Document:

S&S DRAFT

Exhibit (10)(i)(1.8)

 

AMENDMENT NO. 8 TO THE

CREDIT AGREEMENT

 

Dated as of April 18, 2002                   

 

AMENDMENT NO. 8 TO THE CREDIT AGREEMENT 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, March 1, 2002 and March 15, 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. 8 Effective Date and subject to the satisfaction of the

conditions precedent set forth in Section 2, Section 5.01(j)(I)(2) of the

Credit Agreement is amended by deleting the words “within 10 days thereafter”

in the first line thereof and substituting therefor the words “by May 2, 2002”.

 

SECTION

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

the date first above written when the Administrative Agent shall have received

counterparts of (i) 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 (ii) the Consent

attached hereto executed by each of the Subsidiary Guarantors, except that

Section 1 shall not become effective until the date (the “Amendment No. 8 Effective Date”)

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

satisfied:

 

(a)           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. 8 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. 8 Effective Date, in which case as

of such specific date); and

 

 

(b)           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. 8, 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. 8 and hereby confirms and agrees that (a)

notwithstanding the effectiveness of the foregoing Amendment No. 8, 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:

  

 

7S&S DRAFT

Exhibit (10)(i)(1.9)

 

EXECUTION COPY

 

AMENDMENT NO. 9 TO THE

CREDIT AGREEMENT

 

Dated as of May 1, 2002                     

 

AMENDMENT NO. 9 TO THE CREDIT AGREEMENT 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, March 1, 2002, March 15, 2002 and April 18, 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. 9 Effective Date (or, in the case of Sections 1(m)(iii) and (iv),

(t) and (bb), such later date as provided in Section 2) and subject to the

satisfaction of the conditions precedent set forth in Section 2, the

Credit Agreement is hereby amended as follows:

 

(a)           The definition of “Applicable Margin”

is amended in full to read as follows:

 

“Applicable

Margin”

means (i) in the case of the Incremental Term B Facility, 2.75% per annum for

Eurodollar Rate Advances and 1.75% per annum for Base Rate Advances, (ii) in

the case of the Incremental Term C Facility, 3.25% per annum for Eurodollar

Rate Advances and 2.25% per annum for Base Rate Advances and (iii) in the case

of each other Facility, a percentage per annum set forth below under the

caption “Eurodollar Rate

Advances” or “Base Rate Advances” based upon the ratings established

by S&P and Moody’s for the Index Debt as of the most recent determination

date:

 

 

Applicable Margin Pricing Grid

 

	

  S&P/Moody’s

  	

   

  	

  Applicable Margin

  Revolving and

  Term A

  Facilities

  
	

    

  	

   

  	

  Eurodollar

  Rate

  Advances

  	

   

  	

  Base Rate

  Advances

  
	

  Level I:

  At least BBB and Baa2

  	

   

  	

  1.50%

  	

  0.50%

  
	

  Level II:

  Below I, but at least

  BBB- and Baa3

  	

   

  	

  1.75%

  	

  0.75%

  
	

  Level III:

  Below II, but at least

  BB+ and Ba1

  	

   

  	

  2.00%

  	

  1.00%

  
	

  Level IV:

  Below III, but at least

  BB+ and Ba2 or BB and Ba1

  	

   

  	

  2.25%

  	

  1.25%

  
	

  Level V:

  Below IV, but at least

  BB and Ba2

  	

   

  	

  2.50%

  	

  1.50%

  
	

  Level VI:

  Below V, but at least

  BB- and Ba3

  	

   

  	

  2.75%

  	

  1.75%

  
	

  Level VII:

  Below VI, but at least

  B+ and B1

  	

   

  	

  3.00%

  	

  2.00%

  
	

  Level VIII:

  Below VII, but at least

  B and B2

  	

   

  	

  3.25%

  	

  2.25%

  
	

  Level IX:

  Below VIII

  	

   

  	

  3.50%

  	

  2.50%

  

 

For purposes of the foregoing (i) if either Moody’s or S&P shall

not have in effect a rating for the Index Debt (other than by reason of the

circumstances referred to in the last sentence hereof), then such rating agency

shall be deemed to have established a rating in Level IX; (ii) except as set

forth in the Pricing Grid above, if the ratings established or deemed to have

been established by Moody’s or S&P for the Index Debt shall fall within

different Levels, the applicable percentage will be based on the lower of the

two ratings unless one of the two ratings is two or more Levels lower than the

other, in which case the applicable percentage shall be determined by reference

to the Level next above that of the lower of the two ratings; and (iii) if the

ratings established or deemed to have been established by Moody’s or S&P

for the Index Debt shall be changed (other than as a result of a change in the

rating system of Moody’s or S&P), such change shall be effective as of the

date on which it is first announced by the applicable

 

2

 

rating

agency.  Each change in the applicable

percentage shall apply during the period commencing on the effective date of

such change and ending on the date immediately preceding the effective date of

the next such change.  If the rating

system of Moody’s or S&P shall change, or if either such rating agency

shall cease to be in the business of rating corporate debt obligations, or if

either such rating agency shall cease rating the Index Debt (other than by

reason of any action or nonaction by any Borrowers following or in anticipation

of a ratings downgrade), the Borrowers and the Lender Parties shall negotiate

in good faith to amend this provision to reflect such changed rating system or

the unavailability of ratings from such rating agency (including by way of

substituting another rating agency mutually acceptable to the Borrowers and the

Agents for the rating agency with respect to which the rating system has

changed or for which no rating is then in effect) and, pending the

effectiveness of any such amendment, the applicable percentage shall be

determined by reference to the rating most recently in effect prior to such

change or cessation.”

