Credit Agreement (2006)Full Document 

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$975,000,000
CREDIT AGREEMENT
Dated as of December 1, 2005
among
AVAGO TECHNOLOGIES FINANCE PTE. LTD.,
AVAGO TECHNOLOGIES FINANCE S.À.R.L.,
AVAGO TECHNOLOGIES (MALAYSIA) SDN. BHD. (f/k/a Jumbo Portfolio Sdn. Bhd.),
AVAGO TECHNOLOGIES WIRELESS (U.S.A.) MANUFACTURING INC.,
AVAGO TECHNOLOGIES U.S. INC.
as Borrowers
AVAGO TECHNOLOGIES HOLDING PTE. LTD.
as Holdings
and
The Several Lenders
from Time to Time Parties Hereto
CITICORP INTERNATIONAL LIMITED (HONG KONG),
as Asian Administrative Agent
CITICORP NORTH AMERICA, INC.,
as Tranche B-1 Term Loan Administrative Agent and as Collateral Agent
CITIGROUP GLOBAL MARKETS INC.,
as Joint Lead Arranger and Joint Lead Bookrunner
LEHMAN BROTHERS INC.,
as Joint Lead Arranger, Joint Lead Bookrunner and Syndication Agent
CREDIT SUISSE,
as Documentation Agent
(WGM LOGO)
Weil, Gotshal & Manges LLP
767 Fifth Avenue
New York, New York 10153-0119
 

 


 

TABLE OF CONTENTS
             
        Page
SECTION 1.
 
Definitions
    3  
1.1
  Defined Terms     3  
1.2
  Exchange Rates     59  
1.3
  Business     60  
SECTION 2.
 
Amount and Terms of Credit
    60  
2.1
  Commitments     60  
2.2
  Minimum Amount of Each Borrowing; Maximum Number of Borrowings     66  
2.3
  Notice of Borrowing     66  
2.4
  Disbursement of Funds     70  
2.5
  Repayment of Loans; Evidence of Debt     71  
2.6
  Conversions and Continuations     73  
2.7
  Pro Rata Borrowings     75  
2.8
  Interest     76  
2.9
  Interest Periods     77  
2.10
  Increased Costs, Illegality, etc     78  
2.11
  Compensation     80  
2.12
  Change of Lending Office     81  
2.13
  Notice of Certain Costs     81  
2.14
  Incremental Facilities     81  
2.15
  Conversion of Malaysian Revolving Credit Facility     83  
SECTION 3.
 
Letters of Credit
    84  
3.1
  Letters of Credit     84  
3.2
  Letter of Credit Requests     85  
3.3
  Letter of Credit Participations     86  
3.4
  Agreement to Relay Letter of Credit Drawings     88  
3.5
  Increased Costs     89  
3.6
  Successor Letter of Credit Issuer     90  
SECTION 4.
 
Fees; Commitments
    90  
4.1
  Fees     90  

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TABLE OF CONTENTS
(continued)
             
        Page
4.2
  Voluntary Reduction of Revolving Credit Commitments     92  
4.3
  Mandatory Termination of Commitments     93  
SECTION 5.
 
Payments
    93  
5.1
  Voluntary Prepayments     93  
5.2
  Mandatory Prepayments     94  
5.3
  Method and Place of Payment     99  
5.4
  Net Payments     99  
5.5
  Computations of Interest and Fees     102  
5.6
  Limit on Rate of Interest     102  
SECTION 6.
 
Conditions Precedent to Initial Borrowing
    103  
6.1
  Credit Documents     103  
6.2
  Collateral     103  
6.3
  Legal Opinions     104  
6.4
  No Default     104  
6.5
  Senior Notes     104  
6.6
  Equity Investments     104  
6.7
  Closing Certificates     104  
6.8
  Corporate Proceedings of Each Credit Party     104  
6.9
  Corporate Documents     105  
6.10
  Fees     105  
6.11
  Representations and Warranties     105  
6.12
  Related Agreements     105  
6.13
  Solvency Certificate     105  
6.14
  Financial Statements     105  
6.15
  Acquisition     105  
6.16
  Insurance     105  
6.17
  Consolidated Total Debt to Adjusted EBITDA     106  
6.18
  Pro Forma Financial Statements; Projections     106  

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TABLE OF CONTENTS
(continued)
             
        Page
SECTION 7.
 
Conditions Precedent to All Credit Events and Tranche B-2 Term Loan Borrowing
    106  
7.1
  No Default; Representations and Warranties     106  
7.2
  Notice of Borrowing; Letter of Credit Request     106  
7.3
  Tranche B-2 Term Loan Borrowing     107  
7.4
  Malaysian U.S. Dollar Loans     107  
SECTION 8.
 
Representations, Warranties and Agreements
    108  
8.1
  Corporate Status     108  
8.2
  Corporate Power and Authority     108  
8.3
  No Violation     108  
8.4
  Litigation     108  
8.5
  Margin Regulations     109  
8.6
  Governmental Approvals     109  
8.7
  Investment Company Act     109  
8.8
  True and Complete Disclosure     109  
8.9
  Financial Condition; Financial Statements     109  
8.10
  Tax Returns and Payments     110  
8.11
  Compliance with ERISA     110  
8.12
  Subsidiaries     111  
8.13
  Intellectual Property, etc     111  
8.14
  Environmental Laws     111  
8.15
  Properties     111  
8.16
  Solvency     112  
8.17
  Public Utility Holding Company Act     112  
SECTION 9.
 
