjustments to any pro forma financial information required to be provided in accordance with the Debt Commitment Letter. Seller shall not have any Liability to Purchaser in respect of any pro forma financial statements, its Subsidiaries, other pro forma financial information or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating data derived by the Purchaser. Notwithstanding anything to the Financing contrary in this Agreement, the condition set forth in Section 9.02(a)(iii), as it applies to Seller’s obligations under this Section 5.16, shall be effective until deemed satisfied unless Seller has knowingly and willfully materially breached its obligations under this Section 5.16 and such breach has been the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any primary cause of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 Debt Financing not being obtained. Purchaser acknowledges and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or agrees that obtaining the Financing is not a condition to Closing. For the avoidance of doubt, if the Financing has not been obtained, Purchaser shall continue to be obligated, until such time as the Agreement is terminated in accordance with its terms and any information used subject to the waiver or fulfillment of the conditions set forth in connection therewith.Article XI, to complete the
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section ýSection 8.01), subject to the limitations set forth in this Section 5.05ýSection 6.17, and unless otherwise agreed by Parent, the Company will shall use its reasonable best efforts to cooperate with Parent and to cause its Affiliates as Representatives to, and shall cause each of its Subsidiaries to use their respective reasonable best efforts to and to cause their respective Representatives to, provide all cooperation reasonably requested by Parent, or as Parent may reasonably determine necessary or advisable, in connection with Parent’s 's arrangement and closing of the Financing (whichand the satisfaction of the conditions in the Commitment Letter, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using reasonable best efforts to:
(i1) furnish Parent and the Financing Parties with the Required Information;
(2) to the extent reasonably requested by Parent or any Financing Party, make senior officers and other key employees of the Company and its Subsidiaries with appropriate officers reasonably availableauthority and expertise available for, with appropriate reasonable advance noticenotice and at times and locations reasonably acceptable to the Company, for participation Parent and any applicable Financing Party, and participate in bank (including preparation for) a reasonable number of meetings, due diligence sessions, meetings drafting sessions, presentations, and sessions with prospective lenders, investors and ratings agencies and road showsagencies, including by providing reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations memoranda and similar customary documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing; provided, however, that any participation in the foregoing by senior officers and other key employees of the Company which may require travel by such persons shall be subject to the Company's prior approval (such approval not to be unreasonably withheld, conditioned or delayed);
(ii3) as promptly as practicable after the date hereof, furnish Parent and the Financing Parties with copies of such financial data and other pertinent information and disclosures with respect to the Company and its Subsidiaries which is prepared by the Company in Subsidiaries (including their businesses, operations, and financial projections), including the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) Required Information, as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of debt financings similar to the Financing committed pursuant to the Debt LettersCommitment Letter in each case, including such information necessary subject to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under any confidentiality restrictions binding on the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersCompany or the Company Subsidiaries;
(iii4) request that to the Company’s independent accountants participate extent reasonably requested by Parent or any Financing Party, assist with the preparation of appropriate and customary materials relating to the Company and its Subsidiaries for rating agency presentations, offering documents, bank information memoranda and similar documents reasonably required in connection with the Financing, in each case, with respect to information relating to the Company and the Company Subsidiaries;
(5) (a) direct ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ LLP and KPMG LLP, as applicable, to provide assistance and cooperation to Parent and the Financing Parties on reasonable and customary terms and consistent with such relevant accountants' customary practice, including by (x) participating in a reasonable number of drafting sessions and accounting due diligence sessions and cooperate with the Financing sessions, (including as set forth in the Debt Letters as in effect y) providing customary consents to use their audit reports on the date consolidated financial statements of this Agreement) the Company as required in any offering documents or in connection with a filings made with the SEC related to the Financing in which the consolidated financial statements of the Company are included, and (z) subject to such accountants' policies and procedures and applicable auditing standards, providing any customary comfort letters (including "negative assurance" comfort) with respect to historical information of the Company and the Company Subsidiaries included in any offering documents related to the Financing in which the consolidated financial statements of securitiesthe Company are included and (b) to the extent requested by such accountants, including provide appropriate representations to such accountants in connection with the type described in foregoing clause (a);
(6) to the Commitment Letterextent reasonably requested by Parent, direct ▇▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ & Company, Inc. to provide assistance and cooperation to Parent and the Financing Sources on reasonable and customary terms and consistent with their such relevant reserve engineer’s customary practice, including requesting that they provide by (x) participating in a reasonable number of reserve engineer due diligence sessions, (y) providing customary consents and comfort letters (including “negative assurance” comfort), including in respect to the use of historical financial statements of their report on the Company, to the extent ’s reserves as required in any offering documents or in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection filings made with the Merger SEC related to the Financing in which such reserve engineer is referenced or reserve information based on such reserve engineer’s report is included and (z) providing any alternative financing therefor, and provide customary management reserve engineer letters in connection with any offering document relating to the foregoingFinancing in which such reserve engineer is referenced or reserve information based on such reserve engineer’s report is included;
(iv7) furnish to legal counsel the extent reasonably requested by Parent, deliver information with respect to the Company and its Subsidiaries as is reasonably necessary for Parent to prepare, and reasonably cooperate with Parent in the preparation of, a pro forma consolidated balance sheet of Parent and the Parent subsidiaries (including the Company and the Company Subsidiaries) as of the end of the most recently completed fiscal year or fiscal quarter for which financial statements are included in the Required Information and a related pro forma consolidated statement of income of Parent and its subsidiaries (including the Company and the Company Subsidiaries) for the 12-month -88- period ending on the last day of the most recently completed four-fiscal quarter period ended at least 40 days (or 60 days in case such four fiscal quarter period is the end of the Company's fiscal year) prior to legal counsel the end of the Marketing Period (it being understood that Parent shall be responsible for the preparation of such pro forma financial statements, including any pro forma adjustments related to the Financing or otherwise or any actions to be taken on or after the Closing Date and such cooperation by the Company and the Company Subsidiaries shall relate solely to the financial information derived from the historical books and records of the Company and the Company Subsidiaries);
(8) promptly, and in any event five Business Days prior to Closing, provide all information reasonably requested by Parent or the Financing Parties regarding the Company and the Company Subsidiaries under applicable "know your customer", anti-money laundering rules and regulations and the USA PATRIOT Act of 2001, in each case, requested in writing at least ten days prior to the Closing Date;
(9) to the extent reasonably requested by Parent or any Financing Party, provide reasonable and customary authorization letters to the Financing Parties authorizing the distribution of information relating to the Company and the Company Subsidiaries to prospective lenders subject to customary confidentiality provisions;
(10) in respect of assets of (including equity interests held by) the Company or any Company Subsidiary, assist with the preparation of any Financing Party such information pledge and security documents or other definitive financing documents as may be reasonably requested by Parent; provided, that no obligation of the Company or any Company Subsidiary under any such counsel document or agreement shall be effective until the Closing;
(11) deliver (x) customary payoff letters with respect to the Indebtedness under the Company Credit Agreements setting forth (i) the amounts required to repay such Indebtedness (other than contingent indemnification obligations and any letters or credit or ▇▇▇▇▇▇ that will remain outstanding pursuant to arrangements satisfactory to the letter of credit issuing bank or hedge counterparty, as the case may be) in full on the Closing Date, (ii) the wire transfer instructions for the repayment of such Indebtedness, and (iii) authorization to file all releases necessary to evidence such repayment in full of such Indebtedness and to enable release of all Liens relating thereto, effective upon repayment of such Indebtedness (and confirmation of such receipt) and (y) Lien terminations, releases, UCC termination statements, and other instruments of discharge of Liens requested by the Parent in order to allow for the release of all Liens against the Company or any of its Subsidiaries relating to the Indebtedness under the Company Credit Agreements;
(12) to the extent reasonably requested by Parent, cooperate with Parent to satisfy the conditions precedent to the Financing to the extent within the control of the Company and the Company Subsidiaries, including assisting Parent in procuring public ratings for the Financing or notes to be offered in connection with the Financing and, to the extent reasonably practicable, preparing any legal opinion “flash” numbers (which may include ranges of management estimates of certain key metrics) with respect to any Financing that such counsel may be required to deliver in connection with such Financingoccurs after February 1, 2019; and
(v13) furnish assist Parent and with the Financing Parties, within five (5) Business Days following written request, such documentation establishment of bank and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” accounts and anti-money laundering rules blocked account and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require control agreements of the Company to cause and one or more of its Subsidiaries in connection with the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amendedforegoing, in any each case in a form not customarily prepared by to the Company with respect to extent customary and reasonable and provided that no such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) control agreements shall be effective until Closing and no such new account shall be established prior to Closing, and use commercially reasonable efforts to deliver any borrowing base certificates requested by Parent a reasonable time prior to Closing pursuant to the date of such requestCommitment Letter.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): ýSection 6.17):
(i) nothing in this Agreement (including this Section 5.05ýSection 6.17) shall require any such cooperation to the extent that it would would: (1A) require the Company or any Company Subsidiary to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, ; (2B) unreasonably interfere with the ongoing business or operations of the Company or any Company Subsidiary (it being acknowledged that none of the Company Subsidiaries, cooperation specified in Sections 6.17(a)(1) through (313) above would so interfere); (C) require the Company or any of the Company Subsidiaries Subsidiary to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or except the customary authorization letters referenced in Section 6.17(a)(9) above; (4D) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing; (E) require any action that would conflict with or violate the Organizational Documents of the Company or any Company Subsidiary, the Company Credit Agreement or any Laws, orders or the contracts governing the existing Indebtedness of the Company or any Company Subsidiary or result in the contravention of, or that would reasonably be expected to result in a violation or breach of, or default under, any contract to which the Company or any Company Subsidiary is a party; (F) cause any representation or warranty or covenant in this Agreement to be breached by the Company or any of its Subsidiaries; (G) cause any director, officer, employee or stockholder of the Company or any of its Subsidiaries to incur any personal liability; (H) provide access to or disclose information that would jeopardize any attorney-client privilege of the Company or any of its Subsidiaries; (I) require the Company or any Company Subsidiary to prepare separate financials for any Company Subsidiary, change any fiscal period, or prepare any financial statements or information with respect to a fiscal period that has not yet ended or has ended less than forty days prior to the date of such request (or, in the case of annual financial statements, sixty days prior to such request) or prepare any financial or other information with respect to the Company and the Company Subsidiaries unless it is derivable from the historical books and records of the Company and the Company Subsidiaries or prepared in the ordinary course of the Company’s financial reporting practice, or to provide any Excluded Information; (iiJ) require the Company or any Company Subsidiary to deliver any legal opinions or reliance letters; or (K) require the Company or any Company Subsidiary to make any filings with the SEC in connection with the Financing (other than in any applicable proxy statement), except for any information included in documents with respect to such Financing, after consultation between Parent and the Company, which may be required to be furnished by the Company on Form 8-K to satisfy the Company's Regulation FD disclosure obligations; and
(1) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing (other than with respect to customary authorization letters referenced in Section 6.17(a)(9) above) shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its reasonable and documented out-of-pocket fees and expenses (including reasonable and documented out-of-pocket fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives representatives in connection with any cooperation contemplated by this Section 5.05 ýýSection 6.17 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives representatives against any claimClaim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith, and such representatives shall be third-party beneficiaries of this ýýSection 6.17, except to the extent suffered or incurred as a result of (x) the bad faith or willful misconduct of the Company or any Company Subsidiary (to the extent determined by a final, non-appealable judgment of a court of competent jurisdiction) or (y) the historical information relating to the Company or any of its Affiliates furnished by the Company or its Affiliates or Representatives of the foregoing Persons. All non-public or other confidential information provided by the Company and its Affiliates and representatives pursuant to this ýýSection 6.17 shall be kept confidential in accordance with ýSection 6.02, except that Parent shall be permitted to disclose such information to the applicable Financing Parties, rating agencies and prospective lenders during syndication of the Financing subject to the Financing Parties, rating agencies and prospective lenders agreeing to customary confidentiality obligations (which may include customary "click through" language) with respect to such information. The Company and its Subsidiaries hereby consent to the use of their logos, names, and marks in connection with the Financing; provided that such names, marks, and logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company, any of the Company Subsidiaries or the reputation or goodwill of the Company or any of the Company Subsidiaries.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing earlier of (or x) the earlier termination of this Agreement pursuant in accordance with its terms and (y) Closing, in order to Section 8.01), subject to the limitations set forth assist Parent and Merger Sub in this Section 5.05, and unless otherwise agreed by Parentobtaining its New Debt Financing, the Company will shall, and shall cause its Subsidiaries to, use its reasonable best efforts efforts, at Parent’s sole expense, to cooperate with Parent and its Affiliates Merger Sub as reasonably requested by Parent in a manner that is customary in connection with the arrangement and implementation of the New Debt Financing, which is expected to be a public or institutional offering of Parent’s arrangement debt securities. Such reasonable best efforts by the Company to provide such cooperation shall include, at the reasonable request of Parent, (i) reasonable best efforts to provide cooperation in the preparation of any offering documents, offering memoranda, prospectuses, bank books, lender and investor presentations, ratings agency presentations and similar documents used in connection with the syndication and/or marketing of the New Debt Financing (whichincluding any authorization letter), provided that Parent is solely responsible for purposes the content of this Section 5.05any pro forma financial statements, shall include synergies, projections or adjustments contained therein, in each case other than any alternative equity such content that consists of, or is derived from, historical financial information of the Company, (ii) furnishing Parent and its debt capital markets financings contemplated financing sources, promptly after Parent’s request, with the Required Financial Statements and consenting to the inclusion or incorporation by reference in any SEC filing and/or offering materials related to the New Debt Letters). Such cooperation will include Financing of the Required Financial Statements, (iii) using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation to participate in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, provide reasonable assistance in connection with the preparation due diligence of the Debt Financing Sources for the New Debt Financing; provided, however (A) that in the case of any non-public or otherwise confidential information memorandaregarding the Company or any of its Subsidiaries provided to Parent in connection with this clause (iii), private placement Parent provides the Company with a draft of any disclosure that is based on or references such information included in any offering documents, offering memoranda, prospectuses, bank books, lender and investor presentations, ratings agency presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries used in connection with customary marketing efforts the offering of Parent’s debt securities reasonably in advance of distribution thereof, (B) confidential information regarding the Company or any of its Subsidiaries of the type included in such draft offering documents, offering memoranda, prospectuses, bank books, lender and investor presentations, ratings agency presentations or similar documents is customarily disclosed or otherwise required to be disclosed in offering documents, offering memoranda, prospectuses, bank books, lender and investor presentations, ratings agency presentations or similar documents for public offerings of debt securities or offerings of debt securities pursuant to Rule 144A of a type similar to that being arranged by Parent and (B) to the extent the Company determines that it is necessary or desirable for Company (or its Affiliates for all or any portion Subsidiaries) to file a Current Report on Form 8-K pursuant to the Securities Exchange Act of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data 1934, as amended, that contains material non-public information with respect to the Company and its Subsidiaries which is prepared contained in any such offering documents, offering memoranda, prospectuses, bank books, lender and investor presentations, ratings agency presentations or similar documents, Parent shall give Company (or its Subsidiary (including following the consummation of the Transactions)) a reasonable opportunity to file such Current Report on Form 8-K before Parent distributes such offering documents, offering memoranda, prospectuses, bank books, lender and investor presentations, ratings agency presentations or similar documents, (iv) using reasonable best efforts with respect to the participation by members of management of the Company with appropriate seniority in the ordinary course of business or can be prepared by the Company without undue burden (any presentations, road shows, sessions with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party rating agencies and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933due diligence meetings, as amendedapplicable, in each case, upon reasonable advance notice, during normal business hours, and identify any such financial information at a mutually agreed time, (v) solely as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or required in connection with a customary the offering of Parent’s debt securities, including assisting Parent in securing the type described in customary cooperation of the Commitment Letter, consistent with their independent accountants of the Company and its Subsidiaries by providing customary practice, including authorization letters or auditor representation letters and requesting that they such independent accountants provide customary consents and comfort letters (including “negative assurance” comfort)) and consents for use of their reports, including in respect of historical financial statements of the Company, to the extent required in connection on customary terms and consistent with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide their customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver practice in connection with such Financing; and
offering of Parent’s debt securities, (vvi) furnish providing documents reasonably requested by Parent relating to the repayment or refinancing of any indebtedness for borrowed money of the Company or any of its Subsidiaries to be repaid or refinanced on the Closing Date and the Financing Partiesrelease of related liens or guarantees, within five including customary payoff letters and evidence that notice of any repayment has been timely delivered to the holders of such indebtedness in each case in accordance with the terms of the definitive documents governing such indebtedness, and (5vii) providing at least three Business Days following written request, in advance of the Closing Date such documentation and other information about the Company and its Subsidiaries as any is reasonably requested in writing by Parent at least 10 Business Days in advance of the Closing Date in connection with the New Debt Financing Party may reasonably determine is required by regulatory authorities under that relates to applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. providedACT, furtherand, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would required, a beneficial ownership certificate (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior substantially similar in form and substance to the Closingform of Certification Regarding Beneficial Owners of Legal Entity Customers published jointly, (2in May 2018, by the Loan Syndications and Trading Association and Securities Industry and Financial Markets Association) unreasonably interfere with the ongoing business or operations in respect of the Company or the Company Subsidiaries, (3) require any of the Company or any of its Subsidiaries that qualifies as a “legal entity customer” under the Beneficial Ownership Regulation (31 C.F.R. § 1010.230). All non-public or otherwise confidential information regarding the Company Subsidiaries obtained by the Parent and Merger Sub pursuant to enter into or approve any agreement or other documentation effective prior to this Section 8.11 shall be kept confidential in accordance with the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any terms of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the ClosingConfidentiality Agreement.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof of this Agreement until the earlier of the Closing (or the earlier termination of this Agreement pursuant to Section 8.01)Article VIII, subject at the sole expense of the PropCo Buyer, ▇▇▇▇ Ohio Finance shall and shall cause its Subsidiaries and its and their respective Representatives to use commercially reasonable efforts to provide to the limitations set forth PropCo Buyer such cooperation as is customary in this Section 5.05, connection with any Financing of PropCo Buyer for any of the Transactions and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as that is reasonably requested by Parent in connection with Parent’s arrangement of the Financing PropCo Buyer, including using (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using causing its Subsidiaries and its and their respective Representatives to use) commercially reasonable best efforts to:
(i) make appropriate officers reasonably availableassist in preparation of a customary confidential information memorandum, offering documents, private placement memoranda and related lender and underwriter presentations and customary materials for rating agency presentations, bank information memoranda, prospectuses, offering memoranda and similar documents used in connection with appropriate advance such Financing; provided, that no such confidential information memorandum, offering documents, private placement memorandum, lender or underwriter presentations, rating agency presentation, bank information memorandum, prospectuses offering memorandum or other document shall be issued by the Seller, the Company, any Company Subsidiary or their respective Affiliates or Subsidiaries;
(ii) upon reasonable prior notice, for participation participate in bank meetings, a reasonable number of due diligence sessions, meetings and presentations with ratings agencies the underwriters, debt financing sources, and road showsother proposed lenders or investors (including one-on-one sessions and conference calls) and in sessions with rating agencies, reasonable assistance in subject to customary confidentiality provisions;
(iii) (A) as promptly as reasonably practicable, furnish to the preparation of confidential PropCo Buyer the Required Financial Information and such pertinent and customary financial information memoranda, private placement memoranda, prospectuses, presentations and similar documents regarding JCC or its Subsidiaries as may be reasonably requested by Parent or the PropCo Buyer in order to consummate such Financing and (B) periodically provide updates to the PropCo Buyer of any Financing PartyRequired Financial Information provided to the PropCo Buyer, in each case, case as may be necessary so that such Required Financial Information (i) is Compliant and (ii) meets the applicable requirements set forth in the definition of “Required Financial Information”;
(iv) solely with respect to financial information relating to the Company and data derived from ▇▇▇▇ Ohio’s and its Subsidiaries in connection Subsidiaries’ historical books and records, assist PropCo Buyer with customary marketing efforts the preparation of Parent pro forma financial information and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 required under such Financing, it being agreed that none of Regulation S▇▇▇▇ Ohio, the Seller, the Company, any Company Subsidiary or any of their respective Representatives will be required to provide any information (but agree to use commercially reasonable efforts to provide customary assistance to the PropCo Buyer) relating to (a) any description of any debt or equity financing or the proposed aggregate amount of any debt or equity financing or assumed interest rates and fees and expenses relating to the incurrence of such financing, (b) any post-X under the Securities Act of 1933Closing or pro forma cost savings, as amendedsynergies, and identify capitalization, ownership or other pro forma adjustments or (c) any such financial information as suitable for distribution related to the PropCo Buyer or any of their respective Subsidiaries or any adjustments that are not directly related to the transactions contemplated by this Agreement (the “public side” lendersExcluded Information”);
(iiiv) provide customary authorization letters to debt financing sources authorizing the distribution of information to prospective lenders; provided that no such authorization letters shall be executed by the Seller, the Company or any Company Subsidiary (other than the Company or the Transfer Sub);
(vi) request that the Companyand facilitate ▇▇▇▇ Ohio’s independent accountants to (A) provide, consistent with customary practice, (1) reasonable assistance to the PropCo Buyer with PropCo Buyer’s preparation of pro forma financial information and pro forma financial statements to be used in connection with such Financing (solely with respect to financial information and data derived from ▇▇▇▇ Ohio’s and its Subsidiaries’ historical books and records) and (2) customary auditors consents to the PropCo Buyer to use their audit reports relating to JCC’s or its Subsidiaries and customary “comfort letters” with respect to financial information relating to JCC or its Subsidiaries as necessary or customary for financings similar to such Financing and (B) participate in a reasonable number of drafting sessions and accounting due diligence sessions sessions;
(vii) execute and cooperate with the Financing deliver as of Closing (including as set forth in the Debt Letters as in effect on the date of this Agreementbut not prior to Closing) or in connection with a customary offering of securitiesdefinitive financing documents, including the type described interest hedging arrangements and pledge and security documents, in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents each case as applicable and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required reasonably requested by the PropCo Buyer, and obtain surveys and title insurance and otherwise reasonably facilitate the pledging of collateral; provided that (a) none of the documents shall be executed or delivered except in connection with the marketing Closing, (b) the effectiveness thereof shall be conditioned upon, or become operative after, the occurrence of the Closing and syndication of Financing (including as set forth in the Debt Letters as in effect c) no liability shall be imposed on the date Seller, the Company, any Company Subsidiary or any of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange their respective Representatives in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingtherewith;
(ivviii) furnish to legal counsel of Parent the PropCo Buyer and to legal counsel of any Financing Party its financing sources all financial statements and such other pertinent and customary financial information as may be regarding JCC or its Subsidiaries reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver the PropCo Buyer in connection with such Financing; andprovided, that (a) ▇▇▇▇ Ohio Finance, JCC and its Subsidiaries shall only be obligated to furnish such information to the extent such information may be derived from ▇▇▇▇ Ohio’s or its Subsidiaries’ historical books and (b) neither Seller, the Company nor any Company Subsidiary shall be obligated to furnish (I) any financial statements not required to be delivered under Section 6.13 or (II) any Excluded Information;
(vix) furnish Parent and the Financing Parties, within five provide at least two (52) Business Days following written request, such prior to the Closing Date all documentation and other information about JCC or its Subsidiaries as any Financing Party may shall have been reasonably determine requested in writing by PropCo Buyer at least seven (7) Business Days prior to the Closing Date that is required in connection with the applicable debt financing by U.S. regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations; and
(x) cooperate reasonably with the financing sources’ and underwriters’ or initial purchasers’ due diligence, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestextent customary and reasonable.
(b) Notwithstanding anything to the contrary contained in this Agreement Agreement, (including this Section 5.05): (i1) nothing in this Agreement (including Section 6.13 or this Section 5.05) 6.18 shall require any such cooperation to the extent that it would (1i) require subject the Seller, the Company or any Company Subsidiary or any of their respective Affiliates or Representatives to pay any commitment actual or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closingpotential personal liability, (2ii) unreasonably interfere with the ongoing business or operations of the Company or the Company SubsidiariesSeller, (3) require the Company or any Company Subsidiary, (iii) reasonably be expected to conflict with, or violate, the Seller’s, the Company’s or any Company Subsidiary’s certificate of formation, operating agreement or any organizational documents or any applicable Law, or result in the contravention of, or violation or breach of, or default under, any material Contract to which the Seller, the Company, any Company Subsidiary or any of their respective Affiliates is a party, in each case, as in effect on the date hereof, (iv) cause any representation, warranty, covenant or other obligation in this Agreement or any Ancillary Agreement to be breached or any closing condition to fail to be satisfied, or (iv) require the Seller, the Company, any Company Subsidiary or any of their respective Affiliates or Representatives to (A) waive or amend any terms of this Agreement or any Ancillary Agreements or any other Contract to which any of them is a party, (B) agree to pay or pay any fees or reimburse any expenses or make any other payment in connection with any financing which are not reimbursed or indemnified hereunder, (C) give any indemnities or incur any liabilities in connection with any financing or any information utilized in connection therewith which are not reimbursed or indemnified hereunder, (D) deliver or obtain opinions of internal or external counsel or accountants’ comfort letters or reliance letters (except as expressly set forth in Section 6.18(a)(vi) above), (E) provide access to or disclose information where any of them determines that such access or disclosure could contravene any confidentiality agreement or jeopardize any legal or other privilege, or (F) approach any third parties to discuss agreements limiting the rights of such third parties; (2) none of the Company Subsidiaries directors or managers of the Transfer Sub, acting in such capacity, shall be required to execute, deliver or enter into or approve perform any agreement agreement, document or instrument relating to any financing, or adopt any resolutions or take any other documentation actions approving any such agreements, documents or instruments, unless PropCo Buyer shall have determined that such directors and managers are to remain as directors or managers of the Transfer Sub on and after the Closing Date and such resolutions are contingent upon the Closing and will not be effective prior to the Closing Date; (3) Transfer Sub and its Representatives shall not be required to undertake any obligation or agree execute, deliver or enter into any agreement, document or instrument with respect to any change financing that is not contingent upon the Closing or modification of any existing agreement or other documentation that would be effective prior to the Closing or Date; and (4) require neither Seller, the Company, nor any of Company Subsidiary (other than the Company Subsidiaries or the Transfer Sub) or their respective Affiliates and their respective Representatives shall be required to undertake any obligation or execute, deliver or enter into any agreement, document or instrument with respect to any financing (whether or not conditioned on Closing) or adopt any resolutions or take any other actions approving the agreements, documents and instruments pursuant to which any financing is obtained (whether or not conditioned on Closing). Nothing contained in this Section 6.18 or otherwise shall require the Transfer Sub to be a borrower or other obligor with respect to any financing prior to the Closing Date, and in no event shall the Seller, the Company or any Company Subsidiary or any of their respective boards of directors Affiliates (or equivalent bodiesother than the Transfer Sub) be required to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment be a borrower or other fees obligor with respect to any financing at any time whatsoever. The Seller hereby consents to the use of JCC’s and its Subsidiaries’ logos as may be reasonably necessary in connection with any Financing; provided, that such logos are used solely in a manner that is not intended to, nor reasonably likely to, harm or reimburse disparage the Seller, the Company or any expensesCompany Subsidiary.
(c) of Neither the Seller, the Company, its Subsidiaries, or any Company Subsidiary or any of their respective Affiliates and Representatives under shall have any certificate, agreement, arrangement, document or instrument relating liability to the Financing shall be effective until the Closing.
Buyers in respect of any financial information or data or other information provided pursuant to Section 6.13 or this Section 6.18 (c) Parent shall (i) promptly upon request other than arising from fraud, gross negligence, willful misconduct or intentional misrepresentation by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Seller, the Company Subsidiariesor any Company Subsidiary). The Buyers shall indemnify, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify defend and hold harmless the Seller, the Company, the Company Subsidiaries and its each of their respective Affiliates and Representatives from, against and in respect of any liabilities, losses, damages, claims, costs, expenses, interest, awards, judgment and penalties imposed on, sustained, incurred or suffered by, or asserted against, any of them, whether in respect of third-party claims, direct claims or otherwise, directly or indirectly relating to, arising out of or resulting from the arrangement of any financing or the provision of information utilized in connection therewith or any cooperation of any of the Seller, the Company and any Company Subsidiaries contemplated by Section 6.13 or this Section 6.18 (other than arising from fraud, gross negligence, willful misconduct or intentional misrepresentation by the Seller, the Company or any Company Subsidiary) to the fullest extent permitted by applicable Law, and the foregoing obligations shall survive the Closing Date and termination of this Agreement. The Buyers shall promptly, upon request of the Seller or the Company, reimburse the Seller, the Company and the Company Subsidiaries for all costs and expenses (including reasonable attorneys’ fees) incurred by the Seller, the Company or any Company Subsidiary (including those of their respective Affiliates or Representatives) in connection with the cooperation of the Seller, the Company and any of the Company Subsidiaries contemplated by Section 6.13 or this Section 6.18, and the foregoing obligations shall survive the Closing Date and termination of this Agreement.
(d) The Parties acknowledge and agree that the provisions contained in this Section 6.18, represent the sole obligation of the Seller, the Company, the Company Subsidiaries and their respective Affiliates and Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or with respect to cooperation in connection with, with the arrangement of any financing and no other provision of this Agreement shall be deemed to expand or modify such cooperation or obligations.
(e) The PropCo Buyer shall keep the other Parties reasonably informed of material developments relating to any Financing and of the PropCo Buyer for any information used in connection therewithof the Transactions.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Effective Time, the Partnership Entities shall, and unless otherwise agreed shall cause their respective Subsidiaries and their respective Representatives to, at Parent’s sole cost and expense, provide all cooperation that is reasonably necessary, proper or advisable in connection with any financing by Parent, Parent or any of its Subsidiaries in connection with the Company will use its reasonable best efforts to cooperate with Parent Transactions and its Affiliates the transactions contemplated by the LRR Agreement as may be reasonably requested by Parent or its Representatives. Without limiting the generality of the foregoing, the Partnership Entities shall, and shall cause their respective Subsidiaries and use commercially reasonable efforts to cause their respective Representatives to, (i) furnish, as promptly as practicable, the report of the Partnership’s auditor on the most recently available audited consolidated financial statements of the Partnership and its Subsidiaries and use its commercially reasonable efforts to obtain the consent of such auditor to the use of such report in accordance with normal custom and practice, and use commercially reasonable efforts to cause such auditor to provide customary comfort letters (providing “negative assurance” comfort) and drafts thereof to the underwriters, administrative agent, lenders, initial purchasers or placement agents, as applicable, in connection with such financing by Parent’s arrangement ; (ii) use commercially reasonable efforts to furnish, as promptly as practicable, financial statements and other financial data of the Financing (which, solely Partnership as would be required by Regulation S-X and Regulation S-K promulgated under the Securities Act for purposes a registered public offering to consummate any offering(s) of this Section 5.05, shall include any alternative equity or debt capital markets financings securities contemplated by such financing; (iii) provide reasonable and customary assistance in the Debt Letters). Such cooperation will include using reasonable best efforts to:
preparation of one or more confidential information memoranda, prospectuses, offering memoranda, private placement memoranda and other marketing and syndication materials (iincluding the provision of authorization letters and a representation with respect to the presence or absence of material non-public information) make appropriate officers reasonably requested by Parent, including by making available, with appropriate at reasonable times and on reasonable advance notice, for participation employees and advisors of the Partnership Entities; (iv) in bank a reasonable number of meetings, lender presentations, due diligence sessions, meetings with ratings agencies drafting sessions and road shows, in each case, upon reasonable assistance advance notice and at mutually agreed times; (v) assisting Parent in connection with the preparation and registration of confidential information memoranda(but not executing) any pledge and security documents, private placement memorandacurrency or interest hedging arrangements, prospectusesother definitive financing documents, presentations and similar or documents as may be reasonably requested by Parent or any the Financing Party, in each case, with respect to information relating to Sources or otherwise reasonably facilitating the Company and its Subsidiaries pledging of collateral in connection with customary marketing efforts of Parent and its Affiliates for all or any portion the financing of the Financing;
(ii) furnish Parent Transactions and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared transactions contemplated by the Company in LRR Agreement (provided that such documents will not take effect until the ordinary course of business or can be prepared by Effective Time); (vi) using commercially reasonable efforts to ensure that any syndication efforts benefit from existing lending and investment banking relationships; and (vii) providing all customary documentation and other information about the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably Partnership, the Partnership GP and their respective Subsidiaries requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required Sources in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities financing of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent Transactions and the Financing Parties, within five (5) Business Days following written request, such documentation transactions contemplated by the LRR Agreement and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” sanctions and anti-money money-laundering rules and regulations, including without limitation ; provided that (x) none of the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters Partnership or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) its Subsidiaries shall require any such cooperation to the extent that it would (1) require the Company be required to pay any commitment or other feesfee or incur any other liability or obligation in connection with such financing or to take any action that would be prohibited by any applicable Law or cause a default of, reimburse any expenses or breach under, or otherwise incur violate any liabilities Partnership Material Agreement, in each case except for any payment, incurrence or give any indemnities prior to action that is conditioned upon, and shall not take effect until, the ClosingEffective Time, (2y) unreasonably interfere with the ongoing business or operations no obligations of the Company or the Company Subsidiaries, (3) require the Company Partnership or any of the Company its Subsidiaries to enter into or approve under any agreement certificate, opinion, contract, indenture or other documentation document or instrument delivered pursuant to this Section 7.16 shall be effective prior until the Effective Time, and none of the Partnership or any of its Subsidiaries shall be required to take any action pursuant to this Section 7.16 under any certificate, opinion, contract, indenture or other document or instrument that is not contingent upon the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or Effective Time and (4z) require the Company, any none of the Company Subsidiaries Partnership or its senior officers shall be required to engage in any of their respective boards of directors (or equivalent bodies) to approve or authorize action that would interfere unreasonably with the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) business of the Company, Partnership and its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) . Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries Partnership and its Subsidiaries, Partnership GP and their respective Representatives from and against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) all losses or settlement payment damages suffered or incurred as a result of, or by them in connection with, such cooperation with the arrangement of any financing by Parent or any of its Subsidiaries in connection with the Financing Transactions and the transactions contemplated by the LRR Agreement and any information used utilized in connection therewiththerewith except (A) with respect to information supplied by the Partnership, its Subsidiaries and Representatives specifically for inclusion or incorporation by reference therein and/or (B) to the extent such losses and damages arise from the willful misconduct of the Partnership’s or any of its Subsidiaries’ Representatives.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts to, and shall cause its Subsidiaries to cooperate with Parent use their reasonable best efforts to, and shall use its Affiliates as reasonable efforts to cause its and their Representatives to, provide all cooperation reasonably requested by Parent necessary and customary for the arrangement of the Debt Financing (provided, that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company or any of its Subsidiaries), including by (i) participating in a reasonable number of meetings (including meetings with prospective Lenders), presentations, road shows, due diligence sessions and sessions with rating agencies, at reasonable times and with reasonable advance notice, (ii) to the extent required by the Debt Financing, using reasonable efforts to facilitate the pledging of, and perfection of security interests in, collateral, effective no earlier than the Effective Time, (iii) furnishing Parent and the Lenders as promptly as reasonably practicable the financial statements of the Company and its consolidated Subsidiaries required by paragraph 5 in Exhibit D to the Debt Commitment Letter (such financial statements, the “Required Financial Information”) and, following the delivery of a request therefor to the Company by Parent (which notice shall state with specificity the information requested), such financial and other information regarding the Company as is readily available to the Company at such time and is customarily required in connection with the execution of financings of a type similar to the Debt Financing, (iv) if requested by Parent, using reasonable best efforts to assist Parent in connection with Parent’s arrangement preparation of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated customary pro forma financial statements as required by paragraph 7 in Exhibit D to the Debt Letters). Such cooperation will include Commitment Letter; provided, that (x) Parent shall be responsible for the preparation of such pro forma financial statements and any pro forma adjustments giving effect to the Merger and the other transactions contemplated herein and (y) the Company’s assistance shall relate solely to the financial information and data derived from the Company’s historical books and records, (v) in each case following Parent’s reasonable request, using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies to assist Parent and road shows, reasonable assistance Merger Sub in the preparation of customary (A) confidential information memorandamemoranda (including a version that does not include material non-public information) and other customary marketing materials required in connection with financings similar to the Debt Financing, private placement memoranda, prospectuses, (B) materials for rating agency presentations and similar documents as may be reasonably requested by Parent (C) definitive documentation for the Debt Financing, (vi) following Parent’s reasonable request, using reasonable best efforts to cause directors and officers who will continue to hold such offices and positions from and after the Effective Time to execute resolutions or any Financing Party, in each case, consents of the Company and its Subsidiaries that do not become effective until the Effective Time with respect to entering into the definitive documentation for the Debt Financing and otherwise as necessary to authorize consummation of the Debt Financing and (vii) if requested by Parent, provide, at least two (2) Business Days prior to the Closing Date, all documentation and other information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, regulations including without limitation the USA PATRIOT Act. provided, further, that nothing Act to the extent requested by Parent in this Agreement shall require the Company to cause the delivery of writing at least nine (19) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) Business Days prior to the date Closing Date. Notwithstanding the foregoing, neither the Company nor any of such request.
(b) Notwithstanding anything its Subsidiaries shall be required to take or permit the contrary contained in this Agreement (including taking of any action pursuant to this Section 5.05): 5.13 that (iA) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay Company, its Subsidiaries or any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations Persons who are directors of the Company or its Subsidiaries to pass resolutions or consents to approve or authorize the Company Subsidiaries, (3) require the Company or any execution of the Company Subsidiaries to enter into or approve any agreement or other documentation Debt Financing that is effective prior to the Closing Effective Time or execute or deliver any certificate, document, instrument or agreement or agree to any change or modification of any existing certificate, document, instrument or agreement or other documentation that would be is effective prior to the Closing Effective Time, (B) cause any representation or warranty in this Agreement to be breached by the Company or any of its Subsidiaries, (4C) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation its Subsidiaries to pay any commitment or other fees similar fee or reimburse incur any expensesother expense, liability or obligation (other than those set forth in this Section 5.13) in connection with the Debt Financing prior to the Closing or have any obligation of the Company, its Subsidiaries, Company or any of their respective Representatives its Subsidiaries under any certificate, agreement, arrangementcertificate, document or instrument relating to the Financing shall be effective until the Closing.
, (cD) cause any director, officer or employee or stockholder of the Company or any of its Subsidiaries to incur any personal liability, (E) conflict with the organizational documents of the Company or its Subsidiaries or any Laws, (F) reasonably be expected to result (with or without notice, lapse of time, or both) in a material violation or breach of, or a default under, any Contract to which the Company or any of its Subsidiaries is a party, (G) provide access to or disclose information that the Company or any of its Subsidiaries determines would jeopardize any attorney-client privilege of the Company or any of its Subsidiaries, (H) prepare any financial statements or information that (x) are not available to it and prepared in the ordinary course of its financial reporting practice and (y) would not otherwise be available to it or capable of being prepared by it without undue burden or other than with the use of its commercially reasonable efforts or (I) require the Company or any of its Subsidiaries to enter into any instrument or agreement that is effective prior to the Effective Time or that would be effective if the Closing does not occur. Nothing contained in this Section 5.13 or otherwise shall require the Company or any of its Subsidiaries, prior to the Closing, to be an issuer or other obligor with respect to the Debt Financing. Parent shall (i) shall, promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) reasonable out-of-pocket costs incurred by the Company, any of the Company Subsidiaries, any of or its Subsidiaries or their respective Representatives in connection with any the cooperation contemplated by this Section 5.05 5.13 and (ii) shall indemnify and hold harmless the Company, the Company and its Subsidiaries and its their respective Representatives from and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) all losses suffered or settlement payment incurred as a result of, or by them in connection withwith the arrangement of the Debt Financing, such cooperation or any action taken by them at the Financing request of Parent pursuant to this Section 5.13 and any information used in connection therewiththerewith (other than information provided in writing by the Company or its Subsidiaries specifically in connection with its obligations pursuant to this Section 5.13).
(b) For the avoidance of doubt, the parties hereto acknowledge and agree that the provisions contained in this Section 5.13, represent the sole obligation of the Company, its Subsidiaries and their respective Representatives with respect to cooperation in connection with the arrangement of any financing (including the Financing) to be obtained by Parent or Merger Sub with respect to the transactions contemplated by this Agreement and no other provision of this Agreement (including the Exhibits and Schedules hereto) shall be deemed to expand or modify such obligations. In no event shall the receipt or availability of any funds or financing (including, for the avoidance of doubt, the Financing) by Parent, Merger Sub or any of their respective Affiliates or any other financing or other transactions be a condition to any of Parent’s or Merger Sub’s obligations under this Agreement.
(c) All non-public or otherwise confidential information regarding the Company or its Subsidiaries obtained by Parent or its Representatives pursuant to this Section 5.13 shall be kept confidential and otherwise treated in accordance with the Confidentiality Agreement or other confidentiality obligations that are substantially similar to those contained in the Confidentiality Agreement (which, with respect to the Lenders, shall be satisfied by the confidentiality provisions applicable thereto under the Debt Commitment Letter if made for the benefit of the Company). The Company hereby consents to the use of its and the Company Subsidiaries’ logos in connection with the Debt Financing.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentEffective Time, the Company will shall, and shall cause each of its Subsidiaries and each of its and their respective officers and employees to, and shall use its reasonable best efforts to cooperate with cause the non-employee Representatives of the Company and each of its Subsidiaries to, use its reasonable best efforts to provide to Parent and its Affiliates as such customary cooperation reasonably requested by Parent to cause the conditions and covenants in the Debt Financing Letters to be satisfied or otherwise that is customary and necessary, proper, advisable or desirable, or reasonably requested by Parent, in connection with Parent’s arrangement the Debt Financing, including the issuance of the Financing Holdco Notes by the Company or a direct or indirect parent company of the Company at the Closing (whichor by Merger Sub or a direct or indirect parent company of Merger Sub prior to the Closing, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings with the proceeds thereof funded into escrow prior to the Closing as contemplated by the Debt Financing Letters). Such , in each case, with reasonable prior notice and at reasonable times, including cooperation will include that consists of using reasonable best efforts toin respect of:
(i) make appropriate officers reasonably availableparticipating in a reasonable number of meetings (including customary one-on-one meetings with the parties acting as lead arrangers or agents for, and prospective lenders and purchasers of, the Debt Financing or any high-yield securities or loans being issued in lieu of any portion of the Debt Financing ("High Yield Securities") and senior management and Representatives, with appropriate advance noticeseniority and expertise, for participation in bank meetingsof the Company), presentations, road shows, due diligence sessions, meetings drafting sessions and sessions with ratings rating agencies that are customary for financings of a type similar to the Debt Financing or such High Yield Securities;
(ii) (A) furnishing Parent and road showsthe Financing Sources as promptly as practicable (and no later than the Solicitation Period End Date, reasonable assistance if requested by Parent to facilitate an issuance of Holdco Notes prior to the Closing Date) with financial and other pertinent information regarding the Company and its Subsidiaries as may be reasonably requested by the Parent, including (i) audited consolidated balance sheets and related statements of income, equity and cash flows and related notes of the Company, in each case prepared in accordance with GAAP for the three (3) most recently completed fiscal years ended at least 90 days before the Applicable Financing Closing Date, and, for each fiscal quarter after the date hereof ended at least 45 days prior to the Applicable Financing Closing Date and for the comparable quarter of the prior fiscal year, unaudited consolidated balance sheets of the Company as of the end of such fiscal quarter and the related unaudited statements of income, equity and cash flows and related notes, in each case prepared in accordance with GAAP and using the same accounting principles, policies, methods, practices, procedures, classifications, categories, estimates, judgments and assumptions as were used in preparing the audited financial statements contained in the Company SEC Documents, (ii) information regarding the Company of the type and form customarily included in an offering memorandum for private placements of debt securities under Rule 144A promulgated under the Securities Act (which, for the avoidance of doubt, shall not include financial statements or information required by Rules 3-09, 3-10 or 3-16 of Regulation S-X or Compensation Discussion and Analysis required by Regulation S-K Item 402(b)) but shall include customary disclosure of certain guarantor and non-guarantor information, including financial statements and pro forma financial information (including as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days before the Applicable Financing Closing Date, prepared after giving effect to the transactions contemplated hereby and the Financing as if such transactions and the Financing had occurred as of such date (in the case of the balance sheets) or at the beginning of such period (in the case of other financial statements), in each case prepared in accordance with GAAP), financial data, audit reports and business and other financial information of the type and form that would be required by Regulation S-X (other than such other information not required to be delivered pursuant the Financing Letters) and Regulation S-K promulgated under the Securities Act for a registered public offering of debt securities (including for the preparation of confidential pro forma financial statements), or that would otherwise be necessary to receive from the independent accountants that audited the Audited Financial Statements (and any other accountant to the extent financial statements audited or reviewed by such accountants are or would be included in such offering memoranda), customary "comfort" (including "negative assurance" comfort), together with drafts of customary comfort letters that such independent accountants are prepared to deliver upon "pricing" of any High-Yield Securities, with respect to the financial information to be included in such offering memorandum which, with respect to any interim financial statements shall have been reviewed by such independent accountants as provided in AU 722, and consents of such independent accountants to use of their reports in any materials related to the Debt Financing or High-Yield Securities; provided, that Parent shall be responsible for, and the Company's obligations are subject to, timely provision of any post-Closing pro forma cost savings, synergies, capitalization, ownership or other pro forma adjustments desired to be incorporated into any pro forma financial information reasonably requested by Parent to be delivered by the Company (excluding any information that would customarily be prepared with the cooperation of the Company), (B) assisting in a commercially reasonable manner with the preparation of customary materials for rating agency presentations, lender presentations, high yield road show presentations or memoranda, syndication memoranda, offering documents, private placement memoranda, prospectusesbank information memoranda, presentations prospectuses and similar documents other marketing materials or documents, including business and financial projections reasonably requested by Parent or the Financing Sources, in each case in connection with the Debt Financing or High-Yield Securities, and (C) assisting in a commercially reasonable manner Parent and the Financing Sources in obtaining as promptly as practicable field audits and appraisals satisfactory to the Financing Sources of the customer accounts receivable and inventory of the Company suitable to be pledged as collateral for the New ABL Facility to be established pursuant to the Debt Commitment Letters (all such information required to be delivered or prepared by the Company pursuant to Section 5.14(a)(ii)(A) , together with any replacements or restatements thereof and supplements thereto, if any such information would go stale or otherwise be unusable under customary practices for such purposes, the "Required Information", and all such information required to be delivered or prepared pursuant to Section 5.14(a)(ii)(A), the "Specified Required Information") (it being understood that notwithstanding the foregoing, if at any time the Company shall in good faith reasonably believe that it has provided all Specified Required Information as required by Section 5.14(a)(ii)(A) and such Required Information is Compliant, the Company may deliver to Parent written notice to that effect (stating the date it believes such Specified Required Information was provided), in which case the Company shall be deemed to have complied with this Section 5.14(a)(ii) with respect to the Specified Required Information unless (1) Parent in good faith reasonably believes the Company has not provided all Specified Required Information and, within five (5) Business Days after delivery of such notice by the Company, delivers a written notice to the Company to that effect, stating with specificity, to the extent reasonably practicable, which items of Specified Required Information have not been provided or (2) the Required Information ceases to be Compliant before the termination of the Marketing Period);
(iii) executing and delivering authorization letters authorizing the distribution of information to prospective lenders or investors and containing a representation that the public side versions of such documents, if any, do not include material non-public information regarding the Company or its Subsidiaries or securities;
(iv) executing and delivering any securities purchase agreement, credit agreement, indenture, supplemental indenture, note, guarantee, pledge and security document, currency or interest hedging arrangement, other definitive financing document, representation letter to auditors and any other certificate or document and back-up therefor and for legal opinions as may be reasonably requested by Parent or the Financing Sources or their respective counsel, obtaining and delivering a solvency certificate of the chief financial officer of the Company and any Subsidiary of the Company that is a borrower or guarantor under any of the Debt Financing Partyor High-Yield Securities, consents of accountants for use of their reports in any materials relating to the Debt Financing or High-Yield Securities, and other certificates, legal opinions or documents required to satisfy the conditions in the Debt Financing Letters or as may otherwise be reasonably requested by Parent or the Financing Sources or their respective counsel, and otherwise reasonably facilitating the pledging of collateral;
(v) obtaining accountants' comfort letters, corporate and facilities ratings, consents, landlord waivers and estoppels, non-disturbance agreements, legal opinions, surveys and title insurance (including providing reasonable access to Parent and its Representatives to all owned real property and leased real property), engineering reports, environmental and other inspections and other documentation and items relating to the Debt Financing or High-Yield Securities as may be reasonably requested by Parent and to arrange discussions among Parent, Merger Sub and the Financing Sources and prospective Financing Sources with other parties to or beneficiaries of Material Contracts, Company Leases and Liens;
(vi) taking all actions reasonably necessary to (A) permit the Financing Sources to evaluate the Company's and its Subsidiaries' current assets, inventory, cash management and accounting systems, policies and procedures relating thereto for the purpose of establishing collateral arrangements and (B) establish bank and other accounts and blocked account agreements and lock box arrangements in connection with the foregoing, provided that such accounts, agreements and arrangements will not become active or take effect until the Effective Time;
(vii) granting the Financing Sources, with reasonable prior notice and at reasonable times, access to the Company and Company Subsidiaries' respective properties, assets, and cash management and accounting systems (including cooperating in and facilitating the completion of field examinations, collateral audits, asset appraisals, surveys, Phase I environmental site assessments and engineering/property condition reports) as would be reasonably necessary for the completion of the Debt Financing or High-Yield Securities;
(viii) reasonably facilitating the pledging or the reaffirmation of the pledge of collateral (including obtaining and delivering of pay-off letters and Lien terminations, in each case, with respect in form and substance reasonably satisfactory to information relating to the Company Parent, and its Subsidiaries other cooperation in connection with customary marketing efforts the repayment or other retirement of Parent existing indebtedness and its Affiliates for the release and termination of any and all or any portion of the Financingrelated Liens);
(iiix) furnish Parent and the Financing Parties with copies of such financial data with respect taking all corporate actions, subject to the Company and its Subsidiaries which is prepared by occurrence of the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is Applicable Financing Closing Date reasonably requested by Parent or any Financing Party Source to (A) permit the consummation of the Debt Financing or issuance of such High-Yield Securities, (B) the distribution or payment of Available Cash on hand of Opco and is customarily required for its Subsidiaries and the arrangement and syndication proceeds of financings similar the Debt Financing or High-Yield Securities, if any, obtained by any Subsidiary of the Company to the Surviving Corporation and its Subsidiaries to fund the Per Share Merger Consideration and other Financing committed pursuant to Uses, and (D) cause the direct borrowing or incurrence of all of the proceeds of the Debt LettersFinancing, including such information necessary to allow Parent to prepare pro forma financial statements in accordance any replacement high-yield debt financing, by the Surviving Corporation or any Subsidiary of the Company concurrently with Article 11 of Regulation S-X under or immediately following the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersEffective Time;
(iiix) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish furnishing Parent and the Financing Parties, within five (5) Business Days following written request, such Sources promptly with all documentation and other information as which any lender providing or arranging Debt Financing Party may reasonably determine or the issuance of the High Yield Securities has determined is required by regulatory authorities under applicable “"know your customer” " and anti-money laundering rules and regulations, including without limitation the PATRIOT Act; and
(xi) otherwise cooperating customarily and reasonably with the marketing efforts of Parent and the Financing Sources for any of the Financing as necessary or reasonably requested by Parent or the Financing Sources. provided, further, that nothing in this Agreement shall require (u) the Company shall not be required to make any representation, warranties or certifications as to which, after the Company's use of reasonable best efforts to cause such representation, warranty or certification to be true, the delivery of (1) legal opinions Company has in its good faith determined that such representation, warranty or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii)certification is not true, (2w) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company shall not be required to become subject to any obligations or liabilities with respect to such period, agreements or documents prior to the Closing other than as provided by set forth in Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations 5.14 of the Company or the Company SubsidiariesDisclosure Letter, (3x) require nothing shall obligate the Company or any of the Company its Subsidiaries to enter into provide, or approve cause to be provided, any agreement legal opinion by its counsel, or other documentation effective prior to provide any information or take any action to the Closing extent it would result in a violation of Law or agree to any change or modification loss of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financingprivilege, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(cy) Parent shall (i) shall, promptly upon request by the Company, reimburse the Company and its Subsidiaries for all reasonable out-of its fees pocket costs and expenses (including fees and expenses of counsel and accountantsattorneys' fees) incurred by the CompanyCompany or its Subsidiaries in connection with such cooperation. The Company and its Representatives shall be given a reasonable opportunity to review and comment on any financing documents and any materials that are to be presented during any meetings conducted in connection with the Financing, and Parent shall give due consideration to all reasonable additions, deletions or changes suggested thereto by the Company and its Representatives.
