Kansas Credit Agreement between Unilab Corp, Various Lending Institutions, Bankers Trust Co and Merrill Lynch Capital Corp

• Category: Corporations - Public - Credit
• State: Multi-State
• Control #: US-EG-9197
• Format: Word; Rich Text

Description

Credit Agreement between Unilab Corporation, Various Lending Institutions, Bankers Trust Company and Merrill Lynch Capital Corporation dated November 23, 1999. 110 pages

The Kansas Credit Agreement between Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp is a comprehensive financial arrangement that outlines the terms and conditions of credit extended to Unilab Corp by these entities. This agreement serves as a legally binding document ensuring transparency, accountability, and coherence in the credit relationship. Key features of the Kansas Credit Agreement include: 1. Loan Amount and Purpose: The agreement specifies the initial loan amount and details how the credit will be utilized by Unilab Corp. This ensures that all parties involved have a clear understanding of the financial requirements. 2. Interest Rates and Repayment Terms: The agreement outlines the interest rates applicable to the loan, as well as the repayment schedule and any prepayment penalties. It defines the conditions under which the interest rates may change over the term of the loan. 3. Collateral and Security: The agreement may require Unilab Corp to provide collateral to secure the loan. This ensures that the lenders have a means of recourse in case of default. Examples of collateral may include property, equipment, accounts receivable, or inventory. 4. Covenants and Compliance: The agreement establishes certain covenants — conditions that Unilab Corp must adhere to — to maintain the credit relationship. These covenants may include requirements related to financial performance, reporting obligations, and restrictions on additional borrowing. 5. Events of Default: The agreement describes the circumstances under which the lenders can declare a default, such as missed payments, breaches of covenants, or changes in ownership. It also outlines the consequences and remedies available to the lenders in case of default. 6. Fees and Expenses: The document states any fees or expenses associated with the credit arrangement, such as origination fees, commitment fees, or legal expenses. Types of Kansas Credit Agreements: 1. Revolving Line of Credit Agreement: This type of credit agreement provides Unilab Corp with a pre-approved credit limit that it can use and repay multiple times, typically over a specified period. It offers flexibility for managing short-term financing needs, such as working capital requirements. 2. Term Loan Agreement: In this type of credit agreement, Unilab Corp receives a specific amount of credit, typically repaid over a predetermined period with fixed monthly installments. Term loans are commonly used for large investments or acquisitions when the funds are required for an extended period. 3. Secured Credit Agreement: This agreement involves the provision of collateral by Unilab Corp to secure the loan. By offering assets as security, Unilab Corp may receive more favorable terms, such as lower interest rates or higher credit limits, while reducing the lender's risk. In conclusion, the Kansas Credit Agreement between Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp is a crucial financial arrangement that outlines the terms and conditions involved in extending credit to Unilab Corp, ensuring a clear understanding and mutual agreement between all parties involved.