Common use of Financing Clause in Contracts

Financing. (a) Each of Parent and Merger Sub shall use reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).

Appears in 2 contracts

Sources: Merger Agreement (Fresh Market, Inc.), Merger Agreement (Fresh Market, Inc.)

Financing. (a) Each (i) Subject to the other provisions of Parent and Merger Sub this Agreement, Amneal shall use reasonable best efforts (and shall use reasonable best efforts to cause its Affiliates and Subsidiaries) to take, or cause to be taken, all actions and necessary or advisable to doobtain, or cause to be doneobtained, all things necessary, proper or advisable to consummate and obtain the Debt Financing on the terms and subject only to conditions, described in the conditions Debt Commitment Letter (including as such terms may be modified or adjusted in accordance with the market terms of the “flex” provisions) set forth provisions contained in the Financing LettersFee Letter), including using reasonable best efforts to (iA) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required Debt Commitment Letter until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt FinancingFinancing at or prior to Closing, (B) negotiate definitive agreements with respect to the Debt Financing on (the “Definitive Agreements”) consistent in all material respects with the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (including any related “flex” provisions) or on other terms that, with respect to conditionality, are not less favorable favorable, in the aggregate, to Parent or Merger Sub Amneal than the terms and conditions (including market the “flex” provisions) contemplated by the Debt Commitment Letter but only to the extent that any such other terms would not reasonably be expected to adversely impact or delay in any material respect the ability of Amneal to consummate the Transactions and the Ancillary Transactions in accordance with this Agreement or obtain the Debt Financing (it being agreed that, notwithstanding the foregoing, Amneal may modify, supplement, amend or amend and restate the Debt Commitment Letter solely to add lenders, lead arrangers, bookrunners, syndication agents or similar entities (and make incidental or conforming amendments or modifications to reflect the addition of any such lenders, lead arrangers, bookrunners, syndication agents and similar entities), (C) satisfy (or obtain a waiver of) all conditions within its control to obtaining the Debt Financing and (D) upon satisfaction of all of the conditions in this Agreement to Amneal’s and Impax’s obligations to effect the Closing, and satisfaction of all of the conditions set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce enforcing its rights against the other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Debt Commitment Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or if any, including to require such parties to provide the Debt Commitment Letter (including any market “flex” provisions contained therein)Financing.

Appears in 2 contracts

Sources: Business Combination Agreement (Atlas Holdings, Inc.), Business Combination Agreement (Impax Laboratories Inc)

Financing. (a) Each of Parent and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all actions actions, and shall use reasonable best efforts to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the proceeds of the Financing on on, in the case of clause (iii)(y) below, subject to clauses (A) through (C) of clause (iii) below, the terms and subject only to conditions described in the conditions Commitment Letters (including including, as necessary, the market “flex” provisionsprovisions contained in any related fee letter) set forth as promptly as possible (taking into account the expected timing of the Marketing Period), but in any event on or prior to the Financing Lettersdate upon which the Merger is required to be consummated pursuant to the terms hereof, including by using reasonable best efforts with respect to (i) causing the Equity Investors to maintain in effect and comply with the Financing LettersEquity Commitment Letter, (ii) negotiate maintaining in effect the Debt Commitment Letter, (iii) negotiating and enter entering into on the Closing Date definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on (the “Definitive Agreements”) (x) consistent with the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (including, as necessary, the “flex” provisions contained in any related fee letter) or (y) if available, on other terms that, with respect to conditionality, that (A) are not less favorable acceptable to Parent in its sole discretion, (B) would not reasonably be expected to delay (taking into account the expected timing of the Marketing Period) or Merger Sub than adversely affect the terms ability of Parent to consummate the transactions contemplated hereby and conditions (including market “flex” provisionsC) set forth in the Debt Commitment Letterwould otherwise be permitted by Section 5.12(b), and (iiiiv) satisfy taking into account the expected timing of the Marketing Period, satisfying (or, if reasonably required to obtain the Financing, seeking the waiver of) on a timely basis all conditions applicable in the Debt Commitment Letter and the Definitive Agreements that are within the control of Parent or Merger Sub and complying with its obligations thereunder. In the event that all conditions contained in the Debt Commitment Letter or the Definitive Agreements (other than the consummation of the Merger and other than the availability of the Cash Equity and those that by their nature are to be satisfied at the Closing) have been satisfied or waived, Parent and Merger Sub in shall use their reasonable best efforts to cause the Lenders thereunder to comply with their respective obligations thereunder, including to fund the Debt Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and including, subject to Section 8.7(c), by promptly commencing a litigation proceeding against any breaching Lender or other financial institution to compel such Lender or financial institution to provide its portion of the conditions set forth in Debt Financing or otherwise comply with its obligations under the Equity Funding Letter) (or, if necessary Debt Commitment Letter or deemed advisable by Parent, seek the waiver Definitive Agreements). Each of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)shall use its reasonable best efforts to comply with its respective obligations, (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights respective rights, under the Financing Commitment Letters and the definitive agreements relating to the Financing Definitive Agreements in a timely and diligent manner. (vib) otherwise comply with Parent’s Parent shall not, and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, shall not permit Merger Sub and the Guarantors shall notto, without the prior written consent of the Company, agree to or : (i) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Commitment Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce adds new (or adversely modifies any existing) conditions to the aggregate amount consummation of all or any portion of the Financing Financing, (including by increasing B) reduces the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the to an amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or be less than the Merger Amounts, (C) adversely impact affects in a material respect the ability of Parent to enforce its rights against other parties to the Commitment Letters or the Definitive Agreements as so amended, replaced, supplemented or otherwise modified, relative to the ability of Parent or Merger Sub, as applicable, to enforce its rights against the other parties to the Financing Commitment Letters as in effect on the date hereof or (D) could otherwise reasonably be expected to prevent, materially impede or materially delay the consummation of the Merger and the other transactions contemplated by this Agreement (taking into account the expected timing of the Marketing Period); or (ii) terminate any Commitment Letter or any Definitive Agreement unless such Commitment Letter or Definitive Agreement is replaced at such time with a new commitment letter or a new definitive agreements with respect to agreement that would satisfy the Financingpreceding clause (i). Parent and Merger Sub shall promptly deliver to the Company copies of any amendment, modification, supplement, consent waiver or waiver to or under replacement of any Financing Commitment Letter or any Definitive Agreement. (c) In the definitive agreements relating event that any portion of the Debt Financing becomes unavailable, regardless of the reason therefor, Parent and Merger Sub will (i) use reasonable best efforts to obtain alternative debt financing (in an amount sufficient, when taken together with Cash Equity and the Financing available portion of the Debt Financing, to pay the Merger Consideration and the other Merger Amounts) as promptly upon execution thereof. Notwithstanding anything to as reasonably practicable from the contrary same or other sources; provided, that, in this Agreement, nothing contained in this Section 5.04 no event shall requireParent be required to, and in no event shall the its reasonable best efforts of Parent or Merger Sub be deemed or construed to requirerequire it to, either obtain alternative financing that includes terms and conditions, taken as a whole, that are less favorable in any material respect to Parent or Merger Sub to (i) seek the Equity Financing from any source other and its Subsidiaries than the counterparties toterms and conditions, taken as a whole, set forth in the Debt Commitment Letter as of the date hereof or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) would require it to pay any material fees or agree to pay any interest rate amounts or original issue discounts, in either case, in excess of those contemplated by the Equity Funding Debt Commitment Letter as in effect on the date hereof (taking into account any flex provisions applicable thereto contained in the Fee Letters) or which include any conditions to the consummation of such alternative debt financing that would reasonably be expected to make the funding of such alternative debt financing less likely to occur, than the conditions set forth in the Debt Commitment Letter as of the date hereof (including and, when obtained, provide the Company with a true and correct copy of any market new financing commitment for such alternative debt financing) and (ii) promptly (and in any event within two (2) Business Days) notify the Company of such unavailability and the reason therefor. For the purposes of this Agreement, the term “flexDebt Commitment Letter” provisions contained thereinshall be deemed to include any commitment letter (or similar agreement) with respect to any alternative or replacement financing arranged in compliance herewith (and any Debt Commitment Letter remaining in effect at the time in question). Parent and Merger Sub shall provide the Company with prompt oral and written notice of any actual or threatened material breach, early termination, repudiation or material default by any party to any Commitment Letter or any Definitive Agreement, in each case, of which Parent or Merger Sub obtain Knowledge and the receipt of any written notice or other written communication from any Lender, Equity Investor or other financing source with respect to any material breach, material default, early termination or repudiation by any party to any Commitment Letter or any Definitive Agreement of any provision thereof. Parent and Merger Sub shall keep the Company reasonably informed on a current basis of the status of its efforts to consummate the Financing. The foregoing notwithstanding, compliance by Parent and Merger Sub with this Section 5.12 shall not relieve Parent or Merger Sub of their obligation to consummate the transactions contemplated by this Agreement whether or not the Financing is available.

Appears in 2 contracts

Sources: Agreement and Plan of Merger (At Home Group Inc.), Merger Agreement (At Home Group Inc.)

Financing. (a) Each of Parent Parent, Merger Sub and Merger Sub I shall use its reasonable best efforts (taking into account the expected timing of the Marketing Period) to take, take (or cause to be taken) all actions, all actions and to do, do (or cause to be done, ) all things necessary, proper or advisable to consummate and obtain the proceeds of the Debt Financing contemplated by the Debt Financing Commitments on the terms and subject only to conditions described in the conditions Debt Financing Commitments (including the market “flex” provisions) set forth in the Financing Lettersany flex provisions applicable thereto), including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” the flex provisions) set forth contained therein or on other terms not materially less favorable, in the Debt Commitment Letteraggregate, to Parent (as determined in the reasonable judgment of Parent) and not in violation of this Section 5.15(a) (including clauses (A)-(C) below), (iiiii) satisfy (or, if deemed advisable by Parent, seek a waiver of) on a timely basis all conditions applicable to Parent Parent, Merger Sub and Merger Sub I in the Debt Financing Letters Commitments that are within its control and the definitive agreements otherwise comply with its obligations thereunder and pay related thereto (including by consummating the Equity Financing at or prior to fees and expenses on the Closing on Date, (iii) maintain in effect the Debt Financing Commitments in accordance with the terms thereof (except for amendments and subject to supplements not prohibited by this Section 5.15(a)) until the conditions set forth transactions contemplated by this Agreement are consummated or this Agreement is terminated in the Equity Funding Letter) (oraccordance with its terms, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Debt Financing Letters Commitments in the event of a breach by any counterparty thereto that would reasonably be expected to materially impede or delay the Closing. Parent shall have the right from time to time to amend, supplement, amend and restate or modify the definitive agreements relating to the Debt Financing Commitments; provided, that any such amendment, supplement, amendment and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and restatement or other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors modification shall not, without the prior written consent of the Company, agree to Company (A) add new (or permit adversely modify any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating existing) conditions precedent to the Debt Financing if such terminationas set forth in the Debt Financing Commitments as in effect on the date hereof, amendment, supplement, modification or waiver would (AB) reduce the aggregate amount of any portion of the Debt Financing Commitments (including by increasing changing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity as set forth in the Debt Financing is increased by a corresponding amountCommitments) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably adversely impact in any material respect the ability of Parent to consummate the Merger or that would otherwise be expected to materially delay or prevent impede the Merger or (C) otherwise be reasonably expected to (I) prevent, impede or delay the consummation of the Merger and the other transactions contemplated by this Agreement, (II) make the funding of the Debt Financing (or satisfaction of as set forth in the conditions Debt Financing Commitments less likely to the Financing) on the Closing Date occur or (CIII) adversely impact the ability of Parent Parent, Merger Sub or Merger Sub, as applicable, Sub I to enforce its their rights against the other parties to the Debt Financing Letters Commitments or the definitive agreements with respect thereto. For the avoidance of doubt, but subject to the Financing. foregoing, Parent shall promptly deliver to the Company copies of any amendment, modificationmay amend, supplement, consent amend and restate, modify or waiver replace the Debt Financing Commitments as in effect at the date hereof (x) to add or under any replace lenders, lead arrangers, bookrunners, syndication agents or similar entities who had not executed the Debt Financing Letter or Commitments as of the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in date of this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, Agreement or (iiy) pay any material fees in excess to increase the amount of those Indebtedness contemplated by the Equity Funding Letter or Debt Financing Commitments. For purposes of this Section 5.15, references to “Debt Financing” shall include the financing contemplated by the Debt Commitment Letter Financing Commitments as permitted to be amended, supplemented or modified by this Section 5.15(a) (including and, if applicable, shall include any market Alternative Financing used to satisfy the obligations under this Agreement) and references to “flex” provisions contained therein).Debt Financing

Appears in 2 contracts

Sources: Merger Agreement (Aecom Technology Corp), Agreement and Plan of Merger (Urs Corp /New/)

Financing. (a) Each of Parent The Buyer and Merger the Acquisition Sub shall will use reasonable their best efforts to 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 proceeds of the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing LettersFinancing, including using reasonable their best efforts to (iA) consummate the Financing contemplated by the Commitment Letters at such time as all conditions set forth in Section 7.1 are satisfied (except for those requiring delivery of a certificate evidencing certain matters), (B) maintain the effectiveness of the Commitment Letters (and the term sheets and fee letters related thereto) in effect accordance with their respective terms, other than such amendments or modifications as would not reasonably be expected to impair the Buyer and comply with the Financing LettersAcquisition Sub’s ability to consummate the transactions contemplated hereby, (iiC) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined Financing contemplated by Parent to be reasonably likely to be necessary in connection the Commitment Letters consistent with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions contained therein, and (including market “flex” provisions) set forth in the Debt Commitment Letter), (iiiD) satisfy on a timely basis all conditions applicable precedent to Parent funding in such definitive agreements and Merger Sub in the Commitment Letters (and the term sheets and fee letters related thereto); provided that, notwithstanding the foregoing, the Buyer may terminate, or allow the termination of, the Debt Commitment Letter, if prior thereto or substantially concurrently therewith the Buyer enters into a replacement commitment letter that contains no conditions precedent to funding thereunder beyond (or materially and adversely modified from) those in the Debt Commitment Letter, and provides for financing in an amount that, when taken together with the amount of equity provided under the Equity Commitment Letter, is not less than that provided for in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver as of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless Agreement. For the avoidance of doubt, occurrence of the Financing and/or the Buyer’s receipt of the proceeds thereof shall not be a condition precedent to the obligations of the Buyer and the Acquisition Sub to effect the Merger. (b) The Company will use commercially reasonable efforts to assist and cooperate with the Buyer and the Acquisition Sub in connection with their efforts to obtain the proceeds of the Financing, including but not limited to using commercially reasonable efforts to provide information relating to the Company reasonably requested by the financial institution or institutions providing the Financing, using commercially reasonable efforts to make representatives of and advisors to the Company reasonably available in connection with syndication efforts regarding the Financing, and using commercially reasonable efforts to execute and deliver, and cause the Company’s Subsidiaries and its and their officers, to execute and deliver, customary certificates and other documents and instruments relating to guarantees, the pledge of collateral and other matters ancillary to the Debt Financing or Equity Financing is increased as may be reasonably requested by a corresponding amount) such the Buyer in connection with the Debt Financing; provided, however, that the aggregate amount no obligation of the Financing would Company or any of the Company’s Subsidiaries under any such certificate, document or instrument will be below effective until the amount Effective Time and none of the Company or any of its Subsidiaries will be required to pay any commitment or other similar fee or incur any other liability in connection with the Required Amount, (B) impose new or additional conditions precedent Debt Financing prior to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Effective Time.

Appears in 2 contracts

Sources: Merger Agreement (Witness Systems Inc), Merger Agreement (Verint Systems Inc)

Financing. (a) Each of Prior to the Closing, Parent and Merger Sub shall use their reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper advisable or advisable desirable to arrange and consummate and obtain the Financing on the terms and subject only conditions no less favorable to Parent and Merger Sub than those described in or contemplated by the conditions Commitment Letters and the Fee Letter (including the any “market “flex” provisions) set forth provisions that are contained in the Financing LettersFee Letter), including using reasonable best efforts to (i) maintain satisfy on a timely basis (taking into account the anticipated timing of the Marketing Period) all conditions applicable to Parent or Merger Sub set forth in effect the Commitment Letters and comply with the Financing LettersFee Letter (including definitive agreements related thereto) that are within its control, including the payment of any commitment, engagement or placement fees required as a condition to the Debt Financing, (ii) maintain in effect the Commitment Letters (subject to Parent’s right to amend, modify, supplement, restate, assign, substitute or replace the Commitment Letters in accordance herewith), comply with its obligations pursuant to the Commitment Letters, diligently enforce their rights under the Commitment Letters and, with respect to the Debt Commitment Letter, negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto on the terms and subject only conditions no less favorable to the conditions (including the market “flex” provisions) set forth Parent and Merger Sub than those described in or contemplated in the Debt Commitment Letter and the Fee Letter (including any “market flex” provisions contained in the Fee Letter), (iii) consummate the Financing at or prior to the Closing, (iv) ensure the participation by a Representative of Parent and Merger Sub in, and assistance by Representatives of Parent and Merger Sub with, the preparation of rating agency presentations, meetings with ratings agencies and meetings with prospective lenders and (v) comply with Merger Sub’s obligations under the Debt Commitment Letter and the Fee Letter. If funds in the amounts and on other the terms that, with respect to conditionality, are not less favorable set forth in a Debt Commitment Letter become unavailable to Parent or Merger Sub than on the terms and conditions (including any “market flex” provisions contained in the Fee Letter) contemplated in the Debt Commitment Letter and the Fee Letter (other than as a result of the Company’s breach of this Agreement, or if the Company’s failure to perform would be the sole cause of the conditions set forth in Section 7.01 or Section 7.02 not to be satisfied), Parent and Merger Sub shall promptly notify the Company of such fact and shall use their reasonable best efforts to obtain as promptly as practicable alternative debt financing (the “Alternative Financing”) in amounts, when added with the Equity Financing, sufficient to consummate the Transactions, including, for the avoidance of doubt, payment of the Required Amount and that would not (i) include any conditions precedent to the Debt Financing that are not contained in the Debt Commitment Letter and the Fee Letter that would reasonably be expected to (1) make the funding of the Debt Financing (or the satisfaction of the conditions to obtaining the Debt Financing) less likely to occur or (2) materially delay or prevent the Closing and (ii) otherwise reasonably be expected to materially delay or prevent the Closing; provided that Parent and Merger Sub shall not be required to accept any Alternative Financing having terms and conditions (including “market flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable less favorable to Parent and Merger Sub than those in the Financing Letters Debt Commitment Letter and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Fee Letter) (or; provided, further, that if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained proceed with such Alternative Financing, Parent and Merger Sub shall be subject to the same obligations with respect to such Alternative Financing as set forth in this Section 6.09(a) with respect to the Financing, and all references in this Agreement to the “Debt Financing”, “Financing”, “Debt Commitment Letter”, “Fee Letter” and “Commitment Letters” (and other like terms in this Agreement) shall be deemed to also include such Alternative Financing, as applicable. In the event all conditions applicable to the Commitment Letters have been satisfied or waived, Parent shall cause the Fund to fund the Equity Financing and shall use its reasonable best efforts to cause the Persons providing the Debt Financing to fund such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations Financing required to consummate the Offer Transactions on the Closing Date. (b) Upon written request of the Company, Parent shall keep the Company apprised (as promptly as possible, and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, in any event within forty-eight (v48) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vihours) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements of material developments relating to the Financing. ParentParent shall give the Company prompt written notice of any material adverse change with respect to the Financing. Without limiting the generality of the foregoing, Parent shall give the Company prompt written notice and, in any event, within forty-eight (48) hours, (i) of any breach, default, termination or repudiation by any party to any of the Commitment Letters or definitive agreements related to the Financing of which Parent or Merger Sub becomes aware, (ii) of the receipt of (A) any written notice or (B) other written communication, in each case from any Lender Related Party with respect to any (1) actual breach, default, termination or repudiation by any party to any of the Commitment Letters or definitive agreements related to the Financing of any provisions of the Commitment Letters or definitive agreements related to the Financing of which Parent or Merger Sub becomes aware or (2) material dispute or disagreement between or among any parties to the Commitment Letters or definitive agreements of which Parent becomes aware related to the Financing with respect to the obligation to fund any of the Financing or the amount of the Financing to be funded at the Closing and (iii) if at any time for any reason Parent believes in good faith that it will not be able to obtain all or any portion of the Financing on the terms and conditions, in the manner or from the sources contemplated by the Commitment Letters or definitive agreements related to the Financing such that it would not have amounts sufficient to consummate the Merger and the Guarantors shall notother Transactions, without the prior written consent including payment of the CompanyRequired Amount. As soon as reasonably practicable, agree but in any event within forty-eight (48) hours of the date that the Company delivers to Parent a written request, Parent shall provide any information reasonably requested by the Company relating to any circumstance referred to in clause (i), (ii) or permit (iii) of the immediately preceding sentence. Parent shall not replace, amend, supplement, modify or waive the Debt Commitment Letter or any termination of or amendment, supplement or modification to be made to, or grant any waiver provision of any provision under, the Financing Letters or the definitive agreements fee letter relating to the Financing if such terminationDebt Commitment Letter (it being understood that the existence or exercise of “market flex” provisions contained in the Fee Letter shall not constitute a replacement, amendment, supplement, modification or waiver would of the Debt Commitment Letter), without the Company’s prior written consent (Asuch consent not to be unreasonably withheld, or conditioned or delayed) reduce if such replacement, amendment, supplement, modification or waiver (x) reduces the aggregate amount of any portion of the Debt Financing (including by increasing changing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amountsimilar fees) such that Parent would not have amounts sufficient to consummate the aggregate amount Merger and the other Transactions, including payment of the Financing would be below the amount required to pay the Required Amount, (By) impose new amends the conditions precedent to the Debt Financing in a manner that adds additional conditions precedent to the Debt Financing, or additional otherwise expands, amends or modifies any of the conditions precedent to the availability of the Financing or otherwise expandDebt Financing, amend or modify any of the conditions precedent to the Financing in each case, in a manner that would reasonably be expected to (1) make the funding of the Debt Financing (or the satisfaction of the conditions to obtaining the Debt Financing) less likely to occur or (2) materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (Cz) adversely impact impacts the ability of Parent or Merger Sub, as applicable, Sub to enforce its rights against the other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (as it may be replaced, amended, supplemented, modified or waived in accordance with this Section 6.09); provided that Parent and Merger Sub may replace, amend, supplement or modify the Debt Commitment Letter to add lenders, lead arrangers, bookrunners, syndication agents or similar entities (or titles with respect to such entities) that have not executed the Debt Commitment Letter as of the date of this Agreement (it being understood that the aggregate commitments of the lenders party to the Debt Commitment Letter prior to such amendment, supplement or modification may be reduced in the amount of such additional party’s commitments) (provided that, except as provided for in the Debt Commitment Letter with respect to Additional Committing Lenders (as defined in the Debt Commitment Letter), no such addition shall relieve the original Committed Lenders of their obligations under the Debt Commitment Letter prior to the funding of the Debt Financing). Parent shall promptly provide to the Company true and complete copies of any commitment letter and fee letter (which, in the case of a fee letter, may redact Permissible Redacted Terms) associated with a replacement Debt Financing or Alternative Financing as well as any amendment, supplement, modification or waiver of any Debt Commitment Letter or any related fee letter (which, in the case of a fee letter, may redact Permissible Redacted Terms), that is permitted hereunder. (c) Parent shall not replace, amend, supplement, modify or waive or agree to replace, amend, supplement, modify or waive (in any case whether by action or inaction), any term of the Equity Commitment Letter without the prior written consent of the Company (such consent not to be unreasonably withheld, conditioned or delayed). Parent shall promptly (and in any event within one (1) Business Day) notify the Company of (i) the expiration or termination (or attempted or purported termination, whether or not valid) of the Equity Commitment Letter or (ii) any refusal by the Fund to provide the full financing contemplated by the Equity Commitment Letter. (d) Prior to the Closing, the Company shall use its reasonable best efforts to provide, and to cause the Company Subsidiaries and its and their respective Representatives to use their reasonable best efforts to provide, to Parent and Merger Sub, in each case at Parent’s sole cost and expense (subject to the expense reimbursement provision in the last sentence of this Section 6.09(d)), such cooperation as is customary and reasonably requested by Parent in connection with the arrangement of the Debt Financing or any customary high-yield non-convertible bonds being issued in lieu of all or any portion of the Debt Financing, including by: (i) assisting in preparation for and participating (including causing the Company’s and Company Subsidiaries’ management teams, with appropriate seniority and expertise to participate) in a reasonable number of investor and lender meetings (including a reasonable and limited number of customary one on one meetings and calls that are requested in advance with or by the parties acting as lead arrangers, bookrunners or agents for, and prospective lenders and purchasers of, the Debt Financing), lender due diligence presentations, drafting sessions, road shows and presentations, including sessions with rating agencies in connection with the Debt Financing or any market customary high-yield non-convertible bonds being issued in lieu of all or any portion of the Debt Financing at reasonable times and locations mutually agreed, and assisting Parent in obtaining ratings in connection with the Debt Financing or any customary high-yield non-convertible bonds being issued in lieu of all or any portion of the Debt Financing; (ii) assisting Parent, Merger Sub and the Lender Related Parties with the preparation by Parent, Merger Sub and the Lender Related Parties of materials for rating agency presentations, lender presentations, high-yield road show presentations and offering memoranda, bridge teasers, private placement memoranda, bank information memoranda and similar marketing documents required in connection with the Debt Financing or any customary high-yield non-convertible bonds being issued in lieu of all or any portion of the Debt Financing; provided that (i) the Company’s obligation to provide information for such materials shall be limited to information about the Company and the Company Subsidiaries and (ii) Parent and Merger Sub shall be solely responsible for, 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 (collectively, the “flexDebt Marketing Materials”), including (A) furnishing business and financial projections with respect to the Company on a consolidated basis reasonably requested by Parent or Merger Sub and (B) furnishing records, data or other information with respect to the Company and the Company Subsidiaries necessary to support any statistical information or claims relating to the Company and the Company Subsidiaries appearing in the Debt Marketing Materials; (iii) executing and delivering as of (but not prior to) the Closing any pledge and security documents, other definitive financing documents for the Debt Financing or any customary high-yield non-convertible bonds being issued in lieu of all or any portion of the Debt Financing, or other certificates or documents and back up therefor and for legal opinions as may be reasonably requested by Parent (including (x) solely to the extent such Person has been appointed as chief financial officer or treasurer (or other comparable officer) of the Borrower (as defined in the Debt Commitment Letter) on the Closing Date, executing and delivering a certificate of the chief financial officer or treasurer (or other comparable officer) of the Borrower substantially in the form attached as Annex I to Exhibit E to the Debt Commitment Letter certifying the solvency, after giving effect to the Transactions, of the Borrower and its subsidiaries on a consolidated basis and (y) any certificate or other document reasonably requested by Parent as backup for legal opinions to be provided in connection with the transactions contemplated by Section 6.12)) and otherwise reasonably facilitating the granting of guarantees and the pledging of collateral; provided that (A) none of the documents or certificates shall be executed and/or delivered except in connection with the Closing, (B) the effectiveness thereof shall be conditioned upon, or become operative after, the occurrence of the Closing (in the case of each of the foregoing clauses (A) and (B), other than the execution of (1) the authorization letters set forth in Section 6.09(d)(vi) below, (2) the representation letters required by the Company’s auditors in connection with the delivery of “comfort letters” provisions contained therein).set forth in Section 6.09(d)(ix) below, (3) the prepayment, termination or redemption notices set forth in Section 6.09(d)(v) below, (4) a customary solicitation agent agreement in connection with any consent solicitation or change of control tender offer in respect of the 2021 Notes, the 2023 Notes or the 2025 Notes set forth in Section 6.12, (5) a customary dealer manager agreement in connection with any tender offer, exchange offer or change of control tender offer in respect of the 2021 Notes, the 2023 Notes or the 2025 Notes set forth in Section 6.12, (6) any certificate or other document reasonably requested by Parent as backup for legal opinions to be provided in connection with the transactions contemplated by Section 6.12, (7) customary ancillary agreements and closing deliverables for any consent solicitation, tender offer, exchange offer, change of control tender offer, optional redemption, satisfaction and discharge or defeasance in respect of the 2021 Notes, the 2023 Notes or the 2025 Notes set forth in Section 6.12, (8) any approvals or authorizations by the board of directors (or equivalent bodies) of the Company or any Company Subsidiary in connection with any consent solicitation, tender offer, exchange offer, change of control tender offer, optional redemption, s

Appears in 2 contracts

Sources: Agreement and Plan of Merger (Anixter International Inc), Agreement and Plan of Merger (Anixter International Inc)

Financing. (a) Each of Parent and Merger Sub shall not permit any amendment or modification to be made to, or any waiver of any provision or remedy pursuant to, the Financing Letters if such amendment, modification or waiver would or would reasonably be expected to (i) reduce the aggregate amount of the Debt Financing unless the Equity Financing is increased by an equivalent amount; (ii) impose new or additional conditions or otherwise expand, amend or modify any of the conditions to the receipt of the Financing in a manner that would reasonably be expected to delay or prevent in any material respect the ability of Parent to consummate the Merger; or (iii) adversely impact the ability of Parent, Merger Sub or the Company, as applicable, to enforce its rights against the other parties to the Financing Letters. Notwithstanding the foregoing, assignments consummated pursuant to the terms of the Financing Letters are permitted. (b) Each of Parent and Merger Sub shall use commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or and advisable to consummate arrange and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisionsflex provisions applicable thereto) set forth described in the Financing Letters, including using commercially reasonable best efforts to (i) maintain in effect and comply the Financing Letters in accordance with the Financing Letters, terms and subject to the conditions thereof; (ii) negotiate negotiate, execute and enter into deliver definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined Financing contemplated by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Letters on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” the flex provisions) set forth in contemplated by the Debt Commitment Letter), Financing Letters; (iii) satisfy on a timely basis all conditions to funding that are applicable to Parent and Merger Sub in the Financing Letters and the and/or definitive agreements related thereto for the Financings; (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to iv) upon satisfaction of the conditions set forth in the Equity Funding Letter) (orFinancing Letters and this Agreement, if necessary or deemed advisable by Parent, seek including the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver expiration of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Mergerwaiting period, consummate the Financing at or prior to Closing; and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce comply in all material respects with its rights under the Financing Letters and the definitive agreements relating obligations pursuant to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations Letters; provided, however, that under the Financing Letters and the definitive agreements relating to the Financing. no circumstances shall Parent, Merger Sub and the Guarantors shall not, without the prior written consent or any other Parent Related Party be required to commence or sustain a Legal Proceeding against any of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing Sources in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements connection with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter Transactions or the Debt Commitment Letter (including any market “flex” provisions contained therein)Commitment.

Appears in 2 contracts

Sources: Merger Agreement (Evans Hugh D), Merger Agreement (Anaren Inc)

Financing. (a) Each of Parent and Merger Sub The Buyer Parties shall use their commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable necessary to consummate and obtain arrange the Financing Debt Refinancing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersRefinancing Commitment Letter, including using their commercially reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, Refinancing Commitment Letter; (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub the Buyer Parties to obtaining the Debt Refinancing as set forth in the Financing Letters Refinancing Commitment Letter that are within its control; (iii) negotiate and enter into definitive agreements with respect thereto on the terms and conditions (including, if necessary, the flex provisions) contemplated by the Refinancing Commitment Letter or on other terms no less favorable to Buyer; (iv) comply with the Buyer’s obligations under the Refinancing Commitment Letter and the definitive agreements related thereto with respect thereto; (including by consummating v) subject to the Equity Financing terms and conditions contemplated in the Refinancing Commitment Letter, consummate the Debt Refinancing at or prior to the Closing on the terms Effective Time; and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (vvi) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the FinancingRefinancing Commitment Letter. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of If any portion of the Financing Debt Refinancing becomes unavailable on the terms and conditions (including by increasing the amount of fees to be paid or original issue discount as compared to flex provisions) contemplated in the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters Refinancing Commitment Letter or the definitive agreements with respect to thereto, the Financing. Parent Buyer Parties shall promptly deliver notify the MLP Parties and use their commercially reasonable efforts to amend, modify, supplement, alter, restate, substitute or replace the Company copies of Debt Refinancing with other alternative financing, on terms no less favorable to Buyer, as promptly as possible; provided, however, that the Buyer Parties shall not permit any amendment, modification, supplement, consent alteration, restatement, substitution or waiver to or under any Financing Letter or replacement of the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Refinancing Commitment Letter or the Debt Refinancing on terms that are less favorable to Buyer, without the prior consent of the MLP Parties, such consent not to be unreasonably withheld, delayed or conditioned. In such event, the term “Refinancing Commitment Letter” as used herein shall be deemed to include the amended, modified, supplemented, altered, restated, substituted or replacement, commitment letter. The Buyer Parties shall promptly (and in any event within two Business Days) notify the MLP Parties: (A) of any default or breach by any party to the Refinancing Commitment Letter or definitive documents related to the Debt Refinancing of which the Buyer Parties are aware; (including B) of the receipt of any market “flex” provisions contained therein)written notice from any party to the Refinancing Commitment Letter with respect to (1) any default, breach, termination or repudiation by any party to the Refinancing Commitment Letter or definitive documents related to the Debt Refinancing or (2) any material dispute or disagreement between or among parties to the Refinancing Commitment Letter or definitive documents related to the Debt Refinancing of which the Buyer Parties become aware; and (C) if for any reason the Buyer Parties determine in good faith that they will not be able to obtain all or any portion of the Debt Refinancing on the terms, in the manner or from the sources contemplated by the Refinancing Commitment Letters. The Buyer Parties shall keep the MLP Parties informed on a reasonably current basis of the status of their efforts to arrange the Debt Refinancing and provide copies of all draft and executed documents related to the Debt Refinancing to the MLP Parties. In the event that the Buyer Parties are unable to obtain the Debt Refinancing or alternative financing on terms no less favorable to Buyer, the Buyer Parties will obtain an amendment to the Buyer Credit Agreement so that the Buyer will be permitted thereunder to, and will have sufficient funds available thereunder to, refinance the MLP Credit Agreements at the Closing; provided, however, that the Buyer Parties shall be permitted to pay any and all fees to the lenders and administrative agent in connection with any such amendment without the prior consent of the MLP Parties.

Appears in 2 contracts

Sources: Merger Agreement (Inergy L P), Merger Agreement (Inergy Midstream, L.P.)

Financing. (a) Each of Parent and Merger Holding Company shall cause Holdings and Sub shall to use its reasonable best efforts to 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 full amount of the terms and subject only to the conditions (including the market “flex” provisions) set forth financing contained in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply Commitments consistent with the Financing Letters, (ii) negotiate terms specified and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub described in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior Commitments delivered to the Closing on the terms Company by Parent Group; provided, however, it is expressly understood and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to agreed that Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger SubGroup’s obligations to consummate the Offer Merger on the terms and conditions specified herein are not subject to a financing condition or the results of Parent Group’s efforts to obtain the full amount of the financing required to effect the Closing pursuant to Section 1.03 hereof and to satisfy their obligations under Article II hereof, including, depositing (or causing to be deposited) with the Paying Agent and LaSalle sufficient funds to make all payments pursuant to Article II hereof. (b) Parent Group will keep the Company reasonably informed of the status of the Financing Commitments and the Available Cash and any material developments with respect thereto. (c) The Company shall provide, and will cause its officers and employees to provide, all necessary cooperation and information in connection with the arrangement and obtaining of the financing contained in the Financing Commitment as may be reasonably requested by Parent, including, without limitation, facilitating customary due diligence and arranging senior officers, as selected by Parent, to meet with prospective lenders and investors in customary presentations (including “road show” presentations and sessions with rating agencies), cooperation in the preparation and filing of any offering documents, the issuance of any comfort letter, the receipt of any auditors’ consents, certifications of the chief financial officer with respect to solvency matters, the delivery of consolidated pro forma financial information and the use of commercially reasonable efforts to cause each independent auditor to so cooperate or otherwise. Parent shall not amend, supplement, modify or terminate (whether unilaterally or by mutual consent), in a manner either materially adverse to the Company or to the consummation of the Merger, consummate the any Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the ClosingCommitment, (v) enforce its or waive any rights under the Financing Letters and the definitive agreements relating thereunder, prior to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall nottermination of this Agreement, without the prior written consent of the Company. (d) The Company acknowledges that, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating prior to the Financing if such terminationEffective Time, amendmentParent may, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such Parent may request that the aggregate amount of the Financing would be below the amount required to pay the Required AmountCompany and its Subsidiaries, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements take actions with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek prepaying, redeeming and/or obtaining the Equity Financing from any source other than consent of the counterparties to, or holders of the Company’s outstanding Senior Notes in any amount in excess accordance with the terms of that contemplated by, the Equity Funding Letter, indenture pursuant to which such notes were issued or (ii) pay restructuring the Company Credit Facility. The Company agrees to cooperate with such efforts and provide such information or take such actions as may be reasonably requested by Parent Group with respect thereto, including call for prepayment or redemption, or to renegotiate, as the case may be, the Senior Notes; provided, that (i) no such prepayment or redemption shall actually be made until substantially contemporaneous with or after, or, in the case of the call for prepayment, immediately prior to or contemporaneous with, the Effective Time and (ii) no such call for prepayment or redemption shall be required prior to the Effective Time unless the Company is permitted to condition such call for prepayment or redemption on the occurrence of the Effective Time or to withdraw such call for prepayment or redemption if the Effective Time shall not have occurred on or prior to the applicable scheduled prepayment or redemption date; and provided, further, that the Company shall not be required to enter into any material fees in excess of those contemplated by bank commitment that will become effective prior to the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Effective Time. .

Appears in 2 contracts

Sources: Merger Agreement (Northwestern Corp), Merger Agreement (Northwestern Corp)

Financing. (a) Each of Parent and Merger Sub shall use reasonable best efforts to 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 a timely basis to facilitate the Closing when required by Section 2.01 on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Commitment Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Commitment Letters, (ii) ensure the accuracy of all representations and warranties of Parent set forth in the Commitment Letters, (iii) comply with all covenants of Parent set forth in the Commitment Letters, (iv) satisfy (or obtain waivers to satisfy) on, or prior to, the Closing Date (and, in any event, prior to the Outside Date), all conditions to funding in the Commitment Letters and such definitive agreements to be entered into pursuant thereto applicable to Parent that are within Parent’s control, (v) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth described in the Debt Commitment Letter), Letters in all material respects and (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (vvi) enforce its rights under the Commitment Letters. In the event that all conditions precedent in the Financing Commitments have been satisfied, or upon funding will be satisfied, Parent will use its reasonable best efforts to cause the Financing Sources party to such Commitment Letters to fund on the Closing Date the full amount of the Financing. (b) If all or any portion of the Financing becomes unavailable on the terms and conditions contemplated in the applicable Commitment Letter (other than as a result of (i) a breach by Member of this Agreement which prevents or renders impracticable the consummation of the Financing or (ii) the termination of the Commitment Letters pursuant to the terms thereof): (x) Parent shall notify the Member in writing as soon as reasonably practicable; and (y) Parent shall use reasonable best efforts to arrange to obtain any such unavailable portion from alternative sources (the “Alternative Financing”) (such alternative sources, together with the Lenders and any other parties to any joinder agreements, credit agreements or other definitive agreements with respect to the Commitment Letters, the “Financing Sources”), which Alternative Financing (A) shall be on terms that are not materially less favorable, taken as a whole, to Parent than those in the applicable Commitment Letter (including flex provisions) as in effect on the date hereof and (B) shall not contain any terms that would not be permitted to be effected by an amendment, modification or waiver of the applicable Commitment Letter pursuant to Section 6.03(c). Notwithstanding anything to the contrary in this Agreement, in no event shall the “reasonable best efforts” of Parent be deemed or be construed to require Parent to, and Parent shall not be required to (i) pay any fees in the aggregate in excess of those contemplated by the Commitment Letters as in effect on the date hereof (including any flex provisions contained therein) or (ii) agree to conditionality or economic terms of the Financing (or any Alternative Financing) that are materially less favorable than those contemplated by the Commitment Letters as in effect on the date hereof (including any flex provisions contained therein). (c) Parent shall keep the Member informed on a reasonably current basis in reasonable detail with respect to the Financing (and any Alternative Financing), and shall provide the Member with prompt notice if it becomes aware of any material adverse change with respect to the availability of the Financing (or any Alternative Financing). Without limiting the generality of the foregoing, Parent shall notify the Member as promptly as reasonably practicable, and in any event within five (5) Business Days, (i) if there exists any material breach, material default, repudiation, cancellation or termination by any party to a Commitment Letter or any definitive document related to the Financing, in each case, of which Parent obtains knowledge, (ii) of the receipt by Parent of any written notice or other written communication from any Person with respect to (x) any material breach, material default, repudiation, cancellation or termination by any party to a Commitment Letter or any definitive document related to the Financing or (y) a material dispute or disagreement between or among Parent, on the one hand, and any parties to any Commitment Letter, or any definitive document related to the Financing, on the other hand, in each case, with respect to the obligation to fund the Financing at Closing in an amount, together with Parent’s other sources of funds, at least equal to the Required Amount on the terms and conditions set forth in the applicable Commitment Letters; provided that in no event will Parent be under any obligation to disclose any information pursuant to this Section 6.03 that is subject to (I) attorney-client or similar privilege or (II) a binding confidentiality obligation that would prohibit the disclosure of such information to the Member pursuant to its terms. Parent may amend, replace, supplement, modify or waive any provision of any Commitment Letter or definitive agreements relating to any Financing to (A) add and/or replace lenders, arrangers, bookrunners, agents or similar entities, as applicable, if the addition and/or replacement of such Persons would not, individually or in the aggregate, prevent, significantly delay or materially impair the availability of the Financing or the consummation of the transactions contemplated by this Agreement, (B) modify pricing and/or implement or exercise any of the flex provisions contained in the Commitment Letters or (C) reallocate commitments or assign or reassign titles or roles to, or between or among, any parties to the Commitment Letters. Parent shall not permit, and (vi) otherwise comply with Parent’s and shall not permit Holdco or Merger Sub’s covenants and other obligations under the Financing Letters and the Sub to make, any amendment, replacement, supplement, modification or waiver of any provision of any Commitment Letter or any definitive agreements agreement relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the CompanyMember, agree to or permit any termination of or if such amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendmentreplacement, supplement, modification or waiver would (Ax) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that decrease the aggregate amount of the Financing would be below the an amount required to pay that, when combined with Parent’s other sources of funds, is less than the Required Amount, Amount or (By) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify expand any of the conditions precedent to the receipt of any of the Financing in a manner that would reasonably be expected to prevent or materially impede or delay or prevent the funding consummation of the transactions contemplated by this Agreement as and when required by Section 2.01. Parent shall request that each of the Financing Sources provide, at least thirty (or satisfaction of the conditions 30) days prior to the FinancingClosing Date, a list of each document and other item of information about the Group Companies that the Financing Sources have reasonably determined (as of such date) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, is required to enforce its rights against other parties comply with applicable Law to the Financing Letters or extent required under applicable “know your customer” and anti-money laundering rules and regulations, including the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. USA PATRIOT Act. (d) Notwithstanding anything to the contrary in this Agreement, nothing contained a violation of Section 6.03(a), (b) and/or (c) shall not give rise to a termination right in favor of the Member or otherwise permit the Member to decline to consummate the Closing on the terms and conditions set forth in this Section 5.04 shall requireAgreement if Parent, Holdco and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed each satisfy its obligations to require, either Parent or Merger Sub consummate the Closing as and when required pursuant to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)this Agreement.

Appears in 2 contracts

Sources: Master Transaction Agreement (RTI Surgical Holdings, Inc.), Master Transaction Agreement (Rti Surgical, Inc.)

Financing. (a) Each of Parent and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable reasonably necessary to consummate and obtain the Financing on substantially the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitment Letter, as adjusted by the Agreed Marketing Terms, if any, including using reasonable best efforts to (i) maintain in effect and comply the Commitment Letter and, if entered into prior to the Closing, the definitive documentation with respect to the Financing Letterscontemplated by the Commitment Letter (including “flex” provisions contained therein) (the “Definitive Financing Agreements”), (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt execute Definitive Financing Agreements on the terms and subject only to conditions contemplated by the conditions Commitment Letter (including the market any “flex” provisions) set forth provisions in connection therewith), as adjusted by the Debt Commitment Letter (or on other terms thatAgreed Marketing Terms, with respect if any, and, upon execution thereof, deliver a copy thereof to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter)Company, (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub its Subsidiaries in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)and Definitive Financing Agreements that are within its control and comply with its obligations thereunder, and not take any action that would prevent the availability of the Financing, (iv) upon seek to enforce its rights under the satisfaction Commitment Letter and Definitive Financing Agreements in the event of a breach or waiver of failure to fund by the financing sources that materially impedes or materially delays Closing, including by seeking specific performance against, the parties thereto (including the Commitment Party under the Commitment Letter). In the event that all conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and have been satisfied, or upon funding will be satisfied, Parent shall use its reasonable best efforts to cause the lenders and the other Persons committing to fund the providing such Financing to fund on the Closing Date (including by seeking specific performance to cause such lenders and other Persons to fund such Financing) the portion of the Financing at required to consummate the Closing, (v) enforce its rights under the Financing Letters Merger and the definitive agreements relating transactions contemplated by this Agreement. Parent shall have the right from time to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating time to the Financing. Parentamend, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendmentreplace, supplement or modification to be made tootherwise modify, or grant waive any waiver of any provision its rights under, the Commitment Letter or Definitive Financing Letters Agreements, and/or substitute other debt or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification equity financing for all or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing from the amount same and/or alternative financing sources, provided that any such amendment, replacement, supplement or other modification to or waiver of fees to be paid any provision of the Commitment Letter or original issue discount as compared to the fees and original issue discount contemplated by Definitive Financing Agreements that amends the Financing Letters on the date and/or substitution of this Agreement unless the Debt Financing all or Equity Financing is increased by a corresponding amount) such that the aggregate amount any portion of the Financing would be below the amount required to pay the Required Amount, shall not (BA) impose new expand upon or additional conditions precedent amend in any way that is adverse to the availability of the Financing or otherwise expand, amend or modify any of Company the conditions precedent to the Financing as set forth in a manner that would the Commitment Letter or (B) be reasonably be expected to prevent or materially impede or materially delay or prevent the funding availability of the Financing (or satisfaction and/or the consummation of the Merger and the transactions contemplated by this Agreement. Parent shall be permitted to reduce the amount of Financing under the Commitment Letter or Definitive Financing Agreements 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 Subsidiary, including cash on hand and marketable securities of Parent, the Company and their respective Subsidiaries, to consummate the Merger and the other transactions contemplated by this Agreement (including the payment of any Required Amounts), and provided, further, that such reduction shall not (A) expand upon or amend in any way that is adverse to the Company the conditions precedent to the Financing as set forth in the Commitment Letter or (B) be reasonably expected to prevent or materially impede or materially delay the availability of such reduced Financing and/or the consummation of the Merger and the 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 any “flex” provisions in connection therewith) contemplated in the Commitment Letter, as adjusted by the Agreed Marketing Terms, if any, and such portion is reasonably required to consummate the Merger and the other transactions contemplated by this Agreement (including the payment of any Required Amounts), Parent shall use its reasonable best efforts to arrange and obtain as promptly as practicable following the occurrence of such event alternative financing from the same and/or alternative financing sources in an amount sufficient to consummate the Merger and the other transactions contemplated by this Agreement (including the payment of any Required Amounts), upon terms and conditions (including any “flex” provisions) not materially less favorable, in the aggregate, to Parent than those in the Commitment Letter, as adjusted by the Agreed Marketing Terms, if any, and, if obtained, will provide the Company with a copy of the documentation with respect to such alternative financing. Parent shall give the Company prompt oral and written notice (but in any event not later than 48 hours) after Parent becoming aware (i) of the occurrence of any material breach by any party to the Commitment Letter or Definitive Financing Agreements or of any condition not likely to be satisfied, (ii) of any termination or waiver, amendment or other modification of the Commitment Letter, (iii) that any of the Financing Parties no longer intends to provide the Financing or (iv) that any portion of the Financing is not available to consummate the Merger. Parent shall keep the Company informed on a reasonably current basis of the status of its efforts to arrange, obtain and/or consummate the Financing and shall provide copies of the principal documents related to the Financing (excluding fee letters and engagement letters, except to the extent that such documents contain any conditions to funding or “flex” provisions (excluding provisions related solely to fees and economic terms (other than covenants) agreed to by the Financingparties)) on a periodic basis of no less frequently than once a month and as may otherwise be reasonably requested by the Closing Date or (C) adversely impact Company. In the ability of event that Parent or Merger Sub, as applicable, commences an action to seek specific performance to enforce its rights against other parties to under the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Commitment Letter or the definitive agreements relating Definitive Financing Agreements and/or cause the financing sources to fund the Financing (any such action, a “Financing Action”), Parent shall (x) keep the Company reasonably informed of the status of the Financing Action and (y) at the reasonable request of the Company, make Parent’s employees and legal advisors reasonably available to discuss the status of, and material developments with respect to, the Financing Action (subject in all cases to preserving all legal privileges). For the avoidance of doubt, the syndication of the Financing to the Financing promptly upon execution thereof. Notwithstanding anything extent permitted by the Commitment Letter shall not be deemed to the contrary in violate Parent’s obligations under this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).

Appears in 2 contracts

Sources: Merger Agreement (RiskMetrics Group Inc), Merger Agreement (MSCI Inc.)

Financing. (a) Each of Prior to and at the Closing, Parent and Merger Sub shall use its commercially reasonable best efforts to take, and shall cause each of its Subsidiaries to use their respective commercially reasonable efforts to take, and shall cause their respective Affiliates to use their respective commercially reasonable efforts to 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 proceeds of the Financing on the terms and subject only to the conditions (including the market “flex” provisions) flex provisions set forth in the Financing LettersRedacted Fee Letter) described in the Commitment Letters as promptly as practicable and on a timely basis but in any event no later than the Closing Date, including using reasonable best efforts to by (i) maintain maintaining in effect (subject to any modifications that are not Prohibited Modifications) and comply complying with the Financing Commitment Letters, (ii) negotiate negotiating and enter entering into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with Financing (the funding of the Debt Financing“Definitive Agreements”) with respect to the Debt Financing on the terms and subject only to conditions contained in the conditions Commitment Letters (including including, as necessary, the market “flex” provisions) provisions set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms Redacted Fee Letter) and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter)without any Prohibited Modification, (iii) satisfy satisfying (and causing its Affiliates to satisfy) on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Commitment Letters and the definitive agreements related thereto (including by consummating Definitive Agreements that are within the Equity Financing at or prior to the Closing on the terms control of Parent and subject to the conditions set forth in the Equity Funding Letter) complying with its obligations thereunder (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent Parent, REIT Merger Sub and OP Merger Sub contained in such Debt Commitment Letter Letters or such definitive agreements related theretoDefinitive Agreements that are within the control of Parent), (iv) upon accepting (and complying with) to the satisfaction or waiver fullest extent required by the Debt Commitment Letter all “flex” provisions contemplated by the Debt Commitment Letter and the Debt Financing to the extent that such “flex” provisions are exercised in accordance with the terms thereof, and (v) complying with its covenants and other obligations under the Commitment Letters and the Definitive Agreements. Without limiting the generality of the foregoing, in the event that (x) all of the conditions to Parent’s, REIT Merger Sub’s and OP Merger Sub’s obligations to consummate the Offer transactions contemplated by this Agreement shall be satisfied and (y) all conditions contained in the MergerCommitment Letters or the Definitive Agreements (other than the consummation of the Mergers, consummate those conditions that by their nature are to be satisfied at the Financing Closing (but subject to the actual satisfaction of such conditions at Closing) and those conditions the failure of which to be satisfied is attributable to a breach by Parent of its representations, warranties, covenants or agreements contained in this Agreement, and other than, with respect to the Debt Financing, the availability of the Equity Financing) have been satisfied, Parent shall fully enforce the counterparties’ obligations under the Commitment Letters and cause the lenders Equity Investors to, and shall use reasonable best efforts to cause the other Persons committing Debt Financing Entities to, comply with their respective obligations thereunder, including to fund the Financing (provided, that, in no event shall Parent, REIT Merger Sub and OP Merger Sub be required to fund pursue any litigation against any Debt Financing Source to enforce any such Debt Financing Source’s obligations under the Financing Debt Commitment Letter). (b) Prior to and at the Closing, (v) enforce neither Parent nor any of its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall notSubsidiaries shall, without the prior written consent (not to be unreasonably withheld, conditioned or delayed) of the CompanyCompany permit, consent to or agree to or permit any termination of or amendment, supplement replacement, supplement, termination or modification to be made to, or grant any waiver of of, any provision or remedy under, the Financing Commitment Letters or the definitive agreements relating to the Financing Definitive Agreements if such terminationamendment, amendmentreplacement, supplement, modification modification, waiver or waiver would remedy could be reasonably expected to (Ai) reduce (or could have the effect of reducing) the aggregate principal amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount discount) from that contemplated by the Financing Letters on Commitments delivered as of the date of this Agreement hereof other than as contemplated by Section 5.11(e) hereof unless (A) with respect to the Debt Financing, an alternative source of Equity Financing or Equity Financing other financing is increased by a corresponding amount) such that , so long as the aggregate amount terms thereof are not of the type that would constitute a Prohibited Modification under subclause (ii) or (iii) below, and (B) with respect to the Equity Financing, the Debt Financing or Alternative Financing is increased by an amount that, when taken together with the Financings, is equal to at least the Financing Amounts, so long as the terms thereof are not of the type that would be below the amount required to pay the Required Amountconstitute a Prohibited Modification under subclause (ii) or (iii) below, (Bii) materially adversely affect the ability of Parent, REIT Merger Sub or OP Merger Sub, as applicable, to enforce its rights against other parties to the Commitment Letters or the Definitive Agreements as so amended, replaced, supplemented or otherwise modified or (iii) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing Financing, or otherwise expand, amend or modify any other provision of the Commitment Letters or Definitive Agreements, in each case, in a manner that would could otherwise reasonably be expected to prevent, materially impede or materially delay or prevent the consummation of the funding of the Financing (or the satisfaction of the conditions to obtaining any portion of the Financingfinancing) on (the Closing Date or effects described in clauses (Ci) adversely impact through (iii), collectively, the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing“Prohibited Modifications”). Parent shall promptly (and in any event, within one (1) Business Day) deliver to the Company true and complete copies of any such amendment, modificationreplacement, supplement, termination, modification, consent or waiver to or under any Financing Commitment Letter or any Definitive Agreement promptly upon the definitive agreements relating execution thereof, in each case, other than any such amendment, replacement, supplement, modification, consent or waiver that (x) amends or replaces the Debt Commitment Letter solely to add lenders, lead arrangers, bookrunners, syndication agents or similar entities who had not executed the Debt Commitment Letter as of the date hereof, or (y) is otherwise ministerial or administrative in nature. (c) In the event that any portion of the Financing becomes unavailable and, as a result thereof, the aggregate amount of the Financing available to Parent on the Closing Date, shall be less than the Financing Amounts, Parent shall (i) promptly (and in any event, within one (1) Business Day) notify Company in writing of such unavailability and (ii) use commercially reasonable efforts, and cause each of its Subsidiaries to use their commercially reasonable efforts, to arrange and obtain, as promptly as practicable following the occurrence of such event (and in any event, no later than the Closing Date), alternative financing for any such unavailable portion from the same or alternative sources (the “Alternative Financing”) in an amount sufficient, when taken together with the available portion of the Financing, to consummate the transactions contemplated by this Agreement and to pay the Financing Amounts and which does not include any terms or conditions that, if included in an amendment to the Financing, would be Prohibited Modifications or terms or conditions to the consummation of such Alternative Financing promptly upon execution thereofthat are more onerous to Parent than the conditions set forth in the Commitment Letters as of the date of this Agreement; provided, that, Parent shall not be required to seek or obtain any such Alternative Financing having terms and conditions less favorable to Parent, REIT Merger Sub or OP Merger Sub than the terms and conditions set forth in the Debt Commitment Letter (as determined in the reasonable judgment of Parent; provided further, that, for the avoidance of doubt, any financing that has higher pricing, interest rates, fees or other yield than as set forth in the Debt Commitment Letter after giving effect to the market flex provisions therein shall be deemed less favorable to Parent, REIT Merger Sub and OP Merger Sub). In the event that any Alternative Financing is obtained and any new debt commitment letters are entered into in accordance with this Section 6.14(c), Parent shall deliver to Company true and complete copies of all contracts, agreements or other arrangements (including Redacted Fee Letters) pursuant to which any such alternative source shall have committed to provide any portion of the Financing. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 6.14 shall require, and in no event shall the commercially reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties toEquity Investors, or in any amount in excess of that contemplated by, by the Equity Funding Commitment Letters (provided, for the avoidance of doubt, that Parent shall not be required to seek Equity Financing from an Equity Investor in an amount in excess of that contemplated by such Equity Investor’s respective Equity Commitment Letter, ) or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter Commitment Letters. (d) Parent shall provide Company with prompt written notice (and in any event, within one (1) Business Day) (i) of any actual, or threatened in writing, breach, default (or any event that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any breach or default), cancellation, termination or repudiation by any party to the Commitment Letters or any Definitive Agreement, in each case, of which Parent, REIT Merger Sub or OP Merger Sub becomes aware, and a copy of any written notice or other written communication from any Debt Financing Source, Equity Investor or other financing source with respect to any actual or threatened breach, default, cancellation, termination or repudiation by any party to the Commitment Letters or any Definitive Agreement of any provision thereof, (ii) any termination, cancellation or repudiation by any party to any of the Commitment Letters or Definitive Agreements of which Parent, REIT Merger Sub or OP Merger Sub becomes aware, (iii) of the receipt by Parent, REIT Merger Sub or OP Merger Sub of any notice or other communication from any Person with respect to any material dispute or disagreement between or among parties to any of the Debt Commitment Letter Letter, Equity Commitment Letters or the Definitive Agreements with respect to the obligation to fund the Financing or the amount of the Financing to be funded at the Closing (including but excluding ordinary course negotiations), and (iv) if for any market reason Parent, REIT Merger Sub, OP Merger Sub or any of their Affiliates believes in good faith that (x) there is (or there is likely to be) a material dispute or disagreement between or among parties to any of the Debt Commitment Letter, Equity Commitment Letters or the definitive documents related to the Financing with respect to the obligation to fund the Financing or the amount of the Financing to be funded at the Closing (but excluding ordinary course negotiations) or (y) there is a reasonable likelihood that the Financing will not be available on the terms, in the manner or from the sources contemplated by the Commitment Letters or any Definitive Agreements. As soon as reasonably practicable, Parent, REIT Merger Sub and OP Merger Sub shall provide any information reasonably requested by Company relating to any circumstance referred to in the immediately preceding sentence. Notwithstanding the foregoing or any other provision hereof, none of Parent, REIT Merger Sub and OP Merger Sub shall be required to provide or disclose any information that such Party believes would jeopardize attorney-client privilege of any such Party or its respective Affiliates. In the event that Parent, REIT Merger Sub or OP Merger Sub does not provide or disclose any information in reliance on the preceding sentence, it shall use its commercially reasonable efforts to provide or disclose the applicable information to Company in a way that would not give rise to a risk of loss of attorney-client privilege. (e) The foregoing notwithstanding, compliance by Parent, REIT Merger Sub and OP Merger Sub with this Section 6.14 shall not relieve Parent, REIT Merger Sub or OP Merger Sub of its obligations to consummate the transactions contemplated by this Agreement whether or not the Financing or any Alternative Financing is available. To the extent Parent obtains Alternative Financing or amends, replaces, supplements, terminates, modifies or waives any of the Financing, in each case pursuant to this Section 6.14 and without any Prohibited Modification, references to the “flexFinancing,” provisions contained therein)“Financing Parties,” and “Commitment Letters,” “Definitive Agreements” (and other like terms in this Agreement) shall be deemed to refer to such Alternative Financing, the commitments thereunder and the agreements with respect thereto, or the Financing as so amended, restated, replaced, supplemented, terminated, modified or waived. (f) For the avoidance of doubt, Company acknowledges that the Equity Investors’ guarantee obligations under the Limited Guaranty and investment obligations under the Equity Commitment Letters shall be several and not joint.

Appears in 2 contracts

Sources: Merger Agreement (Plymouth Industrial REIT, Inc.), Merger Agreement (Plymouth Industrial REIT, Inc.)

Financing. (a) Each of Parent and Merger Sub shall use their commercially reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to arrange the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth described in the Debt Commitment Letter), including using commercially reasonable efforts to (i) negotiate definitive agreements with respect thereto on the terms and conditions contained therein (including any related flex provisions) or on other terms not materially less beneficial to Parent and Merger Sub, (iiiii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the such definitive agreements related thereto that are within its control (including by consummating the Equity Investment pursuant to the terms of the Equity Commitment Letter) and (iii) consummate the Financing at or prior Closing. Subject to the Closing of the Debt Financing or the Alternative Debt Financing (as defined below) concurrently therewith, Parent and Merger Sub shall obtain the Financing contemplated by the Equity Commitment Letter. In the event any portion of the Debt Financing becomes unavailable on the terms and subject to the conditions set forth contemplated in the Equity Funding Debt Commitment Letter) , Purchaser shall use its commercially reasonable efforts to arrange to obtain alternative financing (or“Alternative Debt Financing”), if necessary or deemed advisable by Parentincluding from alternative sources, seek the waiver of conditions applicable on terms that are not materially less beneficial to Parent and Merger Sub contained in as promptly as practicable following the occurrence of such event. Parent and Merger Sub shall give the Company prompt notice upon becoming aware of any breach by any party of the Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver any termination of the conditions to Parent’s Debt Commitment Letter. Parent and Merger Sub’s obligations Sub shall keep the Company informed on a reasonably current basis in reasonable detail of the status of its efforts to consummate the Offer and the Merger, consummate arrange the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or not permit any termination of or amendment, supplement material amendment or modification to be made to, or grant any waiver of any material provision or remedy under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter without the prior written consent of the Company (including such consent not to be unreasonably withheld or delayed). Parent and Merger Sub shall provide notice to the Company promptly upon receiving the Debt Financing. Parent and Merger Sub shall not permit any market “flex” provisions contained thereinamendment or modification to be made to, or any waiver of any material provision or remedy under, the Equity Commitment Letter without the prior written consent of the Company (such consent not to be unreasonably withheld or delayed). (b) The Company agrees to provide, and will cause its Subsidiaries and its and their respective officers, employees and advisors to provide, all cooperation reasonably necessary in connection with the arrangement of Financing to be consummated prior to or contemporaneously with the Effective Time in respect of the transactions contemplated by this Agreement, including participation in meetings, due diligence sessions, road shows, the preparation of offering memoranda, private placement memoranda, prospectuses and similar documents, or other requested certificates or documents, including audited and unaudited financial statements, comfort letters of accountants (it being understood that the Company does not control its accountants) and legal opinions as may be reasonably requested; provided that nothing herein shall require such cooperation to the extent it would delay the Closing beyond the date contemplated in Section 1.9 or interfere unreasonably with the business or operations of the Company or otherwise result in any significant interference with the prompt and timely discharge by such employees of their normal duties. Parent shall, promptly upon request by the Company, reimburse the Company for all reasonable out-of-pocket costs incurred by the Company in connection with all such cooperation.

Appears in 1 contract

Sources: Merger Agreement (Ace Cash Express Inc/Tx)

Financing. (a) Each of Parent and Merger Sub shall use its reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitments (provided that Parent and Merger Sub may replace or amend the Financing Commitments to add lenders, lead arrangers, bookrunners, syndication agents or similar entities who had not executed the Financing Commitments as of the date hereof, so long as any such amendment or replacement does not adversely affect the ability of Parent to consummate the transactions contemplated by this Agreement without delay) including using its reasonable best efforts to (i) maintain in effect and comply with negotiate the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Agreements on the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter Financing Commitments and (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iiiii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and Agreements. In the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of event that any portion of the Financing (including by increasing becomes unavailable in the amount of fees manner or from the sources contemplated in the Financing Commitments, Parent shall promptly notify the Company and shall use its reasonable best efforts to be paid or original issue discount as compared arrange to obtain any such portion from alternative sources, on terms that are no more adverse to the fees and original issue discount ability of Parent to consummate the transactions contemplated by this Agreement, as promptly as practicable following the occurrence of such event; PROVIDED, HOWEVER, that Parent shall not be required to obtain financing (i) on terms, which are, taken as a whole, materially less advantageous to Parent or (ii) on economic terms less advantageous to Parent in any event, in each case, than those of the Financing contemplated by the Financing Letters on Commitments (taking into account any market flex provisions thereof). (b) The Company shall, and shall cause its Subsidiaries and its and their Representatives to, reasonably cooperate in connection with the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount arrangement of the Financing would as may be below reasonably requested by Parent (provided that such requested cooperation does not unreasonably interfere with the amount required ongoing operations of the Company and its Subsidiaries). Such cooperation by the Company shall include, at the reasonable request of Parent and if necessary to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of obtain the Financing or otherwise expandobtain any portion thereof from alternative sources pursuant to subsection (a) above, amend or modify any (i) agreeing to enter into such agreements, and to use reasonable best efforts to deliver such officer's certificates and opinions, as are customary in financings of such type and as are, in the good faith determination of the conditions precedent persons executing such officer's certificates or opinions, accurate, and agreeing to pledge, grant security interests in, and otherwise grant liens on, the Company's assets pursuant to such agreements as may be reasonably requested, PROVIDED that no obligation of the Company under any such agreement, pledge or grant shall be effective until the Effective Time, (ii) participating in meetings, drafting sessions, due diligence sessions, management presentation sessions, "road shows" and sessions with rating agencies, (iii) using commercially reasonable efforts to prepare or participate in the preparation of business projections and financial statements for inclusion in offering memoranda, private placement memoranda, prospectuses and similar documents, (iv) instructing its independent accountants to provide reasonable assistance to Parent (including to provide consent to Parent to prepare and use their audit reports relating to the Financing Company and any necessary "comfort letters" in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to connection with the Financing) on the Closing Date or and (Cv) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties providing to the lenders specified in the Financing Letters or Commitments financial and other information in the definitive agreements Company's possession with respect to the Financing. Parent shall promptly deliver Merger, making the Company's senior officers available to assist the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to lenders specified in the Financing promptly upon execution thereof. Notwithstanding anything to Commitments and otherwise reasonably cooperating in connection with the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall consummation of the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Financing.

Appears in 1 contract

Sources: Agreement and Plan of Merger (Hilfiger Tommy Corp)

Financing. (a) Each of Parent and Merger Sub shall use use, and shall cause their respective Subsidiaries and their respective officers, directors and employees to use, reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the proceeds of the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing LettersCommitment Letters as promptly as possible (taking into account the expected timing of the Marketing Period), but in any event on or prior to the date upon which the Merger is required to be consummated pursuant to the terms hereof, including by using reasonable best efforts with respect to (i) causing the Equity Investors to maintain in effect and comply with the Financing LettersEquity Commitment Letter, (ii) negotiate maintaining in effect the Debt Commitment Letter and enter complying with their respective obligations thereunder, (iii) negotiating and entering into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on (the “Definitive Agreements”) consistent with the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (or including, as necessary, the “flex” provisions contained in any related fee letter) or, if available, on other terms that, with respect to conditionality, that (A) are not less favorable acceptable to Parent in its sole discretion, (B) would not reasonably be expected to delay (taking into account the expected timing of the Marketing Period) or Merger Sub than adversely affect the terms ability of Parent to consummate the transactions contemplated hereby and (C) would otherwise be permitted by Section 5.12(b), and (iv) satisfying (or, if reasonably required to obtain the Financing, seeking the waiver of) on a timely basis (taking into account the expected timing of the Marketing Period) all conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis Letters and the Definitive Agreements that are within the control of Parent or Merger Sub. In the event that all conditions applicable contained in the Debt Commitment Letter or the Definitive Agreements (other than the consummation of the Merger and other than the availability of the Cash Equity and those that by their nature are to be satisfied at the Closing) have been satisfied or waived, Parent and Merger Sub in shall use their reasonable best efforts to cause the Financing Letters and Parties thereunder to comply with their respective obligations thereunder, including to fund the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver Debt Financing. Each of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)shall use its reasonable best efforts to comply with its respective obligations, (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights respective rights, under the Financing Commitment Letters and the definitive agreements relating to the Financing Definitive Agreements in a timely and diligent manner. (vib) otherwise comply with Parent’s Parent shall not, and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, shall not permit Merger Sub and the Guarantors shall notto, without the prior written consent of the Company, agree to or : (i) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Commitment Letters (or the definitive agreements relating Definitive Agreements, to the Financing extent entered into prior to the Closing Date) if such termination, amendment, supplement, modification or waiver would (A) reduce adds new (or adversely modifies any existing) conditions to the aggregate amount consummation of all or any portion of the Financing Financing, (including by increasing B) reduces the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing to an amount that, together with available cash or other funds of Parent and its Subsidiaries, would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or be less than the Merger Amounts, (C) adversely impact affects in a material respect the ability of Parent to enforce its rights against other parties to the Commitment Letters or the Definitive Agreements as so amended, replaced, supplemented or otherwise modified, relative to the ability of Parent or Merger Sub, as applicable, to enforce its rights against the other parties to the Financing Commitment Letters as in effect on the date hereof or (D) could otherwise reasonably be expected to prevent, impede or delay (taking into account the expected timing of the Marketing Period) the consummation of the Merger and the other transactions contemplated by this Agreement; or (ii) terminate any Commitment Letter or any Definitive Agreement unless such Commitment Letter or Definitive Agreement is replaced at such time with a new commitment letter or a new definitive agreements with respect to agreement that would satisfy the Financingpreceding clause (i). Parent and Merger Sub shall promptly deliver to the Company copies of any amendment, modification, supplement, consent waiver or waiver to or under replacement of any Financing Commitment Letter or any Definitive Agreement. Upon any such amendment, replacement, supplement or modification of the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary Commitment Letters in this Agreement, nothing contained in accordance with this Section 5.04 5.12(b), all references herein to “Commitment Letter”, “Equity Commitment Letter” or “Debt Commitment Letter”, as applicable, shall requireinclude and mean such documents as so amended, replaced, supplemented or modified in accordance with this Section 5.12(b), and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed references to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to“Financing”, or in any amount in excess of that contemplated by“Debt Financing”, as applicable, shall include and mean the Equity Funding Letter, or (ii) pay any material fees in excess of those financing contemplated by such Commitment Letter as so amended, replaced, supplemented or modified in accordance with this Section 5.12(b). (c) In the Equity Funding Letter event that any portion of the Debt Financing becomes unavailable, or the Debt Commitment Letter or Definitive Agreements shall be withdrawn, repudiated, terminated or rescinded, regardless of the reason therefor, Parent and Merger Sub will (including i) use reasonable best efforts to obtain alternative debt financing (in an amount sufficient, when taken together with Cash Equity, and the available portion of the Debt Financing and other available funds or cash to Parent and its Subsidiaries in any market respect, to pay the Merger Consideration and the other Merger Amounts) from the same or other sources on terms and conditions that are not less favorable to Parent and its Subsidiaries than the terms and conditions set forth in the Debt Commitment Letter as of the date hereof and which do not include any conditions to the consummation of such alternative debt financing that would reasonably be expected to make the funding of such alternative debt financing less likely to occur, than the conditions set forth in the Debt Commitment Letter as of the date hereof and (ii) promptly notify the Company of such unavailability, withdrawal, repudiation, termination or rescission, as applicable, and the reason therefor. For the purposes of this Agreement, the term “flexDebt Commitment Letter” provisions contained thereinshall be deemed to include any commitment letter (or similar agreement) with respect to any alternative or replacement financing arranged in compliance herewith (and any Debt Commitment Letter remaining in effect at the time in question). Parent and Merger Sub shall provide the Company with prompt oral and written notice of any actual or threatened breach, termination, repudiation or default by any party to any Commitment Letter or any Definitive Agreement, in each case, of which Parent or Merger Sub obtain Knowledge and the receipt of any written notice or other written communication from any Financing Party, Equity Investor or other financing source with respect to any breach, default, termination or repudiation by any party to any Commitment Letter or any Definitive Agreement of any provision thereof. Parent and Merger Sub shall keep the Company reasonably informed on a current basis of the status of its efforts to consummate the Financing. The foregoing notwithstanding, compliance by Parent and Merger Sub with this Section 5.12 shall not relieve Parent or Merger Sub of their obligation to consummate the transactions contemplated by this Agreement whether or not the Financing is available. For the purposes of this Agreement, the term “Debt Commitment Letter” shall be deemed to include any commitment letter (or similar agreement) with respect to any alternative or replacement financing arranged in compliance herewith (and any Debt Commitment Letter remaining in effect at the time in question).

Appears in 1 contract

Sources: Merger Agreement (ORBCOMM Inc.)

Financing. (a) Each Without the Company’s prior written consent (which shall not be unreasonably withheld), Parent shall not agree to any material amendment or modification to be made to the Financing Commitments; provided, that Parent may replace, amend or modify any term of the Financing Commitments, without the Company’s consent, (x) to modify the pricing terms or to add lenders, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the Financing Commitments as of the date hereof or (y) if such replacement, amendment or modification would not reduce the amount of aggregate cash proceeds available from the Financing to less than required to consummate the Merger or impose new or additional conditions precedent that would reasonably be expected to adversely impact the ability of Parent and Merger Sub to enforce its rights against the other parties to the Financing Commitments or that materially delay or impair the ability of Parent to consummate the transactions contemplated by this Agreement. Parent shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable necessary to consummate arrange and obtain the Financing on the terms and subject only to conditions described in the conditions Financing Commitments (including the market “flex” provisions) set forth flex provisions therein, but not in excess or outside of such provisions unless so agreed by Parent, and taking into account the Financing Lettersanticipated timing of the Marketing Period), including using reasonable best efforts to (i) maintain satisfy, perform and observe on a timely basis (taking into account the expected timing of the Marketing Period) all conditions and covenants within Parent’s control in effect and comply with the Financing LettersCommitments and otherwise comply in all material respects with its obligations thereunder, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisionsthe flex provisions but not in excess or outside such flex provisions unless so agreed by Parent) set forth in contemplated by the Debt Commitment Letter), Financing Commitments and (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to upon satisfaction of the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the MergerFinancing Commitments, consummate the Financing at or prior to Closing. Without limiting the generality of the foregoing, Parent shall give the Company prompt notice: (A) of any breach or default or threatened breach or default by any party to any Financing Commitment, in each case, of which Parent becomes aware, if such breach or default would reasonably be expected to result in a material delay of the Closing Date; and cause (B) of the lenders and the receipt of any written notice or other Persons committing written communication from any Person with respect to fund the any breach or default or threatened breach, termination or repudiation by any party to any Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the Commitment or any definitive agreements relating document related to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under or any provisions of the Financing Letters and the Commitments or any definitive agreements relating document related to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of If any portion of the Financing becomes unavailable on the terms and conditions (including the flex provisions but not in excess or outside such flex provisions unless so agreed by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount Parent) contemplated by in the Financing Letters Commitments in effect on the date hereof so as not to enable Parent to proceed with the Merger in a timely manner, Parent shall use its reasonable best efforts to arrange and obtain, as promptly as practicable following the occurrence of this Agreement unless such event, alternative financing from the Debt same or alternative sources (provided, that if Alternative Financing or Equity (as defined herein) is not available from the same sources, then Parent shall use its reasonable best efforts to arrange and obtain Alternative Financing is increased by a corresponding amountfrom alternative sources) such that in an amount sufficient, when added to the aggregate amount portion of the Financing would be below being replaced that is still available, to consummate the amount required transactions contemplated by this Agreement and on terms and conditions that are no less favorable to pay Parent, taken as a whole (taking into account any flex provisions, but not in excess or outside of such flex provisions unless so agreed by Parent), than those set forth in the Required Amount, Financing Commitments in effect on the date hereof (B) impose new or additional conditions precedent to “Alternative Financing”); provided that the availability “effective yield” in respect of the Alternative Financing may exceed the “effective yield” in respect of the Financing or otherwise expand, amend or modify any Commitments in effect as of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing date hereof (or satisfaction of the conditions to the Financingincluding any flex provision) on the Closing Date or but by no more than fifty (C50) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofbasis points (unless so agreed by Parent). Notwithstanding anything herein to the contrary in this Agreementcontrary, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either require Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated byand Parent shall not be required to, the Equity Funding Letter, or (ii1) pay any material fees in excess of those contemplated by the Equity Funding Letter Financing Commitments, (2) agree to any economic provision that is outside of, or less favorable than, any applicable economic provision of the Financing Commitments or any related fee letter (including any flex provision therein) or (3) initiate any enforcement action to cause the lenders or other parties providing the Financing to fund such Financing; provided that, clauses (1) (solely with respect to any upfront fees or original issue discount) and (2) shall apply only to the extent that the “effective yield” in respect of any Alternative Financing exceeds the “effective yield” in respect of the Financing Commitments in effect as of the date hereof (including any flex provision therein) by more than fifty (50) basis points. Parent shall keep the Company reasonably informed of the status of its efforts to arrange the Financing. Any reference in this Agreement to the “Financing” and “Financing Commitments” shall include the financing contemplated by the Financing Commitments on the date hereof, as permitted to be amended, modified or replaced (in whole or in part) by this Section 5.12(a), including any Alternative Financing. For purposes hereof, in calculating the “effective yield” under the Financing Commitments as in effect on the date hereof or any Alternative Financing, (x) upfront fees and original issue discount (each converted to yield assuming a four-year average life and without any present value discount), interest rate spreads and interest rate benchmarks floors will be taken into account and (y) the effect of any arrangement, structuring, syndication or other fees payable in connection therewith that are not shared with all lenders or holders of such Alternative Financing and any fluctuations in LIBOR or comparable rate will be excluded. (b) Prior to the Closing, the Company shall use reasonable best efforts to provide to Parent, at Parent’s sole expense, all reasonable cooperation reasonably requested by Parent in connection with the Financing, including: (i) furnishing Parent and its Financing Sources as promptly as practicable with financial and other pertinent information regarding the Company and its Subsidiaries as may be reasonably requested by Parent or the Debt lenders under the Commitment Letter in connection with the Financing, including financial statements (including the financial statements set forth in clause (ii) below) (which, with respect to annual financial statements, shall have been audited and, with respect to interim financial statements, shall have been reviewed by the independent accountants for the Company as provided in Statement on Auditing Standards No. 100), pro forma financial statements of the Company (provided that it is understood that the preparation of combined pro forma financial information and the assumptions underlying the pro forma adjustments to be made are the responsibility of Parent), business and other financial data of the type and form required by Regulation S-X and Regulation S-K under the Securities Act and of type and form customarily included in a registration statement on Form S-1 under the Securities Act for a public offering of the debt securities contemplated by the Commitment Letter, assuming that such offering was consummated at the same time during the Company’s fiscal year as the offering of debt securities contemplated by the Commitment Letter (other than consolidating financial statements; provided that customary data as to the total assets, revenue, EBITDA and adjusted EBITDA of non-guarantor Subsidiaries shall be provided), all other data that would be necessary for the underwriter to such offering of the debt securities contemplated by the Financing Commitments to receive customary “comfort” (including “negative assurance” comfort) from the Company’s independent accountants in connection with such offering of the debt securities contemplated by the Financing Commitments, and reasonable and customary authorization letters to the financing sources authorizing the distribution of information to prospective lenders and containing customary information; (ii) furnishing Parent and its Financing Sources as promptly as reasonably practicable with (A) by a date that is not later than forty-five (45) calendar days after the end of any market fiscal quarter after the date hereof that is not a fiscal year end, the unaudited consolidated balance sheet of the Company as of the end of such subsequent quarterly period ended no less than forty-five (45) calendar days prior to the Closing Date and the related unaudited statements of income and cash flows and (B) by a date that is not later than ninety (90) calendar days after the end of any fiscal year, the audited consolidated balance sheet of the Company as of the end of such fiscal year ended not less than ninety (90) days prior to the Closing Date, and the related audited statements of income and cash flows for the year then ended, and the notes and schedules thereto (the information described in clauses (i) and (ii) of this Section 5.12(b) being collectively referred to as the “flex” provisions Required Information”); (iii) participating 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 financing and senior management and Representatives, with appropriate seniority and expertise, of the Company and its Subsidiaries), presentations, road shows, due diligence sessions, drafting sessions and sessions with rating agencies in connection with the financing. (iv) facilitating the pledging of collateral and perfection of security interests (including obtaining customary payoff letters, lien releases and instruments of termination or discharge) as required by the Commitment Letters, including executing and delivering any customary collateral documents and other customary documents and certificates as may be reasonably requested by Parent and cooperating and assisting Parent in obtaining customary legal opinions, appraisals, surveys, title insurance, other certifications and documents as reasonably required by the Financing Sources for financings similar to the Financing, and cooperating with and assisting Parent in connection with obtaining such items; (v) assisting with the preparation of materials for rating agencies and rating agency presentations, bank information memoranda, offering documents (including assistance in the preparation of pro forma financial statements giving effect to the transactions hereunder), private placement memoranda and similar documents required in connection with the Financing; (vi) facilitating the execution and delivery at the Closing of definitive Financing documents by the Company and its Subsidiaries and all other customary documents in connection therewith, including pledge and security agreements, mortgages, guarantees, filings and certificates as reasonably required in connection with the Financing (including a certificate of the Chief Financial Officer of the Company or any of its Subsidiaries with respect to solvency matters and consents of independent accountants for the use of their reports in any materials relating to the Financing, provided that any obligations contained thereinin such documents shall be effective no earlier than as of the Closing); (vii) using reasonable best efforts to cooperate with Parent to satisfy the conditions precedent to the Financing to the extent within the control of the Company and causing the taking of corporate actions by the Company and its Subsidiaries reasonably necessary to permit the completion of the Financing; provided, that (i) the foregoing shall not require such cooperation to the extent that it would interfere unreasonably with the business or operation of the Company or its Subsidiaries, and (ii) neither the Company nor any of its Subsidiaries shall be required to commit to take any action (including the payment of any commitment or other fee or the incurrence of any liability prior to the Effective Time to the extent not reimbursed by Parent pursuant to Section 5.12(c)) that is not contingent upon the Closing (including the entry into any agreement) or that would be effective prior to the Closing Date. (c) Parent shall, upon written request of the Company, reimburse the Company for all reasonable and documented out-of-pocket costs incurred in good faith by the Company and its Subsidiaries in connection with their obligations pursuant to Section 5.12(b) prior to the Closing. Parent shall indemnify, defend and hold harmless the Company and its Subsidiaries and Representatives from and against any and all Losses suffered or incurred by them in connection with the arrangement of the Financing or providing any of the information utilized in connection therewith, except to the extent resulting from the gross negligence, willful misconduct or bad faith of any such Persons.

