1,000,000,000 REVOLVING CREDIT FACILITY AMENDED AND RESTATED CREDIT AGREEMENT by and among CNX GAS CORPORATION, as Borrower and THE GUARANTORS PARTY HERETO FROM TIME TO TIME and THE LENDERS PARTY HERETO and PNC BANK, NATIONAL ASSOCIATION, as the ...
Exhibit 10.3
EXECUTION VERSION
$1,000,000,000 REVOLVING CREDIT FACILITY
AMENDED AND RESTATED
by and among
CNX GAS CORPORATION, as Borrower
and
THE GUARANTORS PARTY HERETO FROM TIME TO TIME
and
THE LENDERS PARTY HERETO
and
PNC BANK, NATIONAL ASSOCIATION,
as the Administrative Agent
and
BANK OF AMERICA, N.A.,
as the Syndication Agent
and
THE BANK OF NOVA SCOTIA
THE ROYAL BANK OF SCOTLAND PLC, and
WELLS FARGO BANK, N.A.,
the Co-Documentation Agents
and
PNC CAPITAL MARKETS LLC and
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
as Bookrunners and Joint Lead Arrangers
Dated as of April 12, 2011
TABLE OF CONTENTS
Page | ||||||||||
1. | CERTAIN DEFINITIONS | |||||||||
1.1 | Certain Definition | 1 | ||||||||
1.2 | Construction | 33 | ||||||||
1.3 | Accounting Principles | 33 | ||||||||
1.4 | Valuations | 34 | ||||||||
2. | REVOLVING CREDIT AND SWING LOAN FACILITIES | |||||||||
2.1 | Commitments | 34 | ||||||||
2.1.1 | Revolving Credit Commitments | 34 | ||||||||
2.1.2 | Swing Loan Commitment | 35 | ||||||||
2.2 | Nature of Lenders’ Obligations with Respect to Revolving Credit Loans | 35 | ||||||||
2.3 | Commitment Fees | 35 | ||||||||
2.4 | Voluntary Commitment Reduction | 36 | ||||||||
2.5 | Loan Requests | 36 | ||||||||
2.5.1 | Revolving Credit Loan Requests | 36 | ||||||||
2.5.2 | Swing Loan Requests | 37 | ||||||||
2.6 | Making Revolving Credit Loans and Swing Loans | 37 | ||||||||
2.6.1 | Making Revolving Credit Loans | 37 | ||||||||
2.6.2 | Presumptions of the Administrative Agent | 37 | ||||||||
2.6.3 | Making Swing Loans | 38 | ||||||||
2.6.4 | Repayment of Loans | 38 | ||||||||
2.7 | Revolving Credit Notes and Swing Loan Note | 38 | ||||||||
2.7.1 | Revolving Credit Note | 38 | ||||||||
2.7.2 | Swing Loan Note | 38 | ||||||||
2.8 | Use of Proceeds | 38 | ||||||||
2.9 | Borrowing Base | 39 | ||||||||
2.10 | Letter of Credit Subfacility | 40 | ||||||||
2.10.1 | Issuance of Letters of Credit | 40 | ||||||||
2.10.2 | Letter of Credit Fees | 42 | ||||||||
2.10.3 | Participations, Disbursements, Reimbursement | 42 | ||||||||
2.10.4 | Repayment of Participation Advances | 44 | ||||||||
2.10.5 | Documentation | 44 | ||||||||
2.10.6 | Determinations to Honor Drawing Requests | 44 | ||||||||
2.10.7 | Nature of Participation and Reimbursement Obligations | 44 | ||||||||
2.10.8 | Indemnity | 46 | ||||||||
2.10.9 | Liability for Acts and Omissions | 46 | ||||||||
2.10.10 | Cash Collateral Prior to the Expiration Date | 48 | ||||||||
2.11 | Borrowings to Repay Swing Loans | 48 | ||||||||
2.12 | Increase in Revolving Credit Commitments | 49 |
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3. | RESERVED | |||||||||
4. | INTEREST RATES | |||||||||
4.1 | Interest Rate Options | 51 | ||||||||
4.1.1 | Revolving Credit Interest Rate Options; Swing Line Interest Rate | 51 | ||||||||
4.1.2 | Rate Quotations | 52 | ||||||||
4.2 | Interest Periods | 52 | ||||||||
