CREDIT AGREEMENT
as Borrower,
as Guarantor,
as Administrative Agent,
FINANCIERO BBVA BANCOMER,
as Collateral Agent
and
BANC OF AMERICA SECURITIES LLC,
as Arrangers
Page | ||||
ARTICLE I. DEFINITIONS | 1 | |||
SECTION 1.1Certain Defined Terms | 1 | |||
SECTION 1.2Other Interpretive Provisions | 22 | |||
SECTION 1.3Exchange Rates; Currency Equivalents | 22 | |||
ARTICLE II. LOANS, ETC. | 23 | |||
SECTION 2.1The Loans | 23 | |||
SECTION 2.2Notes | 24 | |||
SECTION 2.3Borrowings and Continuations | 24 | |||
SECTION 2.4Several Obligations; Remedies Independent | 25 | |||
SECTION 2.5Repayment | 25 | |||
SECTION 2.6Optional Prepayments | 25 | |||
SECTION 2.7Optional Reduction of Revolving Commitments | 26 | |||
SECTION 2.8Mandatory Prepayments | 26 | |||
SECTION 2.9Interest | 27 | |||
SECTION 2.10Computation of Interest | 28 | |||
SECTION 2.11Inability to Determine Interest Rate | 28 | |||
SECTION 2.12Fees | 28 | |||
SECTION 2.13Pro Rata Treatment and Payments | 29 | |||
SECTION 2.14Set-Off, Sharing of Payments, Etc. | 30 | |||
ARTICLE III. YIELD PROTECTION, ETC. | 31 | |||
SECTION 3.1Taxes | 31 | |||
SECTION 3.2Illegality | 33 | |||
SECTION 3.3Additional Costs | 33 | |||
SECTION 3.4Funding Losses | 34 | |||
SECTION 3.5Change of Lending Office | 35 | |||
SECTION 3.6Replacement of Lenders | 35 | |||
ARTICLE IV. CONDITIONS PRECEDENT | 36 | |||
SECTION 4.1Conditions to Initial Funding | 36 | |||
SECTION 4.2Conditions Precedent to Each Loan | 37 | |||
SECTION 4.3Satisfaction of Conditions Precedent | 38 | |||
ARTICLE V. REPRESENTATIONS AND WARRANTIES | 38 | |||
SECTION 5.1Status and Licensing | 38 | |||
SECTION 5.2Corporate Power and Authority; Enforceable Obligations | 39 | |||
SECTION 5.3Compliance with Law and Other Instruments | 39 | |||
SECTION 5.4Litigation and Environmental Matters | 39 | |||
SECTION 5.5Governmental Approvals | 40 | |||
SECTION 5.6Financial Information | 40 | |||
SECTION 5.7Taxes, Assessments and Fees | 40 | |||
SECTION 5.8Investment Company Act | 40 |
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SECTION 5.9Accuracy of Information | 41 | |||
SECTION 5.10Absence of Default | 41 | |||
SECTION 5.11Ranking; Recourse; Liens | 41 | |||
SECTION 5.12Withholding Tax | 41 | |||
SECTION 5.13Proper Form | 42 | |||
SECTION 5.14Choice of Law | 42 | |||
SECTION 5.15Immunity | 42 | |||
SECTION 5.16Status of Concession | 42 | |||
SECTION 5.17Property | 43 | |||
SECTION 5.18Subsidiaries | 43 | |||
SECTION 5.19Federal Regulations | 43 | |||
SECTION 5.20Labor Matters | 43 | |||
SECTION 5.21Arrendadora Pledges | 43 | |||
SECTION 5.22Existing Indebtedness | 44 | |||
ARTICLE VI. AFFIRMATIVE COVENANTS | 44 | |||
SECTION 6.1Senior Obligations | 44 | |||
SECTION 6.2Reporting Requirements | 44 | |||
SECTION 6.3Use of Proceeds | 46 | |||
SECTION 6.4Conduct of Business and Maintenance of Existence | 46 | |||
SECTION 6.5Maintenance of Government Approvals | 46 | |||
SECTION 6.6Compliance with Laws and Other Instruments | 47 | |||
SECTION 6.7Maintenance of Property; Insurance | 47 | |||
SECTION 6.8Maintenance of Books and Records and Inspection Rights | 47 | |||
SECTION 6.9Payment of Obligations | 47 | |||
SECTION 6.10Environmental Laws | 47 | |||
SECTION 6.11Filings | 48 | |||
SECTION 6.12Payment of 10.25% Notes Due June 15, 2007 | 48 | |||
SECTION 6.13Additional Guarantors | 48 | |||
ARTICLE VII. NEGATIVE COVENANTS | 49 | |||
SECTION 7.1Financial Covenants | 49 | |||
SECTION 7.2Margin Regulations | 49 | |||
SECTION 7.3Limitation on Restricted Payments | 49 | |||
SECTION 7.4Limitation on Investments | 50 | |||
SECTION 7.5Optional Payments and Modifications of Certain Debt Instruments | 50 | |||
