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
Date of Report (Date of earliest event reported): December 5, 2016
L-3 COMMUNICATIONS HOLDINGS, INC.
L-3 COMMUNICATIONS CORPORATION
(Exact names of registrants as specified in their charters)
DELAWARE |
001-14141 333-46983 |
13-3937434 13-3937436 |
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(State or other Jurisdiction of Incorporation) |
(Commission File Numbers) |
(IRS Employer Identification Nos.) |
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600 THIRD AVENUE, NEW YORK, NEW YORK | 10016 | |||
(Address of Principal Executive Offices) | (Zip Code) |
Registrants telephone number, including area code: (212) 697-1111
(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:
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
ITEM 1.01. Entry Into a Material Definitive Agreement.
On December 5, 2016, L-3 Communications Corporation (the Company), a wholly owned subsidiary of L-3 Communications Holdings, Inc. (L-3 Holdings), completed its underwritten public offering of $550,000,000 aggregate principal amount of 3.85% Senior Notes due 2026 (the Notes) pursuant to an underwriting agreement (the Underwriting Agreement) among the Company, the subsidiary guarantors named therein (the Subsidiary Guarantors) and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Deutsche Bank Securities Inc. and the other several underwriters named in Schedule A of the Underwriting Agreement. A copy of the Underwriting Agreement is filed herewith as Exhibit 1.1. In connection with the issuance of the Notes, on December 5, 2016, the Company and the Subsidiary Guarantors entered into an Eighth Supplemental Indenture (the Eighth Supplemental Indenture) with The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee), to an indenture (the Base Indenture) entered into on May 21, 2010 (the Base Indenture, and together with the Eighth Supplemental Indenture, the Indenture) with the Trustee.
The Notes: (i) were issued at a price to the public of 99.489% of their principal amount, (ii) will bear interest at a fixed rate of 3.85% per year, payable semi-annually on June 15 and December 15 of each year to holders of record on the immediately preceding June 1 and December 1, respectively, beginning on June 15, 2017 and (iii) will mature on December 15, 2026.
The Notes are unsecured senior obligations of the Company and rank equal in right of payment with all of the Companys other existing and future senior indebtedness. In addition, the Notes are guaranteed on an unsecured senior basis by each of the Companys material domestic subsidiaries that guarantees any of the Companys other indebtedness.
The Company may redeem some or all of the Notes at any time or from time to time, as a whole or in part, at its option at the prices and on the terms set forth in the Indenture. In addition, upon the occurrence of a Change of Control Triggering Event, as defined in the Indenture, the Company will be required to make an offer to repurchase the Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest to, but not including, the date of repurchase.
The Indenture also contains covenants that, among other things, limit the Companys ability and the ability of certain of its subsidiaries to create or assume certain liens or enter into sale and leaseback transactions, and the Companys ability to engage in mergers or consolidations or transfer or lease all or substantially all of its assets. Finally, the Indenture contains customary events of default.
The sale of the Notes was made pursuant to the Companys and the subsidiary guarantors Registration Statement on Form S-3, as amended (File No. 333-212152) (the Registration Statement) and the prospectus supplement, dated November 29, 2016, to the prospectus contained therein dated June 21, 2016.
The Company intends to use the net proceeds from the offering plus cash on hand to: (i) replenish the amount of cash used, and the amount of revolving credit borrowings drawn, to repay $200 million aggregate principal amount of its 3.95% senior notes due 2016 that matured on November 15, 2016 and (ii) redeem all of its outstanding 1.50% senior notes due 2017, which have an aggregate principal amount of $350 million.
The foregoing description is qualified by reference to the Base Indenture and Eighth Supplemental Indenture. The Base Indenture is filed as Exhibit 4.1 to the Registration Statement and the Eighth Supplemental Indenture is filed herewith as Exhibit 4.2 and such documents are incorporated by reference herein.
ITEM 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth above under Item 1.01 with respect to the Notes is hereby incorporated by reference into this Item 2.03.
ITEM 8.01. Other Events.
In connection with the offering of the Notes, as described in response to Item 1.01 of this Current Report on Form 8-K, the following exhibits are filed with this Current Report on Form 8-K and are incorporated by reference herein and into the Registration Statement: (i) the Underwriting Agreement, (ii) the Eighth Supplemental Indenture (including the form of Note), (iii) the legal opinion of Simpson Thacher & Bartlett LLP, and related consent, (iv) the legal opinion of Ann D. Davidson, Senior Vice President, General Counsel and Corporate Secretary of the Company, and related consent and (v) information relating to Part II, Item 14 Other Expenses of Issuance and Distribution of the Registration Statement.
ITEM 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit Number |
Title |
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1.1 | Underwriting Agreement, dated as of November 29, 2016, among L-3 Communications Corporation, the subsidiary guarantors named therein and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Deutsche Bank Securities Inc. and the other several underwriters named therein | |
4.6 | Eighth Supplemental Indenture, dated as of December 5, 2016, among L-3 Communications Corporation, the Subsidiary Guarantors and The Bank of New York Mellon Trust Company, N.A., as Trustee. | |
4.7 | Form of Notes (included in Exhibit 4.6). | |
5.3 | Opinion of Simpson Thacher & Bartlett LLP dated December 5, 2016. | |
5.4 | Opinion of Ann D. Davidson dated December 5, 2016. | |
23.3 | Consent of Simpson Thacher & Bartlett LLP (included in Exhibit 5.3). | |
23.4 | Consent of Ann D. Davidson (included in Exhibit 5.4). | |
99.1 | Information relating to Part II, Item 14 Other Expenses of Issuance and Distribution of the Registration Statement (File No. 333-212152). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
L-3 COMMUNICATIONS HOLDINGS, INC. L-3 COMMUNICATIONS CORPORATION |
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By: |
/s/ Allen E. Danzig |
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Name: | Allen E. Danzig | |||
Title: | Vice President, Assistant General Counsel and Assistant Secretary |
Dated: December 5, 2016
EXHIBIT INDEX
Exhibit Number |
Title |
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1.1 | Underwriting Agreement, dated as of November 29, 2016, among L-3 Communications Corporation, the subsidiary guarantors named therein and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc., Deutsche Bank Securities Inc. and the other several underwriters named therein | |
4.6 | Eighth Supplemental Indenture, dated as of December 5, 2016, among L-3 Communications Corporation, the Subsidiary Guarantors and The Bank of New York Mellon Trust Company, N.A., as Trustee. | |
4.7 | Form of Notes (included in Exhibit 4.2). | |
5.3 | Opinion of Simpson Thacher & Bartlett LLP dated December 5, 2016. | |
5.4 | Opinion of Ann D. Davidson dated December 5, 2016. | |
23.3 | Consent of Simpson Thacher & Bartlett LLP (included in Exhibit 5.3). | |
23.4 | Consent of Ann D. Davidson (included in Exhibit 5.4). | |
99.1 | Information relating to Part II, Item 14 Other Expenses of Issuance and Distribution of the Registration Statement (File No. 333-212152). |
Exhibit 1.1
L-3 COMMUNICATIONS CORPORATION
$550,000,000 3.85% Senior Notes due 2026
UNDERWRITING AGREEMENT
November 29, 2016
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Barclays Capital Inc.
Deutsche Bank Securities Inc.
Underwriting Agreement
November 29, 2016
MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
BARCLAYS CAPITAL INC.
DEUTSCHE BANK SECURITIES INC.
As Representatives of the several Underwriters
c/o MERRILL LYNCH, PIERCE, FENNER & SMITH
INCORPORATED
One Bryant Park
New York, NY 10036
Ladies and Gentlemen:
Introductory. L-3 Communications Corporation, a Delaware corporation (the Company ), proposes to issue and sell to the several underwriters named in Schedule A (the Underwriters ), acting severally and not jointly, the respective aggregate principal amounts set forth in such Schedule A of $550,000,000 in aggregate principal amount of the Companys 3.85% Senior Notes due 2026 (the Notes ). Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc. and Deutsche Bank Securities Inc. have agreed to act as representatives of the several Underwriters (in such capacity, the Representatives ) in connection with the offering and sale of the Notes.
The Notes will be issued pursuant to an indenture, dated as of May 21, 2010 (the Base Indenture ), among the Company, the Guarantors (as defined below) and The Bank of New York Mellon, as trustee (the Trustee ). Certain terms of the Notes will be established pursuant to a supplemental indenture, dated as of the Closing Date (as defined in Section 2 below) (the Supplemental Indenture ) to the Base Indenture (together with the Base Indenture, the Indenture ). The Notes will be guaranteed (the Guarantees ) on an unsecured senior basis by each of the entities listed on Exhibit A hereto (the Guarantors ). The Notes will be issued in book-entry form in the name of Cede & Co., as nominee of The Depository Trust Company (the Depositary ), pursuant to a letter of representations, to be dated on or before the Closing Date (as defined in Section 2 below) (the DTC Agreement ), among the Company, the Trustee and the Depositary.
The Company and the Guarantors have prepared and filed with the Securities and Exchange Commission (the Commission ) a registration statement on Form S-3 (File No. 333-212152),
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which contains a base prospectus (the Base Prospectus ), to be used in connection with the public offering and sale of debt securities, including the Notes, and other securities of the Company, as amended by post-effective amendment No. 1 thereto, under the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (collectively, the Securities Act ), and the offering thereof from time to time in accordance with Rule 415 under the Securities Act. Such registration statement, including the financial statements, exhibits and schedules thereto, in the form in which it became effective under the Securities Act, including any required information deemed to be a part thereof at the time of effectiveness pursuant to Rule 430B under the Securities Act, is called the Registration Statement . The term Prospectus shall mean the final prospectus supplement relating to the Notes, together with the Base Prospectus, that is first filed pursuant to Rule 424(b) under the Securities Act after the date and time that this Agreement is executed (the Execution Time ) by the parties hereto. The term Preliminary Prospectus shall mean the preliminary prospectus supplement relating to the Notes, together with the Base Prospectus, that is first filed with the Commission pursuant to Rule 424(b). Any reference herein to the Registration Statement, the Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the documents that are or are deemed to be incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act prior to 2:30 p.m. on November 29, 2016 (the Initial Sale Time ). All references in this Agreement to the Registration Statement, the Preliminary Prospectus, the Prospectus, or any amendments or supplements to any of the foregoing, shall include any copy thereof filed with the Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System ( EDGAR ).
All references in this Agreement to financial statements and schedules and other information which is contained, included or stated (or other references of like import) in the Registration Statement, the Prospectus or the Preliminary Prospectus shall be deemed to mean and include all such financial statements and schedules and other information which is or is deemed to be incorporated by reference in the Registration Statement, the Prospectus or the Preliminary Prospectus, as the case may be, prior to the Initial Sale Time; and all references in this Agreement to amendments or supplements to the Registration Statement, the Prospectus or the Preliminary Prospectus shall be deemed to include the filing of any document under the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder (collectively, the Exchange Act ), which is or is deemed to be incorporated by reference in the Registration Statement, the Prospectus or the Preliminary Prospectus, as the case may be, after the Initial Sale Time.
The Company and the Guarantors hereby confirm their agreements with the Underwriters as follows:
S ECTION 1. Representations and Warranties of the Company and the Guarantors.
The Company and the Guarantors hereby jointly and severally represent, warrant and covenant to each Underwriter as of the date hereof, as of the Initial Sale Time and as of the Closing Date (in each case, a Representation Date ), as follows:
a) Compliance with Registration Requirements. The Company meets the requirements for use of Form S-3 under the Securities Act. The Registration Statement has become effective under the Securities Act and no stop order suspending the effectiveness of the
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Registration Statement has been issued under the Securities Act and no proceedings for that purpose have been instituted or are pending or, to the knowledge of the Company, are contemplated or threatened by the Commission, and any request on the part of the Commission for additional information has been complied with. In addition, the Indenture has been duly qualified under the Trust Indenture Act of 1939, as amended, and the rules and regulations promulgated thereunder (the Trust Indenture Act ).
At the respective times the Registration Statement and any post-effective amendments thereto became effective and at each Representation Date, the Registration Statement and any amendments thereto (i) complied and will comply in all material respects with the requirements of the Securities Act and the Trust Indenture Act, and (ii) did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. At the date of the Prospectus and at the Closing Date, neither the Prospectus nor any amendments or supplements thereto included or will include an untrue statement of a material fact or omitted or will 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. Notwithstanding the foregoing, the representations and warranties in this subsection shall not apply to statements in or omissions from the Registration Statement or any post-effective amendment or the Prospectus or any amendments or supplements thereto made in reliance upon and in conformity with information furnished to the Company in writing by any of the Underwriters through the Representatives expressly for use therein, it being understood and agreed that the only such information furnished by any Underwriter through the Representatives consists of the information described as such in Section 8 hereof.
Each Preliminary Prospectus and the Prospectus, at the time each was filed with the Commission, complied in all material respects with the Securities Act, and the Preliminary Prospectus and the Prospectus delivered to the Underwriters for use in connection with the offering of the Notes will, at the time of such delivery, be identical to any electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
b) Disclosure Package. The term Disclosure Package shall mean (i) the Preliminary Prospectus dated November 29, 2016, (ii) the issuer free writing prospectuses as defined in Rule 433 of the Securities Act (each, an Issuer Free Writing Prospectus ), if any, identified in Annex I hereto and (iii) any other free writing prospectus that the parties hereto shall hereafter expressly agree in writing to treat as part of the Disclosure Package. As of the Initial Sale Time, the Disclosure Package did not contain 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 preceding sentence does not apply to statements in or omissions from the Disclosure Package based upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by any Underwriter through the Representatives consists of the information described as such in Section 8 hereof.
c) Incorporated Documents . The documents incorporated or deemed to be incorporated by reference in the Registration Statement, the Preliminary Prospectus and the
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Prospectus (i) at the time they were or hereafter are filed with the Commission, complied or will comply in all material respects with the requirements of the Exchange Act and (ii) when read together with the other information in the Disclosure Package, at the Initial Sale Time, and when read together with the other information in the Prospectus, at the date of the Prospectus and at the Closing Date, did not or will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.
d) Well-Known Seasoned Issuer . (i) At the time of filing the Registration Statement, (ii) at the time of the most recent amendment thereto for the purposes of complying with Section 10(a)(3) of the Securities Act (whether such amendment was by post-effective amendment, incorporated report filed pursuant to Section 13 or 15(d) of the Exchange Act or form of prospectus), (iii) at the time the Company or any person acting on its behalf (within the meaning, for this clause only, of Rule 163(c) of the Securities Act) made any offer relating to the Notes in reliance on the exemption of Rule 163 of the Securities Act, and (iv) as of the Execution Time, L-3 Communications Holdings Inc., a Delaware corporation and the parent of the Company, was and is a well known seasoned issuer as defined in Rule 405 of the Securities Act. The Registration Statement is an automatic shelf registration statement, as defined in Rule 405 of the Securities Act, that automatically became effective not more than three years prior to the Execution Time; the Company is eligible to use an automatic shelf registration statement pursuant to Form S-3 under the Securities Act and has not received from the Commission any notice pursuant to Rule 401(g)(2) of the Securities Act objecting to use of the automatic shelf registration statement form and the Company has not otherwise ceased to be eligible to use the automatic shelf registration form.
e) Company is not an Ineligible Issuer . (i) At the time of filing the Registration Statement and (ii) as of the Execution Time (with such date being used as the determination date for purposes of this clause (ii)), the Company was not and is not an Ineligible Issuer (as defined in Rule 405 of the Securities Act), without taking account of any determination by the Commission pursuant to Rule 405 of the Securities Act that it is not necessary that the Company be considered an Ineligible Issuer.
f) Issuer Free Writing Prospectuses . Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the completion of the offering of Notes under this Agreement or until any earlier date that the Company notified or notifies the Representatives 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 contained in the Registration Statement, the Preliminary Prospectus or the Prospectus. 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 Issuer Free Writing Prospectus conflicted or would conflict with the information contained in the Registration Statement, the Preliminary Prospectus or the Prospectus, the Company has promptly notified or will promptly notify the Representatives and has promptly amended or supplemented or will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict. The foregoing two sentences do not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by any Underwriter through the Representatives consists of the information described as such in Section 8 hereof.
