Exhibit 10.1.3
SECOND AMENDMENT
dated as of July 26, 2002
to
$1,000,000,000
CREDIT AGREEMENT
dated as of
August 3, 2000, as amended,
among
▇▇▇▇ ▇▇▇▇▇▇▇ Financial Services, Inc.
▇▇▇▇ ▇▇▇▇▇▇▇ Life Insurance Company,
The Banks Listed Herein,
Fleet National Bank,
as Co-Administrative Agent,
JPMorgan Chase Bank,
as Co-Administrative Agent,
Citicorp USA, Inc.,
as Syndication Agent,
The Bank of New York,
as Co-Documentation Agent (364-Day Revolver),
and
The Bank of Nova Scotia,
as Co-Documentation Agent (364-Day Revolver)
Fleet Securities, Inc.,
and
▇.▇. ▇▇▇▇▇▇ Securities Inc.
as
Joint Bookrunners and Joint Lead Arrangers
SECOND AMENDMENT TO CREDIT AGREEMENT
SECOND AMENDMENT TO CREDIT AGREEMENT ("Second Amendment") dated as of
July 26, 2002, among ▇▇▇▇ ▇▇▇▇▇▇▇ FINANCIAL SERVICES, INC. ("JHFS"), ▇▇▇▇
▇▇▇▇▇▇▇ LIFE INSURANCE COMPANY ("JHLIC" and, collectively with JHFS, the
"Borrowers"), the BANKS listed on the signature pages hereof, FLEET NATIONAL
BANK, as co-administrative agent, and JPMORGAN CHASE BANK (f/k/a The Chase
Manhattan Bank), as co-administrative agent.
WHEREAS, the Borrowers, ▇▇▇▇ ▇▇▇▇▇▇▇ Capital Corporation ("JHCC"), the
Banks, and the Agent entered into to a Credit Agreement dated as of August 3,
2000 ("Original Credit Agreement") pursuant to which the Banks agreed, on the
terms and conditions stated therein, to extend credit to the Borrowers and JHCC
pursuant to a 364-Day Revolving Credit Facility ("364-Day Revolver") and a
Multi-Year Revolving Credit Facility ("Multi-Year Revolver");
WHEREAS, the Borrowers, the Banks, and the Agent entered into a First
Amendment to Credit Agreement dated as of July 27, 2001 ("First Amendment")
pursuant to which the parties made certain amendments to the Original Credit
Agreement (as so amended, the "First Amended Credit Agreement") so as, among
other things, (i) to acknowledge the termination of JHCC as a Borrower
thereunder, (ii) to renew the 364-Day Revolver for an additional 364-day period
commencing on the date of the First Amendment, (iii) to reallocate the 364-Day
Commitment of BankOne, NA (Main Office Chicago), (iv) to clarify the Borrowers'
reporting obligations concerning their financial covenants, and (v) to eliminate
commercial paper ratings as a basis for determining pricing with respect to the
364-Day Revolver;
WHEREAS, the Borrowers have requested that the Banks make certain
further amendments to the First Amended Credit Agreement so as, among other
things, (i) to renew the 364-Day Revolver for an additional 364-day period
commencing on the date of the Second Amendment, (ii) to amend the pricing for
the 364-Day Revolver to include a premium of 15 basis points in the event the
Borrowers exercise the one-year term-out option thereunder, (iii) to eliminate
the Adjusted Statutory Surplus covenant and JHLIC's reporting obligations with
respect thereto and to amend the remaining financial covenants applicable to
both the 364-Day Revolver and the Multi-Year Revolver, (iv) to amend the
conditions for optional increases in the aggregate Commitments under the 364-Day
Revolver or the Multi-Year Revolver, and (v) to reallocate the 364-Day
Commitments of ▇▇▇▇▇▇ Commercial Paper, Inc., The Northern Trust Company, and
Westdeutsche Landesbank Gerozentrale, New York Branch (each an "Exiting Bank"
and, collectively, the "Exiting Banks"); and
WHEREAS, the Banks are willing to make such amendments on the terms
and conditions set forth in this Second Amendment;
-1-
NOW, THEREFORE, in consideration of the premises and for other good
and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:
1. Definitions. All capitalized terms used but not defined herein
shall have the same meanings herein as such terms have in the First
Amended Credit Agreement.
