Exhibit 4.10
INTERCREDITOR AGREEMENT
This
INTERCREDITOR AGREEMENT (this “Agreement”) is dated as
of October 25, 2004, among The Bank of New York Trust Company,
N.A., as trustee (together with any successor thereto exercising
substantially the same rights and powers, the “Trustee”
or the “First Priority Agent”) under the First Priority
Indenture (as defined below) and the Security Documents (as defined
in the First Priority Indenture), AirGate PCS, Inc., a Delaware
corporation (the “Company”), and certain of the
Company’s subsidiaries that have guaranteed the Notes (as
defined below) (together with any future subsidiary guarantors, the
“Guarantors” and together with the Company, the
“Issuers”), and The Bank of New York (the “Second
Priority Agent”) as trustee under the indenture (the
“Second Priority Indenture”) governing the
$160.0 million aggregate principal amount of Senior
Subordinated Secured Notes due September 1, 2009 (the
“Second Priority Notes”), dated February 4, 2004
by and among the Company, the guarantors named therein and The Bank
of New York as trustee.
W I T N E S S E T H :
WHEREAS,
the Company is issuing $175,000,000 aggregate principal amount of
its First Priority Senior Secured Floating Rate Notes due 2011
(together with any additional First Priority Senior Secured
Floating Rate Notes due 2011 of the Company issued pursuant to the
First Priority Indenture (as defined herein) including, without
limitation, in exchange for outstanding notes, the
“Notes”) and the Guarantors have guaranteed the Notes,
in each case pursuant to the First Priority Indenture. All of the
Issuers’ obligations under the Notes and the other Indenture
Documents (as defined below) are secured by first priority liens on
all of the now existing and hereafter acquired real and personal
property of the Issuers now or hereafter made subject to the Lien
of the Indenture Documents (the
“Collateral”);
WHEREAS,
all of the Issuers’ obligations under the Second Priority
Notes and the other Second Priority Note Documents (as defined
below) are secured by second priority liens on all of the now
existing and hereafter acquired real and personal property of the
Issuers now or hereafter made subject to the Lien of the Second
Priority Note Documents;
WHEREAS,
the Issuers have requested that the First Priority Agent and the
Second Priority Agent enter into this Agreement concerning their
respective rights with respect to the priority of their respective
security interests in and liens on the Collateral; and
WHEREAS,
the terms of the First Priority Indenture authorize the First
Priority Agent to enter into an intercreditor agreement in the form
of this Agreement, and the terms of the Second Priority Indenture
authorize the Second Priority Agent to enter into an intercreditor
agreement in the form of this Agreement, in each case upon
satisfaction by the Issuers of certain conditions precedent,
including without limitation, the conditions set forth in Section
10.10 of the Second Priority Indenture.
NOW,
THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which hereby
are acknowledged, the parties hereto hereby agree as
follows:
1. Definitions.
(a) Unless
otherwise defined herein, terms defined in the First Priority
Indenture and under the Second Priority Indenture have the meanings
given to them in such documents.
(b) The
following terms shall have the following meanings:
“Agreement”
means this Intercreditor Agreement as amended, supplemented or
otherwise modified from time to time in accordance with the terms
hereof.
“Bankruptcy
Code” shall mean Title 11 of the United States Code, as
amended from time to time and any successor statute and all rules
and regulations promulgated thereunder.
“Collateral”
shall mean the assets of the Company and the Guarantors now or
hereafter owned or acquired and all proceeds thereof subject to a
security interest that secures payment or performance of the Senior
Obligations and the Second Priority Obligations.
“First
Priority Indenture” means the Indenture, dated as of October
25, 2004, by and between the Company, the Guarantors and the
Trustee, and shall include any indenture or similar document
entered into by the Company and any trustee to replace the First
Priority Indenture in whole or in part.
“Indenture
Documents” means the First Priority Indenture and the Senior
Security Documents.
“Issuers”
shall mean the Company and the Guarantors.
“Proceeding”
shall mean any voluntary or involuntary case or proceeding under
the Bankruptcy Code with respect to the Company or any of the
Guarantors and any other voluntary or involuntary insolvency,
bankruptcy, receivership, custodianship, liquidation, dissolution,
reorganization, assignment for the benefit of creditors,
appointment of a custodian, receiver, trustee or other officer with
similar powers or any other proceeding for the liquidation,
dissolution or other winding up of the Company or any of the
Guarantors.