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g) Distribution of Offering Material By the Company. The Company and the Guarantors have not distributed and will not distribute, prior to the later of the Closing Date and the completion of the Underwriters distribution of the Notes, any offering material in connection with the offering and sale of the Notes other than the Registration Statement, the Preliminary Prospectus, the Prospectus, any Issuer Free Writing Prospectus reviewed and consented to by the Representatives and included in Annex I hereto or any electronic road show or other written communications reviewed and consented to by the Representatives and listed on Annex II hereto (collectively, Company Additional Written Communication ). Each such Company Additional Written Communication, when taken together with the Disclosure Package, did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements in or omissions from the Company Additional Written Communication based upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives specifically for use therein, it being understood and agreed that the only such information furnished by any Underwriter through the Representatives consists of the information described as such in Section 8 hereof.
h) No Applicable Registration or Other Similar Rights. There are no persons with registration or other similar rights to have any equity or debt securities registered for sale under the Registration Statement or included in the offering contemplated by this Agreement, except for such rights as have been duly waived.
i) The Underwriting Agreement. This Agreement has been duly authorized, executed and delivered by the Company and each of the Guarantors.
j) Authorization of the Indenture . The Indenture has been duly authorized by the Company and each of the Guarantors and, when the Supplemental Indenture has been duly executed by the proper officers of the Company and each of the Guarantors (assuming the Indenture is the valid and binding obligation of the Trustee), executed and delivered by the Company and each of the Guarantors, the Indenture will constitute a valid and binding agreement of the Company and each of the Guarantors, enforceable against the Company and each of the Guarantors in accordance with its terms, except as the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar laws relating to or affecting creditors rights generally and by general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law) or an implied covenant of good faith and fair dealing (the Enforceability Exceptions ). The Indenture has been duly qualified under the Trust Indenture Act.
k) Authorization of the Notes. The Notes to be purchased by the Underwriters from the Company are in the form contemplated by the Indenture, have been duly authorized by the Company and, when executed by the Company and authenticated by the Trustee in accordance with the Indenture and delivered to the Underwriters against payment therefor in accordance with the terms of this Agreement, will be validly issued and delivered, and will constitute valid and binding obligations of the Company entitled to the benefits of the Indenture and enforceable against the Company in accordance with their terms, subject to the Enforceability Exceptions.
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l) Authorization of the Guarantees . The Guarantees have been duly authorized by the Guarantors and, when issued and delivered by the Guarantors, and when the Notes have been duly authorized and executed by the Company and authenticated by the Trustee in accordance with the Indenture and delivered to the Underwriters against payment therefor on the Closing Date in accordance with the terms of this Agreement, will constitute valid and binding obligations of the Guarantors entitled to the benefits of the Indenture and enforceable against the Guarantors in accordance with their terms, subject to the Enforceability Exceptions.
m) Description of the Notes and the Indenture. The Notes, the Indenture and the Guarantees conform, or will conform, in all material respects to the descriptions thereof contained in the Disclosure Package and the Prospectus.
n) Accuracy of Statements in Prospectus. The statements in each of the Preliminary Prospectus and the Prospectus under the captions Description of the Senior Notes, Description of Debt Securities and Material U.S. Federal Income and Estate Tax Consequences to Non-U.S. Holders, in each case insofar as such statements constitute a summary of the legal matters, documents or proceedings referred to therein, fairly present and summarize, in all material respects, the matters referred to therein.
o) No Material Adverse Change . Except as otherwise disclosed in the Disclosure Package, subsequent to the respective dates as of which information is given in the Disclosure Package, (i) neither the Company nor any of its subsidiaries has sustained any loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree and, except as would not, individually or in the aggregate, result in a Material Adverse Change (as defined below) (ii) there has been no material adverse change, or any development that could reasonably be expected to result in a material adverse change, in the condition (financial or otherwise) or in the business, properties, stockholders equity, results of operations or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its subsidiaries, considered as one entity (any such change is called a Material Adverse Change ).
p) Independent Accountants. PricewaterhouseCoopers LLP, which have audited the Companys audited financial statements for the fiscal years ended December 31, 2015, 2014 and 2013 incorporated by reference in the Registration Statement, the Preliminary Prospectus and the Prospectus, are an independent registered public accounting firm with respect to the Company as required by the Securities Act and the Exchange Act and the Public Company Accounting Oversight Board.
q) Preparation of the Financial Statements. The financial statements and the notes thereto included or incorporated by reference in the Registration Statement, the Preliminary Prospectus and the Prospectus present fairly in all material respects the financial condition, results of operations and cash flows of the entities purported to be shown thereby at the dates and for the periods indicated and have been prepared in accordance with generally accepted
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accounting principles applied on a consistent basis throughout the periods indicated and comply as to form in all material respects with the rules and regulations of the Commission, except as otherwise noted. The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement, the Preliminary Prospectus and the Prospectus present fairly the information called for in all material respects and have been prepared in accordance with the Commissions rules and guidelines applicable thereto.
r) Incorporation and Good Standing of the Company and its Subsidiaries. The Company and each of the Guarantors has been duly organized and is validly existing and in good standing as a corporation or other business entity under the laws of its jurisdiction of incorporation or organization, with all power and authority necessary to conduct the business in which it is engaged or to own or lease its properties; and each of the Company and the Guarantors is duly qualified to do business and in good standing as a foreign corporation or other business entity in each jurisdiction in which its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be so qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change. All of the issued shares of capital stock of the Company have been duly authorized and validly authorized and issued, are fully paid and nonassessable.
s) Non-Contravention of Existing Instruments; No Further Authorizations or Approvals Required. None of the execution or delivery of this Agreement by the Company and the Guarantors, the consummation of the transactions contemplated hereby, the execution and delivery of the Indenture, the Notes and the Guarantees by the Company and the Guarantors, as applicable, or compliance by the Company and the Guarantors with all of the provisions of this Agreement, the Indenture, the Notes and the Guarantees, as applicable, will result in a breach or violation of, or constitute a default under (i) the certificate of incorporation, by-laws, certificate of limited partnership, limited liability company agreement, partnership agreement or other constitutive documents of the Company, the Guarantors or any of the Companys significant subsidiaries (the Companys significant subsidiaries as defined in Rule 1-02 of Regulation S-X are collectively referred to as the Significant Subsidiaries ), (ii) any loan agreement, indenture, mortgage, deed of trust or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which any of them is bound or to which any of their properties is subject that is material to the financial condition or prospects of the Company and its subsidiaries taken as a whole, or (iii) any law or any rule, regulation, order or decree of any governmental agency or body or court having jurisdiction over the Company or any of the Guarantors or any of their respective properties or assets, except, in the case of clauses (ii) and (iii) above, for such breach, violation or default which, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Change. (i) Neither the Company nor any of its Significant Subsidiaries is in violation or breach of its certificate of incorporation, by-laws, certificate of limited partnership, limited liability company agreement, partnership agreement or other constitutive documents, (ii) none of the Company, any of the Guarantors or any of the Companys Significant Subsidiaries is in default, and no event has occurred that, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any loan agreement, indenture, mortgage, deed of trust or other agreement or instrument to which it is a party or by which it is bound or to which any of its properties or assets is subject, (iii) none of the Company, any of the Guarantors or any of the Companys Significant Subsidiaries is in violation of any law or any rule, regulation, order or decree of any
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governmental agency or body or court having jurisdiction over the Company or its subsidiaries or any of their respective properties or assets or (iv) none of the Company, any of the Guarantors or any of the Companys Significant Subsidiaries has failed to obtain any license, permit, certificate, franchise or other governmental authorization or permit necessary for the conduct of its business or the ownership or holding of its property, except in the case of clauses (ii), (iii) and (iv), to the extent any such violation, breach, default or failure would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Change.
t) Governmental Approvals. No consent, approval, order or authorization of any governmental agency or body or court is required in connection with the consummation of the transactions contemplated by this Agreement, the Indenture, the Notes or the Guarantees, except for such consents, approvals, orders and authorizations required under the securities or Blue Sky laws of certain jurisdictions, and except, further, for such consents, approvals, orders and authorizations which have been obtained and are in full force and effect.
u) No Material Actions or Proceedings. Except as described or contemplated in the Disclosure Package and the Prospectus, there is no litigation or legal or governmental proceeding to which the Company or any Guarantor is a party or to which any property or assets of the Company or any Guarantor is subject or which is pending or, to the knowledge of the Company or any Guarantor, threatened against the Company or any Guarantor which if adversely determined, would, individually or in the aggregate, be reasonably likely to result in a Material Adverse Change.
v) Labor Matters. None of the Company, the Guarantors or any of the Companys Significant Subsidiaries is involved in any strike, job action or labor dispute with any group of employees that would reasonably be expected to have a Material Adverse Change, and, to the Companys knowledge, no such action or dispute is threatened.
w) Intellectual Property Rights. The Company, each of the Guarantors and each of the Companys Significant Subsidiaries own or possess adequate rights to use all material patents, trademarks, service marks, trade names, copyrights, licenses, inventions, trade secrets and other rights, and all registrations or applications relating thereto, described in the Disclosure Package and the Prospectus as being owned by them or necessary for the conduct of their business, except as such would not reasonably be expected to have a Material Adverse Change (individually or in the aggregate), and the Company is not aware of any pending or threatened claim to the contrary or any pending or threatened challenge by any other person to the rights of the Company and its subsidiaries with respect to the foregoing which, if determined adversely to the Company and its subsidiaries, would reasonably be expected to have a Material Adverse Effect (individually or in the aggregate).
x) No Additional Documents. There are no contracts or documents which would be required to be described in a prospectus contained in a registration statement on Form S-3 under the Securities Act or by the rules and regulations thereunder which have not been described in the Disclosure Package and the Prospectus.
y) Capital Stock and Long-Term Debt. Since the respective dates as of which information is given in the Disclosure Package and the Prospectus, and except as disclosed or
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contemplated in the Disclosure Package and the Prospectus, there has not been any material change in the capital stock, membership, partnership or other equity interests or material increase in long-term debt of the Company or its subsidiaries or any Material Adverse Change, or any development involving or which would reasonably be expected to involve a Material Adverse Change.
z) Liabilities and Dividends. Since the respective dates as of which information is given in the Disclosure Package and the Prospectus, and except as disclosed or contemplated in the Disclosure Package and the Prospectus, the Company and its subsidiaries have not incurred any liability or obligation, direct or contingent, or entered into any transaction, in each case not in the ordinary course of business, that would reasonably be expected to have a Material Adverse Change or declared or paid any special dividend on its capital stock, partnership or other equity interests.
aa) Company Not an Investment Company. The Company has been advised of the rules and requirements under the Investment Company Act of 1940, as amended (the Investment Company Act ). The Company is not, and after receipt of payment for the Notes and the application of the proceeds thereof as contemplated under the caption Use of Proceeds in the Preliminary Prospectus and the Prospectus will not be, required to register as an investment company within the meaning of the Investment Company Act.
bb) No Price Stabilization or Manipulation. The Company and the Guarantors have not taken and will not take, directly or indirectly, any action designed to result in stabilization or manipulation of the price of the Notes to facilitate the sale or resale of the Notes.
cc) No Unlawful Contributions or Other Payments. To the best of the Companys knowledge, none of the Company, any of the Guarantors or any of the Companys Significant Subsidiaries, nor, to the knowledge of the Company, any director, officer, agent, employee or other person associated with or acting on behalf of the Company or any of its subsidiaries, has (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 or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977 (the FCPA); or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment, in each case except as would not reasonably be expected to have a Material Adverse Change or as described in the Preliminary Prospectus and the Prospectus. The Company, the Guarantors and the Companys subsidiaries have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance with the FCPA.
dd) No Conflict with Money Laundering Laws. To the Companys knowledge, the operations of the Company, the Guarantors and the Companys subsidiaries are, and have been, conducted at all times in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the Money Laundering
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Laws ), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company, the Guarantors or any of the Companys Significant Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, the Guarantors or any of the Companys Significant Subsidiaries, threatened, except for any such action, suit or proceeding as would not reasonably be expected to have a Material Adverse Change.
ee) No Conflict with OFAC Laws. None of the Company, the Guarantors or any of the Companys Significant Subsidiaries nor, to the knowledge of the Company or the Guarantors, any director, officer, agent, employee or affiliate of the Company or any of the Guarantors is (A) currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department ( OFAC ); 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 subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.
ff) Compliance with Environmental Laws. Except as disclosed in the Disclosure Package and the Prospectus (i) to the knowledge of the Company, there has been no storage, disposal, generation, manufacture, refinement, transportation, handling or treatment of toxic wastes, medical wastes, hazardous wastes or hazardous substances by the Company or any of its subsidiaries (or any of their predecessors in interest) at, upon or from any of the property now or previously owned or leased by the Company or its subsidiaries in violation of any applicable law, ordinance, rule, regulation, order, judgment, decree or permit or which would require remedial action under any applicable law, ordinance, rule, regulation, order, judgment, decree or permit, except for any violation or remedial action which would not have, or would not be reasonably likely to have, singularly or in the aggregate with all such violations and remedial actions, a Material Adverse Change; and (ii) to the knowledge of the Company, there has been no material spill, discharge, leak, emission, injection, escape, dumping or release of any kind onto such property or into the environment surrounding such property of any toxic wastes, medical wastes, solid wastes, hazardous wastes or hazardous substances with respect to the Company or any of its subsidiaries, except for any such spill, discharge, leak, emission, injection, escape, dumping or release which would not have or would not be reasonably likely to have, singularly or in the aggregate with all such spills, discharges, leaks, emissions, injections, escapes, dumpings and releases, a Material Adverse Change; and the terms hazardous wastes, toxic wastes, hazardous substances and medical wastes shall have the meanings specified in any applicable local, state, federal and foreign laws or regulations with respect to environmental protection.
gg) ERISA Compliance. Except as disclosed in the Disclosure Package and the Prospectus, the Company is in compliance in all material respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder ( ERISA ); no reportable event (as defined in ERISA) has occurred with respect to any pension plan (as defined in ERISA) subject to Title IV of ERISA for which the Company would have any material liability; the Company has not incurred and does not expect to incur any liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any such pension plan or (ii) Sections 412
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or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations thereunder (the Code ) which, in the case of each of the foregoing clauses (i) and (ii), would result in a Material Adverse Change (other than contributions in the normal course which are not in default); and each pension plan for which the Company would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by action or by failure to act, which would reasonably be expected to cause the loss of such qualification.
hh) Sarbanes-Oxley Compliance . There is and has been no failure on the part of the Company and any of the Companys directors or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the Sarbanes-Oxley Act ), including Section 402 related to loans and Sections 302 and 906 related to certifications.
ii) Internal Controls and Procedures. The Company maintains a system of internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) sufficient to provide reasonable assurance that (i) transactions are executed in accordance with managements general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets, (iii) access to assets is permitted only in accordance with managements general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect thereto. The Companys internal controls over financial reporting were effective as of December 31, 2015 and, to the Companys knowledge, continue to be effective in all material respects. The Company is not aware of any material weaknesses in its internal control over financial reporting.
jj) Disclosure Controls and Procedures . The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange Act; and such disclosure controls and procedures have been designed to ensure that information required to be disclosed in the Companys reports under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Commissions rules and forms, and that such information is accumulated and communicated to the Companys management, including its principal executive officer and principal financial officer, in order to allow timely decisions regarding required disclosures; and such disclosure controls and procedures were effective at the reasonable assurance level at December 31, 2015 and, to the Companys knowledge, continue to be effective at the reasonable assurance level.
kk) Ranking . The Notes and the Guarantees will be pari passu with all existing and future unsecured and unsubordinated indebtedness of the Company and the Guarantors, as applicable.
