Credit Agreement (2007)Full Document 

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Execution

 


CREDIT AGREEMENT

dated as of

January 31, 2007

between

BALDOR ELECTRIC COMPANY

The SUBSIDIARY GUARANTORS Party Hereto

The LENDERS Party Hereto

and

BNP PARIBAS,

as Administrative Agent

SUNTRUST BANK,

as Syndication Agent

 


$1,200,000,000

 


BNP PARIBAS SECURITIES CORP. AND SUNTRUST CAPITAL MARKETS, INC.

as Joint-Lead Arrangers and Joint-Bookrunners

 



TABLE OF CONTENTS

 

      Page

ARTICLE I DEFINITIONS

   1

SECTION 1.01.

   Defined Terms    26

SECTION 1.02.

   Classification of Loans and Borrowings    26

SECTION 1.03.

   Terms Generally    26

SECTION 1.04.

   Accounting Terms; GAAP    27

ARTICLE II THE CREDITS

   27

SECTION 2.01.

   The Commitments    28

SECTION 2.02.

   Loans and Borrowings    29

SECTION 2.03.

   Requests for Syndicated Borrowings    30

SECTION 2.04.

   Swingline Loans    31

SECTION 2.05.

   Letters of Credit    36

SECTION 2.06.

   Funding of Borrowings    37

SECTION 2.07.

   Interest Elections    38

SECTION 2.08.

   Termination and Reduction of the Commitments    39

SECTION 2.09.

   Repayment of Loans; Evidence of Debt    41

SECTION 2.10.

   Prepayment of Loans    41

SECTION 2.11.

   Fees    45

SECTION 2.12.

   Interest    46

SECTION 2.13.

   Alternate Rate of Interest    47

SECTION 2.14.

   Increased Costs    47

SECTION 2.15.

   Break Funding Payments    49

SECTION 2.16.

   Taxes    49

SECTION 2.17.

   Payments Generally; Pro Rata Treatment; Sharing of Set-offs    50

SECTION 2.18.

   Mitigation Obligations; Replacement of Lenders    53

ARTICLE III GUARANTEE

   54

SECTION 3.01.

   The Guarantee    54

SECTION 3.02.

   Obligations Unconditional    55

SECTION 3.03.

   Reinstatement    55

SECTION 3.04.

   Subrogation    55

SECTION 3.05.

   Remedies    56

SECTION 3.06.

   Instrument for the Payment of Money    56

SECTION 3.07.

   Continuing Guarantee    56

SECTION 3.08.

   Rights of Contribution    56

SECTION 3.09.

   General Limitation on Guarantee Obligations    57

ARTICLE IV REPRESENTATIONS AND WARRANTIES

   57

SECTION 4.01.

   Organization; Powers    58

SECTION 4.02.

   Authorization; Enforceability    58

SECTION 4.03.

   Governmental Approvals; No Conflicts    58

 

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          Page

SECTION 4.04.

   Financial Condition; No Material Adverse Change    58

SECTION 4.05.

   Properties    59

SECTION 4.06.

   Litigation and Environmental Matters    60

SECTION 4.07.

   Compliance with Laws and Agreements    60

SECTION 4.08.

   Investment Company Status    60

SECTION 4.09.

   Taxes    60

SECTION 4.10.

   ERISA    60

SECTION 4.11.

   Disclosure    61

SECTION 4.12.

   Use of Credit    61

SECTION 4.13.

   Material Agreements and Liens    61

SECTION 4.14.

   Labor Matters    61

SECTION 4.15.

   Subsidiaries and Investments    62

SECTION 4.16.

   Real Property    63

SECTION 4.17.

   Collateral; Security Interest    63

SECTION 4.18.

   Solvency    63

SECTION 4.19.

   Purchase Agreement    64

ARTICLE V CONDITIONS

   64

SECTION 5.01.

   Effective Date    64

SECTION 5.02.

   Each Credit Event    69

ARTICLE VI AFFIRMATIVE COVENANTS

   70

SECTION 6.01.

   Financial Statements and Other Information    70

SECTION 6.02.

   Notices of Material Events    71

SECTION 6.03.

   Existence; Conduct of Business    72

SECTION 6.04.

   Payment of Obligations    72

SECTION 6.05.

   Maintenance of Properties; Insurance    72

SECTION 6.06.

   Books and Records; Inspection Rights    73

SECTION 6.07.

   Compliance with Laws and Other Obligations    73

SECTION 6.08.

   Use of Proceeds and Letters of Credit    73

SECTION 6.09.

   Hedging Agreements    73

SECTION 6.10.

   Certain Obligations Respecting Subsidiaries; Further Assurances    74

SECTION 6.11.

   Post-Closing Actions; Etc.    75

ARTICLE VII NEGATIVE COVENANTS

   76

SECTION 7.01.

   Indebtedness    76

SECTION 7.02.

   Liens    77

SECTION 7.03.

   Fundamental Changes    78

SECTION 7.04.

   Lines of Business    80

SECTION 7.05.

   Investments    80

SECTION 7.06.

   Restricted Payments    81

SECTION 7.07.

   Transactions with Affiliates    82

 

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SECTION 7.08.

   Restrictive Agreements    82

SECTION 7.09.

   Certain Financial Covenants    83

SECTION 7.10.

   Prepayments of Junior Indebtedness    84

SECTION 7.11.

   Sale and Leasebacks    85

ARTICLE VIII EVENTS OF DEFAULT

   86

ARTICLE IX THE ADMINISTRATIVE AGENT

   89

ARTICLE X MISCELLANEOUS

   92

SECTION 10.01.

   Notices    92

SECTION 10.02.

   Waivers; Amendments    93

SECTION 10.03.

   Expenses; Indemnity; Damage Waiver    94

SECTION 10.04.

   Successors and Assigns    96

SECTION 10.05.

   Survival    100

SECTION 10.06.

   Counterparts; Integration; Effectiveness    100

SECTION 10.07.

   Severability    100

SECTION 10.08.

   Right of Setoff    100

SECTION 10.09.

   Governing Law; Jurisdiction; Etc.    101

 

SCHEDULE I

   -    Revolving Credit Commitments

SCHEDULE II

   -    Material Agreements and Liens

SCHEDULE III

   -    Restrictive Agreements

SCHEDULE IV

   -    Litigation

SCHEDULE V

   -    Environmental Matters

SCHEDULE VI

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