SECTION 7.6Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries | 51 | |||
SECTION 7.7Limitation on Transactions with Affiliates | 51 | |||
SECTION 7.8Limitation on Liens | 51 | |||
SECTION 7.9Limitation on Indebtedness | 53 | |||
SECTION 7.10Limitation on Sale-Leaseback Transactions | 54 | |||
SECTION 7.11Limitation on Asset Sales | 54 | |||
SECTION 7.12Consolidation. Merger and Sale of Assets | 55 | |||
SECTION 7.13Lines of Business | 56 | |||
ARTICLE VIII. EVENTS OF DEFAULT | 56 |
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SECTION 8.1Events of Default | 56 | |||
SECTION 8.2Remedies | 58 | |||
ARTICLE IX. GUARANTEE | 58 | |||
SECTION 9.1Guarantees | 58 | |||
SECTION 9.2Guarantees Unconditional | 59 | |||
SECTION 9.3Discharge OW yupon Payment in Full; Reinstatement In Certain Circumstances | 60 | |||
SECTION 9.4Waiver by the Guarantors | 60 | |||
SECTION 9.5Subrogation | 60 | |||
SECTION 9.6Stay of Acceleration | 61 | |||
ARTICLE X. THE AGENTS | 61 | |||
SECTION 10.1Appointment and Authority | 61 | |||
SECTION 10.2Rights as a Lender | 61 | |||
SECTION 10.3Exculpatory Provisions | 61 | |||
SECTION 10.4Reliance by the Agents | 62 | |||
SECTION 10.5Delegation of Duties | 62 | |||
SECTION 10.6Resignation of an Agent | 63 | |||
SECTION 10.7Non-Reliance on Agents and Other Lenders | 63 | |||
SECTION 10.8No Other Duties, Etc. | 63 | |||
SECTION 10.9Administrative Agent May File Proofs of Claim | 63 | |||
SECTION 10.10Collateral and Guarantee Matters | 64 | |||
ARTICLE XI. MISCELLANEOUS | 64 | |||
SECTION 11.1Financial Data | 64 | |||
SECTION 11.2Expenses; Indemnity; Damage Waiver | 65 | |||
SECTION 11.3Amendments and Waivers, Etc. | 66 | |||
SECTION 11.4Governing Law | 67 | |||
SECTION 11.5Notices; Effectiveness; Electronic Communication | 67 | |||
SECTION 11.6Table of Contents; Headings | 69 | |||
SECTION 11.7Survival | 69 | |||
SECTION 11.8Successors and Assigns | 70 | |||
SECTION 11.9Interest Rate Limitation | 72 | |||
SECTION 11.10Submission to Jurisdiction; Venue; Service; Waiver of Jury Trial | 73 | |||
SECTION 11.11Judgment Currency | 74 | |||
SECTION 11.12Execution in Counterparts | 75 | |||
SECTION 11.13Waiver of Immunities | 75 | |||
SECTION 11.14Severability | 75 | |||
SECTION 11.15Treatment of Certain Information; Confidentiality | 75 | |||
SECTION 11.16No Waiver; Remedies | 76 | |||
SECTION 11.17Entire Agreement | 76 | |||
SECTION 11.18USA PATRIOT Act | 76 |
Annex 1 | Commitments | |
Schedule 5.11 (b) | Existing Liens | |
Schedule 5.17(c) | Insurance Coverage | |
Schedule 5.18 | Subsidiaries | |
Schedule 5.22 | Existing Indebtedness | |
Schedule 7.4 | Existing Investments | |
Schedule 7.6 | Existing Encumbrances or Restrictions | |
Schedule 11.5 | Administrative Agent’s Office; Addresses for Notices | |
Exhibit A | Form of Dollar Loan Note | |
Exhibit B | Form of Tranche A2 Loan Note | |
Exhibit C | Form of Amended and Restated Pledge Without Transfer of Possession Agreement | |
Exhibit D | Form of Amended and Restated Supplemental Pledge Without Transfer of Possession Agreement | |
Exhibit E | Form of Opinion of New York Counsel to the Loan Parties | |
Exhibit F | Form of Opinion of Mexican Counsel to the Loan Parties | |
Exhibit G | Form of Notice of Borrowing/Continuation | |
Exhibit H | Form of Assignment and Assumption | |
Exhibit I | Form of Accession Agreement |
DEFINITIONS
Credit Agreement 1
Consolidated | ||||||||
Leverage Ratio | Applicable Margin | |||||||
Dollar Loans | Tranche A 2 Loans | |||||||
> 4.0x | 2.75 | % | 2.500 | % | ||||
> 3.00x to³ 4.00x | 2.125 | % | 1.875 | % | ||||
£ 3.0x | 1.750 | % | 1.500 | % |
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LOANS, ETC.