Any certificate signed by an officer of the Company and delivered to the Representatives or to counsel for the Underwriters shall be deemed to be a representation and warranty by the Company to each Underwriter as to the matters set forth therein.
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S ECTION 2. Purchase, Sale and Delivery of the Notes.
a) The Notes. The Company agrees to issue and sell to the several Underwriters, severally and not jointly, all of the Notes upon the terms herein set forth. On the basis of the representations, warranties and agreements herein contained, and upon the terms but subject to the conditions herein set forth, each Underwriter agrees, severally and not jointly, to purchase from the Company the principal amount of Notes set forth opposite such Underwriters name on Schedule A at a purchase price of 98.839% of the principal amount of such Notes, payable on the Closing Date.
b) The Closing Date. Delivery of certificates for the Notes in global form to be purchased by the Underwriters and payment therefor shall be made at the offices of Davis Polk & Wardwell LLP at 450 Lexington Avenue, New York, NY (or such other place as may be agreed to by the Company and the Representatives) at 9:00 a.m., New York City time, on December 5, 2016, or such other time and date as the Underwriters and the Company shall mutually agree (the time and date of such closing are called the Closing Date ).
c) Public Offering of the Notes. The Representatives hereby advise the Company that the Underwriters intend to offer for sale to the public, as described in the Disclosure Package and the Prospectus, their respective portions of the Notes as soon after the Execution Time as the Representatives, in their sole judgment, have determined is advisable and practicable.
d) Payment for the Notes. Payment for the Notes shall be made at the Closing Date by wire transfer of immediately available funds to the order of the Company.
It is understood that the Representatives have been authorized, for their own accounts and for the accounts of the several Underwriters, to accept delivery of and receipt for, and make payment of the purchase price for, the Notes that the Underwriters have agreed to purchase. The Representatives may (but shall not be obligated to) make payment for any Notes to be purchased by any Underwriter whose funds shall not have been received by the Representatives by the Closing Date for the account of such Underwriter, but any such payment shall not relieve such Underwriter from any of its obligations under this Agreement.
e) Delivery of the Notes. The Company and the Guarantors shall deliver, or cause to be delivered, to the Representatives for the accounts of the several Underwriters certificates for the Notes at the Closing Date, against the irrevocable release of a wire transfer of immediately available funds for the amount of the purchase price therefor. The certificates for the Notes shall be in such denominations and registered in such names and denominations as the Representatives shall have requested at least two full business days prior to the Closing Date and shall be made available for inspection on the business day preceding the Closing Date at a location in New York City, as the Representatives may designate. Time shall be of the essence, and delivery at the time and place specified in this Agreement is a further condition to the obligations of the Underwriters.
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S ECTION 3. Covenants of the Company.
The Company and the Guarantors jointly and severally covenant and agree with each Underwriter as follows:
a) Compliance with Securities Regulations and Commission Requests. The Company, subject to Section 3(b), will comply with the requirements of Rule 430B of the Securities Act, and will promptly notify the Representatives, and confirm the notice in writing, of (i) the effectiveness during the Prospectus Delivery Period (as defined below) of any post-effective amendment to the Registration Statement or the filing of any supplement or amendment to the Preliminary Prospectus or the Prospectus, (ii) the receipt of any comments from the Commission during the Prospectus Delivery Period, (iii) any request by the Commission for any amendment to the Registration Statement or any amendment or supplement to the Preliminary Prospectus or the Prospectus or for additional information, and (iv) the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any order preventing or suspending the use of the Preliminary Prospectus or the Prospectus, or of the suspension of the qualification of the Notes for offering or sale in any jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes. The Company will promptly effect the filings necessary pursuant to Rule 424 of the Securities Act and will take such steps as it deems necessary to ascertain promptly whether the Preliminary Prospectus and the Prospectus transmitted for filing under Rule 424 of the Securities Act was received for filing by the Commission and, in the event that it was not, it will promptly file such document. During the Prospectus Delivery Period, the Company will use its reasonable best efforts to prevent the issuance of any stop order and, if any stop order is issued, to obtain the lifting thereof at the earliest possible moment.
b) Filing of Amendments. During such period beginning on the date of this Agreement and ending on the later of the Closing Date or such date as, in the opinion of counsel for the Underwriters, the Prospectus is no longer required by law to be delivered in connection with sales of the Notes by an Underwriter or dealer, including in circumstances where such requirement may be satisfied pursuant to Rule 172 of the Securities Act (the Prospectus Delivery Period ), the Company will give the Representatives notice of its intention to file or prepare any amendment to the Registration Statement (including any filing under Rule 462(b) of the Securities Act), or any amendment, supplement or revision to the Disclosure Package or the Prospectus, whether pursuant to the Securities Act, the Exchange Act or otherwise, will furnish the Representatives with copies of any such documents a reasonable amount of time prior to such proposed filing or use, as the case may be, and will not file or use any such document to which the Representatives or counsel for the Underwriters shall reasonably object.
c) Delivery of Registration Statements. The Company has furnished or will deliver to the Representatives and counsel for the Underwriters, without charge, signed copies of the Registration Statement as originally filed and of each amendment thereto (including exhibits filed therewith or incorporated by reference therein and documents incorporated or deemed to be incorporated by reference therein) and signed copies of all consents and certificates of experts, and will also deliver to the Representatives, without charge, a conformed copy of the Registration Statement as originally filed and of each amendment thereto (without exhibits) for each of the Underwriters. The Registration Statement and each amendment thereto furnished to the Underwriters will be identical to any electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
d) Delivery of Prospectuses. The Company will deliver to each Underwriter, without charge, as many copies of the Preliminary Prospectus as such Underwriter may
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reasonably request, and the Company hereby consents to the use of such copies for purposes permitted by the Securities Act. The Company will furnish to each Underwriter, without charge, during the Prospectus Delivery Period, such number of copies of the Prospectus as such Underwriter may reasonably request. The Preliminary Prospectus and the Prospectus and any amendments or supplements thereto furnished to the Underwriters will be identical to any electronically transmitted copies thereof filed with the Commission pursuant to EDGAR, except to the extent permitted by Regulation S-T.
e) Continued Compliance with Securities Laws . The Company will comply with the Securities Act and the Exchange Act so as to permit the completion of the distribution of the Notes as contemplated in this Agreement and in the Registration Statement, the Disclosure Package and the Prospectus. If at any time during the Prospectus Delivery Period, any event shall occur or condition shall exist as a result of which it is necessary, in the opinion of counsel for the Underwriters or for the Company, to amend the Registration Statement in order that the Registration Statement 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 or to amend or supplement the Disclosure Package or the Prospectus in order that the Disclosure Package or the Prospectus, as the case may be, will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the Initial Sale Time or at the time it is delivered or conveyed to a purchaser, not misleading, or if it shall be necessary, in the opinion of either such counsel, at any such time to amend the Registration Statement or amend or supplement the Disclosure Package or the Prospectus in order to comply with the requirements of any law, the Company will (1) notify the Representatives of any such event, development or condition and (2) promptly prepare and file with the Commission, subject to Section 3(b) hereof, such amendment or supplement as may be necessary to correct such statement or omission or to make the Registration Statement, the Disclosure Package or the Prospectus comply with such law, and the Company will furnish to the Underwriters, without charge, such number of copies of such amendment or supplement as the Underwriters may reasonably request.
f) Blue Sky Compliance. The Company shall cooperate with the Representatives and counsel for the Underwriters to qualify or register the Notes for sale under (or obtain exemptions from the application of) the state securities or blue sky laws of those jurisdictions designated by the Representatives, shall comply with such laws and shall continue such qualifications, registrations and exemptions in effect so long as required for the distribution of the Notes. The Company and each of the Guarantors shall not be required to qualify to transact business or to take any action that would subject the Company or any Guarantor to general service of process in any such jurisdiction where it is not presently qualified or where it would be subject to taxation as a foreign business. The Company and each of the Guarantors will advise the Representatives promptly of the suspension of the qualification or registration of (or any such exemption relating to) the Notes for offering, sale or trading in any jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event of the issuance of any order suspending such qualification, registration or exemption, the Company and each Guarantor shall use their respective best efforts to obtain the withdrawal thereof at the earliest possible moment.
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g) Use of Proceeds. The Company shall apply the net proceeds from the sale of the Notes sold by it in the manner described under the caption Use of Proceeds in the Preliminary Prospectus and the Prospectus.
h) Depositary. The Company will cooperate with the Underwriters and use its best efforts to permit the Notes to be eligible for clearance and settlement through the facilities of the Depositary.
i) Agreement Not to Offer or Sell Additional Securities. During the period commencing on the date hereof and ending on the Closing Date, the Company will not, without the prior written consent of the Representatives (which consent may be withheld at the sole discretion of the Representatives), directly or indirectly, sell, offer, contract or grant any option to sell, pledge, transfer or establish an open put equivalent position within the meaning of Rule 16a-1(h) under the Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any registration statement under the Securities Act in respect of, any debt securities of the Company similar to the Notes or securities exchangeable for or convertible into debt securities similar to the Notes (other than as contemplated by this Agreement with respect to the Notes).
j) Final Term Sheet . The Company and the Guarantors will prepare a final term sheet containing only a description of the Notes and their offering, in a form approved by the Underwriters and attached substantially in the form of Annex III hereto, and will file such term sheet pursuant to Rule 433(d) under the Securities Act within the time required by such rule (such term sheet, the Final Term Sheet ). Any such Final Term Sheet is an Issuer Free Writing Prospectus for purposes of this Agreement.
k) Permitted Free Writing Prospectuses . The Company and the Guarantors represent that they have not made, and agree that, unless they obtain the prior written consent of the Representatives, they will not make, any offer relating to the Notes that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a free writing prospectus (as defined in Rule 405 of the Securities Act) required to be filed by the Company with the Commission or retained by the Company under Rule 433 of the Securities Act; provided that the prior written consent of the Representatives shall be deemed to have been given in respect of any Issuer Free Writing Prospectuses included in Annex I to this Agreement. Any such free writing prospectus consented to or deemed to be consented to by the Representatives is hereinafter referred to as a Permitted Free Writing Prospectus . The Company agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus, and (ii) it has complied and will comply, as the case may be, with the requirements of Rules 164 and 433 of the Securities Act applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record keeping. The Company consents to the use by any Underwriter of a free writing prospectus that (a) is not an issuer free writing prospectus as defined in Rule 433 under the Securities Act, and (b) contains only (i) information describing the preliminary terms of the Notes or their offering, (ii) information permitted by Rule 134 under the Securities Act or (iii) information that describes the final terms of the Notes or their offering and that is included in the Final Term Sheet of the Company contemplated in Section 3(j).
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l) Notice of Inability to Use Automatic Shelf Registration Statement Form . If at any time during the Prospectus Delivery Period, the Company or any Guarantor receives from the Commission a notice pursuant to Rule 401(g)(2) or otherwise ceases to be eligible to use the automatic shelf registration statement form, the Company and the Guarantors will (i) promptly notify the Representatives, (ii) promptly file a new registration statement or post-effective amendment on the proper form relating to the Notes, in a form satisfactory to the Representatives, (iii) use their best efforts to cause such registration statement of post-effective amendment to be declared effective and (iv) promptly notify the Representatives of such effectiveness. The Company and the Guarantors will take all other action necessary or appropriate to permit the public offering and sale of the Notes to continue as contemplated in the registration statement that was the subject of the Rule 401(g)(2) notice or for which the Company or any Guarantor has otherwise become ineligible. References herein to the Registration Statement shall include such new registration statement or post-effective amendment, as the case may be.
m) Filing Fees . The Company agrees to pay the required Commission filing fees relating to the Notes within the time required by and in accordance with Rule 456(b)(1) and 457(r) of the Securities Act.
n) Compliance with Sarbanes-Oxley Act. During the Prospectus Delivery Period, the Company and the Guarantors will comply with all applicable securities and other laws, rules and regulations, including, without limitation, the Sarbanes-Oxley Act, and use their best efforts to cause the Companys and each Guarantors respective directors and officers, in their capacities as such, to comply with such laws, rules and regulations, including, without limitation, the provisions of the Sarbanes-Oxley Act.
o) No Manipulation of Price. Neither the Company nor any Guarantor will take, directly or indirectly, any action designed to cause or result in, the stabilization or manipulation of the price of the Notes to facilitate the sale or resale of the Notes.
The Representatives, on behalf of the several Underwriters, may, in their sole discretion, waive in writing the performance by the Company or the Guarantors of any one or more of the foregoing covenants or extend the time for their performance.
S ECTION 4. Payment of Expenses. The Company and the Guarantors agree to pay all costs, fees and expenses incurred in connection with the performance of their obligations hereunder and in connection with the transactions contemplated hereby, including without limitation (i) all expenses incident to the issuance and delivery of the Notes (including all printing and engraving costs), (ii) all necessary issue, transfer and other stamp taxes in connection with the issuance and sale of the Notes, (iii) all fees and expenses of the Companys or any Guarantors counsel, independent public or certified public accountants and other advisors to the Company or any Guarantor, (iv) all costs and expenses incurred in connection with the preparation, printing, filing, shipping and distribution of the Registration Statement (including financial statements, exhibits, schedules, consents and certificates of experts), each Issuer Free Writing Prospectus, the Preliminary Prospectus and the Prospectus, and all amendments and supplements thereto, and this Agreement, the Indenture, the DTC Agreement and the Notes, (v) all filing fees, reasonable attorneys fees and expenses incurred by the Company, the Guarantors
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or the Underwriters in connection with qualifying or registering (or obtaining exemptions from the qualification or registration of) all or any part of the Notes for offer and sale under the state securities or blue sky laws, and, if requested by the Representatives, preparing a Blue Sky Survey or memorandum, and any supplements thereto, advising the Underwriters of such qualifications, registrations and exemptions, (vi) the filing fees incident to, and the reasonable fees and disbursements of counsel to the Underwriters in connection with, the review, if any, by the Financial Industry Regulatory Authority, Inc. ( FINRA ) of the terms of the sale of the Notes, (vii) the fees and expenses of the Trustee (including the fees and disbursements of counsel for the Trustee) in connection with the Indenture and the Notes, (viii) any fees payable in connection with the rating of the Notes with the ratings agencies, (ix) all fees and expenses (including reasonable fees and expenses of counsel) of the Company in connection with approval of the Notes by the Depositary for book-entry transfer, (x) all other fees, costs and expenses referred to in Item 14 of Part II of the Registration Statement, and (xi) all other fees, costs and expenses incurred in connection with the performance of their obligations hereunder for which provision is not otherwise made in this Section. Except as provided in this Section 4 and Sections 6, 8 and 9 hereof, the Underwriters shall pay their own expenses, including the fees and disbursements of their counsel.