“Second
Priority Guarantee” shall mean the guarantee of the Second
Priority Obligations by a Guarantor executed by such Guarantor
pursuant to the Second Priority Indenture.
“Second
Priority Note Documents” means the Second Priority Indenture,
the Second Priority Notes issued thereunder, the Second Priority
Guarantees and the Second Priority Security Documents.
“Second
Priority Notes” has the meaning given in the recitals
hereto.
“Second
Priority Obligations” means the Obligations (as defined in
the Second Priority Indenture) with respect to the Second Priority
Notes and the other Second Priority Note Documents and shall
include, without limitation, the unpaid principal of and interest
owing under the Second Priority Notes and all other obligations and
liabilities of the Company or any Guarantor thereunder and under
the other Second Priority Note Documents (including, without
limitation, interest accrued at the then applicable rate provided
in the Second Priority Notes after the filing of a petition in
bankruptcy or the commencement of any Proceeding, whether or not a
claim for post-filing or post-petition interest is allowed in such
proceeding), whether direct or indirect, absolute or contingent,
due or to become due, or now existing or hereafter incurred, which
may arise under, out of, or in connection with, the Second Priority
Note Documents, in each case whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise, including, without limitation, all fees and
disbursements of counsel to the Second Priority Agent and fees,
expenses and indemnities of the Second Priority Agent that are
required to be paid pursuant to the terms of the Second Priority
Indenture or any other Second Priority Note Document. To the extent
any payment with respect to the Second Priority Obligations
(whether by or on behalf of the Company, as proceeds of security,
enforcement of any right of setoff or otherwise) is declared to be
fraudulent or preferential in any respect, set aside or required to
be paid to a debtor in possession, trustee, receiver or similar
Person, then the obligation or part thereof originally intended to
be satisfied shall be deemed to be reinstated and outstanding as if
such payment had not occurred.
“Second
Priority Security Documents” means any and all documents
providing for the grant of security to secure the Second Priority
Obligations.
“Senior
Lenders” shall mean the holders of the Notes.
“Senior
Obligations” means the Obligations (as defined in the First
Priority Indenture) of the Issuers with respect to the Notes and
the other Indenture Documents and shall include, without
limitation, the unpaid principal of and interest owing under the
Notes and all other obligations and liabilities of the Company or
any Guarantor thereunder and under the other Indenture Documents
(including, without limitation,
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interest accrued at the then
applicable rate provided in the Notes after the filing of a
petition in bankruptcy or the commencement of any Proceeding,
whether or not a claim for post-filing or post-petition interest is
allowed in such proceeding), whether direct or indirect, absolute
or contingent, due or to become due, or now existing or hereafter
incurred, which may arise under, out of, or in connection with, the
Indenture Documents, in each case whether on account of principal,
interest, reimbursement obligations, fees, indemnities, costs,
expenses or otherwise, including, without limitation, all fees and
disbursements of counsel to the First Priority Agent and fees,
expenses and indemnities of the First Priority Agent that are
required to be paid pursuant to the terms of the First Priority
Indenture or any other Indenture Document. To the extent any
payment with respect to the Senior Obligations (whether by or on
behalf of the Company, as proceeds of security, enforcement of any
right of setoff or otherwise) is declared to be fraudulent or
preferential in any respect, set aside or required to be paid to a
debtor in possession, trustee, receiver or similar Person, then the
obligation or part thereof originally intended to be satisfied
shall be deemed to be reinstated and outstanding as if such payment
had not occurred.
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“Senior
Security Documents” shall mean the Security Documents (as
defined in the First Priority Indenture) under the First Priority
Indenture.
(c) Unless
the context requires otherwise, (i) any definition of or
reference to any agreement, instrument or other document herein
shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented or
otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth in the First Priority
Indenture or the Second Priority Indenture), (ii) any
reference herein to any Person shall be construed to include such
Person’s successors and assigns, and (iii) the words
“hereof,” “herein” and
“hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to
any particular provision of this Agreement, and section and
paragraph references are to this Agreement unless otherwise
specified.