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Aggregate outstanding | ||||
Revolving Loans | Commitment Fee Rate | |||
> US$20,000,000 | 0.50 | % | ||
³ US$10,000,000 to£ US$20,000,000 | 0.75 | % | ||
< US$10,000,000 | 1.00 | % |
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YIELD PROTECTION, ETC.
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Credit Agreement 32
Credit Agreement 33
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CONDITIONS PRECEDENT
Credit Agreement 36
Credit Agreement 37
REPRESENTATIONS AND WARRANTIES
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Credit Agreement 39
Credit Agreement 40
Credit Agreement 41
Credit Agreement 42
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AFFIRMATIVE COVENANTS
Credit Agreement 44
Credit Agreement 45
Credit Agreement 46
Credit Agreement 47
Credit Agreement 48
NEGATIVE COVENANTS
Credit Agreement 49
(a) | Investments existing on the Effective Date and set forth on Schedule 7.4; | ||
(b) | Temporary Cash Investments; | ||
(c) | stock, obligations or securities received in satisfaction of judgments; and | ||
(d) | Investments in any Loan Party. |
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EVENTS OF DEFAULT
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GUARANTEE
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THE AGENTS
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MISCELLANEOUS
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TFM, S.A. DE C.V., as Borrower | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
ARRENDADORA TFM, S.A. DE C.V., as Guarantor | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: |
BANK OF AMERICA, N.A., as Administrative Agent | ||||
By: | ||||
Name: | ||||
Title: |
BBVA BANCOMER, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO BBVA BANCOMER, as Collateral Agent | ||||
By: | ||||
Name: | ||||
Title: |
LENDERS BBVA BANCOMER, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO BBVA BANCOMER, GRAND CAYMAN BRANCH | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Grand Cayman, Cayman Islands | ||||
BBVA BANCOMER, S.A., INSTITUCIÓN DE BANCA MÚLTIPLE, GRUPO FINANCIERO BBVA BANCOMER | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Mexico City, D.F., Mexico |
BANK OF AMERICA, N.A., | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Concord, California, United States of America | ||||
BANK OF AMERICA, N.A., | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Mexico City, D.F., Mexico |
EXPORT DEVELOPMENT CANADA | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Ottawa, Ontario, Canada |
KFW | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Frankfurt, Germany |
BANK OF MONTREAL | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Chicago, Illinois, United States of America |
THE BANK OF NOVA SCOTIA | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: New York, New York, United States of America |
JPMORGAN CHASE BANK, N.A. | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: New York, New York, United States of America |
RAIFFEISEN ZENTRALBANK OSTERREICH AG | ||||
By: | ||||
Name: | ||||
Title: | ||||
By: | ||||
Name: | ||||
Title: | ||||
Lending Office: Vienna, Australia |
to Credit Agreement
TRANCHE 1 COMMITMENT | TRANCHE 2 COMMITMENT | TRANCHE B COMMITMENT | ||||||||||||||||||||||
LENDERS | AMOUNT (US$) | % | AMOUNT (US$) | % | AMOUNT (US$) | % | ||||||||||||||||||
Bbva Bancomer, S.A. Institución de Banca Múliple, Grupo Financiero BBVA Bancomer, Grand Cayman Branch | 12,050,500 | 15.856 | ||||||||||||||||||||||
Bbva Bancomer, S.A. Institución de Banca Múliple, Grupo Financiero BBVA Bancomer | 5,949,500 | 56.775 | ||||||||||||||||||||||
Bank of America, N.A. | 11,470,500 | 15.093 | ||||||||||||||||||||||
Bank of America Mexico, N.A. | 4,529,500 | 43.225 | V | |||||||||||||||||||||
Export Development Canada | 4,244,000 | 21.741 | 10,756,000 | 14.153 | ||||||||||||||||||||
KfW | 4,244,000 | 21.741 | 10,756,000 | 14.153 | ||||||||||||||||||||
Bank of Montreal | 4,244,000 | 21.741 | 10,756,000 | 14.153 | ||||||||||||||||||||
Bank of Nova Scotia | 2,263,000 | 11.593 | 6,737,000 | 8.864 | ||||||||||||||||||||
JPMorgan Chase Bank, N.A. | 2,263,000 | 11.593 | 6,737,000 | 8.864 | ||||||||||||||||||||
Raiffeisen Zentralbank Oesterreich AG | 2,263,000 | 11.593 | 6,737,000 | 8.864 | ||||||||||||||||||||
Total | 19,521,000 | 10,479,000 | 76,000,000 |