Exhibit 1.1
EXECUTION COPY
QWEST CORPORATION
$950,000,000 6.75% Notes due 2021
UNDERWRITING AGREEMENT
September 27, 2011
Citigroup Global Markets Inc.
J.P. Morgan Securities LLC
Deutsche Bank Securities Inc.
Mitsubishi UFJ Securities (USA), Inc.
SunTrust Robinson Humphrey, Inc.
BNY Mellon Capital Markets, LLC
Fifth Third Securities, Inc.
Mizuho Securities USA Inc.
U.S. Bancorp Investments, Inc.
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c/o
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Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
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J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
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Ladies and Gentlemen:
Qwest Corporation, a Colorado corporation (the
Company
), proposes to issue and sell
to you (individually, an
Underwriter
and collectively, the
Underwriters
) an
aggregate of $950,000,000 principal amount of the Companys 6.75% Notes due 2021 (the
Securities
) to be issued pursuant to an Indenture dated as of October 15, 1999, between
the Company (formerly known as US WEST Communications, Inc.) and Bank of New York Trust Company,
National Association (as successor in interest to Bank One Trust Company), as amended and
supplemented to the date hereof, and as will be further supplemented by the Ninth Supplemental
Indenture (the
Supplemental Indenture
) between the Company and U.S. Bank National
Association, as trustee (the
Trustee
), to be dated as of October 4, 2011, relating to the
Securities (as amended and supplemented, the
Indenture
).
The purchase price for the Securities to be paid by the Underwriters shall be agreed upon by
the Company and the Underwriters and such agreement shall be set forth in a separate written
instrument substantially in the form of Exhibit A hereto (the
Price Determination
Agreement
).
The Price Determination Agreement may take the form of an exchange of any
standard form of written communication among the Company and the Underwriters and shall specify
such applicable information as is indicated in Exhibit A hereto. The offering of the Securities
will be governed by this Agreement, as supplemented by the Price Determination Agreement. From and
after the date of the execution and delivery of the Price Determination Agreement, this Agreement
shall be deemed to incorporate, and, unless the context otherwise indicates, all references
contained herein or in the exhibits hereto to this Agreement, the Underwriting Agreement and to
the phrase herein shall be deemed to include, the Price Determination Agreement.
The Company confirms as follows its agreements with the several Underwriters.
1.
Agreement to Sell and Purchase
. (a) On the basis of the representations,
warranties and agreements of the Company herein contained and subject to all the terms and
conditions of this Agreement, the Company agrees to sell to each of the Underwriters, and the
Underwriters agree, severally and not jointly, to purchase from the Company, the principal amount
of the Securities set forth opposite the name of such Underwriter in Schedule I hereto, plus such
additional principal amount of Securities which any Underwriter may become obligated to purchase
pursuant to Section 8 hereof, all at the purchase price to be agreed upon by the Underwriters and
the Company in accordance with Section 1(b) and as set forth in the Price Determination Agreement.
(b) The purchase price for the Securities to be paid by the several Underwriters shall be
agreed upon and set forth in the Price Determination Agreement, which shall be dated the Execution
Date (as hereinafter defined).
2.
Delivery and Payment
. Delivery of the Securities shall be made to the Underwriters
for the account of each Underwriter in book-entry form through the facilities of The Depository
Trust Company (DTC) against payment of the purchase price therefor by such Underwriter or on its
behalf therefor by wire transfer in same day funds to the Company or its order at the office of
Pillsbury Winthrop Shaw Pittman LLP, New York, New York, or at such other location as the parties
may agree. Such payment shall be made at 10:00 a.m., New York City time, on the fifth business day
following the date of this Agreement or at such time on such other date as may be agreed upon by
the Company and the Representatives (such date is hereinafter referred to as the
Closing
Date
).
The Securities to be purchased by each Underwriter hereunder will be represented by one or
more registered global Securities in book-entry form, which will be deposited by or on behalf of
the Company with DTC or its designated custodian. The certificates for the Securities will be made
available for examination and packaging by Citigroup Global Markets Inc. and J.P. Morgan Securities
LLC, as representatives of the several Underwriters (the
Representatives
), in New York
City not later than 10:00 a.m. (New York City time) on the business day prior to the Closing Date.
The cost of original issue tax stamps, if any, in connection with the issuance and sale of the
Securities by the Company to the respective Underwriters shall be borne by the Company. The
Company will pay and hold each Underwriter and any subsequent holder of the Securities
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harmless
from any and all liabilities with respect to or resulting from any failure or delay in paying
federal and state stamp and other issuance taxes, if any, which may be payable or determined to be
payable in connection with the original issuance or sale to such Underwriter of the Securities.
3.
Representations and Warranties of the Company
. The Company represents and warrants
to the several Underwriters as of the date hereof and as of the Closing Date, and covenants with
the several Underwriters, that:
(a) The Company meets the requirements for the use of an automatic shelf registration
statement, as defined in Rule 405 under the Securities Act of 1933, as amended, and the rules and
regulations of the Commission thereunder (collectively, the
Securities Act
), and such
registration statement on Form S-3 (File No. 333-156101-03), including a prospectus (the
Basic
Prospectus
), relating to, among other securities, the debt securities to be issued from time
to time by the Company has been prepared and filed by the Company with the Securities and Exchange
Commission (the
Commission
) not earlier than three years prior to the date hereof. The
Company has also filed, or proposes to file, with the Commission pursuant to Rule 424 under the
Securities Act a prospectus supplement dated the date hereof specifically relating to the
Securities (the
Prospectus Supplement
).
Such registration statement, at the Effective Date (as defined herein), including the
information, if any, deemed pursuant to Rule 430A, 430B or 430C under the Securities Act to be part
of the registration statement at the time of such effectiveness (
Rule 430 Information
),
is referred to herein as the
Registration Statement
, and, as used herein, the term
Prospectus
means the Basic Prospectus as supplemented by the Prospectus Supplement in the
form first used (or made available upon request of purchasers pursuant to Rule 173 under the
Securities Act) in connection with confirmation of sales of the Securities and the term
Preliminary Prospectus
means the preliminary prospectus supplement dated September 27,
2011 specifically relating to the Securities together with the Basic Prospectus. References herein
to the Registration Statement, the Preliminary Prospectus or the Prospectus shall be deemed to
refer to and include the documents incorporated or deemed to be incorporated by reference therein
as of the Effective Date with respect to the Registration Statement or the date of the Preliminary
Prospectus or the date of the Prospectus Supplement, as the case may be. The terms supplement,
amendment and amend as used herein with respect to the Registration Statement, the Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include any documents filed by the
Company under the Securities Exchange Act of 1934, as amended, and the rules and regulations of the
Commission thereunder (collectively, the
Exchange Act
), subsequent to the date of this
Agreement which are deemed to be incorporated by reference therein. For purposes of this
Agreement, the term
Effective Date
means the effective date of the Registration Statement
with respect to the offering of Securities as determined for the Company pursuant to Rule
430B(f)(2) under the Securities Act and the term
Execution Date
means the date that this Agreement is executed and delivered by the parties hereto, as
reflected on the first page hereof.
At or prior to the Time of Sale (as defined in the Price Determination Agreement), the Company
had prepared the following information (collectively, the
Time of Sale
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Information
): the
Preliminary Prospectus and each Issuer Free Writing Prospectus (as defined herein) listed on
Schedule II hereto.
(b) The Registration Statement became effective upon filing with the Commission under the
Securities Act. No order suspending the effectiveness of the Registration Statement has been
issued by the Commission and no proceeding for that purpose or pursuant to Section 8A of the
Securities Act against the Company or related to the offering has been initiated or, to the
knowledge of the Company, threatened by the Commission; as of the Effective Date, the Registration
Statement complied in all material respects with the Securities Act and the Trust Indenture Act of
1939, as amended, and the rules and regulations of the Commission thereunder (collectively, the
Trust Indenture Act
), and did not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements
therein not misleading; and as of the date of the Prospectus Supplement and any amendment or
supplement thereto and as of the Closing Date, the Prospectus complied in all material respects
with the Securities Act and the Trust Indenture Act and did not and will not contain any untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading; provided that the Company makes no representation and warranty
with respect to (i) that part of the Registration Statement that constitutes the Statement of
Eligibility and Qualification (Form T-1) of the Trustee under the Trust Indenture Act or (ii) any
statements or omissions in the Registration Statement and the Prospectus and any amendment or
supplement thereto made in reliance upon and in conformity with information furnished to the
Company in writing by any Underwriter through the Representatives expressly for use therein.
(c) The Time of Sale Information, at the Time of Sale did not, and at the Closing Date will
not, contain any untrue statement of a material fact or omit to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading; provided that the Company makes no representation and warranty with respect to any
statements or omissions made in the Time of Sale Information in reliance upon and in conformity
with information furnished to the Company in writing by any Underwriter through the Representatives
expressly for use in such Time of Sale Information. No statement of material fact included in the
Prospectus has been omitted from the Time of Sale Information and no statement of material fact
included in the Time of Sale Information that is required to be included in the Prospectus has been
omitted therefrom.
(d) The Company (including its agents and representatives, other than the Underwriters in
their capacity as such) has not prepared, made, used, authorized, approved or referred to and will
not prepare, make, use, authorize, approve or refer to any written communication (as defined in
Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation of an offer to
buy the Securities (each such communication by the Company or its agents and representatives (other
than a communication referred to in clauses (i), (ii) and (iii)
below), an
Issuer Free Writing Prospectus
) other than (i) any document not
constituting a prospectus pursuant to Section 2(a)(10)(a) of the Securities Act or Rule 134 under
the Securities Act, (ii) the Preliminary Prospectus, (iii) the Prospectus, (iv) the documents
listed on Schedule II to this Agreement as constituting part of the Time of Sale Information and
(v) any electronic road show or other written communications, in the case of clause (v) approved in
writing in
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advance by the Representatives. Each such Issuer Free Writing Prospectus complied in
all material respects with the Securities Act, has been or will be (within the time period
specified in Rule 433) filed in accordance with the Securities Act (to the extent required thereby)
and, when taken together with each such other Issuer Free Writing Prospectus and the Preliminary
Prospectus did not, and at the Closing Date will not, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided that the Company
makes no representation and warranty with respect to any statements or omissions made in each such
Issuer Free Writing Prospectus in reliance upon and in conformity with information furnished to the
Company in writing by any Underwriter through the Representatives expressly for use in any such
Issuer Free Writing Prospectus.
(e) The documents which are incorporated by reference in the Registration Statement, the
Prospectus and the Time of Sale Information, when filed with the Commission, as the case may be,
complied in all material respects with the requirements of the Securities Act or the Exchange Act
and did not and will not contain an untrue statement of material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
(f) (A) (i) At the time of initial filing of the Registration Statement, (ii) at the time of
the most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the
Securities Act (pursuant to the most recent Annual Report on Form 10-K incorporated therein), and
(iii) at the time the Company or any person acting on its behalf (within the meaning, for this
clause only, of Rule 163(c) under the Securities Act) made any offer relating to the Securities in
reliance on the exemption of Rule 163 under the Securities Act, the Company was a well-known
seasoned issuer as defined in Rule 405 under the Securities Act; and (B) at the earliest time
after the filing of the Registration Statement that the Company or another offering participant
made a bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act) of the
Securities, the Company was not, and currently is not, an ineligible issuer as defined in Rule
405 under the Securities Act.
(g) The Company is, and at the Closing Date will be, a corporation duly incorporated, validly
existing and in good standing under the laws of its jurisdiction of incorporation. The Company
does not have any subsidiary that is a significant subsidiary (as such term is defined in
Regulation S-X under the Exchange Act). The Company has, and at the Closing Date will have, full
corporate power and authority to conduct all the activities conducted by it, to own or lease all
the assets owned or leased by it and to conduct its business as described in the Registration
Statement, the Time of Sale Information and the Prospectus. The Company is, and at the Closing
Date will be, duly licensed or qualified to do business and in good standing as a foreign
corporation in all jurisdictions in which the nature of the activities conducted by it or the
character of the assets owned or leased by it makes such licensing or qualification necessary
except where the failure to be so qualified or licensed would not have a material adverse effect
on the business, properties, business prospects, condition (financial or otherwise) or results
of operations of the Company and its subsidiaries, taken as a whole (a
Material Adverse
Effect
). For purposes of this Agreement, subsidiaries shall mean (i) the Companys direct
and indirect majority-owned corporate subsidiaries, (ii) the Companys direct and indirect majority
owned limited liability companies and (iii) the partnerships, joint ventures and other entities of
which
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the Company or any subsidiary is the majority owner or managing general partner. Complete
and correct copies of the certificate of incorporation and of the by-laws or other organizational
documents of the Company and all amendments thereto have been made available to the Underwriters,
and no changes therein will be made subsequent to the Time of Sale and prior to the Closing Date.