 

(b)           The definitions of

“Debt/EBITDA Ratio”, “Senior Secured Debt/EBITDA Ratio” and “Total

Debt/Capitalization Ratio” in Section 1.01 are amended by deleting (i) the

phrase “as at the end of the most recently ended fiscal quarter of CBI for

which financial statements are required to be delivered to the Lender Parties

pursuant to Section 5.03(b) or (c), as the case may be,” in each such

definition and (ii) the phrase “as at the end of such fiscal quarter” in the

last line of the definition of “Total Debt/Capitalization Ratio”, and

substituting therefor the phrase “as at such date of determination”.

 

(c)           The definition of

“Excluded Entities” in Section 1.01 is amended and restated to read as follows:

 

“Excluded

Entities” means CBT, Wireless LLC,

Cincinnati Bell Foundation, Inc., the Mutual Subsidiaries, Unite and, until

such time as CBTS becomes a Subsidiary Guarantor pursuant to the proviso to Section 5.01(j)(I)(2), CBTS.

 

(d)           The definition of

“Related Documents” in Section 1.01 is amended by inserting immediately after

the phrase “pursuant to Section 5.02(b)(ii)” the phrase “and Section

5.02(b)(i)(D), all agreements, indentures and instruments pursuant to which the

Senior Notes are issued, the certificate of incorporation of Wireless Co. (or

in the case that the Equity Interests of Wireless LLC are held by Wireless

Holdco, the certificate of incorporation of Wireless Holdco)”.

 

(e)           Section 1.01 is

amended by inserting the following new definitions in the appropriate

alphabetical order:

 

“Amendment

No. 9 Effective Date” means the date on

which Amendment No. 9 to this Agreement (other than Sections 1(m)(iii) and

(iv), (t) and (bb) thereof) becomes effective.

 

3

 

“Blocking Event”

means any of the following events:

 

(a)           a Default described

in Section 7.01(a) occurs and is continuing, or

 

(b)           a Default described

in Section 7.01(f) or an Event of Default 

(other than an Event of Default described in Section 7.01(a)) occurs and

is continuing and delivery by the Administrative Agent to CBI of a notice (a “Blockage Notice”) of

such Default or Event of Default (it being understood that (x) the

Administrative Agent may not deliver a subsequent Blockage Notice unless and

until at least 360 consecutive days shall have elapsed since the day of

delivery of the immediately prior Blockage Notice and (y) no such Default or

Event of Default that existed or was continuing on the date of delivery of any

Blockage Notice shall be, or be made, the basis of a subsequent Blockage Notice

unless such Default or Event of Default shall have been waived for a period of

not less than 180 consecutive days);

 

provided, however, that a Blocking Event shall cease

to occur upon the earlier of:

 

(i)            the date upon which

the Default or Event of Default giving rise to a Blocking Event described in

clause (a) or (b) above is cured or waived or shall have ceased to exist, or

 

(ii)           in the case of a

Blocking Event described in clause (b) above, 179 consecutive days having

passed after the Blockage Notice is received by CBI.

 

“CBI

Administrative Expenses” means all administrative expenses

incurred by CBI in the ordinary course of business, including, without

limitation, those related to compensation arrangements, litigation, insurance,

taxes (federal state and local), health and welfare, office supplies,

contractual obligations, travel, director’s fees paid to and expenses of CBI’s

Board of Directors and payments to investment banks, advisors and consultants.

 

“CBTS”

means Cincinnati Bell Telecommunications Services Inc., an Ohio corporation.

 

“Consultant”

has the meaning specified in Section 5.01(j)(I)(3)(f).

 

“Mutual

Subsidiaries” means Mutual Signal Holding Corporation, Mutual

Signal Corporation, Mutual Signal Corporation of Michigan and MSM Associates

Limited Partnership.

 

“New Notes”

means (i) Subordinated Debt of CBI evidenced by the Subordinated Debt Documents

and (ii) Senior Notes.

 

4

 

“Other Permitted

Equity” means an Equity Interest of CBI other than common stock

that (i) is a security that is not guaranteed or secured and ranks junior to

the Facilities and the New Notes in all respects, (ii) has a term extending to

at least December 31, 2007 and is not mandatorily redeemable or putable prior

to such date (other than pursuant to a customary change of control provision),

(iii) has covenants and change of control provisions no more restrictive than

those customarily contained in senior subordinated or subordinated public high

yield issues for similar issuers and (iv) if convertible or exchangeable, is

convertible or exchangeable only into CBI’s common stock.

 

“Real

Estate SPV” has the meaning specified in

Section 5.01(t).

 

“Senior Notes”

means senior unsubordinated notes of CBI which have customary high yield

covenants for similar issuers, are unsecured and have the benefit of no

upstream guaranties or other claims against Subsidiaries of CBI.