2. Amendments to First Amended Credit Agreement. Upon the terms and
subject to the conditions of this Second Amendment, the First Amended Credit
Agreement is hereby amended in each of the following respects:
(a) The definition of "Expiration" in Section 1.01 of the First
Amended Credit Agreement is amended to read in its entirety as follows:
""Expiration" means, with respect to the 364-Day Revolver, the
364th day after the Second Amendment Effective Date or, if extended in
accordance with Section 2.06(b), the 364th day after the immediately
preceding Expiration."
(b) The definition of "364-Day Termination Date" in Section 1.01 of
the First Amended Credit Agreement is amended to read in its entirety as
follows:
""364-Day Termination Date" means the 364th day after the Second
Amendment Effective Date, or if the maturity of the 364-Day Revolver shall
have been extended pursuant to Section 2.06(b) hereof, the 364th day after
the immediately preceding Expiration."
(c) The definition of "Permitted Collateralization Obligation" in
Section 1.01 of the First Amended Credit Agreement is amended to read in
its entirety as follows:
""Permitted Collateralization Obligation" means any obligation
relating to REMICs, pass-through obligations, collateralized mortgage
obligations, collateralized bond obligations or similar instruments, except
an obligation of JHFS, JHLIC or any Subsidiary (excluding any Subsidiary
that is the issuer of the REMIC, pass-through obligation, collateralized
mortgage obligation, collateralized bond obligation or similar instrument)
to the extent that such obligation requires a cash payment by JHFS, JHLIC
or such Subsidiary, recourse for the payment of which is not limited to
specific assets of JHFS, JHLIC or such Subsidiary (excluding any obligation
of JHFS, JHLIC or such Subsidiary (i) to make advances in connection with
the servicing of such REMIC, pass-through obligation, collateralized
mortgage obligation, collateralized bond obligation or similar instrument,
(ii) to repurchase collateral, or (iii) to provide indemnification for
certain liabilities arising from misrepresentations in and omissions of
material facts from offering materials for such obligations so long as
claims for such misrepresentations or omissions remain inchoate and
unasserted)."
-2-
(d) Section 1.01 of the First Amended Credit Agreement is amended by
inserting the following new definitions:
""Second Amendment" means the Second Amendment to Credit
Agreement dated as of July 26, 2002."
""Second Amendment Effective Date" means the date on which the
Second Amendment becomes effective in accordance with Section 5 thereof."
(e) The last sentence of Section 2.06(a) of the First Amended Credit
Agreement is amended to read in its entirety as follows:
"If the Borrowers choose the first anniversary of the last
Expiration of the 364-Day Revolver as the Final Maturity Date, (x) no
additional Borrowings shall be permitted under the 364-Day Revolver between
such Expiration and the Final Maturity Date, and (y) with respect to all
principal amounts outstanding under the 364-Day Revolver, the applicable
interest rate shall be determined as otherwise provided herein plus a
premium of 15 basis points until the earlier of payment in full or the
Final Maturity Date."
(f) Section 2.09A(c)(iii) of the First Amended Credit Agreement is
amended to read in its entirety as follows:
"(iii) on the Increased Commitment Date, JHFS's senior unsecured
long-term debt ratings from S&P and ▇▇▇▇▇'▇ are at least A and A3,
respectively, and JHLIC's financial strength ratings from S&P and ▇▇▇▇▇'▇
are at least AA and Aa3, respectively."
(g) Section 5.01(e) of the First Amended Credit Agreement is deleted
in its entirety.
(h) Section 5.08 of the First Amended Credit Agreement is deleted in
its entirety.
(i) Section 5.08A of the First Amended Credit Agreement is amended to
read in its entirety as follows:
"SECTION 5.08A. Shareholders' Equity. JHFS will not, at any time,
permit GAAP total shareholders' equity as would be or is shown on JHFS'
consolidated balance sheet as of such time prepared in accordance with GAAP
(after excluding unrealized appreciation and depreciation on certain
investments pursuant to FAS 115) to be less than $4,000,000,000."