(h) The Securities have been duly and validly authorized and, when authenticated by the
Trustee and issued, delivered and sold in accordance with this Agreement and the Indenture, will
have been duly and validly executed, authenticated, issued and delivered and will constitute valid
and binding obligations of the Company, enforceable against the Company in accordance with their
respective terms and entitled to the benefits provided by the Indenture except (i) that such
enforcement may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or other similar laws, now or hereafter in effect, relating to creditors rights
generally and (ii) that the remedy of specific performance and injunctive and other forms of
equitable relief may be subject to equitable defenses and to the discretion of the court before
which any proceeding therefor may be brought.
(i) The description of the Securities in each of the Registration Statement, the Time of Sale
Information and the Prospectus is, and at the Closing Date will be, complete and accurate in all
material respects and, insofar as such description contains statements constituting a summary of
the legal matters or documents referred to therein, such description fairly summarizes the
information referred to therein in all material respects.
(j) The historical financial statements and schedules included or incorporated by reference in
the Registration Statement, the Time of Sale Information and the Prospectus, filed by the Company
with the Commission, present fairly, in all material respects, the consolidated financial condition
of the Company as of the respective dates thereof and the consolidated results of operations and
cash flows of the Company for the respective periods covered thereby, all in conformity with United
States generally accepted accounting principles applied on a consistent basis throughout the entire
period involved, except as otherwise disclosed in the Registration Statement, the Time of Sale
Information and the Prospectus. The selected consolidated financial data included in the
Registration Statement, the Time of Sale Information and the Prospectus present fairly, in all
material respects, as of the dates thereof the information shown therein and have been compiled on
a basis consistent with that of the audited consolidated financial statements of the Company
included or incorporated by reference in the Registration Statement, the Time of Sale Information
and the Prospectus. No other financial statements or schedules of the Company are required by the
Securities Act or the Exchange Act to be included in or incorporated by reference in the
Registration Statement, the Time of Sale Information or the Prospectus.
(k) No pro forma financial statements or information are required by the Securities Act or the
Exchange Act to be included or incorporated by reference in the Registration Statement, the Time of
Sale Information or the Prospectus.
(l) KPMG LLP (
KPMG
), who has audited certain financial statements and schedules of
the Company incorporated by reference in the Registration Statement, the Time of
6
Sale Information
and the Prospectus, is an independent registered public accounting firm with respect to the
Company, as required by the Securities Act.
(m) Neither the Company nor any of its subsidiaries has sustained since the date of the latest
audited financial statements included or incorporated by reference in the Time of Sale Information
and the Prospectus any loss or interference with its business that is material to the Company and
its subsidiaries (taken as a whole), from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor dispute or court or governmental action, order or decree,
otherwise than as set forth or contemplated in the Time of Sale Information and the Prospectus;
and, since the respective dates as of which information is given in the Registration Statement, the
Time of Sale Information and the Prospectus, there has not been any change in the capital stock of
the Company or any of its subsidiaries, any change in the face amount of consolidated long-term
debt for borrowed money owed by the Company and its subsidiaries (except for changes to long-term
debt relating to real estate notes entered into in the ordinary course consistent with past
practice) or any material adverse change, or any development involving a prospective material
adverse change, in or affecting the general affairs, management, financial position, stockholders
equity or results of operations of the Company and its subsidiaries, taken as a whole, otherwise
than as set forth or contemplated in the Time of Sale Information and the Prospectus.
(n) The Company is not, and after giving effect to the issuance and sale of the Securities and
the application of the proceeds thereof as described in the Time of Sale Information, will not be,
an investment company or an affiliated person of, or promoter or principal underwriter for,
an investment company, as such terms are defined in the Investment Company Act of 1940, as
amended.
(o) Excluding those set forth in the Registration Statement, the Time of Sale Information and
the Prospectus, there are no actions, suits or proceedings pending or, to the Companys knowledge,
threatened against or affecting the Company or any of its subsidiaries or any of their respective
officers in their capacity as such, before or by any federal or state court, commission, regulatory
body, administrative agency or other governmental body, domestic or foreign, that is likely to have
a Material Adverse Effect. Excluding those set forth in the Registration Statement, the Time of
Sale Information and the Prospectus, all actions, suits or proceedings now pending against the
Company or any of its subsidiaries, or any of their respective officers in their capacities as
such, before any Federal or state court, commission, regulatory body, administrative agency or
other governmental body, domestic or foreign, if decided or resolved in a manner unfavorable to the
Company or any of its subsidiaries, would not be likely to, individually or in the aggregate, have
a Material Adverse Effect.
(p) The Company has and, at the Closing Date will have (i) such franchises, certificates,
authorities or permits issued by the appropriate state, federal or foreign regulatory
agencies or bodies necessary to conduct the business now operated by it, other than those the
absence of which would not be likely to have a Material Adverse Effect, and the Company has not
received any written notice of proceedings relating to the revocation or modification of any such
franchise, certificate, authority or permit which, individually or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, would be likely to have a Material Adverse Effect,
(ii) complied in all material respects with all laws, statutes, ordinances, rules, regulations,
7
orders or decrees of any court, governmental body or regulatory authority or administrative agency
having jurisdiction over the Company or any of the property or assets of the Company (including,
without limitation, any such laws, statutes, ordinances, rules, regulations, orders or decrees with
respect to environmental protection or the release, handling, treatment, storage or disposal of
hazardous substances or toxic wastes), the failure to comply with which would be likely to have a
Material Adverse Effect, and (iii) performed in all material respects all of its obligations
required to be performed by it under any material contract or other instrument to which it is a
party or by which its property is bound or affected, and is not, and at the Closing Date will not
be, in default under any such contract or instrument the effect of which would be likely to have a
Material Adverse Effect. To the best knowledge of the Company, no other party under any material
contract or other instrument to which it is a party is in default in any respect thereunder, except
for any such defaults (alone or collectively) that would not be likely to have a Material Adverse
Effect; provided that it is understood and agreed that the Company has not undertaken any special
investigation to determine compliance by such other parties under any such contract or other
instrument. The Company is not, and at the Closing Date will not be, in violation of any provision
of its articles of incorporation or by-laws, each as amended, or in default in any material respect
under any agreement or instrument evidencing indebtedness for borrowed money.
(q) No consent, approval, authorization or order of, or any filing, registration,
qualification or declaration with, any court or governmental agency or body is required for (i) the
execution, delivery or performance of this Agreement, the Securities or the Supplemental Indenture
by the Company, (ii) the authorization, offer, issuance, transfer, sale or delivery of the
Securities by the Company in accordance with this Agreement or (iii) the consummation by the
Company of the transactions on its part contemplated herein and by the Indenture, except such as
may have been obtained, or on or prior to the Closing Date will be obtained, under the Securities
Act, the Exchange Act or the Trust Indenture Act and such as may be required under foreign or state
securities or blue sky laws or the rules of the Financial Industry Regulatory Authority
(
FINRA
) in connection with the purchase and distribution of the Securities by the
Underwriters.
(r) The Company has full corporate power and authority to enter into this Agreement. This
Agreement has been duly authorized, executed and delivered by the Company and, when duly executed
and delivered by the Underwriters, will constitute a valid and binding agreement of the Company and
will be enforceable against the Company in accordance with the terms hereof, except (i) that such
enforcement may be subject to bankruptcy, insolvency, reorganization, fraudulent conveyance,
moratorium or other similar laws, now or hereafter in effect, relating to creditors rights
generally, (ii) that the remedy of specific performance and injunctive and other forms of equitable
relief may be subject to equitable defenses and to the discretion of the court before which any
proceeding therefor may be brought and (iii) rights to indemnity and contribution hereunder may be
limited by federal or state laws relating to
securities or the policies underlying such laws. The Indenture has been duly authorized,
executed and delivered by the Company and the Trustee and has been qualified under the Trust
Indenture Act and constitutes a valid and binding agreement of the Company enforceable against the
Company in accordance with its terms, except (i) that such enforcement may be subject to
bankruptcy, insolvency, reorganization, moratorium or other similar laws, now or hereafter in
effect, relating to creditors rights generally and (ii) that the remedy of specific performance
and
8
injunctive and other forms of equitable relief may be subject to equitable defenses and to the
discretion of the court before which any proceeding therefor may be brought.
(s) The issue and sale of the Securities, the execution, delivery and performance by the
Company of this Agreement and the Indenture and the consummation of the transactions contemplated
hereby and thereby will not (i) result in a violation of any of the terms or provisions of the
articles of incorporation or by-laws, each as amended, of the Company, (ii) violate or conflict
with any franchise or any judgment, ruling, decree, order, statute, rule or regulation of any court
or other governmental agency or body applicable to the Company or its business or properties or
(iii) result in the creation or imposition of any lien, charge or encumbrance upon any of the
assets of the Company pursuant to the terms or provisions of, or result in a breach or violation of
any of the terms or provisions of, or constitute a default under, or give any other party a right
to terminate any of its obligations under, or result in the acceleration of any obligation under,
any indenture, mortgage, deed of trust, voting trust agreement, loan agreement, bond, debenture,
note agreement or other evidence of indebtedness, lease, contract or other agreement or instrument
to which the Company is a party or by which the Company or any of its properties is or are bound or
affected (the applicable agreements), other than with respect to this clause (iii) any breaches,
violations, defaults, terminations or accelerations with respect to any applicable agreement that
will not, or are not likely to, have a Material Adverse Effect.
(t) The Company has good and marketable title to all franchises, properties and assets owned
by it, which are material to the business or operations of the Company and its subsidiaries, taken
as a whole (including without limitation the stock or other equity interests of all subsidiaries),
free and clear of all liens, charges, encumbrances or restrictions, except such as are described in
the Time of Sale Information and the Prospectus and except immaterial liens which do not affect the
operations or financial condition of the Company. The Company has valid, subsisting and
enforceable leases for the properties leased by it, with such exceptions as would not materially
interfere with the business or operations of the Company and its subsidiaries, taken as a whole.
(u) All existing material contracts described in the Time of Sale Information and the
Prospectus to which the Company is a party have been duly authorized, executed and delivered by the
Company, constitute valid and binding agreements of the Company and are enforceable against the
Company in accordance with the terms thereof, except (i) that such enforcement may be subject to
bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws,
now or hereafter in effect, relating to creditors rights generally and (ii) that the remedy of
specific performance and injunctive and other forms of equitable relief may be subject to equitable
defenses and to the discretion of the court before which any proceeding therefor may be brought.
Such described contracts are the only contracts required to be described in the Time of Sale
Information and the Prospectus by the Securities Act.
(v) No statement, representation, warranty or covenant made by the Company in this Agreement
or the Indenture or made in any certificate or document required by this Agreement to be delivered
to the Underwriters was or will be, when made, inaccurate, untrue or incorrect in any material
respect.
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(w) No holder of securities of the Company has rights to the registration of any securities of
the Company because of the filing of the Registration Statement or the offering and sale of the
Securities.
(x) No action has been taken (including the issuance or service of any injunction, restraining
order or order of any nature by a federal or state court of competent jurisdiction), and no
statute, rule, regulation or order has been enacted, adopted or issued by any governmental agency
or body that prevents the issuance of the Securities, suspends the effectiveness of the
Registration Statement, prevents or suspends the use of the Time of Sale Information or the
Prospectus, or suspends the sale of the Securities in any jurisdiction referred to in Section 4(i)
below, provided, however, that to the extent this representation relates to state securities or
blue sky laws and laws of jurisdictions other than the United States and its political
subdivisions, it shall be limited to the knowledge of the Company.
(y) The Company has not taken, directly or indirectly, any action designed to cause or to
result in, or that has constituted or which might reasonably be expected to constitute, the
stabilization or manipulation of the price of any security of the Company to facilitate the sale or
resale of the Securities in any jurisdiction referred to in Section 4(i) below in contravention of
applicable law, provided that no representation is made herein as to the activities of any
Underwriter.
(z) The Company and its subsidiaries maintain (x) systems of internal controls over financial
reporting (as defined in Rule 15d-15 under the Exchange Act) sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with managements general or specific
authorizations; (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles and to maintain asset
accountability; and (iii) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any differences and
(y) disclosure controls and procedures as defined in, and that comply in all material respects with
the requirements of, Rule 15d-15 under the Exchange Act. The Company is not aware of any material
weakness in its internal controls over financial reporting.
(aa) The Company is, to its knowledge, in compliance in all material respects with the
applicable provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations of the
Commission that have been adopted and are effective thereunder.
4.
Agreements of the Company
. The Company agrees with the several Underwriters as
follows:
(a) The Company will file each of the Preliminary Prospectus and the Prospectus in a form
approved by the Representatives with the Commission pursuant to Rule 424 under the Securities Act
not later than the close of business on the second business day following the date
of first use, with respect to the Preliminary Prospectus, and the date of determination of the
public offering price of the Securities, with respect to the Prospectus or, if applicable, such
earlier time as may be required by Rule 424(b) and Rule 430A, 430B or 430C under the Securities
Act. The Company will prepare a final term sheet in a form approved by the Representatives and
attached hereto as Exhibit D (the
Final Term Sheet
) and will file any
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Issuer Free Writing
Prospectus (including the Final Term Sheet) to the extent required by Rule 433 under the Securities
Act.
