UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

 

April 11, 2018 (April 9, 2018)

Date of Report (Date of earliest event reported)

 

Commission File Number

 

Exact name of registrant as specified in its
charter;
State or other jurisdiction of incorporation or
organization

 

IRS Employer
Identification No.

000-52378

 

NEVADA POWER COMPANY

(A Nevada Corporation)
6226 West Sahara Avenue
Las Vegas, Nevada 89146

 

88-0420104

 

(702) 402-5000

(Registrant’s telephone number, including area code)

 

N/A

(Former name or former address, if changed since last report.)

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o                       Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o                       Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o                       Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o                       Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company                                               o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    o

 

 

 



 

Item 8.01 Other Events.

 

On April 9, 2018, Nevada Power Company (the “Company”), a wholly-owned subsidiary of NV Energy, Inc., an indirect wholly-owned subsidiary of Berkshire Hathaway Energy Company, entered into an Underwriting Agreement between the Company and the underwriters named therein regarding the issuance and sale of $575 million of the Company’s 2.75% General and Refunding Mortgage Notes, Series BB, due 2020 (the “Notes”). The Underwriting Agreement contains certain customary representations, warranties and covenants concerning the Company and the registration statement relating to the offering of the Notes. In addition, the Company has agreed to indemnify the Underwriters against certain liabilities, including liabilities under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended. The Company expects the transaction to close on April 12, 2018, subject to the satisfaction of customary closing conditions, as further described in the Underwriting Agreement.

 

The Company will pay interest on the Notes April 15 and October 15 of each year, beginning on October 15, 2018. The Notes, which will be issued under and secured by the General and Refunding Mortgage Indenture, dated as of May 1, 2001, as amended and supplemented (the ‘‘G&R Indenture’’), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, will mature on April 15, 2020. The Company intends to use the net proceeds from the sale of the Notes to repay the Company’s $325 million 6.50% General and Refunding Mortgage Notes, Series O, maturing in May 2018, to repay a portion of the Company’s $500 million 6.50% General and Refunding Mortgage Notes, Series S, maturing in August 2018, and for general corporate purposes.

 

At any time prior to April 15, 2020, the Company may redeem the Notes at its option, in whole at any time or in part from time to time, at a redemption price equal to the greater of (a) 100% of the principal amount of the Notes being redeemed and (b) the sum of the present values of the remaining scheduled payments of principal and interest on the Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined in the Officer’s Certificate) plus 10 basis points, plus, in each case, accrued interest thereon to the date of redemption.

 

The foregoing discussion of the Notes is qualified in its entirety by reference to the Officer’s Certificate establishing the terms of the Notes under the G&R Indenture, a copy of which is attached hereto as Exhibit 4.1 and incorporated into this Item 8.01 by reference.

 

Item 9.01 Financial Statements and Exhibits

 

(d) Exhibits

 

Exhibit

 

Description

 

 

 

1.1

 

Underwriting Agreement, dated April 9, 2018, between the Company and the underwriters named therein

 

 

 

4.1

 

Form of Officer’s Certificate establishing the terms of the Company’s 2.75% General and Refunding Mortgage Notes, Series BB, Due 2020

 

 

 

5.1

 

Opinion of Perkins Coie LLP

 

 

 

5.2

 

Opinion of Hutchison & Steffen, PLLC

 

 

 

25.1

 

Statement of Eligibility on Form T-1 under the Trust Indenture Act of 1939 of The Bank of New York Mellon Trust Company, N.A., as Trustee, under the General and Refunding Mortgage Indenture, dated as of May 1, 2001, between the Company and The Bank of New York Mellon Trust Company, N.A.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

NEVADA POWER COMPANY

 

(Registrant)

 

 

 

Dated: April 11, 2018

By:

/s/ E. Kevin Bethel

 

 

E. Kevin Bethel

 

 

Senior Vice President and Chief Financial Officer

 

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Exhibit 1.1

 

$575,000,000

 

2.75% General and Refunding Mortgage Notes,

 

Series BB, due 2020

 

NEVADA POWER COMPANY

 

UNDERWRITING AGREEMENT

 

April 9, 2018

 

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

 

TD Securities (USA) LLC

31 West 52nd Street

New York, New York 10019

 

U.S. Bancorp Investments, Inc.

214 North Tryon Street, 26th Floor

Charlotte, North Carolina 28202

 

as representatives of the several Underwriters named in Schedule A hereto.

 

Ladies and Gentlemen:

 

1.                                       Introductory .  Nevada Power Company, a Nevada corporation (the “ Company ”), proposes, subject to the terms and conditions stated herein, to issue and sell to the underwriters named in Schedule A attached hereto (collectively, the “ Underwriters ”), for whom Citigroup Global Markets Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC and U.S. Bancorp Investments, Inc. are acting as representatives (the “ Representatives ”), $575,000,000 principal amount of its 2.75% General and Refunding Mortgage Notes, Series BB, due 2020 (the “ Offered Securities ”) to be issued under that certain General and Refunding Mortgage Indenture, dated as of May 1, 2001 (the “ Original Indenture ”), between the Company and The Bank of New York Mellon Trust Company, N.A. (successor in trust to The Bank of New York Mellon, formerly The Bank of New York), as trustee (the “ Trustee ”), as amended and supplemented by various instruments including an officer’s certificate, to be dated the Closing Date (as defined herein) (the “ Officer’s Certificate ”), establishing the terms of the Offered Securities, such Original Indenture, as so amended and supplemented, being hereinafter called the “ Indenture .”

 

On September 30, 2016, the Company filed with the Securities and Exchange Commission (the “ Commission ”) a registration statement on Form S-3 (File No. 333-213897) for the

 



 

registration of securities, including the Offered Securities, under the United States Securities Act of 1933, as amended (the “ Securities Act ”), and the offer and sale thereof from time to time in accordance with Rule 415 of the rules and regulations of the Commission thereunder (the “ Rules and Regulations ) and for the qualification of the Indenture under the United States Trust Indenture Act of 1939, as amended (the “ Trust Indenture Act ”). As used herein, the term “ Registration Statement ” means, as of any particular time, such registration statement, including (a) any amendments thereto at such time, (b) the exhibits and schedules thereto at such time (if any) and (c) any prospectus filed with the Commission pursuant to Rule 424(b) under the Securities Act that, in accordance with Rule 430B under the Securities Act, is deemed to be a part thereof.

 

2.                                       Representations and Warranties of the Company .  The Company represents and warrants to, and agrees with, the several Underwriters that:

 

(a)                                  (i) At the time the Registration Statement was filed with the Commission and at the time of the most recent amendment to the Registration Statement for purposes of complying with Section 10(a)(3) of the Securities Act, the Company met the requirements for use of Form S-3 under the Securities Act.

 

(ii)                                   The Registration Statement was declared effective on October 18, 2016.  No stop order suspending the effectiveness of the Registration Statement has been issued by the Commission, and no proceedings for that purpose have been instituted by the Commission or are pending or have been threatened by the Commission or, to the knowledge of the Company, are being contemplated by the Commission; and any request by the Commission for additional information has been complied with.

 

(iii)                                At the earliest time after filing of the Registration Statement that the Company made a bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act) of the Offered Securities, the Company was not an “ineligible issuer,” as defined in Rule 405 under the Securities Act.

 

(iv)                               All references in this Underwriting Agreement to the Registration Statement shall be deemed to include, as of any time, the documents incorporated by reference therein at such time; and all references in this Underwriting Agreement to an amendment to the Registration Statement shall be deemed to include any documents filed by the Company with the Commission after the time of such effectiveness that is incorporated by reference therein.

 

(b)                                  (i) A preliminary prospectus supplement relating to the Offered Securities has been prepared, and a final prospectus supplement relating to the Offered Securities will be prepared by the Company in accordance with Section 5(a) hereof.  Such preliminary prospectus supplement (including the base prospectus to which it is attached and the documents incorporated by reference therein, but without regard to any amendment or supplement thereto after the date thereof) is hereinafter referred to as the “ Preliminary Prospectus ;” such form of final prospectus supplement relating to the Offered Securities to be filed with the Commission pursuant to Rule 424(b) under the Securities Act (including the base prospectus to which it is attached and documents incorporated by reference therein, but without regard to any amendment or supplement thereto after the

 

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date thereof) is hereinafter referred to as the “ Prospectus .”  The Preliminary Prospectus, as amended or supplemented as of the Applicable Time (as defined below), when considered together with the final term sheet filed pursuant to Section 5(a) hereof (the “ Disclosure Package ”), as of the Applicable Time, did not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  The Prospectus, as of its date and as of the Closing Date (as defined below), did not and will not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and each Issuer Free Writing Prospectus listed on Schedule B hereto does not conflict with the information contained in the Registration Statement, the Preliminary Prospectus or the Prospectus and each such Issuer Free Writing Prospectus, as supplemented by and taken together with the Disclosure Package as of the Applicable Time, did not include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, this sentence and the preceding sentence do not apply to statements in or omissions from the Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus based upon written information furnished to the Company by the Underwriters specifically for use therein, it being understood and agreed that the only such information is that described as such in Section 12 hereof.  For purposes of this Underwriting Agreement, the “ Applicable Time ” is 3:00 p.m., New York City Time, on the date of this Underwriting Agreement.

 

(ii)                                   All references in this Underwriting Agreement to an amendment or supplement to any Preliminary Prospectus or the Prospectus shall be deemed to include any document filed by the Company with the Commission after the date thereof.

 

(c)                                   The Registration Statement and the Prospectus conform, and any further amendments or supplements to the Registration Statement or the Prospectus when made will conform, in all material respects to the applicable requirements of the Securities Act and the Rules and Regulations, and the Registration Statement conforms, and any further amendments or supplements to the Registration Statement when made will conform, in all material respects to the requirements of the Trust Indenture Act, and the rules and regulations of the Commission thereunder.  The Registration Statement, as of the time it was originally declared effective, as of the time of the effectiveness thereof for purposes of paragraph (f)(2) of Rule 430B under the Securities Act, as applied to the Underwriters, and as of the Closing Date, did not and will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading.

 

(d)                                  The Company has been duly incorporated and is validly existing as a corporation under the laws of the State of Nevada with corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Disclosure Package and the Prospectus; and the Company is duly qualified as a foreign corporation to transact business and is in good standing in each jurisdiction in which it owns or leases substantial properties or in which the conduct of its business requires such qualification, except where the failure to so qualify would not have a material adverse

 

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effect on the financial condition, business or results of operations of the Company, taken as a whole (a “ Material Adverse Effect ”).

 

(e)                                   The Company has the legal right to function and operate as an electric public utility company in the State of Nevada.

 

(f)                                    The Company has no “significant subsidiaries” as such term is defined in Rule 405 under the Securities Act.

 

(g)                                   The documents incorporated by reference in the Prospectus and the Disclosure Package, at the time they were or hereafter are filed with the Commission, complied or when so filed will comply, as the case may be, in all material respects with the requirements of the of the United States Securities Exchange Act of 1934, as amended (the “ Exchange Act ”) and the rules and regulations promulgated thereunder (“ Exchange Act Rules and Regulations ”), and, when read together with the other information in the Prospectus and the Disclosure Package, did not and will not contain an 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 or are made, not misleading.  The Company is in compliance in all material respects with all the applicable provisions of the United States Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder.

 

(h)                                  The accountants who issued their reports on the financial statements included or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus are an independent registered public accounting firm within the meaning of the Securities Act and the Rules and Regulations.

 

(i)                                      The financial statements and any supporting schedules of the Company included or incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus present fairly the consolidated financial condition of the Company and subsidiaries as of the dates indicated and the related consolidated results of operations, changes in shareholder’s equity and cash flows for the periods specified; and, except as stated therein, said financial statements have been prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis; and any supporting schedules included or incorporated by reference in the Registration Statement, the Disclosure Package or the Prospectus present fairly the information required to be stated therein. The selected financial data included in the Registration Statement, the Disclosure Package and the Prospectus present fairly the information shown therein and have been compiled on a basis consistent with that of the audited financial statements included in the Registration Statement.  The financial statements and other financial data included in the Registration Statement and the Prospectus comply in all material respects with the requirements of paragraph (e) of Item 10 of Regulation S-K under the Securities Act. The interactive data in eXtensible Business Reporting Language filed as exhibits to the documents incorporated by reference or deemed to be incorporated by reference into the Registration Statement and the Prospectus fairly present the information called for in all material respects and has been prepared in accordance with the Commission’s rules and guidelines applicable thereto.

 

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(j)                                     This Underwriting Agreement has been duly authorized by and, upon execution and delivery by the parties hereto, will be a legal, valid and binding agreement of the Company, except as rights to indemnity and contribution thereunder may be limited by federal or state securities laws or principles of public policy; the Indenture has been duly authorized by and, at the Closing Date, will constitute a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms; the Offered Securities have been duly and validly authorized for issuance, offer and sale pursuant to this Underwriting Agreement and, when issued, authenticated and delivered pursuant to the provisions of this Underwriting Agreement and the Indenture against payment of the consideration therefor specified in the Prospectus, the Offered Securities will constitute legal, valid and binding obligations of the Company enforceable against the Company in accordance with their terms; provided, however, that enforcement of the Indenture and the Offered Securities may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting the enforcement of creditors’ rights generally and general equitable principles; the Offered Securities and the Indenture will conform in all material respects to all statements relating thereto contained in the Registration Statement, the Disclosure Package and the Prospectus; and the Offered Securities will be entitled to the benefits and security provided by the Indenture, ratably with all other securities outstanding thereunder. At the Closing Date, the Indenture will have been qualified under the Trust Indenture Act.

 

(k)                                  Since the respective dates as of which information is given in the Registration Statement, the Disclosure Package and the Prospectus, except as may otherwise be stated therein or contemplated thereby, (A) there has been no material adverse change in the condition, financial or otherwise, or in the earnings, business affairs or business prospects of the Company taken as a whole, whether or not arising in the ordinary course of business, and (B) there have been no material transactions entered into by the Company other than those in the ordinary course of business.

 

(l)                                      The Company is neither (i) in violation of its Restated Articles of Incorporation, as amended, or bylaws, nor (ii) in default in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement, note, lease or other instrument to which it is a party or by which it or its properties may be bound, which in the case of this subsection (ii) would result in a Material Adverse Effect.  The execution and delivery of this Underwriting Agreement and the Indenture and the consummation of the transactions contemplated herein and therein will not conflict with, constitute a breach of or default under, or result in the creation or imposition of any lien, charge or encumbrance, other than pursuant to the Mortgage, upon any material property or assets of the Company pursuant to, any contract, indenture, mortgage, loan agreement, note, lease or other instrument to which the Company is a party or by which the Company may be bound or to which any of the material property or assets of the Company is subject, nor will such action result in any violation of the Restated Articles of Incorporation, as amended, or bylaws of the Company or any law, administrative regulation or administrative or court order or decree.

 

(m)                              The Company has made all necessary filings and obtained all necessary consents, orders or approvals from the Public Utilities Commission of Nevada (“ PUCN ”)

 

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in connection with the issuance and sale of the Offered Securities and the application of the proceeds thereof, and no consent, approval, authorization, order or decree of any other court or governmental agency or body is required for the consummation by the Company of the transactions contemplated by this Underwriting Agreement, except such as may be required under state securities (“ Blue Sky ”) laws.

 

(n)                                  Except as may be set forth in the Registration Statement, the Disclosure Package and the Prospectus, there is no action, suit or proceeding before or by any court or governmental agency or body, domestic or foreign, now pending, or, to the knowledge of the Company, threatened against or affecting, the Company which would be reasonably likely to result in a Material Adverse Effect or would be reasonably likely to materially and adversely affect the consummation of the transactions contemplated by this Underwriting Agreement or the Indenture.

 

(o)                                  Any certificate signed by any director or officer of the Company and delivered to the Underwriters or to counsel for the Underwriters in connection with the offering of the Offered Securities shall be deemed a representation and warranty by the Company to the Underwriters as to the matters covered thereby on the date of such certificate.

 

(p)                                  The Company is not, and will not be after giving effect to the offering of the Offered Securities and the application of the proceeds therefrom as described under “Use of Proceeds” in the Registration Statement, the Disclosure Package and the Prospectus, required to register as an “investment company” under the United States Investment Company Act of 1940, as amended.

 

(q)                                  (i) The Company (A) makes and keeps books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company and (B) has devised and established and maintains the following, among other, internal controls (without duplication): (I) a system of “internal accounting controls,” as contemplated in Section 13(b)(2)(B) of the Exchange Act; (II) “internal control over financial reporting,” as such term is defined in Rule 13a-15(f) of the Exchange Act Rules and Regulations; and (III) “disclosure controls and procedures,” as such term is defined in Rule 13a-15(e) of the Exchange Act Rules and Regulations.

 

(r)                                     The Company (i) is in compliance with any and all applicable United States federal, state and local laws and regulations relating to the protection of human health, safety, and the environment or hazardous or toxic substances or wastes, pollutants or contaminants (“ Environmental Laws ”) and (ii) has received and is in compliance with all permits, licenses or other approvals required of it under applicable Environmental Laws to conduct its respective businesses, except where such non-compliance with Environmental Laws as set forth in (i), and failure to receive required permits, licenses or other approvals, as set forth in (ii), either (A) would not be reasonably likely to have a Material Adverse Effect or (B) is set forth in or contemplated in the Registration Statement, the Disclosure Package and the Prospectus.

 

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(s)                                    (i) The Company has good and marketable title to all real property, and good title to all other property, owned by it, including, without limitation, property that is or at closing will be specifically or generally described or referred to in the Indenture as being subject to the Lien (as defined in the Indenture) created by the Indenture; and the descriptions of all such property contained or referred to in the Indenture are correct in all material respects and adequate for purposes of the Lien purported to be created by the Indenture.

 

(ii)                                   The Company has obtained and delivered to the Trustee policies of title insurance and endorsements thereto which (A) cover (I) the Company’s real properties used in connection with the generation of electric power from the generating facilities known as the Clark Station, the Harry Allen Station, the Reid Gardner Station (Units 1, 2 and 3) and the Sunrise Station and (II) all other real properties of the Company located in Nevada that were owned in fee title as of August 18, 2003, (B) have an aggregate face amount of $950,000,000, (C) contain “first loss payable” and “last dollar” endorsements and (D) are in full force and effect.