(j) Section 5.09 of the First Amended Credit Agreement is amended to
read in its entirety as follows:
-3-
"SECTION 5.09. Capitalization Ratio. JHFS will not, at any time,
permit the ratio of (a) total GAAP short- and long-term debt to (b) GAAP
total shareholders' equity (after excluding unrealized appreciation and
depreciation on certain investments pursuant to FAS 115) plus total GAAP
short- and long-term debt, in each case as would be or is shown on JHFS'
consolidated balance sheet as of such time prepared in accordance with
GAAP, to be greater than 0.40:1:00; provided, that for purposes of
calculating total GAAP short- and long-term debt, the following shall not
be included: (w) obligations for which recourse for payment is limited to
specified assets of such Person, (x) Permitted Collateralization
Obligations, (y) obligations of a Person which is an insurance company (1)
which arise in connection with policies or contracts of insurance, funding
agreements and other similar contracts entered into in the ordinary conduct
of such Person's insurance business or (2) to the extent that recourse for
the payment of such obligations is limited to assets held in separate
accounts of such Person, and (z) obligations issued under the ▇▇▇▇ ▇▇▇▇▇▇▇
Life Insurance Company SignatureNotes(sm) program as from time to time in
effect."
(k) Exhibit L to the First Amended Credit Agreement is amended to
read in its entirety as set forth in Exhibit L attached hereto.
3. Amendments to 364-Day Revolver Notes. Each of the 364-Day Revolver
Notes (other than the Exiting Bank Notes (as defined below)) is amended by
changing the date at the top of such note to the date of the Second Amendment
Effective Date.
4. Amendments to 364-Day Commitments. The 364-Day Commitment of each
Exiting Bank under the 364-Day Revolver is hereby terminated as of the Second
Amendment Effective Date, and each Exiting Bank is hereby released from its
obligations under the First Amended Credit Agreement with respect to the 364-Day
Revolver (but not with respect to the Multi-Year Revolver) as of the Second
Amendment Effective Date. From and after the Second Amendment Effective Date,
the 364-Day Commitments shall be allocated among the Banks as reflected on the
signature pages hereof under the heading "364-Day Commitments."
5. Conditions Precedent. The amendments and agreements set forth in
Sections 2, 3, and 4 above shall become effective only upon the satisfaction of
the following conditions:
(a) receipt by the Agent of counterparts hereof signed by each of the
parties hereto (or, in the case of any party as to which an executed
counterpart shall not have been received, receipt by the Agent in form
satisfactory to it of telegraphic, telex or other written confirmation from
such party of the execution and delivery of a counterpart hereof by such
party);
(b) receipt by the Agent of each Exiting Bank's 364-Day Revolver
Notes (the "Exiting Bank Notes") for cancellation, and receipt by the
Borrowers of the Exiting Bank Notes marked "Canceled" by the Agent;
provided, that if any Exiting Bank shall be unable to produce one or more
of its original Notes for cancellation, such Exiting Bank shall have
delivered, and the Agent and Borrowers shall have received, an affidavit of
an officer of such Exiting Bank as to the loss, theft, destruction or
mutilation of such Note(s)
-4-
and certifying that such Note(s) are satisfied in full and are to be
canceled by the Agent, and such Exiting Bank's unsecured agreement of
indemnity concerning any claim under such canceled Note(s);
(c) the fact that all amounts payable by the Borrowers on or before
the Second Amendment Effective Date (including the fees then payable, if
any, pursuant to Section 2.08 of the First Amended Credit Agreement) shall
have been paid in full;
(d) receipt by the Agent of an opinion of ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, Vice
President and Counsel of JHLIC, addressed to the Agent and the Banks, in
form and substance satisfactory to the Agent;
(e) receipt by the Agent of an opinion of Goulston & Storrs, P.C.,
special counsel for the Agent, addressed to the Agent and the Banks, in
form and substance satisfactory to the Agent; and
(f) receipt by the Agent of all documents it may reasonably request
relating to the existence of each Borrower, the corporate authority for and
the validity of this Second Amendment, and any other matters relevant
hereto, all in form and substance satisfactory to the Agent;
provided that this Second Amendment shall not become effective or be binding on
any party hereto unless all of the foregoing conditions are satisfied not later
than July 26, 2002. At the closing, the Agent or its counsel shall deliver a
notice to the Borrowers and the Banks advising them of the Second Amendment
Effective Date, and such notice shall be conclusive and binding on all parties
hereto.