(b) The Company will not, from the Time of Sale until the end of such period as the Prospectus
is required by law to be delivered (or required to be delivered but for Rule 172 under the
Securities Act) in connection with sales of the Securities by an Underwriter or dealer, file any
amendment or supplement to the Registration Statement, any Issuer Free Writing Prospectus, the
Preliminary Prospectus or the Prospectus, unless a draft thereof shall first have been submitted to
the Underwriters within a reasonable period of time prior to the filing thereof and the
Underwriters shall not have objected thereto in good faith.
(c) The Company will notify the Underwriters promptly, and will confirm such advice in
writing, (i) when any post-effective amendment to the Registration Statement becomes effective,
(ii) of any request by the Commission for amendments or supplements to the Registration Statement,
the Preliminary Prospectus, the Prospectus or any Issuer Free Writing Prospectus or for additional
information, (iii) of the issuance by the Commission of any stop order suspending the effectiveness
of the Registration Statement or preventing or suspending the use of the Preliminary Prospectus,
the Prospectus or any Issuer Free Writing Prospectus, or the initiation of any proceedings for that
purpose or the threat thereof, pursuant to Section 8A of the Securities Act, (iv) until the end of
such period as the Prospectus is required by law to be delivered (or required to be delivered but
for Rule 172 under the Securities Act) in connection with sales of the Securities by an Underwriter
or dealer, of the happening of any event that in the judgment of the Company requires the Company
to file an amendment or supplement to the Registration Statement and (v) of receipt by the Company,
or any representatives or attorney of the Company, of any other communication from the Commission
relating to the Registration Statement, the Basic Prospectus, the Preliminary Prospectus, the
Prospectus or any Issuer Free Writing Prospectus or the offering of the Securities. If at any time
the Commission shall issue any order suspending the effectiveness of the Registration Statement or
preventing or suspending the use of the Preliminary Prospectus, the Prospectus or any Issuer Free
Writing Prospectus, the Company will make every reasonable effort to obtain the withdrawal of such
order at the earliest possible moment.
(d) If and to the extent not already furnished, the Company will, upon request, furnish to the
Underwriters, without charge, one complete copy of the Registration Statement and of any
post-effective amendment thereto, including financial statements and schedules, and all exhibits
thereto (including any documents filed under the Exchange Act and deemed to be incorporated by
reference into the Prospectus), and will upon request make available to the Underwriters, without
charge, additional copies of the Registration Statement and any post-effective amendment thereto,
including financial statements and schedules but without exhibits and documents incorporated by
reference therein.
(e) The Company will not make any offer relating to the Securities that would constitute an
Issuer Free Writing Prospectus without the prior written consent of the Representatives, which
consent shall be in writing for any Issuer Free Writing Prospectus other than the Final Term Sheet.
11
(f) The Company will, pursuant to reasonable procedures developed in good faith, retain copies
of each Issuer Free Writing Prospectus that is not filed with the Commission in accordance with
Rule 433 under the Securities Act.
(g) The Company will comply with all the provisions of any undertakings contained in the
Registration Statement.
(h) At the Time of Sale, and thereafter from time to time, the Company will deliver to the
Underwriters, without charge, as many copies of the Preliminary Prospectus, the Prospectus, any
Issuer Free Writing Prospectus or any supplement thereto, as the Underwriters may reasonably
request. The Company consents to the use of the Preliminary Prospectus, the Prospectus, any Issuer
Free Writing Prospectus or any amendment or supplement thereto by the Underwriters and by all
dealers to whom the Securities may be sold, both in connection with the offering or sale of the
Securities and for any period of time thereafter during which a prospectus is required by law to be
delivered (or required to be delivered but for Rule 172 under the Securities Act) in connection
therewith. If during such period of time, any event shall occur which in the judgment of the
Company or counsel to the Underwriters should be set forth in the Time of Sale Information and the
Prospectus in order to make any statement therein, in the light of the circumstances under which it
was made when delivered, not misleading, or if it is necessary to supplement the Time of Sale
Information and the Prospectus to comply with law, the Company will forthwith prepare and duly file
with the Commission an appropriate supplement thereto or a document under the Exchange Act deemed
to be incorporated therein, and will deliver to the Underwriters, without charge, such number of
copies thereof as the Underwriters may reasonably request. The Company shall not file any document
under the Exchange Act before the termination of the offering of the Securities by the Underwriters
if such document would be deemed to be incorporated by reference into the Preliminary Prospectus or
the Prospectus, unless a draft thereof shall first have been submitted to the Underwriters within a
reasonable period of time prior to the filing thereof and the Underwriters shall not have objected
thereto in good faith.
(i) The Company will cooperate with the Underwriters and counsel to the Underwriters in
connection with the registration or qualification of the Securities for offer and sale under the
securities or blue sky laws of such United States jurisdictions and similar laws of such foreign
jurisdictions as the Underwriters may request, and will maintain such qualifications in effect so
long as required for the distribution of the Securities; provided, that in no event shall the
Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified
or to take any action which would subject it to general service of process or general taxation in
any jurisdiction where it is not now so subject.
(j) During the period of five years commencing at the Time of Sale, to the extent the Company
is not required to file periodic reports with the Commission pursuant to Sections 13 or 15 of the
Exchange Act, the Company will furnish to the Underwriters, if requested, copies of
such financial statements and other reports and information as the Company may from time to
time distribute generally to the holders of any class of its securities.
(k) The Company will make generally available to holders of its securities as soon as may be
practicable but in no event later than the last day of the fifteenth full calendar month
12
following
the calendar quarter in which the Execution Date falls, an earning statement (which need not be
audited but shall be in reasonable detail) for a period of twelve (12) months ended commencing
after the Time of Sale, within the meaning of and satisfying the provisions of Section 11(a) of the
Securities Act (including Rule 158 thereunder).
(l) Unless otherwise agreed by the parties hereto, whether or not the transactions
contemplated by this Agreement are consummated or this Agreement is terminated, the Company will
pay, or reimburse if paid by the Underwriters, all costs and expenses incident to the performance
of the obligations of the Company under this Agreement, including but not limited to costs and
expenses of or relating to (i) the preparation, printing and filing of the Registration Statement
and exhibits thereto, the Basic Prospectus, the Preliminary Prospectus, the Prospectus, the Time of
Sale Information, any Issuer Free Writing Prospectus and any amendment or supplement to the
Registration Statement, the Preliminary Prospectus, the Prospectus, the Time of Sale Information or
any Issuer Free Writing Prospectus, (ii) the preparation and delivery of certificates representing
the Securities, (iii) the printing of this Agreement, any agreement among underwriters, any dealer
agreements and any underwriters questionnaire, (iv) furnishing (including costs of shipping and
mailing) such copies of the Registration Statement, the Basic Prospectus, the Preliminary
Prospectus, the Prospectus, the Time of Sale Information or any Issuer Free Writing Prospectus and
all amendments and supplements thereto, as may be reasonably requested for use in connection with
the offering and sale of the Securities by the Underwriters or by dealers to whom Securities may be
sold, (v) any filings required to be made by the Underwriters with FINRA, and the fees,
disbursements and other charges of counsel for the Underwriters in connection therewith, (vi) the
registration or qualification of the Securities for offer and sale under the securities or blue sky
laws of such United States jurisdictions and similar laws of such foreign jurisdictions designated
pursuant to Section 4(i) hereof, including the fees, disbursements and other charges of counsel for
the Underwriters in connection therewith, and the preparation and printing of any preliminary,
supplemental and final blue sky memoranda, (vii) counsel to the Company, (viii) the rating of the
Securities by one or more rating agencies, (ix) the Trustee and any agent of the Trustee and the
fees, disbursements and other charges of counsel for the Trustee in connection with the Indenture
and the Securities and (x) the applicable Commission filing fees relating to the Securities within
the time required by Rule 456(b)(1) under the Securities Act without regard to the proviso thereof.
(m) Unless otherwise agreed by the parties, if this Agreement shall be terminated for any
reason by the Company pursuant to any of the provisions hereof (other than pursuant to Section 8
hereof), if for any reason the Company shall be unable to perform its obligations hereunder or if
any condition to the Underwriters obligations hereunder is not fulfilled at or prior to the
Closing Date, the Company will reimburse the Underwriters for all out-of-pocket expenses (including
the fees, disbursements and other charges of counsel for the Underwriters) reasonably incurred by
them in connection herewith.
(n) The Company will not at any time, directly or indirectly, take any action described in
Section 3(y) hereof.
(o) Between the Execution Date and the Closing Date, the Company will not, without the consent
of the Representatives, offer, sell or contract to sell, or otherwise dispose of, by
13
public
offering, or announce the public offering of, any other debt securities of the Company other than
(i) the Securities and (ii) the incurrence of inter-company indebtedness in connection with draws
under the credit facilities of CenturyLink, Inc. or indebtedness through commercial paper
issuances.
(p) If immediately prior to the third anniversary (the
Renewal Deadline
) of the
initial effective date of the Registration Statement, any of the Securities remain unsold by the
Underwriters, prior to the Renewal Deadline, the Company will file, if it has not already done so
and is eligible to do so, a new automatic shelf registration statement relating to the Securities
(either as the registrant or as a co-registrant), in a form satisfactory to the Representatives,
(ii) if the Company is no longer eligible to file an automatic shelf registration statement, prior
to the Renewal Deadline, if it has not already done so, the Company will file a new shelf
registration statement relating to the Securities, in a form satisfactory to the Representatives,
and use its best efforts to cause such registration statement to be declared effective within 180
days after the Renewal Deadline and (iii) the Company will take all other action necessary or
appropriate to permit the public offering and sale of the Securities to continue as contemplated in
the expired registration statement relating to the Securities (references herein to the
Registration Statement shall include such new automatic shelf registration statement or such new
shelf registration statement, as the case may be).
(q) If at any time when the Securities remain unsold by the Underwriters the Company receives
from the Commission a notice pursuant to Rule 401(g)(2) under the Securities Act or otherwise
ceases to be eligible to use the automatic shelf registration statement form, the Company will (i)
promptly notify the Representatives, (ii) promptly file a new registration statement or
post-effective amendment on the proper form relating to the Securities, in a form satisfactory to
the Representatives, (iii) use its best efforts to cause such registration statement or
post-effective amendment to be declared effective, (iv) promptly notify the Representatives of such
effectiveness; and (v) take all other action necessary or appropriate to permit the public offering
and sale of the Securities to continue as contemplated in the registration statement that was the
subject of the Rule 401(g)(2) notice or for which the Company has otherwise become ineligible
(references herein to the Registration Statement shall include such new registration statement or
post-effective amendment, as the case may be).
5.
Agreements of the Underwriters
.
Each Underwriter hereby represents, warrants and agrees to and with the Company that:
(a) It has not and will not use, authorize use of, refer to, or participate in the planning
for use of, any free writing prospectus (as defined in Rule 405 under the Securities Act) (a
Free Writing Prospectus
) other than (i) a Free Writing Prospectus that, solely as a
result of use by such Underwriter, would not trigger an obligation to file such Free Writing
Prospectus with the Commission pursuant to Rule 433, (ii) any Issuer Free Writing Prospectus listed
on Schedule
II to this Agreement or prepared pursuant to Section 3(d) or Section 4(a) above (including any
electronic road show), or (iii) any Free Writing Prospectus prepared by such Underwriter and
approved by the Company in advance in writing.
14
(b) It will, pursuant to reasonable procedures developed in good faith, retain copies of, and
comply with any legending requirements applicable to, each free writing prospectus used or referred
to by it, in accordance with Rule 433 under the Securities Act.
(c) It is not subject to any pending proceeding under Section 8A of the Securities Act with
respect to the offering (and will promptly notify the Company if any such proceeding against it is
initiated prior to the end of such period as the Prospectus is required by law to be delivered (or
required to be delivered but for Rule 172 under the Securities Act) in connection with sales of the
Securities by an Underwriter or dealer).
6.
Conditions of Obligations of the Underwriters
. (a) In addition to the execution
and delivery of the Price Determination Agreement by the Company, the obligations of the
Underwriters shall be subject to the condition that all representations and warranties and other
statements of the Company set forth herein are, at and as of the Closing Date, true and correct,
the condition that the Company shall have performed all of its obligations hereunder theretofore to
be performed, and the following additional conditions, unless any such condition is waived in
writing by the Representatives:
(a) (i) No stop order suspending the effectiveness of the Registration Statement or preventing
or suspending the use of the Preliminary Prospectus, the Prospectus or any Issuer Free Writing
Prospectus shall be in effect and no proceedings for that purpose or pursuant to Section 8A of the
Securities Act shall be pending or threatened by the Commission and no notice of objection of the
Commission to the use of the Registration Statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act shall have been received, (ii) any request for
additional information on the part of the staff of the Commission or any such authorities with
respect to the offering of the Securities shall have been complied with to the satisfaction of the
staff of the Commission or such authorities, (iii) the Company shall have filed the Prospectus
pursuant to Rule 424 under the Securities Act and shall have made all other filings (including,
without limitation, the Final Term Sheet) required by Rule 424 or Rule 433 under the Securities Act
within the time periods required by such rules and (iv) after the Time of Sale, no amendment or
supplement to the Registration Statement, the Preliminary Prospectus, the Prospectus or any Issuer
Free Writing Prospectus shall have been filed unless a copy thereof was first submitted to the
Underwriters and the Representatives did not object thereto in good faith, and the Underwriters
shall have received certificates, dated the Closing Date and signed on behalf of the Company by the
Chief Executive Officer of the Company and the Chief Financial Officer of the Company (who may, as
to proceedings threatened, rely upon their information and belief), to the effect of clauses (i)
and (ii).