Appears in 1 contract

Sources: Merger Agreement (Advance Auto Parts Inc)

Financing. (a) Each of Parent and Merger Sub WHP Borrower shall use commercially reasonable best efforts to take, or cause to be taken, all actions 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 subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including including, to the market extent applicable, the “flex” provisions) set forth described in the Debt Commitment Letter and any related Fee Letter in an amount sufficient to fund the Financing Amounts on or prior to the date upon which the Membership Interests Purchase is required to be consummated pursuant to the terms hereof, including by using commercially reasonable efforts to (i) maintain in effect the Debt Commitment Letter until the Closing or earlier funding of the Debt Financing contemplated thereby, (ii) negotiate and enter into definitive agreements with respect to the Debt Financing (the “Definitive Agreements”) consistent with the terms and subject only to the conditions contained in the Debt Commitment Letter (including, as necessary, the “flex” provisions contained in any related Fee Letter) or on terms and conditions as otherwise may be agreed (but without any Prohibited Modification), (iii) satisfy on a timely basis (or obtain a waiver of) all conditions that are applicable to WHP Borrower obtaining the Debt Financing in the Debt Commitment Letter and the Definitive Agreements, (iv) comply with WHP Borrower’s obligations under the Debt Commitment Letter and the Definitive Agreements and (v) enforce its rights under the Debt Commitment Letter and the Definitive Agreements in a timely and diligent manner. Without limiting the generality of the foregoing, in the event that all conditions contained in the Debt Commitment Letter or the Definitive Agreements (other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the consummation of the Membership Interests Purchase and those conditions that by their nature are to be satisfied or waived at Closing) have been satisfied, WHP Borrower shall cause the Debt Financing Sources to comply with their respective obligations thereunder, including to fund the Debt Financing. WHP Borrower shall give Sellers prompt notice of any (A) material breach or (B) other breach that would materially delay the Closing by any party to the Debt Commitment Letter or any Definitive Agreement of which WHP Borrower has become aware or any termination of any of the Debt Commitment Letter or any Definitive Agreement. (b) WHP Borrower shall not, without the prior written consent of Sellers: (A) permit, consent to or agree to any amendment, replacement, supplement or modification to, or any waiver of, any provision or remedy under, the Debt Commitment Letter or the Definitive Agreements if such amendment, replacement, supplement, modification or waiver (1) adds new (or adversely modifies any existing) conditions to the consummation of all or any portion of the Debt Financing, (2) reduces the aggregate principal amount of the Debt Financing, such that the aggregate amount of such Debt Financing, the cash on hand at WHP Borrower and any other sources of funding that are readily available to WHP Borrower on the Closing Date would not be sufficient to pay the Financing Amounts, (3) adversely affects the ability of WHP Borrower to enforce its rights against other parties to the Debt Commitment Letter or the Definitive Agreements as so amended, replaced, supplemented or otherwise modified or waived, relative to the ability of WHP Borrower to enforce its rights against the other parties to the Debt Commitment Letter as in effect on the date hereof or (4) could otherwise reasonably be expected to prevent, impede or materially delay the consummation of the Membership Interests Purchase and the other transactions contemplated by this Agreement (the effects described in clauses (1) through (4), collectively, the “Prohibited Modifications”); or (B) terminate or cause the termination of the Debt Commitment Letter or any Definitive Agreement. Without limiting any of the foregoing, WHP Borrower shall promptly notify Sellers of, and deliver to Sellers copies of, any amendment, replacement, supplement, termination, modification or waiver of the Debt Commitment Letter or any Definitive Agreement. Notwithstanding the foregoing, any amendment, supplement, amendment and restatement or modification to (i) effectuate any “market flex” terms contained in the Debt Commitment Letter or the Fee Letters if made on or prior to the Closing Date or (ii) to add any additional agents or other financial institutions thereto as provided for therein, in each case, shall be permitted and shall not require written consent of Sellers or any other Person. (c) In the event that any portion of the Debt Financing becomes unavailable, regardless of the reason therefor and such portion is necessary to fund the Financing Amounts, WHP Borrower will (A) use its commercially reasonable efforts to arrange and obtain, as promptly as practicable following the occurrence of such event, alternative financing (in an amount sufficient, when taken together with the available portion of the Debt Financing, to provide cash proceeds in an amount no less than the Financing Amounts) from the same or other sources on terms and conditions (including market “flex” provisions) that are not materially less favorable, taken as a whole, to WHP Borrower than the terms and conditions set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver as of the conditions date hereof, taken as a whole (after giving effect to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein) (the “Alternative Financing”) and (B) promptly notify Sellers of such unavailability and the reason therefor. WHP Borrower shall promptly after obtaining actual knowledge thereof provide Sellers with written notice of any actual or threatened (in writing) breach, default, cancellation, termination or repudiation by any party to the Debt Commitment Letter or any Definitive Agreement and a copy of any written notice from any Debt Financing Source or other financing source with respect to any such actual or threatened breach, default, cancellation, termination or repudiation by any party to the Debt Commitment Letter or any Definitive Agreement. WHP Borrower shall, upon the request of Sellers, keep Sellers reasonably informed on a current basis of the status of its efforts to consummate the Debt Financing. To the extent WHP Borrower obtains Alternative Financing or amends, replaces, supplements, terminates, modifies or waives the Debt Commitment Letter, any Definitive Agreement or any of the Debt Financing (as applicable), in each case pursuant to and in accordance with the terms of this Section 6.13 and without any Prohibited Modification, references to the “Debt Financing,” “Debt Financing Parties,” “Debt Financing Sources,” “Debt Commitment Letter,” “Definitive Agreements,” and other like terms in this Agreement shall be deemed to refer to such Alternative Financing, the commitments thereunder and the agreements with respect thereto, or the Debt Financing as so amended, replaced, supplemented, terminated, modified or waived.

Appears in 1 contract

Sources: Membership Interest Purchase Agreement (Lands' End, Inc.)

Financing. (a) Each of Parent and Merger Sub shall use its best efforts to complete the Financing on the terms and conditions described in the Financing Commitments as promptly as practicable but in any event on or before the Outside Date, including using its best efforts to (i) negotiate definitive agreements with respect thereto (A) on the terms and conditions contained in the Financing Commitments or (B) on other terms and conditions that (1) are no less favorable to Parent and Merger Sub taken as a whole, (2) do not impose any conditions other than those set forth in the Debt Financing Commitments (the “Debt Financing Conditions”) or set forth in the Equity Commitment Letter, as applicable, or adversely change in any material respect any Debt Financing Condition or condition set forth in the Equity Commitment Letter, as applicable, and (3) would not reasonably be expected to prevent, materially delay or materially impair the ability of Parent or Merger Sub to consummate the Transactions on or before the Outside Date, (ii) satisfy on a timely basis all conditions applicable to Parent and/or Merger Sub in such definitive agreements that are within their control and (iii) not permit any amendment or modification to be made to, or any waiver of, any material provision or remedy under the Financing Commitments, if such amendment, modification or waiver (A) imposes any new or additional conditions or adversely changes in any material respect any Debt Financing Condition or condition set forth in the Equity Commitment Letter or (B) would reasonably be expected to prevent, materially delay or materially impair the ability of Parent or Merger Sub to consummate the Transactions on or before the Outside Date. (b) If all or a portion of the Financing becomes unavailable in accordance with the terms of the Financing Commitments, then (i) Parent shall notify the Company promptly and (ii) Parent and Merger Sub shall use their respective reasonable best efforts to obtain any such portion from alternative sources as promptly as practicable following the occurrence of such event, on terms that (A) are no less favorable than those in the Financing Commitments to Parent and Merger Sub taken as a whole and (B) would not reasonably be expected to prevent, materially delay or materially impair the ability of Parent or Merger Sub to consummate the Transactions on or before the Outside Date (the “Alternative Financing”), and to obtain a new financing commitment letter related to such Alternative Financing (the “Alternative Financing Commitment”). If applicable, each of Parent and Merger Sub shall use their respective best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange promptly and consummate and obtain the Alternative Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Alternative Financing LettersCommitment as promptly as practicable but in any event on or before the Outside Date, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentationAlternative Financing (such definitive agreements, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with or any definitive agreements entered into under Section 7.08(a), the funding of the Debt Financing“Financing Agreements”) with respect to the Debt Financing (A) on the terms and subject only conditions contained in the Alternative Financing Commitment or (B) on other terms and conditions that (1) are no less favorable to Parent and Merger Sub taken as a whole, (2) do not impose any new or additional conditions, or adversely change in any material respect any existing conditions, to the conditions (including receipt of the market “flex” provisions) Alternative Financing as set forth in the Debt Commitment Letter Alternative Financing Commitments and (3) would not reasonably be expected to prevent, materially delay or on other terms that, with respect to conditionality, are not less favorable to materially impair the ability of Parent or Merger Sub than to consummate the terms and conditions (including market “flex” provisions) set forth in Transactions on or before the Debt Commitment Letter)Outside Date, (iiiii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the such definitive agreements related thereto that are within their control, and (including by consummating iii) upon satisfaction of such conditions, to use their best efforts to cause the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letterfunding of such Alternative Financing. (c) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained shall, and shall use their best efforts to cause their Representatives to, comply in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon all material respects with the satisfaction or waiver terms of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the MergerFinancing Commitments, consummate the any Alternative Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision underCommitment, the Financing Letters or the definitive agreements relating Agreements and any related fee and engagement letters. Parent shall (i) furnish to the Financing if such terminationCompany complete, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion correct and executed copies of the Financing Agreements promptly upon their execution and (including by increasing ii) otherwise keep the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount Company reasonably informed of the Financing would be below the amount required status of Parent’s efforts to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of arrange the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Alternative Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver including providing to the Company copies of Financing Agreements in substantially final form following the negotiation thereof. (d) Prior to the Effective Time, the Company, acting through the Special Committee if then in existence or otherwise by resolution of a majority of Disinterested Directors, shall provide, and shall cause its subsidiaries to, and shall use its best efforts to cause their respective Representatives, including legal and accounting, to, provide all cooperation reasonably requested by Parent in connection with the Debt Financing or any amendmentAlternative Financing, modificationincluding, supplementwithout limitation: (i) reasonable participation in a reasonable number of meetings, consent presentations, due diligence sessions, drafting sessions, road shows and sessions with rating agencies with respect to the definitive financing arrangements for the Debt Financing or waiver any Alternative Financing; (ii) assistance with the preparation of customary materials for rating agency presentations, offering documents, private placement memoranda, bank information memoranda, prospectuses, business projections and financial statements (including those required by the SEC) and similar documents required in connection with the Debt Financing or any Alternative Financing; (iii) execution and delivery of any pledge and security documents and other similar documents, other definitive financing documents, and other certificates and documents to be executed and delivered by the Company or any of its subsidiaries as may be reasonably requested by Parent (including a certificate of the chief financial officer of the Company or any subsidiary with respect to solvency matters) and otherwise facilitate the pledging of collateral, in each case so long as not effective until on or after the Effective Time; (iv) furnishing Parent and its Debt Financing or Alternative Financing sources with readily-available historical financial and other pertinent information regarding the Company as may be reasonably requested by Parent, including all historical financial statements and financial data of the type required by Regulation S-X and Regulation S-K under the Securities Act and of the type and form customarily included in private placements under Rule 144A under the Securities Act, to consummate the Debt Financing or any Alternative Financing Letter transaction executed in connection with the Transactions; (v) using best efforts to assist Parent in obtaining accountants’ comfort letters, legal opinions, surveys and title insurance as may be reasonably requested by Parent or the definitive lenders under the Debt Financing Commitments or any Alternative Financing Commitment; (vi) permit the prospective lenders involved in the Debt Financing or any Alternative Financing to evaluate the Company’s current assets and cash management and accounting systems, policies and procedures relating thereto for the purpose of establishing collateral arrangements; (vii) so long as not effective until on or after the Effective Time, establish bank and other accounts and blocked account agreements relating and lock box arrangements in connection with any such collateral arrangements; and (viii) taking all corporate actions, subject to the occurrence of the Effective Time, reasonably requested by Parent to permit the consummation of the Debt Financing promptly upon execution thereof. Notwithstanding anything or any Alternative Financing and to permit the proceeds thereof to be made available to the contrary Surviving Corporation immediately after the Effective Time. The Company shall cause its officers, in this Agreementtheir capacities as officers, nothing to deliver such customary management representation letters as any audit firm may request in connection with any comfort letters or similar documents required in connection with the Debt Financing or any Alternative Financing. The Company hereby consents to the use of its and its subsidiaries’ logos in connection with the Debt Financing or any Alternative 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 the reputation or goodwill of the Company or any of its subsidiaries and its or their marks. Nothing contained in this Section 5.04 7.08 or otherwise shall require, and require the Company to be an issuer or other obligor with respect to the Debt Financing or any Alternative Financing prior to the Effective Time. Nothing contained in no event this Section 7.08 or otherwise shall require the reasonable best efforts of Parent Company to pay any Transaction Costs related to the Debt Financing or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity any Alternative Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained thereinTransaction Costs related to such cooperation under this Section 7.08(d).

Appears in 1 contract

Sources: Merger Agreement (Landrys Restaurants Inc)

Financing. (a) Each of Parent and Merger Sub Buyer shall use reasonable best efforts to 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 subject only to the conditions (including the market “flex” flex provisions) set forth in the Financing Commitment Letters, including using reasonable best efforts to (i) maintain in effect the Commitment Letters in accordance with the terms and subject to the conditions thereof and comply with its obligations under with the Commitment Letters and the definitive agreements relating to the Debt Financing Letters(including the payment of related fees and expenses in connection therewith as and when due and payable), in each case, to the extent the failure to comply with such obligations would adversely impact the amount or availability of the Financing, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” flex provisions) set forth in the Debt Commitment Letter (or or, if available, on other terms thatthat (I) are acceptable to Buyer in its sole discretion, with respect (II) will not adversely affect the ability of Buyer, from a conditionality and enforceability perspective (taken as a whole), to conditionality, are not less favorable to Parent or Merger Sub than consummate the terms transactions contemplated hereby and conditions (including market “flex” provisionsIII) set forth in the Debt Commitment Letterwould otherwise be permitted by Section 4.6(b), (iii) satisfy on a timely basis all conditions applicable to Parent to, and Merger Sub within the control of, Buyer in the Financing Commitment Letters and the definitive agreements related thereto thereto, (including by consummating iv) consummate the Equity Financing at or prior to the Closing on Date, including using its reasonable best efforts to cause the terms and subject to the conditions set forth in the Equity Funding Letter) (orSponsors, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the any other Persons committing to fund the Financing to fund the Financing at the Closing, Closing and (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Commitment Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Buyer shall not, without the prior written consent of the CompanyPKI (not to be unreasonably withheld), agree or consent to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Commitment Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce (or have the effect of reducing) the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountdiscount), (B) impose new additional or additional more burdensome conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing Financing, or otherwise expand, amend or modify any other provision of the Commitment Letters in a manner that would reasonably be expected to materially delay delay, prevent or prevent make less likely to occur the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, Buyer to enforce its rights against other parties to the Financing Commitment Letters or the definitive agreements with respect to the Financing. Parent Buyer shall promptly deliver to the Company PKI true and complete copies of any amendment, modification, supplement, consent or waiver to or under any Financing Commitment Letter or the definitive agreements relating to the Financing promptly upon execution thereof; provided, for the avoidance of doubt, that Buyer may amend the Debt Commitment Letter to add additional lenders, arrangers, bookrunners, managers or agents that did not execute the Debt Commitment Letter as of the Original Execution Date. (b) Upon the request of PKI, Buyer shall keep PKI informed in reasonable detail of the status of its efforts to arrange the Debt Financing. Notwithstanding Buyer shall give PKI prompt notice (i) of any breach, default (or any event that, with or without notice, lapse of time or both, would reasonably be expected to give rise to any default or breach), in each case, to the extent such breach or default would reasonably be expected to adversely impact the ability of Buyer to obtain all or any portion of the Financing contemplated by the Commitment Letters or the definitive documents related to the Financing, termination, cancellation or repudiation by any party to any of the Commitment Letters or definitive documents related to the Financing, in each case, of which ▇▇▇▇▇ becomes aware and (ii) of the receipt by Buyer of any written notice or other written communication from any Financing source with respect to any breach, default (or any event that, with or without notice, lapse of time or both, would reasonably be expected to give rise to any breach or default), termination, cancellation or repudiation by any party to any of the Commitment Letters or any definitive document related to the Financing of any provisions of the Commitment Letters or any definitive document related to the Financing. As soon as reasonably practicable, but in any event within five Business Days of the date PKI delivers to Buyer a written request, Buyer shall provide any information reasonably requested by PKI relating to any circumstance referred to in the immediately preceding sentence. If any portion of the Debt Financing becomes unavailable on the terms and conditions (including any applicable market flex provisions) contemplated by the Debt Commitment Letter, or Buyer becomes aware of any event or circumstance that could reasonably be expected to make any such portion of the Debt Financing unavailable on the terms and conditions (including any applicable market flex provisions) contemplated by the Debt Commitment Letter, and in each case such portion is required to fund the Required Amount, Buyer shall promptly notify PKI in writing and use its reasonable best efforts to arrange and obtain in replacement thereof, and negotiate and enter into definitive agreements with respect to, alternative financing from the same or alternative sources in an amount, when taken together with the funds under the Equity Commitment Letter, sufficient to consummate the transactions contemplated by this Agreement with terms and conditions not less favorable to Buyer (or its Affiliates) than the terms and conditions set forth in the Debt Commitment Letter, as promptly as practicable following the occurrence of such event. Buyer shall deliver to PKI true and complete copies of all contracts, agreements or other arrangements (including Redacted Fee Letters) pursuant to which any such alternative source shall have committed to provide any portion of the Debt Financing. For purposes of this Section 4.6, (x) references to the “Financing” shall include the financing contemplated by the Commitment Letters as permitted to be amended, modified, supplemented or replaced by this Section 4.6, (y) references to the “Debt Commitment Letter” shall include such documents as permitted to be amended, modified, supplemented or replaced by this Section 4.6 and (z) references to “Debt Financing” shall include the debt financing contemplated by the Debt Commitment Letter as permitted to be amended, modified, supplemented or replaced by this Section 4.6. (c) PKI shall, and shall cause the Asset Seller and the Acquired Companies to, use reasonable best efforts to, at Buyer’s sole cost and expense, provide Buyer with such cooperation in connection with the arrangement of the Debt Financing (including the syndication thereof) as is customary and reasonably requested by ▇▇▇▇▇, provided that such requested cooperation does not, in PKI’s reasonable judgment, unreasonably interfere with the ongoing business or operations of PKI or any of its subsidiaries. Such cooperation will include (A) assistance in Buyer’s preparation of any bank books, rating agency presentation materials or other similar offering materials in connection with the Debt Financing, (B) reasonably promptly responding to any reasonable and customary diligence inquiries of the banks engaged for, or the lenders in, such Debt Financing, (C) providing Buyer with reasonable assistance in Buyer’s efforts to obtain subordination and non-disturbance agreements, landlord waivers, collateral access agreements, account control agreements, consents, and other customary agreements from the Business’ landlords, depositary banks or other third parties as may be requested by the sources of the Debt Financing (or assisting Buyer in obtaining from legal counsel (including local counsel; provided that counsel to PKI or the Companies shall not be required to render any legal opinions) to the Companies and their advisors) and executing and delivering any guarantee or pledge and security documents, other definitive financing documents, or other documents as may be reasonably requested by Buyer and as may be necessary and customary in connection with the Debt Financing (including a solvency certificate from a continuing officer of the Companies in the form contemplated by the Debt Commitment Letter) and otherwise facilitating the pledging of collateral and the obtaining of guarantees; provided that all such pledges, guarantees and other documents with respect to the Companies, their Subsidiaries and their respective assets shall be authorized and become effective only at, or as of, the Closing; and (D) making appropriate officers and Business Employees available, at such times and in such manner as to not unreasonably interfere with the ongoing operation of the Business, for participation in meetings with, or presentations to, prospective participants in such Debt Financing or the prospective rating agencies for such Debt Financing. In no event shall PKI or any of its subsidiaries be required to bear any cost or expense, pay any commitment or other fee, enter into any definitive agreement, incur any other liability or obligation, make any other payment or agree to provide any indemnity in connection with the Financing or any of the foregoing, except with respect to the Companies and their respective subsidiaries, to the extent contingent upon the Closing or the Local Closing, as applicable, or effective on or after the Closing or the Local Closing, as applicable. In addition, nothing in this Section 4.6(c) shall require any action that would conflict with or violate PKI’s or any of its subsidiaries’ organizational documents or any applicable Laws, rules or regulations 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 PKI or any of its subsidiaries is a party. For the avoidance of doubt, none of PKI or its subsidiaries or their respective officers, directors (with respect to any subsidiary of PKI) or employees shall be required to execute or enter into or perform any agreement, certificate or other document with respect to the Financing other than, with respect to the Companies and their respective subsidiaries, to the extent that such agreement, certificate or other document is expressly contingent upon the Closing or the Local Closing, as applicable, or would become effective at or after to the Closing or the Local Closing, as applicable, and no directors of PKI shall be required to execute or enter into or perform any agreement, or to pass any resolutions or consents, with respect to the Financing. Buyer shall promptly, upon request by PKI, reimburse PKI for all reasonable and documented out-of-pocket costs and expenses (including (A) reasonable attorneys’ fees and (B) fees and expenses of PKI’s accounting firms engaged to assist in connection with the Financing) incurred by PKI or any of its subsidiaries in connection with the cooperation of PKI or any of its subsidiaries or any of their respective Representatives contemplated by this Section 4.6(c) and the compliance by PKI or any of its subsidiaries or any of their respective Representatives with its obligations under this Section 4.6(c), and shall indemnify and hold harmless PKI, its subsidiaries and their respective Representatives from and against any and all losses, damages, claims, costs or expenses suffered or incurred by any of them in connection with the compliance by PKI or any of its subsidiaries or any of their respective Representatives with its obligations under this Section 4.6(c), except to the extent such losses, damages, claims, costs or expenses are determined by a court of competent jurisdiction in a final judgment (not subject to appeal) to result from the Fraud, PKI Willful Breach of its obligations under this Section 4.6 or gross negligence of PKI, the Companies or their respective Subsidiaries or, in each case, their respective officers, directors employees, accountants, consultants, legal counsel, agents or other Representatives. Nothing contained in this Section 4.6(c) or otherwise shall require PKI or any of its subsidiaries to be an issuer or obligor with respect to the Debt Financing. PKI shall be deemed to have satisfied its obligations under this Section 4.6(c) for purposes of the condition precedent set forth in Section 5.1(c) and shall be entitled to exercise each of the termination rights applicable to it in Article VI (subject to the terms and conditions thereof), in each case, except in the case of PKI Willful Breach of its obligations under this Section 4.6(c) that has not been cured within a reasonable period of time after written notice thereof by Buyer and has substantially contributed to the Buyer’s failure to receive a material portion of the proceeds of the Financing. (d) Buyer acknowledges and agrees that, notwithstanding PKI’s obligations under Section 4.6(c), none of the obtaining of the Financing or any permitted alternative financing, or the completion of any issuance of securities contemplated by the Financing, is a condition to the Closing, and reaffirms its obligation to consummate the transactions contemplated by this Agreement irrespective and independently of the availability of the Financing or any permitted alternative financing or the completion of any such issuance. (e) All non-public or otherwise confidential information regarding PKI or any of its subsidiaries obtained by Buyer or its Representatives pursuant to clause (c) above shall be kept confidential in accordance with the Confidentiality Agreement; provided that Buyer may provide such information to potential sources of capital and to rating agencies and prospective lenders and investors during syndication of the Debt Financing (including any permitted alternative financing) subject to customary confidentiality arrangements with such Persons regarding such information and PKI and Buyer (it being agreed that Buyer shall notify PKI of any such prospective lenders or investors that have received such information pursuant to this Section 4.6(e)); provided, further that, notwithstanding anything to the contrary in this the Confidentiality Agreement, nothing contained in this Section 5.04 the Parties agree that the Debt Financing Sources and all such potential other financing sources shall require, be “Representatives” under the Confidentiality Agreement of Buyer and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed Buyer does not have to require, either Parent or Merger Sub to (i) seek the Equity Financing obtain prior consent from any source other than person for any potential Debt Financing Source to become a “Representative” under the counterparties toConfidentiality Agreement of Buyer. Upon the Closing, or in any amount in excess of that contemplated by, PKI’s rights under the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Confidentiality Agreement shall be assigned to Buyer as a Contract.

Appears in 1 contract

Sources: Master Purchase and Sale Agreement (Perkinelmer Inc)

Financing. (a) Each of Parent and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and consummate and obtain the Financing as soon as reasonably practicable (but in any event not prior to the consummation of the Marketing Period) on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Commitment Letters, including using reasonable best efforts to (i) maintain in full force and effect and comply with the Financing Commitment Letters, (ii) negotiate and enter into the definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto on the terms and subject only to conditions contained in the conditions Commitment Letters (including including, as necessary, the market “flex” provisions) set forth provisions contained in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letterany related fee letter), (iii) comply with and satisfy on a timely basis (or if determined advisable by Parent and Merger Sub, obtain the waiver of) all terms, covenants and conditions applicable to Parent and Merger Sub that are in their control to obtaining the Financing set forth in the Financing Commitment Letters and the definitive agreements related thereto such that the Financing will be able to be consummated at or prior to the Effective Time, and (including by consummating iv) consummate the Equity Financing at or prior to the Closing on Effective Time subject to the terms and subject conditions described in the Commitment Letters, and it being understood that neither Parent nor Merger Sub shall be in breach of its obligations set forth above on account of the effects of any inaccuracies in the representations and warranties of the Company set forth herein or any failure by the Company to comply with its obligations hereunder; provided, that the foregoing (other than clause (i)) shall not apply with respect to the conditions set forth Bank Financing in the Equity Funding Letterevent that and for so long as (A) (or, if necessary Parent or deemed advisable by Parent, seek the waiver of conditions applicable Merger Sub elect to pursue a high yield securities offering or other debt financing with respect to Parent and Merger Sub contained its Subsidiaries (a “High Yield Debt Financing”) in such Debt Commitment Letter or such definitive agreements related thereto)lieu of the Bank Financing, (ivB) upon assuming the satisfaction High Yield Debt Financing is funded, the net proceeds contemplated by the High Yield Debt Financing, together with the Equity Financing and cash or waiver of the conditions to Parent’s cash equivalents held by Parent and Merger Sub’s obligations to consummate , will in the Offer aggregate be sufficient for Merger Sub and the Merger, consummate Surviving Corporation to pay the Financing aggregate Merger Consideration (and cause any repayment or refinancing of debt contemplated by this Agreement or the lenders High Yield Debt Financing) and the any other Persons committing amounts required to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. be paid by Parent, Merger Sub and the Guarantors shall not, without Surviving Corporation in connection with the prior written consent consummation of the Company, agree transactions contemplated by this Agreement and to or permit any termination of or amendment, supplement or modification pay all related expenses at the Closing required to be made topaid by Parent, Merger Sub and the Surviving Corporation, (C) Parent and Merger Sub use their commercially reasonable efforts to take, or grant any waiver cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and consummate the High Yield Debt Financing as soon as reasonably practicable and (D) it is reasonably anticipated (in the good faith discretion of Parent) that such High Yield Debt Financing would be consummated on or prior to the time required for Closing under Section 1.02. (b) Parent and Merger Sub shall keep the Company informed with respect to all material activity concerning the status of the Financing and, if applicable, the High Yield Debt Financing, and shall give the Company prompt notice of any provision undermaterial adverse change with respect to the Financing, and, if applicable, the Financing High Yield Debt Financing. Without limiting the foregoing, Parent shall notify the Company promptly, and in any event within two Business Days, if at any time (i) any of the Commitment Letters shall expire or be terminated for any reason, (ii) any financing source that is a party to a Commitment Letter notifies Parent that such source no longer intends to provide financing to Parent (or, in the case of the Equity Commitment Letter, Merger Sub) on the terms set forth therein, (iii) Parent is aware of any actual or threatened material breach, default, termination or repudiation by any party to the Commitment Letters or the definitive agreements relating to the Commitment Letters or any material dispute or disagreement between or among the parties to the Commitment Letters or definitive agreements relating to the Commitment Letters with respect to the obligation to fund the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of the Financing to be funded at Closing, or (iv) for any reason Parent or Merger Sub no longer believes in good faith that it will be able to obtain all or any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Commitment Letters on the date terms or within the timing described therein. (c) If any portion of this Agreement unless the Bank Financing becomes unavailable on the terms and conditions or within the timing contemplated in the Bank Commitment Letter (other than on account of the High Yield Debt Financing or Equity Financing is increased by a corresponding amounthaving been completed), Parent and Merger Sub shall (i) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the use their reasonable best efforts to obtain, as promptly as practicable following the occurrence of such event, alternative financing for any such portion from alternative sources (“Alternative Financing”) in an amount that will still enable Parent or Merger Sub be deemed or construed to require, either Parent or and Merger Sub to (i) seek consummate the Equity Financing from any source other than the counterparties to, or in any amount in excess of that transactions contemplated by, the Equity Funding Letter, or by this Agreement and (ii) pay any material fees in excess promptly notify the Company of those contemplated by such unavailability and the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).reason therefor. If

Appears in 1 contract

Sources: Merger Agreement (Flow International Corp)

Financing. (a) Each Tenant agrees to pay, not later than three (3) business days following written request from Landlord (or upon the date of Parent this Lease with respect to costs and Merger Sub shall use reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to expenses incurred as of such date): (i) maintain in effect all costs and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined expenses incurred by Parent to be reasonably likely to be necessary Landlord in connection with the funding initial purchase and leasing of the Debt Financing) with respect to Leased Premises, including, without limitation, transfer taxes and recording fees and charges, the Debt Financing on the terms cost of appraisals, environmental reports, property condition report and subject only to the conditions zoning reports; UCC and related searches; owner’s title insurance charges and premiums (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letterendorsements), (iii) satisfy on a timely basis all conditions applicable the cost of surveys; the costs of any updates to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver any of the conditions to Parent’s foregoing or any reliance letters required in connection therewith; and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated expenses of Landlord’s counsel, and (ii) all costs and expenses incurred by Landlord in connection with the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount financing of the Financing would be below the amount required initial Loan, including without limitation, any “points”, application charges, commitment fees, costs of updates or additions to pay the Required Amount, (B) impose new searches or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or reports identified under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to clause (i) seek hereof or any reliance letters required in connection therewith, Lender’s title charges and premiums (including endorsements), and the Equity Financing from fees and expenses of Lender’s counsel. (b) Tenant agrees to pay, within three (3) business days of written demand thereof, any source cost, charge or expense (other than the counterparties to, or in any amount in excess principal of that contemplated bythe Note and interest thereon at the contract rate of interest specified therein) imposed upon Landlord by Lender pursuant to the Note, the Equity Funding LetterMortgage or the Assignment which is not caused solely by the gross negligence or willful misconduct of Landlord and which is not otherwise reimbursed by Tenant to Landlord pursuant to any other provision of this Lease. (c) If Landlord desires to obtain or refinance any Loan, Tenant shall negotiate in good faith with Landlord concerning any request made by any Lender or proposed Lender for changes or modifications in this Lease. In particular, Tenant shall agree, upon request of Landlord, to supply any such Lender with such notices and information as Tenant is required to give to Landlord hereunder and to extend the rights of Landlord hereunder to any such Lender and to consent to such financing if such consent is requested by such Lender. Tenant shall provide any other consent or statement and shall execute any and all other documents that such Lender reasonably requires in connection with such financing, including any environmental indemnity agreement and subordination, non-disturbance and attornment agreement which complies with Paragraph 32 hereof, so long as the same do not materially adversely affect any right, benefit or privilege of Tenant under this Lease or materially increase Tenant’s obligations under this Lease. Such subordination, nondisturbance and attornment agreement may require Tenant to confirm that (i) Lender and its assigns will not be liable for any misrepresentation, act or omission of Landlord and (ii) pay Lender and its assigns will not be subject to any material fees in excess of those contemplated by the Equity Funding Letter counterclaim, demand or the Debt Commitment Letter (including any market “flex” provisions contained therein)offsets which Tenant may have against Landlord.

Appears in 1 contract

Sources: Lease Agreement (Life Time Fitness Inc)

Financing. (a) Each The Company and Parent shall cooperate with each other with respect to customary actions for transactions of this type that are reasonably requested by Parent to be taken by the Company or its Subsidiaries under the Company Credit Agreement or any of the Company’s outstanding debt securities in connection with the Merger; provided that (i) none of the Company, its Subsidiaries or their representatives shall be required to execute or deliver, or agree to any change or modification of, any agreement that is effective prior to the Closing or that would be effective if the Closing does not occur, or deliver or cause to be delivered any opinion of counsel in connection therewith and (ii) Parent shall provide a customary indemnity in connection therewith. (b) Parent and Merger Sub Subsidiary shall, and shall cause their respective Subsidiaries to, use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the Committed Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Commitment Letters, including using reasonable best efforts to (i) maintain in effect the Commitment Letters until the Merger and comply the other transactions contemplated by this Agreement are consummated (it being acknowledged that the commitments under the Commitment Letters may be reduced to the extent that Parent receives cash proceeds from any Financing at or prior to the Effective Time, which cash proceeds are (x) segregated and limited in use to the consummation of the Merger and the other transactions contemplated by this Agreement or (y) funded into an escrow account with release provisions not less favorable to Parent than the Financing Lettersconditions contained in the Commitment Letters (“Permitted Commitment Reductions”)) and (ii) unless Parent shall have reduced the commitments under the Commitment Letters to zero pursuant to Permitted Commitment Reductions, (iix) timely (and in any event by the Effective Time) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined facilities contemplated by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Commitment Letters on the terms and subject only conditions set forth therein, (y) satisfy or cause to be waived on a timely basis (and in any event by the Effective Time) all conditions (including the market “flex” provisions) to funding applicable to Parent set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), that are within its (ivor any Affiliate’s) control and otherwise comply with its obligations thereunder and (z) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Mergersuch conditions, consummate the Financing consummate, and cause the lenders and Financing Sources to fund, the other Persons committing to fund the Financing to fund the Committed Financing at the Closing, Effective Time (v) including using reasonable best efforts to enforce all of its rights under the Financing Letters and the definitive agreements relating to the Financing and Commitment Letters). (vic) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Nothing herein shall not, without the prior written consent of the Company, agree to prevent Parent from substituting all or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Committed Financing provided for in the Commitment Letters with one or more commitments from financial institutions to provide substitute debt financing (including by increasing i) in an amount, together with any cash and marketable securities of Parent and any then-available Committed Financing, sufficient for Parent and Merger Subsidiary to satisfy the amount of fees to be paid or original issue discount as compared to Transaction Uses at the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountEffective Time, (Bii) that does not impose new or additional conditions precedent to the availability of the Committed Financing or otherwise expand, amend amend, modify or modify waive any of the conditions precedent to the Committed Financing in a manner and (iii) that would not reasonably be expected to materially delay or prevent (A) make the timely funding of the Committed Financing (or the satisfaction of the conditions to obtaining the Financing) on the Closing Date Committed Financing materially less likely to occur or (CB) materially and adversely impact affect the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Commitment Letters or the definitive agreements relating thereto (the “Substitute Financing”), and to obtain new financing commitment letter(s) with respect to such Substitute Financing (the Financing“Substitute Commitment Letter(s)”). Parent shall promptly deliver provide true, complete and correct copies of such Substitute Commitment Letter(s) to the Company. In the event Substitute Commitment Letter(s) are obtained, the definitions of “Commitment Letters” and “Committed Financing” set forth in this Agreement shall be deemed to have been modified as appropriate to reflect such Substitute Commitment Letter(s) and such Substitute Financing contemplated thereby. (d) If any portion of the Committed Financing becomes unavailable, and such unavailable amount is reasonably required for Parent and Merger Subsidiary to satisfy the Transaction Uses at the Effective Time (such event, an “Original Financing Failure”), Parent shall promptly notify the Company copies in writing of the Original Financing Failure and Parent shall use its reasonable best efforts to arrange and obtain, as promptly as reasonably practicable, alternative financing from alternative sources (i) in an amount, together with any amendmentcash and marketable securities of Parent and any then-available Committed Financing, modificationsufficient for Parent and Merger Subsidiary to satisfy the Transaction Uses at the Effective Time, supplement(ii) that does not impose new or additional conditions to the Committed Financing or otherwise expand, consent amend, modify or waiver waive any conditions to the Committed Financing and (iii) that would not reasonably be expected to (A) make the timely funding of the Committed Financing or under any the satisfaction of the conditions to obtaining the Committed Financing Letter materially less likely to occur or (B) materially and adversely affect the ability of Parent to enforce its rights against other parties to the Commitment Letters or the definitive agreements relating thereto (the “Alternative Financing”), and to obtain new financing commitment letter(s) with respect to such Alternative Financing (the “Alternative Commitment Letter(s)”). Parent shall promptly provide true, complete and correct copies of such Alternative Commitment Letter(s) to the Company. In the event Alternative Commitment Letter(s) are obtained, the definitions of “Commitment Letters” and “Committed Financing” set forth in this Agreement shall be deemed to have been modified as appropriate to reflect such Alternative Commitment Letter(s) and such Alternative Financing promptly upon execution thereof. Notwithstanding anything contemplated thereby. (e) Parent shall not permit any amendment, modification to, or any waiver of any provision or remedy under, any of the Commitment Letters or the Equity Purchase Agreement or any definitive agreement related to the contrary Committed Financing unless (i) such amendment, modification or waiver would not impose new or additional conditions to the Committed Financing or Equity Investment or otherwise expand, amend, modify or waive any conditions to the Committed Financing or the Equity Investment and (ii) such amendment, modification or waiver would not reasonably be expected to (A) make the timely funding of the Committed Financing or the Equity Investment or the satisfaction of the conditions to obtaining the Committed Financing or the Equity Investment materially less likely to occur, (B) reduce the aggregate amount of the Committed Financing or the Equity Investment to an amount, together with the proceeds of the Equity Investment (in this Agreementthe case of a reduction to the Committed Financing) or the Committed Financing (in the case of a reduction to the Equity Investment) and any cash and marketable securities of Parent, nothing contained less than the amount necessary for Parent and Merger Subsidiary to satisfy the Transaction Uses at the Effective Time or (C) materially and adversely affect the ability of Parent to enforce its rights against other parties to the Commitment Letters or the Equity Purchase Agreement or such definitive agreements. Parent shall promptly provide true, complete and correct copies of each amendment, modification and waiver to any of the Commitment Letters or the Equity Purchase Agreement or any definitive agreement related to the Committed Financing to the Company. (f) Parent shall keep the Company reasonably informed on a timely basis of the status of Parent’s efforts to obtain the Committed Financing and to satisfy the conditions thereof and shall give the Company prompt notice of any fact, change, event or circumstance that is reasonably likely to have, individually or in this Section 5.04 the aggregate, a material adverse impact on the Committed Financing. Parent shall requiregive the Company prompt notice of (x) any material breach or material default by any party to the Commitment Letters, or any definitive agreements related to the Committed Financing, in each case of which Parent becomes aware, (y) actual or, to the knowledge of Parent, threatened in writing withdrawal, repudiation, or termination of any of the Commitment Letters or such definitive agreements and (z) the receipt of any written notice or other communication, in each case received from any Financing Source with respect to any (1) material breach of Parent’s obligations under the Commitment Letters or definitive agreements related to the Committed Financing, or breach, default, withdrawal, termination or repudiation by any party to the Commitment Letters or definitive agreements related to the Committed Financing, (2) material dispute or disagreement between or among any parties to the Commitment Letter or definitive agreements related to the Committed Financing or any provisions of the Commitment Letters, in each case, with respect to the obligation to fund any amount of the Committed Financing to be funded at the Effective Time; or (3) failure or anticipated failure by such Financing Source to fund any part of its commitments under any Commitment Letter or definitive agreement related to the Committed Financing to be funded at the Effective Time; provided that in no event shall Parent be under any obligation to disclose any information pursuant to clauses (1), (2) or (3) that would waive the protection of attorney-client privilege, but Parent shall use reasonable best efforts to disclose such information in a way that would not jeopardize such privilege. (g) From and after the date of this Agreement, and through the earlier of the Effective Time and the date on which this Agreement is terminated in accordance with Article IX, the Company shall, and the Company shall cause each of its Subsidiaries (other than the MLP and its Subsidiaries) to, use its and their reasonable best efforts to cause its and their representatives to, use their respective reasonable best efforts to provide such customary cooperation as is reasonably requested by Parent in writing to assist Parent in the arrangement, syndication and consummation of the Committed Financing or Merger Sub other bank financing or capital markets financing entered into to finance the Transaction Uses (the “Financing”), including using reasonable best efforts to (A) cause the management team of the Company to participate in a reasonable number of requested meetings, presentations, road shows, due diligence sessions, drafting sessions and sessions with rating agencies in connection with the Financing, in each case upon reasonable notice and at mutually agreed upon dates and times, (B) reasonably assist Parent and the Financing Sources with their preparation of (1) materials for rating agency presentations and investor and road show presentations, (2) bank information memoranda (including a public-side version thereof), syndication documents, registration statements, prospectuses, offering memoranda and private placement memoranda and (3) similar documents and materials, in each case necessary, customary or advisable in connection with any portion the Financing to the extent reasonably requested by Parent and limited to information to be deemed contained therein with respect to the Company and its Subsidiaries, (C) subject to customary confidentiality provisions and disclaimers, provide customary authorization letters to the Financing Sources authorizing the distribution of information to prospective lenders and containing a customary representation that such information does not contain a material misstatement or construed omission and containing a representation to requirethe Financing Sources that the public side versions of such documents, either if any, do not include material non-public information about the Company or its Subsidiaries or their respective securities, (D) provide the Financing Sources, at least three business days prior to the closing date of the applicable Financing (to the extent requested in writing at least 10 business days prior to the closing date of the applicable Financing) with all documentation and other information required with respect to the Company and its Subsidiaries by applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, Title III of Pub. L. 107-56 (the “PATRIOT Act”) and 31 C.F.R. § 1010.230, and applicable Anti-Corruption Laws, Economic Sanctions/Trade Laws and Money Laundering Laws, (E) following written request therefor, provide information concerning the Company and its Subsidiaries reasonably necessary for the preparation and completion of the definitive documents governing or relating to the Financing (including any schedules, customary certificates, annexes or exhibits thereto and other pertinent and customary information as Parent or Merger Sub shall reasonably request in order to market, syndicate and consummate the Financing), (F) provide (i) seek audited consolidated balance sheets and related audited consolidated statements of income, comprehensive income, equity and cash flows of the Equity Financing from any source other Company for each of the three fiscal years most recently ended more than sixty (60) days prior to the counterparties toClosing Date, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay unaudited consolidated balance sheets and related unaudited consolidated statements of income, comprehensive income and cash flows of the Company for each subsequent fiscal quarter ended more than forty (40) days prior to the Closing Date and (iii) other historical financial information regarding the Company and its Subsidiaries reasonably necessary to permit Parent to prepare pro forma financial statements customarily included in marketing and offering documents for an offering of debt securities of Parent on a registration statement filed with the SEC, (G) cause its independent accountants and independent petroleum consultants to provide customary assistance and cooperation reasonably requested by Parent with any material fees offering of debt securities, including (i) providing any necessary written consents to use their audit or other reports relating to financial statements or reserve information of the Company and its Subsidiaries and to be named as an “Expert” in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter any document related to any applicable Financing and (ii) participating in customary due diligence sessions and providing any customary “comfort” letters (including customary “negative assurance” comfort for any market “flex” provisions contained thereinapplicable Financing), (H) cause its independent petroleum consultants to provide any customary letters and consents regarding customary and appropriate reserve information of the Company and its Subsidiaries and (I) cooperate with the Financing Sources’ due diligence, to the extent customary and reasonable.

Appears in 1 contract

Sources: Merger Agreement (Anadarko Petroleum Corp)

Financing. (a) Each Purchaser shall deposit with and otherwise make available to the Bank issuing the Letters of Parent Credit sufficient readily available funds such as required by the Bank to issue the Letters of Credit in the L/C Amount (as hereinafter defined), but in no event more than the principal amount of the Timber Note and Merger Sub the amount of the prepaid LC fees and any LC Bank fees, commissions and expenses payable at Closing, and Purchaser shall use its reasonable best efforts to take, or cause arrange for a Bank to be taken, all actions issue Letters of Credit on terms and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain conditions that are consistent with the Financing Timber Note Indicative Terms in an aggregate amount of not less than the Installment Note Purchase Price plus one interest payment on the terms and subject only to respective Installment Note (the conditions (including the market “flex” provisions) set forth in the Financing LettersL/C Amount”), including using reasonable best efforts to (i) maintain as soon as practicable to obtain a firm commitment (each, an “L/C Commitment Letter”), in effect form and comply with the Financing Letterssubstance reasonably satisfactory to Seller, to provide such Letters of Credit, (ii) to negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding such Letters of the Debt Financing) with respect to the Debt Financing Credit on the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt L/C Commitment Letter (or on other terms thatnot materially less beneficial to Purchaser Parent, with respect to conditionality, are not less favorable to Parent Purchaser or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter)Seller, (iii) to satisfy on a timely basis all conditions applicable to Parent and Merger Sub such Purchaser in the Financing Letters and the such definitive agreements related thereto that are within its control, and (including by consummating iv) to consummate the Equity Financing issuance of the Letters of Credit at or prior Closing. (b) In the event any portion of the Letters of Credit becomes unavailable to the Closing Purchaser on the terms and subject to the conditions set forth contemplated in the Equity Funding Letter) (orL/C Commitment Letters, if necessary or deemed advisable by Purchaser shall use its reasonable best efforts to arrange to obtain letters of credit, including from alternative sources, on terms and conditions that are not materially less beneficial to Purchaser Parent, seek Purchaser or Seller and that are consistent with the waiver Timber Note Indicative Terms, promptly following the occurrence of conditions applicable such event. Purchaser shall give Seller prompt notice upon becoming aware of any material breach by any party to Parent and Merger Sub contained in such Debt any L/C Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement any L/C Commitment Letter. Purchaser shall keep Seller informed on a reasonably current basis in reasonable detail of the status of its efforts to arrange the Letters of Credit and shall not permit any material amendment or modification to be made to, or grant any waiver of any material provision or remedy under, the Financing L/C Commitment Letters or without the definitive agreements relating to the Financing if prior written consent of Seller (such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees consent not to be paid unreasonably withheld or original issue discount as compared to delayed). Purchaser and Seller shall consult in good faith and cooperate in determining the fees maximum aggregate amounts of Letters of Credit per Bank and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to terms of the Company copies Letters of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Credit documentation.

Appears in 1 contract

Sources: Timberland Purchase and Sale Agreement (Glatfelter P H Co)

Financing. (ai) Each of Parent and Merger Sub Buyer shall use reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate obtain funds sufficient to fund the Required Amounts on or prior to the date upon which the Transaction is required to be consummated pursuant to the terms hereof. In furtherance and not in limitation of the foregoing, Buyer shall take, or cause to be taken, all actions and do, or cause to be done, all things necessary, advisable or proper to obtain the proceeds of the Financing on the terms and subject only conditions described in the Commitment Letters as promptly as possible but in any event prior to the conditions (including date upon which the market “flex” provisions) set forth in Transaction is required to be consummated pursuant to the Financing Lettersterms hereof, including using reasonable best efforts to by (i) maintain maintaining in effect and comply with the Financing Commitment Letters, (ii) negotiate negotiating and enter entering into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection Financing (the “Definitive Agreements”) consistent with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), contained therein and (iii) satisfy satisfying on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Commitment Letters and the definitive agreements related thereto Definitive Agreements and complying with its obligations thereunder. Buyer shall comply with its obligations, and enforce its rights, under the Commitment Letters and Definitive Agreements in a timely and diligent manner. (including by consummating the Equity Financing at ii) Buyer shall not, on or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall notDate, without the prior written consent of the Company, agree to or Seller: (A) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Commitment Letters or the definitive agreements relating Definitive Agreements if such amendment, modification, waiver or remedy (1) adds new (or adversely modifies any existing) conditions to the Financing if such termination, amendment, supplement, modification consummation of all or waiver would (A) reduce the aggregate amount of any portion of the Financing Financing, (including by increasing 2) reduces the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountFinancing, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C3) adversely impact affects the ability of Parent or Merger Sub, as applicable, Buyer to enforce its rights against other parties to the Financing Commitment Letters or the definitive agreements Definitive Agreements, relative to the ability of Buyer to enforce its rights against the other parties to the Commitment Letters as in effect on the date hereof or (4) could otherwise reasonably be expected to prevent, impede or delay the consummation of the Transaction; or (B) terminate the Commitment Letters or any Definitive Agreement. Buyer shall promptly deliver to Seller copies of any such amendment, modification, waiver or replacement. (iii) In the event that any portion of the Debt Financing becomes unavailable, regardless of the reason therefor, Buyer will (A) use reasonable best efforts to obtain alternative debt financing (in an amount sufficient, when taken together with the available portion of the Debt Financing, to consummate the Transaction and to pay the Closing Purchase Price) from the same or other sources and which do not include any conditions to the consummation of such alternative debt financing that are more onerous than the conditions set forth in the Debt Financing and (B) promptly notify Seller of such unavailability and the reason therefor. For the purposes of this Agreement, the term “Debt Commitment Letter” shall be deemed to include any commitment letter (or similar agreement) with respect to any alternative financing arranged in compliance herewith (and any Debt Commitment Letter remaining in effect at the time in question). Buyer shall provide Seller with prompt oral and written notice of any actual or threatened breach, default, termination or repudiation by any party to the Commitment Letters or any Definitive Agreement and a copy of any written notice or other written communication from any Lender or Investor or other financing source with respect to any breach, default, termination or repudiation by any party to the Commitment Letters or any Definitive Agreement of any provision thereof. Buyer shall keep Seller reasonably informed on a current basis of the status of its efforts to consummate the Financing. The foregoing notwithstanding, compliance by Buyer with this Section 5(i)(iii) shall not relieve Buyer of its obligations to consummate the Transaction whether or not the Financing or any other financing is available. (iv) Prior to the Closing, Seller shall provide, and shall cause NLC to provide, and shall use its reasonable efforts to cause their respective representatives to provide, all cooperation reasonably requested by Buyer in writing necessary for the arrangement of the Debt Financing, including by using reasonable best efforts to (A) to the extent required by the Debt Financing, facilitate the pledging of collateral, effective no earlier than the Closing, (B) furnish Buyer and the Lenders and Investors as promptly as reasonably practicable following the delivery of a request therefor to Seller by Buyer (which notice shall state with specificity the information requested) such financial and other information regarding NLC as is reasonably available to Seller at such time and is customarily required in connection with the execution of financings of a type similar to the Debt Financing (provided that Seller will have no obligation to prepare pro forma financial information or post-Closing financial information), and (C) provide all documentation and other information about NLC and its Subsidiaries required by the Debt Financing Sources to comply with “know your customer” and anti-money laundering rules and regulations, including, without limitation, the USA PATRIOT Act, Title III of Pub. L. 107-56, in each case as reasonably requested by Buyer at least ten (10) Business Days prior to the Closing Date; it being understood that Seller shall have satisfied its obligations set forth in clauses (A) through (C) of this sentence if Seller shall have used its reasonable efforts to comply with such obligations whether or not any applicable deliverables are actually obtained or provided. The foregoing notwithstanding, none of Seller or its representatives shall be required to take or permit the taking of any action pursuant to this Section 5(i)(iv) that: (i) would require Seller, NLC or any of their respective Affiliates or any Persons who are officers or directors of Seller, NLC or any of their respective Affiliates to pass resolutions or consents to approve or authorize the execution of the Financing or enter into, execute or deliver any certificate, document, instrument or agreement or agree to any change or modification to any existing certificate, document, instrument or agreement, (ii) would cause any representation or warranty in this Agreement to be breached by Seller, (iii) would require Seller, NLC or any of their respective Affiliates to pay any commitment or other similar fee or incur any other expense, liability or obligation in connection with the Financing (in the case of NLC and its Subsidiaries) prior to the Closing or (in the case of Seller and its Affiliates other than NLC and its Subsidiaries) at any time, (iv) would cause any director, officer or employee or stockholder of Seller, NLC or any of their respective Affiliates to incur any personal liability, (v) would conflict with the organizational documents of Seller, NLC or any of their respective Affiliates or any Laws, (vi) would 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 Seller, NLC or any of their respective Affiliates is a party, (vii) would require Seller, NLC or any of their respective Affiliates, or any representatives of any of the foregoing, to provide access to or disclose information that Seller, NLC or any of their respective Affiliates determines would jeopardize any attorney-client privilege of Seller, NLC or any of their respective Affiliates, (viii) would require Seller, NLC or any of their respective Affiliates, or any representatives of any of the foregoing, to prepare any financial information or statements that are not available to Seller, NLC or any of their respective Affiliates and prepared in the ordinary course of financial reporting practice or (ix) would unreasonably interfere with the ongoing operations of Seller, NLC or any of their respective Affiliates. Nothing contained in this Section 5(i)(iv) or otherwise shall require NLC or any of its Subsidiaries, prior to the Closing, to be an issuer or other obligor with respect to the Debt Financing. Nothing contained in this Section 5(i)(iv) or otherwise shall require Seller or any of its Affiliates (other than NLC and its Subsidiaries), at any time, to be an issuer or other obligor with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendmentBuyer shall, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofrequest by Seller, reimburse Seller for all reasonable out-of-pocket costs incurred by Seller or any of its Affiliates or any of their respective representatives in connection with such cooperation and shall indemnify and hold harmless Seller and its 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, any action taken by them at the request of Buyer pursuant to this Section 5(i)(iv) and any information used in connection therewith (other than information provided in writing by Seller or any of its Affiliates specifically in connection with Seller’s obligations pursuant to this Section 5(i)(iv)). Notwithstanding anything to For the contrary in this Agreementavoidance of doubt, nothing the Parties acknowledge and agree that the provisions contained in this Section 5.04 5(i)(iv) represent the sole obligation of Seller, its Affiliates and their respective representatives with respect to cooperation in connection with the arrangement of any financing (including the Financing) to be obtained by Buyer with respect to the Transaction and no other provision of this Agreement (including the exhibits and schedules hereto) shall require, and in be deemed to expand or modify such obligations. In no event shall the reasonable best efforts receipt or availability of Parent any funds or Merger Sub be deemed or construed to requirefinancing (including, either Parent or Merger Sub to (i) seek for the Equity Financing from any source other than the counterparties to, or in any amount in excess avoidance of that contemplated bydoubt, the Equity Funding LetterFinancing) by Buyer or any of its Affiliates or any other financing or other transactions be a condition to any of Buyer’s obligations under this Agreement. (v) All non-public or otherwise confidential information regarding Seller, NLC or (iiany of their respective Affiliates obtained by Buyer or its representatives pursuant to this Section 5(i) pay shall be kept confidential in accordance with the Confidentiality Agreement. Seller hereby consents to the use of NLC’s and its Subsidiaries’ logos in connection with the Financing; provided that such trademarks and logos are used solely in a manner that is not intended to or reasonably likely to harm or disparage Seller, NLC or any material fees in excess of those contemplated by the Equity Funding Letter their respective Affiliates or the Debt Commitment Letter (including reputation or goodwill of Seller, NLC or any market “flex” provisions contained therein)of their respective Affiliates.

Appears in 1 contract

Sources: Stock Purchase Agreement (Hilltop Holdings Inc.)

Financing. (a) Each of Parent and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all actions actions, and shall use reasonable best efforts to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the proceeds of the Financing on the terms and subject only to conditions described in the conditions Financing Commitments (including including, as necessary, the market “flex” provisionsprovisions contained in any related fee letter) set forth as promptly as possible but in any event prior to the Financing Lettersdate upon which the Merger is required to be consummated pursuant to the terms hereof, including by using its reasonable best efforts to (i) maintain in effect the Financing Commitments and comply with the Financing Lettersits obligations thereunder in all material respects, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on (the “Definitive Agreements”) consistent with the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Debt Commitment Letter (or including, as necessary, the “flex” provisions contained in any related fee letter) or, if available, on other terms that, with respect to conditionality, that (A) are not less favorable acceptable to Parent in its sole discretion, (B) would not reasonably be expected to delay (taking into account the expected timing of the Marketing Period) or Merger Sub than adversely affect the terms ability of Parent to consummate the transactions contemplated hereby and conditions (including market “flex” provisionsC) set forth in the Debt Commitment Letter)would otherwise be permitted by Section 7.13(b) and comply with its obligations thereunder, and (iii) taking into account the expected timing of the Marketing Period, satisfy (or, if reasonably required to obtain the Financing, seek the waiver of) on a timely basis all conditions applicable in the Financing Commitments and the Definitive Agreements that are within the control of Parent and its Subsidiaries. In the event that all conditions contained in the Financing Commitments or the Definitive Agreements (except those that, by their nature, are to be satisfied at the Closing) have been satisfied or waived, Parent and Merger Sub in shall use their reasonable best efforts to cause the Debt Financing Letters Sources and the definitive agreements related thereto (including by consummating the Equity Financing at or prior Sources thereunder to comply with their respective obligations, including to fund the Financing required to consummate the transactions contemplated by this Agreement and to pay related fees and expenses on the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver Date. Each of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)shall use its reasonable best efforts to comply with its respective obligations, (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights respective rights, under the Financing Letters Commitments and Definitive Agreements in a timely and diligent manner. Parent and Merger Sub shall give the definitive agreements relating Company prompt notice of any material breach by any party to the Financing and (vi) otherwise comply with Parent’s and Commitments or the Definitive Agreements of which Parent or Merger Sub’s covenants , as applicable, has obtained Knowledge and the receipt of any written notice or other obligations under written communication from any Debt Financing Source or Equity Financing Source with respect to any breach, default, termination or repudiation by any party to the Financing Letters and the definitive agreements relating to the Financing. Parent, Commitments or any Definitive Agreement of any provision thereof. (b) Neither Parent nor Merger Sub and the Guarantors shall notshall, without the prior written consent of the Company, agree to or : (i) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Letters or the definitive agreements relating to the Financing Commitments if such termination, amendment, supplementmodification, modification waiver or waiver would remedy (A) reduce adds any new (or adversely modifies any existing) conditions to the aggregate amount consummation of all or any portion of the Financing Financing, (including by increasing B) reduces the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing to an amount that, together with available cash at the Company and its Subsidiaries and other available cash or other funds of Parent and its Subsidiaries, would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or be less than the Required Financing Amount, (C) adversely impact affects in a material respect the ability of Parent or Merger Sub, as applicable, to enforce its rights against the other parties to the Financing Letters Debt Commitment Letter, the Definitive Agreements or the definitive agreements with respect Equity Commitment Letters, in each case, as so amended, replaced, supplemented or otherwise modified, relative to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts ability of Parent or Merger Sub Sub, as applicable, to enforce its rights against the other parties to the Debt Commitment Letter or the Equity Commitment Letters, as applicable, as in effect on the date hereof or (D) could otherwise reasonably be deemed expected to prevent, materially impede or construed to requirematerially delay the consummation of the Merger and the other transactions contemplated by this Agreement (taking into account the expected timing of the Marketing Period); provided, either that Parent or Merger Sub may amend the Debt Commitment Letter to (i) seek add lenders, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the Equity Financing from any source other than Debt Commitment Letter as of the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, date hereof; or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or terminate the Debt Commitment Letter (including or any market “flex” provisions contained therein).of the Equity Commitment Letters unless such

Appears in 1 contract

Sources: Merger Agreement (Blackhawk Network Holdings, Inc)

Financing. (a) Each of Parent and Merger Sub Buyer shall use its, and shall cause its controlled Affiliates to use their, reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth in the Financing LettersCommitment Papers contemporaneously with the Closing, including by using its reasonable best efforts to (i) maintain in effect and comply with the Financing LettersCommitment Papers, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection Financing (the “Definitive Agreements”) consistent with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth contained in the Debt Commitment Letter), Papers and (iii) if all of the conditions to the Closing contained in Article VI are satisfied or waived (other than those conditions that by their terms are to be satisfied or waived at the Closing or will be satisfied or waived upon funding) and the Marketing Period has ended, satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the Date all conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek Commitment Papers and the waiver of Definitive Agreements and comply with its obligations thereunder. In the event that all conditions applicable to Parent and Merger Sub contained in such Debt the Commitment Letter Papers or such definitive agreements related thereto), the Definitive Agreements (iv) upon other than the satisfaction or waiver consummation of the conditions Transaction and other than those that by their nature are to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing be satisfied at the Closing) have been satisfied or waived, (v) Buyer shall use its reasonable best efforts to enforce its rights under the Financing Letters and Commitment Papers, including using reasonable best efforts to cause the definitive agreements relating Lender Related Parties to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other their respective obligations under the Financing Letters and the definitive agreements relating thereunder, including to fund the Financing. Parent, Merger Sub and the Guarantors Buyer shall not, without the prior written consent of the CompanySeller, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing Commitment Papers if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountFinancing, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially prevent, impede or delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or , (C) adversely impact the ability of Parent or Merger Sub, as applicable, Buyer to enforce its rights against the other parties to the Financing Letters Commitment Papers or (D) would otherwise reasonably be expected to prevent or impede or delay the definitive agreements funding of the Financing, provided, that at Closing, Buyer may reduce the commitments under the Commitment Papers substantially contemporaneously with respect the payment of all amounts due at Closing to the Financingextent Buyer is using funds other than proceeds of the Financing to make such payments. Parent Buyer shall promptly deliver to the Company Seller true and complete copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing Commitment Papers promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 . (b) Buyer shall require, keep Seller informed on a reasonably prompt basis and in no event reasonable detail of the status of its efforts to arrange the Financing. Without limiting the generality of the foregoing, Buyer shall the reasonable best efforts give Seller prompt written notice of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek any actual or threatened breach, default, termination, cancellation or repudiation by any party to the Equity Financing Commitment Papers and the receipt of any written notice or other written communication from any source other than Financing Source with respect to any breach, default, termination, cancellation or repudiation by any party to the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding LetterCommitment Papers, or (ii) pay the occurrence of an event or development that could reasonably be expected to adversely affect the ability of Buyer to obtain all or any material fees portion of the Financing on the Closing Date to the extent necessary to fund the Closing Cash Consideration. As soon as reasonably practicable after Seller delivers to Buyer a written request, Buyer shall provide any information reasonably requested by Seller relating to any circumstance referred to in excess of those contemplated by the Equity Funding Letter or immediately preceding sentence. If the Debt Commitment Letter Financing becomes unavailable on the terms and conditions (including any applicable market “flex” provisions contained thereinprovisions) contemplated by the Commitment Papers (other than solely as a result of Seller’s material breach of any covenant in this Section 5.22), Buyer shall (i) use its reasonable best efforts to arrange and obtain, in replacement thereof alternative financing (the “Alternative Financing”) in an amount, when combined with cash on hand of Buyer or otherwise available to Buyer through its existing credit facilities, sufficient to consummate the Transaction with (a) terms (including market “flex” provisions) (taken as a whole) not materially less favorable to Buyer (or its Affiliates) than the terms set forth in the Commitment Papers, and (b) conditions (taken as a whole) not less favorable to Buyer (or its Affiliates) than the conditions set forth in the Commitment Papers and (ii) promptly notify Seller of such unavailability and the reason therefor. Upon any amendment, supplement, modification, waiver or replacement of the Commitment Papers in accordance with the terms hereof (including upon the execution of any commitment letter or fee letter in respect of any Alternative Financing), the terms “Financing”, “Commitment Letter”; “Fee Letter” and “Commitment Papers” shall mean the applicable Financing, Commitment Letters, Fee Letters and Commitment Papers as so amended, supplemented, modified, waived or replaced, and Buyer shall deliver to Seller true and complete copies of the alternative debt financing letters (including fee letters that shall have fee or related information redacted in a manner consistent with the Fee Letter delivered as of the date of this Agreement). The foregoing notwithstanding, compliance by Buyer with this Section 5.22 shall not relieve Buyer of its obligation to consummate the transactions contemplated by this Agreement whether or not the Financing is available.

Appears in 1 contract

Sources: Asset Purchase Agreement (Science Applications International Corp)

Financing. (a) Each of Parent and Merger Sub shall use their reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, do all things necessary, proper necessary or advisable to consummate arrange and obtain the Financing on a timely basis (taking into account the anticipated timing of the Marketing Period) and, in any event not later than the date the Closing is required to be effected in accordance with Section 1.02, on the terms and subject only conditions (including, to the conditions (including extent applicable, the market “flex” provisions) described in the Financing Commitments or otherwise on terms acceptable to Parent so long as such other terms would be permitted under the restrictions on amendments, modifications and replacements otherwise set forth in this Section 5.07 (for purposes of this Section 5.07, the Financing LettersCommitments and the Debt Commitment Letter shall include any Fee Letter), including using their reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Commitment Letters on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market as such terms may be modified or adjusted in accordance with the terms of, and within the limits of the flex provisions contained in any Fee Letter, or otherwise as acceptable to Parent so long as such terms would be permitted pursuant to the next succeeding sentence (the “flex” provisions) set forth in the Definitive Debt Commitment LetterFinancing Agreements”), (iiiii) satisfy on a timely basis (taking into account the anticipated timing of the Marketing Period) (or, if deemed advisable by Parent or Sub, obtain a waiver of) all terms, conditions and covenants, including with respect to the payment of any commitment, engagement or placement fees required as a condition to the Financing, applicable to Parent and Merger or Sub in the Financing Letters Commitments and the definitive agreements related thereto Definitive Debt Financing Agreements, (iii) if the conditions to the availability of the Financing have been satisfied or waived (or with the funding of the Financing, would be concurrently satisfied), consummate and cause the Financing Sources to fund (including by consummating funding the Equity Bridge Facility (as defined in the Debt Commitment Letter) to the extent Notes (as defined in the Debt Commitment Letter) have not then been issued), the Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon in the satisfaction or waiver event that all of the conditions to Parent’s and Merger Sub’s obligations to consummate Disclosed Conditions have been satisfied (or with the Offer and funding of the MergerFinancing, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closingwould be concurrently satisfied) or waived, (v) enforce its their rights under the Financing Letters Commitments and the definitive agreements relating to the Definitive Debt Financing Agreements. Parent and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, not agree to any amendments, restatements, supplements or permit any termination of modifications to or amendment, supplement or modification to be made toreplacements of, or grant any waiver of waivers of, any condition or other provision under, under the Financing Letters Commitments or the definitive agreements relating to the Financing without the prior written consent of the Company other than amendments, restatements, supplements, modifications, replacements or waivers to the Debt Commitment Letters or the Definitive Debt Financing Agreements if such termination, amendment, supplement, modification or waiver would not (and would not be reasonably expected to) (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).as a result of changing

Appears in 1 contract

Sources: Merger Agreement (MULTI COLOR Corp)

Financing. (a) Each of Parent and Merger Sub shall use reasonable use, and cause its Affiliates to use, its best efforts to take, or cause to be taken, all actions and to do, or cause to be donedone (including, if necessary, enforcement of their respective rights under the Facility Agreement), all things necessary, proper or advisable to consummate and obtain the Debt Financing on the terms and subject only conditions reasonably satisfactory to the conditions Special Committee (including on behalf of the market “flex” provisions) set forth in the Financing LettersCompany), including using reasonable (and causing their Affiliates to use) their respective best efforts to (i) maintain in effect and comply with enter into the Financing LettersFacility Agreement as promptly as practicable after the date of this Agreement, (ii) negotiate satisfy, or cause their Representatives to satisfy, on a timely basis all conditions applicable to Parent, Merger Sub or their Representatives in such Facility Agreement and enter into definitive agreements (whichiii) cause the Lender to fund the Debt Financing at the Effective Time. In the event any portion of the Debt Financing becomes unavailable on the terms and conditions contemplated in the Facility Agreement, with respect Parent and Merger Sub shall use their respective best efforts to arrange and obtain, as promptly as practicable following the occurrence of such event, alternative financing from alternative sources, on terms not materially less favorable in the aggregate to Parent and Merger Sub (and their respective Affiliates) than those set forth in the Debt Financing as in effect on the date of this Agreement, in an amount sufficient, when added to the bridge facility documentationportion of the Debt Financing that is available, to consummate the transactions contemplated by this Agreement (the "Alternative Financings"); provided, that, notwithstanding anything to the contrary in this Section 6.8 or in any other provision of this Agreement, in no event shall not Parent or Merger Sub be required until determined by to amend or waive any of the terms or conditions hereof. Parent shall deliver to be reasonably likely the Special Committee (on behalf of the Company) as promptly as practicable (and no later than two Business Days) after such execution, true and complete copies of all agreements or other arrangements pursuant to be necessary which any such alternative sources shall have committed to provide any such Alternative Financings (the "Alternative Financing Agreements").Parent and Merger Sub further agree that, any information, including any documents, internal budgets, projections, plans or forecasts of its revenues, or other materials provided to the Lender in connection with the funding of the Debt Financing) with respect Financing and Alternative Financings shall be provided to the Debt Special Committee at the same time. (b) To the extent applicable and subject to the terms and conditions of this Agreement, Parent and Merger Sub shall use their respective best efforts to obtain the Alternative Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Alternative Financing Agreements. Each of Parent or and Merger Sub than shall use its best efforts to: (i) maintain in effect the terms and conditions Alternative Financing Agreements; (including market “flex” provisions) set forth in the Debt Commitment Letter), (iiiii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Alternative Financing Letters and the definitive agreements related thereto Agreements within its control; (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letteriii) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and financing sources for the other Persons committing to fund the Alternative Financing to fund the Alternative Financing at the Closing, Effective Time; and (viv) enforce its rights under the Alternative Financing Letters and the definitive agreements relating to the Financing and Agreements. (vic) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Neither Parent nor Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement amendment or modification to be made to, or grant consent to any waiver of any provision provisions or remedy under, the Facility Agreement and if applicable, the Alternative Financing Letters or the definitive agreements relating to the Financing Agreements, if such termination, amendment, supplement, modification or waiver would (Ai) reduce reduces the aggregate amount of any portion of the Debt Financing (including by increasing changing the amount of fees to be paid or original issue discount as compared to discount) contemplated in the fees Facility Agreement and original issue discount contemplated by if applicable, the Alternative Financing Letters on the date of this Agreement Agreements (unless the Debt Financing or Equity Financing is increased by a an amount corresponding amount) to such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountreduction), (Bii) impose imposes new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to (x) prevent or materially delay or prevent the funding ability of Parent to consummate the Financing (or satisfaction of Merger and the conditions to the Financing) on the Closing Date other transactions contemplated hereby or (Cy) adversely impact the ability of Company, Parent or Merger Sub, as applicable, Sub to enforce its rights against the other parties to the Facility Agreement and if applicable, the Alternative Financing Letters or Agreements. For purposes of clarification, the definitive agreements with respect foregoing shall not prohibit Parent from amending the Facility Agreement to the Financingadd additional lender(s) (and Affiliates of such additional lender(s)) as a party thereto. Parent shall promptly deliver not release or consent to the Company copies termination of the obligations of the Lender under the Facility Agreement and if applicable, the Alternative Financing Agreements, except for assignments and replacements of an individual lender in connection with any amendmentsyndication of the Debt Financing or Alternative Financings as expressly contemplated by the Facility Agreement and if applicable, modification, supplement, consent or waiver to or under any the Alternative Financing Letter or Agreements. Parent shall give the definitive agreements relating to Special Committee (on behalf of the Financing Company) notice promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from upon becoming aware of any source other than the counterparties breach of any material provisions of, or termination by any party to, or in any amount in excess of that contemplated bythe Facility Agreement and, if applicable, the Equity Funding Letter, Alternative Financing Agreements or (ii) upon the receipt of any written or oral notice or other communication from any Person with respect to any threatened breach or threatened termination by any party to the Facility Agreement and, if applicable, the Alternative Financing Agreements. Parent shall keep the Special Committee (on behalf of the Company) reasonably informed on a reasonably current basis of the status of Parent’s efforts to arrange any Alternative Financing, if applicable. (d) The Company shall, and shall cause its Affiliates to, and shall use its reasonable best efforts to cause its Representatives to, use their reasonable best efforts to cooperate with Parent's reasonable requests in connection with the arrangement, consummation and funding or draw-down of the Debt Financing and if applicable, the Alternative Financing; provided that (i) the Company and its Affiliates (as applicable) shall not be required to pay or agree to pay any material fees or reimburse any expenses or give any indemnities to any Person and (ii) such cooperation by the Company or its Affiliates (as applicable) shall not be required to the extent such cooperation unreasonably interferes with the Company's or its Affiliates' (as applicable) on-going operations. (e) Parent shall, promptly upon termination of this Agreement, (i) reimburse the Company for all reasonable and documented out-of-pocket costs incurred by the Company in excess connection with cooperation provided for in Section 6.8(d); and (ii) reimburse the Company and its Representatives for any and all losses suffered or incurred by it in connection with the arrangement of those the Debt Financing or, if applicable, the Alternative Financing, and any information utilized in connection therewith (other than information provided by the Company or any of its Subsidiaries). All non-public or otherwise confidential information regarding the Company and its Subsidiaries obtained by Parent, Merger Sub, its Affiliates or their respective Representatives pursuant to this Section 6.8 shall be kept confidential in accordance with the terms of the Confidentiality Agreement. Parent and Merger Sub acknowledge and agree that the Company and its Affiliates and its and their respective Representatives shall not, prior to the Effective Time, incur any liability to any person under any financing that Parent and Merger Sub may raise in connection with the transactions contemplated by the Equity Funding Letter this Agreement or the Debt Commitment Letter (including any market “flex” provisions contained therein)cooperation provided pursuant to this Section 6.8.

Appears in 1 contract

Sources: Merger Agreement (China Advanced Construction Materials Group, Inc)

Financing. (a) Each of Parent and Merger Acquisition Sub shall use reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable necessary to consummate and obtain the Financing Financing, on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, Commitments or any Alternative Financing (as defined below) (including any “flex” provisions applicable to the Debt Financing) including using their respective reasonable best efforts to to: (i) comply with and maintain in effect and comply the Financing Commitments in accordance with the Financing Lettersterms and subject to the conditions thereof, in each case until the funding of the Financing, at or prior to Closing, (ii) negotiate and negotiate, enter into and deliver (and, as applicable, cause its Affiliates to negotiate, enter into and deliver) definitive agreements (which, with respect to the bridge facility documentationFinancing (such agreements, shall not be required until determined by Parent the “Definitive Financing Agreements”) on the terms and conditions set forth in the Financing Commitments (including any “flex” provisions applicable to be reasonably likely to be necessary in connection with the funding of the Debt Financing), (iii) with respect satisfy, on a timely basis all conditions and covenants to the Debt Financing on and the terms and subject only Definitive Financing Agreements related thereto to the extent within Parent’s or Acquisition Sub’s control, and (iv) in the event all conditions (including the market “flex” provisions) set forth in Section 6.1 and Section 6.2 have been satisfied or waived (other than those conditions that by their nature are to be satisfied or waived at the Closing) and all conditions applicable to the Debt Financing have been satisfied or waived, cause the Debt Financing Sources to fund the Debt Financing at or prior to the Closing, including through the exercise of their rights and remedies pursuant to the Debt Commitment Letter Letter. (b) Neither Parent nor Acquisition Sub shall agree to or on permit any amendments, supplements, replacements or other terms thatmodifications to, with respect obtain any replacement of, or grant any waivers of, any condition or other provision under the Debt Financing (other than to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) effect any flex provisions set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the CompanyCompany if (and only if) such amendments, agree to supplements, replacements, waivers or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver modifications would (Ai) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless net cash proceeds available from the Debt Financing or Equity Financing is increased by a corresponding amount) such that Parent would not have sufficient cash proceeds (after giving effect to the aggregate amount of fundings contemplated under the Financing would be below Capital Commitment Letter or otherwise funded with equity proceeds) to fulfill its Funding Obligations on the amount required to pay the Required AmountClosing Date, (Bii) impose any new or additional conditions (or expand, amend or otherwise modify any existing) condition precedent to the availability of the Debt Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the ability of Parent or Acquisition Sub to consummate the transactions contemplated by this Agreement, (iii) adversely impact in any material respect the ability of Parent to enforce its rights against the other parties to the Debt Commitment Letter or (iv) would otherwise reasonably be expected to prevent, impede or delay the funding of the Debt Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability consummation of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in transactions contemplated by this Agreement; provided that, nothing contained in this Section 5.04 shall requirefor the avoidance of doubt, and in no event shall the reasonable best efforts of Parent may amend, supplement or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or otherwise modify the Debt Commitment Letter (including a) to (i) add lenders, lead arrangers, co-managers, bookrunners, syndication agents or any market Person with similar or other roles or titles that have not executed the Debt Commitment Letter as of the date hereof and (ii) increase the amount of the Debt Financing and/or (b) to facilitate the syndication of the Debt Financing, in each case of clause (a) and (b) so long as such amendment or modification complies with this Section 5.17(b). Parent shall not permit, release or consent to the withdrawal, termination, repudiation or rescission of the Debt Financing or any definitive agreement with respect to the Debt Financing and shall not release or consent to the termination of the obligations of any Debt Financing Source under the Debt Financing, in each case, without the prior written consent of the Company, unless such Debt Financing or any definitive agreement with respect to the Debt Financing is contemporaneously replaced with a new Debt Financing that complies with the first sentence of this Section 5.17(b). For purposes of this Agreement, references to “flexDebt Financing” provisions contained therein).shall include the financing contemplated by the Debt Commitment Letter, as hereafter amended or modified, to the extent such amendment or modification is permitted by this Section 5.17, and references to

Appears in 1 contract

Sources: Merger Agreement (RR Donnelley & Sons Co)

Financing. (a) Each of Parent and Merger Sub shall use its reasonable best efforts to take and shall cause its Subsidiaries and Representatives to use their reasonable best efforts to 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 Financing, including to (i) satisfy on a timely basis (taking into account the anticipated timing of the Marketing Period) all terms and subject only conditions applicable to Parent and the conditions (including the market “flex” provisions) Borrower set forth in the Equity Commitment Letter and the Debt Commitment Letters (including definitive agreements related thereto and, to the extent required by the Debt Commitment Letter, any “flex” terms contained in the Fee Letter), respectively, that are to be satisfied by it to consummate the Financing Lettersat or prior to the Closing, including using reasonable best efforts the payment of any commitment, engagement or placement fees required as a condition to (i) maintain in effect and comply with the Financing LettersDebt Financing, (ii) maintain in full force and effect the Commitment Letters, negotiate and enter into definitive agreements (the “Definitive Agreements”) (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto on the terms and subject only to the conditions (including the market “flex” provisions) set forth in contemplated by the Debt Commitment Letter Letters (or on other than modifications to terms that, with respect to conditionality, as are not less favorable acceptable to Parent and which do not contain any Prohibited Modifications), (iii) comply with its obligations under the Commitment Letters, (iv) [reserved] and (v) consummate the Financing at or Merger Sub than prior to the terms Closing; provided, however, that if funds in the amounts and on the conditions (including market “flex” provisions) set forth in the Debt Commitment Letter, in whole or in part, become unavailable to Parent or the Borrower regardless of the reason therefor, Parent shall (A) promptly as reasonably practicable (and, in any event, within three (3) Business Days thereof) notify the Company in writing of such unavailability and the reason therefor and (B) use its reasonable best efforts, and cause each of its Subsidiaries and Representatives to use their reasonable best efforts, to arrange and obtain, as promptly as practicable following the occurrence of such event, alternative debt financing (the “Alternative Financing”) in amounts (after taking into consideration the amount of the Financing that is available) equal to or greater than the Required Amount and which does not include any Prohibited Modifications; provided, that if Parent or any of its Subsidiaries proceeds with Alternative Financing, it shall be subject to the same obligations with respect to the Alternative Financing as set forth in this Section ‎6.5 with respect to the Debt Financing and all references in this Agreement to the Debt Financing (other than with respect to representations in this Agreement made by Parent that speak as of the date hereof) shall be deemed to also refer to the Alternative Financing and provide the Company with drafts of the Definitive Agreements promptly upon such request. Upon receipt of commitments with respect to any Alternative Financing by Parent or any of its Subsidiaries, Parent shall promptly provide to the Company copies of such commitment letter and the related fee letter. (b) Parent shall give the Company prompt written notice (and, in any event, within three (3) Business Days) (i) of any breach or default by any party to any of the Commitment Letters or Definitive Agreements of which Parent or any of its Subsidiaries has Knowledge thereof, (ii) of the receipt by Parent or any of its Subsidiaries of (1) any written notice or (2) other written communication, in each case from any Financing Source with respect to any (A) actual or potential breach, default, cancellation, termination or repudiation (whether in whole or in part) by any Financing Source of any provision of the Commitment Letters or Definitive Agreements or (B) material dispute or disagreement between or among any parties to the Commitment Letters or Definitive Agreements with respect to the obligation to fund the Financing or the amount of the Financing to be funded at the Closing and (iii) if at any time for any reason P▇▇▇▇▇ believes in good faith that it will not be able to obtain all or any portion of the Financing necessary to have funds in the Required Amount at Closing. Following the written request of the Company, Parent shall provide any information reasonably requested by the Company relating to any circumstance referred to in clause (i), (ii) or (iii) satisfy of the immediately preceding sentence. Following the written request of the Company, Parent shall keep the Company reasonably informed on a timely current basis of the status of its efforts to consummate the Financing, including any Alternative Financing. In furtherance of and not in limitation of the foregoing, in the event that (1) any portion of the Debt Financing structured as permanent financing is unavailable, regardless of the reason therefor, (2) all conditions applicable contained in Section 7.1 and Section 7.2 have been satisfied or waived (other than (x) any such conditions that by their nature are to Parent and Merger Sub in be satisfied at the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and Closing, but subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the such conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (viy) those conditions the failure of which to be satisfied is attributable to a breach by Parent of its representations, warranties, covenants or agreements contained in this Agreement) and (3) the bridge facilities contemplated by the Debt Commitment Letter (or alternative bridge facilities obtained in accordance with this Section 6.5) are available on the terms and conditions described in the Debt Commitment Letter, then Parent shall cause the proceeds of such bridge financing to be used promptly in lieu of such affected portion of the permanent financing. (c) Parent shall not or otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under provide consent, or permit any of its Subsidiaries, to (x) replace, amend, supplement, modify or waive any provision of the Financing Debt Commitment Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, or any Definitive Agreements without the Company’s prior written consent of (which consent shall have been approved by the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing Special Committee) if such termination, amendmentreplacement, supplement, modification modification, amendment or waiver would (Ai) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that reduces the aggregate amount of the Debt Financing would be below to an amount, when taken together with the amount required to pay Equity Financing, less than the Required Amount, (Bii) impose imposes new or additional conditions precedent to the availability of the Financing conditions, or otherwise expand, amend adversely modifies or modify expands any of the conditions precedent conditions, to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding receipt of the Financing Debt Financing, (or satisfaction of the conditions to the Financing) on the Closing Date or (Ciii) adversely impact affects the ability of Parent or Merger Sub, as applicable, any of its Subsidiaries to enforce its rights against other parties to the Financing Debt Commitment Letters or the definitive agreements Definitive Agreements as so amended, replaced, supplemented or otherwise modified or (iv) effects any other amendment, modification or waiver that would reasonably be expected to delay the Closing beyond the date the Closing is required to occur under this Agreement or prevent the Closing or impede the ability of Parent to consummate the Closing (the effects described in clauses (i) through (iv), collectively, the “Prohibited Modifications”); provided, however, that for the avoidance of doubt, Parent may, without the written consent of the Company, (1) amend the Debt Commitment Letters solely to add Debt Financing Sources that have not previously executed the Debt Commitment Letters as of the date of this Agreement and to grant to such Debt Financing Sources such approval rights as are customarily granted to additional lenders, lead arrangers, bookrunners, syndication agents or similar entities, (2) amend the Definitive Agreements solely to give effect to any ”flex” terms contained in the Debt Commitment Letters (as in effect on the date hereof) and (3) amend the Debt Commitment Letters solely to amend titles, allocations and fee sharing arrangements with respect to existing and additional Debt Financing Sources, or (y) terminate or cause the termination of the Debt Commitment Letters or any Definitive Agreement. Any reference in this Agreement (other than with respect to representations in this Agreement made by Parent that speak as of the date hereof) to “Debt Commitment Letter” and “Debt Financing” shall include such debt financing and letters as amended, restated, supplemented, modified, replaced or substituted in compliance with this Section ‎6.5 and any Alternative Financing in compliance with this Section 6.5. “Financings” (other than with respect to representations in this Agreement made by Parent that speak as of the date hereof) shall include the financing contemplated by the Debt Financing as amended, restated, supplemented, modified, replaced or substituted in compliance with this Section ‎6.5 and any Alternative Financing in compliance herewith. Parent shall promptly deliver to the Company copies of any amendment, replacement, supplement, termination, modification or waiver to the Debt Commitment Letters and/or Definitive Agreements prior to Closing. Parent shall not amend, alter or waive, or agree to amend, alter or waive (in any case whether by action or inaction), any term of the Equity Commitment Letter without the prior written consent of the Company (which consent shall have been approved by the Special Committee). Parent shall promptly (and, in any event, within three (3) Business Days) notify the Company of (i) the expiration or termination (or attempted or purported termination, whether or not valid) of the Equity Commitment Letter, (ii) any refusal by Guarantor to provide the full financing contemplated by the Equity Commitment Letter, (iii) any breach or default (or any event or circumstance that, with or without notice, lapse of time or both, would reasonably be expected to give rise to any breach or default) by any party to the Equity Commitment Letter or definitive document related to the Equity Financing or (iv) receipt of any written notice or other written communication from any person with respect to any: (x) actual or potential breach, default, termination or repudiation by any party to the Equity Commitment Letter or any definitive document related to the Equity Financing or (y) material dispute or disagreement between or among any parties to the Equity Commitment Letter or any definitive document related to the Equity Financing. Parent shall promptly deliver to the Company copies of any amendment, modificationreplacement, supplement, consent termination, modification or waiver to the Equity Commitment Letter prior to Closing. (d) The foregoing notwithstanding, none of the arrangement, consummation or under any Financing Letter or the definitive agreements relating to obtaining of the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter alternative financing (including any market “flex” provisions contained therein)Alternative Financing) by Parent is a condition to Closing, and compliance by Parent with this Section 6.5 shall not relieve Parent of its obligations to consummate the transactions contemplated by this Agreement whether or not the Financing or any Alternative Financing is available.