4.2.1 | Amount of Borrowing Tranche | 52 | ||||||||
4.2.2 | Renewals | 52 | ||||||||
4.3 | Interest After Default | 52 | ||||||||
4.3.1 | Letter of Credit Fees, Interest Rate | 53 | ||||||||
4.3.2 | Other Obligations | 53 | ||||||||
4.3.3 | Acknowledgment | 53 | ||||||||
4.4 | LIBOR Rate Unascertainable; Illegality; Increased Costs; Deposits Not Available | 53 | ||||||||
4.4.1 | Unascertainable | 53 | ||||||||
4.4.2 | Illegality; Increased Costs; Deposits Not Available | 53 | ||||||||
4.4.3 | Administrative Agent’s and Lender’s Rights | 54 | ||||||||
4.5 | Selection of Interest Rate Options | 54 | ||||||||
5. | PAYMENTS | |||||||||
5.1 | Payments | 55 | ||||||||
5.2 | Pro Rata Treatment of Lenders | 55 | ||||||||
5.3 | Sharing of Payments by Lenders | 55 | ||||||||
5.4 | Presumptions by Administrative Agent | 56 | ||||||||
5.5 | Interest Payment Dates | 57 | ||||||||
5.6 | Prepayments | 57 | ||||||||
5.6.1 | Right to Prepay | 57 | ||||||||
5.6.2 | Replacement of a Lender | 58 | ||||||||
5.6.3 | Mitigation Obligation | 59 | ||||||||
5.6.4 | Mandatory Prepayments | 59 | ||||||||
5.7 | Increased Costs | 60 | ||||||||
5.7.1 | Increased Costs Generally | 60 | ||||||||
5.7.2 | Capital Requirements | 60 | ||||||||
5.7.3 | Certificates for Reimbursement; Repayment of Outstanding Loans; Borrowing of New Loans | 61 | ||||||||
5.7.4 | Delay in Requests | 61 | ||||||||
5.8 | Taxes | 61 | ||||||||
5.8.1 | Payments Free of Taxes | 61 | ||||||||
5.8.2 | Payment of Other Taxes by the Borrower | 61 | ||||||||
5.8.3 | Indemnification by the Borrower | 62 | ||||||||
5.8.4 | Evidence of Payments | 62 | ||||||||
5.8.5 | Status of Lenders; Refunds | 62 |
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5.9 | Indemnity | 64 | ||||||||
5.10 | Settlement Date Procedures | 64 | ||||||||
5.11 | Borrowing Base Deficiency | 65 | ||||||||
6. | REPRESENTATIONS AND WARRANTIES | |||||||||
6.1 | Representations and Warranties | 66 | ||||||||
6.1.1 | Organization and Qualification | 66 | ||||||||
6.1.2 | [Reserved.] | 66 | ||||||||
6.1.3 | Subsidiaries | 66 | ||||||||
6.1.4 | Power and Authority | 66 | ||||||||
6.1.5 | Validity and Binding Effect | 67 | ||||||||
6.1.6 | No Conflict | 67 | ||||||||
6.1.7 | Litigation | 67 | ||||||||
6.1.8 | Title to Properties | 67 | ||||||||
6.1.9 | Financial Statements | 68 | ||||||||
6.1.10 | Use of Proceeds; Margin Stock | 69 | ||||||||
6.1.11 | Liens in the Collateral | 69 | ||||||||
6.1.12 | Full Disclosure | 70 | ||||||||
6.1.13 | Taxes | 70 | ||||||||
6.1.14 | Consents and Approvals | 70 | ||||||||
6.1.15 | No Event of Default; Compliance with Instruments | 71 | ||||||||
6.1.16 | Patents, Trademarks, Copyrights, Licenses, Etc. | 71 | ||||||||
6.1.17 | Solvency | 71 | ||||||||
6.1.18 | Producing Wells | 71 | ||||||||
6.1.19 | Insurance | 72 | ||||||||
6.1.20 | Compliance with Laws | 72 | ||||||||
6.1.21 | Material Contracts; Burdensome Restrictions | 72 | ||||||||
6.1.22 | Investment Companies; Regulated Entities | 72 | ||||||||
6.1.23 | ERISA Compliance | 72 | ||||||||
6.1.24 | Employment Matters | 73 | ||||||||
6.1.25 | Environmental Matters | 73 | ||||||||
