EXHIBIT 10.3
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TERM LOAN AGREEMENT
among
BRANDYWINE REALTY TRUST
and
BRANDYWINE OPERATING PARTNERSHIP, L.P.,
as Borrowers
and
THE LENDERS IDENTIFIED HEREIN
and
JPMORGAN CHASE BANK, N.A.,
as Administrative Agent and Syndication Agent
DATED AS OF January 5, 2006
▇.▇. ▇▇▇▇▇▇ SECURITIES INC.
as Lead Arranger and Sole Bookrunner
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TABLE OF CONTENTS
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SECTION 1. DEFINITIONS AND ACCOUNTING TERMS..................................................1
1.1 Definitions...........................................................................1
1.2 Computation of Time Periods and Other Definition Provisions..........................24
1.3 Accounting Terms.....................................................................24
1.4 Joint Venture Investments............................................................25
SECTION 2. LOAN FACILITY....................................................................25
2.1 Loans................................................................................25
2.2 Joint and Several Liability of the Borrowers.........................................28
2.3 Appointment of BOP...................................................................30
2.4 Non-Recourse.........................................................................30
SECTION 3. GENERAL PROVISIONS APPLICABLE TO LOANS...........................................30
3.1 Interest.............................................................................30
3.2 Place and Manner of Payments.........................................................31
3.3 Prepayments..........................................................................31
3.4 Facility Fee; Administrative Fees....................................................32
3.5 Payment in Full at Maturity..........................................................33
3.6 Computations of Interest and Fees....................................................33
3.7 Pro Rata Treatment...................................................................34
3.8 Sharing of Payments..................................................................34
3.9 Capital Adequacy.....................................................................35
3.10 Inability To Determine Interest Rate.................................................36
3.11 Illegality...........................................................................36
3.12 Requirements of Law..................................................................36
3.13 Taxes................................................................................38
3.14 Compensation.........................................................................40
3.15 Mitigation; Mandatory Assignment.....................................................41
SECTION 4. [RESERVED].......................................................................41
SECTION 5. CONDITIONS PRECEDENT.............................................................41
5.1 Closing Conditions...................................................................41
5.2 Funding Conditions...................................................................43
SECTION 6. REPRESENTATIONS AND WARRANTIES...................................................45
6.1 Financial Condition..................................................................46
6.2 No Material Change...................................................................46
6.3 Organization and Good Standing.......................................................46
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6.4 Due Authorization....................................................................46
6.5 No Conflicts.........................................................................47
6.6 Consents.............................................................................47
6.7 Enforceable Obligations..............................................................47
6.8 No Default...........................................................................47
6.9 Ownership............................................................................48
6.10 Indebtedness.........................................................................48
6.11 Litigation...........................................................................48
6.12 Taxes................................................................................48
6.13 Compliance with Law..................................................................48
6.14 Compliance with ERISA................................................................48
6.15 Organization Structure/Subsidiaries..................................................50
6.16 Use of Proceeds; Margin Stock........................................................50
6.17 Government Regulation................................................................50
6.18 Environmental Matters................................................................50
6.19 Solvency.............................................................................52
6.20 Investments..........................................................................52
6.21 Location of Properties...............................................................52
6.22 Disclosure...........................................................................52
6.23 Licenses, etc........................................................................52
6.24 No Burdensome Restrictions...........................................................53
6.25 Eligible Subsidiaries................................................................53
6.26 Foreign Assets Control Regulations, Etc..............................................53
SECTION 7. AFFIRMATIVE COVENANTS............................................................53
7.1 Information Covenants................................................................53
7.2 Financial Covenants..................................................................58
7.3 Preservation of Existence............................................................58
7.4 Books and Records....................................................................59
7.5 Compliance with Law..................................................................59
7.6 Payment of Taxes and Other Indebtedness..............................................59
7.7 Insurance............................................................................59
7.8 Maintenance of Assets................................................................59