6. Representations and Warranties. Each Borrower severally represents and
warrants, but only with respect to itself, that:
(a) Representations in First Amended Credit Agreement. Each of the
representations and warranties made by such Borrower in the First Amended
Credit Agreement is true, correct and complete on and as of the date hereof
with the same full force and effect as if each of such representations and
warranties had been made by the Borrower on the date hereof and in this
Second Amendment (except to the extent such representations and warranties
expressly relate to an earlier date).
(b) No Defaults or Events of Default. No Default or Event of Default
exists on the date of this Second Amendment (after giving effect to all of
the arrangements and transactions contemplated by this Second Amendment).
(c) Binding Effect of Documents. This Second Amendment has been duly
authorized, executed and delivered by such Borrower and is in full force
and effect as of the date hereof, and the agreements and obligations of
such Borrower contained herein constitute the legal, valid, and binding
obligations of such Borrower enforceable against such Borrower in
accordance with its terms.
-5-
7. Miscellaneous. This Second Amendment may be executed in any number of
counterparts, each of which when executed and delivered shall be deemed an
original, but all of which together shall constitute one instrument. In making
proof of this Second Amendment, it shall not be necessary to produce or account
for more than one counterpart thereof signed by each of the parties hereto.
Except to the extent specifically amended and supplemented hereby, all of the
terms, conditions and provisions of the First Amended Credit Agreement and the
Notes shall remain unmodified, and the First Amended Credit Agreement and the
Notes, as amended and supplemented by this Second Amendment, are confirmed as
being in full force and effect, and each Borrower hereby ratifies and confirms
all of its agreements and obligations contained therein. This Second Amendment
and the rights and obligations of each of the parties hereto shall be governed
by and interpreted in accordance with the laws of the Commonwealth of
Massachusetts without regard to conflicts of laws principles. This Second
Amendment shall be binding upon and inure to the benefit of each of the parties
hereto and their respective successors in title and assigns.
[Signatures begin on next page]
-6-
IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to
be duly executed by their respective authorized officers as of the day and year
first above written.
▇▇▇▇ ▇▇▇▇▇▇▇ FINANCIAL ▇▇▇▇ ▇▇▇▇▇▇▇ LIFE INSURANCE
SERVICES, INC COMPANY
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇ By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇
------------------------------- -------------------
Title: Vice President and Treasurer Title: Vice President and Treasurer
------------------------------- ----------------------------
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇ By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
------------------------------- ------------------
Title: Assistant Treasurer Title: Assistant Treasurer
------------------------------- -------------------
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, T-58 ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇-▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Treasurer Attention: Treasurer
Fax: (▇▇▇) ▇▇▇-▇▇▇▇ Fax: (▇▇▇) ▇▇▇-▇▇▇▇
Telex number: 62021772 Telex number: 62021772
with a copy to: with a copy to:
▇▇▇▇ ▇▇▇▇▇▇▇ Financial Services, Inc. ▇▇▇▇ ▇▇▇▇▇▇▇ Financial Services, Inc.
▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: Investment Law Attention: Investment Law
Fax: (▇▇▇) ▇▇▇-▇▇▇▇ Fax: (▇▇▇) ▇▇▇-▇▇▇▇
-7-
364-Day Multi-Year
Commitments Commitments
----------- -----------
$32,250,000 $80,000,000 FLEET NATIONAL BANK
("Co-Administrative Agent")
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-------------------------------
Title: Managing Director
----------------------------
$32,250,000 $40,000,000 JPMORGAN CHASE BANK
("Co-Administrative Agent")
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-------------------------------
Title: Vice President
----------------------------
$32,000,000 $40,000,000 CITICORP USA, INC.