6.1.26 | Anti-Terrorism Laws | 74 | ||||||||
6.1.27 | Gas Imbalances | 75 | ||||||||
6.2 | Updates to Schedules | 75 | ||||||||
7. | CONDITIONS OF LENDING AND ISSUANCE OF LETTERS OF CREDIT | |||||||||
7.1 | First Loans and Letters of Credit | 75 | ||||||||
7.1.1 | Deliveries | 75 | ||||||||
7.1.2 | Payment of Fees | 79 | ||||||||
7.2 | Each Loan or Letter of Credit | 79 | ||||||||
8. | COVENANTS | |||||||||
8.1 | Affirmative Covenants | 79 | ||||||||
8.1.1 | Preservation of Existence, Etc. | 79 |
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8.1.2 | Payment of Liabilities, Including Taxes, Etc. | 79 | ||||||||
8.1.3 | Maintenance of Insurance | 80 | ||||||||
8.1.4 | Maintenance of Properties | 81 | ||||||||
8.1.5 | Maintenance of Patents, Trademarks, Etc. | 81 | ||||||||
8.1.6 | Visitation Rights | 81 | ||||||||
8.1.7 | Keeping of Records and Books of Account | 81 | ||||||||
8.1.8 | Further Assurances | 82 | ||||||||
8.1.9 | [Reserved] | 82 | ||||||||
8.1.10 | Compliance with Laws | 82 | ||||||||
8.1.11 | Use of Proceeds | 82 | ||||||||
8.1.12 | Subordination of Intercompany Loans | 82 | ||||||||
8.1.13 | Anti-Terrorism Laws | 83 | ||||||||
8.1.14 | Compliance with Leases; Pipeline Agreements and Other Instruments | 83 | ||||||||
8.1.15 | Certain Additional Assurances Regarding Maintenance and Operations of Properties | 83 | ||||||||
8.1.16 | [Reserved] | 84 | ||||||||
8.1.17 | Collateral | 84 | ||||||||
8.1.18 | Post-Closing Matters | 85 | ||||||||
8.2 | Negative Covenants | 86 | ||||||||
8.2.1 | Indebtedness | 86 | ||||||||
8.2.2 | Liens | 87 | ||||||||
8.2.3 | Guaranties | 87 | ||||||||
8.2.4 | Loans and Investments | 88 | ||||||||
8.2.5 | Dividends and Related Distributions | 89 | ||||||||
8.2.6 | Liquidations, Mergers, Consolidations | 89 | ||||||||
8.2.7 | Dispositions of Assets (Other Than Proved Reserves) or Subsidiaries | 90 | ||||||||
8.2.8 | Affiliate Transactions; Change in Affiliate Contracts | 91 | ||||||||
8.2.9 | Subsidiaries, Partnerships and Joint Ventures | 91 | ||||||||
8.2.10 | Continuation of or Change in Business | 91 | ||||||||
8.2.11 | [Reserved] | 91 | ||||||||
8.2.12 | Fiscal Year | 91 | ||||||||
8.2.13 | Issuance of Stock | 92 | ||||||||
8.2.14 | Changes in Organizational Documents | 92 | ||||||||
8.2.15 | Hedging | 92 | ||||||||
8.2.16 | Sale of Proved Reserves; Pooling | 92 | ||||||||
8.2.17 | Maximum Leverage Ratio | 93 | ||||||||
8.2.18 | Minimum Interest Coverage Ratio | 93 | ||||||||
8.2.19 | Inconsistent Agreements | 93 | ||||||||
8.2.20 | Restrictions on Upstream Dividends and Payments | 93 | ||||||||
8.2.21 | Certain Matters Regarding the Collateral Trust Agreement | 93 | ||||||||
8.3 | Reporting Requirements | 94 | ||||||||
8.3.1 | Quarterly Financial Statements | 94 | ||||||||
8.3.2 | Annual Financial Statements | 94 |
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8.3.3 | SEC Web Site | 95 | ||||||||
8.3.4 | Certificate of the Borrower | 95 | ||||||||
8.3.5 | Notice of Default | 95 | ||||||||
8.3.6 | Notice of Litigation | 95 | ||||||||
8.3.7 | Certain Events | 95 | ||||||||
8.3.8 | Budgets, Forecasts, Other Reports and Information | 96 | ||||||||