(b) The Company hereby consents to the use of its and its Subsidiaries' logos in connection with the Financing; provided that such logos are used solely in a manner that is not intended to or is not reasonably likely to harm or disparage the Company or any of its Subsidiaries or the reputation or goodwill of the Company Subsidiaries, or any of its Subsidiaries.
(c) The Company shall or their shall cause its Subsidiaries to supplement any Required Information on a reasonably current basis to the extent that any such information, to the Knowledge of the Company, contains any material misstatement of fact or omits to state any material fact necessary to make such information not materially misleading.
(d) All non-public or other confidential information provided by the Company or any of its Representatives pursuant to this Agreement shall be kept confidential in accordance with the Confidentiality Agreements; provided that Parent and Merger Sub shall be permitted to disclose such information to any Financing Sources or prospective Financing Sources and other financial institutions and investors that are or may become parties to the Financing Letters and to any underwriters, initial purchasers or placement agents in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the CompanyDebt Financing, the Company Subsidiaries and its and or to their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of respective counsel and accountants) or settlement payment incurred as a result ofauditors, or in each case, to the extent subject to customary confidentiality arrangements for use by any of them of such information in connection withwith the Debt Financing, such cooperation or the Financing and any information used to ▇▇▇▇▇'▇ Investors Service and Standard & Poor's Rating Agency in connection therewith.connecti
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company, each Company Subsidiary and each Company Representative will use its reasonable best efforts to cooperate with Parent and its Affiliates as provide all cooperation reasonably requested by Ultimate Parent, Parent and Merger Sub in connection with the with the capital markets and bank financings to be undertaken by the Ultimate Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings acquisition contemplated by the Debt LettersMerger (each a “Financing” and collectively, the “Financings”). Such cooperation will include using , and to use their respective commercially reasonable best efforts to:
(a) to cause appropriate officers and employees of the Company and each Company Subsidiary (i) make appropriate officers reasonably availableto be available on a customary basis to meet with prospective lenders, with appropriate advance noticerating agencies and investors in presentations, for participation in bank meetings, road shows and due diligence sessions, meetings (ii) to assist with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memorandadisclosure documents, offering documents, private placement memoranda, bank information memoranda, prospectuses, presentations rating agency presentations, projections and similar documents in connection therewith (including permitting the use of the Company’s and any Company Subsidiaries’ logo therein), (iii) to provide customary authorization letters to the Financing sources authorizing the distribution of information provided by the Company and the Company Subsidiaries to prospective Financing sources, (iv) to furnish Ultimate Parent, Parent and Merger Sub and its Financing sources with financial statements and financial and other pertinent information regarding the Company and each Company Subsidiary as may be reasonably requested by Ultimate Parent, Parent and Merger Sub to consummate the offerings of securities contemplated by the Financings at the time that such offerings will be made (including, without limitation, such information necessary to prepare a pro forma consolidated balance sheet and related pro forma consolidated statement of operations), (v) to take all corporate actions necessary and customary to permit the consummation of the Financings and to execute and deliver any definitive Financing documentation, security documents, hedging arrangements, customary certificates, legal opinions (which may be reasoned, if counsel reasonably believes it cannot give the opinion otherwise) or other documents as may be reasonably requested by Ultimate Parent, Parent and Merger Sub in connection with the Financings, (vi) to obtain all waivers, consents and approvals from other parties to Contracts and Liens to which the Company or any Financing Partyof its Subsidiaries is a party or by which any of them or their assets or properties are bound or subject, in each caseand (vii) to take all other actions necessary to permit the consummation of the Financings and (b) to cause the independent certified public accountants of the Company and the Company Subsidiaries to provide assistance to Ultimate Parent, with respect Parent and Merger Sub, including providing the consents required under applicable securities laws to information the use of their audit reports relating to the Company and its the Company Subsidiaries in connection with a public offering document, participating in customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions that may be conducted by the underwriters of any securities offering and cooperate with to provide any necessary “comfort letters” and to prepare and deliver other customary documents and instruments. Notwithstanding the Financing (including as set forth foregoing, nothing in this Section 5.18 shall require the Debt Letters as in effect on the date of this Agreement) cooperation or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements participation of the Company, the Company Subsidiaries or the Company Representatives to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2A) unreasonably interfere with the ongoing business or operations of the Company or the Company SubsidiariesSubsidiaries or otherwise unreasonably interfere with the prompt and timely discharge by the Company’s or any Company Subsidiary’s employees of their normal duties, (3B) cause any representation or warranty in this Agreement to be breached, any condition to Closing set forth in Article VI to fail to be satisfied or otherwise cause any breach of this Agreement, (C) require the Company or any of the Company Subsidiaries to enter into pay any out-of-pocket fees or approve any agreement or other documentation effective expenses prior to the Closing that are not promptly reimbursed by the Parent, (D) require the Company or agree any Company Subsidiary to pledge any change assets as collateral, or modification of pay any existing agreement commitment or other documentation that would be effective similar fee or incur any other liability in connection with the Financings prior to the Closing Closing, or (4) require otherwise involve any binding commitment by the Company, Company or any of the Company Subsidiaries unless such commitment is conditioned on the Closing and terminates automatically and without liability to the Company or any of their respective boards the Company Subsidiaries upon the termination of directors this Agreement or (E) cause any director, officer or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) employee of the Company, its Subsidiaries, Company or any of their respective Representatives under its Subsidiaries to incur any certificate, agreement, arrangement, document or instrument relating personal liability. Notwithstanding anything to the Financing contrary in this Agreement, nothing in this Section 5.18 shall be effective until require the ClosingCompany Board to take any action to approve any Financing.
(cb) Parent shall (i) promptly upon request by the Company, Company reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) documented reasonable out-of-pocket costs incurred by the Company, any of the Company Subsidiaries, any of its Subsidiaries or their the Company Representatives in connection with any cooperation the Financings or the performance by the Company, the Company Subsidiaries and the Company Representatives of the obligations contemplated by this Section 5.05 5.18 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its Affiliates and their Representatives from and against any claimand all losses, lossclaims, damagecosts, injuryexpenses, liabilityinterest, judgmentawards, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees judgments and expenses of counsel and accountants) penalties suffered or settlement payment incurred as a result of, or by them in connection with, such cooperation or with the arrangement of the Financing and or providing any of the information used utilized in connection therewith, other than to the extent any of the foregoing arises from the willful misconduct, gross negligence or willful and material breach of the obligations of the Company, its Affiliates or Representatives under this Agreement.
(c) Parent acknowledges and agrees that, notwithstanding the Company’s obligations under this Section 5.18, none of the obtaining of the Financing or any alternative financing or the completion of any issuance of securities contemplated by the Financing are a condition to the Closing, and reaffirms its obligation to consummate the Transactions irrespective and independently of the availability of the Financing or any alternative financing or the completion of any such issuance, subject to the applicable conditions set forth in Sections 6.1 and 6.2.
Appears in 1 contract
Sources: Merger Agreement (UNS Energy Corp)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05The Parent shall, and unless otherwise agreed by Parentshall cause its Subsidiaries to, the Company will and use its reasonable best efforts to cooperate with Parent cause its and its Subsidiaries’ respective directors, officers, employees, consultants, advisors (including its investment bankers, attorneys, accountants, consultants and financial advisors) (collectively, “Advisors”) to provide to Buyer and its Affiliates as reasonably requested by Parent such reasonable cooperation in connection with Parent’s arrangement of the Debt Financing (whichwhich term, solely for purposes of this Section 5.055.7, shall include any alternative equity offerings or debt capital markets financings contemplated in lieu thereof) as may be reasonably requested by Buyer and its Affiliates, including, without limitation: (i) as promptly as reasonably practicable, furnishing Buyer’s financing sources and their respective Advisors with the Debt LettersRequired Information (and updating the same periodically so it is Compliant). Such cooperation will include ; (ii) using reasonable best efforts to:
(i) make appropriate officers to furnish, to Buyer and its Affiliates and the Debt Financing Sources, as promptly as reasonably availablepracticable, financial and other pertinent information regarding the Company and its Subsidiaries as may be reasonably requested by Buyer and its Affiliates and/or the Debt Financing Sources in connection with appropriate advance noticethe Debt Financing, for participation in bank meetingsincluding financial statements and other financial data regarding the Company and its Subsidiaries required by the Debt Commitment Letter, and otherwise reasonably cooperating with the Financing Sources’ due diligence sessionsin connection with the Debt Financing; (iii) executing and delivering as of (but not before) the Closing any definitive financing documents or other certificates, meetings with ratings agencies and road showsconsents, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar or documents as may be reasonably requested by Parent or any Financing PartyBuyer and its Affiliates; (iv) taking all corporate actions, in each case, with respect to information relating subject to the Company and its Subsidiaries in connection with customary marketing efforts occurrence of Parent the Closing, reasonably requested by Buyer and its Affiliates for all that are reasonably necessary or any portion customary to permit the consummation of the Debt Financing;
; and (iiv) furnish Parent and the Financing Parties with copies of taking such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) other customary actions as is are reasonably requested by Parent or any Financing Party Buyer and is customarily required for its Affiliates to facilitate the arrangement and syndication satisfaction of financings similar all conditions precedent to the Financing committed pursuant to obtaining the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, Letter to the extent required in connection with within the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities control of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financingits Subsidiaries; and
(v) furnish Parent and the Financing Partiesprovided that, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing notwithstanding anything in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date contrary, neither the Parent nor any of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) its Subsidiaries or Advisors shall require any such cooperation to the extent that it would (1) require the Company be required to pay any commitment or other fees, reimburse similar fee or enter into any expenses definitive agreement or otherwise incur any liabilities other liability or give obligation in connection with the Debt Financing (or any indemnities alternative financing) prior to the Closing. Furthermore, (2) notwithstanding anything in this Agreement to the contrary, nothing herein shall require such cooperation to the extent it would interfere unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require any of its Subsidiaries and none of the Company or any of its Subsidiaries shall be required to issue any offering or information document. Buyer shall indemnify and hold harmless the Company Parent, its Subsidiaries to enter into and their respective Advisors from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or approve any agreement or other documentation effective prior to incurred by them in connection with the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any arrangement of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation Debt Financing (including any obligation to pay action taken in accordance with this Section 5.6(a) and any commitment information utilized in connection therewith (other than information provided specifically for use in connection with the Debt Financing by or other fees or reimburse any expenses) on behalf of the Company, Parent or its Subsidiaries), in each case, except to the extent suffered or incurred as a result of the bad faith, gross negligence or willful misconduct of, or any material breach of this Agreement by, the Parent or its Subsidiaries or, in each case, their respective Representatives under any certificateAdvisors. In addition, agreementBuyer shall, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the CompanyParent or any of its Subsidiaries, reimburse the Company Parent or any of its Subsidiaries, as the case may be, for all of its fees reasonable and expenses (including fees and expenses of counsel and accountants) documented out-of-pocket costs incurred by the Company, any of the Company Subsidiaries, any of Parent or its or their Representatives Subsidiaries in connection with any the cooperation contemplated by this Section 5.05 5.6(a).
(b) Buyer or an Affiliate may (i) commence any of the following: (A) one or more offers to purchase any and all of one or more series of the outstanding Company Notes for cash (the “Offers to Purchase”); or (B) one or more offers to exchange any and all of the outstanding Company Notes of one or more series for securities issued by the Buyer (or its Affiliates) (the “Offers to Exchange”), in each case on terms and conditions determined by Buyer in its sole and absolute discretion, provided the consummation of any such transaction shall be conditioned on the Closing and shall be funded using consideration provided by Buyer; and (ii) indemnify solicit the consent of the holders of each series of Company Notes regarding certain proposed amendments to the indentures governing such Company Notes as requested by Buyer (the “Consent Solicitations” and, together with the Offers to Purchase and hold harmless Offers to Exchange, if any, the Company“Company Note Offers and Consent Solicitations”). Any Company Note Offers and Consent Solicitations shall be made on such terms and conditions (including price to be paid and conditionality) as are proposed by Buyer in its sole and absolute discretion; provided that, in any event, Buyer, Parent and Company hereby agree that (x) any such Company Note Offers and Consent Solicitations shall comply with applicable law and the terms of any indentures governing the applicable Company Notes, (y) the terms and conditions of any Company Note Offers and Consent Solicitations (other than a Consent Solicitation seeking the elimination, waiver or amendment of the change of control provisions undertaken independently of an Offer to Purchase or Offer to Exchange) shall provide that the closing thereof or the effectiveness of the substantive provisions thereof, as the case may be, shall be contingent upon or not become operative prior to the Closing, and (z) promptly upon expiration of any Consent Solicitation, assuming the requisite consents have been received with respect to such series of Company Notes, the Company Subsidiaries shall execute (or cause to be executed) a supplemental indenture to the indentures governing each series of Company Notes reflecting the terms of such Consent Solicitation and shall use commercially reasonable efforts to cause the trustee under each such indenture to enter into such supplemental indenture; provided that (other than a Consent Solicitation seeking the elimination, waiver or amendment of the change of control provisions undertaken independently of an Offer to Purchase or Offer to Exchange) the substantive provisions thereof will not become operative prior to the Closing. Concurrent with the Closing, and in accordance with the terms of any Offer to Purchase or Offer to Exchange, the Parent or Company shall accept for purchase or exchange and purchase or exchange each series of Company Notes properly tendered and not properly withdrawn in any Offer to Purchase or Offer to Exchange using consideration provided by or at the direction of Buyer. Concurrent with the expiration of any Consent Solicitation in which requisite consents have been achieved, and in accordance with the terms of such Consent Solicitation, the Parent or Company shall pay any consent fee to the holder of each Company Note approving the amendments to the indentures contemplated by such Consent Solicitation using consideration provided by or at the direction of Buyer. Buyer hereby covenants and agrees to provide (or cause to be provided) immediately available funds to the Parent or Company for the full payment of the above amounts at the applicable times. At Buyer’s expense, the Parent or Company shall provide all cooperation reasonably requested by Buyer and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) Affiliates that is necessary or settlement payment incurred as a result of, or reasonably required in connection with, such cooperation or the Financing with any Company Note Offers and any information used in connection therewithConsent Solicitations.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, Sellers shall cause the Company, and unless otherwise agreed by Parent, the Company will shall use its their reasonable best efforts to cooperate with Parent cause their other Affiliates and its Affiliates as each of their respective directors, officers, employees, accountants, counsel, investment bankers, consultants and other advisors to, provide to Buyers all cooperation and documents reasonably requested by Parent Buyers in connection with Parent’s arrangement (i) the Debt Financing or any high yield bonds being issued in lieu of any portion of the Debt Financing and (whichii) any Parent SEC Filing (as defined below), solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts toincluding:
(i) make appropriate officers reasonably available, furnishing Buyers and the Debt Financing Sources as promptly as practicable with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in information regarding the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion Acquired Companies of the Financing;
type and form customarily included in an offering memorandum for private placements under Rule 144A (ii) furnish Parent and the Financing Parties with copies exclusive of such financial data with respect to the Company and its Subsidiaries which is prepared disclosure required by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 Item 402 of Regulation S-X K) promulgated under the Securities Act of 1933Act, including the Required Financial Statements (as amendeddefined below), financial data, audit reports and identify any such business and other historical financial information as suitable for distribution to “public side” lenders;
(iii) request of the type and form that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or would customarily be required in connection with a private placements under Rule 144A, or that would otherwise be necessary to receive from the independent accountants that audited the Required Financial Statements (and any other accountant to the extent financial statements audited or reviewed by such accountants are or would be included in such offering memorandum) customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters “comfort” (including “negative assurance” comfort), including together with drafts of customary comfort letters that such independent accountants are prepared to deliver upon “pricing” and closing of any high-yield bonds being issued in respect lieu of historical financial statements any portion of the CompanyDebt Financing, with respect to the extent financial information to be included in such offering memorandum;
(ii) reasonably assisting in the preparation of (A) any customary offering documents, high-yield road show presentations or memoranda, bridge teasers, bank information memoranda, prospectuses and similar documents, (B) all information regarding the Company and its Subsidiaries reasonably requested by Buyers in order for Buyers to prepare a pro forma consolidated balance sheet and related pro forma consolidated statement of operations of Parent and its subsidiaries the receipt of which is a condition to the obligations of the Debt Financing Sources or required to be included in connection with the marketing any Parent SEC Filing and syndication of Financing (C) materials for rating agency presentations;
(iii) executing and delivering (or using reasonable best efforts to obtain from its advisors) customary certificates, accounting comfort letters (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant management representation letters necessary for accounts to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management deliver comfort letters in connection with the foregoing;
(iv) furnish Debt Financing, any Parent SEC Filing or any materials otherwise required to be filed by Parent or Buyers pursuant to Exchange Act rules and regulations), legal counsel opinions or other documents and instruments relating to guarantees and other matters ancillary to the Debt Financing or any high yield bond being issued in lieu of Parent and to legal counsel of any the Debt Financing Party such information as may be reasonably requested by Buyers;
(iv) (x) providing authorization letters to the Debt Financing Sources authorizing the distribution of information to prospective lenders and containing a representation to the Debt Financing Sources that the public side versions of such counsel documents, if any, do not include material non-public information about the Company or their respective Affiliates or securities and (y) consenting to Parent’s filing of a Form 8-K with the SEC disclosing information (including historical financial statements) relating to the Acquired Companies (A) which will be included in connection with any legal opinion that such counsel may be the offering memorandum or other Debt Financing marketing documents which Buyers, in good faith, believes Parent is required to deliver disclose publicly in connection order for Parent to be in compliance with applicable securities laws, including Regulation FD or (B) for purposes of permitting such Financing; andinformation (including historical financial statements and pro forma financial information) to be included or incorporated by reference in any other filing with the SEC which the Buyers, in good faith, determines is necessary or desirable for Parent’s ongoing conduct of its business and financing and related activities or for the fulfillment of any contractual obligation of Parent, including, without limitation, any Registration Statement on Form S-3 that Parent has filed or may file with the SEC prior to the Closing Date, or any prospectus or prospectus supplement included in any such registration statement (such filings, a “Parent SEC Filing”);
(v) furnish Parent providing audited consolidated balance sheets, statements of income, statements of comprehensive income, statements of Seller’s capital and statements of cash flows of the Company and its Subsidiaries covering the three completed fiscal years immediately preceding the Closing, unaudited balance sheets statements, statements of income, statements of comprehensive income, statements of Seller’s capital and statements of cash flows for any interim period or periods of the Company and its Subsidiaries ended after the date of the most recent audited financial statements and at least forty-five days prior to the Closing Date and for the trailing twelve-month period then ended (which shall have been reviewed by the independent accountants for the Company as provided in the procedures specified by the Public Company Accounting Oversight Board in AU 722), in each case prepared in accordance with GAAP subject, in the case of any interim statements, to year-end audit adjustments and setting forth in each case in comparative form the figures for the corresponding interim period of the previous fiscal year and the corresponding portion of the previous fiscal year (collectively this clause (v), the “Required Financial Statements”);
(vi) cooperating with the Debt Financing PartiesSources’ due diligence, within five to the extent customary and reasonable, including by granting the Debt Financing Sources access to the Company’s properties, assets and cash management and accounting systems, to the extent not unreasonably interfering with the business of the Company;
(5vii) Business Days following written request, such furnishing Buyers and the Debt Financing Sources promptly with all documentation and other information as which any lender providing or arranging Debt Financing Party may has reasonably determine requested and that such lender has determined is required by regulatory authorities in connection with such Debt Financing under applicable “know your customer” and anti-money laundering rules and regulationsregulations including, including without limitation limitation, the PATRIOT Act. ;
(viii) assisting in preparation for and participating in a reasonable number of management and other meetings (including customary one-on-one meetings with the lead arrangers for the Debt Financing), presentations, road shows, due diligence sessions and sessions with rating agencies, prospective lenders, legal counsel and investors on reasonable advance notice and otherwise cooperating with the marketing efforts for any part of the Debt Financing or any high yield bond being issued in lieu of the Debt Financing;
(ix) assisting Buyers in obtaining corporate, credit, facilities and securities ratings in connection with the Debt Financing or any high yield bond being issued in lieu of the Debt Financing;
(x) executing and delivering any definitive financing documents, including any pledge documents, security documents and other definitive financing documents, and otherwise facilitating the pledging of, and the granting, recording and perfection of security interests in, share certificates, securities and other collateral;
(xi) taking such corporate actions as shall be reasonably requested by Buyers to permit the consummation of the Debt Financing or any high yield bond being issued in lieu of the Debt Financing and to permit the proceeds thereof to be made available at the Closing; and
(xii) delivery of notices of prepayment, termination or redemption within the time periods required by the relevant agreements governing any existing debt obligations of the Company, and obtaining customary payoff letters, prepayment notices, Encumbrance terminations and instruments of discharge to be delivered at Closing, to allow for the payoff, discharge and termination in full on the Closing Date of all existing debt obligations of the Company, provided, however, that until the Closing occurs, none of Sellers, the Company or any of their Subsidiaries shall, except for the delivery of the authorization letter set forth in clause (iv) above, the prepayment and termination notices set forth in clause (xii) above and representation letters required by Buyer’s auditors in connection with the delivery of “comfort letters” in connection with the Debt Financing or any high yield bond being issued in lieu of the Debt Financing, or in transactions effected pursuant to a Parent SEC Filing, (A) have any liability or any obligation under any agreement or document related to the Debt Financing or (B) be required to incur any other liability in connection with the Debt Financing unless reimbursed or reasonably satisfactorily indemnified by Buyer. Without limitation to the foregoing, Seller and the Company shall provide, and shall cause their respective Subsidiaries, and shall use their respective reasonable best efforts to cause each of its and their respective Representatives, including legal, tax, regulatory and accounting to provide, all other information and cooperation reasonably requested by the Debt Financing Sources pursuant to the terms of the Debt Commitment Letter (the information referenced in this sentence, together with the information, documents and materials referenced in clauses (i), (ii)(A), (iv) and (v) in this Section 6.8(a) and the management representation letters referenced in clause (iii) in this Section 6.8(a), the “Required Information”); and provided further, that nothing in this Agreement shall require the Company to cause the delivery of (1x) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the FinancingBuyers shall, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared promptly upon request by the Company or Seller, reimburse the Company and Sellers for all reasonable and documented out-of-pocket costs and expenses incurred by Seller, the Company or its Subsidiaries in connection with respect such cooperation and (y) Buyers shall indemnify and hold harmless Sellers, the Company and its Subsidiaries and their respective affiliates, accountants, consultants, legal counsel and other representatives from and against any and all liabilities or losses suffered or incurred by them in connection with the arrangement of the Debt Financing or the filing of any Parent SEC Filing and any information utilized, included or incorporated therein in connection therewith, except to such periodthe extent that any of the foregoing arise from (i) the bad faith, other than gross negligence or willful and intentional misconduct of, or material breach of this Agreement by, Sellers, the Company or any of its Subsidiaries, as applicable or (ii) information provided by Section 5.05(a)(ii) the Company or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestits Subsidiaries.
(b) Notwithstanding anything The Seller shall or shall cause the Company to supplement the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation Required Information on a reasonably current basis to the extent that it would (1) require the Company to pay any commitment or other feessuch Required Information, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business knowledge of Sellers or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, contains any material misstatement of the Company Subsidiaries fact or omits to state any of their respective boards of directors (or equivalent bodies) material fact necessary to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating make such information not materially misleading with regard to the Financing shall be effective until the ClosingAcquired Company only.
(c) Parent shall (i) promptly upon request by The Company hereby consents to the Company, reimburse the Company for reasonable use of all of its fees logos, names, and expenses (including fees and expenses of counsel and accountants) incurred by trademarks in connection with the Company, Debt Financing or any high yield bond being issued in lieu of the Company SubsidiariesDebt Financing, any of its or their Representatives and in connection with any cooperation contemplated by this Section 5.05 Parent SEC Filing; provided, that such logos, names and (ii) indemnify and hold harmless trademarks shall be used solely in a manner that is not intended or reasonably likely to harm or disparage the Company, the Company Subsidiaries and or its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) reputation or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithgoodwill.
Appears in 1 contract
Sources: Interest Purchase Agreement (Nci Building Systems Inc)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall cooperate, and shall cause its Subsidiaries to cooperate, and shall use its and their reasonable best efforts to cause their respective Representatives to cooperate with Parent in connection with (without duplication under Sections 6.17(b) and (c)) (x) seeking and negotiating, as applicable and as directed by Parent, waivers, consents or amendments to existing contracts, agreements and other arrangements pursuant to which the Company or its Affiliates as Subsidiaries has or guarantees Indebtedness for borrowed money (in each case, in form and substance reasonably satisfactory to Parent in its sole discretion), and (y) if and when requested by Parent in writing, at Parent’s sole cost and expense, the arrangement of additional or alternative Indebtedness, or the assumption and modification of Existing Indebtedness, for borrowed money in connection with Parent’s arrangement the consummation of the Financing transactions contemplated hereby (whichclause (x) and (y) together, solely for purposes of this Section 5.05the “Debt Financing”), shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
including (i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank a reasonable number of meetings, conference calls, presentations, and due diligence sessionssessions with prospective financing sources, meetings (ii) furnishing Parent, its Representatives and its financing sources on a confidential basis as promptly as reasonably practicable with ratings agencies financial and road showsother pertinent information regarding the Company and its Subsidiaries and any of their respective assets, reasonable assistance liabilities and properties as may be reasonably requested by Parent, (iii) assisting Parent, its Representatives and its financing sources in the preparation and execution of confidential (A) bank information memoranda, private placement memorandaconfirmations, prospectusescertifications and undertakings and authorization letters (including with respect to the presence or absence of material non-public information and the accuracy of the information contained therein) relating to the Debt Financing, and (B) materials for lender presentations relating to the Debt Financing, (iv) reasonably cooperating with the marketing efforts of Parent, its Representatives and similar its financing sources for any Debt Financing to be raised by Parent, (v) providing and executing documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities Financing; provided that no obligation of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger Company or any alternative financing thereforof its Subsidiaries under any such document shall be effective until the Closing, and provide customary management letters in connection with (vi) to the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably extent requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within at least five (5) Business Days following written requestprior to the Closing Date, such providing and executing all documentation and other information as any Financing Party may reasonably determine is required by bank regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT USA Patriot Act. provided, further, that nothing and (vii) cooperating in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere connection with the ongoing business assumption, repayment or operations discharge of the Company or the Company Subsidiaries, (3) require any Indebtedness of the Company or any of its Subsidiaries, including the Company Subsidiaries to enter into timely delivery of assumption, payoff or approve similar notices under any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any Existing Indebtedness for borrowed money of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financingits Subsidiaries as reasonably requested by Parent. Parent shall, and (ii) no actionat Closing or, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Companyif Closing does not timely occur, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) reasonable out-of-pocket costs incurred by the Company, any of the Company Subsidiaries, any of its or Subsidiaries and their respective Representatives in connection with any cooperation contemplated by this Section 5.05 such cooperation. Parent and (ii) Merger Sub shall, on a joint and several basis, indemnify and hold harmless the Company, its Subsidiaries and their respective Representatives from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by them in connection with the Debt Financing (including, for the avoidance of doubt, the matters contemplated by Section 6.17(b) and 6.17(c)) and any information utilized in connection therewith (other than historical information relating to the Company or its Subsidiaries). Notwithstanding anything in this Agreement to the contrary, until the Closing occurs, none of the Company or its directors, officers, managers, members, employees, stockholders, representatives and Affiliates shall (1) be required to pay any commitment, consent or other similar fee (other than as are payable by the Company and are contingent upon the Closing or which are concurrently reimbursed by Parent and Merger Sub), (2) incur any additional liability or obligation under the Debt Financing, any loan agreement or any related document or any other agreement or document related to the Debt Financing (other than as set forth in clause (iii) above with respect to customary authorization letters), (3) be required to take any action that would reasonably be expected to (a) conflict with or violate their respective certificate of incorporation, by-laws or comparable organizational documents or any Laws, orders or the contracts governing their respective Existing Indebtedness or result in the contravention of, or that could reasonably be expected to result in a violation or breach of, or default under, any Existing Indebtedness or any Joint Venture Organizational Documents (provided, for the avoidance of doubt, the Company shall seek the consent of the parties to any such contracts governing Existing Indebtedness or any Joint Venture Organizational Documents as requested by Parent) or (b) unreasonably and materially disrupt the ordinary conduct of the business or operations of the Company or its Subsidiaries, (4) be required to incur any liability in connection with the Debt Financing (other than pursuant to the Existing Indebtedness) or (5) be required to (a) pass resolutions or consents, approve or authorize the execution of, or execute any document, agreement, certificate or instrument or take any other corporate action with respect to the Debt Financing that is not contingent on the Closing or that would be effective prior to the Effective Time or (b) provide or cause its legal counsel to provide any legal opinions. The Company hereby (x) consents to the use of the Company’s and its Subsidiaries’ logos in connection with the Debt Financing; provided that such logos are used in a manner that is not intended to nor reasonably likely to harm or disparage the Company or its Subsidiaries and (y) expressly authorizes the use of the financial statements and other information to be provided pursuant to this Section 6.17(a) on a confidential basis so long as the recipients thereof have agreed to customary confidentiality arrangements.
(b) With respect to the 8.500% Senior Secured Notes due 2022 (the “Senior Secured Notes”) of the Company, if reasonably requested by Parent or Merger Sub in writing, and at the sole cost and expense of Parent, and solely to the extent permitted by the indenture governing the Senior Secured Notes, the Company shall use its reasonable best efforts to (i) issue a notice of redemption at least 30 days but not more than 60 days before the redemption date agreed with Parent for all of the outstanding aggregate principal amount of the Senior Secured Notes pursuant to the requisite provisions of the indenture applicable thereto and (ii) take any actions reasonably requested by Parent (which shall not require any payment by the Company or its Subsidiaries) that are customary or necessary to facilitate the redemption and/or satisfaction and discharge of such series pursuant to the applicable section of the indenture applicable thereto, and shall redeem and/or satisfy and discharge, as applicable, the Senior Secured Notes in accordance with the indenture applicable thereto at the Effective Time; provided, that any such redemption and/or satisfaction and discharge must be conditioned on the occurrence of the Closing and shall only be conducted in compliance with the indenture applicable thereto and applicable securities Laws. Notwithstanding the foregoing, the Company shall not be obligated to prepare any valuation of the collateral securing the Senior Secured Notes and any opinion of counsel requirement to be delivered after the Closing shall be delivered by Parent.
(c) As soon as reasonably practicable after the receipt of any written request by Parent or Merger Sub to do so, the Company shall use its reasonable best efforts to effect amendments and/or commence consent solicitations related to the 3.75% Convertible Senior Notes of the Company regarding the note holders’ conversion and repurchase rights and timing with respect thereto and the payment of any fee or change in interest rate in consideration therefor on such terms and conditions that are specified and requested, from time to time, by Parent (each a “Convertible Notes Amendment”) and Parent shall assist the Company in connection therewith (including entering into, and causing the entering into by the trustee, of supplemental indentures related thereto); provided that (i) Parent shall only request the Company to conduct any Convertible Notes Amendment in compliance with the indenture applicable thereto and applicable securities Laws, (ii) any supplemental indentures in accordance herewith shall become operative only concurrently with the Closing; and (iii) the Company shall not be obligated to enter into any supplemental indenture related to a Convertible Notes Amendment if, in consultation with its counsel, the Company reasonably determines that (x) such Convertible Notes Amendment requires the consent of all note holders and such consent has not been obtained or (y) such amendment violates applicable securities Laws.
(d) Upon the reasonable request of Parent at any time prior to the Closing and at the sole cost and expense of Parent, the Company shall, and shall cause its Subsidiaries to, use reasonable best efforts to, and shall use reasonable best efforts to cause its and their respective Representatives against any claimto, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees take all reasonably requested actions necessary to assist Parent and expenses of counsel and accountants) its respective Affiliates in preparing all filings or settlement payment incurred as a result of, other reports required to be made by Parent or such Affiliate with applicable Governmental Entities in connection with, such cooperation or with the Financing Merger and any information used the other transactions contemplated by this Agreement and to cooperate reasonably with Parent and its respective Affiliates in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentAcceptance Time, the Company will and its Subsidiaries shall, and shall use its reasonable best efforts to cooperate with cause their officers, employees, consultants and advisors, including legal and accounting advisors to, provide to Parent and its Affiliates such cooperation as may be reasonably requested by Parent in connection with Parent’s arrangement of obtaining any third party debt or equity financing for the Financing (which, solely for purposes of this Section 5.05financing the Offer and/or the Merger, shall include any alternative equity or debt capital markets financings the fees and expenses incurred in connection therewith, and the other transactions contemplated by thereby (the Debt Letters“Financing”). Such cooperation will include using reasonable best efforts to:
, including (i) make appropriate officers reasonably available, with appropriate advance notice, for participation participating in bank a reasonable number of meetings, presentations, and due diligence sessions, meetings sessions at times reasonably coordinated in advance thereof and (ii) assisting with ratings agencies and road shows, reasonable assistance in the preparation of confidential information materials for presentations, memoranda, private placement memoranda, prospectuses, presentations financial projections and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required used in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that (x) nothing in this Agreement herein shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) interfere materially and unreasonably with the business or operations of the Company and its Subsidiaries, taken as a whole, or (2) require the Company to agree to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities liability or give any indemnities prior to the Closing, Acceptance Time for which it is not promptly reimbursed or simultaneously indemnified and (2y) unreasonably interfere with the ongoing business or operations of any documentation executed by the Company or the Company Subsidiaries, (3) require the Company or of any of the Company its Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be not become effective until the consummation of the Closing.
(c) . Parent shall (i1) promptly upon request by the Company, reimburse the Company for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountantsreasonable attorney’s fees) incurred by the Company, any of the Company Subsidiaries, or any of its or their Representatives Subsidiaries in connection with any cooperation providing the assistance contemplated by this Section 5.05 6.13 and (ii2) indemnify and hold harmless the Company, the Company and its Subsidiaries and its and their Representatives respective directors, officers, personnel and advisors (collectively, the “Financing Indemnitees”) from and against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgment, award, penalty, fine, Tax, cost expenses (including cost of investigationreasonable attorney’s fees), expense (including fees awards, judgments and expenses penalties suffered or incurred by any of counsel and accountants) them in connection with the Financing or settlement payment incurred as a result providing the assistance contemplated by this Section 6.13, in each case other than to the extent any of the foregoing arises from the bad faith, gross negligence or willful misconduct of, or breach of this Agreement by any Financing Indemnitee (the obligations of Parent in this clause (2), the “Financing Cooperation Indemnity”). The Financing Cooperation Indemnity shall survive the consummation of the Merger and any termination of this Agreement.
(b) The Company shall use reasonable best efforts to deliver to Parent and Merger Sub at least three (3) Business Days’ prior to the Acceptance Time, but in no event later than two (2) Business Days before the Acceptance Time, a payoff letter with respect to the Credit Agreement, dated October 31, 2013, among the Company, certain of the Company’s Subsidiaries and PDL BioPharma, Inc. (as amended, supplemented, or otherwise modified from time to time, the “Existing Loan Agreement”), which payoff letter shall substantially provide (subject to customary exceptions) (x) that upon receipt of the payoff amount set forth in the payoff letter at or prior to the Effective Time, the respective indebtedness incurred thereunder and related instruments shall be terminated and (y) that all Liens (and guarantees), if any, in connection withtherewith relating to the assets, rights and properties of the Company securing such cooperation Indebtedness, shall be, upon the payment of the amount set forth in the payoff letter at or prior to the Financing Effective Time (and, if applicable, providing for letters of credit or cash collateral) be released and terminated. At or prior to the Effective Time (but subject to the Effective Time occurring), the Company shall pay off all amounts outstanding (including related fees and expenses) under the Existing Loan Agreement (up to the extent of cash available to the Company at such time).
(c) At the request of the Parent, the Company shall cooperate with Parent to effect the payment of the promissory note, dated August 18, 2014, issued by the Company to Pfizer, Inc. (the “Pfizer Note”); provided, that any information used payment by the Company or any of its Subsidiaries in connection therewithrespect of the Pfizer Note (i) shall be conditioned on the occurrence of the Effective Time and (ii) shall be limited to the extent of cash available to the Company at such time.
Appears in 1 contract
Sources: Agreement and Plan of Merger (Durata Therapeutics, Inc.)
Financing Cooperation. (a) From During the date hereof until Interim Period, upon the Closing request of Buyer, Sellers shall, and shall use commercially reasonable efforts to cause their Representatives to, cooperate reasonably in connection with the Financing (or so long as such requested cooperation does not unreasonably interfere with the earlier termination conduct of this Agreement pursuant to Section 8.01the business of the Sellers), subject including any offering of securities, requested repayment or refinancing of Indebtedness of Buyer and any SEC filing to the limitations set forth in this Section 5.05be made by Buyer, and unless otherwise agreed by Parentincluding, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as applicable, by: (i) providing Required Information reasonably requested by Parent Buyer or its Financing Sources to the extent in connection with ParentSellers’ possession, or obtainable by Sellers; (ii) assisting at Buyer’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance sole expense in the preparation of confidential information SEC filings to be made by Buyer, offering memoranda, private placement memoranda, prospectuses, bank confidential information memoranda, rating agency presentations and similar documents as may be reasonably requested by Parent or any Financing Partydocuments, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
Offering Documents”); (iii) request that the Company’s independent (A) using reasonable commercial efforts to cause any accountants participate retained by Sellers to cooperate with Buyer, including by participating in drafting sessions and accounting due diligence sessions sessions, obtaining the consent of, and cooperate with the Financing customary comfort letters from, such accountants (including as set forth in the Debt Letters as in effect on the date of this Agreementby providing customary management letters and requesting legal letters to obtain such consent) or in connection with a customary any securities offering by Buyer if reasonably necessary or desirable for Buyer’s use of securitiesSellers’ or its Subsidiaries’ financial statements, (B) using reasonable commercial efforts to cause any independent reservoir engineers retained by Sellers to cooperate with Buyer, including by participating in drafting sessions and reservoir engineer due diligence sessions, obtaining the type described in the Commitment Letterconsent of, consistent with their and customary practice, including requesting that they provide customary consents and comfort letters from, such engineers (including “negative assurance” comfort)including, including if necessary, by providing customary management letters and requesting legal letters to obtain such consent) in respect connection with any securities offering by Buyer if reasonably necessary or desirable for Buyer’s use of historical financial statements of Sellers’ or its Subsidiaries’ reserve reports, (C) cooperating with the Company, to the extent required Buyer’s or other relevant independent reservoir engineers in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations drafting of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management comfort letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel independent engineers may be required to deliver in connection with such Financing; any securities offering and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Sources: Asset Purchase and Sale Agreement (PDC Energy, Inc.)
Financing Cooperation. (a) From The Stockholders agree to cause the date hereof until Companies and the Closing (or Company Subsidiaries, as applicable, to, cooperate with Acquiror, at Acquiror’s sole cost, in connection with Acquiror’s financing of the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth transactions contemplated in this Section 5.05Agreement, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates all as reasonably requested by Parent Acquiror, and in connection each case provided that such requested cooperation does not interfere in any material respect with Parent’s arrangement the Stockholders’ efforts to prepare for Closing or with the ongoing operations of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by Companies and the Debt Letters)Company Subsidiaries. Such cooperation will include using reasonable best efforts to:
may include, among other things, (iA) make appropriate officers reasonably availableparticipating in meetings, with appropriate advance noticepresentations, for participation in bank meetingsroad shows, drafting sessions, due diligence sessionssessions and sessions with rating agencies, meetings (B) furnishing Acquiror and its financing sources with ratings agencies financial and road showsother pertinent information regarding the Companies and the Company Subsidiaries as may be reasonably requested by Acquiror, reasonable assistance (C) cooperating with Acquiror and its financing sources in their activities relating to the preparation of confidential information memorandaany offering document for any such financing to be raised to complete the transactions contemplated hereby, private placement memorandamaterials for rating agency presentations, prospectusesand any similar documents, presentations and similar (D) forming, effective at Closing, or as promptly as practicable prior to Closing, additional entities to serve as direct and/or indirect Subsidiaries of any of the Companies or Designated Subsidiaries, (E) executing documents as may be reasonably requested by Parent Acquiror, provided that such agreements are not effective until concurrent with or immediately following Closing and do not and will not result in any actual or potential liability to any of the Stockholders, Management Holdco or any Financing Party, in each case, with respect to information relating to of the Company and its Management Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
foregoing entities’ Affiliates (ii) furnish Parent other than the Companies and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden Designated Subsidiaries), (with any cost thereof to be promptly reimbursed by ParentF) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amendedrequesting, and identify using commercially reasonable efforts, at Acquiror’s sole cost and expense, to obtain, estoppel certificates from landlords and other third parties (it being understood and agreed by Acquiror that receipt of any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date requested estoppel certificates is not a condition of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfortClosing), including in respect of historical financial statements of the Company, to the extent required and (G) cooperating with Acquiror’s efforts in connection with the marketing repayment or defeasance of any indebtedness of the Companies or any of the Designated Subsidiaries as of the Closing, including delivering (and/or revoking if not prohibited by terms of the applicable agreement) such payoff, defeasance or similar notices under any existing mortgage or mezzanine loans of the Companies or any Designated Subsidiary as reasonably requested by Acquiror (it being understood and syndication agreed, by Acquiror, that if the Companies and Company Subsidiaries deliver any such notice and Acquiror subsequently fails to repay, defease or take whatever other action was required as a result of Financing (including as set forth in the Debt Letters as in effect on notice having been given, within the date timeframe therefor under the relevant documents, and the failure was not caused by a breach by the Stockholders of any material obligation required of any of them pursuant to the terms of this Agreement) or as are customarily required in an underwritten offering of securities , then Acquiror will indemnify the Stockholders, the Companies and the Company Subsidiaries from and against all fees, costs and expenses resulting from the giving of the type described in notice and/or the Debt Lettersfailure to act, and, if the underlying loan obligation becomes due and payable prior to its scheduled maturity Acquiror further will provide or as may otherwise be required pursuant arrange for, at Acquiror’s sole cost, substitute financing on terms no less favorable to applicable Law the Stockholders and the Companies and the Company Subsidiaries and Management Holdco and its Subsidiaries. Acquiror confirms that none of the Stockholders or the rules or regulations of any national securities exchange in connection with the Merger Companies or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may Company Subsidiary shall be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions incur or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feessimilar fee or incur or pay any other cost or expense not reimbursable by Acquiror hereunder, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere liability in connection with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company such financing or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Companyforegoing. Acquiror shall, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the CompanyStockholders, reimburse the Company Stockholders for all of its reasonable out-of-pocket costs, including professional fees and expenses (including fees and expenses of counsel and accountants) expenses, incurred by the Company, any of the Company Subsidiaries, any of its or Stockholders and their Representatives representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) such cooperation. Acquiror shall indemnify and hold harmless the CompanyStockholders and their representatives from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by them in connection with the arrangement of any repayment, defeasance or replacement financing and the other activities described above. Notwithstanding anything herein to the contrary, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigationlimitations set forth in Section 6 shall not apply to Acquiror’s obligations under this Section 5(a)(vii), expense (including fees and expenses Acquiror’s obligations under this Section 5(a)(vii) shall survive a termination of counsel and accountants) or settlement payment incurred as a result ofthis Agreement. For purposes of clarity, or in connection withnotwithstanding anything to the contrary herein, such cooperation or Acquiror agrees that its obligation to consummate the Financing and transactions contemplated hereby is not subject to any information used in connection therewithcondition relating to financing.
Appears in 1 contract
Sources: Merger Agreement (Ventas Inc)
Financing Cooperation. Without limiting the generality of Section 7.02 or Section 7.05, and to assist the Parent in its financing efforts, the Company agrees to reasonably cooperate with the arrangement of the Financing, including by (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant preparing and providing to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates Financing Sources, as promptly as reasonably requested by Parent in connection with practicable after Parent’s arrangement of the Financing (whichwritten request therefor, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers all customary and reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies available financial and road shows, reasonable assistance in the preparation of confidential other information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and each of its Subsidiaries which is prepared and the transactions contemplated hereby and by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar Financing, including, to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with extent as would be required by Rule 3-05 and Article 11 of Regulation S-X to be filed on a Form 8-K by Parent, regardless of the timing of such filing, (i) audited consolidated annual financial statements of the Company and (ii) unaudited interim consolidated financial statements of the Company (which shall have been reviewed by the independent accountants for the Company as provided in Statement on Auditing Standards No. 100), (b) providing as promptly as reasonably practicable after Parent’s written request therefor any information reasonably necessary to assist Parent with the preparation of customary pro forma financial statements that meet the requirements of Regulation S-X and all other applicable accounting rules and regulations of the SEC promulgated thereunder and required to be included in a Registration Statement on Form S-3 under the Securities 1933 Act of 1933, as amended, or reasonably and identify customarily required by the Financing Sources to be included in any such financial information as suitable offering documents for distribution the Financing and (c) using commercially reasonable efforts to “public side” lenders;
(iii) request that cause the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and to cooperate with the Financing (including as set forth Sources in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, manner consistent with their customary practice, including requesting that they practice and to participate in customary auditor due diligence calls and provide customary consents and accountants’ “comfort letters” (including customary “negative assurances”) (it being understood that the comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required delivered in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date Company’s public offerings shall be deemed to be customary for purposes of this AgreementSection 7.06) or as are customarily required in an underwritten offering and customary consents to the inclusion of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange audit reports in connection with the Merger Financing if historical financial statements or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel other financial information of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or are included in any certificate as to solvency or any other certificate necessary offering documents for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Sources: Merger Agreement (AdvancePierre Foods Holdings, Inc.)