 

“Spectrum Assets”

means the E-Block spectrum license granted by the Federal Communications

Commission or any spectrum license owned by Wireless Co. for which the E-Block

may be exchanged.

 

“SPV”

has the meaning specified in Section 5.01(u).

 

“Transfer”

has the meaning specified in Section 5.01(j)(I)(3)(d).

 

“Unite”

means Unite Inc., an Ohio corporation.

 

“Wireless Co.”

means Cincinnati Bell Wireless Company, an Ohio corporation.

 

“Wireless

Holdco” has the meaning specified in

Section 5.01(s).

 

“Wireless LLC”

means Cincinnati Bell Wireless, LLC, an Ohio limited liability company.”

 

(f)            Section 2.05(b) is

amended by inserting a new clause (vi) to read as follows:

 

“(vi)        The Revolving Credit

Facility shall be automatically and permanently reduced ratably among the

Revolving Credit Lenders in accordance with their Revolving Credit Commitments

in an amount equal to the prepayments of the Revolving Credit Advances pursuant

to clause (x) of the proviso in

Section 5.02(b)(i)(B), and each reduction of the Revolving Credit Commitments

pursuant to this Section 2.05(b)(vi) shall be applied to the scheduled

commitment reduction installments of the Revolving Credit Facility on a pro

rata basis.”

 

(g)           Section 5.01(e) is

amended by (i) deleting the phrase “Except as otherwise permitted under Section

5.02(d)” in the first line thereof and substituting therefor the phrase

“(i)  Except as otherwise permitted

under Section 5.02(d) or as

 

5

 

otherwise

provided under clause (ii) below” and (ii) inserting at the end thereof the

following new clause (ii):

 

“(ii)         On or before May 31,

2002, (A) Unite shall merge or consolidate into CBI or Broadwing Holdings, Inc.

and (B) Cincinnati Bell Foundation, Inc. shall be dissolved.”

 

(h)           Section 5.01(j)(I)

is amended by (i) inserting immediately after the phrase “respective

Subsidiaries” in clause (1) thereof the phrase “(other than the Excluded

Entities)”, (ii) deleting clauses (2) and (3) thereof and substituting therefor

new clauses (2) and (3) to read as follows:

 

“(2)     by June 2, 2002, cause

each Subsidiary (other than the Excluded Entities and a CFC) (to the extent it

has not already done so), to duly execute and deliver to the Administrative

Agent a guaranty or Guaranty Supplement, in form and substance satisfactory to

the Administrative Agent, guaranteeing the other Loan Parties’ obligations

under the Loan Documents, provided,

however, that CBTS shall execute

and deliver to the Administrative Agent such a guaranty or Guaranty Supplement

on or before September 30, 2002,

 

(3)       within 15 days

thereafter duly execute and deliver, and cause each such Subsidiary (other than

the Excluded Entities) and each direct and indirect parent of such Subsidiary

(if it has not already done so) to duly execute and deliver, to the

Administrative Agent mortgages, pledges, assignments, security agreement

supplements and other security agreements, as specified by and in form and

substance satisfactory to the Administrative Agent, securing payment of all the

Obligations of the applicable Loan Party, such Subsidiary or such parent, as

the case may be, under the Loan Documents and constituting Liens on all such

real and personal properties other than:

 

a.                           fiber

in which an IRU has been granted prior to the date hereof or pursuant to

Section 5.02(e)(i) or 5.02(e)(viii)(B);

 

b.                          the

Equity Interests of Wireless LLC held by Wireless Co. or Wireless Holdco, as

the case may be;

 

c.                           the

Spectrum Assets;

 

d.                          any

item of real property of CBI or such Subsidiaries that has been irrevocably

transferred under title documents satisfactory to the Agents to a Real Estate

SPV under terms and conditions acceptable to the Agents (a “Transfer”); provided that if such real property is

transferred out of a Real Estate SPV, such Real Estate SPV will be required to

deliver mortgages, assignments, surveys (if requested by the Administrative

Agent) and title insurance all in form and substance satisfactory to the Agents

on such real property at or before the time of such transfer unless such real

property is sold or otherwise transferred to a Person in a transaction

permitted by Section 5.02(e);

 

6

 

e.                           any

item of real property, the mortgage or Transfer, as the case may be, of which

is prohibited by or would constitute a breach of or a default under or give

rise to a right of termination under the underlying documentation, where

despite the use of best efforts by CBI or its Subsidiaries to obtain a consent

to so mortgage or Transfer, such consent cannot be obtained; provided that CBI or its Subsidiaries will

attempt to obtain the consent to Transfer if a consent to mortgage any such

property interest cannot be obtained;

 

f.                             any

property interest that CBI has requested be excluded and as to which  the Agents, after consultation with an

independent consultant to be retained on behalf of the Agents (the “Consultant”),

determine that a mortgage or Transfer, as the case may be, is not cost

effective in relationship to the benefits to be received by the Lenders from

the mortgage or Transfer of such property interest (a list of which real

property interests excluded from the requirements of Section 5.01(j)(I)

pursuant to clause (e) or (f) hereof will be provided to the Lenders as

promptly as practicable by CBI);