8.3.9 | ERISA Event | 96 | ||||||||
8.3.10 | Reserve Reports | 96 | ||||||||
9. | DEFAULT | |||||||||
9.1 | Events of Default | 98 | ||||||||
9.1.1 | Payments Under Loan Documents | 98 | ||||||||
9.1.2 | Breach of Warranty | 98 | ||||||||
9.1.3 | Breach of Negative Covenants or Visitation Rights | 98 | ||||||||
9.1.4 | Breach of Other Covenants | 99 | ||||||||
9.1.5 | Defaults in Other Agreements or Indebtedness | 99 | ||||||||
9.1.6 | Final Judgments or Orders | 99 | ||||||||
9.1.7 | Loan Document Unenforceable; Collateral Trust Agreement | 99 | ||||||||
9.1.8 | Inability to Pay Debts | 100 | ||||||||
9.1.9 | ERISA | 100 | ||||||||
9.1.10 | Change of Control | 100 | ||||||||
9.1.11 | Borrowing Base | 100 | ||||||||
9.1.12 | Involuntary Proceedings | 100 | ||||||||
9.1.13 | Voluntary Proceedings | 100 | ||||||||
9.2 | Consequences of Event of Default | 101 | ||||||||
9.2.1 | Events of Default Other Than Bankruptcy, Insolvency or Reorganization Proceedings | 101 | ||||||||
9.2.2 | Bankruptcy, Insolvency or Reorganization Proceedings | 101 | ||||||||
9.2.3 | Set-off. | 101 | ||||||||
9.2.4 | Suits, Actions, Proceedings | 102 | ||||||||
9.2.5 | Application of Proceeds | 102 | ||||||||
9.2.6 | Collateral Trust Agreement | 103 | ||||||||
9.2.7 | Other Rights and Remedies | 104 | ||||||||
9.3 | Notice of Sale | 104 | ||||||||
10. | THE ADMINISTRATIVE AGENT | |||||||||
10.1 | Appointment and Authority | 104 | ||||||||
10.2 | Rights as a Lender | 105 | ||||||||
10.3 | Exculpatory Provisions | 105 | ||||||||
10.4 | Reliance by Agents | 106 | ||||||||
10.5 | Delegation of Duties | 106 | ||||||||
10.6 | Resignation of Agents | 107 | ||||||||
10.7 | Non-Reliance on Administrative Agent and Other Lenders | 108 |
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10.8 | No Other Duties, Etc. | 108 | ||||||||
10.9 | Administrative Agent’s Fee | 108 | ||||||||
10.10 | Authorization to Release Collateral and Guarantors; Certain Amendments | 108 | ||||||||
10.11 | No Reliance on Administrative Agent’s Customer Identification Program | 109 | ||||||||
10.12 | Certain Matters Regarding the Collateral Trust Agreement | 109 | ||||||||
11. | MISCELLANEOUS | |||||||||
11.1 | Modifications, Amendments or Waivers | 110 | ||||||||
11.1.1 | Increase of Commitment | 110 | ||||||||
11.1.2 | Extension of Payment; Reduction of Principal Interest or Fees; Modification of Terms of Payment | 110 | ||||||||
11.1.3 | Release of Collateral or Guarantor | 110 | ||||||||
11.1.4 | Borrowing Base | 111 | ||||||||
11.1.5 | Miscellaneous | 111 | ||||||||
11.2 | No Implied Waivers; Cumulative Remedies | 111 | ||||||||
11.3 | Expenses; Indemnity; Damage Waiver | 112 | ||||||||
11.3.1 | Costs and Expenses | 112 | ||||||||
11.3.2 | Indemnification by the Borrower | 112 | ||||||||
11.3.3 | Reimbursement by Lenders | 113 | ||||||||
11.3.4 | Waiver of Consequential Damages, Etc. | 113 | ||||||||
11.3.5 | Payments | 113 | ||||||||
11.4 | Holidays | 114 | ||||||||
11.5 | Notices; Effectiveness; Electronic Communication | 114 | ||||||||
11.5.1 | Notices Generally | 114 | ||||||||
11.5.2 | Electronic Communications | 114 | ||||||||