Financing Cooperation. (a) From the date hereof until Prior to the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentDate, the Company will shall provide to Parent, and shall cause each of its Subsidiaries to provide, and shall use its commercially reasonable best efforts to cooperate with Parent and cause its Affiliates as Representatives to provide, on a timely basis, all cooperation reasonably requested by Parent in connection with Parent’s arrangement of the Financing (whichFinancing, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
including (i) make appropriate officers furnishing Parent the Required Information, (ii) furnishing Parent, as promptly as reasonably availablepracticable following Parent’s request, with appropriate advance noticesuch pertinent and customary information (other than the Required Information, for participation in bank meetingswhich is covered by clause (i) above), due diligence sessions, meetings with ratings agencies regarding the Company and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents its Subsidiaries as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for consummate the arrangement and syndication borrowings of financings similar to loans and offerings of debt securities contemplated by the Financing committed pursuant to the Debt LettersFinancing, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationsregulations (including the Patriot Act), (iii) participating in a reasonable number of meetings (including without limitation customary one-on-one meetings with the PATRIOT Act. providedparties acting as lead arrangers, furthermanagers, that nothing bookrunners, agents or in this Agreement shall require similar capacities for, and prospective lenders and Parents of debt securities to be offered in, the Company to cause Financing and management and Representatives, with appropriate seniority and expertise, of the delivery Company), presentations, road shows, due diligence sessions, drafting sessions and sessions with rating agencies, and reasonably cooperating with the marketing efforts of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for Parent and their Financing Sources, in each case in connection with the Financing, other than as provided including by Section 5.05(a)(iii)consenting to the use of the Company’s and its Subsidiaries’ logos in connection therewith, (2iv) any assisting with the timely preparation of materials for rating agency and lender presentations, offering documents, bank information memoranda, private placement memoranda, prospectuses and similar documents required in connection with the Financing and cooperating in the preparation of pro forma financial information for any periodthe Merger, including any audited financial information (v) obtaining accountants’ comfort letters, consents and legal opinions reasonably requested by Parent, (vi) taking all corporate actions, subject to the occurrence of the Closing, reasonably requested by Parent to permit the consummation of the Financing and the execution and delivery of the documents related to the Financing, (vii) in connection with the Financing or any financial bridge loan or securities offering in connection therewith, providing customary authorization letters to the Financing Sources authorizing the distribution of information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by related to the Company with respect and its Subsidiaries to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to prospective lenders and containing a month or fiscal period representation that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date public side versions of such request.
documents, if any, do not include material non-public information regarding the Company or any of its Subsidiaries or their securities, (bviii) Notwithstanding anything to cooperating reasonably with the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation due diligence of the Financing Sources, to the extent that it would customary and reasonable and to the extent not unreasonably interfering with the business of the Company, and using commercially reasonable efforts to obtain the participation of its accountants in a reasonable number of accounting due diligence sessions, (1ix) require co-operating with Parent in Parent’s efforts to obtain corporate, index, debt securities and/or facilities ratings and (x) facilitating the granting or pledging of collateral under Parent’s existing or future credit facilities including assisting Parent in obtaining surveys, estoppels and memoranda of lease from landlords, SNDAs and title insurance (including delivering GAP indemnities and owner’s affidavits to the title company) as reasonably requested by Parent and its lenders; provided, however, that, no obligation of the Company or any of its Subsidiaries under any agreement, certificate, document or instrument (other than the authorization letters referred to above) shall be effective until the Closing and, none of the Company or any of its Subsidiaries or Representatives shall be required to pay any commitment or other fees, reimburse any expenses fee or otherwise incur any liabilities or give any indemnities other Liability in connection with the Financing prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to . If the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or does not occur, Parent shall, within thirty (430) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon days following written request by the Company, reimburse the Company for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees reasonable and expenses of counsel and accountantsdocumented attorneys’ fees) incurred by the Company, Company or any of its Subsidiaries in connection with the cooperation of the Company Subsidiaries, any of and its or their Representatives in connection with any cooperation Subsidiaries contemplated by this Section 5.05 4.8. The Company shall, and (ii) indemnify and hold harmless the Companyshall cause its Subsidiaries to, supplement any information supplied in writing by or on behalf of the Company or any of its Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as to Parent on a result of, or in connection with, reasonably current basis to ensure that such cooperation or the Financing and any information used in connection therewithis Compliant.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, the Sellers shall provide, and unless otherwise agreed by Parentshall cause their respective Subsidiaries to, the Company will and shall use its commercially reasonable best efforts to cooperate with Parent cause their respective Representatives, including legal and its Affiliates as accounting, to, provide all cooperation reasonably requested by Parent in connection with Parent’s arrangement of the Buyer or any financing source providing the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing Financing, including, without limitation (i) furnishing the Buyer and syndication of its financing sources with readily-available historical financial and other pertinent information used by the Buyer to consummate the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange other financing transaction executed in connection with the Merger transactions contemplated hereby, (ii) delivering to the Title Company the Non-Imputation Affidavit and all other items reasonably requested by the Buyer or any alternative the Title Company in order to facilitate the issuance of customary lender’s policies of title insurance in form and substance satisfactory to the applicable financing thereforsource, (iii) taking such actions as are reasonably and provide customary management letters customarily undertaken by sellers of real estate to mitigate mortgage recording or similar taxes such as requesting the lender under the Existing Loans to assign over existing mortgages to Buyer’s lender, as described in connection with the foregoing;
Article XV of this Agreement, (iv) furnish to legal counsel of Parent providing such information, documents and to legal counsel of any Financing Party such information as may be certificates reasonably requested by such counsel the Buyer customary in connection with any legal opinion that such counsel may be required debt financings of transactions similar to deliver in connection with such Financing; and
the transactions contemplated by this Agreement, (v) furnish Parent and effective as of the Closing, forming, at Buyer’s expense, one or more special-purpose Subsidiaries that are directly or indirectly wholly-owned by CIR III to serve as borrowers under the Financing Parties(the “Financing Subs”) and (vi) transferring title, within five (5) Business Days following written requestat Buyer’s expense, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date CIR III Properties to one or more of such requestthe Financing Subs, which transfer the Parties acknowledge is intended to be effectuated on the Closing Date (but immediately subsequent to the transfer of the CIR III Shares to Buyer) as part of the closing escrow arrangement contemplated hereunder.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): herein, (i) nothing in this Agreement (including this Section 5.05) neither the Sellers nor any of their respective Subsidiaries shall require any such cooperation to the extent that it would (1) require the Company be required to pay any commitment or other feesfee in connection with the Financing, reimburse (ii) neither the Seller nor any expenses or otherwise incur any liabilities or give any indemnities of their respective Subsidiaries shall be required to incur, and none of them shall have, prior to the Closing, any liability or obligation under any loan agreement or any related document or any other agreement or document or contract related to the Financing, (2iii) unreasonably interfere with the ongoing business or operations pre-Closing directors of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries Sellers or any of their respective boards of directors Subsidiaries shall not be required to adopt resolutions approving the contracts, agreements, documents and instruments pursuant to which the Financing is obtained, (or equivalent bodiesiv) to approve or authorize neither the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or Sellers nor any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing Subsidiaries shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Companyrequired to execute any definitive financing documents, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Companyany credit or other agreements, any of the Company Subsidiariespledge or security documents, any of its or their Representatives other certificates, legal opinions or documents in connection with any cooperation contemplated by this Section 5.05 the Financing and (iiv) indemnify and hold harmless neither the Company, Sellers nor any of their respective Subsidiaries shall be required to take any action that would violate its respective Organizational Documents or any Laws or that would result in the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result contravention of, or that would reasonably be expected to result in connection witha violation or breach of, or a default under, any Contract to which any such cooperation or the Financing and any information used in connection therewithPerson is a party.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof of this Agreement until the earlier of the Closing (or Date and the earlier valid termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parentaccordance with Article VII, the Company will agrees to, and shall cause its Subsidiaries and their respective Representatives to, use its reasonable best efforts to cooperate with Parent provide all reasonable and its Affiliates as customary cooperation that may be reasonably requested by Parent in connection with Parent’s arrangement arranging, obtaining and consummating any Financing. Without limiting the generality of the Financing (whichforegoing, solely for purposes of this Section 5.05, such cooperation shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts toinclude:
(i) make as promptly as reasonably practicable (A) furnishing Parent with the Required Information, which shall be Compliant, and other information regarding the Company and its Subsidiaries that is reasonably required by Parent to consummate any Financing, and (B) informing Parent if a restatement of any financial statements (included in the Required Information or otherwise) is probable or under active consideration in order for such financial statements to comply with GAAP;
(ii) at reasonable times and upon reasonable advance notice by Parent, causing appropriate officers reasonably availablemembers of the Company’s management team to participate in a reasonable number of meetings, with appropriate advance noticeconference calls, for participation in bank meetingsroad shows, presentations, due diligence sessions (including accounting due diligence sessions), meetings and sessions with ratings rating agencies and road showsprospective financing sources;
(iii) reasonably assisting Parent and the Debt Financing Sources with, and furnishing Parent with reasonable assistance in information and materials with respect to the Company to be used in, the preparation of confidential customary (A) materials for rating agency presentations and (B) bank information memoranda, private placement memorandalender presentations, prospectusesinvestor presentations, presentations road show presentations, and similar documents customary documents, in each case, as may be reasonably required by Parent for consummation of any Financing;
(iv) reasonably assisting Parent with, and furnishing Parent with reasonable information and materials with respect to the Company to be used in, the preparation of pro forma financial information and pro forma financial statements reflecting the transactions contemplated hereby and any Financing, to the extent necessary or reasonably requested by Parent or the Debt Financing Sources to be included in any Financing Partymarketing materials of the type required in connection with any Financing, it being agreed that Parent shall be responsible for the preparation of any such pro forma financial statements, pro forma financial information and marketing materials;
(v) exercising reasonable best efforts to cause (including providing any customary representation letters requested by the Company’s independent auditors) the Company’s independent auditors (A) to participate, consistent with customary practice, in each casedrafting sessions and due diligence session with Parent and the Debt Financing Sources, (B) to provide, consistent with customary practice, customary auditors consents (including consents of accountants for use of their reports in any materials relating to any Financing) and (C) to provide, consistent with customary practice, customary “comfort” letters (including “negative assurance” comfort and change period comfort) as reasonably requested by the Debt Financing Sources with respect to financial information relating to the Company and its Subsidiaries included in connection with customary marketing efforts of Parent and its Affiliates the offering documentation for all or any portion of the Financing;
(iivi) furnish subject in all respects to clause (b)(iv) below, promptly executing and delivering to Parent and the Debt Financing Parties with copies of such financial data Sources at least five (5) Business Days prior to the Closing Date all documentation and other information with respect to the Company and its Subsidiaries which that is prepared required by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Debt Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or Sources in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Companyconsummating any Financing, to the extent required in connection comply with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. provided, further, and the requirements of 31 C.F.R. §1010.230 and that nothing in this Agreement shall require has been requested of the Company by or on behalf of Parent at least eight (8) Business Days prior to cause the delivery Closing Date;
(vii) subject in all respects to clause (b)(iv) below, executing and delivering as of (1) legal opinions or reliance letters or the Closing Date customary closing documents and any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company definitive financing documents with respect to such periodany Financing (including any credit agreements, currency or interest rate hedging arrangements, guarantees, pledge agreements, security agreements, mortgages, deeds of trust and other than security documents and other certificates, documents and instruments relating to guarantees, the pledge of collateral and other matters ancillary to any Financing as provided by Section 5.05(a)(iimay be required in connection with the consummation of any Financing);
(viii) or subject in all respects to clause (3b)(iv) below, reasonably assisting in facilitating the pledging of collateral and the granting of security interests in respect of any financial information with respect Financing (including using reasonable best efforts to a month or fiscal period that has not yet ended or has ended less than 40 days (ordeliver any original stock certificates and related powers and any original promissory notes and related powers, in each case, subject to any applicable grace periods to be set forth in the case applicable Definitive Debt Financing Agreement);
(ix) cooperating with the reasonable due diligence requests of a fiscal year, 60 daysany Debt Financing Source and providing reasonable access to documents and other information in connection with customary due diligence investigations;
(x) prior providing customary authorization letters to the date Debt Financing Sources authorizing the distribution of information to prospective lenders or investors and containing a customary representation to the Debt Financing Sources, including that the public side versions of such requestdocuments do not include material non-public information about the Company or its Subsidiaries or their securities and as to the accuracy of the information contained in the disclosure and marketing materials related to any Financing; and
(xi) cooperating in connection with obtaining customary payoff and related releases in respect of any Payoff Indebtedness (to the extent not provided pursuant to Section 5.24).
(b) Notwithstanding anything in this Section to the contrary contained in this Agreement (including this Section 5.05): contrary:
(i) such requested cooperation shall not unreasonably disrupt or interfere with the business or the operations of the Company or its Subsidiaries;
(ii) nothing in this Agreement (including this Section 5.05) shall require cooperation of the Company, any such cooperation of its Subsidiaries, controlled Affiliates or representatives to the extent that it would (1A) require subject any of the Company’s or its Subsidiaries’ respective directors, managers, officers or employees to any personal liability (as opposed to liability in his or her capacity as a director, manager, officer or employee of such person), (B) reasonably be expected to conflict with, violate or result in a default or breach under the Company’s or its Subsidiaries’ Organizational Documents, any applicable material Law or material binding agreements or (C) cause any condition to the consummation of the Closing set forth in Article VI not to be satisfied (or materially less likely to be satisfied);
(iii) prior to the Closing Date, neither the Company nor any of its Subsidiaries shall be required to pay any commitment or other fees, reimburse any expenses similar fee or otherwise incur any liabilities other expense, liability or give obligation or make any indemnities prior other payment or agree to the Closingprovide any indemnity in connection with any Financing, (2) unreasonably interfere with the ongoing business in each case, that has not been or operations will not be reimbursed or indemnified by Parent or those that will only be effective as of the Company or the Company Subsidiaries, Effective Time;
(3iv) require the Company or any none of the Company Company, its Subsidiaries or their respective directors, officers or employees shall be required to execute, deliver or enter into into, or approve perform any agreement agreement, document, certificate or other documentation effective prior instrument, including any Definitive Debt Financing Agreement, with respect to any Financing that is not contingent upon the consummation of the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing Date (other than representation letters and authorization letters referred to above) and none of the directors and officers of the Company or the Company’s Subsidiaries shall be required to adopt resolutions approving the agreements, documents and instruments pursuant to which any Financing is obtained prior to the Closing Date unless Parent shall have determined that such directors and officers are to remain as directors and officers of the Company or the Company’s Subsidiaries on and after the Closing Date and such resolutions are contingent upon the occurrence of, or only effective as of, the Closing Date; and
(v) nothing in this Section shall oblige the Company to provide any information which (A) would result in the loss or waiver of any attorney-client privilege of the Company or any of its Subsidiaries or (4B) require would contravene any applicable Law, rule, regulation or order (provided, that the Company shall use reasonable best efforts to make substitute arrangements or permit such disclosure in a manner that would not result in the loss or waiver of any such attorney-client privilege).
(c) The Company hereby consents to the use of its and its Subsidiaries’ logos in connection with any Financing; provided, that such logos are used solely in a manner that is not intended to harm or disparage the Company or its Subsidiaries in any respect.
(d) The Company agrees to (i) file all reports on Form 10-K and Form 10-Q and, to the extent required to include financial information pursuant to Item 9.01 thereof, Form 8-K in accordance with the time periods required by the Exchange Act and (ii) use reasonable best efforts to file all other Forms 8-K, in each case, required to be filed with the Securities and Exchange Commission pursuant to the Exchange Act prior to the Closing Date. In addition, to the extent necessary to arrange, obtain or consummate any Financing, and subject to the limitations set forth in this Section, if, in connection with any marketing materials or disclosure related to any Financing, Parent reasonably requests the Company to file a Form 8-K pursuant to the Exchange Act that contains material non-public information with respect to the Company or its Subsidiaries or their securities, which information Parent determines upon advice from its Debt Financing Sources (and the Company does not reasonably object after being provided a reasonable opportunity to review and comment) to include in marketing materials for any Financing, then the Company shall file such Form 8-K.
(e) Parent shall indemnify, defend and hold harmless each of the Company and its Subsidiaries from and against any and all liabilities, losses, damages, claims, costs and expenses suffered or incurred by them in connection with their cooperation in arranging any Financing and the performance of their respective obligations under this Section and the provision of any information utilized in connection therewith (other than information provided by or on behalf of the Company or any of its Subsidiaries), in each case, other than to the extent any of the foregoing was suffered or incurred as a result of the bad faith, gross negligence or willful misconduct of, or material breach of this Agreement by, the Company, any of the Company its Subsidiaries or any of their respective boards representatives (as determined by a court of directors (or equivalent bodies) to approve or authorize the Financingcompetent jurisdiction in a final and non-appealable judgment). Parent shall, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) promptly upon written request of the CompanyCompany reimburse the Company and its Subsidiaries for all reasonable and documented out-of-pocket fees, its Subsidiaries, costs and expenses incurred by the Company or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to its Subsidiaries in connection with the Financing shall be effective until the Closingcooperation required by this Section.
(cf) Notwithstanding anything to the contrary contained herein, Parent shall (i) promptly and each Parent Merger Sub acknowledges and agrees that its obligations to consummate the Transactions are not contingent upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation Parent or the Financing and Merger Subs obtaining any information used in connection therewithFinancing.
Appears in 1 contract
Sources: Agreement and Plan of Merger (Getty Images Holdings, Inc.)
Financing Cooperation. (a) From the date hereof until the earlier to occur of the Closing (or Date and the earlier termination of date that this Agreement pursuant to Section 8.01), subject to the limitations set forth is terminated in this Section 5.05, and unless otherwise agreed by Parentaccordance with Article 7, the Company will shall use its reasonable best efforts to, and shall use reasonable best efforts to cause its Subsidiaries and its and their respective officers, employees, advisors and other representatives to, at Purchaser’s sole cost and expense and at Purchaser’s reasonable request, cooperate with Parent and its Affiliates as reasonably requested by Parent the Evolent Entities in connection with Parent’s the arrangement of the Financing (whichDebt Financing, solely for purposes including the use of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
in respect of (i) make appropriate officers reasonably availableparticipating in, with appropriate on reasonable advance noticenotice and at reasonable locations, for participation in bank a reasonable number of virtual or telephonic meetings, due diligence sessions, meetings and other presentations to, and with, Financing Sources (including direct contact between the senior management and other representatives of the Company Group, on the one hand, and the actual and potential Financing Sources, on the other hand) and sessions with ratings agencies and road showsagencies, reasonable assistance in each case, to the extent customary in connection with financings of the type contemplated by the Commitment Letter, (ii) assisting with the preparation of confidential customary materials for rating agency presentations, lender and investor presentations, business projections, bank information memoranda, private placement memoranda, prospectuses, presentations prospectuses and similar documents required in connection with the Debt Financing and other customary marketing and syndication materials required in connection with the Debt Financing (and identifying any portion of the information set forth in any of the foregoing that would constitute material nonpublic information if the Company or any parent company of the Company were a public reporting company) (it being understood that (a) none of the Company, its Subsidiaries or any Seller shall be responsible in any manner for information related to the Debt Financing that may be included in any pro forma financial statements and (b) without limiting the obligations to assist set forth in this Section 4.8, the Evolent Entities and Merger Sub shall be solely responsible for the preparation of such pro forma financial statements), (iii) furnishing the Evolent Entities with the Required Information and such other financial information regarding the Company and its Subsidiaries as may be reasonably requested in writing by Parent or any Financing Partythe Evolent Entities in connection with the Debt Financing, in each case, (iv) delivering customary authorization letters with respect to any bank information relating memoranda to the extent contemplated by the Commitment Letter (which authorization letters shall be in form and substance satisfactory to the Company (it being agreed that the Evolent Entities shall furnish such letters to the Company and its Subsidiaries provide the Company with a reasonable opportunity to review and comment with respect thereto)), (v) assisting in connection with the preparation of, and executing and delivering, as applicable, definitive financing documents (including guarantee and collateral documents and customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data closing certificates with respect to the Company Debt Financing) as may be required by the Debt Financing and its Subsidiaries which is prepared any related schedules, annexes and exhibits thereto (including by providing information in the possession of, or reasonably ascertainable by, the Company in connection therewith), (vi) assisting with the ordinary course pledging of, and granting of business or can be prepared Liens on, collateral for the Debt Financing, including by delivering notices of prepayment within the time periods required by the relevant agreements governing Indebtedness of the Company without undue burden (with Group and obtaining customary payoff letters, lien terminations and instruments of discharge, and give any cost thereof other necessary notices, to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required allow for the arrangement payoff, discharge and syndication termination in full of financings similar existing Liens of the Company Group (to the Financing committed pursuant extent not contemplated under this Agreement to survive the Debt Lettersconsummation of the Closing), including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iiivii) request ensuring that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing Sources benefit from existing lending relations (including as set forth in the Debt Letters as in effect on the date of this Agreementif any) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to (viii) providing the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt LettersEvolent Entities, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent Sub and the Financing PartiesSources, within five at least four (54) Business Days following written requestprior to the Closing Date, such all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, furtherin each case to the extent reasonably requested in writing by the Evolent Entities at least nine (9) Business Days prior to the Closing Date, that nothing (ix) reasonably cooperating in satisfying the conditions precedent set forth in the Commitment Letter to the extent satisfaction of any such condition reasonably requires the cooperation of, or is within the control of, the Company Group and (x) taking corporate actions reasonably necessary to permit the consummation of the Debt Financing, in each case with respect to foregoing, subject to the limitations contained in this Agreement shall require (including Section 4.8(b) below). The Company and its Subsidiaries consent to the customary and reasonable use of the Company’s logos solely in connection with any Debt Financing; provided, that such logos are used solely in a manner that is not intended, or reasonably likely, to harm or disparage the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency of its Subsidiaries or the reputation or goodwill of the Company or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestits Subsidiaries.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): to the contrary, (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require none of the Company or any of its Subsidiaries or any of their respective directors, officers, employees, advisors, representatives or agents shall be required to pay execute or enter into any commitment certificate, instrument, agreement or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities document in connection with the Debt Financing which will be effective prior to the Closing, except for customary authorization letters in any marketing materials for the Debt Financing, to the extent contemplated by the Commitment Letter (2which authorization letters shall be in form and substance satisfactory to the Company (it being agreed that the Evolent Entities shall furnish such letters to the Company and provide the Company with a reasonable opportunity to review and comment with respect thereto)), (ii) unreasonably interfere nothing herein shall require cooperation or other actions or efforts on the part of the Company or any of its Subsidiaries or any of their respective directors, officers, employees, advisors, representatives or agents in connection with the ongoing Debt Financing to the extent it (A) would interfere unreasonably with the business or operations of the Company or the Company any of its Subsidiaries, (3B) require would or would reasonably be expected to cause any condition to the Closing set forth in this Agreement not to be satisfied or (C) would or would reasonably be expected cause any breach of this Agreement or any violation of Law or material Contract, (iii) neither the Company nor any of its Subsidiaries nor any of their respective directors, officers, employees, advisors, representatives or agents shall be required to, or be required to commit to, (1) take any action that is not contingent upon the Closing or enter into execute any agreement or document (other than customary authorization letters to the extent contemplated by the Commitment Letter (which authorization letters shall be in form and substance satisfactory to the Company (it being agreed that the Evolent Entities shall furnish such letters to the Company and provide the Company with a reasonable opportunity to review and comment with respect thereto))) unless the effectiveness thereof shall be conditioned upon, or become operative upon or after, the occurrence of the Closing, (2) take any action that would, or would reasonably be expected to, result in any officer, director, employee, agent or other representative of the Company or any of its Subsidiaries incurring any personal liability with respect to any matters relating to the Debt Financing, (3) deliver or cause the delivery of (A) any certificate necessary for the Debt Financing that will be effective prior to Closing or (B) any legal opinions, (4) deliver or cause the delivery of any pro forma financial information or any other financial information not readily available to the Company Subsidiaries to enter into or approve (other than the Required Information), (5) pay any agreement commitment or other documentation similar fee in connection with the Debt Financing prior to the Closing, (6) waive or amend any terms of this Agreement or any other material Contract to which the Company or its Subsidiaries is party, (7) provide access to or disclose information where the Company determines that such access or disclosure would or would reasonably be expected to jeopardize the attorney-client privilege or contravene any Law or material Contract, or take any action that will conflict with or violate the organizational documents of Company or any of its Subsidiaries or any legal requirements or result in the contravention of, or would reasonably be expected to result in a violation or breach of, or default under, any Law or material Contract, provided that the Company Group shall use reasonable best efforts to provide such information in a manner that would not jeopardize the attorney client privilege or result in such contravention, breach or violation, or (8) adopt resolutions or take similar action approving the Debt Financing effective prior to the Closing (or agree otherwise approve the agreements, documents or instruments pursuant to which the Debt Financing is made, except for customary authorization letters in any change or modification of any existing agreement or other documentation that would be effective prior marketing materials for the Debt Financing to the Closing or extent contemplated by the Commitment Letter (4which authorization letters shall be in form and substance satisfactory to the Company (it being agreed that the Evolent Entities shall furnish such letters to the Company and provide the Company with a reasonable opportunity to review and comment with respect thereto))) require the Company, any (it being agreed that directors and officers of Subsidiaries of the Company may sign resolutions or consents that do not become effective until the Closing solely to the extent that they will remain directors and/or officers after giving effect to the Closing). All non-public or other confidential information provided by the Company or its Subsidiaries pursuant to this Section 4.8 shall be kept confidential in accordance with the Confidentiality Agreement, except that Purchaser and Merger Sub shall be permitted to disclose such information to any Financing Sources or potential Financing Sources and other financial institutions and investors that may become parties to the Debt Financing (and, in each case, to their respective counsel and auditors) as permitted pursuant to the Confidentiality Agreement. None of the Company or any of their respective boards of directors (its Subsidiaries shall be required to bear any cost or equivalent bodies) to approve or authorize the Financingexpense, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees similar fee, make any other payment, incur any other liability or provide or agree to provide any indemnity, in each case, in connection with the Debt Financing prior to the Closing. Purchaser shall reimburse any expenses) of the Company, its Subsidiaries and the Sellers and their respective Representatives for any reasonable and documented out of pocket fees and expenses incurred pursuant to this Section 4.8 (other than with respect to the Company’s obligations to deliver the Required Information and, for the avoidance of doubt, compensation of its and its Subsidiaries’ employees) and shall indemnify and hold harmless the Company, its Subsidiaries and the Sellers and their respective Representatives from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments, and penalties incurred or suffered by them in connection with any actions taken pursuant to this Section 4.8; provided, that the Evolent Entities shall not have any obligation to indemnify and hold harmless any such party or Person to the extent that any such damages suffered or incurred arose from (x) historical information provided by or on behalf of the Company or its Affiliates or (y) the willful misconduct, gross negligence, fraud or intentional misrepresentation of, the Company or any of its Subsidiaries or its or their respective Representatives under any certificateRepresentatives. Notwithstanding the foregoing, agreement, arrangement, document or instrument relating it is understood and agreed by the Evolent Entities that receipt of third-party financing is not a condition to the Financing shall be effective until obligation of such Persons to consummate the Closing.
(c) Parent Notwithstanding anything to the contrary herein, a breach by the Company of its obligations under this Section 4.8 shall not constitute a breach of this Agreement or a breach for purposes of Article VI or a failure of the conditions precedent set forth in Section 3.2 unless (i) promptly upon request by Purchaser provides reasonably prompt written notice of the Companyalleged breach of this Section 4.8, reimburse specifying in reasonable detail specific steps to cure such alleged breach in a manner consistent with this Section 4.8 and provides the Company for all with a reasonable period of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Companytime to cure such breach, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify such breach constitutes a material breach of Section 4.8 and hold harmless has not been cured within the Companyapplicable period specified by Purchaser and (iii) such breach directly results in, and is the primary cause of, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Debt Financing and any information used in connection therewithnot being available to Purchaser.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Subject to the limitations set forth in this Section 5.05terms of the Playa Purchase Agreement, Seller Parent shall, and unless otherwise agreed shall cause Transferco and the Target Entities to, and shall cause its and their respective officers, employees and advisors to, reasonably cooperate in connection with the arrangement of the Debt Financing. Such cooperation by Parentthe Seller Parent and its respective officers, employees and advisors shall include, at the Company will use its reasonable request of Purchaser, using their reasonable best efforts to cooperate with Parent (provided that the obligation set forth below in clauses (B) and its Affiliates as reasonably requested by Parent (E) shall be required in connection with Parent’s arrangement of any event and shall not be subject to the Financing foregoing efforts standard):
(whichA) at reasonable times, solely for purposes of this Section 5.05upon reasonable advance notice and at reasonable locations, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make cause appropriate officers reasonably availablemembers of the management team of the Seller Parent, with appropriate advance notice, for participation Transferco and the Target Entities to participate in bank a reasonable number of meetings, due diligence sessions, meetings “roadshow” presentations and similar presentations to and with ratings prospective lenders, investors and rating agencies and road shows(ii) cooperate with prospective lenders and investors in performing their due diligence;
(B) furnish Purchaser and the Debt Financing Sources, reasonable assistance as applicable, the financial information required by the first sentence of Section 3 of Exhibit C of the Debt Commitment Letter;
(C) provide other financial and other pertinent information related to Transferco and the Target Entities reasonably necessary to assist Purchaser or any of its Affiliates in the preparation of one or more confidential information memoranda, private placement offering memoranda, registration statements, prospectuses, presentations lender and investor presentations, rating agency presentations, other similar documents as may be and other marketing and syndication materials reasonably requested by Parent Purchaser or any of its Affiliates (including confirming the absence of material non-public information relating to Transferco and the Target Entities or their securities contained therein);
(D) otherwise cooperate with the Debt Financing Partysources’ documentary due diligence and provide information in support of the completion of customary definitive financing documentation, in each casecase to the extent, with respect and solely to the extent, such materials relate to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent concerning Transferco and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the CompanyTarget Entities, to the extent customarily and reasonably required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise to be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative delivered under such definitive financing therefor, and provide customary management letters in connection with the foregoing;documentation;
(ivE) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
provide, at least four (v) furnish Parent and the Financing Parties, within five (54) Business Days following written requestprior to the Closing Date, such all documentation and other information about Transferco and the Target Entities as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act, to the extent reasonably requested by any Debt Financing source at least seven (7) Business Days prior to the anticipated Closing Date;
(F) cooperate in satisfying the conditions precedent to the Debt Financing to the extent the satisfaction of such condition requires the cooperation of, or is within the control of, the Seller Parent, Transferco and the Target Entities;
(G) deliver, at least one (1) Business Day prior to the Closing Date, payoff letters with respect to any outstanding indebtedness that is not permitted hereunder to remain outstanding following the Closing and provide for the release of related Liens and termination of security interests in respect of such indebtedness (including delivering prepayment or termination notices as required by the terms of any existing indebtedness and delivering payoff letters contemplated by this Agreement and UCC-3 or equivalent financing statements or termination notices), in each case, in customary form and otherwise reasonably satisfactory to the Purchaser;
(H) obtain customary authorization letters with respect to the bank information memoranda from an appropriate officer of Transferco and the Target Entities;
(I) furnish Purchaser and the Debt Financing Sources, as applicable, the unaudited consolidated balance sheets of Playa Hotels & Resorts N.V. (or its legal successor) and its subsidiaries and related consolidated statements of operations, comprehensive income, shareholders’ equity, and cash flows as of the end of each fiscal quarter ending after the date of the consummation of the acquisition thereof by Hyatt Hotels Corporation and/or one or more of its Affiliates and more than forty five (45) days prior to Closing Date; and
(J) assist Purchaser with the preparation of pro forma financial information and pro forma financial statements to the extent requested by Purchaser or the Debt Financing Sources to be included in any marketing materials or offering documents of the type customary for financings of a type similar to the Debt Financing (provided that Purchaser shall be responsible for the preparation of any pro forma financial statements and related notes thereto and Seller Parent, Transferco and the Target Entities shall not be responsible for the preparation of any pro forma financial statements or any other information regarding post-Closing pro forma cost savings, synergies, capitalization, ownership or other post-Closing pro forma adjustments giving effect to the transactions contemplated hereby for use in connection with the Debt Financing). providedNotwithstanding the foregoing, further, that nothing in this Agreement clause (a) above shall require the Company to cause the delivery of (1) legal opinions or reliance letters Seller Parent, Transferco or any certificate as to solvency Target Entities or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information of their respective Affiliates or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect Representatives to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses fees or otherwise payment to obtain consent or incur any liabilities liability with respect to or cause or permit any Lien to be placed on any of their respective assets in connection with the Debt Financing prior to the Closing Date, (ii) give any indemnities prior in connection with any Debt Financing or, except as provided in clause (H) above, execute any agreement, certificate, document, or instrument pursuant to this Section 7.10 with respect to any Debt Financing that is not contingent on the Closing, (2iii) except as expressly provided in clauses (B) and (E) above, take any action that, in the good faith determination of the Seller Parent, would unreasonably interfere with the ongoing business or operations conduct of the Company business of the Seller Parent, Transferco or the Company SubsidiariesTarget Entities or damage or destroy any property or assets of the Seller Parent, Transferco or Target Entities, (3iv) require to consent to the Company pre-filing of UCC-1s or any the grant of Liens on assets of the Company Subsidiaries to enter into Seller Parent, Transferco or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation Target Entities that would be effective prior to the Closing Date, (v) waive or amend any terms of this Agreement, (vi) except as expressly provided in clauses (B) and (E) above, prepare or deliver any projections or pro forma financial information or deliver any financial statements that is not expressly required under this Agreement or that is not readily available, prepared or able to be generated, in the ordinary course of business of the Seller Parent at the time requested by Purchaser, (vii) except as expressly provided in clause (D) above, deliver any legal opinions or accountants’ cold comfort letters or reliance letters or (4viii) require provide cooperation that would in the Companygood faith judgment of Seller Parent: (A) conflict with or result in a violation of any material contract, organizational document or any Applicable Law, (B) result in the loss of attorney-client privilege or other similar legal privilege or (C) cause any of Seller Parent’s representations, warranties, covenants or other obligations in this Agreement to be breached or any condition to the obligations of Purchaser to fail to be satisfied (after giving effect to any waivers, amendments or other modifications). Seller Parent consents to the reasonable use of its, Transferco and any of the Company Subsidiaries Target Entities logos in connection with the Debt Financing in a manner usual and customary for financings of a type similar to the Debt Financing; provided that such logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Seller Parent, Transferco or the Target Entities or the reputation or goodwill of the Seller Parent, Transferco or Target Entities.
(b) Purchaser shall, promptly upon request by the Seller Parent, reimburse the Seller Parent for all reasonable and documented out-of-pocket costs and expenses (including attorneys’ fees) actually incurred by the Seller Parent, Transferco the Target Entities and its and their respective Representatives in connection with their respective obligations pursuant to this Section 7.10(b). Purchaser shall indemnify and hold harmless the Seller Parent, Transferco and the Target Entities and their respective Representatives, from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by any of them in connection with any Debt Financing and any information utilized in connection therewith, in each case prior to the Closing, except for any such liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties arising out of or with respect to (i) any willful misconduct, gross negligence, bad faith or fraud by any of the Seller Parent, Transferco or the Target Entities or its or their respective boards Representatives or (ii) any material misstatement or omission in information provided hereunder by any of directors the foregoing persons.
(c) Purchaser shall use reasonable best efforts to take, or equivalent bodiescause to be taken, all actions and do, or cause to be done, as promptly as possible, all things necessary, proper or advisable to arrange the Debt Financing on the terms and conditions described in the Debt Commitment Letter, including using reasonable best efforts to, as promptly as possible, (a) satisfy on a timely basis all conditions that are within Purchaser’s control applicable to approve Purchaser obtaining the Debt Financing set forth therein, (b) negotiate and enter into definitive agreements with respect thereto on the terms and conditions contemplated by the Debt Commitment Letter (including any related flex provisions) or authorize on other terms not materially less favorable to Purchaser in any respect, (c) timely prepare the necessary offering documents or marketing materials with respect to the Debt Financing, and (d) in the event that all conditions in the Debt Commitment Letter have been satisfied, direct the applicable Debt Financing Sources to consummate the Debt Financing at or prior to the Closing to the extent required to consummate the Transaction. Purchaser shall give Seller Parent prompt notice of (i) any breach of obligations under the Debt Commitment Letter that has been asserted in writing in accordance with the terms of the Debt Commitment Letter or of which Purchaser becomes aware, (ii) no actionif Purchaser becomes aware that the Debt Financing contemplated by the Debt Commitment Letter will not be available to consummate the Transaction and (iii) receipt by Purchaser of written notice or other written communication of any termination of the Debt Commitment Letter. To the extent reasonably requested by Seller Parent from time to time in writing, liability Purchaser shall keep the Seller Parent informed on a reasonably current basis in reasonable detail of the status of Purchaser’s efforts to arrange the Debt Financing or obligation Alternative Financing and provide to Seller Parent executed copies of the material definitive documents related to the Debt Financing or Alternative Financing. If any portion of the Debt Financing required to consummate the Transaction becomes unavailable on the terms and conditions contemplated in the Debt Commitment Letter, Purchaser shall use reasonable best efforts to obtain alternative financing, including from alternative sources, terms that are not materially less favorable to Purchaser in any respect in an amount sufficient to consummate the Transaction as promptly as practicable following the occurrence of such event and the provisions of this Section 7.10(c) shall be applicable to the Alternative Financing. Purchaser shall (A) comply in all material respects with the Debt Commitment Letter and each definitive agreement with respect thereto (collectively, with the Debt Commitment Letter, the “Debt Documents”), (B) enforce in all material respects their rights under each Debt Document and (C) not permit any material amendment, replacement, restatement or modification to be made to, or any waiver of any material provision or remedy under, any Debt Document or the fee letters referred to in the Debt Commitment Letter without the prior written consent of Seller Parent if such amendment or modification (1) decreases the aggregate amount of the Debt Financing to an amount that would be less than an amount that would be required to consummate the Transaction (together with other reasonably available financial resources of Purchaser), (2) imposes new or additional conditions in each case which would reasonably be expected to prevent, delay or impair the availability of the Debt Financing when required to be funded or the satisfaction of the conditions to obtaining the Debt Financing, in each case on the Closing Date or (3) adversely impacts the ability of Purchaser to enforce its rights against the other parties to the Debt Commitment Letter; provided that, for the avoidance of doubt, Purchaser may amend, replace, supplement and/or modify the Debt Commitment Letter solely (i) to add lenders, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the Debt Commitment Letter as of the date of this Agreement (including in replacement of a lender) or (ii) to implement or exercise any “flex” provisions provided in the fee letters as in effect as of the date hereof. For purposes of this Agreement, references to (i) the “Debt Financing” and “Financing” will include the financing contemplated by the Debt Commitment Letter as amended, supplemented, replaced, restated or modified as permitted by this Section 7.10(c) and (ii) the “Debt Commitment Letters,” or “Commitment Letters” shall include such documents as amended, supplemented, replaced, restated or modified as permitted by this Section 7.10(c), in each case from and after such amendment, restatement, replacement, supplement or other modification or waiver.
(d) Purchaser acknowledges and agrees that the obtaining of any financing (including any obligation Debt Financing) is not a condition to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(ce) Parent All non-public or otherwise confidential information regarding the Seller Parent, Transferco or the Target Entities obtained by Purchaser pursuant to this Section 7.10(d) shall be kept confidential in accordance with the Confidentiality Agreement, except that Purchaser shall be permitted to disclose such information (ia) promptly upon request by to rating agencies, the Companylenders and potential lenders, reimburse underwriters and potential underwriters, participants, prospective participants, hedging counterparties or prospective hedging counterparties in accordance with the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any terms of the Company SubsidiariesDebt Commitment Letter on a confidential basis, subject only to customary exceptions in no event more extensive than those set forth in the confidentiality provisions of the Debt Commitment Letter or customary engagement letter relating to the Transaction as in effect as of the date hereof (including, without limitation, as agreed in any confidential information memorandum or other marketing materials, which may be by “clickthrough” agreement or other affirmative action on the part of its the recipient to access such information) in accordance with standard syndication processes or their Representatives in connection with any cooperation contemplated by this Section 5.05 customary market standards for dissemination of such type of information and (iib) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against in any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) prospectus or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithoffering memorandum.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the earlier of the Closing (or and the earlier valid termination of this Agreement pursuant Agreement, each Seller Party shall use commercially reasonable efforts, at the Buyer’s sole cost and expense, to Section 8.01), subject to the limitations set forth in this Section 5.05cooperate, and unless otherwise agreed by Parentcause their Affiliates and their and their Affiliates’ respective officers, the Company will employees and advisors, to use its commercially reasonable best efforts to cooperate cooperate, with Parent and its Affiliates as reasonably requested by Parent the Buyer in connection with Parent’s arrangement any debt financing in connection with the Transactions (the “Debt Financing”), as may be reasonably necessary to arrange the Debt Financing (provided that such requested cooperation does not (i) unreasonably interfere with the ongoing operations of the Financing Acquired Companies and/or the businesses of any of the Seller Parties, (whichii) cause any covenant, solely for purposes of representation or warranty in this Section 5.05Agreement to be breached or (iii) cause any condition in this Agreement to fail to be satisfied), shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using commercially reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate upon reasonable advance notice, for participation cause senior management of the Acquired Companies to participate at reasonable times and locations, if applicable, convenient to such persons during normal business hours of the Acquired Companies in bank a reasonable number of meetings, drafting sessions, presentations, calls and rating agency and due diligence sessions, meetings sessions with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the FinancingBuyer’s prospective lenders;
(ii) as promptly as reasonably practicable, furnish Parent the Buyer and its Debt Financing Sources with financial and other pertinent and customary information regarding the Acquired Companies and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company Business that are readily available in the ordinary course of business or can be prepared by and consistent with past practice at the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is time and are reasonably requested by Parent the Buyer or any the Debt Financing Party and is customarily required Sources for use in connection with the Debt Financing (including, for the arrangement and syndication avoidance of financings similar to doubt, in connection with the Financing committed pursuant to due diligence investigation of the Debt LettersFinancing Sources) and that are customarily needed for financings of the type contemplated in connection with the Transactions or the Buyer’s satisfaction of the conditions precedent set forth in the definitive financing documentation governing the Debt Financing; provided that, including such information necessary for the avoidance of doubt, none of the Seller Parties or their controlled Affiliates shall be required to allow Parent provide any historical financial statements other than the Financial Statements and none of the Seller Parties or their controlled Affiliates shall be required to prepare provide, and the Buyer shall be solely responsible for, (A) the preparation of pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933information, as amendedincluding pro forma cost savings, and identify synergies, capitalization or other pro forma adjustments desired to be incorporated into any such pro forma financial information as suitable for distribution and (B) projections, risk factors or other forward-looking statements relating to “public side” lendersall or any component of the Debt Financing;
(iii) request that (A) assist the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth Buyer in the Debt Letters as in effect on the date preparation of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents schedules and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, exhibits to the extent required definitive documentation for the Debt Financing with respect to the Acquired Companies and the Business as may reasonably be requested by the Buyer or the Debt Financing Sources in connection with the marketing Debt Financing and syndication (B) facilitate the pledging and perfection of Financing (including as set forth in collateral with respect to the Debt Letters as in effect on Acquired Companies and the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingBusiness;
(iv) furnish no later than three (3) days prior to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to the Closing Date, deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including including, without limitation limitation, the PATRIOT Act. , that, in each case, has been reasonably requested by the Buyer in writing, at least ten (10) days in advance of the Closing Date; and
(v) provided, furtherin each case, that nothing none of the Seller Parties, any of their respective Affiliates or any of their and their Affiliates’ respective officers, employees or advisors (other than, if applicable, Affiliates comprising the Acquired Companies, on or after Closing) shall be required to (A) incur or satisfy any Liability or obligation (including the payment of any fees) in this Agreement shall require connection with the Company Debt Financing, including under any agreement or document related to cause the delivery of Debt Financing (1other than such incurrence by the Acquired Companies on or after Closing), (B) execute or deliver any definitive financing documents, including any credit or other agreements, pledge or security documents, or other certificates, legal opinions or reliance letters documents in connection with the Debt Financing or otherwise commit to taking any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iiiaction (including entering into such agreements and documents), (2C) take any financial information for corporate or similar actions prior to Closing to permit the consummation of the Debt Financing, (D) take any periodaction that could conflict with, including violate or result in a breach of or termination right or default under any audited financial information Organizational Documents of such person, any Contract, any Related Agreements or any financial information prepared Law, (E) take any action that could be reasonably likely to subject any director, manager, officer or employee of the Seller Parties or any of their Affiliates to any actual or potential personal liability, (F) cause any director, manager or similar authority of the Seller Parties or any of their Affiliates to pass resolutions or consents to approve or authorize the execution of definitive documents in accordance connection with Regulation S-K the Debt Financing (other than, solely in respect of such Persons contemplated to retain such positions after the Closing Date, definitive documents in connection with the Debt Financing that are contingent upon the Closing), (G) reimburse any expenses or Regulation S-X provide any indemnities to the Debt Financing Sources under the Securities Act of 1933, as amended, in any case in a form not customarily prepared definitive documentation for the Debt Financing (other than such reimbursement or indemnification by the Company with respect to such periodAcquired Companies on or after Closing), other than as provided by Section 5.05(a)(ii(H) make any representation, warranty or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (orcertification that, in the case good faith determination of a fiscal yearthe Seller Parties, 60 daysis not true at the time, (I) prior provide access to or disclose information that the Seller Parties determine in good faith could jeopardize any attorney-client privilege of, or conflict with any confidentiality requirements applicable to, the Seller Parties and any of their Affiliates, (J) provide any cooperation or information that does not pertain to the date Acquired Companies or the Business, (K) deliver any financial or other information that is not currently prepared or readily available in the ordinary course of business at the time requested, and (L) have any obligations under this Section 6.07(a) following the consummation of the Transaction. Each Seller Party hereby consents to the use of the Acquired Companies’ logos in connection with the Debt Financing; provided, that such requestlogos are used solely in a manner that is not intended to, or reasonably likely to, harm or disparage the Seller Parties or any of their Affiliates or the reputation or goodwill of the Seller Parties, any of their Affiliates, the Acquired Companies and their respective marks.
(b) Notwithstanding anything to The Buyer shall indemnify and hold harmless the contrary contained Seller Parties, their respective Affiliates and any of their and their Affiliates’ respective officers, employees or advisors from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by them in this Agreement (including this connection with the arrangement of Debt Financing and the performance of their respective obligations under Section 5.05): (i6.07(a) nothing and any information utilized in this Agreement (including this Section 5.05) shall require any such cooperation connection therewith, except to the extent that it would (1) require such losses or damages arise out of or result from, in connection with the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closingarrangement of Debt Financing, (2x) unreasonably interfere with the ongoing business willful misconduct, fraud or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing gross negligence or (4y) require the Companymaterial misrepresentation, omissions, misstatements or inaccuracies in any written information or fraud, by any Seller Party, any of the Company Subsidiaries their Affiliates or any of their respective boards Representatives, in each case, as determined in a final, non-appealable judgment of directors a court of competent jurisdiction. The Buyer shall, promptly upon written request by the Seller Parties or their respective Affiliates, reimburse the Seller Parties, as applicable, for all reasonable and documented out-of-pocket costs and expenses incurred by the Seller Parties, their respective Affiliates and any of their and their Affiliates’ respective officers, employees or advisors in connection with the cooperation required by Section 6.07(a); provided, that the Buyer shall not be responsible for any ordinary course that would have been incurred regardless of any cooperation under Section 6.07(a).
(c) The Buyer acknowledges and agrees that (i) the obtaining of any Debt Financing is not a condition to the Closing and reaffirms its obligation to consummate the Transactions irrespective and independently of the availability of the Debt Financing, subject to fulfillment or equivalent bodies) waiver of the conditions to approve the Closing set forth in Articles IX and X (other than those conditions that by their nature are to be satisfied at Closing, but subject to the fulfillment or authorize the Financingwaiver of such conditions), and (ii) no action, liability or obligation (including any obligation failure of any Seller Party to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating provide to the Financing Buyer any financial information (other than the Financial Statements) shall not be effective until the Closingdeemed to constitute a failure by any Seller Party to perform in all material respects an obligation under Section 6.07(a).
(cd) Parent Notwithstanding anything contained herein to the contrary, it is understood and agreed by the Parties that a breach by any Seller Party of its obligations set forth in Section 6.07(a) shall only be deemed to cause the conditions set forth in Section 9.02 to fail to be satisfied if (i) promptly upon request by the CompanyDebt Financing has not been obtained due to the Seller Party’s willful and material breach of their obligations under Section 6.07(a), reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify the Buyer has provided written notice to the Seller Parties of such breach and hold harmless (iii) the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost Seller Parties have failed to cure such breach within five (including cost 5) Business Days following receipt of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithnotice.
Appears in 1 contract
Financing Cooperation. (a) From Prior to the date hereof until Closing, each of the Closing (Company and HR shall use its commercially reasonable efforts, and shall cause the Company Subsidiaries and the HR Subsidiaries, respectively, to use commercially reasonable efforts, to provide customary cooperation, to the extent reasonably requested by HR or the earlier termination Company, as the case may be, in writing and customary in connection with transactions similar to the offering, arrangement, syndication, consummation or issuance of this Agreement the Financing to be obtained in accordance with Section 6.25 or any financing relating to the joint venture transactions for purposes of the Asset Transfer pursuant to Section 8.016.26 or as otherwise contemplated under this Agreement (collectively, the “JV Financing”) (provided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company, HR or any of their respective Affiliates) (collectively, “Financing Cooperation Activities”), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts including to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies provide reasonable and road shows, reasonable customary assistance to the other party in the preparation review of confidential information customary offering documents, offering memoranda, private placement memorandaroadshow presentations, prospectusesbridge teasers, syndication documents and other syndication materials, including information memoranda and lender and rating agency presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing or the JV Financing and other customary marketing materials, in each case as requested reasonably in advance by the other party and reasonably necessary for the Financing or Alternative Financing or Replacement Financing or JV Financing;
(ii) furnish Parent and the Financing Parties with copies make appropriate members of senior management of such financial data party available at reasonable times and locations and upon reasonable prior notice, to participate in a reasonable number of meetings (including one-on-one meetings or conference calls with respect to the Company Financing Sources or ratings agencies), presentations and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Lettersdue diligence sessions, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify provided that any such financial information as suitable for distribution to “public side” lendersmeeting or communication may be conducted virtually by videoconference or other media;
(iii) request provide customary authorization letters (containing a representation that the Company’s independent accountants participate in drafting sessions public-side versions of any materials distributed to prospective lenders, if any, do not include any material non-public information with respect to such party, its Subsidiaries and accounting due diligence sessions their respective securities, and cooperate with other customary confirmations and undertakings reasonably requested by the Financing other party) authorizing the distribution of any of the foregoing information (including as set forth in subject to all of the Debt Letters as in effect on the date of this Agreementpreceding conditions and qualifications) or to prospective lenders in connection with a customary offering of securitiessyndicated bank financing, including in each case as requested reasonably in advance by the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingother party;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such provide documentation and other information as reasonably required to be provided to or by any Financing Party may reasonably determine is required Source by bank regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the US PATRIOT Act. providedAct and 31 C.F.R. § 1010.230, further, that nothing in this Agreement shall require the Company relating to cause the delivery of (1) legal opinions or reliance letters such party or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), of its Subsidiaries at least five (25) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) Business Days prior to the date Closing Date, so long as, in each case the same are reasonably requested by the other party (or such Financing Source) at least ten (10) Business Days prior to the Closing Date; and
(v) consent to the use of its and its Subsidiaries’ logos in connection with the Financing or the JV Financing; provided that such requestlogos are used solely in a manner that is not intended to, nor reasonably likely to, harm or disparage such party or its Subsidiaries or such party’s or its Subsidiaries’ reputation or goodwill.
(b) Notwithstanding anything Except as required pursuant to Section 6.25 and the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feesforegoing notwithstanding, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations none of the Company nor any of its Affiliates shall be required to take or permit the Company Subsidiaries, taking of any action pursuant to this Section 6.24 that would: (3i) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards Affiliates or any persons who are officers or directors of directors (such entities to pass resolutions or equivalent bodies) consents to approve or authorize the Financingexecution of the Financing (other than any customary authorization letters), except (A) resolutions or consents which are subject to the occurrence of the Effective Time passed by directors or officers continuing in their positions following the Effective Time and (iiB) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives as expressly provided in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation6.24(a), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.,
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts efforts, and shall cause its Subsidiaries and their respective Representatives to cooperate with Parent and its Affiliates as use reasonable best efforts, to provide customary cooperation for debt financings similar to the Debt Financing, to the extent reasonably requested by Parent ▇▇▇▇▇▇ Sub in writing and at Merger Sub’s sole expense, in connection with Parent’s the arrangement of the Debt Financing (whichprovided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company or any of its Subsidiaries), solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using commercially reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation participate in bank meetings, due diligence sessions, a reasonable number of meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as (which may be reasonably requested by Parent or any virtual) and presentations, to the extent customary for financings of a type similar to the Debt Financing Party, in each case, and at reasonable times and with respect to information relating reasonable advance notice to the Company and its Subsidiaries (but limited in connection with customary marketing efforts of Parent and its Affiliates for all or any portion the case of the FinancingDebt Financing Sources to not more than one virtual meeting with the Debt Financing Sources);
(ii) furnish to the extent required by the Debt Financing, using commercially reasonable efforts to facilitate the pledging and perfection of collateral of the Company, effective no earlier than the Closing;
(iii) provide at least three Business Days prior to the Closing Date all documentation and other information required by bank regulatory authorities under applicable “know-your-customer”, anti-money laundering rules and regulations and beneficial ownership rules and regulations, including the USA PATRIOT Act and 31 C.F.R. §1010.230, relating to the Company or any of its Subsidiaries, in each case as reasonably requested by Parent at least nine Business Days prior to the Closing Date;
(iv) to the extent reasonably requested by ▇▇▇▇▇▇, providing reasonable and the Financing Parties with copies of such financial data customary assistance to Merger Sub in obtaining private corporate and facilities credit ratings with respect to the Debt Financing;
(v) assist in the preparation of, and executing and delivering at Closing, Definitive Agreements, including schedules, guarantee and collateral documents and customary closing certificates to the extent required by the Debt Commitment Letter (including a solvency certificate in the form set forth on Annex I to Exhibit C of the Debt Commitment Letter);
(vi) assisting in the taking of all corporate and other similar actions, subject to and contingent upon the occurrence of the Closing, reasonably necessary to permit the consummation of the Debt Financing on the Closing Date; it being understood that (A) no such corporate or other action will take effect prior to the Closing and (B) any such corporate or other action will only be required of the directors, members, partners, managers or officers of the Company and its Subsidiaries which is prepared by subsidiaries who retain their respective positions as of the Closing; and
(vii) deliver such readily available financial information regarding the Company as is reasonably requested by ▇▇▇▇▇▇ Sub in connection with the ordinary course Debt Financing, and solely to the extent such information is of business or the type customarily provided by a borrower in connection with similar debt financings to the Debt Financing and can be prepared by the Company without unreasonable effort or undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party it being understood and is customarily required for the arrangement and syndication of financings similar agreed that, notwithstanding anything to the Financing committed pursuant contrary contained herein, the Company shall not be required to the Debt Lettersprovide any Excluded Information), including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, it being understood and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request agreed that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with Company shall have satisfied the Financing (including as obligations set forth in Section 5.08(a)(i) through Section 5.08(a)(vii) if the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, Company shall have used its commercially reasonable efforts to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection comply with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as obligations whether or not any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. deliverables are actually obtained or provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feesThe foregoing notwithstanding, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations none of the Company nor any of its Subsidiaries shall be required to take or permit the Company Subsidiaries, taking of any action pursuant to this Section 5.08 that would (3i) require the Company or its Subsidiaries or any of its or their respective Representatives (collectively, the “Company Subsidiaries Cooperation Parties”) to pass resolutions or consents to approve or authorize the execution of the Debt Financing or enter into into, execute or approve deliver any certificate, document, instrument or agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement certificate, document, instrument or agreement, in each case that are not conditioned on the occurrence of the Closing (other than the execution of customary authorization letters in connection with the obligations set forth above; provided that in no event shall the Company or its Subsidiaries be required to assume any expense in connection with the execution of such documents), (ii) cause any representation or warranty in this Agreement to be breached by any Company Cooperation Party or require any Company Cooperation Party to make a representation, warranty or certification that, in good faith determination of such Person, is not true, (iii) require any Company Cooperation Party to (A) pay any commitment or other documentation similar fee or incur any other expense, liability or obligation in connection with the Debt Financing that would is not reimbursed by Parent and/or Merger Sub at the Closing or (B) require any Company Cooperation Party to enter into or approve any Debt Financing that is not conditioned on the occurrence of the Closing or have any obligation of any Company Cooperation Party under any agreement, certificate, document or instrument be effective until the Closing or (iv) cause any director, officer, employee or stockholder of the Company Cooperation Parties to incur any personal liability, (v) conflict with or violate the organizational documents of the Company Cooperation Parties or any applicable Laws or any applicable Judgment or result in the disclosure of trade secrets or competitively sensitive information to third parties and/or jeopardize the protection of an attorney-client privilege, attorney work product protection or other legal privilege, (vi) conflict or be reasonably expected to result in a violation or breach of, or a default (with or without notice, lapse of time, or both) under, any Contract to which any of the Company Cooperation Parties is a party, (vii) require any of the Company Cooperation Parties to prepare any financial statements or information that are not available to it and prepared in the ordinary course of its financial reporting practice, (viii) provide or deliver any internal or external legal opinions by the Company Cooperation Parties, (ix) require any of the Company Cooperation Parties to consent to a pre-filing of UCC-1s or any other grant of Liens or that result in any Company Cooperation Party being responsible to any third parties for any representations or warranties prior to the Closing or (4x) require the Company, any of the Company Subsidiaries Cooperation Parties to prepare or deliver any Excluded Information. Nothing contained in this Section 5.08 or otherwise shall require any of their respective boards of directors (or equivalent bodies) the Company Cooperation Parties, prior to approve or authorize the FinancingClosing, and (ii) no action, liability or obligation (including any obligation to pay any commitment be an issuer or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating obligor with respect to the Debt Financing shall be effective until or other financing prior to the Closing.