Appears in 1 contract

Sources: Merger Agreement (Diversey Holdings, Ltd.)

Financing. (a) Each Parent shall and shall use reasonable best efforts to cause each of Parent its applicable Affiliates to take, or cause to be taken, all actions and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate obtain funds sufficient to fund the Financing Amounts on or prior to the date on which the Merger is required to be consummated pursuant to the terms hereof. In furtherance not in limitation of the foregoing, Parent shall use reasonable best efforts to take, or cause to be taken, all action and do, or cause to be done, all things necessary, proper or advisable to obtain the proceeds of the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitment Letter as promptly as possible but in any event prior to the date on which the Merger is required to be consummated pursuant to the terms hereof, including using reasonable best efforts to including: (i) maintain maintaining in effect the Commitment Letter and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy satisfying on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), and complying with its obligations thereunder. (ivb) upon the satisfaction or waiver Neither Parent nor any of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall notSubsidiaries shall, without the prior written consent of the CompanyCompany permit, consent to or agree to or permit (i) any termination of or amendment, supplement replacement, supplement, termination or modification to be made to, or grant any waiver of of, any provision under, or remedy under the Financing Letters or the definitive agreements relating to the Financing Commitment Letter if such terminationamendment, amendmentreplacement, supplement, modification modification, waiver or waiver would remedy (A) reduce adds new (or adversely modifies any existing) conditions to the aggregate amount consummation of all or any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountFinancing, (B) impose new or additional conditions precedent to reduces the availability aggregate principal amount of the Financing or otherwise expandFinancing, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact affects the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters Commitment Letter as so amended, replaced, supplemented or otherwise modified or (D) could otherwise reasonably be expected to prevent, impede or delay the definitive agreements with respect to consummation of the FinancingMerger and the other transactions contemplated by this Agreement (the effects described in clauses (A) through (D), collectively, the “Prohibited Modifications”) without the prior written consent of the Company; or (ii) terminate or cause the termination of the Commitment Letter. Parent shall promptly deliver to the Company copies of any amendment, modificationreplacement, supplement, consent termination, modification or waiver to or under any Financing Letter or the definitive agreements relating Commitment Letter. (c) The foregoing notwithstanding and subject to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in terms of this Agreement, nothing contained in compliance by Parent with this Section 5.04 5.11 shall requirenot relieve Parent of its obligations to consummate the transactions contemplated by this Agreement whether or not the Financing is available. To the extent Parent amends, replaces, supplements, terminates, modifies or waives any of the Financing, in each case pursuant to this Section 5.11 and in no event without any Prohibited Modification, references to the “Commitment Letter,” the commitments thereunder and the agreements with respect thereto shall the reasonable best efforts of Parent or Merger Sub be deemed to refer to such amended, replaced, supplemented, modified or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated bywaived Commitment Letter, the Equity Funding Lettercommitments thereunder and the agreements with respect thereto, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)as applicable.

Appears in 1 contract

Sources: Merger Agreement (WideOpenWest, Inc.)

Financing. (a) Each of Parent and Merger Sub The Buyer shall use commercially reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitments (including any flex provisions applicable thereto), including using commercially reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent the Buyer in good faith to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on substantially the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter and Redacted Fee Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub Buyer than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter and Redacted Fee Letter), (iiiii) satisfy on a timely basis or cause the satisfaction of all conditions applicable to Parent the Buyer and Merger Sub its Affiliates in the Financing Letters Commitments and the definitive agreements related thereto (including by consummating for the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parentthe Buyer, seek the waiver of conditions applicable to Parent the Buyer and Merger Sub its Affiliates contained in such Debt Commitment Letter Financing Commitments or such definitive agreements related thereto)for the Financing, (iii) maintain in full force and effect the Financing Commitments in accordance with the terms thereof, (iv) upon in the satisfaction event that all conditions in the Financing Commitments have been satisfied or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Mergerwaived, consummate the Financing and cause (including by instructing the lenders Debt Financing Sources and the other Persons committing to fund providing the Financing to fund provide such Financing) on the Financing at date on which the ClosingClosing is required to occur pursuant to Section 2.2, and (v) enforce its rights under the Financing Letters and Commitments (including by initiating litigation in respect thereof) in the definitive agreements relating event of any breach or purported breach thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 6.14 shall require, and in no event shall the commercially reasonable efforts of the Buyer be deemed or construed to require, the Buyer to (A) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Financing Commitment, or (B) pay any material fees in excess of those contemplated by the Equity Financing Commitment or the Debt Commitment Letter and Redacted Fee Letter (viincluding any market “flex” provisions contained therein). (b) otherwise comply In the event any portion of the Debt Financing becomes unavailable on the terms and conditions (including any applicable market “flex” provisions) contemplated in the Debt Commitment Letter and Redacted Fee Letter, the Buyer shall use its commercially reasonable efforts, as promptly as practicable, to obtain alternative financing in an amount sufficient to fund the Required Amount with Parent’s terms and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating conditions (including market “flex” provisions) not less favorable to the Buyer or its Affiliates than the terms and conditions set forth in the Debt Commitment Letter and Redacted Fee Letter. The Buyer shall deliver to the Seller true and complete copies of the alternative debt commitment letters (including redacted fee letters related thereto) pursuant to which any such alternative source shall have committed to provide any portion of the Debt Financing. Parent. (c) The Buyer shall have the right from time to time to amend, Merger Sub and replace, supplement or otherwise modify, or waive any of its rights under, the Guarantors Debt Financing; provided, however, that any such amendment, replacement, supplement, modification or waiver shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would Seller (Ai) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (Bii) impose new modify or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify expand upon any of the conditions precedent to the Debt Financing from those set forth in the Debt Commitment Letter, or add any new conditions precedent to the Debt Financing from those set forth in the Debt Commitment Letter, in each case in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing), (iii) on be reasonably expected to prevent, impede or delay the Closing Date availability of the Debt Financing, or (Civ) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties be otherwise materially adverse to the Financing Letters interests of the Seller; provided, that the Buyer may modify, supplement or amend the definitive agreements Debt Commitment Letter to add lenders, lead arrangers, bookrunners, syndication agents or similar entities (or titles with respect to such entities) who had not executed such Debt Commitment Letter as of the Financingdate of this Agreement. Parent The Buyer shall promptly deliver to the Company copies Seller a true and correct copy of any such amendment, replacement, supplement, modification, supplement, consent or waiver to of or under the Debt Financing. (d) To the extent the Buyer obtains alternative financing pursuant to Section 6.14(b) above, or amends, replaces, supplements, modifies or waives any of the Debt Financing pursuant to Section 6.14(c), references to the “Financing” and “Financing Commitments” as applicable (and other like terms in this Agreement, including, as applicable, “Debt Financing,” “Debt Commitment Letter” and “Redacted Fee Letter”) shall be deemed to refer to such alternative financing, or the Debt Financing as so amended, replaced, supplemented, modified or waived. (e) Upon request by the Seller, the Buyer shall keep the Seller reasonably informed on a timely basis (and in any event within two (2) Business Days after the date the Seller delivers to the Buyer a request) of the status of the Buyer’s efforts to obtain the Debt Financing and to satisfy the conditions thereof, including updating the Seller, in a reasonable level of detail, with respect to status, proposed closing date and material terms of the definitive documentation related to the Debt Financing, providing copies of the executed material definitive documents related to the Debt Financing and giving the Seller prompt notice of any material change (adverse or otherwise) with respect to the Debt Financing of which the Buyer becomes aware. Without limiting the foregoing, the Buyer shall notify the Seller promptly (and in any event within two (2) Business Days) if at any time prior to the Closing Date: (i) the Buyer obtains knowledge that any Financing Letter Commitment expires or is terminated for any reason (or if any Person attempts or purports to terminate any Financing Commitment, whether or not such attempted or purported termination is valid), (ii) the definitive agreements Buyer obtains knowledge of any breach or default (or any event or circumstance that, with or without due notice, lapse of time or both, would reasonably be expected to give rise to any breach or default) by any party to any Financing Commitment, (iii) the Buyer receives any written communication from any Person with respect to any (A) actual, potential or threatened breach, default, termination or repudiation by any party to the Financing Commitments or (B) material dispute or disagreement between or among any parties to the Financing Commitments, (iv) any Financing source (including any Debt Financing Source) refuses to provide or expresses to the Buyer in writing an intent to refuse to provide all or any portion of the Financing necessary to fund the Required Amount on the terms contemplated by the Financing Commitments, or (v) the Buyer, for any reason, no longer believes in good faith that it will be able to obtain all or any portion of the Financing necessary to fund the Required Amount on the terms contemplated by the Financing Commitments. (f) The Seller shall use its commercially reasonable efforts to provide, and shall cause the Company and its Subsidiaries to use their commercially reasonable efforts to provide, to the Buyer all cooperation reasonably requested by the Buyer in connection with obtaining the Financing (including the debt securities) to the extent customary in connection with the arrangement of debt or equity financing similar to the Financing, including: (i) as promptly as reasonably practicable, furnishing the Buyer with the Required Information; (ii) as promptly as reasonably practicable, informing the Buyer if the Seller, the Company or any of their Subsidiaries shall have actual knowledge of any facts that would be reasonably likely to require the restatement of any financial statements comprising a portion of or that includes the Required Information in order for such financial statements to comply with GAAP; (iii) assisting in preparation for and participating in marketing efforts for the Debt Financing (including a reasonable number of meetings, presentations, calls, roadshows, due diligence sessions, drafting sessions and sessions with rating agencies), and assisting the Buyer in obtaining ratings in connection with the Debt Financing; (iv) assisting the Buyer and the Debt Financing Sources with the preparation of (A) materials for rating agency presentations and (B) bank information memoranda, lender presentations, investor presentations, offering documents, rating agency presentations and similar documents for use in connection with the Debt Financing, including reviewing and commenting on the Buyer’s draft of a business description to be included in marketing materials; (v) using commercially reasonable efforts to cause its independent auditors to provide, consistent with customary practice, (A) reasonable assistance to the Buyer in connection with the Buyer’s preparation of pro forma financial statements and information, (B) reasonable assistance and cooperation to the Buyer, (C) consents customary for financings similar to the Financing (including consents of auditors for use of their reports in any materials relating to the Debt Financing) and (D) customary comfort letters (including “negative assurance” comfort and change period comfort) with respect to financial information relating to the Company and its Subsidiaries as reasonably requested by Buyer or as necessary or customary for financings similar to the Debt Financing promptly upon (including any offering or private placement of debt securities pursuant to Rule 144A under the Securities Act); (vi) assisting the Buyer in connection with the preparation of pro forma financial information and pro forma financial statements of the Company and its Subsidiaries of the type required by paragraph 3 of Exhibit C to the Debt Commitment Letter, to be included in offering documents for the Debt Financing, or necessary or reasonably required by the Buyer’s Financing sources (including the Debt Financing Sources); provided that neither the Seller, the Company nor any of their Subsidiaries shall be required to actually prepare any such pro forma financial information or provide any information or assistance relating to (A) the proposed debt and equity capitalization that is required for such pro forma financial information or assumed interest rates, fees and expenses relating to such debt and equity capitalization or (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; (vii) executing and delivering as of (but not prior to) the Closing any pledge and security documents, supplemental indentures, currency or interest hedging arrangements, other definitive financing documents, or other certificates or documents as may be reasonably requested by the Buyer (including a certificate of the chief financial officer (or other executive officer) of the Company with respect to solvency matters in the form set forth as an exhibit to the Debt Commitment Letter) and otherwise reasonably facilitate the pledging of collateral (including the delivery of all stock or other certificates intended to constitute collateral as contemplated by the Debt Commitment Letter) (it being understood that such documents (A) will not take effect prior to the Closing and (B) shall not be required to be executed by any officer of the Company or any of its Subsidiaries unless such officer will be a continuing officer of the Company or one of its Subsidiaries after giving effect to the Closing); (viii) providing customary authorization letters to the Debt Financing Sources authorizing the distribution of information to prospective lenders, subject to customary confidentiality provisions, and containing a customary representation to the Debt Financing Sources contemplated by the Debt Commitment Letter, including that the public side versions of such documents do not include material non-public information about the Seller, the Company or the Subsidiaries or their securities and the accuracy of the information contained in the disclosure and marketing materials related to the Debt Financing; provided, that the Company is given a reasonable opportunity prior to execution thereof. to review and provide comments on such authorization letters and such information distributed to prospective lenders in connection therewith; (ix) prior to or at, and conditioned upon, the occurrence of the Closing, taking all actions required to obtain the Existing Credit Facility Release; and (x) providing all documentation and other information about the Seller, the Company and their Subsidiaries as is reasonably required under applicable “know your customer” and anti-money laundering rules and regulations including the USA PATRIOT Act, in each case to the extent requested in writing reasonably in advance of the Closing. (g) Notwithstanding anything to the contrary in this Agreement, : (i) nothing contained shall require such cooperation as described in this Section 5.04 shall require6.14 (including Section 6.14(l)) to the extent it would, in the Seller’s reasonable judgment, unreasonably interfere with the business or operations of the Seller or its Subsidiaries, and in no event (ii) none of the Seller nor any of its Subsidiaries shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties required to, or be required to commit to, (A) take any action that is not contingent upon the Closing or enter into or execute any agreement or document that is effective prior to the Closing, in any amount each case other than customary representation letters and authorization letters (including with respect to the presence or absence of material non-public information and the accuracy of the information contained in excess of that contemplated by, the Equity Funding Letter, or (iidisclosure and marketing materials related to the Debt Financing) pay any material fees in excess of those contemplated by the Equity Funding Letter Debt Commitment Letter, (B) require any of its directors to approve or adopt any Financing or agreements related thereto prior to the Closing Date (and no such directors that shall not be continuing directors shall be required to take such action), (C) take any action that would result in any officer, director or other Representative of the Seller or any of its Subsidiaries incurring any personal liability (as opposed to liability in his or her capacity as an officer of such Person) with respect to any matters relating to the Financing or (D) deliver or cause the delivery of any legal opinions necessary for the Financing. All non-public or other confidential information provided by the Seller or any of its Subsidiaries or Representatives pursuant to this section shall be kept confidential in accordance with the Confidentiality Agreement. The Seller shall be permitted a reasonable period to comment on any confidential information memorandum, offering memorandum, prospectus or other marketing document circulated to potential financing sources. None of the Seller or any of its Subsidiaries shall be required to bear any cost or expense, pay any commitment or other similar fee or make any other payment (in each case other than for reasonable out-of-pocket costs or expenses that are reimbursed by the Buyer and costs or expenses related to the Existing Credit Facility Release) or incur any other Liability (other than customary representation letters and authorization letters (including with respect to the presence or absence of material non-public information and the accuracy of the information contained in the disclosure and marketing materials related to the Debt Commitment Letter Financing), it being understood that any Liability with respect thereto is indemnified under clause (including h) below) or provide or agree to provide any market “flex” provisions contained therein).indemnity in connection with the Financing or any of the foregoing matters described herein. It

Appears in 1 contract

Sources: Stock Purchase Agreement (Jack in the Box Inc /New/)

Financing. (a) Each of Parent Acquiror, Merger Sub I and Merger Sub II shall use reasonable best efforts to take, or cause to be taken, as promptly as practicable after the date hereof, all actions 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 subject only to the conditions necessary (including enforcing its rights under the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment LetterSubscription Agreements), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing Date, to consummate the purchases contemplated by the Subscription Agreements on the terms and conditions described or contemplated therein, including using its reasonable efforts to enforce its rights under the Subscription Agreements to cause the Subscribers to pay to (or as directed by) Acquiror the applicable purchase price under each Subscriber’s applicable Subscription Agreement in accordance with its terms. If the Acquiror Board determines that it is reasonably necessary solely to satisfy the condition set forth in Section 9.03(d), with the prior written consent of the Company (which consent shall deemed to be provided with respect to Acquiror’s entry into any Subscription Agreement with the Persons set forth on Section 7.03(a)(ix) of the Acquiror Schedules), the Acquiror may enter into additional Subscription Agreements with third parties following the date hereof, pursuant to which such parties, upon the terms and subject to the conditions set forth in the Equity Funding Letter) (ortherein, if necessary or deemed advisable by Parent, seek the waiver shall purchase shares of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing Acquiror Common Stock at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing $10.00 per share in a manner that would reasonably be expected to materially delay private placement or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Subplacements and, as applicable, receive PIPE Warrants, with such purchase(s) to enforce its rights against other parties be consummated immediately prior to the Financing Letters or consummation of the definitive agreements Transactions (the investments contemplated by any such Subscription Agreements, the “Additional Financing”). The Company shall reasonably cooperate with Acquiror with respect to the Financing. Parent arrangement of any such Additional Financing if the Company has provided its consent (which consent shall promptly deliver deemed to be provided with respect to Acquiror’s entry into any Subscription Agreement with the Persons set forth on Section 7.03(a)(ix) of the Acquiror Schedules) pursuant to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)immediately preceding sentance.

Appears in 1 contract

Sources: Merger Agreement (North Mountain Merger Corp.)

Financing. (a) Each of Parent and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all actions actions, and shall use reasonable best efforts to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the proceeds of the Financing on the terms and subject only to conditions described in the conditions Commitment Letters (including including, as necessary, the market “flex” provisionsprovisions contained in any related fee letter) set forth as promptly as possible (taking into account the expected timing of the Marketing Period) but in any event on or prior to the Financing Lettersdate upon which the Merger is required to be consummated pursuant to the terms hereof, including by using reasonable best efforts with respect to (i) causing the Equity Investors to maintain in effect and comply with the Financing LettersEquity Commitment Letter, (ii) negotiate maintaining in effect the Debt Commitment Letter, (iii) negotiating and enter entering into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on (the “Definitive Agreements”) consistent with the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (or including, as necessary, the “flex” provisions contained in any related fee letter) or, if available, on other terms that, with respect to conditionality, that (A) are not less favorable acceptable to Parent in its sole discretion, (B) would not reasonably be expected to delay (taking into account the expected timing of the Marketing Period) or Merger Sub than adversely affect the terms ability of Parent to consummate the transactions contemplated hereby and conditions (including market “flex” provisionsC) set forth in the Debt Commitment Letterwould otherwise be permitted by Section 5.12(b), and (iiiiv) satisfy taking into account the expected timing of the Marketing Period, satisfying (or, if reasonably required to obtain the Financing, seeking the waiver of) on a timely basis all conditions applicable in the Debt Commitment Letters and the Definitive Agreements that are within the control of Parent or Merger Sub and complying with its obligations thereunder. In the event that all conditions contained in the Debt Commitment Letter or the Definitive Agreements (other than the consummation of the Merger and other than the availability of the Cash Equity and those that by their nature are to be satisfied at the Closing) have been satisfied or waived, Parent and Merger Sub in shall use their reasonable best efforts to cause the Lenders thereunder to comply with their respective obligations thereunder, including to fund the Debt Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and including, subject to Section 8.7(c), by promptly commencing a litigation proceeding against any breaching Lender or other financial institution to compel such Lender or financial institution to provide its portion of the conditions set forth in Debt Financing or otherwise comply with its obligations under the Equity Funding Letter) (or, if necessary Debt Commitment Letter or deemed advisable by Parent, seek the waiver Definitive Agreement). Each of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)shall use its reasonable best efforts to comply with its respective obligations, (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights respective rights, under the Financing Commitment Letters and the definitive agreements relating to the Financing Definitive Agreements in a timely and diligent manner. (vib) otherwise comply with Parent’s Parent shall not, and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, shall not permit Merger Sub and the Guarantors shall notto, without the prior written consent of the Company, agree to or : (i) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Commitment Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce adds new (or adversely modifies any existing) conditions to the aggregate amount consummation of all or any portion of the Financing Financing, (including by increasing B) reduces the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing to an amount that, together with available cash at the Company and its Subsidiaries and other available cash or other funds of Parent and its Subsidiaries, would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or be less than the Merger Amounts, (C) adversely impact affects in a material respect the ability of Parent to enforce its rights against other parties to the Commitment Letters or the Definitive Agreements as so amended, replaced, supplemented or otherwise modified, relative to the ability of Parent or Merger Sub, as applicable, to enforce its rights against the other parties to the Financing Commitment Letters as in effect on the date hereof or (D) could otherwise reasonably be expected to prevent, materially impede or materially delay the consummation of the Merger and the other transactions contemplated by this Agreement (taking into account the expected timing of the Marketing Period); or (ii) terminate any Commitment Letter or any Definitive Agreement unless such Commitment Letter or Definitive Agreement is replaced at such time with a new commitment letter or a new definitive agreements with respect to agreement that would satisfy the Financingpreceding clause (i). Parent and Merger Sub shall promptly deliver to the Company copies of any amendment, modification, supplement, consent waiver or waiver to or under replacement of any Financing Commitment Letter or any Definitive Agreement. (c) In the definitive agreements relating event that any portion of the Debt Financing becomes unavailable, regardless of the reason therefor, Parent and Merger Sub will (i) use reasonable best efforts to obtain alternative debt financing (in an amount sufficient, when taken together with Cash Equity and the available portion of the Debt Financing, the available cash at the Company and its Subsidiaries and other available funds or cash to Parent and its Subsidiaries, to pay the Merger Consideration and the other Merger Amounts) from the same or other sources on terms and conditions that are not less favorable to Parent and its Subsidiaries than the terms and conditions set forth in the Debt Commitment Letter as of the date hereof and which do not include any conditions to the Financing consummation of such alternative debt financing that would reasonably be expected to make the funding of such alternative debt financing less likely to occur, than the conditions set forth in the Debt Commitment Letter as of the date hereof and (ii) promptly upon execution thereofnotify the Company of such unavailability and the reason therefor. Notwithstanding anything to For the contrary in purposes of this Agreement, nothing contained the term “Debt Commitment Letter” shall be deemed to include any commitment letter (or similar agreement) with respect to any alternative or replacement financing arranged in this Section 5.04 compliance herewith (and any Debt Commitment Letter remaining in effect at the time in question). Parent and Merger Sub shall requireprovide the Company with prompt oral and written notice of any actual or threatened breach, and termination, repudiation or default by any party to any Commitment Letter or any Definitive Agreement, in no event shall the reasonable best efforts each case, of which Parent or Merger Sub be deemed obtain Knowledge and the receipt of any written notice or construed other written communication from any Lender, Equity Investor or other financing source with respect to requireany breach, either default, termination or repudiation by any party to any Commitment Letter or any Definitive Agreement of any provision thereof. Parent and Merger Sub shall keep the Company reasonably informed on a current basis of the status of its efforts to consummate the Financing. The foregoing notwithstanding, compliance by Parent and Merger Sub with this Section 5.12 shall not relieve Parent or Merger Sub of their obligation to (i) seek consummate the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those transactions contemplated by this Agreement whether or not the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Financing is available.

Appears in 1 contract

Sources: Merger Agreement (Financial Engines, Inc.)

Financing. (a) Each of Buyer Parent shall use, and Merger Sub shall use cause its Affiliates to use, reasonable best efforts endeavors to 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 subject only to the conditions (including the “market “flex” provisions) set forth in the Financing LettersCommitments, including using reasonable best efforts endeavors to (i) maintain in effect and comply in all material respects with the Financing LettersCommitments, (ii) promptly negotiate and enter into any applicable definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market flex provisions) set forth in the Financing Commitments (or on terms not materially less favorable to Buyer Parent than the terms and conditions (including “market flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, Financing Commitments with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in conditionality of the Debt Commitment Letterfunding of the Financing on the Closing Date), (iii) satisfy (and cause its Affiliates to satisfy) on a timely basis all conditions applicable to Buyer Parent and Merger Sub its Affiliates in the Financing Letters Commitments and the definitive agreements related thereto relating to the Financing, (including by consummating iv) consummate the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (orClosing, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to including using Buyer Parent’s (and Merger Sub’s obligations causing its Affiliates to consummate use) reasonable endeavors (which shall include taking all actions reasonably within its control, including borrowing, notwithstanding the Offer and the Merger, consummate fact that “market flex” provisions under the Financing and Commitments are exercised) to cause the lenders Debt Financing Sources and the other Persons committing to fund the Financing to fund the Financing at the Closing, and (v) enforce comply with Buyer Parent’s covenants and other obligations under, and ensure the accuracy of the warranties of Buyer Parent or its rights under Affiliates set forth in the Financing Letters Commitments and the definitive agreements relating to the Financing and (vi) otherwise where a failure to so comply with Parent’s and Merger Sub’s covenants and other obligations under would reasonably be expected to delay or prevent or materially make less likely to occur the funding of the Financing Letters and (or satisfaction of the definitive agreements relating conditions to the Financing) on the Closing Date. Parent, Merger Sub and Buyer Parent shall not prior to the Guarantors shall notClosing Date, without the prior written consent of the CompanySeller Parent, agree to or permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision under, the Financing Letters Commitments or the definitive agreements relating to the Financing (provided, for the avoidance of doubt the existence or exercise of any “market flex” provisions contained in any fee letter in connection with the Debt Financing Commitments shall not constitute an amendment, supplement or modification of the Debt Financing Commitments) if such termination, amendment, supplement, modification or waiver would (A) (1) reduce (or could have the aggregate amount effect of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amountreducing) such that the aggregate amount of the Financing would be below or (2) reduce the amount required to pay of the Required AmountDebt Financing unless, in the case of each of clauses (A)(1) and (A)(2), after giving effect thereto, the warranties set forth in Section 3.07(a) shall be true and correct (taking into account any corresponding increase in the Equity Financing Commitment), or (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing, or otherwise expand, amend or modify any other provision of the Financing Commitments in a manner that would reasonably be expected to materially delay or prevent or make materially less likely to occur the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the FinancingDate. Buyer Parent shall promptly deliver to the Company Seller Parent copies of any amendment, modification, supplement, consent modification or waiver to or under any Financing Letter Commitment or the definitive agreements relating to the Financing promptly upon execution thereofof the Transaction. Notwithstanding anything Buyer Parent will fully pay, or cause to be paid, all commitment and other fees under or arising pursuant to the contrary in this Agreement, nothing contained in this Section 5.04 Debt Financing Commitment as and when they become due. (b) Buyer Parent shall require, and in no event shall the reasonable best efforts give Seller Parent prompt written notice of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek any actual or potential breach, default, termination or repudiation by any party to any Financing Commitment or definitive documents related to the Equity Financing from any source other than the counterparties toof which Buyer Parent becomes aware, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay the receipt of any written notice or other written communication from any Financing Source with respect to any (A) actual or potential breach, default, termination or repudiation by any party to any Financing Commitment or any definitive document related to the Financing of any provisions of the Financing Commitments or any definitive document related to the Financing or (B) material fees dispute or disagreement between or among any parties to any Financing Commitment or any definitive document related to the Financing and (iii) the occurrence of an event or development, which in excess the case of those contemplated by each of (i), (ii) or (iii) above, would reasonably be expected to delay or prevent or materially make less likely to occur the Equity Funding Letter funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date. If any portion of the Debt Commitment Letter Financing becomes unavailable (excluding any fee arrangements), or if Buyer Parent becomes aware of any event or circumstance that would reasonably be expected to make any portion of the Debt Financing unavailable to fund the Transactions on the Closing Date, Buyer Parent shall (i) promptly notify Seller Parent in writing and (ii) use reasonable endeavors to arrange and obtain in replacement thereof, and negotiate and enter into definitive agreements with respect to, alternative financing from alternative sources in an amount sufficient to consummate the Transactions on terms and conditions (including market flex provisions) not materially less favorable to Buyer Parent (or its Affiliates) than the terms and conditions set forth in the Debt Financing Commitment with respect to the funding of the Financing on the Closing Date, as promptly as practicable following the occurrence of such event (but not later than the date Buyer Parent is required to consummate the Closing in accordance with this Agreement); provided that the failure to obtain alternative financing shall not relieve Buyer Parent of any obligations hereunder. Notwithstanding the other provisions of this Section 5.16, Seller Parent acknowledges that Buyer Parent or its Affiliates is entitled to, at its discretion, replace all or part of the Debt Financing Commitments, and negotiate and enter into definitive agreements with respect to alternative financing from alternative sources in an amount sufficient to consummate the Transactions on terms and conditions (including market “flex” provisions contained therein).flex provisions) not materially less favorable to Buyer Parent or its Affiliates than the terms and conditions set forth in the Debt Financing Commitment with respect to the conditionality of the funding of the financing on the Closing Date. Buyer Parent shall

Appears in 1 contract

Sources: Transaction Agreement (Viatris Inc)

Financing. (a) Each of Parent Buyer, Intermediate Holdings and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the proceeds of the Debt Financing concurrently with the Closing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Letters, Debt Commitment Letter (including using reasonable best efforts to (i) maintain in effect and comply with the Financing Lettersobtain any necessary rating agency ratings, (ii) negotiate maintain in effect the Commitments (at no additional cost or expense to, and enter into definitive agreements (whichwith no adverse effect on, with respect to the bridge facility documentationBuyer, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent Intermediate Holdings or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment LetterSub), (iii) satisfy on a timely basis all conditions applicable to Parent Buyer, Intermediate Holdings and Merger Sub in to obtain the Debt Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in financing contemplated by the Equity Funding Commitment Letter) (or, if necessary or deemed advisable by Parent, seek that are within their control and comply with the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)obligations thereunder, (iv) negotiate definitive agreements with respect to the Debt Commitment Letter on terms and conditions contained therein (including any “flex” provisions) or on terms no less favorable to Intermediate Holdings (unless otherwise agreed by Intermediate Holdings in its sole discretion) (the “Definitive Financing Agreements”) and upon the satisfaction or waiver of execution thereof, deliver a copy to the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the ClosingCompany, (v) seek to enforce its rights under the Financing Letters Debt Commitment Letter and the definitive agreements relating to Definitive Financing Agreements in the event of a breach by the Financing Parties that materially impedes or materially delays the Closing, including by seeking specific performance against the parties thereto, and (vi) otherwise comply with Parent’s respect to any replacement commitments, satisfy on a timely basis all conditions applicable to Intermediate Holdings and Merger Sub’s covenants and other obligations under the Financing Letters and the Sub in such definitive agreements relating that are within their control. Buyer and Intermediate Holdings shall keep Company reasonably informed of material developments in respect of the financing contemplated by the Commitments to which it is a party in accordance with this Section 6.3. In furtherance of the Financing. Parentprovisions of this Section 6.3, Merger Sub and the Guarantors shall not, Debt Commitment Letter may be amended or superseded without the prior written consent of Company to replace or add one or more lenders, lead arrangers, bookrunners, syndication agents or similar entities which had not executed the Company, agree to or permit any termination Debt Commitment Letter as of or amendment, supplement or modification to be made tothe date hereof, or grant otherwise, provided, that in no event shall the Debt Commitment Letter be amended or superseded in a manner that would (i) expand in any waiver of any provision under, the Financing Letters or the definitive agreements relating way that is adverse to the Company the conditions to the Debt Financing if such termination, amendment, supplement, modification set forth in the Debt Commitment Letter; (ii) reasonably be expected to prevent or waiver would materially delay the Closing; or (Aiii) reduce the aggregate amount of Debt Financing set forth in the Debt Commitment Letter (unless, in the case of this clause (iii), replaced with an amount of new equity financing on terms no less favorable to Buyer than the terms set forth in the Equity Commitment Letter). In the event that all conditions to the Commitments (other than in connection with the Debt Commitment Letter, the availability or funding pursuant to the Equity Commitment Letter) have been satisfied, each of Buyer and Intermediate Holdings shall use its reasonable best efforts to cause the lenders and other persons providing the Commitments to fund the financing required to consummate the Merger on the Closing Date (including by seeking specific performance to cause such lenders and other persons to fund such financing) if all conditions to closing contained in Article VII are satisfied or waived (other than those conditions that (A) by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions and (B) are not satisfied solely as a result of a breach by Buyer, Intermediate Holdings or Merger Sub of their respective obligations under this Agreement). Buyer and Intermediate Holdings shall give Company prompt notice of any material breach by any party of the Commitments to which it is a party, any termination of any of the Commitments to which it is a party, and any condition to the Commitments to which it is a party not likely to be satisfied, in each case, to the extent it becomes aware of such material breach, termination or condition. If any portion of the Debt Financing becomes unavailable on the terms and conditions (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless flex provisions) set forth in the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountCommitment Letter, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce Buyer and Intermediate Holdings shall use its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent to arrange alternative financing from alternative sources in an amount sufficient to consummate the transactions contemplated by this Agreement on terms and conditions no less favorable to Intermediate Holdings or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (ias determined in the reasonable judgment of Intermediate Holdings) seek the Equity Financing from any source other than the counterparties to, or those set forth in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including the flex provisions) as promptly as practicable following the occurrence of such event, but in no event later than the last day of the Marketing Period. For the avoidance of doubt, the obtaining of the financing provided for by the Commitments, or any market alternative financing, is not a condition to Closing. Notwithstanding anything herein to the contrary, in no event shall Buyer, Intermediate Holdings or any Affiliate thereof be required to provide any additional equity financing in excess of the amount expressly set forth in the Equity Commitment Letter. Notwithstanding anything herein to the contrary, in no event shall Buyer, Intermediate Holdings or Merger Sub be required pursuant to this Agreement to agree to pay to the lenders, and the other Persons providing the financing set forth in the Debt Commitment Letter, any additional fees or to increase any interest rates applicable to the Debt Commitment Letter (other than pursuant to the “flex” provisions contained therein)., if any) or agree to enter into any financial or other material covenants or agreements on terms not otherwise expressly set forth in

Appears in 1 contract

Sources: Contribution and Merger Agreement

Financing. (a) Each of Parent and Merger Sub Purchaser shall use commercially reasonable best efforts efforts, and shall cause Red Holdings and Green Holdings, as applicable, to takeuse commercially reasonable efforts, or cause to be taken, take all actions and to do, or cause to be done, do all things necessary, proper or advisable necessary to consummate and obtain the Financing on the terms and subject only to the conditions described in the Financing Commitments (including any market “flex” provisions applicable thereto), including using commercially reasonable efforts to (i) negotiate definitive agreements on substantially the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the applicable Debt Commitment Letter Letters and related Redacted Fee Letters (or on other terms that, with respect to conditionality, are not less favorable to Parent Red Holdings or Merger Sub Green Holdings, as applicable, than the terms and conditions (including market “flex” provisions) set forth in the applicable Debt Commitment LetterLetters and related Redacted Fee Letters), (ii) satisfy or cause the satisfaction of all conditions applicable to Purchaser and its Affiliates in the Financing Commitments and the definitive agreements for the Financing or, if necessary or deemed advisable by Purchaser, seek the waiver of conditions applicable to Purchaser and its Affiliates contained in such Financing Commitments or such definitive agreements for the Financing, (iii) maintain in full force and effect the Financing Commitments in accordance with the terms thereof, (iv) satisfy on a timely basis all conditions applicable to Parent and Merger Sub the Financing Commitments that are in Purchaser’s, Red Holdings’ or Green Holdings’ control, (v) in the event that all conditions in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at Commitments have been satisfied or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Mergerwaived, consummate the Financing and cause as of the lenders Offer Closing as required to occur pursuant to Section 1.1(h) (including by instructing the Debt Financing Sources and the other Persons committing to fund providing the Financing to fund the Financing at the Closingprovide such Financing), (vvi) enforce its rights under the Financing Letters and Commitments in the definitive agreements relating to the Financing event of any breach thereof and (vivii) otherwise comply with Parent’s ’s, Purchaser’s, Red Holdings’ and Merger Sub’s Green Holdings’ covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofCommitments. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 6.11 shall require, and in no event shall the commercially reasonable best efforts of Parent or Merger Sub Purchaser be deemed or construed to require, either Parent or Merger Sub Purchaser to (iA) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding LetterFinancing Commitment, or (iiB) pay any material fees in excess of those contemplated by the Equity Funding Letter Financing Commitment or the Debt Commitment Letter Letters and Redacted Fee Letters (including any market “flex” provisions contained therein). (b) In the event any portion of the Debt Financing necessary to pay the Required Amount becomes unavailable on the terms and conditions (including any applicable market “flex” provisions) contemplated in the applicable Debt Commitment Letter and related Redacted Fee Letter, Purchaser shall use commercially reasonable efforts, as promptly as practicable, to obtain alternative debt financing in an amount sufficient, together with the amount of the Equity Financing and Debt Financing that remains available, to fund the Required Amount with terms and conditions (including market “flex” provisions) not less favorable to Purchaser or its Affiliates than the terms and conditions set forth in the applicable Debt Commitment Letter and related Redacted Fee Letter. Purchaser shall deliver to the Company true and complete copies of the alternative debt commitment letters (including redacted fee letters (redacted solely to the same extent as the Redacted Fee Letters) related thereto) pursuant to which any such alternative source shall have committed to provide any portion of the Debt Financing. Purchaser shall deliver to the Company true and complete copies of the alternative debt commitment letters (including Redacted Fee Letters) pursuant to which any such alternative source shall have committed to provide any portion of the Debt Financing. For purposes of this Agreement, references to (x) the “Financing” shall include the financing contemplated by the Financing Commitments as permitted to be amended, modified, supplemented or replaced by this Section 6.11, (y) references to the “Debt Commitment Letters” shall include such documents as permitted to be amended, modified, supplemented or replaced by this Section 6.11 and (z) references to “Debt Financing” shall include the debt financing contemplated by the Debt Commitment Letter as permitted to be amended, modified, supplemented or replaced by this Section 6.11.

Appears in 1 contract

Sources: Merger Agreement (Smart & Final Stores, Inc.)

Financing. (a) Each Prior to Closing, each of Parent and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable to arrange, obtain and consummate and obtain the Debt Financing on or any Substitute Debt Financing as promptly as possible (taking into account the terms and subject only anticipated timing of the Marketing Period) following the date of this Agreement (and, in any event, no later than the time at which the Closing is required to the conditions (including the market “flex” provisions) set forth in the Financing Lettersoccur pursuant to Section 2.2), including using its reasonable best efforts to (i) (A) maintain in effect the Debt Letters and to comply with its obligations under the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect Debt Letters to the bridge facility documentationextent the failure to comply with such obligations would adversely impact the amount or, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with taking into account the funding expected timing of the Marketing Period, the availability of the Debt FinancingFinancing at the Closing, (B) negotiate, enter into and deliver definitive agreements with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than reflecting the terms and conditions (including market “flex” provisions) set forth contained in the Debt Commitment LetterLetters (including any “market flex” provisions applicable thereto) or on terms that, taken as a whole, are no less favorable in the aggregate to Parent than the terms contained in the Debt Letters (including any “market flex” provisions applicable thereto), so that such agreements are in effect no later than the time at which the Closing is required to occur pursuant to Section 2.2 and (iiiC) enforce their rights under the Debt Letters and (ii) satisfy on a timely basis (or obtain the waiver of) all the conditions and covenants applicable to Parent and or Merger Sub in the Debt Financing Letters and the definitive agreements related thereto that are to be satisfied by Parent or Merger Sub in Parent’s or Merger Sub’s control (including other than those conditions that by consummating their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions at the Closing). In the event that all conditions set forth in Section 8.1 and Section 8.2 have been satisfied or waived or, upon funding shall be satisfied or waived, Parent and Merger Sub shall obtain the Equity Financing contemplated by the Equity Commitment Letter and use their reasonable best efforts to cause the Persons providing the Debt Financing (the “Debt Financing Parties”) to fund the Debt Financing at or prior to the Closing on the terms and subject Effective Time with respect to shares to be paid for pursuant to the conditions set forth in Merger. (b) Parent shall keep the Equity Funding Letter) (orCompany reasonably informed on a reasonably current basis of the status of the Debt Financing and material developments with respect thereto and upon the Company’s reasonable written request, if necessary or deemed advisable by Parentprovide the Company with copies of any final material definitive agreements related to the Debt Financing. Without limiting the foregoing, seek the waiver of conditions applicable to Parent and Merger Sub contained shall promptly (and in such no event less than one Business Day) after obtaining knowledge thereof, give the Company prompt written notice (i) of any breach or default by any party to the Debt Letters or the definitive documentation related to the Debt Financing, (ii) the receipt of any written notice or other written communication from any Debt Financing Source Party with respect to any (A) actual breach, default, termination (other than in accordance with its terms) or repudiation by any part to any of the Financing Letters or, to the extent entered into and effective prior to the Closing Date, the definitive agreements related to the Financing of any provisions of the Debt Letters or (B) material dispute or material disagreement relating to the Financing with respect to the obligations to fund the Financing or the amount of the Financing to be funded at Closing (excluding, for the avoidance of doubt, any ordinary course negotiations with respect to the terms of the Debt Financing or the definitive agreements with respect to the Debt Financing) or (iii) if for any reason Parent in good faith no longer believes it or Merger Sub will be able to obtain all or any portion of the Debt Financing in the manner or from the sources contemplated by the Debt Commitment Letter or such the definitive agreements documentation related thereto)to the Debt Financing. Parent may amend, (iv) upon modify, terminate, assign or agree to any waiver under the satisfaction or waiver Debt Letters without the prior written approval of the conditions to Parent’s Company, provided that Parent and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the Company’s prior written consent of the Companyconsent, agree to or permit any termination of or such amendment, supplement modification, assignment, termination or modification waiver to be made to, or grant consent to or agree to any waiver of of, any provision under, of or remedy under the Financing Debt Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver which would (A) reduce the aggregate net cash amount of any portion of the Debt Financing (including by increasing the amount of fees to be paid or original issue discount as compared to of the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement Debt Financing, unless the Debt Financing or Equity Financing is increased by a corresponding amountamount on substantially the same terms as provided in the Debt Letters) except to the extent after giving effect to such that termination, amendment, modification, waiver or replacement, the aggregate amount net proceeds contemplated from the Equity Financing and the Debt Financing (as terminated, amended, modified, waived or replaced), together with other financial resources of Parent, including contemplated cash on hand of Parent, is, in the aggregate, sufficient for the satisfaction of all of Parent’s and Merger Sub’s obligations under this Agreement, including the payment of the Financing would Merger Consideration and all fees and expenses reasonably expected to be below the amount required to pay the Required Amountincurred in connection therewith, (B) impose new or additional conditions precedent to the availability funding of the Debt Financing or otherwise expand, amend or modify any of the conditions precedent to the funding of the Debt Financing, in any case, from those set forth in the Debt Commitment Letter on the date of this Agreement or (C) otherwise expand, amend, modify or waive any provision of the Debt Letters or the Debt Financing in a manner that in the case of this clause (C) would reasonably be expected to materially (I) impair, delay or prevent or make less likely the consummation of the Merger or the funding of the Debt Financing (or satisfaction of the conditions to the Debt Financing) on at the Closing Date or Effective Time, taking into account the timing of the Marketing Period, (CII) materially and adversely impact the ability of Parent or and Merger Sub, as applicable, Sub to enforce its their rights against the Debt Financing Parties or any other parties to the Financing Debt Letters or the definitive agreements with respect thereto or (III) adversely affect the ability of Parent or Merger Sub to timely consummate the Merger and the other transactions contemplated hereby; provided, however, for the avoidance of doubt, Parent and Merger Sub may amend, replace, supplement and/or modify the Debt Letters solely to add additional Debt Financing Parties as parties thereto who had not executed the Debt Letters as of the date hereof. Neither Parent nor Merger Sub shall permit or consent to any amendment, supplement, waiver or modification to be made to the Equity Commitment Letter (other than to increase the amount of the Equity Financing). In the event that new commitment letters and/or fee letters are entered into in accordance with any amendment, replacement, supplement or other modification of the Debt Letters permitted pursuant to this Section 7.3, such new commitment letters shall be deemed to be a “Debt Commitment Letter” for all purposes of this Agreement and/or together with such new fee letters shall be deemed to be a part of the “Debt Financing” and deemed to be the “Debt Letters” for all purposes of this Agreement. Parent and Merger Sub shall promptly deliver to the Company true, correct and complete copies of any termination, amendment, modificationmodification or replacement of the Debt Letters. If funds in the amounts set forth in the Debt Letters, supplementor any portion thereof, consent become unavailable, Parent shall, as promptly as practicable following the occurrence of such event, (x) notify the Company thereof, (y) use its reasonable best efforts to obtain substitute debt financing from the same or waiver alternative debt financing sources (on terms and conditions that are not materially less favorable to Parent and Merger Sub, taken as a whole, than the terms and conditions as set forth in the Debt Letters, taking into account any “market flex” provisions thereof) in an amount sufficient, when added to the portion of the Financing that is and remains available to Parent or under Merger Sub, together with cash on hand at Parent and its Subsidiaries, to enable Parent and Merger Sub to consummate the payment for shares of Company Stock by Merger Sub pursuant to the Merger and the other transactions contemplated hereby in accordance with the terms hereof (the “Substitute Debt Financing”) and (z) promptly after execution of any Financing Letter new debt financing commitment letter that provides for such Substitute Debt Financing, deliver to the Company true, complete and correct copies of the new debt commitment letter and the related fee letters (redacted to remove the fee amounts, pricing caps, the rates and economic terms included in the “market flex” and related to “securities demand” provisions contained therein and certain other economic terms, none of which redacted provisions cover terms that would reasonably be expected to adversely affect conditionality, enforceability or availability of, or the aggregate amount available under the Debt Financing) and related definitive agreements relating financing documents with respect to such Substitute Debt Financing. Upon obtaining any commitment for any such Substitute Debt Financing, such financing shall be deemed to be a part of the “Debt Financing” and any commitment letter for such Substitute Debt Financing promptly upon execution thereof. Notwithstanding anything to shall be deemed a “Debt Commitment Letter,” and together with the contrary in related fee letters the “Debt Letters” for all purposes of this Agreement. For the avoidance of doubt, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent require or Merger Sub be deemed or construed to requirerequire Parent to seek equity financing from any source or in excess of the amount set forth in the Equity Commitment Letter. (c) Notwithstanding anything contained in this Agreement to the contrary, either Parent and Merger Sub expressly acknowledge and agree that neither Parent’s nor Merger Sub’s obligations hereunder are conditioned in any manner upon Parent or Merger Sub obtaining the Debt Financing, any Substitute Debt Financing or any other financing. (d) Prior to Closing, the Company and its Subsidiaries shall use their reasonable best efforts to, and shall use their respective reasonable best efforts to cause their Representatives to, use their reasonable best efforts to provide to Parent such customary cooperation as may be reasonably requested by Parent to assist Parent in connection with arranging the Debt Financing (which for purposes of this clause (d) shall include one or more offerings of non-convertible high yield debt securities to be issued or incurred in lieu or in replacement of any bridge financing contemplated by the Debt Letters) and the satisfaction of the conditions as set forth in the Debt Letters, including using reasonable best efforts to: (i) seek furnish to Parent as promptly as reasonably practicable (or, in the Equity Financing from any source case of financial statements set forth in paragraph 4 of Exhibit D to the Debt Letters (as in effect on the date of this Agreement), within the time period set forth therein) (A) the Required Information and (B) such other than pertinent and customary financial and operating information regarding the counterparties toCompany as may be reasonably requested by Parent to the extent that such information is customarily required for financings of the type contemplated by the Debt Letters; provided that, or in any amount in excess of that contemplated byconnection with the foregoing clause (B), the Equity Funding Letter, Company shall not be obligated to furnish any of the Excluded Information and the Company shall only be obligated to deliver such information to the extent such information may reasonably be obtained from the books and records of the Company or is otherwise readily available to the Company and its Subsidiaries; (ii) pay upon reasonable prior notice, cause members of management (with appropriate seniority) of the Company to participate in a reasonable number of meetings, presentations and roadshows with prospective lenders and investors and sessions with the ratings agencies, in each case in connection with the arrangement of the Debt Financing at reasonable times and locations mutually agreed between the Parent and the Company; (iii) to the extent reasonably requested, assist Parent and the Debt Financing Parties in their preparation of (A) any material fees bank information memoranda and related lender presentations, (B) any offering memoranda or private placement memoranda, (C) materials for rating agency presentations and (D) other customary marketing materials, including reviewing and commenting on Parent’s draft of business description with respect to the Company and its Subsidiaries, all as required or contemplated in excess of those contemplated connection with the Debt Financing; provided that any such materials that include disclosure and financial statements with respect to the Company shall only reflect the Surviving Corporation as the obligor(s) and no such bank information memoranda, lender presentations or materials shall be issued by the Equity Funding Letter Company or its Subsidiaries (but, for the avoidance of doubt, shall include authorization letters delivered by the Company with respect to its own information); (iv) (A) to the extent reasonably requested, assist and provide customary information to assist Parent in allowing Parent to prepare pro forma financial statements customarily included in offering documents for non-convertible high yield debt securities, it being understood that Parent, and not the Company or its Subsidiaries or their respective Representatives, shall be responsible for the preparation of the pro forma financial statements and any other pro forma information, including any pro forma adjustments and the Company’s, its Subsidiaries’ and their Representatives’ assistance shall relate solely to the financial information and data that can be reasonably derived from the Company’s historical books and records or other readily available data or information and the Company, its Subsidiaries and their Representatives shall not be responsible for providing any information required for the preparation of such pro forma financial statements relating to (1) cost savings, synergies, capitalization, ownership, and other post-Closing or pro forma adjustments (and the assumptions relating thereto) or (2) other information, data and assumptions concerning the assumptions underlying such post-Closing or pro forma adjustments, and (B) direct and facilitate the Company’s auditors to provide (x) customary comfort letters (including “negative assurance” comfort) with respect to historical financial information of the Company included in any offering documents relating to Debt Financing that consists of non-convertible high yield debt securities and (y) if required, customary consents to the use of their audit reports on the consolidated financial statements of the Company in any syndication, offering or other marketing documents relating to the Debt Commitment Letter Financing, in each case subject to such auditors’ policies and procedures and applicable auditing standards; (v) at least four (4) Business Days prior to the Closing Date, provide Parent all documentation and other information with respect to the Company and its Subsidiaries as shall have been reasonably requested in writing by Parent at least nine (9) Business Days prior to the Closing Date that is required in connection with the Debt Financing by regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act and, if the Company or any of its Subsidiaries qualifies as “legal entity customers” under the Beneficial Ownership Regulation (as defined in the Debt Letters), a Beneficial Ownership Certification (as defined in the Debt Letters) and that are required by paragraph 6 of Exhibit D of the Debt Letters (as in effect on the date of this Agreement); (vi) reasonably facilitate the pledging of collateral, including any market “flex” provisions contained therein).possessory collateral (provided that (A) none of the documents or certificates shall be executed and/or delivered except in connection with the Closing and (B) the effectiveness thereof shall be conditioned upon, or become operat

Appears in 1 contract

Sources: Agreement and Plan of Merger (Covanta Holding Corp)

Financing. (a) Each of Parent and Merger Sub HoldCo shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange, obtain and consummate and obtain the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing LettersCommitment Letter as promptly as practicable after the date hereof, including using its reasonable best efforts to (i) maintain in effect the Commitment Letter until the Mergers and comply the other transactions contemplated by this Agreement are consummated (it being acknowledged that the commitments under the Commitment Letter may be reduced or terminated in accordance with the Financing LettersCommitment Letter in effect on the date hereof (provided that the aggregate proceeds of the Debt Financing, together with cash, cash equivalents and short-term marketable securities held by the Parent Entities, as of the First Effective Time, will be sufficient to enable Parent and/or HoldCo to pay all amounts required to be paid by them in cash in connection with the transactions contemplated by this Agreement, including the Preferred Stock Consideration and all payments, fees and expenses payable by them arising out of the consummation of the transactions contemplated by this Agreement, the Company Notes and the Credit Agreement)) and (ii) unless Parent or HoldCo shall have reduced the commitments under the Commitment Letter to zero in accordance with the immediately preceding clause (i), (x) timely negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined facilities contemplated by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Commitment Letter on the terms and conditions set forth therein (or other terms agreed to by Parent, HoldCo and the lenders, subject only to the conditions (including restrictions on amendments to the market “flex” provisions) Commitment Letter set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letterbelow), (iiiy) satisfy or cause to be waived on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions HoldCo set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), that are within its control and otherwise comply with its obligations thereunder and (ivz) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Mergersuch conditions, consummate the Financing Debt Financing. Parent and HoldCo shall take any and all actions necessary to obtain the confirmation of the counterparties to the Commitment Letter that such counterparties have completed and are satisfied with the results of all client identification procedures with respect to HoldCo that are required by such counterparties under the Commitment Letter as promptly as practicable. In the event that all conditions set forth in Section 9.01 and Section 9.02 have been satisfied or waived or, upon funding of the Debt Financing, shall have been satisfied or waived, Parent and HoldCo shall, and shall cause their Subsidiaries to, use reasonable best efforts to cause the lenders and Financing Sources providing the other Persons committing to fund the Debt Financing to fund on the Financing at Closing Date the ClosingDebt Financing. Parent and/or HoldCo shall pay, (v) enforce its rights or cause to be paid, as the same shall become due and payable, all fees and other amounts under the Commitment Letter. (b) Notwithstanding the foregoing, Parent and/or HoldCo may, in its sole discretion and at any time, replace all or any portion of the Debt Financing Letters and provided for in the definitive agreements relating Commitment Letter with one or more commitments from financial institutions to provide an equal or greater amount of debt financing to be made available on or prior to the Financing Closing Date without the prior written approval of the Company, provided, that Parent and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors HoldCo shall not, without the Company’s prior written consent of the Company(which consent shall not be unreasonably withheld or delayed), agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver replacement which would (A) except as provided for in clause (i) of paragraph (a) above, reduce the aggregate amount of any portion cash amounts of the Debt Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement discount) unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount Debt Financing, together with cash, cash equivalents and short-term marketable securities following such reduction is sufficient to pay for all amounts required to pay be paid by Parent or HoldCo in cash in connection with the Required AmountCompany Notes and Credit Agreement (to the extent consents or waivers pursuant to each are not obtained to the extent required) and the transactions contemplated by this Agreement, including the Preferred Stock Consideration and all payments, fees and expenses payable by them arising out of the consummation of the transactions contemplated by this Agreement or (B) impose new expand, amend, modify or additional conditions precedent to the availability waive any provision of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing Commitment Letter in a manner that in any such case would reasonably be expected to (1) materially delay or prevent make materially less likely the funding of the Debt Financing (or satisfaction of the conditions to the Debt Financing) on the Closing Date or Date, (C2) materially adversely impact the ability of Parent or Merger Sub, as applicable, HoldCo to enforce its rights against the Financing Sources or any other parties to the Financing Letters Commitment Letter or (3) materially adversely affect the definitive agreements with respect ability of Parent, HoldCo or any of their Subsidiaries to timely consummate the Financingtransactions contemplated by this Agreement. Parent and HoldCo shall promptly deliver not amend, modify or agree to any waiver under the Commitment Letter without the prior written approval of the Company copies of any if such amendment, modification, supplement, consent modification or waiver to would have any of the effects described in clauses (A) or under any Financing (B) above; provided, that Parent and HoldCo may modify, supplement or amend the Commitment Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (ix) seek add lenders, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter as of the date of this Agreement and (including y) implement or exercise any “market “flex” provisions contained thereinin the fee letter related to the Commitment Letter. Upon any replacement contemplated by this Section 7.07(b), (i) the definition of “Commitment Letter” set forth in this Agreement shall be deemed to have been modified as appropriate to reflect such replacement debt financing and any related commitment letter and (ii) any reference in this Agreement to the “Debt Financing” shall mean financing contemplated by the Commitment Letter as modified pursuant to clause (i) above. (c) If the Debt Financing in an aggregate principal amount (together with cash, cash equivalents and short-term marketable securities on hand) at least equal to all amounts required to be paid by Parent or HoldCo in cash in connection with transactions contemplated by this Agreement, including the Preferred Stock Consideration, Company Notes and Credit Agreement (to the extent consents or waivers pursuant to each are not obtained and to the extent required), and all payments, fees and expenses payable by them arising out of the consummation of the transactions contemplated by this Agreement becomes unavailable on the terms and conditions contemplated by the Commitment Letter, and such unavailable amount is reasonably required to make such payments required to be paid in connection with the transactions contemplated by this Agreement (such event, an “Original Financing Failure”), Parent and HoldCo shall promptly notify the Company in writing of the Original Financing Failure and Parent or HoldCo shall use its reasonable best efforts to arrange and obtain, as promptly as reasonably practicable, alternative financing from alternative sources on terms and conditions not materially less favorable, taken as a whole, to Parent or HoldCo than those contained in the Commitment Letter and the related fee letters and in an amount, when added with cash, cash equivalents and marketable securities of Parent and HoldCo, at least equal to the aggregate principal amount of the Debt Financing or such unavailable portion thereof, as the case may be (the “Alternate Financing”), and to obtain a new financing commitment letter with respect to such Alternate Financing (the “New

Appears in 1 contract

Sources: Merger Agreement (Avon Products Inc)

Financing. (a) Each of Parent and Merger Sub Buyer shall use its reasonable best efforts to take, or cause to be taken, all actions action and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain arrange the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitments, including using its reasonable best efforts to (i) maintain in effect and comply with the Financing LettersCommitments, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub Buyer to obtaining the Financing as set forth in the Financing Letters and the Commitments that are within its control, (iii) negotiate definitive agreements related with respect thereto on the terms and conditions contemplated by the Financing Commitments, (including by consummating iv) comply with its obligations under the Equity Financing Commitments and definitive agreements with respect thereto, and (v) subject to the terms and conditions set forth in the Financing Commitments, consummate the Financing at or prior to the Closing on the terms and subject Closing. Notwithstanding anything in this Agreement to the conditions set forth in contrary, one or more Debt Financing Commitments may be superseded or amended at the Equity Funding Letter) option of Buyer after the date of this Agreement but prior to the Effective Time, by instruments, including all exhibits, schedules, annexes, documents containing “market flex” provisions binding on Buyer (orincluding redacted versions of any relevant fee letter), if necessary or deemed advisable by Parentany, seek amendments and replacements thereto (the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto“New Financing Commitments”), which replace existing Debt Financing Commitments and/or contemplate co-investment by or financing from one or more other or additional parties; provided that such New Financing Commitments shall not (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (Ax) reduce the aggregate amount of any portion the Debt Financing below the amount (together with the Equity Commitments) required to consummate the transactions contemplated hereby, or (y) include changes that would make the consummation of the Debt Financing less likely or cause more than an immaterial delay in the consummation of the Debt Financing. In the event of such New Financing Commitments, the term “Financing Commitments” as used herein shall be deemed to include the Financing Commitments that are not so superseded at the time in question and the New Financing Commitments to the extent then in effect. Buyer shall promptly provide copies of all material documents related to the Financing (including by increasing the amount of fees other than any ancillary documents subject to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, confidentiality agreements (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company excluding redacted copies of any amendment, modification, supplement, consent or waiver fee letters)) to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Sellers.

Appears in 1 contract

Sources: Master Purchase Agreement (EQT Corp)

Financing. (a) Each of Parent and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary, proper or advisable to arrange, obtain and consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) not materially less favorable than those set forth in the Financing LettersLetters as promptly as practicable after the date of this Agreement, including using (and causing its Affiliates to use) reasonable best efforts to (i) subject to this clause (a) and clause (b) below, maintain in full force and effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing (such agreements, the “Definitive Financing Agreements”) on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable favorable, to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), in each case, which terms shall not in any material respect expand on the conditions to the funding of the Financing at the Offer Closing and the Closing or reduce the Required Amount of the Financing available to be funded at the Offer Closing and the Closing (other than as contemplated by the Debt Financing Commitments), which Definitive Financing Agreements shall be in effect no later than the Offer Closing, (iii) satisfy on a timely basis (or obtain the waiver of) all conditions and covenants applicable to to, and in the control of, Parent and Merger Sub in the Financing Letters and the definitive agreements Definitive Financing Agreements related thereto (including by consummating the Equity Financing at or prior to the Offer Closing on the terms and subject to the conditions set forth in the Equity Funding Commitment Letter) (or, if reasonably necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter Financing Letters or such definitive agreements Definitive Financing Agreements related thereto), (iv) upon the satisfaction assuming that all conditions contained in any Financing Letter have been (or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Mergerwould substantially simultaneously be) satisfied, consummate the Financing at or prior to the Offer Closing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at or prior to the Closing, Offer Closing and (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements Definitive Financing Agreements relating to the FinancingFinancing in all material respects. Parent, Merger Sub and the Guarantors Guarantor shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement supplement, replacement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements Definitive Financing Agreements relating to the Financing if such termination, amendment, supplement, replacement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would reasonably be expected to be below the amount required to pay the Required AmountAmount (when taken together with the Equity Financing), (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing Financing, in each case in a manner that would or would reasonably be expected to prevent or materially impede, interfere with, hinder or delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on or the Closing Date or consummation of the Transactions, (C) change the timing of the funding of the Financing thereunder, if such change would make such funding materially less likely to occur when required pursuant to the term of this Agreement or (D) materially and adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements Definitive Financing Agreements with respect to the FinancingFinancing (clauses (A) through (D), collectively, the “Prohibited Modifications”). For the avoidance of doubt, Parent and Merger Sub shall have the right from time to time to amend, supplement, replace, substitute, terminate or otherwise modify or waive its rights under any Debt Commitment Letter, including without limitation to (1) terminate any Debt Commitment Letter in order to obtain alternative sources of financing in lieu of all or a portion of the Debt Financing or (2) effect any Replacement Commitment Facility (as defined in the Debt Commitment Letter) or add and appoint additional arrangers, bookrunners, underwriters, agents, lenders and similar entities, to provide for the assignment and reallocation of a portion of the financing commitments contained therein and to grant customary approval rights to such additional arrangers and other entities in connection with such appointments; provided that no such amendment, supplement, replacement, substitution, termination, modification or waiver would be reasonably likely to effect a Prohibited Modification. Unless entered into for the purposes set forth in the preceding clause (2), Parent shall promptly deliver to the Company copies of any amendment, termination, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements Definitive Financing Agreements relating to the Financing promptly upon execution thereof. (b) Upon request by the Company, Parent shall keep the Company informed on a reasonably prompt basis and in reasonable detail of the status of its efforts to arrange the Financing and provide to the Company drafts (reasonably in advance of execution) and thereafter complete, correct and executed copies of the material Definitive Financing Agreements for the Financing. Parent and Merger Sub shall give the Company prompt notice of (i) any material breach or default, or any termination, cancellation or repudiation by any party to any of the Financing Letters or definitive documents related to the Financing (including the Definitive Financing Agreements) of which Parent or Merger Sub becomes aware, (ii) the receipt by Parent or Merger Sub of any written notice or other written communication from any Financing source with respect to any (A) material breach or default, or any termination, 62 cancellation or repudiation by any party to any of the Financing Letters or any definitive document related to the Financing (including the Definitive Financing Agreements) of any provisions of the Financing Letters or any definitive document related to the Financing (including the Definitive Financing Agreements) or (B) material dispute or disagreement between Parent and any Financing source or among any parties to any of the Financing Letters or any definitive document related to the Financing (including the Definitive Financing Agreements), in each case regarding the Financing, and (iii) the occurrence of an event or development that would or would reasonably be expected to adversely impact the ability of Parent or Merger Sub to obtain all or any portion of the Financing necessary to fund the Required Amount on the terms and in the manner contemplated by the Financing Letters; provided that no such notification shall affect any of the representations, warranties, covenants, rights or remedies of, or the conditions to the obligation of, the parties hereunder. As soon as reasonably practicable, but in any event within two (2) Business Days of the date the Company delivers to Parent or Merger Sub a written request, Parent and Merger Sub shall provide any information reasonably requested by the Company relating to any circumstance referred to in the immediately preceding sentence. If any portion of the Debt Financing necessary to fund the Required Amount becomes unavailable on the terms and conditions (including any applicable market “flex” provisions) contemplated by the Debt Commitment Letter, (x) Parent shall promptly notify the Company in writing and (y) Parent and Merger Sub shall (other than as a result of the Company’s material breach of any provision of this Agreement or failure to satisfy the conditions set forth in clause (c) below) use their reasonable best efforts to arrange and obtain, as promptly as practicable, in replacement thereof alternative financing (the “Alternative Financing”) from alternative sources in an amount sufficient to fund the Required Amount with terms and conditions (including market “flex” provisions) not materially less favorable to Parent and Merger Sub (or their respective Affiliates) than the terms and conditions set forth in the Debt Commitment Letter and Parent shall deliver to the Company true and complete copies of the alternative debt commitment letters (including fee letters that may be delivered in redacted form removing only the fee information, all “market flex” information, all “securities demand” terms, and other economic terms in a customary manner) pursuant to which any such alternative source shall have committed to provide any portion of the Debt Financing; provided, that, any such alternative debt commitment letter will not (i) involve any conditions to funding of the Debt Financing that are not contained in the Debt Commitment Letter or (ii) reasonably be expected to prevent or materially impede, interfere with, hinder or delay the consummation of the Transactions. Notwithstanding anything to the contrary contained in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub its Affiliates be deemed or construed required to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees or any interest rates applicable to the Debt Financing in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter as in effect on the date hereof (including the market “flex” provisions) or agree to any material term (including any market “flex” provisions term) less favorable to Parent than such term contained thereinin the Debt Commitment Letter as in effect on the date of this Agreement (including the market “flex” provisions). For purposes of this Agreement, other than with respect to representations in this Agreement made by Parent and Merger Sub that speak as of the date of this Agreement, references to (x) the “Financing” shall include the financing contemplated by the Financing Letters as permitted to be amended, modified, supplemented, substituted or replaced by this Section 5.10, (y) references to the “Debt Commitment Letter” shall include such documents as permitted to be amended, modified, supplemented or replaced by this Section 5.10 and (z) references to “Debt Financing” shall include the debt financing contemplated by the Debt Commitment Letter as permitted to be amended, modified, supplemented, substituted or replaced by this Section 5.10. (c) Prior to the earlier of the Closing Date or termination of this Agreement in accordance with Article VII, the Company shall use its reasonable best efforts to provide, and to cause its Subsidiaries to use reasonable best efforts to provide, to Parent and Merger Sub, in each case at Parent’s sole cost and expense, such reasonable cooperation as may 63 be reasonably requested by Parent that is necessary or reasonably advisable in connection with the arrangement of the Debt Financing, including using its reasonable best efforts to: (i) cause the applicable independent auditors to provide reasonable and customary assistance and cooperation in connection with the Debt Financing, including, (A) rendering customary “comfort letters” under AU Section 634 (or other applicable standard) for a public offering or a Rule 144A private placement of debt securities with respect to financial information contained in the offering materials relating to the Debt Financing, including providing customary representations to such auditors and furnishing drafts of such comfort letters (which shall provide “negative assurance” comfort) which such auditors 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 Parent pursuant to the Securities Act or the Exchange Act, where such financial information is included; (ii) inform Parent if the Company or its Subsidiaries shall have actual knowledge of 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 such financial statements to comply with GAAP or to otherwise satisfy the requirements of Section 5.10(e); (iii) upon reasonable advance notice, participate in a reasonable number of 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 and purchasers of, the Debt Financing), drafting sessions, due diligence sessions (including accounting due diligence sessions), presentations and sessions with rating agencies in connection with the Debt Financing at reasonable times to be mutually agreed and provided that any such meetings or presentations and sessions shall be limited to teleconference or virtual meeting platforms; (iv) promptly, and upon reasonable advance notice, assist Parent in obtaining any corporate or facility ratings from any ratings agencies contemplated by the Debt Financing and with the preparation by Parent and the Lender Related Parties of materials for (A) rating agency presentations, offering documents and private placement memoranda and (B) customary bank information memoranda (including a bank information memorandum that does not include material non-public information 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 lenders or investors and containing (1) a representation to the Lender Related Parties that the public side versions of such documents, if any, do not include material non-public information about the Company or its Subsidiaries or their securities and (2) a “10b-5” representation by the Company consistent with the Debt Commitment Letter), offering documents (including an offering memorandum for high yield debt securities), and similar documents required in connection with the Debt Financing; provided that any such ratings agency presentations, customary bank information memoranda, offering documents, and similar customary documents that include disclosure and financial statements with respect to the Company and/or its Subsidiaries shall only reflect the Surviving Corporation and/or its Subsidiaries as the obligor(s) and no such ratings agency presentations, bank information memoranda or similar marketing documents shall be issued by the Company or any of its Subsidiaries; (v) (x) execute and deliver as of (but not effective prior to) the Closing any credit agreements, indentures, pledge and security documents, other definitive financing documents or other certificates or documents as may be reasonably requested by Parent and (y) otherwise reasonably facilitate the obtaining of guarantees and the pledging of collateral, including executing and delivering any customary guarantee, pledge and security documents and other documents to facilitate any guarantee, obtaining and perfection of security interests in collateral from and after the Closing (including delivery to the Lender Related Parties at the Closing of all certificates representing outstanding equity interests of the Company and each of its Subsidiaries); provided that (A) none of the documents or certificates shall be executed and/or delivered except in connection with the Closing, (B) the effectiveness thereof shall be conditioned upon, or become operative after, the occurrence of the Closing and (C) no liability shall be imposed on the Company or any of its

Appears in 1 contract

Sources: Merger Agreement (CDK Global, Inc.)