S ECTION 5. Conditions of the Obligations of the Underwriters. The obligations of the several Underwriters to purchase and pay for the Notes as provided herein on the Closing Date shall be subject to the accuracy of the representations and warranties on the part of the Company set forth in Section 1 hereof as of the date hereof, as of the Initial Sale Time, and as of the Closing Date as though then made and to the timely performance by the Company of its covenants and other obligations hereunder, and to each of the following additional conditions:
a) Effectiveness of Registration Statement . The Registration Statement shall have become effective under the Securities Act and no stop order suspending the effectiveness of the Registration Statement shall have been issued under the Securities Act and no proceedings for that purpose shall have been instituted or be pending or threatened by the Commission, any request on the part of the Commission for additional information shall have been complied with to the reasonable satisfaction of counsel to the Underwriters and the Company shall not have received from the Commission any notice pursuant to Rule 401(g)(2) of the Securities Act objecting to use of the automatic shelf registration statement form. The Preliminary Prospectus and the Prospectus shall have been filed with the Commission in accordance with Rule 424(b) of the Securities Act (or any required post-effective amendment providing such information shall have been filed and declared effective in accordance with the requirements of Rule 430A of the Securities Act).
b) Accountants Comfort Letter. On the date hereof, the Representatives shall have received from PricewaterhouseCoopers LLC, an independent registered public accounting firm for the Company, a letter dated the date hereof addressed to the Underwriters, in form and substance satisfactory to the Representatives with respect to the audited and unaudited financial statements and certain financial information contained in the Registration Statement, the Preliminary Prospectus and the Prospectus.
c) Bring-down Comfort Letter . On the Closing Date, the Representatives shall have received from PricewaterhouseCoopers LLP, independent public or certified public accountants
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for the Company, a letter dated such date, in form and substance satisfactory to the Representatives, to the effect that they reaffirm the statements made in the letter furnished by them pursuant to subsection (b) of this Section 5, except that the specified date referred to therein for the carrying out of procedures shall be no more than three business days prior to the Closing Date.
d) No Objection. If the Registration Statement and/or the offering of the Notes has been filed with FINRA for review, FINRA shall not have raised any objection with respect to the fairness and reasonableness of the underwriting terms and arrangements.
e) No Material Adverse Change or Ratings Agency Change. For the period from and after the date of this Agreement and prior to the Closing Date:
(i) in the judgment of the Representatives there shall not have occurred any Material Adverse Change;
(ii) there shall not have been any change or decrease specified in the letter or letters referred to in paragraph (c) of this Section 5 which is, in the sole judgment of the Representatives, so material and adverse as to make it impractical or inadvisable to proceed with the offering or delivery of the Notes as contemplated by the Prospectus; and
(iii) there shall not have occurred any downgrading, nor shall any notice have been given of any intended or potential downgrading or of any review for a possible change that does not indicate the direction of the possible change, in the rating accorded any securities of the Company or any of its subsidiaries by any nationally recognized statistical rating organization as such term is defined in Section 3(a)(62) under the Exchange Act.
f) Opinion of Counsel for the Company. On the Closing Date, the Representatives shall have received the favorable opinion and negative assurance letter of Simpson Thacher & Bartlett LLP, counsel for the Company and the Guarantors, dated as of such Closing Date, substantially in the form of which is attached as Exhibit B-1 and Exhibit B-2 .
g) Opinion of Ann D. Davidson. On the Closing Date, the Representatives shall have received the favorable opinion of Ann D. Davidson, General Counsel of the Company, dated as of such Closing Date, substantially in the form of which is attached as Exhibit C .
h) Opinion of Counsel for the Underwriters. On the Closing Date, the Representatives shall have received the favorable opinion of Davis Polk & Wardwell LLP, counsel for the Underwriters, dated as of such Closing Date, with respect to such matters as may be reasonably requested by the Underwriters.
i) Officers Certificate. On the Closing Date, the Representatives shall have received a written certificate from the Company and the Guarantors executed by their respective Chairman of the Board or their respective Chief Executive Officer and by their respective Chief Financial Officer or Chief Accounting Officer, dated as of such Closing Date, to the effect that:
(i) the Company and the Guarantors have received no stop order suspending the effectiveness of the Registration Statement, and no proceedings for such purpose have been instituted or threatened by the Commission;
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(ii) the Company and the Guarantors have not received from the Commission any notice pursuant to Rule 401(g)(2) of the Securities Act objecting to use of the automatic shelf registration statement form;
(iii) the representations, warranties and covenants of the Company and the Guarantors set forth in Section 1 of this Agreement are true and correct with the same force and effect as though expressly made on and as of such Closing Date; and
(iv) the Company and the Guarantors have complied with all the agreements hereunder and satisfied all the conditions on their part to be performed or satisfied hereunder at or prior to such Closing Date.
j) Additional Documents. On or before the Closing Date, the Representatives and counsel for the Underwriters shall have received such information, documents and opinions as they may reasonably require for the purposes of enabling them to pass upon the issuance and sale of the Notes as contemplated herein, or in order to evidence the accuracy of any of the representations and warranties, or the satisfaction of any of the conditions or agreements, herein contained.
If any condition specified in this Section 5 is not satisfied when and as required to be satisfied, this Agreement may be terminated by the Representatives by notice to the Company at any time on or prior to the Closing Date, which termination shall be without liability on the part of any party to any other party, except that Sections 4, 6, 8, 9 and 17 shall at all times be effective and shall survive such termination.
S ECTION 6. Reimbursement of Underwriters Expenses. If this Agreement is terminated by the Representatives pursuant to Section 5 or 11(i) (with respect to the Companys securities) or (iv), or if the sale to the Underwriters of the Notes on the Closing Date is not consummated because of any refusal, inability or failure on the part of the Company or any Guarantor to perform any agreement herein or to comply with any provision hereof, the Company and the Guarantors agree to reimburse the Representatives and the other Underwriters (or such Underwriters as have terminated this Agreement with respect to themselves), severally, upon demand for all out-of-pocket expenses (including fees and disbursements of counsel) that shall have been reasonably incurred by the Representatives and the Underwriters in connection with the proposed purchase and the offering and sale of the Notes, including but not limited to fees and disbursements of counsel, printing expenses, travel expenses, postage, facsimile and telephone charges.
S ECTION 7. Effectiveness of this Agreement. This Agreement shall not become effective until the execution of this Agreement by the parties hereto.
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S ECTION 8. Indemnification.
(a) Indemnification of the Underwriters. The Company and the Guarantors hereby jointly and severally agree to indemnify and hold harmless each Underwriter, its directors, officers, and employees, and each person, if any, who controls any Underwriter within the meaning of the Securities Act and the Exchange Act against any loss, claim, damage, liability or expense, as incurred, to which such Underwriter or such director, officer, employee or controlling person may become subject, under the Securities Act, the Exchange Act or other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Company), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based (i) upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) upon any untrue statement or alleged untrue statement of a material fact contained in any Company Additional Written Communication, any Issuer Free Writing Prospectus, the Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; and to reimburse each Underwriter and each such director, officer, employee and controlling person for any and all expenses (including the reasonable fees and disbursements of counsel chosen by the Representatives) as such expenses are reasonably incurred by such Underwriter or such director, officer, employee or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however , that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives expressly for use in the Registration Statement, any Company Additional Written Communication, any Issuer Free Writing Prospectus, the Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto). The indemnity agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Company and the Guarantors may otherwise have.
(b) Indemnification of the Company and the Guarantors. Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Company and the Guarantors, each of their respective directors, each of their respective officers who signed the Registration Statement and each person, if any, who controls the Company or the Guarantors within the meaning of the Securities Act or the Exchange Act, against any loss, claim, damage, liability or expense, as incurred, to which the Company, the Guarantors or any such respective director, officer or controlling person may become subject, under the Securities Act, the Exchange Act, or other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of such Underwriter), insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based (i) upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement, or any amendment thereto, or the omission or alleged omission therefrom of a material fact required to be stated therein or necessary to make the statements therein not misleading; or (ii) upon any untrue statement or alleged untrue statement of a material fact contained in any Company Additional
20
Written Communication, any Issuer Free Writing Prospectus, the Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto) or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, any Company Additional Written Communication, any Issuer Free Writing Prospectus, the Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto), in reliance upon and in conformity with written information furnished to the Company by any Underwriter through the Representatives expressly for use therein; and to reimburse the Company, the Guarantors or any such respective director, officer or controlling person for any legal and other expense reasonably incurred by the Company, any Guarantor or any such respective director, officer or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action. The Company and the Guarantors hereby acknowledge that the only information furnished to the Company by any Underwriter through the Representatives expressly for use in the Registration Statement, any Company Additional Written Communication, any Issuer Free Writing Prospectus, the Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto) are the statements set forth in paragraphs 9 and 10 under the heading entitled Underwriting in the Preliminary Prospectus and the Prospectus. The indemnity agreement set forth in this Section 8(b) shall be in addition to any liabilities that each Underwriter may otherwise have.
(c) Notifications and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 8, notify the indemnifying party in writing 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 for contribution or otherwise than under the indemnity agreement contained in this Section 8 or to the extent it is not prejudiced as a proximate result of such failure. In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in, and, to the extent that it shall elect, jointly with all other indemnifying parties similarly notified, by written notice delivered to the indemnified party, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, such indemnified party shall have the right to employ its own counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such indemnified party, unless: (i) the employment of such counsel has been specifically authorized in writing by the indemnifying party; (ii) the indemnifying party has failed promptly to assume the defense and employ counsel reasonably satisfactory to the indemnified party; or (iii) the named parties to any such action (including any impleaded parties) include both such indemnified party and the indemnifying party or any affiliate of the indemnifying party, and such indemnified party shall have reasonably concluded that either (x) there may be one or more legal defenses available to it which are different from or additional to those available to the indemnifying party or such affiliate of the indemnifying party or (y) a conflict may exist between such indemnified party and the indemnifying party or such affiliate of the indemnifying party (it being understood, however, that the indemnifying party shall not, in connection with any one such action or separate but
21
substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to a single firm of local counsel) for all such indemnified parties, which firm shall be designated in writing by the Representatives and that all such reasonable fees and expenses shall be reimbursed as they are incurred). Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying partys election so to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 8 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless the indemnified party shall have employed separate counsel in accordance with the proviso to the next preceding sentence, in which case the reasonable fees and expenses of counsel shall be at the expense of the indemnifying party.
(d) Settlements. The indemnifying party under this Section 8 shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage, liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel as contemplated by Section 8(c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent (i) includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.
S ECTION 9. Contribution. If the indemnification provided for in Section 8 is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses referred to therein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Guarantors, on the one hand, and the Underwriters, on the other hand, from the offering of the Notes pursuant to this Agreement 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 and the Guarantors, on the one hand, and the Underwriters, on the other hand, in connection with the statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company and the Guarantors, on the one hand, and the Underwriters, on the other hand, in
22
connection with the offering of the Notes pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the applicable series of Notes pursuant to this Agreement (before deducting expenses) received by the Company, and the total underwriting discount received by the Underwriters, in each case as set forth on the front cover page of the Prospectus bear to the aggregate initial public offering price of the applicable series of Notes as set forth on such cover. The relative fault of the Company, on the one hand, and the Underwriters, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, on the one hand, or the Underwriters, on the other hand, and the parties relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in Section 8(c), any reasonable legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim.
The Company and the Underwriters agree that it would not be just and equitable if contribution pursuant to this Section 9 were determined by pro rata allocation (even if the Underwriters were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this Section 9.
Notwithstanding the provisions of this Section 9, no Underwriter shall be required to contribute any amount in excess of the underwriting commissions received by such Underwriter in connection with the Notes underwritten by it and distributed to the public. 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 to contribute pursuant to this Section 9 are several, and not joint, in proportion to their respective underwriting commitments as set forth opposite their names in Schedule A . For purposes of this Section 9, each director, officer, and employee of an Underwriter and each person, if any, who controls an Underwriter within the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as such Underwriter, and each director of the Company and the Guarantors, each officer of the Company and the Guarantors who signed the Registration Statement, and each person, if any, who controls the Company or the Guarantors with the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution as the Company.
S ECTION 10. Default of One or More of the Several Underwriters. If, on the Closing Date, any one or more of the several Underwriters shall fail or refuse to purchase Notes that it or they have agreed to purchase hereunder on such date, and the aggregate principal amount of Notes, which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase does not exceed 10% of the aggregate principal amount of the Notes to be purchased on such date, the other Underwriters shall be obligated, severally, in the proportion to the aggregate principal amounts of such Notes set forth opposite their respective names on Schedule A bears to the aggregate principal amount of such Notes set forth opposite the names of all such non-defaulting Underwriters, or in such other proportions as may be specified by the Representatives
23
with the consent of the non-defaulting Underwriters, to purchase such Notes which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on such date. If, on the Closing Date, any one or more of the Underwriters shall fail or refuse to purchase such Notes and the aggregate principal amount of such Notes with respect to which such default occurs exceeds 10% of the aggregate principal amount of Notes to be purchased on such date, and arrangements satisfactory to the Representatives and the Company for the purchase of such Notes are not made within 48 hours after such default, this Agreement shall terminate without liability of any party to any other party except that the provisions of Sections 4, 6, 8, 9 and 17 shall at all times be effective and shall survive such termination. In any such case, either the Representatives or the Company shall have the right to postpone the Closing Date, but in no event for longer than seven days in order that the required changes, if any, to the Registration Statement, any Issuer Free Writing Prospectus, the Preliminary Prospectus or the Prospectus or any other documents or arrangements may be effected.
As used in this Agreement, the term Underwriter shall be deemed to include any person substituted for a defaulting Underwriter under this Section 10. Any action taken under this Section 10 shall not relieve any defaulting Underwriter from liability in respect of any default of such Underwriter under this Agreement.
S ECTION 11. Termination of this Agreement. Prior to the Closing Date, this Agreement may be terminated by the Representatives by notice given to the Company if at any time (i) trading or quotation in any of the Companys securities shall have been suspended or limited by the Commission or the New York Stock Exchange, or trading in securities generally on either the Nasdaq Stock Market or the New York Stock Exchange shall have been suspended or limited, or minimum or maximum prices shall have been generally established on any of such stock exchanges by the Commission or FINRA; (ii) a general banking moratorium shall have been declared by any of federal or New York authorities; (iii) there shall have occurred any outbreak or escalation of national or international hostilities or any crisis or calamity involving the United States, or any change in the United States or international financial markets, or any substantial change or development involving a prospective substantial change in United States or international political, financial or economic conditions, as in the judgment of the Representatives is material and adverse and makes it impracticable or inadvisable to market the Notes in the manner and on the terms described in the Disclosure Package or the Prospectus or to enforce contracts for the sale of securities; (iv) in the judgment of the Representatives there shall have occurred any Material Adverse Change; or (v) there shall have occurred a material disruption in commercial banking or securities settlement or clearance services. Any termination pursuant to this Section 11 shall be without liability of any party to any other party except as provided in Sections 4 and 6 hereof, and provided further that Sections 4, 6, 8, 9 and 17 shall survive such termination and remain in full force and effect.
S ECTION 12. No Fiduciary Duty . Each of the Company and the Guarantors acknowledges and agrees that: (i) the purchase and sale of the Notes pursuant to this Agreement, including the determination of the public offering price of the Notes and any related discounts and commissions, is an arms-length commercial transaction between the Company and the Guarantors, on the one hand, and the several Underwriters, on the other hand, and the Company and the Guarantors are capable of evaluating and understanding and understand and accept the terms, risks and conditions of the transactions contemplated by this Agreement; (ii) in connection
24
with each transaction contemplated hereby and the process leading to such transaction each Underwriter is and has been acting solely as a principal and is not the financial advisor, agent or fiduciary of the Company, the Guarantors, or any of their respective affiliates, stockholders, creditors or employees or any other party; (iii) no Underwriter has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Company or the Guarantors with respect to any of the transactions contemplated hereby or the process leading thereto (irrespective of whether such Underwriter has advised or is currently advising the Company or the Guarantors on other matters) and no Underwriter has any obligation to the Company or the Guarantors with respect to the offering contemplated hereby except the obligations expressly set forth in this Agreement; (iv) the several Underwriters and their respective affiliates may be engaged in a broad range of transactions that involve interests that differ from those of the Company and the Guarantors and that the several Underwriters have no obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Underwriters have not provided any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby and the Company and the Guarantors have consulted their own legal, accounting, regulatory and tax advisors to the extent deemed appropriate.
This Agreement supersedes all prior agreements and understandings (whether written or oral) between the Company, the Guarantors and the several Underwriters with respect to the subject matter hereof. The Company and the Guarantors hereby waive and release, to the fullest extent permitted by law, any claims that the Company may have against the several Underwriters with respect to any breach or alleged breach of agency or fiduciary duty.