 

(iii)                                The Indenture (excluding the Officers’ Certificate) constitutes, and, at the Closing Date, the Indenture will constitute, a valid mortgage lien on or security interest in the property which is specifically or generally described or referred to in the Indenture as being subject to the Lien created by the Indenture. There is no, and at the Closing Date there will be no, Lien prior to the Lien created by the Indenture, other than Permitted Liens (as defined in the Indenture), on the property subject to the Lien created by the Indenture.  The Indenture will constitute a valid mortgage lien on or security interest in all property located in the State of Nevada acquired by the Company after the Closing Date, other than property excepted or released from the Lien created by the Indenture, as and to the extent described in the Registration Statement, the Disclosure Package and the Prospectus.

 

(iv)                               The Indenture has been duly recorded or filed for recordation as a mortgage of real estate, and any required filings with respect to personal property and fixtures subject to the Lien of the Indenture have been duly made, in each place in which such recording or filing is required to protect, preserve and perfect the Lien of the Indenture. All taxes and recording and filing fees required to be paid with respect to the execution, recording or filing of the Indenture, the filing of financing statements and similar documents and the issuance of the Offered Securities have been paid.

 

(t)                                     Neither the Company, nor, to the knowledge of the Company, after due inquiry, any director, officer or employee of the Company, has in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official, “foreign office” as defined in the United States Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (collectively, the “ FCPA ”) or employee from corporate funds; (iii) violated or is in violation of any provision of the FCPA, the Bribery Act 2010 of the United Kingdom, as amended, or any other applicable anti-bribery or anti-corruption laws or statutes; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any domestic government

 

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official, foreign official or employee; and the Company has conducted its business in compliance with the FCPA, the Bribery Act 2010 of the United Kingdom, as amended, and any other applicable anti-bribery or anti-corruption laws or statues, and has instituted and maintains policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

 

(u)                                  The operations of the Company have been conducted at all applicable times in compliance with applicable financial recordkeeping and reporting requirements of the United States Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions in which the Company conducts business, the rules and regulations thereunder (collectively, the “ Money Laundering Laws ”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator to which the Company is subject with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(v)                                  Neither the Company nor, to the knowledge of the Company, after due inquiry, any director, officer or employee of the Company (i) is currently subject to or the target of any sanctions administered or enforced by the Office of Foreign Assets Control of the United States Treasury Department, the United States Department of State, the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “ Sanctions ”); or (ii) is located, organized or resident in a country that is the subject of Sanctions (including, without limitation, Cuba, Iran, North Korea, Sudan and Syria); and the Company will not directly or indirectly use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any joint venture partner or other person or entity, for the purpose of financing the activities of any person, or in any country or territory, that currently is the subject or target of Sanctions or in any other manner that will result in a violation by any person (including any person participating in the transaction whether as an underwriter, advisor, investor or otherwise) of Sanctions.  The Company has not knowingly engaged in for the past five years, and is not now knowingly engaged in, any dealings or transactions with any individual or entity, or in any country or territory, that at the time of the dealing or transaction is or was the subject or target of Sanctions.

 

3.                                       Purchase, Sale and Delivery of Offered Securities .  On the basis of the representations, warranties and agreements herein contained, but subject to the terms and conditions herein set forth, the Company agrees to sell to the Underwriters, and the Underwriters agree, severally and not jointly, to purchase from the Company, at a purchase price of 99.728% of the principal amount thereof, the respective principal amount of the Offered Securities set forth opposite the names of the several Underwriters in Schedule A hereto.

 

The Company will deliver against payment of the purchase price the Offered Securities to be purchased by each Underwriter hereunder and to be offered and sold by each Underwriter in the form of one or more global securities in registered form without interest coupons (the “ Global Securities ”) deposited with the Trustee as custodian for The Depository Trust Company (“ DTC ”) and registered in the name of Cede & Co., as nominee for DTC.  Interests in the Global Securities will be held only in book-entry form through DTC, except in the limited circumstances described in the Disclosure Package and the Prospectus.

 

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Payment for the Offered Securities shall be made by the Representatives in Federal (same day) funds by wire transfer to an account at a bank acceptable to the Representatives drawn to the order of the Company, at 10:00 a.m., (New York time), on April 12, 2018, or at such other time not later than seven full business days thereafter as the Representatives and the Company determine, such time being herein referred to as the “ Closing Date ,” against delivery to the Trustee as custodian for DTC of the Global Securities.  Certificates, legal opinions and other documents evidencing the performance and satisfaction by the Company of the conditions and covenants to be performed and satisfied by it hereunder shall be delivered to the Representatives at the offices of Pillsbury Winthrop Shaw Pittman LLP, 1540 Broadway, New York, NY 10036.  The Global Securities will be made available for checking at such offices of Pillsbury Winthrop Shaw Pittman LLP at least 24 hours prior to the Closing Date.

 

4.                                       Free Writing Prospectuses; Non-U.S. Offerings .

 

(a)                                  The Company (i) represents and agrees that, other than the final term sheet prepared and filed pursuant to Section 5(a) hereof, without the prior consent of the Representatives, it has not made and will not make any offer relating to the Offered Securities that would constitute a “free writing prospectus” as defined in Rule 405 under the Securities Act and (ii) has complied and will comply with the requirements of Rule 433 under the Securities Act applicable to any Issuer Free Writing Prospectus, including timely filing with the Commission or retention where required and legending.

 

(b)                                  Each Underwriter represents and agrees that, without the prior consent of the Company and the Representatives, other than one or more term sheets relating to the Offered Securities containing customary information (including the final term sheet prepared and filed pursuant to Section 5(a) hereof), it has not made and will not make any offer relating to the Offered Securities that would constitute a “free writing prospectus” (as defined in Rule 405 under the Securities Act); and

 

(c)                                   Any such free writing prospectus (including any Issuer Free Writing Prospectus) the use of which has been consented to by the Company and the Representatives (including the final term sheet prepared and filed pursuant to Section 5(a) hereof) is listed on Schedule B hereto.

 

(d)                                  Each of the Underwriters severally acknowledges, represents and agrees that:

 

(i)                                      the Offered Securities are not intended to be offered, sold or otherwise made available to and will not be offered, sold or otherwise made available to any retail investor in the European Economic Area. For the purposes of this provision, a retail investor means a person who is one (or more) of: (A) a retail client as defined in point (11) of Article 4(1) of Directive 2014/65/EU (as amended, “ MiFID II ”); (B) a customer within the meaning of Directive 2002/92/EC, where that customer would not qualify as a professional client as defined in point (10) of Article 4(1) of MiFID II; or (C) not a qualified investor as defined in Directive 2003/71/EC (as amended, the “ Prospectus Directive ”), and that consequently, no key information document required by Regulation (EU) No. 1286/2014 (as amended, the “ PRIIPs Regulation ”) for offering or selling the Offered Securities or otherwise making them available to retail investors in the

 

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European Economic Area has been prepared, and therefore offering or selling the Offered Securities or otherwise making them available to any retail investor in the European Economic Area may be unlawful under the PRIIPs Regulation. Each of the Underwriters further acknowledges, represents and agrees that the Preliminary Prospectus and the Prospectus have been prepared on the basis that any offer of Offered Securities in any Member State of the European Economic Area will be made pursuant to an exemption under the Prospectus Directive from the requirement to publish a prospectus for offers of Offered Securities, and that the Preliminary Prospectus and the Prospectus are not a prospectus for the purposes of the Prospectus Directive; and

 

(ii)                                   (i) (A) it has only communicated or caused to be communicated (and will only communicate or cause to be communicated) an invitation or inducement to engage in investment activity (within the meaning of Section 21 of the United Kingdom Financial Services and Markets Act of 2000 (the “ FSMA ”)) received by it in connection with the issue or sale of the Offered Securities in circumstances in which Section 21(1) of the FSMA does not apply to the Company; and (B) it has complied and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Offered Securities in, from or otherwise involving the United Kingdom.

 

5.                                       Certain Agreements of the Company .  The Company agrees with the several Underwriters that:

 

(a)                                  It will prepare the Prospectus in a form approved by the Representatives and will file such Prospectus pursuant to Rule 424(b) under the Securities Act not later than the Commission’s close of business on the second business day following the date of this Underwriting Agreement; to make no further amendment or any supplement to the Registration Statement, or the Prospectus prior to the Closing Date that shall be reasonably disapproved by the Representatives promptly after reasonable notice thereof; to advise the Representatives, promptly after it receives notice thereof, of the time when any amendment to the Registration Statement has been filed or becomes effective or any amendment or supplement to the Prospectus has been filed and to furnish the Representatives with copies thereof; to prepare a final term sheet, containing solely a description of the Offered Securities, in a form approved by the Representatives and to file such term sheet pursuant to Rule 433(d) under the Securities Act within the time required by such Rule; to file promptly all other material required to be filed by the Company with the Commission pursuant to Rule 433(d) under the Securities Act; to file promptly all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Prospectus and for so long as the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is required in connection with the offering or sale of the Offered Securities; to advise the Representatives, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus, the Disclosure Package or the Prospectus, of the suspension of the qualification of the Offered Securities for offering or sale in any jurisdiction, of the initiation or threatening of any

 

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proceeding for any such purpose, or of any request by the Commission for the amending of the Registration Statement, or the amending or supplementing of the Disclosure Package or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus, the Disclosure Package or the Prospectus or suspending any such qualification, to promptly use its best efforts to obtain the withdrawal of such order; and, in the event of any such issuance of a notice of objection, promptly to take such steps including, without limitation, amending the Registration Statement or filing a new registration statement, at its own expense, as may be necessary to permit offers and sales of the Offered Securities by the Underwriters (references herein to the Registration Statement shall mean any such new registration statement).

 

(b)                                  Prior to 10:00 a.m., New York City time, on the New York business day next succeeding the date of this Underwriting Agreement and from time to time, to furnish the Underwriters with written and electronic copies of the Prospectus in New York City in such quantities as the Underwriters may reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is required at any time prior to the expiration of nine months after the time of issue of the Prospectus in connection with the offering or sale of the Offered Securities and if at such time any event shall have occurred as a result of which the Prospectus as then amended or supplemented would include an untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made when such Prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) is delivered, not misleading, or, if for any other reason it shall be necessary during such same period to amend or supplement the Prospectus or to file under the Exchange Act any document incorporated by reference in the Prospectus in order to comply with the Securities Act, the Exchange Act or the Trust Indenture Act, to notify the Representatives and upon the Representatives’ request to file such document and to prepare and furnish without charge to each Representatives and to any dealer in securities as many written and electronic copies as the Underwriters may from time to time reasonably request of an amended Prospectus or a supplement to the Prospectus that will correct such statement or omission or effect such compliance; and in case any Underwriter is required under the Securities Act to deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Securities Act) in connection with sales of any of the Offered Securities at any time nine months or more after the time of issue of the Prospectus, upon such Underwriter’s request but at the expense of such Representatives, to prepare and deliver to such Underwriter as many written and electronic copies as such Underwriter may request of an amended or supplemented Prospectus complying with Section 10(a)(3) of the Securities Act.

 

(c)                                   Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the completion of the public offering and sale of the Offered Securities or until any earlier date that the Company notified or notifies the Underwriters as described in the next sentence, did not, does not and will not include any information that conflicted, conflicts or will conflict with the information then contained in the Registration Statement.  If at any time following issuance of an Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of which such

 

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Issuer Free Writing Prospectus conflicted or would conflict with the information then contained in the Registration Statement or as a result of which such Issuer Free Writing Prospectus, if republished immediately following such event or development, would include an untrue statement of a material fact or omitted or would 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, (i) the Company will promptly notify the Underwriters and (ii) the Company will promptly amend or supplement such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

 

(d)                                  The Company will deliver to each Underwriter, without charge, an electronic copy of each Free Writing Prospectus prepared by or on behalf of or used or referred to by the Company as each such Underwriter may reasonably request.  To the extent applicable, each such document furnished to the Underwriters will be identical to any electronically transmitted copies thereof filed with the Commission, except to the extent permitted by Regulation S-T.

 

(e)                                   The Company will advise the Underwriters promptly of any additional action by the PUCN pertaining to the Offered Securities.

 

(f)                                    The Company will furnish promptly to the Representatives and to counsel for the Underwriters one signed copy of the Registration Statement as originally filed and each amendment thereto filed prior to the date hereof and relating to the Offered Securities, including all documents incorporated therein by reference and all consents and exhibits filed therewith, as requested.

 

(g)                                   The Company will deliver promptly to the Underwriters such reasonable number of the following documents as the Underwriters may request: (i) the Prospectus and the Disclosure Package and (ii) to the extent not available via the Commission’s Electronic Data, Gathering, Analysis and Retrieval System (“ EDGAR ”), (1) conformed copies of the Registration Statement (excluding exhibits other than the computation of the ratio of earnings to fixed charges, the Indenture, and this Underwriting Agreement), and (2) any documents incorporated by reference in the Prospectus.

 

(h)                                  In connection with the offering, until the earlier of (i) 180 days following the Closing Date and (ii) the date the Representatives shall have notified the Company of the completion of the resale of the Offered Securities, neither the Company nor any of its affiliates has or will, either alone or with one or more other persons, bid for or purchase for any account in which it or any of its affiliates has a beneficial interest any Offered Securities or attempt to induce any person to purchase any Offered Securities; and neither it nor any of its affiliates will make bids or purchases for the purpose of creating actual, or apparent, active trading in, or of raising the price of, the Offered Securities.

 

(i)                                      From the date hereof through and including the Closing Date, the Company will not, without the prior written consent of the Representatives, offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, or file with the Commission a registration statement under the Securities Act relating to, any United States dollar-

 

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denominated debt securities issued or guaranteed by the Company and having a maturity of more than one year from the date of issue.

 

(j)                                     As soon as practicable, the Company shall make generally available to its security holders and to deliver to the Representatives an earnings statement of the Company (which need not be audited), conforming with the requirements of Section 11(a) of the Securities Act and of the Rules and Regulations (including, at the option of the Company, Rule 158 under the Securities Act), covering a period of at least twelve months beginning after the effective date of the Registration Statement as defined in Rule 158(c) of the Rules and Regulations.

 

(k)                                  The Company will endeavor, in cooperation with the Representatives, to qualify the Offered Securities for offering and sale under the applicable securities laws of such states and other jurisdictions of the United States as the Representatives may designate, and will maintain such qualifications in effect for as long as may be required for the distribution of the Offered Securities; provided, however, that the Company shall not be obligated to qualify as a foreign corporation in any jurisdiction in which it is not so qualified or to file any general consent to service of process in any such jurisdiction or to take any other action that would subject the Company to service of process in any suits (other than those arising out of the offering of the Offered Securities) or to taxation in respect of doing business in any jurisdiction in which it is not otherwise subject.  The Company will file such statements and reports as may be required by the laws of each jurisdiction in which the Offered Securities have been qualified as above provided.  The Company will promptly advise the Representatives of the receipt by the Company of any notification with respect to the suspension of the qualification of the Offered Securities for sale in any such state or jurisdiction or the initiating or threatening of any proceeding for such purpose.

 

(l)                                      The Company will pay all costs incident to the authorization, issuance, sale and delivery of the Offered Securities; the costs incident to the preparation, printing and filing under the Securities Act of the Registration Statement and the Prospectus and any amendments, supplements and exhibits thereto; the costs incident to the preparation, printing and filing of the documents and any amendments and exhibits thereto required to be filed by the Company under the Exchange Act; the costs of distributing the Registration Statement as originally filed and each amendment and post-effective amendment thereto (including exhibits), any preliminary prospectus, the Prospectus and any documents incorporated by reference in any of the foregoing documents; the costs of any filings with the Financial Industry Regulatory Authority, Inc.; fees paid to rating agencies in connection with the rating of the Offered Securities; the fees and expenses of qualifying the Offered Securities under the securities laws of the several jurisdictions as provided in subsection (k) of this Section and of preparing and printing a Blue Sky Memorandum (including fees of counsel to the Underwriters in such connection not to exceed $10,000 in the aggregate); and all other costs and expenses incident to the performance of the Company’s obligations under this Underwriting Agreement (including fees and expenses of the Company’s counsel); provided that, except as provided in this Section 5(l), the Underwriters shall pay their own costs and expenses, including, without limitation, the fees and expenses of counsel to the Underwriters, any transfer taxes on the Offered Securities which they may

 

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sell and the expenses of advertising any offering of the Offered Securities made by the Underwriters.

 

(m)                              The Company shall use the net proceeds received by it from the sale of the Offered Securities pursuant to this Agreement in the manner specified in the Disclosure Package and the Prospectus under the caption “Use of Proceeds.”

 

6.                                       Conditions of the Obligations of the Underwriters .  The obligations of the several Underwriters to purchase and pay for the Offered Securities will be subject to the accuracy of the representations and warranties on the part of the Company herein, to the accuracy of the statements of officers of the Company made pursuant to the provisions hereof, to the performance by the Company of its obligations hereunder and to the following additional conditions precedent:

 

(a)                                  The Prospectus shall have been filed with the Commission within the applicable time period prescribed for such filing (without reliance on Rule 424(b)(8) of the Rules and Regulations and in accordance with Section 5(a) hereof); no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose shall have been initiated or to the knowledge of the Company threatened by the Commission; and all requests for additional information on the part of the Commission shall have been complied with.

 

(b)                                  Hutchison & Steffen, PLLC, counsel to the Company, shall have furnished to the Representatives, a letter addressed to the Underwriters and dated the Closing Date substantially in the form set forth in Exhibit A.

 

(c)                                   Perkins Coie LLP, counsel to the Company, shall have furnished to the Representatives, a letter addressed to the Underwriters and dated the Closing Date substantially in the form set forth in Exhibit B.

 

(d)                                  The Company shall have furnished to the Representatives on the Closing Date a certificate, dated the Closing Date, of its Chief Executive Officer, its President or a Vice President and its Treasurer or an Assistant Treasurer or Controller stating that, to the best of their knowledge after reasonable investigation, the representations and warranties of the Company in Section 2 hereof are true and correct as of the date hereof; the Company has complied with all its agreements contained herein; and the conditions set forth in Sections 6(a),(i) and (j) hereof have been fulfilled.

 

(e)                                   On the date hereof, the Representatives shall have received a letter from the Company’s independent registered public accounting firm addressed to the Underwriters dated as of the date hereof in form and substance reasonably satisfactory to the Representatives.

 

(f)                                    On the Closing Date, the Representatives shall have received a letter dated as of the Closing Date from the Company’s independent registered public accounting firm updating the letter described in subsection (e) in form and substance reasonably satisfactory to the Representatives.