Financing. (a) Each of Parent shall, and Merger Sub shall cause its Subsidiaries to, use reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things reasonably necessary, proper or advisable to consummate the Debt Financing or any Substitute Financing in an amount sufficient, together with cash on hand or other sources of funds of Parent, to consummate the Merger and obtain the Financing on other transactions contemplated hereby no later than the terms and subject only Closing, including, to the conditions (including extent necessary to consummate the market “flex” provisions) set forth in the Financing LettersMerger and such other transactions, including using reasonable best efforts to (i) (A) maintain in effect the Debt Commitment Letter and in all material respects comply with the Financing Lettersall of their respective obligations thereunder and (B) negotiate, (ii) negotiate and enter into and deliver definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on reflecting the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (or on with other terms thatagreed by ▇▇▇▇▇▇ and the Financing Sources, with respect subject to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in restrictions on amendments of the Debt Commitment LetterLetter set forth below), so that such agreements are in effect no later than the Closing and (iiiii) satisfy on a timely basis all the conditions applicable to Parent and Merger Sub in the Debt Financing Letters and the definitive agreements related thereto that are in Parent’s (including by consummating or its Subsidiaries’) control. In the Equity Financing at or prior to the Closing on the terms and subject to the event that all conditions set forth in the Equity Funding Letter) (Section 9.01 and Section 9.02 have been satisfied or waived or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver funding of the conditions Debt Financing, shall have been satisfied or waived, Parent shall, and shall cause its Subsidiaries to, use reasonable best efforts to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and Persons providing the other Persons committing to fund the Debt Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicableDebt Financing, to enforce its rights against the extent the proceeds thereof are required to consummate the Merger and the other parties to the Financing Letters or the definitive agreements with respect to the Financingtransactions contemplated hereby. Parent shall promptly deliver pay, or cause to be paid, as the same shall become due and payable, all fees and other amounts under the Debt Commitment Letter. (b) Parent shall keep the Company reasonably informed on a timely basis of the status of Parent’s and its Subsidiaries’ efforts to obtain the Debt Financing and to satisfy the conditions thereof, including providing copies of any amendment, modification, supplement, consent modification or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts replacement of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including provided, that any fee letter may be redacted to remove the fee amounts, the rates and amounts included in the “market “flex” provisions contained therein).and other economic terms that could not adversely affect the conditionality, enforceability, termination or aggregate principal amount of the Debt Financing) and shall give the Company prompt notice of any fact, change, event or circumstance that is reasonably likely, individually or in the aggregate, to have a material adverse impact on the Debt Financing necessary to satisfy all of Parent’s and its Subsidiaries’ obligations under this Agreement, including, promptly after obtaining knowledge thereof, providing the Company written notice of any (A) material breach or default by a Financing Source or any party to any definitive document related to the Debt Financing of the Debt Commitment Letter or any definitive document related to the Debt Financing, (B) actual or threatened withdrawal, repudiation or termination in writing of the Debt Commitment Letter or the Debt Financing by the Financing Sources or (C) material dispute or disagreement between or

Appears in 1 contract

Sources: Merger Agreement (Juniper Networks Inc)

Financing. (a) Each of Parent and Merger Sub shall use commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper necessary or advisable to consummate and obtain obtain, no later than the Closing Date, the proceeds of the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Commitment Letters, including using reasonable best efforts to (i) maintain maintaining in effect the Commitment Letters in accordance with and comply with subject to the Financing Lettersterms and conditions set forth therein (it being understood that the Commitment Letters may be replaced or amended as provided below), (ii) negotiate and enter into negotiating definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on (the “Definitive Agreements”) that reflect the terms and subject only conditions in the Debt Commitment Letter or such other terms that may be acceptable to Parent or the Lenders, provided that, such other terms shall not be permitted to the extent they constitute Restricted Terms (as defined below) and seeking to obtain such other terms shall not be permitted if it could reasonably be expected to materially prevent, impair or delay the Closing, (iii) satisfying on a timely basis (or obtaining a waiver of) all conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms thatthan those conditions that by their nature are to be satisfied at the Closing, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and but subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of such conditions at the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer Closing) and the Merger, consummate Definitive Agreements applicable to Parent or its Affiliates that are within their control and (iv) complying with the covenants applicable to it in the Commitment Letters and in the Definitive Agreements for the Financing and that are within its control to the extent the failure to comply with such covenants could adversely impact the amount, certainty or timing of the Financing or the availability of the Financing at the Closing. In the event that all conditions contained in the Commitment Letters have been satisfied (other than, with respect to the Debt Financing, the availability of the Cash Equity), Parent shall use commercially reasonable efforts to cause the lenders Lenders and the other Persons committing to fund the Financing Equity Investor to fund the Financing at the Closing. Other than amendments, (v) enforce its rights under the Financing Letters and the definitive agreements relating modifications or supplements to add lenders, lead arrangers, bookrunners, syndication agents or similar entities as parties to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. ParentDebt Commitment Letter, Merger Sub and the Guarantors Parent shall not, without the prior written consent of the CompanyCompany (which shall not be unreasonably withheld, agree to conditioned or delayed) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any material provision or remedy under, the Financing Commitment Letters or the definitive agreements relating to the Financing Definitive Agreements if such termination, amendment, supplementmodification, modification waiver or waiver would remedy (A) reduce adds new (or expands or adversely modifies any existing) conditions to the aggregate amount of any portion consummation of the Financing Financing, (including by increasing B) reduces the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing to an amount that would be below less than the amount that would be required to pay the Required AmountFinancing Amount (unless, (B) impose new or additional conditions precedent in the case of a reduction to the availability Debt Financing, the Cash Equity is increased by the amount of any such reduction (such additional amount of Cash Equity, the Financing or otherwise expand“Additional Cash Equity”)), amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact affects the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Commitment Letters or the Definitive Agreements in any material respect, (D) adversely affect the ability of Parent or its Affiliates to enforce or cause the enforcement of its rights under the Financing in any material respect, (E) allow for the early termination of the Debt Commitment Letter, or (F) could reasonably be expected to prevent, impede or delay the consummation of the Merger and the other Contemplated Transactions (clauses (A) through (F), collectively, the “Restricted Terms”). In the event that any portion of the Debt Financing becomes unavailable (or Parent reasonably expects may become unavailable) on the terms and conditions in the Debt Commitment Letter or on such other terms not materially less favorable to Parent (unless the Cash Equity is increased by a corresponding amount), regardless of the reason therefor (other than the right of Parent to terminate this Agreement pursuant to Section 7.4 hereof), Parent will use commercially reasonable efforts to (x) obtain alternative debt financing (in an amount, when taken together with the Cash Equity, at least equal to the Financing Amount) from the same or other sources on terms and conditions that are not materially less favorable in the aggregate to Parent (in Parent’s reasonable discretion) than those contained in the Debt Commitment Letter (the “Alternative Debt Financing”), provided that such Alternative Debt Financing shall not include any Restricted Terms and (y) promptly notify the Company of such unavailability and the reason therefor. For the purposes of this Agreement (other than as expressly provided otherwise), the term “Debt Financing” shall be deemed to include any Alternative Debt Financing arranged in compliance herewith, and the terms “Debt Commitment Letter” and “Definitive Agreement” shall be deemed to include any commitment letter (or similar agreement) or definitive agreements agreement with respect to any such Alternative Debt Financing; provided, that, notwithstanding anything to the contrary herein, in no event shall any Alternative Debt Financing or amendment with respect to the Financing. Debt Commitment Letter be deemed to materially and adversely expand the obligations set forth in this Section 5.20 of the Company and its Subsidiaries. (b) Parent shall promptly deliver to notify the Company copies in writing (i) of any amendmentbreach or default by any party to any Commitment Letter, modification, supplement, consent or waiver to or under (ii) of the receipt by any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed any of their Affiliates of any written notice from any Debt Financing Source with respect to requireany actual or threatened breach, either dispute, termination or repudiation by any party to any Commitment Letter (but excluding in each case, for the avoidance of doubt, any ordinary course negotiations with respect to the terms of the Financing or any Definitive Agreement with respect thereto), (iii) if for any reason Parent or Merger Sub believes in good faith that it will not be able to obtain all or any portion of the Financing necessary to fund the Financing Amount (taking into account the Cash Equity) on the terms (or on such other terms not materially less favorable to Parent), in the manner or from the sources contemplated by the Commitment Letters at or prior to the time that the Closing is required to occur pursuant to the terms hereof and (iv) of the termination or expiration of the Debt Commitment Letter. Upon the request of the Company, Parent shall keep the Company reasonably informed (and provide information reasonably requested by the Company) including, without limitation, relating to any circumstance referred to in clause (i) seek through (iv) of the Equity Financing from immediately preceding sentence; provided that Parent shall not be obligated to provide any source information that would jeopardize any attorney-client privilege on a reasonably current basis of the status of its efforts to consummate the Financing. Notwithstanding the foregoing, compliance by Parent with this Section 5.20(b) shall not relieve Parent of its obligation to consummate the Contemplated Transactions. (c) Notwithstanding anything to the contrary, nothing in this Section 5.20 shall require (i) funding of any equity financing other than the counterparties toCash Equity portion of the Financing (including any Additional Cash Equity), (ii) the incurrence of any debt financing other than the Debt Financing or any Alternative Debt Financing, or (iii) the payment of fees in any amount connection with the Debt Financing or the Cash Equity portion of the Financing in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those amounts contemplated by the Equity Funding Letter or the Debt Commitment Letter and Equity Commitment Letter. (d) Prior to the Closing, (i) with respect to the Company Credit Agreements the Company shall, and shall cause its Subsidiaries to obtain from the Company’s existing banking lenders under the Company Credit Agreements (or the relevant agent therefor) customary payoff letters, lien releases and instruments of termination or discharge, if applicable, in form and substance reasonably satisfactory to the Parent, at least one (1) Business Day prior to the Closing Date (and shall use commercially reasonable efforts to obtain drafts of such customary payoff letters by the date that is at least five (5) Business Days prior to the Closing Date), and (ii) with respect to the Company Convertible Notes, the Company shall comply with Section 5.21. Prior to the Closing, the Company shall, and shall cause its Subsidiaries to, use reasonable best efforts to provide, and shall cause its Representatives to use their reasonable best efforts to provide, all cooperation reasonably requested by Parent 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; it being understood and agreed that the actions set forth in clauses (i) through (vii) of this Section 5.20(d) do not so unreasonably interfere), including, but not limited to, using reasonable best efforts to, upon Parent’s request: (i) participate in a reasonable number of virtual meetings, conference calls, presentations and due diligence sessions with arrangers, potential lenders and/or rating agencies, at reasonable times and locations mutually agreed, and upon reasonable notice; (ii) assist Parent with the preparation of customary rating agency presentations and investor and lender presentations required in connection with the Debt Financing; (iii) assist Parent in connection with the preparation of (but not executing prior to the Closing) any loan agreement, guarantees, pledge and security documents and other definitive financing documents as may be reasonably requested by Parent or the Lenders and otherwise reasonably cooperating with Parent and the Lenders in facilitating the pledging of collateral and the granting of security interests relating to the collateral if required by the Debt Commitment Letter, it being understood that such documents will not take effect until the Closing; (iv) provide or obtain customary closing and perfection certificates and insurance, in each case, as reasonably requested by Parent provided that they are contingent on the completion of the Debt Financing; (v) take all corporate and other customary actions, subject to the occurrence of the Closing, reasonably requested by Parent to permit the consummation of the Debt Financing; (vi) furnish Parent with the Required Information; and (vii) at least three (3) Business Days prior to the Closing Date, provide all documentation and other information about the Company and each of its Subsidiaries as is reasonably requested in writing by Parent at least ten (10) Business Days prior to the Closing Date that relates to applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act and customary beneficial ownership certifications. The foregoing notwithstanding, nothing in this Section 5.20 or otherwise shall require (i) any persons who are directors of the Company or any of its Subsidiaries prior to the Closing Date to pass resolutions or consents to approve or authorize any aspect of the Debt Financing to the extent they are not continuing in the same role following the Closing Date; (ii) the Company and its Subsidiaries to pass resolutions or consents to approve or authorize any aspect of the Debt Financing prior to the Closing that is not contingent on the occurrence of the Closing; (iii) the Company or any of its Subsidiaries or any of their respective Representatives to enter into any agreement (other than customary authorization letters and KYC/beneficial ownership certification documentation) or undertake any obligation which becomes effective prior to the Closing and that is not contingent on the occurrence of the Closing; (iv) the Company or any of its Subsidiaries to pay any commitment or other similar fee or incur any other cost or expense, in each case prior to the Closing that is not contingent on the occurrence of the Closing; (v) the Company, any Subsidiary or any Representative thereof to deliver any opinion or solvency certificate; (vi) the Company or any of its Subsidiaries to take any action that could reasonably be expected to (A) conflict with, or result in any violation or breach of, or default under, the organizational documents thereof, any applicable Law, or any material contract to which it is a party; (B) result in the waiver of any legal privilege or (C) cause any condition to the Closing set forth in Article VI to not be satisfied; (vii) any Representative of the Company to deliver any certificate or take any other action in any personal capacity; (viii) the preparation of quarterly or annual financial statements for the Company with a different fiscal quarter end or fiscal year end than the Company’s current fiscal quarter end and fiscal year end dates; or (ix) the Company or any of its Subsidiaries to provide or cause to be provided any Excluded Information or any other financial information other than the Required Information. (e) Parent shall, promptly upon request by the Company, reimburse the Company for all reasonable and reasonably documented out-of-pocket costs and expenses (including reasonable and reasonably documented out-of-pocket attorneys’ fees) incurred by the Company or any market “flex” of its Subsidiaries or their respective Representatives in connection with the cooperation contemplated by this Section 5.20(e) (other than the preparation of its normal quarterly and annual financial statements). Parent shall indemnify and hold harmless the Company and its Subsidiaries and their respective Representatives from and against any and all losses, damages, claims, costs, charges or expenses (including reasonable attorneys’ fees), suffered or incurred by them in connection with (i) the Debt Financing (including the arrangement or obtaining thereof), (ii) any action taken by them pursuant to this Section 5.20(e), or (iii) any information utilized in connection with the Debt Financing except with respect to any historical financing statements or other information provided by or on behalf of the Company or any of its Subsidiaries in writing specifically for use in connection with any Debt Financing, except to the extent resulting from the gross negligence, fraud or willful misconduct of the Company or any of its Subsidiaries or Representatives, arising from incorrect or misleading information provided by Company or any of its Subsidiaries or Representatives, or to the extent that the indemnity relates to matters with respect to which the Parent is entitled to indemnity hereunder. (f) Notwithstanding anything to the contrary, the Company shall be deemed to have complied with Section 5.20(d) for all purposes of this Agreement (including Article III) unless the Debt Financing has not been obtained primarily as a result of the Company’s breach of its obligations under Section 5.20(d). For the avoidance of doubt, the parties acknowledge and agree that (i) the provisions contained therein)in Section 5.20(d) represent the sole obligation of the Company and its Subsidiaries and their respective Representatives with respect to cooperation in connection with the arrangement of the Debt Financing, and no other provision of this Agreement (including the exhibits and schedules hereto) shall be deemed to expand or modify such obligations and (ii) any action taken or omitted to be taken by the Company or its Subsidiaries with respect to the matters contemplated by this Section 5.20 will not be taken into account for purposes of determining whether any condition to the transactions contemplated hereby has been satisfied. (g) All non-public or otherwise confidential information regarding the Company or any of its Subsidiaries obtained by Parent or its Representatives pursuant to this Section 5.20 shall be kept confidential in accordance with the Confidential Disclosure Agreements; it being understood that Parent and its Representatives may disclose such information to its Debt Financing Sources. The Company hereby consents to the reasonable and customary 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 the Subsidiari

Appears in 1 contract

Sources: Merger Agreement (Paratek Pharmaceuticals, Inc.)

Financing. (a) Each of Parent and Merger Sub Buyer shall use its, and shall cause its controlled Affiliates to use their, reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth in the Financing LettersCommitment Papers contemporaneously with the Closing, including by using its reasonable best efforts to (i) maintain in effect and comply with the Financing LettersCommitment Papers, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection Financing (the “Definitive Agreements”) consistent with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth contained in the Debt Commitment Letter), Papers and (iii) if all of the conditions to the Closing contained in Article VI are satisfied or waived (other than those conditions that by their terms are to be satisfied or waived at the Closing or will be satisfied or waived upon funding) and the Marketing Period has ended, satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the Date all conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek Commitment Papers and the waiver of Definitive Agreements and comply with its obligations thereunder. In the event that all conditions applicable to Parent and Merger Sub contained in such Debt the Commitment Letter Papers or such definitive agreements related thereto), the Definitive Agreements (iv) upon other than the satisfaction or waiver consummation of the conditions Transaction and other than those that by their nature are to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing be satisfied at the Closing) have been satisfied or waived, (v) Buyer shall use its reasonable best efforts to enforce its rights under the Financing Letters and Commitment Papers, including using reasonable best efforts to cause the definitive agreements relating Lender Related Parties to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other their respective obligations under the Financing Letters and the definitive agreements relating thereunder, including to fund the Financing. Parent, Merger Sub and the Guarantors Buyer shall not, without the prior written consent of the CompanySeller, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing Commitment Papers if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountFinancing, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially prevent, impede or delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or , (C) adversely impact the ability of Parent or Merger Sub, as applicable, Buyer to enforce its rights against the other parties to the Financing Letters Commitment Papers or (D) would otherwise reasonably be expected to prevent or impede or delay the definitive agreements funding of the Financing, provided, that at Closing, Buyer may reduce the commitments under the Commitment Papers substantially contemporaneously with respect the payment of all amounts due at Closing to the Financingextent Buyer is using funds other than proceeds of the Financing to make such payments. Parent Buyer shall promptly deliver to the Company Seller true and complete copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing Commitment Papers promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 . (b) Buyer shall require, keep Seller informed on a reasonably prompt basis and in no event reasonable detail of the status of its efforts to arrange the Financing. Without limiting the generality of the foregoing, Buyer shall the reasonable best efforts give Seller prompt written notice of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek any actual or threatened breach, default, termination, cancellation or repudiation by any party to the Equity Financing Commitment Papers and the receipt of any written notice or other written communication from any source other than Financing Source with respect to any breach, default, termination, cancellation or repudiation by any party to the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding LetterCommitment Papers, or (ii) pay the occurrence of an event or development that could reasonably be expected to adversely affect the ability of Buyer to obtain all or any material fees portion of the Financing on the Closing Date to the extent necessary to fund the Closing Cash Consideration. As soon as reasonably practicable after Seller delivers to Buyer a written request, ▇▇▇▇▇ shall provide any information reasonably requested by Seller relating to any circumstance referred to in excess of those contemplated by the Equity Funding Letter or immediately preceding sentence. If the Debt Commitment Letter Financing becomes unavailable on the terms and conditions (including any applicable market “flex” provisions contained thereinprovisions) contemplated by the Commitment Papers (other than solely as a result of Seller’s material breach of any covenant in this Section 5.22)., Buyer shall (i) use its reasonable best efforts to arrange and obtain, in replacement thereof alternative financing (the “Alternative Financing”) in an amount, when combined with cash on hand of Buyer or otherwise available to Buyer through its existing credit facilities, sufficient to consummate the Transaction with (a) terms (including market “flex” provisions) (taken as a whole) not materially less favorable to Buyer (or its Affiliates) than the terms set forth in the Commitment Papers, and (b) conditions (taken as a whole) not less favorable to Buyer (or its Affiliates) than the conditions set forth in the Commitment Papers and (ii) promptly notify Seller of such unavailability and the reason

Appears in 1 contract

Sources: Asset Purchase Agreement (Unisys Corp)

Financing. (a) Each Subject to the terms and conditions of this Agreement, each of Parent and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things reasonably necessary, proper or advisable to consummate arrange and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only conditions described in the Financing Agreements, including: (i) maintaining in effect the Financing Agreements; (ii) satisfying on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Agreements that are within its control, including without limitation paying when due all commitment fees and other fees arising under the Financing Agreements as and when they become due and payable thereunder; (iii) consummating the financing contemplated by the Financing Agreements (including causing the Fund Provider to fund the Debt Financing at the Effective Time) at or prior to the Closing (and in any event prior to the Outside Date); and (iv) fully enforcing the parties’ obligations (and the rights of Parent and Merger Sub) under the Financing Agreements. In the event any portion of the Debt Financing becomes unavailable on the terms and conditions contemplated in the Financing Agreements, Parent and Merger Sub shall (x) promptly notify the Company and (y) use their respective reasonable best efforts to amend or modify any of the Financing Agreements, and/or arrange and obtain as promptly as practicable following the occurrence of such event, alternative financing from alternative sources in an amount sufficient to consummate the transactions contemplated by this Agreement, including the market “flex” provisions) Merger, with terms and conditions that are no less favorable from the standpoint of the Company in any material respect than those the terms and conditions set forth in the Debt Commitment Letter Financing Agreement as in effect on the date of this Agreement (or on other terms the “Alternative Financing”); provided, that, with respect notwithstanding anything to conditionalitythe contrary in this Section 6.3 or in any other provision of this Agreement, are not less favorable to in no event shall Parent or Merger Sub than be required by the terms and conditions of the Financing Agreements or, if applicable, the Alternative Financing Agreements to amend or waive any of the terms or conditions hereof. Parent shall deliver to the Company true and complete copies of all Contracts or other arrangements pursuant to which any alternative sources shall have committed to provide the Alternative Financing (including market the “flex” provisionsAlternative Financing Agreements”) set forth as promptly as practicable after execution. (b) To the extent the Alternative Financing has been arranged, and subject to the terms and conditions of this Agreement, each of Parent and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions and do, or cause to be done, all things reasonably necessary, proper or advisable to: (i) maintain in effect the Debt Commitment Letter), Alternative Financing Agreements; (iiiii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Alternative Financing Letters Agreements that are within their control, including without limitation paying when due all commitment fees and other fees arising under the definitive agreements related thereto Alternative Financing Agreements as and when they become due and payable thereunder; (including by iii) consummating the Equity financing contemplated by the Alternative Financing Agreements at or prior to the Closing on (and in any event prior to the Outside Date); and (iv) fully enforcing the parties’ obligations (and the rights of Parent and Merger Sub) under the Alternative Financing Agreements. (c) Subject to the terms and subject to the conditions set forth in the Equity Funding Letter) (orof this Agreement, if necessary or deemed advisable by Parent, seek the waiver each of conditions applicable to Parent and Merger Sub contained shall not (in such Debt Commitment Letter any case whether by action or such definitive agreements related thereto), (ivinaction) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendmenttermination, supplement release, amendment or modification to be made to, or grant any waiver of, any provision under the Financing Agreements or, if applicable, the Alternative Financing Agreements without the prior written consent of the Company (or, if in existence, the Special Committee). Parent shall promptly (and in any event within one (1) Business Day) notify the Company of (i) the expiration or termination (or attempted or purported termination, whether or not valid) of any provision underFinancing Agreements, (ii) any breach of any material provisions of any of the Financing Letters Agreements, by any party thereto or (iii) any refusal by the definitive agreements relating parties to the Financing if such terminationAgreements, amendmentto provide, supplement, modification or waiver would (A) reduce any stated intent by the aggregate amount of any portion of parties to the Financing (including Agreements to refuse to provide, or any expression of concern or reservation by increasing the amount of fees to be paid or original issue discount as compared parties to the fees and original issue discount Financing Agreements regarding their obligation and/or ability to provide, the full financing contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the FinancingAgreements. Parent shall promptly deliver to keep the Company copies informed on a reasonably current basis of the status of Parent’s efforts to arrange any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Alternative Financing.

Appears in 1 contract

Sources: Merger Agreement (Vimicro International CORP)

Financing. (a) Each of Parent and Merger Sub Buyer shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, advisable or proper or advisable to arrange, obtain and consummate and obtain the Financing contemplated by the Commitment Letter on or prior to the Closing Date on the terms and subject only conditions (including, to the extent applicable, the “flex” provisions) described in the Commitment Letter and any related Fee Letter (or on other terms that, with respect to conditionality, are not less favorable to Buyer than the terms and conditions (including the market any “flex” provisions) set forth in the Commitment Letter, and, with respect to amount, are in an amount not below the Acquisition Financing LettersAmount (“Acceptable Financing Terms”)), including by: (i) maintaining in effect and enforcing its rights under the Commitment Letter and any Definitive Debt Financing Agreements, (ii) using reasonable best efforts to satisfy on a timely basis (itaking into account the anticipated timing of the Marketing Period) maintain in effect and comply with all conditions to the funding of the Financing Lettersset forth in the Commitment Letter and the Definitive Debt Financing Agreements that are within its control (or, if deemed advisable by Buyer, seeking the waiver of conditions applicable to Buyer contained in the Commitment Letters and such Definitive Debt Financing Agreements) and (iiiii) using reasonable best efforts to negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent necessary or advisable to be reasonably likely to be necessary in connection with ensure that the funding of thereof (if required to fund the Debt FinancingAcquisition Financing Amount) will occur on the Closing Date) with respect to the Financing on Acceptable Financing Terms (the “Definitive Debt Financing on the terms and subject only to the conditions Agreements”). (including the market “flex” provisionsb) set forth in the Debt Commitment Letter Buyer shall (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (ivi) upon the satisfaction or waiver written request of the conditions Seller, keep the Seller informed in reasonable detail of the status of its efforts to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to arrange the Financing and (viii) otherwise comply give the Seller prompt notice of (x) any material breach or default, by any party to the Commitment Letter, of which ▇▇▇▇▇ becomes aware or (y) the receipt of any written notice from any Financing provider with Parentrespect to any breach of any of Buyer’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating Commitment Letter. (c) Prior to the Financing. ParentClosing, Merger Sub and the Guarantors Buyer shall not, without the prior written consent of the Company, not agree to or permit any termination termination, amendment, replacement, supplement or other modification of, or waive any of its rights under, the Commitment Letter or Definitive Debt Financing Agreements without the Seller’s prior written consent, such consent not to be unreasonably withheld or delayed; provided that Buyer may, without the Seller’s prior written consent, (i) enter into any amendment, supplement or other modification to be made to, or grant any waiver of any provision under, of the Commitment Letter or Definitive Debt Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would Agreements that does not (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate Commitment Letter to an amount of the Financing would be below the amount required to pay the Required Acquisition Financing Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) and adversely impact affect the ability of Parent Buyer to enforce its rights against other parties to the Commitment Letter or Merger Subthe Definitive Debt Financing Agreements as so amended, supplemented, or otherwise modified, relative to the ability of Buyer, as applicable, to enforce its rights against the other parties to the Financing Letters Commitment Letter as in effect on the date hereof or (C) impose new or additional conditions or expand any of the definitive agreements with respect conditions to the availability of the Financing, make the timely funding of the Financing or satisfaction of the conditions to obtaining the Financing on or prior to the Closing Date less likely to occur or otherwise prevent, materially delay or impede the consummation of the Share Purchase (the limitations set forth in these clauses (A), (B) and (C), the “Prohibited Financing Amendments”), and (ii) amend, replace, supplement or otherwise modify the Commitment Letter to add lenders, lead arrangers, book runners, syndication agents or similar entities that had not executed the Commitment Letter as of the date of this Agreement. Parent Upon any such amendment, supplement or modification, the terms “Commitment Letter” and “Definitive Debt Financing Agreement” shall mean the Commitment Letter or Definitive Debt Financing Agreement, as applicable, as so amended, supplemented or modified. Buyer shall promptly deliver to the Company copies of any such amendment, modification, supplement, consent supplement or waiver to or under any Financing Letter or other modification of the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Commitment Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).

Appears in 1 contract

Sources: Purchase Agreement (Sealed Air Corp/De)

Financing. (a) Each of Parent and Merger Sub The Purchaser shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange, consummate and obtain the Financing as promptly as practicable after the date of this Agreement (taking into account the Marketing Period) and in any event at or prior to the Closing on the applicable terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Commitment Letters, including using its reasonable best efforts to (i) maintain in effect and comply with its obligations under the Financing LettersCommitment Letters until the transactions contemplated hereby have been consummated, (ii) satisfy on a timely basis all conditions applicable to the Purchaser in the Commitment Letters and the definitive agreements for the Debt Financing to the fullest extent that they are within its control in obtaining the Debt Financing set forth therein, (iii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in contemplated by the Debt Commitment Letter (including those terms in the fee letters associated with such Debt Commitment Letter) or on such other terms thatacceptable to the Purchaser and the Debt Financing Sources that are (A) no less favorable, in the aggregate, to the Purchaser and (B) no less favorable with respect to conditionality, are not less favorable (iv) consummate the Financing at or prior to Parent or Merger Sub than the Closing (including by instructing the parties to the Commitment Letters to provide Financing, on the terms and subject to the satisfaction of the conditions set forth therein) and (including market “flex” provisionsv) subject to the satisfaction or waiver of the conditions set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in enforce its rights under the Financing Commitment Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior using reasonable best efforts to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund providing the Financing to fund the Financing at contemplated by the Closing, Commitment Letters). The Purchaser shall not (vI) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing terms of the Commitment Letters or the any definitive agreements relating agreement related to the Financing if or waive any provision or remedy thereunder and/or (II) except as permitted under Section 5.14(b), substitute other debt financing for all or any portion of the Debt Financing from the same or Alternative Financing (as defined below) sources, in each case, without the Parent’s prior written consent (not to be unreasonably withheld, conditioned or delayed) except, solely in the case of the Debt Commitment Letter, to the extent such termination, amendment, supplement, modification modification, waiver or waiver substitution would not, or would not reasonably be expected to, (Av) reduce the aggregate amount of any portion of the Financing (including by increasing or the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountcash proceeds available therefrom), (Bw) impose new or additional conditions precedent to the availability any of the Financing or otherwise expandadversely amend, amend modify or modify waiver any of the existing conditions precedent to thereto, (x) delay (taking into account the Financing proviso in a manner that would reasonably be expected to materially delay Section 7.1) or prevent the Closing, (y) make the funding of the Financing (or satisfaction of the conditions to obtaining the Financing) on less likely to occur or otherwise impair the Closing Date availability of any Financing or (C) adversely impact the ability of Parent or Merger Sub, as applicable, the Purchaser to enforce its rights against the other parties to the Financing Commitment Letters or (z) adversely impact (A) the ability of the Purchaser to consummate the transactions contemplated by this Agreement to be consummated at the Closing or (B) the likelihood of the consummation of such transactions to be consummated at the Closing (in the case of each of (y) and (z) above, as compared to the Commitment Letters as in effect on the date of this Agreement). For the avoidance of doubt, any amendment, supplement, modification or substitution of the Debt Commitment Letter as in effect on the date hereof may change terms to implement the market flex provisions in the related fee letters (which would not adversely affect the amount or availability of the Debt Financing or Alternative Financing or include any additional conditions to funding). Promptly and in any event within three (3) Business Days, upon any amendment, modification or supplement of the Debt Commitment Letter in accordance with this Section 5.14(a), the Purchaser shall provide a copy thereof to the Parent, and for purposes of this Agreement, references to “Debt Financing” and “Financing” shall include the financing contemplated by the Debt Commitment Letter as permitted to be amended, modified or supplemented by this Section 5.14(a) and references to “Debt Commitment Letter” and “Commitment Letters” shall include such documents as permitted to be amended, modified, supplemented or replaced by this Section 5.14(a). (b) If, for any reason, all or any portion of the Debt Financing becomes unavailable on the terms and conditions, or from the sources, contemplated by the Debt Commitment Letter, the Purchaser shall promptly notify the Parent and use its reasonable best efforts to arrange and obtain, and to negotiate and enter into definitive agreements with respect to, alternative debt financing from alternative sources on terms and conditions (including any flex provisions) that are no less favorable, in the aggregate, to the Financing. Parent shall Purchaser than those set forth in the Debt Commitment Letter (and any related fee letter) in an amount sufficient to consummate the transactions contemplated by this Agreement as promptly deliver as practicable following the occurrence of such event (and in any event on or prior to the Company copies date on which the Closing should have occurred pursuant to Section 7.1). If any alternative debt financing from alternative sources (“Alternative Financing”) is obtained in accordance with this Section 5.14(b), the Purchaser shall notify the Parent thereof, and for purposes of any amendmentthis Agreement, modificationreferences to “Debt Financing,” “Financing,” “Debt Commitment Letter” and “Commitment Letters” shall include such Alternative Financing, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofas applicable. Notwithstanding anything herein to the contrary in this Agreementcontrary, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub the Purchaser be deemed or construed to requirerequire the Purchaser to, either Parent or Merger Sub to and the Purchaser shall not be required to, (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter Debt Commitment Letters as in effect on the date hereof or (ii) agree to any term that is outside of, or less favorable in any material respect than, when taken as a whole, any applicable provision of the Debt Commitment Letter Letters as in effect on the date hereof or the fee letter (including including, in the case of clause (i) or (ii) of this Section 5.14(b), any market “flex” provisions contained flex provision therein) as in effect on the date hereof (in the reasonable judgment of the Purchaser); provided further that in no event shall the Purchaser be required (1) to amend or waive any of the terms or conditions hereof or (2) to consummate the Closing any earlier than as required by Section 7.1.

Appears in 1 contract

Sources: Purchase and Sale Agreement (Verisk Analytics, Inc.)

Financing. (a) Each of Parent and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper necessary or advisable to consummate (i) satisfy on a timely basis all material terms, conditions, representations and obtain the Financing on the terms and subject only warranties applicable to the conditions (including the market “flex” provisions) Parent set forth in the Financing LettersCommitment Letters that are within its control, including using reasonable best efforts to (iii) maintain in effect and comply with the Financing Commitment Letters, (iiiii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto on the terms and subject only to conditions contemplated by the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (Letters or on other terms that, with respect acceptable to conditionality, are the Company not less favorable to Parent or Merger Sub than the terms and conditions not in violation of this Section 5.14 and (including market “flex” provisionsiv) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior subject to the Closing on the terms and subject to satisfaction of the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent Article VI and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate closing set forth in the Offer and the MergerCommitment Letters, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing Financings at the Closing; provided, however, that if funds in the amounts and on the terms set forth in the Commitment Letters become unavailable to Parent on the terms and conditions set forth therein, Parent shall use its commercially reasonable efforts to obtain alternative debt financing (vthe “Alternative Financing”) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing extent available in amounts and (vi) otherwise comply with Parent’s on terms and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce conditions no less favorable in the aggregate amount of any portion of to Parent than as set forth in the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such Commitment Letters; provided, further, that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts breach of this covenant expand the Company’s rights in connection with the termination rights set forth in Section 7.1. (b) The Company agrees to provide, and will cause its Subsidiaries and its and their respective officers and employees to provide, all necessary cooperation reasonably requested by Parent or Merger Sub be deemed or construed to requireAcquisition in connection with the arrangement of, either Parent or Merger Sub to and the negotiation of agreements with respect to, the Financings (including any Alternative Financings), including (i) seek preparing and furnishing to Parent and the Equity Financing from any source other than entities that have committed to provide or otherwise entered into agreements in connection with the counterparties toDebt Financing, or in any amount in excess of that contemplated by, including the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or parties to the Debt Commitment Letter and any joinder agreements or credit agreements relating thereto (collectively, the “Financing Sources”), as promptly as practicable all information as may be reasonably requested by Parent to assist in the preparation of the definitive documentation evidencing the Financings, (ii) by making available to Parent, Acquisition and the Financing Sources and their respective representatives, personnel (including for participation at organizational meetings, drafting sessions for offering memoranda and in presentations), documents and information (including financial statements) of the Company and its Subsidiaries as may reasonably be requested by Parent, Acquisition or the Financing Sources, (iii) if applicable, by cooperating with the Financing Sources in achieving a timely offering and/or syndication of the Financings (including any market Alternative Financings) reasonably satisfactory to Parent and Acquisition and such Financing Sources, including participation in management presentation sessions, “flexroad shows” provisions contained thereinand sessions with rating agencies, (iv) by using reasonable best efforts to cause the Company’s independent accountants to provide any reports, consents and comfort letters reasonably requested in connection with the Financings (including any Alternative Financings), (v) agreeing to enter into such agreements, including underwriting or placement agreements, pledge and security documents and other definitive financing documents, and to use reasonable best efforts to deliver such officer’s certificates, as are customary in financings of such type, (vi) agreeing to pledge, grant security interests in, and otherwise grant Liens on, the Company’s assets pursuant to such agreements as may be reasonably requested by the Financing Sources, (vii) providing assistance in obtaining any consents of third parties in connection with the Financings (including any Alternative Financings), (viii) assisting Parent in obtaining any legal opinions and solvency opinions to be delivered in connection with the Financings (including any Alternative Financings), (ix) assisting Parent in securing the cooperation of the independent accountants of the Company and its Subsidiaries, including with respect to the delivery of accountants’ comfort letters, (x) providing assistance in extinguishing existing Indebtedness of the Company and its Subsidiaries and releasing Liens securing such Indebtedness, in each case to take effect on or prior to the Effective Time, (xi) reasonably cooperating with the marketing and due diligence of Parent and the Financing Sources and their respective Related Parties in relation to the Financings and (xii) providing the financial information necessary for the satisfaction of the obligations and conditions set forth in the definitive documents with respect to the Financings (including any Alternative Financings) as promptly as practicable and in any event within the time periods required thereby. In addition, in conjunction with the obtaining of any of the Financings (including any Alternative Financings), the Company agrees, at the reasonable request of Parent, to call for prepayment or redemption, or to repay, redeem and/or renegotiate, as the case may be, any then existing Indebtedness of the Company and its Subsidiaries identified by Parent; provided, that such call or any agreement to repay, redeem, exercise and/or renegotiate may be rescinded if the Merger is not completed on or prior to the effective date of any such prepayment, repayment, redemption, exercise and/or renegotiation, as the case may be; provided, further, that the Company and its Subsidiaries shall not be required to make any non-cancelable payments in connection with such actions. Nothing in this Section 5.14 shall require the Company or any of its Subsidiaries to provide any assistance with respect to the Financings to the extent it would interfere unreasonably with the ongoing business or operations of the Company or any of its Subsidiaries. Parent and Acquisition hereby agree and acknowledge that the obtaining of the Financings (including any Alternative Financings) is not a condition of Parent and Acquisition to the consummation of the transactions contemplated by this Agreement but is subject to Section 5.3(c), Section 5.3(d) and Section 8.2. Parent shall indemnify and hold harmless the Company and its Subsidiaries, directors, officers, employees, representatives and advisors from and against any and all reasonable and documented losses, damages, claims, out-of-pocket costs or expenses suffered or incurred by any of them in connection with any action taken by them at the request of Parent or Acquisition pursuant to this Section 5.14 or in connection with the arrangement of the Financings (including any Alternative Financings) and any information utilized in connection therewith, except to the extent that such losses, damages, claims, costs or expenses, directly or indirectly, resulted from or arose out of the bad faith, gross negligence or willful misconduct of the Company or any of its Subsidiaries or where such liability relates to any information provided by the Company or any of its Subsidiaries in connection with any such Financing (or any Alternative Financing). The Company consents to the reasonable use of the Company’s and its Subsidiaries’ logos in connection with the arrangement of the Financings in a manner customary for such financing transactions.

Appears in 1 contract

Sources: Merger Agreement (Omni Energy Services Corp)

Financing. (a) Each of Parent Parent, Satellite Services and Merger Sub shall use use, and shall cause its Affiliates to use, commercially reasonable best efforts to 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 arrange the Financing on the terms and subject only conditions described in the Financing Letters pursuant to which the conditions parties thereto have committed to provide the financing (including the market “flex” provisions) set forth such financing, or any financing in lieu thereof as contemplated by the Financing Letters, the “Financing Commitment”), including using commercially reasonable best efforts to (i) to maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, Commitment in accordance with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions thereof, (ii) to negotiate and enter into the definitive agreements with respect thereto on the terms and conditions contained in the Financing Commitment (or on other terms acceptable to Parent, provided such terms do not contain any conditions to funding on the Closing Date that are not set forth in the Equity Funding LetterFinancing Commitment and would not otherwise reasonably be expected to impair or delay the consummation of the Financing), (iii) to satisfy (or, if necessary or deemed advisable by Parent, seek cause its Affiliates to satisfy) on a timely basis all conditions to obtaining the waiver of conditions applicable to Parent and Merger Sub contained Financing set forth in such Debt Commitment Letter or such definitive agreements related thereto)the Financing Commitment, (iv) upon to exercise its option to extend the satisfaction Initial Date (as defined in the Financing Commitment) and to satisfy the conditions required to extend the Initial Date only to the extent that the Financing has not been obtained and (v) to consummate the Financing contemplated by the Financing Commitment at or prior to the Closing. In the event that any portion of the Financing becomes unavailable (including by expiration in accordance with its terms) on the terms and conditions set forth in the Financing Commitment, Parent shall promptly notify the Company, and Parent and Satellite Services shall use their reasonable best efforts to obtain, as promptly as practicable following the occurrence of such event, any such portion from alternative sources (“Alternative Financing”) on terms that will still enable Parent, Satellite Services and Merger Sub to consummate the transactions contemplated by this Agreement and that are approved by the Company (such approval not to be unreasonably withheld, conditioned or delayed). Parent and Satellite Services shall deliver to the Company true and complete copies of all agreements (including any fee letters and engagement letters, provided that amounts in such letters may be redacted unless such redactions would adversely affect the amount, conditionality, enforceability or availability of the Financing) pursuant to which any such alternative source shall have committed to provide Parent, Satellite Services or the Surviving Corporation with any portion of the Financing. None of Parent, Satellite Services or Merger Sub shall agree, without the Company’s prior written consent, to or permit any amendment, supplement or other modification of, or waive any of its rights under, the Financing Commitment if such amendment, supplement, modification or waiver (x) reduces the aggregate amount of the Financing or (y) imposes new or additional conditions or otherwise expands, amends or modifies any of the conditions to the receipt of the Financing in a manner that would reasonably be expected to (I) delay or prevent the Closing Date, (II) make the funding of the Financing (or Table of Contents satisfaction of the conditions to obtaining the Financing) less likely to occur or (III) adversely impact the ability of each of Parent’s , Satellite Services and Merger Sub’s obligations Sub to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating against other parties to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and Commitment or the definitive agreements relating to the Financing. Parent, Merger Sub and Any Alternative Financing shall (X) be in an amount sufficient to consummate the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing transactions contemplated by this Agreement (including by increasing paying the amount of fees to be paid or original issue discount as compared to the Merger Consideration, and all fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amountexpenses) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, and (BY) not impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the receipt of the Financing in a manner that would reasonably be expected to materially (1) delay or prevent the Closing Date or (2) make the funding of the Financing (or satisfaction of the conditions to obtaining the Financing) less likely to occur; provided that neither Parent nor Merger Sub shall be required to arrange Alternate Financing on economic terms which are less favorable and other terms and conditions (other than conditions to funding) which are materially less favorable, in the aggregate, to Parent and Merger Sub than those included in the Financing Commitment. Upon obtaining any commitment for any Alternative Financing, such Alternative Financing shall be deemed to be the Financing Commitment for purposes of this Agreement. Parent shall keep the Company informed on a current basis of the status of its efforts to obtain the Financing, provide the Company copies of all documents related to the Financing and give the Company prompt notice of any material breach by any party to the Financing Commitment of which Parent becomes aware or any termination of the Financing Commitment. Without limiting the foregoing, Parent agrees to notify the Company promptly, and in any event within two Business Days, if at any time (A) any of the Financing Letters shall expire or be terminated for any reason, (B) any financing source that is a party to any of the Financing Letters notifies Parent, Satellite Services or Merger Sub that such source no longer intends to provide financing on the Closing Date terms set forth therein or (C) adversely impact to the ability knowledge of Parent or Merger Sub(without a requirement of due inquiry), as applicable, any party to enforce its rights against other parties to any of the Financing Letters is or is alleged to be in breach or default thereafter. In the event that the Stockholders’ Written Consents are not delivered to the Company in accordance with Section 5.3(b), the parties shall use their respective reasonable best efforts to market the Financing concurrently with the solicitation of proxies in connection with the Company Stockholders Meeting, subject to the concurrence of the underwriters and lead arrangers that doing so will not adversely affect the marketing of the Financing, with the objective of completing the Merger as promptly as practicable after the date of the Company Stockholders Meeting. (b) The Company shall provide, shall cause its Subsidiaries to provide and shall use its commercially reasonable efforts to cause its and their representatives to provide such reasonable cooperation in connection with the arrangement of the Financing as may be reasonably requested by Parent, including (i) participation in a customary and reasonable number of meetings, drafting sessions, presentations, road shows and due diligence and sessions with the financing sources, investors and rating agencies, (ii) furnishing Parent and the financing sources as promptly as practicable with financial and other pertinent information regarding the Company and its Subsidiaries as may be reasonably requested by Parent to consummate the Financing, including all financial statements and financial and other data of the type required by Regulation S-X and Regulation S-K under the Securities Act for registered offerings of debt securities (including any financial statements required by Regulation S-X Rule 3-10 but not any financial statements required by Rule 3-16), and of the type and form customarily included in offering documents used in private placements under Rule 144A of the Securities Act and other documents required to satisfy any customary negative assurance comfort from independent accountants, to consummate the Financing at the time or times the Financing is to be consummated, including all of the financial information related to the Company and its Subsidiaries necessary to satisfy the conditions set forth in the Financing Commitment, provided that throughout the Marketing Period, none of the information provided by the Company in connection herewith to be included in the offering documents shall contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading (information and data required to be delivered pursuant to this clause (ii) being referred to as the “Required Financial Information”), (iii) assisting Parent and its financing sources in the preparation of (A) any offering documents, private placement memoranda, bank information memoranda, prospectuses and other informational and marketing materials and documents for any portion of the Financing, (B) any legal documents to be executed by the Company and any of its Subsidiaries (subject to receipt of all requisite funds from the Parent and its financing sources) relating to the satisfaction and discharge of the HNS Senior Notes to be delivered at the Effective Time and (C) materials for rating agency presentations, (iv) reasonably cooperating with the marketing efforts of Parent and the financing sources for any Table of Contents portion of the Financing, (v) executing and delivering any necessary pledge and security documents and otherwise reasonably facilitating the granting of a security interest (and perfection thereof) in collateral, guarantees, mortgages, other definitive agreements financing documents or other certificates or documents as may reasonably be requested by Parent; provided, that no such document or obligation of the Company shall be effective prior to the Effective Time, (vi) obtaining customary authorization letters with respect to the Financing. Parent shall promptly deliver to the Company copies bank information memoranda and consents of accountants for use of their reports in any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements materials relating to the Financing promptly upon execution thereof. Notwithstanding anything Financing, (vii) using commercially reasonable efforts to obtain accountants’ comfort letters, surveys and title insurance as reasonably requested by Parent, (viii) subject to the contrary occurrence of the Closing, taking all corporate actions, necessary to permit the consummation of the Financing and (ix) using commercially reasonable efforts to prepare financial statements of any FCC License Subsidiary (as defined in this Agreement, nothing contained the Financing Letters as in this Section 5.04 shall require, and effect as of the date hereof) of the Company that would be required by Parent to be included under Rule 3-16 under Regulation S-X in no event shall the reasonable best efforts a registered offering of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those secured debt securities contemplated by the Equity Funding Letter Financing (it being understood that the financial statements contemplated by this clause (ix) shall not be part of the Required Financial Information); provided, that (I) neither the Company nor any of its Subsidiaries shall be required to pay any commitment or other fee, provide any security, reimburse any expense, give any indemnity, prepay any Company indebtedness or incur any other liability in connection with the Debt Commitment Letter Financing or any Alternative Financing prior to the Effective Time, (II) such requested cooperation does not unreasonably interfere with the ongoing operations of the Company and its Subsidiaries, (III) all non-public or otherwise confidential information regarding the Company obtained by Parent, Satellite Services and Merger Sub or their representatives pursuant to this Section 5.14(b) be kept confidential in accordance with the Confidentiality Agreement, except that such information may be disclosed to potential syndicate members during syndication, other potential Lenders or potential participants, subject to customary confidentiality undertakings by such potential syndicate members, other potential Lenders or potential participants and (IV) the Company shall be permitted a reasonable period to comment on any documents or other information circulated to potential financing sources. Parent (x) shall, promptly upon request by the Company, reimburse the Company for all reasonable out-of-pocket costs (including reasonable attorneys’ fees) incurred by the Company or any market “flex” provisions contained therein)of its Subsidiaries in connection with such cooperation, (y) 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 prior to the Effective Time under, the Financing or any Alternative Financing and (z) shall indemnify and hold harmless the Company, its Subsidiaries and their respective representatives from and against any and all losses, damages, claims, costs or expenses suffered or incurred by them in connection with the arrangement of the Financing and any information utilized in connection therewith. (c) Parent and Merger Sub hereby acknowledge and agree that receipt of the Financing or any Alternative Financing does not constitute a condition to the consummation of the transactions contemplated by this Agreement.

Appears in 1 contract

Sources: Merger Agreement (Hughes Network Systems, LLC)

Financing. (a) Each of Parent and Merger Sub shall use its reasonable best efforts to takeobtain, or cause to be obtained, the proceeds of the Financing on the terms and conditions described in the Commitment Papers (including, as necessary, the “flex” provisions contained in any Fee Letter), including using its reasonable best efforts with respect to (i) complying with and maintaining in effect the Commitment Papers, including by complying with the “flex” provisions contained in any Fee Letter in accordance with the terms thereof and using reasonable best efforts to ensure the accuracy of all representations and warranties and the compliance with all covenants and agreements of Parent and its Subsidiaries under the Commitment Papers, (ii) negotiating, executing and delivering definitive agreements (and thereafter and until the Effective Time complying with and maintaining in effect such definitive agreements) with respect to the Debt Financing (the “Definitive Agreements”) (draft and executed copies of definitive credit agreements, indentures and/or purchase agreements and material ancillary documents shall be provided to the Company as promptly as practicable following reasonable request therefor) consistent with the terms and conditions contained in the Debt Commitment Letter (including, as necessary, the “flex” provisions contained in any Fee Letter) or, if available, on other terms that (A) are acceptable to Parent in its sole discretion, (B) would not reasonably be expected to delay (taking into account the expected timing of the Marketing Period) or adversely affect the ability of Parent to consummate the transactions contemplated hereby and (C) would otherwise be permitted by Section 5.13(b)(ii), and (iii) taking into account the expected timing of the Marketing Period, satisfying on a timely basis all conditions to obtaining the Financing that are within the control of Parent and its Subsidiaries and by paying when due any fees or deposits required by the Commitment Papers or any Fee Letter. If all of the respective conditions contained in any of the Commitment Papers have been satisfied (or upon funding will be satisfied) or waived, Parent shall use its reasonable best efforts to timely (A) cause the Financing Sources under the Debt Commitment Letter to fully fund the Financing provided for thereunder and (B) fully enforce its rights (including through litigation) under such Commitment Papers (and in the case of the Debt Financing under any Definitive Agreements) in the event of breach or threatened breach by the Financing Sources, including by seeking specific performance of the parties’ obligations thereunder, in each case, to the extent required to consummate the transactions contemplated by this Agreement at the Closing. Without limiting this Section 5.13(a), Parent acknowledges and agrees that it shall be fully responsible for obtaining the Common Equity Financing and shall take (or cause to be taken) all actions, all actions and to do, do (or cause to be done, ) all things necessary, proper or advisable to obtain and consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Common Equity Financing at or prior to the Closing Closing, including (1) satisfying on the terms and subject a timely basis all conditions to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver obligations of the conditions to Parent’s and Merger Sub’s obligations Financing Sources under the Common Equity Purchase Agreements to consummate the Offer Common Equity Financing that are within the control of Parent and its Subsidiaries and (2) in the Mergerevent any net proceeds are received by Parent under the Common Equity Purchase Agreements in advance of the Closing, consummate holding and maintaining such funds for the Financing and cause purpose of consummating the lenders and the other Persons committing to fund the Financing to fund the Financing transactions contemplated by this Agreement at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).

Appears in 1 contract

Sources: Merger Agreement (Emc Corp)

Financing. (a) Each of Parent Buyer shall, and Merger Sub shall cause its Subsidiaries and its and their respective Representatives to, use its and their reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the Debt Financing on the terms and subject only to the conditions (including the “market “flex” provisionsterms contained in the Debt Commitment Letter as in effect on the date hereof) expressly set forth in the Financing LettersDebt Commitment Letter, including using reasonable best efforts to (i) maintain in effect and comply the Debt Commitment Letter in accordance with the terms and subject to the conditions thereof until (1) the transactions contemplated by this Agreement are consummated, (2) this Agreement is terminated in accordance with its terms or (3) cash proceeds of the Debt Financing Letterscontemplated thereby have been received by Buyer and are readily available to consummate the Closing (subject only to the satisfaction of conditions that are no more onerous than the conditions to funding under the Debt Commitment Letter or not subject to any conditions), (ii) satisfy or obtain a waiver on a timely basis of all conditions applicable to Buyer and its Affiliates set forth in the Debt Commitment Letter that are within its or its Affiliates’ control, (iii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the “market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisionsterms) set forth in the Debt Commitment Letter), (iiiiv) satisfy consummate the Debt Financing on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the date Closing on the terms is required to occur as determined pursuant to Section 1.03 and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the FinancingDebt Commitment Letter. Parent, Merger Sub and the Guarantors shall not, without Without the prior written consent of the CompanySeller (such consent not to be unreasonably withheld, agree to delayed or conditioned), Buyer shall not permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision or remedy under, or any replacement of the Financing Letters or the definitive agreements relating to the Financing Debt Commitment Letter if such termination, amendment, supplement, replacement, modification or waiver would would: (Ax) reduce (or have the effect of reducing) the aggregate amount of any portion of the Debt Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date in respect of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amountFinancing) such that the aggregate amount Debt Financing, cash on hand of the Financing Buyer and its Subsidiaries, and other available sources that would be below available on the amount required Closing Date would not be sufficient to pay the Required Amount, ; (By) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Debt Financing or impose any new or additional conditions or contingencies to the Debt Commitment Letter, in each case, in a manner that would reasonably be expected to (1) materially impair, delay or prevent the Closing or (2) make materially less likely to occur the funding of the Debt Financing (or satisfaction of the conditions to the Debt Financing) on when the Closing Date is scheduled to occur pursuant to Section 1.03; or (Cz) adversely impact affect the ability of Parent or Merger Sub, as applicable, Buyer to enforce its rights in any material respect against the other parties to the Debt Commitment Letter or other agreements relating to the Debt Financing Letters as provided by this Section 5.22. Notwithstanding the foregoing, any amendment, supplement or modification to effectuate any “market flex” terms contained in the definitive agreements Debt Commitment Letter provided as of the date hereof or to add any additional agents or other financial institutions thereto as provided for therein (provided that, except as provided for in the Debt Commitment Letter with respect to Specified Permitted Lenders (as defined in the Debt Commitment Letter), no such amendment, supplement or modification shall relieve the original Committed Lenders of their obligations under the Debt Commitment Letter prior to the funding of the Debt Financing) shall be permitted and shall not require written consent of Seller. Parent Buyer shall promptly deliver to the Company Seller copies of any amendment, modification, supplement, consent supplement or waiver to or under under, or any replacement of, any Debt Commitment Letter. (b) Buyer shall, upon Seller’s reasonable request, keep Seller informed on a reasonably current basis and in reasonable detail with respect to all material developments with respect to the status of its efforts to arrange, obtain and complete the Debt Financing Letter or the (including providing Seller with copies of all executed definitive agreements related to the Debt Financing). (c) Upon written request of Seller, Buyer shall keep Seller apprised promptly (and in any event within two (2) Business Days) of material developments relating to the Debt Financing. Buyer shall give Seller prompt written notice (and in any event within forty-eight (48) hours) of: (i) any termination of the Debt Commitment Letter or any repudiation of any material provisions of the Debt Commitment Letter; (ii) any actual or threatened material breach or default of any provisions of the Debt Commitment Letter, in each case, by any party thereto, of which Buyer becomes aware, (iii) the occurrence of any event or development that would reasonably be expected to adversely impact the ability of Buyer to obtain all or any portion of the Debt Financing promptly upon execution thereof. Notwithstanding anything contemplated by the Debt Commitment Letter on the terms and conditions, in the manner or from the sources contemplated by the Debt Commitment Letter and required to pay the Required Amount and (iv) any material dispute or disagreement between or among any parties to the contrary Debt Commitment Letter or any definitive agreements related to the Debt Financing of which Buyer becomes aware related to the Debt Financing, in each case, with respect to the obligation to fund any of the Debt Financing or the amount of the Debt Financing to be funded at the Closing. As soon as reasonably practicable, but in any event within two (2) Business Days of the date that Seller delivers to Buyer a written request, Buyer shall provide any information reasonably requested by Seller relating to any circumstance referred to in clause (i), (ii), (iii) or (iv) of the immediately preceding sentence. If any portion of the Debt Financing becomes unavailable on the terms and conditions (including any “market flex” terms contained in the Debt Commitment Letter as in effect on the date hereof) contemplated in the Debt Commitment Letter or from the Debt Financing Sources contemplated in the Debt Commitment Letter or any of the Debt Financing (or any definitive financing agreement relating thereto) shall expire or be withdrawn, terminated, repudiated or rescinded, in whole or in part, for any reason (but without limiting the obligations of Buyer in this Section 5.22(c)) (unless such portion of the Debt Financing is not reasonably required to consummate the transactions contemplated by this Agreement when required, including, for the avoidance of doubt, payment of the Required Amount), Buyer shall promptly notify Seller and shall use its reasonable best efforts to (x) arrange and obtain, as promptly as practicable following the occurrence of such event, alternative financing from the same or alternative sources (the “Alternative Financing”) in an amount sufficient to consummate the transactions contemplated by this Agreement, nothing contained including, for the avoidance of doubt, payment of the Required Amount, with terms and conditions not materially less favorable in this Section 5.04 shall require, and the aggregate to Buyer than those set forth in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (or replace any unavailable portion of the Debt Financing) and (y) obtain a debt financing commitment letter (including any market “flex” provisions contained thereinassociated fee letter and/or engagement letter) with respect to such Alternative Financing, true, accurate and complete copies of which shall be promptly provided to Seller upon execution thereof (which fee letter and/or engagement letter may be redacted with respect to any interest rates, fee amounts, pricing caps and other similar economic terms (including flex terms) set forth therein (none of which would adversely affect the conditionality, enforceability, quantum, availability or termination of such Alternative Financing or reduce the aggregate principal amount thereof).). The Alternative Financing (A) shall be

Appears in 1 contract

Sources: Purchase and Sale Agreement (CDW Corp)

Financing. (a) Each of Parent shall, and Merger Sub shall cause its Affiliates to, use reasonable best efforts to take, take (or cause to be taken, ) all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and consummate and obtain the Financing as promptly as practicable after the date of this Agreement on the terms and subject only to the conditions (including the market “flex” provisions) set forth no less favorable in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub aggregate than the terms and conditions described in the Spinco Commitment Letter. Parent shall, and shall cause its Affiliates to, (including market “flex” provisionsi) use reasonable best efforts to comply with and maintain the Spinco Commitment Letter and negotiate and execute definitive agreements with respect thereto, on the terms and conditions contained therein, which terms and conditions shall not expand upon the conditions to Closing or other contingencies to the funding on the closing date of the Financing as set forth in the Debt Spinco Commitment LetterLetter (the “Financing Agreements”) and shall deliver to TDCC a copy thereof as promptly as practicable (and no later than one (1) Business Day after such execution), ; (iiiii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters Spinco Commitment Letter and the definitive agreements related thereto Financing Agreements that are within its control; (including iii) fully enforce its rights under the Spinco Commitment Letter and the Financing Agreements including, at the request of TDCC, by consummating commencing litigation proceedings against the Equity Lenders; and (iv) use reasonable best efforts to draw upon and consummate the Financing at or prior to the Closing Distribution. In the event any funds in the amounts set forth in the Spinco Commitment Letter or the Financing Agreements, or any portion thereof, become unavailable on the terms and conditions contemplated in the Spinco Commitment Letter or the Financing Agreements, or it becomes reasonably likely that such funds may become unavailable on the terms and conditions set forth therein, Parent shall, and shall cause its Affiliates to, use reasonable best efforts to arrange to obtain promptly any such portion from alternative sources, including, subject to Section 7.08(b), on terms that shall not expand the conditions or other contingencies to the funding, from those set forth in the Equity Funding Spinco Commitment Letter, in an amount sufficient, when added to the portion of the Financing that is available, to finance the New Debt and the Additional Debt (the “Alternative Financing”) and to obtain, and, when obtained, to provide promptly to TDCC a copy of, a new financing commitment that provides for financing in an amount that is sufficient, when added to the portion of the Financing that is available, to finance the New Debt and the Additional Debt (orthe “Alternative Spinco Commitment Letter”). For the avoidance of doubt, if necessary the Financing or deemed advisable by Parentthe Alternative Financing, seek the waiver of conditions applicable to Parent as applicable, is available and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the all conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing Closing set forth in Article VIII have been satisfied or waived or will be satisfied or waived at the Closing, (v) enforce its rights Parent shall take all actions necessary to allow Spinco to incur the indebtedness provided under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Alternative Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).66

Appears in 1 contract

Sources: Merger Agreement (Dow Chemical Co /De/)

Financing. (a) Each of Parent and Merger Sub The Purchaser shall use reasonable best efforts to take, take (or cause to be taken, ) all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and consummate and obtain the Financing as soon as reasonably practicable after the date of this Agreement on the terms and subject only conditions described in the Financing Commitments, which actions shall include (i) maintaining the Financing Commitments and negotiating and executing definitive agreements with respect thereto on the terms and conditions contained therein, which terms and conditions shall not expand upon the conditions to Closing or other contingencies to the conditions (including funding on the market “flex” provisions) Closing Date of the Financing as set forth in the Financing LettersCommitments (the “Financing Agreements”), including using reasonable best efforts and delivering to the Seller a copy of such definitive agreements as promptly as practicable (iand no later than one (1) maintain in effect and comply with the Financing Letters, Business Day) after such execution; (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy satisfying on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters Commitments and the definitive agreements related thereto Financing Agreements that are within its control; (iii) fully enforcing its rights under the Financing Commitments and the Financing Agreements, including (at the request of the Seller) by commencing litigation proceedings against the Lenders; and (iv) drawing upon and consummating the Equity Financing at or prior to the Closing Closing. In the event any portion of the Financing becomes unavailable on the terms and conditions contemplated in the Financing Commitments or the Financing Agreements, the Purchaser shall arrange to obtain promptly any such portion from alternative sources, including, subject to Section 5.07(b), on terms less favorable to the conditions Purchaser than those set forth in the Equity Funding LetterFinancing Commitments as in effect on the date of this Agreement (except with respect to conditions or other contingencies to the funding on the Closing Date, none of which shall be expanded from those set forth in the Financing Commitments), in an amount sufficient, when added to the portion of the Financing that is available, to consummate the transactions contemplated by this Agreement (the “Alternative Financing”) and to obtain, and, when obtained, to promptly provide the Seller with a copy of, a new financing commitment that provides for financing in an amount that is sufficient, when added to the portion of the Financing that is available, to consummate the transactions contemplated by this Agreement (orthe “Alternative Financing Commitment”). (b) To the extent applicable, if necessary the Purchaser shall take (or deemed cause to be taken) all actions necessary, proper or advisable by Parentto arrange and consummate the Alternative Financing as soon as reasonably practicable on the terms and conditions described in the Alternative Financing Commitment, seek which actions shall include (i) maintaining the waiver Alternative Financing Commitments and negotiating and executing definitive agreements with respect thereto on the terms and conditions contained therein, which terms and conditions shall not expand upon the conditions to Closing or other contingencies to the funding on the Closing Date of conditions applicable the Alternative Financing as set forth in the Alternative Financing Commitments (the “Alternative Financing Agreements”), and delivering to Parent and Merger Sub contained in such Debt Commitment Letter or the Seller a copy of such definitive agreements related thereto), as promptly as practicable (ivand no later than one (1) upon Business Day) after such execution; (ii) satisfying on a timely basis all conditions in the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Alternative Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, Agreements within its control; (viii) enforce fully enforcing its rights under the Alternative Financing Letters Commitment and the definitive agreements relating Alternative Financing Agreements, including (at the request of the Seller) by commencing litigation proceedings against the other parties to the Alternative Financing Agreements; and (iv) drawing upon and consummating the Alternative Financing at or prior to the Closing. Neither the Alternative Financing Commitment nor the Alternative Financing Agreements shall (x) expand upon the conditions precedent or contingencies to the funding on the Closing Date of the Financing as set forth in the Financing Commitments as in effect on the date of this Agreement or the Financing Agreements; or (y) prevent, impede or materially delay the consummation of the transactions contemplated by this Agreement. (c) The Purchaser shall give the Seller notice promptly upon becoming aware of any material breach or threatened material breach by any party to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under Commitments or the Financing Letters Agreements and, if applicable, the Alternative Financing Commitment or the Alternative Financing Agreements, and the definitive agreements relating Purchaser shall give the Seller notice promptly upon becoming aware of any termination or threatened termination of the Financing Commitments or the Financing Agreements and, if applicable, the Alternative Financing Commitment or the Alternative Financing Agreements. The Purchaser shall keep the Seller informed on a reasonably current basis in reasonable detail of the status of its efforts to arrange the Financing and, if applicable, the Alternative Financing. Parent, Merger Sub and the Guarantors The Purchaser shall not, without the prior written consent of the CompanySeller, agree to or permit any termination of or amendmentamend, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendmentmodify, supplement, modification restate, substitute or waiver would (A) reduce the aggregate amount of any portion of replace the Financing (including by increasing the amount of fees to be paid Commitments, any Alternative Financing Commitment, any Financing Agreement or original issue discount as compared to the fees and original issue discount contemplated by the any Alternative Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected expands on the conditions precedent or contingencies to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact of the ability of Parent or Merger SubFinancing or, if applicable, the Alternative Financing, as set forth in such agreements or that could otherwise prevent, impede or materially delay the consummation of the transactions contemplated by this Agreement. (d) Prior to the Closing, the Seller shall provide, and shall use commercially reasonable efforts to cause its Representatives to provide, all reasonable cooperation in connection with the arrangement of the Financing as may be reasonably requested by the Purchaser and that is customary in connection with the Purchaser’s efforts to obtain the Financing or, if applicable, the Alternative Financing; provided, that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company; provided, further, that the Seller shall not be required to enforce its rights against pay any commitment or other parties similar fee or incur any other liability in connection with the Financing or, if applicable, the Alternative Financing; provided, further, that the effectiveness of any documentation executed by the Company shall be subject to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofClosing having occurred. Notwithstanding anything to the contrary in contained herein and unless expressly contemplated by this Agreement, nothing contained in this Section 5.04 the Seller shall requirenot be required to deliver any financial statements or other financial information other than the Post-Signing Statements and other financial information previously provided to the Purchaser. (e) The Purchaser shall, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to requirecause its Affiliates to, either Parent or Merger Sub to (i) seek promptly upon request by the Equity Financing from any source other than Seller, reimburse the counterparties to, or Seller for all reasonable and documented out-of-pocket costs incurred by the Seller in any amount connection with cooperation provided for in excess of that contemplated by, the Equity Funding Letter, or Section 5.07(d); and (ii) pay indemnify and hold harmless the Seller and its Representatives from and against any material and all Losses suffered or incurred by them in connection with the arrangement of the Financing or, if applicable, the Alternative Financing, and any information utilized in connection therewith (other than information provided by the Seller). All non-public or otherwise confidential information regarding the Company obtained by the Purchaser, its Affiliates or their respective Representatives pursuant to this Section 5.07 shall be kept confidential in accordance with the terms of the Confidentiality Agreement. (f) In the event that (i) the terms and conditions set forth in the Financing Commitments and the Financing Agreements and, if applicable, the Alternative Financing Commitment and the Alternative Financing Agreements have been satisfied; and (ii) one or more of the financing institutions obligated to provide a portion of the Financing (or such Alternative Financing) fails to provide its respective portion of such financing and, as a result, impedes or delays the Closing, the Purchaser shall, and shall cause its Affiliates to, upon the request of the Seller, promptly commence litigation proceedings against any breaching party, including any breaching financial institution or institutions, in which the Purchaser shall, and shall cause each of its Affiliates to, seek (x) to compel such breaching institution or institutions to provide its portion of such financing as required; or (y) from the breaching institution or institutions the maximum amount of damages available under Law as a result of such breach. The Purchaser further agrees that any amounts received by the Purchaser or its Affiliates in settlement or resolution of any such proceeding, net of any reasonable fees and expenses incurred by the Purchaser or its Affiliates in excess connection with any such proceeding, shall be paid to the Seller promptly following receipt thereof by the Purchaser or its Affiliates; provided, that if such recovery is obtained prior to the termination of those this Agreement in accordance with its terms, the Purchaser shall, subject to the other terms and conditions contained herein, complete the transactions contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)this Agreement.

Appears in 1 contract

Sources: Stock Purchase Agreement (Scripps E W Co /De)

Financing. (a) Each of Parent a. Purchaser shall, and Merger Sub shall cause its Affiliates to, use its reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, done all things necessary, proper or advisable to consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply accordance with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market the “flex” provisions) set forth contemplated by the Commitment Letter as promptly as practicable following the date of this Agreement, including (i) complying with and maintaining in effect the Commitment Letter, (ii) negotiating and entering into definitive agreements with respect to the Financing contemplated by the Commitment Letter on the terms and conditions contained in the Debt Commitment Letter)Letter so that such agreements are in effect no later than the Closing, (iii) satisfy satisfying as promptly as practicable and on a timely basis all the conditions applicable to Parent the financing contemplated by the Commitment Letter and Merger Sub in the Financing Letters definitive agreements, (iv) accepting to the fullest extent all “market flex” contemplated by the Commitment Letter and the definitive agreements related thereto and (including v) enforcing its rights under the Commitment Letter in the event of a breach by consummating the Equity Financing at Sources that impedes or prior delays the Closing. In the event that all conditions to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (Commitment Letter have been satisfied or, if necessary or deemed advisable by Parentupon funding shall be satisfied, seek the waiver of conditions applicable Purchaser and its Affiliates shall use their reasonable best efforts to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing providing such financing to fund on the Closing Date the financing required to consummate the transactions contemplated hereby (including by taking enforcement action to cause such lenders and the other Persons providing such financing to fund such financing). Purchaser shall give Seller Parent prompt written notice of any (A) breach or default (or any event or circumstance that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any breach or default) by any party to the Commitment Letter or any definitive document related to the Financing, (B) actual or threatened withdrawal, repudiation or termination of the Financing to fund by the Financing at the ClosingSources, (vC) enforce its rights under material dispute or disagreement between or among any of the parties to the Commitment Letter or any definitive document related to the Financing, (D) material amendment or modification of, or waiver under, the Commitment Letter, (E) if for any reason Purchaser believes in good faith that it will not be able to timely obtain all or any portion of the Financing Letters and on the terms, in the manner or from the sources contemplated by the Commitment Letter or the definitive agreements relating documents related to the Financing and or (viF) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations expiration or termination of the Commitment Letter. Purchaser shall keep Seller Parent informed on a reasonably current basis of the status of its efforts to arrange the Financing contemplated by the Commitment Letter, including providing copies of all definitive agreements. Neither Purchaser nor its Affiliates shall amend, modify or agree to any waiver under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, Commitment Letter without the prior written consent approval of the Company, agree to or permit any termination of or Seller Parent if such amendment, supplement or modification to be made tomodification, or grant any waiver (1) could reasonably be expected to reduce (or have the effect of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (Areducing) reduce the aggregate committed amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to of the Financing (unless in connection with such increase in the amount of the fees and or original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that discount, the aggregate amount of the Financing would be below is increased in an amount equal to such increase in the amount required to pay of the Required Amount, fees or original issue discount)) or (B2) impose expands on or imposes new or additional conditions precedent to the availability of the Financing precedent, or otherwise expandamends, amend modifies or modify expands any of the conditions precedent to the Financing provision set forth therein in a manner that would could reasonably be expected to materially (x) prevent, delay or prevent impair the Closing, (y) make the funding of the Financing (or satisfaction of the conditions to obtaining the Financing) on the Closing Date less likely to occur, or (Cz) adversely impact the ability of Parent Purchaser or Merger Sub, as applicable, its Affiliates to enforce its rights against the other parties to the Financing Letters Commitment Letter or the ability of Purchaser or its Affiliates to timely consummate the transactions contemplated hereby; provided, that Purchaser may (but shall not be obligated to) amend the Commitment Letter to add commercial banks, investment banks or other institutional investors as lenders, lead arrangers, bookrunners, syndication agents or similar entities with commitments thereunder that have not executed the Commitment Letter as of the date hereof, if the addition of such additional parties, individually or in the aggregate, would not prevent, delay or impair the availability of the Financing or the consummation of the transactions contemplated by this Agreement. Neither Purchaser nor its Affiliates shall, without the prior written consent of Seller Parent, take any action or enter into any transaction that would reasonably be expected to impair, delay or prevent consummation of all or any portion of the Financing. Purchaser shall not release or consent to the termination of the obligations of the lenders under the Commitment Letter, except for assignments and replacements of an individual lender under the terms of, or in connection with, the syndication of the Financing or as otherwise expressly contemplated by the Commitment Letter. If funds in the amounts set forth in the Commitment Letter, or any portion thereof, become unavailable, or it becomes reasonably likely that such funds may become unavailable to Purchaser on the terms and conditions set forth therein, Purchaser shall, and shall cause its Affiliates, as promptly as practicable following the occurrence of such event to (aa) notify Seller Parent in writing thereof, (bb) use reasonable best efforts to obtain substitute financing on terms and subject to conditions not materially less favorable to Purchaser and its Affiliates than those set forth in the Commitment Letter and sufficient to enable Purchaser to consummate the transactions contemplated hereby in accordance with its terms (the “Substitute Financing”) and (cc) obtain a new financing commitment letter that provides for such Substitute Financing and, promptly after execution thereof, deliver to Seller Parent true, complete and correct copies of the new commitment letter and fee letter (in a redacted form removing only the fee amounts and economic information, but which redacted fee amounts and economic information does not relate to the amounts or conditionality of, or contain any conditions precedent to, the funding of the Financing) and related definitive agreements financing documents with respect to such Substitute Financing. Upon obtaining any commitment for any such Substitute Financing, such financing shall be deemed to be a part of the “Financing” and any commitment letter and fee letter for such Substitute Financing shall be deemed the “Commitment Letter” for all purposes of this Agreement. b. Prior to the Closing, Seller Parent shall use its commercially reasonable best efforts to provide reasonable cooperation (and cause its applicable controlled Affiliates to use their commercially reasonable efforts) with the Financing as is reasonably requested by Purchaser, in each case at the sole cost and expense of Purchaser. Such cooperation shall include the following: (i) in connection with the Financing. Parent shall promptly deliver , providing reasonable assistance in the preparation of customary rating agency presentations, bank books, information memoranda and other information packages regarding the business, operations and financial condition of the Business, in each case, to the Company copies extent customarily provided by a borrower in a secured bank loan financing; (ii) providing reasonable participation by appropriate members of any amendmentthe Business’s management team in a reasonable number of due diligence sessions, modificationdrafting sessions, supplementrating agency presentations and meetings with prospective lenders and debt investors, consent or waiver in each case related to or under any the Financing, and in each case upon reasonable advance notice and at times and locations to be mutually agreed; (iii) furnishing Purchaser and the Financing Letter or Sources with customary and readily available financial and other pertinent financial information regarding the Business as may be reasonably requested by Purchaser to consummate the Financing, including the Required Financial Information; (iv) if reasonably requested, providing reasonable assistance in the negotiation of the definitive agreements documents relating to the Financing, including with respect to any guarantee and collateral documents and providing Purchaser with any information regarding the Business reasonably necessary to complete customary closing and perfection certificates as may be required in connection with the Financing promptly as may be reasonably requested by Purchaser; (v) reasonably facilitating the pledging of collateral in connection with the Financing; (vi) providing customary authorization letters (including as to the accuracy of information and the absence of material non-public information) to the Financing Sources to the extent requested and (vii) upon execution thereofreasonable request therefor, at least three (3) Business Days prior to the Closing Date, furnishing all reasonable documentation and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act, as is requested in writing by Purchaser at least ten (10) days prior to the Closing Date. Notwithstanding anything to the contrary in this Agreement or otherwise, the actions contemplated in the foregoing clauses (i) through (vii) shall not require any cooperation to the extent it could reasonably be expected to (A) unreasonably interfere with the ongoing operations of the Business, (B) cause any representation or warranty in this Agreement to be breached, (C) cause any condition to the Closing set forth in Article VIII to fail to be satisfied or otherwise cause any breach of this Agreement, nothing contained (D) require Seller Parent or any of its Subsidiaries to pay any out-of-pocket fees or expenses or incur or assume any other liability or obligation in connection with the financings contemplated by the Commitment Letter or the Financing, (E) require Seller Parent or any of its Subsidiaries or any of their respective Representatives to provide (or to have provided on its behalf) any certificates or opinions or execute any definitive financing documents, including any credit or other agreements, pledge or security documents, in connection with the Financing, (F) cause any director, officer or employee of Seller Parent or any of its Subsidiaries to incur any personal liability and none of the boards of directors (or equivalent bodies) of Seller Parent or any of its Subsidiaries shall be required to enter into any resolutions or take similar action approving the Financing, (G) result in the material contravention of, or that could reasonably be expected to result in a material violation or breach of, or a default under, any Laws or under any material Contract to which Seller Parent or any of its Subsidiaries is a party in effect on the date hereof, (H) require Seller Parent or any of its Subsidiaries to provide access to or disclose information that Seller Parent determines would jeopardize any attorney-client privilege of Seller Parent or any of its Subsidiaries or (I) require Seller Parent or any of its Subsidiaries to prepare separate financial statements (other than the Required Financial Information) or pro forma financial statements or adjustments. Purchaser acknowledges and agrees that Seller Parent and its Subsidiaries and their respective Representatives shall not, prior to the Closing, have any responsibility for, or incur any liability to any Person under, the Financing or any other financing that Purchaser may raise in connection with the transactions contemplated hereby or any cooperation provided pursuant to this Section 6.28. Seller Parent hereby consents to the use of all of its and its Subsidiaries’ logos in use as of the date hereof, as applicable, in connection with the Financing, in accordance with customary practice and in the same manner as such logos are used as of the date hereof in connection with the Business, and subject to any reasonable restrictions that Seller Parent may impose; provided that the logos are used solely in a manner that is not intended, or reasonably likely, to harm or disparage Seller Parent and its Subsidiaries or Affiliates or the reputation or the goodwill of Seller Parent and its Subsidiaries or Affiliate. Notwithstanding anything in this Agreement to the contrary, Seller Parent’s breach of any of its covenants required to be performed by it under this Section 6.28 will not be considered in determining the satisfaction of the conditions in Article VIII unless such breach is material and directly results in Purchaser being unable to timely satisfy the conditions in the Commitment Letter and as a result Purchaser is unable to obtain the proceeds of the Financing at the Closing. c. Purchaser shall indemnify Seller Parent and its Affiliates and its and their Representatives from and against any Losses arising out of, resulting from or relating to the Financing (including any information used in connection therewith), including, to the extent applicable, promptly upon written request by Seller Parent, reimburse any out-of-pocket costs and expenses (including reasonable attorneys’ fees) of Seller Parent or its Affiliates or any of their respective Representatives arising out of, resulting from or relating to the Financing and any activities relating thereto, to the extent such costs and expenses are incurred (provided that the foregoing shall not be deemed an independent obligation of Seller Parent or its Affiliates and/or any of their respective Representatives to incur any such costs and expenses or to participate in any such financing efforts). The provisions of this Section 6.28(c) shall survive (i) any termination of this Agreement pursuant to Section 9.1 and (ii) the consummation of the transactions contemplated hereby, and are expressly intended to benefit, and are enforceable by, Seller Parent, its Subsidiaries and their respective Representatives. Notwithstanding anything herein to the contrary, it is understood by the Parties that the obtaining, or availability, of any proceeds of the Financing shall not be a condition to the Closing or to Purchaser’s obligation to consummate the transactions contemplated by this Agreement, or to the availability of remedies set forth in Section 10.17. Each of (A) Purchaser’s breach of any of its representations or warranties in Section 5.6 or Purchaser’s breach of any of its obligations in this Section 5.04 6.28 and (B) the failure, for any reason, of Purchaser to have sufficient cash available on the Closing Date to pay the Preliminary Purchase Price and/or the failure to so pay the Preliminary Purchase Price on the Closing Date, in each case, shall requireconstitute a willful and material breach of this Agreement by Purchaser and Seller Parent will be entitled to all remedies pursuant to this Agreement, including Section 9.2. d. None of Seller Parent, the Asset Sellers, the Share Sellers, the Conveyed Subsidiaries and each of their respective stockholders, partners, members, Affiliates, directors, officers, employees, controlling Persons and agents shall have any rights or claims against any Financing Source (and no Financing Source shall have any liability (whether in no event shall contract, in tort or otherwise) to Seller Parent, the reasonable best efforts Asset Sellers, the Share Sellers, the Conveyed Subsidiaries and each of Parent their respective stockholders, partners, members, Affiliates, directors, officers, employees, controlling Persons and agents) in connection with this Agreement, the Financing or Merger Sub be deemed the transactions contemplated hereby or construed to requirethereby, either Parent including any dispute arising out of or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or relating in any amount way to the performance of any financing commitments of such Financing Source with respect to the transactions contemplated hereby, whether at law or equity, in excess contract, in tort or otherwise; provided that, notwithstanding the foregoing, nothing in this Section 6.28(d) shall limit or modify the rights and obligations of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Purchaser under this Agreement.

Appears in 1 contract

Sources: Stock and Asset Purchase Agreement (Icu Medical Inc/De)

Financing. (a) Each Purchaser shall use commercially reasonable efforts to take, or cause to be taken, all actions, and do, or cause to be done, all things necessary, proper or advisable to obtain funds in an amount sufficient to fund the Financing Amounts on the terms and conditions contained in the Debt Commitment Letter on or prior to the date upon which the Sale is required to be consummated pursuant to the terms hereof. In furtherance and not in limitation of Parent and Merger Sub the foregoing, Purchaser shall use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, advisable or proper or advisable to consummate and obtain the proceeds of the Financing on the terms and subject only conditions described in the Debt Commitment Letter and the Equity Commitment Letter, as applicable, as promptly as possible but in any event on or prior to the conditions (including date upon which the market “flex” provisions) set forth in Sale is required to be consummated pursuant to the Financing Lettersterms hereof, including using reasonable best efforts to by (i) maintain maintaining in effect the Equity Commitment Letter and comply with the Financing LettersDebt Commitment Letter, (ii) negotiate negotiating and enter entering into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on (the terms and subject only to the conditions (including the market “flex” provisionsDefinitive Agreements”) set forth in the Debt Commitment Letter (or on other terms that, consistent with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions contained therein (including market including, as necessary, the “flex” provisionsprovisions contained in any related fee letter) set forth in the Debt Commitment Letter), and (iii) satisfy satisfying on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters Debt Commitment Letter and the definitive agreements related thereto (including by consummating Definitive Agreements and complying with its obligations thereunder. Purchaser shall comply with its obligations, and enforce its rights, under the Equity Financing at or prior to Debt Commitment Letter and Definitive Agreements in a timely and diligent manner. Without limiting the Closing on generality of the terms and subject to the conditions set forth foregoing, in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of event that all conditions applicable to Parent and Merger Sub contained in such the Debt Commitment Letter or such definitive agreements related thereto), the Definitive Agreements (iv) upon other than the satisfaction or waiver consummation of the Sale and those conditions the failure of which to Parent’s be satisfied is attributable to a breach by Purchaser of its representations, warranties, covenants or agreements contained in this Agreement, and Merger Sub’s obligations other than, with respect to consummate the Offer and Debt Financing, the Mergeravailability of the Equity Financing) have been satisfied, consummate the Financing and Purchaser shall use reasonable best efforts to cause the lenders Lenders and the other Persons committing Equity Investors to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other their respective obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors thereunder. (b) Purchaser shall not, not without the prior written consent of the Company, agree to or Seller: (A) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Letters Debt Commitment Letter or the definitive agreements relating Definitive Agreements if such amendment, modification, waiver or remedy (1) adds new (or adversely modifies any existing) conditions to the Financing if such termination, amendment, supplement, modification consummation of all or waiver would (A) reduce the aggregate amount of any portion of the Financing Financing, (including by increasing 2) reduces the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or the Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountFinancing, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C3) adversely impact affects the ability of Parent or Merger Sub, as applicable, Purchaser to enforce its rights against other parties to the Financing Letters Debt Commitment Letter or the definitive agreements with respect Definitive Agreements as so amended, replaced, supplemented or otherwise modified, relative to the Financingability of Purchaser to enforce its rights against the other parties to the Debt Commitment Letter as in effect on the date hereof or (4) could otherwise reasonably be expected to prevent, impede or delay the consummation of the Sale and the other transactions contemplated by this Agreement; or (B) terminate the Debt Commitment Letter or any Definitive Agreement. Parent Purchaser shall promptly deliver to the Company Seller copies of any amendment, modification, supplement, consent waiver or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts replacement of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter or any Definitive Agreement. (including c) In the event that any market portion of the Debt Financing becomes unavailable, regardless of the reason therefor, Purchaser will, (A) use commercially reasonable efforts to arrange and obtain alternative debt financing (in an amount sufficient and to the extent necessary, when taken together with the available portion of the Financing, to consummate the transactions contemplated by this Agreement and to pay the Financing Amounts) from the same or other sources and which do not include any conditions to the consummation of such alternative debt financing that are more onerous than the conditions set forth in the Debt Commitment Letter and (B) promptly notify Seller of such unavailability and the reason therefor. For purposes of this Agreement, the term “flexDebt Commitment Letter” provisions contained therein)shall be deemed to include any commitment letter (or similar agreement) with respect to any alternative financing arranged in compliance herewith (and any Debt Commitment Letter remaining in effect at the time in question) and the term “Debt Financing” shall be deemed to include any alternative debt financing obtained in compliance herewith. Purchaser shall provide Seller with prompt oral and written notice of any actual or threatened breach, default, termination or repudiation by any party to the Debt Commitment Letter or Equity Commitment Letter or any Definitive Agreement and a copy of any written notice or other written communication from any Lender, Equity Investor or other financing source with respect to any breach, default, termination or repudiation by any party to the Debt Commitment Letter or Equity Commitment Letter or any Definitive Agreement of any provision thereof. Purchaser shall inform Seller in reasonable detail on a current basis of the status of its efforts to consummate the Financing. The foregoing notwithstanding, compliance by Purchaser with this Section 5.15 shall not relieve Purchaser of its obligations to consummate the transactions contemplated by this Agreement whether or not the Financing is available.