(b) Since the respective dates as of which information is given in the Registration Statement,
the Time of Sale Information and the Prospectus (excluding any amendment or supplement thereto) (i)
there shall not have been any change in the capital stock of the Company
or any of its subsidiaries, any change in the face amount of consolidated long-term debt for
borrowed money owed by the Company and its subsidiaries (except for changes to long-term debt
relating to real estate notes entered into in the ordinary course consistent with past practice) or
any change, or any development involving a prospective change, in or affecting the general affairs,
management, financial position, stockholders equity or results of operations of the Company and
its subsidiaries, otherwise than as set forth or contemplated in the Registration
15
Statement, the
Time of Sale Information and the Prospectus and (ii) the Company shall not have sustained any loss
or interference with its business or properties from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or any court or governmental action,
order or decree, otherwise than as set forth or contemplated in the Registration Statement, the
Time of Sale Information and the Prospectus, the effect of which any such case described in clause
(i) or (ii) is, in the reasonable judgment of the Representatives, so material and adverse as to
make it impracticable or inadvisable to proceed with the public offering or the delivery of the
Securities on the terms and in the manner contemplated in the Time of Sale Information and the
Prospectus.
(c) On or after the date hereof there shall not have occurred any of the following: (i) a
suspension or material limitation in trading in securities generally on the New York Stock Exchange
(the
NYSE
); (ii) a suspension or material limitation in trading in the Companys
securities by the NYSE; (iii) a general moratorium on commercial banking activities declared by
Federal or New York State authorities or a material disruption in commercial banking or securities
settlement or clearance services in the United States; (iv) any material adverse change in the
financial markets in the United States or elsewhere; or (v) the outbreak or escalation of
hostilities or other international or national calamity or crisis, if the effect of any such event
specified in clause (iv) or (v), in the Representatives reasonable judgment, makes it
impracticable or inadvisable to proceed with the public offering or the delivery of the Securities
on the terms and in the manner contemplated in the Time of Sale Information and the Prospectus.
(d) On or after the date hereof (i) no downgrading shall have occurred in the rating accorded
the Companys debt securities or preferred stock (if any) by any nationally recognized statistical
rating organization, as that term is defined in Section 3(a)(62) of the Exchange Act, and (ii) no
such organization shall have publicly announced that it has under surveillance or review, with
possible negative implications, its rating of any of the Companys debt securities or preferred
stock (if any).
(e) At the Closing Date, the Securities shall have at least the ratings specified in the Time
of Sale Information, and the Company shall have delivered, to the extent available, to the
Representatives a letter, dated the Closing Date, from each relevant rating agency, or other
evidence reasonably satisfactory to the Representatives, confirming that the Securities have been
assigned such ratings.
(f) Since the respective dates as of which information is given in the Registration Statement
and the Time of Sale Information, there shall have been no litigation or other proceeding
instituted against the Company or any of its officers or directors in their capacities as such,
before or by any federal, state or local court, commission, regulatory body, administrative agency
or other governmental body, domestic or foreign, in which litigation or proceeding an unfavorable
ruling, decision or finding would have a Material Adverse Effect.
(g) On the Closing Date, the Underwriters shall have received an opinion, dated the Closing
Date, and satisfactory in form and substance to counsel for the Underwriters, from Margaret
McCandless, Associate General Counsel of the Company, and from Jones, Walker, Waechter, Poitevent,
Carrère & Denègre, L.L.P., special counsel to the Company, to the effect set forth in Exhibit B and
Exhibit C hereto, respectively.
16
(h) On the Closing Date, the Underwriters shall have received an opinion, dated the Closing
Date, from Pillsbury Winthrop Shaw Pittman LLP, counsel for the Underwriters, with respect to such
matters as the Underwriters may reasonably require. Such counsel may state that, insofar as such
opinion involves factual matters, they have relied, to the extent they deem proper, upon
certificates of officers of the Company and its subsidiaries, and certificates of public officials.
(i) On the date hereof and at the Closing Date, KPMG, who has audited certain of the financial
statements of the Company and its subsidiaries, incorporated by reference in the Registration
Statement, the Time of Sale Information and the Prospectus, shall have furnished to the
Underwriters a letter or letters, dated the respective dates of delivery thereof, in form and
substance satisfactory to the Underwriters, with respect to such financial statements of the
Company and its subsidiaries.
(j) At the Closing Date, there shall be furnished to the Underwriters a certificate, dated the
date of its delivery, signed on behalf of the Company by each of the Chief Executive Officer and
the Chief Financial Officer of the Company, in form and substance satisfactory to the Underwriters,
to the effect that:
(i) Each signer of such certificate has carefully examined the Registration Statement, the
Time of Sale Information and the Prospectus and (A) the Registration Statement, as of the Effective
Date (including any Rule 430 Information), is true and correct in all material respects and does
not omit to state a material fact required to be stated therein or necessary in order to make the
statements therein not untrue or misleading, (B) the Time of Sale Information, at the Time of Sale,
is true and correct in all material respects and does not omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading, (C) the Prospectus, as of its date and as of the Closing Date, is true and
correct in all material respects and does not omit to state a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they were made, not
untrue or misleading (it being understood that to the extent a statement in the Registration
Statement, Prospectus or Time of Sale Information, including any documents deemed to be
incorporated by reference therein, refers to and speaks as of a specific date, each signer of such
certificate only represents with respect to such statement that it was true and correct in all
material respects as of such date) and (D) since the Time of Sale, no event has occurred as a
result of which it is necessary to supplement the Time of Sale Information or the Prospectus in
order to make the statements therein, in light of the circumstances under which they were made, not
untrue or misleading in any material respect and there has been no document required to be filed
under the Exchange Act that upon such filing would be deemed to be incorporated by reference into
the Prospectus that has not been so filed;
(ii) Each of the representations and warranties of the Company contained in this Agreement
were, when originally made, and are, at the time such certificate is delivered, true and correct;
and
(iii) Each of the covenants required herein to be performed by the Company on or prior to the
delivery of such certificate has been duly, timely and fully performed and each
17
condition herein
required to be complied with by the Company on or prior to the date of such certificate has been
duly, timely and fully complied with or satisfied.
(k) The Company shall have furnished to the Underwriters such certificates, in addition to
those specifically mentioned herein, as the Underwriters may have reasonably requested as to the
accuracy and completeness at the Closing Date of any statement in the Registration Statement, the
Prospectus or the Time of Sale Information, or any documents filed under the Exchange Act and
deemed to be incorporated by reference into the Prospectus or the Time of Sale Information as to
the accuracy at the Closing Date, of the representations and warranties of the Company herein, as
to the performance by the Company of its obligations hereunder, or as to the fulfillment of the
conditions concurrent and precedent to the obligations of the Underwriters hereunder.
7.
Indemnification
. (a) The Company will indemnify and hold harmless each
Underwriter against any losses, claims, damages or liabilities, joint or several, to which such
Underwriter may become subject, under the Securities Act or otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon, (i)
any untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement or caused by any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, or (ii) any untrue
statement or alleged untrue statement of a material fact contained in the Preliminary Prospectus,
the Prospectus and any other prospectus relating to the Securities (or any amendment or supplement
thereto), any Issuer Free Writing Prospectus or any Time of Sale Information, or caused by any
omission or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein, in light of the circumstances in which they were made,
not misleading, and will reimburse each Underwriter for any legal or other expenses reasonably
incurred by such Underwriter in connection with investigating or defending any such action or claim
as such expenses are incurred;
provided
,
however
, that the Company shall not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement or omission or alleged omission made in the
Registration Statement, the Basic Prospectus, the Preliminary Prospectus, the Prospectus, and any
other prospectus relating to the Securities, any Issuer Free Writing Prospectus or any Time of Sale
Information, or any such amendment or supplement, in reliance upon and in conformity with
information furnished to the Company in writing by any Underwriter through the Representatives
expressly for use therein.
(b) Each Underwriter, severally, but not jointly, will indemnify and hold harmless the Company
against any losses, claims, damages or liabilities to which the Company may become subject, under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an untrue statement
or alleged untrue statement of a material fact contained in the Registration Statement, the
Preliminary Prospectus, the Prospectus, and any other prospectus relating to the Securities, any
Issuer Free Writing Prospectus or any Time of Sale Information, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the Registration
18
Statement,
the Preliminary Prospectus, the Prospectus, and any other prospectus relating to the Securities,
any Issuer Free Writing Prospectus or any Time of Sale Information, or any such amendment or
supplement, in reliance upon and in conformity with information furnished to the Company in writing
by any Underwriter through the Representatives expressly for use therein; and will reimburse the
Company for any legal or other expenses reasonably incurred by the Company in connection with
investigating or defending any such action or claim as such expenses are incurred.
(c) Promptly after receipt by an indemnified party under subsection (a) or (b) above of notice
of the commencement of any action, such indemnified party shall, if a claim in respect thereof is
to be made against the indemnifying party under such subsection, notify the indemnifying party in
writing of the commencement thereof; but the omission so to notify the indemnifying party shall not
relieve it from any liability which it may have to any indemnified party otherwise than under such
subsection. In case any such action shall be brought against any indemnified party and it shall
notify the indemnifying party of the commencement thereof, the indemnifying party shall be entitled
to participate therein and, to the extent that it shall wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel satisfactory to such
indemnified party, and, after notice from the indemnifying party to such indemnified party of its
election so to assume the defense thereof, the indemnifying party shall not be liable to such
indemnified party under such subsection for any legal expenses of other counsel or any other
expenses, in each case subsequently incurred by such indemnified party, in connection with the
defense thereof other than reasonable costs of investigation unless (i) the Company and such
indemnified party shall have mutually agreed to the employment of such counsel, or (ii) the named
parties to any such action (including any impleaded parties) include both such indemnified party
and the Company and such indemnified party shall have been advised by such counsel that a conflict
of interest between the Company and such indemnified party may arise and for this reason it is not
desirable for the same counsel to represent both the indemnifying party and also the indemnified
party (it being understood, however, that the Company shall not, in connection with any one such
action or separate but substantially similar or related actions in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the reasonable fees and
expenses of more than one separate firm of attorneys for all such indemnified parties), in which
case the fees and expenses of such counsel shall be at the expense of the Company. No
indemnifying party shall, without the written consent of the indemnified party, effect the
settlement or compromise of, or consent to the entry of any judgment with respect to, any pending
or threatened action or claim in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified party is an actual or potential party to such action or
claim) unless such settlement, compromise or judgment (i) includes an unconditional release of the
indemnified party from all
liability arising out of such action or claim and (ii) does not include any statement as to,
or an admission of, fault, culpability or a failure to act, by or on behalf of any indemnified
party.
(d) If the indemnification provided for in this Section 7 is unavailable to or insufficient to
hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses,
claims, damages or liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such indemnified party as a
result of such losses, claims, damages or liabilities (or actions in respect thereof) in such
proportion as is appropriate to reflect the relative benefits received by the Company on the
19
one
hand and the Underwriters of the Securities on the other from the offering of the Securities to
which such loss, claim, damage or liability (or action in respect thereof) relates. If, however,
the allocation provided by the immediately preceding sentence is not permitted by applicable law or
if the indemnified party failed to give the notice required under subsection (c) above and the
indemnifying party has been prejudiced in any material respect by such failure, then each
indemnifying party shall contribute to such amount paid or payable by such indemnified party in
such proportion as is appropriate to reflect not only such relative benefits but also the relative
fault of the Company on the one hand and the Underwriters of the Securities on the other in
connection with the statements or omissions which resulted in such losses, claims, damages or
liabilities (or actions in respect thereof), as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and such
Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds
from such offering (before deducting expenses) received by the Company bear to the total
underwriting discounts and commissions received by such Underwriters. The relative fault shall be
determined by reference to, among other things, whether the untrue or alleged untrue statement of a
material fact or the omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or such Underwriters on the other and the parties relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or
omission. The Company and the Underwriters agree that it would not be just and equitable if
contributions pursuant to this subsection (d) were determined by
pro rata
allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation
which does not take account of the equitable considerations referred to above in this subsection
(d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages
or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be
deemed to include any legal or other expenses reasonably incurred by such indemnified party in
connection with investigating or defending any such action or claim. Notwithstanding the
provisions of this subsection (d), no Underwriter shall be required to contribute any amount in
excess of the amount by which the total price at which the applicable Securities underwritten by it
and distributed to the public were offered to the public exceeds the amount of any damages which
such Underwriter has otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation. The obligations of the
Underwriters of Securities in this subsection (d) to contribute are several in proportion to their
respective underwriting obligations with respect to such Securities and not joint.