(d) The meanings given to terms
defined herein shall be equally applicable to both the singular and
plural forms of such terms.
2. Releases.
(a) If
in connection with:
(i) the
exercise of the First Priority Agent’s remedies in respect of
the Collateral provided for in Section 4, including any sale,
lease, exchange, transfer or other disposition of such Collateral;
or
(ii) subject
to Section 2(c) below, any sale, lease, exchange, transfer or other
disposition of Collateral permitted or not prohibited under the
First Priority Indenture (whether or not an Event of Default, as
defined therein, has occurred and is continuing) and permitted or
not prohibited under the Second Priority Indenture, the Trustee,
for itself or on behalf of any of the Senior Lenders, releases any
of its Liens on any part of the Collateral (or any Guarantor from
its obligations under its guaranty of the Senior Obligations), the
Liens, if any, of the Trustee on such Collateral (and the
obligations of such Guarantor under its guaranty of the Second
Priority Obligations) shall be automatically, unconditionally and
simultaneously released (except as provided in the last sentence of
Section 2(d)) and the Second Priority Agent, for itself or on
behalf of any such holder of Second Priority Notes, shall promptly
execute and deliver to the First Priority Agent or the Company such
termination statements, releases and other documents as the First
Priority Agent or the Company may request to effectively confirm
such release.
(b) The
Second Priority Agent, for itself and on behalf of the holders of
Second Priority Notes, hereby irrevocably constitutes and appoints
the First Priority Agent and any officer or agent of the First
Priority Agent, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority
in the place and stead of the Second Priority Agent or such holder
or in the First Priority Agent’s own name,
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from time to time in the
Trustee’s discretion, for the purpose of carrying out the
terms of this Section 2, to take any and all appropriate
action and to execute and record any and all documents and
instruments which may be provided to it as necessary or desirable
to accomplish the purposes of this Section 2, including,
without limitation, any financing statements, endorsements or other
instruments or transfer or release.
(c) Notwithstanding
anything to the contrary contained herein, in the event that the
First Priority Agent releases its Liens on the Collateral because
the Senior Obligations have been paid in full, neither the Second
Priority Agent nor the holders of Second Priority Notes shall be
obligated to release their Liens on any Collateral owned by the
Issuers after giving effect to such payment and termination (and
any sale, transfer or other disposition of Collateral occurring in
connection therewith contemplated under this Agreement); provided,
however, that in connection with any refinancing or replacement of
all or any portion of the Senior Obligations prior to the
occurrence of a Proceeding, the Second Priority Agent, on behalf of
each holder of Second Priority Notes, shall, if requested by the
Company or the existing or new holders of the Senior Obligations,
execute an intercreditor agreement on substantially the same terms
as this Agreement with the lenders under such refinancing or
replacement. Furthermore, if the Senior Obligations have been paid
in full in connection with any sale, transfer or other disposition
of Collateral contemplated under this Agreement, the Liens held by
the holders of the Second Priority Notes shall not be automatically
released with respect to the proceeds of such sale, transfer or
other disposition of Collateral which remain after the Senior
Obligations have been paid in full.
(d) Notwithstanding
any provision to the contrary contained in this Section 2, no
portion of the Collateral may be released from the Second Priority
Note Documents unless Company shall have complied with the
provisions of Section 314(c) and 314(d) of the Trust Indenture Act,
if applicable, and shall have furnished evidence of such compliance
(or evidence that no compliance is needed) satisfactory to the
Second Priority Agent and the First Priority Agent.
3. Proceedings.
In the event of any Proceeding involving any of the
Issuers:
(a) If
the Second Priority Agent has failed to file claims or proofs of
claim with respect to the Second Priority Notes in any Proceeding
earlier than five days prior to the deadline for any such filing,
the holders of the Second Priority Notes hereby appoint and empower
First Priority Agent to file such claims or proofs of claim;
provided, that First Priority Agent shall have no obligation to
file any such claim. Absent any such failure to file, the Second
Priority Agent shall have and shall continue to have full and
absolute discretion over the filing of such claims in any manner
and substance as the Second Priority Agent may determine in its
sole discretion.
(b) The
Second Priority Agent
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