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Credit Agreement

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CREDIT AGREEMENT

dated as of , among

,

,

,

and

,

as Lead Arranger, Administrative Agent and Collateral Agent

,

Syndication Agent

,

and

Documentation Agents

TABLE OF CONTENTS

ARTICLE I - Definitions

ARTICLE II - The Credits

ARTICLE III - Representations and Warranties

ARTICLE IV - Conditions of Lending

ARTICLE V - Affirmative Covenants

ARTICLE VI - Negative Covenants

ARTICLE VII - Events of Default

ARTICLE VIII - The Administrative Agent and the Collateral Agent

ARTICLE IX - Miscellaneous

This Credit Agreement is entered into among the Borrower, Citadel, the Lenders, the Administrative Agent, the Collateral Agent, the Syndication Agent and the Documentation Agents.

The Borrower has requested the Lenders to extend credit in the form of Term Loans and Revolving Loans, and the Issuing Banks to issue letters of credit. The proceeds of the Term Loans will be used to repay existing obligations, finance acquisitions, and pay related fees and expenses. The proceeds of the Revolving Loans will be used for general corporate purposes, including working capital and capital expenditures.

The Lenders are willing to extend such credit and the Issuing Banks are willing to issue letters of credit on the terms and subject to the conditions set forth herein.

Accordingly, the parties hereto agree as follows:

ARTICLE I. DEFINITIONS

SECTION 1.01. Defined Terms.

"ABR" refers to a rate determined by reference to the Alternate Base Rate.

"Administrative Questionnaire" shall mean an Administrative Questionnaire in the form of Exhibit A.

"Affiliate" shall mean a person that directly or indirectly controls or is controlled by another person.

"Alternate Base Rate" shall mean the greater of the Prime Rate and the Federal Funds Effective Rate plus 1/2 of 1%.

"Asset Sale" shall mean the sale, transfer or other disposition of certain assets, subject to stated exceptions.

"Borrowing Request" shall mean a request by the Borrower in accordance with Section 2.03.

"Business Day" shall mean any day other than Saturday, Sunday or a bank holiday in New York City.

ARTICLE II. THE CREDITS

SECTION 2.01. Commitments.

Each Lender agrees to make Term Loans and Revolving Loans subject to the terms and conditions herein.

Requested Borrowing Type:

Borrowing Date:

Borrowing Amount:

Interest Period:

Interest rate provisions, fees, payments, prepayments, mandatory prepayments, reserve requirements, conversion procedures, and taxes apply as stated in the agreement.

ARTICLE III. REPRESENTATIONS AND WARRANTIES

The Loan Parties represent and warrant regarding organization, authorization, enforceability, governmental approvals, financial statements, title to properties, subsidiaries, litigation, compliance with laws, licenses, tax returns, employee benefit plans, environmental matters, insurance, security documents, solvency, and ranking of obligations.

ARTICLE IV. CONDITIONS OF LENDING

Conditions include receipt of notices, accuracy of representations, absence of defaults, legal opinions, officer certificates, pledged collateral, mortgages, title insurance, guarantee agreements, insurance policies, environmental and employee safety diligence, payoff of prior indebtedness, governmental approvals, acquisition agreements, and required financial statements.

ARTICLE V. AFFIRMATIVE COVENANTS

The Borrower and Citadel shall preserve existence, maintain insurance, pay obligations and taxes, furnish financial statements and reports, provide notices, maintain employee benefits compliance, keep records, permit inspections, use proceeds properly, comply with environmental laws, prepare environmental reports, provide further assurances, and enter into interest rate protection arrangements.

ARTICLE VI. NEGATIVE COVENANTS

Restrictions apply to indebtedness, liens, sale and lease-back transactions, investments, mergers, dividends, affiliate transactions, capital expenditures, leverage ratios, interest coverage ratios, modifications of indebtedness, subsidiary creation, hedging, internet trade out transactions, business activities, and fiscal year changes.

ARTICLE VII. EVENTS OF DEFAULT

Events of default include breach of representations, nonpayment, covenant defaults, material indebtedness defaults, insolvency proceedings, judgments, ERISA events, guarantee failures, security interest failures, and change in control.

ARTICLE VIII. THE ADMINISTRATIVE AGENT AND THE COLLATERAL AGENT

Credit Suisse First Boston is appointed as Administrative Agent and Collateral Agent, with powers, limitations, indemnities, resignation rights, and other duties as set forth in the agreement.