(c) Parent shall (i) promptly upon request by shall, promptly, and in no event later than ten Business Days of the Company’s written request therefor, reimburse the Company Cooperation Parties for all of its fees and expenses (including fees and expenses of counsel and accountants) reasonable costs incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives Cooperation Parties in connection with any cooperation contemplated by fulfilling their respective obligations pursuant to this Section 5.05 5.08 (including all reasonable out-of-pocket costs and (iiattorneys’ fees and expenses) and shall indemnify and hold harmless the Company, the Company Subsidiaries Cooperation Parties from and its and their Representatives against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgment, award, penalty, fine, Tax, cost expenses (including cost of investigationattorneys’ fees and expenses), expense (including fees interest, awards, judgments and expenses of counsel and accountants) penalties suffered or settlement payment incurred as a result of, or by them in connection withwith the Debt Financing, such cooperation any action taken by them at the request of Parent or the Financing its Representatives pursuant to this Section 5.08 and any information used in connection therewiththerewith or used with the cooperation by the Company Cooperation Parties, except if such liabilities or other losses are the result of the fraud, gross negligence or willful misconduct of the Company Cooperation Parties.
(d) The parties hereto acknowledge and agree that the provisions contained in this Section 5.08 represent the sole obligations of the Company Cooperation Parties with respect to cooperation in connection with the arrangement of any financing (including the Financing) to be obtained by Parent and/or Merger Sub with respect to the Transactions and the Commitment Letters, and no other provision of this Agreement (including the Exhibits and Schedules hereto) or the Commitment Letters shall be deemed to expand or modify such obligations. In no event shall the receipt or availability of any funds or financing (including the Financing) by Parent, Merger Sub or any of their respective Affiliates or any other financing or other transactions be a condition to any of Parent’s or Merger Sub’s obligations under this Agreement.
(e) All non-public or otherwise confidential information regarding the Company Cooperation Parties obtained by Parent or its Representatives pursuant to this Section 5.08 shall be kept confidential in accordance with the Confidentiality Agreement. Parent and its Affiliates shall have the right to use the name and logo of the Company or any of its Affiliates in connection with any Financing; provided, that such name and logos shall be used solely in a manner that is not intended or reasonably likely to harm, disparage or otherwise adversely affect in any material respect the Company, any of its Subsidiaries or any of its or their respective Affiliates or Representatives.
(f) Notwithstanding anything to the contrary in this Agreement, the failure of the Company to comply with this Section 5.08 shall not give rise to the failure of a condition precedent set forth in Section 6.02(b) or a right to terminate this Agreement pursuant to Section 7.01(c)(i) unless such failure is the result of a knowing and intentional breach by the Company of any provision of this Section 5.08.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentEffective Time, the Company will shall, and shall cause each of its Subsidiaries to, and shall use its reasonable best efforts to cooperate with cause its Representatives and each of its Subsidiaries to, provide to Parent such reasonable cooperation, at Parent’s sole expense, as may be reasonably requested by Parent to assist Parent in causing the conditions in the Financing Agreements to be satisfied and its Affiliates such cooperation as is otherwise necessary and reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by and the Debt Letters). Such Payoff, which cooperation will include using reasonable best efforts toincludes:
(i) make appropriate using reasonable best efforts to cause its senior executive officers reasonably available, with appropriate advance notice, for participation to participate in bank a customary and reasonable number of meetings, presentations and due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish using reasonable best efforts to provide information necessary or appropriate in connection with the preparation of a customary bank information memoranda and bank syndication materials, offering documents, private placement memoranda and similar documents required in connection with the Financing, including the syndication thereof, provided, that any such bank information memoranda and bank syndication materials, offering documents, private placement memoranda and similar documents shall contain disclosure and pro forma financial statements reflecting the Surviving Corporation and/or its Subsidiaries as the obligor;
(iii) (A) furnishing Parent and the Financing Parties Sources as promptly as practicable with copies quarterly and monthly financial statements (including financial statements for the months ended October 31, 2010 and November 30, 2010 and for each month thereafter) in the form contemplated by Section 4.1(e)(vi); provided that the filing by the Company of such the foregoing financial data statements in its Annual Report on Form 10-K or its Quarterly Report on Form 10-Q, as applicable, shall be deemed to satisfy the foregoing requirements with respect to the Company Entities for all purposes of this Agreement, and its Subsidiaries which is prepared by (B) using reasonable best efforts to furnish all financial statements, business and other financial data, audit reports and other information regarding the Company in Entities of the ordinary course of business or can type that would be prepared required by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X and Regulation S-K promulgated under the Securities Act for a registered public offering of 1933non-convertible debt securities of the Company (provided that Parent shall be responsible for the preparation of pro forma financial statements), as amendedto the extent the same is of the type and form customarily included in an offering memorandum, private placement memorandum, prospectus and identify any such financial information as suitable similar documents for distribution private placements of non-convertible high-yield bonds under Rule 144A promulgated under the Securities Act or otherwise necessary to “public side” lenders;
(iii) request that receive from the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters “comfort” (including “negative assurance” comfort), including in ) with respect of historical financial statements of the Company, to the extent required financial information to be included in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten such offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingmemorandum;
(iv) furnish requesting the auditors of the Company to legal counsel cooperate with Parent’s reasonable efforts to obtain customary comfort letters upon completion of customary procedures in connection with the Financing;
(v) using reasonable best efforts to cooperate with Parent’s efforts to obtain consents, landlord waivers and estoppels, non-disturbance agreements, appraisals of any Owned Real Property, surveys and title insurance (including providing reasonable access to Parent and its Representatives to legal counsel of any Financing Party such information all Owned Real Property and Real Property Leases and Personal Property Leases) as may be reasonably requested by such counsel Parent;
(vi) reasonably cooperating to permit the prospective lenders involved in connection with any legal opinion that such counsel may the Financing to evaluate the Company Entities’ current assets, cash management and accounting systems, policies and procedures relating thereto for the purpose of establishing collateral arrangements to the extent customary and reasonable;
(vii) requesting customary payoff letters, Lien terminations and instruments of discharge to be required delivered at the Merger Closing to deliver allow for the payoff, discharge and termination in connection with such Financingfull on the Merger Closing Date of all indebtedness and Liens under the Existing Credit Agreement (the “Debt Payoff”); and
(vviii) furnish furnishing Parent and its Financing Sources promptly, and in any event at least five days prior to the Financing PartiesMerger Closing Date, within five (5) Business Days following written request, such with all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities Governmental Entities with respect to the Financing under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. ; provided, furtherthat, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): 6.9) (iA) nothing in this Agreement (including this Section 5.056.9) shall require any such cooperation to the extent that it would (1) require the Company Entities or their Representatives, as applicable, to waive or amend any terms of this Agreement or agree to pay any commitment or other fees, fees or reimburse any expenses prior to the Effective Time, or otherwise incur any liabilities liability or give any indemnities prior or otherwise commit to take any action that is not contingent upon the ClosingEffective Time, (2) unreasonably and materially interfere with the ongoing business or operations of the Company or the Company SubsidiariesEntities, (3) require the Company Entities to take any action that will conflict with or violate the Company Entities’ organizational documents or any Laws or the Existing Credit Agreement or result in the contravention of, or that would reasonably be expected to result in a violation or breach of, or default under, any Contract to which any of the Company Subsidiaries Entities is a party, (4) require the Company Entities to enter into or approve any financing or purchase agreement or other for the Financing (excluding the delivery of documentation effective prior related to the Closing financing that will become effective at or agree to following the Effective Time), (5) result in any change or modification significant interference with the prompt and timely discharge of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, material duties of any of the Company’s executive officers, or (6) result in any officer or director of the Company Subsidiaries or Entities incurring any of their respective boards of directors (or equivalent bodies) personal liability with respect to approve or authorize any matters relating to the Financing, and (iiB) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, Company Entities or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Effective Time, (C) any bank information memoranda required in relation to the Financing need not be issued by the Company Entities and shall contain disclosure and pro forma financial statements reflecting the Surviving Corporation and/or its Subsidiaries as the obligor, and (D) notwithstanding anything to the contrary, the Parties agree that any road shows, preparation of documents (including bank information memoranda or other offer documents in connection with the Financing) and provision of information with respect to the prospects and plans for the Company’s business and operations, in each case under this clause (D), in connection with the Financing remains the sole responsibility of Parent and Merger Sub and none of the Company Entities or any of their respective Representatives shall have any liability or incur any losses, damages or penalties with respect thereto or be required to provide any information or make any presentations with respect to capital structure, or the incurrence of the Financing or other pro forma information relating thereto or the manner in which Parent intends to operate, or cause to be operated, the business of the Surviving Corporation and its Subsidiaries after the Merger Closing.
(b) The Company and its Representatives shall be indemnified and held harmless by Parent and Merger Sub for and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by them in connection with the arrangement of the Financing, the Debt Payoff and/or the provision of information utilized in connection therewith to the fullest extent permitted by applicable Law.
(c) Parent shall (i) promptly upon request by The Company hereby consents to the Companyuse of the trademarks, reimburse the Company for all of its fees service marks and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any logos of the Company SubsidiariesEntities in connection with the Financing; provided that such trademarks, service marks or logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company Entities or the reputation or goodwill of the Company Entities or any of its their respective intellectual property rights.
(d) All non-public or other confidential information regarding the Company Entities obtained by Parent, Merger Sub or their Representatives pursuant to this Section 6.9 shall be kept confidential in accordance with the Confidentiality Agreements; provided, that, with the Company’s prior written consent (which shall not be unreasonably withheld, conditioned or delayed), Parent and Merger Sub shall be permitted to disclose such information to potential sources of capital, prospective lenders and investors and their respective Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing so long as such persons agree to be bound by the Confidentiality Agreements or other customary confidentiality undertaking.
(e) Subject to the terms and any information used conditions hereof, at the earlier of the Offer Closing and the Merger Closing, Parent shall cause the indebtedness under the Existing Credit Agreement to be satisfied and discharged in connection therewithaccordance with the terms thereof.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts to cooperate with Parent provide, and to cause its Subsidiaries (and its Affiliates as reasonably and their Representatives) to use their respective reasonable best efforts to provide, to Parent (at Parent’s sole expense) such reasonable cooperation requested by Parent in connection with Parent’s arrangement of the Financing (whichprovided that such cooperation does not unreasonably interfere with the ongoing operations of the Company and its Subsidiaries) including, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using its reasonable best efforts to:
(i) make appropriate officers reasonably availablecooperating with any marketing efforts of Parent and the Lenders for any portion of the Financing, including using reasonable efforts to ensure that the marketing and syndication efforts benefit from the existing banking relationships of the Company and its Subsidiaries and assisting with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential materials for customary rating agency presentations, bank information memoranda, private placement memoranda, prospectuses, presentations memoranda and similar documents syndication and marketing materials necessary for the Financing; participating in a reasonable and limited number of meetings (including customary meetings among the finance providers, prospective lenders and investors, and senior management and representatives of the Company and its Subsidiaries and meetings with rating agencies) and providing customary authorization letters to the financing providers authorizing the distribution of information to prospective lenders or investors and containing a representation to the Lenders that the public side versions of such documents, if any, do not include material non-public information about the Company or its Subsidiaries or its or their respective securities and executing ratings agency engagement letters as required in connection with the Financing (provided, that the Company shall not be required to pay any cost or expenses relating to rating agency engagement letters);
(ii) providing all reasonably available financial information (including, without limitation, any additional financial information required under the Commitment Letter) as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the structuring, arrangement and syndication of financings the Financing and that is customary to be included in marketing materials for senior secured indebtedness (or any documentation or deliverables in connection therewith) similar to the Financing committed pursuant to Financing; provided that the Debt Letters, including such information necessary to allow Parent to prepare pro forma filing of the required financial statements in accordance on Form 10-K and Form 10-Q will satisfy the requirements of this clause with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, respect to annual and identify any such financial information as suitable for distribution to “public side” lendersquarterly financials;
(iii) request that reasonably assisting in (x) the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Companypreparation and, to the extent required the Company or any of its Subsidiaries becomes a borrower or a guarantor under the definitive financing documents on or after the Closing, execution and delivery of one or more credit or other agreements governing the Financing, as well as any security documents, intercreditor documents, certificates or other definitive or ancillary financing documents in connection with the marketing Financing and syndication (y) the facilitation of Financing pledging of collateral and provision of payoff letters and lien releases, it being understood that any documents contemplated by this subsection (including as set forth in iii) will not become effective until the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingClosing;
(iv) furnish to legal counsel of Parent providing promptly (and to legal counsel of in any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within event at least five (5) Business Days following written request, before Closing; provided that the request for such information has been made at least ten (10) Business Days prior to the Closing Date) to Parent and its financing sources all documentation and other information as any Financing Party may reasonably determine is requested by such financing sources which are required by regulatory authorities under to comply with applicable “know your customer” ”, beneficial ownership and anti-money laundering rules and regulationsregulations (including the USA Patriot Act and the Lenders’ corresponding internal policies of general application to all borrowers and guarantors);
(v) obtaining and delivering to Parent, including without limitation at least one (1) Business Day prior to the PATRIOT Act. Closing Date, an executed pay-off letter in customary form reasonably acceptable to Parent with respect to the Credit Agreement; and
(vi) taking all corporate and other actions, subject to the occurrence of the Closing, reasonably requested by Parent to permit the consummation of the Financing, provided, furtherhowever, that nothing in this Agreement herein shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would, or would be likely to, (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) interfere unreasonably interfere with the ongoing business or operations of the Company or any of its Subsidiaries, (2) require the Company Subsidiariesor any of its Subsidiaries to take any action that will conflict with or violate the Company’s or any such Subsidiary’s constitutional documents or any applicable Law, (3) require the Company or any of the Company its Subsidiaries to enter into or approve any agreement documentation referred to in paragraph (iii) above that takes effect or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be is effective prior to the Closing or (4) require the Company or any of its Subsidiaries to bear any out of pocket cost or expense or pay any fee (other than those costs and fees that Parent commits to reimburse) or provide any indemnity, in each case effective prior to the Closing (5) give any indemnities in connection with the Financing that are effective prior to the Closing, (6) provide in connection with the Financing any information the disclosure of which is prohibited or restricted under Law or is legally privileged, (7) require the pre-Closing Board of Directors of the Company and the directors, managers and general partners of the Company’s Subsidiaries to adopt resolutions approving the agreements, documents and instruments pursuant to which the Financing is obtained, (8) require the Company or any of its Subsidiaries to take any corporate actions prior to the Closing to permit the consummation of the Financing, or (9) require the Company or any of its Subsidiaries to provide (A) the preparation of pro forma financial information, including pro forma cost savings, synergies, capitalization or other pro forma adjustments desired to be incorporated into any pro forma financial information, (B) any description of all or any component of the Financing, including any such description to be included in any liquidity or capital resources disclosure or any “description of notes”, (C) projections, risk factors or other forward-looking statements relating to all or any component of the Financing, (D) Subsidiary financial statements or any other information of the type required by Rule 3-09, Rule 3-10 or Rule 3-16 of Regulation S-X, (E) Compensation Disclosure and Analysis required by Item 402(b) of Regulation S-K, or (F) any solvency certificate or similar certification or representation; provided, however, that notwithstanding anything herein to the contrary, the Company shall be obligated to provide projections (of the type that are customary to be included in private side marketing materials for senior secured indebtedness similar to the Financing) and other customary forward-looking information relating to the Company’s future performance for use in private side marketing materials. Nothing in this Section 5.18 will require (1) any officer or Representative of the Company or any of its Subsidiaries to deliver any certificate or opinion or take any other action that could reasonably be expected to result in personal liability to such officer or Representative, or (2) the members of the Company Board as of immediately prior to the Closing to approve any financing or Contracts related thereto. For the avoidance of doubt, any action taken by the Company or its Subsidiaries in accordance with this Section 5.18 shall not be deemed to breach any of the Company’s or its Subsidiaries obligations under Section 5.01.
(b) Parent shall promptly reimburse the Company and its Subsidiaries for all out-of-pocket costs and expenses (including reasonable legal fees and expenses) incurred by the Company and/or any of its Subsidiaries in connection with providing the support and cooperation contemplated by this Section 5.18. Parent shall indemnify and hold harmless the Company and each of its Subsidiaries, and each of their respective directors, officers, employees, agents and other representatives, from and against any and all damages, claims, interest, costs or expenses (including reasonable legal fees and expenses), awards, judgments, penalties and amounts paid in settlement suffered or incurred by any of them in connection with the arrangement of the Financing (including any information utilized in connection therewith and any misuse of the logos or marks of the Company or its Subsidiaries in each case prior to the Closing occurring), except to the extent that such losses arise out of or in connection with the willful misconduct or fraud by the Company or any of their respective boards of directors its Subsidiaries.
(c) Subject to the Parent’s indemnification obligations under this Section 5.18, Parent shall be entitled to use the Company’s or equivalent bodies) to approve or authorize its Subsidiary’s logos in connection with the Financing; provided that such logos (i) are used solely in a manner that is not intended or likely to harm or disparage the Company or any of its Subsidiaries or the reputation or goodwill of the Company or any of its Subsidiaries, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) are used solely in connection with a description of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees business and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation operations or the Financing and any information used in connection therewithTransactions.
Appears in 1 contract
Financing Cooperation. (a) From During the period from the date hereof until through the earlier of the Closing (Date or the earlier date of termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentAgreement, the Company will shall use its reasonable best efforts to cooperate provide, and shall cause its Subsidiaries to use reasonable best efforts to cause their respective Representatives to provide, in each case at Parent’s sole expense, such customary cooperation as may be reasonably requested in writing (which, for purposes of this Section 6.14 may be through email) by Parent in connection with Parent the arrangement of the Debt Financing, including using reasonable best efforts to: (i) as promptly as practicable furnish the Required Financial Information and other pertinent and customary information regarding the Company and its Affiliates Subsidiaries and their real property assets as may be reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using Financing and customary in similar financings; (ii) (A) upon reasonable best efforts to:
(i) make appropriate officers reasonably availableadvance notice and at reasonable times and locations, participate in a reasonable number of meetings and presentations with appropriate advance noticearrangers or agents, for participation in bank meetingsprospective lenders and other investors and sessions with rating agencies, due diligence sessions and drafting sessions (in each case which may be telephonic or virtual meetings or sessions, meetings as circumstances require) and otherwise cooperate with the marketing and due diligence efforts for any of the Debt Financing (including use of commercially reasonable efforts to ensure that the Debt Financing Sources and their advisors and consultants shall have sufficient access to the Company and its Subsidiaries to complete any necessary audits or appraisals of the assets of the Company and its Subsidiaries (including with respect to any assets comprising any “borrowing base” in respect of the Land Bank Financing)), (B) assist Parent in obtaining ratings agencies and road showsin connection with the Debt Financing, reasonable assistance (C) reasonably cooperate in the preparation of confidential materials for rating agency presentations, offering memoranda, marketing materials, bank information memoranda, private placement memoranda, prospectuses, lender presentations and or similar documents as may be reasonably requested by Parent or any in connection with the Debt Financing Party(collectively, in each case, with respect to the “Offering Documents”) (including (x) confirming the absence of material non-public information relating to the Company and its Subsidiaries or their securities contained therein upon request by P▇▇▇▇▇ and (y) the delivery of customary authorization letters authorizing the distribution of information to prospective lenders or investors), (D) assist Parent with the preparation of pro forma financial information and pro forma financial statements to the extent reasonably requested by Parent or the Debt Financing Sources to be included in any Offering Documents (provided that the Company and its Subsidiaries shall not be responsible for the preparation of any pro forma financial information, pro forma financial statements or pro forma adjustments in connection with the Debt Financing), and (E) request and facilitate the Company’s independent accountants to (1) provide (x) auditors consents and reports reasonably required for the Offering Documents and (y) comfort letters (including customary marketing efforts of Parent “negative assurance” comfort and change period comfort) with respect to the financial information relating to the Company and its Affiliates for all or any portion Subsidiaries contained in the Offering Documents that are customary in connection with high-yield financings of the Financing;
type contemplated as part of the Debt Financing and (ii2) furnish attend a reasonable number of accounting due diligence and drafting sessions; (iii) provide Parent and the Debt Financing Parties Sources, at least four (4) Business Days prior to the Closing (as long as requested at least eight (8) Business Days prior to the Closing), with copies of such financial data all documentation and other information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is shall have been reasonably requested in writing by Parent or any Debt Financing Party and Source that is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Debt Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by U.S. regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT ActUSA Patriot Act of 2001, and the requirements of 31 C.F.R. §1010.230; and (iv) (A) take all corporate actions, subject to the occurrence of the Closing, reasonably required to permit the consummation of the Debt Financing (it being understood that no such action shall be required of the Company Board prior to the Closing), (B) reasonably cooperate in satisfying the conditions precedent set forth in the Debt Commitment Letter or any definitive document relating to the Debt Financing, to the extent the satisfaction of such condition requires the cooperation of, or is within the control of, the Company and its Subsidiaries and (C) assist with the preparation of definitive financing documentation, to the extent reasonably requested by Parent, and execute and deliver any such documents (including a certificate of the chief financial officer of the Company with respect to solvency matters in the form set forth as an exhibit to the Debt Commitment Letter) as may be reasonably requested by P▇▇▇▇▇. provided, further, that nothing Notwithstanding anything to the contrary in this Agreement shall Section 6.14(a), nothing will require the Company to cause provide (or be deemed to require the delivery of Company to prepare) any (1) legal opinions pro forma financial information or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), pro forma financial statements; (2) information regarding any financial information for post-Closing or pro forma cost savings, synergies, capitalization, ownership or other post-Closing pro forma adjustments; (3) description of all or any periodportion of the Debt Financing, including any audited financial information “description of notes” or any financial information prepared customarily provided by a lead arranger, underwriter, initial purchaser or their counsel or advisors in accordance with Regulation Sa customary information memorandum or offering memorandum for a secured bank financing or high yield debt securities, as applicable, including sections customarily drafted by a lead arranger or an initial purchaser or underwriter or their counsel or advisors, such as those regarding confidentiality, timelines, syndication process, limitations of liability and plan of distribution; (4) risk factors relating to all or any component of the Debt Financing; (5) other information required by Rules 3-K 10 or 3-16 of Regulation S-X under the Securities Act Act, any Compensation Discussion and Analysis or other information required by Item 402 of 1933Regulation S-K under the Securities Act, as amended, in or any case in a form not other information customarily prepared by excluded from an offering memorandum for private placements of non-convertible high-yield debt securities under Rule 144A promulgated under the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or Securities Act; (36) any financial information with respect to a month any Person other than the Company and its Subsidiaries; or fiscal period that has (7) any information not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior reasonably available to the date of such requestCompany or its Subsidiaries under their respective current reporting systems (the foregoing clauses (1) through (7) is referred herein as “Excluded Information”).
(b) Notwithstanding anything in Section 6.14(a) to the contrary contained in this Agreement (including this Section 5.05): contrary, (i) nothing in this Agreement (including this Section 5.05) 6.14 shall require any such cooperation to the extent that it would unreasonably disrupt or interfere (1in the reasonable judgment of the Company) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or the operations of the Company or the Company Subsidiaries, (3ii) nothing in this Section 6.14 shall require cooperation to the Company extent that it would (A) subject any of the Company’s or its Subsidiaries’ respective Representatives to any personal liability with respect to matters related to the Debt Financing, (B) conflict with, or violate, the Company’s or any of the Company Subsidiaries to enter into its Subsidiaries’ organizational documents, material contractual obligations or approve any agreement or other documentation effective prior applicable Law, (C) cause any condition of Parent and Merger Sub to the Closing or agree set forth in Article 7 to any change or modification of any existing agreement or other documentation that would not be effective prior to the Closing satisfied or (4D) require cause any breach of this Agreement, (iii) neither the Company, Company nor any of the Company its Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation Representatives shall be required to pay any commitment or other fees similar fee or reimburse incur or assume any expensesliability or other obligation in connection with the financings contemplated by the Debt Commitment Letter or the Financing prior to the Effective Time or be required to take any action that would subject it to liability, to bear any cost or expense or to make any other payment or agree to provide any indemnity in connection with the Debt Commitment Letter, the Financing or any information utilized in connection therewith, in each case, that would not be reimbursed or indemnified by Parent or Merger Sub, (iv) none of the Company, its Subsidiaries or their respective Representatives shall be required to execute, deliver or enter into, or perform any agreement, certificate, document or instrument with respect to the Financing that is not contingent upon the Closing (other than any authorization letter contemplated by Section 6.14(a) or any certificate, document, instrument or agreement in accordance with Section 6.14(c) or Section 6.14(f)) and the directors and managers of the Company and its Subsidiaries shall not be required to adopt resolutions approving the agreements, documents and instruments pursuant to which the Financing is obtained unless Parent and Merger Sub shall have determined that such directors and managers are to remain as directors and managers of such Person on and after the Closing and such resolutions are contingent upon the occurrence of, or only effective as of, the Closing, (v) disclosure of any confidential information to the Debt Financing Sources shall be made subject to the acknowledgment and acceptance by such Debt Financing Source that such information is being disseminated on a confidential basis in accordance with (x) the Confidentiality Agreement (under which such Debt Financing Source and their applicable Representatives shall be deemed to constitute “Representatives”) or (y) customary “click through” confidentiality arrangements or other customary market standards for dissemination of such type of information and (vi) neither the Company nor any of its Subsidiaries shall be required to take any action requiring the Company or any of its Subsidiaries to disclose information subject to any attorney-client, attorney work product or other legal privilege (provided that the Company shall use commercially reasonable efforts to allow the disclosure of such information (or as much of it as reasonably possible) in a manner that does not result in a loss of attorney client, attorney work product or other legal privilege). The Company hereby consents to the use of its and its Subsidiary’s logos in connection with the Debt Financing; provided that such logos are used solely in a manner that is not intended to, nor reasonably likely to, harm or disparage the Company’s or the Company’s Subsidiaries, ’ reputation or goodwill or any of their respective Representatives under any certificateproducts, agreementservices, arrangement, document offerings or instrument relating to the Financing shall be effective until the Closingintellectual property rights.
(ci) Parent shall (i) promptly upon request by will be permitted to commence and conduct, in accordance with the Company, reimburse terms of the Company for Senior Notes Indenture and the Company Note Purchase Agreement, as applicable, one or more offers to purchase, including any “Change of Control Offer” (as such term is defined in the Company Senior Notes Indenture) and “Mandatory Offer to Repurchase” (as such term is defined in the Company Note Purchase Agreement) and/or any tender offer, or any exchange offer, and to conduct a consent solicitation, if any (each, a “Debt Offer” and collectively, the “Debt Offers”), with respect to any or all of the outstanding aggregate principal amount of the Company Senior Notes identified by Parent to the Company in writing after the date of this Agreement on terms that are acceptable to Parent; provided that any such Debt Offer shall be (A) in compliance with applicable Law, the terms of the Company Senior Notes Indenture or the Company Note Purchase Agreement, as applicable, and any other rights of any holder of the Company Senior Notes and the terms of this Section 6.14(c), (B) at the sole expense of Parent, and (C) consummated using funds provided by Parent. Parent shall not be permitted to commence any applicable Debt Offer until Parent shall have provided the Company with the necessary offer to purchase, offer to exchange, consent solicitation statement, letter of transmittal and press release, in each case if any, in connection therewith and each other document relevant to such transaction that will be distributed by Parent to holders of the Company Senior Notes in the applicable Debt Offer (collectively, the “Debt Offer Documents”) a reasonable period of time in advance of commencing the applicable Debt Offer to allow the Company and its fees counsel to review and expenses comment on the related Debt Offer Documents (in each case, at Parent’s sole expense), which comments shall be considered by Parent in good faith. Parent will reasonably consult with the Company regarding the material terms and conditions of any Debt Offer (other than financial terms), including fees the timing and expenses commencement of counsel any Debt Offer and accountantsany relevant tender or consent deadlines. Parent shall expressly condition the closing (or, if applicable, effectiveness) incurred of any of the Debt Offers on the occurrence of the Closing, and the Company will use reasonable best efforts to cooperate with Parent, at Parent’s request and sole expense, to facilitate the initial settlement of the Debt Offers by Parent on the CompanyClosing Date. Subject to the terms and conditions of this Section 6.14(c), at Parent’s sole expense, the Company shall, and shall cause its Subsidiaries and their respective Representatives to, in each case, use their reasonable best efforts to provide all cooperation reasonably requested by Parent in connection with the Debt Offers; provided that prior to the Closing, neither the Company nor any of the Company Subsidiaries, nor Representative for the Company or any of its Subsidiaries shall be required to furnish any officer’s certificates, legal opinions or their Representatives negative assurance letters, as applicable, in connection with the Debt Offers, (other than in connection with the execution of a supplemental indenture and/or an amendment relating to any cooperation contemplated by this Section 5.05 and consent solicitation of the type described in clause (ii) indemnify below), the Company delivering customary officer’s certificates, and hold harmless using reasonable best efforts to cause counsel for the Company to deliver customary legal opinions (which opinions shall include customary reliance provisions permitting any solicitation agents retained by Parent or Merger Sub in connection with the Debt Offer to rely on the matters set forth in such opinions), respectively, to the trustee under the Company Senior Notes Indenture or the agent under the Company Note Purchase Agreement, to the extent such certificates and opinions would not (in the reasonable opinion of the Company, its counsel and the trustee or the agent, as applicable) conflict with applicable Laws, the applicable terms of the Company Senior Notes, or the Company Senior Notes Indenture or the Company Note Purchase Agreement, as applicable, and would be accurate in light of the facts and circumstances at the time delivered) or execute any other instruments or agreements in connection therewith other than the supplemental indenture and/or amendment described in clause (ii) below. The Company will not be required to cooperate with respect to any Debt Offer that would reasonably be expected to be inconsistent with the terms of the Company Senior Notes Indenture, the Company Note Purchase Agreement, the Company Credit Facility or applicable Law, would reasonably be expected to result in a breach under any material Contract or agreement of the Company or its Subsidiaries, would reasonably be expected to cause any covenant, representation or warranty in this Agreement to be breached by the Company or any of its Subsidiaries or would become operative before the Closing Date.
(ii) To the extent any Debt Offer includes a consent solicitation, subject to the receipt of any requisite consents, the Company and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) Subsidiaries will execute one or settlement payment incurred as a result of, more supplemental indentures to the Company Senior Notes Indenture or one or more amendments to the Company Note Purchase Agreement in connection with, such cooperation accordance with the Company Senior Notes Indenture or the Financing Company Note Purchase Agreement, as applicable, amending the terms and any information used provisions of the Company Senior Notes Indenture or the Company Note Purchase Agreement, as applicable, as described in connection therewith.the Debt Offer Documents as reasonably requested by Parent (and
Appears in 1 contract
Financing Cooperation. (a) From The Sellers and the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05Group Companies shall, and unless otherwise agreed by Parentshall cause their respective officers, the Company will directors, principals and employees to use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using their respective reasonable best efforts to:
(i) make appropriate officers furnish to Parent and the Financing Sources, as promptly as reasonably available, practicable with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies financial and road shows, reasonable assistance in other pertinent information regarding the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations Sellers and similar documents the Group Companies as may be reasonably requested by Parent or any Financing PartyParent, in each caseincluding: (A) the Required Information, with respect to information relating to (B) the Company Offering Information and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for (C) all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such other financial data with respect regarding the Group Companies required to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow permit Parent to prepare customary pro forma financial statements in accordance with meeting the requirements of Article 11 of Regulation S-X under the Securities Act of 1933and, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date case of this Agreementclauses (B) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfortC), including in respect meeting the requirements of historical Rule 3-05 of Regulation S-X under the Securities Act, and, following the request of Parent, all other financial statements of and other information regarding the Company, to the extent Group Companies as is customarily required in connection with the marketing and syndication of Financing any Offering (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingdefined below);
(ivii) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) at least three Business Days following written requestprior to the Closing Date, such all documentation and other information as any Financing Party may reasonably determine requested by Parent in writing to GA Inc. at least 10 Business Days prior to the Closing Date that is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT ActUSA Patriot Act (Title III of Pub. providedL. 107-56 (signed into law October 26, further2001)) and 31 C.F.R. § 1010.230 (the “Beneficial Ownership Regulation”);
(iii) as promptly as reasonably practicable, inform Parent if any of the Sellers or Group Companies have knowledge of any facts, errors or omissions that nothing in this Agreement shall could be expected to (x) require the Company restatement of any financial statements comprising a portion of the Required Information or Offering Information in order for such financial statements to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii)comply with GAAP, (2y) result in any of the Required Information or Offering Information containing any untrue statement of a material fact or omitting to state any material fact regarding the Group Companies or Greenspring Associates, LLC, as applicable, necessary in order to make such financial information, in light of the circumstances under which the statements contained in the financial information for are made, not misleading or (z) result in any period, including any audited financial information of the Required Information or any financial information prepared Offering Information not being compliant in accordance all material respects with all applicable requirements of Regulation S-X and Regulation S-K or Regulation S-X under the Securities Act for a registered public offering of 1933equity or debt securities; and in each case provide appropriate updates to the Required Information or Offering Information such that no such restatement will be required, no such untrue statement of a material fact or omission to state a material fact will exist, and no such noncompliance will exist; and
(iv) as amendedpromptly as reasonably practicable, in any case in a form not customarily prepared by inform Parent if the Company auditors providing an audit opinion with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any of the financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, statements contained in the case of a fiscal year, 60 days) prior to the date of Required Information or Offering Information shall have withdrawn such requestaudit opinion.
(b) Notwithstanding anything In addition, the Sellers and the Group Companies shall provide, and cause their respective officers, directors, principals and employees to provide, and use commercially reasonable efforts to cause their third-party Representatives to provide, at Parent’s sole cost and expense, to Parent all cooperation reasonably requested by Parent and/or the contrary contained Financing Sources that is necessary, proper or advisable in this Agreement connection with the arrangement of financing of Parent (including this Section 5.05): the Financing and/or other debt or equity offerings) in connection with the transactions contemplated hereby (ieach, an “Offering”) nothing in this Agreement (including this Section 5.05) shall require any provided, that such requested cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) does not unreasonably interfere with the ongoing business or operations of the Company or Group Companies), including using reasonable best efforts to do the Company Subsidiariesfollowing:
(i) comment on and assist with the preparation of (and, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior extent reasonably requested by the Parent and reasonably available to the Closing or Sellers and the Group Companies, providing information and materials to be used in the preparation of) customary offering documents (4including prospectuses and prospectus supplements) require for the CompanyOfferings, any of customary rating agency presentations, information memoranda, lender presentations, road show presentations and other customary marketing materials (and the Company Subsidiaries or any Sellers hereby consent to the use of their respective boards of directors (or equivalent bodies) to approve or authorize and the Financing, and Group Companies’ logos in connection therewith);
(ii) no actionexecute and deliver (or obtain from its advisors), liability or obligation customary certificates, authorization letters included in any information memorandum used in connection with the marketing of any financing, independent accounting firm consent and comfort letters and other similar items reasonably requested by the Parent, including, in any case, the consent of the independent accountants of the Group Companies to the inclusion of their audit reports with respect to the financial statements furnished pursuant to Section 5.14(b) and the applicable audited annual financial statements of the Group Companies in any registration statement of the Parent filed with the SEC, if any, relating to any Offering and causing such independent accountants to (A) provide customary comfort letters (including any obligation to pay any commitment or other fees or reimburse any expenses“negative assurance” comfort and change period comfort, if appropriate) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 Offering to the applicable underwriters, initial purchasers or placement agents and (iiB) indemnify participate in customary accounting due diligence calls with any such underwriters, initial purchasers or placement agents;
(iii) cooperate reasonably with the due diligence of the Financing Sources or any underwriters of any Offering to the extent customary and hold harmless reasonable and to the Company, extent not unreasonably interfering with the Company Subsidiaries ongoing operations of the Group Companies;
(iv) assist reasonably in preparation for and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost participation in marketing efforts (including cost of investigationlender meetings and calls), expense presentations, road shows, due diligence sessions (including fees accounting due diligence sessions) and expenses sessions with rating agencies;
(v) facilitate the pledge of collateral to the Financing Sources;
(vi) cooperate with Parent’s legal counsel and accountants) or settlement payment incurred as a result of, or in connection withwith preparation of perfection certificates, such cooperation or disclosure schedules, closing certificates and legal opinions; and
(vii) permit the Financing and any information used reasonable use of the logos of the Group Companies in connection therewithwith the marketing any financing obtained by the Parent.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing Buyer shall: (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will i) use its reasonable best efforts to cooperate take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, advisable or desirable, to (A) satisfy the conditions of the Commitment Letter that are within its control, (B) negotiate and enter into definitive agreements with Parent respect thereto on the terms and conditions contemplated by the Commitment Letter and (C) obtain at the Closing the debt financing contemplated by the Commitment Letter (the “Debt Financing”); and (ii) not amend, modify or terminate, or agree to amend, modify or terminate, the Commitment Letter without the prior written consent of the Designated Representative if such amendment, modification or termination would materially delay the Closing or materially and adversely affect the ability of the Buyer to consummate the transactions contemplated by this Agreement; provided, however, that if funds in the amounts and on the terms set forth in the Commitment Letter become unavailable to Buyer on the terms and conditions set forth therein, Buyer shall use its commercially reasonable efforts to obtain alternative debt financing (the “Alternative Financing”) to the extent available in amounts and otherwise on terms and conditions no less favorable in the aggregate to Buyer than as set forth in the Commitment Letter; provided, that if Buyer proceeds with Alternative Financing, it shall be subject to the same obligations as set forth in this Section 5.14(a) with respect to the Debt Financing and the MBS Parties shall be subject to the same obligations as set forth in Section 5.14(b) with respect to the Debt Financing. Buyer shall keep the MBS Parties apprised of material and adverse developments relating to the Debt Financing and shall promptly notify the MBS Parties if the Debt Financing becomes unavailable in the manner contemplated in the Commitment Letter. Buyer shall provide to the MBS Parties copies of any commitment letter associated with a replacement Debt Financing or Alternative Financing as well as any amendment or waiver of any debt commitment letter (including the Commitment Letter) that is permitted hereunder.
(b) At Buyer’s sole expense, the MBS Parties shall cause the Company and its Affiliates as Subsidiaries to, and shall use their reasonable best efforts to cause the respective Representatives of the Company and each of its Subsidiaries to, provide to Buyer all cooperation reasonably requested by Parent Buyer that is necessary or reasonably required in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include Financing, including the following: (i) using reasonable best efforts to:
(i) make appropriate to cause the Company’s senior officers reasonably availableand other Representatives to participate in meetings, with appropriate advance noticepresentations, for participation in bank meetingsroad shows, due diligence sessions (including accounting due diligence sessions), meetings drafting sessions and sessions with ratings agencies and road shows, reasonable assistance in rating agencies; (ii) assisting with the preparation of confidential appropriate and customary materials for rating agency presentations, offering documents, bank information memoranda, private placement memoranda, prospectuses, presentations memoranda and similar documents reasonably required in connection with the Debt Financing; (iii) using reasonable best efforts to assist with the preparation of any pledge and security documents, any loan agreement, currency or interest hedging agreement and other definitive financing documents on terms satisfactory to Buyer, or other certificates, or documents as may be reasonably requested by Parent Buyer, provided that no obligation of the Company or any Financing Party, in each case, with respect to information relating to the Company and of its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that document or agreement shall be effective until the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
Closing; (iv) using reasonable best efforts to facilitate the pledging of collateral, provided that no pledge shall be effective until the Closing; (v) using reasonable best efforts to furnish on a confidential basis to legal counsel of Parent Buyer and to legal counsel of any Financing Party such its financing sources, as promptly as practicable, financial and other pertinent information regarding the Company as may be reasonably requested by such counsel Buyer; (vi) providing (a) U.S. GAAP audited consolidated balance sheets and related statements of earnings, comprehensive income, shareholders’ equity and cash flows, for the most recent fiscal year ended at least 90 days prior to the Closing Date, (b) U.S. GAAP unaudited consolidated balance sheets and related statements of earnings, comprehensive income and cash flows for each subsequent fiscal month ended at least 30 days before the Closing Date; (vii) using reasonable best efforts to cause the Company’s independent accountants to cooperate with and assist Buyer in preparing customary and appropriate information packages and offering materials as prospective lenders may reasonably request for use in connection with any legal opinion that such counsel may be required to deliver in connection with such the offering and/or syndication of debt securities, loan facilities and other matters contemplated by the Debt Financing; and
(vviii) furnish Parent reasonably cooperating with any field exam or audit work in respect of the accounts receivable and inventory assets of the Company and its Subsidiaries; and (ix) providing Buyer and any provider of the Debt Financing Parties, within five (5) Business Days following written request, such with all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” customer and anti-money laundering policies, rules and regulations; provided, that Buyer shall indemnify, defend and hold harmless the MBS Parties, the Company, its Subsidiaries and the respective directors, officers, employees and representatives of each of the foregoing from and against any liability or obligation to providers of the Debt Financing in connection with the Debt Financing, including without limitation the PATRIOT Act. any information provided in connection therewith; provided, further, that nothing that, notwithstanding anything in this Agreement shall require to the contrary, until the Closing occurs, neither the Company to cause the delivery nor any of its Subsidiaries shall (1A) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company be required to pay any commitment or other feesfee related to the Debt Financing, reimburse (B) have any expenses liability or otherwise obligation under any loan agreement or any related document or any other agreement or document related to the Debt Financing or (C) be required to incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere other liability in connection with the ongoing business or operations of the Company or the Company SubsidiariesDebt Financing, (3) require the Company or and in no event shall any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives referred to in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith5.14 constitute Transaction Expenses.
Appears in 1 contract
Sources: Purchase Agreement (Barnes & Noble Education, Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts to cooperate with Parent to, and shall cause its Subsidiaries and its Affiliates as and their respective Representatives to use their reasonable best efforts to, in each case at Parent’s sole cost and expense, provide customary cooperation that is reasonably requested by Parent or Merger Sub to assist Guarantor, Parent and Merger Sub in connection with Parent’s arrangement of causing the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by conditions to the Debt Letters). Such Financing to be satisfied or as is otherwise reasonably requested by Parent or Merger Sub solely in connection with their efforts to obtain the Debt Financing or to effect the Repayments, which cooperation will shall include using reasonable best efforts to:
(i) make appropriate officers reasonably availableparticipate (which shall be limited to teleconference or virtual meeting platforms) in a reasonable number of lender meetings, with appropriate advance notice, for participation in bank meetingslender presentations, due diligence sessions, meetings with ratings agencies sessions and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Partyrating agency meetings, in each case, upon reasonable advance notice, during normal business hours and at mutually agreed times;
(ii) provide reasonable assistance to Parent in its preparation of customary rating agency presentations, customary bank information memoranda and similar documents reasonably and customarily required in connection with the Debt Financing, in each case, solely with respect to information relating to the Company (to the extent related to its business) and its Subsidiaries, and promptly furnish, to the extent practicable, to Parent and Merger Sub such information regarding the Company and its Subsidiaries (and updates thereto as reasonably requested by such Persons), including historical financial information, in each case, that is readily available from the books and records of the Company and its Subsidiaries in the ordinary course of business, and other customary financial information as is reasonably requested by P▇▇▇▇▇ and Merger Sub in connection with customary marketing efforts the Debt Financing or the Repayments, or that is customarily required in connection with the execution of Parent and its Affiliates for all financings of a type similar to the Debt Financing or any portion of the FinancingRepayments;
(iiiii) furnish Parent ensure that an officer of the Company executes prior to the Closing customary “authorization” letters in connection with bank information memoranda authorizing the distribution of information to prospective lenders; and
(iv) deliver at least four (4) Business Days prior to the Closing Date information and the Financing Parties with copies of such financial data with respect documentation related to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is required and reasonably requested in writing by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar Merger Sub at least eight (8) Business Days prior to the Financing committed pursuant Closing Date with respect to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities compliance under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. provided.
(b) The cooperation and other obligations contemplated by Section 6.18(a) shall not (A) require any action that would (or would reasonably be expected to) cause any condition of the Company to Closing to fail to be satisfied, further, that nothing in this Agreement shall (B) require the Company or any of its Subsidiaries or their respective Representatives to (i) other than with respect to the authorization letter contemplated by Section 6.18(a)(iii), execute, deliver, enter into, approve or perform any agreement, commitment, document, certificate or instrument, or modification of any agreement, commitment, document, certificate or instrument or incur any other actual or potential liability or obligation relating to the Debt Financing, in each case, that becomes effective prior to the Closing, (ii) deliver or cause the delivery of (1) any legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for in connection with the Debt Financing, other than as provided excluding any customary authorization letters contemplated by Section 5.05(a)(iii6.18(a)(iii) (provided, that such customary authorization letters (or the bank information memoranda in which such letters are included) shall include language that exculpates the Company and each of its Subsidiaries and their respective Representatives and Affiliates from any liability in connection with the unauthorized use by the recipients thereof of the information set forth in any such bank confidential information memoranda or similar memoranda or report distributed in connection therewith), (2iii) adopt any financial information for resolutions, execute any period, including consents or otherwise take any audited financial information corporate or similar action or deliver any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amendedcertificate, in any case in a form not customarily prepared by connection to the Company with respect to such period, other than as provided by Section 5.05(a)(ii) Debt Financing or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (orthe incurrence of indebtedness thereby, in the case of a fiscal yeareach case, 60 days) that becomes effective prior to the date of such request.
Closing or (biv) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feessimilar fee, incur or reimburse any costs or expenses or otherwise incur any liabilities liability or obligation of any kind or give any indemnities prior to the ClosingClosing in connection with the Debt Financing, other than any payment or reimbursement of incidental out-of-pocket costs and expenses that are subject to reimbursement by Parent or Merger Sub, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3C) require the Company or any of its Subsidiaries or their respective Affiliates and Representatives to deliver any certificate or take any action pursuant to Section 6.18(a) if doing so could reasonably be expected to result in liability to the Company Subsidiaries to enter into or approve any agreement such Subsidiary, Affiliate or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or Representative, (4D) require the CompanyCompany or any of its Subsidiaries to provide, or cause to be provided, any information the disclosure of which is prohibited or restricted under applicable Law or any binding agreement with a third party that is not entered into for the purpose of evading this covenant or is legally privileged or consists of attorney work product or could reasonably be expected to result in the loss of any attorney-client privilege, (E) require the Company or any of its Subsidiaries to take any action that will conflict with or violate any applicable Laws or result in a violation or breach of, or default under, any agreements to which the Company or any of its Subsidiaries is a party (other than any agreement entered into for the purpose of evading this covenant), (F) unreasonably interfere with the ongoing operations of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or (G) require the preparation or delivery of any financial statements or other financial data that are not prepared in the ordinary course of their respective Representatives its financial reporting practice, in each case, except as contemplated by Section 6.18(a)(ii); it being understood and agreed that under no circumstances shall the Company and its Subsidiaries be required to provide projections, estimates or pro forma financial information, including any certificatepro forma cost savings, agreementsynergies, arrangementcapitalization or other pro forma adjustments to be incorporated into any pro forma financial information, document or instrument relating to the Financing all of which shall be effective until the Closingresponsibility of Parent and Merger Sub.
(c) Without limitation of any other provision of this Agreement, neither the Company nor any of its Affiliates or Subsidiaries shall have any liability to Parent or Merger Sub in respect of any financial statements, other financial information or data or other information, solely by virtue of providing such information pursuant to this Section 6.18. All non-public or other confidential information provided by the Company to Parent or its Affiliates pursuant to this Section 6.18 shall be kept confidential in accordance with the Confidentiality Agreement; provided, that, notwithstanding any of the foregoing, Parent and its Affiliates and the Debt Financing Sources may disclose any such non-public or otherwise confidential information in connection with the syndication of the Debt Financing, subject to customary confidentiality undertakings consistent with the Debt Commitment Letter or otherwise as is customary in the syndication practices of the Debt Financing Sources by recipients of such non-public or otherwise confidential information.
