Document:

S&S DRAFT

Exhibit (10)(i)(1.6)

 

EXECUTION COPY

 

AMENDMENT AND

CONSENT NO. 6 TO THE

LOAN DOCUMENTS

 

Dated as of March 1, 2002                  

 

AMENDMENT

AND CONSENT NO. 6 TO THE LOAN DOCUMENTS (this “Amendment”) among

BROADWING INC. (f/k/a Cincinnati Bell Inc.), an Ohio corporation (“Broadwing”), and

BROADWING COMMUNICATIONS SERVICES INC. (f/k/a IXC Communications Services,

Inc.), a Delaware corporation (“Broadwing Communications Services”, and together with

Broadwing, each a “Borrower”

and collectively the “Borrowers”),

the banks, financial institutions and other institutional lenders parties to

the Credit Agreement (as defined below) (the “Lenders”), BANK OF AMERICA, N.A., as

syndication agent, CITICORP USA, INC., as administrative agent (the “Administrative Agent”),

and the other agents party to the Credit Agreement.

 

PRELIMINARY

STATEMENTS:

 

(1)           Each Borrower, the Lenders and the

Administrative Agent have entered into an Amendment and Restatement of the

Credit Agreement dated as of January 12, 2000, and amendments thereto dated as

of May 17, 2000, November 3, 2000, June 12, 2001, June 27, 2001 and December

13, 2001 (such Amendment and Restatement of the Credit Agreement, as so

amended, supplemented or otherwise modified through the date hereof, the “Credit Agreement”).  Capitalized terms not otherwise defined in

this Amendment have the same meanings as specified in the Credit Agreement or

the Security Agreements referred to below, as the case may be.

 

(2)           Broadwing has entered into an Asset

Purchase Agreement (the “Asset

Purchase Agreement”) dated as of February 4, 2002 with

Cincinnati Bell Directory Inc. (“Directory”) and CBD Media, Inc. (“CBD Media”) to sell

substantially all of the assets of Directory to CBD Media (the “Directory Sale”).  After the consummation of the Directory Sale,

Directory may be merged into Broadwing.

 

(3)           In connection with the Directory

Sale, Broadwing and Directory will make an equity contribution in the amount of

$8,846,000 to CBD Media (the “Equity Contribution”) in exchange for 2.5% of the

outstanding shares of common stock of CBD Media Holdings, Inc., a Delaware

corporation and sole shareholder of CBD Media (the “CBD Equity Interest”).

 

(4)           Cincinnati Bell Wireless Company

intends to sell (the “Spectrum

Asset Sale”) certain spectrum assets (the “Spectrum Assets”) to

a third party (the “Financier”)

who will, in turn, sell the Spectrum Assets, either directly or indirectly

through a newly created Subsidiary of CBI (“Newco”), to Cincinnati Bell Wireless

L.L.C. (“Wireless”)

and such Financier will provide financing (the “Financing”) for the Spectrum Asset Sale

to Newco or Wireless which Financing will be guaranteed by CBI (collectively,

the “Spectrum

Transaction”).

 

 

(5)           The Borrowers have requested and the

Lenders have agreed to consent to the Directory Sale, the Equity Contribution

and the Spectrum Transaction upon the terms and conditions set forth herein and

to further amend the Loan Documents as hereinafter set forth.

 

SECTION 1.   Consents under the Credit Agreement.  (a)             Each

of the Lenders and the Administrative Agent hereby consent to the Directory

Sale by Broadwing, and solely in connection with the Directory Sale, waive any

and all Defaults and Events of Default under Sections 5.01(e), 5.02(d), (e),

(l) or 7.01(c) that would result from the Directory Sale and the possible

merger of Directory into Broadwing; provided

that (i) the Directory Sale is consummated substantially on the terms as set

forth in the Asset Purchase Agreement (without any amendments, waivers or other

modifications thereto which have not been approved by the Administrative Agent

and the Required Lenders); (ii) the Directory Sale shall occur on or before May

6, 2002; (iii) immediately before and after giving effect to the Directory Sale

and this Amendment, no Default or Event of Default shall have occurred and be

continuing or would result therefrom; and (iv) on the date of receipt of the

Net Cash Proceeds related to the Directory Sale (the “Prepayment Date”),

100% of the Net Cash Proceeds less the amount of the Equity Contribution (the “Adjusted Net Cash Proceeds”)

received from the Directory Sale shall be applied to prepay the Facilities in

accordance with clause (b) below.

