Credit Agreement (2006)Full Document 

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$240,000,000
CREDIT AGREEMENT
-among-
REGENT BROADCASTING, LLC,
as Borrower
REGENT COMMUNICATIONS, INC.,
as Parent Company and Guarantor
The Several Lenders from Time
to Time Party to this Credit Agreement
BANK OF AMERICA, N.A.,
as Issuing Lender
 
BANC OF AMERICA SECURITIES LLC,
as Sole Lead Arranger
 
BANC OF AMERICA SECURITIES LLC
-and-
SUNTRUST BANK,
as Joint Book Managers
SUNTRUST ROBINSON HUMPHREY,
as Syndication Agent
GENERAL ELECTRIC CAPITAL CORPORATION
BMO CAPITAL MARKETS FINANCING, INC.,
–and-
WELLS FARGO FOOTHILL, INC.
as Co-Documentation Agents
-and-
BANK OF AMERICA, N.A.,
as Administrative Agent
Dated as of: November 21, 2006
 
 

 


 

TABLE OF CONTENTS
                 
   
 
    Page  
 
ARTICLE I  
DEFINITIONS
    1  
                 
  1.1.    
Defined Terms
    1  
  1.2.    
Other Interpretive Provisions
    38  
  1.3.    
Accounting Terms
    39  
  1.4.    
Rounding
    39  
  1.5.    
Times of Day
    39  
  1.6.    
Timing of Payment or Performance
    39  
                 
ARTICLE II  
THE CREDIT FACILITIES
    40  
                 
  2.1.    
Amounts and Terms of Commitments
    40  
  2.2.    
Loan Accounts; Notes
    40  
  2.3.    
Requests for Borrowings
    41  
  2.4.    
Interest Elections for all Borrowings
    42  
  2.5.    
Reduction and Termination of Commitments
    43  
  2.6.    
Voluntary Prepayments
    44  
  2.7.    
Mandatory Prepayments
    45  
  2.8.    
Repayments of Principal
    47  
  2.9.    
Fees
    49  
  2.10.    
Computation of Fees and Interest
    50  
  2.11.    
Interest
    50  
  2.12.    
Payments Generally
    51  
  2.13.    
Pro Rata Treatment
    52  
  2.14.    
Sharing of Payments
    53  
  2.15.    
Incremental Facilities
    53  
                 
ARTICLE III  
THE LETTERS OF CREDIT
    55  
                 
  3.1.    
Letter of Credit Subfacility
    55  
  3.2.    
Issuance, Amendment and Renewal of Letters of Credit
    56  
  3.3.    
Participations, Drawings and Reimbursement
    58  
  3.4.    
Repayment of Participation
    59  
  3.5.    
Role of Issuing Lender
    60  
  3.6.    
Obligations Absolute
    60  
  3.7.    
Cash Collateralization
    61  
  3.8.    
Letter of Credit Fees
    61  
                 
ARTICLE IV  
TAXES, YIELD PROTECTION AND ILLEGALITY
    62  
                 
  4.1.    
Taxes
    62  
  4.2.    
Illegality
    64  
  4.3.    
Inability to Determine Rates
    64  
  4.4.    
Increased Costs
    65  
  4.5.    
Compensation for Losses
    66  
  4.6.    
Mitigation Obligations
    67  
  4.7.    
Survival
    67  

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TABLE OF CONTENTS
(continued)
                 
   
 
    Page  
 
ARTICLE V  
CONDITIONS PRECEDENT
    67  
                 
  5.1.    
Conditions to Making First Credit Extensions
    67  
       
5.1.1.   Execution and Delivery of this Agreement and Notes
    67  
       
5.1.2.   Guaranty Agreement; Collateral Documents
    68  
       
5.1.3.   Other Loan Documents; etc
    68  
       
5.1.4.   Termination of Existing Credit Facilities; etc
    68  
       
5.1.5.   Financial Statements
    69  
       
5.1.6.   Certificates of Insurance
    69  
       
5.1.7.   Resolutions; etc
    69  
       
5.1.8.   Certificates of Good Standing; etc
    70  
       
5.1.9.   No Materially Adverse Effect; etc
    70  
       
5.1.10. Affiliate Transactions; etc
    70  
       
5.1.11. Maximum Consolidated Leverage Ratio; Ratings; etc
    70  
       
5.1.12. Minimum Reserve Amount
    71  
       
5.1.13. Fees and Expenses
    71  
       
5.1.14. Legal Opinions of Counsel
    71  
  5.2.    
Conditions Precedent to Each Delayed Draw Term Loan
    71  
  5.3.    
All Credit Extensions
    72  
       