(id) promptly upon Parent shall, following request by the Company, reimburse the Company for all of its any reasonable and documented out-of-pocket expenses and costs (including reasonable and documented out-of-pocket outside attorneys’ fees and expenses (including fees and expenses of counsel and accountantsdisbursements) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by the Company’s or its Affiliates’ or Representatives’ obligations under this Section 5.05 6.18 and (ii) shall indemnify and hold harmless the Company, the Company Subsidiaries and its Affiliates and their respective Representatives from and against any claimand all losses, lossdamages, damageclaims, injury, liability, judgment, award, penalty, fine, Tax, cost costs (including cost of investigation), expense settlement payments, injuries, liabilities, judgments, awards, penalties, fines or expenses (including reasonable and documented out-of-pocket attorneys’ fees and expenses disbursements) suffered or incurred by any of counsel and accountants) or settlement payment incurred them as a result of, or in connection with, (1) such cooperation or cooperation, (2) the Financing and Debt Financing, (3) any information used in connection therewithwith the Debt Financing that was not provided by, or on behalf of, the Company or any of its Affiliates or that was not included in, or discernable from, public filings by the Company or any of its Affiliates and (4) any action taken by any of them at the request of Parent or Merger Sub pursuant to this Section 6.18 or otherwise in accordance with this Section 6.18, except, in each case, to the extent such losses, damages, claims, costs (including cost of investigation), settlement payments, injuries, liabilities, judgments, awards, penalties, fines, or expenses (including outside attorneys’ fees and disbursements) arose from the gross negligence, fraud or willful misconduct by the Company, its Affiliates or any of their respective Representatives, as determined in a final, non-appealable judgment of a court of competent jurisdiction or the inaccuracy of information provided by, or on behalf of, the Company or any of its Affiliates in connection with the Debt Financing; provided, that any request for reimbursement be made before the twentieth (20th) day of any month and payment will be made on the final day of such month. Any lender presentations or bank memoranda prepared by, or on behalf of or utilized by Parent, Merger Sub or their Affiliates, or Parent’s or Merger Sub’s Debt Financing Sources, in connection with Guarantor’s financing activities in connection with the Contemplated Transactions, which include any information provided by the Company or any of its Affiliates or Representatives shall include a conspicuous disclaimer to the effect that none of the Company or any of its Subsidiaries or their respective Affiliates or any of their or their Affiliates’ respective Representatives nor any employees thereof have any responsibility or liability for the content of such document and disclaim all responsibility therefor, including any unauthorized use by the recipients thereof of the information set forth in such document. Any use of the Company’s and its Subsidiaries’ logos in connection with the Debt Financing shall require the Company’s prior written consent (such consent not to be unreasonably withheld, conditioned or delayed).
(e) Notwithstanding anything herein to the contrary, the condition set forth in Section 7.3(b), as it applies in respect of the Company’s obligations under this Section 6.18, shall be deemed satisfied unless the Company has breached its obligations under this Section 6.18 and such breach resulted in Parent not being able to obtain the Debt Financing contemplated by any of the Debt Commitment Letters.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination For purposes of this Agreement pursuant to Section 8.016.10, the term “Financing” shall include any Permanent Financing (as defined in the Financing Letter), subject whether for debt, equity or otherwise. Prior to the limitations set forth in this Section 5.05Closing, Seller shall, and unless otherwise agreed by Parent, the Company will shall use its reasonable best efforts to cooperate with Parent and cause each of its Affiliates as and Representatives to, use reasonable best efforts to provide to Buyer such cooperation reasonably requested by Parent Buyer and reasonably required in connection with Parent’s arrangement of the Financing or the Alternate Financing, including (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by to the Debt Letters). Such cooperation will include using reasonable best efforts to:extent reasonably requested and reasonably required):
(i) make appropriate officers reasonably availableparticipating in a customary and reasonable number of meetings, with appropriate advance notice, for participation in bank meetingspresentations, due diligence sessions, meetings drafting sessions, road shows and sessions with ratings agencies and road shows, reasonable assistance in rating agencies;
(ii) assisting with the preparation of confidential information memorandamaterials for rating agency presentations, offering documents, private placement memoranda, prospectusesbank information memoranda, presentations prospectuses (registered or otherwise) and similar documents for the Financing, including execution and delivery of customary representation letters in connection with an audit of the Business and auditors comfort letter;
(iii) as promptly as reasonably practical, and in no event later than March 31, 2013, furnishing Buyer with (x) audited balance sheets for the Business as at December 31, 2011 and 2012, and (y) audited statements of income and cash flows for the Business for the three (3) years ended December 31, 2012 and (z) within forty-five (45) days of the end of the relevant fiscal quarter, unaudited interim financial statements for each fiscal quarter ending after January 1, 2013 (collectively, the “Carve-Out Financials”);
(iv) in addition to the information required pursuant to clause (iii), above, as promptly as reasonably practical, furnishing Buyer and the other parties to the Financing Letter with financial and other information regarding the Business and the Assets as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries Buyer (including in connection with customary marketing efforts Buyer’s preparation of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 statements), including unaudited interim financial statements, financial data, projections, audit reports and other information of the type required by Regulation S-X under and Regulation S-K of the Securities Act of 1933, as amended1933 for a registered public offering, and identify any such financial information of type and form customarily included in private placements under Rule 144A, to consummate the offering(s) of debt or equity securities contemplated by the Financing, or as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or otherwise reasonably required in connection with a the Financing, or as otherwise necessary in order to assist in receiving customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters “comfort” (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required ) from independent accountants in connection with the marketing and syndication offering(s) of debt or equity securities contemplated by the Financing (all such information in clause (iii) and this clause (iv), including as set forth in the Debt Letters as in effect on Carve-Out Financials, the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing“Required Information”);
(ivv) furnish providing information relating to legal counsel of Parent and the Business that is reasonably available to legal counsel it to assist in the preparation of any credit agreements, indentures, purchase agreements, currency or interest hedging arrangements, other definitive financing documents, officer’s certificates, customary closing documents, or other certificates or documents with respect to the Financing Party such information contemplated by the Financing as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be Buyer;
(vi) furnishing Buyer and their Financing sources as promptly as practicable all financial information required to deliver be delivered pursuant to the Financing Letter and monthly financial statements for the Business (to the extent prepared in connection with such Financingthe ordinary course of business);
(vii) assisting Buyer to obtain waivers, consents, estoppels and approvals from other parties to Contracts, material Leases and Easements, and Encumbrances to which the Assets or the Business are bound; and
(vviii) furnish Parent cooperating with Buyer in its efforts to obtain accountants’ comfort Letter, consents, legal opinions, surveys, appraisals, engineering reports, environmental and the Financing Partiesother inspections, within five (5) Business Days following written request, such title insurance and other documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company items relating to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided reasonably requested by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, Buyer; arrangement, document or instrument relating to the Financing Financing. Notwithstanding anything to the contrary in this Section 6.10, neither Seller nor its Affiliates shall be effective until in breach of the Closingcovenant set forth in this Section 6.10 if it has acted in good faith to comply with the cooperation and assistance set forth herein.
(b) Buyer shall indemnify the Seller Indemnitees from, against and in respect of any Losses imposed on, sustained, incurred or suffered by, or asserted against, any of them, directly or indirectly relating to, arising out of or resulting from the arrangement of the Financing, any other financing and/or the provision of information utilized in connection therewith to the fullest extent permitted by applicable Legal Requirement.
(c) Parent shall Seller will use its reasonable best efforts to update Required Information provided to Buyer pursuant to clauses (iiii) promptly upon request by and (iv) of Section 6.10(a) as may be necessary such that the CompanyRequired Information does not contain any untrue statement of material fact or omit to state any material fact necessary in order to make the statements made therein, reimburse in the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any light of the Company Subsidiariescircumstances under which they were made, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithnot misleading.
Appears in 1 contract
Sources: Purchase and Sale Agreement
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts to, and shall cause its Subsidiaries to cooperate with Parent use their reasonable best efforts to, and shall use its Affiliates as reasonable efforts to cause its and their Representatives to, provide all cooperation reasonably requested by Parent necessary and customary for the arrangement of the Financing (provided, that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company or any of its Subsidiaries), including by (i) if requested by Parent, participating in a reasonable number of meetings (including meetings with prospective Lenders), presentations, road shows, due diligence sessions and sessions with rating agencies, at reasonable times and with reasonable advance notice, (ii) to the extent required by the Financing and requested by Parent, using reasonable efforts to facilitate the pledging of, and perfection of security interests in, collateral, effective no earlier than the Effective Time, (iii) furnishing Parent and the Lenders as promptly as reasonably practicable following the delivery of a request therefor to the Company by Parent (which notice shall state with specificity the information requested) such financial and other information regarding the Company as is readily available to the Company at such time and is customarily required in connection with the execution of financings of a type similar to the Financing, including the financial statements of the Company and its consolidated Subsidiaries required by condition paragraph 4 in Exhibit C to the Debt Commitment Letter (such financial statements, the “Required Financial Information”), (iv) if requested by Parent, using reasonable best efforts to assist Parent in connection with Parent’s arrangement preparation of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated customary pro forma financial statements as required by condition paragraph 5 in Exhibit C to the Debt Letters). Such cooperation will include Commitment Letter; provided, that (x) Parent shall be responsible for the preparation of such pro forma financial statements and any pro forma adjustments giving effect to the Merger and the other transactions contemplated herein and (y) the Company’s assistance shall relate solely to the financial information and data derived from the Company’s historical books and records, (v) in each case following Parent’s reasonable request, using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies to assist Parent and road shows, reasonable assistance Merger Sub in the preparation of (A) confidential information memorandamemoranda (including a version that does not include material non-public information) and other customary marketing materials required in connection with financings similar to the Financing, private placement memoranda, prospectuses, (B) materials for rating agency presentations and similar documents as may be reasonably requested by Parent (C) definitive documentation for the Financing, (vi) following Parent’s reasonable request, using reasonable best efforts to cause directors and officers who will continue to hold such offices and positions from and after the Effective Time to execute Table of Contents resolutions or any Financing Party, in each case, with respect to information relating to consents of the Company and its Subsidiaries in connection that do not become effective until the Effective Time with customary marketing efforts of Parent respect to entering into the definitive documentation for the Financing and its Affiliates for all or any portion otherwise as necessary to authorize consummation of the Financing;
, and (iivii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed if requested by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933provide, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
at least two (iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (52) Business Days following written requestprior to the Closing Date, such all documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, regulations including without limitation the USA PATRIOT Act. provided, further, that nothing Act to the extent requested by Parent in this Agreement shall require the Company to cause the delivery of writing at least nine (19) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) Business Days prior to the date of such request.
(b) anticipated Closing Date. Notwithstanding anything to the contrary contained in this Agreement (including Section 5.13 or otherwise, neither the Company nor any of its Subsidiaries shall be required to take or permit the taking of any action pursuant to this Section 5.05): 5.13 that would: (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay Company, its Subsidiaries or any commitment Persons who are directors or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations officers of the Company or the Company Subsidiaries, (3) require the Company or any of the Company its Subsidiaries to enter into pass resolutions or consents to approve any agreement or other documentation authorize the execution of the Financing that is effective prior to the Closing Effective Time or execute or deliver any certificate, opinion, document, instrument or agreement or agree to any change or modification of any existing certificate, opinion, document, instrument or agreement or other documentation that would be is effective prior to the Closing Effective Time, (ii) cause any representation or warranty in this Agreement to be breached by the Company or any of its Subsidiaries, (4iii) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation its Subsidiaries to pay any commitment or other fees similar fee or reimburse incur any expenses) other expense, liability or obligation in connection with the Financing prior to the Closing or have any obligation of the Company, its Subsidiaries, Company or any of their respective Representatives its Subsidiaries under any certificate, agreementdocument, arrangement, document instrument or instrument relating to the Financing shall agreement be effective until the Closing.
, (civ) cause any director, officer employee or stockholder of the Company or any of its Subsidiaries to incur any personal liability, (v) conflict with the organizational documents of the Company or any of its Subsidiaries or any Laws, (vi) reasonably be expected to result in a material violation or breach of, or a default (with or without notice, lapse of time, or both) under, any Contract to which the Company or any of its Subsidiaries is a party, (vii) provide access to or disclose information that the Company or any of its Subsidiaries determines would jeopardize any attorney-client privilege or other applicable privilege of the Company or any of its Subsidiaries, (viii) require the Company or any of its Subsidiaries to prepare any financial statements or information that (a) are not available to it and prepared in the ordinary course of its financial reporting practice and (b) would not otherwise be available to it or capable of being prepared by it without undue burden or otherwise with the use of its commercially reasonable efforts or (ix) require the Company or any of its Subsidiaries to enter into any instrument or agreement that is effective prior to the occurrence of the Closing or that would be effective if the Closing does not occur. Nothing contained in this Section 5.13 or otherwise shall require the Company or any of its Subsidiaries, prior to the Closing, to be an issuer or other obligor with respect to the Financing. Parent shall (i) shall, promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) reasonable out-of-pocket costs incurred by the Company, any of the Company Subsidiaries, or any of its Subsidiaries or their respective Representatives in connection with the arrangement of the Financing and any cooperation contemplated action taken by them pursuant to this Section 5.05 5.13 and (ii) shall indemnify and hold harmless the Company, the Company and its Subsidiaries and its their respective Representatives from and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) all losses suffered or settlement payment incurred as a result of, or by them in connection withwith the arrangement of the Financing, such cooperation or any action taken by them at the Financing request of Parent pursuant to this Section 5.13 and any information used in connection therewith (other than information provided in writing by the Company or its Subsidiaries specifically in connection with its obligations pursuant to this Section 5.13).
(b) The Company shall use its reasonable best efforts to deliver or cause to be delivered to Parent on or prior to the second (2nd) Business Day prior to the Effective Time, a Table of Contents copy of a payoff letter (subject to delivery of funds as arranged by Parent), in customary form and substance, from the Administrative Agent (as defined in the Specified Credit Agreement) under the Specified Credit Agreement. The Company shall, and shall cause its Subsidiaries, as applicable, to, deliver all notices (which notices shall be subject to the consummation of the Financing) and take all other reasonable actions required to facilitate the termination of commitments under the Specified Credit Agreement, the repayment in full of all Obligations (as defined in the Specified Credit Agreement, but other than contingent obligations for which no claim has been made and any other obligations that survive the termination of the Specified Credit Agreement pursuant to the terms thereof) then outstanding thereunder and the release of any Liens and termination of all guarantees (if any) in connection therewith, in each case, on the Closing Date in connection with such repayment (each such termination, repayment or release, a “Credit Agreement Termination”); provided that (x) in no event shall this Section 5.13(b) require the Company or any of its Subsidiaries to cause any Credit Agreement Termination unless the Closing shall have occurred and (y) Parent shall provide, or cause to be provided, all funds required to effect all such repayments and cash collateralization, backstop or replacement of letters of credit.
(c) If requested by Parent in writing, the Company shall use its reasonable best efforts to, and shall cause its Subsidiaries to use their reasonable best efforts to, (i) issue one or more notices of optional redemption (including, if and to the extent permitted under the Existing Notes and Existing Indenture, any notice to extend the redemption date) for all of the outstanding aggregate principal amount of the Existing Notes pursuant to the Existing Indenture, in order to effect a redemption of the Existing Notes on (or at Parent’s election, following) the Closing Date; provided that such redemption notice shall provide that the obligation to redeem the Existing Notes shall be subject to and conditioned upon the occurrence of the Closing Date and the deposit of funds contemplated in the next sentence, and (ii) provide any other cooperation reasonably requested by Parent to facilitate the redemption of the Existing Notes (and/or, if elected by Parent, satisfaction and discharge of the Existing Notes and the Existing Indenture) effective as of (or at Parent’s election, following) and conditioned upon the occurrence of the Closing Date (including delivering any notices, requests, certificates and legal opinions or orders required to be delivered to the trustee under the Existing Indenture in connection with the notice of optional redemption or satisfaction and discharge (but solely to the extent such notices, requests, certificates, opinions and orders would not conflict with applicable Law and would be accurate in light of the facts and circumstances at the time delivered)). The Company shall provide Parent with a reasonable opportunity to review and comment on such notices, requests, certificates and orders and any other document that purports to effect, amend or modify the terms of the redemption. Parent shall deposit, or cause to be deposited, funds with the Existing Notes Trustee sufficient to fund the Discharge no later than the redemption time specified in the applicable redemption notice, or, in the case of a satisfaction and discharge, the time of such satisfaction and discharge (in each case, subject to the occurrence of the Closing Date and the receipt by Parent of financing in an amount sufficient to effect such redemption in full). The redemption (or, if applicable, satisfaction and discharge) of the Existing Notes and Existing Indenture pursuant to this Section 5.13(c), and the release of all guarantees in connection therewith, are referred to collectively as the “Discharge.”
(d) For the avoidance of doubt, the parties hereto acknowledge and agree that the provisions contained in this Section 5.13 represent the sole obligation of the Company, its
Appears in 1 contract
Sources: Merger Agreement (Bankrate, Inc.)
Financing Cooperation. (a) From the date hereof Prior to and until the Closing Closing, (A) the Company shall furnish, or cause to be furnished to, Parent, Acquisition Sub and/or its Debt Financing Sources, the earlier termination of this Agreement pursuant Required Information, including, without limitation, the contemplated financial statements by no later than such financial statements would be required to Section 8.01), subject to be filed with the limitations set forth in this Section 5.05SEC and (B) the Company shall use reasonable best efforts to, and unless otherwise agreed by Parent, the Company will shall (x) cause its Subsidiaries and controlled or under common control Affiliates and (y) use its reasonable best efforts to cooperate cause their respective officers, directors, employees and accountants to, at Parent’s sole cost and expense (excluding any costs and expenses with Parent and its Affiliates respect to financial statements, financial information or other materials prepared prior to the date hereof or, after the date hereof, that the Company would have prepared in the ordinary course of business), to provide such customary cooperation as is reasonably requested by Parent or Acquisition Sub to assist Parent and Acquisition Sub in connection with to Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by efforts to obtain the Debt Letters). Such cooperation will include Financing, including using reasonable best efforts to:
to do the following (to the extent so reasonably requested): (i) make appropriate officers (a) provide customary “flash” or “recent development” revenue information to the extent reasonably availableavailable (which may be provided in a reasonable range or estimate and may be provided on a non-GAAP basis) for any fiscal quarter ending after the date hereof and prior to the Closing, with appropriate advance noticeand (b) all other customary pertinent financial, for participation in bank meetings, due diligence sessions, meetings with ratings agencies business and road shows, reasonable assistance in other information regarding the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations Company and similar documents its Subsidiaries as may be reasonably requested by Parent or and, including in any Financing Partyevent the financial statements required under Sections 9 and 10 of Annex D of the Debt Commitment Letter, (ii) cause members of senior management of the Company to participate in a reasonable number of lender meetings, lender presentations, due diligence sessions (including accounting due diligence sessions), road shows, drafting sessions and rating agency meetings, in each case, upon reasonable advance notice, at mutually agreed locations and times (including by electronic means), (iii) provide reasonable assistance to Parent in its preparation of customary rating agency presentations, lender and investor presentations, offering memoranda, customary bank information memoranda and similar documents reasonably required in connection with the Debt Financing, including by reasonably assisting in preparation of such materials that don’t include material non-public information, in each case, solely with respect to information relating to the Company (to the extent related to its business) and its Subsidiaries in connection with customary marketing efforts of Parent Subsidiaries, (iv) deliver information and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect documentation related to the Company and its Subsidiaries which that is prepared required by the Company in the ordinary course of business Debt Commitment Letter (or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parentsuccessor provision thereof) as is and reasonably requested by Parent or any the Debt Financing Party and is customarily required for the arrangement and syndication of financings similar Sources at least eight (8) Business Days prior to the Financing committed pursuant Closing Date with respect to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities compliance under applicable “know your customer,” beneficial ownership and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. provided, furtherwhich information shall be provided no later than three (3) Business Days prior to the Closing Date, (v) cooperate with the Debt Financing Sources’ due diligence, to the extent reasonably requested in connection with the Debt Financing, (vi) to the extent required by the Debt Financing Sources, execute and deliver customary authorization to the Debt Financing Sources with respect to any bank information memorandum, (vii) provide reasonable and customary assistance with Parent’s preparation, negotiation and execution of definitive financing documentation and the schedules and exhibits thereto (including indentures, loan agreements, guarantees, collateral agreements, hedging arrangements, payoff letters and release agreements, customary officer’s certificates and corporate resolutions or other corporate actions, as applicable) as may reasonably be requested by Parent or Acquisition Sub and subject to the occurrence of the Closing, (viii) provide reasonable and customary assistance with facilitating the pledging of collateral (including possessory collateral) in connection with the Debt Financing, including executing and delivering as of the Closing Date any customary pledge and security documents, currency or interest hedging arrangements or other customary definitive financing documents, and documents as may be reasonably requested by Parent or Acquisition Sub and delivering or causing to be delivered certificated equity interests of material domestic Subsidiaries of the Company, (ix) take all reasonable actions necessary to permit the Debt Financing Sources to evaluate the Company’s and its Subsidiaries’ current assets, cash management and accounting systems, policies, and procedures relating thereto for the purposes of establishing collateral arrangements as of the Closing, including facilitating customary field examinations and inventory and equipment appraisals by the Debt Financing Sources, (x) supplement the Required Information on a reasonably current basis to the extent that nothing any Required Information, to the knowledge of the Company, when taken as a whole and in this Agreement light of the circumstances under which such statements were made, contains any material misstatement of fact or omits to state any material fact necessary to make such information not materially misleading, (xi) cause the independent auditors of the Company to assist and cooperate with Parent in connection with the Debt Financing, including by providing consent to offering memoranda that include or incorporate the Company’s consolidated financial information and their reports thereon, and customary comfort letters (including “negative assurance” and change period comfort) with respect to financial information relating to the Company and its Subsidiaries and (xii) deliver customary CFO certificates or similar certificates with respect to certain financial information in the offering documents to the extent not otherwise covered by the “comfort letters” described herein; provided that the such requested cooperation shall not (1) require the Company or any of its Subsidiaries or their respective representatives to (i) execute, deliver, enter into, approve or perform any agreement, commitment, certificate, document or instrument (excluding any customary authorization letters or representation letters to the Company’s independent auditors), or modification of any agreement, commitment, document or instrument, in each case, that would be effective prior to the Effective Time (in each case other than in connection with the Debt Offers (as defined below) or otherwise in accordance with Section 5.19, the items delivered in clauses (B)(xi) and (B)(xii) above or that which is Required Information), (ii) deliver or cause the delivery of (1) any legal opinions opinions, deliver or cause the delivery of any reliance letters or any certificate as to solvency or any other certificate necessary for in connection to the Financing, Debt Financing (in each case other than as provided by in connection with the Debt Offers, or otherwise in accordance with Section 5.05(a)(iii5.19 hereof or the items delivered in clauses (B)(xi) and (B)(xii) above), (2iii) adopt any financial information for resolutions, execute any periodconsents or otherwise take any corporate or similar action or deliver any certificate, including any audited financial information in connection with the Debt Financing or any financial information prepared the incurrence of indebtedness thereby, in each case, that would be effective prior to the Effective Time (in each case other than in connection with the Debt Offers, or otherwise in accordance with Regulation S-K Section 5.19 hereof or Regulation S-X under the Securities Act of 1933items delivered in clauses (B)(xi) and (B)(xii) above), as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii(iv) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feessimilar fee, incur or reimburse any costs or expenses or otherwise incur any liabilities other liability or obligation of any kind or give any indemnities in connection with the Debt Financing, including under any certificate, agreement, arrangement, document or instrument related thereto, in each case, that would be effective prior to the ClosingEffective Time or (v) prepare stand-alone financial statements for any Subsidiaries of the Company or prepare financial statements which the Company has not historically prepared, (2) unreasonably interfere with the ongoing business or operations of require the Company or any of its Subsidiaries to take any action that will conflict with or violate its organizational documents or any Laws or result in a breach of, or default under, any Contract (other than any Company Material Contract being entered in contemplation hereof) or otherwise breach any of the Company SubsidiariesCompany’s representations, warranties, covenants or agreements under this Agreement, (3) require the Company or any of the Company its Subsidiaries to enter into or approve any agreement or other documentation effective binding commitment prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing Effective Time, or (4) require unreasonably interfere with the ongoing operations of the Company and its Subsidiaries. In the event this Agreement is terminated pursuant to Section 7.1 (other than as a result of a breach by the Company) Parent shall promptly (and in any event within three (3) Business Days of delivery of documentation evidencing such cost and expenses) reimburse the Company for any out-of-pocket reasonable and documented expenses and costs (including reasonable outside attorneys’ fees and disbursements) incurred in connection with the Company’s or its Affiliates’ or representatives’ obligations under Section 5.17 or this Section 5.18 and Parent and Acquisition Sub shall indemnify and hold harmless the Company, its Affiliates and their respective representatives from and against any and all losses, damages, claims, costs (including cost of investigation), settlement payments, injuries, liabilities, judgements, awards, penalties, fines or expenses (including reasonable outside attorneys’ fees and disbursements) suffered or incurred by any of them as a result of, or in connection with, (1) such cooperation or otherwise in connection with the Company Subsidiaries Company’s or any of their respective boards of directors its Affiliates’ or Representatives’ obligations under Section 5.17 or this Section 5.18, (or equivalent bodies2) to approve or authorize the Debt Financing, and (ii3) no actionany information used in connection with the Debt Financing except, liability or obligation to the extent such losses, damages, claims, costs (including any obligation cost of investigation), settlement payments, injuries, liabilities, judgements, awards, penalties, fines or expenses (including reasonable outside attorneys’ fees and disbursements) arose from (a) historical financial information relating to pay any commitment the Company and its Subsidiaries expressly for use in connection with the Debt Financing or other fees (b) the fraud, bad faith, or reimburse any expenses) willful misconduct of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document Affiliates or instrument relating representatives as finally determined in a non-appealable judgment by a court of competent jurisdiction. The Company hereby consents to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all use of its fees and expenses (including fees its Subsidiaries’ logos in connection with the Debt Financing; provided that such logos are used solely in the ordinary course as is customary for such purpose and expenses of counsel and accountants) incurred by in a manner that is not intended, or reasonably likely, to harm, disparage or otherwise adversely affect the Company, any of the Company Subsidiariesits Subsidiaries or their reputation or goodwill. The Company, its Affiliates and their respective Representatives shall be given a reasonable opportunity to review all presentations, bank information memoranda and similar marketing materials, materials for rating agencies and other documents prepared by or on behalf of or used by Parent or Acquisition Sub or any of their Affiliates or used or distributed to any Debt Financing Source or any of its or their Representatives Affiliates in connection with the Debt Financing that include any cooperation contemplated logos of or information about or provided by this Section 5.05 and (ii) indemnify and hold harmless the Company, its Affiliates, or their respective Representatives; provided that any authorization letters (or the Company Subsidiaries and bank information memoranda in which such letters are included) shall include language that exculpates the Company, its Affiliates and their respective Representatives against from any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or liability in connection with, with the unauthorized use by the recipients thereof of the information set forth in any such cooperation bank confidential information memoranda or the Financing and any information used similar memoranda or report distribution in connection therewith. Notwithstanding anything to the contrary contained herein, in no event shall the Company be deemed to have breached its obligations hereby in the event Parent does not prepare the pro forma financial statements as part of the Required Information.
Appears in 1 contract
Financing Cooperation. Prior to the Closing, each Seller shall cause the applicable Acquired Companies of such Seller and shall use Commercially Reasonable Efforts to cause its and their respective Representatives, including legal and accounting advisors, to provide Buyer with commercially reasonable cooperation in connection with the arrangement of the Debt Financing as may be reasonably requested by Buyer and that is customary in connection with a financing comparable to the Debt Financing, including using Commercially Reasonable Efforts in: (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant providing relevant information to Section 8.01), subject to the limitations set forth in this Section 5.05, assist Buyer and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, Sources with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, materials for rating agency presentations and similar lender presentations relating to the Debt Financing (including with respect to presence or absence of material non-public information and the accuracy of the information contained therein); (b) providing and delivering documents in the possession of such Seller or any applicable Acquired Company of such Seller; (c) requesting and making reasonable efforts to obtain from the Operator and provide to Buyer such documents otherwise available to such Seller or applicable Acquired Company pursuant to the terms of the C&O Agreements or the O&M Agreement (provided that the Parties acknowledge and agree that except as otherwise provided under the C&O Agreements and the O&M Agreement, the Operator is under no express obligation to provide any such information); or (d) executing any documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company Buyer and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Debt Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant with respect to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by bank regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Patriot Act; and (e) furnishing Buyer and the Financing Sources identified by Buyer as promptly as reasonably practicable with financial, business, and other pertinent information regarding the applicable Acquired Companies of such Seller as may be reasonably requested by Buyer and reasonably necessary in connection with the Debt Financing (including as promptly as practicable but in no event later than sixty (60) days after the end of the applicable quarter, the unaudited balance sheets and related statements of income and cash flows of the applicable Acquired Companies of such Seller for each subsequent fiscal quarter (or year to date period) after June 30, 2019). provided, further, Each Seller hereby consents to the use of its and the applicable Acquired Companies of such Seller’s logos in connection with the Debt Financing; provided that nothing such logos are used in this Agreement shall require the Company a manner that is not intended to cause the delivery of (1) legal opinions nor reasonably likely to harm or reliance letters disparage any Seller or any certificate as Acquired Company. No Seller shall be required to solvency or take any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, action that would result in any case in a form not customarily prepared by the liability or obligation of an applicable Acquired Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities Seller prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any further liability or obligation of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior such Seller. Notwithstanding anything herein to the Closing contrary, Buyer’s failure to obtain the Debt Financing shall not relieve Buyer of its obligation to consummate the transactions contemplated by this Agreement whether or agree to not the Debt Financing is available. Buyer shall reimburse each Seller for such Seller’s reasonable, documented out of pocket expenses actually incurred by such Seller in complying with this Section 6.13. In no event shall any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the CompanySeller, any of the Company Subsidiaries applicable Acquired Companies of such Seller or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their respective Representatives in connection with have any cooperation contemplated by liability to Buyer or any other Person (including any Financing Source) under this Section 5.05 6.13 except to the extent of their gross negligence or willful misconduct or Fraud, and (ii) Buyer hereby releases and agrees to defend, indemnify and hold harmless the Companyeach Seller, the Company Subsidiaries applicable Acquired Companies of such Seller and each of its and their respective Representatives against from any claim, loss, damage, injury, and all such liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Sources: Purchase and Sale Agreement (NextEra Energy Partners, LP)
Financing Cooperation. (a) From Prior to the Closing, the Sellers, Congo and the Company shall use, and shall cause its Subsidiaries to use, commercially reasonable efforts to provide reasonable cooperation that is customarily required for debt financings similar to the Debt Financing, to the extent reasonably requested, upon reasonable prior notice, in writing by ▇▇▇▇▇ and at Buyer’s sole cost and expense, in connection with the arrangement of the Debt Financing (provided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company or any of its Subsidiaries), including using commercially reasonable efforts to (it being understood that the obligations of the Sellers and Congo under this Section 6.19 shall be limited to assisting with the delivery of information about the Company and its Subsidiaries and the Business if requested of the Company pursuant to this clause (a)): (i) participate in a reasonable number of meetings (which may be virtual) and presentations with rating agencies and potential lenders, to the extent customarily required for financings of a type similar to the Debt Financing and at reasonable times during normal business hours and with reasonable advance notice to Buyer (but limited to not more than one virtual meeting with the Debt Financing Sources);
79 (ii) furnish to Buyer the Required Information on or prior to the date such Required Information is required to be delivered pursuant to paragraph 4(b) of Exhibit C to the Debt Commitment Letter (as in effect on the date hereof until the Closing without giving effect to any amendment or modification thereto); (or the earlier termination of this Agreement pursuant iii) provide reasonable and customary assistance to Section 8.01), subject to the limitations set forth in this Section 5.05, Buyer and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance Financing Sources in the preparation of confidential information memoranda, private placement memoranda, prospectuses, lender presentations and other similar documents as may customary marketing materials required to obtain the Debt Financing; provided that, (x) this clause (iii) shall not be reasonably requested by Parent or any Financing Party, in each case, with respect deemed to information relating to require the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or to provide any portion of financial statements other than the Financing;
Required Information required to be delivered pursuant to clause (ii) furnish Parent above or other financial information that is not readily available and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company maintained in the ordinary course of business or can be (as reasonably determined by the Company) and (y) all such materials prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed or on behalf of or utilized by Parent) as is reasonably requested by Parent Buyer or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 Financing Sources or any of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required Financing Parties in connection with the marketing Debt Financing shall exculpate the Company, the Sellers, Congo and syndication of Financing (including as set forth in the Debt Letters as in effect on Company Related Parties from any liability for the date of this Agreement) use or as are customarily required in an underwritten offering of securities misuse of the type described in contents of such materials by the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
recipients thereof; (iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such provide all documentation and other information as any Financing Party may reasonably determine is required by bank regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. providedAct and 31 C.F.R. §1010.230, further, that nothing in this Agreement shall require the Company relating to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company its Subsidiaries to enter into or approve any agreement or the extent such documentation and other documentation effective information is required to be delivered as a condition precedent to the funding of the Debt Financing, in each case as reasonably requested in writing by ▇▇▇▇▇ at least ten (10) Business Days prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior Date; (v) to the Closing or extent required pursuant to the Debt Commitment Letter, cooperate with Buyer to obtain reasonable and customary corporate and facilities credit ratings; and (4vi) require assist in the Companypreparation of, any and, solely to the extent effective only upon the consummation of the Company Subsidiaries or any Closing, execute and deliver at Closing, Definitive Agreements, including guarantee and collateral documents and customary closing certificates, and facilitate the pledging of collateral, in each case, to the extent required pursuant to the Debt Commitment Letter; it being understood and agreed that the obligors under this Section 6.19(a) shall have satisfied their respective boards of directors (obligations set forth in Section 6.19(a)(i) through Section 6.19(a)(vi) if such obligor shall have used commercially reasonable efforts to comply with such obligations whether or equivalent bodies) to approve not any applicable deliverables are actually obtained or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingprovided.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Sources: Membership Interest Purchase Agreement (Celsius Holdings, Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, the Company shall provide to Parent, and unless otherwise agreed shall cause the officers, employees and representatives of the Company to provide to Parent, at Parent’s sole expense, all cooperation reasonably requested by Parent that is necessary or reasonably required in connection with any debt financing by Parent, Sub or any of their respective affiliates in connection with the Company will use its Transactions and that is customary in connection with financing comparable to the Financing, including the following: (i) using reasonable best efforts to cooperate cause the Company’s senior officers and other representatives, upon reasonable advance notice, to participate in a reasonable number of meetings, presentations, road shows, due diligence sessions (including accounting due diligence sessions), drafting sessions and sessions with Parent rating agencies; (ii) assisting with the preparation of appropriate and its Affiliates customary materials for rating agency presentations, offering documents, bank information memoranda (including the delivery of customary representation letters as contemplated by the Commitment Letter) and similar documents reasonably requested by Parent required in connection with Parent’s arrangement of the Financing Financing; (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include iii) using reasonable best efforts to:
to provide direct contact between (ix) make appropriate officers reasonably availablesenior management and advisors, including auditors, of the Company and (y) the proposed lenders, underwriters, initial purchasers or placement agents, as applicable, and/or Parent’s or any of its affiliate’s auditors in connection with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings the financing; (iv) using reasonable best efforts to assist with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memorandaany pledge and security documents, private placement memorandaany indenture, prospectusesloan agreement, presentations and similar currency or interest hedging agreement, other definitive financing documents on terms reasonably satisfactory to Parent, or other certificates, legal opinions or documents as may be reasonably requested by Parent Parent, provided that none of the Company or any of its officers, employees or representatives shall be required to execute any documents that would be effective before the Closing and no obligation of the Company or any of its officers, employees or representatives under any such document or agreement shall be effective until the Closing; (v) using reasonable best efforts to facilitate the pledging of collateral, provided that no pledge shall be effective until the Closing; (vi) using reasonable best efforts to furnish on a confidential basis to Parent and its financing sources, as promptly as practicable, financial and other pertinent information regarding the Company as may be reasonably requested by Parent, including all financial statements and other financial data required by the documents used in connection with the Financing Partyand such additional financial information as is necessary to make such financial statements compliant with Regulation S-X (the “Required Information”); (vii) providing monthly financial statements (excluding footnotes) to the extent the Company customarily prepares such financial statements within the time such statements are customarily prepared; (viii) deliver to Parent, in each caseat least five days prior to the Closing Date, with respect to all documentation and other information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is affiliates required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, furtherto the extent such documentation and other information is requested by providers of the Financing at least 10 Business Days prior to the Closing Date; and (ix) using reasonable best efforts to cause the Company’s independent accountants to cooperate with and assist Parent in preparing customary and appropriate information packages and offering materials as the parties to the Commitment Letter or other parties participating in the Financing may reasonably request for use in connection with the offering and/or syndication of equity securities, debt securities, loan participations and other matters contemplated by the Commitment Letter, including by providing customary accountant’s comfort letters (including “negative assurance”) and consents from the Company’s independent accountants; provided that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent it would, in the Company’s reasonable judgment, (A) interfere unreasonably with the business or operations of the Company, (B) cause any representation, warranty, covenant or other term in this Agreement to be breached or (C) cause any closing condition set forth in this Agreement to fail to be satisfied; provided, further, that it would notwithstanding anything in this Agreement to the contrary, until the Closing occurs, neither the Shareholder Representative nor the Company nor any of their respective affiliates shall (1) require the Company be required to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closingfee, (2) unreasonably interfere with have any liability or obligation under any loan agreement or any related document or any other agreement or document related to the ongoing business Financing (or operations of the Company Alternative Financing) or the Company Subsidiaries, (3) require be required to incur any other liability in connection with the Company Financing contemplated by the Commitment Letter (or any of the Company Subsidiaries to enter into Alternative Financing) or approve take any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation action that would be effective prior to the Closing prohibited by any applicable Law or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiariescause a default of, or breach under, or otherwise violate any of their respective Representatives under any certificateMaterial Contract. Parent shall, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon written request by the Company, reimburse the Company for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees attorneys’ fees) to the extent such costs and expenses of counsel and accountants) are incurred by the Company, any of the Company Subsidiaries, or any of its or their Representatives affiliates in connection with any such cooperation contemplated provided by the Company or its affiliates or their respective officers, employees and other representatives pursuant to the terms of this Section 5.05 6.11 or in connection with compliance with its obligations under this Section 6.11 and (ii) Parent shall indemnify and hold harmless the Company, the Company Subsidiaries and its affiliates and their Representatives respective officers, employees and representatives from and against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liability, judgment, award, penalty, fine, Tax, cost (including cost costs or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the arrangement of the Financing and any information used utilized in connection therewiththerewith (other than arising from information provided by the Shareholder Representative or the Company), except in the event such liabilities or losses arose out of or result from the willful misconduct of the Company or any of its representatives. The Company hereby consents to the use of its logos in connection with the Financing; provided that such logos are used solely in a manner that is not intended or reasonably likely to harm or disparage the Company or the reputation or goodwill of the Company and its affiliates and their respective marks.
Appears in 1 contract
Financing Cooperation. (a) From Prior to the date hereof until the Closing Pubco Merger Effective Time (or the earlier termination of this Agreement pursuant to Section 8.01Agreement), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will shall, and shall cause its Subsidiaries to, and shall use its commercially reasonable best efforts to cooperate with Parent cause its and its Affiliates as their Representatives to, provide customary cooperation that is reasonably requested by Parent in connection with Parent’s arrangement of the Financing (whichany Financing, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts toincluding:
(i) make appropriate officers reasonably availableusing reasonable best efforts to furnish to Parent (A) audited consolidated balance sheets and related consolidated statements of operations, equity and cash flows for the Company for each of the three (3) most recently completed fiscal years of the Company ended at least sixty (60) days prior to the Closing Date prepared in accordance with appropriate advance noticeGAAP (it being agreed that publishing of such financial statements on the Company’s website or with the SEC (including via ▇▇▇▇▇) shall satisfy this clause (A) and it being acknowledged that the financial statements referred to in this clause (A) have been furnished) and (B) unaudited condensed consolidated balance sheets and related condensed consolidated statements of operations, for participation in bank meetings, due diligence sessions, meetings with ratings agencies equity and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, cash flows (in each case, subject to normal year-end adjustments and absence of footnotes) for each fiscal quarter of the Company ended after April 1, 2025 and at least forty (40) days prior to the Closing Date (it being agreed that publishing of such financial statements on the Company’s website or with the SEC (including via ▇▇▇▇▇) shall satisfy this clause (B)) (together, the “Required Financial Statements”);
(ii) at reasonable times and locations (it being understood that any such meeting may take place via videoconference or web conference if mutually agreed among Parent and the Company), and upon reasonable advance notice, participating (and using reasonable best efforts to cause senior management and appropriate Representatives of the Company to participate) in a reasonable number of meetings, calls, presentations, road shows, lender presentations, due diligence sessions (including accounting due diligence sessions) and sessions with rating agencies and otherwise using commercially reasonable efforts to cooperate with Parent’s marketing efforts for any of the Financing and assist Parent in obtaining ratings in connection with the Financing, including direct contact between appropriate members of senior management of the Company, on the one hand, and the actual and potential financing sources, on the other hand;
(iii) assisting with the timely preparation and negotiation of materials (including, for the avoidance of doubt, customary rating agency presentations) and definitive documents customarily entered into in connection with debt financing similar to any Financing sought by Parent (such definitive documents, the “Financing Documents”); provided that such cooperation shall only be required to the extent that Parent has furnished to the Company a draft copy of any such Financing Document in order to provide the Company a reasonable opportunity to review;
(iv) using commercially reasonable efforts to cause its independent auditors to (A) provide drafts and executed versions of customary auditors consents and customary comfort letters with respect to financial information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required as necessary, customary or desirable for the arrangement and syndication of financings similar to the Financing committed pursuant to Financing, (B) provide assistance in the Debt Letters, including such information necessary to allow Parent to prepare preparation of pro forma financial statements in accordance with Article 11 and information (provided that Parent shall be responsible for the preparation of Regulation S-X under the Securities Act any pro forma financial statements and pro forma financial information), (C) attend a reasonable number of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing drafting sessions at reasonable times and places, and (including as set forth in the Debt Letters as in effect on the date of this AgreementD) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they otherwise provide customary consents and comfort letters assistance;
(including “negative assurance” comfort), including in respect of historical financial statements of v) using commercially reasonable efforts to (A) take actions reasonably requested by Parent to enable Parent to benefit from the Company, to the extent required ’s existing lending relationships in connection with the marketing and syndication of the Financing, (B) cooperate with Financing providers in performing due diligence and (including as set forth C) assist in obtaining credit ratings; and
(vi) in the Debt Letters as event that the Company is in effect possession of material nonpublic information with respect to the Company or its Subsidiaries, if Parent reasonably requests, filing a Current Report on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required Form 8-K pursuant to applicable Law the Exchange Act that contains such material nonpublic information with respect to the Company and its Subsidiaries, which Parent determines (and the Company does not reasonably object) to include in a customary “public side” offering or the rules or regulations of any national securities exchange marketing document in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including Section 6.22 and this Section 5.05): 6.24, neither the Company nor any of its Subsidiaries shall pursuant to Section 6.22 and this Section 6.24:
(i) nothing in this Agreement be required to (including this Section 5.05x) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment fees or other amounts that are required to be paid pursuant to any Financing and (y) pay or incur any other fees, reimburse any expenses or otherwise incur any other liabilities or give any indemnities prior to the ClosingEffective Time for which it is not previously or promptly reimbursed or simultaneously indemnified;
(ii) be required to cause any director, officer, member, partner, accountant, legal counsel, employee or other Representative of the Company or any of its Subsidiaries to take any action that will result in such Person incurring any personal liability;
(2iii) be required to waive or amend any terms of this Agreement;
(iv) be required to take any action that would unreasonably interfere with the ongoing business or operations of the Company Company;
(v) be required to provide any information that is prohibited or restricted from being provided by applicable Law or contractual obligation existing as of the date hereof or is legally privileged (provided, however, that the Company Subsidiariesshall use its commercially reasonable efforts to provide an alternative means of disclosing or providing such information to the maximum extent permitted by Law or such contractual obligation or to the maximum extent that does not result in a loss of such legal privilege, (3) require as applicable, and in the event that the Company or any of its Subsidiaries not provide access or information in reliance on this clause, the Company shall provide notice to Parent that information is being withheld);
(vi) be required to, nor shall any of their directors, employees, officers, members, partners or managers be required to, adopt resolutions or consents to approve or authorize the execution of the agreements, documents and instruments pursuant to which the Financing is obtained or to execute, deliver or enter into, or perform any agreement, document or instrument (other than customary authorization letters), including any credit or other agreements, guarantees, pledge or security documents or certificates in connection with the Financing, in each case, that would be operative prior to the Pubco Merger Effective Time and any such action, authorization, consent, approval, execution, delivery or performance will only be required of the respective directors, employees, officers, members, partners or managers of the Company and its Subsidiaries who retain their respective positions as of, and immediately after, the Pubco Merger Effective Time (except, in each case, with respect to customary authorization letters or as set forth in Section 6.22);
(vii) be required to (or be required to cause their Representatives to) enter into or approve any agreement or other documentation effective prior to the Closing documentation, or agree to any change or modification of any existing agreement or other documentation that would be effective operative prior to the Closing Pubco Merger Effective Time (except as set forth in Section 6.22);
(viii) be required to (or be required to cause their Representatives to) provide any indemnity prior to the Pubco Merger Effective Time for which it has not received prior reimbursement or is not otherwise indemnified by or on behalf of Parent;
(4ix) require be required to (or be required to cause their Representatives to) prepare or deliver any pro forma financial statement, pro forma information, projections or other forward-looking financial information or to provide any financial or other information (other than using reasonable best efforts to furnish the Required Financial Statements and information necessary or customary for Parent to prepare pro forma financial statements) that is not reasonably available, historically prepared or maintained in the ordinary course of business, including preparing stand-alone financial statements for any Subsidiaries of the Company; or
(x) be required to (or be required to cause their Representatives to) provide opinions of internal or external counsel (except as set forth in Section 6.22(b)). All nonpublic or otherwise confidential information regarding the Company or its Subsidiaries obtained by Parent, any its Subsidiaries or their respective Representatives pursuant to this Section 6.24 or otherwise from or on behalf of the Company Subsidiaries shall be kept confidential in accordance with the Confidentiality Agreement; provided that, notwithstanding anything to the contrary herein or any of their respective boards of directors in the Confidentiality Agreement, such information may be disclosed (or equivalent bodiesi) to approve or authorize prospective lenders, underwriters, initial purchasers, dealer managers and agents during syndication and marketing of the Financing, Financing that enter into confidentiality arrangements customary for financing transactions of the same type as the Financing (including customary “click-through” confidentiality undertakings) and (ii) no action, liability or obligation (including any obligation on a confidential basis to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingrating agencies.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant Subject to Section 8.016.11(a), subject prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will use shall and shall cause its Subsidiaries to, at Parent’s sole expense, provide reasonable best efforts to cooperate with Parent cooperation that is necessary and its Affiliates as reasonably requested by Parent customary in connection with Parent’s arrangement efforts to obtain the Debt Financing (provided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Financing (whichCompany and its Subsidiaries), solely for purposes including, at the reasonable request of this Section 5.05Parent, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers furnishing, or causing to be furnished to, Parent and its Debt Financing Sources such customary financial and other information with respected to the Company and its Subsidiaries as Parent shall reasonably availablerequest in order to consummate the Debt Financing (provided, with appropriate advance noticehowever, for participation that there shall be no obligation to prepare any financial statements, reports or other information or documents other than such financial statements and reports prepared by the Company and/or its Subsidiaries in bank the ordinary course of business), (ii) participating in a reasonable number of lender meetings, lender presentations, due diligence sessions, meetings with ratings agencies sessions and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Partyrating agency meeting, in each case, upon reasonable advance notice and at mutually agreed times, (iii) providing reasonable assistance to Parent in its preparation of rating agency presentations, customary bank information memoranda and similar documents reasonably and customarily required in connection with the Debt Financing, in each case, solely with respect to information relating to the Company and its Subsidiaries Subsidiaries, (iv) delivering information and documentation requested in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of writing by the Financing;
Debt Financing Sources at least ten (ii10) furnish Parent and Business Days prior to the Financing Parties with copies of such financial data Closing Date with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities compliance under applicable “know your customer” and anti-money laundering rules and regulations, including including, without limitation limitation, the USA PATRIOT Act. providedAct and (v) obtaining a customary payoff letter, furtherand lien terminations and other customary documentation to allow for the payoff, discharge and termination of the Existing Credit Agreement; provided that nothing the such requested cooperation shall not (A) cause any representation or warranty in this Agreement shall to be breached, (B) cause any condition to Closing to fail to be satisfied or otherwise cause any breach of this Agreement, (C) require the Company or any of its Subsidiaries or their respective Representatives to (i) execute, deliver, enter into, or perform any agreement, document, advisors or instrument, with respect to the Debt Financing that is not contingent upon the Closing or that would be effective prior to the effective time of the Closing, (ii) deliver or cause the delivery of (1) of, prior to Closing, any legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for in connection with the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) Financing or (3iii) any financial information with respect to a month adopt resolutions or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) execute consents prior to the date Closing to approve or authorize the execution of such request.
the Debt Financing or the incurrence of indebtedness thereby, (bD) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations Representative of the Company or the Company Subsidiariesany of its Subsidiaries or their respective Affiliates to deliver any certificate or take any other action pursuant to this Section 6.12 if doing so would, or could reasonably be expected to, result in liability to such Representative (3E) require the Company or any of its Subsidiaries to provide any information the disclosure of which is prohibited or restricted under applicable Law or any binding agreement with a third party or is legally privileged or consists of attorney work product, (F) require the Company or any of its Subsidiaries to take any action that will conflict with or violate its organizational documents, any Laws or result in a violation or breach of, or default under, any agreement to which the Company or any of its Subsidiaries is a party or (G) require the Company or any of its Subsidiaries to enter into or approve any agreement Debt Financing. All non-public or other confidential information provided by the Company to Parent or its Affiliates pursuant to this Section 6.12 shall be kept confidential in accordance with the Confidentiality Agreement, except that Parent shall be permitted to disclose such information to rating agencies and prospective lenders and investors during syndication of the debt financing contemplated by the Debt Commitment Letter, subject to customary confidentiality undertakings, which shall, in any event, require “click through” or other affirmative action by the recipient acknowledging the confidentiality of such information. Parent shall promptly (and in any event within three (3) Business Days of delivery of documentation effective prior evidencing such cost and expenses) reimburse the Company for any expenses and costs incurred in connection with the Company’s or its Affiliates’ or Representatives’ obligations under Section 6.11 or this Section 6.12. Any offering materials, presentations and other documents shall include a conspicuous disclaimer to the Closing or agree to any change or modification of any existing agreement or other documentation effect that would be effective prior to the Closing or (4) require the Company, any none of the Company or any of its Subsidiaries or their respective Affiliates or any of their or their Affiliates’ respective boards Representatives have any responsibility for the content of directors (or equivalent bodies) such document and disclaim all responsibility therefor and shall further include a disclaimer with respect to approve or authorize the Financing, Company and (ii) no action, liability or obligation (including its Subsidiaries and their respective Affiliates and their and their Affiliates’ respective Representatives in any obligation oral disclosure with respect to pay any commitment or other fees or reimburse any expenses) such financing. Any use of the Company, ’s and its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives ’ logos in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Debt Financing shall require the Company’s prior written consent (such consent not to be unreasonably withheld, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigationconditioned or delayed), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05The Company shall, and unless otherwise agreed by Parentshall cause its subsidiaries and its and their respective Representatives to, the Company will use its and their respective commercially reasonable best efforts to cooperate with Parent and its Affiliates provide such cooperation as may be reasonably requested by Parent or Merger Sub in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include Financing made by Parent or any of its subsidiaries, including, as applicable, by: (i) using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate upon reasonable advance notice, for participation cause the Company’s senior management to participate in bank a reasonable number of due diligence meetings, due diligence drafting sessions, rating agency presentations, lender meetings, investor road shows and meetings with ratings agencies parties acting as arrangers, bookrunners, underwriters, initial purchasers, placement agents and/or other lenders and road showsinvestors for the Debt Financing; (ii) providing such customary historical financial and other customary pertinent information with respect to the Company and its subsidiaries (including, reasonable assistance without limitation, information required by Regulation S-X and Regulation S-K under the Securities Act) as may be reasonably requested by Parent for use in connection with the Debt Financing and designating, upon request, whether any such information is suitable to be made available to lenders and other investors who do not wish to receive material non-public information with respect to the Company and its subsidiaries; (iii) providing information regarding the Company and its subsidiaries reasonably necessary to assist Parent in preparing pro forma financial statements if Parent determines such pro forma financial statements are legally required or customary in connection with the Debt Financing, it being understood that the Company need only assist in the preparation thereof, but shall not be required to independently prepare any separate pro forma financial statements and shall not be required to change its fiscal year; (iv) providing reasonable assistance to the Parent and its subsidiaries in connection with the preparation by the Parent of confidential information offering memoranda, private placement memoranda, prospectuses, prospectus supplements, registration statements, bank confidential information memoranda, lender and investor presentations, road show materials, rating agency presentations and similar documents as may be reasonably requested by Parent or any Financing Partyand materials, in each case, under this subsection (iv), in connection with respect the Debt Financing and reasonably assisting with the preparation of the definitive documents for the Debt Financing, including by providing information reasonably necessary for the completion of any schedules thereto, in each case to the extent, and solely to the extent, such materials relate to information relating to concerning the Company and its Subsidiaries subsidiaries; (v) using commercially reasonable efforts to cause the Company’s accountants to cooperate with Parent, including by participating in connection with accounting due diligence sessions upon reasonable advance notice, using reasonable best efforts to obtain the consent of, the Company’s accountants (including by providing customary marketing efforts of Parent and its Affiliates for all or any portion Parent’s use of the Financing;
(ii) furnish Parent and the Financing Parties with copies financial statements of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company subsidiaries in the ordinary course of business any marketing or can be prepared by the Company without undue burden (with any cost thereof offering materials to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required used in connection with the marketing and syndication of Financing Debt Financing; (including as set forth in the Debt Letters as in effect on the date of this Agreementvi) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be cooperating reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver customary due diligence requests by Parent, its Financing Sources and their respective counsel; (vii) reasonably assisting Parent in connection with such Financing; and
(v) furnish Parent and the Financing Partiesobtaining corporate, within five (5) Business Days following written requestfamily, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationscredit, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.facility -45-
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing 6.11(a), in this Agreement (including this Section 5.05) no event shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of its Subsidiaries be required to (1) bear any cost or expense, pay any fee, or incur any other actual or potential liability in connection with the Company Subsidiaries to enter into or approve any agreement or other documentation effective Debt Financing prior to the Closing Effective Time for which it is not reimbursed or agree is not otherwise indemnified by or on behalf of Parent, (2) take any actions to the extent such actions would unreasonably interfere with their respective ongoing business or operations, (3) take any change or modification of any existing agreement or other documentation action that would be effective prior to the Closing Date and would reasonably be expected to conflict with, or result in any violation or breach of, or default (4with or without notice or lapse of time, or both) require the Company, any of the Company Subsidiaries or under any of their respective boards organizational documents or any applicable laws or any other material contracts to which such Person is a party, (4) become an issuer or other obligor with respect to the Debt Financing prior to the Closing Date, (5) pledge any assets or collateral, execute any definitive agreement in respect of directors (the Debt Financing or equivalent bodies) to approve any closing certificate or authorize the Financingother agreement, and (ii) no action, or incur any liability or obligation indebtedness in connection with the Debt Financing prior to the Closing Date, in each case, that would be effective prior to the Closing Date, or (including 6) execute or deliver, or take any obligation to pay any commitment corporate or other fees action to adopt or reimburse approve, any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificatedocument, agreement, arrangement, document certificate or instrument relating with respect to the Debt Financing shall that will be effective until before the ClosingClosing Date.
