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364-DAY SENIOR BRIDGE LOAN AGREEMENT

Bridge Loan Agreement

364-DAY SENIOR BRIDGE LOAN AGREEMENT You are currently viewing:
This Bridge Loan Agreement involves

TYCO INTERNATIONAL LTD., | TYCO ELECTRONICS LTD., | DEUTSCHE BANK SECURITIES, INC. | CITIGROUP GLOBAL MARKETS INC.

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Title: 364-DAY SENIOR BRIDGE LOAN AGREEMENT
Governing Law: New York     Date: 4/27/2007
Industry: CONGLM     Sector: CONGLO

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Exhibit 10

Exhibit 10.3

CONFORMED COPY


 

Published CUSIP Number:                       

364-DAY SENIOR BRIDGE LOAN AGREEMENT
(Electronics Businesses)

dated as of

April 25, 2007

among

TYCO INTERNATIONAL GROUP S.A.,
Initial Borrower

TYCO INTERNATIONAL LTD.,
Initial Guarantor

TYCO ELECTRONICS GROUP S.A.,
E Borrower

TYCO ELECTRONICS LTD.,
E Guarantor

The Lenders Party Hereto

and

BANK OF AMERICA, N.A.
as Administrative Agent

BANC OF AMERICA SECURITIES LLC and DEUTSCHE BANK SECURITIES, INC.
as Joint Bookrunners and Joint Lead Arrangers

CITIGROUP GLOBAL MARKETS INC.
BANC OF AMERICA SECURITIES LLC
as Global Coordinators

 

 



TABLE OF CONTENTS

 

 

 

 

Page

ARTICLE I

Definitions

 

1

Section 1.01

 

Defined Terms

 

1

Section 1.02

 

Classification of Loans and Borrowings

 

19

Section 1.03

 

Terms Generally

 

19

Section 1.04

 

Accounting Terms; GAAP

 

20

ARTICLE II

The Credits

 

20

Section 2.01

 

Commitments

 

20

Section 2.02

 

Loans and Borrowings

 

20

Section 2.03

 

Requests for Borrowings

 

21

Section 2.04

 

[Intentionally omitted]

 

22

Section 2.05

 

Funding of Borrowings

 

22

Section 2.06

 

Interest Elections

 

23

Section 2.07

 

Termination and Reduction of Commitments

 

24

Section 2.08

 

Repayment of Loans; Evidence of Debt

 

25

Section 2.09

 

Prepayment of Loans; Mandatory Reduction of Commitments

 

26

Section 2.10

 

Fees

 

27

Section 2.11

 

Interest

 

27

Section 2.12

 

Calculation of Interest and Fees

 

28

Section 2.13

 

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

 

28

ARTICLE III

Representations and Warranties

 

30

Section 3.01

 

Organization; Powers

 

30

Section 3.02

 

Authorization; Enforceability

 

30

Section 3.03

 

Governmental Approvals; No Conflicts

 

30

Section 3.04

 

Financial Condition; No Material Adverse Change

 

30

Section 3.05

 

Litigation and Environmental Matters

 

31

Section 3.06

 

Investment Company Status

 

32

Section 3.07

 

Taxes

 

32

Section 3.08

 

ERISA

 

32

Section 3.09

 

Disclosure

 

32

Section 3.10

 

Subsidiaries

 

33

Section 3.11

 

Margin Regulations

 

33

ARTICLE IV

Conditions

 

33

Section 4.01

 

Effective Date

 

33

Section 4.02

 

Each Borrowing

 

34

ARTICLE V

Covenants

 

35

Section 5.01

 

Financial Statements and Other Information

 

35

Section 5.02

 

Existence; Conduct of Business

 

37

Section 5.03

 

Maintenance of Properties; Insurance

 

37

 

 

 

 

 

 

 

 



 

Section 5.04

 

Books and Records; Inspection Rights

 

37

Section 5.05

 

Compliance with Laws

 

38

Section 5.06

 

