Exhibit 4.2
BRIDGE CREDIT AGREEMENT
among
AT&T COMCAST CORPORATION
AT&T BROADBAND CORP.
The Financial Institutions Party Hereto
JPMORGAN CHASE BANK,
as Administrative Agent
CITIBANK, N.A.,
as Syndication Agent
and
BANK OF AMERICA, N.A.,
▇▇▇▇▇▇▇ ▇▇▇▇▇ & CO.,
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ & ▇▇▇▇▇ INCORPORATED
AND
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ SENIOR FUNDING, INC.
as Co-Documentation Agents
Dated as of April 26, 2002
▇.▇. ▇▇▇▇▇▇ SECURITIES INC.
and
▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇ INC.,
as
Joint Lead Arrangers and Joint Bookrunners
BANC OF AMERICA SECURITIES LLC,
▇▇▇▇▇▇▇ ▇▇▇▇▇ & CO.,
▇▇▇▇▇▇▇ LYNCH, PIERCE, ▇▇▇▇▇▇ & ▇▇▇▇▇ INCORPORATED
AND
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ SENIOR FUNDING, INC.
as Co-Arrangers
TABLE OF CONTENTS
Page
SECTION 1 DEFINITIONS AND ACCOUNTING TERMS.......................................................1
1.01 Defined Terms.........................................................................1
1.02 Use of Certain Terms.................................................................15
1.03 Accounting Terms.....................................................................15
1.04 Rounding.............................................................................16
1.05 Exhibits and Schedules...............................................................16
1.06 References to Agreements and Laws....................................................16
1.07 Pro Forma Calculations...............................................................16
SECTION 2 THE COMMITMENTS AND EXTENSIONS OF CREDIT..............................................17
2.01 Loans ...............................................................................17
2.02 Procedure for Borrowing..............................................................17
2.03 Repayment of Loans...................................................................17
2.04 Reduction or Termination of Commitments..............................................18
2.05 Optional Prepayments.................................................................18
2.06 Mandatory Prepayments and Commitment Reductions......................................18
2.07 Documentation of Loans...............................................................18
2.08 Continuation and Conversion Option...................................................19
2.09 Interest.............................................................................19
2.10 Fees ................................................................................20
2.11 Computation of Interest and Fees.....................................................20
2.12 Making Payments......................................................................20
2.13 Funding Sources......................................................................21
▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇, ▇▇▇▇▇ PROTECTION AND ILLEGALITY................................................22
3.01 Taxes ...............................................................................22
3.02 Illegality...........................................................................22
3.03 Inability to Determine Eurodollar Rates..............................................23
3.04 Increased Cost and Reduced Return; Capital Adequacy..................................23
3.05 Breakfunding Costs...................................................................24
3.06 Matters Applicable to all Requests for Compensation..................................24
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3.07 Survival.............................................................................24
SECTION 4 CONDITIONS PRECEDENT TO EXTENSIONS OF CREDIT..........................................25
SECTION 5 REPRESENTATIONS AND WARRANTIES........................................................27
5.01 Existence and Qualification; Power; Compliance with Laws.............................27
5.02 Power; Authorization; Enforceable Obligations........................................27
5.03 No Legal Bar.........................................................................27
5.04 Financial Statements; No Material Adverse Effect.....................................27
5.05 Litigation...........................................................................28
5.06 No Default...........................................................................28
5.07 Authorizations.......................................................................28
5.08 Taxes ...............................................................................28
5.09 Margin Regulations; Investment Company Act; Public Utility Holding Company Act.......28
5.10 ERISA Compliance.....................................................................28
5.11 Assets; Liens........................................................................29
5.12 Environmental Compliance.............................................................29
5.13 Use of Proceeds......................................................................29
5.14 Disclosure...........................................................................29
SECTION 6 AFFIRMATIVE COVENANTS.................................................................30
6.01 Financial Statements.................................................................30
6.02 Certificates, Notices and Other Information..........................................30
6.03 Payment of Taxes.....................................................................31
6.04 Preservation of Existence............................................................31
6.05 Maintenance of Properties............................................................31
6.06 Maintenance of Insurance.............................................................31
6.07 Compliance With Laws.................................................................32
6.08 Inspection Rights....................................................................32
6.09 Keeping of Records and Books of Account..............................................32
6.10 Compliance with ERISA................................................................32
6.11 Compliance With Agreements...........................................................32
6.12 Use of Proceeds......................................................................32
6.13 Designation of Unrestricted Companies................................................32
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SECTION 7 NEGATIVE COVENANTS....................................................................33
7.01 Liens ...............................................................................33
7.02 Subsidiary Indebtedness..............................................................34
7.03 Fundamental Changes..................................................................34
7.04 ERISA ...............................................................................35
7.05 Limitations on Upstreaming...........................................................35
7.06 Margin Regulations...................................................................35
7.07 Financial Covenants..................................................................35
7.08 Prepayment of Material Indebtedness..................................................36
SECTION 8 EVENTS OF DEFAULT AND REMEDIES........................................................36
8.01 Events of Default....................................................................36
8.02 Remedies Upon Event of Default.......................................................38
SECTION 9 THE AGENTS............................................................................38
9.01 Appointment..........................................................................38