 

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(g)                                   Subsequent to the Applicable Time, there shall not have been (i) any change, or any development or event involving a prospective change, in the financial condition, business, properties or results of operations of the Company taken as a whole, which, in the judgment of the Representatives, is material and adverse and makes it impractical or inadvisable to proceed with completion of the offering or the sale of and payment for the Offered Securities; (ii) any material suspension or material limitation of trading in securities generally on the New York Stock Exchange, or any setting of minimum prices for trading on such exchange; (iii) any suspension of trading of any securities of the Company on any exchange or in the over-the-counter market; (iv) any banking moratorium declared by U.S. Federal or New York authorities; (v) any material disruption in settlements of securities or clearance services in the United States; or (vi) any attack on, or outbreak or escalation of hostilities or act of terrorism involving, the United States, any declaration of war by the United States Congress or any other substantial national or international calamity or emergency, if, in the judgment of the Representatives the effect of any such attack, outbreak, escalation, act, declaration, calamity or emergency makes it impractical or inadvisable to proceed with completion of the offering or sale of and payment for the Offered Securities.

 

(h)                                  Pillsbury Winthrop Shaw Pittman LLP, as counsel for the Underwriters, shall have furnished to the Representatives on the Closing Date such opinions as the Representatives may reasonably require.

 

(i)                                      The order of the PUCN referred to in Section 2(m) hereof shall be in full force and effect and no proceedings to suspend the effectiveness of either such order shall be pending or threatened.

 

(j)                                     Subsequent to the execution of this Underwriting Agreement, the rating assigned by any nationally recognized securities rating agency to any debt securities of the Company shall not have been lowered or any such rating agency shall not have publicly announced that it has under surveillance or review, with possible negative implications, its rating of any debt securities of the Company.

 

(k)                                  On the date hereof and on the Closing Date, counsel to the Underwriters shall have been furnished with such documents and opinions as such counsel may reasonably require for the purpose of enabling such counsel to pass upon the issuance and sale of the Offered Securities as herein contemplated, or in order to evidence the accuracy and completeness of any of the representations and warranties, or the fulfillment of any of the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of the Offered Securities as herein contemplated shall be satisfactory in form and substance to the Representatives and to counsel to the Underwriters.

 

7.                                       Indemnification and Contribution .

 

(a)                                  The Company will indemnify and hold harmless each Underwriter, its partners, members, directors and officers and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Securities Act, against any losses, claims, damages or liabilities, joint

 

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or several, to which such Underwriter may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, the Preliminary Prospectus, the Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus, or any amendment or supplement to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus, or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the Securities Act, arise out of or are based upon the omission or alleged omission to state therein a material fact necessary in order to make the statements therein made, in light of the circumstances under which they were made (in the case of the Registration Statement, necessary in order to make the statements therein not misleading), not misleading, including any losses, claims, damages or liabilities arising out of or based upon the Company’s failure to perform its obligations under Section 5(a) of this Underwriting Agreement, and will reimburse each Underwriter for any legal or other expenses reasonably incurred by such Underwriter in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred; provided, however, that the Company will 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 in or omission or alleged omission from any of such documents in reliance upon and in conformity with written information furnished to the Company by any Underwriters specifically for use therein, it being understood and agreed that the only such information consists of the information described as such in subsection (b) below; provided, further, that the foregoing indemnity with respect to any Preliminary Prospectus shall not inure to the benefit of any Underwriter from whom the person asserting any such losses, claims, damages or liabilities (or actions in respect thereof), in connection with clauses (i) through (iii) below, purchased Offered Securities, or any person controlling such Underwriter, where it shall have been determined by a court of competent jurisdiction by final and non-appealable judgment that (i) prior to the Applicable Time the Company has notified such Underwriter that the Preliminary Prospectus, dated April 9, 2018, contains an untrue statement of material fact or omits to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (ii) such untrue statement or omission of a material fact was corrected in an amended or supplemented Preliminary Prospectus and such corrected Preliminary Prospectus was provided to such Underwriter sufficiently in advance of the Applicable Time so that such corrected Preliminary Prospectus could have been conveyed to such person prior to the Applicable Time and (iii) such corrected Preliminary Prospectus was not conveyed to such person at or prior to the Applicable Time.

 

(b)                                  Each Underwriter will severally and not jointly indemnify and hold harmless the Company, its directors and officers and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, against any losses, claims, damages or liabilities to which the Company may become subject, under the Securities Act or the Exchange Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, the Preliminary Prospectus, the Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus, or any amendment or supplement to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus or arise out of or are based upon the omission or the alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made (in

 

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the case of the Registration Statement, necessary in order to make the statements therein not misleading), 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 reliance upon and in conformity with written information furnished to the Company by such Underwriter specifically for use therein, and will reimburse any legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such loss, claim, damage, liability or action as such expenses are incurred, it being understood and agreed that the only such information furnished by any Underwriter consists solely of the information described as such in Section 12 hereof; provided, however, that the Underwriters shall not be liable for any losses, claims, damages or liabilities arising out of or based upon the Company’s failure to perform its obligations under Section 5(a) of this Underwriting Agreement.

 

(c)                                   Promptly after receipt by an indemnified party under this Section of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under subsection (a) or (b) above, notify the indemnifying party of the commencement thereof; but the omission so to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party under subsection (a) or (b) above except to the extent that it has been materially prejudiced (through forfeiture or impairment of procedural or substantive rights or defenses) by such failure; and provided further that the failure to notify the indemnifying party shall not relieve it from any liability that it may have to an indemnified party otherwise than under subsection (a) or (b) above.  In case any such action is brought against any indemnified party and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except with the consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that the indemnified party shall have the right to employ counsel to represent the indemnified party and their respective controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the indemnified party against the indemnifying party under this Section 7 if the employment of such counsel shall have been authorized in writing by the indemnifying party in connection with the defense of such action, if in the written opinion of counsel to either the indemnifying party or the indemnified party, representation of both parties by the same counsel would be inappropriate due to actual or likely conflicts of interest between them or the indemnifying party shall have failed to employ counsel within a reasonable period of time, and in that event the fees and expenses of one firm of separate counsel (in addition to the fees and expenses of one local counsel in each applicable jurisdiction) shall be paid by the indemnifying party.  No indemnifying party shall, without the prior written consent of the indemnified party (which consent shall not be unreasonably withheld), effect any settlement of any pending or threatened action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement (i) includes an unconditional release of such indemnified party from all liability on any claims that are the subject matter of such action and (ii) does not include a statement as to or an admission of fault, culpability or failure to act by or on behalf of any indemnified party.

 

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(d)                                  If the indemnification provided for in this Section is unavailable or insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Offered Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company on the one hand and the Underwriters on the other in connection with the statements or omissions which resulted in such losses, claims, damages or liabilities as well as any other relevant equitable considerations.  The relative benefits received by the Company on the one hand and the Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds (before deducting expenses) from the offering of the Offered Securities received by the Company bear to the total discounts and commissions received by the Underwriters with respect to the Offered Securities from the Company under this Underwriting Agreement.  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 or the Underwriters and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The amount paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of 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 action or claim which is the subject of this subsection (d).  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 Offered Securities were purchased by it were resold 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 Underwriters’ obligations in this subsection (d) to contribute are several in proportion to their respective purchase obligations and not joint.

 

(e)                                   The obligations of the Company under this Section shall be in addition to any liability which the Company may otherwise have and shall extend, upon the same terms and conditions, to each person, if any, who controls any Underwriter within the meaning of the Securities Act or the Exchange Act; and the obligations of the Underwriters under this Section 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 person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act.

 

8.                                       Default of Underwriters .  If any Underwriter or Underwriters defaults in its or their obligations to purchase the Offered Securities hereunder, and the aggregate principal amount of the Offered Securities that such defaulting Underwriter or Underwriters agreed but failed to purchase does not exceed 10% of the total principal amount of the Offered Securities, the non-defaulting Underwriters may make arrangements satisfactory to the Company for the purchase of such Offered Securities by other persons, including themselves, but if no such arrangements are made by the Closing Date, the non-defaulting Underwriters shall be obligated severally, in

 

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proportion to their respective commitments hereunder, to purchase such Offered Securities that such defaulting Underwriter or Underwriters agreed but failed to purchase.  If any Underwriter or Underwriters so defaults and the aggregate principal amount of the Offered Securities with respect to which such default or defaults occur exceeds 10% of the total principal amount of the Offered Securities and arrangements satisfactory to the non-defaulting Underwriters and the Company for the purchase of such Offered Securities by other persons are not made within 36 hours after such default, this Underwriting Agreement will terminate without liability on the part of the non-defaulting Underwriters or the Company, except as provided in Section 9 hereof.  As used in this Underwriting Agreement, the term “ Underwriter ” includes any person substituted for an Underwriter under this Section.  Nothing herein, including the Company’s obligations pursuant to Section 9 hereof, will relieve a defaulting Underwriter from liability for its default.

 

9.                                       Survival of Certain Representations and Obligations .  The respective indemnities, agreements, representations, warranties and other statements of the Company or its officers and of the several Underwriters set forth in or made pursuant to this Underwriting Agreement will remain in full force and effect, regardless of any investigation, or statement as to the results thereof, made by or on behalf of any Underwriter, the Company or any of their respective representatives, officers or directors or any controlling person, and will survive delivery of and payment for the Offered Securities.  If the purchase of the Offered Securities by the Underwriters is not consummated for any reason other than a default by one or more Underwriters, the Company shall be responsible for the fees and expenses of counsel for the Underwriters in an amount not to exceed $150,000.

 

10.                                No Fiduciary Duty .  The Company acknowledges and agrees that (i) the purchase and sale of the Offered Securities, including the determination of the offering price of such Offered Securities and any related discounts and commissions, is an arm’s-length commercial transaction between the Company, on the one hand, and each Underwriter, on the other hand; (ii) each Underwriter is acting solely in the capacity of an arm’s-length contractual counterparty to the Company in connection with the offering of such Offered Securities and the process leading to such transaction (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an Underwriter of, the Company; (iii) no Underwriter has assumed or will assume an advisory or fiduciary responsibility in favor of the Company with respect to the offering of such Offered Securities or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company on other matters) and no Underwriter has any obligation to the Company with respect to the offering of the Offered Securities except the obligations expressly set forth in this Underwriting Agreement; and (iv) the Underwriters are not advising the Company as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction and 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 by this Underwriting Agreement, and the Underwriters shall have no responsibility or liability to the Company with respect thereto.

 

11.                                Notices .  All communications hereunder will be in writing and, if sent to the Underwriters, will be mailed, delivered or faxed and confirmed to each of (i) Citigroup Global Markets Inc., 388 Greenwich Street, New York, NY 10013, Attention: General Counsel, facsimile: 646-291-1469; (ii) J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY 10179, Attention: Investment Grade Syndicate Desk, facsimile: 212-834-6081; (iii) TD Securities (USA) LLC, 31 West 52nd Street, New York, NY 10019, Attention: Transaction Management Group;

 

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and (iv) U.S. Bancorp Investments, Inc., 214 N. Tryon St., 26th Floor, Charlotte, NC 28202, Attention: Credit Fixed Income, facsimile: 704-335-2393; or, if sent to the Company, will be mailed, delivered or faxed and confirmed to it at Nevada Power Company, 6226 West Sahara Avenue, Las Vegas, NV 89146, Attention: Treasurer.

 

12.                                Underwriter Information .  It is understood and agreed that the only information furnished by any Underwriter to the Company consists of the following information in the Preliminary Prospectus and Prospectus furnished on behalf of each Underwriter to the Company expressly for use therein, as applicable: under the caption “Underwriting,” paragraphs 3 (except for the first sentence), 4, 5 (second sentence only), 6, 7 and 8.

 

13.                                Successors .  This Underwriting Agreement shall inure to the benefit of and be binding upon each Underwriter and the Company and their respective successors.  Nothing expressed or mentioned in this Underwriting Agreement is intended or shall be construed to give any person, firm or corporation, other than the parties hereto and their respective successors and the controlling persons and officers and directors referred to in Section 7 hereof and their heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Underwriting Agreement or any provision herein contained.  This Underwriting Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the parties hereto and respective successors and said controlling persons and officers and directors and their heirs and legal representatives, and for the benefit of no other person, firm or corporation.  No purchaser of Offered Securities shall be deemed to be a successor by reason merely of such purchase.  This Underwriting Agreement and the rights and obligations hereunder shall not be assignable by the Company without the prior written consent of the Representatives (which consent shall not be unreasonably withheld).  This Underwriting Agreement may not be modified or amended except by an instrument in writing signed by the Company and the Representatives.

 

14.                                Counterparts .  This Underwriting Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same agreement.

 

15.                                Applicable Law .  This Underwriting Agreement shall be governed by, and construed in accordance with, the laws of the State of New York without regard to principles of conflicts of laws.

 

16.                                Waiver of Jury .  TO THE FULLEST EXTENT PERMITTED BY LAW, EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS UNDERWRITING AGREEMENT.  EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED.

 

17.                                Submission to Jurisdiction .  The Company hereby submits to the exclusive jurisdiction of the Federal and state courts in the Borough of Manhattan in The City of New York, New York in any suit or proceeding arising out of or relating to this Underwriting Agreement or the transactions contemplated hereby.

 

20



 

If the foregoing is in accordance with the Underwriters’ understanding of our agreement, kindly sign and return to us one of the counterparts hereof, whereupon it will become a binding agreement between the Company and the several Underwriters in accordance with its terms.

 

 

Very truly yours,

 

 

 

NEVADA POWER COMPANY

 

 

 

 

By:

/s/ E. Kevin Bethel

 

Name:

E. Kevin Bethel

 

Title:

Senior Vice President and Chief Financial Officer

 

 

 

The foregoing Underwriting Agreement is hereby confirmed and accepted as of the date first above written.

 

 

 

CITIGROUP GLOBAL MARKETS INC.

 

 

 

 

By:

/s/ Adam D. Bordner

 

Name:

Adam D. Bordner

 

Title:

Director

 

 

 

 

J.P. MORGAN SECURITIES LLC

 

 

 

 

By:

/s/ Robert Bottamedi

 

Name:

Robert Bottamedi

 

Title:

Vice President

 

 

 

 

TD SECURITIES (USA) LLC

 

 

 

 

By:

/s/ Wei-Ming Lee

 

Name:

Wei-Ming Lee

 

Title:

Managing Director, DCM

 

 

 

 

U.S. BANCORP INVESTMENTS, INC.

 

 

 

 

By:

/s/ Phillip Bennett

 

Name:

Phillip Bennett

 

Title:

Managing Director

 

 

 

 

As Representatives of each of the Underwriters

 

 



 

SCHEDULE A

 

Underwriters

 

Aggregate Principal
Amount of Offered Securities

 

Citigroup Global Markets Inc.

 

$

100,625,000

 

J.P. Morgan Securities LLC

 

100,625,000

 

TD Securities (USA) LLC

 

100,625,000

 

U.S. Bancorp Investments, Inc.

 

100,625,000

 

PNC Capital Markets LLC

 

43,128,000

 

BMO Capital Markets Corp.

 

21,562,000

 

CIBC World Markets Corp.

 

21,562,000

 

KeyBanc Capital Markets Inc.

 

21,562,000

 

Santander Investment Securities Inc.

 

21,562,000

 

SMBC Nikko Securities America, Inc.

 

21,562,000

 

SunTrust Robinson Humphrey, Inc.

 

21,562,000

 

Total

 

$

575,000,000

 

 



 

SCHEDULE B

 

Issuer Free Writing Prospectus

(Relating to Preliminary Prospectus Supplement

Dated April 9, 2018)

Filed Pursuant to Rule 433(d)

Registration No. 333-213897

 

NEVADA POWER COMPANY

 

FINAL PRICING TERM SHEET

 

April 9, 2018

 

Issuer:

 

Nevada Power Company

 

 

 

Legal Format:

 

SEC-Registered

 

 

 

Issue:

 

2.75% General and Refunding Mortgage Notes, Series BB, due 2020

 

 

 

Offering Size:

 

$575,000,000 in aggregate principal amount

 

 

 

Net Proceeds (before expenses) to Issuer:

 

$573,436,000

 

 

 

Coupon and Coupon Payment Dates:

 

2.75% per annum, payable semi-annually on each April 15 and October 15, commencing October 15, 2018

 

 

 

Trade Date:

 

April 9, 2018

 

 

 

Settlement Date:

 

April 12, 2018 (T+3)

 

 

 

 

 

It is expected that delivery of the General and Refunding Mortgage Notes will be made to investors on or about April 12, 2018, which will be the third business day following the date hereof (such settlement being referred to as “T+3”). Under Rule 15c6-1 of the Securities Exchange Act of 1934, as amended, trades in the secondary market generally are required to settle in two business days unless the parties to any such trade expressly agree otherwise. Accordingly, purchasers who wish to trade the General and Refunding Mortgage Notes on the date of pricing will be required, by virtue of the fact that settlement is T+3, to specify an alternative settlement cycle at the time of any such trade to prevent failed settlement and should consult their own advisors.

 

 

 

Maturity Date:

 

April 15, 2020

 



 

Benchmark Treasury:

 

2.25% due March 31, 2020

 

 

 

Benchmark Treasury Yield:

 

2.291%

 

 

 

Spread to Benchmark Treasury:

 

+47 basis points

 

 

 

Re-offer Yield:

 

2.761%

 

 

 

Price to Public:

 

99.978% of the principal amount

 

 

 

Expected Ratings 1 :

 

      by Moody’s Investors Service, Inc.
      by S&P Global Ratings
      by Fitch Ratings, Inc.

 

 

 

Optional Redemption:

 

Make-whole call at 10 basis points over the Benchmark Treasury Yield 

 

 

 

Joint Book-Running Managers:

 

Citigroup Global Markets Inc.
J.P. Morgan Securities LLC
TD Securities (USA) LLC
U.S. Bancorp Investments, Inc.
PNC Capital Markets LLC

 

 

 

Co-Managers:

 

BMO Capital Markets Corp.
CIBC World Markets Corp.
KeyBanc Capital Markets Inc.
Santander Investment Securities Inc.
SMBC Nikko Securities America, Inc.
SunTrust Robinson Humphrey, Inc.

 

 

 

CUSIP:

 

641423 CB2

 

 

 

ISIN:

 

US641423CB21

 

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. toll-free at 1-800-831-9146, J.P. Morgan Securities LLC collect at 212-834-4533, TD Securities (USA)

 


1   These expected securities ratings have been provided by Moody’s Investors Service, Inc., S&P Global Ratings and Fitch Ratings, Inc. None of these ratings are a recommendation to buy, sell or hold these securities. Each rating may be subject to revision or withdrawal at any time.  Each security rating agency has its own methodology for assigning ratings, and, accordingly, each rating should be evaluated independently of any other rating. No report of any rating agency is incorporated by reference herein.