5.3.1.   Compliance with Warranties; No Default; etc
    72  
       
5.3.2.   Borrowing Request; Interest Election Request
    72  
       
5.3.3.   Legality of Transactions
    73  
       
5.3.4.   Satisfactory Legal Form; etc
    73  
       
5.3.5.   Minimum Availability Under Revolving Commitments
    73  
                 
ARTICLE VI  
REPRESENTATIONS AND WARRANTIES
    73  
                 
  6.1.    
Corporate Existence and Power; etc
    73  
  6.2.    
Corporate Authorization; etc
    74  
  6.3.    
Governmental Authorization
    74  
  6.4.    
Binding Effect
    75  
  6.5.    
Collateral Documents
    75  
  6.6.    
No Default
    75  
  6.7.    
Use of Proceeds; Margin Regulations
    75  
  6.8.    
Financial Statements; etc
    75  
  6.9.    
Materially Adverse Effect
    76  
  6.10.    
Existing Indebtedness, Liens and Investments; etc
    76  
  6.11.    
Transactions with Affiliates
    77  
  6.12.    
Corporate Structure; etc
    77  
  6.13.    
Title to Properties
    77  
  6.14.    
Intellectual Property Rights; etc
    77  
  6.15.    
Litigation
    78  
  6.16.    
Compliance with Applicable Law; etc
    78  
  6.17.    
Governmental Regulation
    78  
  6.18.    
Taxes
    78  
  6.19.    
ERISA
    78  

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TABLE OF CONTENTS
(continued)
                 
   
 
    Page  
 
  6.20.    
Environmental Liabilities
    79  
  6.21.    
Labor Controversies
    79  
  6.22.    
FCC Authorizations
    79  
  6.23.    
Pending Acquisition Documents; etc
    80  
                 
ARTICLE VII  
AFFIRMATIVE COVENANTS
    80  
                 
  7.1.    
Financial Information; etc
    81  
  7.2.    
Compliance Certificates; Other Information
    82  
  7.3.    
Notices
    83  
  7.4.    
Maintenance of Corporate Existence; etc
    83  
  7.5.    
Foreign Qualification; etc
    84  
  7.6.    
Payment of Taxes; etc
    84  
  7.7.    
Maintenance of Property; Insurance
    84  
  7.8.    
Compliance with Laws; etc
    84  
  7.9.    
Books and Records
    85  
  7.10.    
Use of Proceeds
    85  
  7.11.    
Interest Rate Protection
    86  
  7.12.    
Identification of Subsidiaries; Provision of Collateral
    86  
  7.13.    
Information Regarding Pending Acquisition; etc
    87  
  7.14.    
Minimum Reserve Amount
    88  
  7.15.    
Further Assurances
    89  
                 
ARTICLE VIII  
NEGATIVE COVENANTS
    89  
                 
  8.1.    
Limitations on Lines of Business
    90  
  8.2.    
Indebtedness
    90  
  8.3.    
Liens
    91  
  8.4.    
Financial Covenants
    92  
  8.5.    
Consolidations, Mergers, Sales; etc
    92  
  8.6.    
Investments and Acquisitions
    94  
  8.7.    
Restricted Payments
    95  
  8.8.    
Limitations on Swap Contracts
    96  
  8.9.    
Limitations on Restrictive Agreements
    96  
  8.10.    
Transactions with Affiliates
    97  
  8.11.    
Sale of Capital Stock; etc
    98  
  8.12.    
Change of Control
    99  
  8.13.    
Limitations on Optional Payments; etc
    99  
  8.14.    
Modification of other Ancillary Documents; etc
    99  
  8.15.    
Maintenance of Separateness
    99  
  8.16.    
Use of Credits; Compliance with Margin Regulations
    99  
                 
ARTICLE IX  
EVENTS OF DEFAULT
    100  
                 
  9.1.    
Events of Default
    100  
       
9.1.1. Non Payment of Obligations
    100  

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TABLE OF CONTENTS
(continued)
                 
   
 