(c) If this Agreement is terminated pursuant to Article VIII, Parent shall promptly (iand, in any event, within 14 days) promptly upon following the receipt of a written request by from the Company, reimburse the Company for all of its fees reasonable and documented out-of-pocket costs and expenses (including reasonable and documented fees of its attorneys and expenses of counsel and independent accountants) incurred by the Company, Company or any of its Subsidiaries in connection with the cooperation of the Company Subsidiaries, any of and its or their Representatives in connection with any cooperation Subsidiaries contemplated by this Section 5.05 and (ii) indemnify 6.11. Parent shall indemnify, defend and hold harmless the Company, its Subsidiaries and their respective Representatives from and against any and all losses, damages, awards, fines, penalties, expenses, fees, costs and amounts paid in settlement (including reasonable and documented fees and reasonable and documented expenses of counsel) suffered or incurred by them in connection with the cooperation of the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) Subsidiaries pursuant to this Section 6.11 except to the extent suffered or settlement payment incurred as a result ofof the bad faith, gross negligence or in connection withwillful misconduct of the Company, such cooperation its Subsidiaries or the Financing and any information used in connection therewith.of their respective Representatives. SECTION
Appears in 1 contract
Sources: Merger Agreement (Diversified Restaurant Holdings, Inc.)
Financing Cooperation. (a) From the date hereof until Prior to the Closing (or the earlier termination of this Agreement pursuant in accordance with Section 8.1, Sellers shall use their commercially reasonable efforts to Section 8.01)provide, subject and shall use commercially reasonable efforts to cause their respective officers, directors, employees, managers, advisors and representatives to use commercially reasonable efforts to provide, customary cooperation necessary or desirable for the arrangement of the Debt Financing to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as extent reasonably requested by Parent in connection Purchaser (provided that such requested cooperation does not unreasonably interfere with Parent’s arrangement the ongoing operations of the Financing (whichSellers or any of their Affiliates), solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include including using commercially reasonable best efforts to:
: (i) make appropriate officers reasonably availablecause each Transferred Entity’s senior officers, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies at reasonable times to be mutually agreed between Sellers and road showsPurchaser and upon, reasonable assistance prior notice to participate in a reasonable number of meetings (including customary one-on-one meetings between the preparation Financing Parties and senior officers of confidential information memorandasuch Transferred Entity), private placement memorandalender presentations, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, sessions with rating agencies (and provide customary executed authorization and management representation and management representation letters and agency engagement letters) (in each case, which may be virtual); (ii) cooperate with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent Purchaser and its Affiliates for all or any portion of the Financing;
Financing Parties; (iiiii) furnish Parent on a confidential basis Purchaser and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business as promptly as reasonably practicable any customary information necessary or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required advisable for the arrangement and syndication preparation of financings any customary bank information memoranda, offering documents or similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent documents reasonably required in connection with the marketing Debt Financing; (iv) provide customary authorization letters to the Financing Parties authorizing the distribution of information to prospective lenders or investors and syndication of containing customary representations to the Financing Parties; (including as set forth in v) provide financial information and other data regarding the Debt Letters as in effect on the date of this Agreement) Purchased Entities reasonably required or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange requested in connection with the Merger preparation of pro forma financial statements (it being understood and agreed that none of the Purchased Entities shall be required to prepare any pro forma financial information or post-closing financial information); (vi) cooperate with the Financing Parties in their efforts to benefit from the existing lending relationships of the Transferred Entities and their Subsidiaries; (vii) provide to Purchaser all documentation and other information with respect to the members of Sellers or any alternative financing therefor, and provide customary management letters of their Affiliates as shall have been reasonably requested in writing by Purchaser at least seven Business Days prior to the Closing Date that is required in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Debt Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by U.S. regulatory authorities under applicable “know your know-your-customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT ActPatriot Act and the requirements of 31 C.F.R. §1010.230, in each case, no later than five Business Days prior to the Closing Date, (viii) assist with the preparation of definitive documents for the Debt Financing and the schedules and exhibits thereto, (ix) facilitate the granting and perfection Liens or collateral, in each case, effective no earlier than the Closing Date, and (x) deliver a solvency certificate, subject to and only effective upon the occurrence of the Closing Date; provided that no Seller nor any of its Affiliates shall be required to take or permit the taking of any Limited Action. Nothing contained in this Section 5.15(a) or otherwise shall require such Seller or any of its Affiliates, prior to the Closing, to be an issuer or other obligor with respect to the Debt Financing. Sellers’ cooperation pursuant to this Section 5.15 shall be at the sole expense of Purchaser, and Purchaser shall, promptly upon request by Sellers and receipt of a reasonably detailed invoice therefor, reimburse Sellers and their Affiliates for all reasonable and documented out-of-pocket costs, fees and expenses incurred by them or their respective Representatives in connection with such cooperation and shall promptly, upon request by Sellers, reimburse, and shall indemnify and hold harmless Sellers and any of their Affiliates and their respective Representatives from and against any and all Losses suffered or incurred by them in connection with the arrangement of the Debt Financing, including by providing the cooperation contemplated by this Section 5.15 and any information used in connection therewith (other than to the extent arising from (x) the gross negligence, bad faith, fraud or willful misconduct of Sellers or their Affiliates or their respective Representatives or (y) inaccurate information provided by Sellers or their Affiliates or their respective Representatives in connection with such cooperation; provided, furtherthat Sellers, that nothing in this Agreement and not Purchaser, shall require be responsible for (x) fees payable to existing legal, financial or other advisors of Sellers and their respective Affiliates with respect to services provided prior to the Company to cause the delivery of Closing (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as any services provided in connection with the cooperation contemplated by Section 5.05(a)(iii5.15)), (2y) any financial information for any period, including any audited financial information ordinary course amounts payable to existing employees of or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company consultants to Sellers and their respective Affiliates with respect to such period, other than as services provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date Closing and (z) any amounts that would have been incurred in connection with the transactions contemplated hereby regardless of the Debt Financing (including the preparation and/or delivery of financial information, payoff letters and guaranty lien releases). Sellers hereby consent to the use of its and each Transferred Entity’s logos in connection with the Debt Financing; provided, that, such requestlogos are used solely in a manner that is not intended to, nor reasonably likely to, harm or disparage any Seller.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): 5.15(a), Sellers shall not be deemed to be in breach of their obligations under Section 5.15(a) unless and until (i) nothing in this Agreement Purchaser or its counsel provides written notice (including this Section 5.05the “Non-Cooperation Notice”) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification Parent of any existing agreement alleged failure to comply, or other documentation that would be effective prior action or failure to the Closing act which constitutes or (4) require the Companywill constitute a breach of or non-compliance with Section 5.15(a), any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no actionPurchaser includes in such Non-Cooperation Notice reasonable detail regarding the cooperation required to cure such alleged failure or non-compliance (which shall not require Sellers to provide any cooperation that Sellers would not otherwise be required to provide under Section 5.15(a)) and (iii) Sellers fail to take the actions specified on such Non-Cooperation Notice within three Business Days from receipt of such Non-Cooperation Notice (or, liability or obligation in the case of Section 5.15(a)(vii), such shorter period as may be necessary for Purchaser to comply with the requirements described in such section in connection with any Debt Financing) (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Companyor, its Subsidiariesin each case, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingsuch later date as Purchaser may agree).
(c) Parent shall (i) promptly upon request by The Parties acknowledge and agree that the Company, reimburse provisions contained in this Section 5.15 describe in full the Company for all obligation of its fees Sellers and expenses their Affiliates with respect to cooperation in connection with the arrangement of any debt financing (including fees the Debt Financing) to be obtained by Purchaser with respect to the Transaction and expenses the other transactions contemplated by this Agreement, and no other provision of counsel this Agreement (including any Annexes, Exhibits and accountantsSchedules hereto) incurred shall be deemed to expand or modify such cooperation obligations contained in this Section 5.15.
(d) All non-public or otherwise confidential information regarding Sellers or their Affiliates obtained by the CompanyPurchaser, any of the Company Subsidiaries, any of its Affiliates or their Representatives in connection with any cooperation contemplated by pursuant to this Section 5.05 5.15 shall be subject to Section 5.3(a); provided, that financing sources, ratings agencies, prospective lenders, and (ii) indemnify Debt Financing Sources and hold harmless the Company, the Company Subsidiaries each of their respective agents and advisors shall agree to keep any applicable confidential information concerning Parent and its Subsidiaries confidential, including through “click through” confidentiality agreements and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees confidentiality provisions contained in customary bank books and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithoffering memoranda.
Appears in 1 contract
Financing Cooperation. (a) From and after the date hereof until the Closing hereof, Buyer shall use commercially reasonable efforts to take, or cause to be taken, all actions and do, or cause to be done, as promptly as possible, all things reasonably necessary, proper or advisable to (i) satisfy, or cause to be satisfied, on a timely basis (or obtain a waiver of) all conditions to Buyer assuming the earlier termination of this Agreement pursuant to Section 8.01)ACFP Continuing Indebtedness, subject in each case, to the limitations extent within Buyer’s control and (ii) negotiate and enter into the Continuance of ACFP Debt Documents substantially on the terms and conditions set forth in this Section 5.05the Consent Letter and in a form reasonably acceptable to Buyer. Buyer shall use commercially reasonable efforts to, and unless otherwise agreed by Parentshall cause each of its controlled Affiliates to use commercially reasonable efforts to, the Company will use its reasonable best efforts to cooperate with Parent Seller in connection with the assumption of the ACFP Continuing Indebtedness, which shall include: (i) furnishing Seller and the Financing Parties customary financial and other information regarding Buyer and its Affiliates as Subsidiaries reasonably requested by Parent Seller and the Financing Parties to consummate assumption of the ACFP Continuing Indebtedness, (ii) upon prior written notice and at reasonable times, making appropriate officers of Buyer and its Subsidiaries available for participation in a reasonable number of meetings or due diligence sessions with the Financing Parties (it being understood that such meetings and sessions may occur telephonically or by videoconferencing), (iii) assisting Seller in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the its preparation of confidential information memorandaone or more credit agreements, private placement memorandaas well as other pledge and security documents or other documents, prospectusescertificates (including a solvency certificate), presentations incumbencies and similar documents authorizations, in each case as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company Seller and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
at least three (v) furnish Parent and the Financing Parties, within five (53) Business Days following written requestprior to the Closing, such providing all documentation and other information about Buyer and its Subsidiaries as any the Financing Party may Parties reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, regulations including without limitation the USA PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would requested by Seller in writing at least ten (110) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities Business Days prior to the Closing, (2) unreasonably interfere with . Buyer and each of its controlled Affiliates hereby consents to the ongoing business or operations customary and reasonable use of its logos solely for the purpose of the Company or the Company Subsidiaries, (3) require the Company or any assumption of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the ClosingACFP Continuing Indebtedness.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Sources: Stock Purchase Agreement (BurgerFi International, Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05The Company shall, and unless otherwise agreed by shall cause each Company Subsidiary and its and their respective officers, directors and employees to, at Parent’s sole expense, the Company will use its and their respective reasonable best efforts to cooperate with Parent provide and shall use reasonable best efforts to direct its Affiliates and their respective accountants, legal counsel and other representatives to provide, in each case, all customary cooperation as reasonably may be requested by Parent or Merger Sub, as applicable, that is necessary or customary in connection with Parent’s arrangement the arranging and obtaining of the Financing (whichDebt Financing; provided, solely for purposes that such requested cooperation does not unreasonably interfere with the ongoing operations of this Section 5.05, shall include the Company or any alternative equity or debt capital markets financings contemplated by the Debt Letters)Company Subsidiary. Such cooperation will include using reasonable best efforts toby the Company and the Company Subsidiaries shall include:
(i) make appropriate officers preparing and furnishing Parent or Merger Sub, as applicable, and the Debt Financing Sources, as promptly as practicable after the date hereof (and in any event, not later than a time reasonably availablesufficient to allow Parent or Merger Sub, with appropriate advance noticeas applicable, for participation to satisfy any condition to the receipt of such Debt Financing, including in bank meetingsany event on or prior to the Closing Date), due diligence sessions, meetings with ratings agencies all Financial Information and road shows, reasonable assistance in all other financial and other pertinent information and disclosures regarding the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations Company and similar documents the Company Subsidiaries as may be reasonably requested by Parent or any Merger Sub, as applicable, for use in connection with the Debt Financing,
(ii) causing the Company’s senior officers to participate in a reasonable number of lender or investor meetings (including customary one-on-one meetings with the parties acting as lead arrangers, bookrunners or agents for, and prospective lenders and purchasers of, the Debt Financing Partyand senior management and representatives, with appropriate seniority and expertise, of the Company), rating agency presentations and sessions and due diligence meetings, in each case, with respect to information relating to the Company at reasonable times and its Subsidiaries in connection with customary marketing efforts of upon reasonable advance notice (it being agreed that any such meetings, presentations and sessions may be virtual),
(iii) assisting Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent Merger Sub, as applicable, and the Debt Financing Parties Sources in the preparation of (a) Debt Marketing Documents and any supplements thereto (including assisting with copies the preparation of versions of such financial data Debt Marketing Documents and any supplements thereto that do not contain material non-public information with respect to the Company and its Subsidiaries which is prepared by the Company Subsidiaries and executing and delivering one or more customary authorization and representation letters) and (b) pro forma financial statements or other pro forma financial information, in each case to the extent reasonably requested by Merger Sub or Parent; provided, that (x) the Company shall not be responsible for the preparation of such pro forma financial statements and any pro forma adjustments giving effect to the Transactions contemplated herein and (y) the Company’s assistance shall relate solely to the financial information and data derived from the Company’s historical books and records (which shall not involve the Company itself preparing such pro forma financial information), and providing reasonable cooperation with the due diligence efforts of the Debt Financing Sources to the extent reasonable and customary,
(iv) reasonably cooperating with the marketing efforts of Merger Sub and the Debt Financing Sources in connection with the Debt Financing, including direct contact between such management of the Company and the Debt Financing Sources,
(v) reasonably cooperating with Parent’s legal counsel in connection with customary legal opinions required of Merger Sub in connection with the Debt Financing,
(vi) reasonably assisting Parent or Merger Sub, as applicable, in obtaining any corporate credit and family ratings from any ratings agencies contemplated in connection with the Debt Financing, including assisting Parent or Merger Sub, as applicable, and the Debt Financing Sources in the ordinary course preparation of business or can be prepared by customary materials for rating agency presentation to the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is extent reasonably requested by Parent or Merger Sub,
(vii) reasonably assisting in the preparation of, and executing and delivering, any Financing Party and is customarily required pledge, security, definitive financing agreements for the arrangement Debt Financing and syndication other customary financing documents, including guarantee and collateral documents and other certificates and documents (including the preparation of financings schedules thereto and other closing certificates, consents and resolutions (including a certificate of the chief financial officer of, or person performing similar functions for, the Company) with respect to the Financing committed pursuant solvency matters in customary form attached to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel Parent or Merger Sub, as applicable, in connection with the Debt Financing,
(viii) facilitating the pledging of, granting of security interests in and obtaining perfection of any legal opinion that such counsel may be required to deliver liens on, collateral in connection with such Financing; andthe Debt Financing (including delivery of original stock certificates and original stock powers of the Company Subsidiaries to the extent required on the Closing Date in connection with the Debt Financing and to the extent available to the Company),
(vix) furnish using reasonable best efforts to assist the Debt Financing Sources in benefiting from the existing lending relationships of the Company,
(x) taking all ministerial company actions reasonably requested by Parent and or Merger Sub, as applicable, to permit the Financing Partiesconsummation of the Debt Financing,
(xi) at least three (3) business days prior to the Closing Date, within five (5) Business Days following written request, such providing all documentation and other information as any Financing Party may reasonably determine is customarily required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationsregulations including, including without limitation limitation, the PATRIOT USA Patriot Act. provided, further, that nothing in this Agreement shall require relating to the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by and the Company with respect to such periodSubsidiaries and including, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require if the Company or any of the Company Subsidiaries qualify as “legal entity customers” under the Beneficial Ownership Regulation, a Beneficial Ownership Certificate, in each case, as is reasonably requested in writing by Parent or Merger Sub, as applicable, at least ten (10) business days prior to enter into or approve any agreement or other documentation effective the Closing, and
(a) obtaining a customary pay-off letter (in a form and substance reasonably acceptable to Parent and the Lenders) (the “Debt Payoff Letter”) and lien terminations, if applicable, to the extent necessary for the release of all Liens and the prepayment, payoff, discharge and termination in full of all obligations outstanding under the Credit Agreement, dated as of February 26, 2019, among the Company, certain affiliates of the Company, the financial institutions listed therein as lenders, Bank of America, N.A. as agent for the lenders named therein, Silicon Valley Bank as syndication agent and M▇▇▇▇▇▇ Lynch, Pierce, F▇▇▇▇▇ & S▇▇▇▇ Incorporated, as sole lead arranger and sole book runner, as amended to the date hereof (the “Existing Credit Agreement”), (b) providing Parent with a copy of such Debt Payoff Letter at least two (2) Business Days prior to the Closing Date and (c) giving (by the date required under the Existing Credit Agreement) any necessary notices (including notices of prepayment) to allow for the prepayment, payoff, discharge and termination in full of the Existing Credit Agreement at the Closing.
(b) Notwithstanding anything in this Agreement to the contrary, (A) neither the Company nor any Company Subsidiary shall be required to pay any commitment or agree other similar fee (other than for reasonable out-of-pocket costs or expenses that are reimbursed by Parent or Merger Sub, as applicable, as provided in Section 6.16(c)) or enter into any binding agreement or commitment (other than any customary authorization or representation letters) or incur any other actual or potential liability in connection with the Debt Financing or any of the foregoing prior to, or with respect to any change event or modification circumstances occurring or existing prior to, the Closing unless, in each case, either indemnified by Parent and Merger Sub in accordance with Section 6.16(c) or reimbursed by Parent or Merger Sub, as applicable, in accordance with Section 6.16(c), (B) no director, manager, officer or employee of the Company or any existing agreement Company Subsidiary shall be required to deliver any certificate or take any other documentation that would be effective prior action pursuant to Section 6.16(a) to the Closing extent any such action would reasonably be expected to result in personal liability to such director, manager, officer or employee, (4C) require none of the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) officers shall be obligated to adopt resolutions or execute consents to approve or authorize the execution of the Debt Financing, provided, that this clause (C) shall not prohibit the adoption or execution of any resolutions or consents so long as such resolutions or consents which are contingent upon the occurrence of the Closing or do not become effective any earlier than the Closing Date by any persons that shall remain or will become officers or directors of the Company or any of the Company Subsidiaries as of the Effective Time, and (iiD) no actionneither the Company nor any Company Subsidiary shall be required to take any action that would reasonably be expected, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) in the reasonable judgment of the Company, its Subsidiariesto conflict with, or result in any violation or material breach of, any applicable Law or any obligations of their respective Representatives under any certificate, agreement, arrangement, document confidentiality (not created in contemplation hereof) binding on the Company or instrument relating the Company Subsidiaries. The Company hereby consents to the Financing shall be effective until use of the ClosingCompany’s and the Company Subsidiaries’ logos in connection with the Debt Financing; provided, however, that such logos are used solely in a manner that is not intended to, or reasonably likely to, harm, disparage or otherwise adversely affect the Company or the reputation or goodwill of the Company.
(c) Parent shall (i) or Merger Sub, as applicable, shall, promptly upon request by the Company, reimburse the Company for all of its fees documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of Subsidiaries and its or and their respective Representatives in connection with any cooperation contemplated by this their respective obligations pursuant to Section 5.05 6.16(a). Parent and (ii) Merger Sub shall jointly and severally indemnify and hold harmless the Company, the Company Subsidiaries and its their respective Representatives, from and their Representatives against any claimand all claims, losslosses, damageliabilities, injurydamages, liabilityjudgments, judgmentinquiries, awardfines and reasonable fees, penaltycosts and expenses, fine, Tax, cost (including cost of investigation), expense (including attorneys’ fees and expenses disbursements suffered or incurred by any of counsel them in connection with the Debt Financing and accountants) any information supplied or settlement payment provided in connection therewith (except to the extent suffered or incurred as a result ofof (i) the gross negligence, willful misconduct or material breach of this Agreement by the Company, any Company Subsidiary or any affiliate or Representative thereof, in each case as determined by a court of competent jurisdiction, or (ii) any inaccuracy (other than any immaterial inaccuracy) in connection with, such cooperation the historical financial information provided to Parent or Merger Sub by the Financing and any information used in connection therewithCompany pursuant to the definition of “Financial Information”).
Appears in 1 contract
Financing Cooperation. (a) From Prior to the Closing Date Sellers agree to use commercially reasonable efforts to, and shall cause the Company and the Company Subsidiaries to use commercially reasonable efforts to, assist Buyers, to the extent reasonably requested by Buyers, in contacting the agent and lenders under the Company Credit Facilities and to otherwise cooperate with Buyers’ efforts to obtain the Refinancing Consents. At least two (2) Business Days prior to the Closing, the Company shall deliver or cause to be delivered to Buyers drafts of the payoff letters, if any, required to be delivered pursuant to Section 2.3(c).
(b) If and only to the extent the Refinancing Consents have not been obtained, during the period from the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01)through the Closing, subject to Sellers shall cause the limitations set forth in this Section 5.05Company and each Company Subsidiary to, and unless otherwise agreed by Parent, the Company will shall use its reasonable best efforts to cooperate with Parent cause the appropriate Representatives of the Company and its Affiliates as each Company Subsidiary to, provide in each case at Buyers’ sole expense, all cooperation reasonably requested by Parent Buyers upon reasonable prior notice that is customary and necessary in connection with Parent’s arrangement of arranging, obtaining and syndicating the Financing HFOTCO Backstop Financing, including (whichas applicable, solely for purposes subject to customary confidentiality arrangements and the remaining provisions of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include 6.12) using commercially reasonable best efforts to:
(i) to make appropriate officers reasonably available, with appropriate advance notice, of the Company available for participation in bank meetingsa reasonable number of meetings on reasonable advance notice and at reasonable locations, due diligence sessions, meetings drafting sessions, presentations, road shows and sessions with ratings agencies and road showsrating agencies, reasonable assistance (ii) reasonably assist Buyers in the preparation of confidential information memorandaany presentation to rating agencies, private placement memoranda, prospectuses, presentations (iii) to furnish Buyers and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties their financing sources with copies of such financial and operating data with respect to the Company and its the Company Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party Buyers and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securitiesbank-debt financings, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent assist Buyers in the preparation and to legal counsel of negotiation of, and executing and delivering, definitive financing documents, including customary credit agreements, indentures, guarantee and pledge and security documents and any Financing Party such information other customary certificates and documents as may be reasonably requested by such counsel Buyers (including a certificate of the chief executive officer of the Company with respect to solvency matters at the Company at Closing as required in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
the HFOTCO Debt Commitment Letter), (v) furnish Parent subject to any contractual agreement in effect, to facilitate the pledging of collateral for the HFOTCO Backstop Financing, including taking commercially reasonable actions necessary to permit the Financing Sources to evaluate the Company’s and the Financing PartiesCompany Subsidiaries’ assets for the purpose of establishing collateral arrangements, within (vi) at least five (5) Business Days following written requestprior to the Closing Date, such to provide documentation and other information as any Financing Party may reasonably determine about the Company and each Company Subsidiary that is required to become a guarantor of the HFOTCO Backstop Financing as is reasonably requested in writing by regulatory authorities under Buyers at least ten (10) Business Days prior to the Closing Date in connection with the HFOTCO Backstop Financing that relates to applicable “know your customer” and anti-money laundering rules and regulations, regulations including without limitation the USA PATRIOT Act required to be disclosed under paragraph 8 of Exhibit C of the HFOTCO Debt Commitment Letter, (vii) to furnish promptly when available, but in no event later than August 15, 2017, the Q2 Financial Statements and the unaudited financial statements of BGCT LLC required to be delivered to the lenders under the Company Credit Facilities, (viii) to provide customary authorization letters to the Financing Sources authorizing the distribution of information to prospective lenders or investors as is required to be delivered under the HFOTCO Debt Commitment Letter, (ix) to the extent the Refinancing Consents with respect to the Company Credit Facilities shall not have been obtained prior to the Closing Date, to use commercially reasonable efforts to obtain customary payoff letters, Lien terminations and instruments of discharge to be delivered at the Closing to allow for the payoff, discharge and termination in full on the Closing Date of the Company Credit Facilities, and (x) to provide, at Buyers’ sole cost and expense, such cooperation and assistance as is reasonably requested by Buyers, upon reasonable prior notice, in connection with Buyers’ preparation, execution and delivery, as applicable of (A) pro forma financial information in respect of such fiscal period in accordance with Regulation S-K and Regulation S-X under the Securities Act. ; provided, furtherhowever, that any obligations contained in all such agreements and documents shall be subject to the occurrence of the Closing and effective no earlier than the Closing Date and (B) customary credit agreements, indentures and pledge and security documents and otherwise reasonably facilitating the granting of a security interest (and perfection thereof) in collateral, guarantees, other definitive financing documents or other certificates (including a certificate of the chief executive officer of the Company (or its applicable Subsidiary) with respect to solvency matters), board resolutions or consents, customary closing certificates and documents as may be reasonably requested by Buyers and assisting in the negotiation of any such agreements and other documents; provided further that nothing in this Agreement shall require the Company Sellers to cause the delivery of (1A) any legal opinions or accountants’ cold comfort letters or reliance letters or any officer’s certificate as to in respect of the solvency of any entity other than the Company and the Company Subsidiaries at Closing, (B) any description of all or any other certificate necessary for component of the HFOTCO Backstop Financing, or (C) projections, risk factors or other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information forward-looking statements relating to all or any financial information prepared in accordance with Regulation S-K or Regulation S-X under component of the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestHFOTCO Backstop Financing.
(bc) Notwithstanding anything to Buyers agree that the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feesexecution by Sellers, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve of any agreement or other documentation effective prior documents in connection with the HFOTCO Backstop Financing shall be subject to the consummation of the Transactions at the Closing and such documents will not take effect until the completion of the Closing. Notwithstanding anything in this Section 6.12 or agree elsewhere in this Agreement to the contrary, (i) neither Sellers, the Company nor any change of the Company Subsidiaries shall be required to bear any cost or modification of expense, pay any existing fee or incur any liability or make any commitment or agreement that is not contingent upon the Closing (including the entry into any agreement) or other documentation that would be effective prior to the Closing completion of the Closing, (ii) nothing herein shall require such cooperation to the extent it would interfere unreasonably with the business or operations of the Company or any of the Company Subsidiaries, (4iii) require none of Sellers, the Company, Company or any of the Company Subsidiaries shall be required to take any action that would reasonably be expected to result in a breach of any Contract or subject it to actual or potential liability, to bear any cost or expense or to pay any commitment or other similar fee or make any other payment (other than reasonable out-of-pocket costs that are reimbursed by Buyers) or incur any other liability of any kind or provide or agree to provide any indemnity in connection with the HFOTCO Backstop Financing or any of their respective the foregoing prior to (or that is not subject to the occurrence of) the completion of the Closing, (iv) none of Sellers, the Company or any of the Company Subsidiaries shall be required to execute prior to the Closing any definitive financing documents, including any credit or other agreements, pledge or security documents, or other certificates, legal opinions or documents in connection with the HFOTCO Backstop Financing, (v) no officer or director of Sellers, the Company or any of the Company Subsidiaries shall be required to incur any personal liability in respect of any agreements, documents, certificates or opinions delivered in connection with the HFOTCO Backstop Financing, and (vi) none of the boards of directors (or equivalent bodies) of Sellers, the Company or any of the Company Subsidiaries shall be required to approve enter into any resolutions or authorize take similar action approving the FinancingHFOTCO Backstop Financing (other than any reasonable approval in connection with any Refinancing Consent that the applicable holders of such indebtedness may reasonably request in connection with such Refinancing Consent). Buyers shall indemnify, defend and (ii) no actionhold harmless Sellers, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of and the Company Subsidiaries and their respective Representatives under from and against any certificateand all liabilities, agreementlosses, arrangementdamages, document claims, costs, expenses, interest, awards, judgments and penalties suffered or instrument incurred by any of them in connection with the HFOTCO Backstop Financing, including any action taken in accordance with this Section 6.12 and any information utilized in connection therewith (other than historical financial information relating to the Financing shall be effective until Company and its Subsidiaries provided in writing by the Closing.
(c) Parent shall (i) Company or its Subsidiaries expressly for use in connection with the HFOTCO Backstop Financing). Buyers shall, promptly upon request by the Company, reimburse the Company for all of its fees and expenses reasonable out-of-pocket costs (including fees and expenses of counsel and accountantsreasonable attorneys’ fees) incurred by Sellers, the Company, any of and the Company Subsidiaries, any of its or their Representatives Subsidiaries in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless 6.12. Notwithstanding anything herein to the contrary, the only obligations of Sellers, the Company, and the Company Subsidiaries and its and their respective Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or with respect to the HFOTCO Backstop Financing shall be those explicitly set forth in connection with, such cooperation or the Financing and any information used in connection therewiththis Section 6.12.
Appears in 1 contract
Financing Cooperation. (a) From Upon the date hereof until request of the Closing (or CCG, the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05Sellers shall, and unless otherwise agreed by Parentshall cause the Acquired Companies and their Subsidiaries, the Company will to use its their commercially reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such provide such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries CCG in connection with customary marketing its efforts of Parent and its Affiliates for all or any portion of to consummate the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion Equity Offering; provided that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form cooperation does not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Acquired Company or and their Subsidiaries. Such commercially reasonable efforts shall include, to the Company extent reasonably requested by CCG, (a) making available to CCG appropriate personnel of the Acquired Companies and their Subsidiaries, (3b) require providing, as promptly as reasonably practicable, information relating to the Company Acquired Companies and their Subsidiaries to the extent reasonably requested by CCG to assist in preparation of customary offering or any information documents to be used for the completion of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the FinancingEquity Offering, and (iic) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) assisting CCG in obtaining customary comfort letters and consents of the Company, its independent accountants of the Acquired Companies and their Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating including with respect to the Financing auditor consents in connection with any filings with the SEC. CCG shall be effective until the Closing.
(c) Parent shall (i) promptly promptly, upon request by the CompanySellers, reimburse the Company Sellers for all reasonable and documented out of its fees and expenses pocket costs (including fees and expenses of counsel and accountantsreasonable attorneys’ fees) incurred by the Company, any of the Company Subsidiaries, any of its Sellers or their respective Representatives in connection with any cooperation contemplated by their respective obligations pursuant to, and in accordance with, this Section 5.05 6.9, and (ii) shall indemnify and hold harmless the CompanySellers, the Company Acquired Companies and their Subsidiaries and its their respective Representatives from and their Representatives against any claimand all damages, losslosses, damagecosts, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost liabilities or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the Financing consummation of the Equity Offering and any information used in connection therewiththerewith (other than information provided by the Sellers, any of the Acquired Companies or any of their Subsidiaries) and all other actions taken by the Sellers, the Acquired Companies and their Subsidiaries and their respective Representatives pursuant to this Section 6.9.
Appears in 1 contract
Sources: Purchase and Sale Agreement (Campus Crest Communities, Inc.)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use reasonable best efforts to, and shall (x) cause its Subsidiaries and (y) use reasonable best efforts to cooperate with Parent cause their respective officers, directors, employees and its Affiliates accountants to, at Parent’s sole cost and expense, use reasonable best efforts to provide such cooperation as is reasonably requested by Parent or Acquisition Sub to assist Parent and Acquisition Sub in connection with to Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by efforts to obtain the Debt Letters). Such cooperation will include Financing or any Replacement Financings, including using reasonable best efforts to:
: (i) make appropriate officers reasonably availablefurnish, with appropriate advance noticeor cause to be furnished to, for participation in bank meetingsParent, due diligence sessionsAcquisition Sub and/or its Debt Financing Sources the Required Information and all other customary pertinent financial, meetings with ratings agencies business and road shows, reasonable assistance in other information regarding the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations Company and similar documents its Subsidiaries as may be reasonably requested by Parent Parent, (ii) cause members of senior management of the Company to participate (which participation shall be limited to teleconference or any Financing Partyvirtual meeting platforms) in a reasonable number of lender meetings, lender presentations, due diligence sessions, road shows, drafting sessions and rating agency meetings, in each case, upon reasonable advance notice, during normal business hours and at mutually agreed locations and times, (iii) provide reasonable assistance to Parent in its preparation of customary rating agency presentations, lender and investor presentations, offering memoranda, customary bank information memoranda and similar documents reasonably required in connection with the Debt Financing or any Replacement Financings (including by reasonably assisting in the preparation of such materials that do not include material non-public information), in each case, solely with respect to information relating to the Company (to the extent related to its business) and its Subsidiaries in connection with customary marketing efforts of Parent Subsidiaries, (iv) delivering information and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect documentation related to the Company and its Subsidiaries which that is prepared required by paragraph 6 of Exhibit D to the Company in the ordinary course of business Debt Commitment Letter (or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parentsuccessor provision thereof) as is and reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
Financing Sources at least ten (iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (510) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities prior to the Closing Date with respect to compliance under applicable “know your customer” ”, beneficial ownership and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. , which information shall be provided no later than three (3) Business Days prior to the Closing Date), (v) provide reasonable and customary assistance with Parent’s preparation, negotiation and execution of definitive financing documentation and the schedules and exhibits thereto (including indentures, loan agreements, guarantees, collateral agreements, hedging arrangements, customary officer’s certificates and corporate resolutions, as applicable) as may reasonably be requested by Parent or Acquisition Sub and subject to the occurrence of the Closing, (vi) provide reasonable and customary assistance with facilitating the pledging of collateral in connection with the Debt Financing or any Replacement Financings, including executing and delivering any customary pledge and security documents, currency or interest hedging arrangements or other customary definitive financing documents, and documents as may be reasonably requested by Parent or Acquisition Sub, (vii) at the reasonable request of Parent or Acquisition Sub, and subject to the consent of the Company (which consent shall not be unreasonably withheld, conditioned or delayed), using reasonable best efforts to file a Form 8-K with the SEC disclosing information identified by Parent or Acquisition Sub relating to the Company and its Subsidiaries for purposes of permitting such information to be included in marketing or offering materials or memoranda for the Debt Financing or any Replacement Financings to be provided to potential investors who do not wish to receive material nonpublic information with respect to any of Parent, Acquisition Sub, the Company, any of their respective Affiliates or any of their respective securities, it being understood that such information shall not include projections or other information not customarily included in a Rule 144A offering memorandum and (viii) using reasonable best efforts to supplement the Required Information on a reasonably current basis to the extent that any Required Information, to the knowledge of the Company, when taken as a whole and in light of the circumstances under which such statements were made, contains any material misstatement of fact or omits to state any material fact necessary to make such information not materially misleading; provided, further, that nothing the such requested cooperation shall not (A) cause any representation or warranty in this Agreement shall to be breached, (B) cause any condition to Closing to fail to be satisfied or otherwise cause any breach of this Agreement, (C) require the Company or any of its Subsidiaries or their respective Representatives to (i) execute, deliver, enter into, approve or perform any agreement, commitment, certificate, document or instrument (excluding any customary authorization letters (provided that such customary authorization letters (or the bank information memoranda in which such letters are included) shall include language that exculpates the Company, each of its Subsidiaries and their respective Representatives and Affiliates from any liability in connection with the unauthorized use by the recipients thereof of the information set forth in any such bank confidential information memoranda or similar memoranda or report distributed in connection therewith)), or modification of any agreement, commitment, document or instrument, in each case, that would be effective prior to the Effective Time, (ii) deliver or cause the delivery of any legal opinions, (1iii) legal opinions deliver or cause the delivery of any reliance letters or any certificate as to solvency or any other certificate necessary for in connection to the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information Debt Financing or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amendedReplacement Financings, in any each case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing Effective Time, (iv) adopt any resolutions, execute any consents or otherwise take an corporate or similar action or deliver any certificate, in connection with the Debt Financing, any Replacement Financings or the incurrence of indebtedness thereby, in each case, that would be effective prior to the Effective Time or (4v) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees similar fee, incur or reimburse any expenses) costs or expenses or incur any other liability or obligation of any kind or give any indemnities in connection with the Company, its Subsidiaries, Debt Financing or any of their respective Representatives Replacement Financings, including under any certificate, agreement, arrangement, document or instrument relating related thereto, in each case, that would be effective prior to the Financing Effective Time, (D) require the Company or any of its Subsidiaries or their respective Affiliates and Representatives to deliver any certificates or take any action pursuant to this Section 6.12 if doing so could result in liability to the Company or such Subsidiary, Affiliate or Representatives, (E) require the Company or any of its Subsidiaries to provide, or cause to be provided, any information the disclosure of which is prohibited or restricted under applicable Law or any binding agreement with a third party or that is legally privileged or consists of attorney work product or could reasonably be expected to result in the loss of any attorney-client privilege, (F) require the Company or any of its Subsidiaries to take any action that will conflict with or violate its organizational documents or any Laws or result in a violation or breach of, or default under, any Company Material Contract (other than any Company Material Contract being entered in contemplation hereof), (G) require the Company or any of its Subsidiaries to enter into or approve any binding commitment prior to the Effective Time, (H) unreasonably interfere with the ongoing operations of the Company and its Subsidiaries or (I) prepare or deliver any financial statements or other financial data other than the Required Information. Neither the Company nor any of its Affiliates or Subsidiaries shall be effective until the Closing.
(c) have any liability to Parent shall (i) promptly upon request or Acquisition Sub in respect of any financial statements, other financial information or data or other information provided pursuant to this Section 6.12. Unless otherwise agreed by the Company, all non-public or other confidential information provided by the Company to Parent or its Affiliates pursuant to this Section 6.12 shall be kept confidential in accordance with the Confidentiality Agreement. Parent shall promptly (and in any event within three (3) Business Days of delivery of documentation evidencing such cost and expenses) reimburse the Company for all of its any out-of-pocket reasonable and documented expenses and costs (including reasonable outside attorneys’ fees and expenses (including fees and expenses of counsel and accountantsdisbursements) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by the Company’s or its Affiliates’ or Representatives’ obligations under Section 6.11 or this Section 5.05 6.12 and (ii) shall indemnify and hold harmless the Company, the Company Subsidiaries and its Affiliates and their respective Representatives from and against any claimand all losses, lossdamages, damageclaims, injury, liability, judgment, award, penalty, fine, Tax, cost costs (including cost of investigation), expense settlement payments, injuries, liabilities, judgements, awards, penalties, fines or expenses (including attorneys’ fees and expenses disbursements) suffered or incurred by any of counsel and accountants) or settlement payment incurred them as a result of, or in connection with, (1) such cooperation cooperation, (2) the Debt Financing or the Financing and any Replacement Financings, (3) any information used in connection therewithwith the Debt Financing (except with respect to written information provided by the Company or any of its Affiliates specifically for inclusion in offering materials relating to the Debt Financing or any Replacement Financings) and (4) any action taken by any of them at the request of Parent or Acquisition Sub pursuant to this Section 6.12, except, to the extent such losses, damages, claims, costs (including cost of investigation), settlement payments, injuries, liabilities, judgements, awards, penalties, fines or expenses (including reasonable outside attorneys’ fees and disbursements) arose from the fraud or willful misconduct of the Company or any of its Affiliates or Representatives, as determined in a final, non-appealable judgment of a court of competent jurisdiction. The Company hereby consents to the use of its and its Subsidiaries’ logos in connection with the Debt Financing or any Replacement Financings; provided that such logos are used solely in the ordinary course as is customary for such purpose and in a manner that is not intended, or reasonably likely, to harm, disparage or otherwise adversely affect the Company, any of its Subsidiaries or their reputation or goodwill. Notwithstanding anything contained herein to the contrary, the condition set forth in Section 7.2(c), as it applies in respect of the Company’s obligations under this Section 6.12, shall be deemed satisfied unless the Company has knowingly and willfully materially breached its obligations under this Section 6.12 and which such breach was a proximate cause in Parent not being able to obtain the Debt Financing or any Replacement Financings.
Appears in 1 contract
Sources: Merger Agreement (Corelogic, Inc.)
Financing Cooperation. (a) From the date hereof of this Agreement until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01Article 12), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will shall, and shall cause each of its Subsidiaries to, use its commercially reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such provide customary cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the Merger Subsidiary in connection with Parent’s and Merger Subsidiary’s arrangement and syndication of financings similar to the Financing committed debt financing pursuant to that certain commitment letter dated as of the date hereof from the Debt LettersFinancing Sources party thereto (including all related exhibits, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933schedules, annexes, supplements and term sheets thereto, and as amended, and identify supplemented, replaced or otherwise modified from time to time, the “Debt Commitment Letter”) in connection with the transactions contemplated hereby in the amount set forth therein (any such financial information debt financing, the “Parent Debt Financing”). Subject to the limitations in paragraph (b) below, such cooperation shall include (i) furnishing Parent and Merger Subsidiary with the Required Information, all of which shall be provided by the Company as suitable promptly as practicable after the date hereof, and updating any such Required Information as may be necessary for distribution such Required Information to “public side” lenders;
be remain Compliant, (iiiii) request that the Company’s independent accountants upon reasonable notice, participating in and cause appropriate members of senior management to participate in drafting sessions and accounting a reasonable number of lender presentations, meetings, calls, due diligence sessions and cooperate sessions with rating agencies in connection with the Parent Debt Financing at reasonable times and locations to be mutually agreed, (iii) providing reasonable assistance to Parent in its preparation of any customary bank information memoranda (including as set forth the delivery of customary executed authorization letters with respect to the bank information memoranda executed by a senior officer of the Company), (iv) reasonably cooperating with, and taking all actions reasonably required by, Parent in order to facilitate the Debt Letters as in effect on termination and payoff of the date commitments under the Company’s existing credit facilities and other indebtedness for borrowed money of the Company required by the terms of this Agreement, including customary payoff letters, lien releases, instruments of termination or discharge in order to allow for the payoff, discharge and termination in full on the Closing of such existing debt, and using commercially reasonable efforts to facilitate the obtaining of Company guarantees of Parent Debt Financing and pledging of Company collateral in connection therewith as of Closing, (v) or reasonably assisting Parent in the execution and delivery of customary definitive documents and certificates related to the Parent Debt Financing, (vi) providing customary information about the Company and its Subsidiaries as the Company may have, upon reasonable request of Parent, in connection with a customary offering of securities, including Parent’s efforts to obtain ratings from rating agencies contemplated by the type described in the Debt Commitment Letter, consistent with their customary practice(vii) furnishing, including requesting that they provide customary consents at least three Business Days prior to the Closing, such documentation and comfort letters (including “negative assurance” comfort), including information as is reasonably requested in respect of historical financial statements of writing by Parent at least ten Business Days prior to the Company, Closing to the extent required in connection with for lenders under the marketing and syndication of Parent Debt Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulationsregulations including the USA PATRIOT Act and a certificate regarding beneficial ownership required by 31 C.F.R. § 1010.230 and (viii) taking corporate actions reasonably required to permit the consummation of the Parent Debt Financing and to permit the proceeds thereof to be made available to the Surviving Company at the Effective Time. The Company hereby consents to customary and reasonable use of its and its Subsidiaries’ logos in connection with such Parent Debt Financing; provided that such logos are used solely in a manner that is not intended, including without limitation the PATRIOT Act. providedor reasonably likely, further, that nothing in this Agreement shall require to harm or disparage the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency of its Subsidiaries or the reputation or goodwill of any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestthem.
(b) Notwithstanding Section 6.08(a) or anything else in this Agreement, (i) in no event will the Company or any of its Subsidiaries be required to pay any commitment fee or other fee or payment to obtain consent, or to incur any liability or expense (other than with respect to any authorization letter contemplated above) with respect to, or cause or permit any Lien to be placed on any of their respective assets in connection with, the Parent Debt Financing prior to the contrary contained in this Agreement Effective Time, (including this Section 5.05): (iii) nothing in this Agreement (including this Section 5.05) Section 6.08 shall require any such action that would conflict with or violate the Company’s or any of its Subsidiaries’ organizational documents or any Applicable Laws or result in the contravention of, or that would reasonably be expected to result in a violation or breach of, or a default under, any contract to which the Company or any of its Subsidiaries is a party and (iii) nothing herein will require cooperation or any action to the extent that (A) it would (1) require the Company could reasonably be expected to pay any commitment materially or other feesunreasonably interfere, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company its Subsidiaries, (3B) it could reasonably be expected to be in violation of Applicable Law or conflict with any obligation or undertaking of the Company or its Subsidiaries, (C) it provides access to, or disclosure of, any information that the Company or its Subsidiaries reasonably determines could reasonably be expected to jeopardize any attorney-client privilege of the Company or its Subsidiaries, (D) it would require or cause the Company or any of the Company Subsidiaries Subsidiary to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing Effective Time, (E) it would alter any term or condition of this Agreement or (4F) it would require disclosure of confidential information without reasonably appropriate confidentiality undertakings and liability limitation provisions in favor of Company and its Subsidiaries, in form and substance reasonably satisfactory to them. Parent shall, promptly upon termination of this Agreement (if any), reimburse the Company, any of or after the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) Closing shall make payment to approve or authorize the FinancingHolder Representative Expense Fund, for all reasonable, documented out-of-pocket expenses and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) costs incurred in connection with the performance of the Company, ’s or its Subsidiaries, or any of their respective Representatives Affiliates’ obligations under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingthis Section 6.08.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant Subject to Section 8.016.11(a), subject prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentFirst Effective Time, the Company will use shall and shall cause its reasonable best efforts to Subsidiaries to, at Parent’s sole expense, reasonably cooperate in connection with Parent and its Affiliates the arrangement of the Debt Financing as may be reasonably requested by Parent in connection with Parent’s arrangement the Debt Financing (provided that such requested cooperation is otherwise consistent with this Agreement and does not unreasonably interfere in any material respect with the ongoing operations of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt LettersCompany and its Subsidiaries). Such cooperation will include using by the Company shall include, at the reasonable best efforts torequest of Parent:
(i) make appropriate officers reasonably availablecommenting on or assisting with the preparation (including providing information and materials to be used in the preparation) of customary confidential information memoranda or similar offering documents for the Debt Financing, with appropriate advance noticecustomary rating agency presentations and lender presentations for the Debt Financing; provided, for participation in bank meetings, due diligence sessions, meetings with ratings agencies that any such document and road shows, reasonable assistance rating agency presentation shall contain disclosure and financial statements reflecting the Company as the obligor;
(ii) assisting in the preparation of confidential information memorandaof, private placement memorandaand executing and delivering, prospectusesone or more credit agreements, presentations guarantees, pledge and similar documents security documents, supplemental indentures, currency or interest hedging arrangements, other definitive financing documents, or other certificates, documents, or closing deliverables with respect to the Debt Financing contemplated by the Debt Commitment Letter as may be reasonably requested by Parent or (including customary consents of accountants for use of their reports in any Financing Party, in each case, with respect to information materials relating to the Company and its Subsidiaries in connection with customary marketing efforts Debt Financing) or otherwise reasonably facilitating the pledging of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenderscollateral;
(iii) request that the Companyfurnishing Parent and Parent’s independent accountants participate in drafting sessions Financing Sources and accounting due diligence sessions and cooperate their respective Representatives with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingRequired Information;
(iv) furnish furnishing Parent for distribution to legal counsel of Parent and to legal counsel of the Financing Sources information required by any Financing Party such information as may be reasonably requested by such counsel in connection Sources for compliance with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation USA Patriot Act of 2001 at least three days prior to Closing;
(v) participating in a reasonable number of meetings with prospective lenders for the PATRIOT ActDebt Financing at times and location to be mutually and reasonably agreed upon, including contact between appropriate senior management, on the one hand, and prospective lenders on the other;
(vi) cooperating reasonably with the due diligence of the Financing Sources, to the extent customary and reasonable and to the extent not unreasonably interfering with the ongoing operations of the Company or any of its Subsidiaries;
(vii) cooperating in satisfying the conditions precedent set forth in the Debt Commitment Letter or any definitive document relating to the Debt Financing (to the extent the satisfaction of such condition requires the cooperation of, and is within the control of the Company or its Subsidiaries);
(viii) cooperating with Parent in Parent’s efforts to obtain consents, legal opinions, surveys, title insurance and insurance affidavits as reasonably requested by Parent;
(ix) taking all actions reasonably requested by Parent and necessary to (A) permit the prospective lenders involved in the Debt Financing to evaluate the Company and its Subsidiaries’ current assets, cash management and accounting systems, policies and procedures relating thereto for the purpose of establishing collateral arrangements to the extent customary and reasonable and (B) no earlier than the Closing establish bank and other accounts and blocked account agreements and lock-box arrangements in connection with the foregoing; and
(x) provide commercially reasonable efforts to assist Parent in connection with Parent’s preparation of pro forma financial information and financial statements to the extent necessary or reasonably required by Financing Sources to be included in any offering documents or marketing documents related to the Debt Financing. providedParent shall promptly reimburse the Company for any expenses and costs incurred in connection with the Company’s or its Affiliates’ obligations under this Section 6.17(a). Notwithstanding anything in this Agreement to the contrary, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as of its Subsidiaries to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in waive or amend any terms of this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other feesAgreement, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expensesexpenses prior to the First Effective Time or to approve the execution or delivery of any document or certificate in connection with the Financing (or any alternative financing), (ii) enter into any definitive agreement relating to the Debt Financing prior to the First Effective Time or (iii) provide any information the disclosure of which is prohibited or restricted under applicable Law or where such disclosure would, in the opinion of counsel, reasonably be expected to result in the waiver of any attorney-client privilege; provided, that in the case of the preceding clause (iii), that they shall use commercially reasonable efforts to communicate the applicable information to Parent in a way that would not violate the applicable Law or result in the waiver of such privilege, including by providing such information in redacted form as necessary to preserve such privilege or comply with such Law. Nothing in this Section 6.17 shall require the cooperation of the Company to the extent that it would unreasonably interfere with the business or operations of the Company, its Subsidiaries, . No officer of the Company or any of their respective Representatives its Subsidiaries who is not reasonably expect to be an officer of the Second Step Surviving Corporation shall be obligated to deliver any certificate in connection with the Financing and no counsel for the Company or any of its Subsidiaries shall be obligated to deliver any opinion in connection with the Financing, and irrespective of the above, no obligation of the Company or any of its Subsidiaries under any agreement, certificate, document or instrument shall be effective until the First Effective Time. None of the Company or any of its Subsidiaries shall be required to take any action under any certificate, agreement, arrangement, document or instrument relating that is not contingent upon the occurrence of the Closing (including entry into any agreement that is effective before the First Effective Time) or that would be effective prior to the First Effective Time. Nothing in this Agreement will require any officer or Representative of the Company or any of its Subsidiaries to deliver any certificate or opinion or take any other action pursuant to Section 6.17 or any other provision of this agreement that could reasonably be expected to result in personal liability to such officer or Representative.