(e) The obligations of the Company under this Section 7 shall be in addition to any liability
which the Company may otherwise have and shall extend, upon the same terms and conditions, to each
officer, director, employee and agent of any Underwriter and to each person, if any, who controls
any Underwriter within the meaning of the Securities Act; and the obligations of the Underwriters
under this Section 7 shall be in addition to any liability which the respective Underwriters may
otherwise have and shall extend, upon the same terms and conditions, to each officer, director,
employee and agent of the Company and to each person, if any, who controls the Company within the
meaning of the Securities Act.
20
8.
Substitution of Underwriters
. If any one or more of the Underwriters shall fail or
refuse at the Closing Date to purchase any of the Securities which it or they have agreed to
purchase hereunder, and the aggregate principal amount of Securities which such defaulting
Underwriter or Underwriters agreed but failed or refused to purchase is not more than one-tenth of
the aggregate principal amount of Securities, the other Underwriters shall be obligated, severally,
to purchase the Securities which such defaulting Underwriter or Underwriters agreed but failed or
refused to purchase, in the proportions which the principal amount of Securities which they have
respectively agreed to purchase pursuant to Section 1 hereof bears to the aggregate principal
amount of Securities which all such non-defaulting Underwriters have so agreed to purchase, or in
such other proportions as such non-defaulting Underwriters may specify; provided that in no event
shall the maximum principal amount of Securities which any Underwriter has become obligated to
purchase pursuant to Section 1 hereof be increased pursuant to this Section 8 by more than
one-ninth of the principal amount of Securities agreed to be purchased by such Underwriter without
the prior written consent of such Underwriter. If any Underwriter or Underwriters shall fail or
refuse at the Closing Date to purchase any Securities and the aggregate principal amount of
Securities which such defaulting Underwriter or Underwriters agreed but failed or refused to
purchase exceeds one-tenth of the aggregate principal amount of the Securities and arrangements
satisfactory to any non-defaulting Underwriter and the Company for the purchase of such Securities
are not made within 48 hours after such default, this Agreement will terminate without liability on
the part of any non-defaulting Underwriter or the Company for the purchase or sale of any
Securities under this Agreement. In any such case either the Underwriters or the Company shall
have the right to postpone the Closing Date, but in no event for longer than seven days, in order
that the required changes, if any, in the Registration Statement and in the Prospectus or in any
other documents or arrangements may be effected. Any action taken pursuant to this Section 8 shall
not relieve any defaulting Underwriter from liability in respect of any default of such Underwriter
under this Agreement.
9.
Termination
. Until the Closing Date, this Agreement may be terminated by the
Representatives on behalf of the Underwriters by giving notice as hereinafter provided to the
Company if (i) the Company will have failed, refused or been unable, at or prior to the Closing
Date, to perform any agreement on its part to be performed hereunder or (ii) any condition to the
Underwriters obligations hereunder is not fulfilled at or prior to the Closing Date. Any
termination of this Agreement pursuant to this Section 9 will be without liability on the part of
the Company or any Underwriter, except as otherwise provided in Sections 4(l), 4(m) and 7 hereof.
10.
Miscellaneous
. Notice given pursuant to any of the provisions of this Agreement shall be in writing and, unless
otherwise specified, shall be mailed or delivered (a) if to the Company, at the office of the
Company, 100 CenturyLink Drive, Monroe, Louisiana 71203, Attention: Stacey W. Goff, Esq.,
Executive Vice President and General Counsel or (b) if to the Underwriters, c/o the
Representatives, to Citigroup Global Markets Inc., 388 Greenwich Street, New York, New York 10013,
Attention: General Counsel and to J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New
York 10179, Attention: High Grade Syndicate Desk 3
rd
Floor. Any such notice shall be
effective only upon receipt. Any notice under this Section 10 may be made by telephone, but if so
made shall be subsequently confirmed in writing.
21
The respective indemnities, agreements, representations, warranties and other statements of
the Company and the several Underwriters, as set forth in this Agreement or made by or on behalf of
them, respectively, pursuant to this Agreement, shall remain in full force and effect, regardless
of any investigation (or any statement as to the results thereof) made by or on behalf of any
Underwriter or any officer, director, employee, agent or controlling person of any Underwriter, or
the Company or any officer, director, employee, agent or controlling person of the Company, and
shall survive delivery of and payment for the Securities.
This Agreement has been and is made solely for the benefit of the several Underwriters and the
Company and of the controlling persons, directors, officers, employees and agents referred to in
Section 7, and their respective successors and assigns, and no other person shall acquire or have
any right under or by virtue of this Agreement. The term successors and assigns as used in this
Agreement shall not include a purchaser, as such purchaser, of Securities from any of the several
Underwriters.
THE RIGHTS AND DUTIES OF THE PARTIES TO THIS UNDERWRITING AGREEMENT SHALL, PURSUANT TO NEW
YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ANY CHOICE OF LAW PRINCIPLES THAT MIGHT CALL FOR THE APPLICATION OF THE LAW OF
ANY OTHER JURISDICTION.
This Agreement may be signed in two or more counterparts with the same effect as if the
signatures thereto and hereto were upon the same instrument.
IN CASE ANY PROVISION IN THIS AGREEMENT SHALL BE INVALID, ILLEGAL OR UNENFORCEABLE, THE
VALIDITY, LEGALITY AND ENFORCEABILITY OF THE REMAINING PROVISIONS SHALL NOT IN ANY WAY BE AFFECTED
OR IMPAIRED THEREBY.
The Company and the Underwriters each hereby irrevocably waive any right they may have to
trial by jury in respect of any claim based upon or arising out of this Agreement or the
transactions contemplated hereby.
11.
No Fiduciary Duty
. The Company acknowledges and agrees that the Underwriters named in
this Agreement are acting solely in the capacity of an arms length contractual counterparty to the
Company with respect to any offering of Securities contemplated hereby (including in connection
with determining the terms of the offering) and not as a fiduciary to, or an agent of,
the Company or any other person. Additionally, no such Underwriter is advising the Company or
any of its affiliates as to any legal, tax, investment, accounting or regulatory matters in any
jurisdiction. The Company shall consult with its own advisors concerning such matters and shall be
responsible for making its own independent investigation and appraisal of the transactions
contemplated hereby, and such Underwriters shall have no responsibility or liability to the Company
with respect thereto. Any review by such Underwriters named in this Agreement of the Company, the
transactions contemplated thereby or other matters relating to such transactions will be performed
solely for the benefit of the Underwriters and shall not be on behalf of the Company.
22
Please confirm that the foregoing correctly sets forth the agreement between the Company
and the several Underwriters.
|
|
|
|
|
|
Very truly yours,
QWEST CORPORATION
|
|
|
By:
|
/s/ G. Clay Bailey
|
|
|
|
Name:
|
G. Clay Bailey
|
|
|
|
Title:
|
Senior Vice President and Treasurer
|
|
|
Confirmed as of the date first above mentioned:
Citigroup Global Markets Inc.
J.P. Morgan Securities LLC
Deutsche Bank Securities Inc.
Mitsubishi UFJ Securities (USA), Inc.
SunTrust Robinson Humphrey, Inc.
BNY Mellon Capital Markets, LLC
Fifth Third Securities, Inc.
Mizuho Securities USA Inc.
U.S. Bancorp Investments, Inc.
By: Citigroup Global Markets Inc.
|
|
|
|
|
|
By:
|
/s/ Brian D. Bednarski
|
|
|
|
Name:
|
Brian D. Bednarski
|
|
|
|
Title:
|
Managing Director
|
|
|
|
|
|
By:
|
J.P. Morgan Securities LLC
|
|
|
|
|
|
|
By:
|
/s/ Stephen L. Sheiner
|
|
|
|
Name:
|
Stephen L. Sheiner
|
|
|
|
Title:
|
Executive Director
|
|
SCHEDULE I
QWEST CORPORATION
|
|
|
|
|
|
|
Principal Amount of the
|
|
Name of Underwriter
|
|
Securities
|
|
Citigroup Global Markets Inc.
|
|
$
|
270,750,000
|
|
J.P. Morgan Securities LLC
|
|
|
270,750,000
|
|
Deutsche Bank Securities Inc.
|
|
|
114,000,000
|
|
Mitsubishi UFJ Securities (USA), Inc.
|
|
|
114,000,000
|
|
SunTrust Robinson Humphrey, Inc.
|
|
|
114,000,000
|
|
BNY Mellon Capital Markets, LLC
|
|
|
16,625,000
|
|
Fifth Third Securities, Inc.
|
|
|
16,625,000
|
|
Mizuho Securities USA Inc.
|
|
|
16,625,000
|
|
U.S. Bancorp Investments, Inc.
|
|
|
16,625,000
|
|
|
|
|
|
Total
|
|
$
|
950,000,000
|
|
Schedule I
SCHEDULE II
|
|
Final Term Sheet relating to the Securities, dated September 27, 2011
|
Schedule II
EXHIBIT A
QWEST CORPORATION
PRICE DETERMINATION AGREEMENT
September 27, 2011
Citigroup Global Markets Inc.
J.P. Morgan Securities LLC
Deutsche Bank Securities Inc.
Mitsubishi UFJ Securities (USA), Inc.
SunTrust Robinson Humphrey, Inc.
BNY Mellon Capital Markets, LLC
Fifth Third Securities, Inc.
Mizuho Securities USA Inc.
U.S. Bancorp Investments, Inc.
|
|
|
c/o
|
|
Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
|
|
|
|
|
|
J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
|
Ladies and Gentlemen:
Reference is made to the Underwriting Agreement, dated September 27, 2011 (the
Underwriting Agreement
), between Qwest Corporation, a Colorado corporation (the
Company
), and the several Underwriters named in Schedule I thereto (the
Underwriters
). The Underwriting Agreement provides for the sale to the Underwriters, and
the purchase by the Underwriters, severally and not jointly, from the Company, subject to the terms
and conditions set forth therein, of an aggregate of $950,000,000 principal amount of the Companys
6.75% Notes due 2021 (the
Securities
) to be issued pursuant to an Indenture dated as of
October 15, 1999, between the Company (formerly known as US WEST Communications, Inc.) and Bank of
New York Trust Company, National Association (as successor in interest to Bank One Trust Company),
as amended and supplemented to the date hereof, and as will be further supplemented by the Ninth
Supplemental Indenture between the Company and U.S. Bank National Association, as trustee, to be
dated as of October 4, 2011 relating to the Securities (as defined herein). This Agreement is the
Price Determination Agreement referred to in the Underwriting Agreement.
For all purposes of the Underwriting Agreement,
Time of Sale
means 2:30 p.m. (New
York City time) on the date of this Price Determination Agreement.
Exhibit A-1
Pursuant to Section 1(b) of the Underwriting Agreement, the undersigned agree with the several
Underwriters that the purchase price for the Securities to be paid by the several Underwriters
shall be 97.531% of the aggregate principal amount of the Securities set forth opposite the names
of the Underwriters in Schedule I attached thereto.
The Company represents and warrants to the several Underwriters that the representations and
warranties of the Company set forth in Section 3 of the Underwriting Agreement are accurate as
though expressly made at and as of the date hereof.
THE RIGHTS AND DUTIES OF THE PARTIES TO THIS PRICE DETERMINATION AGREEMENT SHALL, PURSUANT TO
NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401, BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK
WITHOUT REGARD TO ANY CHOICE OF LAW PRINCIPLES THAT MIGHT CALL FOR THE APPLICATION OF THE LAW OF
ANY OTHER JURISDICTION.
This Price Determination Agreement may be signed in two or more counterparts with the same
effect as if the signatures thereto and hereto were upon the same instrument.
Exhibit A-2
If the foregoing is in accordance with your understanding of the agreement among the
several Underwriters and the Company, please sign and return to the Company a counterpart hereof,
whereupon this instrument along with all counterparts and together with the Underwriting Agreement
shall be a binding agreement among the several Underwriters and the Company in accordance with its
terms and the terms of the Underwriting Agreement.
|
|
|
|
|
|
Very truly yours,
QWEST CORPORATION
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
|
|
Title:
|
|
|
|
Confirmed as of the date first above mentioned:
Citigroup Global Markets Inc.
J.P. Morgan Securities LLC
Deutsche Bank Securities Inc.
Mitsubishi UFJ Securities (USA), Inc.
SunTrust Robinson Humphrey, Inc.
BNY Mellon Capital Markets, LLC
Fifth Third Securities, Inc.
Mizuho Securities USA Inc.
U.S. Bancorp Investments, Inc.