Use of Proceeds

 

38

Section 5.07

 

Liens

 

38

Section 5.08

 

Fundamental Changes

 

40

Section 5.09

 

Financial Covenant

 

41

Section 5.10

 

Limitation on Restrictions on Subsidiary Dividends and Other Distributions

 

42

Section 5.11

 

Transactions with Affiliates

 

43

Section 5.12

 

Subsidiary Guarantors

 

44

Section 5.13

 

Subsidiary Debt

 

45

ARTICLE VI

Events of Default

 

45

ARTICLE VII

The Administrative Agent

 

48

ARTICLE VIII

Guarantee

 

51

Section 8.01

 

The Guarantee

 

51

Section 8.02

 

Guarantee Unconditional

 

51

Section 8.03

 

Discharge Only upon Payment in Full; Reimbursement in Certain Circumstances

 

52

Section 8.04

 

Waiver by the Guarantor

 

52

Section 8.05

 

Subrogation

 

52

Section 8.06

 

Stay of Acceleration

 

52

ARTICLE IX

Yield Protection, Illegality and Taxes

 

52

Section 9.01

 

Alternate Rate of Interest

 

52

Section 9.02

 

Illegality

 

53

Section 9.03

 

Increased Costs

 

53

Section 9.04

 

Break Funding Payments

 

54

Section 9.05

 

Taxes

 

54

Section 9.06

 

Matters Applicable to all Requests for Compensation

 

56

Section 9.07

 

Mitigation Obligations

 

56

ARTICLE X

Miscellaneous

 

56

Section 10.01

 

Notices

 

56

Section 10.02

 

Waivers; Amendments

 

58

Section 10.03

 

Expenses; Indemnity; Damage Waiver

 

59

Section 10.04

 

Successors and Assigns

 

60

Section 10.05

 

Survival

 

65

Section 10.06

 

Counterparts; Integration; Effectiveness

 

65

Section 10.07

 

Severability

 

66

Section 10.08

 

Right of Setoff

 

66

Section 10.09

 

Governing Law; Jurisdiction; Consent to Service of Process

 

66

Section 10.10

 

Waiver of Jury Trial

 

67

Section 10.11

 

Waiver of Immunities

 

67

 

 

 

 

 

 

 

2

 



 

Section 10.12

 

Judgment Currency

 

68

Section 10.13

 

Headings

 

68

Section 10.14

 

Confidentiality

 

68

Section 10.15

 

Electronic Communications

 

69

Section 10.16

 

USA PATRIOT Act Notice

 

71

SCHEDULES:

Schedule A - Existing Indenture Debt
Schedule 1.01 - Pricing Grid
Schedule 2.01 - Commitments
Schedule 5.09 - Cross Guarantees
Schedule 10.01 - Administrative Agent’s Office; Lender Notice Addresses

EXHIBITS:

Exhibit A - Form of Note
Exhibit B - Form of Assignment and Assumption
Exhibit C-1 - Form of opinion of general counsel of Guarantor
Exhibit C-2 - Form of opinion of special Luxembourg counsel
Exhibit C-3 - Form of opinion of special Bermuda counsel
Exhibit C-4 - Form of opinion of special New York counsel
Exhibit D - Form of Borrower Assumption Agreement
Exhibit E - Form of Subsidiary Guaranty
Exhibit F - Form of Borrowing Request
Exhibit G - Form of Guarantor Assumption Agreement
Exhibit H-1 - Form of opinion of special Luxembourg counsel (Borrower Assumption
                      Agreement)
Exhibit H-2 - Form of opinion of special New York counsel (Borrower Assumption Agreement)
Exhibit I-1 - Form of opinion of special Bermuda counsel (Guarantor Assumption Agreement)
Exhibit I-2 - Form of opinion of special New York counsel (Guarantor Assumption Agreement)

 

3

 



 

364-DAY SENIOR BRIDGE LOAN AGREEMENT (Electronics Businesses) dated as of April 25, 2007 (the “Closing Date”), among TYCO INTERNATIONAL GROUP S.A., a Luxembourg company (the “Initial Borrower”), TYCO INTERNATIONAL LTD., a Bermuda company (the “Initial Guarantor”), TYCO ELECTRONICS GROUP S.A., a Luxembourg company (the “E Borrower”), TYCO ELECTRONICS LTD., a Bermuda company (the “E Guarantor”), the LENDERS party hereto, and BANK OF AMERICA, N.A., as Administrative Agent.