Appears in 1 contract

Sources: Equity Purchase Agreement (Pseg Power LLC)

Financing. (a) Each of Parent Ainge shall, and Merger Sub shall cause its Affiliates to (subject to Ainge’s right to obtain Permitted Alternative Financing), use reasonable best efforts to take, take (or cause to be taken, ) all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and consummate the Direct Sales Financing (together with the Newco Financing and obtain any Permitted Alternative Financing, the Financing “Financings”) as promptly as reasonably practicable after the date of this Agreement on the terms and conditions which are within its control in the Direct Sales Commitment Letter. Ainge shall, and shall cause its Affiliates to, (subject only to Ainge’s right to obtain Permitted Alternative Financing in accordance with the conditions herein) (i) use reasonable best efforts to comply with and maintain in effect the Direct Sales Commitment Letter and negotiate and execute definitive agreements with respect thereto, on the terms and conditions contained therein, which terms and conditions shall not expand upon the conditions to Closing or other contingencies to the conditions funding (including any “Marketing Period”) on the market “flex” provisions) closing date of the Financings as set forth in the Direct Sales Commitment Letter or reduce the committed amount (the “Direct Sales Financing Letters, including using reasonable best efforts Agreements”) and shall deliver to (i) maintain in effect and comply with the Financing Letters, Fox a copy thereof as promptly as reasonably practicable; (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions in the Direct Sales Commitment Letter and the Direct Sales Financing Agreements that are within its control; (iii) in the event of a breach by the Direct Sales Financing Lenders, fully enforce its rights to funding under the Direct Sales Commitment Letter and the Direct Sales Financing Agreements; and (iv) use reasonable best efforts to draw upon and consummate the Direct Sales Financings prior to or substantially contemporaneously with the Merger. In the event any funds in the amounts set forth in the Direct Sales Commitment Letter or the Direct Sales Financing Agreements, or any portion thereof, become unavailable on the terms and conditions contemplated in the Direct Sales Commitment Letter or the Direct Sales Financing Agreements, or it becomes reasonably likely that such funds may become unavailable on the terms and conditions set forth therein (in each case other than on account of (x) any Permitted Alternative Financing having been obtained or (y) the commitments under the Direct Sales Commitment Letter being replaced (without reduction) with commitments set forth in the Direct Sales Financing Agreements), Ainge shall, and shall cause its Affiliates, to use reasonable best efforts to arrange to obtain as promptly as reasonably practicable any such portion from alternative sources, including, subject to Section 5.15(c) on terms that shall not expand the conditions or other contingencies to the funding (including any “Marketing Period”), from those set forth in the Direct Sales Commitment Letter or reduce the committed amount, in an amount sufficient, when added to the portion of the Direct Sales Financing that is available, to finance the amount set forth in the Direct Sales Commitment Letter (the “Alternative Direct Sales Financing”) and to obtain, and, when obtained, to provide promptly to Fox a copy (with any fee letter redacted in a customary manner to the extent required by the applicable financing sources) of, a new financing commitment that provides for financing in an amount that is sufficient, when added to the portion of the Direct Sales Financing that is available, to finance the amount set forth in the Direct Sales Commitment Letter (the “Alternative Direct Sales Commitment Letter”); provided, however, that in no event shall Ainge be required to pay any fees or any interest rates applicable to Parent the Direct Sales Financing materially in excess of those contemplated by the Direct Sales Commitment Letter or otherwise agree to other terms and Merger Sub conditions (including market flex) that are materially less favorable in the aggregate to Ainge than those in the Direct Sales Commitment Letter as in effect as of the date hereof. To the extent an Table of Contents Alternative Direct Sales Commitment Letter is obtained, the provisions in this Section 5.15(a) shall apply to such Alternative Direct Sales Commitment Letter. For the avoidance of doubt, if the Direct Sales Financing Letters or the Alternative Direct Sales Financing, as applicable, is available and all conditions to Closing set forth in Sections 6 and 7 have been satisfied or waived or will be satisfied or waived at the Closing and the definitive agreements related thereto Marketing Period shall have ended, Ainge shall, subject to Ainge’s right to obtain Permitted Alternative Financing, use reasonable best efforts to take all actions necessary to incur the indebtedness provided under the Direct Sales Financing or the Alternative Direct Sales Financing, as applicable. Notwithstanding the foregoing, nothing in the Direct Sales Financing or the Alternative Direct Sales Financing shall prevent, restrict or limit the ability of any party hereto to consummate the Debt Exchange. (including b) Fox and Newco shall, and shall cause their respective Affiliates to (subject to Ainge’s right to obtain Permitted Alternative Financing), use reasonable best efforts to take (or cause to be taken) all actions necessary, proper or advisable to arrange and consummate the Newco Financing as promptly as reasonably practicable after the date of this Agreement on the terms and conditions which are within its control in the Newco Commitment Letter (and with respect to amounts thereunder used to fund any dividend by consummating Newco to Fox in addition to the Equity Financing at Cash Dividend, only to the extent the Debt Exchange has not occurred on or prior to the Closing date of the Distribution and Fox has elected to receive a dividend pursuant to Section 5.16(d)(ii)). Fox and Newco shall, and shall cause their Affiliates to, (subject to Ainge’s right to obtain Permitted Alternative Financing in accordance with the conditions herein) (i) use reasonable best efforts to comply with and maintain in effect the Newco Commitment Letter and negotiate and execute definitive agreements with respect thereto, on the terms and subject conditions contained therein, which terms and conditions shall not expand upon the conditions to Closing or other contingencies to the conditions funding (including any “Marketing Period”) on the closing date of the Financings as set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Newco Commitment Letter or such definitive agreements related thereto)delay receipt of the funds or reduce the committed amount (the “Newco Financing Agreements” and, together with the Direct Sales Financing Agreements, the “Financing Agreements”) and shall deliver to Ainge a copy thereof as promptly as reasonably practicable; (ii) satisfy on a timely basis all conditions in the Newco Commitment Letter and the Newco Financing Agreements that are within its control; (iii) in the event of a breach by the Newco Financing Lenders, fully enforce its rights to funding under the Newco Commitment Letter and the Newco Financing Agreements; and (iv) use reasonable best efforts to draw upon and consummate the satisfaction Newco Financings (and with respect to amounts thereunder used to fund any dividend by Newco to Fox in addition to the Cash Dividend, only to the extent the Debt Exchange has not occurred on or waiver prior to the date of the Distribution and Fox has elected to receive a dividend pursuant to Section 5.16(d)(ii)) prior to or substantially contemporaneously with the Distribution. In the event any funds in the amounts set forth in the Newco Commitment Letter or the Newco Financing Agreements, or any portion thereof, become unavailable on the terms and conditions contemplated in the Newco Commitment Letter or the Newco Financing Agreements, or it becomes reasonably likely that such funds may become unavailable on the terms and conditions set forth therein (in each case other than on account of (x) any Permitted Alternative Financing having been obtained or (y) the commitments under the Newco Commitment Letter being replaced (without reduction) with commitments set forth in the Newco Financing Agreements), Newco (in consultation with Ainge) shall, and shall cause its Affiliates, to use reasonable best efforts to arrange to obtain as promptly as reasonably practicable any such portion from alternative sources, including, subject to Section 5.15(c) on terms that shall not expand the conditions or other contingencies to the funding (including any “Marketing Period”), from those set forth in the Newco Commitment Letter or reduce the amount committed, in an amount sufficient, when added to the portion of the Newco Financing that is available, to finance the amount set forth in the Newco Commitment Letter (the “Alternative Newco Financing” and together with the Alternative Direct Sales Financing, the “Alternative Financings”) and to obtain (in consultation with Ainge) and, when obtained, to provide promptly to Ainge a copy of a new financing commitment that provides for financing in an amount that is sufficient, when added to the portion of the Newco Financing that is available, to finance the amount set forth in the Newco Commitment Letter (the “Alternative Newco Commitment Letter” and, together with the Alternative Direct Sales Commitment Letter, the “Alternative Commitment Letters”); provided, however, that in no event shall Ainge or Newco be required to pay any fees or any interest rates applicable to the Newco Financing materially in excess of those contemplated by the Newco Commitment Letter or otherwise agree to other terms and conditions (including market flex) that are materially less favorable in the aggregate to Newco or Table of Contents Ainge than those in the Newco Commitment Letter as in effect as of the date hereof. To the extent an Alternative Newco Commitment Letter is obtained, the provisions in this Section 5.15(b) shall apply to such Alternative Newco Commitment Letter. For the avoidance of doubt, if the Newco Financing or the Alternative Newco Financing, as applicable, is available and all conditions to Closing set forth in Sections 6 and 7 have been satisfied or waived or will be satisfied or waived at the Closing and the Marketing Period shall have ended, Newco shall, subject to Ainge’s right to obtain Permitted Alternative Financing, use reasonable best efforts to take all actions necessary to incur the indebtedness provided under the Newco Financing or the Alternative Newco Financing, as applicable (and with respect to amounts thereunder used to fund any dividend by Newco to Fox in addition to the Cash Dividend, only to the extent the Debt Exchange has not occurred on or prior to the date of the Distribution and Fox has elected to receive a dividend pursuant to Section 5.16(d)(ii)). Notwithstanding the foregoing, nothing in the Newco Financing or the Alternative Newco Financing shall prevent, restrict or limit the ability of any party hereto to consummate the Debt Exchange. (c) Each of Ainge and Fox shall give the other prompt written notice (v) of any material breach (or threatened material breach) or default (or any event or circumstance that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any material breach or default) by any party to the Commitment Letters, the Financing Agreements, the Alternative Commitment Letters or the definitive agreements with respect thereto (the “Alternative Financing Agreements;” the terms and conditions of which shall not expand upon the conditions to Parent’s and Merger Sub’s obligations Closing or other contingencies to consummate the Offer and funding on the Mergerclosing date of the Alternative Financings as set forth in the Alternative Commitment Letters), consummate in each case, of which it becomes aware; (w) of any actual or threatened withdrawal, repudiation or termination of the Financings or commitments for the Financings by any of the Lenders of which it becomes aware; (x) of the receipt by it of any written notice from any Person with respect to any material dispute or disagreement between or among any of the parties to the Commitment Letters or the Financing Agreements and, if applicable, the Alternative Commitment Letters or the Alternative Financing Agreements; (y) of any amendment or modification of, or waiver under, the Commitment Letters or the Financing Agreements and, if applicable, the Alternative Commitment Letters or the Alternative Financing Agreements or any related fee letters; or (z) if for any reason it believes in good faith that it or its Affiliates will not be able to timely obtain all or any portion of the Direct Sales Financings or the Newco Financings, as applicable, on the terms and cause in the lenders manner or from the sources contemplated by the Direct Sales Commitment Letter or the Newco Commitment Letter, as applicable, or the Direct Sales Financing Agreements or the Newco Financing Agreements, as applicable, and, if and as applicable, the Alternative Commitment Letters or the Alternative Financing Agreements. Each of Ainge and Fox shall keep the other Persons committing reasonably informed (in reasonable detail) with respect to fund all material activity concerning the Financing to fund Financings and, if applicable, the Financing at the ClosingAlternative Financings, (v) enforce its rights under the Financing Letters and the including by providing copies of all definitive agreements (with any fee letter redacted in a customary manner to the extent required by the applicable financing sources) and upon reasonable request therefor, each of Ainge and Fox shall promptly provide the other with any information relating to the Financing Financings. Each of Ainge and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Fox shall not, and shall cause their respective Affiliates not to, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification other (not to be made tounreasonably withheld, conditioned or grant any waiver of any provision underdelayed), the Financing Letters or the definitive agreements relating to the Financing if such terminationamend, amendmentmodify, supplement, modification restate, substitute, replace, terminate, assign or agree to any waiver would (A) reduce under the aggregate amount of Commitment Letters, any portion of the Alternative Commitment Letters, any Financing (including by increasing the amount of fees Agreements or any Alternative Financing Agreements, in each case, to be paid which it or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing its Affiliates is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountparty, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected expands on the conditions precedent or contingencies to the funding on the closing date of the Financings or, if applicable, the Alternative Financings, as set forth in such agreements or that could otherwise prevent, impair or materially delay or prevent the funding consummation of the Financing (transactions contemplated by this Agreement and the other Transaction Documents; provided that additional lenders and financing sources may be added to the Commitment Letters or satisfaction any Alternative Commitment Letter after the date hereof or thereof with a concomitant reduction in the commitment of the conditions to the Financing) lenders party thereto on the Closing Date date hereof or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary contained in this Agreement, nothing contained with the prior written consent of Fox (such consent not to be unreasonably withheld, conditioned or delayed), Ainge shall have the right, at any time and from time to time, to substitute other debt financing for all or any portion of the Financing or, if applicable, the Alternative Financings from the same and/or alternative financing sources (a “Permitted Alternative Financing”); provided that any such Permitted Alternative Financing (i) must be consistent with the Tax-Free Status of the Transactions, as reasonably determined by Fox; (ii) shall not expand Table of Contents on the conditions precedent or contingencies to the funding on the closing date of the Financings or, if applicable, the Alternative Financings, as set forth in such agreements; (iii) shall not reduce the amount of the Newco Financing or the Direct Sales Financing from that contemplated under the Newco Commitment Letter and the Direct Sale Commitment Letter as in effect on the date hereof; and (iv) shall not prevent impair or materially delay the consummation of the transactions contemplated by this Agreement and the other Transaction Documents. For purposes of this Agreement, the terms “Commitment Letter”, “Direct Sales Commitment Letter” and “Newco Commitment Letter”, as applicable, shall include the applicable commitment letter (and the related fee letter) entered into by Ainge, Newco or any of their respective Subsidiaries in connection with the Permitted Alternative Financing and the term “Financing Agreement” shall include any definitive agreement with respect to any Permitted Alternative Financing. (i) Subject to Section 5.15(e) and the remaining provisions of this Section 5.04 shall require5.15(d), Fox shall, and in no event shall the cause its Subsidiaries and their respective Representatives to, use reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties provide such cooperation to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).

Appears in 1 contract

Sources: Merger Agreement (Altra Industrial Motion Corp.)

Financing. (a) Each of Parent Buyer shall, and Merger Sub shall cause its Affiliates to, use commercially reasonable best efforts to take, or cause to be taken, all actions appropriate action and to do, or cause to be done, all things necessary, proper or advisable under applicable Laws, and to consummate execute and deliver, or cause to be executed and delivered, such instruments and documents as may be required, to obtain the Financing as promptly as reasonably practicable on the terms (including the “market flex” provisions) and subject only to the conditions (including the market “flex” provisions) set forth contained in the Financing LettersCommitments (and, if applicable in the case of the Alternate Financing, only those conditions specified in the Financing Commitments as being applicable to the Alternate Financing), including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms (including the “market flex” provisions) and subject only to the conditions contained in the Financing Commitments (including and, if applicable in the market “flex” provisionscase of the Alternate Financing, only those conditions specified in the Financing Commitments as being applicable to the Alternate Financing) or on other terms acceptable to Buyer so long as such definitive agreements (A) do not contain any additional or modified conditions or other contingencies to the funding of the Financing than those contained in the Financing Commitments as of the date of this Agreement (and, if applicable in the case of the Alternate Financing, only those conditions specified in the Financing Commitments as of the date of this Agreement as being applicable to the Alternate Financing), (B) are in a form that is otherwise not reasonably likely to impair or delay the funding of the Financing or the Principal Closing and (C) do not reduce the aggregate amount of the Financing set forth in the Debt Commitment Letter Financing Commitments as of the date of this Agreement (or on other terms thator, with respect to conditionalityif applicable in the case of the Alternate Financing, are not less favorable to Parent or Merger Sub than reduce the terms and conditions (including market “flex” provisions) aggregate amount of Financing contemplated by the Alternate Financing Commitments as set forth in the Debt Commitment LetterFinancing Commitments as of the date of this Agreement), (iiiii) satisfy satisfy, and cause its Subsidiaries to satisfy, on a timely basis all conditions applicable to Parent and Merger Sub Buyer or its Subsidiaries contained in the Financing Letters Commitments (or, if applicable in the case of the Alternate Financing, those conditions contained in the Alternate Financing Commitments) and (iii) consummate the Financing contemplated by the Financing Commitments (or the Alternate Financing Commitments, if applicable) at the Principal Closing. Buyer shall, and shall cause its Subsidiaries to, refrain from taking, directly or indirectly, any action that is reasonably likely to result in the failure of any of the conditions contained in the Financing Commitments (or the Alternate Financing Commitments, if applicable) or in any definitive agreements agreement related thereto (including by consummating the Equity Financing at or prior to the Financing. Without limiting the generality of the foregoing, Buyer shall not have drawn more than $600,000,000 under the revolving credit facility under the Existing Credit Agreement (as defined in the Financing Commitments) as of the Closing (without giving effect to any amounts drawn to fund the Cash Consideration). (b) For the avoidance of doubt and notwithstanding anything to the contrary in this Section 6.06, Buyer acknowledges and agrees that its obligation to consummate the Transactions on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) herein are not conditioned upon the satisfaction availability or waiver consummation of the conditions Financing, the availability of any replacement commitments or receipt of the proceeds therefrom and, accordingly, the parties hereto agree that a failure of Buyer to Parent’s and Merger Sub’s obligations close the Transactions due to the failure or inability to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, constitutes a breach of this Agreement. (vc) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Buyer shall not, without the prior written consent of the Company, not agree to or permit any termination of or amendment, supplement or other modification to be made toof, or grant waive any waiver of any provision its rights under, any Financing Commitments (or the Alternate Financing Letters Commitments, if applicable) or the definitive agreements relating to the Financing if except (i) with Seller’s prior written consent, which consent shall not be unreasonably withheld, (ii) to the extent such terminationmodification or waiver is not materially adverse to Seller or (iii) to add additional Financing Sources who had not executed the Financing Commitments as of the date hereof and amend the allocation of economics or other related terms with respect to the existing and additional Financing Sources, provided that, in the case of clauses (ii) and (iii), such amendment, supplement, modification or waiver would does not (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters Commitments on the date of this Agreement hereof unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount), (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would could reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on at the Principal Closing Date or (C) adversely impact the ability of Parent Buyer or Merger Sub, as applicable, any of its Affiliates to enforce its rights against the other parties to the Financing Letters Commitments (or the Alternate Financing Commitments) or the definitive agreements with respect to the Financing. Parent . (d) If any portion of the Financing becomes unavailable on the terms and conditions (including the “market flex” provisions) contained in the Financing Commitments (or the Alternate Financing Commitments, if applicable), Buyer shall promptly notify Seller, and Buyer shall, and shall cause its Affiliates to, use commercially reasonable efforts to obtain, as promptly as practicable following the occurrence of such event, replacement commitments on terms that will enable Buyer to consummate the Transactions and that are not less favorable in the aggregate to Buyer than those contained in the Financing Commitments; provided that such replacement commitments shall not (i) be subject to any additional or modified conditions or other contingencies to the funding of the Financing other than those contained in the Financing Commitments or (ii) otherwise be reasonably likely to impair or delay the funding of the Financing or the Principal Closing. Buyer shall deliver to the Company Seller complete and correct copies of all amendments, supplements, other modifications or agreements (including Redacted Fee Letters) pursuant to which any amendmentamended, modificationsupplemented, supplementmodified or replacement commitments shall provide Buyer with any portion of the Financing. (e) Seller shall, and shall cause its Affiliates to, and shall cause its and their employees to, use commercially reasonable efforts to provide, and shall direct its and their accountants, legal counsel, other advisors and representatives to use commercially reasonable efforts to provide, all cooperation in connection with the arrangement of the Financing as may be reasonably requested by Buyer, including delivering to Buyer the Marketing Financial Information and using commercially reasonable efforts to (i) deliver to Buyer (A) the financial information described in Schedule 6.06(e) by the dates indicated on Schedule 6.06(e) and (B) by the date that is fifteen (15) calendar days after the last day of each calendar month, a statement of sales with respect to the Business on a monthly basis consistent with such financial information previously provided to Buyer by Seller, (ii) upon reasonable notice, cause Employees of the Business to participate in a reasonable number of meetings and presentations with prospective lenders and investors, and sessions with the ratings agencies contemplated by the Financing Commitments, (iii) reasonably assist Buyer and the Financing Sources in their preparation of (A) any bank information memoranda and related lender presentations, and similar documents required in connection with the Financing, and (B) materials for rating agency presentations (provided that Buyer acknowledges and agrees that no such memoranda, documents, presentations or other materials prepared in connection with the Financing may include any report or opinion of Seller’s independent auditors or otherwise include any reference to Seller’s independent auditors), (iv) reasonably assist Buyer in connection with the preparation of any pledge and security documents and other definitive financing documents as may be reasonably requested by Buyer or the Financing Sources (including using reasonable best efforts to obtain title and lien searches) and otherwise reasonably facilitating the pledging of collateral and the granting of security interests in respect of the Financing, (v) provide Buyer all documentation and other information with respect to Seller and its Subsidiaries as shall have been reasonably requested in writing by Buyer at least ten (10) business days prior to the Principal Closing Date that is required in connection with the Financing by U.S. regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act, to the extent required under the Financing Commitments and applicable to Seller and its Subsidiaries, and (vi) provide executed authorization letters to the Financing Sources authorizing the distribution of information to prospective lenders or investors and containing a representation to the Financing Sources that the public side versions of such documents, if any, do not include material non-public information about Seller or its Subsidiaries or securities and executing ratings agency engagement letters as required in connection with the Financing (provided, that Seller shall not be required to pay any cost or expenses relating to rating agency engagement letters). Notwithstanding the foregoing, (i) such requested cooperation shall not unreasonably interfere with the ongoing operations of Seller and its Affiliates and (ii) in connection with such requested cooperation, Seller and its Affiliates shall not be required to provide any financial statements or financial information in respect of the Business other than the Marketing Financial Information, and to use commercially reasonable efforts to provide to Buyer (A) the financial information described in Schedule 6.06(e) by the dates indicated on Schedule 6.06(e) and (B) by that date that is fifteen (15) calendar days after the last day of each calendar month, a statement of sales with respect to the Business on a monthly basis consistent with such financial information previously provided to Buyer by Seller. Buyer shall, promptly upon request by Seller, reimburse Seller for all out-of-pocket costs incurred by Seller or any of its Affiliates in connection with such cooperation. In the event that Buyer is provided with any report or opinion of Seller’s independent auditors, Buyer shall not provide such report or opinion or any portion thereof to any of the Financing Sources unless such Financing Sources have executed and delivered to Seller and Seller’s independent auditors an acknowledgment substantially in the form previously provided to Buyer. Buyer and its Affiliates shall, on a joint and several basis, indemnify and hold harmless Seller and its Affiliates from and against any Damages suffered or incurred by them in connection with the arrangement of the Financing and any information utilized in connection therewith. Seller shall have the right to consent to the use of the Transferred Trademarks (but not any other trademarks or waiver logos of Seller or any of its Affiliates) in connection with the Financing (which consent shall not be unreasonably withheld, conditioned or delayed); provided nothing in this sentence shall restrict Buyer from using Seller trademarks in a descriptive manner to describe the Transactions. (f) Buyer shall keep Seller informed on a timely basis of the status of the Financing and any material developments relating to the Financing. Without limiting the generality of the foregoing, Buyer shall give Seller prompt notice of (i) any default or breach (or any event that, with or without notice, lapse of time or both, would reasonably be expected to constitute a default or breach) by any party under the Financing Commitments (or any Alternate Financing Letter Commitment, if applicable) or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything of which Buyer becomes aware, (ii) any termination of the Financing Commitments (or any Alternate Financing Commitment, if applicable), (iii) the receipt of any written notice or other written communication from any Person party to a Financing Commitment (or any Alternate Financing Commitment, if applicable) with respect to any (x) actual or potential default, breach, termination or repudiation of any Financing Commitment (or any Alternate Financing Commitment, if applicable), any definitive agreement relating to the contrary Financing or any provision of the Financing Commitments (or the Alternate Financing Commitments, if applicable), in this Agreementeach case by any party thereto, nothing contained or (y) material dispute or disagreement between or among any parties to any Financing Commitment (or any Alternate Financing Commitment, if applicable), with respect to the obligation to fund the Financing, including any condition with respect to the obligation to fund the Financing, or the amount of Financing to be funded at the Principal Closing Date, and (iv) if for any reason Buyer believes in this Section 5.04 shall requiregood faith that it will not be able to obtain all or any portion of the Financing on the terms, in the manner or from the sources contemplated by the Financing Commitments (or the Alternate Financing Commitments, if applicable). As soon as reasonably practicable, and in no event any event, within two (2) business days after the date Seller delivers to Buyer a written request, Buyer shall the reasonable best efforts of Parent or Merger Sub be deemed or construed provide any information reasonably requested by Seller relating to require, either Parent or Merger Sub any circumstance referred to in clause (i), (ii), (iii) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (iiiv) pay of the immediately preceding sentence. (g) Buyer acknowledges that the information being provided to it in connection with the Financing is subject to the terms of Section 6.05. With respect to information disclosed to any material fees rating agency (the “Confidential Rating Agency Information”), Buyer shall inform such rating agency of the confidential nature of the Confidential Rating Agency Information and ▇▇▇▇ any such information provided in excess writing to such rating agency as “confidential”. Buyer shall be responsible for any breach of those contemplated this covenant by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)such rating agency.

Appears in 1 contract

Sources: Asset Purchase Agreement (Integra Lifesciences Holdings Corp)

Financing. (a) Each of Holdco and Parent and Merger Sub shall use its commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersDocuments and shall not permit any amendment or modification to be made to, including using reasonable best efforts to or any waiver of any provision or remedy under any Financing Document (provided, however, that Holdco, Parent and Merger Sub may replace, amend or supplement the Debt Financing Agreement, if such replacements, amendments or supplements, individually or in the aggregate, would not (i) maintain in effect and comply with expand upon the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect conditions precedent to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) as set forth in the Debt Commitment Letter Financing Agreement in any way or (ii) prevent or on other terms that, with respect to conditionality, are not less favorable to Parent impair the availability of the financing or Merger Sub than materially delay the terms and conditions (including market “flex” provisions) set forth in financing under the Debt Commitment LetterFinancing Agreement or the consummation of the transactions contemplated by this Agreement), including using commercially reasonable efforts to (iii1) maintain in full force and effect the Financing Documents until the transactions contemplated by this Agreement are consummated, (2) satisfy on a timely basis all conditions and covenants applicable to Holdco, Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto Documents (including by consummating the financing pursuant to the terms of the Equity Financing ) and otherwise comply with its obligations thereunder, (3) enter into notes, security agreements, guarantees and other definitive agreements as required by the Debt Financing Agreement (“Ancillary Debt Agreements”) on the terms and conditions contemplated by the Debt Financing Agreement, (4) consummate the Financing at or prior to Closing, and (5) assuming all terms and conditions in the Debt Financing Agreement have been satisfied, cause the Financing Sources and other persons providing Debt Financing to fund on the Closing Date the Debt Financing required to consummate the Merger and the other transactions contemplated hereby. For purposes of this Section 6.13, references to “Financing” shall include the financing contemplated by the Financing Documents as permitted in the case of the Debt Financing Agreement, to be replaced, amended or supplemented by this Section 6.13(a), and references to “Financing Documents” and “Debt Financing Agreement” shall include such documents as permitted to be replaced, amended or supplemented by this Section 6.13(a). (b) Without limiting the generality of Section 6.13(a), Holdco, Parent and Merger Sub shall give the Company prompt notice: (i) of any material breach or default (or any event or circumstance that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any breach or default) by any party to any Financing Document, or any Ancillary Debt Agreement, which would be reasonably likely to result in any condition of the Financing Documents or any Ancillary Debt Agreement not to be satisfied or the termination of any Financing Document, of which Holdco, Parent or Merger Sub becomes aware; (ii) of the receipt of any written notice or other written communication from any party to any Financing Document with respect to any alleged or potential breach, default, termination or repudiation by any party to any Financing Document or any Ancillary Debt Agreement or any provisions of the Financing Document or any Ancillary Debt Agreement related to the Financing which could result in any condition of the Financing Documents not to be satisfied or the termination of any Financing Document; (iii) of any material dispute or disagreement between or among any parties to the Financing Documents; and (iv) if Holdco, Parent or Merger Sub at any time believes that it will not be able to obtain all or any portion of the Financing on the terms, in the manner or from the sources contemplated by the Financing Documents. As soon as reasonably practicable after the date the Company delivers to Holdco, Parent or Merger Sub a written request therefor, Holdco, Parent and Merger Sub shall provide notice of the circumstance referred to in clause (i), (ii), (iii) or (iv) of the immediately preceding sentence. If any portion of the Debt Financing becomes unavailable on the terms and subject conditions contemplated in the Debt Financing Agreement, Parent shall use its commercially reasonable efforts to arrange and obtain alternative debt financing from alternative debt financing sources in an amount sufficient to consummate the transactions contemplated by this Agreement on terms and conditions not less favorable, taken as a whole, to Holdco, Parent and Merger Sub than those in the Debt Financing Agreement as promptly as practicable following the occurrence of such event but no later than the second Business Day immediately prior to the conditions set forth Closing Date. Parent shall keep the Company informed on a reasonably current basis in reasonable detail of the Equity Funding Letterstatus of its efforts to arrange the alternative debt financing. (c) Prior to the Closing, the Company shall, and shall cause the Company Subsidiaries to, use commercially reasonable efforts to provide to Parent and Merger Sub, at Parent’s sole expense, all reasonable cooperation reasonably requested by Parent that is necessary in connection with the Financing, including (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable i) promptly furnishing to Parent and Merger Sub contained in such and their Financing Sources the financial statements required to be delivered to the lenders party thereto under the Debt Commitment Letter or such definitive agreements related thereto)Financing Agreement, (ivii) upon facilitating the satisfaction or waiver pledging of collateral in connection with the conditions to Parent’s Debt Financing as reasonably requested by Parent and Merger Sub’s obligations to consummate the Offer its Financing Sources and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating customary for financings similar to the Financing (provided that no such pledge shall be effective prior to the Effective Time), and (viiii) otherwise comply facilitating the execution and delivery at the Closing of the Ancillary Debt Agreements related to the Debt Financing as required by the Debt Financing Agreement; provided, however, that, (a) irrespective of the above, no obligation of the Company or any of the Company Subsidiaries under any Financing Document, Ancillary Debt Agreement, certificate or other document or instrument shall be effective until the Effective Time and none of the Company or any of the Company Subsidiaries shall be required to take any action under any Financing Document, Ancillary Debt Agreement, certificate or other document or instrument that is not contingent upon the Closing (including the entry into any agreement that is effective before the Effective Time) or that would be effective prior to the Effective Time, (b) nothing herein shall require such cooperation to the extent it would interfere unreasonably with Parent’s the business or operations of the Company or the Company Subsidiaries, (c) none of the Company or any of the Company Subsidiaries shall be required to issue any offering or information document prior to the Effective Time, and Merger Sub’s covenants and other obligations under (d) none of the Company or any of the Company Subsidiaries shall be required to take any corporate action in connection with the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive Contribution. The term “Financing Sources” means the entities that have committed to provide or otherwise entered into agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless in connection with the Debt Financing or other financings (other than the Equity Financing is increased and the Contribution Agreement) in connection with the transactions contemplated hereby, including the parties to the Debt Financing Agreement and any joinder agreements or Ancillary Debt Agreement relating thereto. None of the Company or any of the Company Subsidiaries shall be required to take any action that would 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) or incur any other liability or provide or agree to provide any indemnity in connection with the Financing or any of the foregoing prior to the Effective Time. Holdco, Parent and Merger Sub shall on a joint and several basis indemnify and hold harmless the Company, the Company Subsidiaries and the Representatives from and against any and all liabilities, losses, damages, claims, costs, expenses, interest, awards, judgments and penalties suffered or incurred by a corresponding amount) such that them in connection with the aggregate amount arrangement of the Financing would be below and the amount required to pay the Required Amount, Contribution (Bincluding any action taken in accordance with this Section 6.13(c)) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify and any of the conditions precedent to the Financing information utilized in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing connection therewith (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver than historical information relating to the Company copies of any amendmentprovided by the Company). Holdco and Parent shall, modificationpromptly upon request by the Company, supplement, consent or waiver to or under any Financing Letter reimburse the Company for all documented and reasonable out-of-pocket costs incurred by the Company or the definitive agreements Company Subsidiaries in connection with this Section 6.13(c). In no event shall Holdco, Parent or any of their affiliates prohibit or seek to prohibit any bank or investment bank or other potential provider of debt or equity financing, including the Financing Sources, from providing financing or financial advisory services to any Person in connection with a transaction relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent Company or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, its subsidiaries or in any amount in excess of that contemplated by, connection with the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter Merger or the Debt Commitment Letter (including any market “flex” provisions contained therein)other transactions contemplated hereby.

Appears in 1 contract

Sources: Merger Agreement (Fushi Copperweld, Inc.)

Financing. (a) Each Subject to the terms and conditions of this Agreement, Parent shall and Merger Sub shall use reasonable best efforts cause each of its Subsidiaries to take, or cause to be taken, all actions appropriate actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate obtain funds sufficient to fund the Financing Amounts on or prior to the date on which the Merger is required to be consummated pursuant to the terms hereof (taking into account the anticipated timing of the Marketing Period). In furtherance and not in limitation of the foregoing, Parent shall take, or cause to be taken, all reasonable actions and do, or cause to be done, all things necessary, proper or advisable to obtain the proceeds of the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent than those contained in the Commitment Letters and the Fee Letter (including any “market flex” provisions that are contained in the Fee Letter) as promptly as possible (taking into account the anticipated timing of the Marketing Period) but in any event prior to the date on which the Merger is required to be consummated pursuant to the terms hereof, including by (i) maintaining in effect the Commitment Letters (subject to Parent’s right to replace, restate, supplement, modify, assign, substitute, waive or Merger Sub than amend the Commitment Letters in accordance herewith), (ii) negotiating and entering into definitive agreements with respect to the Financing (the “Definitive Agreements”) on terms and conditions not less favorable to Parent than those contained therein (including market including, as necessary, the “flex” provisionsprovisions contained in any related fee letter) set forth in the Debt Commitment Letter)and without any Prohibited Modification, (iii) satisfy satisfying on a timely basis (taking into account the anticipated timing of the Marketing Period), or otherwise obtaining waiver of, all conditions applicable to Parent and Merger Sub in the Financing Commitment Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms Definitive Agreements that are within Parent’s control and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent complying with its obligations thereunder and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce enforcing its rights under the Financing Letters and the definitive agreements relating to the Financing and Commitment Letters. (vib) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. ParentOther than as set forth in this Section 7.14(b) or Section 7.14(c), Merger Sub and the Guarantors shall notneither Parent nor any of its Subsidiaries shall, without the prior written consent of the Company, permit, consent to or agree to or permit any termination of or amendment, supplement replacement, supplement, termination or modification to be made to, or grant any waiver of, any provision or remedy under (i) the Equity Commitment Letters, (ii) the Preferred Equity Commitment Letter or (iii) the Debt Commitment Letter or the Definitive Agreements (it being understood that the exercise of any provision under“market flex” provisions contained in the Fee Letter shall not be deemed an amendment, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendmentreplacement, supplement, termination, modification or waiver) if, in the case of clauses (ii) and (iii) hereof, such amendment, replacement, supplement, modification, waiver would or remedy (A) reduce adds new (or adversely modifies any existing) conditions to the aggregate amount consummation of all or any portion of the Financing Financing, (including by increasing B) reduces the aggregate principal amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or the Preferred Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountFinancing, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact affects the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters Debt Commitment Letter, Preferred Equity Commitment Letter or the definitive agreements Definitive Agreements as so amended, replaced, supplemented or otherwise modified or (D) could otherwise reasonably be expected to prevent, impede or delay the consummation of the Merger and the other transactions contemplated by this Agreement (the effects described in clauses (i) through (iii), collectively, the “Prohibited Modifications”), provided that Parent may replace, amend, supplement or modify (x) the Debt Commitment Letter to add lenders, lead arrangers, bookrunners, syndication agents or similar entities (or titles with respect to such entities) that have not executed the FinancingDebt Commitment Letter as of the date of this Agreement (it being understood that the aggregate commitments of the lenders party to the Debt Commitment Letter prior to such replacement, amendment, supplement or modification may be reduced in the amount of such additional party’s commitments if such entities are of similar creditworthiness as the Financing Parties that have executed the Debt Commitment Letter prior to such replacement, amendment, supplement or modification) and (y) the Preferred Equity Commitment Letter to add investors or similar entities (or titles with respect to such entities) that have not executed the Preferred Equity Commitment Letter as of the date of this Agreement (it being understood that the aggregate commitments of the investors party to the Preferred Equity Commitment Letter prior to such replacement, amendment, supplement or modification may be reduced in the amount of such additional party’s commitments if such investors are of similar creditworthiness as the Financing Parties that have executed the Preferred Equity Commitment Letter prior to such replacement, amendment, supplement or modification). Parent shall reasonably promptly deliver to the Company copies of any amendment, modificationreplacement, supplement, consent termination, modification or waiver to or under the Commitment Letters and/or Definitive Agreements. (c) In the event that any Financing Letter or the definitive agreements relating to portion of the Financing promptly upon execution thereof. Notwithstanding anything to becomes unavailable, regardless of the contrary in this Agreementreason therefor, nothing contained in this Section 5.04 Parent shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek promptly notify the Equity Financing from any source other than Company in writing of such unavailability and the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or reason therefor and (ii) pay use reasonable best efforts, and cause each of its Subsidiaries to use their reasonable best efforts, to arrange and obtain, as promptly as practicable following the occurrence of such event, alternative financing for any material fees such unavailable portion from the same or alternative sources (the “Alternative Financing”) in excess an amount sufficient, when taken together with the available portion of those the Financing, to consummate the transactions contemplated by this Agreement and to pay the Equity Funding Letter Financing Amounts and that does not include any Prohibited Modifications; provided that Parent shall not be required to arrange or obtain any Alternative Financing having terms and conditions (including “market flex” provisions) materially less favorable, taken as a whole, to Parent than those contained in the Debt Commitment Letter (and/or the Preferred Equity Commitment Letter, as applicable, and the related Fee Letter. Parent shall provide the Company with prompt notice of any actual breach, default, cancellation, termination or repudiation by any party to the Commitment Letters or any Definitive Agreement. Upon the Company’s request, Parent shall keep the Company reasonably informed on a current basis of the status of its efforts to consummate the Financing, including any market Alternative Financing. (d) To the extent Parent obtains Alternative Financing or amends, replaces, supplements, terminates, modifies or waives any of the Financing, in each case pursuant to this Section 7.14 and without any Prohibited Modification, references to the “flexFinancing,” provisions contained therein)“Financing Parties,” “Commitment Letters” and “Definitive Agreements” (and other like terms in this Agreement) shall be deemed to refer to such Alternative Financing, the commitments thereunder and the agreements with respect thereto, or the Financing as so amended, replaced, supplemented, terminated, modified or waived.

Appears in 1 contract

Sources: Merger Agreement (Janus Henderson Group PLC)

Financing. (a) Each of Parent and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or and advisable to consummate and obtain the proceeds of the Financing prior to the Outside Date on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitment Letter, including using its reasonable best efforts to to: (i) maintain in effect and comply the Commitment Letter in accordance with the Financing Letters, terms and subject to the conditions thereof; (ii) negotiate and enter into all of the definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection Financing (the “Definitive Agreements”) consistent with the funding of terms and conditions contained therein (including, as necessary, the Debt Financing“flex” provisions contained in any related fee letter) on or prior to the Closing Date or on other terms no less favorable to the Parent taken as a whole (including with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letterconditionality thereof), ; (iii) satisfy on a timely basis (or obtain a waiver to) all conditions to funding that are applicable to Parent and Merger Sub its Subsidiaries in the Financing Letters Commitment Letter and the definitive agreements related thereto (including by consummating the Equity Financing at or prior Definitive Agreements with respect to the Closing on Financing contemplated by the terms and subject to the conditions set forth in the Equity Funding Commitment Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), , (iv) upon fully pay, or cause to be fully paid, all commitment or other fees arising pursuant to the satisfaction or waiver of Commitment Letter as and when they become due; (v) comply with its obligations in the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer Commitment Letter and the Merger, Definitive Agreements and enforce its rights under the Commitment Letter and Definitive Agreements; and (vi) consummate the Financing contemplated by the Commitment Letter and Definitive Agreements substantially concurrently with the Closing. (b) In the event that all conditions contained in the Commitment Letter have been satisfied (or upon such funding will be satisfied), Parent shall use reasonable best efforts to cause the lenders and the other Persons committing Lenders to fund the Financing to fund the Financing at extent required to consummate the Closing, (v) enforce its rights under transactions contemplated by this Agreement and to pay related fees and expenses on the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise Closing Date. Parent shall comply with Parent’s and Merger Sub’s covenants and other its obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Commitment Letter. (c) Parent shall not, without the prior written consent of the CompanyCompany (not to be unreasonably withheld, agree to conditioned or delayed): (i) permit any termination of or amendment, replacement, supplement or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Letters or Commitment Letter (or, following entry into the definitive agreements relating Definitive Agreements related to the Financing Financing, such Definitive Agreements) if such terminationamendment, amendmentreplacement, supplement, modification or waiver would (A) reduce individually or in the aggregate amount with any other amendments, modifications or waivers) would reasonably be expected to (v) add any new or additional (or otherwise expand, amend or modify any existing) conditions to the consummation of all or any portion of the Financing, (w) reduce the amount of the Financing below the amount required, together with cash on hand, to consummate the transactions contemplated hereby (including by increasing changing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountthereof), (Bx) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent make the funding of any portion of the Financing (or satisfaction of the conditions any condition to obtaining any portion of the Financing) on the Closing Date or materially less likely to occur, (Cy) adversely impact affects in any material respect the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters Commitment Letter or the definitive agreements with respect Definitive Agreements as so amended, replaced, supplemented or otherwise modified, relative to the Financingability of Parent to enforce its rights against such other parties to the Commitment Letter as in effect on the date hereof or in the Definitive Agreements, or (z) impede or delay in any material respect the consummation of the transactions contemplated by this Agreement or otherwise make the Financing materially less likely to occur; or (ii) terminate, rescind or withdraw, or permit the termination, rescission or withdrawal of, any Commitment Letter, unless such Commitment Letter is replaced with a new commitment that, were it structured as an amendment to an existing Commitment Letter, would satisfy the requirements of the foregoing clause (i). For the avoidance of doubt, nothing herein shall prevent Parent from replacing or amending the Commitment Letter in order to add lead arrangers, bookrunners, syndication agents or similar entities which had not executed the Commitment Letter as of the date hereof or as required pursuant to the market flex provisions in the related fee letters. Parent shall promptly deliver to the Company copies of any such amendment, modification, supplement, consent waiver or waiver replacement. (d) In the event that any portion of the Financing becomes (or would reasonably be expected to become) unavailable on the terms and conditions set forth in the Commitment Letter, regardless of the reason therefor, Parent will (i) promptly notify the Company of such unavailability and the reason therefor and will use reasonable best efforts, as promptly as reasonably practicable following the occurrence of such event, to obtain alternative debt financing (in an amount sufficient, together with cash on hand, to consummate the transactions contemplated by this Agreement and to pay related fees and expenses) from the same or under any Financing other sources that are on terms that are no less favorable, taken as a whole, to Parent than those set forth in the Commitment Letter or the Definitive Agreements, as applicable (the Alternative Financing), and (ii) obtain one or more new financing commitment letters with respect to such Alternative Financing (the New Commitment Letters), which New Commitment Letters will replace the existing Commitment Letter in whole or in part. Parent shall promptly provide the Company with a copy of any New Commitment Letters (and any redacted fee letter in connection therewith). For the purposes of this Agreement, (x) the term Commitment Letter shall be deemed to include any New Commitment Letter (or similar agreement) with respect to any alternative debt financing arranged in compliance herewith (and any Commitment Letter remaining in effect at the time in question), as well as all amendments, modifications and supplements permitted under this Agreement, (y) the term Financing shall be deemed to include any such alternative debt financing, and (z) the term Lenders shall be deemed to include the financing sources providing any such alternative debt financing. The Parent and Merger Sub shall be subject to the same obligations with respect to such Alternative Financing as are set forth in this Section 5.17 with respect to the Financing. (e) To the extent requested, Parent shall keep the Company reasonably informed on a reasonably current basis of the status of its efforts to arrange the Financing. Parent shall provide the Company with copies of all executed definitive agreements relating related to the Financing. Without limiting the generality of the foregoing, Parent shall provide the Company with prompt notice (and in any event within two (2) Business Days) (i) of any material breach or default by any party to any Commitment Letter or the Definitive Agreements of which Parent becomes aware, (ii) of the receipt of any written notice or other written communication from any Lender with respect to any (1) breach, default, termination or repudiation by any party to the Commitment Letter or the Definitive Agreements of any provision thereof (but excluding, for the avoidance of doubt, any ordinary course negotiations with respect to the terms of the Financing or Definitive Agreements) or (2) material dispute or disagreement between or among any parties to the Commitment Letter or any definitive agreements related to the Financing promptly upon execution thereof. Notwithstanding anything but only to the contrary extent that the Parent believes in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall good faith that (X) it will not be able to obtain any portion of the reasonable best efforts Financing as a result of Parent such dispute or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, disagreement or (iiY) pay the Closing could reasonably be expected to be delayed or prevented as a result of such dispute or disagreement, (iii) if and when Parent becomes aware that any material fees in excess portion of those the Financing contemplated by the Equity Funding Commitment Letter or may not be available, (iv) if for any reason Parent believes in good faith that it will not be able to obtain any portion of the Debt Financing on the terms, in the manner and from the sources contemplated by the Commitment Letter (including any market “flex” provisions contained therein)related flex terms) and (v) of any expiration or termination of the Commitment Letter or other Definitive Agreement; provided that any information disclosed in such notice shall be subject to the confidentiality covenants set forth in Section 5.03. Notwithstanding the foregoing and subject to Section 8.12(b) hereof, compliance by Parent with thisSection 5.17 shall not relieve Parent of its obligation to consummate the transactions contemplated by this Agreement whether or not the Financing is available and Parent acknowledges that this Agreement and the transactions contemplated hereby are not contingent on Parent’s ability to obtain the financing (or any alternative financing) or any specific term with respect to such financing.

Appears in 1 contract

Sources: Merger Agreement (Sykes Enterprises Inc)

Financing. (a) Each of Prior to the Closing, Parent and Merger Sub shall use their reasonable best efforts to takeobtain the Financing, including entering into definitive agreements with respect thereto on the terms and conditions set forth in the Financing Commitments or such other terms as may be acceptable to Parent in its sole discretion (provided that the same or more favorable terms than those set forth in the Financing Commitments shall be deemed acceptable to Parent). In the event that any portion of the Financing becomes unavailable so as not to enable Parent and Merger Sub to proceed with the Transactions in a timely manner, Parent and Merger Sub shall use their reasonable best efforts to arrange to obtain alternate financing from alternative sources on terms and conditions acceptable to Parent in its sole discretion (provided that the same or more favorable terms than those set forth in the Financing Commitments shall be deemed acceptable to Parent) as promptly as practicable following the occurrence of such event, including entering into definitive agreements with respect thereto (such definitive agreements entered into pursuant to the first or second sentence of this Section 6.9(a) being referred to as the “Definitive Financing Agreements”); provided that nothing in this Section 6.9(a) shall be deemed to require ▇▇▇▇ to provide a greater amount of equity financing than is contemplated by the Equity Commitment. Parent and Merger Sub shall, shall cause their Affiliates to, and shall use their reasonable best efforts to cause their Representatives to, comply with the terms and satisfy on a timely basis the conditions of the Financing Commitments, the Definitive Financing Agreements, any alternate financing commitment and any related fee and engagement letters. Parent shall (i) furnish complete, correct and executed copies of the Definitive Financing Agreements to the Company promptly upon their execution, (ii) give the Company prompt notice of any breach by any party of any of the Financing Commitments, any alternate financing commitment or the Definitive Financing Agreements of which Parent or Merger Sub becomes aware or any termination thereof and (iii) otherwise at the reasonable request of the Company inform the Company of the status of its efforts to arrange the Financing (or any replacements thereof). (b) From and after the date of this Agreement until the earlier of the Effective Time or the termination of this Agreement in accordance with Section 8.1, the Company shall, and shall cause the Company Subsidiaries to, at Parent’s sole expense (except as provided in the fourth sentence of this Section 6.9(b)), reasonably cooperate with Parent and Parent’s Affiliates in connection with the arrangement of the Financing (or any replacements thereof), including (i) participation in due diligence sessions, meetings, drafting sessions, management presentation sessions, “road shows”, and sessions with rating agencies by Company officers and employees, (ii) assisting Parent in obtaining any title insurance lien waivers, estoppels, affidavits, non-disturbance agreements, memoranda of leases, legal opinions, surveys or other documents or deliveries, (iii) using reasonable best efforts to prepare business projections, financial statements, pro forma statements and other financial data of the type required by Regulation S-X and Regulation S-K under the Securities Act of the type and form consistently included in offering memoranda, private placement memoranda, prospectuses and similar documents, all as may be reasonably requested by Parent, (iv) the execution and delivery of underwriting or placement agreements, loan agreements, note purchase agreements, registration rights agreements, indentures and related documents, including a certificate of the chief accounting officer of the Company with respect to solvency matters, and using reasonable best efforts to obtain accountants’ comfort letters and consents of accountants for use of their reports in any materials relating to the Debt Commitment, all as may be reasonably requested by Parent, (v) reasonably facilitating the pledging of collateral and (vi) providing the financial information necessary for the satisfaction of the obligations and conditions set forth in the Debt Commitments within the time periods required thereby in order to permit a Closing Date on or prior to the date set forth in Section 8.1(b)(2), which obligation shall include, in all events, providing the financial information required pursuant to the terms of the Debt Commitments; provided, however, that (x) such requested cooperation shall not unreasonably interfere with the ongoing operations of the Company and the Company Subsidiaries and (y) neither the Company nor any Company Subsidiary shall be required to make any payment or expenditure in connection with the financing cooperation described in this Section 6.9(b) in excess of $250,000 in the aggregate (the “Financing Cooperation Expense Cap”). The parties agree that the effectiveness of any documents referred to in the preceding sentence shall be subject to the consummation of the Closing. Without limiting the foregoing provisions of this Section 6.9(b), (i) the Company shall, and shall cause each of the Company Subsidiaries to, reasonably cooperate with Parent’s financing sources and their representatives in connection with the completion of an inventory appraisal and a field examination customary for inventory and receivables financings (each of which shall be conducted during normal business hours (so long as not disruptive to the Company’s operations) and after reasonable prior notice, and (ii) (x) the Company and its counsel shall be given reasonable opportunity to review and comment upon any offering memorandum that includes information about the Company prepared in connection with the Financing (and the Parent shall not disseminate any offering memorandum relating to any offering of the Company’s or any Company Subsidiary’s securities under Rule 144A of the Securities Act without the prior consent of the Company, which consent shall not be unreasonably withheld), and (y) Parent and Merger Sub and their counsel shall be given reasonable opportunity to review and comment upon any offering memorandum prepared in connection with any financing undertaken by the Company to finance the Dividend. In the event that this Agreement is terminated by the Company pursuant to Section 8.1(c)(ii) or Parent terminates this Agreement pursuant to Section 8.1(b)(ii), Parent shall, promptly upon request by the Company, reimburse the Company for all reasonable out-of-pocket costs incurred by the Company or the Company Subsidiaries in connection with such financing cooperation, including all amounts up to and including the Financing Cooperation Expense Cap, and provided further, that if this Agreement is terminated for any reason, Parent shall use its best efforts to cause the voiding, termination and/or destruction of all documents executed by the Company in connection with such financing cooperation, and shall reimburse the Company for all costs and expenses incurred by the Company in connection therewith. Notwithstanding anything in this Agreement to the contrary, neither the Company nor any of the Company Subsidiaries shall be required to pay any commitment or other similar fee or incur any other Liability in connection with the Financing (or any replacements thereof) prior to the Effective Time (except as expressly set forth above with respect to the Financing Cooperation Expense Cap). Furthermore, notwithstanding the foregoing, neither the Company or any of the Company Subsidiaries, nor any of their respective officers or directors shall be required to execute any certificate, representation letter or other certification, or to deliver, or cause to be takendelivered, all actions and any legal opinion to dothe extent the Company determines in good faith that, under the circumstances, the execution of such certificate, letter or other certification, or cause to be done, all things necessary, proper delivery of such opinion is not customary or advisable to consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)unreasonable.

Appears in 1 contract

Sources: Merger Agreement (COHOES FASHIONS of CRANSTON, Inc.)

Financing. (ai) Each of Parent and Merger Sub shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, done all things necessarynecessary to arrange, proper or advisable to obtain and consummate and obtain the Financing on the terms and subject only to conditions described in the conditions Commitment Letters (including the market exercise of so-called “flex” provisions) set forth provisions in the Financing Lettersrelated fee letter) as promptly as practicable (taking into account the timing of the Marketing Period), including using reasonable best efforts to (i) maintain in full force and effect the Commitment Letters until consummation of the Transactions (except that Parent may agree to any modification or amendment of the Commitment Letters solely as permitted pursuant to Section 6.5(b)(iii)) and comply with the Financing Letters, (ii) to negotiate and enter into execute definitive agreements (which, with respect to the bridge facility documentationFinancing on the terms contained in the Commitment Letters (including any “flex” provisions applicable thereto) or on terms that are no less favorable, in any material respect, to Parent than the terms contained in the Commitment Letters (including any “flex” provisions applicable thereto), in each case which terms shall not be required until determined by Parent in any adverse respect change, expand or impose new conditions to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect Financing at the Closing or reduce the aggregate amount of the Financing available to the Debt Financing be funded on the terms and subject only to Closing Date or materially affect the conditions timing of the Closing Date (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment LetterFinancing Agreements”), (iiiii) satisfy on a timely basis (taking into account the timing of the Marketing Period) all conditions applicable to Parent and Merger Sub in the Financing Commitment Letters and such Financing Agreements which are in their control and to consummate the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)Closing, (iviii) upon enforce their rights under the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer Commitment Letters and the Merger, consummate Financing Agreements including by taking enforcement action to cause the Financing and cause the Sources, lenders and the other Persons committing to fund provide the Financing to fund comply with their obligations under the Commitment Letters and the Financing Agreements and to fund such Financing at Closing; provided, however, that Parent shall not be required to take any such enforcement action unless all conditions precedent set forth in Section 7.1 and Section 7.2 have been satisfied (other than those conditions that, by their nature, are to be satisfied at the Closing, ) and (viv) enforce its rights comply with their obligations in all material respects under the Financing Commitment Letters and the definitive agreements relating to Financing Agreements. Parent shall keep the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters MLP Entities and the definitive agreements relating ▇▇▇▇▇▇▇▇▇ Entities reasonably informed with respect to any material developments concerning the status of the Financing. Parent, Merger Sub Parent shall provide the MLP Entities and the Guarantors ▇▇▇▇▇▇▇▇▇ Entities, upon reasonable request, with copies of any primary material Financing Agreements and such other material information and documentation regarding the Financing as shall notbe reasonably necessary to allow the MLP Entities and the ▇▇▇▇▇▇▇▇▇ Entities to monitor the progress of such financing activities. (ii) Parent shall promptly (and in any event no later than three (3) Business Days after becoming aware thereof) notify the MLP Entities and the ▇▇▇▇▇▇▇▇▇ Entities in writing (i) of any material breach or default (or any event or circumstance that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any material breach or default) by any party to the prior written consent Commitment Letters or Financing Agreements of which the Parent Entities become aware, (ii) of the Companyreceipt by the Parent Entities or any of their controlled Affiliates or Representatives of any written notice or other written communication from any Financing Source, agree any lender or any other Person with respect to any (A) actual, threatened or alleged breach, default, termination or repudiation by any party to the Commitment Letters or any Financing Agreement (including any proposal by any Financing Source, lender or other Person to withdraw, terminate or reduce the amount of the Financing below the amount contemplated by the Commitment Letters) or (B) material dispute or disagreement between or among any parties to the Commitment Letters or any Financing Agreement (other than ordinary course negotiations), (iii) if for any reason Parent believe in good faith that it will not be able to obtain all or any portion of the Financing on the terms contemplated by the Commitment Letters or the Financing Agreements and (iv) of the termination or expiration of the Commitment Letters or any Financing Agreement. As soon as reasonably practicable, after the MLP Entities or the ▇▇▇▇▇▇▇▇▇ Entities deliver to Parent a written request, Parent shall provide any information reasonably requested by the MLP Entities or the ▇▇▇▇▇▇▇▇▇ Entities relating to any of the circumstances referred to in this Section 6.5(b)(ii). (iii) Parent shall not permit or consent to any termination of or amendment, supplement supplement, modification or modification waiver to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing Commitment Letters if such termination, amendment, supplement, modification or waiver would (A) change, expand or impose new conditions precedent to the funding of the Financing from those set forth therein on the date hereof, (B) materially delay the funding of the Financing thereunder or reasonably be expected to materially impair, delay or prevent the availability of all or a portion of the Financing or the consummation of the Transaction, (C) reduce the aggregate amount of any portion of the Financing (including by increasing changing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) except as set forth in any flex provisions existing on the Closing Date date hereof)) unless additional sources are then made available to finance such increase in fees or original issue discount or (CD) otherwise adversely impact affect the ability of the Parent Entities to consummate the Transactions or Merger Submaterially delay the timing of the Closing (collectively, as applicable, to enforce its rights against other parties the “Restricted Commitment Letter Amendments”) (except that subject to the Financing limitations set forth in this Section 6.5(b)(iii), Parent may replace, modify, supplement or amend the Commitment Letters to add lenders, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the definitive agreements with respect to Commitment Letters as of the Financing. Parent shall promptly deliver to the Company copies of any amendmentdate hereof, so long as such replacement, modification, supplement, consent supplement or waiver to or under any Financing amendment would not result in the occurrence of a Restricted Commitment Letter or the definitive agreements relating to the Financing promptly upon execution thereofAmendment). Notwithstanding anything to the contrary in For purposes of this Agreement, nothing contained in references to the “Commitment Letters” shall include such documents as permitted or required by this Section 5.04 shall require6.5(b)(iii) to be amended, modified or waived, in each case from and in no event shall the reasonable best efforts of Parent after such amendment, modification or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)waiver.

Appears in 1 contract

Sources: Purchase Agreement (Arc Logistics Partners LP)

Financing. (a) Each of Parent and Merger Sub Dorado shall use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange and consummate and obtain the Financing financing necessary for the Funds (the “Financing”) on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitment Letter, including using its reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent terms, covenants and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Commitment Letter; (ii) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such enter into definitive agreements related thereto), with respect thereto on the terms and conditions contemplated by the Commitment Letter; (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (viii) enforce its rights under the Commitment Letter; and (iv) consummate the Financing Letters on or prior to the Outside Date. Dorado will furnish correct and the complete copies of all such definitive agreements relating to Redfish promptly upon their execution. (b) Dorado shall keep Redfish informed with respect to all material activity concerning the status of the Financing contemplated by the Commitment Letter and shall give Redfish prompt notice of any material adverse change with respect to such Financing. Without limiting the generality of the foregoing, Dorado agrees to notify Redfish promptly, and in any event within two business days, if at any time (i) the Commitment Letter shall expire or be terminated, rescinded or withdrawn for any reason, (ii) any financing source that is a party to the Financing and Commitment Letter notifies Dorado that such source no longer intends to provide financing to Dorado on the terms set forth therein or (viiii) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under for any reason Dorado no longer believes in good faith that it will be able to obtain all or any portion of the Financing Letters and Funds on the definitive agreements relating to terms set forth in the FinancingCommitment Letter. Parent, Merger Sub and the Guarantors Dorado shall not, and shall not permit any of its affiliates to, without the prior written consent of Redfish, take or fail to take any action or enter into any transaction, including any merger, acquisition, joint venture, disposition, lease, contract or debt or equity financing, that could reasonably be expected to breach or make untrue any representation or warranty contained in the CompanyCommitment Letter or otherwise impair, delay or prevent consummation of the Financing contemplated by the Commitment Letter. Dorado shall not amend or alter, or agree to amend or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision underalter, the Financing Letters Commitment Letter in any manner that would prevent, impair or delay the definitive agreements relating to consummation of transactions contemplated by this Agreement without the Financing if such termination, amendment, supplement, modification or waiver would prior written consent of Redfish. (Ac) reduce the aggregate amount of If any portion of the Financing Funds becomes unavailable or the Commitment Letter therefor shall be terminated, rescinded, withdrawn or modified in a manner materially adverse to Dorado for any reason, Dorado shall use its reasonable best efforts to arrange to obtain alternative financing for the Funds from alternative sources (including by increasing “Alternate Financing”) and to obtain, and, if obtained, will provide Redfish a copy of, a new financing commitment that provides for at least the amount of fees the Funds on terms and conditions (including termination rights and funding conditions) no less favorable to Dorado, in the aggregate, than those included in such prior commitment letter (“New Commitment Letter”). To the extent applicable, Dorado shall use its reasonable best efforts to take, or cause to be paid taken, all action necessary, proper or original issue discount as compared advisable to arrange promptly and consummate the fees Alternate Financing on the terms and original issue discount contemplated by conditions described in any New Commitment Letter, including compliance with the provisions of paragraphs (a) and (b) of this Section 6.11, which shall apply to any New Commitment Letter. Redfish acknowledges that Dorado’s compliance with the provisions of this Section 6.11(c) with respect to Alternate Financing will not constitute a breach of the representations and warranties of Dorado in Section 4.9. (d) Dorado shall publicly announce, not later than the Determination Date, (i) whether or not it has entered into binding definitive agreements for the Financing Letters on the date of this Agreement unless the Debt Financing and (ii) if it has entered into such agreements, whether or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the not all conditions to the Financing) obligations of the lenders to consummate the Financing under such definitive agreements on the Closing Date shall have been satisfied or waived as of the date of such announcement (C) adversely impact excluding for this purpose any conditions that by their nature can be satisfied only at the ability time of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to consummation of the Financing. Parent shall promptly deliver to , provided that such excluded conditions would be satisfied or capable of satisfaction if the Company copies date of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or such consummation were the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts date of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained thereinsuch announcement).

Appears in 1 contract

Sources: Merger Agreement (Encore Acquisition Co)

Financing. (a) Each of Parent and Merger Sub Purchaser shall use its reasonable best efforts to obtain the Debt Financing on the terms and conditions described in the Debt Commitment Letter (including, if applicable, the flex provisions) on or prior to the Closing, including using its reasonable best efforts to do each of the following: (i) complying with its obligations under the Debt Commitment Letter in the form provided to the Company on or prior to the date hereof, subject to any amendments permitted hereby, (ii) entering into definitive agreements with respect to the Debt Financing on a timely basis on the terms and conditions (including agreeing to any requested changes to the terms of (but not to impose new, expanded or additional conditions to the availability or funding of) the commitments thereunder by the committed lenders in accordance with the related flex provisions) contained in the Debt Commitment Letter (as in effect on the date hereof, subject to any amendments permitted hereby) on or prior to the Closing; (iii) satisfying (or obtaining a waiver of) on a timely basis all covenants and conditions in the Debt Commitment Letter (subject to any amendments permitted hereby) that are, in each case, in Purchaser’s control, including the payment of any fees or expenses required as a condition to Debt Financing; (iv) maintaining in full force and effect the Debt Commitment Letter (subject to any amendments permitted hereby) until the earliest of the consummation of the Closing, the entry into definitive agreements with respect to the Debt Financing and the termination of this Agreement in accordance with its terms prior to the occurrence of the Closing; (v) subject to the satisfaction or waiver of the conditions set forth in this Agreement consummating the Debt Financing contemplated by the Debt Commitment Letter (subject to any amendments permitted hereby) at the Closing; and (vi) enforcing all of its rights under the Debt Commitment Letter (and any definitive agreements related thereto). Purchaser shall 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 Equity Financing on the terms and subject only conditions contemplated by the Equity Commitment Letter upon satisfaction or waiver of the conditions to the conditions (including the market “flex” provisions) Closing set forth in Section 7.1 [(Conditions to the Obligations of Each Party)] and Section 7.2 [(Conditions to the Obligations of Purchaser)]. Purchaser shall not, and shall not permit any of its Affiliates to, without the prior written consent of Seller, take or fail to take any action or enter into any transaction that would reasonably be expected to materially impair, delay or prevent consummation of the Debt Financing Letterscontemplated by the Debt Commitment Letter or the Equity Financing contemplated by the Equity Commitment Letter. If at any time it becomes reasonably likely that Purchaser will be unable for any reason to consummate the Debt Financing contemplated by the Debt Commitment Letter, including using or in the event any portion of the Debt Financing expires or is terminated, or upon any actual or threatened in writing repudiation or breach of the Debt Commitment Letter by any party thereto, or all or a portion of the Debt Financing becomes unavailable on the terms and conditions contemplated in the Debt Commitment Letter, Purchaser promptly (and, in any event, within five (5) Business Days) shall notify Seller of such unavailability and the reasons therefor and shall thereafter use its reasonable best efforts to seek and to arrange to obtain alternative financing (i“Alternative Financing”), including from alternative sources on terms and conditions that are not materially less favorable, taken as a whole, to Purchaser than the financing contemplated by the Debt Commitment Letter on the date hereof, as promptly as reasonably practicable following the occurrence of such event, it being understood that nothing in this Section 6.18(a) maintain shall be deemed to require Purchaser to, in effect connection with any Alternative Financing, pay any fees that, in the aggregate, materially exceed those contemplated by the Debt Commitment Letter. For the purposes of this Agreement, all references to the Debt Financing shall be deemed to include such Alternative Financing, all references to the Debt Commitment Letters shall include the applicable documents for the Alternative Financing and comply with all references to the Debt Financing Sources shall be deemed to include the lenders for (or other creditors in respect of) such Alternative Financing. Purchaser shall give Seller and the Company prompt written notice of, and keep Seller and the Company informed in writing on a reasonably prompt and current basis, in each case, in reasonable detail of the status of its efforts to arrange and consummate the Financing Lettersand shall give Seller and the Company prompt written notice (x) of any threatened or actual breach or default by any party to the Debt Commitment Letter or any threatened or actual termination of the Debt Commitment Letter which could reasonably be expected to affect the conditionality, timing, availability, funding or quantum of the Debt Financing, (iiy) negotiate and enter into receipt by the Purchaser of any written notice or other written communication from any Debt Financing Sources of any material dispute or disagreement between or among any parties to the Debt Commitment Letters or definitive agreements (which, related to the Debt Financing with respect to the bridge facility documentation, shall obligation to fund the Debt Financing or the amount of Debt Financing to be funded at the Closing and (z) if at any time for any reason Purchaser believes in good faith that it will not be required until determined by Parent able to be reasonably likely to be necessary in connection with the funding obtain all or any portion of the Debt Financing) with respect to the Debt Financing on the terms and subject only conditions, in the manner or from the sources contemplated by the Debt Commitment Letters or the definitive agreements related to the Debt Financing. Without the prior written consent of Seller, Purchaser shall not, and shall not permit any other Person to, amend, modify, supplement, waive, restate or replace the Debt Commitment Letter; provided, that Purchaser may amend, (1) amend and restate, replace, supplement, or otherwise modify or waive any of its rights under, the Debt Commitment Letter, so long as any such amendment, replacement, supplement, or other modification to or waiver of any provisions of such Debt Commitment Letter does not (i) add new, expand upon or adversely modify the conditions (including precedent to the market “flex” provisions) funding on the Closing Date of the Debt Financing as set forth in the Debt Commitment Letter on the date hereof or otherwise modify the Debt Commitment Letter in a manner that would, or would reasonably be likely to, prevent, impede, or delay the Closing, including in respect of the availability of the Debt Financing, or by releasing, requesting or consenting to the termination of Debt Commitment Letter (in whole or on in part) prior to the Closing, (ii) reduce the amount of the Debt Financing or reduce the Debt Financing Sources’ aggregate commitments under the Debt Commitment Letter (other terms that, than as a result of an assignment of a Debt Financing Source’s commitment to another Debt Financing Source in accordance with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in of the Debt Commitment Letter)) unless any such reduction (A) is offset by a dollar for dollar increase in the amounts available under the Equity Financing, or (B) is undertaken in connection with a purchase price reduction under this Agreement in accordance with the Debt Commitment Letter and the remaining commitments under the Debt Commitment Letter (when combined with the Equity Financing) are sufficient to satisfy Purchaser’s obligations contemplated by this Agreement, including the payment of the Purchase Price and payment of all fees and expenses of Purchaser due and payable at or in connection with the Closing, or (iii) satisfy on a timely basis materially and adversely affect the ability of Purchaser to enforce its rights against the Debt Financing Sources or under the Debt Commitment Letter (including by making the conditions to the availability or funding of the Debt Financing less likely to be satisfied, delaying, impeding or preventing the Closing), and (2) amend, restate, join or supplement the Debt Commitment Letter to add lenders, lead arrangers, book-runners, syndication agents or similar entities who had not executed the Debt Commitment Letter as of the date of this Agreement, so long as any or all conditions applicable to Parent and Merger Sub such additions, individually or in the aggregate, would not reasonably be expected to prevent, hinder, impede or delay the funding of the Debt Financing Letters or the consummation of the transactions contemplated by this Agreement. Purchaser shall provide notice to Seller and the Company promptly upon receiving the Debt Financing and shall furnish correct and complete copies of the definitive agreements related with respect thereto (including by consummating to Seller and the Company promptly upon their execution. Purchaser shall not permit any amendment or modification to be made to, or any waiver of any provision or remedy under, the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company. Purchaser acknowledges and agrees that its obligations to consummate the transactions contemplated by this Agreement are not conditioned or in any way contingent upon, agree to or permit any termination of or amendment, supplement or modification to be made otherwise subject to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability receipt of the Financing or otherwise expandthe availability, amend grant, provision or modify extension of any Financing to Purchaser or any of its Affiliates. (i) Prior to the earlier of the Closing or termination of this Agreement in accordance with Section 8.1 [(Termination)], the Company shall use commercially reasonable efforts to cooperate, and shall cause the Company Subsidiaries to use commercially reasonable efforts to cooperate, with Purchaser, at Purchaser’s sole expense, in connection with the arrangement of the Debt Financing as may be reasonably requested by Purchaser including by (A) participating in a reasonable number of meetings (including lender meetings), presentations and due diligence sessions, and drafting sessions; (B) assisting with the preparation of materials for (x) bank information memoranda and similar documents required in connection with the Debt Financing, and (y) solely to the extent relating to corporate ratings covering the Company and the Company Subsidiaries, rating agency presentations with respect to not more than three rating agencies; (C) furnishing Purchaser and its financing sources with the Required Information and all other financial and other pertinent information regarding the Company and the Company Subsidiaries as Purchaser may reasonably request in order to consummate the Debt Financing; (D) at least three (3) Business Days prior to the Closing, providing all documentation and other information about the Company and Company Subsidiaries that is reasonably requested in writing by any of the conditions precedent Debt Financing Sources that the Debt Financing Sources reasonably determine is required by applicable “know your customer” and anti-money laundering rules and regulations including the USA PATRIOT Act, to the Financing extent requested by Purchaser in a manner that would reasonably writing at least ten (10) Business Days prior to the Closing, in each case, to the extent required to be expected delivered pursuant to materially delay or prevent the conditions to the funding of the Debt Financing as in effect on the date hereof; (E) using commercially reasonable efforts to satisfy the conditions precedent set forth in the Debt Commitment Letter to the extent the satisfaction thereof is solely within the control of, or requires the cooperation of, the Company or the Company Subsidiaries; and (F) otherwise reasonably cooperating in Purchaser’s efforts to obtain the Debt Financing (or satisfaction including requesting of the conditions appropriate Persons, and using its commercially reasonable efforts to obtain, customary officers certificates described in the Debt Commitment Letter (as in effect on the date hereof) and other similar documents as may reasonably be requested by Purchaser), obtaining the Funded Indebtedness Payoff Letters and facilitating the pledge of, and granting of security interests in, the stock and assets of the Company and the Company Subsidiaries (but, for the avoidance of doubt, excluding the establishment of any new bank or other accounts, the repayment of any indebtedness not required to be repaid pursuant to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, terms hereof as applicable, to enforce its rights against other parties a condition to the Financing Letters Closing, or the definitive agreements with respect provision of any financial information not expressly required pursuant to the Financing. Parent shall promptly terms hereof) (it being understood that the provisions of this parenthetical do not impair any obligation hereunder to deliver the Funded Indebtedness Payoff Letters pursuant to the Company copies of any amendmentSection 2.3(b)(ii)); provided, modificationthat, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding notwithstanding anything to the contrary in this Section 6.18 [(Financing)], the Company shall not be required to provide, or cause any Company Subsidiary to provide, cooperation under this Section 6.18(b) that: (1) (1) unreasonably interferes with the ongoing business of the Company or any Company Subsidiary; (2) causes any representation, warranty, covenant or agreement in this Agreement to be breached; (3) causes any closing condition set forth in Article VII [(Conditions Precedent)] to fail to be satisfied or otherwise causes the breach of this Agreement or, at or prior to Closing, any Contract to which the Company or any Company Subsidiary is a party (provided that none of the Seller, Company or Company Subsidiaries shall have any responsibility or liability with respect to any such breach of any such Contract, whether before, at or after the Closing, to the extent solely resulting from actions requested by the Purchaser to be taken in compliance with its obligations under this Section 6.18(b)); (4) allows any investor, arranger or syndicate lender access to the personnel or facilities of the Company and Company Subsidiaries that is greater in scope or frequency than the access afforded to Purchaser under this Agreement; or (5) would require any disclosure, nothing which disclosure would be a material breach of this Agreement. For the avoidance of doubt, none of the Company, any Company Subsidiaries or their respective Affiliates shall be required to provide, and Purchaser shall be solely responsible for the preparation of, (a) 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 (other than, for the avoidance of doubt, the Financial Statements), (b) any description of all or any component of the Debt 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 or any other information of the type required by Rule 3-09, Rule 3-10 or Rule 3-16 of the Regulation S-X or (d) Compensation Disclosure and Analysis required by Item 402(b) of Regulation S-K (subclauses (a) through (d), collectively, the “Excluded Financial Information”). (ii) Notwithstanding anything to the contrary contained in this Section 5.04 6.18, (a) the Company Board and the directors, managers and general partners of the Company Subsidiaries shall requirenot be required to adopt resolutions approving the Debt Financing or the agreements, documents and instruments pursuant to which the Debt Financing is obtained, (b) other than the authorization letters referred to in clause (iii) of the definition of “Required Information,” none of Seller, the Company or any Company Subsidiary 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 Debt Financing, and in no the event any such Person does agree to execute any such document, Purchaser agrees that the execution of any documents in connection with the Debt Financing shall be subject to the reasonable best efforts consummation of Parent the transactions contemplated hereby at the Closing and such documents will not take effect until the Closing occurs and will not encumber the assets of the Company prior to the Closing, (c) none of Seller, the Company or Merger Sub any Company Subsidiaries shall be deemed or construed required to requiretake any corporate, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties tolimited liability company, or in any amount in excess limited partnership actions prior to the Closing to permit the consummation of that contemplated bythe Debt Financing, (d) none of Seller, the Equity Funding Letter, Company or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).Company Subsidiaries shall be required to

Appears in 1 contract

Sources: Stock Purchase Agreement (Macquarie Infrastructure Corp)

Financing. (a) Each Without limiting Sellers’ obligation to deliver the Required Information as set forth herein, each of Parent and Merger Sub Purchasers shall use reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, promptly, all things necessary, proper or advisable to consummate arrange and obtain Financing and the Financing proceeds thereof on the terms and subject only conditions described herein and in the Commitment Letter including (i) maintaining in effect the Commitment Letter, (ii) negotiating definitive agreements with respect to the Financing (the “Definitive Agreements”) consistent with the terms and conditions contained therein (including including, as necessary, the market “flex” provisionsprovisions contained in any related fee letter) or, if available, on other terms that are acceptable to each of Parent and Purchasers and no less favorable in any material respect (as determined by each of Parent and Purchasers, in their sole and absolute discretion), to each of Parent and/or Purchasers than the terms set forth in the Financing Letters, including using reasonable best efforts to (i) maintain Commitment Letter and would not adversely affect in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with any material respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including delaying the market “flex” provisions) timing beyond the applicable dates set forth in Section 10.1(b)) the Debt Commitment Letter (or on other terms that, with respect ability of each of Parent and Purchasers to conditionality, are not less favorable to Parent or Merger Sub than consummate the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter)transactions contemplated herein, (iii) satisfy satisfying on a timely basis all conditions applicable to Parent Parent, Purchasers and Merger Sub their respective Subsidiaries in the Financing Letters Commitment Letter and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms Definitive Agreements that are within their respective control and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)complying with their respective obligations thereunder, (iv) upon complying with their respective obligations under the satisfaction or waiver of Commitment Letter, and (v) if the conditions to Parent’s the Financing have been satisfied or waived, in accordance with the terms and Merger Sub’s obligations to consummate provisions of the Offer Commitment Letter and the MergerDefinitive Agreements, as applicable, consummate the Financing in accordance with the terms and cause provisions of the lenders Commitment Letter and the other Persons committing Definitive Agreements. Each of Parent and Purchasers shall use reasonable best efforts to fund the Financing comply with its obligations, and reasonable best efforts to fund the Financing at the Closing, (v) enforce its rights rights, under the Commitment Letter in a timely and diligent manner; provided, however, that none of Purchasers or Parent shall be required to commence a Proceeding against any Financing Letters and the definitive agreements relating to the Financing and Source. (vib) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall notNone of Purchasers or Parent shall, without the prior written consent of Agent (which consent shall not be unreasonably withheld, conditioned or delayed; provided that it shall be deemed reasonable to withhold consent if any of the Company, agree following could reasonably be expected to prevent or delay the Closing beyond the applicable dates set forth in Section 10.1(b)): (i) permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Letters or the definitive agreements relating to the Financing Commitment Letter if such termination, amendment, supplement, modification or waiver would (A) prevent the Closing Date from occurring or delay the Closing beyond the applicable dates set forth in Section 10.1(b), (B) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing to an amount, when taken together with the Closing Cash Contribution, that would be below insufficient to consummate the amount required transactions contemplated by this Agreement and to pay related fees and expenses (unless Parent or either Purchaser has arranged an alternative source of funds to complete the Required Amounttransactions contemplated by this Agreement, (B) impose new or additional conditions precedent delivers commitment letters and remakes the representations and warranties in Section 6.10 hereof with respect to such alternative source of funds and commitment letters, and pursues such source of funds with the availability same obligations imposed on it under this Section 7.10 in respect of the Financing or otherwise expandFinancing), amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) materially adversely impact affect the ability of Parent or Merger Sub, as applicable, any Purchaser to enforce its their rights against other parties to the Financing Letters Commitment Letter or the definitive agreements with respect Definitive Agreements as so amended, modified or waived, relative to the Financingability of Parent or any Purchaser to enforce their rights against such other parties to the Commitment Letter as in effect on the date hereof or in the Definitive Agreements, or (D) make the funding of the Financing or the satisfaction of any condition thereunder materially less likely to occur, other than (x) to obtain a waiver of any closing conditions by Financing Source(s) or their agents, or (y) to add Financing Sources, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the Commitment Letter as of the date hereof; or (ii) release, terminate or consent to the release or termination of the obligations of any Financing Sources or other Persons under the Commitment Letter in a manner that would prevent the Closing from occurring or delay the Closing beyond the applicable dates set forth in Section 10.1(b). Parent or Purchasers shall (x) promptly deliver (but in any event within two (2) Business Days prior to the Company copies execution of any such proposed amendment, modification, supplementwaiver, release, termination or consent, or notice thereof) deliver to Agent copies of any such proposed amendment, modification, waiver, release, termination or consent, and (y) promptly (but in any event within two (2) Business Days after the execution of any such proposed amendment, modification, waiver, release, termination or consent, or notice thereof) deliver to Agent copies of any such executed amendment, modification, waiver, release, termination or consent, in each case subject to redaction of fees, hold levels, pricing, economic “flex” terms and other economic provisions that are customarily redacted in connection with acquisition agreements of this type; provided, that any failure by Parent or Purchasers to timely deliver to Agent copies of any such executed amendment, modification, waiver, release, termination or consent or waiver to any error in doing so shall not limit or under otherwise affect the obligations of Agent hereunder and none of Parent or Purchasers shall be in breach or default hereunder as a result of any Financing Letter such failure or error if Parent and Purchasers deliver such copies during the definitive agreements relating to the Financing promptly upon execution thereoffive (5) Business Day period immediately following receipt by Parent of written notice of such failure or error from Sellers. Notwithstanding anything to the contrary in this AgreementAgent shall, nothing contained in this Section 5.04 shall requireas soon as practicable, and in no event later than two (2) Business Days after receipt thereof, respond to a request for consent under this Section 7.10(b). (c) In the event that any portion of the Financing becomes unavailable, regardless of the reason therefor, Parent or Purchasers shall the (i) use reasonable best efforts to arrange and obtain alternative debt financing (in an amount sufficient, when taken together with the Closing Cash Contribution, to consummate the transactions contemplated by this Agreement and to pay related fees and expenses) from the same or other sources and which do not include any conditions to the consummation of such alternative debt financing that are more onerous to Parent or Purchasers than the conditions set forth in the Financing and are otherwise on terms no less favorable to Parent or Purchasers than such unavailable Financing (including the “flex” provisions), and (ii) promptly (but in any event within two (2) days after receipt of notice of the unavailability of all or any portion of the Financing) notify Agent of such unavailability and, to the Knowledge of Parent and to the Knowledge of Purchasers, the reason therefor. For the purposes of this Section 7.10, the term “Commitment Letter” shall be deemed to include any commitment letter (or similar agreement) with respect to any alternative financing arranged in compliance herewith (and any Commitment Letter remaining in effect at the time in question) and the term “Financing” shall be deemed to include any financing contemplated by any commitment letter as permitted by this Section 7.10 to be amended or modified or replaced by any alternative financing arranged in compliance herewith prior to the Closing. Parent and Purchasers shall remake the representations set forth in Section 6.10 hereof with respect to any such alternate Commitment Letter and Financing upon the arrangement thereof. Prior to the Closing, Parent or Purchasers shall provide Agent with prompt (but in any event within five (5) days after receipt of notice regarding any of the items hereinafter set forth) written notice if (A) to the Knowledge of Parent or Merger Sub be deemed Purchasers, there exists any breach or construed default by any party to requirethe Commitment Letter, either any letter or agreement related thereto or the Definitive Agreements or any expiration or termination (or attempted or purported termination, whether or not valid) of the obligations of any Financing Sources or other Persons under the Commitment Letter, (B) Parent or Merger Sub Purchasers receive any written notice or other written communication from any Financing Source or other source with respect to (ix) seek any actual or threatened breach, default, termination or repudiation by any party to any Commitment Letter or the Equity Financing from Definitive Agreements of any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letterprovision thereof, or (iiy) pay any material fees dispute or disagreement between or among any parties to the Commitment Letter or other Definitive Agreement, if applicable, with respect to the obligation to fund the Financing or the amount of the Financing to be funded at Closing or (C) for any reason, Parent or Purchasers no longer believe in excess good faith that they will be able to obtain all or any portion of those the Financing contemplated by the Equity Funding Letter or the Debt Commitment Letter on the terms described therein; provided, however, that in no event will Parent or Purchasers be under any obligation to disclose any information pursuant to clauses (A), (B) or (C) that is subject to attorney-client, common interest, joint defense or similar privilege if Parent or Purchasers shall have used their commercially reasonable efforts to disclose such information in a way that would not waive such privilege. In the event that Parent or Purchasers do not provide access or information in reliance on the preceding sentence, Parent or Purchasers shall provide notice to Agent that such access or information is being withheld and Parent or Purchasers shall use their commercially reasonable efforts to communicate, to the extent feasible, the applicable information in a way that would not violate the applicable obligation or risk waiver of such privilege. Without limiting the foregoing, Parent and Purchasers shall keep Agent reasonably informed on a reasonably current basis in reasonable detail of the material developments concerning the Financing, provide to Agent prompt notice of any material adverse change with respect to the Financing and provide to Agent, upon reasonable request, executed copies of the material Definitive Agreements, if any, and such other information and documentation available to them as shall be reasonably requested by any Seller for purposes of monitoring the progress of the Financing and the financing activities related thereto, in each case, including any market “flex” provisions contained therein)only those redactions as described in the definition of Redacted Fee Letter set forth herein.