    Page  
 
       
9.1.2.   Non Performance of Certain Obligations
    100  
       
9.1.3.   Non Performance of Other Obligations
    100  
       
9.1.4.   Breach of Representation or Warranty
    100  
       
9.1.5.   Cross Default
    100  
       
9.1.6.   Insolvency; Voluntary Proceedings
    101  
       
9.1.7.   Involuntary Proceedings
    101  
       
9.1.8.   ERISA
    101  
       
9.1.9.   Judgments
    101  
       
9.1.10. Change of Control
    101  
       
9.1.11. Guaranty Agreement
    101  
       
9.1.12. Collateral Documents
    102  
       
9.1.13. Main Station Licenses
    102  
  9.2.    
Remedies
    103  
  9.3.    
Application of Funds
    104  
                 
ARTICLE X  
THE ADMINISTRATIVE AGENT
    104  
                 
  10.1.    
Appointment and Authority
    104  
  10.2.    
Rights as a Lender
    105  
  10.3.    
Exculpatory Provisions
    105  
  10.4.    
Reliance by Administrative Agent
    106  
  10.5.    
Delegation of Duties
    106  
  10.6.    
Resignation of Administrative Agent
    107  
  10.7.    
Non-Reliance on Administrative Agent and Other Lenders
    108  
  10.8.    
No Other Duties; etc
    108  
  10.9.    
Administrative Agent May File Proofs of Claim
    108  
  10.10.    
Collateral and Guaranty Matters
    109  
                 
ARTICLE XI  
SUCCESSORS AND ASSIGNS
    109  
                 
  11.1.    
Successors and Assigns Generally
    109  
  11.2.    
Assignments by Lenders
    110  
  11.3.    
Register
    112  
  11.4.    
Participations
    112  
  11.5.    
Limitations upon Participant Rights
    112  
  11.6.    
Certain Pledges
    113  
  11.7.    
Electronic Execution of Assignments
    113  
  11.8.    
Special Purpose Funding Vehicles
    113  
  11.9.    
Resignation as Issuing Lender
    114  
                 
ARTICLE XII  
MISCELLANEOUS
    114  
                 
  12.1.    
Amendments and Waivers
    114  
  12.2.    
Notices; Effectiveness; Electronic Communications
    116  
  12.3.    
No Waiver; Cumulative Remedies
    118  
  12.4.    
Expenses; Indemnity; Damage Waiver
    118  

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TABLE OF CONTENTS
(continued)
                 
   
 
    Page  
 
  12.5.    
Payments Set Aside
    120  
  12.6.    
Treatment of Certain Information; Confidentiality
    120  
  12.7.    
Set off
    121  
  12.8.    
Survival of Representations, Warranties and Agreements
    121  
  12.9.    
Marshalling
    122  
  12.10.    
Obligations Several; Independent Nature of Lenders’ Rights
    122  
  12.11.    
Notification of Addresses, Lending Offices; etc
    122  
  12.12.    
Counterparts
    122  
  12.13.    
Severability
    122  
  12.14.    
No Third Parties Benefited
    122  
  12.15.    
Governing Law and Jurisdiction; Waiver of Trial by Jury
    122  
  12.16.    
Interest Rate Limitation
    123  
  12.17.    
Replacement of Lenders
    124  
  12.18.    
No Advisory or Fiduciary Responsibility
    124  
  12.19.    
USA PATRIOT Act Notice
    125  
  12.20.    
ENTIRE AGREEMENT
    125  
  12.21.    
Delivery by Facsimile
    126  

v


 

SCHEDULES AND EXHIBITS
     
SCHEDULE   DESCRIPTION
SCHEDULE 2.1
  COMMITMENTS OF LENDERS
SCHEDULE 6
  DISCLOSURE SCHEDULE
SCHEDULE 12.2
  LENDING OFFICES/NOTICE ADDRESSES
     
EXHIBIT   DESCRIPTION
EXHIBIT A
  FORM OF TERM B NOTE
EXHIBIT B
  FORM OF REVOLVING CREDIT NOTE
EXHIBIT C
  FORM OF DELAYED DRAW TERM NOTE
EXHIBIT D
  FORM OF GUARANTY AGREEMENT
EXHIBIT E
  FORM OF PLEDGE AGREEMENT
EXHIBIT F
  FORM OF SECURITY AGREEMENT
EXHIBIT G
  FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT
EXHIBIT H
  FORM OF COMPLIANCE CERTIFICATE
EXHIBIT I
  FORM OF ASSIGNMENT AND ASSUMPTION
EXHIBIT J
  FORM OF CASH COLLATERAL AGREEMENT
EXHIBIT K
  FORM OF CLOSING DATE COMPLIANCE CERTIFICATE
EXHIBIT L
  FORM OF LEGAL OPINION OF SPECIAL COUNSEL
 
  FOR PARENT COMPANY AND BORROWER
EXHIBIT M
  FORM OF LEGAL OPINION OF SPECIAL FCC COUNSEL
 
  FOR PARENT COMPANY AND BORROWER


 

 

