EX-10.A 4 j9148_ex10da.htm EX-10.A

Exhibit 10(a)

 

AMENDMENT NO. 2 TO CREDIT AGREEMENT

 

AMENDMENT dated as of February 28, 2003 to the Five-Year Credit Agreement dated as of March 1, 2001 (the “Credit Agreement”) among TENET HEALTHCARE CORPORATION (the “Borrower”), the LENDERS, MANAGING AGENTS and CO-AGENTS party thereto, the SWINGLINE BANK party thereto, THE BANK OF NEW YORK, THE BANK OF NOVA SCOTIA and SALOMON SMITH BARNEY INC., as Documentation Agents, BANK OF AMERICA, N.A., as Syndication Agent, and JPMORGAN CHASE BANK, F/K/A MORGAN GUARANTY TRUST COMPANY OF NEW YORK, as Administrative Agent (the “Administrative Agent”).

 

W I T N E S S E T H :

 

WHEREAS, the parties hereto desire to amend the Credit Agreement to (i) change the conditions to borrowings and issuances or extensions of letters of credit as they relate to material adverse changes in the business of the Borrower and its Subsidiaries; (ii) reduce the maximum allowable Leverage Ratio of the Borrower and its Subsidiaries; and (iii) replace the Pricing Schedule attached to the Credit Agreement;

 

NOW, THEREFORE, the parties hereto agree as follows:

 

Section 1.  Defined Terms; References.  Unless otherwise specifically defined herein, each term used herein which is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.  Each reference to “hereof”, “hereunder”, “herein” an “hereby” and each other similar reference and each reference to “this Agreement” and each other similar reference contained in the Credit Agreement shall, after this Amendment becomes effective, refer to the Credit Agreement as amended hereby.

 

Section 2.  Amendment Of The Credit Agreement.  (a)  Section 3.03 of the Credit Agreement is amended by inserting a new clause 3.03(f) to read as follows:  “(f) the Required Lenders have not provided notice to the Administrative Agent that, in their good faith determination, there has been a material adverse change since November 30, 2000 in the business, operations, properties, financial condition or prospects of the Borrower and its Subsidiaries, considered as a whole”.

 

(b)           Section 4.04 is amended by deleting clause (c) in its entirety.

 

(c)           Section 5.09 of the Credit Agreement is amended by replacing the number “3.50” with “2.50”.

 



 

(d)           The Pricing Schedule attached to the Credit Agreement is amended by replacing it with the Pricing Schedule attached hereto.  The retention in the Pricing Schedule of Pricing Levels based on a Leverage Ratio in excess of 2.50 is without prejudice to the rights of the Lending Parties in respect of the Event of Default which would exist in those circumstances under the Credit Agreement as amended hereby.

 

Section 3.  Representations Of Borrower.  The Borrower represents and warrants that (i) the representations and warranties of the Borrower set forth in Article 4 of the Credit Agreement will be true on and as of the Amendment Effective Date and (ii) no Default will have occurred and be continuing on such date.

 

Section 4.  Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of New York.

 

Section 5.  Counterparts.  This Amendment may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.

 

Section 6.  Effectiveness.  This Amendment shall become effective on the date (the “Amendment Effective Date”) when the Administrative Agent shall have received from each of the Borrower and Lenders comprising the Required Lenders a counterpart hereof signed by such party or facsimile or other written confirmation (in form satisfactory to the Administrative Agent) that such party has signed a counterpart hereof.

 

2



 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

 

TENET HEALTHCARE CORPORATION

 

 

 

 

 

By:

/s/ Stephen D. Farber

 

 

 

Title: Chief Financial Officer

 

 

 

 

 

JPMORGAN CHASE BANK

 

 

 

By:

/s/ Jim Ely III

 

 

 

Title: Managing Director

 

 

 

 

 

BANK OF AMERICA, N.A.