 

(b)           Notwithstanding

anything to the contrary in Section 2.06(b)(ii) of the Credit Agreement, each

of the Lenders and the Administrative Agent hereby agree that the Adjusted Net

Cash Proceeds received by Broadwing from the Directory Sale shall be

(i) allocated  pro rata to

the Term A Advances, the Incremental Term B Advances and the Incremental Term C

Advances and (ii) applied (x) in the case of the Incremental Term B Advances

and the Incremental Term C Advances, to the installments thereof pro rata to

the remaining installments thereof, and (y) in the case of the Term A Advances,

to the remaining installments thereof in order of maturity.

 

(c)           Each of the Lenders and the Administrative Agent hereby

consent to the Equity Contribution by Broadwing and Directory, and solely in

connection with the Equity Contribution, waive any and all Defaults and Events

of Default under Sections 5.02(f), (g) or 7.01(c) that would result from the

Equity Contribution; provided that

(i) immediately before and after giving effect thereto and to this Amendment,

no Default or Event of Default shall have occurred and be continuing or would result

therefrom, (ii) neither the Borrowers nor any Subsidiary shall become liable

for the Debt of CBD Media Holdings except to the extent the Borrowers or such

Subsidiary would be permitted under Section 5.02(b) to incur such Debt, (iii)

after the consummation of the Equity Contribution, all of the CBD Equity

Interests held by the Borrowers or any Subsidiary are held by Broadwing

Holdings Inc., (iv) the Directory Sale shall have been consummated concurrently

with or prior to the Equity Contribution, and (v) the amount of the Equity

Contribution shall be excluded from the computation of the amount of

Investments made by the Borrowers and their Subsidiaries pursuant to Section

5.02(f) for purposes of determining compliance with such Section.

 

(d)           Each of the Lenders and the Administrative Agent hereby

consent to the Spectrum Transaction, and solely in connection with the

consummation of the Spectrum Transaction, waive any and all Defaults and Events

of Default under Sections 2.06(b)(iii), 5.02(a), (b), (e), (f), (l), (o), (p)

or 7.01(c) that would result from the Spectrum Transaction;

 

2

 

 

provided that (i)

the gross proceeds received from the Spectrum Asset Sale shall be at least

equal to the fair market value of the property and assets so sold as determined

at the time of such sale; (ii) at least 80% of the value of the aggregate

consideration received from the Spectrum Asset Sale shall be in cash and shall

be received within 5 Business Days after the date of consummation of such sale;

(iii) immediately before and after giving effect thereto and to this Amendment,

no Default or Event of Default shall have occurred and be continuing or would

result therefrom; (iv) on the date of the Spectrum Asset Sale, 100% of the Net

Cash Proceeds received from the Spectrum Asset Sale shall be applied to prepay

the Facilities ratably first to the

Term A Advances, the Incremental Term B Advances and the Incremental Term C

Advances and to the installments thereof pro rata to the remaining installments

thereof and second to the Revolving Credit Advances

as set forth in clause 2.06(b)(vi) of the Credit Agreement; (v) in the event

that Newco is created to acquire or lease the Spectrum Assets or participate in

the Financing, Newco will be a wholly-owned direct or indirect Subsidiary of

Broadwing, (vi) the conditions of Section 5.01(j) (II) of the Credit Agreement

are satisfied in accordance with their terms, (vii) the Debt incurred by Newco

or Wireless with respect to the Financing (the “Financing

Debt”) does not exceed $60,000,000; (viii) the Financing Debt is

secured solely by the Spectrum Assets, (ix) the Financing Debt is non-recourse

to the Borrowers and their Subsidiaries; provided that

Broadwing may guarantee the Financing Debt so long as such guarantee is

unsecured and is subordinated to the Obligations of the Loan Parties under the

Loan Documents pursuant to a subordination agreement in form and substance

reasonably satisfactory to the Administrative Agent, and  (x) the other terms and conditions of the

Spectrum Transaction are reasonably satisfactory to the Administrative Agent.