11.5.3 | Change of Address, Etc. | 115 | ||||||||
11.6 | Severability | 115 | ||||||||
11.7 | Duration; Survival | 115 | ||||||||
11.8 | Successors and Assigns | 115 | ||||||||
11.8.1 | Successors and Assigns Generally | 115 | ||||||||
11.8.2 | Assignments by Lenders | 116 | ||||||||
11.8.3 | Register | 117 | ||||||||
11.8.4 | Participations | 118 | ||||||||
11.8.5 | Limitations upon Participant Rights | 118 | ||||||||
11.8.6 | Certain Pledges; Successors and Assigns Generally | 118 | ||||||||
11.9 | Confidentiality | 119 | ||||||||
11.9.1 | General | 119 | ||||||||
11.9.2 | Sharing Information With Affiliates of the Lenders | 119 | ||||||||
11.10 | Counterparts; Integration; Effectiveness | 119 | ||||||||
11.11 | Governing Law, Etc. | 120 | ||||||||
11.11.1 | Governing Law | 120 | ||||||||
11.11.2 | SUBMISSION TO JURISDICTION | 120 | ||||||||
11.11.3 | WAIVER OF VENUE | 121 | ||||||||
11.11.4 | SERVICE OF PROCESS | 121 | ||||||||
11.11.5 | WAIVER OF JURY TRIAL | 121 |
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11.12 | Certain Collateral Matters | 121 | ||||||||
11.13 | USA Patriot Act Notice | 122 | ||||||||
11.14 | Amendment and Restatement | 122 | ||||||||
11.15 | No Fiduciary Duty | 123 |
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LIST OF SCHEDULES AND EXHIBITS
SCHEDULES
SCHEDULE 1.1(A) | - | PRICING GRID | ||
SCHEDULE 1.1(B) | - | COMMITMENTS OF LENDERS AND ADDRESSES FOR NOTICES | ||
SCHEDULE 1.1(P) | - | PERMITTED LIENS | ||
SCHEDULE 2.9 | - | EXISTING LETTERS OF CREDIT | ||
SCHEDULE 6.1.1 | - | QUALIFICATIONS TO DO BUSINESS | ||
SCHEDULE 6.1.3 | - | SUBSIDIARIES | ||
SCHEDULE 6.1.11 | - | PLEDGED COLLATERAL | ||
SCHEDULE 6.1.19 | - | INSURANCE POLICIES | ||
SCHEDULE 7.1.1(d)(i) | - | OPINION OF COUNSEL (IN HOUSE COUNSEL) | ||
SCHEDULE 7.1.1(d)(ii) | - | OPINION OF COUNSEL (REED SMITH LLP) | ||
SCHEDULE 7.1.1(d)(iii) | - | OPINION OF LOCAL COUNSEL | ||
SCHEDULE 7.1.1(o) | - | AMENDMENTS AND ASSIGNMENTS OF SECURITY DOCUMENTS | ||
SCHEDULE 7.1.1(p) | - | LIEN SEARCHES | ||
SCHEDULE 8.1.17 | - | EXCLUDED ASSETS | ||
SCHEDULE 8.1.18 | - | POST-CLOSING MATTERS | ||
SCHEDULE 8.2.1 | - | PERMITTED INDEBTEDNESS | ||
SCHEDULE 8.2.3 | - | PERMITTED GUARANTIES |
EXHIBITS
EXHIBIT 1.1(A) | - | ASSIGNMENT AND ASSUMPTION AGREEMENT | ||
EXHIBIT 1.1(B) | - | NEW LENDER JOINDER | ||
EXHIBIT 1.1(G)(1) | - | GUARANTOR JOINDER | ||
EXHIBIT 1.1(G)(2) | - | GUARANTY AGREEMENT | ||
EXHIBIT 1.1(G)(3) | - | CONSOL GUARANTY AGREEMENT | ||
EXHIBIT 1.1(I)(1) | - | INDEMNITY | ||
EXHIBIT 1.1(I)(2) | - | CONSOL INTERCOMPANY SUBORDINATION AGREEMENT | ||
EXHIBIT 1.1(I)(3) | - | INTERCOMPANY SUBORDINATION AGREEMENT | ||
EXHIBIT 1.1(N)(1) | - | REVOLVING CREDIT NOTE | ||
EXHIBIT 1.1(N)(2) | - | SWING LOAN NOTE | ||
EXHIBIT 2.5.1 | - | LOAN REQUEST | ||
EXHIBIT 2.5.2 | - | SWING LOAN REQUEST | ||
EXHIBIT 8.3.4 | - | QUARTERLY COMPLIANCE CERTIFICATE |
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AMENDED AND RESTATED CREDIT AGREEMENT
