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

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

Description

Credit Agreement between Unilab Corporation, Various Lending Institutions, Bankers Trust Company and Merrill Lynch Capital Corporation dated November 23, 1999. 110 pages Title: Understanding the Kentucky Credit Agreement between Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp Introduction: The Kentucky Credit Agreement serves as a crucial financial document that outlines the terms and conditions of a credit arrangement between Unilab Corp, a prominent company, and its partners, including various lending institutions such as Bankers Trust Co and Merrill Lynch Capital Corp. This detailed description will shed light on the key aspects of this agreement, aimed at facilitating a comprehensive understanding of its purpose, structure, and potential variations. 1. Key Objectives of the Kentucky Credit Agreement: The Kentucky Credit Agreement aims to establish mutually beneficial relationships between Unilab Corp and its lending partners, enabling access to credit facilities, fostering growth opportunities, and supporting the company's financial requirements. The agreement typically encompasses terms related to the extension of credit limits, interest rates, repayment schedules, and collateral requirements. 2. Structure and Provisions of the Kentucky Credit Agreement: 2.1 Credit Limit and Utilization: The agreement specifies the maximum credit limit approved for Unilab Corp, ensuring both parties have a clear understanding of the available credit. It further outlines the conditions for credit utilization, including timely repayment expectations and consequences for exceeding limits. 2.2 Interest Rates: Interest rates are a fundamental component of any credit agreement. The document outlines the agreed-upon interest rates, be it fixed or variable, providing transparency on the cost of borrowing for Unilab Corp. 2.3 Repayment Terms: The agreement delineates the repayment schedule, including periodic installments, interest payments, penalties for late payments, and any prepayment provisions. These terms ensure regular and responsible repayment, minimizing financial risks for both Unilab Corp and its lending partners. 2.4 Collateral Requirements and Guarantees: To secure the credit provided, the agreement may stipulate specific collateral requirements and guarantees. This includes assets, accounts receivable, or personal guarantees by the company's directors or shareholders, serving as security for the lenders. 3. Different Types of Kentucky Credit Agreements: 3.1 Revolving Credit Agreement: This type of agreement provides the borrower with a predetermined credit limit, allowing them to borrow, repay, and reborrow within the authorized limit during a specified period. Interest is incurred only on the borrowed amount, providing flexibility. 3.2 Term Loan Agreement: In this agreement, a fixed amount is lent to the borrower for a defined period, whereby regular repayments, including principal and interest, are made over the loan's tenure. 3.3 Bridge Loan Agreement: Bridging temporary financing needs, this type of agreement provides short-term funding to the borrower until a long-term financing arrangement can be obtained. It helps overcome short-term liquidity challenges. Conclusion: The Kentucky Credit Agreement serves as a critical legal document that underpins Unilab Corp's financial activities and relationships with lending institutions like Bankers Trust Co and Merrill Lynch Capital Corp. By adhering to the terms and provisions stipulated in this agreement, Unilab Corp can meet its financial requirements while addressing the credit needs of its operations, growth, and investment endeavors.

Title: Understanding the Kentucky Credit Agreement between Unilab Corp, Various Lending Institutions, Bankers Trust Co, and Merrill Lynch Capital Corp Introduction: The Kentucky Credit Agreement serves as a crucial financial document that outlines the terms and conditions of a credit arrangement between Unilab Corp, a prominent company, and its partners, including various lending institutions such as Bankers Trust Co and Merrill Lynch Capital Corp. This detailed description will shed light on the key aspects of this agreement, aimed at facilitating a comprehensive understanding of its purpose, structure, and potential variations. 1. Key Objectives of the Kentucky Credit Agreement: The Kentucky Credit Agreement aims to establish mutually beneficial relationships between Unilab Corp and its lending partners, enabling access to credit facilities, fostering growth opportunities, and supporting the company's financial requirements. The agreement typically encompasses terms related to the extension of credit limits, interest rates, repayment schedules, and collateral requirements. 2. Structure and Provisions of the Kentucky Credit Agreement: 2.1 Credit Limit and Utilization: The agreement specifies the maximum credit limit approved for Unilab Corp, ensuring both parties have a clear understanding of the available credit. It further outlines the conditions for credit utilization, including timely repayment expectations and consequences for exceeding limits. 2.2 Interest Rates: Interest rates are a fundamental component of any credit agreement. The document outlines the agreed-upon interest rates, be it fixed or variable, providing transparency on the cost of borrowing for Unilab Corp. 2.3 Repayment Terms: The agreement delineates the repayment schedule, including periodic installments, interest payments, penalties for late payments, and any prepayment provisions. These terms ensure regular and responsible repayment, minimizing financial risks for both Unilab Corp and its lending partners. 2.4 Collateral Requirements and Guarantees: To secure the credit provided, the agreement may stipulate specific collateral requirements and guarantees. This includes assets, accounts receivable, or personal guarantees by the company's directors or shareholders, serving as security for the lenders. 3. Different Types of Kentucky Credit Agreements: 3.1 Revolving Credit Agreement: This type of agreement provides the borrower with a predetermined credit limit, allowing them to borrow, repay, and reborrow within the authorized limit during a specified period. Interest is incurred only on the borrowed amount, providing flexibility. 3.2 Term Loan Agreement: In this agreement, a fixed amount is lent to the borrower for a defined period, whereby regular repayments, including principal and interest, are made over the loan's tenure. 3.3 Bridge Loan Agreement: Bridging temporary financing needs, this type of agreement provides short-term funding to the borrower until a long-term financing arrangement can be obtained. It helps overcome short-term liquidity challenges. Conclusion: The Kentucky Credit Agreement serves as a critical legal document that underpins Unilab Corp's financial activities and relationships with lending institutions like Bankers Trust Co and Merrill Lynch Capital Corp. By adhering to the terms and provisions stipulated in this agreement, Unilab Corp can meet its financial requirements while addressing the credit needs of its operations, growth, and investment endeavors.