The amount of the Financing Debt and the Spectrum Asset Sale shall be excluded

from the computation of the amount of Debt incurred by the Borrowers and their

Subsidiaries pursuant to Section 5.02(b)(iii) and the amount of asset sales,

leases and transfers made by the Borrowers and their Subsidiaries with respect

to Section 5.02(e) for purposes of determining compliance with such Sections

.

SECTION 2.   Amendments to the Credit Agreement.  The Credit Agreement is, effective as of the

Amendment No. 6 Effective Date and subject to the satisfaction of the

conditions precedent set forth in Section 3, hereby amended as follows:

 

(a)           The following definitions in Section 1.01 are amended

as hereafter set forth:

 

(i)            The definition of “Consolidated EBITDA”

is amended by deleting the word “and” immediately preceding clause (vi) and

adding a new clause (vii) to read as follows:

 

“and (vii) all charges

taken in accordance with SFAS 142 (the “SFAS 142 Charges”)”.

 

(ii)           Clause (v) of the definition of “Consolidated EBITDA”

is hereby amended to delete the first comma in the first line thereof between

the words “non-cash” and “non-recurring” and substitute therefor the word “or”

and to delete the comma in the nineteenth line thereof between the words

“non-cash” and “non-recurring” and substitute therefor the word “or”.

 

3

 

(iii)          The definition of “Excess Cash Flow”

is amended by adding the words “adjusted to exclude any cash gains attributable

to any transaction that requires prepayment of Term Advances pursuant to

Section 2.06(b)” to the end of clause (a)(i) thereof.

 

(b)           Section 1.01 is further amended by adding the following

new definition in alphabetical order:

 

“‘Incremental Term B Lender’

means each Lender that has made an Incremental Term B Advance.”

 

(c)           Section 5.02(b)(i)(B) of the Credit Agreement is amended

by deleting the figure “$500 million” in clause (y) and substituting therefor

the figure “$1 billion” and by adding at the end of such subsection immediately

prior to the period a proviso to read

as follows:

 

“; provided

that 100% of the Net Cash Proceeds of any additional Subordinated Debt in

excess of $500 million principal amount issued after the date hereof shall be

applied to prepay the Facilities ratably first

to the Term A Advances, the Incremental Term B Advances and the Incremental

Term C Advances and to the installments thereof pro rata to the remaining installments

thereof and second to the

Revolving Credit Advances as set forth in clause 2.06(b)(vi) of the Credit

Agreement (it being understood that all expenses or other amounts deducted in

determining the calculation of Net Cash Proceeds shall be applied equally over

the total principal amount of the Subordinated Debt being issued and shall

reduce the principal amount of such Subordinated Debt in excess of $500 million

only by the amount of such expenses attributable to such excess)”

 

(d)           Section 5.02(b)(iii)(C) of the Credit Agreement is amended

by deleting the figure “$75,000,000” and substituting therefor the figure

“$125,000,000”.

 

(e)           Section 5.02(b)(iii)(H) of the Credit Agreement is amended

by deleting the figure “$10,000,000” and substituting therefor the figure

“$20,000,000”.