 



 

LLC toll-free at 1-855-495-9846 or U.S. Bancorp Investments, Inc. toll-free at 1-877-558-2607.

 



 

EXHIBIT A

 

{Letterhead of Hutchison & Steffen, PLLC]

 

April   , 2018

 

Citigroup Global Markets Inc.

J.P. Morgan Securities LLC

TD Securities (USA) LLC

U.S. Bancorp Investments, Inc.

 

As representatives of the several Underwriters listed on Exhibit A hereto.

 

RE:                            Nevada Power Company

 

Ladies and Gentlemen:

 

We have acted as special Nevada counsel to Nevada Power Company, a Nevada corporation (the “ Opinion Party ”), in connection with the issuance and sale by the Opinion Party of $575,000,000.00 aggregate principal amount of the Opinion Party’s 2.75% General and Refunding Mortgage Notes, Series BB, due 2020 (the “ Offered Securities ”), pursuant to (a) the Underwriting Agreement dated April   , 2018 between the Opinion Party and the underwriters, for whom you are acting as representatives (the “ Underwriting Agreement ”), (b) the registration statement on Form S-3 (File No. 333-213897) (the “ Registration Statement ”), as filed with the Securities and Exchange Commission, and (c) the final prospectus supplement dated April   , 2018, including a base prospectus dated October 18, 2016 (together, the “ Prospectus ”). The Offered Securities will be issued under the General and Refunding Mortgage Indenture, dated as of May 1, 2001, as amended and supplemented to the date hereof, including by the Officer’s Certificate dated the date hereof (the “ Series BB Officer’s Certificate ”) establishing the terms of the Offered Securities (as so amended and supplemented, the “ Indenture ”), between the Opinion Party and The Bank of New York Mellon Trust Company, N.A., as trustee (the “ Trustee ”). This opinion is delivered to you at the request of the Opinion Party and pursuant to Section 6(b) of the Underwriting Agreement.  Except as otherwise indicated herein, any capitalized term used and not otherwise defined herein has the meaning assigned to such term in the Underwriting Agreement.

 

This opinion letter is being furnished to the addressees hereof (subject to all of the qualifications, exceptions, assumptions, definitions, exclusions and other limitations set forth herein) (this “ Opinion Letter ”).

 

1.               Documents Reviewed

 

For purposes of these opinions, we have reviewed the executed originals or copies of the following documents:

 

1.1                                The Underwriting Agreement;

 

1.2                                The Registration Statement;

 

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1.3                                The Preliminary Prospectus;

 

1.4                                The Prospectus;

 

1.5                                Disclosure Package;

 

1.6                                The Indenture;

 

1.7                                The Offered Securities;

 

1.8                                The Opinion Party’s Restated Articles of Incorporation, dated July 28, 1999, as certified by the Opinion Party and the Secretary of State of the State of Nevada;

 

1.9                                The Opinion Party’s Amended and Restated By-Laws, dated December 27, 2017, as certified by the Opinion Party;

 

1.10                         The unanimous written consent of the Opinion Party’s Board of Directors, dated         , 2018, as certified by the Opinion Party;

 

1.11                         The Notice of Filing of Security Instruments by Nevada Power Company, a Public Utility, dated May 18, 2001;

 

1.12                         The Company Order of the Opinion Party, dated April   , 2018, issued pursuant to Sections 1.04, 4.01(b), and 4.03(b)(i) of the Indenture;

 

1.13                         The Series BB Officer’s Certificate;

 

1.14                         The Officer’s Certificate to Hutchison & Steffen, PLLC, dated April   , 2018 (“ Officer’s Certificate ”);

 

1.15                         The Property Certificate of the Opinion Party to Hutchison & Steffen, PLLC, dated April   , 2018 (the “ Property Certificate ”);

 

1.16                         The Officer’s Certificate of even date herewith issued pursuant to Sections 1.04, 4.01(e), and 4.03(b)(ii) of the Indenture (the “ Additional Officer’s Certificate ”);

 

1.17                         The Certificate of Existence with Status in Good Standing with respect to the Opinion Party, dated April   , 2018, issued by the Secretary of State of the State of Nevada (the “ Good Standing Certificate ”);

 

1.18                         A copy of the order dated September 21, 2016 (Docket No. 16-07004) (the “ Order ”) issued by the Public Utilities Commission of the State of Nevada (the “ PUCN ”);

 

1.19                         The Policy of Title Insurance issued by First American Title Insurance Company, dated May 24, 2001, Policy No. LV-864000A-JS, including endorsements thereto dated October 18, 2001, October 29, 2002, and May 23, 2017, respectively (collectively, the “ 2001 Title Policy ”);

 

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1.20                         The Policy of Title Insurance issued by First American Title Insurance Company, dated August 18, 2003, Policy No. 42683-JS, including endorsements thereto of even date therewith and endorsements thereto dated May 23, 2017 (the “ 2003 Title Policy ”);

 

We have further made such inquiries and investigations of law as we have deemed necessary or appropriate for the purpose of rendering these opinions.  We have made no other independent investigation or inquiry.

 

The documents listed in paragraphs 1.1 through 1.7 above are referred to herein collectively as the “ Transaction Documents .”  The documents listed in paragraphs 1.8 through 1.12 above are referred to herein collectively as the “ Corporate Documents .”  The Officer’s Certificate, the Property Certificate, the Series BB Officer’s Certificate, the Additional Officer’s Certificate, and the Good Standing Certificate are, collectively, the “ Certificates .”

 

As used herein, all references to (1) “ Nevada Laws ” shall mean any laws, statutes, rules and regulations of the State of Nevada in effect on the date of this Opinion Letter; (2) “courts” or “governmental agencies” shall mean and are limited to those of the State of Nevada, excluding their political subdivisions and local agencies, and excluding any international, foreign or federal governments.

 

2.               Assumptions, Exceptions and Qualifications

 

2.1                                In rendering the opinions set forth below, we have, with your consent and without any independent investigation or inquiry, assumed:

 

2.1.1                      The genuineness of signatures not witnessed by us, the authenticity of the Transaction Documents, Corporate Documents, and Certificates submitted to us as originals, and the conformity to originals of the Transaction Documents, Corporate Documents, and Certificates submitted to us as copies;

 

2.1.2                      The conduct of the parties to the transactions contemplated by the Transaction Documents complies with any requirement of good faith, fair dealing and conscionability;

 

2.1.3                      There has not been any mutual mistake of fact or fraud, duress or undue influence;

 

2.1.4                      The Transaction Documents accurately describe the mutual understanding of the parties as to all matters contained therein and that no other agreements or undertakings exist between the parties relating to the transactions contemplated by, or the subject matter of, the Transaction Documents;

 

2.1.5                      The necessary legal capacity of all natural persons signing the Transaction Documents, Corporate Documents, and Certificates;

 

2.1.6                      The Transaction Documents have been duly and validly authorized, signed, and delivered by each party thereto and have been or will be properly acknowledged, where appropriate, except that we make no such assumption with respect to the Opinion Party;

 

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2.1.7                      All parties to the Transaction Documents have the requisite corporate or organizational power and authority to enter into the Transaction Documents and to perform their obligations and be responsible for their liabilities thereunder, except that we make no such assumption with respect to the Opinion Party;

 

2.1.8                      Each party executing the Transaction Documents has been duly and validly formed and is in good standing in all relevant jurisdictions, except that we make no such assumption with respect to the Opinion Party and its compliance with the laws of the State of Nevada;

 

2.1.9                      Except as expressly provided in the opinion paragraphs below, all consents and approvals to any contract rights of the Opinion Party required to be obtained by parties to the Transaction Documents have been either obtained, or will be obtained, from all applicable third parties and governmental authorities, or no consents or approvals are required; and

 

2.1.10               The certifications, representations, and warranties as to matters of fact in the Transaction Documents, Corporate Documents, and Certificates are accurate and may be relied upon by us.

 

2.2                                The opinions set forth below are subject to the following limitations, exceptions and qualifications:

 

2.2.1                      The opinions set forth in paragraph 3.1 below with respect to the valid existence and good standing of the Opinion Party under the laws of the State of Nevada are based solely upon our review of the Good Standing Certificate dated April   , 2018 and our review of the official website of the Secretary of State of the State of Nevada on April   , 2018;

 

2.2.2                      The opinions set forth in paragraph 3.3 below are based solely upon our review of the Officer’s Certificate;

 

2.2.3                      The enforceability of the Transaction Documents and the availability of the rights and remedies provided for therein, may be limited by applicable bankruptcy, fraudulent transfer, fraudulent conveyance, insolvency, reorganization, moratorium, liquidation, conservatorship or rearrangement laws or equitable principles, relating to, limiting or affecting the enforcement of creditors’, assignees’ and secured parties’ rights, generally.  In addition, such opinions are subject to the effect of general principles of equity, including without limitation, concepts of materiality, reasonableness, public policy, good faith and fair dealing, conscionability, and the possible availability or unavailability of specific performance or injunctive relief, regardless of whether considered in a proceeding in equity or at law, and the exercise of judicial discretion in accordance with courts and Nevada Laws;

 

2.2.4                      We express no opinion as to any other document other than as set forth herein or any matter other than as expressly provided in the opinions set forth in this Opinion Letter, and we disclaim any obligation to provide an opinion on any other matter;

 

2.2.5                      We do not express any opinion concerning any law other than the laws of the State of Nevada (excluding state “Blue Sky” laws and regulations, and any laws, rules

 

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or regulations relating to gaming, antitrust, environmental, land use, pension, employee benefit, insolvency, securities, fraudulent transfer or other fraud or misrepresentation, antiterrorism or money laundering, on which we express no opinion).  Although certain members of this firm are admitted to practice in other states, we have not examined the laws of any state other than the State of Nevada nor have we consulted with members of this firm who are admitted in other jurisdictions with respect to the laws of such jurisdictions;

 

2.2.6                      The opinions in this letter are limited in all respects to the laws of the State of Nevada now in effect, to the matters set forth herein and as of the date hereof, and we assume no obligation and expressly decline any undertaking to revise, update, or supplement any of these opinions to reflect any fact or circumstance that may hereafter change or come to our attention or any changes in law or procedure that may hereafter occur or become effective, which would cause us to modify, in whole or in part, any of our opinions expressed in this Opinion Letter;

 

2.2.7                      We express no opinion on federal, county or municipal law;

 

2.2.8                      We express no opinion as to:

 

(i)                                      the creation, validity or perfection of any lien on personal property to which Article 8 or 9 of the Uniform Commercial Code of Nevada (the “ Code ”) does not apply and in which a security interest cannot be perfected by filing a financing statement or fixture filing, by possession, or by control under the Code;

 

(ii)                                   the creation, validity or perfection of a security interest in any property required to be perfected in any states other than the State of Nevada, pursuant to Section 104.9301 et seq. of the Code;

 

(iii)                                any provision of the Transaction Documents that purports to continue or reinstate any lien after all obligations and liabilities under all of the Transaction Documents have been paid and performed in full;

 

(iv)                               the validity and enforceability of any provisions in the Transaction Documents purporting to exculpate, release or indemnify any party from or against, or waive or otherwise limit liability for, or establish non-culpability of any lender or lienholder for, any liability, loss or action to the extent contrary to public policy;

 

(v)                                  the legality, validity, binding nature or enforceability of any provision of the Transaction Documents to the effect that rights or remedies are not exclusive, that every right or remedy is cumulative and may be exercised in addition to any other right or remedy, that the election of some particular remedy does not preclude recourse to one or more others or that failure to exercise or delay in exercising rights or remedies will not operate as a waiver of any such right or remedy;

 

(vi)                               the creation, validity or perfection of a security interest in any cash or cash equivalents;

 

(vii)                            any security interest that is terminated or released;

 

A- 5



 

(viii)                         any provision in the Transaction Documents providing for exclusive jurisdiction of particular courts, agency proceedings, tribunals, or panels or purporting to waive, alter or limit, or restrict access to: (a) legal or equitable rights and remedies, including, without limitation, competent jurisdiction, venue, the right to trial by jury, the manner or method of service of process, and objections to the laying of venue or forum on the basis of forum non conveniens , or (b) statutory rights, including the waiver or release of, or the agreement not to assert, setoffs, claims, counterclaims, defenses (including without limitation any applicable statute of limitations), causes of action, rights or remedies, and the right to receive notice or to be allowed to cure, reinstate or redeem in the event of default, to the extent such provisions are not available under applicable Nevada law;

 

(ix)                               the reasonableness of any provision in the Transaction Documents that provides for (a) liquidated damages for the breach of a contract, or (b) an increase in the rate of interest or imposing a late payment charge, forfeiture or penalty (prepayment penalty or otherwise) in the event of delinquency or default, in each case, to the extent such provisions are deemed to constitute a penalty;

 

(x)                                  the location of filing of any financing statements other than any financing statements to be filed in the State of Nevada; or

 

(xi)                               the effect of provisions with respect to a party’s right to collect a deficiency except upon compliance with applicable Nevada law.

 

2.2.9                      We express no opinion regarding the authorization, registration, business qualification or good standing of NV Energy, Inc., a Nevada corporation, or Berkshire Hathaway Energy Company, an Iowa corporation;

 

2.2.10               We are assuming that with respect to any collateral described in the Transaction Documents, other than real property, under the Code:  (i) value has been given and the collateral exists, and (ii) the collateral descriptions in the Transaction Documents are adequate for purposes of Section 104.9108 of the Code;

 

2.2.11               We assume, with your permission, that there are no actions, suits, proceedings, or investigations (whether formal or informal), instituted, threatened in writing or  pending before or by any federal or state court, governmental, regulatory, or administrative agency, or by any other person, in connection with any transaction contemplated by the Transaction Documents which would (i) have any effect upon or relate to, the authorization, delivery, consummation  or performance of any transaction or action contemplated by the Transaction Documents or (ii) prohibit, limit, interfere with or restrain any transaction or action contemplated by the Transaction Documents, except that the statements made in paragraph 3.8 are not based on any assumption made in this paragraph 2.2.11;

 

2.2.12               The opinions set forth in paragraph 3.10 below as to the identities of all real property acquired by the Opinion Party since August 18, 2003 are based solely on our review of the Property Certificate without any independent investigation or inquiry;

 

2.2.13               Requirements in the Transaction Documents specifying that provisions thereof may only be waived in writing may not be valid, binding or enforceable to the

 

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extent that an oral agreement or an implied agreement by trade practice or course of conduct has been created modifying any provision of such documents;

 

2.2.14               Whenever a statement herein is qualified by the phrase “to our knowledge,” “to the best of our knowledge,” or “known to us” or a similar phrase, we have, with your consent and without any independent investigation, advised you concerning only the conscious awareness of the facts in the possession of those attorneys who have provided legal services in connection with the Transaction Documents and this Opinion Letter and, solely as to information relevant to a particular opinion issue or confirmation regarding a particular factual matter (e.g., pending or threatened legal proceedings), those attorneys at Hutchison & Steffen, PLLC who are primarily responsible for providing the response concerning that particular opinion issue or confirmation; and

 

2.2.15               This Opinion Letter is provided to you as a legal opinion only, and not as a guarantee or warranty of any matters discussed herein.  The opinions expressed herein are limited to those matters expressly set forth, and no opinion is to be inferred or implied beyond the matters expressly so stated.

 

3.               Opinions

 

Based on the foregoing and relying thereon, and subject to the assumptions, limitations, exceptions and qualifications set forth above, it is our opinion that:

 

3.1                                The Opinion Party has been duly organized and is validly existing and in good standing under the laws of the State of Nevada as a corporation;

 

3.2                                The Opinion Party has the corporate power and authority to own, lease and operate its property and conduct its business as described in the Disclosure Package and the Prospectus, and to authorize, execute, deliver and perform its obligations under the Transaction Documents, including without limitation the authorization, offering, issuance and sale of the Offered Securities;

 

3.3                                All shares of issued and outstanding capital stock of the Opinion Party are owned, beneficially and of record, by NV Energy, Inc., a Nevada corporation.  All shares of issued and outstanding capital stock of NV Energy, Inc. are owned, indirectly, by Berkshire Hathaway Energy Company, an Iowa corporation;

 

3.4                                The Underwriting Agreement has been duly and validly authorized, executed and delivered by the Opinion Party;

 

3.5                                To the extent Nevada law governs, the Indenture constitutes a valid and binding agreement on the part of the Opinion Party, enforceable against the Opinion Party in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by equitable principles generally;

 

3.6                                The Offered Securities have been duly and validly authorized, and, to the extent Nevada law governs such issues, upon authentication thereof by the Trustee in accordance

 

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with the Indenture and payment therefor as provided in the Underwriting Agreement, will be validly issued and outstanding, enforceable against the Opinion Party in accordance with their terms, except as enforcement may be limited by applicable bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by equitable principles generally;

 

3.7                                The PUCN has entered an appropriate Order, which to our knowledge remains in full force and effect on the date of this letter, which authorizes or permits the issuance of the Offered Securities by the Opinion Party; and such Order constitutes the only approval, authorization, consent or other order of, or notification to, any governmental body legally required by the State of Nevada in connection with the regulation of the Opinion Party as a public utility for the authorization of the execution, delivery, and performance by the Opinion Party of the Underwriting Agreement and the issuance of the Offered Securities by the Opinion Party pursuant to the terms of the Underwriting Agreement.  To our knowledge, other than the Order, no consent, approval, authorization or order of, or filing or registration by the Opinion Party with, any Nevada court, Nevada governmental agency or third party is required for the consummation by the Opinion Party of the transactions contemplated by the Transaction Documents or the performance by the Opinion Party of its obligations thereunder, except such as have been obtained or made;

 

3.8                                To the best of our knowledge, there are no legal or governmental actions, suits or proceedings before any courts or governmental agencies now pending, threatened against, or involving the Opinion Party or any of its subsidiaries (i) of a character that are required to be disclosed in the Registration Statement, the Disclosure Package, or the Prospectus and which are not adequately disclosed in the Registration Statement, the Disclosure Package, or the Prospectus; (ii) that, if determined adversely to the Opinion Party or any of its subsidiaries would be reasonably likely to have, individually or in the aggregate, a Material Adverse Effect or a material adverse effect on the ability of the Opinion Party to perform its obligations under the Transaction Documents; or (iii) that would call into question the validity of the Transaction Documents or the authority of the Opinion Party to enter into the Transaction Documents to which it is a party;