7.9 Performance of Obligations...........................................................60
7.10 Use of Proceeds......................................................................60
7.11 Audits/Inspections...................................................................60
7.12 Additional Loan Parties..............................................................60
7.13 Interest Rate Protection Agreements..................................................61
7.14 Construction.........................................................................61
7.15 Acquisitions and Sales...............................................................61
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SECTION 8. NEGATIVE COVENANTS...............................................................61
8.1 Indebtedness.........................................................................62
8.2 Liens................................................................................62
8.3 Nature of Business...................................................................62
8.4 Consolidation and Merger.............................................................62
8.5 Sale or Lease of Assets..............................................................63
8.6 Advances, Investments and Loans......................................................63
8.7 Restricted Payments..................................................................63
8.8 Transactions with Affiliates.........................................................64
8.9 Fiscal Year; Organizational Documents................................................64
8.10 Limitations..........................................................................64
8.11 Other Negative Pledges...............................................................64
SECTION 9. EVENTS OF DEFAULT................................................................65
9.1 Events of Default....................................................................65
9.2 Acceleration; Remedies...............................................................68
9.3 Allocation of Payments After Event of Default........................................68
SECTION 10. AGENCY PROVISIONS................................................................69
10.1 Appointment..........................................................................69
10.2 Delegation of Duties.................................................................70
10.3 Exculpatory Provisions...............................................................70
10.4 Reliance on Communications...........................................................70
10.5 Notice of Default....................................................................71
10.6 Non-Reliance on Administrative Agent and Other Lenders...............................71
10.7 Indemnification......................................................................72
10.8 Administrative Agent in Its Individual Capacity......................................72
10.9 Successor Agent......................................................................73
SECTION 11. MISCELLANEOUS....................................................................73
11.1 Notices..............................................................................73
11.2 Right of Set-Off.....................................................................74
11.3 Benefit of Agreement.................................................................74
11.4 No Waiver; Remedies Cumulative.......................................................77
11.5 Payment of Expenses; Indemnification.................................................77
11.6 Amendments, Waivers and Consents.....................................................78
11.7 Counterparts/Telecopy................................................................79
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11.8 Headings.............................................................................79
11.9 Defaulting Lender....................................................................79
11.10 Survival of Indemnification and Representations and Warranties.......................80
11.11 Governing Law; Jurisdiction..........................................................80
11.12 Waiver of Jury Trial.................................................................80
11.13 Time.................................................................................81
11.14 Severability.........................................................................81
11.15 Entirety.............................................................................81
11.16 Binding Effect.......................................................................81
11.17 Confidentiality......................................................................82
11.18 Further Assurances...................................................................82
11.19 Release of Guarantors................................................................82
11.20 USA PATRIOT Act......................................................................82
11.21 Limitation on Liability..............................................................83
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SCHEDULES
Schedule EG Eligible Ground Leases
Schedule 6.15 Organization Structure/Subsidiaries
Schedule 6.21 Properties
Schedule 6.25 Eligible Unencumbered Property Subsidiaries
Schedule 8.2 Existing Liens
Schedule 8.6 Excluded Investments
Schedule 11.1 Notices
EXHIBITS
Exhibit 1.1(a) Pro Rata Shares
Exhibit 2.1(b) Form of Notice of Borrowing
Exhibit 2.1(d) Form of Notice of Continuation/Conversion
Exhibit 2.1(f) Form of Note
Exhibit 7.1(c) Form of Officer's Certificate
Exhibit 7.12 Form of Guaranty
Exhibit 11.3 Form of Assignment Agreement
TERM LOAN AGREEMENT
THIS TERM LOAN AGREEMENT (as amended, supplemented or otherwise
modified from time to time, this "LOAN AGREEMENT") is entered into as of January
5, 2006 among BRANDYWINE REALTY TRUST ("BRT"), a Maryland real estate investment
trust, and BRANDYWINE OPERATING PARTNERSHIP, L.P. ("BOP"), a Delaware limited
partnership (collectively, the "BORROWERS"), the Lenders (as defined herein) and
JPMORGAN CHASE BANK, N.A., as Administrative Agent for the Lenders.
RECITALS
WHEREAS, the Borrowers desire that the Lenders provide a term loan
facility in an aggregate amount of $750,000,000; and
WHEREAS, the Lenders party hereto have agreed to make the requested
term loan facility available to the Borrowers on the terms and conditions
hereinafter set forth;
NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
SECTION 1.