("Syndication Agent")
By: /s/ ▇▇▇▇▇ ▇. Dodge
-------------------------------
Title: Managing Director
----------------------------
$32,000,000 $30,312,500 THE BANK OF NOVA SCOTIA
("Co-Documentation Agent" - 364-Day)
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
-------------------------------
Title: Managing Director
----------------------------
$32,000,000 $10,000,000 THE BANK OF NEW YORK
("Co-Documentation Agent" - 364-Day)
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------------
Title: Vice President
----------------------------
$28,000,000 $30,312,500 BARCLAYS BANK PLC
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
-------------------------------
Title: Associate Director
----------------------------
364-Day Multi-Year
Commitments Commitments
----------- -----------
$28,000,000 $30,312,500 BNP PARIBAS
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-------------------------------
Title: Director
----------------------------
By: /s/ Laurent Vanderzyppe
-------------------------------
Title: Director
----------------------------
$28,000,000 $30,312,500 CREDIT SUISSE FIRST BOSTON
By: /s/ ▇▇▇ ▇▇▇▇▇
-------------------------------
Title: Director
----------------------------
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-------------------------------
Title: Vice President
----------------------------
$28,000,000 $30,312,500 DEUTSCHE BANK AG, NEW YORK AND/OR
CAYMAN ISLAND BRANCHES
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇
-------------------------------
Title: Director
----------------------------
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-------------------------------
Title: Managing Director
----------------------------
$28,000,000 $30,312,500 ROYAL BANK OF CANADA
By: /s/ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇
-------------------------------
Title: Senior Manager
----------------------------
364-Day Multi-Year
Commitments Commitments
----------- -----------
$28,000,000 $30,312,500 WACHOVIA BANK, N.A.
By: /s/ ▇▇▇▇▇ ▇. Black
-------------------------------
Title: Director
----------------------------
$24,500,000 $30,312,500 COMERICA BANK
By: /s/ ▇▇▇▇▇▇ ▇. ▇▇▇▇
-------------------------------
Title: Account Officer
----------------------------
$24,500,000 $22,500,000 STATE STREET BANK AND TRUST COMPANY
By: /s/ ▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-------------------------------
Title: Vice President
----------------------------
$ 0 $22,500,000 WESTDEUTSCHE LANDESBANK GIROZENTRALE,
NEW YORK BRANCH
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇
-------------------------------
Title: Executive Director
----------------------------
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
-------------------------------
Title: Director
----------------------------
$24,500,000 $22,500,000 BANK OF AMERICA, N.A.
By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇
-------------------------------
Title: Principal
----------------------------
364-Day Multi-Year
Commitments Commitments
----------- -----------
$ 0 $20,000,000 THE NORTHERN TRUST COMPANY
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
-------------------------------
Title: Vice President
----------------------------
$24,500,000 $ 0 ABN AMRO BANK N.V.
By: /s/ ▇▇▇▇ ▇. ▇▇▇▇▇
-------------------------------
Title: Vice President
----------------------------
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------------
Title: Corporate Banking Officer
----------------------------
$ 0 $ 0 ▇▇▇▇▇▇ COMMERCIAL PAPER INC.
