CORRAL PETROLEUM HOLDINGS AB (PUBL) - Preem

Preem must repay any loans outstanding under the term loan facilities by September 17, 2011. All loansoutstanding under the multi-currency revolving credit facility must be repaid by Preem by September 17, 2011. Loansand letters of credit under the revolving credit facilities may be used to finance eligible inventories and trade receivablesfor repayment of pre-existing debt, to cover certain costs relating to new security granted by Preem or for generalcorporate purposes. The proceeds of the loans under the term loan facilities were used to repay outstanding debtincluding the 2006 Credit Facility.Amendments and waiversOn April 8, 2009 Preem entered into the First Supplemental Agreement to the 2008 Credit Facility. Under theFirst Supplemental Agreement, the 2008 Credit Facility was amended and restated such that (i) the total commitmentsunder Facility A1 and A2 were reduced from $1,850 million to $1,350 million; (ii) the syndicated lenders agreed towaive the overall minimum or “hard” equity covenant of SEK 3,000 million until September 30, 2009 (subject totemporary minimum equity thresholds); (iii) the cumulative or “soft” minimum equity covenant has been waived untilMarch 30, 2010; and (iv) the net debt/equity covenant was waived until December 30, 2009. The equity covenants werealso modified going forward from these dates. See “—Financial Covenants.”Furthermore, and in exchange for certain additional security, which has since been released, Preem waspermitted up until November 18, 2009, subject to certain conditions, to issue additional letters of credit up to$250 million (“Additional Letters of Credit”) without any borrowing base limitations.Under the Second Supplemental Agreement and the Third Supplemental Agreement, certain furtheramendments to the 2008 Credit Facility were agreed and effected. Under the terms of the Second SupplementalAgreement and the Third Supplemental Agreement, the requirement to test the following financial covenants was waivedin respect of the Measurement Period (as defined in the 2008 Credit Facility) ending December 31, 2009, together withany related breaches of those covenants for such period:the ratio of consolidated EBITDA to consolidated interest costs;the ratio of Adjusted Net Debt to consolidated EBITDA; andthe ratio of Adjusted A1 Net Debt to consolidated EBITDA.In addition, the Second Supplemental Agreement and the Third Supplemental Agreement effected certainadditional amendments to the 2008 Credit Facility, including, among other amendments:the removal and resetting of certain financial covenant ratio levels under the 2008 Credit Facility, to therevised levels as set out below; the removal of the annual requirement to clean down the Facility C revolving credit facility under the 2008Credit Facility; andthe provision of a new revolving credit facility of up to $75 million (including a SEK sub-limit up toSEK 125 million).While the new revolving facility increased the amount available to be drawn by Preem from time to time, it didnot increase the pre-existing overall commitment levels under the 2008 Credit Facility.Preem paid customary fees and, in the case of the First Supplemental Agreement, agreed to increased margins inconnection with previous requests for the waivers and amendments to the 2008 Credit Facility.InterestInterest on loans utilized under the 2008 Credit Facility (as amended by the Second Supplemental Agreementand the Third Supplemental Agreement) accrues at a rate equal to IBOR plus mandatory costs plus a margin of 1.75% perannum (in the case of Facilities A and D) or 3.50% (in the case of Facilities B and C), as applicable. “IBOR” means (a) inthe case of euros, EURIBOR, (b) in the case of Swedish Kronor, STIBOR and (c) in the case of any other currency,LIBOR, in each case determined in accordance with the 2008 Credit Facility. Such interest is payable on a six-monthbasis, or in the case of loans with a term shorter than six months, on the last day of such term. Upon a payment defaultunder any finance document, the margin on each loan will be increased to 4.50% per annum. In addition, default interestis payable on any unpaid amount, at an additional rate of 1% per annum.Financial CovenantsUnder the 2008 Credit Facility as amended by the First Supplemental Agreement, the Second SupplementalAgreement and the Third Supplemental Agreement, Preem is obliged to maintain certain agreed financial ratios, such asAdjusted Net Debt to consolidated EBITDA and interest cover ratios as well as minimum equity levels. The covenanttesting levels set forth below reflect the revised ratio levels as set out in the Second Supplemental Agreement and as54