Item 1.01. Entry into a Material Definitive Agreement.
On
The letters of credit and the proceeds thereof will be used to support or make payment on account of any default by the Borrower or any subsidiary account party in the performance of a commercial obligation under a non-financial agreement or arrangement relating to the performance of services, delivery of goods, or advance payment, or retention or warranty obligations, in each case in connection with business activities in the ordinary course of business of Borrower or such subsidiary, in each case, subject to applicable law and the terms of the A&R LC Facility.
The obligations under the A&R LC Facility are guaranteed, jointly and severally, subject to certain exceptions and thresholds, by each domestic subsidiary and foreign subsidiary that is a wholly-owned restricted subsidiary of the Borrower, other than (as defined in the A&R LC Facility) (i) any Qualified Liquefaction Development Entities, (ii) any Receivables Subsidiaries, (iii) any Immaterial Subsidiaries, (iv) any Captive Insurance Subsidiaries, (v) any not-for-profit or special purpose Subsidiaries and (vi) any Subsidiary with respect to which a guarantee would result in material adverse tax consequences, as reasonably determined by the Borrower (the "guarantors"). The obligations of the Borrower and the guarantors are senior secured obligations of the Borrower and the guarantors, secured on a first-priority basis by liens on the collateral, subject to permitted liens and certain other exceptions. The security interest of the secured parties under the A&R LC Facility in the collateral ranks pari passu with the security interest of the holders of the Company's existing 6.750% Senior Secured Notes due 2025, the Company's existing 6.50% Senior Secured Notes due 2026, and the Company's Revolving Credit Facility, and an equal priority intercreditor agreement governs the treatment of such collateral.
The letters of credit bear interest at a rate equal to (i) a base rate equal to
the higher of the rate last quoted by The Wall Street Journal as the "Prime
Rate" and a rate tied to the
The A&R LC Facility contains usual and customary representations and warranties, and usual and customary affirmative and negative covenants. The affirmative covenants include, among other things, delivery of financial statements, compliance certificates and notices, payment of taxes and other obligations, conduct of business and maintenance of existence, compliance with applicable laws and regulations, maintenance of properties and insurance, maintenance of books and records and provision of guarantees and collateral.
The negative covenants include limitations on restricted payments, dividends and other payment restrictions affecting subsidiaries, indebtedness, asset sales, transactions with affiliates, liens, mergers, consolidation or sale of all or substantially all assets, and maintenance of a total debt to capitalization ratio and a total first lien debt to adjusted EBITDA ratio (which latter covenant shall be tested only if the Borrower is required to test under the Company's Revolving Credit Facility). The A&R LC Facility also contains usual and customary events of default (subject to grace periods), including non-payment of principal, interest, fees and other amounts; material breach of a representation or warranty; covenant defaults, acceleration of other material debt; material judgments; bankruptcy or insolvency; ERISA-related defaults; impairment of security or guarantees; and change of control.
The descriptions of the A&R LC Facility set forth in this Item 1.01 do not
purport to be complete and are qualified in their entirety by reference to the
full text of the A&R LC Facility a copy of which will be filed with the
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03 insofar as it relates to the creation of a direct financial obligation of the Borrower.
Item 9.01. Financial Statements and Exhibits.
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Exhibit No. Description 104 Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.
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