THIS AMENDED AND RESTATED CREDIT AGREEMENT (as hereafter amended, the “Agreement”) is dated as of April 12, 2011 and is made by and among CNX GAS CORPORATION, a Delaware corporation (the “Borrower”), EACH OF THE GUARANTORS (as hereinafter defined), the LENDERS (as hereinafter defined), BANK OF AMERICA, N.A., in its capacity as syndication agent (the “Syndication Agent”), and PNC BANK, NATIONAL ASSOCIATION, in its capacity as administrative agent for the Lenders under this Agreement (hereinafter referred to in such capacity as the “Administrative Agent”).
WITNESSETH:
WHEREAS, the Borrower, the Guarantors, the lenders party thereto, Bank of America, N.A., in its capacity as syndication agent, and PNC Bank, National Association, in its capacity as administrative agent for the Lenders, entered into that certain Credit Agreement, dated as of May 7, 2010 (the “Existing Credit Agreement”), providing for a $700,000,000 revolving credit facility to the Borrower;
WHEREAS, the Borrower has requested that the Lenders amend and restate the Existing Credit Agreement to increase the Revolving Credit Commitments and as otherwise set forth herein;
WHEREAS, the Lenders agree to amend and restate the Existing Credit Agreement subject to the terms and conditions in this Agreement; and
WHEREAS, the liens, security interests and guaranties securing and supporting the Existing Credit Agreement shall continue to secure and support the Obligations as amended and restated pursuant to this Agreement.
NOW, THEREFORE, the parties hereto, in consideration of their mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:
1. CERTAIN DEFINITIONS
1.1 Certain Definitions.
In addition to words and terms defined elsewhere in this Agreement, the following words and terms shall have the following meanings, respectively, unless the context hereof clearly requires otherwise:
“Administrative Agent” shall mean PNC Bank, National Association, and its successors and assigns.
“Administrative Agent’s Fee” shall have the meaning specified in Section 10.9 [Administrative Agent’s Fee].
“Administrative Agent’s Letter” shall have the meaning specified in Section 10.9 [Administrative Agent’s Fee].
“Affiliate” as to any Person shall mean any other Person (i) which directly or indirectly controls, is controlled by, or is under common control with such Person, (ii) which beneficially owns or holds 10% or more of any class of the voting or other equity interests of such Person, or (iii) 10% or more of any class of voting interests or other equity interests of which is beneficially owned or held, directly or indirectly, by such Person. Control, as used in this definition, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ownership of voting securities, by contract or otherwise, including the power to elect a majority of the directors or trustees of a corporation or trust, as the case may be.
“Affiliate Contracts” shall mean collectively that certain Master Separation Agreement, dated as of August 1, 2005, by and among CONSOL Energy Inc., certain of the CEI Subsidiaries (as defined therein), CNX Gas Corporation and certain of the GasCo Subsidiaries (as defined therein) and that certain Master Cooperation and Safety Agreement, dated as of August 1, 2005, by and among