 

3.9                                The execution, delivery and performance by the Opinion Party of the Transaction Documents to which it is a party and the issuance and sale of the Offered Securities and the use of proceeds of the Offered Securities as designated in the Disclosure Package and he Prospectus do not and will not:  (A) conflict with the corporate charter or by-laws of the Opinion Party; or (B) result in a violation of any Nevada statute, rule, regulation, order, judgment or decree of any courts or governmental agencies in Nevada having jurisdiction over the Opinion Party or any of its affiliates or any of their properties, where any such conflict, encumbrance, breach, default or violation under this clause (B) is reasonably likely to have, individually or in the aggregate, a Material Adverse Effect or a material adverse effect on the ability of the Opinion Party to perform its obligations under the Transaction Documents;

 

3.10                         Except for minor defects or irregularities, the Opinion Party has good and marketable title to all real property acquired in fee title (and not subsequently disposed of) by the Opinion Party in the State of Nevada since August 13, 2003, subject only to the lien of the Indenture and Permitted Liens (as defined in the Indenture);

 

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3.11                         Except as otherwise set forth in this Opinion Letter, the exceptions from coverage identified on Schedule B to the 2001 Title Policy and held by the Trustee, constitute Permitted Liens; provided, however , that in giving this opinion we have relied on the Property Certificate without any independent investigation, to the effect, among other things, that such exceptions meet the non-materiality and/or other qualifications set forth in clauses (c), (d), (e) and/or (g) in the definition of Permitted Liens in the Indenture;

 

3.12                         Except as otherwise set forth in this Opinion Letter, the exceptions from coverage referred to on Schedule B to the 2003 Title Policy held by the Trustee constitute Permitted Liens; provided, however , that in giving this opinion we have relied on the Property Certificate without any independent investigation, to the effect, among other things, that such exceptions meet the non-materiality and/or other qualifications set forth in clauses (c), (d), (e) and/or (g) in the definition of Permitted Liens in the Indenture;

 

3.13                         The Indenture, which was properly filed and recorded, constitutes a valid mortgage lien on the real properties located in the State of Nevada that are specifically or generally described or referred to in the Indenture as being subject to the Lien thereof (and not subsequently released from such Lien), enforceable against the Opinion Party in accordance with its terms, provided, however, that, except as stated in paragraph 3.10, we express no opinion regarding the priority of any mortgage lien so recorded. The security interest granted by the Opinion Party to the Trustee in the Indenture constitutes a duly perfected security interest in the fixtures and personal property located in the State of Nevada which are specifically or generally described or referred to in the Indenture as being subject to the security interest granted therein (and not subsequently released from such Lien), to the extent that, under the Code, a security interest in such property can be perfected by the filing of a financing statement, which perfected security interest is enforceable against the Opinion Party in accordance with its terms, provided, however, that, except as stated in paragraph 3.10, we express no opinion regarding the priority of any lien so perfected.  The Indenture by its terms effectively subjects to the Lien thereof all property located in the State of Nevada (other than Excepted Property, as defined in the Indenture) acquired by the Opinion Party after the date of the execution and delivery of the Indenture (and not subsequently released from such Lien), subject to no Lien prior to the Lien of the Indenture except Permitted Liens, any Lien thereon existing at the time of such acquisition and any Lien for unpaid portions of the purchase price thereof placed thereon at the time of such acquisition, and also except as otherwise provided in Article XIII of the Indenture and except for possible claims of a trustee in bankruptcy and possible claims and taxes of the federal government;

 

3.14                         No taxes (as distinguished from filing and recordation fees) are payable to the State of Nevada, or any subdivision or agency thereof, in connection with the execution and delivery of the Underwriting Agreement establishing the series and terms of the Offered Securities or the issuance and sale of the Offered Securities, and all filing and recording fees as to the Indenture have been paid.

 

This Opinion Letter is made with the knowledge and understanding that the addressees  (but no other persons) may rely thereon in connection with the transactions provided for in the Transaction Documents and is solely for the addressees’ benefit, and this Opinion Letter may not be disclosed to or relied upon by any person other than the addressees, except that (i) this Opinion Letter may be disclosed to independent auditors, bank examiners, legal counsel, regulatory and

 

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other governmental authorities having jurisdiction or regulatory authority over the respective addressee requesting (or requiring) such disclosure and pursuant to lawful order or legal process of any court or governmental agency; (ii) this Opinion Letter may be furnished for information (but not reliance) to third parties in connection with their requests submitted under the Freedom of Information Act (5 U.S.C. §552), unless determined to be exempt from disclosure in accordance with 5 U.S.C. §552, (iii) this Opinion Letter may be disclosed to and relied upon by the respective addressees’ successors by merger or acquisition; (iv) there are no intended third party beneficiaries of this Opinion Letter; and (v) this Opinion Letter may be disclosed in connection with any legal action to which you are a party arising out of your participation in the subject matter of the Transaction Documents.  However, this Opinion Letter specifically cannot be used or relied upon in any way in any advertisement, solicitation, prospectus or sales information regarding sale to others of the financial interests acquired by or as a result of the Transaction Documents.

 

 

Very truly yours,

 

 

 

 

 

HUTCHISON & STEFFEN, PLLC

 

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EXHIBIT A

 

Citigroup Global Markets Inc.

J.P. Morgan Securities LLC

TD Securities (USA) LLC

U.S. Bancorp Investments, Inc.

PNC Capital Markets LLC

BMO Capital Markets Corp.

CIBC World Markets Corp.

KeyBanc Capital Markets Inc.

Santander Investment Securities Inc.

SMBC Nikko Securities America, Inc.

SunTrust Robinson Humphrey, Inc.

 

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EXHIBIT B

 

{Letterhead of Perkins Coie LLP}

 

April    , 2018

 

Citigroup Global Markets Inc.

J.P. Morgan Securities LLC

TD Securities (USA) LLC

U.S. Bancorp Investments, Inc.

 

As representatives of the several Underwriters listed on Exhibit A hereto.

 

Re:                              Nevada Power Company

 

Ladies and Gentlemen:

 

We have acted as special counsel to Nevada Power Company, a Nevada corporation (the “ Company ”), in connection with the issuance and sale by the Company of $575,000,000 aggregate principal amount of the Company’s 2.75% General and Refunding Mortgage Notes, Series BB, due 2020 (the “ Notes ”), pursuant to (a) the Underwriting Agreement dated April    , 2018 between the Company and the Underwriters, for whom you are acting as Representatives, (the “ Underwriting Agreement ”), (b) the registration statement on Form S-3 (File No. 333-213897) (the “ Registration Statement ”), as filed with the Securities and Exchange Commission (the “ Commission ”), (c) the preliminary prospectus supplement, subject to completion, dated April   , 2018, relating to the issuance and sale of the Notes, including a base prospectus dated October 18, 2016 (together, the “Preliminary Prospectus”) and (d) the final prospectus supplement dated April   , 2018, including a base prospectus dated October 18, 2016 (together, the “ Prospectus ”). The Notes will be issued under the General and Refunding Mortgage Indenture, dated as of May 1, 2001, as amended and supplemented to the date hereof, including by the Officer’s Certificate establishing the terms of the Notes (the “ Indenture ”), between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “ Trustee ”). This opinion is delivered to you at the request of the Company and pursuant to Section 6(c) of the Underwriting Agreement.  Except as otherwise indicated herein, any capitalized term used and not otherwise defined herein has the meaning assigned to such term in the Underwriting Agreement.

 

A.                                     Documents and Matters Examined

 

In the course of our representation as described above, we have made such legal and factual examinations and inquiries as we have deemed advisable or necessary for the purpose of rendering this opinion, and we have examined originals, or copies certified or otherwise identified to our satisfaction, of the documents described in Exhibit B hereto.  The documents listed in Exhibit B are herein collectively referred to as the “Documents.”  Our opinions (i.e., those paragraphs in the “Opinions” portion of this letter numbered C-1 through C-11) are based

 

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upon a review of the Documents and, with your consent, we have reviewed no other documents, corporate records, certificates or other statements as a basis for the opinions expressed herein.

 

We have participated in interviews of various officers of the Company and have received from them representations concerning various facts underlying this opinion.  As to certain matters of fact bearing upon the opinions expressed herein, we have, with your consent and without further investigation, relied upon information in certificates and orders issued by government officials, offices and agencies, copies of which have been provided to you, such as certificates or orders as to due incorporation, corporate good standing or regulatory requirements for the issuance of the Notes (collectively, the “ Public Authority Documents ”) (and all opinions based on Public Authority Documents are as of the date of such Public Authority Documents and not as of the date of this opinion letter), information in the Officer’s Certificate described in Exhibit B , a copy of which has been made available to you, and the representations and warranties of the Company and you in the Underwriting Agreement.  We have not independently verified the facts so relied on.

 

With your permission, we have also relied, without investigation or verification, as to all matters governed by the laws of the State of Nevada upon an opinion letter, dated the date of this opinion, to you from Hutchison & Steffen, PLLC, Nevada counsel to the Company.

 

B.                                     Assumptions

 

In rendering the opinions and assurances expressed herein, we have further relied upon the following assumptions, the accuracy of which we have not independently verified:

 

B-1                             Each document submitted to us for review is accurate and complete, each such document that is an original is authentic, each such document that is a copy conforms to an authentic original, and all signatures on each such document are genuine.

 

B-2                             The Indenture has been duly authorized, executed and delivered by the Trustee and the Notes have been duly authenticated by the Trustee.

 

B-3                             The Underwriting Agreement, the Indenture and the Notes (the “ Transaction Documents ”) and the other documents reviewed by us are valid and binding obligations of each party thereto, other than the Company, enforceable against such party in accordance with their respective terms, and each such party has satisfied all legal requirements pertaining to its status relevant to its right to enforce the Transaction Documents against the Company.

 

B-4                             The Company is validly existing and in good standing under the laws of the State of Nevada. The Company has the corporate power and authority to enter into the Transaction Documents and perform its obligations under the Transaction Documents, and the Transaction Documents have been duly authorized, executed and delivered by the Company.

 

B-5                             The parties to the Underwriting Agreement have performed their respective obligations thereunder and will receive the consideration to be delivered to them at the closing of the issuance and sale of the Notes pursuant to the terms of the Underwriting Agreement.

 

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B-6                             The representations of the parties (other than the Company) in the Underwriting Agreement are true and correct and the representations of the Company in the Underwriting Agreement as to factual matters are true and correct.

 

B-7                             Each Public Authority Document reviewed by us for the purpose of rendering this opinion letter is accurate, complete and authentic, and all official public records (including their proper indexing and filing) are accurate and complete.

 

B-8                             There are no agreements or understandings among the parties, written or oral, and there is no usage of trade or course of prior dealing among the parties that would, in either case, define, supplement or qualify the terms of the Documents.

 

B-9                             All individuals have sufficient legal capacity to perform their functions with respect to the Documents and the transactions contemplated by the Documents.

 

Whenever a statement herein is qualified by the phrase “to our knowledge,” or by any other phrase of similar import, or where it is noted that nothing has been brought to our attention, it means that the opinion or confirmation stated is based solely upon the conscious awareness of such information by (a) the attorney who signs this opinion letter on behalf of Perkins Coie LLP, (b) any attorney at Perkins Coie LLP who has been actively involved in negotiating or preparing the Documents or preparing this opinion letter, and (c) solely as to information relevant to a particular opinion issue or confirmation regarding a particular factual matter (e.g., pending or threatened legal proceedings), any attorney at Perkins Coie LLP who is primarily responsible for providing the response concerning that particular opinion issue or confirmation.  We have not undertaken, nor were we obligated or expected to undertake, an independent investigation to determine the accuracy of the facts or other information as to which our knowledge is sought, and any limited inquiry undertaken by us during the preparation of this opinion letter should not be regarded as such an investigation.  No inference as to our knowledge of any matters bearing on the accuracy of any such statement should be drawn from the fact of our representation of the Company.

 

C.                                     Opinions

 

Based on the foregoing and subject to the qualifications and exclusions stated below, we express the following opinions:

 

C-1                             The Indenture constitutes a valid and binding agreement on the part of the Company, enforceable against the Company in accordance with its terms.

 

C-2                             The Notes, when executed by the Company and authenticated by the Trustee in accordance with the Indenture and delivered against payment of the purchase price as provided in the Underwriting Agreement, will be validly issued and outstanding, enforceable against the Company in accordance with their terms and entitled to the benefit and security of the Indenture ratably with all other securities outstanding thereunder.

 

C-3                             The execution and delivery of the Transaction Documents by the Company and the performance by the Company of its obligations thereunder:  (i) to our

 

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knowledge, will not constitute a breach of, or default under, or result in the creation or imposition of any lien, charge or encumbrance (other than the lien of the Indenture) upon any property or assets of the Company pursuant to any agreement filed by the Company as an exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2017 (each, a “ Material Agreement ”); and (ii) to our knowledge, will not result in any violation of any statutory laws that counsel exercising customary professional judgment would in our experience reasonably recognize as typically applicable to agreements similar to the Transaction Documents, except, in the case of (i) and (ii), as would not reasonably be likely to have a Material Adverse Effect.

 

C-4                             To our knowledge, and subject to paragraph E-6 and except for matters related to U.S. state securities laws and regulations and non-U.S. laws and regulations, no approval, authorization, consent or order of, or filing with any governmental or regulatory body or agency is required in connection with the issuance and sale of the Notes by the Company, the consummation by the Company of the transactions contemplated by the Underwriting Agreement, or the due authorization, execution or delivery of the Transaction Documents by the Company, except such as (i) have been obtained or made by the Company and are in full force and effect or (ii) if not obtained or made, would not reasonably be likely to have a Material Adverse Effect on the validity or enforceability of the Notes or the transactions contemplated by the Transaction Documents or the ability of the Company to perform its obligations thereunder.

 

C-5                             The documents incorporated by reference in the Registration Statement, the Preliminary Prospectus and the Prospectus as they pertain to the Company (other than the financial statements and financial schedules therein, as to which we express no opinion), when they were filed with the Commission, complied as to form in all material respects with the requirements of the Exchange Act.

 

C-6                             Without independent verification of the factual accuracy, completeness or fairness of any statements made in the Registration Statement, the Preliminary Prospectus and the Prospectus, each of the Registration Statement and Prospectus (except for the financial statements and financial schedules and other financial information included therein, as to which we express no opinion) appears on its face to be appropriately responsive in all material respects to the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder.

 

C-7                             The statements in the Preliminary Prospectus and the Prospectus under the captions “Description of General and Refunding Mortgage Securities—Description of the G&R Indenture” and “Description of the Notes,” in each case insofar as the statements purport to summarize the provisions of the Indenture and the Notes, fairly summarize such provisions in all material respects.

 

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C-8                             The Company is not, and immediately upon receipt of payment for the Notes will not be, an “investment company” required to be registered under the Investment Company Act.

 

C-9                             The Registration Statement was declared effective under the Securities Act on October 18, 2016; the Preliminary Prospectus was filed with the Commission pursuant to Rule 424(b) on April   , 2018 in a manner and within the time period required by Rule 424(b) under the Securities Act; the Prospectus was filed with the Commission pursuant to Rule 424(b) on April   , 2018 in a manner and within the time period required by Rule 424(b) under the Securities Act; and, based solely on the contents of the Commission’s stop orders webpage located at www.sec.gov/litigation/stoporders.shtml, as of    a.m. on the date hereof, no stop order suspending the effectiveness of the Registration Statement has been issued under the Securities Act and, to our knowledge, no proceedings for that purpose have been initiated by the Commission.

 

C-10                      To the extent New York state law governs such matters, the security interest granted by the Company to the Trustee in the Indenture has attached within the meaning of Section 9-203 of the Uniform Commercial Code of the State of New York (the “UCCNY”) with respect to such portion of the Mortgaged Property (as defined in the Indenture) that constitutes personal property or fixtures in which a security interest can be granted under Article 9 of the UCCNY.

 

C-11                      The Indenture has been duly qualified under the Trust Indenture Act.

 

D.                                     Confirmations

 

We have participated in conferences with officers and other representatives of the Company, you and your representatives and representatives of the independent auditors of the Company at which the contents of the Registration Statement, the Disclosure Package and the Prospectus (and portions of certain documents incorporated by reference therein) and any amendments or supplements thereto were discussed.  Although we assume no responsibility for the factual accuracy, completeness or fairness of any statements (other than as set forth in paragraph C-7 above, subject to the assumptions, exclusions and qualifications set forth in this opinion) made in (a) the Registration Statement or any amendment thereto, (b) the Disclosure Package or any amendment or supplement thereto, (c) the Prospectus or any amendment or supplement thereto, or (d) the documents incorporated by reference in the Prospectus or any further amendment or supplement thereto, nothing has come to our attention that causes us to believe that:

 

(a)                                  the Registration Statement (except for the financial statements and financial schedules and other financial information included therein, as to which we make no statement), as of the most recent date the Registration Statement became effective pursuant to Rule 430B(f)(2) of the Securities Act, 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, or

 

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(b)                                  the Disclosure Package (except for the financial statements and financial schedules and other financial information included therein, as to which we make no statement), as of the Applicable Time, contained any untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or

 

(c)                                   the Prospectus (except for the financial statements and financial schedules and other financial information included therein, as to which we make no statement) as of its date and as of the date hereof contained or contains any untrue statement of a material fact or omitted or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

E.                                     Qualifications; Exclusions

 

E-1                              The opinions expressed herein are subject to bankruptcy, insolvency and other similar laws affecting the rights and remedies of creditors generally and general principles of equity.