Appears in 1 contract

Sources: Product Purchase Agreement (Aceto Corp)

Financing. (a) Each Subject to any termination of Parent and Merger Sub shall the Bridge Commitment Letter prior to Closing permitted under Section 6.16(b), Buyer agrees to use commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper necessary or advisable to consummate and obtain the Bridge Financing or any other Debt Financing on the terms and subject only or prior to the conditions (including the market “flex” provisions) set forth in the Financing LettersClosing Date. Such actions shall include, including but not be limited to, using commercially reasonable best efforts to to: (i) maintain in effect and comply with not cancel any commitments under the Financing LettersBridge Commitment Letter; provided that Buyer may replace, amend or terminate the Bridge Commitment Letter as set forth below in Section 6.16(b); (ii) negotiate negotiate, execute and enter into definitive agreements (which, with respect deliver Bridge Financing Documents on or prior to the bridge facility documentationClosing Date that reflect (A) the terms contained in the Bridge Commitment Letter (including any “market flex” provisions related thereto) or (B) such other terms as may be acceptable to both Buyer and the applicable Bridge Financing Sources; provided that such terms (I) do not add new, shall not be required until determined by Parent or expand upon any existing conditions precedent to be reasonably likely to be necessary in connection with the initial funding of the Debt Financing) with respect Bridge Financing relative to the Debt Bridge Financing on the terms and subject only to the conditions (including the market “flex” provisions) Conditions set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Bridge Commitment Letter), and (II) could not reasonably be expected to delay or prevent the consummation of the Closing; (iii) satisfy on a timely basis (or seek a waiver of) all conditions applicable to Parent and Merger Sub Bridge Financing Conditions set forth in the Financing Letters Bridge Commitment Letter that are within Buyer’s or any of its Affiliates’ control; (iv) pay, or cause to be paid, all fees and other amounts that become due and payable under the definitive agreements related thereto Bridge Commitment Letter or Bridge Fee Letter as and when they become due and payable; (including by consummating v) in the Equity Financing at or prior to the Closing on the terms and subject to event that the conditions set forth in Section 7.1 and Section 7.3 and the Equity Funding Letter) (Bridge Financing Conditions have been satisfied or, if necessary or deemed advisable by Parentupon funding would be satisfied, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing Bridge Financing Sources to fund the full amount of the Bridge Financing to fund unless Buyer otherwise funds the Financing at the Closing, Required Amount; and (vvi) enforce its rights under the Financing Letters and the definitive agreements relating or with respect to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and Bridge Financing, including by seeking to cause the other parties thereto to fulfill their obligations under the Financing Letters and the definitive agreements relating Bridge Commitment Letter. (b) Prior to the Financing. ParentClosing, Merger Sub and the Guarantors Buyer shall not, without the prior written consent of the CompanySeller (which shall not be unreasonably withheld, conditioned or delayed), agree to or permit any termination of or amendment, supplement or modification to be made to, or grant permit, any amendment, restatement, replacement, supplement, or other modification of, or waiver of any provision or consent under, the Financing Letters Bridge Commitment Letter or the definitive agreements other documentation relating to the Bridge Financing if such termination, amendment, supplement, modification or waiver would that would: (Ai) reasonably be expected to adversely affect in any material respect Buyer’s ability to consummate the transactions contemplated to occur under this Agreement on the Closing Date; (ii) reduce the aggregate amount of any portion of the Bridge Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing Buyer would be below the amount required not have sufficient funds to pay the Required AmountAmount on the Closing Date (taking into account other sources of available funds (including, for purposes of this Section 6.16(b)(ii), cash on hand, availability under revolving credit agreements, term loans, accounts receivable securitization facilities or other similar facilities), sufficient evidence (Bin the good faith determination of Buyer) of which has been provided to Seller); (iii) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of expand upon the conditions precedent to the Bridge Financing as set forth in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing Bridge Commitment Letter; (or satisfaction of the conditions to the Financing) on the Closing Date or (Civ) adversely impact affect the ability of Parent or Merger Sub, as applicable, Buyer in any material respect to enforce its rights against other parties to the Bridge Financing Letters or Sources under the definitive agreements with respect to Bridge Commitment Letter, the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Bridge Fee Letter or any Bridge Financing Document; or (v) otherwise reasonably be expected to prevent, delay, impede or impair the definitive agreements relating to the Financing promptly upon execution thereofClosing in any material respect. Notwithstanding anything to the contrary in this Agreement, nothing contained Buyer may terminate the commitments under the Bridge Commitment Letter (including any extensions or replacements thereof) or permit the same to expire in accordance with the terms of the Bridge Commitment Letter in full or in part, (x) if Buyer provides Seller with evidence sufficient (in the good faith determination of Buyer) that it has (and will have until at least the date that is ninety (90) days after the date of this Agreement) other sources of available funds (including, for purposes of this paragraph, cash on hand, availability under revolving credit agreements, term loans, accounts receivable securitization facilities or other similar facilities) in an aggregate amount equal to the Required Amount; (y) if Buyer replaces the Bridge Commitment Letter as in effect at the time of such replacement, in full or in part, in accordance with the first paragraph of this Section 5.04 6.16(b) or Section 6.16(d); provided that the amount terminated shall requirenot exceed the amount of such replacement financing or (z) at any time after the date that is ninety (90) days after the date of this Agreement. (c) Upon written request of Seller, Buyer shall update Seller in reasonable detail of material developments in respect of the Bridge Financing or any other Debt Financing. Without limiting the foregoing, Buyer shall give Seller prompt notice of any Bridge Financing Failure Event of which Buyer or its Affiliates becomes aware. As soon as reasonably practicable, Buyer shall provide any information reasonably requested by Seller relating to any Bridge Financing Failure Event unless providing such information will violate any applicable law, government order, applicable privilege or confidentiality obligation. (d) If any Bridge Financing Failure Event occurs, Buyer shall promptly, use commercially reasonable efforts to arrange for alternative debt financing (“Replacement Financing”) in an amount not less than the amount committed for bridge loans under the Bridge Commitment Letter as of the time of such Bridge Financing Failure Event; provided that the Buyer shall not be required to obtain any Replacement Financing that would contain terms, which when taken as a whole, are less favorable to Buyer in any material respect (as determined by Buyer in good faith) than those set forth in the Bridge Commitment Letter on the date hereof. Buyer shall deliver to Seller true, correct and complete copies of all contracts or other arrangements pursuant to which any alternative source shall have committed to provide any portion of the Replacement Financing (provided that any fee letters in connection therewith may be redacted in a manner consistent with the Bridge Fee Letter provided as of the date hereof). (e) If the Condition Satisfaction Date occurs after the date that is ninety (90) days after the date of this Agreement, then Buyer shall (if such funds are necessary) use commercially reasonable efforts to obtain the proceeds of the Debt Financing in order to consummate the Closing as soon as practicable, taking into consideration compliance with the financial statement requirements under the federal securities laws, but in no event shall the reasonable best efforts Closing Date occur later than thirty (30) days after the Condition Satisfaction Date. The Parties acknowledge and agree that in no event will the failure of Parent or Merger Sub Buyer to consummate the Closing prior to the end of the thirty (30) day period referenced in this Section 6.16(e) be deemed or construed used as a basis by Seller to requireterminate this Agreement pursuant to Section 9.1(e) prior to the end of such thirty (30) day period. (f) Notwithstanding anything in this Agreement to the contrary, either Parent or Merger Sub in no event will any failure by Buyer to comply with this Section 6.16 be used by Seller as a basis to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, terminate this Agreement or (ii) pay any material fees assert the failure of a condition set forth in excess of those Article VII to be satisfied, if notwithstanding such breach Buyer is willing and able to consummate the transactions contemplated by in this Agreement and the Equity Funding Letter or other Transaction Documents on the Debt Commitment Letter (including any market “flex” provisions contained therein)Closing Date.

Appears in 1 contract

Sources: Purchase and Sale Agreement (Targa Resources Corp.)

Financing. (a) Each As of Parent the date hereof, attached hereto as Exhibit E are true and Merger Sub shall use reasonable best efforts correct copies of (i) the commitment letters (the “Debt Financing Commitment Letters”), dated as of the date hereof, providing for debt financing in respect of the Contemplated Transactions (collectively, as the same may be amended, modified, supplemented or superseded, the “Debt Financing Commitments”), pursuant to takewhich the lenders party thereto have committed, or cause subject 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 set forth therein, to lend the amounts set forth therein for the purposes of financing the Contemplated Transactions and related fees and expenses (the “Debt Financing”), and (ii) the equity commitment letter (the “Equity Financing Commitment Letter” and, together with the Debt Financing Commitment Letters, the “Commitment Letters”), dated as of the date hereof (collectively, as the same may be amended, modified, supplemented or superseded, the “Equity Financing Commitments” and together with the Debt Financing Commitments, the “Financing Commitments”), pursuant to which the investor parties thereto have committed, subject only to the terms and conditions set forth therein, to invest the cash amounts set forth therein (including the market “flexEquity Financing” provisions) and together with the Debt Financing, the “Financing”). There are no side letters or other arrangements related to the Financing other than as expressly set forth in the Financing Letters, including using reasonable best efforts to Commitments and the Debt Fee Letter which (i) maintain in effect and comply with would reduce the amount of the Debt Financing Letters, below the Required Amount or (ii) negotiate include any other conditions precedent or contingencies to receipt of the Debt Financing. Parent has fully paid any and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary all commitment fees or other fees in connection with the funding Financing Commitments that are payable on or prior to the date hereof. As of the Debt Financing) with respect to date hereof, the Debt Financing on the terms Commitments are in full force and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms thateffect and are valid, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms binding and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to enforceable against Parent and Merger Sub (except in each case as the Financing Letters and enforceability thereof may be limited by any applicable bankruptcy, reorganization, insolvency or other Applicable Law affecting creditors’ rights generally or by general principles of equity). As of the definitive agreements date hereof, there are no conditions precedent or other contingencies related thereto (including by consummating the Equity Financing at or prior to the Closing on funding of the terms and subject to full amount of the conditions Financing, other than as expressly set forth in or expressly contemplated by the Equity Funding Letter) (orFinancing Commitments. As of the date hereof, if necessary or deemed advisable ▇▇▇▇▇▇ and ▇▇▇▇▇▇ Sub have taken all actions required by Parentthem and, seek to their knowledge, the waiver other parties party to the Commitment Letters, to cause the Financing Commitments to be effective. As of conditions applicable to the date hereof, Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver are not aware of any provision under, the Financing Letters fact or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing circumstance in a manner existence that would reasonably be expected to materially delay give rise to the failure to satisfy any condition precedent set forth in the Financing Commitments. As of the date hereof, no event has occurred which, with or prevent without notice, lapse of time or both, would or would reasonably be expected to constitute a default or breach on the part of Parent or Merger Sub under any term or condition of the Financing Commitments. As of the date hereof, assuming the satisfaction of conditions set forth in Article VIII and compliance by the Company with Section 6.16(d), ▇▇▇▇▇▇ and Merger Sub have no reason to believe that any of the conditions to the Financing contemplated by the Financing Commitments will not be satisfied in accordance with their terms. (b) Assuming the satisfaction of conditions set forth in Article VIII and compliance by the Company with Section 6.16(d), upon the funding of the Financing (or satisfaction in accordance and subject to their terms and conditions and the terms and conditions of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall requirethe aggregate proceeds of the Financing together with immediately available cash on hand (including availability under any revolving credit facility), and in no event shall the reasonable best efforts of Parent or Merger Sub will be deemed or construed sufficient to require, either Parent or Merger Sub satisfy Parent’s obligation to pay (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or Adjusted Base Merger Consideration and (ii) pay any material fees all fees, costs and expenses incurred by Parent in excess of those contemplated connection with the Contemplated Transactions required to be paid by Parent at the Equity Funding Letter or Closing (the Debt Commitment Letter (including any market “flex” provisions contained thereinRequired Amount”).

Appears in 1 contract

Sources: Merger Agreement (Compass Group Diversified Holdings LLC)

Financing. (a) Each of Parent and Merger Sub The Acquiror shall use reasonable best efforts efforts, and shall cause each of its Subsidiaries to use reasonable best efforts, to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain funds sufficient to fund the Financing Amounts, on or prior to the date on which the transaction contemplated hereby is required to be consummated pursuant to the terms hereof. In furtherance and subject only to not in limitation of the conditions (including foregoing, the market “flex” provisions) set forth in the Financing Letters, including using Acquiror shall use reasonable best efforts to (i) maintain in effect take, and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect use reasonable best efforts to the bridge facility documentation, shall not be required until determined by Parent cause to be reasonably likely taken, all actions and use reasonable best efforts to be necessary in connection with do, all things necessary, proper or advisable to obtain the funding proceeds of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Debt Commitment Letter as promptly as possible but in any event prior to the date on which the transaction contemplated hereby is required to be consummated pursuant to the terms hereof, including by (or on i) maintaining in effect the Debt Commitment Letter, other terms thatthan as permitted in this Section 5.10, (ii) negotiating and entering into definitive agreements with respect to conditionality, are not less favorable to Parent or Merger Sub than the Debt Financing (the “Definitive Agreements”) consistent with the terms and conditions contained therein (including market the “flex” provisionsprovisions related thereto) set forth in or such other terms acceptable to the Debt Commitment Letter)Acquiror, but without any Prohibited Modification, (iii) satisfy satisfying on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), and the Definitive Agreements that are within its control and complying with its obligations thereunder and (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce enforcing its rights under the Financing Letters Debt Commitment Letter and the definitive agreements relating to Definitive Agreements in a timely and diligent manner. (b) Neither the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall notAcquiror nor any of its Subsidiaries shall, without the prior written consent of the CompanyParent: (i) permit, consent to or agree to or permit any termination of or amendment, supplement replacement, supplement, termination or modification to be made to, or grant any waiver of, any provision or remedy under the Debt Commitment Letter or the Definitive Agreements if such amendment, replacement, supplement, modification, waiver or remedy (A) adds new (or adversely modifies any existing) conditions to the consummation of all or any portion of the Debt Financing, (B) reduces the aggregate principal amount of the Debt Financing, unless such amount has been replaced by other financing commitments in a manner permitted by the terms of this Section 5.10(b) or the Acquiror’s available cash on hand, (C) materially and adversely affects the ability of the Acquiror to enforce its rights against the Financing Sources to the Debt Commitment Letter or the Definitive Agreements as so amended, replaced, supplemented or otherwise modified or (D) could otherwise reasonably be expected to prevent, impede or delay the consummation of the transactions contemplated hereby (the effects described in clauses (A) through (D), collectively, the “Prohibited Modifications”); or (ii) terminate or cause the termination of the Debt Commitment Letter or any Definitive Agreement. The Acquiror shall promptly deliver to Parent copies of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, replacement, supplement, termination, modification or waiver would to the Debt Commitment Letter and/or Definitive Agreements. (Ac) reduce In the aggregate amount of event that any portion of the Debt Financing becomes unavailable, regardless of the reason therefor, the Acquiror shall (i) promptly notify Parent in writing of such unavailability and the reason therefor and (ii) use reasonable best efforts, and cause each of its Subsidiaries to use their reasonable best efforts, to arrange and obtain, as promptly as practicable following the occurrence of such event, alternative financing for any such unavailable portion from the same or alternative sources (the “Alternative Financing”) to replace such unavailable amount of the Debt Financing (including by increasing unless the amount of fees Acquiror has other committed and available funding sources that would be permitted as replacements for the Debt Commitment Letter pursuant to be paid Section 5.10(b) or original issue discount as compared available cash on hand that it will use to replace such unavailable amount) and, without limiting the foregoing, shall use reasonable best efforts to cause such Alternative Financing to not include any Prohibited Modifications or conditions to the fees consummation thereof that are more onerous than those set forth in Debt Commitment Letter as of the date hereof. The Acquiror shall provide Parent with prompt oral and original issue discount written notice of any actual or threatened (in writing) breach, default, cancellation, termination or repudiation by any party to the Debt Commitment Letter or any Definitive Agreement and a copy of any written notice or other written communication from any Lender or other financing source with respect to any actual or threatened breach, default, cancellation, termination or repudiation by any party to the Debt Commitment Letter or any Definitive Agreement of any provision thereof. Upon request from Parent, the Acquiror shall keep Parent reasonably informed on a current basis of the status of its efforts to consummate the Debt Financing, including any Alternative Financing. (d) The foregoing notwithstanding, compliance by the Acquiror with this Section 5.10 shall not relieve the Acquiror of its obligations to consummate the transactions contemplated by the Financing Letters on the date of this Agreement unless whether or not the Debt Financing or Equity any Alternative Financing or other financing is increased by a corresponding amount) such that available. To the aggregate amount extent the Acquiror obtains Alternative Financing or amends, replaces, supplements, modifies or waives any of the Debt Financing, in each case pursuant to this Section 5.10 and without any Prohibited Modification, references to the “Debt Financing,” “Lenders,” “Debt Commitment Letter” and “Definitive Agreements” (and other like terms in this Agreement) shall be deemed to refer to such Alternative Financing, the commitments thereunder and the agreements with respect thereto, or the Debt Financing would as so amended, replaced, supplemented, modified or waived. (e) Prior to the Closing, Parent shall use its reasonable best efforts to, and shall cause the Company Group Entities and their respective Representatives to use their respective reasonable best efforts to, provide to the Acquiror (at the Acquiror’s sole expense) all customary cooperation as may be below reasonably requested by the amount required Acquiror or the Financing Sources in writing necessary to pay assist in or facilitate the Required Amountarranging and obtaining of the Financing, including using reasonable best efforts to: (i) facilitate reasonable and customary participation by senior management and advisors of the Company Group Entities in a reasonable number of meetings (including customary one-on-one sessions), presentations (including rating agency presentations), road shows, and due diligence sessions with prospective Financing Sources, underwriters and rating agencies, in connection with the Financing, including direct contact between senior management (with appropriate seniority and expertise) of Company Group Entities, on the one hand, and the potential lenders, investors and underwriters for the Financing, on the other hand, in each case upon reasonable prior notice and at times and locations to be mutually agreed; (ii) assist with the preparation of and provide customary information regarding the Company Group Entities reasonably requested by the Acquiror in writing or the Financing Sources for rating agency presentations, materials for bank information memoranda, marketing materials, underwriter presentations, road shows, investor presentations, prospectuses, registration statements and similar documents in connection with the Debt Financing, in each case, reasonably necessary and customarily delivered in connection with financings of the type being arranged; provided, that Parent and the Company Group Entities shall not be responsible for the delivery or preparation of (A) pro forma and/or projected financial information (including any assumptions or footnotes relating thereto), (B) impose new any description of all or additional conditions precedent any component of such 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 such 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 or (E) compensation disclosure and analysis required by Item 402(b) of Regulation S-K, each of which shall be prepared solely by the Acquiror, (F) any financial information that Parent or its Affiliates do not maintain in the ordinary course of business or information not reasonably available to Parent or its Affiliates under their respective current reporting systems or (G) any financial statements whatsoever other than the Required Financial Information, and Parent and the Company Group Entities shall have no liability with respect to any of the foregoing information (the information described in this proviso is collectively referred to as the “Excluded Information”); (iii) furnishing the Acquiror with (x) the audited consolidated balance sheet, statement of (loss) income and comprehensive (loss) income and statement of shareholder’s equity and statement of cash flows for ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇, Ltd. for the fiscal year ended December 31, 2022 (which Acquiror acknowledges have already been furnished thereto) and (y) customary Representation and Authorization Letters relating thereto (the materials set forth in this clause (iii)(x), the “Required Financial Information”); (iv) otherwise providing Financing Assistance; and (v) assisting with the negotiation, execution and delivery of definitive financing documents, including credit agreements, guarantee and other collateral documents, customary closing certificates, perfection certificates and any schedules thereto as may be required by the Financing Sources and other customary documents as may be reasonably requested by the Acquiror; provided, that such documents (other than the Representation and Authorization Letters) shall be effective only upon the Closing, that Parent and its Affiliates (other than the Company Group Entities) shall have no liability with respect to such documents whatsoever, and that the Company Group Entities shall have no liability with respect to such documents prior to the availability Closing. (f) Nothing in this Section 5.10 will require Parent, the Company Group Entities or any of their respective Representatives or Affiliates to (i) waive or amend any terms of this Agreement or any other Contract to which it is a party or agree to pay any fees, reimburse any expenses or otherwise incur any liability or obligation (X) in the case of Parent, its Representatives and its Affiliates (other than the Company Group Entities) at any time whatsoever or (Y) in the case of the Company Group Entities, prior to the Closing Date; (ii) enter into any definitive agreement (X) in the case of Parent, its Representatives and its Affiliates (other than the Company Group Entities) at any time whatsoever or (Y) in the case of the Company Group Entities, that is effective prior to the Closing and other than, in the case of the foregoing clause (Y), the Representation and Authorization Letters or any customary accountants’ “comfort letters” (including customary “negative assurances”) and customary consents by auditors to the inclusion of audit reports with respect to the Required Financial Information if such Required Financial Information is included in any such SEC filing or offering documents (the “Agreed Pre-Closing Matters”); (iii) give any indemnities in connection with the Financing (X) in the case of Parent, its Representatives and its Affiliates (other than the Company Group Entities) at any time whatsoever or (Y) in the case of the Company Group Entities, that are effective prior to the Closing Date; (iv) adopt any resolution, grant any approval or authorization or otherwise take any corporate or similar action in respect of the Financing (X) in the case of Parent, its Representatives and its Affiliates (other than the Company Group Entities) at any time whatsoever or otherwise expand, amend or modify any (Y) in the case of the conditions precedent Company Group Entities (and solely to the Financing extent resolutions or actions are adopted or taken by Persons that will continue to be a director of the applicable entity following the Closing and only in a manner their capacities as such), that are effective prior to the Closing Date, other than the Agreed Pre-Closing Matters; (v) take any action that would reasonably be expected to materially delay conflict with or prevent violate its organizational documents or any applicable Laws or would reasonably be expected to result in a violation or breach of, or default under, any agreement to which Parent or any Company Group Entity is a party; (vi) provide any information the funding disclosure of which is prohibited or restricted under applicable law or is legally privileged; (vii) require Parent or its Affiliates to prepare or deliver any Excluded Information; (viii) require the Financing delivery of an opinion of counsel; (ix) require any officer or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability Representative of Parent or Merger Sub, as applicable, the Company Group Entities to enforce take any action that could reasonably be expected to result in personal liability to such officer or Representative or (x) take any action that would unreasonably interfere with the ongoing operations of Parent or any of their Affiliates. Nothing contained in Section 5.10 or otherwise in this Agreement shall require (A) Parent or any of its rights against Affiliates (other parties than the Company Group Entities) to the Financing Letters be an issuer or the definitive agreements other obligor with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or debt incurred under any Financing Letter or (B) the Company Group Entities, prior to Closing, to be an issuer or other obligor with respect to the debt incurred under any Financing. (g) The Acquiror shall promptly, upon request by ▇▇▇▇▇▇, reimburse Parent, its Affiliates and the Company Group Entities for all reasonable and documented out-of-pocket costs and expenses incurred by Parent, the Company Group Entities or any of their respective Representatives (including reasonable and documented fees of attorneys and accountants) in connection with its cooperation contemplated by Section 5.10 and shall reimburse, indemnify and hold harmless Parent, its Affiliates and their respective Representatives from and against all losses suffered or incurred by them in connection with the arrangement of the Financing, any information used in connection therewith, and action taken by them pursuant to Section 5.10; provided, however, that the foregoing shall not apply to the extent such losses arose out of or resulted from (i) information provided in writing by or on behalf of Parent, its Affiliates or the definitive agreements relating Company Group Entities or any of its or their respective Representatives or (ii) the willful misconduct, gross negligence or material breach of their obligations under this Agreement by Parent, its Affiliates or the Company Group Entities or any of its or their respective Representatives. (h) The parties hereto acknowledge and agree that the provisions contained in this Section 5.10 represent the sole obligations of Parent and its Affiliates with respect to cooperation in respect of arrangement of any financing to be obtained by the Acquiror or any of its Affiliates with respect to the Financing promptly upon execution thereoftransactions contemplated by this Agreement or the Debt Commitment Letter, and no other provision of this Agreement shall be deemed to modify or expand such obligations. In no event shall the receipt or availability of any funds or financing (including the Financing) by the Acquiror any of its Affiliates or any other financing or other transactions be a condition to any of the Acquiror’s obligations under this Agreement. Notwithstanding anything to the contrary in this Agreement, nothing contained in ▇▇▇▇▇▇’s breach of any of the covenants required to be performed by it under this Section 5.04 5.10 or Section 5.11 shall requirenot be considered in determining the satisfaction of the condition set forth in Section 8.03(a), unless such breach is a willful and in no event shall material breach and is a principal cause of the reasonable best efforts Acquiror being unable to obtain the proceeds of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to the Debt Financing at the Closing. (i) seek the Equity Financing from any source All non-public or other than the counterparties to, or in any amount in excess of that contemplated byconfidential information provided by Parent, the Equity Funding Letter, Company Group Entities or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).their respective Representatives pursuant to this Agreement will be kept c

Appears in 1 contract

Sources: Stock Purchase Agreement (Renaissancere Holdings LTD)

Financing. (a) Each of Parent and Merger Sub shall, and shall cause their respective Affiliates to, use reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) (or on other terms acceptable to Parent, so long as such terms, with respect to conditionality, are no less favorable to Parent or Merger Sub) and subject only to the conditions set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing LettersLetters and the definitive agreements relating to the Financing, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) and subject only to the conditions set forth in the Debt Commitment Letter (or on other terms thatacceptable to Parent, with respect subject to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment LetterProhibited Financing Modifications), (iii) satisfy on a timely basis basis, taking into account the expected timing of the Marketing Period, all conditions that are within its control and applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Commitment Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the MergerTransactions, consummate the Financing at the Closing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, and (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s Financing. Parent and Merger Sub’s covenants Sub shall not, and other obligations under the Financing Letters and the definitive agreements relating shall cause its respective Affiliates to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, (x) agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters Equity Commitment Letter (other than as expressly permitted under the Equity Commitment Letter as in effect on the date hereof) or (y) agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Debt Commitment Letter, any related fee letter or the definitive agreements relating to the Debt Financing if if, in the case of this clause (y), such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Debt Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters Debt Commitment Letter on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing (after taking into account available cash of the Company and its Subsidiaries (but giving due consideration to any material tax consequences related to repatriation)) would be below the amount required to pay the Required AmountAmounts at the Closing, (B) impose new or additional conditions precedent to the availability of the Debt Financing or otherwise expand, amend or modify any of the conditions precedent to the Debt Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Debt Financing (or satisfaction of the conditions to the Debt Financing) on the Closing Date or (C) materially and adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters Debt Commitment Letter or the definitive agreements with respect to the FinancingDebt Financing (the foregoing clauses (A) through (C), collectively, the “Prohibited Financing Modifications”). For the avoidance of doubt, the Debt Commitment Letter may be amended or modified to add lenders, lead arrangers, co-managers, bookrunners, syndication agents or any person with similar roles or titles who had not executed the Debt Commitment Letter as of the date of this Agreement. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 6.15 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (ix) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Commitment Letter, or (iiy) pay any material fees in excess of those contemplated by the Equity Funding Commitment Letter or the Debt Commitment Letter (including any market “flex” provisions provision contained therein). (b) Parent shall promptly inform the Company upon request in reasonable detail of the status of its efforts to arrange the Debt Financing and, upon request, provide to the Company complete, correct and executed copies of the material definitive documents for the Debt Financing. Parent and Merger Sub shall give the Company prompt written notice (i) of any breach, default, termination, cancellation or repudiation by any party to any of the Financing Letters or definitive documents related to the Financing of which Parent or Merger Sub becomes aware (or any event or circumstance, that, with or without notice, lapse of time or both, would reasonably be expected to give rise to any breach, default, termination, cancellation or repudiation), (ii) of the receipt by Parent or Merger Sub of any written notice or other written communication from any Financing Source with respect to any (A) breach, default, termination, cancellation or repudiation by any party to any of the Financing Letters or any definitive document related to the Financing of any provisions of the Financing Letters or any definitive document related to the Financing or

Appears in 1 contract

Sources: Merger Agreement (Tech Data Corp)

Financing. (a) Each of Parent and Merger Sub Purchaser shall use its commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the proceeds of the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Commitment Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing and the Commitments Letters, (ii) negotiate and enter into definitive financing agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth specified in the Debt Commitment Letter (or on other terms thatLetters, with respect to conditionality, so that such agreements are not less favorable to Parent or Merger Sub in effect as promptly as practicable but in any event no later than the terms Closing and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in consummate the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on Closing. Without limiting the terms and subject generality of the foregoing, Purchaser shall give Seller prompt notice (A) of any material breach or default by any party to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt any Commitment Letter or such definitive agreements document related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing of which Purchaser becomes aware; (B) of the receipt of any written notice or other written communication from any Financing source with respect to any: (x) material breach, default, termination or repudiation by any party to any Commitment Letter or any definitive document related to the Financing of any provisions of the Commitment Letters or any definitive document related to the Financing or (y) material dispute or disagreement between or among any parties to any Commitment Letters or any definitive documents related to the Financing; and (viC) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under if for any reason Purchaser believes in good faith that it will not be able to obtain all or any portion of the Financing on the terms, in the manner or from the sources contemplated by the Commitment Letters and or the definitive agreements documents relating to the Financing. ParentAs soon as reasonably practicable, Merger Sub and the Guarantors shall not, without the prior written consent but in any event within five (5) days of the Companydate Seller delivers Purchaser a written request, agree to or permit Purchaser shall provide any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements information reasonably requested by Seller relating to the Financing if such termination, amendment, supplement, modification or waiver would any circumstances referred to in clause (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount), (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact of the immediately preceding sentence. For the avoidance of doubt, the Closing is not conditioned upon Purchaser’s ability to obtain financing. (b) Seller shall, and shall cause each of Parent its Subsidiaries to, and shall use its commercially reasonable efforts to cause the officers, employees, representatives and advisors of Seller and each of its Subsidiaries to, provide to Purchaser and Otsuka such cooperation, at Purchaser’s sole cost and expense, reasonably requested in writing by Purchaser to assist Purchaser in obtaining the Otsuka Loan, including delivering to Purchaser and Otsuka monthly the financial information required pursuant to Section 4.9 (Monthly Financial Statements), assisting in the preparation of presentation or Merger Subother materials requested by Otsuka, having its senior officers attend and participate in calls or meetings as applicablerequested by Purchaser or Otsuka to discuss the Otsuka Loan, to enforce its rights against and executing and delivering any certifications, legal opinions or other parties documents related to the Financing Letters Business and the Purchased Assets. For the avoidance of doubt, unless such breach is caused by Seller’s willful misconduct or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies gross negligence, a breach of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 4.13(b) shall require, and in no event permit Purchaser to assert any rights or remedies under Section 6.1(a)(i) or Section 9.1 (Termination), which, for purposes of clarity, means that Seller’s failure to comply with this covenant would not result in a failure of Seller to satisfy any closing condition or permit Purchaser to terminate this Agreement. For purposes of further clarity, regarding the immediately preceding sentence, in the event of Seller’s willful misconduct or gross negligence, Purchaser shall the reasonable best efforts of Parent be entitled to all available rights and remedies under this Agreement or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, at law or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)equity.

Appears in 1 contract

Sources: Asset Purchase Agreement (Wright Medical Group Inc)

Financing. (a) Each Subject to the other terms and conditions of Parent this Agreement, Purchaser shall use, and Merger Sub shall use cause the Subsidiaries of Purchaser to use, their respective commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper reasonably necessary or advisable to arrange and consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing LettersFinancing, including using commercially reasonable best efforts to (i) maintain in effect the Debt Commitment Letter and comply with satisfy on a timely basis (taking into account the expected timing of the Marketing Period) all conditions to the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter and the definitive agreements to be entered into pursuant thereto, to the extent applicable to or within the control of Purchaser or its Subsidiaries (or on other terms thatthan any condition where the failure to be so satisfied is a direct result of the Company Group’s failure to provide the cooperation described in Section 4.1(i)), (ii) negotiate, execute and deliver definitive agreements with respect to conditionality, are not such Financing on the terms contained in the Debt Commitment Letter or otherwise no less favorable to Parent or Purchaser and Merger Sub than the terms and conditions (including market the “flex” provisions) contemplated by the Debt Commitment Letter and the Fee Letter, (iii) comply with its obligations under the Debt Commitment Letter, including to satisfy on a timely basis all conditions precedent to funding in the Debt Commitment Letter and such definitive agreements thereto and to consummate the Financing at or prior to the Closing, (iv) in the event that the conditions to Closing under this Agreement and the conditions to the availability of the Financing under the Debt Commitment Letter are satisfied, obtain a sufficient amount of the Financing to enable Purchaser and Merger Sub to consummate the transactions contemplated by this Agreement, and (v) if appropriate and practical under the circumstances and available sources of cash are not otherwise available to consummate the transactions contemplated herein, enforce its rights under the Debt Commitment Letter and Fee Letter. Purchaser and Merger Sub shall keep Sellers’ Representative and the Company informed on a reasonably current basis in reasonable detail of the status of its efforts to arrange the Financing and provide the Company with copies of all executed definitive agreements related to the Financing. Subject to the terms and upon satisfaction of the conditions set forth in the Debt Commitment Letter), Purchaser and Merger Sub shall use its commercially reasonable efforts to cause the Debt Financing Sources to provide the Financing on the Closing Date. In the event any portion of the Financing becomes unavailable on the terms and conditions (iiiincluding any “flex” provisions) satisfy on a timely basis contemplated in the Debt Commitment Letter and the Fee Letter, and such portion is reasonably required to consummate the transactions contemplated by this Agreement, including without limitation, to pay the Final Merger Consideration, the Repaid Indebtedness, the Final Sellers’ Transaction Expenses and all conditions applicable other fees and expenses and other payment obligations required to Parent be paid by Purchaser and Merger Sub in the Financing Letters connection with this Agreement, Purchaser and Merger Sub shall (A) promptly notify Sellers’ Representative and the definitive agreements related thereto Company and (including by consummating the Equity B) use their commercially reasonable efforts to arrange to obtain Alternative Financing in an amount at or prior least equal to the Closing on amount of such portion, upon terms and conditions not materially less favorable to Purchaser and its Subsidiaries than the terms and subject to the conditions set forth in the Equity Funding Debt Commitment Letter) (or, if necessary or deemed advisable by Parent, seek as promptly as practicable following the waiver occurrence of conditions applicable to Parent such event. Purchaser and Merger Sub contained shall promptly (and in such any event within two (2) Business Days) notify Sellers’ Representative and the Company in writing (I) of any breach or default by Purchaser or Merger Sub under the Debt Commitment Letter or such any definitive agreements related thereto or, to the knowledge of the Purchaser or Merger Sub, any other party to the Debt Commitment Letter or any definitive agreements related thereto, (II) if for any reason either Purchaser or Merger Sub at any time believes it will not be able to obtain all or any portion of the Financing on the terms, in the manner or from the sources contemplated by the Debt Commitment Letter or any definitive agreements related thereto and (III) of the receipt by either Purchaser or Merger Sub or any of their respective Representatives of any written notice or other written communication from any Debt Financing Source or other Person with respect to (x) any actual or potential breach (or threatened breach), (iv) upon default, termination or repudiation by any party to the satisfaction Debt Commitment Letter, any definitive agreement related thereto or waiver any provision of the conditions financing contemplated pursuant to Parentthe Debt Commitment Letter or any definitive agreement related thereto (including any proposal by any lender named in the Debt Commitment Letter to withdraw, terminate, reduce the amount of financing or delay the timing of financing contemplated by the Debt Commitment Letter), including any Alternative Financing or (y) any material dispute or disagreement between or among any parties to the Debt Commitment Letter or any definitive agreement related thereto that Purchaser or Merger Sub believes in good faith could result in an inability to receive or a delay in Purchaser’s and or Merger Sub’s obligations receipt of the proceeds of the Financing, and in any such case, Purchaser and Merger Sub shall provide any information relating to consummate any of the Offer foregoing circumstances as soon as reasonably practicable (and in any event within two (2) Business Days) following the MergerCompany’s reasonable request therefor; provided, consummate that in no event shall Purchaser or Merger Sub be required to disclose any information that is subject to attorney-client or similar privilege if Purchaser or Merger Sub has used commercially reasonable efforts to disclose such information in a way that would not waive such privilege. In the Financing event that Purchaser or Merger Sub does not provide access or information in reliance on the proviso to the immediately preceding sentence, Purchaser or Merger Sub shall provide written notice to the Company that such access or information is being withheld and cause Purchaser and Merger Sub shall use commercially reasonable efforts to communicate, to the lenders and extent feasible, the other Persons committing applicable information in a way that would not violate the applicable obligation or risk waiver of such privilege. Prior to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, neither Purchaser nor Merger Sub and the Guarantors shall notshall, without the Company’s prior written consent, consent of the Company, agree to or permit (1) any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision or remedy under, the Financing Letters Debt Commitment Letter or the definitive agreements relating to the Financing Fee Letter if such termination, amendment, supplement, modification or waiver would (Aa) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose imposes new or additional conditions precedent to the availability of the Financing conditions, or otherwise expand, amend expands or modify modifies any of the conditions precedent conditions, to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent Purchaser’s or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to ’s receipt of the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained thereinb).

Appears in 1 contract

Sources: Merger Agreement (Prestige Brands Holdings, Inc.)

Financing. (a) Each of Parent and Merger Sub Buyer shall use its reasonable best efforts to (and shall cause its Affiliates and its and its Affiliates’ Representatives to use their respective reasonable best efforts to) take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange, consummate and obtain the Financing on a timely basis on the terms and subject only conditions described in the Commitment Letter at or prior to the conditions (including the market “flex” provisions) set forth in the Financing LettersClosing, including using its reasonable best efforts to (i) maintain in effect and comply with its obligations under the Financing LettersCommitment Letter in accordance with the terms and conditions thereof (subject to Buyer’s right to amend, restate, amend and restate, modify, supplement and/or waive the Commitment Letter and the related definitive debt agreements in accordance herewith), provided that such efforts shall not require any material modification of, or waiver of any rights under, the Commitment Letter, or any material payment or concession that would not be required under the terms of the Commitment Letter as in effect on the date hereof and disclosed to Seller, (ii) promptly negotiate and enter into definitive agreements (which, and documents with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with Financing (the funding of the Debt Financing) with respect to the “Debt Financing Agreements”) on the terms and subject only to conditions contained in the conditions Commitment Letter (including the market any “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letterprovisions applicable thereto), (iii) satisfy or cause to be satisfied on a timely basis (or obtain a waiver of) all conditions required for funding of the Financing and applicable to Parent and Merger Sub Buyer in the Financing Letters Commitment Letter and the definitive agreements related thereto Debt Financing Agreements to the fullest extent that they are within its control, (including by consummating iv) assuming that all conditions contained in the Equity Commitment Letter have been satisfied or waived, consummate the Financing at or prior to the Closing (including by instructing the parties to the Commitment Letter to provide the Financing, on the terms and subject to the conditions set forth in the Equity Funding Commitment Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating Commitment Letter at or prior to the Financing and Closing. (vib) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Buyer shall not, without the prior written consent of the Company, not (A) agree to or permit any termination of or amendment, restatement, amendment and restatement, supplement or other modification to be made toof, or grant waive any waiver of its rights under the Commitment Letter or (B) substitute or replace other debt or equity financing for all or any provision under, portion of the Financing Letters from the same or Alternative Financing sources, in each case, without Seller’s prior written consent, except Buyer shall have the definitive agreements relating right to amend, restate, amend and restate, supplement, modify or waive the Commitment Letter from time to time between the date hereof and Closing (x) solely to add lenders, lead arrangers, bookrunners, syndication agents or any person with similar roles or titles that have not executed the Commitment Letter as of the date hereof or (y) in any other manner, in each case to the Financing if extent such terminationamendment, amendmentrestatement, amendment and restatement, supplement, modification or waiver would not have the effect of (Ai) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that reducing the aggregate amount of the Financing would under the Commitment Letter (except to the extent any other portion of the Financing contemplated by the Commitment Letter is increased by a like amount) to an aggregate principal (and net cash proceeds) amount less than the Required Amount, (ii) imposing new or additional conditions to the receipt of the Financing or otherwise adversely amending, restating, amending and restating, supplementing, modifying, substituting, replacing or expanding any of the conditions to the receipt of the Financing or (iii) delaying or prevent the Closing or impairing or otherwise adversely impacting the ability of Buyer to satisfy the conditions to obtaining the Financing or the ability of Buyer to consummate the transactions contemplated by this Agreement or enforce its rights against the other parties to the Commitment Letter. Upon any amendment, restatement, amendment and restatement, supplement, modification, substitution, replacement or waiver of the Commitment Letter, Buyer shall provide a copy thereof to Sellers, and references to the “Commitment Letter” shall include such documents as permitted to be below amended, supplemented or modified under this ‎Section 5.14(b), and references to the “Financing” shall include the financing contemplated by the Commitment Letter as permitted to be amended, restated, amended and restated, supplemented or modified under this ‎Section 5.14(b). (c) If for any reason all or any portion of the Financing becomes unavailable on the terms and conditions or from the sources contemplated by the Commitment Letter (after taking into account any “flex” terms), Buyer shall as promptly as reasonably practicable notify Seller thereof and use its reasonable best efforts to arrange and obtain, and to negotiate and enter into definitive agreements with respect to, alternative debt financing from alternative sources (the “Alternative Financing”) (x) as promptly as reasonably practicable following the occurrence of such event (and in any event on or prior to the date on which the Closing should have occurred pursuant to ‎‎Section 2.03), (y) upon terms (including any “flex” provisions) no less favorable, in the aggregate, to Buyer than those in the Commitment Letter (including any “flex” provisions) and (z) in an amount required sufficient (taken as a whole with other cash, available lines of credit or other sources of immediately available funds) to pay the Required Amount. If any Alternative Financing is obtained in accordance with this ‎Section 5.14(c), Buyer shall promptly notify Seller thereof and references to the “Financing” and “Commitment Letter” (and other like term in this Agreement) shall include such Alternative Financing, as applicable. True and complete copies of each commitment letter and other agreement relating to any such Alternative Financing will be promptly provided to Seller (other than customary redactions solely in respect of the amounts, percentages and basis points of compensation and other similar economics and the pricing and other terms of the “flex” provisions, in each case, set forth therein). (d) Prior to the Closing, Seller shall, and shall cause the Companies to, use their reasonable best efforts to cooperate with Buyer to the extent necessary and customary (and reasonably requested by Buyer) in connection with the Buyer’s arrangement of the debt financing as contemplated by the Commitment Letter as in effect on the date hereof (and any Alternative Financing other than a bond financing), including using reasonable best efforts to: (i) furnish Buyer and its Debt Financing Sources with such customary financial information regarding the Companies as may be reasonably requested by Buyer to satisfy the obligations and conditions set forth in Annex IV to the Commitment Letter (provided that the only financial statements required shall be those set forth on Annex IV, those previously provided and those referenced in ‎Section 3.07 of the Disclosure Schedules), (Bii) impose new or additional conditions precedent upon reasonable notice and at mutually agreeable times, cause the Company’s senior management to participate in a reasonable number of meetings and presentations with prospective lenders; (iii) furnishing Buyer’s Debt Financing Sources access to the availability Financial Statements, any pertinent and customary information in the virtual data room as of the date hereof established by the Seller with respect to the Business and any other pertinent and customary information regarding the Business as may reasonably be requested by Buyer that has previously been made available to Buyer prior to the date hereof or that is available to the Company without undue burden and is customarily needed for debt financings of the type obtained in connection with transactions of the type contemplated by this Agreement; (iv) provide any required information under applicable “know your customer”, anti-money laundering rules and regulations and the USA Patriot Act of 2001, in each case at least five days prior to the Closing Date (to the extent requested in writing at least ten days prior to the Closing Date); and (v) assist in the preparation of and, in the case of the Companies, to execute and deliver, definitive financing documents, including guarantee and collateral documents and customary closing certificates as may be required by the Financing; provided that the Companies shall not be required to enter into any such document or instrument contemplated by the foregoing clauses which would be effective prior to the Closing; and provided, further, that, notwithstanding anything to the contrary contained in this Agreement (including this ‎Section 5.14), (A) nothing in this Agreement (including this ‎‎Section 5.14) shall require any such cooperation to the extent that it would (1) require Seller to waive or amend any terms of this Agreement or require Seller or any of its Affiliates (other than the Companies) or any Representatives of Seller, or any of its Affiliates to incur any liability or make any payment (other than amounts attributable to general overhead and internal personnel costs or amounts reimbursable pursuant to ‎Section 5.14(e)) or enter into any Contract (2) require the Companies to (x) agree to pay any commitment or other fee or reimburse any expenses in connection with the Financing prior to the Closing or (y) incur any liability or give any indemnity or otherwise expandcommit to take any action that is not contingent on the Closing, amend (3) unreasonably or modify significantly interfere with the ongoing business or operations of Seller, the Companies or any of their respective Affiliates, (4) require Seller or any of the conditions precedent Companies to take any action that would (x) violate any Applicable Law, (y) jeopardize any attorney-client privilege (but Seller and the Financing Companies shall use reasonable best efforts to grant access to or otherwise disclose information that is subject to such privilege in a manner which would not jeopardize such privilege) or (z) constitute a default under, or give rise to any right of termination, cancellation or acceleration of any right or obligation of such Person or to a loss of any benefit to which such Person is entitled under any provision of any other agreement or other instrument binding upon such Person, in each case, in a manner that would reasonably be expected to materially delay result in material harm to Seller, any of its Affiliates or prevent any Company, (5) require Seller, any of its Affiliates or Subsidiaries (other than the funding Companies), or their respective directors, managers, officers, general or limited partners, employees, counsel, financial advisors, auditors, agents and other authorized representatives to enter into or approve any Debt Financing Agreement or other definitive agreement or document related to the Financing or (6) cause any condition to Closing set forth in Article 8 to fail to be satisfied by the End Date, (B) no action, liability or obligation of the Companies or their respective directors, managers, officers, general or limited partners, employees, counsel, financial advisors, auditors, agents and other authorized representatives under any certificate, agreement, arrangement, document or instrument relating to the Financing shall be effective until the Closing and (C) the parties hereto agree that any information with respect to the prospects and plans for the Companies’ business and operations in connection with the Financing will be the sole responsibility of Buyer, and none of Seller, any of its Affiliates, the Companies or their directors, managers, officers, general or limited partners, employees, counsel, financial advisors, auditors, agents and other authorized representatives shall have any liability or incur any damages 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 Buyer intends to operate, or cause to be operated, the Business after the Closing. (e) Without limiting the following sentence, Buyer acknowledges and agrees that neither Seller nor any of its Affiliates nor, prior to the Closing, the Companies, shall have any responsibility for, or incur any liability to any Person (x) under or with respect to the Financing or (y) any cooperation provided pursuant to this ‎‎Section 5.14, except for Actual Fraud (provided that this clause (y) shall not limit Seller’s obligations pursuant to ‎Section 5.14(d)). Notwithstanding anything to the contrary contained in this Agreement (including this ‎‎‎Section 5.14), (i) Buyer shall promptly upon written request reimburse Seller for all documented costs and expenses (including documented attorneys’ fees) incurred by Seller, its Affiliates or the Companies in connection with the Financing and/or the arrangement thereof (including the actions and cooperation contemplated by ‎‎Section 5.14(d)); provided that Buyer shall not be required to reimburse Seller for any costs and expenses incurred by Seller with respect to financial statements, financial information or other materials prepared prior to the date hereof that may be used in connection with the Financing and (ii) Buyer shall indemnify and hold harmless Seller, its Affiliates, the Companies and their respective directors, managers, officers, employees, agents, auditors other authorized representatives and professional advisors from and against any and all damages actually suffered by any of them in connection with the Financing and/or the arrangement thereof (including any arising from or relating to the actions and cooperation contemplated by ‎‎Section 5.14(d))) or any information provided in connection therewith; provided, however, that the foregoing shall not apply to the extent that such damages resulted from the willful misconduct, bad faith or gross negligence of Seller, its Affiliates, the Companies or their respective pre-Closing directors, managers, officers, employees, agents, other authorized representatives and professional advisors. (f) Prior to the Closing, Buyer shall give Seller prompt notice of (i) any material breach or material default by any party to the Commitment Letter of which Buyer becomes aware prior to the Closing, (ii) the receipt of any written notice or written communication from any party to the Commitment Letter with respect to any actual or threatened breach, default, withdrawal, termination or repudiation of any provision of such Commitment Letter, (iii) any material written dispute or disagreement between or among Buyer and any of the other parties to the Commitment Letter, and (iv) Buyer becoming aware of any fact, circumstance, event or other reason that could reasonably be expected to result in Buyer not being able to timely obtain all or any portion of the Financing on the terms, in the manner or from the sources contemplated by the Commitment Letter. Buyer shall keep Seller reasonably informed on a reasonably current basis in reasonable detail of the status of its efforts to arrange the Financing (or satisfaction Alternative Financing in accordance with ‎‎Section 5.14(b)). (g) Seller hereby consents to the customary use of all of the conditions Companies’ corporate logos in connection with the initial syndication or marketing 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 Companies or the reputation or goodwill of the Companies or their marks. (h) Notwithstanding anything to the Financingcontrary herein, it is understood and agreed that (A) on the Closing Date or condition precedent set forth in ‎‎Section 8.01(b)(ii) as applied to Sellers’ obligations under this ‎‎Section 5.14 shall be deemed to be satisfied and (CB) adversely impact Seller shall be entitled to exercise each of the ability of Parent or Merger Sub, as applicable, termination rights applicable to enforce its rights against other parties it in ‎‎Article 10 hereof (subject to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies terms and conditions thereof), in each case, notwithstanding any breach of any amendmentthis ‎Section 5.14 by Seller, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to unless the Financing promptly upon execution thereofhas not been obtained as a direct and primary result of Seller’s material breach of its obligations under this ‎‎Section 5.14. Buyer acknowledges and agrees that obtaining the Financing is not a condition to Closing. Notwithstanding anything to the contrary in this Agreement, nothing contained Seller expressly agrees that a breach of ‎Section 5.14(a), ‎‎5.14(b), ‎‎5.14(c) and ‎5.14(f) by Buyer shall not result in this Section 5.04 shall require, and in no event shall the reasonable best efforts a failure of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).t

Appears in 1 contract

Sources: Stock Purchase Agreement (Masco Corp /De/)

Financing. (a) Each of Parent and Merger Sub Acquiror shall use its commercially reasonable best efforts to 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 arrange financing on the terms and subject only conditions no less favorable to the conditions (including the market “flex” provisions) set forth Acquiror as described in the Financing LettersDebt Commitment Letter the (“Debt Financing”), including using its commercially reasonable best efforts to (i) maintain in effect negotiate definitive agreements with respect thereto on terms and comply with the Financing Letters, conditions set forth therein and (ii) negotiate and enter into satisfy all conditions applicable to Acquiror in such definitive agreements (which, that are reasonably within its control. Acquiror shall provide Company with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding prompt written notice of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in any material breach of the Debt Commitment Letter (by any party) or any termination of the Debt Commitment Letter. In the event any portion of the Debt Financing becomes unavailable on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth contemplated in the Debt Commitment Letter), Acquiror shall use its commercially reasonable efforts to arrange to obtain any such portion from alternative sources on terms and conditions no less favorable to Acquiror (iiias determined in the reasonable judgment of Acquiror) satisfy as promptly as reasonably practicable following the occurrence of such event. Acquiror shall keep Company informed on a timely reasonably current basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver reasonable detail of the conditions status of its efforts to Parent’s and Merger Sub’s obligations to consummate arrange the Offer and the Merger, consummate the Debt Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or not permit any termination of or amendment, supplement material amendment or modification to be made to, or grant any waiver of any material provision or remedy under, the Debt Commitment Letter without first consulting with Company or, if such amendment would or would be reasonably expected to have a Material Adverse Effect on Acquiror, without first obtaining Company’s prior written consent (which consent shall not be unreasonably withheld, conditioned or delayed). (b) Company shall use commercially reasonable efforts to provide, and to cause its Subsidiaries and Representatives to provide, all cooperation reasonably requested by Acquiror in connection with the Debt Financing, including any sale of securities required by the lenders in connection therewith (provided that such requested cooperation does not unreasonably interfere with the ongoing operations of Company and its Subsidiaries), including its commercially reasonable efforts to (i) provide financial and other information relating to Company and its Subsidiaries to the entities that have committed to provide or otherwise entered into agreements in connection with the Debt Financing Letters or other financings in connection with the definitive agreements transactions contemplated hereby (the “Financing Parties”) (including information to be used in the preparation of an information package regarding the business, operations, financial projections and prospects of Acquiror and Company customary for such financing or reasonably necessary for the completion of the Debt Financing by the Financing Parties to the extent reasonably requested by Acquiror (including prior real estate title commitments, surveys, environmental reports and similar information)) to assist in the preparation of customary offering or information documents to be used for the completion of the Debt Financing, (ii) participate in a reasonable number of meetings (including customary one-on-one meetings with the parties acting as lead arrangers for the Debt Financing and senior management and other Representatives, with appropriate seniority and expertise, of Company), presentations, road shows, drafting sessions, due diligence sessions (including accounting due diligence sessions) and sessions with the rating agencies, (iii) assist in the preparation of (A) customary offering documents, bank information memoranda, prospectuses and similar documents (including historical and pro forma financial statements and information) for the Debt Financing, and (B) materials for rating agency presentations, (iv) cooperate with the marketing efforts for the Debt Financing (including consenting to the use of Company’s and its Subsidiaries’ logos), (v) execute and deliver (and use commercially reasonable efforts to obtain from its advisors), and cause its Subsidiaries to execute and deliver (or use commercially reasonable efforts to obtain from its advisors), customary certificates (including a certificate of the principal financial officer of 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 Debt Financing), legal opinions or other documents and instruments relating to guarantees and other matters ancillary to the Debt Financing if as may be reasonably requested by Acquiror, including such terminationdocuments as Acquiror reasonably requests whereby certain Subsidiaries of Company agree to become “Restricted Subsidiaries” under the Note Agreement described in Section 3.16 of the Acquiror Disclosure Schedule, amendmentcontingent upon the consummation of the amalgamation described in the Plan of Arrangement or any later time (which shall, supplementsubject to an express prohibition contained in a court order against the applicable Subsidiary obtained as a result of an action commenced by a third party, modification or waiver would be an absolute obligation, not qualified by commercially reasonable efforts), (vi) assist in (A) reduce the aggregate amount preparation of, entering into and syndication of one or more credit agreements, note purchase agreements, indentures, currency or interest hedging agreements or other agreements, including by (1) refraining from entering into any competing financing transactions and (2) entering into, or causing its Subsidiaries to enter into, restricted subsidiary agreements in connection with Acquiror’s senior note agreement, provided that Company may authorize and designate an officer of Acquiror to execute such restricted subsidiary agreements (which shall, subject to an express prohibition contained in a court order against the applicable Subsidiary obtained as a result of an action commenced by a third party, be an absolute obligation, not qualified by commercially reasonable efforts), and (B) the amendment or termination of any portion of Company’s or its Subsidiaries’ existing credit agreements, note purchase agreements, capital lease agreements, currency or interest hedging agreements, letters of credit or other agreements, in each case, on terms satisfactory to Acquiror and that are reasonably requested by Acquiror in connection with the Debt Financing, provided that no obligation of Company or any of its Subsidiaries under any such agreements or amendments shall be effective until the consummation of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount amalgamation contemplated by the Plan of Arrangement or any later time, (vii) have Company’s independent accountants provide their reasonable cooperation and assistance, (viii) provide authorization letters to the Financing Letters on Parties authorizing the distribution of information to prospective private side and public side lenders and containing a representation to the Financing Parties that the public side versions of such documents, if any, do not include material non-public information about Company or its Subsidiaries or securities, (ix) cooperate reasonably with Acquiror’s financing sources’ due diligence, to the extent customary and reasonable and to the extent not unreasonably interfering with the business of Company, (x) refrain from pursuing any financing transactions that may delay, impede or otherwise adversely affect the Debt Financing and other financings in connection with the transactions contemplated hereby and (xi) assist the Financing Parties to benefit from the existing lending relationships of Company and its Subsidiaries; provided that no requested cooperation pursuant to this Section 4.4(b) shall delay the Closing and, until the consummation of the amalgamation contemplated by the Plan of Arrangement, neither Company nor any of its Subsidiaries shall (A) be required to pay any commitment or other similar fee, (B) have any liability or obligation under any credit agreement or other agreement or document related to the Debt Financing (or alternative financing that Acquiror may raise in connection with the transactions contemplated by this Agreement) or (C) be required to incur any other liability or expense in connection with the Debt Financing (or any alternative financing that Acquiror may raise in connection with the transactions contemplated by this Agreement) unless reimbursed or reasonably satisfactorily indemnified by Acquiror. Neither Company nor any of its Subsidiaries shall be required by this Section 4.4(b) to provide access to or to disclose (i) information that, if provided, would adversely affect the ability of Company (or any of its Subsidiaries) to assert attorney-client or attorney work product privilege or a similar privilege, (ii) information that, in the reasonable opinion of Company’s legal counsel, may result in a violation of any applicable Law or Order or any binding Contract entered into prior to the date of this Agreement unless or (iii) information that Company reasonably believes is competitively sensitive. Company shall use its commercially reasonable efforts to make appropriate substitute disclosure arrangements under circumstances in which the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount restrictions of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)preceding sentence apply.

Appears in 1 contract

Sources: Arrangement Agreement (World Color Press Inc.)

Financing. (a) Each Subject to the terms and conditions of Parent this Agreement, BCHI and Merger Sub shall the Company will use their reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the Financing financing in an aggregate amount necessary to effect the Refinancing, and to otherwise complete the Transactions, including paying expenses associated with the Transactions, which financing will be on the terms and subject only conditions satisfactory to BCHI and the conditions Company, each in its sole and absolute discretion (including the market “flex” provisions) set forth in Financing”). BCHI and the Financing Letters, including using Company will each use its reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (iiI) negotiate and enter into commitments for, and then definitive agreements (which, with respect to to, the bridge facility documentationFinancing as promptly as practicable (such commitments and definitive agreements, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt “Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment LetterAgreements”), (iiiII) satisfy on a timely basis (taking into account the Marketing Period) all conditions applicable to Parent and Merger Sub in the Financing Letters Agreements applicable to BCHI and the definitive agreements related thereto Company and their respective Subsidiaries to obtaining the Financing as promptly as practicable, (including by consummating III) consummate the Equity Financing at or prior to the Closing and (IV) enforce the counterparties’ obligations and its rights under the Financing Agreements, including by suit or other appropriate proceeding to cause the lenders under the Financing to fund in accordance with their respective commitments if all conditions to funding the Financing in the applicable Financing Agreements have been satisfied or waived. BCHI and the Company will keep each other reasonably informed on a timely basis of the status of its respective efforts to arrange the Financing and to satisfy the conditions thereof. If any portion of the amount of the Financing becomes reasonably likely to be unavailable on the material terms and conditions contemplated by the applicable Financing Agreements, each of BCHI and the Company will use its commercially reasonable efforts to arrange and obtain alternative financing from alternative sources in an amount sufficient to consummate the Transactions with terms and conditions not materially less favorable, taken as a whole, to the Parties than the terms and subject to the conditions set forth in the Equity Funding Letterapplicable Financing Agreements (“Alternative Financing”) as promptly as practicable following the occurrence of such event but no later than the final day of the Marketing Period. In such event, (or1) the term “Financing” will be deemed to include the Alternative Financing, if necessary or and (2) the term “Financing Agreements” will be deemed advisable by Parent, seek to include any commitment letters and definitive agreement with respect to the waiver of conditions applicable to Parent and Merger Sub Alternative Financing. Notwithstanding anything contained in this Section 6.11 or in any other provision of this Agreement, in no event will the Parties be required (i) to amend or waive any of the terms or conditions hereof or of the Financing Agreements or (ii) to consummate the Closing any earlier than required under clause (b) of the first sentence of Section 1.3. (b) Each Party will provide, and will cause its Subsidiaries to provide, and will use reasonable best efforts to cause its Representatives to provide, all cooperation that is customary and necessary in connection with arranging, obtaining and syndicating the Financing and causing the conditions in the Financing Agreements to be satisfied, including using reasonable best efforts in (i) assisting with, and designating one or more members of senior management of the Company to participate in, the preparation of customary offering and syndication documents and materials, including, including private placement or offering memoranda, bank information memoranda, bank syndication material and packages, lender and investor presentations, rating agency materials and presentations and similar documents and materials, in connection with the Financing, and providing reasonable and customary authorization letters to the Financing Sources authorizing the distribution of information to prospective lenders and containing customary information (all such Debt Commitment Letter documents and materials, collectively, the “Offering Documents”), (ii) preparing and furnishing to the Financing Sources as promptly as practicable all Required Information to the extent it is available to such Party and all other information and disclosures relating to such Party and its Subsidiaries (including their businesses, operations, financial projections and prospects) as may be reasonably necessary in preparation of the Offering Documents (including execution of customary authorization and management representation letters), (iii) designating one or more members of senior management of such definitive agreements related thereto)Party to participate in a reasonable number of due diligence sessions in connection with the Financing, including direct contact between such senior management and the Financing Sources and potential lenders in the Financing, drafting sessions, management presentations, rating agency presentations, lender meetings and one or more road shows, (iv) upon the satisfaction or waiver of the conditions requesting such Party’s independent auditors to Parentcooperate in obtaining customary accountant’s comfort letters and Merger Subconsents from such Party’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closingindependent auditors, (v) enforce assisting in the preparation of, and executing and delivering, definitive financing documents, including guarantee and collateral documents, hedging agreements and other certificates and documents (including a certificate of the chief financial officer of such Party and its rights under the Financing Letters and the definitive agreements relating Subsidiaries with respect to solvency matters before giving effect to the Financing and or the consummation of the Transactions), (vi) otherwise comply with Parent’s subject to any contractual agreement in effect, facilitating the pledging of collateral for the Financing, including taking commercially reasonable actions necessary to permit the Financing Sources to evaluate such Party and Merger Sub’s covenants its Subsidiaries’ real property and current assets, cash management and accounting systems, policies and procedures for the purpose of establishing collateral arrangements and establishing, as of the Effective Time, bank and other obligations under accounts and blocked account agreements and lockbox arrangements in connection with the Financing, (vii) obtaining from such Party’s existing lenders such consents, approvals, authorizations and instruments which may be reasonably necessary in connection with the Financing Letters and the definitive agreements relating collateral arrangements, including customary payoff letters, lien releases, instruments of termination or discharge, (viii) preparing any supplements to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to above information as may be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating required pursuant to the Financing if such termination, amendment, supplement, modification or waiver would Agreements and (Aix) reduce cooperating with the aggregate amount of any portion of the Financing (including by increasing the amount of fees other Parties to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of satisfy the conditions precedent to the Financing to the extent within the control of such Party and its Subsidiaries, and taking all corporate or limited liability company actions, subject to the occurrence of the Effective Time, reasonably necessary to permit the consummation of the Financing and to permit the proceeds thereof to be made available to the Company and the Surviving Company immediately upon the Effective Time. In connection with the foregoing, the Company will file with the SEC all Company Reports for the annual and quarterly fiscal periods ending on and after the date hereof as soon as practicable but in any event not later than (i) 90 days following the end of the Company’s fiscal year, in the case of annual reports on Form 10-K and (ii) 45 days following the end of each fiscal quarter of the Company, in the case of quarterly reports on Form 10-Q. Each of the Company and BCHI hereby consent to the use of their and their respective Subsidiaries’ logos in connection with the Financing in a form and manner agreed with the Party whose logo is being used; except that such logos are to be used solely in a manner that would is not intended, or reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicablelikely, to enforce its rights against other parties to harm or disparage the Financing Letters Party whose logo is being used or the definitive agreements with respect to the Financingreputation or goodwill of such Party. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the Each Party will use its reasonable best efforts of Parent or Merger Sub to periodically update any Required Information (to the extent it is available) to be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or included in any amount Offering Document to be used in excess connection with such Financing such that any such Required Information does not contain any untrue statement of that contemplated by, the Equity Funding Letter, material fact or (ii) pay omit to state any material fees fact necessary in excess of those contemplated by order to make the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions statements contained therein)therein not misleading.

Appears in 1 contract

Sources: Merger Agreement (Fusion Telecommunications International Inc)

Financing. (ai) Each of Parent The Purchaser shall, and Merger Sub shall cause its affiliates to, use commercially reasonable best efforts to take, or cause to be taken, all actions and to appropriate action, do, or cause to be done, all things reasonably necessary, proper or advisable under applicable Laws, and to execute and deliver, or cause to be executed and delivered, such instruments and documents as may be reasonably required, to arrange and consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject only to the conditions set forth contained in the Equity Funding Letter) (orFinancing Commitments, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable including using its commercially reasonable efforts to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of cause the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate in the Financing Commitments that are within the Purchaser’s control to be satisfied and to cause the lenders and financial institutions providing the other Persons committing to fund the Debt Financing to fund the Financing at the Closing, Debt Financing. (vii) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors The Purchaser shall not, without the prior written consent of the Company, not agree to or permit any termination of or material amendment, supplement or other modification to be made toof, or grant waive any waiver of any provision its rights under, the any Financing Letters Commitments or the definitive agreements relating to the Financing without the Seller’s prior written consent, not to be unreasonably withheld, except that the Purchaser may amend, supplement or otherwise modify the Debt Financing Commitments if such termination, amendment, supplementsupplement or other modification would not be reasonably likely to materially impair or delay the funding of the Debt Financing or the Closing (it being understood that, subject to the requirements of this clause (ii), such amendment, supplement or other modification (1) does not contain additional or waiver would modified conditions or other contingencies to the funding of the Debt Financing relative to those contained in Debt Financing Commitments and (A2) reduce is otherwise not reasonably likely to impair or delay the aggregate amount funding of the Debt Financing or the Closing (it being understood than, subject to the requirements of this clause (ii), such amendment, supplement or other modification of the Debt Financing Commitments may provide for the assignment of a portion of the Debt Financing Commitment to additional agents or arrangers and grant such persons approval rights with respect to certain matters as are customarily granted to additional agents or arrangers). (iii) If any portion of the Financing becomes unavailable on the terms and conditions contained in the Financing Commitments, the Purchaser shall promptly notify the Seller, and the Purchaser shall use its commercially reasonable efforts to obtain, as promptly as practicable following the occurrence of such event, replacement commitments on terms that will enable the Purchaser to consummate the transactions contemplated by this Agreement and that are not less favorable in the aggregate (including as determined by increasing the amount of fees to be paid or original issue discount as compared Purchaser in its reasonable judgment) to the fees Purchaser and original issue discount contemplated by the Seller than those contained in the Financing Letters on Commitments. The Purchaser shall deliver to the date Seller complete and correct copies of this Agreement unless all amendments, supplements, other modifications or agreements pursuant to which any amended, supplemented, modified or replacement commitments shall provide the Purchaser with any portion of the Financing; provided that the Purchaser may redact from any such copies the fee amounts and pricing information payable to their Financing sources. (iv) The Seller shall, and shall cause its subsidiaries to, and shall use its commercially reasonable efforts to cause its and its subsidiaries’ independent accountants, legal counsel and other advisors to, provide such reasonable cooperation in connection with the arrangement of the Debt Financing as may be reasonably requested by the Purchaser or Equity their Financing is increased by a corresponding amountsources, including (A) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountparticipation in meetings, drafting sessions, presentations, road shows and due diligence session, (B) impose new or additional conditions precedent using commercially reasonable efforts to furnish the availability of Purchaser and its Debt Financing sources with the Financing or otherwise expandRequired Financial Information and such other information and projections reasonably requested by the Purchaser in connection with the Debt Financing, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact assisting the ability Purchaser and its Debt Financing sources in the preparation of Parent or Merger Sub(1) offering documents and other informational and marketing materials and documents to be used for the Debt Financing and (2) materials for rating agency presentations, as applicable(D) reasonably cooperating with the marketing efforts of the Purchaser and its Debt Financing sources, including using commercially reasonable efforts to enforce its rights against other parties cause the syndication of the Debt Financing to benefit materially with Seller’s and Company’s existing lending relationships, (E) reasonably facilitating the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies pledging of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the collateral including real property collateral and execution and delivery of definitive agreements relating to the Financing and customary deliverables and (F) using commercially reasonable efforts to obtain accountants’ “comfort letters”, accountants’ consent letters, legal opinions, customary landlord lien and access waivers, surveys, appraisals and title insurance as reasonably requested by the Purchaser; provided that none of the Seller nor any of its subsidiaries shall be required to pay any commitment or other fee or incur any other liability in connection with the Debt Financing; and provided further that such requested cooperation does not unreasonably interfere with the ongoing operations of the Seller and its subsidiaries. The Purchaser shall, promptly upon execution thereofrequest by the Seller, reimburse the Seller for all reasonable and documented out-of-pocket costs incurred by the Seller or any of its subsidiaries in connection with such cooperation. Notwithstanding anything The Seller shall have the right to consent to the contrary use of its and its subsidiaries’ logos in this Agreementconnection with the Debt Financing. (v) The Purchaser shall keep the Seller reasonably informed on a timely basis of any material developments relating to the Financing. (vi) The Purchaser acknowledges that the information being provided to it in connection with the Financing is subject to the terms of Section 6.02(a). (vii) The Seller understands that the majority of the Purchase Price will be financed with proceeds of the Debt Financing, nothing contained in which will be provided by third party sources. The Seller accordingly acknowledges that the obligations of the Purchaser under this Section 5.04 shall require5.03(b) do not require the Purchaser or any of its affiliates to provide the Debt Financing themselves if such third party sources fail to provide the Debt Financing or to guarantee that such third party sources will provide the Debt Financing but only requires that the Purchaser use its commercially reasonable efforts to arrange and consummate the Debt Financing. (viii) In the event the Seller or any Transferred Entity suffers on or prior to the Closing any casualty or loss to any building, and in no event shall structure, material fixture or material improvement included within the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated byTransferred Real Property, the Equity Funding LetterSeller shall assign to the Purchaser insurance proceeds sufficient to cover such casualty or loss or otherwise make adequate provisions to bear the cost of the repair or replacement of such building, structure, material fixture or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)improvement.

Appears in 1 contract

Sources: Purchase Agreement (Global Brass & Copper Holdings, Inc.)

Financing. (a) Verizon shall have the right to designate, in consultation with the Company, the final form of the Spinco Securities and related agreements (including registration rights arrangements and indenture) embodying the terms set forth in Exhibit C of the Distribution Agreement and to prepare the documents related thereto, provided that (i) the Company shall have the right and obligation, in consultation with Verizon, to negotiate and approve covenants that are generally consistent with then current market practice for 144A debt offerings and economic terms of the Spinco Securities and related agreements (including registration rights arrangements and indenture) that are not specified on Exhibit C of the Distribution Agreement as long as such covenants and economic terms are consistent with Exhibit C of the Distribution Agreement and shall allow the Spinco Securities to be valued at par upon issuance (including, for the avoidance of doubt, for purposes of the Debt Exchange if Verizon elects to consummate such Debt Exchange at the time of Closing) and allow for the timely consummation of the Debt Exchange (if elected by Verizon) and (ii) any other material terms of the Spinco Securities and related agreements that are not addressed by clause (i) of this Section 7.20(a) or on Exhibit C of the Distribution Agreement shall be subject to the joint approval of the parties, acting reasonably. For the avoidance of doubt, if Verizon elects to consummate the Debt Exchange, it shall have the sole right to structure the arrangements relating thereto with underwriters, arrangers and other third parties relating to the Debt Exchange; provided that Verizon shall keep the Company reasonably updated regarding such arrangements. (b) Each of Parent Verizon, Spinco and Merger Sub the Company shall cooperate in connection with the preparation of all documents and the making of all filings required in connection with the New Financing, the Spinco Securities and the Debt Exchange (if Verizon elects to consummate the Debt Exchange) and shall use their respective commercially reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all other things necessary, proper or advisable to consummate the New Financing, the issuance of the Spinco Securities and obtain the Financing on Debt Exchange (if Verizon elects to consummate the terms Debt Exchange) and subject only to the conditions (including other transactions contemplated in connection therewith. Without limiting the market “flex” provisions) set forth in generality of the Financing Lettersforegoing, including using each of Verizon, Spinco and the Company shall use their respective commercially reasonable best efforts to cause their respective employees, accountants, counsel and other representatives to cooperate with each other in (i) maintain participating in effect meetings, drafting sessions, due diligence sessions, management presentation sessions, “road shows” and comply sessions with rating agencies in connection with the Financing Letterssyndication or marketing of the New Financing, the Spinco Securities and the Debt Exchange (if Verizon elects to consummate the Debt Exchange), (ii) negotiate preparing offering memoranda, private placement memoranda, prospectuses and enter into similar documents deemed reasonably necessary by Verizon, Spinco or the Company, to be used in connection with consummating the New Financing, the issuance of the Spinco Securities and the Debt Exchange (if Verizon elects to consummate the Debt Exchange), (iii) executing and delivering all documents and instruments deemed reasonably necessary by Verizon, Spinco or the Company to consummate the New Financing, the issuance of the Spinco Securities and the Debt Exchange (if Verizon elects to consummate the Debt Exchange), including any underwriting or placement agreements, pledge and security documents, other definitive financing documents, including any intercreditor or indemnity agreements, or other requested certificates or documents as may be reasonably requested in connection with the New Financing, the Spinco Securities or the Debt Exchange (if Verizon elects to consummate the Debt Exchange), provided, however, that (A) no such agreements (which, with respect or documents shall impose any monetary obligation or liability on Spinco or the Company prior to the bridge facility documentation, Effective Time and (B) Verizon shall not be required until determined by Parent obligated to be incur any obligations in connection with the New Financing (other than the obligation to pay Spinco Debt Expenses as provided in the Distribution Agreement and the non-monetary cooperation obligations set forth above in this Section 7.20(b)), (iv) disclosing the terms and conditions of the New Financing, the Spinco Securities and the Debt Exchange (if Verizon elects to consummate the Debt Exchange), as reasonably likely to be appropriate, in the Registration Statements, and (v) taking all other actions reasonably necessary in connection with the funding New Financing, including any such actions required to permit the assumption by the Surviving Corporation of the Debt Financingdebt that is part of the New Financing and the Spinco Securities at the Effective Time. The obligations of Verizon, Spinco and the Company under this Section 7.20(b) with respect to the Debt New Financing on shall also apply to any Alternative Financing (as defined below). (c) No party shall modify any term of the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms thatany related fee agreement) without the consent of the Company and Verizon. Spinco and the Company, with respect to conditionalityacting reasonably, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth shall jointly participate in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver negotiation of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing New Financing, consistent with the terms and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent conditions of the Company, agree to or permit Commitment Letter. If for any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of reason any portion of the New Financing (including by increasing becomes unavailable or is insufficient to consummate the amount of fees to be paid or original issue discount as compared to the fees and original issue discount transactions contemplated by the Financing Letters Transaction Documents, the Company shall, as promptly as practicable following such event, take all actions necessary to obtain, in consultation with Verizon, and consummate on such terms as may then be available, including from alternate sources, alternative financing for the date of this Agreement unless same purposes as the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount purposes of the New Financing would (“Alternative Financing”). Any commitment fees associated with any Alternative Financing shall be below borne by the amount required Company. Verizon shall cooperate with the Company’s efforts to seek to obtain the Alternative Financing but shall not be obligated to incur any obligations in connection with the Alternative Financing (other than the obligation to pay Spinco Debt Expenses as provided in the Required Amount, Distribution Agreement and the non-monetary cooperation obligations set forth Section 7.20(b)). (Bd) impose new or additional conditions precedent The Company shall take all actions necessary to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the satisfy all conditions to the New Financing (or, if applicable, the Alternative Financing) on that are within its control, including arranging for the payoff, termination and/or cancellation of all loan documents in respect of indebtedness of the Company that is contemplated by any commitment letter associated with the New Financing or any Alternative Financing to be repaid at the Closing Date with the proceeds from the New Financing or any Alternative Financing. (Ce) adversely impact The Company, if it does not enter into the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver amendment to the Company copies Credit Agreement contemplated by the Backstop Facility Commitment and thereby obtain the consent disclosed in Section 6.3(c) of any amendmentthe Company Disclosure Letter, modification, supplement, consent or waiver to or under any Financing Letter or shall enter into the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall requiredocumentation for, and in no event shall draw on the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that facility contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess Backstop Facility Commitment prior to the expiration of those contemplated by the Equity Funding Letter or the Debt Backstop Facility Commitment Letter (including any market “flex” provisions contained thereinextension thereof that may be entered into with the consent of Verizon, not to be unreasonably withheld, delayed or conditioned), such draw to be in an amount sufficient to refinance in full the Company Credit Agreement and pay all related fees.