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
-------------------------------
Title: Authorized Signatory
----------------------------
$24,500,000 $ 0 ▇▇▇▇▇▇ BROTHERS BANK, FSB
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇
-------------------------------
Title: Vice President
----------------------------
$24,500,000 $ 0 ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ BANK
By: /s/ Jaap L. Tonckens
-------------------------------
Title: Vice President
----------------------------
364-Day Multi-Year
Commitments Commitments
----------- -----------
$24,500,000 $ 0 HSBC BANK USA
By: /s/ ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇
-------------------------------
Title: Head of Insurance
----------------------------
---------------- ------------------
Total 364-Day Total Multi-Year
Commitments Commitments
$500,000,000 $500,000,000
FLEET NATIONAL BANK, as Agent
By: /s/ ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
-------------------------
Title: Managing Director, Financial Institutions Division
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
JPMORGAN CHASE BANK, as Agent
By: /s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
-----------------------
Title: Vice President
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇/▇▇/ ▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
EXHIBIT L
Senior Unsecured Long Term Debt Ratings - 364-Day Revolver
--------------------------------------------------------------------------------------------------------------------------
Facility Applicable Drawn Cost Applicable
S & P or ▇▇▇▇▇'▇ Fee (bps.) Euro-Dollar (***50% usage) Usage All-In
Rating Level Rating Margin (bps.) (bps.) Fee (bps.) Drawn Cost
--------------------------------------------------------------------------------------------------------------------------
I ****AAA/****Aaa 4.0 13.5 17.5 5.0 22.5
--------------------------------------------------------------------------------------------------------------------------
II ****AA-/****Aa3 5.0 15.0 20.0 5.0 25.0
--------------------------------------------------------------------------------------------------------------------------
III ****A+/****A1 6.0 19.0 25.0 5.0 30.0
--------------------------------------------------------------------------------------------------------------------------
IV *A+/*A1 7.0 23.0 30.0 5.0 35.0
--------------------------------------------------------------------------------------------------------------------------
Senior Unsecured Long Term Debt Ratings - Multi-Year Revolver
--------------------------------------------------------------------------------------------------------------------------
Facility Applicable Drawn Cost Applicable
S & P or ▇▇▇▇▇'▇ Fee (bps.) Euro-Dollar (***50% usage) Usage All-In
Rating Level Rating Margin (bps.) (bps.) Fee (bps.) Drawn Cost
--------------------------------------------------------------------------------------------------------------------------
I ****AAA/****Aaa 6.0 11.5 17.5 5.0 22.5
--------------------------------------------------------------------------------------------------------------------------
II ****AA-/****Aa3 7.0 13.0 20.0 5.0 25.0
--------------------------------------------------------------------------------------------------------------------------
III ****A+/****A1 8.0 17.0 25.0 5.0 30.0
--------------------------------------------------------------------------------------------------------------------------
IV *A+/*A1 9.0 21.0 30.0 5.0 35.0
--------------------------------------------------------------------------------------------------------------------------
Commercial Paper Ratings - Multi-Year Revolver
---------------------------------------------------------------------------------------------------------------------------
Facility Applicable Drawn Cost Applicable
S & P or ▇▇▇▇▇'▇ Fee (bps.) Euro-Dollar (***50% usage) Usage All-In
Rating Level Rating Margin (bps.) (bps.) Fee (bps.) Drawn Cost
---------------------------------------------------------------------------------------------------------------------------
I A-1+/P-1 7.0 10.5 17.5 5.0 22.5
---------------------------------------------------------------------------------------------------------------------------
II A-1/P-1 7.0 18.0 25.0 5.0 30.0
---------------------------------------------------------------------------------------------------------------------------
III A-2/P-2 10.0 25.0 35.0 10.0 45.0
---------------------------------------------------------------------------------------------------------------------------
IV *A-2/*P-2 15.0 35.0 50.0 12.5 62.5
---------------------------------------------------------------------------------------------------------------------------
* Less than
*** less than or equal to
**** Greater than or equal to
The Rating Level of each Eligible Borrower shall be determined as follows: (a)
with respect to the 364-Day Revolver, the highest senior unsecured long term
debt rating of such Eligible Borrower as provided by S&P or ▇▇▇▇▇'▇, and (b)
with respect to the Multi-Year Revolver, (i) if S&P and/or ▇▇▇▇▇'▇ has assigned
a rating to the senior unsecured long term debt of such Eligible Borrower, the
highest of such ratings, or (ii) if neither S&P nor ▇▇▇▇▇'▇ has assigned a
rating to the senior unsecured debt of such Eligible Borrower, then the highest
short term Commercial Paper rating of such Eligible Borrower as provided by S&P
or ▇▇▇▇▇'▇.
Applicable Euro-Dollar Margins shall be determined first according to the
Ratings Level of the Eligible Borrower making the borrowing.
The Applicable Usage Fee shall be determined by Rating Level of the Eligible
Borrower which yields the highest Applicable Usage Fee. The Applicable Usage Fee
shall apply only to Euro-Dollar Loans.
The Facility Fee shall be determined by the Rating Level of the Eligible
Borrower which yields the highest Facility Fee.
If the Borrowers exercise the one-year term-out-option with respect to Committed
Loans under the 364-Day Revolver, a premium of 15 basis points will be added to
the drawn cost thereunder.
L-1