 

E-2                              Except to the extent expressly noted to the contrary in this opinion letter, we express no opinion as to the following matters, or the effect, if any, that they may have on the opinions expressed herein:

 

(a)                                  U.S. and non-U.S. federal securities laws and regulations, state “blue sky” laws and regulations, the Investment Company Act, the Trust Indenture Act, and laws and regulations relating to commodity (and other) futures and indices and other similar instruments, including the anti-fraud provisions of such laws;

 

(b)                                  federal and state laws and regulations dealing with (i) antitrust and unfair competition; (ii) filing and notice requirements, other than requirements applicable to charter-related documents such as a certificate of merger; (iii) environmental matters; (iv) land use and subdivisions; (v) tax; (vi) patents, copyrights, trademarks and intellectual property; (vii) governmental procurement; (viii) racketeering; (ix) health and safety; (x) labor and employment; (xi) national and local emergencies; (xii) requirements and provisions of the USA Patriot Act or Foreign Corrupt Practices Act, terrorism, foreign assets control, and foreign investment review or approval; (xiii) possible judicial deference to acts of sovereign states; (xiv) criminal and civil forfeiture; (xv) statutes of general application to the extent they provide for criminal prosecution (e.g., mail fraud, wire fraud and money laundering statutes); (xvi) privacy; and (xvii) regulation of lenders or opinion recipients, or the conduct of their business, and that may relate to the Transaction Documents or the transactions contemplated by the Documents;

 

(c)                                   Federal Reserve Board margin regulations;

 

(d)                                  compliance with fiduciary duty requirements;

 

(e)                                   the statutes and ordinances, the administrative decisions, and the rules and regulations of counties, cities, towns, municipalities and special political subdivisions (whether created or enabled through legislative action at the federal, state or regional

 

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level), and judicial decisions to the extent that they deal with any such statutes, ordinances, administrative decisions, rules or regulations;

 

(f)                                    fraudulent transfer and fraudulent conveyance laws;

 

(g)                                   pension and employee benefit laws and regulations;

 

(h)                                  the Company’s title to or the condition of title of any property; and

 

(i)                                      the creation, attachment, perfection, priority or enforcement of liens or encumbrances.

 

E-3                              We express no opinion as to the enforceability of:

 

(a)                                  provisions related to the waiver of rights, remedies, defenses and obligations or waivers of good faith and reasonableness, including, without limitation, attempts to waive applicable statutes of limitations (including by shortening or extending) or rights to a jury trial, or attempts to change or waive rules of evidence or to fix the method or quantum of proof;

 

(b)                                  provisions permitting the pursuit of inconsistent or cumulative remedies;

 

(c)                                   provisions purporting to indemnify, release, exculpate, hold harmless or exempt any party from liability for its own gross negligence, recklessness, willful misconduct, intentional harm, criminal violations, unlawful conduct, strict product liability, other wrongdoing, or for securities law liabilities;

 

(d)                                  provisions establishing or waiving evidentiary standards;

 

(e)                                   provisions providing for payment of attorneys’ fees incurred in a dispute or enforcement action (i) to a party other than the prevailing party, (ii) at a procedural level beyond the trial or initial dispute resolution level, or (iii) purporting to limit judicial discretion regarding determination of the amount of such fees and related costs;

 

(f)                                    provisions appointing a party as attorney in fact for another party;

 

(g)                                   provisions for penalties, liquidated damages, acceleration of future amounts due (other than principal) without appropriate discount to present value, charging interest on interest, late charges, increased interest after default or maturity or prepayment premiums;

 

(h)                                  self-help provisions or rights of set off;

 

(i)                                      choice of law, choice of forum, consent to jurisdictions (both as to personal jurisdiction and subject matter jurisdiction) and service of process provisions;

 

(j)                                     arbitration provisions;

 

B- 7



 

(k)                                  provisions purporting to (i) limit the Company’s ability to transfer its rights in collateral in a manner contrary to UCC Section 9-401, (ii) provide for a security interest in proceeds with respect to personal property comprising collateral other than as set forth under UCC Section 9-315 or (iii) permit any person or entity to vote or otherwise exercise any rights with respect to any collateral absent compliance with the requirements of applicable laws and regulations as to the exercise of rights with respect to such collateral;

 

(l)                                      provisions that provide for the appointment of a receiver, trustee, conservator or liquidator in any manner except in compliance with applicable law;

 

(m)                              a guaranty or surety agreement to the extent that, in the absence of a valid waiver or consent of the guarantor or surety, action by a creditor impairs the value of collateral securing guaranteed debt or a surety obligation to the detriment of the guarantor or surety, or the guaranteed debt or surety obligation is materially modified, or the creditor otherwise takes or fails to take any action that prejudices the guarantor or surety;

 

(n)                                  covenants not to compete;

 

(o)                                  confession of judgment provisions;

 

(p)                                  voting and appointment agreements;

 

(q)                                  any guaranty, grant of security interest, or other obligation to the extent it includes a swap obligation of any person or entity that is not an eligible contract participant under the Commodity Exchange Act;

 

(r)                                     provisions that are unconscionable as a matter of law; and

 

(s)                                    provisions that would permit the exercise of remedies without consideration of the materiality of (i) the breach and (ii) the consequence of the breach to the party seeking enforcement.

 

E-4                              With respect to our opinion in paragraph C-3, we express no opinion as to any violation of a Material Agreement not readily ascertainable from the face of the Material Agreement or arising from any cross-default provision insofar as it relates to a default under an agreement that is not a Material Agreement or arising under a covenant of a financial or numerical nature or requiring computation or provisions therein relating to the occurrence of a “material adverse event” or words of similar import.

 

E-5                              To the extent that one or more of the Transaction Documents requires arbitration of disputes, we express no opinion as to whether an arbitrator would enforce provisions of the applicable document(s) in the same manner as such provisions would be enforced by a court of competent jurisdiction.

 

E-6                              We express no opinion as to matters relating to laws and regulations (including regulatory developments), including approvals, authorizations, consents or orders

 

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of, or filings with any governmental or regulatory body or agency, regarding or affecting the generation, transmission, distribution or sale of electricity, the supply, transportation or distribution of natural gas, hydroelectric projects, including hydroelectric licensing, coal and mining operations, the protection of the environment, pipeline health and safety matters, or the regulation of public utility holding companies and utilities, including the Federal Power Act and the Energy Policy Act of 2005.

 

E-7                              In rendering the opinions, we have not undertaken any research for purposes of determining whether the Company or any of the transactions contemplated by the Documents are subject to any law or other governmental requirement other than to those laws and requirements which an attorney practicing law in the State of New York exercising customary professional diligence would generally recognize as being applicable to transactions of the type contemplated in the Documents.

 

For purposes of expressing the opinions herein, (a) we have examined the laws of the State of New York and, to the extent applicable, the federal laws of the United States of America; (b) we have assumed that those laws govern the construction, interpretation and enforcement of the Transaction Documents, whether or not any of the Transaction Documents includes a choice-of-law provision stipulating the application of the laws of some other jurisdiction and (c) our opinions are limited to such laws.  We have not reviewed, nor are our opinions in any way predicated on an examination of, the laws of any other jurisdiction, and we expressly disclaim responsibility for advising you as to the effect, if any, that the laws of any other jurisdiction may have on the opinions set forth herein.

 

The opinions expressed herein (a) are limited to matters expressly stated herein, and no other opinions may be implied or inferred, including that we have performed any actions in order to provide the legal opinions and statements contained herein other than as expressly set forth, and (b) are as of the date hereof (except as otherwise noted above).  We disclaim any undertaking or obligation to update these opinions for events and circumstances occurring after the date hereof (including changes in law or facts, or as to facts relating to prior events that are subsequently brought to our attention), or to consider their applicability or correctness as to persons or entities other than the addressees.

 

This letter is for the benefit of, and may be relied upon only by you, and then solely in connection with the closing of the sale of the Notes.  Neither this letter nor any extract herefrom or reference hereto may be published or delivered to any other person by you, and this letter may not be relied upon for any other purpose without our express written permission.

 

 

 

Very truly yours,

 

 

 

 

 

PERKINS COIE LLP

 

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EXHIBIT A

 

Citigroup Global Markets Inc.

J.P. Morgan Securities LLC

TD Securities (USA) LLC

U.S. Bancorp Investments, Inc.

PNC Capital Markets LLC

BMO Capital Markets Corp.

CIBC World Markets Corp.

KeyBanc Capital Markets Inc.

Santander Investment Securities Inc.

SMBC Nikko Securities America, Inc.

SunTrust Robinson Humphrey, Inc.

 

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EXHIBIT B

 

(a)                                  The Underwriting Agreement.

 

(b)                                  The Registration Statement.

 

(c)                                   The Preliminary Prospectus and the documents incorporated by reference therein.

 

(d)                                  The Issuer Free Writing Prospectus, attached as Schedule B to the Underwriting Agreement, filed pursuant to Rule 433.

 

(e)                                   The Prospectus and the documents incorporated by reference therein.

 

(f)                                    The Indenture.

 

(g)                                   The Notes.

 

(h)                                  The documents and certificates delivered at the closing of the issuance and sale of the Notes.

 

(i)                                      The Company’s Restated Articles of Incorporation, dated July 28, 1999, as certified by the Company and Secretary of State of the State of Nevada.

 

(j)                                     The Company’s Amended and Restated By-Laws, dated December 27, 2017, as certified by the Company.

 

(k)                                  The unanimous written consent of the Company’s Board of Directors, dated         , 2018 as certified by the Company.

 

(l)                                      Officer’s Certificate to Perkins Coie LLP, dated April   , 2018 (“ Officer’s Certificate ”).

 

(m)                              The Public Authority Documents, including certified copies of orders in the following proceeding: Public Utilities Commission of Nevada, Docket No. 16-07004.

 

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Exhibit 4.1

 

NEVADA POWER COMPANY

 

OFFICER’S CERTIFICATE

 

April 12, 2018

 

I, the undersigned officer of Nevada Power Company (the “Company”), do hereby certify that I am an Authorized Officer of the Company as such term is defined in the Indenture (as defined herein). I am delivering this certificate pursuant to the authority granted in the Board Resolutions of the Company dated April 6, 2018, and Sections 1.04, 2.01, 3.01, 4.01(a) and 4.03(b)(i) of the General and Refunding Mortgage Indenture dated as of May 1, 2001, as heretofore amended and supplemented to the date hereof (as heretofore amended and supplemented, the “Indenture”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (the “Trustee”). Terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Indenture. Based upon the foregoing, I hereby certify on behalf of the Company as follows:

 

1.                                       The terms and conditions of the Securities of the series established in this Officer’s Certificate to be issued under the Indenture are as follows (the lettered subdivisions set forth in this Section 1 corresponding to the lettered subdivisions of Section 3.01 of the Indenture):

 

(a)                                  The Securities of such series shall be designated “2.75% General and Refunding Mortgage Notes, Series BB, due 2020” (the “Series BB Notes”).

 

(b)                                  There shall be no limit upon the aggregate principal amount of the Series BB Notes that may be authenticated and delivered under the Indenture. The Series BB Notes shall be initially authenticated and delivered in the aggregate principal amount of $575,000,000.

 

(c)                                   Interest on the Series BB Notes shall be payable to the Persons in whose names such Securities are registered at the close of business on the Regular Record Date for such interest, except as otherwise expressly provided in the form of such Securities attached hereto as Exhibit A .

 

(d)                                  The Series BB Notes shall mature and the principal thereof shall be due and payable together with all accrued and unpaid interest thereon on April 15, 2020.

 

(e)                                   The Series BB Notes shall bear interest at 2.75% per annum and such interest shall be payable at the times provided in the form of such Securities attached hereto as Exhibit A .

 

(f)                                    The corporate trust agency office of The Bank of New York Mellon Trust Company, N.A. at 101 Barclay Street in New York, New York 10286 shall be the place at which (i) the principal of and interest and premium, if any, on the Series BB Notes shall be payable, (ii) registration of transfer of the Series BB Notes may be effected and (iii) exchanges of the Series BB Notes may be effected. The Corporate Trust Office of The Bank of New York Mellon Trust Company, N.A., at 400 South Hope Street, Suite 

 



 

500, Los Angeles, California 90071 shall be the place where notices and demands to or upon the Company in respect of the Series BB Notes and the Indenture may be served; and The Bank of New York Mellon Trust Company, N.A. shall be the Paying Agent and Security Registrar for the Series BB Notes; provided , however , that the Company reserves the right to change, by one or more Officer’s Certificates, any such place or the Paying Agent and Security Registrar; and provided , further , that the Company reserves the right to designate, by one or more Officer’s Certificates, its principal office in Las Vegas, Nevada as any such place or itself or any of its Subsidiaries as the Security Registrar; provided , however , that there shall be only a single Security Registrar for the Series BB Notes.

 

(g)                                   Optional Redemption .

 

(i)                                      The Company may redeem the Series BB Notes, at its option, in whole at any time or in part from time to time, at a redemption price equal to the greater of (A) 100% of the principal amount of the Series BB Notes being redeemed and (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Series BB Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 10 basis points (the “Make-Whole Amount”), plus, in each case, accrued interest thereon to the date of redemption. For purposes of determining the Make-Whole Amount, the following definitions apply:

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series BB 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 Series BB Notes.

 

“Independent Investment Banker” means an investment banking institution of international standing appointed by the Company.

 

“Reference Treasury Dealer” means a primary U.S. government securities dealer in New York City appointed by the Company.

 

“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date).

 

“Treasury Rate” means the rate per annum equal to the semi-annual equivalent or interpolated (on a day-count basis) yield to maturity of the

 

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applicable Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Reference Treasury Dealer Quotation for the applicable redemption date.

 

The Trustee shall have no responsibility for any calculation or determination in respect of the establishment of the redemption price of the Notes and shall be entitled to receive and rely conclusively upon an Officer’s Certificate that states the redemption price.

 

(ii)                                   Notice of any redemption will be mailed (and as long as the Series BB Notes being redeemed are represented by one or more global securities, transmitted in accordance with the standard procedures of The Depository Trust Company (“DTC”) therefor) at least 30 days but not more than 60 days before the redemption date to each registered holder of Series BB Notes.

 

(iii)                                If less than all of the Series BB Notes are to be redeemed at any time, selection of the Series BB Notes for redemption will be made by the Security Registrar by lot, pro rata or such other method as the Security Registrar deems fair and appropriate.

 

(h)                                  The Company is not required to make mandatory redemption or sinking fund payments with respect to the Series BB Notes.

 

(i)                                      The Series BB Notes are issuable only in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

(j)                                     Not applicable.

 

(k)                                  Not applicable.

 

(l)                                      Not applicable.

 

(m)                              See subsection (e) above.

 

(n)                                  Not applicable.

 

(o)                                  Not applicable.

 

(p)                                  Not applicable.

 

(q)                                  Book-entry; Delivery and Form .

 

(i)                                      Form and Dating .

 

The Series BB Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit A attached hereto. The Series BB Notes may have notations, legends or endorsements required by law, securities exchange rule or usage.

 

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Each Series BB Note shall be dated the date of its authentication. The Series BB Notes shall be in denominations of $2,000 and integral multiples of $1,000 in excess thereof.

 

The terms and provisions contained in the Series BB Notes shall constitute, and are hereby expressly made, a part of this Officer’s Certificate, and the Company, by its execution and delivery of this Officer’s Certificate, expressly agrees to such terms and provisions and to be bound thereby. However, to the extent any provision of any Series BB Note conflicts with the express provisions of this Officer’s Certificate or the Indenture, the provisions of this Officer’s Certificate or the Indenture, as applicable, shall govern and be controlling.

 

Series BB Notes initially shall be issued in global form and shall be substantially in the form of Exhibit A hereto. Series BB Notes issued in definitive form shall also be substantially in the form of Exhibit A attached hereto. Each Global Note shall represent such aggregate principal amount of the outstanding Series BB Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal amount of outstanding Series BB Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Series BB Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Series BB Notes represented thereby shall be made by the Trustee, the Depositary or the Note Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 1(q)(iv) of this Officer’s Certificate.

 

(ii)                                   Authentication .

 

The Trustee or an Authenticating Agent shall authenticate by delivery and execution of a Trustee’s Certificate of Authentication in the form set forth in Section 2.02 of the Indenture (A) the Series  BB Notes for original issue on the Issue Date in the initial aggregate principal amount of $575,000,000 (B) additional Series BB Notes for original issue from time to time after the Issue Date in such principal amounts as may be set forth in a Company Order, in each case, upon receipt of a Company Order, which Company Order shall specify (x) the amount of Series BB Notes to be authenticated and the date of original issue thereof and (y) the amount of Series BB Notes to be issued in global form or definitive form. The aggregate principal amount of the Series BB Notes outstanding at any time may not exceed $575,000,000 plus such additional principal amounts as may be issued and authenticated pursuant to clause (B) of the preceding sentence of this paragraph.

 

(iii)                                Security Registrar, Paying Agent and Depositary .

 

The Company initially appoints the Trustee to act as the Security Registrar and Paying Agent for the Series BB Notes. Upon the occurrence of an Event of Default set forth in Sections 10.01(d) or 10.01(e) of the Indenture, the Trustee shall serve as Paying Agent for the Series BB Notes. Pursuant to Section 6.02 of the Indenture, the Company hereby designates the corporate trust agency office of the Trustee as its office or agency

 

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at 101 Barclay Street in the City and State of New York where payment of the Series BB Notes shall be made and where the registration of transfer or exchange of the Series BB Notes may be effected; and the Corporate Trust Office of the Trustee at 400 South Hope Street, Suite 500, Los Angeles, California 90071 as the place where notices and demands to or upon the Company in respect of the Series BB Notes and the Indenture may be served. The Company may also from time to time designate one or more other offices or agencies with respect to the Series BB Notes and may from time to time rescind any of these designations in accordance with the terms provided in Section 6.02 of the Indenture.

 

The Company initially appoints DTC to act as Depositary with respect to the Global Notes. The Trustee has been appointed by DTC to act as Note Custodian with respect to the Global Notes.

 

(iv)                               Transfer and Exchange .

 

(1)                Transfer and Exchange of Global Notes . A Global Note may not be transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary. All Global Notes shall be exchanged by the Company for Definitive Notes if:

 

a.                                       the Company delivers to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary for the Global Notes or that it is no longer a clearing agency registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and, in either case, a successor Depositary is not appointed by the Company within 90 days after the date of such notice from the Depositary; or

 

b.                                       the Company in its sole discretion notifies the Trustee in writing that it elects to cause issuance of the Series BB Notes in certificated form.

 

Upon the occurrence of either of the preceding events in a. or b. above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 3.06 and 3.09 of the Indenture. Every Series BB Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to Sections 3.06 and 3.09 of the Indenture, shall be authenticated and delivered in the form of Exhibit A attached hereto. A Global Note may not be exchanged for another Series BB Note other than as provided in this Section 1(q)(iv)(1); however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 1(q)(iv)(2) of this Officer’s Certificate.

 

(2)                                  Transfer and Exchange of Beneficial Interests in the Global Notes . The Company acknowledges that the transfer and exchange of beneficial interests in the

 

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Global Notes will be effected through the Depositary, in accordance with the Applicable Procedures.

 

(3)                                  Transfer and Exchange of Definitive Notes for Definitive Notes . Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 1(q)(iv)(3), the Security Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Security Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Security Registrar duly executed by such Holder or by his attorney, duly authorized in writing.

