Credit Agreement (2004)Full Document 

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CREDIT AGREEMENT

 

dated as of

 

December 13, 2004

 

between

 

PACIFICARE HEALTH SYSTEMS, INC.

 

The SUBSIDIARY GUARANTORS Party Hereto

 

The LENDERS Party Hereto

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

and

 

JPMORGAN CHASE BANK, N.A.,

as Collateral Agent

 


 

$825,000,000

 


 

J.P. MORGAN SECURITIES INC.

as Sole Lead Arranger and Sole Bookrunner

 

MORGAN STANLEY SENIOR FUNDING, INC.,

as Syndication Agent and Co-Arranger

 

and

CIBC, INC., THE BANK OF NEW YORK,

and WELLS FARGO BANK, N.A.

as Co-Documentation Agents

 



 

TABLE OF CONTENTS

 

     Page

ARTICLE I  DEFINITIONS

   1

SECTION 1.01. Defined Terms

   1

SECTION 1.02. Terms Generally

   26

SECTION 1.03. Accounting Terms; GAAP

   26

SECTION 1.04. Classes and Types of Loans

   27

ARTICLE II  THE CREDITS

   27

SECTION 2.01. Commitments

   27

SECTION 2.02. Loans and Borrowings

   29

SECTION 2.03. Requests for Borrowings

   30

SECTION 2.04. Letters of Credit

   31

SECTION 2.05. Funding of Borrowings

   35

SECTION 2.06. Interest Elections

   36

SECTION 2.07. Termination and Reduction of the Commitments

   37

SECTION 2.08. Repayment of Loans; Evidence of Debt

   38

SECTION 2.09. Prepayment of Loans

   41

SECTION 2.11. Interest

   45

SECTION 2.12. Alternate Rate of Interest

   46

SECTION 2.13. Increased Costs

   46

SECTION 2.14. Break Funding Payments

   47

SECTION 2.15. Taxes

   48

SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Set–offs

   50

SECTION 2.17. Mitigation Obligations; Replacement of Lenders

   52

ARTICLE III  GUARANTEE

   53

SECTION 3.01. The Guarantee

   53

SECTION 3.02. Obligations Unconditional

   54

SECTION 3.03. Reinstatement

   55

SECTION 3.04. Subrogation

   55

SECTION 3.05. Remedies

   55

SECTION 3.06. Instrument for the Payment of Money

   55

SECTION 3.07. Continuing Guarantee

   55

SECTION 3.08. Rights of Contribution

   55

SECTION 3.09. General Limitation on Guarantee Obligations

   56

SECTION 3.10. Release of Subsidiary Guarantor

   56

ARTICLE IV  REPRESENTATIONS AND WARRANTIES

   57

SECTION 4.01. Organization; Powers

   57

SECTION 4.02. Authorization; Enforceability

   57

SECTION 4.03. Governmental Approvals; No Conflicts

   57

 


SECTION 4.04. Financial Condition; No Material Adverse Change

   58

SECTION 4.05. Properties

   58

SECTION 4.06. Litigation and Environmental Matters

   59

SECTION 4.07. Compliance with Laws and Agreements

   59

SECTION 4.08. Investment and Holding Company Status

   60

SECTION 4.09. Taxes

   60

SECTION 4.10. ERISA

   60

SECTION 4.11. Disclosure

   60

SECTION 4.12. Use of Credit

   60

SECTION 4.13. Indebtedness and Liens

   60

SECTION 4.14. Subsidiaries and Investments

   61

SECTION 4.15. Perfection and Priority of Security Interests

   61

SECTION 4.16. Solvency

   62

ARTICLE V  CONDITIONS

   62

SECTION 5.01. Effective Date

   62

SECTION 5.02. Each Credit Event

   66

ARTICLE VI  AFFIRMATIVE COVENANTS

   67

SECTION 6.01. Financial Statements and Other Information

   67

SECTION 6.02. Notices of Certain Events

   69

SECTION 6.03. Existence; Conduct of Business

   70

SECTION 6.04. Payment of Obligations

   71

SECTION 6.05. Maintenance of Properties; Insurance

   71

SECTION 6.06. Books and Records; Inspection Rights

   71

SECTION 6.07. Compliance with Laws

   72

SECTION 6.08. Use of Proceeds and Letters of Credit

   72

SECTION 6.09. Certain Obligations Respecting Subsidiaries and Collateral; Further Assurances

   72

ARTICLE VII  NEGATIVE COVENANTS

   77

SECTION 7.01. Indebtedness

   77

SECTION 7.02. Liens

   79

SECTION 7.03. Fundamental Changes

   81

SECTION 7.04. Dispositions

   81

SECTION 7.05. Investments

   83

SECTION 7.06. Restricted Payments

   85

SECTION 7.07. Transactions with Affiliates

   86

SECTION 7.08. Restrictive Agreements

   87

SECTION 7.09. Certain Financial Covenants

   88

SECTION 7.10. Payments, Redemptions or Repurchases of Subordinated Indebtedness

   88

SECTION 7.11. Modifications of Certain Documents

   88

 

– ii –


ARTICLE VIII  EVENTS OF DEFAULT

   89

ARTICLE IX  THE AGENTS

   92

ARTICLE X  MISCELLANEOUS

   94

SECTION 10.01. Notices

   94

SECTION 10.02. Waivers; Amendments

   95

SECTION 10.03. Expenses; Indemnity; Damage Waiver

   97

SECTION 10.04. Successors and Assigns

   99

SECTION 10.05. Survival

   101

SECTION 10.06. Counterparts; Integration; Effectiveness

   102

SECTION 10.07. Severability

   102

SECTION 10.08. Right of Setoff

   102

SECTION 10.09. Governing Law; Jurisdiction; Etc.

   102

SECTION 10.10. WAIVER OF JURY TRIAL

   103

SECTION 10.11. Headings

   103

SECTION 10.12. Treatment of Certain Information; Confidentiality

   104

SECTION 10.13. USA PATRIOT Act

   104

 

– iii –


SCHEDULE 1.01

  -      Commitments

SCHEDULE 2.04(m)

  -      Existing Letters of Credit

SCHEDULE 4.05(a)(i)

  -      Property Generally

SCHEDULE 4.05(a)

  -      Real Property

SCHEDULE 4.05(b)

  -      Intellectual Property

SCHEDULE 4.06(a)

  -      Litigation

SCHEDULE 4.06(b)

  -      Environmental Matters

SCHEDULE 4.07

  -      Compliance with Laws and Agreements

SCHEDULE 4.09

  -      Taxes

SCHEDULE 4.13(a)

  -      Indebtedness

SCHEDULE 4.13(b)

  -      Liens

SCHEDULE 4.14(a)

  -      Subsidiaries

SCHEDULE 4.14(b)

  -      Investments

SCHEDULE 7.04

  -      Dispositions

SCHEDULE 7.08

  -      Restrictive Agreements

 

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