EX-99.1 2 l26443aexv99w1.htm EX-99.1 EX-99.1
 

Exhibit 99.1
SECOND AMENDMENT TO CREDIT AGREEMENT
     THIS SECOND AMENDMENT TO CREDIT AGREEMENT dated as of May 25, 2007 (the “Amendment”) is entered into among CINCINNATI BELL INC., an Ohio corporation (the “Borrower”), the Guarantors signatories hereto, the Lenders signatories hereto and BANK OF AMERICA, N.A., as Administrative Agent and an L/C Issuer, and PNC BANK, NATIONAL ASSOCIATION, as Swingline Lender and an L/C Issuer.
RECITALS
     A. The Borrower, the Guarantors, the Lenders, the Swingline Lender, the L/C Issuers and the Administrative Agent are party to that certain Credit Agreement originally dated as of February 16, 2005 (as amended, modified, restated or supplemented from time to time prior to the Second Amendment Effective Date, the “Existing Credit Agreement”);
     B. The Borrower has requested that the Lenders amend the Existing Credit Agreement as set forth below; and
     C. The parties have agreed to amend the amendments upon the terms and conditions contained in this Amendment.
     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:
     1. Certain Definitions. The following terms used in this Amendment, including its preamble and recitals, have the following meanings:
     “Amended Credit Agreement” means the Existing Credit Agreement as amended hereby.
     “Second Amendment Effective Date” shall have the meaning assigned to such term in introductory paragraph of Section 4 hereof.
     2. Other Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in this Amendment, including its preamble and recitals, have the meanings provided in the Amended Credit Agreement.
     3. Amendment to Existing Credit Agreement. Section 8.03(n) of the Credit Agreement is hereby amended to read as follows:
     (n) Indebtedness arising under Capital Leases and Synthetic Leases hereinafter incurred by the Borrower or any of its Subsidiaries in an aggregate principal amount that, when taken together with the Remaining Present Value of outstanding Capital Leases and Synthetic Leases relating to Sale and Leaseback Transactions entered into in accordance with Section 8.05(ii), does not exceed $75,000,000 at any one time outstanding;
     4. Conditions Precedent. This Amendment shall become effective as of the date hereof upon satisfaction of the following conditions precedent (the “Second Amendment Effective Date”):


 

     (a) Receipt by the Administrative Agent of counterparts of this Amendment duly executed by the Borrower, the Guarantors, the Required Lenders and the Administrative Agent; and
     (b) Receipt by the Administrative Agent of any expenses payable in connection with this Amendment.
     5. Miscellaneous.
     (a) Representations and Warranties. Each of the Loan Parties represents and warrants to the Lenders and the Administrative Agent as follows:
     (i) It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.
     (ii) This Amendment has been duly executed and delivered by such Loan Party and constitutes such Loan Party’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be limited (x) by general principles of equity and conflicts of laws (whether enforcement is sought by proceedings in equity or at law) or (y) by Debtor Relief Laws.
     (iii) No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Loan Party of this Amendment (except for those which have been obtained on or prior to the Second Amendment Effective Date).
     (iv) The execution and delivery of this Amendment does not diminish or reduce its obligations under the Loan Documents (including, without limitation, in the case of each Guarantor, such Guarantor’s guaranty pursuant to Article IV of the Existing Credit Agreement) in any manner.
     (v) The representations and warranties of the Loan Parties set forth in Article VI of the Existing Credit Agreement are true and correct in all material respects as of the Second Amendment Effective Date; provided that the reference to the date of the Audited Financial Statements in Section 6.05(e) of the Amended Credit Agreement shall be deemed to be replaced by a reference to December 31, 2006. All of the provisions of the Loan Documents, except as amended hereby, are in full force and effect.
     (vi) Subsequent to the execution and delivery of this Amendment and after giving effect hereto, no unwaived event has occurred and is continuing on the date hereof which constitutes a Default or an Event of Default.
     (b) Liens. Each Loan Party affirms the liens and security interests created and granted by it in the Loan Documents (including, but not limited to, the Shared Collateral Security Agreement and the Non-Shared Collateral Security Agreement) and agrees that this Amendment shall in no manner adversely affect or impair such liens and security interests.
     (c) Effect of Amendment. Except as expressly modified and amended in this Amendment, all of the terms, provisions and conditions of the Loan Documents shall remain unchanged and in full force and effect. On and after the Second Amendment Effective Date, any