ARTICLE IX. MISCELLANEOUS

Notices, survival, binding effect, assignments, expenses, indemnity, setoff, governing law, waivers, amendment, interest rate limitation, entire agreement, jury trial waiver, severability, counterparts, headings, jurisdiction, and confidentiality provisions apply as stated herein.

The document includes schedules and exhibits relating to letters of credit, pending acquisitions, mortgaged properties, lender commitments, governmental approvals, title to properties, subsidiaries, litigation, FCC licenses, environmental matters, insurance, mortgage offices, real property, indebtedness, liens, and various forms and opinions.

CITADEL BROADCASTING COMPANY

By:

Name:

Title:

CITADEL COMMUNICATIONS CORPORATION

By:

Name:

Title:

CREDIT SUISSE FIRST BOSTON

By:

Name:

Title:

By:

Name:

Title:

FINOVA CAPITAL CORPORATION

By:

Name:

Title:

FIRST UNION NATIONAL BANK

By:

Name:

Title:

FLEET NATIONAL BANK

By:

Name:

Title:

Additional Comments or Notes:

Enter text✕

What a Credit Agreement Is and when it applies

A Credit Agreement is a legally binding contract between a lender and a borrower that sets the terms for extending credit. It defines the principal amount, interest rate, repayment schedule, fees, covenants, representations, events of default, and remedies. Credit Agreements may be unsecured or secured (with collateral) and often include guaranties, perfection instructions (UCC-1), and exhibits such as schedules and security descriptions. Properly drafted agreements allocate risk, describe rights on default, and specify governing law and dispute resolution.

Why clear Credit Agreements matter

A precise Credit Agreement reduces litigation risk, clarifies payment obligations, preserves priority in secured lending, and documents remedies on default. Well-structured terms protect lender repayment expectations and borrower disclosure obligations while supporting enforceability in court or bankruptcy.

Why clear Credit Agreements matter

Who prepares and reviews Credit Agreements

Typical parties and professionals involved in creating and approving a Credit Agreement include finance teams, counsel, and borrower representatives.

  • Lenders and underwriters: draft term sheets, set covenants, and approve credit risk documentation.
  • Borrowers and CFOs: provide financial statements, negotiate covenants, and confirm corporate authority.
  • Outside counsel and closing agents: perform legal review, draft security documents, and coordinate filings.

Coordinated review among these stakeholders ensures accurate terms, timely signatures, and proper perfection of any security interests.

Common signatories and their roles

Bank Counsel

Senior or transactional counsel for a lending institution. Reviews repayment mechanics, collateral descriptions, default remedies, and ensures documentation satisfies the lender's internal credit policy and regulatory obligations.

Borrower Principal

Business owner or corporate officer authorized to bind the borrower. Confirms corporate authorization, provides required financial schedules, and accepts covenants and reporting obligations on behalf of the entity.

Core sections to include in a professional Credit Agreement

A complete Credit Agreement organizes terms so lenders and borrowers understand obligations, timing, security, and remedies.

Parties

Identify borrower, lender, guarantors, and agent; include legal entity types and state of organization for each party.

Definitions

Centralize defined terms and calculation rules for interest, default rates, and payment periods to avoid ambiguity.

Loan Amount & Disbursement

Specify committed amounts, advances, funding conditions, and procedures for drawdowns and repayments.

Interest & Payments

State interest rate formula, compounding convention, payment dates, late fees, and allocation of payments.

Covenants & Representations

Include affirmative and negative covenants, financial covenants, and borrower reps supporting enforceability.

Events of Default

List default triggers, cure periods, acceleration rights, and remedies including foreclosure or setoff.

Essential information fields required in the Credit Agreement

Borrower Legal Name: Full registered name
Lender Legal Name: Full registered name
Principal Amount: Numeric currency value
Interest Rate: APR or formula
Repayment Schedule: Due dates/frequency
Collateral Description: Collateral specifics

Step-by-step: Completing a Credit Agreement

Follow a standard completion flow to reduce omissions and ensure enforceability.