 

provided, however, that

CBTS shall not be required to execute and deliver to the Administrative Agent

such documents referred to in clauses (3) and (4) of this Section 5.01(j)(I)

until September 30, 2002; provided further

that:

 

(A)          for purposes of this Section

5.01(j)(I)(3), the use of “best efforts” will not require the payment of any

monetary consideration or expending continued efforts to obtain such consent if

CBI has diligently followed all agreed upon procedures in attempting to obtain

such consent unless, after CBI advises that it cannot obtain a particular consent,

the Agents, in their discretion reasonably exercised and in consultation with

the Consultant, determine that the value to the Lenders of such collateral

warrants paying additional consideration or expending continuing efforts to

obtain such consent;

 

(B)           notwithstanding the foregoing, the  Agents may request that CBI or its

Subsidiaries grant mortgages on additional real property (other than real

property that is held in a Real Estate SPV) and provide surveys, title

insurance or other reports specified in Section 5.02(j)(I)(6) on any real

property (other than real property that is held in a Real Estate SPV) at any

time in their sole discretion; and

 

(C)           in the event that there is a change

in the circumstances which gave rise to any real property interest being

excluded from the requirements of this Section 5.01(j)(I) or the restrictions

which prevented delivering documents hereunder or consummating a Transfer of

such real property no longer exist, CBI and its Subsidiaries shall promptly

Transfer such real property to a Real Estate SPV or execute and deliver to the

Administrative

 

7

 

Agent all

applicable documents required to be delivered under this Section 5.01(j)(I);

 

(D)          if (1) CBT ceases to be subject to all

regulation relating to telecommunications businesses by all federal, state and

local governmental authorities which prohibits, restricts or requires

regulatory approval for the (x) pledging of assets or (y) incurrence of

indebtedness, and (2) any action described in clause (x) or (y) could not in

the determination of CBI reasonably exercised be expected to result in any such

regulatory authority taking an action or refusing to take an action which

action or refusal to take any action could have a material adverse effect on

CBT, then CBT shall cease to be an Excluded Entity and shall as promptly as

practicable deliver to the Administrative Agent supplements to the Security

Agreements and Subsidiary Guaranties in form and substance satisfactory to the Administrative

Agent and shall as promptly as practicable take all steps necessary to comply

with this Section 5.01(j).”

 

(i)            Section 5.01(j)(I) is further

amended by amending and restating clause (6) thereof to read as follows:

 

“(6)         as promptly as practicable thereafter,

deliver to the Administrative Agent title search reports (review of which shall

be limited to the verification of the transferees of such property except in

the case of real properties for which mortgages are being delivered) on all

real property held by CBI and its Subsidiaries (other than Excluded Entities)

as requested by the Administrative Agent, and upon the request of the

Administrative Agent in its sole discretion, deliver to the Administrative

Agent with respect to each parcel of real property owned or held by the entity

that is the subject of such request, formation or acquisition title reports

(review of which shall be limited to the verification of the transferees of

such property except in the case of real properties for which mortgages are

being delivered), surveys and engineering, soils and other reports, and

environmental assessment reports, each in scope, form and substance

satisfactory to the Administrative Agent, provided, however, that title insurance

policies, surveys and engineering, soils and other reports, and environmental

assessment reports will not be required for any real property that is held in a

Real Estate SPV, provided further

to the extent that any Loan Party or any of its Subsidiaries shall have

otherwise received any of the foregoing items with respect to such real

property, such items shall, promptly after the receipt thereof, be delivered to

the Administrative Agent,”

 

(j)            Section 5.01(j)(I)

is further amended by deleting the word “and” at the end of clause (8) thereof

and inserting at the end thereof the following proviso:

 

“provided, however,

that the Agents, acting jointly, may extend any of the time limits set forth

above by up to 30 days (or up to an additional (x) 90 days, solely

 

8

 

in the case of

obtaining required approvals or consents for the pledging of assets, or (y) 120

days, solely in the case of obtaining required regulatory approvals for the

pledging of assets)(it being understood that the Agents will grant any

requested extension pursuant to this proviso

if such extension is required solely because of the need to obtain regulatory

approvals and CBI and its Subsidiaries are using their best efforts to obtain

such approvals); and”

 

(k)           Section 5.01 is

further amended by inserting at the end thereof new clauses (r), (s), (t) and

(u) to read as follows:

 

“(r)          Cash Management

System Transfer.  Within 30 days

after the Amendment No. 9 Effective Date or, if earlier, prior to the issuance

of any New Notes, transfer the cash management system maintained by CBI to a

Subsidiary Guarantor, such cash management system to be as more particularly

described in the attached Schedule 5.01(r).

 

(s)           Certain Charter

Amendments.  Within 30 days after

the Amendment No. 9 Effective Date, amend the certificate of incorporation of

Wireless Co. to establish (or, at the election of CBI, form a new wholly owned

Subsidiary of Wireless Co. to hold the Equity Interests of Wireless LLC (“Wireless Holdco”)

that will have a certificate of incorporation that includes) customary

“bankruptcy remote” protections and execute related documentation, all such

protections and related documentation in form and substance reasonably

acceptable to the Agents negotiated in good faith, with respect to Wireless Co.

or Wireless Holdco.