 

reference in the Loan Documents or any and all other documents thereafter executed and delivered pursuant to the terms of the Loan Documents to the “Credit Agreement” shall be deemed to refer to the Amended Credit Agreement.
     (d) Construction. This Amendment is a Loan Document executed pursuant to the Existing Credit Agreement and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Amended Credit Agreement.
     (e) Reaffirmation of Loan Party Obligations. Each Loan Party hereby ratifies the Amended Credit Agreement and acknowledges and reaffirms (i) that it is bound by all terms of the Amended Credit Agreement and (ii) that it is responsible for the observance and full performance of the Obligations. Without limiting the generality of the proceeding sentence, each of the Guarantors confirms that it jointly and severally guarantees the prompt payment when due of all Obligations in accordance with, and pursuant to the terms of, Article IV of the Amended Credit Agreement.
     (f) Counterparts. This Amendment may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.
     (g) GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
     (h) Binding Effect. This Amendment, the Amended Credit Agreement and the other Loan Documents embody the entire agreement between the parties and supersede all prior agreements and understandings, if any, relating to the subject matter hereof. These Loan Documents represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties. Except as expressly modified and amended in this Amendment, all the terms, provisions and conditions of the Loan Documents shall remain unchanged and shall continue in full force and effect.
     (i) Severability. If any provision of this Amendment is held to be illegal, invalid or unenforceable, (i) the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby and (ii) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
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     IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.
           
BORROWER:   CINCINNATI BELL INC.,
an Ohio corporation
 
       
 
       
 
  By:    
 
       
 
  Name:    
 
       
 
  Title:    
 
       
CINCINNATI BELL INC.
SECOND AMENDMENT TO CREDIT AGREEMENT


 

           
GUARANTORS:   CINCINNATI BELL TELECOMMUNICATION SERVICES LLC,
an Ohio limited liability company
 
       
    CINCINNATI BELL ENTERTAINMENT INC.
(formerly known as Zoomtown.com Inc.), an Ohio corporation
 
       
    CINCINNATI BELL COMPLETE PROTECTION INC.,
an Ohio corporation
 
       
    CINCINNATI BELL WIRELESS COMPANY,
an Ohio corporation
 
       
    CINCINNATI BELL WIRELESS LLC
an Ohio limited liability company
 
       
    CINCINNATI BELL TECHNOLOGY SOLUTIONS INC.,
a Delaware corporation
 
       
    BRCOM INC., a Delaware corporation
 
       
    MVNO HOLDINGS LLC,
a Delaware limited liability company
 
       
    CINCINNATI BELL ANY DISTANCE INC.,
a Delaware corporation
 
       
    IXC INTERNET SERVICES, INC.,
a Delaware corporation
 
       
    BCSIVA INC., a Virginia corporation
 
       
 
       
 
  By:    
 
       
 
  Name:    
 
       
 
  Title:    
 
       
CINCINNATI BELL INC.
SECOND AMENDMENT TO CREDIT AGREEMENT


 

           
ADMINISTRATIVE AGENT:   BANK OF AMERICA, N. A.,
as Administrative Agent
 
       
 
       
 
  By:    
 
       
 
  Name:    
 
       
 
  Title:    
 
       
CINCINNATI BELL INC.
SECOND AMENDMENT TO CREDIT AGREEMENT


 

           
    BANK OF AMERICA, N. A.,
as a Lender
 
       
 
       
 
  By:    
 
       
 
  Name:    
 
       
 
  Title:    
 
       
CINCINNATI BELL INC.
SECOND AMENDMENT TO CREDIT AGREEMENT


 

           
LENDER:   [INSERT LENDER NAME]
 
       
 
       
 
  By:    
 
       
 
  Name:    
 
       
 
  Title:    
 
       
CINCINNATI BELL INC.
SECOND AMENDMENT TO CREDIT AGREEMENT