(b) The Company hereby consents to the use of all logos of the Company and its Subsidiaries in connection with the Financing shall so long as such logos (i) are used solely in a manner that is not intended to or would reasonably be effective until likely to harm or disparage the ClosingCompany or any of its Subsidiaries or the reputation or goodwill of the Company or any of its Subsidiaries and (ii) are used solely in connection with a description of the Company, its business and products or the Merger.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company and its Subsidiaries and their respective Representatives from and against any and all losses actually suffered or incurred by them in connection with the arrangement of the Debt Financing, solely to the extent arising from any action taken by them at the request of Parent pursuant to this Section 6.17 and any information misused by the Financing Sources in connection therewith, except to the extent with respect to any willful misconduct, fraud, bad faith, gross negligence or material misstatement or omission in information provided hereunder, by any of the Company, its Subsidiaries or any of their respective Representatives.
(d) All non-public or otherwise confidential information regarding the Company or its Subsidiaries obtained by Parent or any of its Representatives pursuant to this Section 6.17 shall be kept confidential in accordance with the Confidentiality Agreement; provided that Parent and its Merger Sub shall be permitted to disclose Confidential Information to potential debt financing sources and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost without the prior written consent of investigation), expense (including fees the Company if such potential debt financing sources and expenses of counsel and accountants) their Representatives who receive such information are subject to a confidentiality agreement no less restrictive that the Confidentiality Agreement with respect to such information or settlement payment incurred as a result of, or provided in connection with, such cooperation or the Financing and any information used in connection therewithCommitment Letter.
Appears in 1 contract
Sources: Merger Agreement (Diligent Corp)
Financing Cooperation. (a) From the date hereof until Prior to the Closing Date (or the such earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations date as set forth in this Section 5.05, and unless otherwise agreed by Parent5.14), the Company and its Subsidiaries will use its their reasonable best efforts to cooperate provide (as soon as reasonably practicable following Parent’s reasonable request), and will direct their Representatives to use reasonable best efforts to provide (as soon as reasonably practicable following Parent’s reasonable request), to Parent, in each case at Parent’s sole expense, all cooperation reasonably requested by Parent to assist Parent in connection with the Debt Financing, including using reasonable best efforts to (as soon as reasonably practicable following Parent’s reasonable request):
(i) furnish to Parent and the Debt Financing Sources, as promptly as reasonably practicable, (A) the Required Information in true, correct and complete form in all material respects and (B) to the extent reasonably available to the Company under its Affiliates reporting systems (as in effect on the date hereof), such other customary information regarding the Company and its Subsidiaries as may be reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish as promptly as reasonably practicable, (A) inform Parent and if the Financing Parties with copies Company or its Subsidiaries have actual knowledge of any facts that would reasonably be expected to (1) require the restatement of any financial statements comprising a portion of the Required Information in order for such financial data statements to comply with respect GAAP or (2) result in any of the Required Information no longer being true, correct and complete in all material respects or otherwise being materially misleading (taken as a whole), and (B) update and/or supplement any Required Information provided to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Debt Financing Party and is customarily required for the arrangement and syndication of financings similar Source to the Financing committed pursuant extent necessary for such Required Information to the Debt Lettersremain true, including such information necessary to allow Parent to prepare pro forma financial statements correct and complete in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, all material respects and not materially misleading (taken as amended, and identify any such financial information as suitable for distribution to “public side” lendersa whole);
(iii) request that the Company’s independent accountants assist in preparation for and participate in drafting marketing efforts for the Debt Financing (including a reasonable number of meetings, lender presentations, and calls (that are requested in advance with or by the parties acting as lead arrangers or agents for, and prospective lenders and purchasers of, the Debt Financing, including direct contact between appropriate members of senior management of the Company and its Subsidiaries, on the one hand, and potential Debt Financing Sources, on the other hand)), presentations, roadshows, due diligence sessions and (including accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securitiescooperating with, including the type described in the Commitment Letterand providing due diligence materials requested by, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfortParent), including drafting sessions and sessions with rating agencies, in respect of historical financial statements of the Companyeach case, upon reasonable advance notice from, and as reasonably requested by, Parent and at reasonable times and locations (which may be virtual) to the extent required be mutually and reasonably agreed, and assisting Parent in obtaining any ratings requested by Parent in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoingFinancing;
(iv) furnish to legal counsel assist in the preparation of Parent customary definitive financing documentation and to legal counsel the completion of any schedules, exhibits or annexes thereto (including, if required by the Debt Financing Party such information Sources, a customary perfection certificate), and provided that effectiveness thereof is contingent upon the Closing, permitting officers and/or directors of the Company or any of its Subsidiaries who will be officers or directors, as may be reasonably requested by such counsel applicable, of the Company or any of its Subsidiaries after the Closing Date to execute and deliver any documentation in connection with any legal opinion the Debt Financing as of the Closing;
(v) facilitate the pledging of collateral (including possessory collateral) and the granting of liens (and the perfection thereof) in respect of the Debt Financing as required by the Debt Financing (it being understood that such counsel may be required pledge and ▇▇▇▇▇ will not take effect prior to deliver in connection with such Financingthe Effective Time); and
(vvi) furnish Parent and the Financing Parties, within at least five (5) Business Days following written requestprior to the Closing Date, providing such documentation and other information as regarding the Company and its Subsidiaries determined by Parent or any Debt Financing Party may reasonably determine is Source to be required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities USA Patriot Act of 19332001, as amended, in any case in a form not customarily prepared and to be required to complete certifications regarding beneficial ownership required by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request31 C.F.R. § 1010.230.
(b) Notwithstanding anything in this Section 5.14 to the contrary contained in this Agreement (including this Section 5.05): (i) contrary, nothing in this Agreement (including this Section 5.05) shall 5.14 will require any such cooperation or assistance to the extent that it would (1) require could result in the Company or any of its Subsidiaries being required to:
(i) pledge any assets as collateral that is not contingent upon the Closing or that would be effective prior to the Effective Time;
(ii) agree to pay any commitment fee or other feesfee, reimburse any expenses or otherwise expenses, incur any liabilities liability or give any indemnities indemnity in connection with the Debt Financing prior to the Closing, ;
(2iii) take any actions to the extent such actions (A) would unreasonably interfere with the ongoing business or operations of the Company or the Company any of its Subsidiaries, (3B) require could subject any director, manager, officer or employee of the Company or any of its Subsidiaries or any of its and their respective Representatives to any personal liability with respect to matters related to the Debt Financing, (C) would conflict with, or result in any material violation or material breach of, or material default (with or without notice, or lapse of time or both) under, the organizational documents that are in effect as of the date hereof of the Company Subsidiaries or any of its Subsidiaries, any Company Material Contract that is in effect as of the date hereof or (D) would conflict with, or result in any violation or breach of, any applicable Law or Order;
(iv) waive or amend any terms of this Agreement;
(v) commit to take any action under any certificate, document or instrument or enter into any definitive agreement, in either case, that is not contingent upon the Closing (other than the obligation to deliver any customary “authorization” letters);
(vi) provide access to or disclose information that violates applicable Law or that the Company determines, in its reasonable judgment after consulting with its outside legal counsel as necessary, would jeopardize any attorney-client privilege of, or conflict with any confidentiality requirements in effect as of the date hereof owing to a third party applicable to, the Company or its Affiliates;
(vii) cause any director, manager or equivalent, or any officer or employee of the Company or any its Subsidiaries (other than any director, manager or equivalent or officer or employee of the Company or any of its Subsidiaries who will continue in such a position following the Closing), to pass resolutions to approve the Debt Financing or authorize the execution and delivery of any agreement agreements or documents or any actions in connection therewith, or to execute or deliver any certificate in connection with the Debt Financing (other documentation effective prior than the obligation to deliver any customary “authorization” letters), in each case, that are not contingent on the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing;
(viii) deliver financial statements in a form or subject to a different standard than those provided to Parent by the Company or its Subsidiaries prior to the date hereof;
(ix) deliver any legal opinion or other opinion of counsel or accountants’ comfort letters or any reliance letter;
(x) make any representation as to the solvency of the Company or any of its Subsidiaries or deliver any solvency or similar certificate;
(xi) make any representation, warranty or certification that, in the good faith determination of the Company, is not true;
(xii) take any action that could reasonably be expected to cause any representation or warranty made by the Company or covenant applicable to the Company contained in this Agreement to be breached or to cause any condition to the Closing applicable to the Company set forth in Article VI to fail to be satisfied or otherwise cause any breach by the Company of this Agreement; or
(4xiii) require provide or prepare any projections or pro forma financial information or any other financial or other information that is not reasonably available to the Company under its reporting systems (as in effect on the date hereof).
(c) The Company and its Subsidiaries hereby consent to the reasonable use of the Company’s and its Subsidiaries’ logos in connection with the Debt Financing; provided, that such logos may only be used in a manner that is not intended to, nor reasonably expected to, harm or disparage the Company, any of the Company its Subsidiaries or any of their respective boards of directors (Affiliates or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the ClosingRepresentatives.
(cd) Parent shall (i) will promptly upon written request by the CompanyCompany (including a reasonably detailed invoice or other reasonably detailed back-up documentation), reimburse the Company for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, or any of its or Subsidiaries and their respective Representatives in connection with any the cooperation of the Company and its Subsidiaries and Representatives contemplated by this Section 5.05 5.14 (provided that such reimbursement shall not include (x) fees payable to existing legal, financial or other advisors of the Company and its Subsidiaries with respect to services provided prior to the Closing that would have been incurred regardless of the Debt Financing (including preparation of and/or delivery of financial information, payoff letters and Lien releases), (y) any ordinary course amounts payable to existing employees of or consultants to the Company or any of its Subsidiaries with respect to services provided prior to the Closing and (iiz) any amounts that would have been incurred in connection with the transactions contemplated hereby (including, without limitation, the Transactions) regardless of the Debt Financing (including the preparation or delivery of financial information)), and Parent will indemnify and hold harmless the Company, the Company its Subsidiaries and its their respective Representatives from and their Representatives against any claimand all losses (excluding lost profits and any losses from any consequential, lossindirect, damage, injury, liability, judgment, award, penalty, fine, Tax, cost special or punitive damages (including cost of investigationas opposed to direct or actual damages)), expense (including fees and damages, claims, costs or expenses suffered or incurred by any of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such with their cooperation or in the arrangement of the Debt Financing and the provision of any information used in connection therewith, in each case, other than to the extent any of the foregoing was suffered or incurred as a result of the material breach, gross negligence, bad faith, willful misconduct or fraud by the Company, its Subsidiaries or their respective Representatives.
(e) Notwithstanding anything to the contrary in this Agreement, the condition set forth in Section 6.2(b), as it applies to the Company’s obligations under this Section 5.14, will be deemed satisfied unless the Company has materially breached its obligations under this Section 5.14 and such breach has been a primary cause of the Debt Financing not being obtained.
Appears in 1 contract
Sources: Merger Agreement (Logility Supply Chain Solutions, Inc)
Financing Cooperation. (a) From Between the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to and the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its reasonable best efforts, at Parent’s sole cost and expense, to provide, and to cause its Subsidiaries and their respective Representatives to provide, to Parent such cooperation that is reasonably requested by Parent and is customary in connection with the arrangement of debt financings similar to the Debt Financing (provided, that such requested assistance and cooperation does not unreasonably interfere with the ongoing operation of the Company’s business), including using its reasonable best efforts to cooperate (this clause (a), together with Parent clause (b) and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of (c) below, the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:“Company Cooperation Covenant”):
(i) as promptly as practicable furnish Parent with the Required Financial Information and other information regarding the Company and its Subsidiaries customarily included in marketing materials or offering documents for financings similar to the Debt Financing;
(ii) (A) make appropriate officers reasonably availablesenior management available for a reasonable number of lender and investor meetings, meetings with appropriate parties acting as arrangers or agents, sessions with rating agencies and “roadshow” presentations, conference calls, due diligence sessions (including accounting due diligence sessions), drafting sessions, presentations and sessions (all of which may be virtual if circumstances so require) with prospective financing sources, investors and ratings agencies, in each case on reasonable advance notice, for participation (B) cooperate with prospective lenders and investors in bank meetingsperforming their due diligence, due diligence sessions, meetings and (C) use commercially reasonable efforts to ensure that the Debt Financing Sources and their advisors and consultants shall have sufficient access to the Company and its Subsidiaries to complete collateral audits and inventory appraisals of the assets of the Company and its Subsidiaries;
(iii) (A) reasonably cooperate with ratings agencies the marketing efforts of Parent and road shows, reasonable assistance the Debt Financing Sources and assist Parent in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Partyobtaining ratings, in each case, in connection with respect to the Debt Financing and (B) reasonably cooperate in the preparation of materials for rating agency presentations, any offering memorandum, marketing materials, bank information memoranda (including (x) confirming the absence of material non-public information relating to the Company and its Subsidiaries in connection with customary marketing efforts of or their securities contained therein upon request by the Parent and its Affiliates for all (y) the delivery of customary authorization letters authorizing the distribution of information to prospective lenders or any portion of the Financinginvestors), lender presentations or similar document;
(iiiv) furnish assist Parent with the preparation of pro forma financial information and the Financing Parties with copies of such pro forma financial data with respect statements to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is extent reasonably requested by Parent or the Debt Financing Sources to be included in any Financing Party marketing materials or offering documents or of the type required by the Debt Commitment Letters (provided that Company and is customarily required its Subsidiaries shall not be responsible for the arrangement and syndication preparation of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare any pro forma financial statements or pro forma adjustments in accordance connection with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersDebt Financing);
(iiiv) request that and facilitate the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing auditors to (including as set forth in the Debt Letters as in effect on the date of this AgreementA) or in connection with a customary offering of securities, including the type described in the Commitment Letterprovide, consistent with their customary practice, customary auditors consents (including requesting that they provide consents of accountants for use of their reports in any materials relating to the Debt Financing) and reports and customary consents and comfort letters (including “negative assurance” comfort and change period comfort), including in ) with respect of historical to financial statements of the Company, information relating to the extent required in connection with the marketing Company and syndication its Subsidiaries and (B) attend a reasonable number of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, accounting due diligence sessions and provide customary management letters in connection with the foregoingdrafting sessions;
(ivvi) if requested in writing by a Debt Financing Source at least eight (8) Business Days prior to the Closing Date, furnish to legal counsel of Parent and to legal counsel of any such Debt Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
Source, at least four (v) furnish Parent and the Financing Parties, within five (54) Business Days following written requestprior to the Closing, such documentation information regarding the Company and other information as any Financing Party may reasonably determine its Subsidiaries that is required by U.S. regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act of 2001 and the requirements of 31 C.F.R. §1010.230 and the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada);
(vii) (A) assist with the pledging of collateral for the Debt Financing, including without limitation by permitting the PATRIOT Act. evaluation or appraisal of assets, assisting with field audits, due diligence examinations and evaluations of the current assets, inventory and cash management systems of the Company and its Subsidiaries, (B) assist with obtaining landlord waivers, consents or estoppels, (C) assist with obtaining releases of existing Liens (provided that no such documents or agreements shall be effective prior to Closing), and (D) assist with the establishment of blocked account arrangements and lock box arrangements in connection with the Debt Financing (provided that the Company shall not be required to enter into blocked account arrangements or lock box arrangements prior to the Closing);
(viii) take all corporate actions, subject to the occurrence of the Closing, reasonably requested by Parent to permit the consummation of the Debt Financing (provided, further, that nothing in this Agreement no such action shall require be required of the Company Board prior to cause the delivery of Closing);
(1ix) legal opinions or reliance letters cooperate in satisfying the conditions precedent set forth in the Debt Commitment Letters or any certificate as definitive document relating to solvency the Debt Financing to the extent the satisfaction of such condition requires the cooperation of, or any other certificate necessary for is within the Financingcontrol of, other than as provided by Section 5.05(a)(iii), the Company and its Subsidiaries; and
(2x) any financial information for any period, assist with the preparation of definitive financing documentation (including any audited guarantee, pledge and security documents, supplemental indentures, currency or interest rate hedging arrangements other definitive financing documents, or other certificates or documents as may be reasonably requested by Parent or the Debt Financing Sources (including a certificate of the chief financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act officer of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such periodsolvency matters in the form set forth as an exhibit to the Debt Commitment Letters)), other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (orand the schedules and exhibits thereto, in each case, as may be reasonably requested by Parent; provided that, for the case avoidance of a fiscal yeardoubt, 60 days) prior without limitation, the Company and its Subsidiaries shall not be required under this Section 8.07 to the date of such requestdeliver any Excluded Information.
(b) The Company hereby consents, on behalf of itself and its Subsidiaries, to the use of the Company’s and its Subsidiaries’ logos in connection with any Debt Financing; provided, that such logos are used in a manner that is not intended to or reasonably likely to harm or disparage the Company’s or its Subsidiaries’ reputation or goodwill.
(c) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): 8.07, neither the Company nor any of its Subsidiaries shall be required to take any action pursuant to Section 8.07(a) that would (i) nothing in this Agreement (including this Section 5.05A) shall require contravene any such cooperation to Applicable Law or conflict with or violate the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations organizational documents of the Company or any of its Subsidiaries or (B) result in any breach or violation of or constitute a default (or an event which, with notice or lapse of time or both, would become a default) by the Company Subsidiariesor any Subsidiary thereof under, or give to others any right of termination, amendment, acceleration or cancellation of any Material Contract to which the Company or any Subsidiary thereof is a party or by which the Company or a Subsidiary thereof or their respective properties or assets is bound or (3C) require the Company or any of its Subsidiaries to disclose information subject to any attorney-client, attorney work product or other legal privilege (provided, that the Company shall use commercially reasonable efforts to allow the disclosure of such information (or as much of it as reasonably possible) in a manner that does not result in a loss of attorney client (or other legal) privilege), (ii) cause any covenant, representation or warranty in this Agreement to be breached by the Company or any of its Subsidiaries, (iii) require the Company or any of its Subsidiaries to enter into or approve (x) pay any agreement commitment or other documentation effective financing fee prior to the Closing Date or (y) otherwise incur any other expense, indemnity liability or obligation, in each case under this sub-clause (y), except if such amounts are advanced or reimbursed as provided in Section 8.07(e) below, (iv) cause any director, officer, manager or employee or stockholder of the Company or any of its Subsidiaries to incur any personal liability, (v) require the Company, its Subsidiaries or any persons who are directors or managers of the Company or any of its Subsidiaries to pass any resolution or consent to approve or authorize the execution of the Debt Financing that is not subject to the occurrence of the Closing (provided, that no such action shall be required of the Company Board prior to the Closing) or (vi) require the Company, its Subsidiaries or any persons who are officers or managers of the Company or any of its Subsidiaries to execute or deliver any certificate, document, instrument or agreement or agree to any change or modification of any existing certificate, document, instrument or agreement or other documentation that would be is effective prior to the Closing (other than any authorization letter contemplated by Section 8.07(a) or (4any certificate, document, instrument or agreement provided in accordance with Section 8.07(h), Section 8.07(i) or Section 8.07(j); provided, that in no event shall Section 8.07(a) require the CompanyCompany or any of its Subsidiaries to cause any officer or manager of the Company or any of its Subsidiaries that is not continuing in such capacity after the Closing to execute any certificate, document, instrument or agreement). Nothing in Section 8.07(a) or otherwise shall require the Company or any of its Subsidiaries, prior to the Closing, to be an issuer or other obligor with respect to any of the Debt Financing.
(d) The Company shall, and shall cause its Subsidiaries or to, use reasonable best efforts to periodically update any of their respective boards of directors Required Financial Information provided to Parent as may be necessary so that such Required Financial Information is (or equivalent bodiesi) to approve or authorize the Financing, Compliant and (ii) no actionmeets the applicable requirements set forth in the definition of “Required Financial Information”, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) in each case throughout the pendency of the CompanyMarketing Period. For the avoidance of doubt, subject to the terms and provisions of this Section 8.07, Parent may, to most effectively access the financing markets, request the cooperation of the Company and its Subsidiaries under this Section 8.07 at any time, and from time to time and on multiple occasions, between the date of this Agreement and the Closing; provided that, for the avoidance of doubt, the Marketing Period shall not be applicable as to each attempt to access the markets. The Company agrees to (A) file all reports on Form 10-K and Form 10-Q and Form 8-K (to the extent required to include financial information pursuant to Item 9.01 thereof) and (B) use its reasonable best efforts to file all other Forms 8-K, in each case, required to be filed with the SEC pursuant to the 1934 Act prior to the Closing Date in accordance with the periods required by the 1934 Act. If, in connection with a marketing effort contemplated by the Debt Commitment Letters, Parent reasonably requests the Company to file a Current Report on Form 8-K pursuant to the 1934 Act that contains material non-public information with respect to the Company and its Subsidiaries, or any of their respective Representatives under any certificatewhich Parent reasonably determines (and which the Company does not unreasonably object) to include in a customary offering document for the Debt Financing, agreement, arrangement, document or instrument relating to then the Financing Company shall be effective until the Closingfile a Current Report on Form 8-K containing such material non-public information.
(ce) Parent shall (i) shall, promptly upon request by the Company, reimburse the Company for all of its fees documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountantsreasonable attorneys’ fees) incurred by the Company, any of the Company Subsidiaries, or any of its Subsidiaries or their respective Representatives in connection with cooperation with such Debt Financing, and any cooperation contemplated by Debt Offer, pursuant to this Section 5.05 and (ii) 8.07. In addition, Parent shall indemnify and hold harmless the Company, the Company its Subsidiaries and its their respective Representatives from and their Representatives against any claimand all losses, lossdamages, damageclaims, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost costs or expenses suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection withwith any assistance provided, such cooperation and any Debt Offer undertaken, pursuant to this Section 8.07 or otherwise in connection with the Financing arrangement, negotiation and consummation of the Debt Financing, and any information used in connection therewiththerewith (other than losses, damages or claims solely resulting from the material inaccuracy of written information provided by the Company or its Subsidiaries), in each case, other than to the extent any of the foregoing was suffered or incurred as a result of the intentional misrepresentation or willful misconduct of the Company and its Subsidiaries or any of their Representatives. The obligations in this Section 8.07(e) shall survive any termination of this Agreement.
(f) All non-public or otherwise confidential information regarding the Company or any of its Subsidiaries obtained by Parent, Merger Subsidiary or any of their respective Representatives pursuant to this Section 8.07 shall be kept confidential in accordance with the Confidentiality Agreement; provided, that Parent and its Representatives shall be permitted to disclose such confidential information to the Debt Financing Sources, rating agencies, prospective lenders and their respective Representatives either (i) pursuant to the terms of the Confidentiality Agreement and such Debt Financing Sources and their applicable Representatives shall be deemed to be “Representatives” thereunder or (ii) in accordance with customary “click through” confidentiality arrangements or other confidentiality arrangements customary for syndication procedures with respect to the Debt Financing.
(g) Parent and Merger Subsidiary acknowledge and agree that it is not a condition to the Closing or any of the other obligations under this Agreement that Parent and Merger Subsidiary obtain the Equity Financing or any Debt Financing. For the avoidance of doubt, if the Equity Financing or any Debt Financing has not been obtained, Parent and Merger Subsidiary shall, subject to the limitations set forth in Section 11.14, continue to be obligated to complete the Merger and consummate the Transactions.
(i) Parent will be permitted to commence and conduct, in accordance with the terms of the Company Indentures, one or more offers to purchase, including any “Change of Control Offer” (as such term is defined in the Company Indentures) and/or any tender offer, or any exchange offer, and to conduct a consent solicitation, if any (each, a “Debt Offer” and collectively, the “Debt Offers”), with respect to any or all of the outstanding aggregate principal amount of the Company Notes identified by Parent to the Company in writing after the date of this Agreement on terms that are acceptable to Parent; provided that any such Debt Offer is consummated using funds provided by Parent. Parent will provide the Company with the necessary offer to purchase, letter of transmittal or other related documents in connection with the Debt Offer (collectively, the “Debt Offer Documents”) a reasonable period of time in advance of commencing the applicable Debt Offer to allow the Company and its counsel to review and comment on the related Debt Offer Documents. The closing (or, if applicable, effectiveness) of the Debt Offers will be expressly conditioned on the occurrence of the Closing; provided that the consummation of a Debt Offer with respect to the Company Notes will not be a condition to Parent’s obligations to consummate the transactions contemplated by this Agreement. The Debt Offers will be conducted in compliance with the Company Indentures and Applicable Law and the Company will not be required to cooperate with respect to any Debt Offer that would reasonably be expected to be inconsistent with the terms of the Company Indentures or Applicable Law, would reasonably be expected to result in a breach under any material Contract or agreement of the Company or its Subsidiaries, would reasonably be expected to cause any covenant, representation or warranty in this Agreement to be breached by the Company or any of its Subsidiaries or would become operative before the Closing
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, Seller will, and unless otherwise agreed by Parentwill cause its Subsidiaries to, the Company and will use its reasonable best efforts to cooperate with Parent and cause its Affiliates as Representatives to, on a timely basis, provide to Buyer all cooperation reasonably requested by Parent Buyer in connection with Parent’s arrangement the arrangement, marketing, syndication and consummation of any financing deemed reasonably necessary or advisable by Buyer in connection with the Transactions (including any customary debt securities offering to be issued or incurred in lieu of all or a portion of any bridge facility, the “Financing”) (provided, however, that such requested cooperation does not unreasonably interfere with the ongoing operations of Seller or the Business, it being acknowledged that the required cooperation set forth in the clauses below shall not be deemed as unreasonable interference, and does not cause any covenant, representation or warranty to be breached or to fail to be satisfied or otherwise cause a breach of this Agreement), including:
i. making the senior officers of the Financing Business available to the debt financing sources (whichincluding the Lender Related Parties) for a reasonable number of investor and lender meetings (including “road shows”), solely for purposes of this Section 5.05presentations and sessions with rating agencies at reasonable times upon reasonable advance notice;
ii. as promptly as reasonably practicable, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
to provide all information reasonably requested by such debt financing sources (iincluding the Lender Related Parties) make appropriate officers reasonably availablein connection with such Financing, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance including to assist in the preparation of confidential any pro forma financial statements required in connection therewith and/or under SEC rules applicable to Buyer, including with respect to the estimated impact of the application of acquisition accounting in accordance with GAAP to the Seller’s historical financial statements together with related footnote disclosures and supporting information to Buyer’s independent auditors to enable such auditors to provide customary comfort on such pro forma financial statements, it being agreed that Seller will not be required to provide any information relating to (A) the proposed aggregate amount of debt and equity financing (if any), together with assumed interest rates, dividends (if any) and fees and expenses relating to the incurrence of such debt or equity financing; (B) any post-Closing or pro forma cost savings, synergies, capitalization, ownership or other pro forma adjustments desired to be incorporated into any information used in connection with the Financing; or (C) any financial information related to Buyer or any of its Subsidiaries or any adjustments that are not directly related to the acquisition of the Business by Buyer;
iii. informing Buyer, as promptly as reasonably practicable, after Seller or its Subsidiaries have knowledge of any facts that would be reasonably expected to require the restatement of any financial statements of the Business in order for such financial statements to comply with GAAP;
iv. reasonably assisting Buyer with the preparation of materials for rating agency presentations, bank information memoranda, lender presentations, offering memoranda, private placement memoranda, prospectuses, presentations prospectuses and similar marketing documents (including participation in a reasonable number of due diligence sessions, drafting session and sessions with ratings agencies);
v. executing and delivering as of (but not prior to) the Closing any guarantee, pledge and security documents, other definitive financing documents, customary closing certificates as may be required by the Financing or other certificates or documents as may be reasonably requested by Parent or any Financing PartyBuyer and otherwise reasonably facilitating the making of guarantees, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts pledging of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent collateral and the Financing Parties with copies perfection of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing applicable security interests (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required cooperation in connection with the marketing pay-off of existing indebtedness to the extent contemplated by this Agreement and syndication the release of Financing related Liens and termination of security interests (including delivering prepayment or termination notices as set forth in required by the Debt Letters as in effect on the date terms of this Agreementany existing indebtedness and delivering termination agreements or UCC-3 or equivalent financing statements or notices)); provided, that (A) or as are customarily required in an underwritten offering of securities none of the type described in the Debt Letters, documents or as may otherwise certificates shall be required pursuant to applicable Law or the rules or regulations of any national securities exchange executed and/or delivered except in connection with the Merger Closing (except for customary authorization letters, management representation letters and a “CFO certificate” with respect to due diligence items related to any offering memorandum, which shall be executed by a financial officer of Seller or any alternative financing therefor, the Business prior to Closing (in each case relating to the Business and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iiiits Subsidiaries)), (2B) any financial information for any periodthe effectiveness thereof shall be conditioned upon, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under become operative after, the Securities Act occurrence of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2C) unreasonably interfere with neither Seller nor any of its Subsidiaries will be required to execute any document or instrument, or adopt any resolution or other corporate action in respect of financing arrangement of Buyer or its Subsidiaries (other than the ongoing business or operations of the Company or the Company Subsidiaries, Transferred Entities) and (3D) require the Company no Liability shall be imposed on Seller or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company its Subsidiaries or any of their respective boards of directors (officers or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.employees;
Appears in 1 contract
Sources: Equity and Asset Purchase Agreement (Danaher Corp /De/)
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by Parent, the Company will use its reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent Solely in connection with Parent’s arrangement debt financing to be obtained under the Purchaser Credit Facilities, the Purchaser Bridge Loan Facility and any other debt financing which Purchaser may pursue to refinance any or all Indebtedness of the Financing Purchaser that matures prior to March 31, 2025, Westbrick shall, and shall cause its Affiliates to, at the sole cost and expense of Purchaser, use its and their commercially reasonable efforts to (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
(ia) make appropriate officers reasonably availablethe Financial Statements and any other financial information, with appropriate advance noticeand the Westbrick Reserves Report and any other reserve information, for participation in bank meetings, due diligence sessions, meetings with ratings agencies and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing Purchaser’s preparation of pro forma financial statements and syndication of Financing reserve information available (or permit Purchaser to make available) to Purchaser and Purchaser’s existing or potential lenders, underwriters and debt investors and their respective financial and legal advisors, including as set forth in the Debt Letters as in effect on the date of this AgreementFinancing Sources, related to any such financing, (b) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant provide customary and reasonable assistance to applicable Law or the rules or regulations of any national securities exchange Purchaser in connection with the Merger due diligence activities of Purchaser and Purchaser’s existing or any alternative financing thereforpotential lenders, underwriters and debt investors and their respective financial and legal advisors, including the Debt Financing Sources, related to such financing, (c) provide customary and reasonable assistance with respect to Purchaser’s preparation of pro forma financials, and (d) instruct Westbrick’s independent accountants and independent petroleum engineers to provide customary management letters and reasonable assistance to Purchaser in connection with the foregoing;
due diligence activities of Purchaser and Purchaser’s existing or potential lenders, underwriters and debt investors and their respective financial and legal advisors, including the Debt Financing Sources, related to such financing. Notwithstanding anything to the contrary in this Section 6.2, neither Westbrick, nor its Affiliates or Representatives shall be required to take any action pursuant to this Section 6.2 if any such action would reasonably be expected to (i) unreasonably disrupt or interfere with the Business; or (ii) require Westbrick or any of its Affiliates to pay any fees or expenses or reimburse any expenses prior to the Closing that are not promptly reimbursed by Purchaser; or (iii) otherwise require any such Persons to incur any Liabilities or give any indemnities, (iv) furnish involve the entry by Westbrick or its Affiliates into any agreement or other binding commitment with respect to legal counsel of Parent and any arrangement pursuant to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
financing which is not conditional on Closing occurring, (v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters Westbrick or any certificate as of its Affiliates or Representatives to solvency prepare, compile or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited certify pro forma financial information or projections, (vi) require Westbrick or any of its Affiliates or Representatives to prepare financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, statements other than as provided by Section 5.05(a)(ii) the Financial Statements, or (3vii) any financial information interfere with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case normal operations of a fiscal year, 60 days) prior to the date of such requestWestbrick.
(b) Notwithstanding anything to the contrary contained in this Agreement (including to the contrary, no failure by ▇▇▇▇▇▇▇▇▇ to comply with the terms set forth in this Section 5.05): (i) nothing 6.2 shall be considered for purposes of determining whether the conditions to Closing set forth in this Agreement (including this Section 5.05) shall require any such cooperation to Article 7 have been satisfied, it being agreed that the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any Purchaser’s obligation to pay any commitment or other fees or reimburse any expenses) of consummate the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the ClosingTransaction is not conditional on securing financing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, each of the Seller and the Company will, and unless otherwise agreed by Parent, the Company will use its their reasonable best efforts to cooperate with Parent cause their Representatives, each of the Acquired Companies and its Affiliates as their respective Representatives to provide all cooperation reasonably requested by Parent Purchaser that is customary and reasonable in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by arranging and obtaining the Debt Letters). Such cooperation will include using reasonable best efforts toFinancing, including:
(i) make appropriate officers reasonably availablecooperating with the marketing efforts of Purchaser and the Debt Financing Sources, including participating (and causing senior management with appropriate advance noticeseniority and expertise, for participation of the Company and its Subsidiaries to participate) in a reasonable and limited number of meetings, presentations, bank meetingsmeetings and sessions with rating agencies, due diligence sessions, meetings drafting sessions, in each case, at mutually agreeable times in mutually agreeable locations (in each case, including via video conference) upon reasonable advance notice;
(ii) furnish Purchaser with ratings agencies the Required Financial Information and road showsupdate the Required Financial Information to the extent necessary to ensure that it remains Compliant;
(iii) assisting Purchaser, reasonable to the extent reasonably necessary, with the timely preparation of customary rating agency presentations and bank information memoranda or memoranda (including a version that does not include material non-public information regarding the Company or its Subsidiaries) and other marketing materials (including customary authorization letters), in each case, required in connection with the Debt Financing solely with respect to the Acquired Companies, it being agreed that the Company will not be required to provide any information or assistance relating to (A) the proposed aggregate amount of Debt Financing and Equity Financing, together with assumed interest rates, dividends (if any) and fees and expenses relating to the incurrence of such Debt Financing or Equity Financing, (B) any post-Closing or pro forma cost savings, synergies, capitalization, ownership or other pro forma adjustments desired to be incorporated into any information used in connection with the Debt Financing, or (C) any financial information related to Purchaser or any of its Affiliates;
(iv) assisting Purchaser, to the extent reasonably necessary, in connection with the preparation of confidential information memorandathe definitive financing documentation in respect of the Debt Financing, private placement memorandaincluding a certificate of the chief financial officer of the Company with respect to solvency matters in the form attached to the Debt Commitment Letters and disclosure schedules for any credit agreement, prospectusespledge, presentations security and similar other financing documents as may be reasonably requested by Parent Purchaser or any the Debt Financing PartySources, and otherwise reasonably facilitating the pledging of collateral and the granting of security interests in respect of the Debt Financing, in each case, solely in respect of the Acquired Companies and solely as required to be delivered at Closing pursuant to the terms of the Debt Commitment Letters, it being understood that such documents will not take effect until the Closing;
(v) no less than four (4) Business Days prior to the Closing Date, furnishing Purchaser with respect to all documentation and other information relating to regarding the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under pursuant to applicable “know your customer” and anti-money laundering rules and regulationsregulations (including the USA PATRIOT Act and, including without limitation to the PATRIOT Act. providedextent required thereby, further31 C.F.R § 1010.230) to the extent reasonably requested by Purchaser in writing at least ten (10) Business Days prior to Closing; and
(vi) taking all corporate actions and, that nothing in this Agreement shall require limited liability company or other actions, each to be effective upon the Company Closing and subject to cause the occurrence of the Closing, reasonably requested by Purchaser to permit the consummation of the Debt Financing including, facilitating the execution and delivery at the Closing of (1) legal opinions or reliance letters or any certificate as definitive documents reasonably related to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared Debt Financing in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared terms contemplated by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestDebt Commitment Letters.
(b) Notwithstanding anything to the contrary contained Nothing in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) 5.13 will require the Company or any of its Affiliates to (i) waive or amend any terms of this Agreement or agree to pay any fees or reimburse any expenses prior to the Company Subsidiaries to Closing for which it has not received prior reimbursement or otherwise take any Non-Required Action; (ii) enter into any definitive agreements or approve give any agreement or other documentation indemnities in connection with the Financing that are effective prior to the Closing Closing; (iii) take any action that could reasonably be expected to result in a contravention of, violation or agree breach of, or default under, the Agreement, any Constituent Document, any material Contract to which any change or modification of Seller Related Party (including any existing agreement or other documentation Acquired Company and any JV Entity) is a party, any applicable Law, (iv) take any action that would reasonably be effective prior expected to require the Closing Seller or any of its Affiliates to make a public disclosure as a result of the securities of the Seller or any of its Affiliates being publicly listed; (v) provide access to or disclose information which would result in waiving any attorney-client privilege, work-product or similar privilege, or (4vi) contravene any position taken in any Tax Return or financial statements, or (vii) require the Company, creation or preparation of any information that would cause material disruption to the ordinary course business operations of the Company Subsidiaries Acquired Companies or require the Acquired Companies to incur significant expense that is not reimbursed by Purchaser; provided, that for the avoidance of doubt, the creation or preparation of any update to the Required Financial Information or any similar financial information shall not be deemed to cause a material disruption to the ordinary course business operations of their respective boards of directors (or equivalent bodies) to approve or authorize the FinancingAcquired Companies. In addition, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, Acquired Companies or any of their respective Representatives under pursuant to any certificate, agreement, arrangement, document or instrument relating to the Debt Financing shall will be effective until the Closing (other than customary authorization letters), and none of the Acquired Companies or their respective Subsidiaries will be required to be an obligor pursuant to any certificate, agreement or instrument in connection with the Debt Financing that is not contingent on the occurrence of the Closing or that must be effective prior to the Closing Date. Nothing in this Section 5.13 will require Seller or any of its Affiliates (including nay Acquired Company and any JV Entity) or any of their respective Representatives to (1) pass resolutions or consents to approve or authorize the Debt Financing or the execution and delivery of the definitive documents that would be effective prior to the Closing Date, (2) take any action that could reasonably be expected to result in any Representative of Seller or its Affiliates incurring personal liability (as opposed to liability in his or her capacity as an officer of such person after the Closing) with respect to any matters related to the Debt Financing, (3) incur any Liability (or cause its Representatives to incur any Liability) under the Debt Financing prior to the Closing Date or (4) cause the delivery of any legal opinions or any certificates, including as to solvency of the Acquired Companies; provided, that only officers or employees continuing in such roles after Closing, and solely with respect to agreements contingent upon the Closing and that would not be effective prior to the Closing Date shall be required to execute or enter into any of the foregoing.
(c) Parent Notwithstanding anything to the contrary contained in this Agreement, the Seller and the Company shall be deemed to have complied with this Section 5.13 for all purposes of this Agreement (iincluding Article V, Article VIII and Article X) promptly upon request by unless (w) the Seller or the Company have materially breached their respective obligations under this Section 5.13, (x) the Purchaser has notified the Seller and the Company of such breach in writing in good faith, detailing in good faith reasonable steps that the Company could take to comply with this Section 5.13 in order to cure such breach, (y) none of Seller or any Acquired Company has taken such steps or otherwise cured such breach and (z) the Debt Financing has not been obtained. The Parties hereto acknowledge that this Section 5.13 represents the sole obligation of the Company, reimburse its Subsidiaries and Affiliates and their respective officers, directors, employees and other Representatives with respect to the cooperation in connection with the Financing and no other provision of the Agreement (including exhibits and schedules) shall be deemed to expand or modify such obligations.
(d) The Company hereby consents to the use of its and its Subsidiaries’ logos in a form and manner reasonable acceptable to the Company in connection with the Debt Financing so long as such logos are used solely in a manner that is not intended or likely to, and will not, harm or disparage Seller or its Affiliates (including the Acquired Companies) or the reputation or goodwill of Seller and its Affiliates (including the Acquired Companies).
(e) Promptly upon written request by Seller at any time, Purchaser will reimburse Seller for all of its fees any reasonable and documented out-of-pocket costs and expenses (including fees reasonable and expenses of counsel and accountantsdocumented out-of-pocket attorneys’ fees) incurred by the Company, Seller and its Affiliates or any of the Company Subsidiaries, any of its or their Representatives in connection with any the cooperation contemplated by of Seller and its Affiliates or their respective Representatives with this Section 5.05 and 5.13.
(iif) indemnify and hold harmless the Company, the Company Subsidiaries Seller and its Affiliates and their respective Representatives shall be indemnified and held harmless by Purchaser from and against any claimand all Liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgment, award, penalty, fine, Tax, cost expenses (including cost of investigationreasonable and documented out-of-pocket attorneys’ fees), expense interest, awards, judgments, penalties and amounts paid in settlement suffered or incurred by them in connection with their cooperation (including fees and expenses the preparation following the Effective Date of counsel and accountantsthe Required Financial Information) in arranging the Financing pursuant to this Agreement or settlement payment incurred as a result of, or the provision of information utilized in connection withtherewith (other than information provided by the Acquired Companies with respect to itself or its Subsidiaries), except to the extent such cooperation losses resulted from the gross negligence, bad faith or willful misconduct of such Person as determined in a final, non-appealable judgment of a court of competent jurisdiction. Purchaser’s obligations pursuant to Section 5.13(e) and this Section 5.13(f) are referred to collectively as the Financing and any information used in connection therewith“Reimbursement Obligations”.
Appears in 1 contract
Financing Cooperation.
(a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.055.06, and unless otherwise agreed by Parent, the Company will, and will cause each of its Subsidiaries to, and will use its reasonable efforts to cause its and its Subsidiaries’ Representatives to, use its or their reasonable best efforts to cooperate with Parent and its Affiliates as reasonably requested by Parent in connection with Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.055.06 and the use of the term Financing Party in this Section 5.06, shall include any alternative equity or debt capital markets financings contemplated by financings, all or a portion of which will be used to fund the Debt LettersCash Consideration). Such cooperation will include using reasonable best efforts to:
(i) make cooperate with the marketing efforts of Parent for all or any part of the Financing, including making appropriate officers reasonably available, with appropriate advance notice, for participation in bank lender or investor meetings, due diligence sessions, meetings with ratings agencies and road shows, and reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, lender and investor presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary such marketing efforts of Parent and its Affiliates for all or any portion of the Financingefforts;
(ii) furnish Parent and the Financing Parties with copies of such financial data the Required Financial Information and any other information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily (A) required for the marketing, arrangement and syndication of financings similar to the Financing committed pursuant or (B) used in the preparation of customary offering or information documents or rating agency, lender presentations or road shows relating to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lendersFinancing;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, ) to the extent required in connection with the marketing and syndication of the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in contemplated by the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;Financing;
(iv) furnish obtain or provide certificates and other customary documents (other than legal opinions) relating to legal counsel of Parent and to legal counsel of any the Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and▇▇▇▇▇▇;
(v) furnish Parent and cooperate in satisfying the conditions precedent set forth in any definitive documentation relating to the Financing Partiesto the extent the satisfaction of such condition reasonably requires the cooperation of, or is within five the control of, the Company;
(5vi) Business Days following written request, such furnish all documentation and other information as required by a Governmental Entity or any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT ActACT (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), to the extent reasonably requested by Purchaser at least 10 Business Days prior to the anticipated Closing Date;
(vii) assist Parent in obtaining any credit ratings from rating agencies contemplated by the Debt Letters; and
(viii) use reasonable best efforts to obtain such consents, waivers, estoppels, approvals, authorizations and instruments which may be requested by Parent in connection with the Financing; provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided allowed by Section 5.05(a)(iii5.06(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in or any case financial information in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) period or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 forty-five (45) days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.055.06): (i) nothing in this Agreement (including this Section 5.055.06) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company its Subsidiaries, or (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing. The Company hereby consents to the use of its and its Subsidiaries’ logos in connection with the Financing in a form and manner mutually agreed with the Company; provided, however, that such logos are used solely in a manner that is not intended, or reasonably likely, to harm or disparage the Company or its Subsidiaries or any of their respective subsidiaries or the reputation or goodwill of any of the foregoing.
(c) Parent shall (i) promptly upon request by the Company, reimburse the Company for all of its reasonable and documented out-of-pocket fees and expenses (including reasonable fees and expenses of counsel and accountants) incurred by the Company, any of the Company Subsidiaries, any of its or their Representatives in connection with any cooperation contemplated by this Section 5.05 5.06 and (ii) indemnify and hold harmless the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.therewith other than those claims, losses, damages, injuries, liabilities, judgments, awards, penalties, fines, costs, expenses and settlement payment arising out of or resulting from the gross negligence, fraud or willful misconduct of the Company, any of the Company Subsidiaries or any of their respective Representatives as finally determined by a court of competent jurisdiction.
Appears in 1 contract
Sources: Merger Agreement
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentClosing, the Company will shall use its commercially reasonable best efforts to, and shall use its commercially reasonable efforts to cooperate with Parent cause its Subsidiaries and its Affiliates Representatives to, provide such reasonable cooperation as is customary and reasonably requested by Parent in connection with Parent’s arrangement the obtaining and arranging of the Debt Financing (which, solely for purposes provided that such requested cooperation does not unreasonably interfere with the ongoing operations of this Section 5.05, shall include the Company or any alternative equity or debt capital markets financings contemplated by the Debt Lettersof its Subsidiaries). Such cooperation will include using Without limiting the generality of the foregoing, such commercially reasonable best efforts toin any event shall include:
(i) make appropriate officers reasonably availableupon reasonable notice, directing employees of the Company and its Subsidiaries with appropriate advance noticeseniority and expertise to be available at reasonable times and participating in a reasonable number of meetings (including one-on-one meetings or conference calls with the Debt Financing Sources), for participation in bank meetingsdrafting sessions and presentations; provided, due diligence sessions, meetings that any such meeting or communication may be conducted virtually by videoconference or other media;
(ii) providing reasonable and customary assistance to Parent with ratings agencies and road shows, reasonable assistance in the Parent’s preparation of confidential information customary documents, memoranda, private placement memorandadiligence, prospectusesmaterials, presentations and similar customary documents reasonably necessary in connection with the Debt Financing and providing reasonably timely and customary access to diligence materials, appropriate personnel and properties during normal business hours and on reasonable advance notice to allow the Debt Financing Sources and their representatives to complete all reasonable due diligence; in each case in this clause: (A) subject to customary confidentiality provisions and disclaimers, including the Confidentiality Agreement; (B) as may be reasonably requested in writing (e-mail being sufficient) by Parent or any Financing Party, in each case, Parent; and (C) limited to information to be contained therein with respect to the Company and its Subsidiaries;
(iii) to the extent requested by Debt Financing Sources, furnishing Parent, reasonably promptly upon written request, with such historical financial, statistical and other pertinent business information relating to the Company and its Subsidiaries in connection as may be reasonably requested by Parent (which notice shall state with customary marketing efforts reasonable specificity the information requested), as is customarily required with financings of Parent the type similar to the Debt Financing and reasonably available and prepared by or for the Company and its Affiliates Subsidiaries in the ordinary course of business; provided, that, the Company shall not be responsible in any manner for all any pro forma financial information or any portion financial statements;
(iv) facilitating, effective no earlier than the Effective Time, simultaneously with, and conditioned upon, and subject to the occurrence of, the Closing, the execution and delivery of definitive financing, pledge, security and guarantee documents relating to the Debt Financing;
(iiv) furnish Parent providing documentation and the Financing Parties with copies of such financial data other information with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish Parent and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the PATRIOT Act. Act in connection with the Debt Financing, in each case as reasonably requested by Parent in writing;
(A) cooperating in connection with the repayment or defeasance of any existing indebtedness of the Company and its Subsidiaries as of the Effective Time and the release of related Liens, including delivering such payoff, defeasance, termination or similar notices under any existing financing documents of the Company and its Subsidiaries as are reasonably requested by Parent (provided, further, that nothing in this Agreement shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of clause (B), the Company shall not be required to deliver any notices, commitments, terminations or other documents that are not conditioned on, and subject to the occurrence of, the Closing);
(vii) to the extent requested by P▇▇▇▇▇ in writing, obtaining from the Company’s independent auditors customary “comfort letters” and customary consents to the use of accountants’ audit reports in connection with the Debt Financing;
(viii) providing reasonable and customary assistance with respect to Parent attempting to obtain any third-party consents associated with the Debt Financing which shall not be required to be effective until as of, and subject to the occurrence of, the Closing;
(ix) reasonably cooperating with the marketing efforts of Parent and its financing sources for any Debt Financing, including providing reasonable consent to the use of the Company’s or its Subsidiaries’ logos in connection with the Debt Financing; provided, that such logos are used solely in a fiscal yearmanner that is not intended to, 60 daysnor reasonably likely to, harm or disparage the Company’s or its Subsidiaries’ reputation or goodwill;
(x) to the extent reasonably requested in writing by Parent and necessary in connection with the Debt Financing, mailing and e-mailing requests for estoppels and certificates from non-residential tenants, lenders, managers, franchisors, ground lessors, ground lessees, and counterparties to reciprocal easement agreements, declarations and similar agreements in form and substance reasonably satisfactory to such Debt Financing Source;
(xi) as may be reasonably requested by Parent, no earlier than immediately prior to the date Effective Time, and provided such actions would not adversely affect the Tax status of such requestthe Company or any of its Subsidiaries or cause the Company or any of its Subsidiaries to be subject to additional Taxes, transferring or otherwise restructuring its ownership of existing Subsidiaries of the Company, properties or other assets, in each case, pursuant to documentation reasonably satisfactory to Parent and the Company; and
(xii) to the extent reasonably requested in writing (e-mail being sufficient) by P▇▇▇▇▇ and necessary in connection with the Debt Financing, provide customary and reasonable assistance to allow Parent, the Debt Financing Sources, and each of their respective Representatives to conduct customary appraisal, survey field work and, as permitted by Section 5.2(c), environmental and engineering inspections of each Company Real Property, tractors, trailers, and other assets.