 

(4)                                  Legends . The following legend shall appear on the face of all Global Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Officer’s Certificate:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE OFFICER’S CERTIFICATE UNDER THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED OR PERMITTED UNDER THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 1(q)(iv)(1) OF THE OFFICER’S CERTIFICATE UNDER THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 3.09 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY OR ANY SUCCESSOR THERETO.”

 

Additionally, so long as DTC is the Depositary with respect to any Global Note, each such Global Note shall also bear a legend in substantially the following form:

 

“UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY, TO THE COMPANY OR ANY SUCCESSOR THERETO 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 THE DEPOSITARY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), 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.”

 

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(5)                                  Cancellation and/or Adjustment of Global Notes . At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be returned to or retained and canceled by the Trustee in accordance with Section 3.09 of the Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Series BB Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note, by the Trustee, the Note Custodian or the Depositary at the direction of the Trustee, to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note, by the Trustee, the Note Custodian or by the Depositary at the direction of the Trustee, to reflect such increase.

 

(6)                                  General Provisions Relating to Transfers and Exchanges . To permit registrations of transfers and exchanges, subject to Section 1(q)(iv) of this Officer’s Certificate, the Company shall execute and, upon the Company’s order, the Trustee or an Authenticating Agent shall authenticate Global Notes and Definitive Notes at the Security Registrar’s request.

 

(v)                                  Outstanding Series BB Notes .

 

Notwithstanding the definition of “Outstanding” in Section 1.01 of the Indenture, Series BB Notes that the Company, a Subsidiary of the Company or an Affiliate of the Company offers to purchase or acquires pursuant to an offer, exchange offer, tender offer or otherwise shall not be deemed to be owned by the Company, such Subsidiary or such Affiliate until legal title to such Series BB Notes passes to the Company, such Subsidiary or such Affiliate, as the case may be.

 

(r)                                     Not applicable.

 

(s)                                    Not applicable.

 

(t)                                     Not applicable.

 

(u)                                  Additional Conditions and Definitions .

 

(i)                                      Additional Conditions to Section 9.01 of Indenture .

 

Notwithstanding the provisions of Section 9.01 of the Indenture, no Series BB Note shall be deemed to have been paid pursuant to such provisions unless the Company shall have delivered to the Trustee either: (a) an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date of this Officer’s Certificate, there has been a change in the applicable federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall

 

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confirm that, the Holders of the Outstanding Series BB Notes will not recognize income, gain or loss for federal income tax purposes as a result of such satisfaction and discharge and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such satisfaction and discharge had not occurred or (b) (i) an instrument wherein the Company, notwithstanding the satisfaction and discharge of the Company’s indebtedness in respect of the Series BB Notes, shall assume the obligation (which shall be absolute and unconditional) to irrevocably deposit with the Trustee such additional sums of money, if any, or additional Eligible Obligations, if any, or any combination thereof, at such time or times, as shall be necessary, together with the money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and premium, if any, and interest due and to become due on such Series BB Notes or portions thereof; provided, however, that such instrument may state that the Company’s obligation to make additional deposits as aforesaid shall be subject to the delivery to the Company by the Trustee of a notice asserting the deficiency accompanied by an opinion of an Independent public Accountant of nationally recognized standing showing the calculation thereof; and (ii) an Opinion of Counsel of tax counsel in the United States reasonably acceptable to the Trustee to the effect that the Holders of the Outstanding Series BB Notes will not recognize income, gain or loss for federal income tax purposes as a result of such satisfaction and discharge and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such satisfaction and discharge had not occurred.

 

(ii)                                   Modifications Requiring Consent .

 

In addition to the provisions of Section 14.02 of the Indenture, no supplemental indenture shall alter or waive any of the provisions with respect to the redemption of the Series BB Notes set forth in Section 1(g) hereof without the consent of each Holder of Series BB Notes affected thereby.

 

(iii)                                Certain Definitions .

 

Set forth below are certain defined terms used in this Officer’s Certificate. Reference is made to the Indenture for the definitions of any other capitalized terms used herein for which no definition is provided herein.

 

Affiliate ” of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For purposes of this definition, “control,” as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise; provided that beneficial ownership of 10% or more of the Voting Stock of a Person shall be deemed to be control. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

 

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Applicable Procedures ” means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange.

 

Bankruptcy Law ” means Title 11, U.S. Code or any similar federal or state law for the relief of debtors.

 

Beneficial Owner ” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” shall be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only upon the occurrence of a subsequent condition. The terms “Beneficially Owns” and “Beneficially Owned” have a corresponding meaning.

 

Default ” means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default as defined in the Indenture.

 

Definitive Note ” means a certificated Series BB Note registered in the name of the Holder thereof and issued in accordance with Section 1(q)(iv) of this Officer’s Certificate, in the form of Exhibit A hereto except that such Series BB Note shall not bear the Global Note Legend.

 

Depositary ” means, with respect to the Series BB Notes issuable or issued in whole or in part in global form, the Person specified in Section 1(q)(iii) of this Officer’s Certificate as the Depositary with respect to the Series BB Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the applicable provision of this Officer’s Certificate or the Indenture.

 

Euroclear ” means Euroclear Bank S.A./N.V.

 

Event of Default ” means an Event of Default as defined in the Indenture.

 

Global Note Legend ” means the first legend and, if applicable, the second legend set forth in Section 1(q)(iv)(4) of this Officer’s Certificate.

 

Global Notes ” means, individually and collectively, each of the Series BB Notes issued or issuable in the global form of Exhibit A hereto issued in accordance with Sections 1(q)(i) of this Officer’s Certificate, and that bears the Global Note Legend and that is deposited with or on behalf of and registered in the name of the Depositary.

 

Issue Date ” means the first date on which any Series BB Notes are issued, authenticated and delivered under the Indenture and this Officer’s Certificate.

 

Note Custodian ” means the Trustee, as custodian for the Depositary with respect to the Series BB Notes in global form, or any successor entity thereto.

 

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Subsidiary ” means, with respect to any specified Person:

 

(1)                                  any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

 

(2)                                  any partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are that Person or one or more Subsidiaries of that Person (or any combination thereof).

 

Voting Stock ” of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the board of directors of such Person.

 

2.                                       The undersigned has read all of the covenants and conditions contained in the Indenture, and the definitions in the Indenture relating thereto, relating to the issuance of the Series BB Notes and in respect of compliance with which this certificate is made.

 

The statements contained in this certificate are based upon the familiarity of the undersigned with the Indenture, the documents accompanying this certificate, and upon discussions by the undersigned with officers and employees of the Company familiar with the matters set forth herein.

 

In the opinion of the undersigned, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenants and conditions have been complied with.

 

In the opinion of the undersigned, such conditions and covenants have been complied with.

 

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IN WITNESS WHEREOF , the undersigned has executed this Officer’s Certificate as of the date first written above.

 

 

 

By:

 

 

Name: E. Kevin Bethel

 

Title: Senior Vice President and Chief Financial Officer

 

 

Receipt acknowledged on
April     , 2018

 

THE BANK OF NEW YORK MELLON

 

TRUST COMPANY, N.A., as Trustee

 

 

 

 

 

By:

 

 

Name:

 

 

Title:

 

 

 



 

Exhibit A

 

Form of Series BB Notes

 

[Insert the Global Note Legend, if applicable, pursuant to the provisions of the Indenture and the Officer’s Certificate]

 

NEVADA POWER COMPANY

2.75% General and Refunding Mortgage Note, Series BB, due 2020

 

Original Interest Accrual Date:

April 12, 2018

 

Redeemable by Company:

Yes x No o

Stated Maturity:

April 15, 2020

 

 

 

Interest Rate:

2.75%

 

Redemption Date:

See Below

Interest Payment Dates:

April 15 and October 15

 

Redemption Price:

See Below

Regular Record Dates:

April 1 and October 1

 

 

 

 

The Security is not a Discount Security
within the meaning of the within-mentioned Indenture.

 


 

CUSIP No. 641423 CB2

 

2.75% General and Refunding Mortgage Notes, Series BB, due 2020

 

No. R-

 

$                        

 

Nevada Power Company, a Nevada corporation (the “Company”) promises to pay to              or registered assigns, the principal sum of                  Dollars on April 15, 2020.

 

1.                                       Interest.  The Company promises to pay interest on the principal amount of this Series BB Note at 2.75% per annum, from April 12, 2018 until maturity. The Company shall pay interest semi-annually in arrears on April 15 and October 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an “ Interest Payment Date ”). Interest on the Series BB Notes shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from Original Interest Accrual Date specified above; provided that if there is no existing Default in the payment of interest, and if this Series BB Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date, except in the case of the original issuance of Series BB Notes, in which case interest shall accrue from the Original Interest Accrual Date specified above; provided, further, that the first Interest Payment Date shall be October 15, 2018. The Company shall pay interest (including postpetition interest in any proceeding under the Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the rate borne on the Series BB Notes; it shall pay interest

 

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(including post-petition interest in any proceeding under the Bankruptcy Law) on overdue installments of interest, if any, (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

 

2.                                       Method of Payment. The Company shall pay interest on the Series BB Notes (except Defaulted Interest) to the Persons who are registered Holders of Series BB Notes at the close of business on the April 1 and October 1 next preceding the Interest Payment Date, even if such Series BB Notes are canceled after such record date and on or before such Interest Payment Date, except as provided in Section 3.07 of the Indenture with respect to Defaulted Interest. The Series BB Notes shall be payable as to principal and premium and interest at the office or agency of the Company maintained for such purpose within the City and State of New York, or, at the option of the Company, payment of interest may be made by check mailed to the Holders of Series BB Notes at their addresses set forth in the register of Holders, and provided that payment by wire transfer of immediately available funds shall be required with respect to principal of, and interest and premium, if any, on, all Global Notes and all other Series BB Notes the Holders of which shall have provided wire transfer instructions to the Company or the Paying Agent. Such payment shall be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts.

 

3.                                       Paying Agent and Security Registrar. Initially, The Bank of New York Mellon Trust Company, N.A., the Trustee under the Indenture, shall act as Paying Agent and Security Registrar. The Company may change any Paying Agent or Security Registrar without notice to any Holder of Series BB Notes. The Company or any of its Subsidiaries may act in any such capacity.

 

4.                                       Indenture; Security. This Series BB Note is one of a duly authorized issue of Securities of the Company, issued and issuable in one or more series under and equally secured by a General and Refunding Mortgage Indenture, dated as of May 1, 2001 (such Indenture as originally executed and delivered and as supplemented or amended from time to time thereafter, together with any constituent instruments establishing the terms of particular Securities, being herein called the “ Indenture ”), between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (herein called the “ Trustee ,” which term includes any successor Trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the property mortgaged, pledged and held in trust, the nature and extent of the security and the respective rights, limitations of rights, duties and immunities of the Company, the Trustee and the Holders of the Securities thereunder and of the terms and conditions upon which the Securities are, and are to be, authenticated and delivered and secured. The acceptance of this Series BB Note shall be deemed to constitute the consent and agreement by the Holder hereof to all of the terms and provisions of the Indenture. This Series BB Note is one of the series designated above. The terms of the Series BB Notes include those stated in the Indenture, including the Officer’s Certificate dated April 12, 2018 (the “ Officer’s Certificate ”), and those made part of the Indenture by reference to the Trust Indenture Act. The Series BB Notes are subject to all such terms, and Holders of Series BB Notes are referred to the Indenture, including the Officer’s Certificate, and such Act for a statement of such terms. To the extent any provision of this Series BB Note conflicts with the express provisions of the Indenture or the Officer’s Certificate, the provisions of the Indenture and the Officer’s

 

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Certificate shall govern and be controlling. The Series BB Notes are general obligations of the Company initially limited to $575,000,000 aggregate principal amount in the case of Series BB Notes issued on the Issue Date.

 

All Outstanding Securities, including the Series BB Notes, issued under the Indenture are secured by the lien of the Indenture on the properties of the Company described in the Indenture.

 

5.                                       Optional Redemption.  The Company may redeem the Series BB Notes, at its option, in whole at any time or in part from time to time, at a redemption price equal to the greater of (A) 100% of the principal amount of the Series BB Notes being redeemed and (B) the sum of the present values of the remaining scheduled payments of principal and interest on the Series BB Notes being redeemed (excluding the portion of any such interest accrued to the date of redemption) discounted to the redemption date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 10 basis points (the “Make-Whole Amount”), plus, in each case, accrued interest thereon to the date of redemption. For purposes of determining the Make-Whole Amount, the following definitions apply:

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Series BB 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 Series BB Notes.

 

“Independent Investment Banker” means an investment banking institution of international standing appointed by the Company.

 

“Reference Treasury Dealer” means a primary U.S. government securities dealer in New York City appointed by the Company.

 

“Reference Treasury Dealer Quotation” means, with respect to the Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the applicable Comparable Treasury Issue (expressed in each case as a percentage of its principal amount and quoted in writing to the Company by the Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date).

 

“Treasury Rate” means the rate per annum equal to the semi-annual equivalent or interpolated (on a day-count basis) yield to maturity of the applicable Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Reference Treasury Dealer Quotation for the applicable redemption date.

 

The Trustee shall have no responsibility for any calculation or determination in respect of the establishment of the redemption price of the Notes and shall be entitled to receive and rely conclusively upon an Officer’s Certificate that states the redemption price.

 

A- 3



 

6.                                       Notice of Optional Redemption.  Notice of any redemption will be mailed (and as long as the Series BB Notes being redeemed are represented by one or more global securities, transmitted in accordance with the standard procedures of The Depository Trust Company therefor) at least 30 days but not more than 60 days before the redemption date to each registered holder of Series BB Notes.

 

7.                                       Mandatory Redemption. The Company shall not be required to make mandatory redemption or sinking fund payments with respect to the Series BB Notes.

 

8.                                       Denominations, Transfer, Exchange. The Series BB Notes are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Series BB Notes may be registered and Series BB Notes may be exchanged as provided in the Indenture and the Officer’s Certificate. The Security Registrar and the Trustee may require a Holder of Series BB Notes, among other things, to furnish appropriate endorsements and transfer documents and the Company may require a Holder of Series BB Notes to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Series BB Note or portion of a Series BB Note selected for redemption, except for the unredeemed portion of any Series BB Note being redeemed in part. Also, the Company need not exchange or register the transfer of any Series BB Notes for a period of 15 days before a selection of Series BB Notes to be redeemed or during the period between a record date and the corresponding Interest Payment Date.

 

9.                                       Persons Deemed Owners. The registered Holder of a Series BB Note may be treated as its owner for all purposes.

 

10.                                Amendment, Supplement and Waiver. The Indenture permits, with certain exceptions as therein provided, the Trustee to enter into one or more supplemental indentures for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Indenture with the consent of the Holders of not less than a majority in aggregate principal amount of the Securities of all series then Outstanding under the Indenture, considered as one class; provided, however, that if there shall be Securities of more than one Series outstanding under the Indenture and if a proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such series, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all series so directly affected, considered as one class, shall be required; and provided, further, that if the Securities of any series shall have been issued in more than one Tranche and if the proposed supplemental indenture shall directly affect the rights of the Holders of Securities of one or more, but less than all, of such Tranches, then the consent only of the Holders of a majority in aggregate principal amount of the Outstanding Securities of all Tranches so directly affected, considered as one class, shall be required; and provided, further, that the Indenture permits the Trustee to enter into one or more supplemental indentures for limited purposes without the consent of any Holders of Securities. The Indenture also contains provisions permitting the Holders of a majority in principal amount of the Securities then Outstanding, on behalf of the Holders of all Securities, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Series BB Note shall be conclusive and binding upon such Holder and upon all future Holders of this Series BB Note and

 

A- 4



 

of any Series BB Note issued upon the registration of transfer hereof or in exchange therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Series BB Note.

 

11.                                Events of Default. If an Event of Default shall occur and be continuing, the principal of this Series BB Note may be declared due and payable in the manner and with the effect provided in the Indenture.

 

12.                                No Recourse Against Others. As provided in the Indenture, no recourse shall be had for the payment of the principal of or premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any obligation, covenant or agreement under the Indenture, against, and no personal liability whatsoever shall attach to, or be incurred by, any incorporator, stockholder, officer or director, as such, past, present or future of the Company or of any predecessor or successor corporation (either directly or through the Company or a predecessor or successor corporation), whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture and all the Securities are solely corporate obligations and that any such personal liability is hereby expressly waived and released as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities.

 

13.                                Authentication. Unless the certificate of authentication hereon has been executed by the Trustee or an Authenticating Agent by manual signature, this Series BB Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

 

14 .                                Transfer and Exchange.

 

(a) As provided in the Indenture and subject to certain limitations therein set forth, the transfer of this Series BB Note is registrable in the Security Register, upon surrender of this Series BB Note for registration of transfer at the corporate trust agency office of The Bank of New York Mellon Trust Company, N.A. in New York, New York or such other office or agency as may be designated by the Company from time to time, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Series BB Notes of this series or authorized denominations and of like tenor and aggregate principal amount, will be issued to the designated transferee or transferees.

 

(b) No service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith.

 

(c) Prior to due presentment of this Series BB Note for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name this Series BB Note is registered as the absolute owner hereof for all purposes, whether or not this Series BB Note be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

 

A- 5



 

15.                                Governing Law. The Series BB Notes shall be governed by and construed in accordance with the laws of the State of New York.

 

16.                                Definition of Other Terms. All terms used in this Series BB Note which are defined in the Indenture or the Officer’s Certificate shall have the meanings assigned to them in the Indenture or the Officer’s Certificate, as applicable, unless otherwise indicated.

 

17.                                Abbreviations . Customary abbreviations may be used in the name of a Holder of Series BB Notes or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

18.                                CUSIP Numbers . The Company has caused CUSIP numbers to be printed on the Series BB Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders of Series BB Notes. No representation is made as to the accuracy of such numbers either as printed on the Series BB Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon.

 

The Company shall furnish to any Holder of Series BB Notes upon written request and without charge a copy of the Indenture. Requests may be made to:

 

Nevada Power Company

6226 West Sahara Avenue

Las Vegas, Nevada 89146

Attention: Treasurer

Telephone: (702) 402-5000

 

A- 6



 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

 

 

 

NEVADA POWER COMPANY

 

 

 

 

 

 

 

 

 

 

By:

 

 

 

 

Name:

E. Kevin Bethel

 

 

 

Title:

Senior Vice President and

 

 

 

 

Chief Financial Officer

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

 

Dated: April     , 2018

 

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

 

 

 

 

 

 

 

By:

 

 

 

Authorized Signatory

 

A- 7



 

Assignment Form

 

To assign this Series BB Note, fill in the form below: (I) or (we) assign and transfer this Series BB Note to

 

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

 

 

 

 

 

(Print or type assignee’s name, address and zip code)

 

and irrevocably appoint                                                                                  to transfer this Series BB Note on the books of the Company. The agent may substitute another to act for him.