By: Citigroup Global Markets Inc.
|
|
|
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
|
|
Title:
|
|
|
|
|
|
|
By:
|
J.P. Morgan Securities LLC
|
|
|
|
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
|
|
Title:
|
|
|
Exhibit A-3
EXHIBIT B
Form of Opinion of Margaret McCandless,
Associate General Counsel of Qwest Corporation
1. The Company is a corporation duly incorporated, validly existing and in good standing under
the laws of its jurisdiction of incorporation.
2. The Company has full corporate power and corporate authority to own or lease all the assets
owned or leased by it and, to the best of my knowledge, has all necessary and material
authorizations, approvals, orders, licenses, certificates, franchises, and permits of and from all
governmental regulatory officials and bodies to own its properties and to lawfully conduct its
business as described in the Registration Statement, the Time of Sale Information and the
Prospectus.
3. The execution and delivery by the Company of the Underwriting Agreement and the Indenture
and the performance by the Company of the transactions contemplated thereby (including the issuance
and sale of the Securities) will not (i) result in a violation of any of the terms or provisions of
the articles of incorporation or by-laws, each as amended, of the Company or (ii) violate or
conflict with any franchise or any judgment, ruling, decree, order, statute (including the
Communications Act of 1934), rule or regulation of any court or other governmental agency or body
(including the Federal Communications Commission) known to me and applicable to the business or
properties of the Company
1
or (iii) result in the creation or imposition of any lien,
charge or encumbrance upon any of the assets of the Company pursuant to the terms or provisions of,
or result in a breach or violation of any of the terms or provisions of, or constitute a default
under, or give any other party a right to terminate any of its obligations under, or result in the
acceleration of any obligation under, any indenture, mortgage, deed of trust, voting trust
agreement, loan agreement, bond, debenture, note agreement or other evidence of indebtedness,
lease, contract or other agreement or instrument to which the Company is a party or by which the
Company or any of its properties is or are bound or affected (the applicable agreements), other
than with respect to this clause (iii) any breaches, violations, defaults, terminations or
accelerations with respect to any applicable agreement that will not, or are not likely to, have a
Material Adverse Effect.
4. Except as set forth in the Registration Statement, the Time of Sale Information and the
Prospectus, to the best of my knowledge, there are no actions, suits or proceedings pending or
threatened against the Company or any of its officers, in their capacity as such, before or by any
United States federal or state court, commission, regulatory body, administrative agency or other
governmental body, domestic or foreign, which in my opinion is likely to have a Material Adverse
Effect.
|
|
|
1
|
|
This opinion covers each of the states in the
Companys 14-state local service area (which includes Arizona, Colorado, Idaho,
Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South
Dakota, Utah, Washington and Wyoming).
|
Exhibit B-1
5. The Company has taken all corporate action necessary to authorize the execution and
delivery of the Securities and has duly executed and delivered the Securities. The Securities,
when duly authenticated in accordance with the terms of the Indenture and assuming due payment by
the Underwriters in accordance with the Underwriting Agreement, will entitle their holders to the
benefits provided by the Indenture and will constitute valid and binding obligations of the Company
enforceable against the Company in accordance with their respective terms, except (i) that the
enforcement thereof may be subject to bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or other similar laws, now or hereafter in effect, relating to creditors
rights generally, (ii) the enforceability thereof is subject to general principles of equity
(regardless of whether such enforceability is considered in a proceeding at law or in equity) and
that the remedy of specific performance and injunctive and other forms of equitable relief may be
subject to equitable defenses and to the discretion of the court before which any proceeding
therefor may be brought and (iii) certain provisions contained in the Indenture relating to
remedies may be limited by public policy, equitable principles or other provisions of applicable
laws, rules, regulations, court decisions or constitutional requirements, but in my judgment the
matters in this clause (iii) do not result in the remedies that remain available being inadequate
for the enforcement of the Indenture and the Securities.
6. No consent, approval, authorization or order of, or filing, registration, qualification or
declaration with, any court or United States federal, state or local governmental agency or body
(including the Federal Communications Commission) is required for (i) the execution, delivery and
performance by the Company of the Underwriting Agreement, the Securities or the Indenture by the
Company, (ii) the authorization, offer, issuance, sale or delivery of the Securities by the Company
or (iii) the consummation by the Company of the transactions on its part contemplated by the
Underwriting Agreement and the Indenture, except such as may have been previously obtained under
the Securities Act, the Exchange Act or the Trust Indenture Act and such as may be required under
foreign or state securities or blue sky laws and the rules and regulations promulgated thereunder
or the rules of FINRA in connection with the purchase and distribution of the Securities by the
Underwriters
2
.
7. The Company (i) has full corporate power and corporate authority to enter into the
Underwriting Agreement and the Indenture, (ii) has taken all corporate action necessary to
authorize the execution, delivery and performance of the Underwriting Agreement and the Indenture
and (iii) has duly executed and delivered the Underwriting Agreement and the Indenture.
8. The statements in the Companys Quarterly Reports on Form 10-Q for the quarters ended March
31, 2011 and June 30, 2011 under the heading Risk FactorsRisks Relating to Legal and Regulatory
MattersWe operate in a highly regulated industry, and are therefore exposed to restrictions on
our manner of doing business and a variety of claims relating to such regulation, and in the
Companys Annual Report on Form 10-K for the year ended December 31, 2010 under the caption
BusinessRegulation, insofar as such statements purport to summarize applicable provisions of
the Communications Act of 1934 and the rules
|
|
|
2
|
|
This opinion covers each of the states in the
Companys 14-state local service area (which includes Arizona, Colorado, Idaho,
Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South
Dakota, Utah, Washington and Wyoming).
|
Exhibit B-2
and regulations of the Federal Communications Commission, are accurate summaries in all
material respects of the provisions purported to be summarized.
I have participated in the preparation of the Registration Statement, the Time of Sale
Information and the Prospectus. Although I have not verified and am not opining upon or assuming
any responsibility for the accuracy or completeness of the information contained in the
Registration Statement, the Time of Sale Information and the Prospectus, on the basis of my
participation in the preparation of the Registration Statement, the Time of Sale Information and
the Prospectus and my discussions with certain officers and employees of the Company, certain of
its legal counsel, its independent registered public accountants and your representatives and
counsel, nothing has come to my attention which would lead me to believe that the Registration
Statement, as of the Effective Date (including any Rule 430 Information), contained any untrue
statement of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, that the Time of Sale Information, at the
Time of Sale, contained any untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were
made, not misleading or that the Prospectus or any supplement thereto, as of its date and as of the
date of this opinion, contained or contains any untrue statement of a material fact or omitted or
omits to state a material fact necessary in order to make the statements therein, in the light of
the circumstances in which they were made, not misleading (except that I express no opinion with
respect to financial statements, schedules and other financial, statistical or accounting data
included in the Registration Statement, the Time of Sale Information or the Prospectus (or
incorporated by reference therein) or the Statement of Eligibility under the Trust Indenture Act of
the Trustee on Form T-1).
Exhibit B-3
EXHIBIT C
Form of Opinion of
Jones, Walker, Waechter, Poitevent, Carrère & Denègre, L.L.P
1. (i) As of the date the Company filed its Annual Report on Form 10-K for the year ended
December 31, 2010 (the
10-K Date
), the Registration Statement, as of the Time of Sale,
the Time of Sale Information, and, as of its date, the Prospectus (and any supplement thereto),
including each document incorporated or deemed to be incorporated by reference therein, as of the
time such documents were filed, complied in all material respects as to form with the requirements
of the Securities Act, the Exchange Act and the Trust Indenture Act and (ii) at the 10-K Date, the
Indenture complied in all material respects as to form with the Trust Indenture Act and the
Indenture has been duly qualified under the Trust Indenture Act (except that we express no opinion
as to (a) financial statements, schedules and other financial or statistical data contained in the
Registration Statement, the Time of Sale Information or the Prospectus (or incorporated by
reference therein) and (b) the Statement of Eligibility under the Trust Indenture Act on Form T-1
(the Form T-1) contained in, made a part of or incorporated by reference in the Registration
Statement).
2. The Registration Statement became effective upon filing with the Commission under the
Securities Act and, to the best of our knowledge, no order suspending the effectiveness of the
Registration Statement has been issued and no proceeding for that purpose or pursuant to Section 8A
of the Securities Act against the Company or in connection with the offering has been instituted or
is threatened or pending and, to the best of our knowledge, no notice of objection of the
Commission to the use of the Registration Statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act shall have been received.
3. No consent, approval, authorization or order of, or filing, registration, qualification or
declaration with, any court or United States federal governmental agency or body is required for
(i) the execution, delivery and performance by the Company of the Underwriting Agreement, the
Securities or the Indenture by the Company, (ii) the authorization, offer, issuance, sale or
delivery of the Securities by the Company or (iii) the consummation by the Company of the
transactions on its part contemplated by the Underwriting Agreement and the Indenture, except such
as may have been previously obtained under the Securities Act, the Exchange Act or the Trust
Indenture Act or the New York Stock Exchange Listed Company Manual and such as may be required
under the rules of FINRA in connection with the purchase and distribution of the Securities by the
Underwriters.
4. The statements under the headings Description of the Notes and Material United States
Federal Income Tax Consequences in the Time of Sale Information and the Prospectus are accurate in
all material respects and, insofar as such description contains statements constituting a summary
of the legal matters or documents referred to therein, such statements fairly summarize the
information referred to therein.
5. Except as set forth in the Registration Statement, the Time of Sale Information and the
Prospectus, to the best of our knowledge, there are no actions, suits or proceedings pending or
threatened against the Company or any of the Subsidiaries or any of their respective
Exhibit C-1
officers in their capacity as such, before or by any United States federal court, commission,
regulatory body, administrative agency or other governmental body, domestic or foreign, which in
our opinion is likely to have a Material Adverse Effect.
6. The Company is not, and after giving effect to the issuance and sale of the Securities and
the application of the proceeds thereof, will not be, an investment company or an affiliated
person of, or promoter or principal underwriter for, an investment company, as such terms
are defined in the Investment Company Act of 1940, as amended.
7. To the best of our knowledge, the issue and sale of the Securities and the execution,
delivery and performance by the Company of the Underwriting Agreement and the Indenture and the
consummation by the Company of the transactions contemplated thereby will not violate or conflict
with any statute, rule or regulation of any United States court or governmental agency or body
known to us and applicable to the business or properties of the Company, except where such
violation or conflict would not have a Material Adverse Effect.
Other than with respect to the opinion expressed in paragraph 4 above, we have not ourselves
verified the accuracy, completeness or fairness of the information included in the Registration
Statement, the Time of Sale Information and the Prospectus. We have generally reviewed and
discussed such information with certain officers and employees of the Company, certain of its legal
counsel and its independent registered public accountants and with the Underwriters and their
counsel. On the basis of such review and discussion (relying as to materiality upon the statements
of the officers and other representatives of the Company, although nothing has come to our
attention that would lead us to believe that it is unreasonable for us or you to so rely thereon),
but without assuming any responsibility for, or independently verifying, any information other than
as stated above, nothing has come to our attention that would lead us to believe that the
Registration Statement, as of the Effective Date (including any Rule 430 Information), contained
any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, that the Time of Sale
Information, at the Time of Sale, contained any untrue statement of a material fact or omitted to
state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, or that the Prospectus or any supplement thereto, as of
its date and as of the date of this letter, contained or contains any untrue statement of a
material fact or omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances in which they were made, not misleading
(except that we express no belief with respect to (i) financial statements and notes thereto,
related schedules and any other financial data included in the Registration Statement, the Time of
Sale Information and the Prospectus, (ii) the Form T-1 or (iii) statements or omissions based upon
information furnished to the Company in writing by any Underwriter through the Representatives
expressly for use therein).
As special counsel to the Company, we do not as a matter of course review or pass on all
agreements or proceedings to which the Company or its subsidiaries have become parties nor have we
done so in connection with this opinion. Accordingly, whenever any statement in this letter is
qualified by the phrase to the best of our knowledge or known to us or a phrase of similar
import, such phrase is intended to mean the actual knowledge of information by the lawyers in our
firm who have been principally involved in negotiating the subject transaction and
Exhibit C-2
preparing the pertinent documents and any other lawyers in our firm devoting substantive
attention to matters for the Company, having substantial responsibility for managing the client
relationship with the Company or overseeing the firms provision of securities law advice to the
Company, but does not include the information that might be revealed if there were to be undertaken
a canvass of all lawyers in our firm, a general search of our files, a review of all of the
Companys contacts or any other type of independent investigation. Any certificate or
representation obtained by us from the officers of the Company in connection with this opinion has
been relied upon by us as to factual matters without independent verification, but nothing has come
to our attention that would lead us to believe that it is unreasonable for us or you to rely
thereon.
In rendering the foregoing opinion, counsel may rely, to the extent they deem such reliance
proper, on the opinions (in form and substance reasonably satisfactory to Underwriters counsel) of
other counsel reasonably acceptable to Underwriters counsel as to matters governed by the laws of
jurisdictions other than the United States, and as to matters of fact, upon certificates of
officers of the Company and of government officials; provided that such counsel shall state that
the opinion of any other counsel is in form satisfactory to such counsel and, in such counsels
opinion, such counsel and you are justified in relying on such opinions of other counsel. Copies
of all such opinions and certificates shall be addressed to the Underwriters (or shall state that
the Underwriters may rely thereon) and shall be furnished to Underwriters counsel on the Closing
Date.