(b) Notwithstanding anything the foregoing, the Company shall not be required to the contrary contained in this Agreement (including this provide, or cause its Subsidiaries or Representatives to provide, cooperation under Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation 5.14 to the extent that it would it: (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2i) unreasonably interfere interferes with the ongoing business or operations of the Company or the Company its Subsidiaries, ; (3ii) require requires the Company or any of the Company its Subsidiaries to enter into or approve incur any agreement or other documentation effective liability (including, without limitation, any commitment fees and expense reimbursement) in connection with the Debt Financing prior to the Closing (except those fees, expenses and liabilities that are reimbursable by Parent); or (iii) requires the Company or its Subsidiaries or their respective Representatives to execute, deliver or enter into, or perform any agreement, document, certificate or instrument (or agree to any change or modification of any existing certificate, document, instrument or agreement or other documentation that would be is effective prior to the Effective Time) with respect to the Debt Financing (other than with respect to customary authorization letters with respect to the Debt Financing) or adopt resolutions approving the agreements, documents and instruments pursuant to which the Debt Financing is obtained, in each case which is not contingent upon the Closing or would be effective at or prior to the Effective Time (4) require the Company, it being understood that in no event shall any officer or director of the Company or its Subsidiaries or be required to take any of their respective boards of directors such action described in this clause (or equivalent bodiesiii) to approve or authorize unless such Person shall be continuing in such role following the FinancingEffective Time, and (ii) no action, liability or obligation (including any obligation shall only be required to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closingdo so in such continuing capacity).
(c) Parent shall (i) reimburse or cause to be reimbursed the Company and its Subsidiaries promptly upon request by the Company, reimburse the Company written demand for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees reasonable and expenses documented attorneys’ and out-of-pocket accountants’ fees) (other than in respect of counsel the preparation of customary historical and accountantsordinary course financial statements already prepared by the Company or its Subsidiaries in the ordinary course of their business and/or with respect to information or materials already in the possession or control of the Company or its Subsidiaries) incurred by the Company, any of the Company Subsidiaries, any of or its or Subsidiaries and their Representatives in connection with any the cooperation contemplated by under this Section 5.05 5.14 and any action taken by them at the request of Parent pursuant to this Section 5.14 (ii) including the dissolution and termination of any subsidiaries formed and documentation entered into pursuant to this Section 5.14), and shall indemnify and hold harmless the Company, the Company Subsidiaries and its Subsidiaries, and their Representatives and each of the Company’s, its Subsidiaries’ and their Representatives’ respective present and former directors, officers, employees and agents (collectively, the “Financing Indemnified Parties” ) from and against any claimand all documented out-of-pocket costs, lossexpenses, damagelosses, injurydamages, liabilityclaims, judgmentjudgments, awardfines, penaltypenalties, fineinterest, Taxsettlements, cost (including cost awards and liabilities suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or with the arrangement and consummation of the Debt Financing and any information used in connection therewith, in each case, except to the extent such costs, expenses, losses, damages, claims, judgments, fines, penalties, interest, settlements, awards and liabilities are suffered or incurred as a result of bad faith, gross negligence or willful misconduct by any Financing Indemnified Party as determined by a court of competent jurisdiction in a final judgment not subject to further appeal. The provisions of this Section 5.14 are intended to be for the benefit of, and shall be enforceable by, each of the foregoing Financing Indemnified Parties. This Section 5.14 shall survive the termination of this Agreement (and in the event the Merger and the other transactions contemplated hereby are not consummated, notwithstanding anything to the contrary in this Agreement, Parent shall promptly reimburse the Company for any reasonable and documented out-of-pocket costs incurred by the Company and its Subsidiaries in connection with the cooperation under this Section 5.14, reimbursable under this Section 5.14 and not previously reimbursed and any indemnification obligations under this Section 5.14, in each case, without regard to any other limitations on liability set forth in this Agreement).
(d) If, notwithstanding the use of reasonable best efforts by Parent to satisfy its obligations under this Section 5.14, the Debt Financing or the Debt Financing Commitment Letter (or any definitive financing agreement relating thereto) expire or are terminated or become unavailable prior to the Closing, in whole or in part, for any reason, and such portion is required to satisfy the Financing Purposes, Parent shall (i) promptly notify the Company of such expiration, termination, or unavailability and the reasons therefor and (ii) subject to the third to last sentence of this Section 5.14(d), use its reasonable best efforts promptly to arrange for a firm commitment for alternative financing (“Replacement Debt Financing” ) (which, shall not, without the prior consent of the Company, (A) impose any new or additional condition or otherwise expand any condition to the receipt of the Debt Financing that makes the funding of the Debt Financing in an amount required to satisfy the Financing Purposes less likely to occur or (B) otherwise be on terms and conditions that are materially less favorable to Parent from a conditionality or enforceability perspective than the terms and conditions of the Debt Financing Commitment Letter) to replace the financing contemplated by such expired, terminated, or unavailable commitment or arrangement or any portion thereof in an amount sufficient, when added to the portion of the Debt Financing that remains available, to satisfy the Financing Purposes. Notwithstanding anything to the contrary contained in this Agreement, nothing contained in this Section 5.14 shall require, and in no event shall the reasonable best efforts of Parent be deemed or construed to require, Parent to pay any fees or any interest rates applicable to the Debt Financing in excess of those contemplated by the Debt Financing Commitment Letter (including the market flex provisions) or agree to any other term materially less favorable to Parent or the Company than such corresponding term contained in or contemplated by the Debt Financing Commitment Letter (in either case, whether to secure waiver of any conditions contained therein or otherwise). Copies of any new financing commitment letter, including any term sheet, annex and any agreements related thereto entered into in connection with any Replacement Debt Financing (including any related fee letter (with fee amount redacted to the extent required by the applicable financing source)) shall be promptly provided to the Company and in any event within forty-eight (48) hours of receipt by Parent of a final executed copy of such new financing commitment letter. In such event, (1) the term “Debt Financing” will be deemed to include any Replacement Debt Financing and (2) the term “Debt Financing Commitment Letter” will be deemed to include any commitment letters with respect to such Replacement Debt Financing.
Appears in 1 contract
Sources: Merger Agreement (Patriot Transportation Holding, Inc.)
Financing Cooperation. (a) From The Company shall, and shall cause the date hereof until Company Subsidiaries to, and shall cause its and their respective officers, employees and advisors to, reasonably cooperate in connection with the Closing (arrangement of the Debt Financing; provided that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company or the earlier termination of this Agreement pursuant to Section 8.01), subject to Company Subsidiaries. Such cooperation by the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentCompany, the Company will use its reasonable best efforts to cooperate with Parent Subsidiaries and its Affiliates as reasonably requested by Parent in connection with and their respective officers, employees and advisors shall include, at the reasonable request of Parent’s arrangement of the Financing (which, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using their reasonable best efforts to:
(i) make (A) at reasonable times, upon reasonable advanced notice and at reasonable locations, cause appropriate officers reasonably available, with appropriate advance notice, for participation members of the management team of the Company and the Company Subsidiaries to participate in bank a reasonable number of meetings, due diligence sessions, meetings “roadshow” presentations and similar presentations to and with ratings prospective lenders, investors and rating agencies and road shows(B) cooperate with prospective lenders and investors in performing their due diligence;
(ii) (A) furnish Parent and Buyer and the Debt Financing Sources, reasonable assistance as applicable, with the Required Financial Information and (B) periodically update any Required Financial Information provided to Parent and Buyer as may be necessary so such Required Financial Information is Compliant; provided, that the Company’s public filings with the SEC under the 1934 Act of any such financial statements shall satisfy the requirements of this clause (ii) to the extent containing the information described therein;
(iii) provide other financial and other pertinent information related to the Company and the Company Subsidiaries reasonably necessary to assist Parent or any of its Affiliates in the preparation of one or more confidential information memoranda, private placement offering memoranda, registration statements, prospectuses, presentations lender and investor presentations, rating agency presentations, other similar documents as may be and other marketing and syndication materials reasonably requested by Parent or any Financing Party, in each case, with respect to of its Affiliates (including confirming the absence of material non-public information relating to the Company and its the Company Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financingtheir securities contained therein);
(iiiv) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that cause the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letterto provide, consistent with customary practice or the requirements of Regulation S-X: (A) customary auditor consents (including consents of accountants for use of their reports in any materials (including any registration statement) relating to the Debt Financing), (B) customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort and change period comfort)) with respect to financial information relating to the Company and the Company Subsidiaries as reasonably requested by Parent or the Debt Financing Sources and as customary for financings similar to the Debt Financing, including and (C) participation in respect a reasonable number of historical financial statements accounting due diligence sessions and drafting sessions at times and at locations reasonably acceptable to the Company and its independent accounting firm;
(v) otherwise reasonably cooperate with the Debt Financing sources’ documentary due diligence and provide information in support of the Companycompletion of customary definitive financing documentation, in each case to the extent, and solely to the extent, such materials relate to information concerning the Company and the Company Subsidiaries, to the extent customarily and reasonably required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise to be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative delivered under such definitive financing therefor, and provide customary management letters in connection with the foregoingdocumentation;
(ivvi) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
provide, at least three (v) furnish Parent and the Financing Parties, within five (53) Business Days following written requestprior to the Acceptance Time, such all documentation and other information about the Company and the Company Subsidiaries as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act, to the extent reasonably requested by any Debt Financing source at least seven (7) Business Days prior to the anticipated Acceptance Time;
(vii) cooperate in satisfying the conditions precedent to the Debt Financing to the extent the satisfaction of such condition requires the cooperation of, or is within the control of, the Company and the Company Subsidiaries;
(viii) deliver to Parent the audited financial statements of the Company and the Company Subsidiaries for the fiscal year ended December 31, 2023 and unaudited financial statements relating to the Company and the Company Subsidiaries for any quarterly interim period or periods thereafter (other than the fourth fiscal quarter) promptly following the completion thereof; and
(ix) deliver, at least one (1) Business Day prior to the Acceptance Time, payoff letters with respect to any outstanding indebtedness that is not permitted hereunder to remain in place following the Acceptance Time of the Company and the Company Subsidiaries and provide for the release of related Liens and termination of security interests in respect of such indebtedness (including delivering prepayment or termination notices as required by the terms of any existing indebtedness and delivering payoff letters contemplated by this Agreement and UCC-3 or equivalent financing statements or termination notices). providedNotwithstanding the foregoing, further, that nothing in this Agreement clause (a) above shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency Company Subsidiary or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information of their respective Affiliates or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect Representatives to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company to pay any commitment or other fees, reimburse any expenses fees or otherwise payment to obtain consent or incur any liabilities liability with respect to or cause or permit any Lien to be placed on any of their respective assets in connection with the Debt Financing prior to the Closing Date, (ii) give any indemnities prior in connection with any Debt Financing or execute any agreement, certificate, document, or instrument pursuant to Section 7.07(a) with respect to any Debt Financing that is not contingent on the Closing, (2iii) take any action that, in the good faith determination of the Company, would unreasonably interfere with the ongoing conduct of the business of the Company and the Company Subsidiaries or operations create a risk of damage or destruction to any property or assets of the Company or the any Company SubsidiariesSubsidiary, (3iv) require approach any third parties prior to the Closing to discuss agreements limiting the rights of such third parties with respect to the Debt Financing or to consent to the pre-filing of UCC-1s or the grant of Liens on assets of the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation Subsidiary that would be effective prior to the Closing Date, (v) waive or amend any terms of this Agreement, (vi) prepare or deliver any projections or pro forma financial information or deliver any financial statements that is not expressly required under this Agreement or that is not readily available, prepared or able to be generated, in the ordinary course of business of the Company at the time requested by Parent, (vii) except as expressly provided in clause (iv) above, deliver any legal opinions or accountants’ cold comfort letters or reliance letters or (4viii) require provide cooperation that would in the good faith judgment of the Company: (A) conflict with or result in a violation of any material contract, organizational document or any Law, (B) result in the loss of attorney-client privilege or other similar legal privilege or (C) cause any of Company’s representations, warranties, covenants or other obligations in this Agreement to be breached or any condition to the obligations of Parent and Buyer to fail to be satisfied. The Company consents to the reasonable use of its and any of the Company Subsidiaries’ logos in connection with the Debt Financing in a manner usual and customary for financings of a type similar to the Debt Financing; provided that such logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company or the Company Subsidiaries or any of their respective boards of directors (the reputation or equivalent bodies) to approve or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) goodwill of the Company, its Company or the Company Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(cb) Parent shall (i) ▇▇▇▇▇▇ and Buyer shall, promptly upon request by the Company, reimburse the Company for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountantsattorneys’ fees) actually incurred by the Company, any of the Company Subsidiaries, any of Subsidiaries and its or and their respective Representatives in connection with any cooperation contemplated by their respective obligations pursuant to this Section 5.05 and (ii) 7.07. Parent shall indemnify and hold harmless the Company, the Company Subsidiaries and its their respective Representatives, from and their Representatives against any claimand all liabilities, losslosses, damagedamages, injuryclaims, liabilitycosts, judgmentexpenses, awardinterest, penaltyawards, fine, Tax, cost (including cost judgments and penalties suffered or incurred by any of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or them in connection with, such cooperation or the with any Debt Financing and any information used utilized in connection therewith, in each case prior to the Closing, except for any such liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties arising out of or with respect to (i) any willful misconduct, gross negligence, bad faith or fraud by any of the Company or the Company Subsidiaries or its or their respective Representatives or (ii) any material misstatement or omission in information provided hereunder by any of the foregoing persons.
(c) Each of Parent and Buyer shall use reasonable best efforts to take, or cause to be taken, all actions and do, or cause to be done, as promptly as possible, all things necessary, proper or advisable to arrange the Debt Financing on the terms and conditions described in the Debt Commitment Letter, including using reasonable best efforts to, as promptly as possible, (a) satisfy on a timely basis all conditions that are within Parent’s and Buyer’s control applicable to Parent and Buyer obtaining the Debt Financing set forth therein, (b) negotiate and enter into definitive agreements with respect thereto on the terms and conditions contemplated by the Debt Commitment Letter (including any related flex provisions) or on other terms in the aggregate not materially less favorable to Parent and Buyer, (c) timely prepare the necessary prospectuses, offering circulars, private placement memoranda, or other offering documents or marketing materials with respect to the Debt Financing, and (d) in the event that all conditions in the Debt Commitment Letter have been satisfied, direct the applicable Debt Financing Sources to consummate the Debt Financing at or prior to the Closing to the extent required to consummate the Transaction. Parent and Buyer shall give Company prompt notice of (i) any breach of obligations under the Debt Commitment Letter by any party to the Debt Commitment Letter of which Parent or Buyer becomes aware, (ii) if Parent or Buyer becomes aware that the Debt Financing contemplated by the Debt Commitment Letter may not be available to consummate the Transaction and (iii) receipt by Parent of written notice or other written communication of any termination of the Debt Commitment Letter. To the extent reasonably requested by the Company from time to time, Parent and Buyer shall keep the Company informed on a reasonably current basis in reasonable detail of the status of Parent’s efforts to arrange the Debt Financing or Alternative Financing and provide to Company executed copies of the material definitive documents related to the Debt Financing or Alternative Financing. If any portion of the Debt Financing required to consummate the Transaction becomes unavailable on the terms and conditions contemplated in the Debt Commitment Letter, Parent shall use reasonable best efforts to obtain alternative financing, including from alternative sources, on Commercially Reasonable Terms (“Alternative Financing”) in an amount sufficient to consummate the Transaction as promptly as practicable following the occurrence of such event and the provisions of this Section 7.07 shall be applicable to the Alternative Financing. Parent shall (A) comply in all material respects with the Debt Commitment Letter and each definitive agreement with respect thereto
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05The Company shall, and unless otherwise agreed by Parent, the Company will shall cause its Subsidiaries to and shall use its commercially reasonable best efforts to cooperate with cause its and their respective Representatives to, on a timely basis, upon the reasonable request of Parent and or any of its Affiliates as reasonably requested by Parent Affiliates, provide cooperation in connection with Parent’s arrangement any debt, equity, equity-linked or other financing of Parent or any of its Affiliates in connection with the Financing Merger (whichthe “Financing”) and the other transactions contemplated hereby, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by including the Debt Letters). Such cooperation will include using reasonable best efforts tofollowing:
(i) make appropriate officers reasonably availablefurnishing, or causing to be furnished, to Parent, any Affiliates of Parent and the Financing Parties and their respective agents financial information with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies respect to the Company and road shows, reasonable assistance in the preparation of confidential information memoranda, private placement memoranda, prospectuses, presentations and similar documents its Subsidiaries as may be reasonably requested by Parent, any of Parent’s Affiliates or the Financing Parties in connection with such Financing (other than any pro forma financial statements, which shall be the responsibility of Parent);
(ii) using commercially reasonable efforts to cause the Company’s and its Subsidiaries’ independent accountants to participate in a manner consistent with their customary practice in drafting sessions and accounting due diligence sessions in connection with such Financing;
(iii) using commercially reasonable efforts to assist Parent or any Financing Party, of its Affiliates in each case, with respect to (including by providing information relating to the Company and its Subsidiaries required in connection with) its preparation of rating agency presentations, road show materials, bank information memoranda, projections, prospectuses, bank syndication materials, credit agreements, offering memoranda, private placement memoranda, definitive financing documents (as well as customary certificates) and similar or related documents to be prepared by Parent or any of its Affiliates in connection with such Financing;
(iv) using commercially reasonable efforts to cooperate with customary marketing efforts of Parent and or any of its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Letters, including such information necessary using commercially reasonable efforts to allow Parent cause its management team, with appropriate seniority and expertise, to prepare pro forma financial statements assist in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, preparation for and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting a reasonable number of meetings, presentations, road shows, due diligence sessions and (including accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfortsessions), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefordrafting sessions, and provide customary management letters sessions with rating agencies, in connection with the foregoingeach case, upon reasonable notice and at mutually agreeable dates and times and using reasonable efforts to ensure that any syndication effort benefits from any existing lending and investment banking relationships;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(v) furnish delivering to Parent any materials and documentation about the Company and the Financing Parties, within five (5) Business Days following written request, such documentation and other information as any Financing Party may reasonably determine is Company Subsidiaries required by regulatory authorities under applicable “know your customer” and anti-money laundering rules Laws (including the Uniting and regulationsStrengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, the UK Money Laundering Regulations 2019) and any European Union legislation on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (including Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015), as adopted and implemented from time to time at a national level by the country of incorporation or organization of the Company or any of its Subsidiaries, to the extent reasonably requested by any Financing Party or Parent or any of Parent’s Affiliates not less than five (5) Business Days prior to Closing;
(vi) cooperating with respect to the provision of guarantees, including without limitation by providing for the PATRIOT Act. executing and delivering of definitive documents related thereto at the Closing in connection with such Financing;
(vii) providing customary authorization letters to the Financing Parties, authorizing the distribution of information to prospective lenders or investors and containing a customary representation that the public side versions of such documents, if any, do not include material non-public information about the Company or its Subsidiaries (only to the extent such authorization letters contain customary disclaimers for the Company, its Subsidiaries and their respective Representatives with respect to responsibility for the use or misuse of the contents thereof); and
(viii) providing reasonable assistance in the preparation of pro forma information, risk factor disclosure and other disclosures required to consummate such Financing; provided, further, that nothing in this Agreement herein shall require the Company to cause the delivery of (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such request.
(b) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would, or would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closingbe likely to, (2A) interfere unreasonably interfere with the ongoing business or operations of the Company or the Company any of its Subsidiaries, (3B) require the Company or any of its Subsidiaries to take any action that will conflict with or violate the Company’s or any such Subsidiary’s constitutional documents or any applicable Law, (C) require the Company or any of its Subsidiaries to enter into or approve any agreement documentation referred to in paragraph (iii) above that takes effect or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be is effective prior to the Closing or (4D) require the Company, any of the Company Subsidiaries or any of their respective boards of directors (its Subsidiaries to bear any out-of-pocket cost or equivalent bodies) to approve expense or authorize the Financing, and (ii) no action, liability or obligation (including any obligation to pay any commitment fee (other than those costs and fees that Parent commits to reimburse) or other fees or reimburse provide any expenses) of the Companyindemnity, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating in each case effective prior to the Financing shall be effective until the Closing.
(cb) Parent and its Affiliates shall (i) promptly upon request by be entitled to use the Company’s or its Subsidiary’s logos in connection with the Financing; provided, reimburse that such logos are used solely in a manner that is not intended to harm or disparage the Company for all or any of its fees and expenses (including fees and expenses of counsel and accountants) incurred by Subsidiaries or the Company, any reputation or goodwill of the Company Subsidiaries, or any of its Subsidiaries. The Company hereby expressly authorizes the use of any financial statements and any other financial information provided by the Company or their Representatives in connection with any cooperation contemplated by of its Subsidiaries under this Agreement, including this Section 5.05 and (ii) indemnify and hold harmless the Company6.19, the Company Subsidiaries and its and their Representatives against for purposes of any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewithFinancing.
Appears in 1 contract
Financing Cooperation. (a) From During the date hereof until the Pre-Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject to the limitations set forth in this Section 5.05, and unless otherwise agreed by ParentPeriod, the Company will shall, and shall cause each of its Subsidiaries and use its reasonable best efforts to cooperate with Parent cause its other Affiliates and the Representatives of the Company, its Subsidiaries and its other Affiliates as (including their respective auditors) to provide all cooperation reasonably requested by Parent to assist Parent in the arrangement of (x) any bank debt financing or any capital markets debt financing for the purposes of financing any repayment or refinancing of debt of the Company and its Subsidiaries or of Parent and its Subsidiaries and any other amounts required to be paid in connection with Parent’s arrangement the consummation of the Financing Contemplated Transactions and/or (whichy) any amendments of, solely for purposes or waivers or consents granted under debt of this Section 5.05the Company and its Subsidiaries or of Parent and its Subsidiaries, including the Parent ABL Credit Agreement and the Company Credit Agreement (the arrangements described in clauses (x) and (y) above, collectively, the “Debt Financing”), which cooperation shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
include, without limitation: (i) make appropriate officers reasonably available, with appropriate advance notice, for participation in bank meetings, due diligence sessions, meetings with ratings agencies assisting Parent and road shows, reasonable assistance the Debt Financing Sources in the preparation of confidential information memoranda(A) offering documents, private placement memoranda, prospectuses, presentations bank information memoranda and similar documents as may be reasonably requested by Parent or any required in connection with the Debt Financing Partyand (B) materials for rating agency presentations, in each case, with respect to information relating to (ii) providing for the participation of senior management of the Company and its Subsidiaries in connection a reasonable number of rating agency presentations and meetings with customary marketing efforts of Parent prospective lenders, in each case, upon reasonable prior notice and its Affiliates for all or any portion of the Financing;
at times and locations to be mutually agreed in good faith, (iiiii) furnish furnishing Parent and the Debt Financing Parties Sources as promptly as practicable with copies of such financial data with respect to information regarding the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is Parent shall reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt Lettersrequest, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of furnishing Parent and the Debt Financing Sources with customary authorization letters authorizing the distribution of information to legal counsel of any Financing Party such prospective lenders or investors (including customary 10b-5 and material non-public information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
representations), (v) furnish reasonably cooperating with the Debt Financing Sources reasonable due diligence requests, (vi) furnishing Parent and the Debt Financing Parties, within five (5) Business Days following written request, such Sources promptly with all documentation and other information as in respect of the Company and its Subsidiaries that any Debt Financing Party may reasonably determine Source has requested prior to the Closing Date that is required by regulatory authorities a Governmental Body under applicable “beneficial ownership,” “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act. provided, further(vii) reasonably assisting Parent in connection with the preparation by Parent and its Representatives of the Debt Financing Documents (including executing and delivering the Debt Financing Documents with respect thereto), that nothing in this Agreement shall require the borrowing of loans and the provision of guarantees and security interests to support the Debt Financing by the Company to cause the delivery of and its Subsidiaries, (1viii) reasonably cooperating with Parent’s legal counsel (which may include local, regulatory or other special counsel) in connection with any legal opinions that such counsel may be required to deliver in connection with the Debt Financing, cooperating with Parent and Parent’s efforts to obtain corporate and facilities ratings, consents, landlord and bailee waivers, estoppel and non-disturbance agreements and similar consents as reasonably requested by Parent, (ix) taking all actions reasonably necessary to (A) permit the Debt Financing Sources to evaluate the Company’s and its Subsidiaries’ current assets, properties, rights, inventory, cash management and accounting systems, and policies and procedures relating thereto (including cooperating in and facilitating field examinations, collateral audits, asset appraisals and surveys), in each case in connection with their customary pre-closing due diligence or reliance letters or any certificate as to solvency or any other certificate necessary for the Financingpurpose of establishing collateral arrangements to the extent customary and reasonable and (B) establish bank and other accounts and blocked account agreements and lock box arrangements in connection with the foregoing, other than as provided by Section 5.05(a)(iii)(x) furnishing Parent all existing field examinations, collateral audits and asset appraisals and surveys of the Company and its Subsidiaries performed in the two (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by Section 5.05(a)(ii) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) years prior to the date of such request.
this Agreement, (bxi) Notwithstanding anything using reasonable best efforts to facilitate discussions with the Company’s and its Subsidiaries’ existing lending and investment banking relationships and (l) otherwise reasonably cooperating with Parent to satisfy any conditions precedent to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation Debt Financing to the extent that it within the control of the Company, its Subsidiaries, its other Affiliates and their respective Representatives. Notwithstanding the foregoing, none of the Company, its Subsidiaries or its other Affiliates or any of their respective Representatives, shall be required to (x) provide any cooperation or assistance under this Section 5.16(a) to the extent doing so would (1) require the Company to pay any commitment or other fees, reimburse any expenses or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of such Person or (2) require such Person to take any action that would conflict with or violate any law or subject any director, manager, officer or employee of such Person to any actual personal liability or (y) obtain any corporate authorizations or execute or deliver any certificate, document, instrument or agreement in connection with the Company Debt Financing (other than the authorization letters referred to in clause (iv) above and any others that are necessary or reasonably requested in connection with the Debt Financing and that would not be effective until the Closing Date): (1) jeopardize any attorney-client or other privilege; or (2) contravene any applicable Legal Requirement or result in the breach of any confidentiality obligation in place prior to the date of this Agreement. Parent and the Debt Financing Sources may disclose confidential information obtained by it or its Representatives pursuant to this Section 5.16(a) to (i) potential lenders and investors in connection with the marketing and syndication of the Debt Financing and (ii) rating agencies in connection with confirming or obtaining ratings for Parent or the Debt Financing; provided that each of the foregoing are informed by Parent that such information is being disclosed on a confidential basis. The Company hereby consents to the use of the Company’s (and its Subsidiaries’) logos, (3) require names and marks in connection with the Debt Financing; provided, that such names, marks and logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to the Closing or agree to any change or modification of any existing agreement or other documentation that would be effective prior to the Closing or (4) require its Subsidiaries. Parent shall, promptly upon request by the Company, any reimburse the Company, as applicable, for all reasonable and documented out-of-pocket costs incurred by the Company, its Affiliates or their respective Representatives in connection with the cooperation contemplated under this Section 5.16(a). Notwithstanding the agreements of the Company to cooperate with Parent’s efforts regarding the Debt Financing, there is no financing contingency or condition precedent for the benefit of Parent in connection with the consummation of the Contemplated Transactions.
(b) Except as a result of gross negligence, fraud or willful misconduct by the Company, its Subsidiaries or its or their Representatives, or arising from any material breach of their respective boards this Agreement or any misstatement or omission of directors (or equivalent bodies) information relating to approve or authorize the Financing, Company and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of its Subsidiaries provided by the Company, its Subsidiaries, its other Affiliates or any of its or their respective Representatives under (including any certificatehistorical financial information furnished in writing by or on behalf of the Company and/or its Subsidiaries, agreementand financial statements and audits thereof), arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall indemnify, defend and hold harmless the Company, its Subsidiaries and its and their respective Representatives from and against any and all losses, damages, claims and reasonable and documented out-of-pocket fees and expenses (iincluding reasonable and documented out-of-pocket fees and expenses of one outside legal counsel, accountants, investment bankers, experts, consultants and other advisors) suffered or incurred by them directly or indirectly in connection with any action taken in accordance with Section 5.16(a) and any information utilized in connection therewith. In addition, Parent shall, promptly upon written request by the Company, reimburse the Company for all of its reasonable and documented out-of-pocket fees and expenses (including reasonable and documented out-of-pocket fees and expenses of counsel outside legal counsel, accountants, investment bankers, experts, consultants and accountantsother advisors) incurred by the Company, any of the Company Subsidiaries, any of or its or their Representatives Subsidiaries in connection with any cooperation contemplated by this Section 5.05 and (ii) indemnify and hold harmless the performance of the Company, the Company Subsidiaries and its and their Representatives against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation’s obligations under Section 5.16(a), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used in connection therewith.
Appears in 1 contract
Financing Cooperation. (a) From the date hereof until the Closing (or the earlier termination of this Agreement pursuant to Section 8.01), subject Prior to the limitations set forth in this Section 5.05Closing, Voyage Holdings shall use its commercially reasonable efforts to, and unless otherwise agreed by Parentshall cause directors, the Company will officers, employees, consultants, advisors, counsel, accountants, auditors and other representatives of Voyage Holdings to use its their commercially reasonable best efforts to cooperate with Parent and its Affiliates to, provide on a timely basis such cooperation as is reasonably requested by Parent Buyer to assist Buyer or its Affiliates in connection with Parent’s arrangement of arranging the Debt Financing (which, solely which for purposes of this Section 5.058.12 includes any Alternative Financing), shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts to:
including: (i) make appropriate officers assisting in the preparation for and making senior management reasonably availableavailable for a reasonable number of lender marketing meetings, presentations and calls and a reasonable number of other due diligence sessions with appropriate prospective lenders and ratings agencies in each case in connection with the Debt Financing and any equity financing and, in each case, upon reasonable advance notice, for participation in bank meetings, (ii) providing such financial information and other due diligence sessionsmaterials to the lenders, meetings with ratings agencies arrangers and road showsagents under such Debt Financing (whether pursuant to the Debt Commitment Letter, reasonable assistance a joinder, or an amendment and restatement thereof or otherwise) and their Affiliates, and their and their Affiliates’ respective current, former and future officers, general or limited partners, shareholders, directors, members, managers, controlling persons, employees, agents and representatives involved in such Debt Financing and the preparation respective successors and assigns of confidential information memorandaeach of the foregoing parties under such Debt Financing (the “Debt Financing Sources”) and other potential debt financing sources, private placement memorandain each case, prospectuses, presentations and similar documents as may be reasonably requested by Parent or any Financing PartyBuyer, in each case, with respect to information relating to the Company and its Subsidiaries in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent and the Financing Parties with copies of such financial data with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof to be promptly reimbursed by Parent) as is reasonably requested by Parent or any Financing Party and is customarily required for the arrangement and syndication of financings similar to the Financing committed pursuant to the Debt LettersFinancing Sources and such other potential debt financing sources, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, and identify any such financial information as suitable for distribution to “public side” lenders;
(iii) request that assisting Buyer, the Company’s independent accountants participate Debt Financing Sources and other debt financing sources in drafting sessions the preparation of a confidential information memorandum and accounting due diligence sessions other lender marketing materials for prospective lenders and cooperate with the Financing materials for rating agency presentations (including as set forth in the Debt Letters as in effect on the date of this Agreement) providing pertinent and customary information regarding Voyage Holdings or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort), including in respect of historical financial statements of the Company, to the extent required in connection with the marketing and syndication of Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or as are customarily required in an underwritten offering of securities of the type described in the Debt Letters, or as may otherwise be required pursuant to applicable Law or the rules or regulations of any national securities exchange in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information its Subsidiaries as may be reasonably requested by the Buyer to the extent that such counsel information is of the type and form customarily included in a bank information memorandum) and in the negotiation, preparation and delivery of definitive transaction documents for the Debt Financing (including providing any “beneficial ownership” certifications and customary authorization letters to the Debt Financing Sources authorizing the distribution of the information referenced in this clause; provided that the representations contained in such authorization letters with respect to Voyage Holdings or its Subsidiaries shall be limited to customary “10b-5” and “no MNPI” certifications, (iv) providing pertinent and customary information with respect to the properties and assets of Voyage Holdings and its Subsidiaries reasonably required in connection with any legal opinion that such counsel may be required to deliver in connection with such the Debt Financing and facilitating the pledge and perfection of liens, security interests and providing guarantees supporting the Debt Financing; and
, (v) furnish Parent providing all cooperation that is reasonable and customary to satisfy the conditions precedent to any financing documents relating to the Debt Financing Partiesto the extent the satisfaction of such conditions requires the reasonable and customary cooperation of, or is within five the control of, Voyage Holdings and (5vi) Business Days following written requestotherwise providing requested information regarding Voyage Holdings that is reasonably requested by Buyer, such documentation including (x) any requested documentation, certificates and other information as any Financing Party may reasonably determine is required by regulatory authorities under applicable “know your customer” and ”, anti-money laundering rules rules, regulations of the USA Patriot Act of 2001 and regulationsbeneficial ownership regulations of 31 C.F.R. § 1010.230, including without limitation and (y) other customary and pertinent information as is reasonably necessary to assist Buyer in its preparation of the PATRIOT Actpro forma financial statements required in connection with the Debt Financing. providedNotwithstanding the foregoing or any other provision of this Agreement (but other than with respect to Section 8.12(f)), further, that nothing in this Agreement shall will require the Company to cause the delivery of Voyage Holdings (1) legal opinions or reliance letters or any certificate as to solvency or any other certificate necessary for the Financing, other than as provided by Section 5.05(a)(iii), (2) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any each case in a form not customarily prepared by the Company with respect to such periodthe following clauses (A) through (E), other than as provided by Section 5.05(a)(ii) or except for any authorization letters delivered (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior subject to the date of such request.
limitation described herein) and any beneficial ownership certification) to (bA) Notwithstanding anything to the contrary contained in this Agreement (including this Section 5.05): (i) nothing in this Agreement (including this Section 5.05) shall require any such cooperation to the extent that it would (1) require the Company agree to pay any commitment fees or other fees, reimburse any expenses or otherwise incur any liabilities liability prior to the Closing for which it has not received prior reimbursement or give is not otherwise indemnified by or on behalf of Buyer, (B) execute any indemnities certificate, agreement, document or instrument prior to the Closing, (2C) give any indemnities that are effective prior to the Closing, (D) take any action that, in the good faith determination of Voyage Holdings, would unreasonably interfere with the ongoing business or operations conduct of the Company business of Voyage Holdings or the Company its Subsidiaries, and (3E) require provide any information the Company disclosure of which is prohibited under applicable Law or in violation of any confidentiality obligation (not created in contemplation thereof); provided that Voyage Holdings shall notify Buyer of that information is being withheld pursuant to such restriction and use commercially reasonable efforts to disclose such information in a manner that does not violate the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior applicable restriction. Notwithstanding anything contained in this Section 8.12 to the Closing or agree contrary (but other than with respect to any change or modification of any existing agreement or other documentation that would be effective prior to Section 8.12(f)), in no event shall the Closing or (4) require Sellers, the Company, any of the Company Subsidiaries Target Companies or any of their Affiliates be required to provide any financial statements to the Buyer pursuant to this Agreement other than the Financial Statements and its customary quarterly financial statements for the periods ended June 30, 2019 and, to the extent that the Closing Date occurs on or after October 31, 2019, September 30, 2019.
(b) Buyer shall, promptly upon written request by the Target Companies, reimburse the Target Companies, as applicable, for all reasonable and documented out-of-pocket costs incurred by the Target Companies in connection with their cooperation obligations under this Section 8.12 (excluding preparation of financial statements in the Ordinary Course of Business) at the request of Buyer. Buyer shall indemnify and hold harmless the Target Companies, their respective boards of directors (or equivalent bodies) to approve or authorize the Financing, Affiliates and (ii) no action, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under from and against any certificateand all liabilities, agreementlosses, arrangementdamages, document claims, costs, expenses (with respect to attorneys’ fees, limited to reasonable and documented out of pocket attorneys’ fees of one firm of counsel), interest, awards, judgments and penalties suffered or instrument relating incurred by them in connection with the Debt Financing or Other Financing, including as to any information and cooperation provided in connection therewith, to the Financing shall be effective until fullest extent permitted by applicable Law, except to the Closingextent arising from the bad faith, gross negligence, willful misconduct, in each case as determined by a court of competent jurisdiction in a final nonappealable judgment, or Fraud by the Target Companies, their respective Affiliates and their respective Representatives.
(c) Parent Without limiting the generality of the foregoing, Buyer shall give Voyage Holdings prompt notice (i) promptly upon request of any material breach or default by any party to the Debt Commitment Letter of which Buyer becomes aware that would reasonably be expected to (1) prevent, (2) in the case of any such material breach or default occurring on or prior to November 20, 2019, materially delay the Closing or (3) in the case of any such material breach or default occurring following November 20, 2019, delay the Closing by more than one (1) Business Day, or (ii) of the receipt or delivery of any written notice or other written communication, in each case from any Person with respect to (1) any material breach, default, termination or repudiation by any party to the Debt Commitment Letter or (2) any material dispute or disagreement between or among parties to the Debt Commitment Letter with respect to the obligation to fund the Debt Financing or the amount of the Debt Financing to be funded at the Closing or any other event or condition that would reasonably be expected to (A) prevent, (B) in case of any such event described in this clause (ii) occurring on or prior to November 20, 2019, materially delay the Closing or (C ) in case of any such event described in this clause (ii) occurring on or prior to November 20, 2019, or delay the Closing by more than one (1) Business Day.
(d) Notwithstanding anything in this Agreement to the contrary, prior to the Closing, without the written consent of VMG Blocker or Voyage Holdings (not to be unreasonably withheld, delayed, denied or conditioned), Buyer shall not amend, replace, supplement or otherwise modify the Debt Commitment Letter (other than, in any event, modifications contemplated by the Company, reimburse the Company for all of its fees and expenses (including fees and expenses of counsel and accountants) incurred by the Company, any “flex” provisions of the Company Subsidiariesfee letter or to appoint additional agents, any of its co-agents, arrangers, bookrunners, managers, initial lenders, or their Representatives other roles in connection with the Debt Commitment Letter) to the extent that any cooperation contemplated such amendment, replacement, supplement or other modification to the Debt Commitment Letter would (i) reduce the aggregate amount of the Debt Financing below an amount that, together with cash on hand and equity commitments or financing arranged by this Section 5.05 and Buyer would not be sufficient to fund the amounts required to be funded by Buyer on the Closing Date), (ii) indemnify and hold harmless amend the Companyconditions precedent to impose new or additional conditions or expands any existing condition to the receipt of the Debt Financing, (iii) modify any provision of the Company Subsidiaries and its and their Representatives against Debt Commitment Letter in a manner that would reasonably be expected to (1) in case of any claimsuch amendment, lossreplacement, damagesupplement or other modification to the Debt Commitment Letter occurring on or prior to October 31, injury2019, liability, judgment, award, penalty, fine, Tax, cost (including cost prevent or materially delay the funding of investigation), expense (including fees and expenses of counsel and accountants) or settlement payment incurred as a result of, or in connection with, such cooperation or the Debt Financing and any information used in connection therewith.the Closing or
Appears in 1 contract
Sources: Stock and Unit Purchase Agreement (Simply Good Foods Co)
Financing Cooperation. (a) From PEL and the date hereof until the Closing (or the earlier termination of this Agreement pursuant Seller shall use their respective commercially reasonable efforts to Section 8.01), subject to the limitations set forth in this Section 5.05provide, and unless otherwise agreed by Parent, shall cause the Company will Operating Companies to use its their commercially reasonable best efforts to cooperate with Parent and its Affiliates as provide, to Purchasers, at Purchasers’ sole expense, all cooperation reasonably requested in writing by Parent Purchasers that is necessary, proper or advisable in connection with Parent’s the arrangement of the Financing (whichincluding in connection with the Bridge Facility and one or more offerings of equity securities of Parent) to the extent customary in connection with the arrangement of debt or equity financing similar to the Financing, solely for purposes of this Section 5.05, shall include any alternative equity or debt capital markets financings contemplated by the Debt Letters). Such cooperation will include using reasonable best efforts toincluding:
(i) make appropriate officers as promptly as reasonably availablepracticable, furnishing Purchasers with appropriate advance noticethe Required Information;
(ii) as promptly as reasonably practicable, informing Purchasers if to the Knowledge of Seller there exist any facts that would be reasonably likely to require the restatement of any financial statements comprising a portion of the Required Information in order for participation such financial statements to comply with GAAP;
(iii) to the extent reasonably determined by Purchasers or their respective Representatives to be necessary or advisable in bank connection with the Financing prior to the Closing, assisting in the preparation for and participating in the marketing efforts for the Financing (including a reasonable number of meetings, presentations, calls, roadshows, due diligence sessions, meetings drafting sessions and sessions with rating agencies) and assisting Purchasers in obtaining ratings agencies in connection with the Bridge Facility; provided that only the employees and Representatives of PEL, Seller and their respective affiliates set forth on Section 5.18(a) of the Seller Disclosure Schedule shall participate in any such meetings, calls, road shows, reasonable assistance in shows or presentations;
(iv) reasonably assisting Purchasers and the Financing Sources with the preparation of confidential bank information memoranda, private placement memorandalender presentations, prospectusesinvestor presentations, offering documents, rating agency presentations and similar documents as may be reasonably requested by Parent or any Financing Party, in each case, with respect to information relating to the Company and its Subsidiaries required in connection with customary marketing efforts of Parent and its Affiliates for all or any portion of the Financing;
(ii) furnish Parent , including reviewing and the Financing Parties with copies commenting on Purchaser’s draft of such financial data a business description with respect to the Company and its Subsidiaries which is prepared by the Company in the ordinary course of business or can be prepared by the Company without undue burden (with any cost thereof Operating Companies to be promptly reimbursed included in marketing materials; provided that any such memoranda, documents or presentations would not be issued by ParentPEL, the Seller or their respective affiliates and shall contain disclosure and financial statements with respect to the Acquired Business reflecting Purchasers or their respective affiliates as the obligor;
(v) as is reasonably requested by Parent or any Financing Party using commercially reasonable efforts to cause its independent auditors to provide, consistent with customary practice, (A) reasonable assistance to Purchasers in connection with the Financing, including in Purchasers’ preparation of pro forma financial statements and is customarily required information, (B) consents customary for the arrangement and syndication of financings similar to the Financing committed pursuant (including consents of auditors for use of their reports in any materials relating to the Debt Letters, including such information necessary to allow Parent to prepare pro forma financial statements in accordance with Article 11 of Regulation S-X under the Securities Act of 1933, as amended, Financing) and identify any such financial information as suitable for distribution to “public side” lenders;
(iiiC) request that the Company’s independent accountants participate in drafting sessions and accounting due diligence sessions and cooperate with the Financing (including as set forth in the Debt Letters as in effect on the date of this Agreement) or in connection with a customary offering of securities, including the type described in the Commitment Letter, consistent with their customary practice, including requesting that they provide customary consents and comfort letters (including “negative assurance” comfort and change period comfort) with respect to financial information relating to the Operating Companies as reasonably requested by Purchasers or as necessary or customary for financings similar to the Financing (including any SEC-registered offering of equity securities), including ;
(vi) reasonably assisting Purchasers in respect connection with the preparation of historical pro forma financial information and pro forma financial statements of the Company, to the extent necessary or reasonably required in connection with the marketing and syndication Financing; provided that none of Financing (including as set forth in PEL, the Debt Letters as in effect on the date of this Agreement) Seller or as are customarily required in an underwritten offering of securities any of the type described in the Debt Letters, or as may otherwise Operating Companies shall be required pursuant to applicable Law actually prepare or the rules be responsible for any such pro forma financial information or regulations of provide any national securities exchange information or assistance relating to Purchasers or their respective affiliates, any post-Closing or pro forma cost savings, synergies, capitalization, ownership or other pro forma adjustments desired to be incorporated into any information used in connection with the Merger or any alternative financing therefor, and provide customary management letters in connection with the foregoing;
(iv) furnish to legal counsel of Parent and to legal counsel of any Financing Party such information as may be reasonably requested by such counsel in connection with any legal opinion that such counsel may be required to deliver in connection with such Financing; and
(vvii) furnish Parent providing, (A) customary authorization letters to the Financing Sources authorizing the distribution of information to prospective investors and/or lenders, subject to customary confidentiality provisions, and containing customary representations on behalf of the Operating Companies to the Financing Sources consistent with the Commitment Letter, including that the public side versions of such documents do not include material non-public information about PEL, the Seller or the Operating Companies or their securities and the Financing Partiesaccuracy of the information contained in the disclosure and marketing materials with respect to PEL, within five the Seller or the Operating Companies related to the Financing; provided, that PEL and the Seller are given a reasonable opportunity prior to execution to review and provide comments on such authorization letters and such information distributed to prospective investors and/or lenders in connection therewith and (5B) Business Days following written request, such all documentation and other information as any Financing Party may reasonably determine is about the Seller and the Operating Companies required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, regulations including without limitation the USA PATRIOT Act. provided, furtherin each case to the extent reasonably requested by Purchasers in writing reasonably in advance of the Closing, that nothing and in any case, at least ten (10) Business Days prior to the Closing Date; Notwithstanding the foregoing or any other provision to the contrary in this Agreement, neither the Seller nor the Operating Companies shall be required to provide cooperation under this Section 5.18 that: (A) unreasonably interferes with the ongoing business of the Operating Companies; (B) results in any Operating Company incurring any liability with respect to any matters relating to the Financing prior to the Closing (other than in respect of the authorization letters contemplated by Section 5.18(a)(vii) above), (C) causes any representation or warranty in this Agreement or to be breached; or (D) causes any closing condition set forth in Article VI to fail to be satisfied or otherwise causes the breach of this Agreement. Furthermore, PEL, the Seller and its affiliates shall require not be required to provide any further financial statements other than the Company Required Information, nor be required to cause provide any updates to such financial statements (unless (y) to the delivery Knowledge of the Seller, such financial statements contain any untrue statement of material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading or (1z) legal opinions or reliance letters or any certificate as facts of the type described in Section 5.18(a)(ii) above exist) nor be required to solvency or provide any other certificate necessary for the Financing, information (financial or otherwise) other than as provided contemplated by Section 5.05(a)(iii), (25.18(a) any financial information for any period, including any audited financial information or any financial information prepared in accordance with Regulation S-K or Regulation S-X under the Securities Act of 1933, as amended, in any case in a form not customarily prepared by the Company with respect to such period, other than as provided by above and Section 5.05(a)(ii5.18(f) or (3) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 40 days (or, in the case of a fiscal year, 60 days) prior to the date of such requestbelow.
(b) Notwithstanding anything The Seller and PEL on behalf of the Operating Companies hereby consent to the contrary contained reasonable use of the Operating Companies’ logos in this Agreement connection with the Financing; provided, that such logos are used in a manner that is not intended to harm or disparage the Operating Companies’ reputation or goodwill.
(including this Section 5.05): (ic) nothing in this Agreement (including this Section 5.05) In no event shall require any such cooperation to PEL, the extent that it would (1) require Seller or the Company Operating Companies be required to pay any commitment or other fees, reimburse any expenses similar fee that is not contingent upon and due on or otherwise incur any liabilities or give any indemnities prior to the Closing, (2) unreasonably interfere with the ongoing business or operations of the Company or the Company Subsidiaries, (3) require the Company or any of the Company Subsidiaries to enter into or approve any agreement or other documentation effective prior to after the Closing or agree incur any Liability (including due to any change act or modification of any existing agreement omission by PEL, the Seller or other documentation that would be effective prior to the Closing or (4) require the Company, any of the Company Subsidiaries Operating Companies or any of their respective boards representatives) or expense in connection with assisting Purchasers in arranging the Financing in the event the Closing does not occur, other than any Liability that arose out of directors the fraud or willful misconduct of the Operating Companies or their representatives or directly resulted from the breach of any of the material obligations of the Operating Companies under this Agreement. Purchasers shall (i) from and after the Closing, promptly upon request by PEL or equivalent bodies) to approve the Seller, reimburse PEL or authorize the FinancingSeller for all reasonable and documented out-of-pocket costs and expenses incurred in good faith by PEL or the Seller in connection with such cooperation, and (ii) no actionpromptly after the termination of this Agreement pursuant to Section 7.01, liability or obligation (including any obligation to pay any commitment or other fees or reimburse any expenses) of the Company, its Subsidiaries, or any of their respective Representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing.
(c) Parent shall (i) promptly upon request by PEL, the CompanySeller or the Operating Companies reimburse PEL, reimburse the Company Seller or the Operating Companies for all of its fees reasonable and documented out-of-pocket costs and expenses (including fees and expenses of counsel and accountants) incurred in good faith by PEL, the Company, any of Seller or the Company Subsidiaries, any of its or their Representatives Operating Companies in connection with such cooperation. Purchasers acknowledge and agree that, in the event that this Agreement is terminated pursuant to Section 7.01, none of PEL, the Seller, any cooperation Operating Company nor their respective representatives and affiliates shall have any responsibility for, or incur any Liability to any person under, any financing that Purchasers may raise in connection with the transactions contemplated by this Section 5.05 Agreement, and (ii) Purchasers hereby agree to indemnify and hold harmless the CompanyPEL, the Company Subsidiaries and its Seller, the Operating Companies, and their Representatives affiliates and representatives from and against any claim, loss, damage, injury, liability, judgment, award, penalty, fine, Tax, cost (including cost of investigation), expense (including fees and expenses of counsel and accountants) all Losses suffered or settlement payment incurred as a result of, or in connection with, such cooperation or the Financing and any information used by them in connection therewith, except, in each case, to the extent such Loss (i) arose out of or resulted from the fraud or willful misconduct of PEL, the Seller, the Operating Companies or their representatives, (ii) directly resulted from the breach of any of the material obligations of PEL, the Seller or any Operating Company under this Agreement, (iii) directly resulted from any information furnished by PEL or the Seller under this Agreement that is inaccurate or misleading or (iv) were agreed to in a settlement without the written consent of Purchaser (such consent not to be unreasonably withheld, conditioned or delayed) with the arrangement of the Financing.
(d) For purposes of this Agreement, the following terms have the meanings set forth below:
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