9.02 Delegation of Duties.................................................................39
9.03 Exculpatory Provisions...............................................................39
9.04 Reliance by Administrative Agent.....................................................39
9.05 Notice of Default....................................................................40
9.06 Non-Reliance on Agents and Other Lenders.............................................40
9.07 Indemnification......................................................................40
9.08 Agent in Its Individual Capacity.....................................................41
9.09 Successor Administrative Agent.......................................................41
9.10 Co-Documentation Agents and Syndication Agent........................................41
SECTION 10 MISCELLANEOUS........................................................................41
10.01 Amendments; Consents.................................................................41
10.02 Requisite Notice; Effectiveness of Signatures and Electronic Mail....................42
10.03 Attorney Costs, Expenses and Taxes...................................................43
10.04 Binding Effect; Assignment...........................................................44
10.05 Set-off..............................................................................45
10.06 Sharing of Payments..................................................................45
10.07 No Waiver; Cumulative Remedies.......................................................46
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10.08 Usury ...............................................................................46
10.09 Counterparts.........................................................................46
10.10 Integration..........................................................................47
10.11 Nature of Lenders' Obligations.......................................................47
10.12 Survival of Representations and Warranties...........................................47
10.13 Indemnity by Borrower................................................................47
10.14 Nonliability of Lenders..............................................................48
10.15 No Third Parties Benefitted..........................................................48
10.16 Severability.........................................................................49
10.17 Confidentiality......................................................................49
10.18 Headings.............................................................................49
10.19 Time of the Essence..................................................................49
10.20 Foreign Lenders......................................................................49
10.21 Removal and Replacement of Lenders...................................................50
10.22 Governing Law; Submission to Jurisdiction; Waivers...................................50
10.23 Waiver of Right to Trial by Jury.....................................................51
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EXHIBITS
A Form of Guarantee Agreement
B Form of Request for Extension of Credit
C Form of Compliance Certificate
D Form of Assignment and Acceptance
SCHEDULES
A Excluded Indebtedness
2.01 Commitments
2.06A Included Asset Sales
2.06B Excluded Asset Sales
7.01 Existing Liens
7.02 Existing Subsidiary Indebtedness
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BRIDGE CREDIT AGREEMENT
This BRIDGE CREDIT AGREEMENT is entered into as of April 26,
2002, by and among AT&T COMCAST CORPORATION, a Pennsylvania corporation
("Borrower"), AT&T BROADBAND CORP., a Delaware corporation, each lender from
time to time party hereto (collectively, "Lenders" and individually, a
"Lender"), JPMorgan Chase Bank, as Administrative Agent, CITIBANK, N.A., as
syndication agent (in such capacity, "Syndication Agent"), and BANK OF AMERICA,
N.A., ▇▇▇▇▇▇▇ ▇▇▇▇▇ & CO., ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated
and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ SENIOR FUNDING, INC., as co-documentation agents (in such
capacity, "Co-Documentation Agents").
RECITAL
Borrower has requested that Lenders provide a term loan
facility, and Lenders are willing to do so on the terms and conditions set forth
herein.
In consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:
SECTION 1
DEFINITIONS AND ACCOUNTING TERMS
1.01 Defined Terms. As used in this Agreement, the following
terms shall have the meanings set forth below:
"Acquisition" means (a) any purchase or other acquisition of
assets or series of related purchases or other acquisitions of assets by
Borrower or any Restricted Subsidiary (including by way of asset or stock
purchase, swap or merger) other than from Borrower or any Restricted Subsidiary
or (b) the designation by Borrower of an Unrestricted Subsidiary as a Restricted
Subsidiary.
"Administrative Agent" means JPMorgan Chase Bank, in its
capacity as administrative agent under any of the Loan Documents, or any
successor administrative agent permitted under the Loan Documents.
"Administrative Agent's Office" means Administrative Agent's
address and, as appropriate, account set forth below its signature to this
Agreement, or such other address or account as Administrative Agent hereafter
may designate by written notice to Borrower and Lenders.
"Administrative Agent-Related Persons" means Administrative
Agent (including any successor agent), together with its Affiliates and the
officers, directors, employees, agents and attorneys-in-fact of such Persons and
Affiliates.
"Administrative Questionnaire" means, with respect to each
Lender, an administrative questionnaire in the form prepared by Administrative
Agent and submitted to Administrative Agent (with a copy to Borrower) duly
completed by such Lender.
"Affiliate" means, as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by, or is under direct
or indirect common control with, such Person.
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"Agents" means the collective reference to Administrative
Agent, Syndication Agent and Co-Documentation Agents.
"Agreement" means this Bridge Credit Agreement, as amended,
restated, extended, supplemented or otherwise modified in writing from time to
time.
"Annualized EBITDA" means, at any date of determination,
EBITDA for the two fiscal quarter periods then most recently ended times two
(2); provided that (x) for the purposes of calculating the Interest Coverage
Ratio at December 31, 2002 and March 31, 2003, Annualized EBITDA shall mean
EBITDA for the period from the first day of the fiscal quarter in which the
Effective Date occurs to such date of determination and (y) for the purposes of
calculating the Leverage Ratio at March 31, 2003, Annualized EBITDA shall mean
EBITDA for the fiscal quarter period then ended times four (4).
"Annualized Interest Expense" means, at any date of
determination, Interest Expense for the two fiscal quarter periods then most
recently ended times two (2); provided that for the purposes of calculating the
Interest Coverage Ratio at December 31, 2002 and March 31, 2003, Annualized
Interest Expense shall mean Interest Expense for the period from the first day
of the fiscal quarter in which the Effective Date occurs to such date of
determination.
"Applicable Amount" means the rate per annum, in basis points,
set forth under the relevant column heading below based upon the applicable Debt
Ratings:
PRICING DEBT RATINGS
LEVEL S&P/▇▇▇▇▇'▇ BASE RATE MARGIN EURODOLLAR RATE MARGIN
1 greater than or equal to A/A2 0 47.5
2 A-/A3 0 62.5
3 BBB+/Baa1 0 87.5
4 BBB/Baa2 12.5 112.5
5 BBB-/Baa3 37.5 137.5
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