Appears in 1 contract

Sources: Merger Agreement (Fairpoint Communications Inc)

Financing. (a) Consistent with Section 2 of the Guarantee, Parent may, in its sole discretion, deliver to the Company a true and complete copy of a Debt Commitment Letter. Each of Parent and Merger Sub shall use its commercially reasonable best efforts to take, or cause to be taken, all actions and its commercially reasonable efforts to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the proceeds of any Debt Financing as promptly as practicable on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Lettersany Debt Commitment Letter, including using its commercially reasonable best efforts to (i) maintain in effect and comply the commitment for the Debt Financing set forth in Debt Commitment Letter in accordance with the Financing Letterstheir respective terms, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the contemplated by any Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the including any “market flex” terms and conditions (including market “flex” provisions) set forth in the to which any such Debt Commitment LetterLetter is subject), (iii) satisfy (and cause each of its Affiliates to satisfy), or if deemed advisable by Parent obtain the waiver of, on a timely basis basis, all conditions applicable to Parent and Merger Sub or any of its Affiliates in the Financing Letters such Debt Commitment Letter and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms payment of all fees and subject to the conditions set forth in the Equity Funding Letterexpenses) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), comply with its obligations thereunder and (iv) upon the satisfaction or waiver of the conditions to Parent’s enforce its rights under any Debt Financing (including by initiating and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause prosecuting actions against the lenders and the other Persons committing persons providing such Debt Financing) in the event of any breach or purported breach thereof; provided, however, that, notwithstanding anything to fund the contrary contained herein, Parent shall have the right to substitute other debt or equity financing for all or any portion of any Debt Financing from the same or alternative financing sources so long as such substitute financing is subject to fund funding conditions that are not materially less favorable to Parent than the funding conditions set forth in any Debt Commitment Letter and so long as such substitute financing would not reasonably be expected to have a materially adverse effect on the ability of Parent and Merger Sub to perform their material obligations under this Agreement. (b) In the event that all conditions to the commitment of any counterparty to any Debt Commitment Letter providing such Debt Financing (other than conditions that are within the control of Parent, Merger Sub or the Guarantor, including conditions relating to (1) the failure of any equity funding condition or similar effect in any Debt Commitment Letter, (2) the failure by Parent, Merger Sub or any of their Affiliates to deliver documents at the Closing, (v3) enforce the failure to pay costs, fees, expenses or other compensation contemplated by any Debt Commitment Letter or related letters which are payable by Parent or any of its rights under the Financing Letters Affiliates to any lead arrangers, other lenders and the definitive agreements relating to the Financing and administrative agents or any other person or (vi4) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. any breach, in any material respect, by Parent, Merger Sub Sub, the Guarantor or any of their respective Affiliates under any Debt Commitment Letter or related letters) have been satisfied, Parent shall use its commercially reasonable efforts to cause the lenders (if any), and each other person providing such Debt Financing, to fund when required hereunder the Guarantors Debt Financing required to consummate the Transactions (including by taking enforcement action in which Parent will use its commercially reasonable efforts to cause any such lenders and each such other person providing such Debt Financing to fund such Debt Financing when required hereunder). Parent shall not and shall cause its Affiliates not to take or refrain from taking, directly or indirectly, any action that would reasonably be expected to result in a failure of any of the conditions contained in any Debt Commitment Letter or in any definitive agreements related thereto. (c) Parent shall not, without the prior written consent of the CompanyCompany (which consent shall not be unreasonably withheld or delayed), agree to or permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision (including any remedy) under, the Financing Letters or the definitive agreements relating voluntarily replace any Debt Commitment Letter if such amendment, modification, waiver or voluntary replacement (w) adds new (or materially adversely modifies any existing) conditions to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion consummation of the Debt Financing (including by increasing the amount of fees to be paid or original issue discount as compared to those in the fees and original issue discount contemplated by the Financing Letters Debt Commitment Letter (if any) as in effect on the date of this Agreement unless the Debt Financing or Equity Financing it is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountentered into, (Bx) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact affects the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Debt Commitment Letter or the definitive agreements relating related to the Debt Financing, (y) subject to Parent’s right to obtain substitute financing set forth in Section 6.07(a) or Section 6.07(d), reduces the aggregate amount of the Debt Financing promptly upon execution thereof. Notwithstanding anything to an amount below the contrary amount needed (in this Agreementcombination with all funds held by or otherwise available to Parent) to consummate the Transactions or (z) would otherwise reasonably be expected to prevent, nothing contained in this Section 5.04 shall requireimpede or materially delay the consummation of the Transactions. (d) If Parent obtains a Debt Commitment Letter, and in no event shall if any portion of the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek related Debt Financing becomes unavailable on the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those terms and conditions contemplated by the Equity Funding Letter or the such Debt Commitment Letter (including any “market “flex” terms and conditions to which the Debt Commitment Letter is subject), or Parent becomes aware of any event or circumstance that could reasonably be expected to make any portion of the Debt Financing unavailable on the terms and conditions contemplated by the Debt Commitment Letter, regardless of the reason therefor, then Parent shall (1) use its commercially reasonable efforts to arrange and obtain in replacement thereof, and to negotiate and enter into definitive agreements with respect to, alternative financing from alternative sources, in an amount sufficient (in combination with all funds held by or otherwise available to Parent) to consummate the Transactions and to pay related fees and expenses, with terms and conditions (including “market flex” terms and conditions) not materially less favorable to Parent than the terms and conditions contemplated by such Debt Commitment Letter (including any “market flex” terms and conditions to which such Debt Commitment Letter is subject), as promptly as practicable following the occurrence of such event, but in no event later than the date on which Parent is required to consummate the Transactions in accordance with this Agreement, and (2) promptly notify the Company of such unavailability and the reason therefor. For purposes of this Agreement, other Section 6.04(f), for which references to “Debt Commitment Letter” shall be interpreted in accordance with the provisions contained therein, references to the “Debt Financing” shall include the financing contemplated by the Debt Commitment Letter as permitted to be amended, modified or replaced by this Section 6.07(d) or Section 6.07(a), and references to the “Debt Commitment Letter” shall include such documents as permitted to be amended, modified or replaced by this Section 6.07(c) or Section 6.07(a). (e) Parent shall keep the Company reasonably informed on a current basis and in reasonable detail of the status of its efforts to arrange and consummate any Debt Financing. Parent shall give the Company prompt written notice of (x) any actual or reasonably likely potential breach, default, termination or repudiation by any party to any Debt Commitment Letter or definitive documents related to any Debt Financing of which Parent becomes aware, (y) the receipt of any written notice or other written communication from any lender or other person providing any Debt Financing with respect to (i) any actual or reasonably likely potential breach, default, termination or repudiation by any party to any Debt Commitment Letter or any definitive document related to any Debt Financing of any provisions of the Debt Commitment Letter or any definitive document related to any Debt Financing (or any written statement by any such person that such person does not intend to enter into any such document or to consummate the transactions contemplated thereby) or (ii) any material dispute or disagreement between or among any parties to any Debt Commitment Letter or any definitive document related to any Debt Financing, and (z) the occurrence of any event or development that would reasonably be expected to adversely impact the ability of Parent and Merger Sub to obtain all or any portion of any Debt Financing contemplated by any Debt Commitment Letter on the terms and conditions, in the manner or from the sources contemplated by any Debt Commitment Letter or the definitive documents related to any Debt Financing (or if at any time for any other reason Parent believes that it will not be able to obtain all or any portion of any Debt Financing contemplated by any Debt Commitment Letter on the terms and conditions, in the manner or from the sources contemplated by any Debt Commitment Letter or the definitive documents related to any Debt Financing). As soon as reasonably practicable (and in any event within two (2) Business Days) after the date on which the Company delivers to Parent a written request, Parent shall provide any information reasonably requested by the Company relating to any circumstance referred to in the immediately preceding sentence. Notwithstanding anything in this Section 6.07 or elsewhere in this Agreement to the contrary, (A) each of Parent and Merger Sub affirms that it is not a condition to the Closing or to any of their respective obligations under this Agreement that Parent or Merger Sub obtain financing for or related to any of the Transactions and (B) the parties agree that neither Parent nor Merger Sub shall have any obligation to provide to the Company or any of its Representatives with copies definitive or draft documents or Contracts in respect of any Debt Financing, other than a Debt Commitment Letter. (f) From the date of this Agreement until the earlier of the Effective Time and the termination of this Agreement in accordance with its terms, upon the request of Parent, the Company shall, and shall cause its Subsidiaries to, and shall use its commercially reasonable efforts to cause their respective Representatives to, provide customary and reasonable cooperation to Parent and its Affiliates and Representatives in connection with Parent’s financing of the Transactions (provided, that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company and its Subsidiaries). The Company hereby consents to the use, if necessary, of its logo in connection with the Debt Financing. All non-public or otherwise confidential information regarding the Company and its Subsidiaries obtained by Parent or its Representatives pursuant to this Section 6.07(f) shall be kept confidential in accordance with the Confidentiality Agreements, except that Parent shall be permitted to disclose customary and reasonable information to potential syndicate members, other potential lenders or potential participants, subject to customary confidentiality undertakings by such potential syndicate members, other potential lenders or potential participants, and except as otherwise required by applicable Law. Notwithstanding anything in this Agreement to the contrary, nothing shall require the Company to deliver or cause the delivery of (i) any legal opinions or accountants’ cold comfort letters or reliance letters, (ii) any certificate as to the solvency or any other certificate for the Debt Financing, (iii) any financial information in a form not customarily prepared by the Company with respect to such period, (iv) any financial information with respect to a month or fiscal period that has not yet ended or has ended less than 45 days prior to the date of such request (or 90 days in the case of a fiscal year-end). Each of Parent and Merger Sub agrees that the execution of any documents in connection with the Debt Financing shall be subject to the consummation of the Transactions and such documents will not take effect until the Effective Time. In no event shall the Company or any of its Subsidiaries or Affiliates be required to bear any cost or expense, pay any fee or incur any liability or make any commitment or agreement effective in connection with the Debt Financing prior to the Effective Time. Parent shall promptly upon request by the Company reimburse the Company for all reasonable out-of-pocket fees, costs and expenses (including fees and expenses of counsel) incurred by or on behalf of the Company or any of its Subsidiaries in connection with their compliance with this Section 6.07(f) and shall indemnify and hold harmless the Company and its Subsidiaries and each of their respective representatives from and against all losses, damages, claims, fees, costs and expenses suffered or incurred by any of them in connection with the arrangement of the Debt Financing and any information used in connection therewith. The provisions in the previous sentence regarding indemnification are intended to be for the benefit of, and shall be enforceable by, each of the Company’s Subsidiaries and the Company’s and its Subsidiaries’ representatives each of which shall be a third-party beneficiary of this Section 6.07(f).

Appears in 1 contract

Sources: Merger Agreement (Avolon Holdings LTD)

Financing. (a) Each Subject to the terms and conditions of this Agreement, each of Parent and Merger Sub shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to takeobtain the Equity Financing and, or cause to be takenif the Requisite Notes Consent is not obtained, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the Financing “Change of Control Offer” contemplated by the Forward Purchase Commitment as soon as reasonably practicable on the terms and subject only to conditions described in the conditions Financing Commitments (and in accordance with the relevant provisions of the 2017 First Mortgage Indenture), including the market “flex” provisions) set forth flex terms in the Financing related Fee Letters, including using its reasonable best efforts to (i) maintain in effect and comply with its obligations under the Financing LettersCommitments, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Forward Purchase Commitment on the terms and subject only conditions no less favorable to Parent and Merger Sub than those contained in the conditions (Forward Purchase Commitment Letter, including the market “flex” provisions) set forth flex provisions in the Debt Commitment related Fee Letter (or on other terms that, with respect which would not reasonably be expected to conditionality, are not less favorable to Parent delay or Merger Sub than prevent the terms consummation of the Tender Offer) and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub contained in the Financing Letters and the Commitments (or any definitive agreements related thereto (thereto) that are within its reasonable control, including by consummating the Equity Financing at payment of any commitment, engagement or prior placement fees required as a condition to the Closing on Financing. Notwithstanding anything to the contrary in the immediately preceding sentence, subject to the terms and conditions of this Agreement (and in the case of the Forward Purchase Commitment only, unless the Requisite Notes Consent is obtained), each of Parent and Merger Sub shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to take all actions necessary to maintain in effect the Financing Commitments in accordance with the terms and subject to the conditions set forth thereof. Parent shall keep the Company informed on a regular basis and in reasonable detail of the Equity Funding Letter) status of its efforts to arrange the Financing (orincluding providing the Company with copies of draft and definitive agreements and other documents related to the Financing). Without limiting the generality of the foregoing, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained shall give the Company prompt notice (but in such Debt any event, within two Business Days) (x) of any breach or default by any party to any of the Financing Commitments, the Equity Commitment Letter or such definitive agreements related thereto)to the Financing of which Parent or Merger Sub becomes aware, and (ivy) upon the satisfaction or waiver of the conditions receipt of (A) any written notice or (B) other communication, in each case from any Financing source with respect to Parent’s and Merger Sub’s obligations any (1) actual or potential breach, default, termination or repudiation by any party to consummate the Offer and the Merger, consummate any of the Financing and cause Commitments, the lenders and Equity Commitment Letter or definitive agreements related to the other Persons committing Financing of any provisions of the Financing Commitments, the Equity Commitment Letter or definitive agreements related to the Financing or (2) material dispute or disagreement between or among any parties to any of the Financing Commitments, the Equity Commitment Letter or definitive agreements related to the Financing with respect to the obligation to fund the Financing to fund or the amount of the Financing to be funded at Closing. As soon as reasonably practicable, but in any event within two Business Days of the Closingdate the Company delivers to Parent or Merger Sub a written request, (v) enforce its rights under Parent and Merger Sub shall provide any information reasonably requested by the Financing Letters and the definitive agreements Company relating to any circumstance referred to in clause (x) or (y) of the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financingimmediately preceding sentence. Parent, Merger Sub and the Guarantors Parent shall not, without the prior written consent of the Company, agree to or permit any termination of or amendmentamend, modify, supplement or modification waive any of the conditions or contingencies to be made tofunding or consummation, as applicable, contained in the Financing Commitments (or any definitive agreements related thereto) or any other provision of, or grant any waiver of any provision remedies under, the Financing Letters Commitments (or the any definitive agreements relating related thereto), in each case, to the Financing if extent such termination, amendment, supplementmodification, modification supplement or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose imposes new or additional conditions precedent to the availability of the Financing or otherwise expandexpands, amend amends or modify modifies any of the conditions precedent to the Financing receipt of, or consummation of the Change of Control Offer contemplated by, the Financing, as applicable, in a manner that would reasonably be expected to have the effect of (A) materially delay and adversely affecting the ability of Parent or prevent Merger Sub to (x) consummate the Tender Offer or (y) timely consummate the transactions contemplated by this Agreement or (B) amending, modifying, supplementing or waiving the conditions or contingencies to the Financing in a manner that would make the funding of, or consummation of the Financing (Change of Control Offer contemplated by, the Financing, as applicable, or satisfaction of the conditions to obtaining or consummating the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, materially less likely to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. occur. (b) Notwithstanding anything to the contrary set forth in this Agreement, nothing contained in this Section 5.04 Parent shall require, and in no event shall have the reasonable best efforts right to substitute other debt or equity for all or any portion of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those Forward Purchase Commitment contemplated by the Equity Funding Letter or the Debt Forward Purchase Commitment Letter from the same and/or alternative financing sources and terminate the Forward Purchase Commitment Letter if the terms would not be reasonably expected to materially delay or prevent the consummation of the Tender Offer. The Parent shall notify the Company as promptly as practicable in advance of such substitution. (including any market “flex” provisions contained therein).c) In the event all conditions applicable to the Financing Commitments have been satisfied and all Tender Offer Conditions are satisfied or

Appears in 1 contract

Sources: Merger Agreement (Great Wolf Resorts, Inc.)

Financing. (a) Each of Parent shall use commercially reasonable efforts to arrange the Financing upon terms and conditions reasonably satisfactory to Parent and Merger Sub the Parent Board. Parent shall use keep the Company informed on a reasonably current basis in reasonable best detail of the status of its efforts to takearrange the Financing. Parent shall provide written notice to the Company promptly upon receiving commitments for the Financing. (b) Prior to the Closing, each of the FT Stockholders shall and shall cause the Company and each of the Company’s Subsidiaries to use his and its commercially reasonable efforts to provide and or cause the Company and the Company’s Subsidiaries to be takenprovide to Parent all cooperation reasonably requested by Parent, at Parent’s expense, that is customary in connection with the arrangement of the type of Financing contemplated by Parent (provided in all actions cases that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company and to dothe Company’s Subsidiaries), or cause to be done, all things necessary, proper or advisable to consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using which commercially reasonable best efforts to may include (i) maintain in effect (A) furnishing Parent and comply its Financing Sources, as promptly as reasonably practicable following Parent’s request, with such pertinent and customary information, to the extent reasonably available to the Company or the Company’s Subsidiaries, regarding the Company and the Company’s Subsidiaries, and any supplements thereto, as may be reasonably requested by Parent to consummate the Financing Lettersand (B) furnishing Parent and its Financing Sources, as promptly as reasonably practicable following Parent’s request, with information regarding the Company and the Company’s Subsidiaries (including information to be used by Parent and its financial advisors in the preparation of one or more information packages, prospectuses or offering document regarding the business, operations, financial projections and prospects of the Company and the Company’s Subsidiaries) customary for the arrangement of the Financing contemplated by Parent, to the extent reasonably available to the Company or the Company’s Subsidiaries and to assist in preparation of customary rating agency or lender or investor presentations relating to such arrangement of loans or equity financing, (ii) negotiate furnishing all consolidated financial statements, business and enter into definitive agreements other financial data (whichother than pro forma financial statements but including, with respect for the avoidance of doubt, any financial information of the Company and the Company’s Subsidiaries reasonably necessary to the bridge facility documentation, shall not be required until determined by permit Parent to be prepare pro forma financial statements required by a Financing Source, and written financial information reasonably likely necessary for Parent and the Financing Sources to be necessary in connection with consummate the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on participating and having senior management and the FT Stockholders participate in a timely basis all conditions applicable to Parent reasonable number of roads shows, presentations, confidential information memorandum presentations and Merger Sub meetings, due diligence sessions, drafting sessions and sessions with rating agencies in connection with the Financing Letters and the definitive agreements related thereto (including by consummating customary one-on-one meetings with the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related theretoSources), (iv) upon assisting with the satisfaction or waiver preparation of materials for rating agency presentations, bank information memoranda, prospectuses, offering documents and similar documents required in connection with the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the ClosingFinancing, (v) enforce its rights under taking all necessary corporate actions, subject to and only effective upon the occurrence of the Effective Time, reasonably requested by Parent to permit the consummation of the Financing Letters and to permit the definitive proceeds thereof, after payment of the Merger Consideration in accordance with the terms and conditions of this Agreement, to be made available to the Surviving Company at the Effective Time, (vi) executing and delivering any customary pledge and security documents, credit agreements, ancillary loan documents, underwriting agreements, placement agency agreements, and customary closing certificates and documents (in each case, subject to and only effective upon occurrence of the Effective Time) and assisting in preparing schedules thereto as may be reasonably requested by Parent (including delivery of borrowing base certificates and delivery of a solvency certificate of the chief financial officer of the Company), (vii) assisting in (A) the preparation, execution and delivery of one or more credit agreements, indentures, currency or interest hedging agreements relating or (B) the amendment or modification of any of the Company’s or the Company’s Subsidiaries’ currency or interest hedging agreements, if any, in each case, on terms that are reasonably requested by Parent in connection with the Financing; provided that no obligation of the Company or any of the Company’s Subsidiaries under any such agreements or amendments shall be effective until the Effective Time, (viii) in connection with the Financing, providing customary authorization letters to the Financing Sources for the Financing authorizing the distribution of information to prospective lenders or investors or the SEC and containing a customary representation to the Financing Sources for such financing that such information does not contain a material misstatement or omission and containing a representation to the Financing Sources that the public side versions of such documents, if any, do not include material non-public information about the Company or the Company’s Subsidiaries or their securities, (viix) otherwise comply with Parent’s using commercially reasonable efforts to arrange for customary payoff letters, lien terminations and Merger Sub’s covenants instruments of discharge to be delivered at Closing providing for the payoff, discharge and termination on the Closing Date of all Indebtedness required hereunder to be paid off, discharged and terminated as of the Closing Date, (x) providing at least two (2) Business Days prior to the expected Closing Date all documentation and other obligations under information about the Company and each of the Company’s Subsidiaries as is requested by the Financing Letters Sources and required under applicable “know your customer” and anti-money-laundering rules and regulations including the definitive agreements USA PATRIOT Act, (xi) using commercially reasonable efforts to cause Company accountants to consent to the use of their reports in any material relating to the Financing. , (xii) assisting in obtaining corporate and facilities ratings for the Financing, (xiii) requesting the Company’s independent accountants to cooperate with Parent’s commercially reasonable efforts to obtain customary accountant’s comfort letters (including “negative assurance”) and consents from the Company’s independent accountants, Merger Sub and (xiv) ensuring that there are no competing issues of securities or credit facilities of the Company and the Guarantors Company’s Subsidiaries being offered or arranged by the Company or such Subsidiaries between the execution of this Agreement and the Effective Time. Parent shall notreimburse the Company for all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ and accountants costs and expenses) incurred by the Company or any of the Company’s Subsidiaries or any of the Company’s Representatives in connection with the cooperation of the Company and the Company’s Subsidiaries contemplated by this Section 5.8(b) and Parent shall indemnify and hold harmless the Company, the Company’s Subsidiaries and the Company’s Representatives from and against any and all direct and actual Losses (other than lost profits) suffered or incurred by any of them in connection with the arrangement of the Financing, any action taken by them at the request of Parent pursuant to this Section 5.8(b) and any information used in connection therewith (except with respect to any information provided in writing by the Company or any of the Company’s Subsidiaries specifically for use in connection therewith), except, in each case, insofar as such Losses (i) arose out of or resulted from the Fraud or willful misconduct of the FT Stockholders, the Company, the Company’s Subsidiaries or the Company’s Representatives, (ii) directly resulted from the breach of any of the obligations of the FT Stockholders, the Company, the Company’s Subsidiaries or the Company’s Representatives under this Agreement or (iii) that were agreed to in a settlement without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating Parent. (c) Notwithstanding anything to the Financing if such terminationcontrary contained in this Section 5.8, amendment, supplement, modification or waiver would (Ai) reduce the aggregate amount of any portion no obligation of the Financing (including by increasing the amount of fees to be paid Company or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent Company’s Subsidiaries under any agreement, certificate, document or instrument shall be effective until the Effective Time (and nothing contained in this Section 5.8 or otherwise shall require the Company or any of the Company’s Subsidiaries, prior to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicableEffective Time, to enforce its rights against other parties to the Financing Letters or the definitive agreements be an obligor with respect to the Financing. Parent ) and (ii) none of the Company or any of the Company’s Subsidiaries or the FT Stockholders shall promptly deliver be required to pay or incur any liability for any commitment or other fee or pay or incur any other liability in connection with the Financing prior to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Effective Time. (d) Notwithstanding anything to the contrary contained in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek none of the Equity Company, the FT Stockholders nor any of their respective Subsidiaries, Affiliates, directors, officers, employees, agents, partners, managers, members, shareholders, Representatives or Related Parties, as applicable, shall have any rights or claims against the Financing from Sources (in their capacities as such) in any source other than way relating to this Agreement or any of the counterparties toTransactions, or in respect of any amount oral representations made or alleged to have been made in excess connection herewith or therewith, including any dispute arising out of that contemplated by, the Equity Funding Letteror relating in any way to any financing commitment letter or loan agreement to be executed by such Financing Source, or any replacement therefor, or the performance thereof or the financings contemplated thereby, whether in law or equity, in contract, in tort or otherwise, and (ii) pay except as expressly agreed, the Financing Sources (in their capacities as such) shall not have any material fees liability (whether in excess contract, in tort or otherwise) to the Company, the FT Stockholders or any of those their respective Subsidiaries, Affiliates, directors, officers, employees, agents, partners, managers, members, shareholders, Representatives or Related Parties for any obligations or liabilities of any party hereto under this Agreement or for any claim based on, in respect of, or by reason of the Transactions or in respect of any oral representations made or alleged to have been made in connection herewith or therewith, including any dispute arising out of or relating in any way to any financing commitment letter, any loan agreement or any replacement therefor or the performance thereof or the financings contemplated thereby, whether at law or equity, in contract, in tort or otherwise. The Financing Sources (and such Financing Source’s Affiliates, equityholders, members, partners, officers, directors, employees, agents, advisors and Representatives) are express third party beneficiaries of this Section 5.8(d). Subject to the terms and conditions of any definitive Financing Documents to which the Surviving Company is a party, nothing contained herein, shall preclude the Surviving Company from any claims that may arise following the Closing related to the Financing, or any Fraud by the Equity Funding Letter or Financing Source in connection with the Debt Commitment Letter (including any market “flex” provisions contained therein)Financing.

Appears in 1 contract

Sources: Merger Agreement (Cinedigm Corp.)

Financing. (a) Each of Parent Acquiror, Panavision Acquisition Sub and Merger SIM Acquisition Sub shall use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the Debt Financing and the PIPE Investment on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Lettersapplicable Debt Commitment Letters and the PIPE Documents, as applicable, including using reasonable best efforts to (i) maintain in effect the Debt Commitment Letters and comply with the Financing LettersPIPE Documents, (ii) satisfy (or obtain the waiver of, if deemed advisable by Acquiror) on a timely basis all conditions to the extent the satisfaction of such conditions requires the cooperation of or is within the control of Acquiror, Panavision Acquisition Sub or SIM Acquisition Sub (or their Affiliates) in the Debt Commitment Letters and any definitive documentation relating to the Debt Financing and the PIPE Documents, as applicable, as of or prior to the Closing, (iii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto on the terms and subject only conditions contemplated by the applicable Debt Commitment Letters (including any related flex provisions) and the PIPE Documents or on other terms that would not be prohibited by Section 9.4(d), (iv) to the extent the conditions (including the market “flex” provisions) to closing set forth in the Debt Commitment Letter (Letters or on other terms that, with respect to conditionality, the applicable PIPE Documents are not less favorable to Parent satisfied or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Mergerwaived, consummate the Debt Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing PIPE Investment, as applicable, at the Closing, (v) enforce its rights comply with their obligations under the Financing Debt Commitment Letters and the definitive agreements relating to the Financing PIPE Documents and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations enforce their rights under the Financing Debt Commitment Letters and the definitive agreements relating PIPE Documents; provided, that, notwithstanding anything to the Financing. Parentcontrary in this Section 9.4 or otherwise in this Agreement, Merger Sub all Acquiror Common Shares issued at the Closing pursuant to the PIPE Documents or the Alternative Financing contemplated by Section 9.4(c) shall be issued at a price per share equal to or greater than $10.00 per share. (b) Acquiror shall give each of the Companies and the Guarantors shall notHolder Representatives prompt (and in any event, without the prior within two (2) Business Days) written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver notice (i) of any provision under, the Financing breach or default by any party to any Debt Commitment Letters or the any definitive agreements relating agreement with respect to the Debt Financing (the “Debt Documents”) or the PIPE Documents, in each case, of which Acquiror, Panavision Acquisition Sub or SIM Acquisition Sub becomes aware, (ii) if such terminationand when Acquiror, amendment, supplement, modification Panavision Acquisition Sub or waiver would (A) reduce the aggregate amount of SIM Acquisition Sub becomes aware that any portion of the Debt Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Debt Commitment Letters on or the date PIPE Investment contemplated by the PIPE Documents may not be available to consummate the Transactions, (iii) of this Agreement unless the receipt of any written notice or other written communication from any Person with respect to any (A) actual or potential breach, default, termination or repudiation by any party to any Debt Commitment Letter, other Debt Document or PIPE Document or (B) material dispute or disagreement between or among any parties to any Debt Commitment Letter, other Debt Document or PIPE Document (but excluding, for the avoidance of doubt, any ordinary course negotiations with respect to the terms of the Debt Financing, the PIPE Investment, the Debt Documents or the PIPE Documents, as applicable), and (iv) if for any reason any portion of the Debt Financing or Equity Financing the PIPE Investment required for Acquiror to make all payments required by it under this Agreement on the Closing Date becomes unavailable on the terms and conditions contemplated in any Debt Commitment Letters (including flex terms) (or on other terms that would not be prohibited by Section 9.4(d)) or the PIPE Documents, as applicable. As soon as reasonably practicable, but in any event, within two (2) Business Days following delivery by Panavision to Acquiror of written request therefor, Acquiror shall provide any information reasonably requested by Panavision relating to any circumstance referred to in clause (i), (ii), (iii) or (iv) of the immediately preceding sentence; provided, that in no event will Acquiror be under any obligation to disclose any information that is increased by (x) subject to the terms of a corresponding amountconfidentiality agreement with a third Person (excluding, for the avoidance of doubt, any such terms in a confidentiality agreement with Sponsor or any of its Affiliates) such or (y) subject to any attorney-client privilege to the extent that Acquiror determines that the aggregate amount disclosure of such information would reasonably be likely to result in a loss of such privilege; provided, further, that if any information is withheld pursuant to the immediately preceding proviso, Acquiror will (x) inform each of the Companies and the Holder Representatives as to the general nature of what is being withheld and (y) use its reasonable best efforts (1) to accommodate any request from any of the Companies or the Holder Representatives for information pursuant to this Section 9.4(b) in a manner that does not result in such a violation or waiver or (2) to obtain the required consent of such third Person to permit such access or disclosure. Without limiting the foregoing, Acquiror, Panavision Acquisition Sub and SIM Acquisition Sub shall keep the Companies and the Holder Representatives informed in reasonable detail on a reasonably current basis of the status of their efforts to arrange and consummate the Debt Financing and the PIPE Investment (including any Alternative Financing), and shall provide to such Company copies of (x) the drafts of the material definitive documents related to the Debt Financing or the PIPE Investment prior to distribution of such drafts to the applicable Debt Financing Sources or the PIPE Investors (or, in each case, their counsel) (it being agreed that Panavision and its Representatives shall have the right to review and provide comments to Acquiror on any such draft material definitive documents related to the Debt Financing or the PIPE Investment and Acquiror shall consider, in good faith, any such comments proposed by Panavision or any of its Representatives and any such comments promptly and reasonably proposed shall be included in drafts thereafter provided by Acquiror or its counsel) and (y) executed copies of the definitive documents related to the Debt Financing and the PIPE Investment. (c) If all or any portion of the Debt Financing or the PIPE Investment required by Acquiror to make all payments required by it under this Agreement on the Closing Date becomes unavailable on the terms and conditions described in the applicable Debt Commitment Letters (including flex terms) (or on other terms that would not be below prohibited by Section 9.4(d)) or the PIPE Documents, as applicable, Acquiror, Panavision Acquisition Sub and SIM Acquisition Sub shall use reasonable best efforts to arrange and obtain alternative financing, including from alternative sources, in an amount required sufficient (when added to pay the Required Amountportion of the Debt Financing and the PIPE Investment that is available and other available funds) to consummate the Transactions on the Closing Date (“Alternative Financing”) as promptly as practicable following the occurrence of such event but no later than the Closing Date (i) on terms not materially less favorable (including with respect to conditionality, (B) impose new or additional conditions precedent to the availability and funding of any Debt Financing) from the standpoint of Acquiror, Panavision Acquisition Sub, SIM Acquisition Sub and the Affiliates of Acquiror, Panavision Acquisition Sub and SIM Acquisition Sub party thereto and the Company Groups than those in the applicable Debt Commitment Letters or the PIPE Documents, as applicable (and, in the case of the Financing or otherwise expandDebt Commitment Letters, amend or modify any of taking into account the flex provisions), and (ii) containing conditions precedent to the Financing in a manner and other terms that would reasonably be expected to materially delay or prevent affect the funding availability of the Alternative Financing that (A) are not more onerous, taken as a whole, than those conditions and terms contained in the Debt Commitment Letters or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger SubPIPE Documents, as applicable, as of the date hereof, (B) would not reasonably be expected to delay, impede or prevent the Closing and (C) do not adversely affect the ability of Acquiror or the Panavision Holder Representative (in the case of the PIPE Documents) to enforce its rights against other parties to the Alternative Financing (including all definitive documentation) relative to the ability of Acquiror to enforce its rights against the other parties to the Debt Commitment Letters or the PIPE Documents, as applicable, as in effect on the date hereof or in the related definitive agreements with respect agreements. All references to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Debt Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 PIPE Investment shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub include such Alternative Financing and all references to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter Letters, the PIPE Investment, the Debt Documents or the PIPE Documents shall include the applicable documents for the Alternative Financing. Without limiting the generality of the foregoing, after the date hereof, neither Acquiror nor any of its Affiliates shall enter into any Contract or arrangement with any PIPE investor related to the PIPE Investment without the prior written consent of the Panavision Holder Representative and the SIM Holder Representative (including any market “flex” provisions contained thereinprovided that the SIM Holder Representative may not unreasonably withhold, condition or delay its approval). (d) Notwithstanding anything in this Agreement to the contrary, each of Acquiror, Panavision Acquisition Sub and SIM Acquisition Sub shall have the right from time to time to amend, replace, supplement or otherwise modify, or waive any of its rights under, any Debt Commitment Letters, the Debt Documents or the PIPE Documents, or replace or amend the Debt Commitment Letters to add lenders, lead arrangers, bookrunners, syndication agents or similar entities who had not executed the Debt Commitment Letters as of the date hereof, in each case only with the prior written consent of the Panavision Holder Representative. All references to the Debt Commitment Letters or the PIPE Documents shall be deemed to include any new commitment letters entered into and amendments, replacements, supplements, modifications, waivers or substitutions in accordance with this Section 9.4(d).

Appears in 1 contract

Sources: Business Combination Agreement (Saban Capital Acquisition Corp.)

Financing. (a) Each of Parent Purchaser shall and Merger Sub shall use reasonable best efforts to cause each of its Subsidiaries to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things reasonably necessary, proper or advisable to consummate obtain funds sufficient to fund the Financing Amounts on or prior to the date on which the Sale is required to be consummated pursuant to the terms hereof. In furtherance and not in limitation of the foregoing, Purchaser shall take, or cause to be taken, all reasonable actions and do, or cause to be done, all things reasonably necessary, proper or advisable to obtain the proceeds of the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitment Letter as promptly as possible but in any event prior to the date on which the Sale is required to be consummated pursuant to the terms hereof, including using reasonable best efforts to by (i) maintain maintaining in effect and comply with the Financing LettersCommitment Letter, (ii) negotiate negotiating and enter entering into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection Financing (the “Definitive Agreements”) consistent with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions contained in the Commitment Letter (including market including, as necessary, the “flex” provisionsprovisions contained therein) set forth in the Debt Commitment Letter)and without any Prohibited Modification, (iii) satisfy satisfying on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters Commitment Letter and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms Definitive Agreements and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent complying with its obligations thereunder and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions taking all reasonable action within its control to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters Commitment Letter and the definitive agreements relating to the Financing and Definitive Agreements. (vib) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall notNeither Purchaser nor any of its Subsidiaries shall, without the prior written consent of the CompanyParent: (i) permit, consent to or agree to or permit any termination of or amendment, supplement replacement, supplement, termination or modification to be made to, or grant any waiver of of, any provision or remedy under, the Financing Letters Commitment Letter or the definitive agreements relating to the Financing Definitive Agreements if such terminationamendment, amendmentreplacement, supplement, modification termination, modification, waiver or waiver would remedy (A) reduce adds new (or adversely modifies any existing) conditions to the aggregate amount consummation of all or any portion of the Financing Financing, (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amountB) such that reduces the aggregate principal amount of the Financing would be below the amount required (taking into account all other sources of proceeds) necessary to pay fund the Required Amount, (B) impose new or additional conditions precedent to the availability payment of the Financing or otherwise expandClosing payments, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact affects the ability of Parent or Merger Sub, as applicable, Purchaser to enforce its rights against other parties to the Financing Letters Commitment Letter or the definitive agreements with respect Definitive Agreements as so amended, replaced, supplemented or otherwise modified or (D) could otherwise reasonably be expected to prevent, impede or delay the Financingconsummation of the Transactions (the effects described in clauses (A) through (D), collectively, the “Prohibited Modifications”); or (ii) terminate or cause the termination of the Commitment Letter or any Definitive Agreement. Parent Purchaser shall promptly deliver to the Company Parent copies of any amendment, modificationreplacement, supplement, consent termination, modification or waiver to the Commitment Letter and/or Definitive Agreements. (c) In the event that any portion of the Financing becomes unavailable, regardless of the reason therefor, Purchaser shall (i) notify as soon as reasonably practicable Parent in writing of such unavailability and the reason therefor and (ii) use reasonable best efforts, and cause each of its Subsidiaries to use their reasonable best efforts, to arrange and obtain, as promptly as practicable following the occurrence of such event, alternative financing for any such unavailable portion from the same or under alternative sources (the “Alternative Financing”) in an amount sufficient, when taken together with the available portion of the Financing to consummate the transactions contemplated by this Agreement and to pay the Financing Amounts and, without limiting the foregoing, shall use reasonable best efforts to cause such Alternative Financing to not include any Financing Prohibited Modifications. Purchaser shall provide Parent with prompt oral and written notice of any actual or threatened breach, default, cancellation, termination or repudiation by any party to the Commitment Letter or the definitive agreements relating any Definitive Agreement and a copy of any written notice or other written communication from any Lender or other financing source with respect to any actual or threatened breach, default, cancellation, termination or repudiation by any party to the Financing promptly upon execution Commitment Letter or any Definitive Agreement of any provision thereof. Notwithstanding anything Purchaser shall keep Parent reasonably informed on a current basis of the status of its efforts to consummate the Financing, including any Alternative Financing. (d) The foregoing notwithstanding, compliance by Purchaser with this Section 5.20 shall not relieve Purchaser of its obligations to consummate the transactions contemplated by this Agreement whether or not the Financing or any Alternative Financing is available. To the extent Purchaser obtains Alternative Financing or amends, replaces, supplements, terminates, modifies or waives any of the Financing, in each case pursuant to this Section 5.20 and without any Prohibited Modification, references to the contrary “Financing,” “Financing Parties,” “Commitment Letter” and “Definitive Agreements” (and other like terms in this Agreement, nothing contained in this Section 5.04 ) shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to requirerefer to such Alternative Financing, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than commitments thereunder and the counterparties toagreements with respect thereto, or in any amount in excess of that contemplated bythe Financing as so amended, the Equity Funding Letterreplaced, supplemented, terminated, modified or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)waived.

Appears in 1 contract

Sources: Stock Purchase Agreement (Capri Holdings LTD)

Financing. (a) Each Subject to the terms and conditions of this Agreement, each of Parent and each Merger Sub shall will not permit any amendment or modification to be made to, or any waiver of any provision or remedy pursuant to, the Commitment Letters if such amendment, modification or waiver would, or would reasonably be expected to, (i) reduce the aggregate amount of the Financing (other than as expressly set forth therein); (ii) impose new or additional conditions or other terms or otherwise expand, amend or modify any of the conditions to the receipt of the Financing or any other terms to the Financing in a manner that would reasonably be expected to prevent, impede or materially delay the Closing Date or adversely impact the ability of Parent to consummate the Merger and the other transactions contemplated by this Agreement or (ii) adversely impact the ability of Parent, the Merger Subs or the Company, as applicable, to enforce its rights against the Financing Sources under the Debt Commitment Letter or the Guarantors under the Equity Commitment Letter. (b) Subject to the terms and conditions of this Agreement, each of Parent and each Merger Sub will use its reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or and advisable to consummate arrange and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing Commitment Letters, including using its reasonable best efforts to (i) maintain in effect the Commitment Letters and comply the Debt Fee Letters in accordance with the Financing Lettersterms and subject to the conditions thereof (or on such other terms as are permitted by Section 6.11 or Section 6.17 or agreed to in writing by the Company), (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Financing, on the terms and subject only to conditions materially consistent with the conditions (including the market “flex” provisions) set forth terms contained in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market any “flex” provisions) provisions applicable thereto set forth in the Debt Commitment LetterFee Letters), (iii) satisfy on a timely basis all conditions to funding that are applicable to Parent and the Merger Sub Subs in the Financing Commitment Letters and that are within their control (except that such obligation shall not be breached in respect of any condition where the definitive agreements related thereto (including by consummating failure to be so satisfied is a direct result of any of the Equity Financing at or prior Company’s failure to furnish the Closing on the terms and subject to the conditions information set forth in the Equity Funding Letter) (orSection 6.17, if necessary or deemed advisable by notwithstanding Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto’s reasonable best efforts), (iv) upon comply with its obligations pursuant to the satisfaction or waiver of the conditions to Parent’s Commitment Letters and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under pursuant to the Commitment Letters. In the event that all conditions contained in the Commitment Letters (other than, with respect to the Debt Financing, the availability of the Equity Financing) have been satisfied and Parent is required to consummate the Closing pursuant to Section 1.2, Parent shall use reasonable best efforts to cause each Financing Source and shall cause each Guarantor to fund its respective committed portion of the Financing Letters required to consummate the transactions contemplated by this Agreement and to pay related fees and expenses on the definitive agreements relating Closing Date (including subject to Section 9.10(b), by promptly commencing a litigation proceeding against any breaching Financing Source or Guarantor to compel such breaching Financing Source or Guarantor to provide its respective committed portion of the Financing, provided that Parent shall control all aspects of such proceeding, including litigation strategy and selection of counsel); provided that, notwithstanding the foregoing, it is explicitly agreed that the right of the Parent to seek specific performance or other equitable remedies in connection with enforcing the Financing Sources’ obligation to cause the Debt Financing to be funded shall be subject to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would requirements that (A) reduce the aggregate amount of Equity Financing has been funded in accordance with the terms thereof or will be funded in accordance with the terms thereof at the Closing if the Debt Financing is funded at the Closing and (B) Parent has irrevocably confirmed that if the Debt Financing and Equity Financing are funded, then it would take such actions that are within its control to cause the Closing to occur. In addition, Parent shall have the right to substitute other debt financing for all or any portion of the Debt Financing contemplated by the Debt Commitment Letter from the same and/or alternative financing sources so long as (including by increasing the amount of fees to be paid or original issue discount x) such substitution does not, as compared to the fees and original issue discount Debt Financing contemplated by the Financing Debt Commitment Letter and Debt Fee Letters on the date of this Agreement unless Agreement, increase the amount of Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay be funded on the Required AmountClosing Date to consummate the Merger and the other transactions contemplated by this Agreement, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify expand any of the conditions precedent to the receipt of the Debt Financing in a manner that would could reasonably be expected to materially (1) prevent, delay or prevent impair the funding ability of Parent to consummate the Financing (or satisfaction of Merger and the conditions to the Financing) on the Closing Date other transactions contemplated by this Agreement or (C2) adversely impact the ability of Parent or any Merger Sub, as applicable, Sub to enforce its rights against the other parties to the Debt Commitment Letter and (y) the Company shall have consented in writing to such substituted Debt Financing Letters (such consent not to be unreasonably withheld, conditioned or delayed). (c) In furtherance and not in limitation of the definitive agreements with respect to foregoing, in the Financing. event that any portion of the Debt Financing becomes unavailable in the manner or from the sources contemplated in the Debt Commitment Letter, Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the use its reasonable best efforts to, as promptly as practicable following the occurrence of Parent or Merger Sub be deemed or construed to requiresuch event, either Parent or Merger Sub to (i) seek obtain alternative financing from alternative sources in an amount sufficient to consummate the Equity Financing from any source other than Merger and the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those transactions contemplated by this Agreement upon conditions not less favorable in the Equity Funding Letter or aggregate to Parent, Merger Subs and the Second Step Surviving Corporation, taken as a whole, than those in the Debt Commitment Letter (including any market the “flex” provisions contained thereinin the Debt Fee Letters), as promptly as practicable following the occurrence of such event (and in any event no later than the Closing Date) (the “Alternate Debt Financing”), and (ii) obtain one or more new financing commitment letters with respect to such Alternate Debt Financing (the “New Debt Commitment Letters”), which New Debt Commitment Letters will replace the existing Debt Commitment Letter in whole or in part. Parent shall promptly provide the Company with a copy of any New Debt Commitment Letters and any fee letter in connection therewith (redacted to omit the numerical amounts and “flex provisions” provided therein and any other customarily redacted provisions thereof, none of which would adversely affect the amount, conditionality, availability or termination of the Alternate Debt Financing to be funded at the Closing). In the event that any New Debt Commitment Letters are obtained, (A) any reference in this Agreement to the “Financing Commitment Letters” or the “Debt Commitment Letter” will be deemed to include the Debt Commitment Letter to the extent not superseded by one or more New Debt Commitment Letters at the time in question and any New Debt Commitment Letters to the extent then in effect, and (B) any reference in this Agreement to the “Debt Financing” means the debt financing contemplated by the Debt Commitment Letter as modified pursuant to the foregoing.

Appears in 1 contract

Sources: Merger Agreement (Diligent Corp)

Financing. (a) Each From the date of this Agreement until the earlier of the Closing Date and the Termination Date, Parent shall use its reasonable best efforts to take, or cause to be taken, and Merger Sub shall use reasonable best efforts to cause its controlled Affiliates and its and their respective Representatives to 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 proceeds of the Debt Financing on the terms and subject only to conditions described in the conditions Debt Commitment Letter and Fee Letter (including the market including, as necessary, “flex” provisions) set forth provisions contained in the Financing LettersFee Letter) (or replacement financing obtained in compliance with this Section 6.21), including using its reasonable best efforts to (i) except as otherwise permitted in this Section 6.21, maintain in effect the Debt Commitment Letter and comply Fee Letter in accordance with the Financing Letterstheir terms, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on (the “Definitive Agreements”) consistent with the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter and Fee Letter (or including, as necessary, the “flex” provisions contained in the Fee Letter) or, if available, on other terms that, with respect to conditionality, that are not less favorable acceptable to Parent and would not adversely affect the ability of Parent to consummate the transactions contemplated herein (and in any event which terms shall not in any respect expand on the conditions or Merger Sub than adversely modify the terms and conditions (including market “flex” provisions) set forth in to the funding of the Debt Commitment LetterFinancing at the Closing or reduce the aggregate amount of the Debt Financing available to be funded on the Closing Date), (iii) satisfy (or obtain the waiver of) on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters Debt Commitment Letter, Fee Letter and the definitive agreements related thereto Definitive Agreements within Parent’s control (including by consummating the Equity Financing at or prior to the Closing on the terms payment of all fees and subject to the conditions set forth in the Equity Funding Letterexpenses) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), comply with its obligations thereunder and (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters Debt Commitment Letter, Fee Letter, and/or Definitive Agreements in the event of any breach or purported breach thereof. Parent shall not, and shall cause its Affiliates not to, take or refrain from taking, directly or indirectly, any action that would reasonably be expected to result in a failure of any of the definitive agreements relating to conditions contained in the Financing and Debt Commitment Letter or in any Definitive Agreement. (vib) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Parent shall not, without the prior written consent of the CompanyCompany and EFIH (such consent not to be unreasonably withheld, agree to conditioned or delayed), permit any termination of or amendment, supplement amendment or modification to be made to, or grant any waiver of any provision (including any remedy) under, or voluntarily replace (it being understood that any Alternative Debt Financing (in the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of event any portion of the Debt Financing becomes unavailable) or any Bond Financing (including by increasing subject to the amount limitations set forth below) shall not be deemed a voluntary replacement for purposes of fees the sentence), the Debt Commitment Letter or Fee Letter if such amendment, modification, waiver or voluntary replacement (i) adds new (or adversely modifies any existing) conditions to be paid or original issue discount the consummation of the Debt Financing as compared to those in the fees Debt Commitment Letter and original issue discount contemplated by the Financing Letters Fee Letter, each as in effect on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountAgreement, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would or would reasonably be expected to materially delay or prevent the funding make any portion of the Debt Financing less likely to be timely obtained, (or satisfaction of the conditions to the Financing) on the Closing Date or (Cii) adversely impact affects the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters Debt Commitment Letter, Fee Letter, or the definitive agreements with respect Definitive Agreements as so amended, replaced, supplemented or otherwise modified, in any material respect, relative to the ability of Parent to enforce its rights against such other parties to the Debt Commitment Letter and Fee Letter, each as in effect on the date hereof or in the Definitive Agreements, (iii) reduces the aggregate amount of the Debt Financing (other than reductions of any amounts thereof constituting increases thereto after the date hereof), or (iv) could otherwise be expected to prevent, impede or delay the consummation of any of the Transactions; provided, that for the avoidance of doubt no consent from the Company or EFIH shall be required: (A) for any amendment, replacement, supplement or modification of the Debt Commitment Letter that is limited to adding lenders, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the Debt Commitment Letter as of the date of this Agreement, (B) for implementation or exercise of any “flex” provisions provided in the Fee Letter as in effect as of the date hereof, (C) for any amendment, replacement, supplement or modification to the Debt Commitment Letter or Definitive Agreements so long as such action would not be prohibited by the foregoing clauses (i)-(iv) in this Section 6.21(b) or (D) to add or replace facilities with one or more new facilities or with or any capital markets debt financing undertaken in replacement of, or in lieu of, all or any portion of the debt financing (the “Bond Financing”) so long as such replacement facility, new facility or capital markets debt financing does not adversely affect the conditionality, amount, enforceability, timing, availability, or termination of the Debt Financing when compared to the Debt Financing described in Section 5.2(h) on the date hereof and, after giving effect to such addition or replacement, the representation set forth in the last sentence of Section 5.2(h) would be correct if made on such date of replacement. Parent shall promptly deliver to the Company copies of any amendment, modificationmodification or replacement of any Debt Commitment Letter. (c) In the event that any portion of the Debt Financing becomes unavailable, supplementregardless of the reason therefor, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the Parent will (i) use its reasonable best efforts to obtain alternative debt financing (the “Alternative Debt Financing”) as promptly as reasonably practicable after the occurrence of Parent or Merger Sub be deemed or construed the event that renders the Debt Financing unavailable (in an amount sufficient, when taken together with any then-available Debt Financing pursuant to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding then-existing Debt Commitment Letter, or to consummate the Transactions and to pay related fees and expenses earned, due and payable as of the Effective Time (iisuch that the representation set forth in the last sentence of Section 5.2(h) pay any material fees would be correct if made on such date)) on terms not less favorable in excess of the aggregate to Parent than those contemplated by the Equity Funding Letter or contained in the Debt Commitment Letter and the Fee Letter that the Alternative Debt Financing would replace (including taking into account any market “flex” provisions contained thereinprovisions) from the same or other sources and which do not include any incremental conditionality to the consummation of such Alternative Debt Financing that are more onerous to Parent or the Company (in the aggregate) than the conditions set forth in the Debt Commitment Letter in effect as of the date of this Agreement or otherwise impede; delay or prevent the transactions contemplated hereby and (ii) promptly notify the Company of such unavailability and the reason therefor. The term “Debt Commitment Letter” shall be deemed to include any commitment letter (or similar agreement) with respect to any Alternative Debt Financing arranged in compliance herewith (and any Debt Commitment Letters remaining in effect at the time in question), (ii) the term “Fee Letter” shall be deemed to include any fee letter (or similar agreement) with respect to any Alternative Debt Financing arranged in compliance with this Section 6.21(c), and (iii) the term “Financing Sources” shall be deemed to include any financing sources providing the Alternative Debt Financing or Bond Financing arranged in compliance herewith.

Appears in 1 contract

Sources: Merger Agreement (Sempra Energy)

Financing. (a) Each of Parent shall use, and Merger Sub shall use cause its Affiliates to use, their reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper necessary or advisable to consummate and obtain the Financing on as promptly as possible following the terms and subject only to date of this Agreement (and, in any event, no later than the conditions (including the market “flex” provisions) set forth in the Financing LettersClosing Date), including using reasonable best efforts to including: (i) maintain (A) maintaining in effect the Commitment Letter and comply complying with the Financing Lettersall of their respective obligations thereunder and (B) negotiating, (ii) negotiate entering into and enter into delivering definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on reflecting the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (or on with other terms thatagreed by Parent and the Financing Parties, with respect subject to conditionalitythe restrictions on amendments of the Commitment Letter set forth below), so that such agreements are not less favorable to Parent or Merger Sub in effect no later than the terms and conditions Closing Date; and (including market “flex” provisionsii) set forth in the Debt Commitment Letter), (iii) satisfy satisfying on a timely basis all the conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto that are applicable to Parent and its Affiliates. (including by consummating b) In the Equity Financing at or prior to the Closing on the terms and subject to the event that all conditions set forth in the Equity Funding Letter) (ýSection 7.01 and Section 7.03 have been satisfied or waived or, if necessary upon funding shall be satisfied or deemed advisable by Parentwaived, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)its Affiliates shall cause the Financing Parties to fund on the Closing Date the Financing, (iv) upon to the satisfaction or waiver of extent the conditions to Parent’s and Merger Sub’s obligations proceeds thereof are required to consummate the Offer and the Merger, consummate the Financing and cause the lenders Merger and the other Persons committing to fund the Financing to fund the Financing at the Closingtransactions contemplated hereby, (v) and shall enforce its rights under the Financing Letters Commitment Letter. Parent shall not, and shall cause its Affiliates not to, take or refrain from taking, directly or indirectly, any action that would reasonably be expected to result in a failure of any of the conditions contained in the Commitment Letter or in any definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating agreement related to the Financing. Parent shall not, and shall cause its Affiliates not to, object to the utilization of any "market flex" provisions by any Financing Party. (c) Parent shall keep the Company reasonably informed, promptly upon request by the Company (and in any event within two Business Days of such request), of the status of Parent's efforts to obtain the Financing and to satisfy the conditions thereof. Without limiting the foregoing, Merger Sub Parent shall notify the Company promptly (and in any event within two Business Days) if at any time prior to the Guarantors Closing Date: (i) the Commitment Letter expires or is terminated for any reason (or if any Person attempts or purports to terminate or repudiate the Commitment Letter, whether or not such attempted or purported termination or repudiation is valid); (ii) Parent obtains Knowledge of any breach or default, or any event or circumstance that, with or without due notice, lapse of time or both, would reasonably be expected to give rise to any breach or default, by any party to the Commitment Letter or any definitive document related to the Financing of any provisions of the Commitment Letter or any definitive document related to the Financing; (iii) Parent receives any written communication from any Person with respect to any actual, potential or threatened breach, default, termination or repudiation by any party to the Commitment Letter or any definitive document related to the Financing; or (iv) any Financing Party refuses to provide or expresses in writing an intent to refuse to provide all or any portion of the Financing contemplated by the Commitment Letter on the terms set forth therein (or expresses in writing that such Person does not intend to enter into all or any portion of definitive documentation related to the Financing or to consummate the transactions contemplated thereby). (d) Parent may amend, modify, terminate, assign or agree to any waiver under the Commitment Letter without the prior written approval of the Company; provided, that Parent shall not, without the Company's prior written consent of the Companyconsent, agree to or permit any termination of or such amendment, supplement modification, termination, assignment or modification waiver to be made to, or grant any waiver of to any provision under, of or remedy under the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver Commitment Letter which would (Ai) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amountdiscount), (Bii) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing or (iii) otherwise expand, amend, modify or waive any provision of the Commitment Letter in a manner that in any such case would reasonably be expected to materially (A) delay or prevent make less likely the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or Date, (CB) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters Parties or (C) timely consummate the definitive agreements Merger and the other transactions contemplated hereby. In the event that new commitment letters or fee letters are entered into in accordance with respect any amendment, replacement, supplement or other modification of the Commitment Letter permitted pursuant to the Financing. this ýSection 6.16(d), Parent shall promptly deliver to the Company copies a true, complete and accurate copy thereof (and in the case of any amendmentthe Fee Letter, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofredacted in a manner consistent with Section 3.28). Notwithstanding anything to the contrary in For purposes of this Agreement, nothing contained the terms "Commitment Letter" and "Fee Letter" shall include and mean such documents as amended, supplemented, modified, waived or replaced in compliance with this Section 5.04 shall require6.16(d), and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).and

Appears in 1 contract

Sources: Merger Agreement (Denbury Resources Inc)

Financing. (a) Each of Parent and Merger Sub Buyer shall use its reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, done all things necessary, proper or advisable necessary to consummate and obtain the Financing on the terms and subject only to conditions stated in the conditions Commitment Letters (including the market any “flex” provisions) set forth in provisions included therein), by the Financing LettersClosing, including using reasonable best efforts to (i) maintain maintaining in effect and comply with the Financing Commitment Letters, (ii) negotiate and enter into negotiating definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing contemplated by the Debt Commitment Letters on the terms and subject only to conditions contained in the conditions Debt Commitment Letters (including the market any “flex” provisions) set forth in the Debt Commitment Letter (or on such other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in acceptable to Buyer as would not adversely impact the timing or the amount of the Debt Financing in an amount less than that required to consummate the transactions herein (after taking into account the funds to be made available under the Equity Commitment LetterLetters), (iii) satisfy satisfying on a timely basis (taking into account the expected timing of the Closing) all the conditions and covenants applicable to Parent Buyer obtaining the financing contemplated by the Commitment Letters to the extent such conditions and Merger Sub covenants are in the Financing Letters Buyer’s or any Affiliate of Buyer’s control and the definitive agreements related thereto (iv) taking enforcement action (including by consummating through litigation) to cause the Equity Debt Financing at or prior Sources providing such financing to comply with their obligations under the Closing on Debt Commitment Letter and, subject to the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)Letter, (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund such financing. Buyer shall promptly provide Seller, upon reasonable request, with such information as shall be reasonably necessary to allow Seller to monitor the progress of such financing activities. Seller shall be entitled, upon reasonable request given in writing to Buyer at least three Business Days in advance, to consult with Buyer’s Investors and Debt Financing Sources regarding the Financing, solely to fund the Financing at the Closingextent that a Representative of Buyer is present during any such consultation. (b) Neither Buyer nor its Affiliates will amend, (v) enforce its rights modify, terminate, assign or agree to any waiver under the Financing Commitment Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent approval of the Company, agree to or permit any termination of or Seller if such amendment, supplement or modification to be made tomodification, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification assignment or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, expand or adversely amend or modify any of the conditions precedent to the Financing receipt of the financing in a manner that would reasonably be expected to materially delay or prevent the funding Closing, reduce the cash amount of the Financing funding commitments thereunder (or satisfaction of unless after giving effect thereto there is a corresponding increase in amounts available under the conditions to the Financing) on the Closing Date or (C) Equity Commitment Letters), adversely impact the ability of Parent or Merger Sub, as applicable, Buyer to enforce its rights against other parties under any Commitment Letter or adversely impact the ability of the Buyer to consummate the transactions contemplated by this Agreement (collectively, the “Restricted Commitment Letter Amendments”); provided that Buyer may amend the Debt Commitment Letters to add or replace lenders, lead arrangers, bookrunners, syndication agents or similar entities who had not executed the Debt Commitment Letters as of the date hereof. Notwithstanding anything in this Agreement to the contrary, one or more Debt Commitment Letters may be superseded at the option of Buyer after the date hereof but prior to the Closing by new debt commitment letters (the “New Debt Commitment Letters”) which replace the existing Debt Commitment Letters; provided that, the terms of the New Debt Commitment Letters shall not impose new or additional conditions or adversely amend the existing conditions to the receipt of the Debt Financing as set forth in the Debt Commitment Letters or otherwise implement any Restricted Commitment Letter Amendments. If funds in the definitive agreements amounts necessary to consummate the transactions herein become unavailable within the time contemplated in the Commitment Letters, Buyer shall use its reasonable best efforts to obtain substitute financing from alternative sources, on terms and conditions as are not less favorable to Buyer (in the reasonable judgment of Buyer) than those set forth in the Debt Commitment Letters as in effect prior to such alternative financing and, sufficient to enable Buyer to consummate the transactions contemplated by this Agreement in accordance with respect its terms (the “Substitute Financing”). In any event where Buyer enters into New Debt Commitment Letters or a Substitute Financing, the term “Debt Commitment Letters” as used herein shall be deemed to include the Debt Commitment Letters that are not so superseded at the time in question and the New Debt Commitment Letters to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofextent then in effect. Notwithstanding anything to the contrary contained in this Agreement, nothing contained in this Section 5.04 6.16 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub Buyer be deemed or construed to require, either Parent or Merger Sub Buyer to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees to the lenders in excess of those contemplated by the Equity Funding Letter or in the Debt Commitment Letter Letters and related fee letters (including any market the “flex” provisions thereof) as of the Execution Date, whether to secure waiver of any conditions contained therein)therein or otherwise, (ii) amend or waive any of the terms or conditions hereof, (iii) consummate the Closing at any time prior to the date determined in accordance with Section 9.1 or (iv) except to the extent required by the Debt Commitment Letters, use any cash or other assets on its balance sheet to pay any portion of the Closing Payment. (c) Buyer shall promptly notify Seller in writing (i) of any material breach or default (or any event or circumstance that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any material breach or default) by Buyer under the Commitment Letters or any definitive agreements related thereto or, to the knowledge of Buyer, any other party to any Commitment Letter or definitive agreements related thereto, and (ii) of the receipt by Buyer of any written notice or other written communication from any Person with respect to any actual or alleged material breach, default, termination or repudiation by any party to any Commitment Letter or any definitive agreement related thereto or any provision of the financing contemplated pursuant to the Commitment Letters.

Appears in 1 contract

Sources: Membership Interest Purchase Agreement (Arc Logistics Partners LP)

Financing. New Investing. Give the Administrative Agent (a) Each advance written notice of Parent the establishment of any new Significant Joint Venture or the formation of any new Significant Subsidiary, which such new Significant Subsidiary shall become a Guarantor, by and Merger Sub shall use reasonable best efforts to takeeffective upon compliance with the provisions of Section 6.04(s), 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 subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to unless (i) maintain in effect and comply with the Financing Letterssuch Subsidiary is a Joint Venture Subsidiary, (ii) negotiate the terms of the agreement creating such Joint Venture prohibit the joint venturers thereof from being or becoming liable for any Indebtedness other than Indebtedness of the Joint Venture and (b) written notice of the formation of any new Subsidiary which is not a Significant Subsidiary given not later than ninety (90) days after such formation, which new Subsidiary shall become a Guarantor by and effective upon compliance with the provisions of Section 6.04(s), unless (x) such Subsidiary is a Joint Venture Subsidiary, and (y) the terms of the agreement creating such Joint Venture prohibit the joint venturers thereof from being or becoming liable for any Indebtedness other than Indebtedness of the Joint Venture; provided, however, that (A) nothing in this Section 6.07 shall be deemed to authorize the Borrower or any of its Subsidiaries to enter into definitive agreements any such transaction if the same would violate any of the limitations set forth in Article VII hereof, (which, with respect to the bridge facility documentation, B) such Subsidiary shall not be required until determined to deliver a Guaranty if applicable laws or regulations (such as, by Parent to be reasonably likely to be necessary in connection with the funding way of the Debt Financingexample, laws regulating insurance companies or providers of cable services) with respect to the Debt Financing on the terms prohibit such Subsidiary from delivering a Guaranty and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, a Subsidiary that is not a Wholly-Owned Subsidiary shall not be required to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofa Guaranty. Notwithstanding anything to the contrary in this Agreement, nothing contained if at any time or from time to time any event results in a Change in Status of a Guarantor, the Borrower shall deliver notice thereof to the Administrative Agent, including a reasonably detailed description of the Change in Status and a statement of the effective date of the Change in Status. Such notice shall be delivered no later than 60 days after the end of the fiscal quarter during which such Change in Status occurs; provided, however, that with respect to any Change in Status occurring during the last quarter of Borrower’s fiscal year, such notice shall be delivered no later than 120 days after the end of such final fiscal quarter. Each Change in Status event shall be effective as of the effective date of such Change in Status, automatically, without any further action by any party to this Section 5.04 shall requireAgreement, and the Subsidiary that is subject to such Change in Status shall no event shall the reasonable best efforts of Parent or Merger Sub longer be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or a Guarantor. In connection with each Change in any amount in excess of that contemplated byStatus, the Equity Funding LetterAdministrative Agent, or (ii) pay any material fees on behalf of Lenders, shall promptly following receipt of written notice of Change in excess Status, execute and deliver to the Borrower a written confirmation of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)such Change in Status.

Appears in 1 contract

Sources: Credit Agreement (Lennar Corp /New/)

Financing. (a) Each of Parent and Merger Acquisition Sub acknowledges and agrees that prior to the Effective Time the Company and its Affiliates and its and their respective Representatives shall not be required to incur any liability to any Person under any financing that Parent and Acquisition Sub may raise in connection with the transactions contemplated by this Agreement or any cooperation provided pursuant to Section 6.16 and that Parent and Acquisition Sub shall, on a joint and several basis, indemnify and hold harmless the Company and its Affiliates and its and their respective Representatives from and against, and compensate and reimburse the Company and its Affiliates and its and their respective Representatives for, any and all losses, damages, claims, costs or expenses suffered or incurred by any of them in connection with the Financing, except in each case to the extent arising from the gross negligence, recklessness or willful misconduct of any such Persons. (b) Subject to the terms and conditions of this Agreement, each of Parent and Acquisition Sub shall use use, and shall cause their Affiliates to use, their respective reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the proceeds of the Financing as promptly as practicable on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitment Letter, including using (and causing their Affiliates to use) their respective reasonable best efforts to to: (i) maintain in effect and comply with the Financing LettersCommitment Letter, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing thereto as promptly as practicable on the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), which agreements shall be in effect at the Effective Time, (iii) satisfy satisfy, or cause their Representatives to satisfy, on a timely basis all conditions applicable to Parent Parent, Acquisition Sub or their respective Representatives in such definitive agreements that are within its control, and Merger Sub in (iv) cause the Financing Letters Sources and any other Persons providing Financing to fund the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on Effective Time, including by enforcing (including by seeking through litigation to enforce) such Persons’ funding obligations (and the terms rights of Parent and subject Acquisition Sub) under the Commitment Letter and Financing Arrangements (as defined below) to the conditions set forth in the Equity Funding Letter) (or, if extent necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing Merger Consideration. (c) Parent shall not agree to, or permit, any amendments or modifications to, or any waivers under, the Commitment Letter (after giving effect to fund the Financing at the Closing, (vflex provisions) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing Company if such terminationamendments, amendment, supplement, modification modifications or waiver waivers would (A) reduce the aggregate amount of any portion of the Financing (including by increasing changing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountFinancing), (B) or impose new or additional conditions or otherwise expand the then existing conditions precedent to the availability funding of the Financing at or otherwise expand, amend or modify any of the conditions precedent prior to the Financing in a manner that Effective Time, if such new or additional conditions or such expanded existing conditions would reasonably be expected to (i) prevent or materially delay or prevent impair the funding ability of Parent to consummate the Financing (or satisfaction of the conditions to the Financing) on the Closing Date Merger or (Cii) adversely impact the ability of Parent or Merger Sub, as applicable, Acquisition Sub to enforce its rights against the other parties to the Commitment Letter. Parent shall not release or consent to the termination of the funding obligations of the Financing Letters Sources under the Commitment Letter, except for assignments and replacements of an individual lender under the terms of or in connection with the syndication of the Commitment Letter if applicable; provided, that such assignments or replacements would not prevent or materially delay or impair the ability of Parent to consummate the Merger or the other transactions contemplated by this Agreement. (d) In the event that Parent determines that any portion of the Financing will not be available in the manner or from the sources contemplated in the Commitment Letter, (i) Parent shall promptly so notify the Company and (ii) Parent and Acquisition Sub shall use their respective reasonable best efforts to arrange and obtain, and to negotiate and enter into definitive agreements with respect to, alternative financing from alternative financial institutions in an amount sufficient to consummate the Financingtransactions contemplated by this Agreement upon conditions not materially less favorable to Parent than those in the Commitment Letter, as promptly as practicable following the occurrence of such event (and in any event no later than the Effective Time). Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the The definitive agreements relating entered into pursuant to the Financing promptly upon execution thereof. Notwithstanding anything Section 6.15(d) or Section 6.15(b)(ii) are referred to the contrary in this Agreement, nothing contained in this Section 5.04 shall requirecollectively, and in no event shall as the reasonable best efforts “Financing Agreements.” (e) Each of Parent and Acquisition Sub acknowledges and agrees that neither the obtaining of the Financing or Merger Sub be deemed any alternative financing, nor the completion of any issuance of securities contemplated by the Financing or construed any alternative financing, is a condition to require, either the Closing. (f) Parent or Merger Sub to shall (i) seek promptly furnish the Equity Company complete, correct and executed copies of the Financing from Agreements and any source other than amendment, modification or replacement of the counterparties toCommitment Letter or any Financing Agreements promptly upon their execution, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay give the Company prompt written notice of any breach or threatened (in writing) breach by any party of the Commitment Letter or any of the Financing Agreements of which Parent or Acquisition Sub becomes aware or any termination or threatened (in writing) termination thereof, (iii) give the Company prompt written notice of any material fees dispute or disagreement between or among any parties to the Commitment Letter or any Financing Agreements that would reasonably be expected to result in excess a breach under the Commitment Letter or Financing Agreements, (iv) give the Company prompt written notice if for any reason Parent or Acquisition Sub has determined in good faith that it will not be able to obtain all or any portion of those the Financing on substantially the terms and conditions contemplated by the Equity Funding Commitment Letter or Financing Agreements, (v) promptly furnish any additional information reasonably requested in writing by the Debt Commitment Letter Company relating to the circumstances in clauses (including i) through (iv) of this Section 6.15(f)) and (vi) otherwise keep the Company reasonably informed of the status of its efforts to arrange the Financing (or any market “flex” provisions contained thereinalternative financing).

Appears in 1 contract

Sources: Merger Agreement (Cypress Semiconductor Corp /De/)

Financing. (a) Each of Parent Miami shall, and Merger Sub shall cause its Subsidiaries to, use reasonable best efforts to take, 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 arrange as promptly as reasonably practicable the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding LetterSeattle Commitment Letter or on such other terms that would not be prohibited by Section 7.7(b) (or, if necessary in the event any portion of or deemed advisable all of the Financing pursuant to the Seattle Commitment Letter becomes unavailable, the Alternative Commitment Letter). Miami shall, and shall cause its Subsidiaries to, use reasonable best efforts to (i) comply with and maintain the Seattle Commitment Letter in effect until the initial funding of the Financing and negotiate definitive agreements with respect thereto, on the terms and conditions contained therein or on such other terms that would not be prohibited by Parent, seek Section 7.7(b) (the waiver of conditions “Financing Agreements”) and shall deliver to Houston a copy thereof as promptly as practicable upon reasonable request (and no later than one (1) Business Day after such request); (ii) comply with the obligations that are set forth in the Seattle Commitment Letter that are applicable to Parent Miami or any Subsidiary of Miami Table of Contents and Merger Sub contained satisfy on a timely basis all conditions precedent in such Debt the Seattle Commitment Letter and the Financing Agreements that are within its control; and (iii) fully enforce the rights of the Miami Parties under the Seattle Commitment Letter and the Financing Agreements. In the event any funds in the amounts set forth in the Seattle Commitment Letter or the Financing Agreements, or any portion thereof, become unavailable on the terms and conditions contemplated in the Seattle Commitment Letter or the Financing Agreements, or it becomes reasonably likely that such funds may become unavailable on the terms and conditions set forth therein, Miami shall, and shall cause its Subsidiaries to, use reasonable best efforts to arrange to obtain promptly any such portion from the same or alternative sources, in an amount sufficient, when added to the portion of the Financing that is available, to allow Seattle to pay all of the Financing Obligations (the “Alternative Financing”) and to obtain, and, when obtained, to provide promptly to Houston a copy of, a new financing commitment that provides for such financing (the “Alternative Commitment Letter”) and negotiate definitive agreements related theretowith respect thereto on the terms and conditions contained therein (the “Alternative Financing Agreements”). In the event Alternative Financing is obtained, (iv) upon any reference in this Agreement to “Financing” shall include “Alternative Financing,” any reference to “Seattle Commitment Letter” shall include the satisfaction or waiver of “Alternative Commitment Letter,” any reference to “Seattle Lenders” shall include the conditions financial institutions providing such Alternative Financing, and any reference to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the “Alternative Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the Agreements” shall include any definitive agreements relating with respect to the Financing Alternative Commitment Letter, and (vi) otherwise comply all obligations of each party pursuant to this Section 7.7 shall be applicable thereto to the same extent as such party’s obligations, as the case may be, with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating respect to the Financing. (b) Miami shall give Houston prompt written notice upon it or any of its Subsidiaries obtaining knowledge (w) of any material breach (or threatened material breach) or default (or any event or circumstance that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any material breach or default) by any party to the Seattle Commitment Letter or the Financing Agreements; (x) of any actual or threatened withdrawal, repudiation or termination of the Financing by any of the Seattle Lenders; (y) of any material dispute or disagreement between or among any of the parties to the Seattle Commitment Letter or the Financing Agreements; and (z) of any amendment or modification of, or waiver under, the Seattle Commitment Letter or the Financing Agreements. ParentMiami and Houston shall give each other prompt written notice if for any reason it believes in good faith that the Miami Parties or Seattle, Merger Sub as applicable, will not be able to timely obtain all or any portion of the Financing on the terms and in the Guarantors manner or from the sources contemplated by the Seattle Commitment Letter or the Financing Agreements. Miami shall keep Houston informed in reasonable detail of the status of its efforts to arrange the Financing, including by providing copies of then-current drafts of the Financing Agreements and providing copies of all definitive agreements, in each case, upon reasonable request. The Miami Parties shall not, without the prior written consent of the CompanyHouston, agree to or permit any termination of or amendmentamend, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendmentmodify, supplement, modification restate, substitute, replace, terminate, or agree to any waiver under the Seattle Commitment Letter in a manner that: (i) adds new or expands upon the conditions precedent to the funding of the Financing as set forth in the Seattle Commitment Letter, (ii) would (A) reduce the aggregate amount of Financing provided for under the Seattle Commitment Letter, (iii) would limit the rights and remedies of the Miami Parties as against the Seattle Lenders; or (iv) would otherwise prevent, impair or materially delay the consummation of the transactions contemplated by this Agreement and the other Transaction Documents; provided, that notwithstanding the foregoing, (x) the Miami Parties may modify pricing and implement or Table of Contents exercise any of the “market flex” provisions exercised by the Seattle Lenders in accordance with the Seattle Commitment Letter as of the date hereof and (y) additional lenders and financing sources may be added (including in replacement of a Seattle Lender) to the Seattle Commitment Letter (or all or a portion of the Financing (including by increasing commitments may be assigned to new or existing lenders and financing sources) after the amount of fees date hereof or thereof and the Miami Parties may reallocate commitments or assign or re-assign titles and roles to be paid or original issue discount as compared among parties to the fees and original issue discount Seattle Commitment Letter. Miami shall, to the extent reasonably required for the Miami business after giving effect to the transactions contemplated by this Agreement, use reasonable best efforts to obtain the financing contemplated by the Financing Letters on Miami Commitment Letter and, unless an alternative financing source is funded, or an amendment or a commitment therefor with no more onerous conditionality than that contained in the date of this Agreement unless Miami Commitment Letter is obtained, use reasonable best efforts to maintain the Debt Financing or Equity Financing is increased by a corresponding amount) such that Miami Commitment Letter in full force and effect for the aggregate amount of financing contemplated by the Miami Commitment Letter as of the date hereof and with conditionality no more onerous than in effect as of the date hereof. (c) Prior to the Closing, Houston shall use reasonable best efforts to provide, and shall use its reasonable best efforts to cause its Representatives (and use reasonable best efforts to cause external auditors) to provide all reasonable cooperation in connection with the arrangement and consummation of the Financing would and the arrangement of the Miami Financing in the bank financing market in each case, as may be below reasonably requested by Miami and that is customary in connection with efforts to obtain financing of the amount required type of the Financing and the Miami Financing, including (i) participation in a reasonable number of lender meetings, rating agency presentations and due diligence sessions at mutually agreeable times and upon reasonable notice; (ii) furnishing to pay Miami and the Required AmountLenders, as applicable, pertinent information regarding the Seattle Business as is customary in connection with bank facilities such as the Financing and the Miami Financing and such other financial information as may be reasonably requested by Miami in order to consummate the Financing and the Miami Financing, including furnishing to Miami information and assistance in connection with Miami’s preparation of projections and pro forma financial statements; (iii) assisting Miami and its financing sources in the marketing and syndication of the Financing and the Miami Financing and in the preparation of (A) a customary private and public bank information memorandum for the Financing and the Miami Financing; and (B) impose new materials for rating agency presentations, lender presentations and bank syndication materials and similar documents required in connection with the Financing and the Miami Financing; (iv) taking customary corporate actions reasonably requested by Miami that are necessary to authorize and permit the consummation of the Financing; (v) providing customary authorization and management representation letters representing that the information provided by Houston and its Subsidiaries and Seattle and its Subsidies and their respective Representatives for inclusion in any confidential information memorandum or additional conditions precedent lender presentation does not include material non-public information about Houston, Seattle and their respective Subsidiaries or securities, and designating such information as suitable to be made available to lenders who do not wish to receive material non-public information and containing a customary 10b-5 representation (solely with respect to Seattle and its subsidiaries); (vi) providing such customary assistance with the preparation of any credit or loan agreements and other related definitive financing documents as may be reasonably requested and facilitating in the provision of guarantees and collateral of Seattle and its Subsidiaries, in each case, related to the availability Financing and the Miami Financing; and (vii) providing at least five (5) Business Days prior to the Closing all documentation and other information about the Seattle Business required by applicable “know Table of Contents your customer” and anti-money laundering rules and regulations including the USA PATRIOT Act to the extent reasonably requested at least ten (10) Business Days prior to the anticipated closing of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Miami Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this AgreementSection 7.7(c), nothing no action contemplated in this Section 7.7(c) shall be required if any such action shall: (I) unreasonably disrupt or interfere with the business or ongoing operations of Houston and its Subsidiaries; (II) cause any representation or warranty or covenant contained in this Section 5.04 shall requireAgreement to be breached; (III) involve the entry into any Financing Agreement or any other binding commitment by Houston or any of its Subsidiaries (other than with respect to the Financing, in the case of Seattle and its Subsidiaries, (x) the Financing Agreements and, if applicable, Alternative Financing Agreements, and related authorizations, certificates, instruments and documents contemplated thereby, (y) documentation with respect to the Loan Escrow Demand and the borrowing contemplated thereby and (z) customary representation and authorization letters referred to in no event clause (v) of this Section 7.7(c)); (IV) require Houston or any of its Subsidiaries or any of its or their Representatives to provide (or to have provided on its behalf) any certificates or legal opinions (other than, in the case of Seattle and its Subsidiaries, (x) certificates delivered at the closing of the Financing (or pursuant to a Loan Escrow Demand) and on the Distribution Date and (y) upon incurrence of the Financing, a customary opinion related to the non-contravention of the Financing with the Houston Credit Agreement and any indentures to which Houston is a party on such date); (V) cause any director, officer or employee of Houston or any of its Subsidiaries to incur any personal liability; (VI) require Houston or any of its Subsidiaries to execute and deliver any pledge or security documents or certificates, documents or instruments relating to the provision of guarantees and collateral in connection with the Financing or the Miami Financing other than those related to Seattle and its Subsidiaries that shall not become effective until after the reasonable best efforts of Parent Distribution and except in connection with a Loan Escrow Demand, or Merger Sub be deemed (VII) without limiting clauses (III) and (VI) above, require Houston or construed its Subsidiaries to require, either Parent execute and deliver any documentation related to the Financing or Merger Sub to the Miami Financing other than documentation which only becomes effective (i) seek in the Equity case of the Financing, immediately prior to the funding of the Financing and the Distribution, except in connection a Loan Escrow Demand and (ii) in the case of the Miami Financing, after the Merger. Houston hereby consents to the use of Seattle’s and its Subsidiaries’ logos in connection with the Financing and solely in a manner that is not intended or reasonably likely to harm or disparage the reputation or goodwill of the relevant party, or any of their respective intellectual property rights. (d) Notwithstanding anything herein to the contrary, if the Financing is available and all conditions to the Closing set forth in Section 8 have been satisfied or waived other than those conditions that by their nature are to be satisfied at the Closing, Houston shall cause Seattle or a Subsidiary of Seattle to, and Seattle or such Subsidiary shall, incur the indebtedness provided for under the Seattle Commitment Letter and the Financing Agreements and use the proceeds thereof to make the Seattle Payment, including by executing and delivering to the Seattle Lenders the Financing Agreements and related certificates, instruments and documents contemplated thereby; provided that such obligations shall be subject to clauses (V), (VI) and (VII) of Section 7.7(c) mutatis mutandis and Houston shall not be required to deliver any legal opinions (other than, upon incurrence of the financing, a customary opinion related to the non-contravention of the Financing with the Houston Credit Agreement and indentures to which Houston is a party on such date). On or after April 4, 2017, if the Seattle Lenders under the Seattle Commitment Letter require that the Financing be funded and placed in escrow pursuant to the terms of the Seattle Table of Contents Commitment Letter (a “Loan Escrow Demand”), Seattle or such Subsidiary shall take all actions necessary to satisfy such Loan Escrow Demand, including: (i) pledging the proceeds of such financing to the administrative agent, for the benefit of the lenders, thereunder, to secure the obligation to repay any borrowing to the extent the Closing Conditions (defined below) are not satisfied and this Agreement has been terminated pursuant to Section 9, which pledge shall provide that such proceeds shall be released prior to and in anticipation of the Distribution on terms reasonably satisfactory to Houston and Miami, (ii) entering into customary escrow arrangements reasonably satisfactory to Houston and Miami, (iii) borrowing the full amount of the Financing and placing such funds into escrow (such principal amount, the “Loan Escrow Amount”) and pre-funding in cash, in advance each quarter as contemplated in the Seattle Commitment Letter, the amount of ticking fees and interest that will accrue on such Loan Escrow Amount in accordance with the terms of the Seattle Commitment Letter through the Outside Date (as defined in the Seattle Commitment Letter) (such interest amount, the “Loan Interest Escrow Amount”). Houston and Miami shall undertake good faith discussions to consider permitting a trust company or similar entity to be the borrower of such Loan Escrow Amount. Any such escrow arrangements shall provide that (x) the Loan Escrow Amount (plus any unused Loan Interest Escrow Amounts) will be released to Seattle upon the satisfaction of the conditions to the release of proceeds of the Financing from escrow to fund the Distribution (the “Closing Conditions”) or (y) such borrowing shall be repaid at the issue price plus accrued and unpaid interest thereon in the event that the Closing Conditions are not satisfied and this Agreement has been terminated pursuant to Section 9. Seattle will pay the fees required to paid by it under the Seattle Commitment Letter. (e) All non-public or otherwise confidential information regarding the Seattle Business obtained by Miami or its Representatives pursuant to this Section 7.7 shall be kept confidential in accordance with the terms of the Confidentiality Agreement. Notwithstanding any source other than the counterparties to, provision set forth herein or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).ot

Appears in 1 contract

Sources: Merger Agreement

Financing. (a) Each of Parent and ▇▇▇▇▇▇ Sub acknowledges and agrees that the Company and its Affiliates have no responsibility for any financing Parent or Merger Sub may raise in connection with the Transactions. Each of Parent and Merger Sub shall use reasonable efforts to take (and shall use its reasonable best efforts to cause its Affiliates to take) all actions, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate obtain the Financing contemplated by the Commitment Letters in amounts at least equal to the Financing Amounts. In furtherance and not in limitation of the foregoing, Parent and Merger Sub shall use reasonable best efforts to take all actions and do, or cause to be done, all things necessary, proper or advisable to obtain the proceeds of the Financing on the terms and subject only to the conditions described in the applicable Commitment Letter on a timely basis, taking into account the anticipated Closing Date, including by (including i) maintaining in effect the market Commitment Letters (ii) negotiating and entering into definitive agreements with respect to the Financing (the “Definitive Agreements”) consistent with the terms and conditions contained therein (including, as necessary, the “flex” provisionsprovisions contained in any related fee letter) set forth and (iii) satisfying, on a timely basis, all conditions in the Financing Letters, including using Commitment Letters and the Definitive Agreements that are within its control. Each of Parent and Merger Sub shall use its reasonable best efforts to (i) maintain in effect and comply with its respective obligations, and enforce its rights, under each Commitment Letter. Without limiting the Financing Lettersgenerality of the foregoing, in the event that all conditions contained in the applicable Commitment Letter or the Definitive Agreements (ii) negotiate other than the consummation of the Merger and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined those conditions that by Parent their nature are to be reasonably likely to be necessary in connection with the funding satisfied or waived at Closing) have been satisfied, each of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in shall cause the Debt Financing Letters and the definitive agreements related thereto (including by consummating Sources and/or the Equity Financing at or prior Investor, as applicable, to fund the Closing on the terms and subject to the conditions set forth in the Equity Funding LetterFinancing. (b) (or, if necessary or deemed advisable by Parent, seek the waiver Each of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, not without the prior written consent of the Company, agree to or : (i) permit any termination of or amendment, supplement amendment or modification to be made to, or grant consent to any waiver of any provision or remedy under, the Financing Commitment Letters or the definitive agreements relating to the Financing Definitive Agreements if such termination, amendment, supplement, modification or waiver would (A) reduce imposes new or additional conditions or other contingencies or otherwise expands, amends or modifies any of the aggregate amount conditions or other contingencies, in each case, to the consummation or receipt of all or any portion of the Financing, (B) reduces the aggregate principal amount of the Debt Financing contemplated in the Debt Commitment Letter (including by increasing changing the amount of fees to be paid or the original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing discount) or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Equity Financing would be contemplated in the Equity Commitment Letter below the amount required to pay the Required AmountFinancing Amounts, (BC) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact affect in any material respect the ability of Parent or Merger Sub, as applicable, Sub to enforce its rights against other parties to the Financing Commitment Letters or the definitive agreements with respect Definitive Agreements as so amended, modified or waived, relative to the Financingability of Parent or Merger Sub to enforce its rights against the other parties to the Commitment Letters as in effect on the date of this Agreement, (D) would reasonably be expected to make the timely funding of the Financing or satisfaction of the conditions to obtaining the Financing on the Closing Date less likely to occur or (E) would otherwise reasonably be expected to materially prevent, impede or delay the consummation of the Merger and the other Transactions contemplated by this Agreement; or (ii) terminate the Commitment Letters or any material Definitive Agreement; provided that, however, for the avoidance of doubt, Parent and Merger Sub may amend, replace, supplement and/or modify the Debt Commitment Letter as expressly contemplated thereby as of the date hereof solely to add lenders, lead arrangers, bookrunners, syndication agents or similar entities as parties thereto who had not executed the Debt Commitment Letter as of the date hereof but only to the extent doing so would not have the effects described in clauses (i)(A) – (E) above. Each of Parent and Merger Sub shall promptly deliver to the Company copies of any such amendment, modification, supplement, consent modification or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofwaiver. Notwithstanding anything to the contrary Any reference in this AgreementAgreement to “Equity Financing” shall include the financing contemplated by the Equity Commitment Letter as amended or modified in express compliance with this Section 5.07(b), nothing contained and “Equity Commitment Letter” shall include such document as amended or modified in express compliance with this Section 5.07(b). Any reference in this Agreement to “Debt Financing” shall include the financing contemplated by the Debt Commitment Letter as amended or modified in express compliance with this Section 5.04 shall require5.07(b), and “Debt Commitment Letter” shall include such document as amended or modified in no express compliance with this Section 5.07(b). (c) In the event shall that any portion of the Debt Financing becomes unavailable, regardless of the reason therefor, Parent shall, (i) promptly notify the Company of such unavailability and the reason therefor and (ii) use reasonable best efforts to arrange and promptly obtain alternative debt financing (in an amount sufficient, when taken together with the available portion of the Financing, to consummate the Transactions and to pay the Financing Amounts) from alternative sources on terms and conditions not materially less favorable, in the aggregate, to Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or those contained in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).provided that no New

Appears in 1 contract

Sources: Merger Agreement (Coupa Software Inc)

Financing. (a) Each of Parent and Merger Sub 5.9.1 In addition to the Purchaser’s obligations provided elsewhere in this Agreement, including Section 5.8, the Purchaser shall use commercially reasonable best efforts to, and shall use commercially reasonable efforts to takecause each of its affiliates to, 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 not later than the Closing, on the terms and subject only to conditions contained in the conditions Financing Commitment Letters (including the market “flex” flex provisions) set forth in the Financing Letters), including using commercially reasonable best efforts to (i) maintain in effect and comply with its obligations under the Financing Commitment Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing Commitment Letter on the terms and subject only to the conditions (including the market “flex” provisions) set forth contained in the Debt Commitment Letter (including flex provisions) or on other terms thatno less favorable, with respect individually or in the aggregate, to conditionality, are not less favorable to Parent or Merger Sub the Purchaser than the terms and conditions (including market “flex” provisions) set forth those contained in the Debt Commitment LetterLetter (the “Debt Financing Agreements”), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub the Purchaser contained in the Financing Commitment Letters and the definitive agreements related thereto Debt Financing Agreements, and (including by consummating iv) consummate the Equity Financing following the satisfaction of all conditions to the consummation of the Financing as set forth in the Financing Commitment Letters and the Debt Financing Agreements but in all cases at or prior to Closing (it being understood that it is not a condition to Closing under this Agreement for the Closing on Purchaser to obtain the terms and Financing or any alternative financing). Notwithstanding anything to the contrary in the immediately preceding sentence, but subject to the conditions right or requirement to amend, modify, supplement, restate or replace the Financing Commitment Letters as set forth in this paragraph, the Equity Funding Letter) (orPurchaser shall use commercially reasonable efforts to, if necessary or deemed advisable by Parent, seek the waiver and shall use commercially reasonable efforts to cause each of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)its affiliates to, (ivi) upon maintain in effect the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer Financing Commitment Letters and the MergerDebt Financing Agreements, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (vii) enforce all of its rights under the Financing Commitment Letters and the definitive agreements Debt Financing Agreements. The Purchaser shall keep IAMGOLD informed on a regular basis and in reasonable detail of the status of its efforts to arrange the Debt Financing (including providing IAMGOLD with copies of the Debt Financing Agreements and drafts thereof). Without limiting the generality of the foregoing, the Purchaser shall give IAMGOLD prompt notice (x) of any actual breach or default (or any event or circumstance that, with or without notice, lapse of time or both, could reasonably be expected to give rise to any breach or default) by any other party to any of the Financing Commitment Letters or the Debt Financing Agreements of which the Purchaser becomes aware, (y) of the receipt of (A) any written notice or (B) other written communication, in each case from any person with respect to any (1) termination or repudiation by any party to any of the Financing Commitment Letters or the Debt Financing Agreements, (2) any actual or written allegation of any default or breach by any such party of any provisions of the Financing Commitment Letters or the Debt Financing Agreements, where such breach or default would reasonably be expected to give rise to a right to terminate the applicable Financing Commitment Letter or Debt Financing Agreement or would reasonably be expected to give rise to a material delay in the Purchaser’s ability to consummate the Closing, or (3) material dispute or disagreement between or among any parties to (I) any of the Debt Commitment Letter or the Debt Financing Agreements, including with respect to the obligation to fund the Debt Financing or the amount of the Debt Financing to be funded at the Closing, or (II) the Equity Commitment Letter that would reasonably be expected to give rise to a right to terminate the Equity Commitment Letter, and (z) if at any time for any reason the Purchaser believes in good faith that it will not be able to obtain all or any portion of the Debt Financing on the terms and conditions (including any market flex) contemplated by the Debt Commitment Letter or the Debt Financing Agreements. As soon as reasonably practicable, the Purchaser shall provide any information reasonably requested by IAMGOLD relating to any circumstance referred to in clause (x), (y) or (z) of the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating immediately preceding sentence. Prior to the Financing. ParentClosing, Merger Sub and the Guarantors Purchaser shall not, without the prior written consent of the CompanyIAMGOLD (such consent not to be unreasonably withheld, agree to conditioned or permit any termination of or amendmentdelayed), amend, modify, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify waive any of the conditions precedent or contingencies to funding contained in the Financing Commitment Letters or the Debt Financing Agreements, in each case, to the extent such amendment, modification, supplement or waiver, individually or in the aggregate, could reasonably be expected to have the effect of (A) delaying or preventing the Closing or (B) amending, modifying or supplementing the conditions or contingencies to the Financing in a manner that would reasonably makes it less likely that the Financing will be expected funded or imposing new or additional conditions or expanding any existing condition to materially delay or prevent the funding receipt of the Financing; provided that the Purchaser may amend, modify, supplement, restate or replace the Debt Financing (Commitment Letters, in whole or satisfaction of the conditions in part, subject to the Financingimmediately foregoing clauses (A) on and (B), provided that the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent Purchaser shall promptly deliver to the Company IAMGOLD copies of any such amendment, modification, supplement, consent restatement or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofreplacement. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated byset forth herein, the Equity Funding Letter, or Purchaser may (ii) pay any material fees without obtaining ▇▇▇▇▇▇▇’s consent (provided that the following does not result in excess of those a circumstance contemplated by the Equity Funding Letter immediately foregoing clauses (A) and (B)) replace, amend, restate, supplement or modify the Debt Commitment Letter (including to add lenders, lead arrangers, bookrunners, syndication agents or similar entities that have not executed the Debt Commitment Letter as of the date hereof. In the event that any market “flex” provisions contained therein).portion of the Debt Financing becomes unavailable on the terms and conditions or from the sources contemplated in the Debt Commitment Letter, the

Appears in 1 contract

Sources: Share Purchase Agreement (Iamgold Corp)

Financing. (a) Each of Parent and Merger Sub Purchaser shall use reasonable best efforts to take, or cause to be taken, all actions actions, and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain Financing on or prior to the Closing Date in an amount necessary to satisfy the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing LettersUses, including by using reasonable best efforts (taking into account the timing of the Marketing Period) to (i) maintain in effect and comply with the Financing LettersCommitments, (ii) negotiate and enter into definitive agreements as described in the Financing Commitments (which, the “Definitive Agreements”) consistent with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter contained therein (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub Purchaser than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment LetterFinancing Commitments so long as such other terms would not have any result, event or consequence described in clauses (A) through (D) of Section 5.07(b)) (including, as necessary, the “flex” provisions contained in any related fee letter), (iii) satisfy or, if deemed advisable by Purchaser, obtain a waiver thereof, on a timely basis all conditions applicable to Parent and Merger Sub Purchaser in the Financing Letters Commitments and the definitive agreements related thereto Definitive Agreements and comply with its obligations thereunder and (including iv) assuming all conditions contained in the Financing Commitments have been satisfied, enforce its rights, under the Financing Commitments or the Definitive Agreements, as applicable. Without limiting the generality of the foregoing, in the event that all conditions contained in the Financing Commitments (other than consummation of the transactions contemplated by consummating the Equity Financing this Agreement and those conditions that by their nature are to be satisfied or waived at or prior to the Closing on the terms and (but subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction fulfillment or waiver of such conditions)) have been satisfied, Purchaser shall use its reasonable best efforts to cause the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer Lenders and the Merger, consummate the Financing and cause the lenders and the other Persons committing Equity Investors to fund the Financing required to fund satisfy the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Uses.