 

 

 

 

 

By:

/s/ Kevin Wagley

 

 

 

Title: Principal

 

 

 

 

 

THE BANK OF NOVA SCOTIA

 

 

 

By:

/s/ Jon A. Burckin

 

 

 

Title: Managing Director

 

 

 

 

 

SUNTRUST BANK

 

 

 

 

 

By:

/s/ W. Brooks Hubbard

 

 

 

Title: Director

 

 

 

 

 

FLEET NATIONAL BANK

 

 

 

 

 

By:

/s/ Maryann S. Smith

 

 

 

Title: Director

 



 

 

THE BANK OF NEW YORK

 

 

 

 

 

By:

/s/ Rebecca K. Levine

 

 

 

Title: Vice President

 

 

 

 

 

CITICORP USA, INC.

 

By:

 

 

 

 

Title:

 

 

 

 

 

CREDIT SUISSE FIRST BOSTON

 

 

 

 

 

By:

/s/ Christopher Lally

 

 

 

Title: Vice President

 

 

 

 

 

By:

/s/ Jennifer A. Pieza

 

 

 

Title: Associate

 

 

 

 

 

SUMITOMO MITSUI BANKING CORPORATION

 

 

 

 

 

By:

/s/ Al Galluzzo

 

 

 

Title: Senior Vice President

 

 

 

 

 

UBS AG, STAMFORD BRANCH

 

 

 

 

 

By:

/s/ Wilfred V. Saint

 

 

 

Title: Associate Director

 

 

 

By:

/s/ Anthony N. Joseph

 

 

 

Title: Associate Director

 



 

 

UFJ BANK LIMITED

 

 

 

 

 

By:

/s/ Steve Yamada

 

 

 

Title: Vice President

 

 

 

MERRILL LYNCH CAPITAL CORPORATION

 

 

 

 

 

By:

 

 

 

 

Title:

 

 

 

 

 

MIZUHO CORPORATE BANK, LIMITED

 

 

 

 

 

By:

 

 

 

 

Title:

 

 

 

CREDIT LYONNAIS NEW YORK BRANCH

 

 

 

 

 

By:

/s/ Charles Heideieck

 

 

 

Title: Senior Vice President

 

 

 

 

 

PNC BANK, NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Timothy J. Hornickle

 

 

 

Title: Vice President

 

 

 

 

 

WACHOVIA BANK, NATIONAL ASSOCIATION

 

 

 

 

 

By:

 

 

 

 

Title:

 



 

 

KBC BANK N.V.

 

 

 

 

 

By:

 

 

 

 

Title:

 

 

 

 

 

U.S. BANK NATIONAL ASSOCIATION

 

 

 

 

 

By:

/s/ Christian Stein III

 

 

 

Title: Vice President

 

 

 

BNP PARIBAS

 

 

 

 

 

By:

/s/ Brock Harris

 

 

 

Title: Director

 

 

 

 

 

HUA NAN COMMERCIAL BANK, LTD.

 

 

 

 

 

By:

 

 

 

 

Title:

 

 

 

NATIONAL CITY BANK

 

 

 

 

 

By:

/s/ Roderic M. Brown

 

 

 

Title: Senior Vice President

 

 

 

 

 

SOUTHTRUST BANK

 

 

 

 

 

By:

 

 

 

 

Title:

 

 

 

 

 

By:

 

 

 

 

Title:

 



 

 

PB CAPITAL CORPORATION

 

 

 

 

 

By:

/s/ Chritopher J. Ruzzi

 

 

 

Title: Vice President

 

 

 

By:

/s/ Andrew L. Shipman

 

 

 

Title: Assistant Vice President

 

 

 

 

 

ALLIED IRISH BANK

 

 

 

 

 

By:

/s/ Anthony O’Reilly

 

 

 

Title: Vice President

 

 

 

 

 

By:

/s/ Hilary Patterson

 

 

 

Title: Vice President

 

 

 

 

 

CHINATRUST COMMERCIAL BANK

 

 

 

 

 

By:

 

 

 

 

Title:

 

 

 

 

 

COMERICA BANK

 

 

 

 

 

By:

/s/ Colleen M. Murphy

 

 

 

Title: Vice President

 

 

 

 

 

COMMERCEBANK, N.A.