 

 

Date:

 

Your Signature:

 

 

(Sign exactly as your name appears on the face of this Series BB Note)

 

SIGNATURE GUARANTEE

 

 

 

Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

A- 8


Exhibit 5.1

 

April 11, 2018

 

Nevada Power Company

6226 West Sahara Avenue

Las Vegas, Nevada 89146

 

Re:                              Nevada Power Company’s $575,000,000 2.75% General and Refunding Mortgage Notes, Series BB, due 2020

 

Ladies and Gentlemen:

 

We have acted as special counsel to Nevada Power Company, a Nevada corporation (the “ Company ”), in connection with the registration under the Securities Act of 1933, as amended (the “ Securities Act ”), and the rules and regulations promulgated thereunder (the “ Rules ”), of $575,000,000 aggregate principal amount of the Company’s 2.75% General and Refunding Mortgage Notes, Series BB, due 2020 (the “ Notes ”) pursuant to a registration statement on Form S-3 (333-213897) (the “ Registration Statement ”), the prospectus contained therein (the “ Prospectus ”) and the supplement to the Prospectus dated April 9, 2018 (the “ Prospectus Supplement ”) . The Notes will be issued pursuant to the General and Refunding Mortgage Indenture, dated as of May 1, 2001, between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee, as amended and supplemented to the date hereof (the “ Indenture ”) and an officer’s certificate or supplemental indenture, as described in the Indenture, establishing the form and terms of the Notes. The Notes are being sold by the Company pursuant to the Underwriting Agreement, dated April 9, 2018, between the Company and the several underwriters named therein (the “ Underwriting Agreement ”).

 

In our capacity as counsel to the Company, we have examined such documents, records and instruments as we have deemed necessary for the purposes of this opinion. As to matters of fact material to the opinion expressed herein, we have relied on (a) information in public authority documents (and any opinion based on public authority documents are as of the date of such public authority documents and not as of the date of this opinion letter) and (b) information provided in certificates of officers of the Company.  We have not independently verified the facts so relied on.

 

In such examination, we have assumed the following without investigation: (a) the authenticity of original documents and the genuineness of all signatures; (b) the conformity to the originals of all documents submitted to us as copies and (c) the truth, accuracy and completeness of the information, representations and warranties contained in the records, documents, instruments and certificates we have reviewed.

 



 

Based upon the foregoing examination and in reliance thereon, and subject to (x) the assumptions stated and in reliance on statements of fact contained in the documents that we have examined and (y) completion of all corporate action required to be taken by the Company to duly authorize the proposed issuance of the Notes, we are of the opinion that, when (a) the terms of the Notes have been established in accordance with the Indenture, (b) the applicable supplement or officer’s certificate to the Indenture, if any, has been duly authorized and validly executed and delivered by the Company and the trustee thereunder and (c) the Notes have been executed and authenticated in accordance with the terms of the Indenture, and the applicable supplement thereto, if any, and issued and delivered in accordance with the terms of the Underwriting Agreement against payment of the consideration set forth therein and as contemplated by the Registration Statement and the Prospectus Supplement, the Notes will constitute binding obligations of the Company.

 

The foregoing opinion is subject to the following exclusions and qualifications:

 

(a)                                  Our opinion is as of the date hereof, and we have no responsibility to update this opinion for events and circumstances occurring after the date hereof or as to facts relating to prior events that are subsequently brought to our attention.  This opinion is limited to the laws, including the rules and regulations, as in effect on the date hereof, and we disavow any undertaking to advise you of any changes in law.

 

(b)                                  We express no opinion as to enforceability of any right or obligation to the extent such right or obligation is subject to and limited by (i) the effect of bankruptcy, insolvency, reorganization, receivership, conservatorship, arrangement, moratorium, fraudulent transfer or other laws affecting or relating to the rights of creditors generally; (ii) rules governing the availability of specific performance, injunctive relief or other equitable remedies and general principles of equity, regardless of whether arising prior to or after the date hereof or considered in a proceeding in equity or at law; or (iii) the effect of federal and state securities laws and principles of public policy on the rights of indemnity and contribution.

 

(c)                                   We express no opinion concerning any laws other than the laws in their current forms of the State of New York and the federal securities laws of the United States of America, and we express no opinion with respect to the laws of any other jurisdiction and expressly disclaim responsibility for advising you as to the effect, if any, that the laws of any other jurisdiction may have on the opinion set forth herein. Insofar as this opinion relates to matters of law and legal conclusions governed by the laws of the State of Nevada, we base it on the opinion of Hutchison & Steffen, PLLC as evidenced by the opinion of such firm to be filed as an exhibit to the Company’s Current Report on Form 8-K, filed on or about the date hereof. Our opinions as to such matters are based on the assumptions and subject to the qualifications and limitations set forth in such opinion.

 

We hereby consent to the filing of this opinion as an exhibit to the Company’s Report on Form 8-K filed with the Securities and Exchange Commission on or about the date hereof, to the incorporation by reference of this opinion into the Registration Statement and any amendments thereto, including any and all post-effective amendments, and to the reference to our firm in the Prospectus Supplement under the heading “Legal Matters.”  In giving such consent, we do not

 

2



 

thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or related Rules.

 

 

 

Very truly yours

 

 

 

/s/ PERKINS COIE LLP

 

 

 

PERKINS COIE LLP

 

3


Exhibit 5.2

 

PECCOLE PROFESSIONAL PARK
10080 WEST ALTA DRIVE, SUITE 200
LAS VEGAS, NEVADA 89145
702.385.2500
FAX 702.385.2086
HUTCHLEGAL.COM

 

April 11, 2018

 

Nevada Power Company

6226 West Sahara Avenue

Las Vegas, NV 89146

 

RE:                            Nevada Power Company, a Nevada corporation

 

Ladies and Gentlemen:

 

We have acted as special Nevada counsel to Nevada Power Company, a Nevada corporation (the “ Opinion Party ”), in connection with the Opinion Party’s preparation and filing with the Securities and Exchange Commission (the “ Commission ”) of a Registration Statement Form S-3, File No. 333-213897 (the “ Registration Statement ”) under the Securities Act of 1933, as amended (the “ Securities Act ”), the final prospectus supplement dated April 9, 2018, including a base prospectus dated October 18, 2016 (together, the “ Prospectus ”), and the offering by the Opinion Party pursuant thereto of $575,000,000.00 aggregate principal amount of the Opinion Party’s 2.75% General and Refunding Mortgage Notes, Series BB, due 2020 (the “ Securities ”).

 

The Securities will be issued pursuant to the General and Refunding Mortgage Indenture, dated as of May 1, 2001, as amended and supplemented to the date hereof, including by the Officer’s Certificate to be dated April 12, 2018 (the “ Series BB Officer’s Certificate ”) establishing the terms of the Securities (as so amended and supplemented, the “ Indenture ”), between the Opinion Party and The Bank of New York Mellon Trust Company, N.A., as trustee (the “ Trustee ”).

 

In arriving at the opinions expressed below, we have examined originals, or copies certified or otherwise identified to our satisfaction as being true and complete copies of the originals, of:  (i) the Indenture; (ii) the Series BB Officer’s Certificate; (iii) the Securities; (iv) the Opinion Party’s Restated Articles of Incorporation, dated July 28, 1999; (v) the Opinion Party’s Amended and Restated By-Laws, dated December 27, 2017; (vi) the unanimous written consent of the Opinion Party’s Board of Directors, dated April 6, 2018; (vii) the Company Order of the Opinion Party, to be dated April 12, 2018, and to be issued pursuant to Sections 1.04, 4.01(b), and 4.03(b)(i) of the Indenture; (viii) the Officer’s Certificate to be dated April 12, 2018, and to be issued pursuant to Sections 1.04, 4.01(e), 4.01(b)(i) and 4.03(b)(ii) of the Indenture; (ix) the Certificate of Existence with Status in Good Standing with respect to the Opinion Party, dated April 11, 2018, issued by the Secretary of State of the State of Nevada; and (x) the Underwriting Agreement dated April 9, 2018 between, on the one hand, the Opinion Party and, on the other hand, Citigroup Global Markets Inc., J.P. Morgan Securities LLC, TD Securities (USA) LLC,

 

1



 

U.S. Bancorp Investments, Inc., PNC Capital Markets LLC, BMO Capital Markets Corp., CIBC World Markets Corp., KeyBanc Capital Markets Inc., Santander Investment Securities Inc., SMBC Nikko Securities America, Inc., and SunTrust Robinson Humphrey, Inc. (the “ Underwriting Agreement ”).  We also have examined originals or copies, certified or otherwise identified to our satisfaction, of such other records of the Opinion Party and such agreements, certificates of public officials, certificates of officers or other representatives of the Opinion Party and others, and such other documents, certificates, and records as we have deemed necessary or appropriate as a basis for the opinions set forth herein.  In our examination, we have assumed, without independent investigation, the genuineness of all signatures, the legal capacity and competency of all natural persons, the authenticity of all documents submitted to us as originals and the conformity to original documents of all documents submitted to us as copies. As to any facts material to these opinions, we have relied to the extent we deemed appropriate and without independent investigation upon statements and representations of officers and other representatives of the Opinion Party and others.

 

In rendering the opinions set forth below, we have also assumed that, at or prior to the time of issuance and delivery, the Securities have been registered by the paying agent and security registrar of such Securities and that the Securities have been issued in accordance with the terms of the Underwriting Agreement.

 

Based upon the foregoing, and subject to the assumptions, exceptions, qualifications, and limitations set forth herein, we are of the opinion that:

 

1.               The Opinion Party is validly existing under the laws of its jurisdiction of incorporation and has all requisite power to execute, deliver, and perform its obligations under the Indenture and the certificates evidencing the Securities; and

 

2.               The Securities have been duly authorized by all necessary corporate or other action.

 

We disclaim any undertaking to advise you of any changes in the facts stated or assumed herein or any changes in applicable law that may come to our attention subsequent to the date of this opinion letter.

 

While certain members of this firm are admitted to practice in certain jurisdictions other than Nevada, in rendering the foregoing opinions we have not examined the laws of any jurisdiction other than Nevada. Accordingly, the opinions we express herein are limited to matters involving the laws of the State of Nevada (excluding securities laws).  We express no opinion regarding the effect of the laws of any other jurisdiction or state, including any federal or state securities laws related to the issuance and sale of the Securities.

 

2



 

We hereby consent to the filing of this opinion as an exhibit to the Opinion Party’s Report on Form 8-K filed with the Commission on or about the date hereof, to the incorporation by reference of this opinion into the Registration Statement, and we further consent to the use of our name under the caption “Legal Matters” in the Prospectus.  In giving these consents, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.

 

 

Very truly yours,

 

 

 

/s/ HUTCHISON & STEFFEN, PLLC

 

 

 

HUTCHISON & STEFFEN, PLLC

 

3


Exhibit 25.1

 

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549

 

FORM T-1

 

STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF A
CORPORATION DESIGNATED TO ACT AS TRUSTEE

 

CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY
OF A TRUSTEE PURSUANT TO SECTION 305(b)(2)    
o

 


 

The Bank Of New York Mellon Trust Company, N.A.
(Exact name of trustee as specified in its charter)

 

N/A
(State of incorporation
if not a U.S. national bank)

 

95-3571558
(I.R.S. employer
identification no.)

 

 

 

400 South Hope Street, Suite 400
Los Angeles, California
(Address of principal executive offices)

 

90071
(Zip code)

 

Legal Department
The Bank of New York Mellon Trust Company, N.A.
225 Liberty Street
New York, NY  10286
(212) 635-1270
(Name, address and telephone number of agent for service)

 


 

Nevada Power Company

(Exact name of obligor as specified in its charter)

 

Nevada
(State or other jurisdiction of
incorporation or organization)

 

88-0420104
(I.R.S. employer
identification no.)

 

 

 

6226 West Sahara Avenue
Las Vegas, Nevada
(Address of principal executive offices)

 

89146
(Zip code)

 


 

General and Refunding Mortgage Securities

(Title of the indenture securities)


 

 

 



 

Item 1.                      General information.

 

Furnish the following information as to the trustee:

 

(a)             Name and address of each examining or supervising authority to which it is subject.

 

Name

 

Address

Comptroller of the Currency — United States Department of the Treasury

 

Washington, D.C. 20219

 

 

 

Federal Reserve Bank

 

San Francisco, California 94105

 

 

 

Federal Deposit Insurance Corporation

 

Washington, D.C. 20429

 

(b)             Whether it is authorized to exercise corporate trust powers.

 

Yes.

 

Item 2.                      Affiliations with Obligor.

 

If the obligor is an affiliate of the trustee, describe each such affiliation.

 

None.

 

Item 16.             List of Exhibits.

 

Exhibits identified in parentheses below, on file with the Commission, are incorporated herein by reference             as an exhibit hereto, pursuant to Rule 7a-29 under the Trust Indenture Act of 1939 (the “Act”) and 17 C.F.R. 229.10(d).

 

1.               A copy of the articles of association of The Bank of New York Mellon Trust Company, N.A.  (Exhibit 1 to Form T-1 filed pursuant to Section 305(b)(2) of the Act in connection with Registration Statement No. 333-135006-10)

 

2.               A copy of certificate of authority of the trustee to commence business. (Exhibit 2 to Form T-1 filed with Registration Statement No. 333-121948).

 

3.               A copy of the authorization of the trustee to exercise corporate trust powers.  (Exhibit 3 to Form T-1 filed pursuant to Section 305(b)(2) of the Act in connection with Registration Statement No. 333-135006-10).

 

4.               A copy of the existing by-laws of the trustee.  (Exhibit 4 to Form T-1 filed pursuant to Section 305(b)(2) of the Act in connection with Registration Statement No. 333-135006-10).

 

5.               Not applicable.

 

6.               The consent of the trustee required by Section 321(b) of the Act.  (Exhibit 6 to Form T-1 filed pursuant to Section 305(b)(2) of the Act in connection with Registration Statement No. 333-135006-10).

 

7.               A copy of the latest report of condition of the Trustee published pursuant to law or to the requirements of its supervising or examining authority.

 

8.               Not applicable.

 

9.               Not applicable.

 

2



 

SIGNATURE

 

Pursuant to the requirements of the Act, the trustee, The Bank of New York Mellon Trust Company, N.A., a banking association organized and existing under the laws of the United States of America, has duly caused this statement of eligibility to be signed on its behalf by the undersigned, thereunto duly authorized, all in the City of Los Angeles, and State of California, on the 11th day of April, 2018.

 

 

THE BANK OF NEW YORK MELLON

 

TRUST COMPANY, N.A.

 

 

 

By:

/s/ Valere Boyd

 

 

Name:

Valere Boyd

 

 

Title:

Vice President

 

3



 

EXHIBIT 7

 

Consolidated Report of Condition of

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.

of 400 South Hope Street, Suite 500, Los Angeles, CA 90071

 

At the close of business December 31, 2017, published in accordance with Federal regulatory authority instructions.

 

 

 

Dollar amounts

 

 

 

in thousands

 

ASSETS

 

 

 

 

 

 

 

Cash and balances due from depository institutions:

 

 

 

Noninterest-bearing balances and currency and coin

 

4,247

 

Interest-bearing balances

 

533,579

 

Securities:

 

 

 

Held-to-maturity securities

 

0

 

Available-for-sale securities

 

542,018

 

Federal funds sold and securities purchased under agreements to resell:

 

 

 

Federal funds sold

 

0

 

Securities purchased under agreements to resell

 

0

 

Loans and lease financing receivables:

 

 

 

Loans and leases held for sale

 

0

 

Loans and leases, held for investment

 

0

 

LESS: Allowance for loan and lease losses

 

0

 

Loans and leases held for investment, net of allowance

 

0

 

Trading assets

 

0

 

Premises and fixed assets (including capitalized leases)

 

10,756

 

Other real estate owned

 

0

 

Investments in unconsolidated subsidiaries and associated companies

 

0

 

Direct and indirect investments in real estate ventures

 

0

 

Intangible assets:

 

 

 

Goodwill

 

856,313

 

Other intangible assets

 

24,347

 

Other assets

 

121,741

 

Total assets

 

$

2,093,001

 

 



 

LIABILITIES

 

 

 

 

 

 

 

Deposits:

 

 

 

In domestic offices

 

602

 

Noninterest-bearing

 

602

 

Interest-bearing

 

0

 

Not applicable

 

 

 

Federal funds purchased and securities sold under agreements to repurchase:

 

 

 

Federal funds purchased

 

0

 

Securities sold under agreements to repurchase

 

0

 

Trading liabilities

 

0

 

Other borrowed money:

 

 

 

(includes mortgage indebtedness and obligations under capitalized leases)

 

0

 

Not applicable

 

 

 

Not applicable

 

 

 

Subordinated notes and debentures

 

0

 

Other liabilities

 

222,312

 

Total liabilities

 

222,914

 

Not applicable

 

 

 

 

 

 

 

EQUITY CAPITAL

 

 

 

 

 

 

 

Perpetual preferred stock and related surplus

 

0

 

Common stock

 

1,000

 

Surplus (exclude all surplus related to preferred stock)

 

1,123,124

 

Not available Retained earnings

 

747,028

 

Accumulated other comprehensive income

 

-1,065

 

Other equity capital components

 

0

 

Not available Total bank equity capital

 

1,870,087

 

Noncontrolling (minority) interests in consolidated subsidiaries

 

0

 

Total equity capital

 

1,870,087

 

Total liabilities and equity capital

 

2,093,001

 

 

I, Matthew J. McNulty, CFO of the above-named bank do hereby declare that the Reports of Condition and Income (including the supporting schedules) for this report date have been prepared in conformance with the instructions issued by the appropriate Federal regulatory authority and are true to the best of my knowledge and belief.

 

Matthew J. McNulty

 

)

 

CFO

 

We, the undersigned directors (trustees), attest to the correctness of the Report of Condition (including the supporting schedules) for this report date and declare that it has been examined by us and to the best of our knowledge and belief has been prepared in conformance with the instructions issued by the appropriate Federal regulatory authority and is true and correct.

 

Antonio I. Portuondo, President

 

)

 

 

William D. Lindelof, Director

 

)

 

Directors (Trustees)

Alphonse J. Briand, Director

 

)