CREDIT AGREEMENT
     CREDIT AGREEMENT, dated as of November 21, 2006, among: REGENT BROADCASTING, LLC, a Delaware limited liability company (hereinafter, together with its successors in title and assigns, called the Borrower); REGENT COMMUNICATIONS, INC., a Delaware corporation (hereinafter, together with its successors in title and assigns, called the Parent Companyand, together with the Borrower, called, collectively, the Principal Companiesand, singly, a Principal Company); the several financial institutions from time to time party to this Agreement as lenders hereunder (collectively, Lendersand, individually, a Lender); BANK OF AMERICA, N.A., as Issuing Lender; BANK OF AMERICA, N.A., as Administrative Agent for the Lenders and the Issuing Lender; BANC OF AMERICA SECURITIES LLC and SUNTRUST ROBINSON HUMPHREY, as Joint Book Managers; SUNTRUST BANK, as Syndication Agent; GENERAL ELECTRIC CAPITAL CORPORATION, BMO CAPITAL MARKETS FINANCING, INC. and WELLS FARGO FOOTHILL, INC. as Co-Documentation Agents; and BANC OF AMERICA SECURITIES LLC, as Sole Lead Arranger.
RECITALS:
     A. The Principal Companies have requested the Lenders to make available to the Borrower senior secured credit facilities in the maximum aggregate principal amount of $240,000,000, consisting of a Senior Secured Term B Loan Facility in the aggregate principal amount of $115,000,000, a Senior Secured Revolving Credit Facility in the aggregate principal amount of $75,000,000, and a Senior Secured Delayed Draw Term Loan Facility in the aggregate principal amount of $50,000,000.
     B. The Lenders have agreed to make available to the Borrower the senior secured credit facilities so requested upon the terms and subject to the conditions contained in this Agreement.
     NOW, THEREFORE, in consideration of the mutual agreements, promises and covenants contained herein, the parties hereto hereby agree as follows:
ARTICLE I
DEFINITIONS
     1.1. Defined Terms. As used in this Agreement, the capitalized terms in the Preamble hereto shall have the meanings therein given to them, and the following words and terms shall have the meanings specified below:
     Acquisitionmeans, in relation to any Person, any transaction, or any series of related transactions, in which such Person (a) acquires any business or all or any substantial part of the Property of any other Person or any division or other business unit thereof, whether through purchase of assets, merger or otherwise, (b) directly or indirectly acquires ownership or control of at least a majority (in number of votes) of the Voting Interests of any other Person, or (c) directly or indirectly acquires ownership or control of at least a majority of the Equity Interests of any other Person.


 

 

  -2-
     Acquisition Documentationmeans, collectively, in relation to any Acquisition undertaken and completed or (as the case may be) to be undertaken and completed by any of the Credit Parties: (a) the purchase agreements, merger agreements or other similar Instruments pursuant to which such Acquisition is or (as the case may be) is to be effected; and (b) all schedules, exhibits, annexes and amendments thereto and all material side letters and agreements affecting the terms thereof or to be entered into in connection therewith.
     Acthas the meaning specified in Section 12.19.
     Additional Lenderhas the meaning specified in Section 2.15(c).
     Administrative Agentmeans Bank of America, N.A., in its capacity as administrative agent for the Issuing Lender and the Lenders under this Agreement and the other Loan Documents, and any successor to such administrative agent.
     Administrative Agent’s Officemeans the Administrative Agent’s address and, as appropriate, account as set forth on Schedule 12.2, or such other address or account as the Administrative Agent may from time to time notify to the Borrower and the Lenders.
     Administrative Questionnairemeans an Administrative Questionnaire in a form supplied by the Administrative Agent.
     Affiliatemeans, with respect to any Person, any other Person (a) directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person, or (b) that directly or indirectly owns or controls more than 10% of any class of the Equity Interests in such Person. A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or to cause the direction of the management and policies of such other Person, whether through the ownership of Voting Interests, by contract or otherwise. For purposes of this Agreement and the other Loan Documents, (i) the Parent Company shall be deemed to be an Affiliate of the Borrower and each of the other Subsidiaries of the Parent Company, (ii) the Borrower shall not be deemed to be an Affiliate of any of the other Subsidiaries of the Parent Company, (iii) none of the Subsidiaries of the Parent Company shall be deemed to be an Affiliate of the Borrower or any of the other Subsidiaries of the Parent Company, and (iv) none of the Lenders, the Issuing Lender or the Administrative Agent shall be deemed to be an Affiliate of the Parent Company, the Borrower or any of their Subsidiaries.

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