 

(t)            Creation of

Special Purpose Entities.  Prior to

the required date for delivery of mortgages pursuant to Section 5.01(j)(I)(3),

(w) create one or more wholly owned special purpose direct or indirect

Subsidiaries of CBI (each a “Real Estate SPV”) for the sole purpose of holding real

property required to be pledged to the Administrative Agent for the benefit of

the Lenders pursuant to Section 5.01(j)(I) that will be organized as a

corporation or, at the option of CBI, a limited liability company in a

jurisdiction acceptable to the Agents and will have charter documents that

include customary “bankruptcy remote” protections in form and substance

reasonably satisfactory to the Agents negotiated in good faith, (x) pledge the

Equity Interests in each Real Estate SPV as Collateral under the Security

Agreements, (y) deliver supplements to the Security Agreements and Subsidiary

Guaranties duly executed by each Real Estate SPV in form and substance

reasonably acceptable to the Agents, and (z) execute related documentation, all

in form and substance reasonably acceptable to the Agents.

 

(u)           Separate

Corporate Existence.  Cause each of

Wireless Co. or, if formed pursuant to Section 5.01(s), Wireless Holdco, and

each Real Estate SPV (each an “SPV”) to comply in all respects with the terms and

provisions of the corporate separateness covenants negotiated in good faith set

forth in the supplements to the Subsidiary Guaranties to which each SPV is a

party as if such covenants were set forth in full in this Agreement.”

 

9

 

(l)            Section 5.02(b)(i)

is amended by (i) amending and restating clause (B) thereof in full to read as

follows:

 

“(B)         New Notes not to

exceed the aggregate principal amount of $1 billion dollars; provided

that (x) 50% of the first $500 million of Net Cash Proceeds from the issuance

of New Notes shall be applied to prepay the Facilities, with such prepayment to

be allocated ratably to the Revolving Credit Advances (as set forth in Section

2.06(b)(vi)), the Term A Advances, the Incremental Term B Advances and the

Incremental Term C Advances and to the remaining installments of the Term A

Advances, Incremental Term B Advances and Incremental Term C Advances,

respectively, pro rata and (y) 100% of the Net Cash Proceeds in excess of $500

million from the issuance of New Notes shall be applied to prepay the

Facilities, with such prepayment to be allocated first ratably to the Term A

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

and applied to the remaining installments thereof pro rata and second

to the Revolving Credit Advances as set forth in clause 2.06(b)(vi) (it being

understood that all expenses or other amounts deducted in determining the

calculation of Net Cash Proceeds from the issuance of New Notes at the same

time shall be applied equally over the total principal amount of the New Notes

being issued at such time),”

 

and (ii) by

deleting the word “and” at the end of clause (B), by deleting the semicolon at

the end of clause (C) and substituting therefor the phrase “, and”, and by

inserting a new clause (D) at the end thereof to read as follows:

 

“(D)        Debt owed to a wholly

owned Subsidiary of CBI permitted under Section 5.02(f)(xi); provided that such Debt (x) shall

constitute Pledged Debt, (y) shall be on terms acceptable to the Agents and

(z) if evidenced by promissory notes, shall be in form and substance

satisfactory to the Agents and such promissory notes shall be pledged as

security for the Obligations of the holder thereof under the Loan Documents to

which such holder is a party and delivered to the Administrative Agent pursuant

to the terms of the Security Agreements; provided

further, however, that

CBI may not incur such Debt to service Debt under the New Notes or make

payments in respect of Other Permitted Equity if a Blocking Event has occurred

and is continuing;”

 

(m)          Section 5.02(b)(iii)

is amended by (i) inserting immediately after the phrase “in the case of CBI

and its Subsidiaries” in the first line thereof the phrase “other than Wireless

LLC”, (ii) inserting immediately after the phrase “of the other Loan Parties”

in clause (I) thereof the phrase “other than with respect to the Senior Notes”,

(iii) deleting the phrase “between CBI and its Subsidiaries arising under

CBI’s” in clause (J) thereof and substituting therefor the phrase “among the

Subsidiaries of CBI arising under the” and (iv) deleting the phrase “Schedule

5.02(b)(iii)(J)” at the end of clause (J) thereof and substituting therefor the

phrase “Schedule 5.01(r)”.

 

(n)           Section 5.02(b) is

further amended by adding a new clause (iv) at the end thereof to read as

follows:

 

10

 

“(iv)        in the case of

Wireless LLC,

 

(A)          Debt relating to the

acquisition of the Spectrum Assets not to exceed $60,000,000 in aggregate

principal amount at any time outstanding,

 

(B)           Capitalized Leases,

Debt secured by Liens permitted by Section 5.02 (a)(iv) or unsecured Debt, in

the case of such unsecured Debt, maturing after the Termination Date, in the

ordinary course of business for borrowed money or for the deferred purchase

price of property or services, not to exceed $50,000,000 in aggregate principal

amount at any time outstanding under this clause (B), provided that any Debt outstanding under

this clause (B) of a type described in Section 5.02(b)(iii)(B), (C) or (E), as

the case may be, will automatically reduce the amount of Debt of such type

permitted to be outstanding at such time under such clause (B), (C) or (E), as

applicable,

 

(C)           Debt of the type and

subject to the restrictions set forth in Sections 5.02(b)(ii) and

5.02(b)(iii)(F) and (J), and

 

(D)          Debt (x) existing on

the Amendment No. 9 Effective Date and (y) refinancings of such Debt, in the

case of clause (y), subject to the restrictions set forth in Section

5.02(b)(iii)(D) except that no Surviving Debt to be refinanced pursuant to this

clause (D) that is owed to CBI or to a Subsidiary of CBI may be refinanced with

Debt owed to a Person other than a Subsidiary of CBI; provided that any Debt outstanding at any

time under clause (x) of a type described in any clause of Section 5.02(b)(iii)

will automatically reduce the amount of Debt of such type permitted to be

outstanding at such time under such clause of Section 5.02(b)(iii), as

applicable.”