The parties hereto agree as follows:

ARTICLE I

Definitions

Section 1.01         Defined Terms.  As used in this Agreement, the following terms have the meanings specified below:

ABR”, when used in reference to any Loan or Borrowing, means that such Loan, or the Loans comprising such Borrowing, bear interest at a rate per annum equal to the Alternate Base Rate.

Accumulated Other Comprehensive (Loss) Income” on any date means the amount of “Accumulated Other Comprehensive (Loss) Income” of the Guarantor and its Subsidiaries as of the end of the most recently completed fiscal quarter of the Guarantor prior to such date of determination determined on a consolidated basis in accordance with GAAP.

Administrative Agent” means Bank of America, in its capacity as administrative agent for the Lenders under this Agreement and the other Loan Documents, or any successor administrative agent.

Administrative Agent’s Office” means the office address, facsimile number, electronic mail address, telephone number and account information set forth on Schedule 10.01 with respect to the Administrative Agent or such other address, facsimile number, electronic mail address, telephone number or account information as shall be designated by the Administrative Agent in a notice to the Borrower and the Lenders.

Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Person specified.  For purposes of this definition, the term “control” (including the terms “controlling” and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.

Allocated Existing Credit Agreement Debt” means the portion of the Debt under the Existing Tyco Credit Agreements to be allocated to the E Borrower in connection with the Separation Transactions, and which may be repaid with the proceeds of the Loans.

 



 

Allocated Existing Indenture Debt” means the portion of the Existing Indenture Debt to be allocated to the E Borrower in connection with the Separation Transactions, and which may be repaid with the proceeds of the Loans.

Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a) the Base Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus ½ of 1%.  Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Base Rate or the Federal Funds Effective Rate, respectively.

Applicable Margin” means, with respect to any Eurodollar Loan, either (i) at any time during which less than 50% of the aggregate Commitments are being utilized, the rate per annum set forth on the Pricing Grid opposite the reference to the applicable Index Debt Rating under the heading “Applicable Margin” and under the sub-heading “Less than 50% of the Commitments Utilized”, or (ii) at any time during which 50% or more of the then applicable aggregate Commitments are being utilized, the rate per annum set forth on the Pricing Grid opposite the reference to the applicable Index Debt Rating under the heading “Applicable Margin” and under the sub-heading “50% or More of the Commitments Utilized”; any change in the Applicable Margin resulting from an Index Debt Rating Change or an aggregate Commitment utilization change shall be determined in accordance with Schedule 1.01 and shall be effective on the date of such Index Debt Rating Change or utilization change, as the case may be.

Applicable Percentage” means, with respect to any Lender, the percentage (rounded to the ninth decimal) of the total Commitments in effect at any given time represented by such Lender’s Commitment.  If the Commitments have terminated or expired, the Applicable Percentages shall be determined based upon the outstanding principal amounts of the Loans made by the respective Lenders.

Approved Fund” has the meaning assigned to such term in Section 10.04.

Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 10.04), and accepted by the Administrative Agent, in the form of Exhibit B or any other form approved by the Administrative Agent.

Availability Period” means the period from and including the Effective Date to but excluding the earliest of (a) the Maturity Date, (b) the date of the consummation of the Electronics Spin Distribution and (c) the date of any earlier termination of the Commitments.

Bank of America” means Bank of America, N.A.

Base Rate” means the rate of interest per annum publicly announced from time to time by Bank of America as its base