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EXHIBIT 99.7
EXECUTION COPY
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CREDIT AGREEMENT
DATED AS OF
NOVEMBER 2, 1999
AMONG
SERVICE CORPORATION INTERNATIONAL,
AS THE COMPANY,
THE LENDERS PARTY HERETO,
THE CHASE MANHATTAN BANK,
AS THE ADMINISTRATIVE AGENT,
▇▇▇▇▇▇ GUARANTY TRUST COMPANY OF NEW YORK,
AS THE SYNDICATION AGENT,
AND
BANK OF AMERICA, NATIONAL ASSOCIATION,
CITIBANK, N.A.,
AND
CREDIT LYONNAIS NEW YORK BRANCH
AS THE MANAGING AGENTS
CHASE SECURITIES INC.
AS THE SOLE BOOK MANAGER/LEAD ARRANGER
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Amended and Restated
Credit Agreement
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TABLE OF CONTENTS
ARTICLE I DEFINITIONS, ACCOUNTING TERMS AND CONSTRUCTION..............................................1
SECTION 1.01. Certain Defined Terms.......................................................................1
SECTION 1.02. Accounting Terms and Determinations........................................................15
SECTION 1.03. Interpretation.............................................................................16
ARTICLE II THE CREDITS................................................................................17
SECTION 2.01. Commitments................................................................................17
SECTION 2.02. Loans......................................................................................18
SECTION 2.03. [Intentionally Omitted]....................................................................19
SECTION 2.04. Borrowing Procedure........................................................................19
SECTION 2.05. Refinancings...............................................................................19
SECTION 2.06. Conversion and Continuation of Borrowings..................................................20
SECTION 2.07. Fees.......................................................................................21
SECTION 2.08. Repayment of Loans.........................................................................22
SECTION 2.09. Interest on Loans..........................................................................22
SECTION 2.10. Interest on Overdue Amounts................................................................22
SECTION 2.11. Alternate Rate of Interest.................................................................23
SECTION 2.12. Termination and Reduction of Commitments...................................................23
SECTION 2.13. Prepayment.................................................................................24
SECTION 2.14. Reserve Requirements; Change in Circumstances..............................................24
SECTION 2.15. Change in Circumstances....................................................................27
SECTION 2.16. Indemnity..................................................................................28
SECTION 2.17. Pro Rata Treatment.........................................................................29
SECTION 2.18. Sharing of Setoffs.........................................................................29
SECTION 2.19. Payments...................................................................................30
SECTION 2.20. Taxes......................................................................................31
SECTION 2.21. Extensions of Termination Date.............................................................32
ARTICLE III CONDITIONS OF LENDING......................................................................33
SECTION 3.01. Conditions Precedent to the Initial Loans to the Company...................................33
SECTION 3.02. Conditions Precedent to Each Borrowing.....................................................35
SECTION 3.03. Conditions Precedent to Conversions and Continuations......................................35
ARTICLE IV REPRESENTATIONS AND WARRANTIES.............................................................36
SECTION 4.01. Organization and Qualification.............................................................36
SECTION 4.02. Authorization, Validity, Etc...............................................................36
SECTION 4.03. Governmental Consents, Etc.................................................................36
SECTION 4.04. Conflicting or Adverse Agreements or Restrictions..........................................37
SECTION 4.05. Title to Assets............................................................................37
SECTION 4.06. Actions Pending............................................................................37
SECTION 4.07. Financial Statements.......................................................................37
Amended and Restated
Credit Agreement
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SECTION 4.08. Default....................................................................................38
SECTION 4.09. Investment Company Act.....................................................................38
SECTION 4.10. Public Utility Holding Company Act.........................................................38
SECTION 4.11. ERISA......................................................................................38
SECTION 4.12. Payment of Taxes...........................................................................38
SECTION 4.13. Purpose of Loans...........................................................................38
SECTION 4.14. Patents, Etc...............................................................................39
SECTION 4.15. No Material Guarantees or Letters of Credit................................................39
SECTION 4.16. Enhancement Agreements.....................................................................39
SECTION 4.17. Year 2000..................................................................................39
ARTICLE V COVENANTS.............................................................................40
SECTION 5.01. Affirmative Covenants......................................................................40
SECTION 5.02. Negative Covenants.........................................................................42
ARTICLE VI EVENTS OF DEFAULT.....................................................................47
SECTION 6.01. Events of Default..........................................................................47
ARTICLE VII THE ADMINISTRATIVE AGENT.............................................................50
SECTION 7.01. Authorization and Action...................................................................50
SECTION 7.02. Administrative Agent's Reliance, Etc.......................................................50
SECTION 7.03. Administrative Agent and Affiliates; Chase and Affiliates..................................51
SECTION 7.04. Bank Credit Decision.......................................................................51
SECTION 7.05. Administrative Agent's Indemnity...........................................................52
SECTION 7.06. Successor Administrative Agent.............................................................52
SECTION 7.07. Notice of Default..........................................................................53
SECTION 7.08. No Duty....................................................................................53
ARTICLE VIII MISCELLANEOUS.........................................................................53
SECTION 8.01. Amendments, Etc............................................................................53
SECTION 8.02. Notices, Etc...............................................................................54
SECTION 8.03. No Waiver; Remedies........................................................................55
SECTION 8.04. Costs, Expenses and Taxes..................................................................55
SECTION 8.05. Indemnity..................................................................................56
SECTION 8.06. Right of Setoff............................................................................56
SECTION 8.07. Governing Law..............................................................................57
SECTION 8.08. Interest...................................................................................57
SECTION 8.09. Survival of Representations, Warranties and Covenants......................................57
SECTION 8.10. Binding Effect.............................................................................58
SECTION 8.11. Successors and Assigns; Participations.....................................................58
SECTION 8.12. Confidentiality............................................................................61
SECTION 8.13. Separability...............................................................................61
SECTION 8.14. Limitation by Law..........................................................................61
SECTION 8.15. Independence of Covenants..................................................................61
Amended and Restated
Credit Agreement
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SECTION 8.16. Judgment...................................................................................61
SECTION 8.17. Submission to Jurisdiction; Waiver of Immunities...........................................62
SECTION 8.18. Entire Agreement...........................................................................63
SECTION 8.19. Execution in Counterparts..................................................................63
Annex I - Commitments
Exhibit 1.01. Administrative Questionnaire
Exhibit 2.04. Form of Borrowing Request
Exhibit 8.11. Form of Assignment and Acceptance
Schedule 4.01 Subsidiaries
Schedule 4.15 Assurances and Letters of Credit
Schedule 4.16 Enhancement Agreements
Amended and Restated
Credit Agreement
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CREDIT AGREEMENT
THIS CREDIT AGREEMENT dated as of November 2, 1999, among:
(a) SERVICE CORPORATION INTERNATIONAL, a Texas corporation
(the "Company");
(b) the banks and other financial institutions named under the
caption "Banks" on the signature pages hereof (such banks together with each
other Person who becomes a Bank pursuant to Section 8.11, collectively, the
"Banks"); and
(c) THE CHASE MANHATTAN BANK, a New York banking corporation,
as administrative agent for the Banks (in such capacity together with any other
Person who becomes the Administrative Agent pursuant to Section 7.06, the
"Administrative Agent").