 

(f)            Section 5.02(d) is amended by deleting the word “and”

immediately preceding clause (iii), adding the phrase “; and” at the end of

clause (iii) immediately before the “;” and adding a new clause (iv) to read as

follows:

 

“(iv) the Subsidiaries of Mutual Signal Holding Corp.

may merge into Mutual Signal Holding Corp.;”

 

(g)           Section 5.02(g) is amended by deleting the word “and”

immediately preceding clause (vi), adding the phrase “, and” at the end of

clause (vi) immediately before the period and adding a new clause (vii) to read

as follows:

 

“(vii)  (x) any

Subsidiary of CBI may make a dividend of Equity Interests, or distribution of

Equity Interests, of any of its Subsidiaries to the Borrowers or any

wholly-owned Subsidiary of CBI that is a Subsidiary Guarantor and (y) Mutual

Signal Holding Corp. may distribute all or substantially all of its assets to

IXCS; provided in the

 

4

 

case of clauses (x) and

(y) such dividend or distribution is not materially adverse to the Lenders in

the sole determination of the Administrative Agent”.

 

(h)           Section 5.04(d) is amended by amending the schedule

therein to delete the numbers “3.50”, “3.50”, and “3.50” for the periods ending

December 31, 2003 through June 30, 2004 and substituting therefor the following

numbers set forth opposite the dates referred to below:

 

	

  “Period Ending

  	

   

  	

  Ratio

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  December 31,

  2003

  	

   

  	

  2.75

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  March 31, 2004

  	

   

  	

  3.00

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  June 30, 2004

  	

   

  	

  3.25

  	

  ”

  

 

SECTION 3.   Conditions of Effectiveness.  This Amendment shall become effective as of

the date first above written (the “Amendment No. 6 Effective Date”) when, and

only when, each of the following conditions precedent shall have been

satisfied:

 

(a)           The Administrative Agent shall have received counterparts

of (x) this Amendment executed by the undersigned, the Required Lenders and

Lenders holding over 50% of the Term A Advances or, as to any of the Lenders,

advice satisfactory to the Administrative Agent that such Lender has executed

this Amendment, and (y) the Consent attached hereto executed by each of the

Subsidiary Guarantors;

 

(b)           The representations and warranties set forth in each of

the Loan Documents shall be correct in all material respects on and as of the

Amendment No. 6 Effective Date, before and after giving effect to this

Amendment, as though made on and as of such date (except for any such

representation and warranty that, by its terms, refers to a specific date other

than the Amendment No. 6 Effective Date, in which case as of such specific

date);

 

(c)           The Administrative Agent shall have received an executed

copy of the Asset Purchase Agreement in form and substance satisfactory to the

Administrative Agent and the Lenders;

 

(d)           No event shall have occurred and be continuing, or shall

result from the effectiveness of this Amendment that constitutes a Default or

Event of Default (other than the Defaults and Events of Default expressly

waived under Section 1);

 

(e)           All of the accrued fees then due and invoiced expenses of

the Administrative Agent and the Lenders, including the invoiced fees and

expenses of counsel for the Administrative Agent, shall have been paid in full;

and

 

(f)            An amendment fee equal to 0.125% of the aggregate

outstanding Term Advances (after giving effect to the Directory Sale and the

prepayment of the Term Advances in connection therewith) and Revolving Credit

Commitments of each Lender that delivers to the Administrative Agent a duly

executed counterpart of this Amendment on or before 5:00 p.m.,

 

5

 

New York City time, on March 1, 2002, shall

have been paid in full; provided

that executed counterparts of this Amendment shall have been received from the

Required Lenders and each required Term A Lender on or before the date hereof; provided further that in the event that the Directory Sale

is not consummated by May 6, 2002, the Borrowers shall pay to such Lenders on

the earlier of (i) May 8, 2002 and (ii) the date of termination of the Asset

Purchase Agreement, an additional amendment fee equal to 0.125% of the

aggregate amount of Term Advances that would have been prepaid with the

proceeds of such Directory Sale.

 

The effectiveness

of this Amendment is further conditioned upon the accuracy of all of the

factual matters described herein.  This

Amendment is subject to the provisions of Section 9.01 of the Credit

Agreement.

 

SECTION 4. Reference

to and Effect on the Loan Documents. 