S ECTION 13. Representations and Indemnities to Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements of the Company and the Guarantors, of their respective officers and of the several Underwriters set forth in or made pursuant to this Agreement (i) will remain operative and in full force and effect, regardless of any (A) investigation, or statement as to the results thereof, made by or on behalf of any Underwriter, the officers or employees of any Underwriter, or any person controlling the Underwriter, the Company, the Guarantors, the officers or employees of the Company or the Guarantors, or any person controlling the Company or the Guarantors, as the case may be or (B) acceptance of the Notes and payment for them hereunder and (ii) will survive delivery of and payment for the Notes sold hereunder and any termination of this Agreement.
S ECTION 14. Notices. All communications hereunder shall be in writing and shall be mailed, hand delivered or telecopied and confirmed to the parties hereto as follows:
If to the Representatives:
Merrill Lynch, Pierce, Fenner & Smith
Incorporated
50 Rockefeller Plaza
New York, NY 10020
Facsimile: 212-901-7881
Attention: High Grade Debt Capital Markets Transaction Management/Legal
25
or
Barclays Capital Inc.
745 Seventh Avenue
New York, NY 10019
Facsimile: 1-646-834-8133
Attention: Syndicate Registration
or
Deutsche Bank Securities Inc.
60 Wall Street
New York, NY 10005
Facsimile: 212-797-4561
Attention: Debt Capital Market Syndicate/General Counsel
with a copy to:
Davis Polk & Wardwell LLP
450 Lexington Avenue
New York, NY 10017
Facsimile: 212-450-6138
Attention: John B. Meade
If to the Company or the Guarantors:
L-3 Communications Corporation
600 Third Avenue
New York, NY 10016
Facsimile: 212-805-5306
Attention: Ann D. Davidson
with a copy to:
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017
Facsimile: 212-455-2502
Attention: Avrohom J. Kess and Mark A. Brod
Any party hereto may change the address for receipt of communications by giving written notice to the others.
S ECTION 15. Successors. This Agreement will inure to the benefit of and be binding upon the parties hereto, including any substitute Underwriters pursuant to Section 10 hereof, and to the benefit of the directors, officers, employees, agents and controlling persons referred to in Sections 8 and 9, and in each case their respective successors, and no other person will have any right or obligation hereunder. The term successors shall not include any purchaser of the Notes as such from any of the Underwriters merely by reason of such purchase.
26
S ECTION 16. Partial Unenforceability. The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable.
S ECTION 17. Trial by Jury . Each of the Company and the Guarantors (on each of their behalf and, to the extent permitted by applicable law, on behalf of each of their respective stockholders and affiliates) and the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
S ECTION 18. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE.
S ECTION 19. General Provisions. This Agreement may be executed in two or more counterparts, each one of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement may not be amended or modified unless in writing by all of the parties hereto, and no condition herein (express or implied) may be waived unless waived in writing by each party whom the condition is meant to benefit. The Section headings herein are for the convenience of the parties only and shall not affect the construction or interpretation of this Agreement.
Each of the parties hereto acknowledges that it is a sophisticated business person who was adequately represented by counsel during negotiations regarding the provisions hereof, including, without limitation, the indemnification provisions of Section 8 and the contribution provisions of Section 9, and is fully informed regarding said provisions. Each of the parties hereto further acknowledges that the provisions of Sections 8 and 9 hereto fairly allocate the risks in light of the ability of the parties to investigate the Company, its affairs and its business in order to assure that adequate disclosure has been made in the Registration Statement, the Disclosure Package and the Prospectus (and any amendments and supplements thereto), as required by the Securities Act and the Exchange Act.
27
If the foregoing is in accordance with your understanding of our agreement, kindly sign and return to the Company the enclosed copies hereof, whereupon this instrument, along with all counterparts hereof, shall become a binding agreement among the Company, the Guarantors and the several Underwriters in accordance with its terms.
Very truly yours, | ||||
L-3 COMMUNICATIONS CORPORATION, as Issuer |
||||
By: |
/s/ Stephen M. Souza |
|||
Name: | Stephen M. Souza | |||
Title: | Vice President and Treasurer |
Guarantors: |
ELECTRODYNAMICS, INC. |
INTERSTATE ELECTRONICS CORPORATION |
L-3 ADVANCED PROGRAMS, INC. |
L-3 APPLIED TECHNOLOGIES, INC. |
L-3 CHESAPEAKE SCIENCES CORPORATION |
L-3 COMMUNICATIONS AIS GP CORPORATION |
L-3 COMMUNICATIONS AVIONICS SYSTEMS, INC. |
L-3 COMMUNICATIONS CINCINNATI ELECTRONICS CORPORATION |
L-3 COMMUNICATIONS ELECTRON TECHNOLOGIES, INC. |
L-3 COMMUNICATIONS EO/IR, INC. |
L-3 COMMUNICATIONS ESSCO, INC. |
L-3 COMMUNICATIONS FLIGHT CAPITAL LLC |
L-3 COMMUNICATIONS FLIGHT INTERNATIONAL AVIATION LLC |
L-3 COMMUNICATIONS FOREIGN HOLDINGS, INC. |
L-3 COMMUNICATIONS INVESTMENTS INC. |
L-3 COMMUNICATIONS MARIPRO, INC. |
L-3 COMMUNICATIONS MOBILE-VISION, INC. |
L-3 COMMUNICATIONS SECURITY AND DETECTION SYSTEMS, INC. |
L-3 COMMUNICATIONS VECTOR INTERNATIONAL AVIATION LLC |
L-3 COMMUNICATIONS VERTEX AEROSPACE LLC |
L-3 COMMUNICATIONS WESTWOOD CORPORATION |
L-3 DOMESTIC HOLDINGS, INC. |
L-3 FUZING AND ORDNANCE SYSTEMS, INC. |
L-3 UNIDYNE, INC. |
L-3 UNMANNED SYSTEMS, INC. |
PAC ORD INC. |
POWER PARAGON, INC. |
SPD ELECTRICAL SYSTEMS, INC. |
SPD SWITCHGEAR INC. |
Underwriting Agreement
L-3 AFGHANISTAN, LLC | ||||
L-3 ARMY SUSTAINMENT LLC | ||||
L-3 CENTAUR, LLC | ||||
L-3 CTC AVIATION HOLDINGS INC. | ||||
L-3 CTC AVIATION LEASING (US) INC. | ||||
L-3 CTC AVIATION TRAINING (US) INC. | ||||
L-3 INVESTMENTS, LLC | ||||
As Guarantors |
By: |
/s/ Stephen M. Souza |
|||
Name: | Stephen M. Souza | |||
Title: | Vice President and Treasurer |
L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P., a Delaware limited partnership | ||||||
As a Guarantor |
By: L-3 COMMUNICATIONS AIS GP CORPORATION, as General Partner |
By: |
/s/ Stephen M. Souza |
|||
Name: | Stephen M. Souza | |||
Title: | Vice President and Treasurer |
MUSTANG TECHNOLOGY GROUP, L.P., a Texas limited partnership | ||||
As a Guarantor |
By: L-3 COMMUNICATIONS CORPORATION, as General Partner |
By: |
/s/ Stephen M. Souza |
|||
Name: | Stephen M. Souza | |||
Title: | Vice President and Treasurer |
Underwriting Agreement
The foregoing Underwriting Agreement is hereby confirmed and accepted by the Representatives as of the date first above written.
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED |
||||
BARCLAYS CAPITAL INC. | ||||
DEUTSCHE BANK SECURITIES INC. | ||||
Acting as Representatives of the several Underwriters named in the attached Schedule A. |
||||
By: | Merrill Lynch, Pierce, Fenner & Smith | |||
Incorporated | ||||
By: |
/s/ Happy Hazelton |
|||
Name: | Happy Hazelton | |||
Title: | Managing Director | |||
By: | Barclays Capital Inc. | |||
By: |
/s/ Pamela Kendall |
|||
Name: | Pamela Kendall | |||
Title: | Director | |||
By: | Deutsche Bank Securities Inc. | |||
By: |
/s/ Eunice Kang |
|||
Name: | Eunice Kang | |||
Title: | Director | |||
By: |
/s/ John Han |
|||
Name: | John Han | |||
Title: | Director |
Underwriting Agreement
SCHEDULE A
Underwriters |
Aggregate
Principal Amount of Notes to be Purchased |
|||
Merrill Lynch, Pierce, Fenner & Smith Incorporated |
$ | 82,500,000 | ||
Barclays Capital Inc. |
82,500,000 | |||
Deutsche Bank Securities Inc. |
82,500,000 | |||
MUFG Securities Americas Inc. |
38,500,000 | |||
Scotia Capital (USA) Inc. |
38,500,000 | |||
SMBC Nikko Securities America, Inc. |
38,500,000 | |||
SunTrust Robinson Humphrey, Inc. |
38,500,000 | |||
U.S. Bancorp Investments, Inc. |
38,500,000 | |||
Wells Fargo Securities, LLC |
38,500,000 | |||
BB&T Capital Markets, a division of BB&T Securities, LLC |
22,000,000 | |||
BNY Mellon Capital Markets, LLC |
22,000,000 | |||
HSBC Securities (USA) Inc. |
16,500,000 | |||
Comerica Securities, Inc. |
11,000,000 | |||
Total |
$ | 550,000,000 |
Sch-1
ANNEX II
Company Additional Written Communication
None
A-2-1
ANNEX III
L-3 COMMUNICATIONS CORPORATION
EXHIBIT A
Guarantors
L-3 ADVANCED PROGRAMS, INC., a Delaware corporation
L-3 APPLIED TECHNOLOGIES, INC., a Delaware corporation
L-3 COMMUNICATIONS AIS GP CORPORATION, a Delaware corporation
L-3 COMMUNICATIONS AVIONICS SYSTEMS, INC., a Delaware corporation
L-3 COMMUNICATIONS ELECTRON TECHNOLOGIES, INC., a Delaware corporation
L-3 COMMUNICATIONS ESSCO, INC., a Delaware corporation
L-3 COMMUNICATIONS FLIGHT CAPITAL LLC, a Delaware limited liability company
L-3 COMMUNICATIONS FLIGHT INTERNATIONAL AVIATION LLC, a Delaware limited liability company
L-3 COMMUNICATIONS FOREIGN HOLDINGS, INC., a Delaware corporation
L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P., a Delaware limited partnership
L-3 COMMUNICATIONS INVESTMENTS INC., a Delaware corporation
L-3 COMMUNICATIONS SECURITY AND DETECTION SYSTEMS, INC., a Delaware corporation
L-3 COMMUNICATIONS VECTOR INTERNATIONAL AVIATION LLC, a Delaware limited liability company
L-3 COMMUNICATIONS VERTEX AEROSPACE LLC, a Delaware limited liability company
L-3 DOMESTIC HOLDINGS, INC., a Delaware corporation
L-3 FUZING AND ORDNANCE SYSTEMS, INC., a Delaware corporation
L-3 UNIDYNE, INC., a Delaware corporation
PAC ORD INC., a Delaware corporation
POWER PARAGON, INC., a Delaware corporation
SPD ELECTRICAL SYSTEMS, INC., a Delaware corporation
SPD SWITCHGEAR INC., a Delaware corporation
L-3 AFGHANISTAN, LLC, a Delaware limited liability company
L-3 ARMY SUSTAINMENT LLC, a Delaware limited liability company
L-3 CENTAUR, LLC, a Delaware limited liability company
L-3 CTC AVIATION HOLDINGS INC., a Delaware corporation
L-3 CTC AVIATION LEASING (US) INC., a Delaware corporation
L-3 CTC AVIATION TRAINING (US) INC., a Delaware corporation
L-3 INVESTMENTS, LLC, a Delaware limited liability company
ELECTRODYNAMICS, INC., an Arizona corporation
INTERSTATE ELECTRONICS CORPORATION, a California corporation
L-3 CHESAPEAKE SCIENCES CORPORATION, a Maryland corporation
L-3 COMMUNICATIONS CINCINNATI ELECTRONICS CORPORATION, an Ohio corporation
L-3 COMMUNICATIONS EO/IR, INC., a Florida corporation
L-3 COMMUNICATIONS MARIPRO, INC., a California corporation
L-3 COMMUNICATIONS MOBILE-VISION, INC., a New Jersey corporation
A-3-1
L-3 COMMUNICATIONS WESTWOOD CORPORATION, a Nevada corporation
L-3 UNMANNED SYSTEMS, INC., a Texas corporation
MUSTANG TECHNOLOGY GROUP, L.P., a Texas limited partnership
A-3-2
Exhibit 4.6
L-3 COMMUNICATIONS CORPORATION
as Issuer
and
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.
as Trustee
Eighth Supplemental Indenture
Dated as of December 5, 2016
$550,000,000 3.85% Senior Notes due December 15, 2026
EIGHTH SUPPLEMENTAL INDENTURE dated as of December 5, 2016 among L-3 Communications Corporation, a Delaware corporation (the Company ), the guarantors listed on the signature pages hereto (the Guarantors ) and The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee ).
W I T N E S S E T H:
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into an Indenture, dated as of May 21, 2010 (the Original Indenture ), with the Trustee;
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into the First Supplemental Indenture to the Original Indenture on May 21, 2010, under which the Companys 4.75% Senior Notes due 2020 were established as a separate Series of Securities under the Original Indenture;
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into the Second Supplemental Indenture to the Original Indenture on February 7, 2011, under which the Companys 4.95% Senior Notes due 2021 were established as a separate Series of Securities under the Original Indenture;
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into the Third Supplemental Indenture to the Original Indenture on November 22, 2011, under which the Companys 3.95% Senior Notes due 2016 were established as a separate Series of Securities under the Original Indenture;
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into the Fourth Supplemental Indenture to the Original Indenture on February 3, 2012, under which certain subsidiaries of the Company became Guarantors (as defined in the Original Indenture) in accordance with the terms of the Original Indenture;
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into the Fifth Supplemental Indenture to the Original Indenture on May 28, 2014, under which the Companys 1.50% Senior Notes due 2017 were established as a separate Series of Securities under the Original Indenture and the Companys 3.95% Senior Notes due 2024 were established as a separate Series of Securities under the Original Indenture;
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into the Sixth Supplemental Indenture to the Original Indenture on June 21, 2016, under which the Company made certain changes and eliminations to the Original Indenture, without the consent of any Holder. The changes and eliminations set forth in the Sixth Supplemental Indenture apply only to each Series of Securities issued on or after the date of the Sixth Supplemental Indenture;
WHEREAS, the Company and the guarantors listed on the signature pages thereto have heretofore entered into the Seventh Supplemental Indenture to the Original Indenture on October 31, 2016, under which certain subsidiaries of the Company became Guarantors (as defined in the Original Indenture) in accordance with the terms of the Original Indenture;
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WHEREAS, the Original Indenture is incorporated herein by this reference and the Original Indenture, as supplemented by the Fourth Supplemental Indenture, the Sixth Supplemental Indenture, the Seventh Supplemental Indenture and this Eighth Supplemental Indenture, is herein called the Indenture ;
WHEREAS, under the Original Indenture, a new Series of Securities may at any time be established pursuant to a supplemental indenture executed by the Company and the Trustee;
WHEREAS, the Company proposes to create under the Indenture a new Series of Securities;
WHEREAS, the Company desires to issue $550,000,000 in aggregate principal amount of Notes (as defined below), which will be a new Series of Securities under the Indenture;
WHEREAS, all conditions necessary to authorize the execution and delivery of this Eighth Supplemental Indenture and to make it a legal, valid and binding obligation of the Company and the Guarantors have been done or performed.
NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties hereto hereby agree to the following provisions:
Capitalized terms used but not defined herein have the meanings ascribed thereto in the Original Indenture.