  • 01
    Collect party data: Confirm legal names, addresses, and officer authority.
  • 02
    Enter core terms: Record principal, rates, schedule, and fees clearly.
  • 03
    Attach exhibits: Add schedules, collateral descriptions, and guaranties.
  • 04
    Execute and distribute: Obtain signatures and circulate final executed copies.

How to configure an online Credit Agreement workflow

Configure signing order, authentication, and notifications before sending to signers to ensure a smooth remote closing.

Field Configuration
Signature order Sequential or parallel signing
Authentication method Email link, SMS code, or KBA
Templates Save standard clauses as reusable templates
Notifications Auto-reminders and completion emails

Where to file, send, and record related documents

After execution, route copies to parties, record security where required, and file ancillary instruments to perfect rights.

  • Lender files UCC-1: File UCC-1 financing statement to perfect security interest.
  • Record real estate liens: Record mortgage or deed of trust at county recorder.
  • Deliver executed copies: Provide executed agreements to borrower and guarantors.
  • Register collateral where required: File fixtures or vehicle liens in applicable registry.

Digital signing, formats, and integration considerations

Use a platform that supports legal eSign workflows, common file formats, and the authentication level required for your transaction.

  • File formats: PDF and DOCX support maintain document integrity
  • Integrations: CRM and ERP integrations reduce manual entry
  • Authentication: Email, SMS, or stronger ID verification

Many providers integrate with systems such as Salesforce, NetSuite, and Google Workspace to streamline data prefill and post-execution routing; choose authentication based on transaction risk and jurisdictional needs.

Key dates and timing to track in a Credit Agreement

Track effective, funding, payment, and filing deadlines to preserve rights and avoid penalties.

Effective date:

Enter as MM/DD/YYYY; governs when obligations begin

Funding date:

Date lender disburses proceeds to borrower

Payment due dates:

Specify monthly/quarterly due dates and grace periods

Default cure period:

Specify cure window, commonly 10–30 days

UCC-1 filing timeframe:

File promptly after execution to protect priority

Common drafting and execution errors to avoid

  • Using informal or inconsistent party names that do not match formation documents, risking enforceability and filing rejection.
  • Leaving interest calculation or compounding methods undefined, causing disputes over amounts due and payment allocation.
  • Omitting exhibits or schedules (collateral lists, guaranties), which can nullify security descriptions or delay perfection.
  • Failing to perfect security interests (UCC-1, county recording) in time, resulting in subordinate priority on borrower assets.

Legal and financial risks of an incorrect Credit Agreement

Acceleration: Lender may demand immediate repayment on default
Loss of priority: Late UCC filing can subordinate lender to other creditors
Foreclosure risk: Enforcement against collateral can result from default
Contract disputes: Ambiguous terms increase litigation risk and cost
Regulatory exposure: Noncompliance with consumer finance rules can trigger penalties
Tax reporting: Incorrect reporting may create IRS or withholding liabilities

Real-world examples of online credit documentation

Examples show how digital signing reduces turnaround and preserves audit trails in lending workflows.

Optica Ventures

Their team simplified lender-borrower closings with online execution and secure distribution.

  • The interface is simple and easy-to-use for our team.
  • By moving signature collection online, Optica reduced close-time, standardized templates, and retained detailed audit evidence for each funded facility.

Martin Properties

A real estate borrower used remote signing to accelerate funding and record mortgage documents.

  • I can process and execute all of these documents online with 100% compliance.
  • The firm closed multiple property financings faster, delivered executed copies to title and recording offices, and reduced courier costs during closings.

Pricing and feature snapshot for eSignature solutions commonly used with Credit Agreements

Core plan pricing and feature availability across major eSignature providers. signNow is shown first per comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes — 7-day trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Practical tips for accurate and efficient Credit Agreement completion

Apply consistent practices at drafting and closing to reduce errors and minimize rework.

Use consistent legal names
Match entity names to formation records and include state of organization to avoid filing rejections.
Standardize templates
Maintain approved clause libraries and prefill common fields to accelerate execution and reduce negotiation cycles.
Document exhibits clearly
Attach numbered exhibits and cross-reference them in the body to avoid ambiguity on collateral or guaranties.
Plan perfection steps
Coordinate UCC-1 filings and county recordings immediately after execution to protect lien priority.

Frequently asked questions about Credit Agreements and electronic execution

Answers to common legal and process questions related to preparing, executing, and preserving Credit Agreements in the United States.


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