(a)  On and after the

effectiveness of this Amendment, each reference in the Credit Agreement to

“this Agreement”, “hereunder”, “hereof” or words of like import referring to

the Credit Agreement, and each reference in the Notes and each of the other

Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like

import referring to the Credit Agreement, shall mean and be a reference to the

Credit Agreement, as amended by this Amendment.

 

(b)           The Credit Agreement, as specifically amended by this

Amendment, and the other Loan Documents are and shall continue to be in full

force and effect and are hereby in all respects ratified and confirmed.  Without limiting the generality of the

foregoing, the Collateral Documents and all of the Collateral described therein

do and shall continue to secure the payment of all Obligations of the Loan

Parties under the Loan Documents, in each case as amended by this Amendment.

 

(c)           The execution, delivery and effectiveness of this

Amendment shall not, except as expressly provided herein, operate as a waiver

of any right, power or remedy of any Lender or the Administrative Agent under

any of the Loan Documents, nor constitute a waiver of any provision of any of

the Loan Documents.

 

SECTION 5. Costs,

Expenses.  Each of the Borrowers

hereby severally agree to pay on demand all reasonable costs and expenses of

the Administrative Agent in connection with the preparation, execution,

delivery and administration, modification and amendment of this Amendment

(including, without limitation, the reasonable fees and expenses of counsel for

the Administrative Agent) in accordance with the terms of Section 9.04 of

the Credit Agreement.

 

SECTION 6. Execution

in Counterparts.  This Amendment may

be executed in any number of counterparts and by different parties hereto in

separate counterparts, each of which when so executed shall be deemed to be an

original and all of which taken together shall constitute but one and the same

agreement.  Delivery of an executed

counterpart of a signature page to this Amendment by telecopier shall be

effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION 7. Governing

Law.  This Amendment shall be

governed by, and construed in accordance with, the laws of the State of

New York.

 

[Remainder of this page

intentionally left blank.]

 

6

 

IN WITNESS

WHEREOF, the parties hereto have caused this Amendment to be executed by their

respective officers thereunto duly authorized, as of the date first above

written.

 

 

	

   

  	

  BROADWING

  INC. (f/k/a CINCINNATI BELL INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING

  COMMUNICATIONS

  
	

   

  	

  SERVICES

  INC. (f/k/a IXC COMMUNICATIONS SERVICES, INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

  Agreed as of

  the date first above written:

  	

   

  
	

   

  	

   

  
	

  CITICORP

  USA, INC.,

  	

   

  
	

  as

  Administrative Agent and as Lender

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

   

  
	

  Title:

  	

   

  
	

   

  	

   

  
	

  BANK OF

  AMERICA, N.A.,

  	

   

  
	

  as

  Syndication Agent and as Lender

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  By

  	

   

  	

   

  	

   

  
	

  Title:

  	

   

  
							

 

7

 

CONSENT

 

Each of the

undersigned, as (i) Grantor under the Non-Shared Collateral Security Agreement

dated as of November 9, 1999 and amended by Letter Amendment and Waiver No. 1

dated as of May 17, 2000 (as amended, the “Non-Shared Collateral Security

Agreement”) in favor of the Citicorp USA, Inc., as Administrative Agent

(the “Administrative Agent”), for its benefit and the benefit of the

Lenders parties to the Credit Agreement referred to in the foregoing Amendment

No. 5, and/or (ii) Grantor under the Shared Collateral Security Agreement and

amended by Letter Amendment and Waiver No. 1 dated as of May 17, 2000 (as

amended, the “Shared Collateral Security Agreement”, and together with

the Non-Shared Collateral Security Agreement, the “Security Agreements”)

in favor of Wilmington Trust Company and John M. Beeson, as Collateral

Trustees, for their benefit and the benefit of the Secured Holders referred to

therein, and (iii) Guarantor under the IXCS Subsidiary Guaranty dated as of

November 9, 1999 (the “IXCS Subsidiary Guaranty”), in favor of the

Secured Parties referred to therein, and/or (iv) Guarantor under the CBI

Subsidiary Guaranty dated as of November 9, 1999 (the “CBI Subsidiary

Guaranty”, and together with the IXCS Subsidiary Guaranty, the “Guarantees”)