 

 

 

 

 

By:

/s/ George H. Bermudez

 

 

 

Title: Vice President

 



 

 

TORONTO DOMINION (TEXAS), INC.

 

 

 

 

 

By:

/s/ Mark A. Baird

 

 

 

Title: Vice President

 

 

 

 

 

BANK LEUMI USA

 

 

 

 

 

By:

/s/ Joung Hee Hong

 

 

 

Title: Vice President

 

 

 

HIBERNIA NATIONAL BANK

 

 

 

 

 

By:

/s/ Laura Watts

 

 

 

Title: Vice President

 

 

 

 

 

MORGAN STANLEY BANK

 

By:

 

 

 

 

Title:

 

 

 

BANK OF IRELAND

 

 

 

 

 

By:

 

 

 

 

Title:

 

 

 

 

 

MALAYAN BANKING BERHAD

 

 

 

 

 

By:

/s/ Wan Fadzmi Othman

 

 

 

Title: General Manager

 

 

 

VAN KAMPEN PRIME RATE INCOME TRUST

 

 

 

 

 

By:

 

 

 

 

Title:

 



 

PRICING SCHEDULE

 

The “Facility Fee Rate” and “Euro-Dollar Margin” for any day are the respective rates per annum set forth below in the applicable row under the column corresponding to the Pricing Level and Utilization that apply on such day:

 

Pricing Level

 

Level I

 

Level II

 

Level III

 

Level
IV

 

Level V

 

Level VI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Facility Fee Rate:

 

 

 

 

 

 

 

 

 

 

 

 

 

Utilization > 40%

 

0.500

%

0.500

%

0.500

%

0.500

%

0.500

%

0.500

%

Utilization < 40%

 

0.500

%

0.500

%

0.500

%

0.500

%

0.500

%

0.575

%

Euro-Dollar Margin:

 

 

 

 

 

 

 

 

 

 

 

 

 

Utilization > 40%

 

1.000

%

1.000

%

1.000

%

1.175

%

1.350

%

2.000

%

Utilization < 40%

 

1.000

%

1.000

%

1.000

%

1.125

%

1.275

%

1.925

%

 

For purposes of this Pricing Schedule, the following terms have the following meanings:

 

Level I Pricing” applies during any Rate Period if, at the end of the Preceding Fiscal Quarter, the Leverage Ratio was less than 1.75 to 1.

 

Level II Pricing” applies during any Rate Period if no higher Pricing Level applies and, at the end of the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than 1.75 to 1.

 

Level III Pricing” applies during any Rate Period if no higher Pricing Level applies and, at the end of the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than 2.00 to 1.

 

Level IV Pricing” applies during any Rate Period if no higher Pricing Level applies and, at the end of the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than 2.50 to 1.

 

Level V Pricing” applies during any Rate Period if no higher Pricing Level applies and, at the end of the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than 3.00 to 1.

 

Level VI Pricing” applies during any Rate Period if, at the end of the Preceding Fiscal Quarter, the Leverage Ratio was equal to or greater than 3.25 to 1.

 

 “Preceding Fiscal Quarter” means, with respect to any Rate Period, the most recent Fiscal Quarter ended before such Rate Period begins.

 



 

 “Pricing Level” refers to the determination of which of Level I Pricing, Level II Pricing, Level III Pricing, Level IV Pricing, Level V Pricing or Level VI Pricing applies on any day. Pricing Levels are referred to in ascending order (e.g., Level II Pricing is a higher Pricing Level than Level I Pricing).

 

Rate Period” means any period from and including the 46th day of a Fiscal Quarter to and including the 45th day of the immediately succeeding Fiscal Quarter.

 

Utilization” means, at any date, the percentage equivalent of a fraction (i) the numerator of which is the sum of the aggregate outstanding principal amount of Loans and Swingline Loans and the Aggregate LC Exposure, each at such date, and (ii) the denominator of which is the aggregate amount of the Commitments at such date.  If for any reason any Credit Exposure remains following termination of the Commitments, Utilization shall be deemed to be in excess of 40%.