 

(o)           Section 5.02(d)(iv) is amended and

restated in full to read as follows:

 

“(iv)        any Mutual Subsidiary

may merge into another Mutual Subsidiary or into IXCS and Unite may merge into

CBI or Broadwing Holdings, Inc.;”

 

(p)           Section

5.02(e)(viii) is amended by inserting immediately after the phrase “per annum,”

in clause (A) the phrase “for periods ending prior to Fiscal Year 2002 and

$50,000,000 per annum commencing with Fiscal Year 2002”, (iii) inserting immediately

after the phrase “from the date of receipt” at the end of the proviso after clause (C) thereof the

phrase “with respect to sales, leases, transfers or other dispositions made

before April 15, 2002 and 3 months from the date of receipt with respect to

sales, leases, transfers or other dispositions made on or after April 15,

2002”, (iv) inserting immediately after the phrase “12 months from the date of

receipt of such proceeds” in the first sentence after the proviso after clause (C) thereof the phrase

“with respect to sales, leases, transfers or other dispositions made before

April 15, 2002 and 3 months from the

 

11

 

date of

receipt with respect to sales, leases, transfers or other dispositions made on or

after April 15, 2002” and (v) inserting immediately after the phrase

“reinvested within such 12 month period” in the last sentence thereof the

phrase “or 3 month period (as the case may be)”.

 

(q)           Section 5.02(f)(i)

is amended by (i) inserting immediately after the phrase “wholly owned

Subsidiaries” in clause (A) thereof the phrase “that are Subsidiary Guarantors”

and (ii) inserting immediately after the phrase “in Excluded Entities” in

clause (B) thereof the phrase “other than the Mutual Subsidiaries”.

 

(r)            Section

5.02(f)(vii) is amended by adding immediately before the phrase “in an

aggregate amount invested not to exceed 10%” the phrase “made prior to the

Amendment No. 9 Effective Date” and adding immediately after the phrase “Net

Tangible Assets at the time of any determination” the phrase “and other

Investments made on or after the Amendment No. 9 Effective Date (other than

Investments in CBI and the Mutual Subsidiaries made after April 15, 2002) in an

aggregate amount invested not to exceed $25,000,000 at any time”, (ii) by

deleting the phrase “Net Tangible Assets or” in the parenthetical immediately

before the proviso thereof and

(iii) inserting immediately before the semi-colon at the end thereof the phrase

“and (6) any Investment made under this clause (vii) that is not an acquisition

of an Equity Interest shall be made by a Subsidiary Guarantor.”

 

(s)           Section

5.02(f)(viii) is amended by inserting at the beginning thereof the phrase

“Investments other than Investments in CBI and the Mutual Subsidiaries made

after April 15, 2002 in”.

 

(t)            Section 5.02(f)(ix)

is amended and restated in full to read as follows:

 

“(ix)         Investments

consisting of debits and credits between a wholly owned Subsidiary of CBI and

CBI and its Subsidiaries pursuant to the centralized cash management system

referred to in Section 5.01(r); provided

that such Investments between such wholly owned Subsidiary of CBI and CBI shall

be subject to the restrictions set forth in Section 5.02(f)(xi), and

Investments that arose under the centralized cash management system between CBI

and its Subsidiaries prior to the date that is 30 days after the Amendment No.

9 Effective Date; provided that

all such Investments made by CBI and each Subsidiary Guarantor are evidenced by

promissory notes and constitute Pledged Debt; provided

further, that CBI will hold no cash on the day after the

implementation of the transfer of the centralized cash management system

referred to in Section 5.01(r) other than cash transferred to CBI pursuant to

Section 5.02(f)(xi) or 5.02(g)(vi), and”.

 

(u)           Section 5.02(f) is

further amended by inserting at the end thereof new clause (xi) and new proviso to read as follows:

 

12

 

“(xi)         Investments

consisting of cash advances to CBI to pay (x) CBI Administrative Expenses, (y)

dividends and payments referred to in clauses (iv) and (v) of Section 5.02(g)

and (z) debt service for Debt of CBI that is permitted under this Agreement; provided that (1) such advances are

evidenced by promissory notes, in form and substance satisfactory to the

Agents, and such promissory notes shall be pledged as security for the

Obligations of the holder thereof under the Loan Documents to which such holder

is a party and delivered to the Administrative Agent pursuant to the terms of

the Security Agreements, (2) such advances are not made earlier than 1 Business

Day before the day that the obligations are to be paid and (3) the proceeds of

such advances are either deposited directly to a deposit account maintained

with the Administrative Agent or another Lender and in which the Administrative

Agent, for the benefit of the Lenders, has a security interest pursuant to the

terms of the Security Agreements or applied directly for a purpose referred to

in clause (x), (y) or (z) above; provided

further, however, that

if a Blocking Event has occurred and is continuing, no such Investments shall

be made in respect of a payment on the New Notes or the Other Permitted Equity;

