Wyoming 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

Title: Understanding the Wyoming Credit Agreement between Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp Introduction: In the realm of corporate financing, credit agreements play a crucial role in facilitating financial transactions. This article provides a detailed description of the Wyoming Credit Agreement between Unilab Corp and several esteemed entities, including various lending institutions, Bankers Trust Co, and Merrill Lynch Capital Corp. We will delve into the various types of credit agreements associated with this partnership and shed light on their significance. 1. Wyoming Credit Agreement: Structure and Purpose The Wyoming Credit Agreement is a legally binding document that represents a comprehensive financial arrangement between Unilab Corp, the borrower, and a consortium of lending institutions, including Bankers Trust Co and Merrill Lynch Capital Corp. This agreement establishes the terms, conditions, and obligations for the provision of credit facilities to Unilab Corp. 2. Revolving Credit Agreement: One type of credit agreement in Wyoming involving Unilab Corp and the lending institutions mentioned above is the Revolving Credit Agreement. This type of credit agreement allows Unilab to borrow funds up to a predetermined limit, known as the credit line. Unilab can withdraw, repay, and re-borrow funds multiple times, giving them the flexibility to manage their short-term liquidity needs. 3. Term Loan Agreement: In addition to the revolving credit agreement, Unilab may enter into a Term Loan Agreement with the lending institutions. Unlike the revolving credit agreement, this type of credit agreement provides Unilab with a lump sum loan that must be repaid in installments over a predetermined period. Term loans are typically used for long-term investments such as acquisitions, capital expenditures, or debt refinancing. 4. Syndicated Credit Agreement: Another significant type of credit agreement that Unilab Corp may engage in is the Syndicated Credit Agreement. In this agreement, multiple lending institutions (syndicate) come together to provide a sizable loan to Unilab Corp. Each lender in the syndicate shares a portion of the risk and reward associated with the loan, based on their participation level. 5. Financial Covenants: Credit agreements generally contain financial covenants, which are provisions that aim to protect the interests of the lenders. These covenants may include requirements related to financial reporting, minimum liquidity, leverage ratios, and debt service coverage ratios. Complying with these covenants is essential for Unilab Corp, as any violation could jeopardize the credit agreement and trigger default consequences. Conclusion: The Wyoming Credit Agreement between Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp represents a crucial financial partnership vital for Unilab's growth and operations. The various types of credit agreements available, such as the revolving credit agreement, term loan agreement, and syndicated credit agreement, provide Unilab Corp with the flexibility and resources required to meet short-term and long-term financial obligations. Compliance with financial covenants ensures a healthy relationship between Unilab Corp and its financial partners, facilitating future financial ventures.