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): May 31, 2013
MERITOR, INC. |
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(Exact name of registrant as specified in its charter) |
Indiana | 1-15983 | 38-3354643 | ||
(State or other jurisdiction | (Commission | (IRS Employer | ||
of incorporation) | File No.) | Identification No.) |
2135 West Maple Road |
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Troy, Michigan |
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(Address of principal executive offices) |
48084-7186 |
(Zip code) |
Registrants telephone number, including area code: (248) 435-1000
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 May 31, 2013, Meritor, Inc. (the Company) completed the offering and sale of $275 million aggregate principal amount of the Companys 6-3/4% Notes due 2021 (the Securities), including related guarantees by certain subsidiaries of the Company (the Guarantees), in an underwritten public offering.
The Securities were offered and sold by the Company pursuant to its Registration Statement on Form S-3 (Registration Statement No. 333-179405) filed by the Company with the Securities and Exchange Commission (the SEC) on February 7, 2012, as amended on November 16, 2012 and November 21, 2012 and declared effective by the SEC on November 29, 2012 (the Registration Statement), as supplemented by the prospectus supplement filed with the SEC on May 29, 2013 (the Prospectus Supplement).
The Securities were issued pursuant to an indenture, dated as of April 1, 1998 (the Original Indenture), as supplemented by the First Supplemental Indenture dated as of July 7, 2000, the Second Supplemental Indenture dated as of July 6, 2004, the Third Supplemental Indenture dated as of June 23, 2006, the Fourth Supplemental Indenture dated as of March 3, 2010, the Fifth Supplemental Indenture dated as of May 23, 2013 and the Sixth Supplemental Indenture entered into as of the date hereof (the Sixth Supplemental Indenture) (collectively, the Supplemental Indentures and, together with the Original Indenture, the Indenture), between the Company and The Bank of New York Mellon Trust Company, N.A., formerly known as The Bank of New York Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as trustee (the Trustee). The Company entered into the Sixth Supplemental Indenture in connection with the issuance and sale of the Securities. The Indenture contains covenants that require the Company to satisfy certain conditions in order to incur debt secured by liens, engage in sale/leaseback transactions or merge or consolidate with another entity. The Indenture also provides for customary events of default. The Sixth Supplemental Indenture contains a covenant that requires the Company to satisfy certain conditions in order to make certain restricted payments to holders of certain of its equity interests, including the Companys common stock, in respect of such equity interests.
The Securities will mature on June 15, 2021 and bear interest at a fixed rate of 6-3/4% per annum. The Company will pay interest on the Securities from May 31, 2013 semi-annually, in arrears, on June 15 and December 15 of each year, beginning December 15, 2013. The Securities will constitute senior unsecured obligations of the Company and will rank equally in right of payment with its existing and future senior unsecured indebtedness, and effectively junior to its existing and future secured indebtedness to the extent of the security therefor.
The Securities provide that, prior to June 15, 2016, the Company may redeem, at its option, from time to time, the Securities, in whole or in part, at a redemption price equal to the sum of (i) 100% of the principal amount of the Securities to be redeemed, plus (ii) the applicable premium as of the redemption date on the Securities to be redeemed, plus (iii) accrued and unpaid interest, if any, to, but not including, the redemption date (subject to the right of holders of record on the relevant regular record date to receive interest due on an interest payment date that is on , or prior to , the redemption date) on the Securities to be redeemed. For purposes of such calculation, the applicable premium means, with respect to a Security at any redemption date, the greater of (i) 1.0% of the principal amount of such Security and (ii) the excess of (A) the present value at such redemption date of (1) 105.063% of the principal amount of such Security plus (2) all remaining required interest payments due on such Security through June 15, 2016 (excluding accrued and unpaid interest, if any, to the redemption date), computed using a discount rate equal to the treasury rate plus 50 basis points, over (B) 100% of the principal amount of such Security.
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The Securities provide that, on or after June 15, 2016, the Company may redeem, at its option, from time to time, the Securities, in whole or in part, at the redemption prices (expressed as percentages of the principal amount of the Securities to be redeemed) set forth below, plus accrued and unpaid interest, if any, to, but not including, the redemption date (subject to the right of holders of record on the relevant regular record date to receive interest due on an interest payment date that is on or prior to the redemption date) on the Securities to be redeemed, if redeemed during the 12-month period beginning on June 15 of the years indicated below:
Year | Redemption Price | ||
2016 | 105.063 | % | |
2017 | 103.375 | % | |
2018 | 101.688 | % | |
2019 and thereafter | 100.000 | % |
The Securities provide that, prior to June 15, 2016, the Company may redeem, at its option, from time to time, up to 35% of the aggregate principal amount of the Securities to be issued on May 31, 2013 with the net cash proceeds of one or more public sales of the Companys common stock at a redemption price equal to 106.75% of the principal amount of the Securities to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the redemption date (subject to the right of holders of record on the relevant regular record date to receive interest due on an interest payment date that is on or prior to the redemption date) on the Securities to be redeemed so long as at least 65% of the aggregate principal amount of Securities originally issued on May 31, 2013 remains outstanding after each such redemption and notice of any such redemption is mailed within 90 days of any such sale of common stock.
If a Change of Control (as defined in the Sixth Supplemental Indenture) occurs, unless the Company has exercised its right to redeem the Securities, each holder of Securities may require the Company to repurchase some or all of such holders Securities at a purchase price equal to 101% of the principal amount of the Securities to be repurchased, plus accrued and unpaid interest, if any, to, but not including, the payment date (subject to the right of holders of record on the relevant regular record date to receive interest due on an interest payment date that is on or prior to the payment date) on the Securities to be repurchased.