ARTICLE I
3.85% Senior Notes due 2026
SECTION 1.01 Establishment and Terms .
There is hereby established a new Series of Securities to be issued under the Indenture, to be designated as the Companys 3.85% Senior Notes due 2026 (the Notes ).
The aggregate principal amount of Notes that may be authenticated and delivered under the Indenture is unlimited. The Notes that are to be authenticated and delivered on the date hereof (the Initial Notes ) will be in an aggregate principal amount of $550,000,000.
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With respect to any additional Notes (the Additional Notes ) the Company elects to issue under the Indenture, the Company shall set forth in an Officers Certificate the following information:
(i) | the aggregate principal amount of such Additional Notes to be authenticated and delivered pursuant to this Indenture; and |
(ii) | the issue price and the issue date of such Additional Notes, including the date from which interest shall accrue. |
For purposes of the Indenture, notes will not be deemed to be Additional Notes of a Series unless the maturity date, interest payment dates, record dates and interest rate are identical to the Initial Notes for that Series.
The Initial Notes and any Additional Notes shall be considered collectively as a single class for all purposes of the Indenture. Holders of the Initial Notes and any Additional Notes will vote and consent together on all matters to which such Holders are entitled to vote or consent as one class, and none of the Holders of the Initial Notes or any Additional Notes shall have the right to vote or consent as a separate class on any matter to which such Holders are entitled to vote or consent.
The Notes shall each be issued in the form of one or more Global Securities in substantially the form set out in Exhibit A . The initial Depositary with respect to the Notes shall be The Depository Trust Company ( DTC ).
SECTION 1.02 Maturity, Payment of Principal and Interest .
The Notes will mature on December 15, 2026.
The Notes will bear interest at the rate of 3.85% per annum. The interest payment dates with respect to the Notes will be June 15 and December 15 of each year. The first interest payment date with respect to the Initial Notes will be June 15, 2017. Interest payable on each June 15 and December 15 shall be paid to the Person in whose name the applicable Note is registered on the immediately preceding June 1 and December 1, respectively. Interest on the Initial Notes will accrue from December 5, 2016. Interest will be computed on the basis of a 360-day year of twelve 30-day months. If any interest payment date falls on a day that is not a Business day, then payment of interest will be made on the next succeeding Business day. No interest will accrue on the amount so payable for the period from such interest payment date to the date payment is made.
All payments of principal, premium (if any) and interest on the Notes shall be made in accordance with Section 4.1 of the Original Indenture and in the manner set forth in Section 2.13 of the Original Indenture and Exhibit A hereto.
SECTION 1.03 No Sinking Fund or Payments of Additional Amounts .
The Notes will not be subject to a sinking fund and no payments of Additional Amounts shall be made on the Notes.
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SECTION 1.04 Optional Redemption .
The Company may, at its option, redeem the Notes in whole at any time or in part from time to time, prior to September 15, 2026 (the Par Call Date ), on at least 15 but not more than 60 days prior notice, at a redemption price equal to the greater of:
(i) | 100% of the principal amount of the Notes being redeemed, and |
(ii) | the present value of the Remaining Scheduled Payments on the Notes being redeemed on the redemption date, discounted to the date of redemption, on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate plus 25 basis points. |
At any time on or after September 15, 2026, the Company may, at its option, redeem the Notes in whole at any time or in part from time to time, on at least 15 but not more than 60 days prior notice, at a redemption price equal to 100% of the principal amount of the Notes being redeemed.
If the Company elects to redeem the Notes pursuant to this Section 1.04, it shall also pay accrued and unpaid interest, if any, to, but excluding, the date of redemption, subject to the rights of Holders on the relevant record date to receive interest due on the relevant interest payment date.
In determining the redemption price and accrued interest pursuant to this Section 1.04, interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
For the purposes of this Section 1.04, the following definitions are applicable:
Comparable Treasury Issue means, with respect to the Notes, the United States Treasury security selected by the Reference Treasury Dealer appointed by the Company as having an actual or interpolated maturity comparable to the Remaining Scheduled Payments of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Scheduled Payments of such Notes.
Comparable Treasury Price means, with respect to any redemption date, (A) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (B) if the Company is given fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations.
Reference Treasury Dealer means (A) Merrill Lynch, Pierce, Fenner & Smith Incorporated, Barclays Capital Inc. and Deutsche Bank Securities, Inc. (or their respective affiliates which are Primary Treasury Dealers) and each of their respective successors; provided , however , that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a Primary Treasury Dealer ), the Company shall substitute therefor another Primary Treasury Dealer; and (B) any other Primary Treasury Dealer(s) selected by the Company.
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Reference Treasury Dealer Quotations means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 3:30 p.m. New York City time on the third Business Day preceding such redemption date.
Remaining Scheduled Payments means, with respect to any Notes, the remaining scheduled payments of the principal thereof to be redeemed and interest thereon that would be due after the related redemption date but for such redemption as if such Notes matured on the Par Call Date; provided , however , that, if such redemption date is not an interest payment date with respect to such Note, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to such redemption date.
Treasury Rate means, with respect to any redemption date, the rate per annum equal to the semiannual equivalent yield to maturity or interpolated maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.
SECTION 1.05 Notice of Redemption; Notes Redeemed in Part . Any notice of redemption may, at the Companys discretion, be subject to one or more conditions precedent. In addition, if any notice of redemption is subject to one or more conditions precedent, such notice shall state that, in the Companys discretion, the redemption date may be delayed until such time as any or all such conditions shall be satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied by the redemption date, or by the redemption date as so delayed.
In the event of a partial redemption of the Notes represented by Global Securities, the Trustee shall select the Notes to be redeemed in accordance with the procedures of DTC. If any Note is to be redeemed in part only, the notice of redemption that relates to that Note will state the portion of the principal amount of that Note that is to be redeemed.
SECTION 1.06 Offer To Repurchase Upon Change Of Control Triggering Event .
(a) Upon the occurrence of a Change of Control Triggering Event, unless the Company has exercised its right to redeem the Notes pursuant to Section 1.04 of this Eighth Supplemental Indenture, each Holder of such Notes shall have the right to require the Company to repurchase all or any part (equal to $2,000 and integral multiples of $1,000 in excess thereof) of such Holders Notes pursuant to the offer described below (the Change of Control Offer ) at an offer price in cash equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase (the Change of Control Payment ), subject to the rights of Holders on the relevant record date to receive interest due on the relevant interest payment date. Within 60 days following the date upon which any Change of Control Triggering
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Event occurs, or at the Companys option, prior to any Change of Control Triggering Event but subject to the occurrence of a Change of Control Triggering Event, the Company shall mail, or deliver electronically if held by DTC in accordance with DTCs customary procedures, a notice to each Holder describing the transaction or transactions that constitute the Change of Control and offering to repurchase Notes on the date specified in such notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (or delivered electronically) (the Change of Control Payment Date ), pursuant to the procedures required by the Indenture and described in such notice. The notice, if mailed (or delivered electronically) prior to the occurrence of the Change of Control Triggering Event, shall state that the Change of Control Offer is conditioned on the occurrence of a Change of Control Triggering Event on or prior to the Change of Control Payment Date and that, in the Companys discretion, the Change of Control Payment Date may be delayed until such time (including more than 60 days after the date the notice of the Change of Control Offer was delivered) as such condition shall be satisfied or waived, or such Change of Control Offer may not occur and such notice may be rescinded in the event that such condition shall not have been satisfied by the Change of Control Payment Date, or by the Change of Control Payment Date so delayed, or such notice may be rescinded at any time in the Companys discretion if in the Companys good faith judgment such condition will not be satisfied. The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event.
(b) On the Change of Control Payment Date, the Company shall, to the extent lawful:
(i) accept for payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer and not withdrawn;
(ii) deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions thereof so tendered and not withdrawn; and
(iii) deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers Certificate stating the aggregate principal amount of Notes or portions thereof being purchased by the Company.
The Paying Agent shall promptly mail or deliver electronically to each Holder of Notes so tendered the Change of Control Payment for such Notes, and the Trustee shall promptly authenticate and mail (or cause to be transferred by book entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that each such new Note shall be in a principal amount of $2,000 and integral multiples of $1,000 in excess thereof.
The Company will not be required to make a Change of Control Offer upon a Change of Control Triggering Event if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in Article III of the Original Indenture and this Section 1.06 applicable to a Change of Control Offer made by the Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer.
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(c) For the purposes of this Section 1.06, the following definitions are applicable:
Change of Control means the occurrence of any one of the following:
(1) the sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Company and its Subsidiaries taken as a whole to any person (as that term is used in Section 13(d)(3) of the Exchange Act) other than to the Company or one of its Subsidiaries;
(2) the consummation of any transaction (including without limitation, any merger or consolidation) the result of which is that any person (as defined above) becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock of the Company, measured by voting power rather than number of shares, other than by a person whose outstanding Voting Stock, measured by voting power rather than number of shares, is owned 100%, directly or indirectly, by L-3 Communications Holdings, Inc.; or
(3) the adoption of a plan relating to the liquidation or dissolution of the Company.
Change of Control Triggering Event means the Notes cease to be rated Investment Grade by at least two of the three Rating Agencies on any date during the 60-day period (the Trigger Period ) commencing on the earlier of (1) the occurrence of a Change of Control and (2) public notice of the pending occurrence of a Change of Control or our intention to effect a Change of Control (which Trigger Period will be extended for so long as any of the Rating Agencies has publicly announced that it is considering a possible ratings change).
Notwithstanding the foregoing, no Change of Control Triggering Event will be deemed to have occurred in connection with any particular Change of Control (1) if the Rating Agencies making the reduction in rating that causes the Notes to cease to be rated Investment Grade do not announce or publicly confirm or inform the Trustee in writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control has occurred at the time of the ratings reduction) and (2) unless and until such Change of Control has actually been consummated.
Fitch means Fitch Inc., a subsidiary of Fimalac, S.A., and its successors.
Investment Grade means a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); a rating of Baa3 or better by Moodys (or its equivalent under any successor rating categories of Moodys); and a rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P).
Moodys means Moodys Investors Service Inc., a subsidiary of Moodys Corporation, and its successors.
S&P means Standard & Poors Ratings Services, a division of The McGraw-Hill Companies, Inc., and its successors.
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Rating Agency means each of Moodys, S&P and Fitch; provided , that if any of Moodys, S&P and Fitch ceases to provide rating services to issuers or investors, the Company may appoint a nationally recognized replacement for such Rating Agency.
Voting Stock of any specified Person as of any date means the capital stock of such Person that is at the time entitled to vote generally in the election of the board of directors of such Person.
SECTION 1.07 Denominations . The Notes shall be issued only in fully registered book-entry form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof.
ARTICLE II
MISCELLANEOUS
SECTION 2.01 Trustee Matters . The recitals in this Eighth Supplemental Indenture are made by the Company only and not by the Trustee and the Trustee assumes no responsibility for their correctness. The Trustee makes no representation as to the validity or sufficiency of this Eighth Supplemental indenture. All of the provisions contained in the Original Indenture in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect of the Notes and of this Eighth Supplemental Indenture as fully and with like effect as if set forth herein in full.
SECTION 2.02 Ratification. The Original Indenture is in all respects ratified and confirmed, and, with respect to the Notes, the Original Indenture and this Eighth Supplemental Indenture shall be read, taken and construed as one and the same instrument; provided that in case of conflict between this Eighth Supplemental Indenture and the Original Indenture, this Eighth Supplemental Indenture shall control. This Eighth Supplemental Indenture shall apply only to the Notes, and not to any other Series of Securities that have been or, except as provided in the terms thereof, may be issued under the Original Indenture.
SECTION 2.03 Counterpart Originals. This Eighth Supplemental Indenture may be simultaneously executed in several counterparts, each of which shall be deemed to be an original, and such counterparts shall together constitute one and the same instrument.
SECTION 2.04 Performance by DTC, Euroclear or Cede & Co . Neither the Company nor the Trustee shall have any responsibility for the performance of DTC, Euroclear or Cede & Co., or any of their participants, direct or indirect, of their respective obligations under the rules and procedures governing their operations.
SECTION 2.05 Trust Indenture Act Controls . If any provision of this Eighth Supplemental Indenture limits, qualifies or conflicts with the duties imposed by operation of Section 318(c) of the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb), the imposed duties shall control.
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SECTION 2.06 Effect of Headings . The Article and Section headings herein have been inserted for convenience of reference only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions hereof.
SECTION 2.07 Governing Law . This Eighth Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New York.
SECTION 2.08 Provisions for the Sole Benefit of Parties and Holders . Nothing in the Original Indenture, as supplemented, amended and modified by this Eighth Supplemental Indenture, or in the Notes, expressed or implied, is intended or shall be construed to confer upon, or to give or grant to, any person or entity, other than the Company, the Trustee, the Paying Agent and the registered owners of the Notes, any legal or equitable right, remedy or claim under or by reason of the Indenture or any covenant, condition or stipulation hereof, and all covenants, stipulations, promises and agreements in the Indenture contained by and on behalf of the Company shall be for the sole and exclusive benefit of the Company, the Trustee, the Paying Agent and the registered owners of the Notes.
SECTION 2.09 Foreign Account Tax Compliance Act (FATCA) . The Company agrees (i) to provide the Trustee with such reasonable information as it has in its possession to enable the Trustee to determine whether any payments pursuant to the Indenture are subject to the withholding requirements described in Section 1471(b) of the US Internal Revenue Code of 1986 (the Code) or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations, or agreements thereunder or official interpretations thereof (Applicable Law), and (ii) that the Trustee shall be entitled to make any withholding or deduction from payments under the Indenture to the extent necessary to comply with Applicable Law, for which the Trustee shall not have any liability.
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IN WITNESS WHEREOF, the parties hereto have caused this Eighth Supplemental Indenture to be duly executed as of the day and year first above written.
L-3 COMMUNICATIONS CORPORATION, as Issuer | ||||
By: |
/s/ Stephen M. Souza |
|||
Name: | Stephen M. Souza | |||
Title: | Vice President and Treasurer |
EIGHTH SUPPLEMENTAL INDENTURE
Guarantors:
ELECTRODYNAMICS, INC.
INTERSTATE ELECTRONICS CORPORATION
L-3 ADVANCED PROGRAMS, INC.
L-3 APPLIED TECHNOLOGIES, INC.
L-3 CHESAPEAKE SCIENCES CORPORATION
L-3 COMMUNICATIONS AIS GP CORPORATION
L-3 COMMUNICATIONS AVIONICS SYSTEMS, INC.
L-3 COMMUNICATIONS CINCINNATI ELECTRONICS CORPORATION
L-3 COMMUNICATIONS ELECTRON TECHNOLOGIES, INC.
L-3 COMMUNICATIONS EO/IR, INC.
L-3 COMMUNICATIONS ESSCO, INC.
L-3 COMMUNICATIONS FLIGHT CAPITAL LLC,
L-3 COMMUNICATIONS FLIGHT INTERNATIONAL AVIATION LLC
L-3 COMMUNICATIONS FOREIGN HOLDINGS, INC.
L-3 COMMUNICATIONS INVESTMENTS INC.
L-3 COMMUNICATIONS MARIPRO, INC.
L-3 COMMUNICATIONS MOBILE-VISION, INC.
L-3 COMMUNICATIONS SECURITY AND DETECTION SYSTEMS, INC.
L-3 COMMUNICATIONS VECTOR INTERNATIONAL AVIATION LLC
L-3 COMMUNICATIONS VERTEX AEROSPACE LLC
L-3 COMMUNICATIONS WESTWOOD CORPORATION
L-3 DOMESTIC HOLDINGS, INC.
L-3 FUZING AND ORDNANCE SYSTEMS, INC.
L-3 UNIDYNE, INC.
L-3 UNMANNED SYSTEMS, INC.