Affirmative Covenants
    112  
9.1
  Information Covenants     112  
9.2
  Books, Records and Inspections     115  
9.3
  Maintenance of Insurance     116  
9.4
  Payment of Taxes     116  
9.5
  Consolidated Corporate Franchises     116  

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TABLE OF CONTENTS
(continued)
             
        Page
9.6
  Compliance with Statutes, Regulations, etc     116  
9.7
  ERISA     116  
9.8
  Maintenance of Properties     117  
9.9
  Transactions with Affiliates     117  
9.10
  End of Fiscal Years; Fiscal Quarters     118  
9.11
  Additional Guarantors and Grantors     118  
9.12
  Pledges of Additional Stock and Evidence of Indebtedness     118  
9.13
  Use of Proceeds     119  
9.14
  Further Assurances     119  
9.15
  Maintenance of Rating of Facilities     120  
SECTION 10.
 
Negative Covenants
    120  
10.1
  Limitation on Indebtedness     120  
10.2
  Limitation on Liens     123  
10.3
  Limitation on Fundamental Changes     124  
10.4
  Limitation on Sale of Assets     126  
10.5
  Limitation on Investments     128  
10.6
  Limitation on Dividends     130  
10.7
  Limitations on Debt Payments and Amendments     132  
10.8
  Limitations on Sale Leasebacks     133  
10.9
  Consolidated Total Senior Secured Debt to Adjusted EBITDA Ratio     133  
10.10
  Capital Expenditures     134  
10.11
  Changes in Business     134  
10.12
  Limitation on Activities of Holdings     135  
10.13
  Limitation on Activities of the Lux Borrower     135  
SECTION 11.
 
Events of Default
    135  
11.1
  Payments     135  
11.2
  Representations, etc     136  
11.3
  Covenants     136  
11.4
  Default Under Other Agreements     136  

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TABLE OF CONTENTS
(continued)
             
        Page
11.5
  Bankruptcy     136  
11.6
  ERISA     137  
11.7
  Guarantee     137  
11.8
  Pledge Agreements     138  
11.9
  Security Agreement     138  
11.10
  Mortgages     138  
11.11
  Judgments     138  
11.12
  Change of Control     139  
11.13
  Investors’ Right to Cure     139  
SECTION 12.
 
The Agents
    140  
12.1
  Appointment     140  
12.2
  Delegation of Duties     141  
12.3
  Exculpatory Provisions     141  
12.4
  Reliance by Agents     142  
12.5
  Notice of Default     142  
12.6
  Non-Reliance on Administrative Agents, Collateral Agent and Other Lenders     143  
12.7
  Indemnification     143  
12.8
  Administrative Agent in its Individual Capacity     144  
12.9
  Successor Agents     144  
12.10
  Withholding Tax     145  
12.11
  Security Documents     145  
SECTION 13.
 
Miscellaneous
    146  
13.1
  Amendments and Waivers     146  
13.2
  Notices     147  
13.3
  No Waiver; Cumulative Remedies     148  
13.4
  Survival of Representations and Warranties     148  
13.5
  Payment of Expenses and Taxes     148  
13.6
  Successors and Assign; Participations and Assignments     149  
13.7
  Replacements of Lenders under Certain Circumstances     155  

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TABLE OF CONTENTS
(continued)
             
        Page
13.8
  Adjustments; Set-off     156  
13.9
  Counterparts     156  
13.10
  Severability     156  
13.11
  Integration     157  
13.12
  Waiver of Judicial Bond     157  
13.13
  Waiver of Immunity     157  
13.14
  Currency of Payment     157  
13.15
  GOVERNING LAW     158  
13.16
  Submission to Jurisdiction; Waivers; Service of Process     158  
13.17
  Acknowledgments     159  
13.18
  WAIVERS OF JURY TRIAL     159  
13.19
  Confidentiality     160  
13.20
  Citigroup Direct Website Communications     160  
13.21
  USA PATRIOT Act     161  
13.22
  Stamp Act, 1949 of Malaysia     161  

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SCHEDULES
   
 
   
Schedule 1.1(a)
  Applicable Lending Office and Addresses for Notice
Schedule 1.1(b)
  Mortgaged Properties
Schedule 1.1(c)
  Commitments of Lenders
Schedule 1.1(d)
  Excluded Subsidiaries
Schedule 6.1
  Closing Date Security Documents
Schedule 8.12
  Subsidiaries
Schedule 9.14(c)
  Post-Closing Security Documents and Other Actions
Schedule 10.1
  Closing Date Indebtedness
Schedule 10.2
  Closing Date Liens
Schedule 10.5
  Closing Date Investments
 
   
EXHIBITS
   
 
   
Exhibit C
  Form of Guarantee
Exhibit D
  Form of Mortgage (Real Property)
Exhibit E
  Form of Perfection Certificate
Exhibit F
  Form of Pledge Agreement
Exhibit G
  Form of Security Agreement
Exhibit H
  Form of Letter of Credit Request
Exhibit I-1
  Form of Legal Opinion of Simpson Thacher & Bartlett LLP

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