Exhibit C-3
EXHIBIT D
Qwest Corporation
$950,000,000 6.75% Notes due 2021
Pricing Term Sheet
Date: September 27, 2011
|
|
|
Issuer:
|
|
Qwest Corporation
|
Principal Amount:
|
|
$950,000,000
|
Security:
|
|
$950,000,000 6.75% Notes due 2021
|
Maturity:
|
|
December 1, 2021
|
Coupon:
|
|
6.75%
|
Issue Price:
|
|
98.181%
|
Yield to Maturity:
|
|
7.00%
|
Spread to Benchmark Treasury:
|
|
4.996%
|
Benchmark Treasury:
|
|
2.125% due August 15, 2021
|
Benchmark Treasury Yield:
|
|
2.004%
|
Interest Payment Dates:
|
|
June 1 and December 1, commencing June 1, 2012
|
Interest Calculation Convention:
|
|
30/360
|
Denominations:
|
|
$2,000 minimum x $1,000
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Optional Redemption:
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At any time by the Issuer at greater of
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Par or Make-Whole at discount rate of
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Treasury plus 50 basis points.
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Settlement Date:
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T+5; October 4, 2011
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CUSIP Number:
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74913GAX3
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ISIN/Common Code:
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US74913GAX34
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Anticipated Ratings*:
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[Ratings intentionally omitted]
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Joint Book-Running Managers:
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Citigroup Global Markets Inc.
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J.P. Morgan Securities LLC
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Deutsche Bank Securities Inc.
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SunTrust Robinson Humphrey, Inc.
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Co-Managers:
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BNY Mellon Capital Markets, LLC
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Fifth Third Securities, Inc.
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Mizuho Securities USA Inc.
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U.S. Bancorp Investments, Inc.
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*
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Note: A securities rating is not a recommendation to buy, sell or hold securities and may be
subject to revision or withdrawal at any time.
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The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the
prospectus in that registration statement and other documents the issuer has filed with the SEC for
more complete information about the issuer and this offering. You may get these documents for free
by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter
or any dealer participating in the offering will arrange to send you the prospectus if you request
it by calling Citigroup Global Markets Inc. at 1-877-858-5407 or J.P. Morgan Securities LLC collect
at 212-834-4533.
Exhibit 4.1
QWEST CORPORATION
6.75% Notes due 2021
Ninth Supplemental Indenture
Dated as of October 4, 2011
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
NINTH SUPPLEMENTAL INDENTURE dated as of October 4, 2011 (this Supplemental Indenture) by
and between QWEST CORPORATION, a Colorado corporation (formerly known as U S WEST Communications,
Inc.) (the Company), and U.S. BANK NATIONAL ASSOCIATION, as trustee under the Indenture (as
defined below) with respect to the Notes (as defined below) (the Trustee), as amended and
supplemented by the First Supplemental Indenture (as defined below), the Second Supplemental
Indenture (as defined below), the Third Supplemental Indenture (as defined below), the Fourth
Supplemental Indenture (as defined below), the Fifth Supplemental Indenture (as defined below), the
Sixth Supplemental Indenture (as defined below), the Seventh Supplemental Indenture (as defined
below) and the Eighth Supplemental Indenture (as defined below). The Trustee, and each other
trustee appointed as such with respect to the Securities (as defined below) of any series issued
under the Indenture, shall be the Trustee (as defined in the Indenture, as supplemented hereby)
for all purposes under the Indenture with respect to the applicable series of Securities but, for
the avoidance of doubt, not with respect to any series of Securities for which such Trustee has not
been appointed trustee under the terms of the Indenture or any supplement thereto.
Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Notes:
WHEREAS, the Company and Bank of New York Trust Company, National Association (as successor in
interest to Bank One Trust Company, National Association), are parties to that certain Indenture
dated as of October 15, 1999 (the Base Indenture, and as amended and supplemented by the First
Supplemental Indenture, the Second Supplemental Indenture, the Third Supplemental Indenture, the
Fourth Supplemental Indenture, the Fifth Supplemental Indenture, the Sixth Supplemental Indenture,
the Seventh Supplemental Indenture and this Eighth Supplemental Indenture, the Indenture)
providing for the issuance from time to time of senior debt securities (Securities) to be issued
in one or more series.
WHEREAS, the Company and the Trustee are parties to the First Supplemental Indenture (the
First Supplemental Indenture) dated as of August 19, 2004, providing for the amendment and
supplement of the terms of the Base Indenture and the issuance by the Company of a series of
Securities designated as its 7.875% Notes due 2011, in an aggregate principal amount of
$575,000,000, none of which are currently outstanding.
WHEREAS, the Company and the Trustee are parties to the Second Supplemental Indenture (the
Second Supplemental Indenture) dated as of November 23, 2004, providing for the issuance by the
Company of additional notes of its series of Securities designated as its 7.875% Notes due 2011, in
an aggregate principal amount of $250,000,000, none of which are currently outstanding.
WHEREAS, the Company and the Trustee are parties to the Third Supplemental Indenture (the
Third Supplemental Indenture) dated as of June 17, 2005, providing for the issuance by the
Company of a series of Securities designated as its 7.625% Notes due 2015, in an aggregate
principal amount of $400,000,000, all of which are currently outstanding, and a series of
Securities designated as its Floating Rate Notes due 2013, in an aggregate principal amount of
$750,000,000, all of which are currently outstanding.
WHEREAS, the Company and the Trustee are parties to the Fourth Supplemental Indenture (the
Fourth Supplemental Indenture) dated as of August 8, 2006, providing for the issuance by the
Company of a series of Securities designated as its 7.5% Notes due 2014, in an aggregate principal
amount of $600,000,000, all of which are currently outstanding.
WHEREAS, the Company and the Trustee are parties to the Fifth Supplemental Indenture (the
Fifth Supplemental Indenture) dated as of May 16, 2007, providing for the issuance by the Company
of a series of Securities designated as its 6.5% Notes due 2017, in an aggregate principal amount
of $500,000,000, all of which are currently outstanding.
WHEREAS, the Company and the Trustee are parties to the Sixth Supplemental Indenture (the
Sixth Supplemental Indenture) dated as of April 13, 2009, providing for the issuance by the
Company of a series of Securities designated as its 8 3/8% Notes due 2016, in an aggregate
principal amount of $810,500,000, all of which are currently outstanding.
WHEREAS, the Company and the Trustee are parties to the Seventh Supplemental Indenture (the
Seventh Supplemental Indenture) dated as of June 8, 2011, providing for the issuance by the
Company of a series of Securities designated as its 7.375% Notes due 2051, in an aggregate
principal amount of $661,250,000, all of which are currently outstanding.
WHEREAS, the Company and the Trustee are parties to the Eighth Supplemental Indenture (the
Eighth Supplemental Indenture) dated as of September 21, 2011, providing for the issuance by the
Company of a series of Securities designated as its 7.50% Notes due 2051, in an aggregate principal
amount of $575,000,000, all of which are currently outstanding.
WHEREAS, the Company desires and has requested the Trustee to execute and deliver this
Supplemental Indenture in order to establish and provide for the issuance by the Company of a
series of Securities designated as its 6.75% Notes due 2021, in an initial aggregate principal
amount of $950,000,000 (the Notes). The Notes shall be substantially in the form attached hereto
as
Exhibit A
.
WHEREAS, Section 9.01(8) of the Base Indenture provides that a supplemental indenture may be
entered into by the Company and the Trustee without the consent of any Holders to establish the
form and terms and conditions of Securities of any Series as permitted by Section 2.02 of the Base
Indenture.
WHEREAS, the conditions set forth in the Indenture for the execution and delivery of this
Supplemental Indenture have been complied with.
WHEREAS, all things necessary to make this Supplemental Indenture a valid agreement of the
Company and the Trustee, in accordance with its terms, and a valid supplement to the Indenture have
been done.
NOW, THEREFORE, in consideration of the premises and the purchase and acceptance of the Notes
by the Holders thereof, the Company covenants and agrees with the Trustee, for the equal and
ratable benefit of the Holders of the Notes, that the Indenture is supplemented, to the extent
expressed herein, as follows:
2
ARTICLE 1
THE NOTES
Section 1.01
Designation of Notes
.
The changes, modifications and supplements to the Indenture effected by this Supplemental
Indenture shall be applicable only with respect to, and govern the terms of, the Notes, which shall
not be limited in aggregate principal amount, and shall not apply to any other Securities that have
been or may be issued under the Indenture unless a supplemental indenture with respect to such
other Securities specifically incorporates such changes, modifications and supplements. Pursuant to
this Supplemental Indenture, there is hereby created and designated a series of Securities under
the Indenture entitled 6.75% Notes due 2021. The Notes shall be in the form of
Exhibit A
hereto. Subject to the terms in the Indenture, as supplemented by this Supplemental Indenture, the
Company may, at its option, without the consent of the Holders of the Notes, issue additional notes
from time to time that will constitute a single series of Securities under the Indenture together
with the previously outstanding Notes.
Section 1.02
Other Terms of the Notes
.
Without limiting the foregoing provisions of this Article 1, the terms of the Notes shall be
as set forth in the form of Note set forth in
Exhibit A
hereto and as provided in the
Indenture.
The Notes shall be issuable in minimum denominations of $2,000 and integral multiples of
$1,000 in excess thereof. The Notes shall be payable and may be presented for payment, purchase,
registration of transfer and exchange, without service charge, at the office of the Company
maintained for such purpose in New York, New York, which shall initially be the office or agency of
the Trustee.
Section 1.03
Definitions
.
(a) Capitalized terms used but not otherwise defined herein shall have the meanings ascribed
to such terms in the Indenture. To the extent terms defined herein differ from the Indenture, the
terms defined herein will govern.
(b) For all purposes of the Indenture, except as otherwise expressly provided or unless the
context otherwise requires, the terms defined in this Supplemental Indenture have the meanings
assigned to them in this Supplemental Indenture, and include the plural, as well as the singular.
3
ARTICLE 2
ADDITIONAL TERMS
Section 2.01
Form and Dating
(a) The Notes issued shall be substantially in the form set forth in
Exhibit A
hereto,
deposited with the Trustee, as custodian for The Depository Trust Company, New York, New York, or a
successor thereto registered under the Securities Exchange Act of 1934, as amended, or other
applicable statute or regulation (the Depository), duly executed by the Company and authenticated
by the Trustee as hereinafter provided and shall bear any legends required by applicable law (the
Global Notes).
(b) The aggregate principal amount of each of the Global Notes may from time to time be
increased or decreased by adjustments made by the Trustee on Schedule I to the Global Notes and on
the records of the Trustee, as custodian for the Depository.
Section 2.02
Book-Entry Provisions for Global Notes
(a) The Global Notes initially shall (i) be registered in the name of the Depository or the
nominee of such Depository, (ii) be delivered to the Trustee as custodian for such Depository and
(iii) bear the legends required by the Depository as set forth in
Exhibit A
.
(b) Members of, or participants in, the Depository (Participants) shall have no rights under
this Indenture with respect to any Global Note held on their behalf by the Depository, or the
Trustee as its custodian, or under any such Global Note, and the Depository may be treated by the
Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the
Global Note for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the Depository or impair, as
between the Depository and Participants, the operation of customary practices governing the
exercise of the rights of a Holder of any Note.
(c) The Holder of any Global Note may grant proxies and otherwise authorize any Person,
including Participants and Persons that may hold interests through Participants, to take any action
which a Holder of any Note is entitled to take under this Indenture or the Notes.
(d) Notwithstanding any other provisions of the Indenture, a Global Note may only be
transferred in whole, and not in part, and may not be transferred as a whole except by the
Depository to a nominee of the Depository or by a nominee of the Depository to the Depository or
another nominee of the Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such successor Depository. Definitive Notes shall be transferred to all
beneficial owners in exchange for their beneficial interests in Global Notes, upon the written
request of such beneficial owners or upon the Companys written instructions to the Trustee, if (i)
the Depository notifies the Company that it is unwilling or unable to act as Depository for any
Global Note and a successor Depository is not appointed by the Company within 90 days, (ii) the
Depository ceases to be a clearing agency registered or in good standing under the Securities
4
Exchange Act of 1934, as amended, or other applicable statute or regulation, and a successor
Depository is not appointed by the Company within 90 days or (iii) if an Event of Default shall
have occurred and be continuing. In addition, definitive Notes shall be transferred to all
beneficial owners in exchange for their beneficial interests in Global Notes if the Company, in its
sole discretion, determines not to require that all of the Notes be represented by a Global Note.