PAC ORD INC.
POWER PARAGON, INC.
SPD ELECTRICAL SYSTEMS, INC.
SPD SWITCHGEAR INC.
L-3 AFGHANISTAN, LLC
L-3 ARMY SUSTAINMENT LLC
L-3 CENTAUR, LLC
L-3 CTC AVIATION HOLDINGS INC.
L-3 CTC AVIATION LEASING (US) INC.
L-3 CTC AVIATION TRAINING (US) INC.
L-3 INVESTMENTS, LLC
As Guarantors
By: |
/s/ Stephen M. Souza |
|||||
Name: | Stephen M. Souza | |||||
Title: | Vice President and Treasurer |
EIGHTH SUPPLEMENTAL INDENTURE
L-3 COMMUNICATIONS INTEGRATED SYSTEMS L.P., a Delaware limited partnership | ||||||
As a Guarantor |
By: | L-3 COMMUNICATIONS AIS GP CORPORATION, as General Partner |
By: |
/s/ Stephen M. Souza |
|||||
Name: | Stephen M. Souza | |||||
Title: | Vice President and Treasurer |
MUSTANG TECHNOLOGY GROUP, L.P., a Texas limited partnership | ||||||
As a Guarantor |
By: | L-3 COMMUNICATIONS CORPORATION, as General Partner |
By: |
/s/ Stephen M. Souza |
|||||
Name: | Stephen M. Souza | |||||
Title: | Vice President and Treasurer |
EIGHTH SUPPLEMENTAL INDENTURE
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,
as Trustee
By: |
/s/ Lawrence M. Kusch |
|||
Name: | Lawrence M. Kusch | |||
Title: | Vice President |
EIGHTH SUPPLEMENTAL INDENTURE
EXHIBIT A
FORM OF NOTE
[FACE OF SECURITY]
[Global Note]
[Certificated Note]
[IF THIS SECURITY IS TO BE A GLOBAL SECURITY, IT SHALL BEAR THE FOLLOWING LEGEND:]
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.
[FOR AS LONG AS THIS GLOBAL SECURITY IS DEPOSITED WITH OR ON BEHALF OF THE DEPOSITORY TRUST COMPANY IT SHALL BEAR THE FOLLOWING LEGEND:]
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ( DTC ), NEW YORK, NEW YORK, TO L-3 COMMUNICATIONS CORPORATION OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
A-1
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO DTC, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSORS NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.
A-2
L-3 COMMUNICATIONS CORPORATION
3.85% SENIOR NOTES DUE 2026
No. | CUSIP No. 502413 BE6 | |||
ISIN No. US502413BE66 | ||||
$ |
L-3 Communications Corporation, a Delaware corporation (the Issuer), for value received promises to pay to Cede & Co., or registered assigns, the principal sum of Dollars[, or such greater or lesser amount as indicated on the Schedule I hereto,] 1 on December 15, 2026.
Interest Payment Dates: | June 15 and December 15 | |
Record Dates: | June 1 and December 1 |
Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place.
IN WITNESS WHEREOF, the Issuer has caused this Security to be signed manually or by facsimile by its duly authorized officers.
Dated:
L-3 COMMUNICATIONS CORPORATION | ||
By: |
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Name: | ||
Title: | ||
By: |
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Name: | ||
Title: |
Attest: | ||
By |
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Name: | ||
Title: |
1 | To be included in any Global Note. |
A-3
Certificate of Authentication: | ||
This is one of the Securities of the Series designated therein referred to in the within-mentioned Indenture. | ||
THE BANK OF NEW YORK MELLON | ||
TRUST COMPANY, N.A., as Trustee |
By: |
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Dated: | ||||
Authorized Signatory |
A-4
[REVERSE OF SECURITY]
L-3 COMMUNICATIONS CORPORATION
3.85% SENIOR NOTES DUE 2026
This Security is one of a duly authorized issue of 3.85% Senior Notes due 2026 (the Securities ) of L-3 Communications Corporation, a Delaware corporation (the Issuer ). The Issuer issued the Securities under an Indenture dated as of May 21, 2010 (the Original Indenture ) among the Issuer, the guarantors listed on the signature pages thereto and The Bank of New York Mellon Trust Company, N.A., as trustee (the Trustee ), as supplemented by the Fourth Supplemental Indenture dated as of February 3, 2012, Sixth Supplemental Indenture dated as of June 21, 2016, Seventh Supplemental Indenture dated as of October 31, 2016 and the Eighth Supplemental Indenture dated as of December 5, 2016 (the Eighth Supplemental Indenture and, together with the Original Indenture, the Indenture ). Capitalized terms used herein for which no definition is provided herein shall have the meanings set forth in the Indenture.
1. Interest . The Issuer promises to pay interest on the principal amount of this Security at 3.85% per annum from December 5, 2016 until maturity. The Issuer will pay interest semiannually on June 15 and December 15 of each year, or if any such day is not a Business Day, on the next succeeding Business Day. Interest on the Securities will accrue from the most recent interest payment date on which interest has been paid or, if no interest has been paid, from December 5, 2016; provided that if there is no existing Default in the payment of interest, and if this Security 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; provided , further , that the first interest payment date shall be June 15, 2017. Interest will be computed on the basis of a 360-day year of twelve 30-day months.
2. Method of Payment . The Issuer will pay interest on the Securities (except defaulted interest) to the Persons who are registered Holders of Securities at the close of business on the record date next preceding the interest payment date, even if such Securities are canceled after such record date and on or before such interest payment date. The Holder must surrender this Security to a Paying Agent to collect principal payments. The Issuer will pay the principal of and interest on the Securities in money of the United States of America that at the time of payment is legal tender for payment of public and private debts. Such amounts shall be payable at the offices of the Trustee or any Paying Agent; provided that at the option of the Issuer, the Issuer may pay such amounts (1) by wire transfer with respect to Securities represented by a Global Note or (2) by check payable in such money mailed to a Holders registered address with respect to any Security.
3. Paying Agent and Registrar . Initially, the Trustee will act as Paying Agent and Registrar. The Issuer may change any Paying Agent, Registrar, co-registrar or additional paying agent without notice to any Holder. The Issuer or any of the Issuers subsidiaries may act in any such capacity.
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4. Indenture . The terms of the Securities include those stated in the Indenture and the provisions made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb) (the TIA ), as in effect on the date of the Eighth Supplemental Indenture; provided , that if any provision of the Indenture limits, qualifies or conflicts with the duties imposed by operation of TIA Section 318(c), the imposed duties shall control. Holders are referred to the Indenture and the TIA for a statement of such terms and provisions. The Securities are unsecured senior obligations of the Issuer and rank equally with all of the Issuers existing and future unsecured indebtedness. The Indenture provides for the issuance of other Series of debt securities thereunder.
5. Optional Redemption .
(a) The Issuer may, at its option, redeem the Securities in whole at any time or in part from time to time, prior to the Par Call Date on at least 15 but not more than 60 days prior notice, at a redemption price equal to the greater of:
(i) | 100% of the principal amount of the Securities being redeemed, and |
(ii) | the present value of the Remaining Scheduled Payments on the Securities being redeemed on the redemption date, discounted to the date of redemption, on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months), at the Treasury Rate plus 25 basis points. |
(b) If the Issuer elects to redeem the Securities, it will also pay accrued and unpaid interest, if any, to, but excluding, the date of redemption, subject to the rights of Holders on the relevant record date to receive interest due on the relevant interest payment date. In determining the redemption price and accrued interest, interest will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
6. Mandatory Redemption .
Except as set forth in paragraph 7 below, the Issuer shall not be required to make mandatory redemption payments with respect to the Securities.
7. Repurchase At Option Of Holder .
Upon the occurrence of a Change of Control Triggering Event, unless the Issuer has exercised its right to redeem the Securities as described above, each Holder will have the right to require the Issuer to repurchase all or any part (equal to $2,000 and integral multiples of $1,000 in excess thereof) of such Holders Securities pursuant to the offer described below (the Change of Control Offer ) at an offer price in cash equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the date of purchase (the Change of Control Payment ), subject to the rights of Holders on the relevant record date to receive interest due on the relevant interest payment date; provided , that the Issuer will not be required to make a Change of Control Offer upon a Change of Control Triggering Event if a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in the Indenture applicable to a Change of Control Offer made by the
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Issuer and purchases all Securities validly tendered and not withdrawn under such Change of Control Offer. Within 60 days following the date upon which any Change of Control Triggering Event occurs, or at the Issuers option, prior to any Change of Control Triggering Event but subject to the occurrence of a Change of Control Triggering Event, the Issuer will mail, or deliver electronically if held by DTC in accordance with DTCs customary procedures, a notice to each Holder describing the transaction or transactions that constitute the Change of Control and offering to repurchase Securities on the date specified in such notice, which date will be no earlier than 30 days and no later than 60 days from the date such notice is mailed (or delivered electronically) (the Change of Control Payment Date ), pursuant to the procedures required by the Indenture and described in such notice. The notice, if mailed (or delivered electronically) prior to the occurrence of the Change of Control Triggering Event, will state that the Change of Control Offer is conditioned on the occurrence of a Change of Control Triggering Event on or prior to the Change of Control Payment Date and that, in the Issuers discretion, the Change of Control Payment Date may be delayed until such time (including more than 60 days after the date the notice of the Change of Control Offer was delivered) as such condition shall be satisfied or waived, or such Change of Control Offer may not occur and such notice may be rescinded in the event that such condition shall not have been satisfied by the Change of Control Payment Date, or by the Change of Control Payment Date so delayed, or such notice may be rescinded at any time in the Issuers discretion if in the Issuers good faith judgment such condition will not be satisfied. The Issuer shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of the Securities as a result of a Change of Control Triggering Event.
8. Notice of Redemption .
Notice of redemption will be mailed at least 15 days but not more than 60 days before the redemption date to each Holder whose Securities are to be redeemed at its registered address. Securities in denominations larger than $2,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the Securities held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Securities or portions thereof called for redemption. Any notice of redemption may, at the Issuers discretion, be subject to one or more conditions precedent. In addition, if any notice of redemption is subject to one or more conditions precedent, such notice shall state that, in the Issuers discretion, the redemption date may be delayed until such time as any or all such conditions shall be satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied by the redemption date, or by the redemption date as so delayed. In the event of a partial redemption of the Securities represented by Global Securities, the Trustee shall select the Securities to be redeemed in accordance with the procedures of DTC. If any Security is to be redeemed in part only, the notice of redemption that relates to that Security will state the portion of the principal amount of that Security that is to be redeemed.
9. Denominations, Transfer, Exchange .
The Securities are in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Registrar and the Trustee
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may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the Issuer may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Issuer need not exchange or register the transfer of any Security or portion of a Security selected for redemption, except for the unredeemed portion of any Security being redeemed in part. Also, it need not exchange or register the transfer of any Securities for a period of 15 days before a selection of Securities to be redeemed or during the period between a record date and the corresponding interest payment date.
10. Persons Deemed Owners .
The registered Holder of a Security may be treated as its owner for all purposes.
11. Amendment, Supplement and Waiver .
Subject to certain exceptions, the Indenture or the Securities may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the then outstanding Securities, and any existing default or compliance with any provision of the Indenture or the Securities may be waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Securities (including consents obtained in connection with a purchase of, or tender offer or exchange offer for, the Securities). Without the consent of any Holder of a Security, the Indenture or the Securities may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Securities in addition to or in place of certificated Securities, to provide for the assumption of the Issuers obligations to Holders of the Securities in case of a merger or consolidation, to make any change that would provide any additional rights or benefits to the Holders of the Securities or that does not adversely affect the legal rights under the Indenture of any such Holder, to secure the Securities or to add additional guarantors, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the Trust Indenture Act or to conform the text of the Indenture or the Securities to any provision in the Prospectus, dated June 21, 2016, as supplemented by the Prospectus Supplement, dated November 29, 2016, with respect to the Securities, under the captions Description of the Senior Notes and Description of Senior Unsecured Notes to the extent that such provision was intended to be a verbatim recitation of the Indenture, the Subsidiary Guarantees or the Securities.
12. Defaults and Remedies .
An Event of Default means any of the following: (i) default for 30 days in the payment when due of interest with respect to, the Securities; (ii) default in payment when due of the principal of or premium, if any, on the Securities; (iii) failure by the Issuer to comply with the covenants contained in section 1.06 of the Eighth Supplemental Indenture or section 5.1 of the Indenture; (iv) failure by the Issuer to comply with any of its other agreements in the Original Indenture or the Securities for 90 days after written notice is received by the Issuer and the Trustee from the Holders of at least 25% in aggregate principal amount of the Securities then outstanding; (v) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness of the Issuer or any of its Subsidiaries (or the payment of which is guaranteed by the Issuer or any of its Subsidiaries) whether such Indebtedness or guarantee now exists, or is created after the date hereof, which
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default relates to a payment at final maturity or results in the acceleration of such Indebtedness prior to its express maturity and, in each case, the principal amount of such Indebtedness, together with the principal amount of all other Indebtedness that is not paid at final maturity or results in the maturity of which has been so accelerated, aggregates $100.0 million or more; (vi) failure by the Issuer or any of its Subsidiaries to pay final judgments aggregating in excess of $100.0 million, which judgments are not paid, discharged or stayed for a period of 60 days; (vii) certain events of bankruptcy or insolvency with respect to the Issuer or any of its Significant Subsidiaries; and (viii) except as permitted by the Indenture, any Subsidiary Guarantee of a Significant Subsidiary shall be held in any judicial proceeding to be unenforceable or invalid.
If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Securities by notice in writing, may declare the principal amount of and accrued and unpaid interest on all the Securities to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency, with respect to the Issuer or any Significant Subsidiary, the aggregate principal amount of and accrued and unpaid interest on all the Securities will become due and payable without further action or notice. Holders of the Securities may not enforce the Indenture or the Securities except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Securities notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal, premium or interest) if it determines that withholding notice is in their interest.
The Holders of a majority in aggregate principal amount of the Securities then outstanding by notice to the Trustee may on behalf of the Holders of all of the Securities waive any existing Default or Event of Default and its consequences under the Indenture except a continuing Default or Event of Default in the payment of interest on, or the principal of, the Securities.
13. Trustee Dealings with Issuer .
The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Issuer or its Affiliates, and may otherwise deal with the Issuer or its Affiliates, as if it were not the Trustee.
14. No Recourse against Others .
A director, officer, employee, incorporator or stockholder, of the Issuer or any Subsidiary of the Issuer, as such, shall not have any liability for any obligations of the Issuer or any Subsidiary of the Issuer under the Securities, the Indenture or the Subsidiary Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Securities.
15. Authentication . The Securities shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent.
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16. CUSIP Numbers . Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed thereon.
17. Indenture to Control; Governing Law . In the case of any conflict between the provisions of this Security and the Indenture, the provisions of the Indenture shall control. The Indenture and the Securities shall be governed by and construed under the laws of the State of New York.
18. Abbreviations and Definitions . Customary abbreviations may be used in the name of a Holder 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).
The Issuer will furnish to any Holder upon written request and without charge a copy of the Indenture. Request may be made to:
L-3 Communications Corporation
600 Third Avenue, 34 th Floor
New York, New York 10016
Attention: Secretary
Telephone: (212) 697-1111
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SCHEDULE I 2
The initial aggregate principal amount of Securities evidenced by the Certificate to which this Schedule is attached is $ . The notations on the following table evidence decreases and increases in the aggregate principal amount of Securities evidenced by such Certificate.