P R E L I M I N A R Y S T A T E M E N T
A. The Company has requested that the Banks extend a credit
facility to the Company in order to enable the Company to borrow on a revolving
credit basis on and after the date hereof, on the terms and conditions set forth
herein, a principal amount not in excess of $600,000,000. The Banks are willing
to extend such credit to the Company on the terms and subject to the conditions
herein set forth. Accordingly, the Company, the Banks and the Administrative
Agent agree as follows:
ARTICLE I
DEFINITIONS, ACCOUNTING TERMS AND CONSTRUCTION
SECTION 1.01. Certain Defined Terms. As used in this
Agreement, the following terms shall have the following meanings:
"ABR Borrowing" means a Borrowing comprised of ABR Loans.
"ABR Loan" means any Loan bearing interest at a rate
determined by reference to the Alternate Base Rate in accordance with the
provisions of Article II.
"Acquisition" means the acquisition by the Company or any of
its Subsidiaries of a business, including any assets, leases and liabilities
(contingent or otherwise) related thereto, either by the purchase of stock or
assets for cash or other property or by an exchange or issuance of Equity
Interests (including merger) or assumption of liabilities or by a combination
thereof.
Amended and Restated
Credit Agreement
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"Administrative Agent" has the meaning specified in the
introduction to this Agreement.
"Administrative Questionnaire" means an Administrative
Questionnaire in the form of Exhibit 1.01, which each Bank shall complete and
provide to the Administrative Agent and the Company.
"Affiliate" means, when used with respect to any Person, any
other Person which controls or is controlled by or is under common control with
such Person. As used in this definition, "control" means the possession,
directly or indirectly, of power to direct or cause the direction of management
or policies (whether through ownership of securities or partnership or ownership
interests, by contract or otherwise).
"Agreement" means this Credit Agreement.
"Agreement Currency" has the meaning specified in Section
8.16.
"Alternate Base Rate" means, for any date, a rate per annum
(rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of
(a) the Prime Rate in effect on such day and (b) the Federal Funds Effective
Rate in effect on such day plus 1/2 of 1%. "Prime Rate" means, as of a
particular date, the prime rate most recently determined by the Administrative
Agent at the Principal Office, automatically fluctuating upward and downward
with and at the time specified in each such announcement without notice to the
Company or any other Person, which prime rate may not necessarily represent the
lowest or best rate actually charged to a customer. "Federal Funds Effective
Rate" means, for any day, the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by
federal funds brokers, as published for such day (or, if such day is not a
Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions
received by the Administrative Agent from three federal funds brokers of
recognized standing selected by it. If for any reason the Administrative Agent
shall have determined (which determination, made in good faith, shall create a
rebuttable presumption that the same is accurate) that it is unable to ascertain
the Federal Funds Effective Rate for any reason, including the inability or
failure of the Administrative Agent to obtain sufficient quotations in
accordance with the terms hereof, the Alternate Base Rate shall be determined
without regard to clause (b) of the first sentence of this definition until the
circumstances giving rise to such inability no longer exist. Any change in the
Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective on the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.
"Applicable Creditor" has the meaning specified in Section
8.16.
Amended and Restated
Credit Agreement
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"Applicable Lending Office" means, with respect to each Bank,
such Bank's Domestic Lending Office in the case of an ABR Loan and such Bank's
Eurodollar Lending Office in the case of a Eurodollar Loan.
"Applicable Percentage" means, for any day, (a) with respect
to any Eurodollar Loan, the applicable percentage set forth below under the
caption "Eurodollar Spread" and (b) with respect to the Facility Fee, the
applicable percentage set forth below under the caption "Facility Fee Rate", in
each case determined by reference to the highest level applicable based upon the
ratings by S&P and ▇▇▇▇▇'▇ in effect on such date for the Index Debt:
▇▇▇▇▇ ▇ ▇▇▇▇▇ ▇ ▇▇▇▇▇ ▇ ▇▇▇▇▇ ▇
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Ratings >=BBB and >=BBB- and >=BB+ and =Baa2 >=Baa3 >=Ba1