DEFINITIONS AND ACCOUNTING TERMS
1.1 DEFINITIONS.
As used herein, the following terms shall have the meanings herein
specified unless the context otherwise requires. Defined terms herein shall
include in the singular number the plural and in the plural the singular:
"ACQUISITION" means the acquisition by merger by BRT of ▇▇▇▇▇▇▇▇ in
accordance with the terms of the Acquisition Purchase Agreement.
"ACQUISITION PURCHASE AGREEMENT" means that certain Agreement and Plan
of Merger, dated as of October 3, 2005, among the Borrowers, ▇▇▇▇▇▇▇▇ and
certain other parties.
"ADJUSTED BASE RATE" means the Base Rate plus 0.25% per annum.
"ADJUSTED EURODOLLAR RATE" means the Eurodollar Rate plus the
Applicable Percentage.
"ADJUSTED NOI" means NOI less (a) an annual sum of $.25 per square foot
for all Properties and (b) all interest income of the Combined Parties for the
applicable period.
"ADMINISTRATIVE AGENT" means JPMorgan Chase Bank, N.A. or any successor
administrative agent appointed pursuant to Section 10.9.
"AFFILIATE" means, with respect to any Person, any other Person
directly or indirectly controlling (including but not limited to all directors
and officers of such Person), controlled by or under direct or indirect common
control with such Person. A Person shall be deemed to control a corporation,
partnership, limited liability company or real estate investment trust if such
Person possesses, directly or indirectly, the power (i) to vote 10% or more of
the securities having ordinary voting power for the election of directors of
such corporation or real estate investment trust or to vote 10% or more of the
partnership or membership interests of such partnership or limited liability
company or (ii) to direct or cause direction of the management and policies of
such corporation, trust, limited liability company or partnership, whether
through the ownership of voting securities, as managing member or general
partner, by contract or otherwise.
"AGENCY SERVICES ADDRESS" means ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇
▇▇▇▇▇ Attn: Loan and Agency, or such other address as may be identified by
written notice from the Administrative Agent to the Borrowers.
"AGENT-RELATED PERSONS" means the Administrative Agent (including any
successor administrative agent), together with its Affiliates (including, in the
case of JPMorgan Chase Bank, N.A. in its capacity as Administrative Agent, ▇.▇.
▇▇▇▇▇▇ Securities Inc.), and the officers, directors, employees, agents and
attorneys-in-fact of such Persons and Affiliates.
"ANNUALIZED MODIFIED ADJUSTED NOI" means an amount equal to (a)
Adjusted NOI for the prior fiscal quarter for all Properties owned during such
entire fiscal quarter multiplied times four plus (b) Adjusted NOI for the number
of days owned for all Properties acquired during such fiscal quarter multiplied
by a fraction equal to 365 divided by the number of days such Property was owned
by a Combined Party.
"APPLICABLE PERCENTAGE" means if either (i) BRT has at least two
Unsecured Senior Debt Ratings in effect or (ii) BOP has at least two Unsecured
Senior Debt Ratings in effect, the appropriate applicable percentages
corresponding to the Pricing Level in the table below based upon the lowest
Unsecured Senior Debt Ratings of (A) BRT, if BRT has at least two Unsecured
Senior Debt Ratings in effect and BOP does not, (B) BOP, if BOP has at least two
Unsecured Senior Debt Ratings in effect and BRT does not or (C) if both BRT and
BOP have at least two Unsecured Senior Debt Ratings in effect, the Borrower with
the lowest Unsecured Senior Debt Rating, in each case as of the most recent
Calculation Date; provided that (x) if either or both of BOP or BRT has three
Unsecured Senior Debt Ratings in effect, the appropriate applicable percentages
shall correspond to the Pricing Level based on the lower Unsecured Senior Debt
Rating of the two highest Unsecured Senior Debt Ratings of the applicable
Borrower under clauses (A), (B) and (C) above and (y) if neither BOP nor BRT has
at least two Unsecured Senior Debt Ratings in effect, the Applicable Percentage
shall be based on Pricing Level II below:
2
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Applicable Percentage for
Pricing Level Unsecured Senior Debt Rating Eurodollar Loans
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I BBB- or better from S&P 1.00%
Baa3 or better from ▇▇▇▇▇'▇ or
BBB- or better from Fitch
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