Decrease in Principal Amount of Securities |
Increase in Principal Amount of Securities |
Principal Amount of Securities Remaining After Such Decrease or Increase |
Notation by Security Registrar |
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2 | To be included in any Global Note. |
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ASSIGNMENT FORM
To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security to
(Insert assignees social security or tax I.D. number)
(Print or type assignees name, address and zip code)
and irrevocably appoint |
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as agent to transfer this Security on the books of the Issuer. The agent may substitute another to act for him. |
Date: | Your Signature: |
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(Sign exactly as your name appears on the face of this Security) |
Signature Guarantee: |
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(Participant in a Recognized Signature | ||
Guaranty Medallion Program) |
This assignment relates to $ principal amount of 3.85% Senior Notes due 2026 of L-3 Communications Corporation held in 3 book-entry or definitive form by (the Transferor ).
The Transferor has requested the Trustee by written order to exchange or register the transfer of a Note or Notes.
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[INSERT NAME OF TRANSFEROR] | ||
By: |
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Name: | ||
Title: | ||
Address: |
Date:
3 | Fill in blank or check appropriate box, as applicable. |
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Exhibit 5.3
Simpson Thacher & Bartlett LLP |
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425 LEXINGTON AVENUE NEW YORK , NY 10017-3954 |
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TELEPHONE : +1-212-455-2000 FACSIMILE : +1-212-455-2502 |
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Direct Dial Number |
E-mail Address |
December 5, 2016
L-3 Communications Corporation
600 Third Avenue,
New York, New York 10016
Ladies and Gentlemen:
We have acted as counsel to L-3 Communications Corporation, a Delaware corporation (the Company), in connection with the issuance of $550,000,000 aggregate principal amount of 3.85% Senior Notes due 2026 (the Notes) issued by the Company and the related guarantees of the subsidiaries of the Company named on Schedule I attached hereto (the Delaware Guarantors) and the subsidiaries of the Company named on Schedule II attached hereto (the Non-Delaware Guarantors and, taken together with the Delaware Guarantors, the Guarantors) pursuant to the Underwriting Agreement, dated November 29, 2016 (the Underwriting Agreement), among the Company, the Guarantors and the underwriters named on Schedule A to the Underwriting Agreement (the Underwriters).
We have examined the Registration Statement on Form S-3 (File No. 333-212152), as amended by Post-Effective Amendment No. 1 thereto (as amended, the Registration Statement) filed by the Company and the Guarantors under the Securities Act of 1933, as
amended (the Securities Act); the Companys and the Guarantors prospectus dated June 21, 2016 (the Base Prospectus), as supplemented by the prospectus supplement dated November 29, 2016 (the Prospectus Supplement and, together with the Base Prospectus, the Prospectus), filed by the Company and the Guarantors pursuant to Rule 424(b) of the rules and regulations of the Securities and Exchange Commission (the Commission) under the Securities Act; the Indenture, dated as of May 21, 2010, as supplemented by the Eighth Supplemental Indenture, dated as of November 29, 2016 (as supplemented, the Indenture), among the Company, the Guarantors and The Bank of New York Mellon Trust Company, N.A., as Trustee (the Trustee), relating to the Notes and the Guarantees; duplicates of the global notes representing the Notes; the form of the guarantees (the Guarantees) as set forth in the Indenture; and the Underwriting Agreement. In addition, we also have examined the originals, or duplicates or certified or conformed copies, of such records, agreements, documents and other instruments and have made such other investigations as we have deemed relevant and necessary in connection with the opinions hereinafter set forth. As to questions of fact material to this opinion, we have relied upon certificates or comparable documents of public officials and of officers and representatives of the Company and the Guarantors.
In rendering the opinions set forth below, we have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as duplicates or certified or conformed copies and the authenticity of the originals of such latter documents. We also have assumed that the Indenture is the valid and legally binding obligation of the Trustee.
We have also assumed that (1) each of the Non-Delaware Guarantors is validly existing and in good standing under the law of the jurisdiction of its organization and has full corporate or
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limited partnership power and authority, as applicable, to authorize, execute, deliver, issue and perform, as applicable, each of the Indenture, the Underwriting Agreement and its Guarantee; (2) each of the Non-Delaware Guarantors has duly authorized, executed and delivered, as applicable, the Indenture, the Underwriting Agreement and its Guarantee; and (3) the execution, delivery and performance, as applicable, by each of the Non-Delaware Guarantors of the Indenture, the Underwriting Agreement and its Guarantee does not and will not (A) violate the certificate of incorporation, bylaws, limited partnership agreement or other organizational document of such Non-Delaware Guarantors, or violate the law of the jurisdiction of its organization or the law of any other applicable jurisdiction (except that no such assumption is made with respect to the law of the State of New York) or (B) constitute a breach or violation or result in a default under any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which such Non-Delaware Guarantor is a party or by which such Non-Delaware Guarantor is bound or to which any of the property or assets of such Non-Delaware Guarantor is subject.
Based upon the foregoing, and subject to the qualifications, assumptions and limitations stated herein, we are of the opinion that:
The Notes have been duly authorized, executed and issued by the Company and, assuming due authentication thereof by the Trustee and upon payment and delivery in accordance with the Underwriting Agreement, will constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms and entitled to the benefits of the Indenture.
The Guarantees have been duly authorized, issued and delivered by the Delaware Guarantors and, assuming due authentication of the Notes by the Trustee and upon payment and delivery in accordance with the Underwriting Agreement, the Guarantees will constitute valid and legally binding obligations of the Guarantors, enforceable against the Guarantors in accordance with their terms.
Our opinions set forth above are subject to (i) the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors rights generally, (ii) general equitable principles (whether considered in a proceeding in equity or at law) and (iii) an implied covenant of good faith and fair dealing.
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We do not express any opinion herein concerning any law other than the law of the State of New York, the Delaware General Corporation Law, the Delaware Limited Liability Company Act and the Delaware Revised Uniform Limited Partnership Act.
We hereby consent to the filing of this opinion letter as Exhibit 5.3 to the Current Report on Form 8-K of the Company filed with the Commission in connection with the offer and sale of the Notes by the Company and to the use of our name under the captions Legal Matters in the Prospectus Supplement and Base Prospectus.
Very truly yours,
/s/ Simpson Thacher & Bartlett LLP
SIMPSON THACHER & BARTLETT LLP
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SCHEDULE I
DELAWARE GUARANTORS
L-3 Advanced Programs, Inc., a Delaware corporation |
L-3 Applied Technologies, Inc., a Delaware corporation |
L-3 Communications AIS GP Corporation, a Delaware corporation |
L-3 Communications Avionics Systems, Inc., a Delaware corporation |
L-3 Communications Electron Technologies, Inc., a Delaware corporation |
L-3 Communications ESSCO, Inc., a Delaware corporation |
L-3 Communications Flight Capital LLC, a Delaware limited liability company |
L-3 Communications Flight International Aviation LLC, a Delaware limited liability company |
L-3 Communications Foreign Holdings, Inc., a Delaware corporation |
L-3 Communications Integrated Systems L.P., a Delaware limited partnership |
L-3 Communications Investments Inc., a Delaware corporation |
L-3 Communications Security and Detection Systems, Inc., a Delaware corporation |
L-3 Communications Vector International Aviation LLC, a Delaware limited liability company |
L-3 Communications Vertex Aerospace LLC, a Delaware limited liability company |
L-3 Domestic Holdings, Inc., a Delaware corporation |
L-3 Fuzing and Ordnance Systems, Inc., a Delaware corporation |
L-3 Unidyne, Inc., a Delaware corporation |
Pac Ord Inc., a Delaware corporation |
Power Paragon, Inc., a Delaware corporation |
SPD Electrical Systems, Inc., a Delaware corporation |
SPD Switchgear, Inc., a Delaware corporation |
L-3 Afghanistan, LLC, Inc., a Delaware limited liability company |
L-3 Army Sustainment LLC, a Delaware limited liability company |
L-3 Centaur, LLC, a Delaware limited liability company |
L-3 CTC Aviation Holdings Inc., a Delaware corporation |
L-3 CTC Aviation Leasing (US) Inc., a Delaware corporation |
L-3 CTC Aviation Training (US) Inc., a Delaware corporation |
L-3 Investments, LLC, a Delaware limited liability company |
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SCHEDULE II
NON-DELAWARE GUARANTORS
Electrodynamics, Inc., an Arizona corporation |
Interstate Electronics Corporation, a California corporation |
L-3 Chesapeake Sciences Corporation, a Maryland corporation |
L-3 Communications Cincinnati Electronics Corporation, an Ohio corporation |
L-3 Communications EO/IR, Inc., a Florida corporation |
L-3 Communications MariPro, Inc., a California corporation |
L-3 Communications Mobile-Vision, Inc., a New Jersey corporation |
L-3 Communications Westwood Corporation, a Nevada corporation |
L-3 Unmanned Systems, Inc., a Texas corporation |
Mustang Technology Group, L.P., a Texas limited partnership |
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Exhibit 5.4
[Letterhead of L-3 Communications Corporation]
Ann D. Davidson | ||||
Senior Vice President, General Counsel | ||||
and Corporate Secretary |
December 5, 2016
L-3 Communications Corporation
600 Third Avenue,
New York, New York 10036
Ladies and Gentlemen:
I am General Counsel of L-3 Communications Corporation, a Delaware corporation (the Company) and each of the subsidiaries of the Company named on Schedule I attached hereto (each, a Non-Delaware Guarantor).
I have examined the Registration Statement on Form S-3 (File No. 333-212152) and Post-Effective Amendment No. 1 thereto filed by the Company and the subsidiaries of the Company named on Schedule II attached hereto (the Guarantors) under the Securities Act of 1933, as amended (the Securities Act), each as it became effective under the Securities Act; the Companys and the Guarantors prospectus dated June 21, 2016, as supplemented by the prospectus supplement dated November 29, 2016, filed by the Company and the Guarantors pursuant to Rule 424(b) of the rules and regulations of the Securities and Exchange Commission (the Commission) under the Securities Act; the Indenture (including the guarantees set forth therein (the Guarantees)) dated as of May 21, 2010, as supplemented by the Eighth Supplemental Indenture dated as of December 5, 2016 (the Indenture), among the Company, the Guarantors and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to the issuance of $550,000,000 aggregate principal amount of 3.85% Senior Notes due 2026 (the Notes) issued by the Company pursuant to the Underwriting Agreement dated November 29, 2016 (the Underwriting Agreement) among the Company, the Guarantors and the Underwriters named on Schedule A to the Underwriting Agreement; duplicates of the global notes representing the Notes; and the Underwriting Agreement. In addition, I have examined the originals, or duplicates or certified or conformed copies, of such records, agreements, documents and other instruments and have made such other investigations as I have deemed relevant and necessary in connection with the opinion hereinafter set forth. As to questions of fact material to this opinion, I have relied upon certificates or comparable documents of public officials and of officers and representatives of the Company and the Guarantors.
In such examination, I have assumed the genuineness of all signatures, the legal capacity of natural persons, the authenticity of all documents submitted to me as originals, the conformity to original documents of all documents submitted to me as duplicates or certified or conformed copies and the authenticity of the originals of such latter documents.
Based upon the foregoing, and subject to the qualifications, assumptions and limitations stated herein, I am of the opinion that (i) the Indenture has been duly authorized, executed and delivered by the Non-Delaware Guarantors and (ii) the Guarantees have been duly authorized, issued and delivered by the Non-Delaware Guarantors.
I do not express any opinion herein concerning any law other than the applicable corporate or limited partnership law for the jurisdiction of organization of each Non-Delaware Guarantor (including the statutory provisions and reported judicial decisions interpreting the foregoing), as the case may be.
I hereby consent to the filing of this opinion letter as Exhibit 5.4 to the Current Report on Form 8-K of the Company filed with the Commission in connection with the offer and sale of the Notes by the Company.
Very truly yours, |
/s/ Ann D. Davidson |
Ann D. Davidson |
SCHEDULE I
Electrodynamics, Inc., an Arizona corporation
Interstate Electronics Corporation, a California corporation
L-3 Chesapeake Sciences Corporation, a Maryland corporation
L-3 Communications Cincinnati Electronics Corporation, an Ohio corporation
L-3 Communications EO/IR, Inc., a Florida corporation
L-3 Communications MariPro, Inc., a California corporation
L-3 Communications Mobile-Vision, Inc., a New Jersey corporation
L-3 Communications Westwood Corporation, a Nevada corporation
L-3 Unmanned Systems, Inc., a Texas corporation
Mustang Technology Group, L.P., a Texas limited partnership
SCHEDULE II
DELAWARE GUARANTORS
L-3 Advanced Programs, Inc., a Delaware corporation
L-3 Applied Technologies, Inc., a Delaware corporation
L-3 Communications AIS GP Corporation, a Delaware corporation
L-3 Communications Avionics Systems, Inc., a Delaware corporation
L-3 Communications Electron Technologies, Inc., a Delaware corporation
L-3 Communications ESSCO, Inc., a Delaware corporation
L-3 Communications Flight Capital LLC, a Delaware limited liability company
L-3 Communications Flight International Aviation LLC, a Delaware limited liability company
L-3 Communications Foreign Holdings, Inc., a Delaware corporation
L-3 Communications Integrated Systems L.P., a Delaware limited partnership
L-3 Communications Investments Inc., a Delaware corporation
L-3 Communications Security and Detection Systems, Inc., a Delaware corporation
L-3 Communications Vector International Aviation LLC, a Delaware limited liability company
L-3 Communications Vertex Aerospace LLC, a Delaware limited liability company
L-3 Domestic Holdings, Inc., a Delaware corporation
L-3 Fuzing and Ordnance Systems, Inc., a Delaware corporation
L-3 Unidyne, Inc., a Delaware corporation
Pac Ord Inc., a Delaware corporation
Power Paragon, Inc., a Delaware corporation
SPD Electrical Systems, Inc., a Delaware corporation
SPD Switchgear, Inc., a Delaware corporation
L-3 Afghanistan, LLC, Inc., a Delaware limited liability company
L-3 Army Sustainment LLC, a Delaware limited liability company
L-3 Centaur, LLC, a Delaware limited liability company
L-3 CTC Aviation Holdings Inc., a Delaware corporation
L-3 CTC Aviation Leasing (US) Inc., a Delaware corporation
L-3 CTC Aviation Training (US) Inc., a Delaware corporation
L-3 Investments, LLC, a Delaware limited liability company
NON-DELAWARE GUARANTORS
Electrodynamics, Inc., an Arizona corporation
Interstate Electronics Corporation, a California corporation
L-3 Chesapeake Sciences Corporation, a Maryland corporation
L-3 Communications Cincinnati Electronics Corporation, an Ohio corporation
L-3 Communications EO/IR, Inc., a Florida corporation
L-3 Communications MariPro, Inc., a California corporation
L-3 Communications Mobile-Vision, Inc., a New Jersey corporation
L-3 Communications Westwood Corporation, a Nevada corporation
L-3 Unmanned Systems, Inc., a Texas corporation
Mustang Technology Group, L.P., a Texas limited partnership
Exhibit 99.1
Information Relating to Part II, Item 14 Other Expenses of Issuance and Distribution
The expenses in connection with the issuance and distribution by L-3 Communications Corporation (L-3 Communications) of $550,000,000 in aggregate principal amount of 3.85% Senior Notes due 2026, registered pursuant to L-3 Communications and the subsidiary guarantors Registration Statement on Form S-3 (File No. 333-212152) filed on June 21, 2016, other than underwriting discounts and commissions, are set forth in the following table. All amounts are estimated except the Securities and Exchange Commission registration fee and the rating agency fees. All of such expenses are being borne by L-3 Communications.
SEC Registration Fee |
$ | 63,745 | ||
Rating Agency Fees |
934,000 | |||
Accounting Fees and Expenses |
250,000 | |||
Legal Fees and Expenses |
300,000 | |||
Printing Expenses |
14,000 | |||
Trustees Fees and Expenses |
15,000 | |||
Blue Sky Fees and Expenses |
| |||
Miscellaneous |
6,000 | |||
|
|
|||
Total |
$ | 1,582,745 | ||
|
|