 

provided that  no Investments shall be made on or after

April 15, 2002 in Excluded Entities other than (x) Investments in Wireless LLC,

(y) Investments consisting of debits and credits arising pursuant to the

centralized cash management system described in Section 5.02(f)(ix); provided that all such cash advances made

to such Excluded Entities constitute Pledged Debt; provided  further

that all such Investments made to the Mutual Subsidiaries be in an amount not

to exceed $100,000 in aggregate at any time, and (z) in the case of CBT,

Investments made pursuant to Section 5.02(f)(vi)).”

 

(v)           Section 5.02(g)(ii)

is amended and restated in full to read as follows:

 

“(ii)         any Subsidiary may

(A) declare and pay cash dividends to any other wholly owned Subsidiary of CBI

of which it is a Subsidiary and (B) accept capital contributions from its

parent to the extent permitted under Section 5.02(f)(i),”

 

(w)          Section 5.02(g)(iv)

is amended by inserting immediately before the comma at the end thereof the

phrase “and the Other Permitted Equity”.

 

(x)            Section 5.02(g)(vi)

is amended and restated in full to read as follows:

 

“(vi)        any Subsidiary of CBI

may:

 

(A)          declare and pay cash

dividends to CBI to pay (x) CBI Administrative Expenses, (y) dividends and

payments referred to in clauses (iv) and (v) of Section 5.02(g) and (z) debt

service for Debt of CBI that is permitted under this Agreement; provided that (1) such dividends

 

13

 

are not paid

earlier than 1 Business Day before the day that the obligations are to be paid

and (2) the proceeds of such dividends are deposited directly to a deposit

account maintained with the Administrative Agent in which the Administrative

Agent, for the benefit of the Lenders, has a security interest pursuant to the

terms of the Security Agreements or applied directly for a purpose referred to

in clause (x), (y) or (z) above, and

 

(B)           distribute non-cash

assets to CBI in connection with the merger or consolidation of a Subsidiary; provided that no Default has occurred and

is continuing at the time of such transfer and the distribution of such

non-cash assets is accompanied by a substantially simultaneous transfer of such

non-cash assets from CBI to another Subsidiary,”

 

(y)           Section 5.02(g) is

further amended by inserting at the end thereof new clauses (viii), (ix) and

(x) to read as follows:

 

“(viii)      CBI may issue and

sell additional common stock for cash; provided

that if immediately prior to the time of any such issuance the Debt/EBITDA

Ratio is not less than 3.75, during the period ending September 30, 2002, and

not less than 3.50 at all times thereafter, 50% of the Net Cash Proceeds of

such issuance of additional common stock (other than common stock issued to

employees, officers and directors as part of compensation arrangements) shall

be applied to prepay the Facilities first ratably to the Term A Advances, the

Incremental Term B Advances and the Incremental Term C Advances and to the

remaining installments thereof pro rata and second to the Revolving Credit Advances as

set forth in clause 2.06(b)(vi) (it being understood that such prepayment shall

not be required if the Debt/EBITDA Ratio at the time of such issuance is below

the Debt/EBITDA Ratio specified above to be applicable at such time),

 

(ix)           CBI may issue

additional common stock upon the conversion of any of the Convertible Preferred

Stock, the Junior Convertible Preferred Stock and the Other Permitted Equity,

and

 

(x)            CBI may issue and

sell (A) up to an aggregate of $200,000,000 face value of Other Permitted

Equity; provided that 50% of the

Net Cash Proceeds of the issuance of such Other Permitted Equity shall be

applied to prepay the Facilities first ratably to the Term A Advances, the

Incremental Term B Advances and the Incremental Term C Advances and to the

remaining installments thereof pro rata and second to the Revolving Credit Advances as

set forth in clause 2.06(b)(vi), and (B) up to an additional aggregate of

$100,000,000 face value of Other Permitted Equity; provided that 100% of the Net Cash Proceeds of such Other

Permitted Equity in excess of $200,000,000 face value shall be applied to

prepay the Facilities first ratably to the Term A Advances, the

Incremental Term B Advances and the Incremental Term C Advances and to the

remaining installments thereof pro rata and second to the Revolving Credit Advances as

set forth in clause 2.06(b)(vi).”

 

14

 

(z)            Section 5.02(l) is

amended by deleting the word “and” immediately preceding clause (ii) thereof

and inserting a new clause (iii) at the end thereof to read “or (iii) customary

provisions in the New Notes; provided such

provisions permit Liens under the Loan Documents”.

 

(aa)         Section 5.02 is

further amended by inserting at the end thereof new clauses (s), (t) and (u) to

read as follows:

 

“(s)         Deposit Accounts.  After 30 days after the Amendment No. 9

Effective Date or, if earlier, after the issuance of any New Notes, hold any

deposit accounts of CBI or any of its Subsidiaries (other than payroll,

workmen’s compensation, health and welfare, PAC accounts and similar types of

accounts) that are not held with the Administrative Agent or with a third party

bank subject to a control agreement that is in form and substance reasonably

satisfactory to the Administrative Agent.