in favor of the Secured Parties referred to therein, hereby consents to the

foregoing Amendment and Consent No. 6 and hereby confirms and agrees that (a)

notwithstanding the effectiveness of the foregoing Amendment and Consent No. 6,

each Security Agreement and Guarantee to which it is a party is, and shall

continue to be, in full force and effect and is hereby ratified and confirmed

in all respects, and (b) the Security Agreements to which such Grantor is a

party and all of the Collateral described therein do, and shall continue to,

secure the payment of all of the Secured Obligations (in each case, as defined

therein.)

 

	

   

  	

  BROADWING

  INC.

  
	

   

  	

  (f/k/a

  CINCINNATI BELL INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING

  COMMUNICATIONS SERVICES INC. (f/k/a IXC COMMUNICATIONS SERVICES, INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  

 

8

 

	

   

  	

  Lenders:

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Institution

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
				

 

9

 

	

   

  	

  BROADWING

  COMMUNICATIONS INC. (f/k/a IXC COMMUNICATIONS, INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CINCINNATI

  BELL DIRECTORY INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING IT

  CONSULTING INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  ZOOMTOWN.COM

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CINCINNATI

  BELL WIRELESS COMPANY

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING

  HOLDINGS INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CINCINNATI BELL

  ANY DISTANCE INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  

 

10

 

	

   

  	

  CINCINNATI

  BELL PUBLIC COMMUNICATIONS INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING TELECOMMUNICATIONS INC. (f/k/a

  ECLIPSE TELECOMMUNICATIONS, INC.)

  
	

   

  	

  IXC BUSINESS

  SERVICES, LLC

  
	

   

  	

  BROADWING COMMUNICATIONS SERVICES OF

  VIRGINIA, INC.

  
	

   

  	

  IXC INTERNET SERVICES, INC.

  
	

   

  	

  BROADWING

  LOCAL SERVICES INC.

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  

 

11S&S DRAFT

Exhibit (10)(i)(1.7)

 

AMENDMENT NO.

7 TO THE

CREDIT AGREEMENT

 

Dated as of March 15, 2002

 

AMENDMENT

NO. 7 TO THE CREDIT AGREEMENT (this “Amendment”) among

BROADWING INC. (f/k/a Cincinnati Bell Inc.), an Ohio corporation (“Broadwing”), and

BROADWING COMMUNICATIONS SERVICES INC. (f/k/a IXC Communications Services,

Inc.), a Delaware corporation (“Broadwing Communications Services”, and together with

Broadwing, each a “Borrower”

and collectively the “Borrowers”),

the banks, financial institutions and other institutional lenders parties to

the Credit Agreement (as defined below) (the “Lenders”), BANK OF AMERICA, N.A., as

syndication agent, CITICORP USA, INC., as administrative agent (the “Administrative Agent”),

and the other agents party to the Credit Agreement.

 

PRELIMINARY

STATEMENTS:

 

(1)           Each Borrower, the Lenders and the

Administrative Agent have entered into an Amendment and Restatement of the

Credit Agreement dated as of January 12, 2000, and amendments thereto dated as

of May 17, 2000, November 3, 2000, June 12, 2001, June 27, 2001, December 13,

2001 and March 1, 2002 (such Amendment and Restatement of the Credit Agreement,

as so amended, supplemented or otherwise modified through the date hereof, the

“Credit Agreement”).  Capitalized terms not otherwise defined in

this Amendment have the same meanings as specified in the Credit Agreement.

 

(2)           The Borrowers have requested and the

Lenders have agreed to amend the Credit Agreement as hereinafter set forth.