In connection with the transfer of a Global Note as an entirety pursuant to this Section 2.02(d),
such Global Note shall be deemed to be surrendered to the Trustee for cancellation and (i) the
Company shall execute and (ii) the Trustee shall, upon written instructions from the Company,
authenticate and deliver to each beneficial owner identified by the Depository in exchange for its
beneficial interest in such Global Note, an equal aggregate principal amount of definitive Notes of
authorized denominations.
(e) The Trustee shall have no responsibility for the actions or omissions of the Depository or
the accuracy of the books and records of the Depository.
ARTICLE 3
MISCELLANEOUS
Section 3.01
Amendment and Supplement
.
This Supplemental Indenture and the Notes may be amended or supplemented as provided for in
the Indenture.
Section 3.02
Indenture
.
In the event of any conflict between this Supplemental Indenture and the Indenture, the
provisions of this Supplemental Indenture shall prevail.
Section 3.03
Governing Law
.
The laws of the State of New York shall govern this Supplemental Indenture and the Notes
created hereby.
Section 3.04
No Adverse Interpretation of Other Agreements
.
This Supplemental Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or a Subsidiary. Any such indenture, loan or debt agreement may not be
used to interpret this Supplemental Indenture.
Section 3.05
Successors and Assigns.
All covenants and agreements of the Company in this Supplemental Indenture and the Notes shall
bind its successors and assigns. All agreements of the Trustee in this Supplemental Indenture shall
bind its successors and assigns.
5
Section 3.06
Duplicate Originals
.
This Supplemental Indenture may be executed in counterparts, each of which shall be an
original, but such counterparts shall together constitute but one instrument.
Section 3.07
Severability
.
In case any one or more of the provisions contained in this Supplemental Indenture or in the
Notes shall for any reason be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability shall not affect any other provisions of this
Supplemental Indenture or of the Notes.
[Signature Page Follows]
6
SIGNATURES
IN WITNESS WHEREOF, the parties have caused this Ninth Supplemental Indenture to be duly
executed, all as of the date first above written.
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QWEST CORPORATION
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By:
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/s/ R. Stewart Ewing, Jr.
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Name:
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R. Stewart Ewing, Jr.
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Title:
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Executive Vice President and
Chief Financial Officer
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U.S. BANK NATIONAL ASSOCIATION
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By:
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/s/ Leland Hanson
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Name:
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Leland Hanson
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Title:
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Vice President
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Exhibit A
THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS
NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR
ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE
DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (DTC), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
A-1
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No. ____
CUSIP No. 74913GAX3
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PRINCIPAL AMOUNT
$_________
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Qwest Corporation 6.75% Note due 2021
QWEST CORPORATION, a corporation duly organized and existing under the laws of the State of
Colorado (such corporation, and its successors and assigns under the Indenture hereinafter referred
to, being herein called the Company), for value received, hereby promises to pay to Cede & Co.,
or registered assigns, the principal sum of _________________ MILLION DOLLARS ($_________) (or such
other amount as shall be listed on Schedule I attached hereto) on December 1, 2021 (the Maturity
Date), unless previously redeemed on any redemption date, by wire transfer of immediately
available funds of such coin or currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts and to pay interest thereon
semi-annually on June 1 and December 1 of each year, commencing June 1, 2012 (each, an Interest
Payment Date), and on the Maturity Date at the rate per annum specified in the title of this Note,
from October 4, 2011 (or from the most recent Interest Payment Date to which interest has been paid
or duly provided for) until payment of such principal sum has been made or duly provided for.
Notwithstanding the foregoing, if the Company shall default in the payment of interest due on any
Interest Payment Date, then this Note shall bear interest from the most recent Interest Payment
Date to which interest has been paid or duly provided for or, if no interest has been paid on this
Note or duly provided for, from October 4, 2011. The interest so payable on any Interest Payment
Date, as long as the Notes are represented by a global security, subject to certain exceptions
provided in the Indenture referred to herein, will be paid to the person in whose name this Note
shall be registered at the close of business on the Business Day (as defined below) prior to such
Interest Payment Date. If any Interest Payment Date or the Maturity Date is a Legal Holiday (as
defined in the Indenture referred to below) in New York, New York, the required payment shall be
made on the next succeeding day that is not a Legal Holiday as if it was made on the date such
payment was due and no interest will accrue on the amount so payable for the period from and after
such Interest Payment Date or Maturity Date, as the case may be, to such next succeeding day.
Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The
amount of interest payable for any period shorter than a full semi-annual period will be computed
based on the actual number of full days elapsed in such period. Business Day means any day other
than a Legal Holiday.
This Note is one of the duly authorized series of Securities of the Company, designated as the
Companys 6.75% Notes due 2021 (the Notes), initially limited to the aggregate principal amount
of $950,000,000, all issued or to be issued under and pursuant to an Indenture dated as of October
15, 1999 between the Company and Bank of New York Trust Company National Association, as trustee
(as successor in interest to Bank One Trust Company National Association), as amended and
supplemented by the First Supplemental Indenture dated as of August 19, 2004 by and between the
Company and U.S. Bank National Association, as trustee (the Trustee), the Second Supplemental
Indenture dated as of November 23, 2004 between the Company and the Trustee, the Third Supplemental
Indenture dated as of June 17, 2005 between the Company and the Trustee, the Fourth Supplemental
Indenture dated as of August 8, 2006
A-2
between the Company and the Trustee, the Fifth Supplemental Indenture dated as of May 16, 2007
between the Company and the Trustee, the Sixth Supplemental Indenture dated as of April 13, 2009
between the Company and the Trustee, the Seventh Supplemental Indenture dated as of June 8, 2011
between the Company and the Trustee, the Eighth Supplemental Indenture dated as of September 21,
2011 between the Company and the Trustee and the Ninth Supplemental Indenture dated as of October
4, 2011 between the Company and the Trustee, as such may be amended, modified or supplemented from
time to time (as so amended, modified or supplemented, the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a description of the rights,
limitation of rights, obligations, duties and immunities thereunder of the Trustee, the Company and
the Holders (the words Holders or Holder meaning the registered holders or registered holder of
the Notes).
The Notes shall be redeemable at the option of the Company, at any time in whole or from time
to time in part, at a redemption price equal to the greater of (i) 100% of the principal amount of
the Notes to be redeemed or (ii) the sum of the present values of the remaining scheduled payments
of principal and interest on the Notes to be redeemed (exclusive of interest accrued to the date of
redemption), discounted to the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the then current Treasury Rate applicable to the Notes plus
50 basis points, plus any accrued and unpaid interest on the principal amount of the Notes being
redeemed to the redemption date.
If money sufficient to pay the redemption price of and accrued interest on all of the Notes
(or portions thereof) to be redeemed on the redemption date is deposited with the Trustee or paying
agent on or before the redemption date and certain other conditions specified in the Indenture are
satisfied, then on and after such redemption date, interest will cease to accrue on such Notes (or
such portion thereof) called for redemption.
As used herein:
Comparable Treasury Issue
means the U.S. Treasury security selected by an Independent
Investment Banker as having a maturity comparable to the remaining term (the Remaining
Life) of the Notes to be redeemed that would be utilized, at the time of selection and in
accordance with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the Notes.
Comparable Treasury Price
means, with respect to any redemption date, (1) the average
of the Reference Treasury Dealer Quotations for such redemption date, after excluding the
highest and lowest Reference Treasury Dealer Quotations, or (2) if the Trustee obtains fewer
than four such Reference Treasury Dealer Quotations, the average of all such quotations.
Independent Investment Banker
means one of the Reference Treasury Dealers that the
Company appoints to act as the Independent Investment Banker from time to time.
Reference Treasury Dealer
means each of Citigroup Global Markets Inc. and J.P. Morgan
Securities LLC, their respective successors, or any other firm that is a
A-3
primary U.S. Government securities dealer in New York City (each, a Primary Treasury
Dealer) that the Company specifies from time to time; provided, however, that if any of
them ceases to be a Primary Treasury Dealer, the Company will substitute another Primary
Treasury Dealer.
Reference Treasury Dealer Quotations
means, with respect to each Reference Treasury
Dealer and any redemption date, the average, as determined by the Trustee, of the bid and
asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at
5:00 p.m., New York City time, on the third business day preceding such redemption date.
Treasury Rate
means, with respect to any redemption date, the rate per year equal to:
(i) the yield, under the heading which represents the average for the immediately preceding
week, appearing in the most recently published statistical release designated H.15(519) or
any successor publication which is published weekly by the Board of Governors of the Federal
Reserve System and which establishes yields on actively traded U.S. Treasury securities
adjusted to constant maturity under the caption Treasury Constant Maturities, for the
maturity corresponding to the Comparable Treasury Issue; provided that, if no maturity is
within three months before or after the Remaining Life of the Notes to be redeemed, yields
for the two published maturities most closely corresponding to the Comparable Treasury Issue
will be determined and the Treasury Rate will be interpolated or extrapolated from those
yields on a straight line basis, rounding to the nearest month; or (ii) if such release (or
any successor release) is not published during the week preceding the calculation date or
does not contain such yields, the rate per year equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, calculated using a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such redemption date. The Treasury Rate will be calculated on the third
Business Day preceding the redemption date.
Notice of any redemption will be mailed not less than 15 nor more than 60 calendar days before
the redemption date to the Holder hereof at its registered address. Unless the Company defaults in
payment of the redemption price, on and after the redemption date interest will cease to accrue on
the principal amount of this Note. Neither the Company nor the Trustee shall be required to
register the transfer of or exchange the Notes to be redeemed by the Company under the terms
hereof.
In case an Event of Default shall occur and be continuing, the principal hereof may be
declared, and upon such declaration shall become, due and payable in the manner, with the effect
and subject to the conditions provided in the Indenture.
Subject to certain specified exceptions, the Indenture contains provisions permitting (i) the
Company and the Trustee, with the written consent of the Holders of a majority in principal amount
of the outstanding Securities of each series affected by a supplemental indenture (with each series
voting as a class), to enter into a supplemental indenture to add any provisions to or to change or
eliminate any provisions of the Indenture or of any supplemental indenture or to
A-4
modify, in certain specified instances without the consent of Holders, the rights of the
Holders of each such series, and (ii) the Holders of a majority in principal amount of the
outstanding Securities of each series affected by such waiver (with each series voting as a class),
by notice to the Trustee to waive compliance by the Company with any provision of the Indenture,
any supplemental indenture or the Securities of any such series.
No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of, premium, if any, and interest on this Note at the place, at the respective times, at
the rate, and in the coin or currency herein prescribed.
No director, officer, employee or stockholder, as such, of the Company shall have any
liability for any obligations of the Company under this Note or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each Holder, by
accepting this Note, waives and releases all such liability. The waiver and release are part of the
consideration for the issue of this Note.
The laws of the State of New York shall govern the Indenture and this Note.
Ownership of this Note shall be proved by the register for the Notes kept by the Registrar.
The Company, the Trustee and any agent of the Company may treat the person in whose name a Note is
registered as the absolute owner thereof for all purposes.
The indebtedness evidenced by this Note is senior and unsecured and will rank in right of
payment on parity with all other unsecured and unsubordinated obligations of the Company.
Terms used herein without definition that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.
Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused CUSIP numbers to be printed on the Notes and the Trustee may use
CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to
the accuracy of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers placed thereon.
Unless the Certificate of Authentication hereon has been executed by the Trustee under the
Indenture referred to herein by the manual or facsimile signature of one of its authorized
officers, or on behalf of the Trustee by the manual or facsimile signature of an authorized officer
of the Trustees authenticating agent, this Note shall not be entitled to any benefit under the
Indenture or be valid or obligatory for any purpose.
A-5
IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed, manually or by
facsimile, and its corporate seal or a facsimile of its corporate seal to be imprinted hereon.
Date: October 4, 2011
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(SEAL)
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QWEST CORPORATION
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By:
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Name:
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Title:
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By:
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Name:
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Title:
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A-6
CERTIFICATE OF AUTHENTICATION
This is one of the Notes of the series designated herein, issued under the Indenture described
herein.
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U.S. BANK NATIONAL ASSOCIATION, as
Trustee
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By:
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Authorized Signatory
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A-7
ASSIGNMENT FORM
FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
Please insert social security number or other identifying number of assignee:
Please print or type name and address (including zip code) of assignee:
the within Note and all rights thereunder, hereby irrevocably constituting and appointing
_________________ attorney to transfer said Note of Qwest Corporation on the books of Qwest
Corporation, with full power of substitution in the premises.
Dated: ___________________________________
NOTICE: The signature to this assignment must correspond with the name as written upon the
face of this Note in every particular without alteration or enlargement or any change whatsoever.
A-8
SCHEDULE I
CHANGES TO PRINCIPAL AMOUNT OF SECURITIES EVIDENCED BY GLOBAL NOTE
The initial principal amount of Securities evidenced by this Global Note is $_______.
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Principal Amount of
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Securities by which
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this Global Note is to
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be Reduced or
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Remaining Principal
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Increased, and Reason
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Amount of Securities
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for Reduction or
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Represented by this
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Date
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Increase
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Global Note
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Notation Made by
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A-9