Advice of Borrowing Terms between National Westminster Bank Plc and Prestolite Electric Limited (August 29, 2002)
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This agreement outlines the terms under which National Westminster Bank Plc provides Prestolite Electric Limited with a commercial variable rate loan and group overdraft facility. The bank may demand repayment at any time and can change or withdraw the facilities with written notice. Prestolite must meet certain financial reporting and collateral requirements, and at least 50% of the new loan must be hedged against interest rate changes. The facilities are available until April 1, 2003, subject to review and ongoing compliance with the stated conditions.
EX-10.3 5 k74374exv10w3.txt ADVICE OF BORROWING TERMS EXHIBIT 10.3 Bank Copy Corporate Banking Services - -------------------------------------------------------------------------------- ADVICE OF BORROWING TERMS FOR Prestolite Electric Limited - -------------------------------------------------------------------------------- FROM: South West & South Wales Corporate Banking - Bristol Office 29th August 2002 COMMERCIAL VARIABLE RATE LOAN ADVICE OF BORROWING TERMS RELATIONSHIP South West & South Wales Corporate Banking DATE: 29th August 2002 OFFICE: Bristol Office BORROWER(S) REGISTERED NUMBER: Prestolite Electric Limited 1189048 We intend that the facilities listed in Part 1 of the attached Facility Schedule (the "on-demand facilities") should remain available to the borrower(s) until 1ST APRIL 2003 and all facilities should be reviewed on or before that date. The facilities are, however, subject to the following:- - - the terms and conditions below, - - the specific conditions applicable to an individual facility as detailed in the Facility Schedule, - - the Security detailed in the attached Security Schedule, and - - the attached General Terms. ALL AMOUNTS OUTSTANDING ARE REPAYABLE ON DEMAND WHICH MAY BE MADE BY US AT OUR DISCRETION AT ANY TIME AND THE FACILITIES MAY BE WITHDRAWN, REDUCED, MADE SUBJECT TO FURTHER CONDITIONS OR OTHERWISE VARIED BY US GIVING NOTICE IN WRITING. PRECONDITIONS: These preconditions must be satisfied before the new Commercial Variable Rate Loan can be utilised: - - The introduction of an interest rate management mechanism to hedge a minimum of 50% of the new loan. - - A signed copy of this Advice of Borrowing Terms to be returned to us. - - Receipt of a certified copy of a resolution of your board of directors confirming:- - certification by the chairman of the meeting that a valid quorum was present and the meeting was duly convened - acceptance of the terms and conditions of the facility/facilities - authorisation of a person or persons to sign the Form of Acceptance in this Advice of Borrowing Terms and to take such other action as may be necessary for the purpose of the facility/facilities CONDITIONS: The following conditions must be satisfied at all times while the facilities are outstanding, but this will not affect our right to demand repayment at any time: COMMERCIAL VARIABLE RATE LOAN 1. Monthly management accounts to include Profit and Loss, Balance sheet, Cash Flow Statements and Schedule of aged debtors, to be provided to us within 30 days of the end of the month to which they relate. 2. LENDING FORMULA; - Net overdraft utilisation to be covered 200% by trade debtors (excluding inter-company positions) less than 90 DAYS. This formula to be tested on a monthly basis against the aged debtor summary listings provided. Steve Carter Senior Manager South West & South Wales Corporate Banking For and on behalf of National Westminster Bank Plc ACCEPTANCE: To signify your agreement to the terms and conditions outlined above please sign and return the enclosed copy of this Advice of Borrowing Terms within 28 days. FORM OF ACCEPTANCE I accept the facility/facilities on the above terms and conditions and confirm that I have been authorised by the Board(s) of Directors of the Borrower(s) to sign this Form of Acceptance on behalf of the Borrower(s). Signed By (name and title):________________________________ Date FOR AND ON BEHALF OF: PRESTOLITE ELECTRIC LIMITED COMMERCIAL VARIABLE RATE LOAN FACILITY SCHEDULE PART 1 - FACILITIES REPAYABLE ON DEMAND:
INTEREST SET OFF: Debit and cleared credit balances in the same currency on non-interest bearing current and loan accounts repayable on demand (the "Interest Set Off Accounts") will be used to COMMERCIAL VARIABLE RATE LOAN calculate, on a daily basis, the net debit balance of the Interest Set Off Accounts. The Interest Set Off accounts, which we have agreed are to be set off for interest calculation purposes, are detailed in the attached Facility Schedule which also specifies the frequency at which interest will be payable and the rate or rates at which it will be charged on the net debit balance Debit balances which are set off on a daily basis by cleared credit balances on the Interest Set Off Accounts will incur interest at the Set Off Rate specified in the attached Facility Schedule. PART 2 - FACILITIES SUBJECT TO SEPARATE DOCUMENTATION: The following facilities are made available on the terms of the separate documentation between us.
SECURITY SCHEDULE We rely on the security detailed below (and require additional security where specified) to repay, on demand, all your current and future liabilities (both actual and contingent) to us. These liabilities include, without limitation, those incurred by you under the facility(ies) specified in the Facility Schedule.