 

(t)            Negative Covenants

Applicable to Wireless Co. 

Notwithstanding Section 5.02, after 30 days after the Amendment No. 9

Effective Date, permit Wireless Co. (or, if Wireless Co. has elected to form

Wireless Holdco in accordance with Section 5.01(s), Wireless Holdco, in which

case this paragraph (t) shall not apply to Wireless Co.) to enter into or

conduct any business, or engage in any activity (including, without limitation,

any action or transaction that is restricted under Section 5.02 without regard

to any of the enumerated exceptions to such covenants) other than providing

general management services to Wireless LLC, holding the Equity Interests of

Wireless LLC, exercising the voting rights and obligations as a member of

Wireless LLC, holding and operating the Spectrum Assets, performing any

obligations under the Loan Documents and engaging in other activities

incidental and directly related to its existence and the foregoing.

 

(u)           Negative

Covenants Applicable to Real Estate SPVs. 

Notwithstanding Section 5.02, permit any Real Estate SPV to enter into

or conduct any business, or engage in any activity (including, without

limitation, any action or transaction that is restricted under Section 5.02

without regard to any of the enumerated exceptions to such covenants) other

than holding real property interests and entering into and performing such Real

Estate SPV’s obligations under leases with respect thereto, performing such

Real Estate SPV’s obligations under the Loan Documents and engaging in other

activities incidental and directly related to its existence and the foregoing.”

 

(bb)         Schedule

5.02(b)(iii)(J) is deleted in its entirety and new Schedule 5.01(r) is inserted

in the appropriate chronological order to read as set forth in Schedule 5.01(r)

attached hereto.

 

SECTION

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

the date first above written when the Administrative Agent shall have received

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

Lenders or, as to

 

15

 

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 except that Section 1 shall not become effective until

the date (the “Amendment

No. 9 Effective Date”) when, and only when, each of the

following conditions precedent shall have been satisfied; provided that Sections 1(m)(iii) and (iv),

(t) and (bb) of this Amendment shall not become effective until 30 days after

the Amendment No. 9 Effective Date:

 

(a)           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. 9 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. 9 Effective Date, in which case as

of such specific date).

 

(b)           After giving effect

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

constitutes a Default or Event of Default.

 

(c)           The Administrative

Agent shall have received an amendment fee equal to 0.125% of the aggregate

outstanding principal amount of Advances and the aggregate Unused Revolving

Credit Commitments of each Lender that delivers an executed signature page to

this Amendment no later than May 1, 2002, to be paid ratably to such Lenders; provided that the Administrative Agent

shall escrow the portion of such fee calculated on $250,000,000 and, as and

when (on or before June 29, 2002) permanent prepayment of the Advances are made

with proceeds of the New Notes or the Other Permitted Equity, the

Administrative Agent shall return such amounts to CBI and any escrowed amounts,

remaining on June 30, 2002 shall be paid ratably to such Lenders.

 

(d)           The fees and

expenses of counsel for the Administrative Agent shall have been paid.

 

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.   Representations and Warranties.  Each Borrower represents and warrants that

the aggregate net asset value of the Mutual Subsidiaries as of March 31, 2002

is approximately $13,300,000.

 

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

 

16

 

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 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.  The Borrowers acknowledge that the

consultant referred to in Section 1(h) hereof is a consultant referred to in

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.]

 

17

 

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:

  	

   

  	 

											

 

18

 

	

   

  	

  Lenders:

  
	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Institution

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Title:

  
					

 

19

 

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. 9, 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. 9 and hereby confirms and agrees that (a)

notwithstanding the effectiveness of the foregoing Amendment No. 9, 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:

  

 

20

 

	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  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:

  

 

21

 

	

   

  	

  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:

  

 

22

 

Schedule 5.01(r)

to the Credit Agreement

Description of Centralized

Cash Management System:  Cash

Management

Procedures and Intercompany Lending

 

CBI and its subsidiary

companies each maintain a cash concentration account at PNC Bank, N.A., in

Cincinnati, Ohio.  These accounts are

directly connected to each other through daily sweeping transactions.  The sweeping transactions are set up to

automatically transfer any excess balances at CBI and the subsidiary companies

into                     company account

at the end of each business day.  If the

CBI concentration account or subsidiary company concentration account has a negative

balance at the end of a business day, funds are automatically transferred

from                  company account

into CBI’s or that subsidiary’s account.

 

Sweeping transfers made

from                        company

account into CBI and a subsidiary account are booked as a loan to CBI or the

subsidiary.  Sweeping transfers made

from the subsidiary account to                    company account are booked as a loan to                  .  The net amount borrowed or loaned by CBI and each subsidiary (as the

case may be) is added to CBI or that subsidiary’s (as the case may be) previous

outstanding loan balance with            

and rolled forward.

 

No amount may be transferred to

the CBI concentration account in respect of a payment on the New Notes or the

Other Permitted Equity if a Blocking Event has occurred and is continuing.

 

23

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