 

SECTION 1.   Amendment to the Credit Agreement.  Effective as of the Amendment No. 7

Effective Date and subject to the satisfaction of the conditions precedent set

forth in Section 2, Section 5.01(j)(I)(1) of the Credit Agreement is

amended by deleting the words “within 20 days thereafter” in the first line

thereof and substituting therefor the words “by April 15, 2002”.

 

SECTION 2.   Conditions of Effectiveness.  This Amendment shall become effective as of

the date first above written (the “Amendment No. 7 Effective Date”) when, and

only when, each of the following conditions precedent shall have been

satisfied:

 

(a)           The

Administrative Agent shall have received counterparts of (x) this Amendment

executed by the undersigned, the Required Lenders or, as to any of the Lenders,

advice satisfactory to the Administrative Agent that such Lender has executed

this Amendment, and (y) the Consent attached hereto executed by each of the

Subsidiary Guarantors;

 

(b)           The

representations and warranties set forth in each of the Loan Documents shall be

correct in all material respects on and as of the Amendment No. 7 Effective

Date, before and after giving effect to this Amendment, as though made on and

as of such date

 

 

(except for any such representation and warranty that, by its terms,

refers to a specific date other than the Amendment No. 7 Effective Date, in

which case as of such specific date); and

 

(c)           After

giving effect to this Amendment, no event shall have occurred and be continuing

that constitutes a Default or Event of Default.

 

The effectiveness

of this Amendment is further conditioned upon the accuracy of all of the

factual matters described herein.  This

Amendment is subject to the provisions of Section 9.01 of the Credit

Agreement.

 

SECTION 3.   Reference to and Effect on the Loan

Documents.  (a)  On and after the effectiveness of this

Amendment, each reference in the Credit Agreement to “this Agreement”,

“hereunder”, “hereof” or words of like import referring to the Credit

Agreement, and each reference in the Notes and each of the other Loan Documents

to “the Credit Agreement”, “thereunder”, “thereof” or words of like import

referring to the Credit Agreement, shall mean and be a reference to the Credit

Agreement, as amended by this Amendment.

 

(b)           The

Credit Agreement, as specifically amended by this Amendment, and the other Loan

Documents are and shall continue to be in full force and effect and are hereby

in all respects ratified and confirmed. 

Without limiting the generality of the foregoing, the Collateral

Documents and all of the Collateral described therein do and shall continue to

secure the payment of all Obligations of the Loan Parties under the Loan

Documents, in each case as amended by this Amendment.

 

(c)           The

execution, delivery and effectiveness of this Amendment shall not, except as

expressly provided herein, operate as a waiver of any right, power or remedy of

any Lender or the Administrative Agent under any of the Loan Documents, nor

constitute a waiver of any provision of any of the Loan Documents.

 

SECTION 4.   Costs, Expenses.  Each of the Borrowers hereby severally

agrees to pay on demand all reasonable costs and expenses of the Administrative

Agent in connection with the preparation, execution, delivery and

administration, modification and amendment of this Amendment (including,

without limitation, the reasonable fees and expenses of counsel for the

Administrative Agent) in accordance with the terms of Section 9.04 of the

Credit Agreement.

 

SECTION 5.   Execution in Counterparts.  This Amendment may be executed in any number

of counterparts and by different parties hereto in separate counterparts, each

of which when so executed shall be deemed to be an original and all of which

taken together shall constitute but one and the same agreement.  Delivery of an executed counterpart of a

signature page to this Amendment by telecopier shall be effective as delivery

of a manually executed counterpart of this Amendment.

 

SECTION 6.   Governing Law.  This Amendment shall be governed by, and

construed in accordance with, the laws of the State of New York.

 

[Remainder of this page

intentionally left blank.]

 

2

 

IN WITNESS

WHEREOF, the parties hereto have caused this Amendment to be executed by their

respective officers thereunto duly authorized, as of the date first above

written.

 

 

	

   

  	

  BROADWING INC. 

