The Washington 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 for credit facilities provided by the lending institutions to Unilab Corp. This agreement serves as a legally binding document that governs the extension of credit, interest rates, repayment terms, and other crucial aspects of the financial relationship between the parties involved. By outlining these details, the agreement ensures transparency, protects the interests of all parties, and establishes a framework for smooth financial transactions. Key elements of the Washington Credit Agreement: 1. Parties involved: Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp are the main entities involved in this agreement. Each party plays a specific role in the credit arrangement, ensuring a balanced financial structure. 2. Credit facilities: The agreement defines the types and amounts of credit facilities that the lending institutions provide to Unilab Corp. These facilities could include term loans, revolving credit lines, or other forms of financing required to meet Unilab's financial needs. 3. Loan terms: The agreement outlines the specific terms governing the credit facilities, such as the interest rates, repayment periods, and any associated fees or penalties. These terms ensure clarity and accountability for all parties involved. 4. Collateral and security: To secure the credit facilities, the agreement may stipulate the collateral or security that Unilab Corp offers to the lending institutions. This could include assets, inventory, or other valuable guarantees. 5. Financial covenants: The agreement may include financial covenants that Unilab Corp must adhere to throughout the duration of the credit facility. These covenants ensure that certain financial ratios, such as debt-to-equity or interest coverage ratios, are maintained to safeguard the lenders' interests. 6. Default and remedies: The agreement outlines the consequences of a default by Unilab Corp, such as increased interest rates or acceleration of loan repayment. It also specifies the remedies available to the lending institutions in case of default or non-compliance by Unilab Corp. Types of Washington Credit Agreements: 1. Term Loan Agreement: This type of credit agreement provides Unilab Corp with a lump sum loan amount for a specific period, with predetermined repayment terms and interest rates. 2. Revolving Credit Agreement: In this agreement, Unilab Corp is given access to a credit line from which they can withdraw and repay funds as needed. The interest is charged only on the amount borrowed, and the credit limit is usually replenished after repayment. 3. Syndicated Credit Agreement: This agreement involves multiple lenders, where a lead bank or financial institution coordinates the credit facility on behalf of the lending group. This type of agreement spreads the credit risk among various lenders. Overall, the Washington Credit Agreement serves as a vital instrument for managing the financial affairs between Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp. It provides a framework for responsible borrowing, ensures transparency and accountability, and protects the interests of all parties involved.