Appears in 1 contract

Sources: Equity Purchase and Contribution Agreement (New Fortress Energy Inc.)

Financing. (a) The Company shall use commercially reasonable efforts, and shall cause its Subsidiaries to use commercially reasonable efforts, and shall use its commercially reasonable efforts to cause its and its Subsidiaries’ respective officers, directors, employees, accountants, consultants, legal counsel, agents and other representatives (collectively, the “Company Representatives”) to, at Parent’s sole expense, provide any cooperation that is reasonably necessary and customary and reasonably requested by Parent to assist Parent in the arrangement of any bank financing for the purpose of financing the Merger, the fees and expenses incurred in connection therewith and the other transactions contemplated hereby (the “Debt Financing”), including assisting with the preparation of materials for presentations, memoranda and similar documents required in connection with the Debt Financing; provided, however, that (x) nothing herein shall require such cooperation to the extent it would (A) unreasonably disrupt the conduct of the Company’s and the Subsidiaries’ respective businesses, (B) require the Company or any of the Subsidiaries or any of the Company Representatives to pay any fees or expenses or otherwise incur any liability or give any indemnities prior to the Effective Time (except to the extent any such fee or expense is conditioned on the consummation of the Merger or Parent has advanced the amount of such fees, expenses or liabilities to the Company or the Subsidiaries), and (C) require the preparation or delivery of (i) financial statements, other than those contemplated by Section 5.17(d), or (ii) pro forma financial information or forecasts of the Company and the Subsidiaries and (y) any documentation executed by the Company or any of its Subsidiaries shall not become effective until the consummation of the Closing. Notwithstanding anything to the contrary provided herein or in the Confidentiality Agreement, Parent shall be permitted to share all information subject to such agreement with its financing sources, subject to customary confidentiality undertakings by such financing sources with respect thereto. (b) Parent shall indemnify and hold harmless each of the Company, the Subsidiaries and their respective Company Representatives and any Seller Indemnified Party from and against any and all Losses suffered or incurred by them in connection with the arrangement of the Debt Financing and the performance of their respective obligations under this Section 5.17. Parent shall, promptly upon request of the Company, reimburse the Company and the Subsidiaries for all out-of-pocket costs and expenses incurred by the Company or the Subsidiaries (including those of their respective Company Representatives) in connection with the cooperation required by this Section 5.17. (c) Each of Parent and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all actions acknowledges and to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Letters, including using reasonable best efforts to agrees that (i) maintain in effect the obtaining of the Debt Financing is not a condition to the Closing, and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary that none of Parent’s or Merger Sub’s respective obligations hereunder are conditioned in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to any manner upon Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth obtaining financing in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver respect of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, transactions contemplated hereby. (vd) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on If the Closing Date or (C) adversely impact has not occurred on our prior to November 13, 2015, the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent Company shall promptly deliver to Parent upon request unaudited consolidated financial statements of the Company copies and the Subsidiaries as of any amendmentSeptember 30, modification2015, supplementconsisting of the consolidated balance sheet at such date and the related consolidated statements of operations and cash flows for the three- and nine-month periods then ended, consent or waiver to or under any Financing Letter or in a form consistent with the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)Interim Financial Statements.

Appears in 1 contract

Sources: Merger Agreement (Amerisourcebergen Corp)

Financing. (a) Each of Parent and Merger Sub shall use their reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, do all things necessary, proper necessary or advisable to consummate arrange and obtain the Financing as soon as reasonably practicable and, in any event, no later than the date and time the Acceptance Time is required to be effected in accordance with Section 1.01, on the terms and subject only to the conditions (including including, to the market extent applicable, the “flex” provisions) set forth described in the Financing LettersDebt Commitment Letter (for purposes of this Section 5.16, the Debt Commitment Letter shall include any Fee Letter), including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on Commitment Letter, consistent in all material respects with the terms and subject only conditions (as such terms may be modified or adjusted in accordance with the flex provisions contained in any Fee Letter) contemplated therein (the “Definitive Debt Financing Agreements”), (ii) satisfy (or obtain a waiver of) on a timely basis all terms, conditions and covenants, including with respect to the conditions (including the market “flex” provisions) set forth payment of any commitment, engagement or placement fees, applicable to Parent or Sub in the Debt Commitment Letter (or on other terms that, with respect to conditionality, and the Definitive Debt Financing Agreements that are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter)within Parent’s control, (iii) satisfy on a timely basis all conditions applicable consummate and cause the Lenders to Parent and Merger Sub in consummate the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on Acceptance Time and (iv) enforce their rights under the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the MergerDefinitive Debt Financing Agreements. Notwithstanding the foregoing, Parent and Sub may, as an alternative to arranging and obtaining the Financing, pursue, negotiate, execute and consummate one or more amendments, restatements or other modifications to the Existing Credit Agreement or other financing arrangements of Parent or Sub that provide financing in an amount sufficient to replace in full the Financing and cause contemplated by the lenders and Debt Commitment Letter (the “Replacement Financing”). Any Replacement Financing shall not be subject to any conditions precedent, representations, warranties, covenants or other Persons committing to fund terms that are, individually or in the Financing to fund the Financing at the Closingaggregate, (v) enforce its rights under the Financing Letters and the definitive agreements relating more burdensome or less favorable to the Financing Company than those contained in the Debt Commitment Letter. Parent and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, not agree to any amendments, supplements, replacements or permit any termination of or amendment, supplement or modification to be made modifications to, or grant any waiver of waivers of, any condition or other provision under, under the Financing Letters Debt Commitment Letter or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would without the prior written consent of the Company that (A) reduce reduces the aggregate amount of any portion of the Financing (including by increasing changing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below or similar fees) to an amount that is less than the amount required to pay the Required Amountby Section 4.07(b), or (BB)(1) impose imposes new or additional conditions precedent to the availability of the Financing Financing, or (2) otherwise expandadversely expands, amend amends or modify modifies any of the conditions precedent to the Financing Financing, or otherwise expands, amends or modifies any other provision of the Debt Commitment Letter, in the case of clauses (1) and (2), in a manner that would reasonably be expected to materially delay (I) delay, prevent or prevent impede the ability of Parent and Sub to consummate the Transactions, (II) make the timely funding of the Financing contemplated by the Debt Commitment Letter (or satisfaction of the conditions precedent to the Financing) on the Closing Date less likely to occur or (C3) adversely impact the ability of each of Parent or Merger Sub, as applicable, and Sub to enforce its rights against the other parties to the Financing Letters Debt Commitment Letter or the definitive agreements with respect thereto (provided that, without the consent of the Company, Parent and Sub may amend the Debt Commitment Letter (x) to add additional lenders, arrangers, bookrunners and agents in accordance with the Financingterms thereof (as in effect on the date thereof) or (y) to implement or exercise any of the “market flex” provisions (including pricing terms) contained in the fee letter executed in connection with the Debt Commitment Letter). Parent shall promptly deliver to the Company copies of any such amendment, modification, supplement, consent waiver or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereofreplacement. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 Parent and Sub shall require, and in no event shall the use their reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or maintain in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or effect the Debt Commitment Letter (including any market Definitive Debt Financing Agreements) until the Transactions are consummated. Neither Parent nor Sub shall release or consent to the termination of the obligations of the Lenders under the Debt Commitment Letter or the Definitive Debt Financing Agreements except that Parent and Sub may terminate the Debt Commitment Letter (and any Definitive Debt Financing Agreements) without the prior written consent of the Company upon the execution and effectiveness of the Replacement Financing or a definitive amendment to the Existing Credit Agreement that provides for such Replacement Financing, in each case, that meets the requirements of this Section 5.16(a). (b) If any portion of the Financing becomes unavailable on the terms and conditions (including any “flex” provisions provisions) contemplated in the Debt Commitment Letter (other than pursuant to a termination due to the incurrence of the Replacement Financing), Parent and Sub shall use their reasonable best efforts to, as promptly as practicable following the occurrence of such event but no later than the fifth (5th) Business Day immediately preceding the then scheduled expiration of the Offer, arrange and obtain from alternative sources of financing an amount sufficient to satisfy the Financing Uses, on terms and conditions (including any “flex” provisions) that are at least as favorable to the Company in the aggregate as those contained thereinin the Debt Commitment Letter, which shall not expand upon the conditions precedent or contingencies to the funding at the Acceptance Time of the Financing as set forth in the Debt Commitment Letter in effect on the date hereof or otherwise adversely affect the ability or likelihood of Parent and Sub to timely consummate the Transactions. The new debt commitment letter and fee letter entered into in connection with such alternative financing for any documentation entered into in connection with a Replacement Financing are referred to, respectively, as a “New Debt Commitment Letter” and a “New Fee Letter.” In the event Parent or Sub enter into any such New Debt Commitment Letter, (i) Parent and Sub shall promptly provide the Company with true, correct and complete copies thereof, (provided that the New Fee Letter may be redacted in the manner set forth in Section 4.07(a)), (ii) any reference in this Agreement to the “Financing” shall mean the debt financing contemplated by the Debt Commitment Letter as modified pursuant to clause (iii) below, and (iii) any reference in this Agreement to the “Debt Commitment Letter” (and any definition incorporating the term “Debt Commitment Letter,” including the definition of Definitive Debt Financing Agreements) shall be deemed to include the Debt Commitment Letter and any Fee Letter to the extent not superseded by a New Debt Commitment Letter or New Fee Letter, as the case may be, at the time in question and any New Debt Commitment Letter or New Fee Letter to the extent then in effect.

Appears in 1 contract

Sources: Merger Agreement (Great Lakes Dredge & Dock CORP)

Financing. (a) Each of Parent shall use, and Merger Sub shall use cause its Affiliates to use, reasonable best efforts to 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 subject only to the conditions (including the market “flex” provisions) set forth described in the Commitment Letters (or the Alternative Financing on the terms described in the Alternative Financing Commitment Letters, if applicable) as soon as reasonably practicable after the date of this Agreement, including using reasonable best efforts to (i) to maintain in full force and effect and comply with the Commitment Letters (or the Alternative Financing Commitment Letters, if applicable), (ii) to negotiate and enter into the definitive agreements (which, with respect to the bridge facility documentationFinancing contemplated by the Commitment Letters (or the Alternative Financing Commitment Letters, if applicable) (which terms shall not be required until determined by Parent in any respect expand on the conditions precedent to be reasonably likely to be necessary in connection with the funding on the Closing Date of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms thatthe Alternative Financing, with respect to conditionality, are not less favorable to Parent or Merger Sub than if applicable) (the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment LetterFinancing Agreements”)), (iii) to satisfy (or cause its Affiliates to satisfy) on a timely basis all conditions applicable to Parent and Merger Sub in its Subsidiaries to obtaining the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions Alternative Financing) set forth in the Equity Funding LetterCommitment Letters (or Alternative Financing Commitment Letters) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto)that are within their control, (iv) upon the satisfaction or waiver to take each of the conditions actions required of the Company and its Subsidiaries in Section 8.12(b) below with respect to Parent’s itself and Merger Sub’s obligations to consummate the Offer its Subsidiaries, and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) to fully enforce its rights under the Commitment Letters (or the Alternative Financing Letters Commitment Letters, if applicable) and Financing Agreements in the event of a breach by any Financing Sources that impedes or delays the Closing, including by seeking specific performance of the parties thereunder if necessary to cause the Financing Sources to fund the Financing or Alternative Financing, as applicable, required to consummate the Merger at the Closing; provided that solely with respect to this clause (v), (A) all conditions in Sections 2.01 and 2.02 (other than those conditions that by their nature are to be satisfied at the Closing) have been satisfied or waived, (B) the Company has irrevocably confirmed that (1) all conditions set forth in Section 2.03 have been satisfied or that it is willing to waive any of the conditions in Section 2.03 to the extent not so satisfied and (2) if specific performance is granted and the definitive agreements relating Financing is funded, then the Closing will occur and (C) all conditions to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under consummation of the Financing contemplated by the Commitment Letters (other than those conditions that by their nature cannot be satisfied until the Closing, but each of which shall be capable of being satisfied on the Closing (and shall be satisfied on the definitive agreements relating to the FinancingClosing Date)) have been satisfied and remain satisfied. Parent, Merger Sub and the Guarantors Parent shall not, without the prior written consent of the Company, agree to or not permit any termination of or amendment, modification or supplement or modification to be made to, or grant any waiver of of, any provision underor remedy under the Commitment Letters (or the Alternative Financing Commitment Letters, if applicable) and/or the Financing Letters Agreements, that (A) expands upon the conditions precedent to the funding on the Closing Date of the Financing (or Alternative Financing, as applicable) as set forth in such agreements, or (B) could prevent, 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 any Financing Commitment or the definitive agreements relating with respect thereto in its reasonable discretion; provided, that Parent shall not reduce a Financing to an amount committed below the amount that is required, together with the financial resources of Parent, including cash on hand, marketable securities and the proceeds of loans under existing credit facilities of Parent or its subsidiaries, to consummate the Merger and the other transactions contemplated by this Agreement, and provided further that such reduction shall not (I) expand upon the conditions precedent to any Financing if such terminationas set forth in the Commitment Letters or (II) prevent, amendment, supplement, modification impede or waiver would (A) reduce delay the aggregate amount consummation of the Merger and the other transactions contemplated by this Agreement. In the event that any portion of the Financing (including by increasing the amount becomes unavailable or Parent becomes aware of fees to be paid any event or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such circumstance that the aggregate amount makes any portion of the Financing would be below unavailable, in each case, on the amount required to pay terms and conditions set forth in the Required Amount, (B) impose new or additional conditions precedent to the availability of applicable Commitment Letters and/or the Financing Agreements, Parent shall promptly notify the Company, and Parent shall use its reasonable best efforts to obtain, as promptly as practicable following the occurrence of such event, any such portion from alternative sources (“Alternative Financing”) on terms that will still enable Parent to consummate the transactions contemplated by this Agreement and to obtain, and, when obtained, to provide the Company with a copy of, new financing commitments (including all exhibits, schedules, annexes and amendments to such agreement and excerpts of those portions of each fee letter and engagement letter associated therewith that contain any conditions to funding of “flex” provisions) that provide for such Alternative Financing (the “Alternative Financing Commitment Letters”). Parent shall refrain (and shall cause its Affiliates to refrain) from taking, directly or otherwise expandindirectly, amend or modify any of the conditions precedent to the Financing in a manner action that would reasonably be expected to materially delay or prevent the funding result in a failure of the Financing (or satisfaction any of the conditions precedent contained in any Commitment Letter, Alternative Financing Commitment Letter or Financing Agreement. Parent shall keep the Company reasonably informed on a current basis in reasonable detail of the status of its efforts to obtain any Financing or Alternative Financing, provide the FinancingCompany copies of all documents related to any Financing or Alternative Financing and give the Company prompt notice of any material breach or threatened breach by any party to any Financing Commitment or Alternative Financing of which Parent becomes aware or any termination of any Commitment Letter (or Alternative Financing Commitment, if applicable) on and/or the Closing Date Financing Agreements, and Parent shall give the Company prompt notice of any termination or threatened termination of the Commitment Letters (Cor Alternative Financing Commitment, if applicable) adversely impact and/or the ability of Financing Agreements. In the event that Parent or Merger Sub, as applicable, commences an enforcement action to enforce its rights against under the Commitment Letters (or Alternative Financing Commitment Letters, if applicable) or the Financing Agreements and/or cause the Lenders or other Financing Sources to fund the Financing or any Alternative Financing, Parent shall keep the Company reasonably informed of the status of such enforcement action and at the reasonable request of the Company shall make Parent’s officers, directors, employees, financial advisors, accountants and other advisors, representatives and agents reasonably available to discuss the status of, and material developments with respect to, such enforcement action. (b) The Company shall provide, shall cause its Subsidiaries to provide and shall use its reasonable best efforts to cause the Company’s officers, directors, employees, financial advisors, attorneys, accountants and other advisors, investment bankers, representatives and agents retained by the Company or any of the Company’s Subsidiaries, to provide such reasonable cooperation in connection with any Financing as may be reasonably requested by Parent or any provider of such Financing or any Alternative Financing, including, but not limited to, (i) participation in a reasonable number of meetings (including customary one-on-one meetings with the parties acting as lead arrangers for such Financing or any Alternative Financing and senior management and representatives, with appropriate seniority and expertise, of the Company), drafting sessions, presentations, road shows, due diligence sessions (including accounting due diligence sessions) and sessions with the rating agencies, (ii) providing Parent and its Financing Sources with financial and other pertinent information regarding the Company and the Company’s Subsidiaries (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 any Financing by Parent’s Financing Sources) as may be reasonably requested by Parent to consummate such Financing, (iii) assisting Parent and its Financing Sources in the preparation of documents and materials in connection with any Financing, including, but not limited to, (A) any offering documents, bank information memoranda, prospectuses and other informational and marketing materials and documents (including historical and pro forma financial statements and information) for any portion of any Financing and (B) materials for rating agency presentations, (iv) reasonably cooperating with the marketing efforts of Parent and its Financing Sources for any portion of any Financing (including consenting to the Financing Letters 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) reasonably facilitating the pledging of collateral and execution and delivery of definitive agreements with respect financing documents and customary deliverables, (vi) providing the consolidated balance sheet of the Company as of the end of the fiscal year ending December 31, 2010 and related consolidated statements of operations, cash flows and shareholders’ equity, accompanied by an unqualified report thereon of McGladrey, and an unaudited balance sheet and related statements of operations and cash flows of the Company for each fiscal quarter ending more than 45 days prior to the FinancingClosing Date and for the elapsed period of the 2011 fiscal year and for the comparable periods of the prior fiscal year, (vii) using its reasonable best efforts, as appropriate, to have its independent accountants provide their reasonable cooperation and assistance, and (viii) cooperating reasonably with Parent’s Financing Sources’ due diligence, to the extent customary and reasonable and to the extent not unreasonably interfering with the business of the Company; provided, further, that none of the Company or any of its Subsidiaries shall be required to pay any commitment or other fee, provide any security or incur any other liability in connection with any Financing or Alterative Financing prior to the Effective Time; and provided, further, that such requested cooperation does not unreasonably interfere with the ongoing operations of the Company and its Subsidiaries. Parent shall, promptly upon request by the Company, reimburse the Company for all reasonable and documented out-of-pocket costs incurred by the Company or any of its Subsidiaries, representatives or agents in connection with such cooperation. Parent shall promptly deliver to indemnify and hold harmless the Company copies and its Subsidiaries and their representatives and agents from and against any and all losses or damages suffered or incurred by them in connection with the arrangement of any amendment, modification, supplement, consent Financing or waiver to Alternative Financing and any information utilized in connection therewith (except for Losses or under damages suffered or incurred solely as a result of information provided by the Company or any Financing Letter of its Subsidiaries). All non-public or otherwise confidential information regarding the Company obtained by Parent or the definitive agreements relating Parent Representatives pursuant to this Section shall be kept confidential in accordance with the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Confidentiality Agreement, nothing contained in this Section 5.04 shall require, except that Parent and in no event shall the reasonable best efforts of Parent or Merger Sub shall be deemed or construed permitted to requiredisclose such information to potential syndicate members during syndication, either Parent or Merger Sub subject to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated customary confidentiality undertakings by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)such potential syndicate members.

Appears in 1 contract

Sources: Merger Agreement (Polyone Corp)

Financing. (a) Each of Parent and Merger Sub shall use reasonable best efforts to take, or cause to be taken, all reasonable actions and to do, or cause to be done, all reasonable things necessary, proper or advisable to arrange, obtain and consummate and obtain the Debt Financing on the terms and subject only to the conditions (including the “market “flex” provisions) set forth in the Financing LettersDebt Commitment Letter as promptly as practicable after the date hereof, including using reasonable best efforts to (i) maintain in effect and comply with the Financing LettersDebt Commitment Letter, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the “market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms thatas consented to by the Company, with respect such consent not to conditionalitybe unreasonably withheld, are delayed or conditioned), in each case, which shall not less favorable expand on the conditions to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in funding of the Debt Commitment Letter)Financing at the Closing, reduce the aggregate amount of the Debt Financing available to be funded at the Closing, impair the validity of the Debt Financing or prevent, impede or delay the consummation of the Debt Financing on the Closing Date, (iii) satisfy on a timely basis (or obtain the waiver of) all conditions and covenants applicable to Parent and Merger Sub in the Financing Letters Debt Commitment Letter and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the MergerClosing, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Debt Financing at the Closing, (v) enforce its rights under the Financing Letters Debt Commitment Letter and the definitive agreements relating to the Debt Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters Debt Commitment Letter and the definitive agreements relating to the Debt Financing. Parent, . (b) Parent and Merger Sub and the Guarantors shall not, without the prior written consent of the CompanyCompany (such consent not to be unreasonably withheld, delayed or conditioned), agree to or permit (i) any termination termination, repudiation, rescission, cancellation, expiration of or amendment, restatement, replacement, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters Debt Commitment Letter or the definitive agreements relating to the Financing if such terminationDebt Financing, amendment, supplement, modification or (ii) any waiver would (A) reduce the aggregate amount of any portion provision or remedy under the Debt Commitment Letter or (iii) the early termination of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the FinancingCommitment Letter. Parent shall promptly deliver to the Company copies of any amendment, restatement, replacement, modification, supplement, consent or waiver to or under any Financing the Debt Commitment Letter or the definitive agreements relating to the Debt Financing promptly upon execution thereof. Notwithstanding anything Parent and Merger Sub shall use their reasonable best efforts to maintain the effectiveness of the Debt Commitment Letter until the Transactions are consummated. Any breach of the Debt Commitment Letter by Parent or Merger Sub (excluding any breach caused by a breach or violation by the Company of its representations, warranties, covenants or agreements contained in this Agreement that would give Parent the right to terminate its or the Company’s obligations under the Merger Agreement to consummate the Closing (or otherwise not consummate the Closing) as a result of such breach) shall be deemed a breach by Parent and Merger Sub of this Agreement. (c) Parent shall keep the Company reasonably informed on a prompt basis and in reasonable detail of the negotiation and status of its efforts to arrange the Debt Financing and provide to the contrary Company drafts of the definitive documentation for the Debt Financing (and, to the extent reasonably practicable, provide the Company the opportunity to review and comment on drafts in advance of providing such drafts to the Debt Financing Sources and to reasonably incorporate comments provided by the Company (or its counsel) in such drafts) and thereafter complete, correct and executed copies of the material definitive documents for the Debt Financing. Parent and Merger Sub shall give the Company prompt notice of (i) any actual, threatened or alleged breach, default, termination, cancellation, rescission, expiration or repudiation by any party to the Debt Commitment Letter or definitive documents related to the Debt Financing which becomes known to Parent or Merger Sub, (ii) the receipt by Parent or Merger Sub of any written notice or other written communication from any Debt Financing Source with respect to any (A) actual, threatened or alleged breach, default, termination, cancellation, rescission, expiration or repudiation by any party to the Debt Commitment Letter or any definitive document related to the Debt Financing of any provisions of the Debt Commitment Letter or any definitive document related to the Debt Financing (including any proposal by any Debt Financing Source or other Person to withdraw, terminate or make a material adverse change in the terms of (including the amount of Debt Financing contemplated by) the Debt Commitment Letter), or (B) dispute or disagreement between Parent, Merger Sub and any Debt Financing Source or among any parties to the Debt Commitment Letter or any definitive document related to the Debt Financing, in each case regarding the Debt Financing and (iii) the occurrence of an event or development that could reasonably be expected to adversely impact the ability of Parent or Merger Sub to obtain all or any portion of the Debt Financing on the terms and in the manner contemplated by the Debt Commitment Letter; provided, that no such notification shall affect any of the representations, warranties, covenants, rights or remedies of, or the conditions to the obligation of, the Parties hereunder. As soon as reasonably practicable, but in any event within three (3) Business Days of the date the Company delivers to Parent or Merger Sub a written request, Parent and Merger Sub shall provide any information reasonably requested by the Company relating to any circumstance referred to in the immediately preceding sentence. (d) If any portion of the Debt Financing becomes unavailable on the terms and conditions (including any applicable “market flex” provisions) contemplated by the Debt Commitment Letter, Parent shall promptly notify the Company in writing, and Parent and Merger Sub shall use their reasonable best efforts to do all things necessary, proper or advisable to arrange and obtain, as promptly as reasonably practicable, in replacement thereof alternative financing (the “Alternative Financing”) from alternative sources in an amount at least equal in the aggregate to the aggregate amount of the Debt Financing contemplated by the Debt Commitment Letter with terms and conditions (including “market flex” provisions) as consented to by the Parties, and Parent and Merger Sub shall deliver to the Company true, correct and complete copies of the alternative debt commitment letters (including fee letters) pursuant to which any such alternative financing source shall have committed to provide any portion of the alternative Debt Financing; provided, that, any such alternative debt commitment letter will not (i) without the prior written consent of the Company (not to be unreasonably withheld, delayed or conditioned), involve any conditions to funding of the Debt Financing that are not contained in the Debt Commitment Letter or (ii) reasonably be expected to prevent, impede or materially delay the consummation of the Transactions. For purposes of this Agreement, nothing contained other than with respect to representations in this Agreement made by Parent and Merger Sub that speak as of the date hereof, references to (x) the “Debt Financing” shall include the financing contemplated by the Debt Commitment Letter as permitted to be amended, modified, supplemented or replaced by this Section 5.04 5.16, (y) references to the “Debt Commitment Letter” shall requireinclude such documents as permitted to be amended, modified, supplemented or replaced by this Section 5.16 and (z) references to “Debt Financing” shall include the debt financing contemplated by the Debt Commitment Letter as permitted to be amended, modified, supplemented or replaced by this Section 5.16. (e) Prior to the Closing Date, the Company shall use its reasonable best efforts to, and to cause its Subsidiaries to use reasonable best efforts to, provide to Parent and Merger Sub such reasonable cooperation as is customary and necessary for financings of this type and reasonably requested by Parent in connection with the arrangement of the Debt Financing (including any Alternative Financing) and any Additional Equity Financing (in accordance with the terms of Section 5.16(k), if applicable), including: (i) in each case, at the Company’s sole cost and expense (provided, that, for the avoidance of doubt, such efforts shall only include efforts by the Company and its Subsidiaries, and in no event shall the reasonable best efforts of Parent or Company be obligated to make any payment to Parent, Merger Sub or any third party in connection with such efforts): (A) furnishing Parent with the Required Information (provided, that in no event shall the Required Information be deemed to include or construed shall the Company otherwise be required to requireprovide: (I) any post-Closing or pro forma financial statements; (II) any information regarding any post-Closing or pro forma cost savings, either synergies, capitalization, ownership or other post-Closing pro forma adjustments desired to be incorporated into any information used in connection with the Debt Financing or any Additional Equity Financing (in accordance with the terms of Section 5.16(k)); or (III) any other financial statements not explicitly included within the definition of Required Information; (B) upon reasonable advance notice, assisting in preparation for and participating in a reasonable number of lender or investor meetings (including a reasonable 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 or investors in, the Debt Financing or any Additional Equity Financing (in accordance with the terms of Section 5.16(k))), presentations and sessions with rating agencies in connection with the Debt Financing at reasonable times and locations mutually agreed, and assisting Parent in obtaining ratings in connection with the Debt Financing; (C) assisting Parent with the preparation by Parent and the Debt Financing Sources of materials for rating agency presentations, bank information memoranda and similar marketing documents required in connection with the Debt Financing; (D) executing and delivering as of (but not prior to), and subject to the effectiveness of, the Closing any pledge and security documents, other definitive financing documents or Merger Sub other certificates or documents as may be reasonably requested by Parent, and otherwise reasonably facilitating the pledging of collateral in connection with the Debt Financing; and (E) providing all documentation and other information about the Company and its Subsidiaries as is reasonably required under applicable “know your customer” and anti-money laundering rules and regulations, including the USA PATRIOT Act, to the extent reasonably requested in writing by Parent at least five (5) Business Days in advance of the Closing; (F) providing the projections that have been provided prior to the date hereof in the Investor Presentation, dated January 2019, that has been provided to Parent prior to the date hereof; and (ii) in each case, at Parent’s sole cost and expense, any other reasonable cooperation as is customary and necessary for financings of this type and reasonably requested by Parent in connection with the arrangement of the Debt Financing (including any Alternative Financing) and, if applicable, any Additional Equity Financing (in accordance with the terms of Section 5.16(k)). (f) Notwithstanding anything to the contrary herein, (i) seek all such requested cooperation provided in accordance with this Section 5.16 shall not unreasonably interfere with the Equity Financing from normal business or operations of the Company and its Subsidiaries, (ii) nothing in this Section 5.16 shall require cooperation of the Company or any source of its Subsidiaries to the extent it would (A) subject the Company or any of its Subsidiaries (or any of their respective directors, officers, managers or employees) to bear any expense (other than (x) as expressly provided in Section 5.16(e)(i), (y) as reimbursed by Parent pursuant to Section 5.16(g) below or (z) Excluded Financing Expenses), pay any commitment or other fee, enter into any definitive agreement, incur any other Liability, make any other payment or agree to provide any indemnity in connection with the counterparties toDebt Financing or any Additional Equity Financing, in either case, prior to the Effective Time, (B) reasonably be expected to conflict with or violate the Company’s Organizational Documents or any Law or result in, prior to the Effective Time, the contravention of, or that would reasonably be expected to result in, prior to the Effective Time, a violation or breach of, or default under, any Material Contract, (C) cause any of the conditions to the Closing set forth in any amount in excess of that contemplated by, the Equity Funding LetterARTICLE VII to not be satisfied, or (iiD) pay cause a breach of this Agreement, (iii) neither the Company nor any material fees of its Subsidiaries shall be required to be an issuer or obligor with respect to the Debt Financing (except for the Surviving Company and the Acquired Companies from and after the Closing) and (iv) Parent, Merger Sub and the Company agree to use their reasonable efforts to maintain attorney-client privilege or other applicable legal privilege with respect to the information provided in excess connection with such cooperation. For the avoidance of those doubt, none of the Company or any of its Subsidiaries or their respective officers, directors, managers or employees shall be required to execute or enter into or perform any agreement with respect to the financing contemplated by the Equity Funding Letter or the Debt Commitment Letter or the Additional Equity Financing, in any case, that is not contingent upon the Closing or that would be effective prior to the Closing. No managers of the Company that will not be continuing directors on the Post-Closing Surviving Pubco Board, acting in such capacity, shall be required to execute or enter into or perform any agreement with respect to the Debt Financing or any Additional Equity Financing. (including g) Parent shall promptly, upon request by the Company, reimburse the Company for all out-of-pocket costs and expenses incurred pursuant to Section 5.16(e)(ii) by the Company or any market of its Subsidiaries or their respective Representatives, but in any event excluding any fees and expenses of ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP (or other counsel to the Company for the Debt Financing or any Additional Equity Financing) or Credit Suisse Securities (USA) LLC (or other financial advisor to the Company with respect to the Debt Financing or any Additional Equity Financing) (the “flex” provisions contained thereinExcluded Financing Expenses”). (h) The Company hereby consents to the use of its logos solely in connection with the Debt Financing (and any Additional Equity Financing (in accordance with the terms of Section 5.16(k))); provided, that Parent and Merger Sub shall use their reasonable best efforts to ensure that such logos are used solely in a manner that is not intended to or reasonably expected to harm or disparage the Company or the Company’s reputation or goodwill and will comply with the Company’s usage requirements to the extent made available to Parent prior to the date of this Agreement.

Appears in 1 contract

Sources: Merger Agreement (Thunder Bridge Acquisition LTD)

Financing. (a) Each of Parent Prior to Closing, Seller shall cause the Acquired Company and Merger Sub its Subsidiaries to provide, and shall use its commercially reasonable best efforts to takecause their respective Affiliates, officers, directors, employees, stockholders, agents and representatives to provide, all cooperation reasonably requested by Purchaser in connection with the arrangement of the Financing (provided, that such requested cooperation does not unreasonably interfere with the ongoing operations of Seller, the Acquired Company or cause any of their respective subsidiaries), including (i) participating in a reasonable number of meetings, presentations, road shows, due diligence sessions and sessions with rating agencies, (ii) using commercially reasonable best efforts to facilitate the pledging of collateral, (iii) provide reasonable assistance with the preparation by Purchaser of customary materials for bank information memoranda and similar customary marketing documents required to be takendelivered in connection with arranging the Financing, all actions and to do, or cause to (iv) furnishing Purchaser and its financing sources as promptly as reasonably practicable with such financial and other pertinent information regarding the Acquired Company and its Subsidiaries as may be done, all things necessary, proper or advisable to consummate and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Financing Lettersreasonably requested by Purchaser, including using commercially reasonable efforts to, to the extent requested by Purchaser, at least two (2) Business Days prior to the Closing, provide customary and reasonably required "know-your customer" information. The foregoing notwithstanding, (x) no person who is a director of the Acquired Company or any its Subsidiaries at any time prior to the Closing (a “Pre-Closing Director”) shall be required to take any action with respect to the foregoing and neither the Acquired Company nor any of its Subsidiaries shall be obligated to take any action that requires action or approval by any Pre-Closing Director, (y) no obligation of the Acquired Company or any of its Subsidiaries or any of their respective Affiliates, officers, directors, employees, stockholders, agents and representatives undertaken pursuant to the foregoing shall be effective until after the Closing, and (z) none of the Acquired Company or any of its Subsidiaries or any of their respective Affiliates, officers, directors, employees, stockholders, agents and representatives shall be required to pay any commitment or other similar fee or incur any other cost or expense that is not simultaneously reimbursed by Purchaser in connection with the Financing prior to the Closing. Purchaser shall, promptly upon request by Seller, reimburse Seller, the Acquired Company, their respective subsidiaries and their respective Affiliates, officers, directors, employees, stockholders, agents and representatives for all reasonable and documented out-of-pocket costs incurred thereby in connection with such cooperation and shall indemnify and hold harmless Seller, the Acquired Company, their respective subsidiaries and their respective Affiliates, officers, directors, employees, stockholders, agents and representatives for and against any and all losses suffered or incurred by them in connection with the arrangement of the Financing and any information utilized in connection therewith, except in cases of fraud, gross negligence or willful misconduct by Seller. All nonpublic or otherwise confidential information regarding Seller, the Acquired Company, their respective subsidiaries and their respective Affiliates obtained by Purchaser or its Affiliates, officers, directors, employees, stockholders, agents and representatives pursuant to this Section 6.1(a) shall be kept confidential. (b) Purchaser shall use its, and shall cause its Affiliates to use their, best efforts to arrange the Financing as promptly as practicable (but no later than the earlier the Closing Date), including using best efforts to (i) maintain in effect negotiate and comply finalize definitive agreements with respect thereto (the “Financing LettersDocuments”), (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent Purchaser (or its Affiliates) in such Financing Documents, (iii) comply with its and Merger Sub in their obligations under any Financing Documents and consummate the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to no later than the Closing on the terms Date, and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) upon enforce its and their rights under the satisfaction or waiver of Financing Documents. In the event that all conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and Documents have been satisfied in Purchaser’s good faith judgment, Purchaser shall use its best efforts to cause the lenders and the other Persons committing to fund the persons providing such Financing to fund the Financing at required to consummate the ClosingShare Purchase upon the terms set forth herein on or prior to the Closing Date (including by taking enforcement action to cause such lenders and other persons providing such Financing to fund such Financing). Without limiting the generality of the foregoing, Purchaser shall give Seller prompt written notice (vx) enforce its rights under the Financing Letters and the definitive agreements relating of any breach or default by any party to the Financing Documents or, after the occurrence of the Contingency Termination Event, the Commitments of which Purchaser becomes aware and (viy) otherwise comply of the receipt by Purchaser of any notice or other communication from any Financing source with Parent’s and Merger Sub’s covenants and other obligations under respect to any (I) breach, default, termination or repudiation by any party to the Financing Letters Documents of any provisions of the Financing Documents or, after the occurrence of the Contingency Termination Event, to the Commitments of any provision of the Commitments or (II) material dispute or disagreement between the parties to the Financing Documents or, after the occurrence of the Contingency Termination Event, the Commitments. As soon as reasonably practicable, but in any event within two (2) days of the date Seller delivers Purchaser a written request (which shall include a request by electronic mail), Purchaser shall provide any information reasonably requested by Seller relating to any circumstance referred to in clause (x) or (y) of the immediately preceding sentence and any information relating to Purchaser’s negotiation, execution and performance of the Financing Documents and the status of the Financing. In the event any portion of the Financing becomes unavailable on the terms and conditions contemplated in the Financing Documents or, after the occurrence of the Contingency Termination Event, the Commitments, Purchaser shall promptly notify Seller and shall use its best efforts to arrange to obtain alternative financing from alternative sources on terms that will still enable Purchaser to consummate the Share Purchase upon the terms set forth herein as promptly as practicable following the occurrence of such event, but no later than the Closing Date. Purchaser shall deliver to Seller true and complete copies of all agreements pursuant to which any such alternative source shall have committed to provide Purchaser with any portion of the Financing. Purchaser shall refrain (and shall use its best efforts to cause its Affiliates to refrain) from taking, directly or indirectly, any action that would reasonably be expected to result in a failure of any of the conditions contained in the Financing Documents or in any definitive agreement related to the Financing, or, after the occurrence of the Contingency Termination Event, the Commitments. Purchaser shall not agree to or permit any amendment, supplement or other modification of, or waive any of its rights under, any Financing Documents or the definitive agreements relating to the Financing. Parent, Merger Sub and or, after the Guarantors shall notoccurrence of the Contingency Termination Event, the Commitments, without the first obtaining Seller’s prior written consent consent. Purchaser shall keep Seller reasonably apprised of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements material developments relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to the Financing in a manner that would reasonably be expected to materially delay or prevent the funding of the Financing (or satisfaction of the conditions to the Financing) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein)...

Appears in 1 contract

Sources: Share Purchase Agreement (Sphere 3D Corp)

Financing. (a) Each Subject to the terms and conditions of Parent and Merger Sub this Agreement, the Buyer shall use reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to consummate arrange and obtain the Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitment Letter and Fee Letters (or as may be amended or otherwise modified either with the prior written consent of the Principal Seller or as permitted pursuant to this Section 6.11), including using reasonable best efforts to (i) maintain in effect and comply with the Financing Letters, (ii) to negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing“Definitive Agreements”) with respect to the Debt Financing on the terms and subject only to the conditions contained in the Commitment Letter and Fee Letters (including or as may be amended or otherwise modified either with the market “flex” provisionsprior written consent of the Principal Seller or as permitted pursuant to this Section 6.11), (ii) to satisfy (or obtain the waiver of) all conditions to obtaining the Financing applicable to the Buyer set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing Definitive Agreements that are within its reasonable control at or prior to the Closing, (iii) to comply in all material respects with its obligations under the Commitment Letter (or obtain the waiver of such obligations), (iv) to consummate the Financing contemplated by the Commitment Letter at or prior to the Closing, including, in the event that all conditions in the Commitment Letter have been satisfied or, upon funding will be satisfied, by using reasonable best efforts to cause the Lenders to fund the full amount of the Financing (including by taking enforcement action to cause such Lenders to fund the Financing) at the Closing and (v) to otherwise enforce its rights under the Commitment Letter. (b) The Buyer shall give the Principal Seller prompt notice upon becoming aware of any material breach of any Commitment Letter by a party to such Commitment Letter or any termination of the Commitment Letter. The Buyer shall use reasonable best efforts to keep the Principal Seller informed on a reasonably current basis and in reasonable detail of the status of its efforts to arrange the Financing and any material developments relating to the Financing and shall provide to the Principal Seller, upon reasonable request, copies of the Definitive Agreements; provided that the Buyer may redact the amount of any fee in any Fee Letter and subject to any confidentiality limitation applicable to the Buyer. Further, the Buyer shall not agree to or permit any amendment, supplement or other modification of, or waive any of its rights under, any Commitment Letter or any Definitive Agreement without the Principal Seller’s prior written consent, except that the Buyer may amend, supplement or modify the Commitment Letter if such amendment, supplement or modification (i) does not reduce the aggregate amount of the Financing set forth in the Commitment Letter, (ii) does not contain additional or modified conditions or other contingencies to the funding of the Financing in a manner that would be reasonably expected to make it materially less likely that the Financing would be funded than those contained in the Commitment Letter and (iii) is otherwise not reasonably likely to delay or prevent the Closing; provided, however, that the Buyer shall promptly notify the Principal Seller in writing of any such amendment, supplement or other modification of, or waiver of any of its rights under, any Commitment Letter or any Definitive Agreement. (c) If any portion of the Financing becomes unavailable on the terms and conditions contemplated in the Commitment Letter, and such cash portion is required to fund any portion of the Closing Cash Purchase Price or any fees, expenses and other amounts contemplated to be paid by the Buyer pursuant to this Agreement, the Buyer shall notify the Principal Seller, and the Buyer shall use its reasonable best efforts to obtain, as promptly as practicable following the occurrence of such event, replacement commitments (other than amounts that are replaced by the Buyer’s cash on hand) from alternate sources (such portion from alternate sources, the “Alternate Financing”) on terms and conditions that will enable the Buyer to consummate the transactions contemplated by the Transaction Documents; provided that such Alternate Financing shall not (i) be subject to any additional or modified conditions or other contingencies to the funding of the Financing than those contained in the Commitment Letter in a manner that would be reasonably expected to make it materially less likely that the Alternate Financing would be funded or (ii) otherwise be reasonably likely to delay or prevent the Closing. The Buyer shall deliver to the Principal Seller complete and correct copies of all material amendments, supplements, other modifications or agreements pursuant to which any Alternate Financing shall be made available to the Buyer. (d) Prior to the Closing, the Company and the Seller Parties shall provide, and shall use their commercially reasonable efforts to cause their respective representatives, including legal and accounting representatives, to provide, at the Buyer’s expense (subject to the reimbursement provisions below), in connection with the arrangement of the Financing, all reasonable cooperation requested by the Buyer that is customary or necessary in connection with the arrangement of debt financing for transactions that are substantially similar to the transactions contemplated by the Transaction Documents (provided that such requested cooperation does not (i) unreasonably interfere with the ongoing operations of the Seller Parties or the Company and its Subsidiaries, (ii) cause any representation, warranty, covenant or other term in this Agreement to be breached or (iii) cause any closing condition not to be satisfied), including (A) participation in a reasonable number of informational meetings in connection with the Financing, it being understood and agreed that information and documents provided by the Company and the Principal Seller or any other Seller Party may be delivered to agents and lenders under the Commitment Letter and their representatives (subject to customary arrangements for confidentiality that are substantially similar to the provisions in the Confidentiality Agreement, including the Buyer providing prior written notice of disclosure to the Company and the Principal Seller); (B) assisting in the preparation of, and executing and delivering, definitive financing documents, including guarantee and collateral documents, hedging agreements and other certificates and the Definitive Agreements and other documents as may be requested by the Buyer (including a certificate of the chief financial officer of the Company with respect to solvency matters); (C) facilitating the pledging of collateral for the Financing, including taking commercially reasonable actions necessary to permit the Financing Sources of the Financing to evaluate the Real Property and titled vehicles and current assets, cash management and accounting systems, policies and procedures for the purpose of establishing collateral arrangements and establishing, as of the Closing, bank and other accounts and blocked account agreements and lockbox arrangements in connection with the Financing; (D) using commercially reasonable efforts to obtain such consents, waivers, estoppels, approvals, authorizations and instruments which may be reasonably requested by the Buyer in connection with the Financing and collateral arrangements, including Payoff Letters, lien releases, instruments of termination or discharge, legal opinions, appraisals, engineering reports, surveys, title insurance, landlord consents, waivers and access agreements; (E) furnishing the Buyer with all documentation and other information related to the Seller Parties and the Company and its Subsidiaries required by any Governmental Authority under applicable “know your customer” and anti-money laundering rules and regulations, including, without limitation, the PATRIOT Act; and (F) facilitating the consummation of the Financing, including cooperating with the Buyer to satisfy the conditions precedent to the Financing to the extent within the control of the Company or its Subsidiaries, and taking all corporate actions, subject to the occurrence of the Closing, reasonably requested by the Buyer to permit the consummation of the Financing and to permit the proceeds thereof to be made available to the Buyer on the Closing Date; provided that none of the Company, the Seller Parties or any of their respective Affiliates shall be required to pay any commitment or other fee or incur any other liability or obligation in connection with the Financing (other than the obligations set forth in this Agreement) or to take any action that would be prohibited by any applicable Law or cause a default of, or breach under, or otherwise violate any Contract; provided, further, that nothing in this Section 6.11 shall be construed as requiring the Company or the Seller Parties to provide financial information other than the financial information described in this Section 6.11. The Buyer shall promptly, upon request by the Company or the Principal Seller, reimburse the Company or the Seller Parties (as applicable) for reasonable and documented out-of-pocket costs and expenses (including reasonable attorneys’ fees) incurred in good faith by the Company or the Seller Parties or any of their respective Affiliates in connection with the cooperation of the Company or the Seller Parties and their respective Affiliates contemplated by this Section 6.11 and shall indemnify and hold harmless the Company and the Seller Parties and their respective Affiliates and their respective directors, officers, employees and representatives from and against any and all Losses suffered or incurred by any of them in connection with the arrangement of the Financing and any information used in connection therewith, except with respect to any information prepared or provided by the Company or any of the Seller Parties or any of their respective representatives or to the extent such Losses result from the gross negligence or willful misconduct of the Company or any of the Seller Parties. 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 to or reasonably likely to harm or disparage the Company or the reputation or goodwill of the Company. (e) For the avoidance of doubt and notwithstanding anything to the contrary in this Section 6.11, the Buyer acknowledges and agrees that its obligation to consummate the transactions contemplated by the Transaction Documents on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent herein and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (iv) therein are not conditioned upon the satisfaction availability or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability consummation of the Financing or otherwise expand, amend or modify any receipt of the conditions precedent proceeds therefrom. For purposes of this Section 6.11(e) the term “Financing” shall also be deemed to include any Alternate Financing and the Financing in a manner that would reasonably term “Commitment Letter” shall also be expected deemed to materially delay or prevent the funding of the Financing include any commitment letter (or satisfaction of the conditions to the Financingsimilar agreement) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the such Alternate Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained therein).

Appears in 1 contract

Sources: Purchase Agreement (Keane Group, Inc.)

Financing. (a) Each of Parent and Merger Sub and Parent shall use their respective reasonable best efforts to take, or cause to be taken, all actions and to do, or cause to be done, all things necessary, proper or advisable to arrange, consummate and obtain the proceeds of the Financing on the terms and subject only conditions no less favorable to the conditions (including the market “flex” provisions) set forth Merger Sub and Parent than those described in the Financing LettersDocuments (as may be amended or modified in accordance with this Agreement) (and taking into account “market flex” provisions contemplated by the Debt Financing Documents), including using their respective reasonable best efforts to: (i) satisfy, or use reasonable best efforts to (i) maintain in effect cause their Representatives to satisfy, on a timely basis, all conditions applicable to, and comply with within the Financing Letterscontrol of, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub or their respective Representatives in the Financing Letters Documents and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related thereto), (ivii) upon the satisfaction or waiver of the conditions thereto and to Parent’s and Merger Sub’s obligations obligation to consummate the Offer and the Merger, consummate the Debt Financing and the Equity Financing at the Closing, and cause the lenders who are party to the Debt Financing Documents and the Equity Investor who is party to the Equity Commitment Letter, and any other Persons committing to fund the Financing Person providing Financing, to fund the Financing at the Closing, . (vb) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors Parent shall not, without the prior written consent of the CompanyCompany (not to be unreasonably withheld, delayed or conditioned): (i) agree to any amendments or permit any termination of or amendment, supplement or modification to be made modifications to, or grant any waiver of waivers of, any condition or other provision under, or remedy under the Financing Letters or the definitive agreements relating Documents, to the Financing if extent such terminationamendments, amendment, supplement, modification modifications or waiver waivers would (A) reduce the aggregate amount of any portion of cash proceeds available from the Financing (including by increasing to an amount that is less than the amount of fees necessary to fund the amounts required to be paid by Merger Sub or original issue discount Parent under this Agreement (as compared to the fees and original issue discount amount of such aggregate proceeds contemplated by under the Financing Letters Documents as in effect on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amounthereof); (ii) such that the aggregate amount of the Financing would be below the amount required agree to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent to funding of the Financing as provided in a manner that would reasonably the Financing Documents, other than conditions which are likely to be expected to materially satisfied and which do not (A) prevent or delay or prevent the funding of the Financing or (B) make the timely funding of the Financing or satisfaction of the conditions precedent to obtaining the Financing (taking into account the expected timing of the Marketing Period) less likely to occur and (iii) release or consent to the Financing) on termination of the Closing Date or (C) adversely impact obligations of lenders, the ability of Parent or Merger Sub, as applicable, to enforce its rights against Equity Investor and other parties to Persons under the Financing Letters or Documents, except for (A) assignments and replacements of an individual lender in accordance with the definitive agreements terms of the syndication provisions of the Debt Financing Documents with respect to the Debt Financing. Parent shall promptly deliver , or in accordance with the terms of the Equity Commitment Letter or Section 6.13(d) with respect to the Company copies of Equity Financing or (B) in connection with any amendment, modification, supplementwaiver or replacement thereof otherwise permitted hereby. For clarity, consent the foregoing shall not prohibit Merger Sub and Parent from amending the Debt Financing Documents to add or waiver replace lender(s), lead arrangers, bookrunners, syndication agents or similar entities and their respective affiliates as parties thereto or in any other manner consistent with this Agreement as a party thereto, or to exercise any “market flex” provisions contemplated by the Debt Financing Documents. (c) In no event shall Merger Sub or under Parent prohibit or seek to prohibit any Financing Letter bank or investment bank or other potential provider of debt or equity financing, from providing or seeking to provide financing or financial advisory services to any Person in connection with a transaction relating to the Company or the Company Subsidiaries that is unrelated to the Merger or the Transactions. (d) In the event that any portion of the Debt Financing becomes unavailable in the manner or from the sources contemplated in the Debt Financing Documents (other than as a result of the Company’s breach of any representation, warranty, covenant or agreement set forth in this Agreement), (i) Parent shall promptly so notify the Company and (ii) Merger Sub and Parent shall use their respective reasonable best efforts to arrange and obtain, and to negotiate and enter into definitive agreements with respect to, alternative debt financing from the same or alternative financial institutions in an amount sufficient to consummate the Transactions (or replace any unavailable portion of the Financing necessary to consummate the Transactions) on terms and conditions that are not materially less favorable, in the aggregate, to Merger Sub and Parent than those in the Financing Documents that such alternative debt financing would replace (taking into account any “market flex” provisions), as promptly as practicable following the occurrence of such event. In the event any alternative debt financing is obtained in accordance herewith, (A) any reference in this Agreement to the “Financing,” the “Equity Financing” or the “Debt Financing” shall mean the financing contemplated by the Financing Documents as permitted to be modified pursuant to this Section 6.13 and (B) any reference in this Agreement to the “Financing Documents” shall be deemed to include the Financing Documents that have not been superseded by a new Financing Document(s) at the time in question and such new Financing Document(s) to the extent then in effect. (e) Parent shall (i) give the Company prompt notice of (A) any breach or threatened breach (in writing) of which either Merger Sub or Parent is or becomes aware by any party of any of the Financing Documents, any alternative debt financing commitment or any definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary thereto, or any termination or threatened (in this Agreement, nothing contained writing) termination thereof and (B) any alternative debt financing agreement entered into in accordance with this Section 5.04 shall require, 6.13 and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, the Equity Funding Letter, or (ii) pay keep the Company reasonably informed in a timely manner of the status of its efforts to arrange the Financing (or any material fees in excess of those contemplated by the Equity Funding Letter or the Debt Commitment Letter (including any market “flex” provisions contained thereinalternative debt financing under this Section 6.13).

Appears in 1 contract

Sources: Merger Agreement (Central European Media Enterprises LTD)

Financing. (a) Each Subject to the terms and conditions of this Agreement, each of Cable Buyer, Metro Parent and Merger Sub shall, and shall cause each of its affiliates to, use its reasonable best efforts to 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 Metro Equity Financing and the Metro Debt Financing (together, the “Metro Financing”) and the Cable Equity Financing and the Cable Debt Financing (together, the “Cable Financing”), as applicable, on the terms and subject only to the conditions (including the market “flex” provisions) set forth described in the Financing LettersCommitments, including using its reasonable best efforts to (i) comply with its obligations under the applicable Financing Commitments, (ii) maintain in effect and comply with the applicable Financing LettersCommitments, (iiiii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary in connection with the funding of the Debt Financing) with respect to the Debt applicable Financing Commitments on the terms and subject only to the conditions (including the market “flex” provisions) set forth not materially less favorable, in the Debt Commitment Letter (or on other terms thataggregate and taken as a whole, with respect to conditionalityCable Buyer, are not less favorable to Metro Parent or and Merger Sub than the terms and conditions (including market “flex” provisions) set forth those contained in the Debt Commitment Letter)applicable Financing Commitments, (iiiiv) satisfy on a timely basis all conditions applicable to Cable Buyer, Metro Parent and Merger Sub contained in the applicable Financing Letters and the Commitments (or any definitive agreements related thereto thereto) within their control, including the payment of any commitment, engagement or placement fees required as a condition to the Metro Financing and the Cable Financing, as applicable, and (including v) upon satisfaction of such conditions, and the conditions set forth in Section 6.1 and Section 6.3 (other than those conditions that by consummating their nature are to be satisfied at the Equity Closing, but subject to the satisfaction or waiver of such conditions), enforce all of its rights under the applicable Financing Commitments (or any definitive agreements related thereto) and consummate the applicable Financing at or prior to the Closing on Date, but in no event later than the terms and subject End Date (it being understood that it is not a condition to Closing under this Agreement, nor to the conditions consummation of the Cable Transfer or the Merger, for Cable Buyer, Metro Parent or Merger Sub to obtain the Financing or any Alternative Debt Financing; provided, that in no event shall Cable Buyer, Metro Parent or Merger Sub be required to consummate the Closing any earlier than the second (2nd) business day immediately following the end of the Marketing Period). The Parents shall keep the Company informed on a reasonable basis and in reasonable detail of the status of its efforts to arrange the Financing (including providing the Company with copies of all definitive agreements and other documents related to the Financing). The Parents shall give the Company prompt notice upon having knowledge of any breach by any party of any of the Financing Commitments or any termination of any of the Financing Commitments. Other than as set forth in the Equity Funding Letter) (or, if necessary or deemed advisable by Parent, seek the waiver of conditions applicable to Parent and Merger Sub contained in such Debt Commitment Letter or such definitive agreements related theretoSection 5.11(b), (iv) upon the satisfaction or waiver of the conditions to Parent’s and Merger Sub’s obligations to consummate the Offer and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants and other obligations under the Financing Letters and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall notneither Parent shall, without the prior written consent of the CompanyCompany (not to be unreasonably withheld, agree to conditional or permit any termination of or amendmentdelayed), amend, modify, supplement or modification waive any of the conditions or contingencies to be made tofunding contained in the Financing Commitments (or any definitive agreements related thereto) or any other provision of, or grant any waiver of any provision remedies under, the Financing Letters Commitments (or the any definitive agreements relating related thereto), in each case to the Financing if extent such termination, amendment, supplementmodification, modification supplement or waiver would reasonably be expected to have the effect of (A) reduce adversely affecting in any material respect the aggregate amount ability of any portion of Cable Buyer, Metro Parent or Merger Sub to timely consummate the Financing (including by increasing the amount of fees to be paid or original issue discount as compared to the fees and original issue discount transactions contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required AmountAgreement, (B) impose new amending, modifying, supplementing or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of waiving the conditions precedent or contingencies to the Financing in a manner materially adverse to the Company or the holders of Shares or (C) materially delaying the Effective Time or the Closing. In the event all conditions applicable to the Financing Commitments have been satisfied and all of the conditions set forth in Section 6.1 and Section 6.3 (other than those conditions that by their nature are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions) have been satisfied (or waived), each of Cable Buyer and Metro Parent shall use its reasonable best efforts to cause the Lenders and Sponsor to fund the Metro Financing and the Cable Financing, as applicable, required to consummate the Cable Transfer, the Merger and the other transactions contemplated by this Agreement (including by taking enforcement action to cause the persons providing the Metro Financing and the Cable Financing, as applicable, to fund such Financing). (b) Each of Cable Buyer, Metro Parent and Merger Sub may, and if all or any portion of the Debt Financing becomes unavailable (other than due to the failure of a condition to the consummation of the Debt Financing resulting from a breach of the representations, warranties, covenants or agreements of the Company set forth in this Agreement, in each case, after providing ten (10) days’ (or such shorter period of time as may then exist under the Debt Financing) written notice to the Company and a reasonable opportunity to cure), each of Cable Buyer, Metro Parent and Merger Sub shall use its reasonable best efforts to, (i) arrange to promptly obtain the Debt Financing or such portion of the Debt Financing from alternative sources, which may include one or more of a senior secured debt financing, an offering and sale of notes, or any other financing or offer and sale of other debt securities, or any combination thereof, in an amount sufficient, when added to the portion of the Financing that is available, together with any cash or cash equivalents held by the Company (not needed for other purposes) at the Effective Time, to pay in cash all amounts required to be paid by Cable Buyer, Metro Parent, Merger Sub and the Surviving Corporation in connection with the transactions contemplated by this Agreement (“Alternative Debt Financing”) and (ii) obtain a new financing commitment letter (the “Alternative Debt Commitment Letter”) and a new definitive agreement with respect thereto that provides for financing (A) on terms not materially less favorable, in the aggregate, to the Parents and Merger Sub, (B) containing conditions to draw and other terms that would reasonably be expected to affect the availability thereof that (1) are not more onerous, taken as a whole, than those conditions and terms contained in the Debt Financing Commitments as of the date hereof and (2) would not reasonably be expected to materially delay the Effective Time or prevent the funding Closing and (C) in an amount that is sufficient, when added to the portion of the Financing (that is available, together with any cash or satisfaction cash equivalents held by the Company as of the conditions Effective Time, to pay in cash all amounts required to be paid by Cable Buyer, Metro Parent, Merger Sub and the Surviving Corporation in connection with the transactions contemplated by this Agreement. In such event, the term “Debt Financing” as used in this Agreement shall be deemed to include any Alternative Debt Financing (and consequently the term “Financing” shall include the Equity Financing and the Alternative Debt Financing), and the term “Debt Financing Commitments” as used in this Agreement shall be deemed to include any Alternative Debt Commitment Letter. (c) The Company will, and will cause its Subsidiaries to, and will request their respective Representatives to, cooperate reasonably with Cable Buyer, Metro Parent, Merger Sub and their authorized Representatives in connection with the arrangement and closing of the Debt Financing (including any Alternative Debt Financing), including, without limitation, (i) assisting in the preparation for and participating on reasonable advance notice in a reasonable number of lender and investor meetings, presentations, road shows, due diligence sessions, meetings with rating agencies and similar events, and providing reasonable assistance to the Parents in obtaining any ratings contemplated by the Debt Financing; (ii) furnishing information (including financial statements) reasonably required to be included in, and providing reasonable assistance with, the preparation of offering memoranda, private placement memoranda, bank information memoranda, prospectuses, rating agency presentations and similar documents; provided that any private placement memoranda or prospectuses in relation to high yield debt securities need not be issued by the Company or any of its Subsidiaries prior to the Effective Time; 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 or obligors; (iii) without limitation of clause (ii) above, as promptly as reasonably practicable, furnishing the Parents and their Lenders with financial and other information regarding the Company and its Subsidiaries as may be reasonably requested by the Parents (including in connection with the Parents’ preparation of pro forma financial statements), including annual and interim financial statements, financial data, audit reports and other information of the type required by Regulation S-X promulgated under the Securities Act and Regulation S-K for a registered public offering, and of type and form customarily included in private placements under Rule 144A, to consummate the Debt Financing contemplated by the Financing Commitments, or as otherwise reasonably required in connection with the Debt Financing and the transactions contemplated by this Agreement or as otherwise necessary in order to assist in receiving customary “comfort” (including “negative assurance” comfort) from independent accountants in connection with the Debt Financing contemplated by the Financing Commitments, including the Segment Financial Statements and the Pro Forma Segment Financial Information (each as defined in Section 5.11(d)) (all such foregoing information in this clause (iii), the “Required Information”), and any other financial statements or other information reasonably requested by the Lenders in connection with the Debt Financing; (iv) using reasonable best efforts to obtain customary accountants’ comfort letters, appraisals and surveys (including providing reasonable access to the Parents and their respective agents to all owned real property for such purposes), title insurance and other documentation and items relating to the Debt Financing as reasonably requested by the Parents and, if requested by the Parents or Merger Sub, to cooperate with and assist the Parents or Merger Sub in obtaining such documentation and items; (v) arranging for consents of accountants for appropriate use of their reports in any materials relating to the Debt Financing and reasonably facilitating the pledging or the re-affirmation of the pledge of collateral (including cooperation in connection with the pay-off of existing indebtedness and the release of related Liens); (vi) taking commercially reasonable actions necessary to (A) permit the Lenders 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 Effective Time and (B) assist the Parents to establish or maintain, effective as of the Effective Time, bank and other accounts and blocked account agreements and lock box arrangements in connection with the Financing; and (vii) taking all corporate actions, subject to the occurrence of the Effective Time, reasonably requested by the Parents that are necessary or customary to permit the consummation of the Debt Financing, including any high yield financing, and to permit the proceeds thereof, together with the cash or cash equivalents of the Company and its Subsidiaries (not needed for other purposes), to be made available to the Company on the Closing Date or (C) adversely impact to consummate the ability of Parent or Merger SubCable Transfer and the Merger. The Company agrees that it will supplement and keep current the Required Information on a reasonably periodic basis and provide any supplements reasonably requested by the Parents so that the Parents may access the financing markets. Any information provided to Cable Buyer, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in this Agreement, nothing contained in this Section 5.04 shall require, and in no event shall the reasonable best efforts of Metro Parent or Merger Sub pursuant to this Section 5.11(c) shall be deemed subject to the Confidentiality Agreement. 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 the Parents shall give due consideration to all reasonable additions, deletions or construed changes suggested thereto by the Company and its Representatives. Cable Buyer, Metro Parent and Merger Sub acknowledge and agree that the Company and its affiliates and their respective Representatives shall not have any responsibility for, or incur any liability to requireany person under or in connection with, either the arrangement of the Financing or any alternative financing that Cable Buyer, Metro Parent or Merger Sub to may raise in connection with the transactions contemplated by this Agreement, and that Cable Buyer, Metro Parent and Merger Sub shall indemnify and hold harmless the Company, its Subsidiaries and their respective Representatives from and against any and all losses suffered or incurred by them in connection with the arrangement of the Financing or any alternative financing (i) seek the Equity Financing from any source other than to the counterparties toextent such losses arise from the willful misconduct or gross negligence of the Company, its Subsidiaries or their respective Representatives, as determined by a final, nonappealable judgment by a court of competent jurisdiction) and any information utilized in any amount in excess of that contemplated by, the Equity Funding Letter, or connection therewith (ii) pay any material fees in excess of those contemplated other than information provided by the Equity Funding Letter Company or its Subsidiaries expressly for use in connection therewith). The Company consents, prior to the Debt Commitment Letter (including termination of this Agreement, to the reasonable use of the Company’s and its Subsidiaries’ logos in connection with the arrangement of the Financing in a manner custom ary for such financing transactions. Nothing in this Section 5.11(c) shall require the Company or any market “flex” provisions contained therein)of its Subsidiaries to provide any assistance which would interfere unreasonably with the business or operations of the Company or any of its Subsidiaries.

Appears in 1 contract

Sources: Merger Agreement (RCN Corp /De/)

Financing. (a) Each Parent has delivered to the Company true and complete fully executed copies of (i) executed commitment letter(s), dated as of the date hereof between Parent and Merger Sub shall use reasonable best efforts the Debt Financing Sources party thereto (including all exhibits, schedules and annexes thereto, and the executed fee letters (the “Fee Letters”) associated therewith (provided that the amount of fees, flex provisions, pricing terms and pricing caps set forth in any fee letter may be redacted; provided, further, that none of the redacted terms (x) could reasonably be expected to takeadversely affect the availability of the Debt Financing or (y) affect the conditionality, enforceability, availability or aggregate principal amount of the Debt Financing), as the same may be amended pursuant to Section 5.15, collectively, the “Debt Financing Commitment Letter” and, together with the Equity Commitment Letter, the “Financing Commitment Letters”) pursuant to which the lender parties thereto have agreed, subject to the terms and conditions thereof, to provide or cause to be takenprovided the debt financing in the amounts set forth therein (the “Debt Financing”) and (ii) the Equity Commitment Letter, all actions pursuant to which the Guarantors have agreed and committed, subject to do, or cause to be done, all things necessary, proper or advisable to consummate and obtain the Financing on the terms and subject only conditions thereof, to invest in Parent, directly or indirectly, the conditions (including the market “flex” provisions) cash amounts set forth in therein (such financing, the “Equity Financing” and, together with the Debt Financing, the “Financing LettersCommitments”) for the purpose of satisfying Parent’s obligations under this Agreement, including using reasonable best efforts under Article II, and to (i) maintain consummate the transactions contemplated hereby and to pay all fees and expenses reasonably expected to be incurred in effect connection herewith and comply with the Financing LettersFinancing. The Equity Commitment Letter provides that the Company is an express third-party beneficiary thereof and Parent and the Guarantors will not oppose the granting of an injunction, (ii) negotiate and enter into definitive agreements (which, with respect to the bridge facility documentation, shall not be required until determined by Parent to be reasonably likely to be necessary specific performance or other equitable relief in connection with the funding exercise of the Debt Financing) with respect such third-party beneficiary rights, in each case subject to the Debt Financing on the terms and subject only to the conditions (including the market “flex” provisions) set forth in the Debt Commitment Letter (or on other terms that, with respect to conditionality, are not less favorable to Parent or Merger Sub than the terms and conditions (including market “flex” provisions) set forth in the Debt Commitment Letter), (iii) satisfy on a timely basis all conditions applicable to Parent and Merger Sub in the Financing Letters and the definitive agreements related thereto (including by consummating the Equity Financing at or prior to the Closing on the terms and subject to the conditions set forth in the Equity Funding Commitment Letter. (b) As of the date of this Agreement, the Financing Commitment Letters and the terms of the Financing Commitments have not been withdrawn (orand no party thereto has indicated an intent to so withdraw), if necessary amended, restated or deemed advisable otherwise modified or waived, and the respective commitments contained therein have not been withdrawn, modified or rescinded in any respect, and, except as permitted by Section 5.15(a) or as otherwise agreed to in writing by the Company, no such amendment, restatement or modification thereto is contemplated; provided that the existence or exercise of “market flex” provisions contained in the Fee Letters shall not constitute an amendment or modification of the Debt Financing Commitment Letter. As of the date of this Agreement, the Financing Commitment Letters are in full force and effect and constitute the legal, valid and binding obligation of Parent and, to the knowledge of Parent, seek the waiver other parties thereto, enforceable against each party thereto in accordance with its terms (in each case, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, rehabilitation, liquidation, preferential transfer, moratorium and similar Laws now or hereafter affecting creditors’ rights generally and subject, as to enforceability, to general principles of conditions applicable equity (regardless of whether enforcement is sought in a proceeding at equity or law)). (c) There are no side letters or other legally binding agreements, contracts or arrangements relating to Parent and Merger Sub contained the funding or investing, as applicable, of the full amount of the Equity Financing or the Debt Financing on the Closing Date, other than as expressly set forth in such Debt the Equity Commitment Letter or such definitive agreements related thereto)the Debt Financing Commitment Letter, as applicable. Neither the Equity Financing nor the Debt Financing is subject to any conditions precedent other than those expressly set forth in the Equity Commitment Letter or the Debt Financing Commitment Letter, as applicable. (d) Assuming the funding in full of the Financing on the Closing Date and the satisfaction of the conditions set forth in clauses (d) and (e) of Annex I, the net proceeds of the Financing Commitments, when funded in accordance with the Financing Commitment Letters, will be, in the aggregate, sufficient for the satisfaction of Parent’s obligations under this Agreement, including under Article II, and to consummate the transactions contemplated hereby and to pay all fees and expenses reasonably expected to be incurred in connection herewith and with the Financing Commitments. (e) As of the date of this Agreement, assuming the satisfaction of the conditions set forth in clauses (d) and (e) of Annex I, (ivi) upon to the satisfaction knowledge of Parent, no event has occurred which would constitute or waiver would reasonably be expected to constitute a breach or default (or an event which with notice or lapse of time or both would constitute or would reasonably be expected to constitute a default) on the part of any party to the Financing Commitment Letters, under the Financing Commitment Letters, and (ii) Parent has no reason to believe that any of the conditions to the Financing Commitments will not be satisfied (or that the full amount of the Equity Financing and the full amount of the Debt Financing will not be available to Parent’s and Merger Sub’s obligations ) on or prior to consummate the Offer Closing. Parent has fully paid any and the Merger, consummate the Financing and cause the lenders and the other Persons committing to fund the Financing to fund the Financing at the Closing, (v) enforce its rights under the Financing Letters and the definitive agreements relating to the Financing and (vi) otherwise comply with Parent’s and Merger Sub’s covenants all commitment and other obligations under the Financing Letters fees, costs and the definitive agreements relating to the Financing. Parent, Merger Sub and the Guarantors shall not, without the prior written consent of the Company, agree to or permit any termination of or amendment, supplement or modification to be made to, or grant any waiver of any provision under, the Financing Letters or the definitive agreements relating to the Financing if such termination, amendment, supplement, modification or waiver would (A) reduce the aggregate amount of any portion of the Financing (including by increasing the amount of fees expenses that are required to be paid on or original issue discount as compared prior to the fees and original issue discount contemplated by the Financing Letters on the date of this Agreement unless the Debt Financing or Equity Financing is increased by a corresponding amount) such that the aggregate amount of the Financing would be below the amount required to pay the Required Amount, (B) impose new or additional conditions precedent to the availability of the Financing or otherwise expand, amend or modify any of the conditions precedent pursuant to the Financing Commitment Letters or otherwise in a manner that would reasonably be expected to materially delay or prevent the funding of connection with the Financing Commitments. (or satisfaction of the conditions to the Financingf) on the Closing Date or (C) adversely impact the ability of Parent or Merger Sub, as applicable, to enforce its rights against other parties to the Financing Letters or the definitive agreements with respect to the Financing. Parent shall promptly deliver to the Company copies of any amendment, modification, supplement, consent or waiver to or under any Financing Letter or the definitive agreements relating to the Financing promptly upon execution thereof. Notwithstanding anything to the contrary in contained herein, the parties acknowledge and agree that it shall not be a condition to the obligations of Parent to consummate the transactions contemplated by this AgreementAgreement or any of its obligations under this Agreement that Parent continue to have access to the financing contemplated by the Financing Commitments (i.e., nothing contained Parent’s obligations are not conditioned upon the availability of financing). The representations and warranties set forth in this Section 5.04 shall require4.7, and in no event shall the reasonable best efforts of Parent or Merger Sub be deemed or construed as they relate to require, either Parent or Merger Sub to (i) seek the Equity Financing from any source other than the counterparties to, or in any amount in excess of that contemplated by, Commitment Letter and the Equity Funding LetterFinancing, or (ii) pay any material fees in excess shall apply with respect to the Amended and Restated Agreement and are made as of those contemplated by the Equity Funding Letter or Execution Date and as of the Debt Commitment Letter (including any market “flex” provisions contained therein)Offer Expiration Time.

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Sources: Agreement and Plan of Merger (Barnes & Noble Inc)