  (f/k/a CINCINNATI BELL INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  BROADWING COMMUNICATIONS

  
	

   

  	

  SERVICES INC. (f/k/a IXC

  COMMUNICATIONS SERVICES, INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  

 

	

  Agreed as of the

  date first above written:

  
	

   

  
	

  CITICORP USA,

  INC.,

  
	

  as

  Administrative Agent and as Lender

  
	

   

  
	

   

  
	

  By

  	

   

  	

   

  
	

  Title:

  
	

   

  
	

  BANK OF AMERICA,

  N.A.,

  
	

  as Syndication

  Agent and as Lender

  
	

   

  
	

   

  
	

  By

  	

   

  	

   

  
	

  Title:

  

 

3

 

	

   

  	

  Lenders:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  Institution

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  

 

4

 

CONSENT

 

Each of the

undersigned, as (i) Grantor under the Non-Shared Collateral Security Agreement

dated as of November 9, 1999 and amended by Letter Amendment and Waiver No. 1

dated as of May 17, 2000 (as amended, the “Non-Shared Collateral Security

Agreement”) in favor of the Citicorp USA, Inc., as Administrative Agent

(the “Administrative Agent”), for its benefit and the benefit of the

Lenders parties to the Credit Agreement referred to in the foregoing Amendment

No. 7, and/or (ii) Grantor under the Shared Collateral Security Agreement and

amended by Letter Amendment and Waiver No. 1 dated as of May 17, 2000 (as

amended, the “Shared Collateral Security Agreement”, and together with

the Non-Shared Collateral Security Agreement, the “Security Agreements”)

in favor of Wilmington Trust Company and John M. Beeson, as Collateral

Trustees, for their benefit and the benefit of the Secured Holders referred to

therein, and (iii) Guarantor under the IXCS Subsidiary Guaranty dated as of

November 9, 1999 (the “IXCS Subsidiary Guaranty”), in favor of the

Secured Parties referred to therein, and/or (iv) Guarantor under the CBI

Subsidiary Guaranty dated as of November 9, 1999 (the “CBI Subsidiary

Guaranty”, and together with the IXCS Subsidiary Guaranty, the “Guarantees”)

in favor of the Secured Parties referred to therein, hereby consents to the

foregoing Amendment No. 7 and hereby confirms and agrees that (a)

notwithstanding the effectiveness of the foregoing Amendment No. 7, each

Security Agreement and Guarantee to which it is a party is, and shall continue

to be, in full force and effect and is hereby ratified and confirmed in all

respects, and (b) the Security Agreements to which such Grantor is a party and all

of the Collateral described therein do, and shall continue to, secure the

payment of all of the Secured Obligations (in each case, as defined therein.)

 

 

	

   

  	

  BROADWING INC. 

  (f/k/a CINCINNATI BELL INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING COMMUNICATIONS SERVICES INC.

  (f/k/a IXC COMMUNICATIONS SERVICES, INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  

 

5

 

	

   

  	

  BROADWING

  COMMUNICATIONS INC.

  (f/k/a IXC COMMUNICATIONS, INC.)

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CINCINNATI

  BELL DIRECTORY INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING IT

  CONSULTING INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  ZOOMTOWN.COM

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CINCINNATI

  BELL WIRELESS COMPANY

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING

  HOLDINGS INC.

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  CINCINNATI BELL

  ANY DISTANCE INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  

 

6

 

	

   

  	

  CINCINNATI

  BELL PUBLIC

  
	

   

  	

  COMMUNICATIONS

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  BROADWING TELECOMMUNICATIONS INC. 

  (f/k/a ECLIPSE TELECOMMUNICATIONS, INC.)

  
	

   

  	

  IXC BUSINESS

  SERVICES, LLC

  
	

   

  	

  BROADWING COMMUNICATIONS SERVICES OF

  VIRGINIA, INC.

  
	

   

  	

  IXC INTERNET SERVICES, INC.

  
	

   

  	

  BROADWING

  LOCAL SERVICES INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  
	

   

  	

  Title:

  

 

7

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