Credit Agreement (2006)Full Document 

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U.S. $2,750,000,000
 
CREDIT AGREEMENT
 
Dated as of August 24, 2006
 
Among
 
FIRSTENERGY CORP., FIRSTENERGY SOLUTIONS CORP., AMERICAN TRANSMISSION SYSTEMS, INCORPORATED, OHIO EDISON COMPANY, PENNSYLVANIA POWER COMPANY, THE CLEVELAND ELECTRIC ILLUMINATING COMPANY, THE TOLEDO EDISON COMPANY, JERSEY CENTRAL POWER & LIGHT COMPANY, METROPOLITAN EDISON COMPANY and PENNSYLVANIA ELECTRIC COMPANY,
as Borrowers,
 
THE BANKS NAMED HEREIN,
as Banks,
 
CITIBANK, N.A.,
as Administrative Agent,
 
THE FRONTING BANKS
PARTY HERETO FROM TIME TO TIME
as Fronting Banks
 
and
 
THE SWING LINE LENDERS PARTY
HERETO FROM TIME TO TIME
as Swing Line Lenders
 
 
CITIGROUP GLOBAL MARKETS INC.
and
BARCLAYS CAPITAL
Joint Lead Arrangers
 
BARCLAYS BANK PLC
Syndication Agent
 
JPMORGAN CHASE BANK, N.A.
KEYBANK NATIONAL ASSOCIATION
WACHOVIA BANK, NATIONAL ASSOCIATION
Co-Documentation Agents

 
 

 


TABLE OF CONTENTS


ARTICLE I
DEFINITIONS AND ACCOUNTING TERMS
     
SECTION 1.01
Certain Defined Terms.
1
SECTION 1.02
Computation of Time Periods.
18
SECTION 1.03
Accounting Terms.
19
SECTION 1.04
Certain References.
19
     
ARTICLE II
AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT
     
SECTION 2.01
The Pro-Rata Advances.
19
SECTION 2.02
Making the Pro-Rata Advances.
19
SECTION 2.03
Swing Line Advances.
21
SECTION 2.04
Letters of Credit.
24
SECTION 2.05
Fees.
31
SECTION 2.06
Adjustment of the Commitments; Borrower Submits.
32
SECTION 2.07
Repayment of Advances.
34
SECTION 2.08
Interest on Advances.
34
SECTION 2.09
Additional Interest on Advances.
35
SECTION 2.10
Interest Rate Determination.
36
SECTION 2.11
Conversion of Advances.
36
SECTION 2.12
Prepayments.
37
SECTION 2.13
Increased Costs.
38
SECTION 2.14
Illegality.
39
SECTION 2.15
Payments and Computations
40
SECTION 2.16
Taxes.
42
SECTION 2.17
Sharing of Payments, Etc.
43
SECTION 2.18
Noteless Agreement; Evidence of Indebtedness.
44
SECTION 2.19
Extension of Termination Date.
44
SECTION 2.20
Several Obligations.
46
     
ARTICLE III
CONDITIONS OF LENDING AND ISSUING LETTERS OF CREDIT
     
SECTION 3.01
Conditions Precedent to Initial Extension of Credit.
46
SECTION 3.02
Conditions Precedent to Each Extension of Credit.
48
SECTION 3.03
Conditions Precedent to Conversions.
49
SECTION 3.04
Conditions Precedent to Extensions of Credit after Expiration of Approval.
50
     
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
     
SECTION 4.01
Representations and Warranties of the Borrowers.
50
     

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TABLE OF CONTENTS (CONTINUED)

ARTICLE V
COVENANTS OF THE BORROWERS
     
SECTION 5.01
Affirmative Covenants of the Borrowers.
54
SECTION 5.02
Debt to Capitalization Ratio.
57
SECTION 5.03
Negative Covenants of the Borrowers.
57
     
ARTICLE VI
EVENTS OF DEFAULT
     
SECTION 6.01
Events of Default.
59
     
ARTICLE VII
THE ADMINISTRATIVE AGENT
     
SECTION 7.01
Authorization and Action.
62
SECTION 7.02
Administrative Agent’s Reliance, Etc.
63
SECTION 7.03
CUSA, Barclays and Affiliates.
63
SECTION 7.04
Lender Credit Decision.
64
SECTION 7.05
Indemnification.
64
SECTION 7.06
Successor Administrative Agent.
64
     
ARTICLE VIII
MISCELLANEOUS
     
SECTION 8.01
Amendments, Etc.
65
SECTION 8.02
Notices, Etc.
66
SECTION 8.03
Electronic Communications.
66
SECTION 8.04
No Waiver; Remedies.
67
SECTION 8.05
Costs and Expenses; Indemnification.
68
SECTION 8.06
Right of Set-off.
69
SECTION 8.07
Binding Effect.
69
SECTION 8.08
Assignments and Participations.
70
SECTION 8.09
Governing Law.
73
SECTION 8.10
Consent to Jurisdiction; Waiver of Jury Trial.
73
SECTION 8.11
Severability.
74
SECTION 8.12
Entire Agreement.
74
SECTION 8.13
Execution in Counterparts.
74
SECTOPM 8.14
USA PATRIOT Act Notice.
74


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SCHEDULES AND EXHIBITS

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Schedule I
-
List of Commitments and Lending Offices
Schedule II
-
List of L/C Fronting Bank Commitments
Schedule III
-
List of Swing Line Commitments
Schedule IV
-
Letters of Credit
     
Exhibit A
-
Form of Assignment and Acceptance
Exhibit B
-
Form of Note
Exhibit C
-
Form of Guaranty
Exhibit D
-
Form of Notice of Pro-Rata Borrowing
Exhibit E
-
Form of Notice of Swing Line Borrowing