The Securities are guaranteed on a senior unsecured basis by each of the Companys subsidiaries from time to time guaranteeing its senior secured credit facility, as it may be amended, extended, replaced or refinanced, or any subsequent credit facility (other than one subsidiary that currently has minimal assets, which the Company plans to dissolve after obtaining all required approvals) (collectively, the Guarantors). The Guarantees will remain in effect until the earlier to occur of payment in full of the Securities or termination or release of the applicable corresponding guarantee under the Companys senior secured credit facility, as it may be amended, extended, replaced or refinanced, or any subsequent credit facility. The guarantees will rank equally with existing and future senior unsecured indebtedness of the Guarantors and will be effectively subordinated to all of the existing and future secured indebtedness of the Guarantors, to the extent of the value of the assets securing such indebtedness.
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The above description of certain terms and conditions of the Sixth Supplemental Indenture is qualified by reference to the full text of the Sixth Supplemental Indenture, a copy of which is filed herewith as Exhibit 4 and is 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 in Item 1.01. Entry into a Material Definitive Agreement of this Current Report on Form 8-K is incorporated herein by reference.
Item 8.01. Other Events
In connection with the offering and sale of the Securities , including the related Guarantees, the Company is filing as Exhibits 5.1 through 5.10 hereto opinions of counsel with respect to the Securities and the Guarantees. Such opinions are incorporated by reference into the Registration Statement.
Item 9.01. Financial Statements and Exhibits
(d) | Exhibits | |
4 | Sixth Supplemental Indenture, dated as of May 31, 2013, to the Indenture, dated as of April 1, 1998, between the Company and the Trustee. | |
5.1 | Opinion of Chadbourne & Parke LLP. | |
5.2 | Opinion of Faegre Baker Daniels LLP. | |
5.3 | Opinion of Miller, Canfield, Paddock & Stone, P.L.C. | |
5.4 | Opinion of Paget-Brown. | |
5.5 | Opinion of Haynsworth Sinkler Boyd, P.A. | |
5.6 | Opinion of Advokatfirman Törngren Magnell KB. | |
5.7 | Opinion of AKD Prinsen Van Wijmen N.V. | |
5.8 | Opinion of Baker & McKenzie Luxembourg. | |
5.9 | Opinion of Shoosmiths. | |
5.10 | Opinion of Lionel Sawyer & Collins. | |
23.1 | Consent of Chadbourne & Parke LLP (contained in Exhibit 5.1) | |
23.2 | Consent of Faegre Baker Daniels LLP (contained in Exhibit 5.2) | |
23.3 | Consent of Miller, Canfield, Paddock & Stone, P.L.C. (contained in Exhibit 5.3) | |
23.4 | Consent of Paget-Brown (contained in Exhibit 5.4) | |
23.5 | Consent of Haynsworth Sinkler Boyd, P.A. (contained in Exhibit 5.5) | |
23.6 | Consent of Advokatfirman Törngren Magnell KB (contained in Exhibit 5.6) | |
23.7 | Consent of AKD Prinsen Van Wijmen N.V. (contained in Exhibit 5.7) | |
23.8 | Consent of Baker & McKenzie Luxembourg (contained in Exhibit 5.8) | |
23.9 | Consent of Shoosmiths (contained in Exhibit 5.9) | |
23.10 | Consent of Lionel Sawyer & Collins (contained in Exhibit 5.10) |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MERITOR, INC. |
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(Registrant) | |||
Date: May 31 , 2013 | By : | /s/ Vernon G. Baker, II | |
Name: Vernon G. Baker, II | |||
Title: Senior Vice President and General Counsel |
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EXHIBIT INDEX
Exhibit
|
Description | |||
4 | Sixth Supplemental Indenture, dated as of May 31, 2013, to the Indenture, dated as of April 1, 1998, between the Company and the Trustee. | |||
5.1 | Opinion of Chadbourne & Parke LLP. | |||
5.2 | Opinion of Faegre Baker Daniels LLP. | |||
5.3 | Opinion of Miller, Canfield, Paddock & Stone, P.L.C. | |||
5.4 | Opinion of Paget-Brown. | |||
5.5 | Opinion of Haynsworth Sinkler Boyd, P.A. | |||
5.6 | Opinion of Advokatfirman Törngren Magnell KB. | |||
5.7 | Opinion of AKD Prinsen Van Wijmen N.V. | |||
5.8 | Opinion of Baker & McKenzie Luxembourg. | |||
5.9 | Opinion of Shoosmiths. | |||
5.10 | Opinion of Lionel Sawyer & Collins. | |||
23.1 | Consent of Chadbourne & Parke LLP (contained in Exhibit 5.1) | |||
23.2 | Consent of Faegre Baker Daniels LLP (contained in Exhibit 5.2) | |||
23.3 | Consent of Miller, Canfield, Paddock & Stone, P.L.C. (contained in Exhibit 5.3) | |||
23.4 | Consent of Paget-Brown (contained in Exhibit 5.4) | |||
23.5 | Consent of Haynsworth Sinkler Boyd, P.A. (contained in Exhibit 5.5) | |||
23.6 | Consent of Advokatfirman Törngren Magnell KB (contained in Exhibit 5.6) | |||
23.7 | Consent of AKD Prinsen Van Wijmen N.V. (contained in Exhibit 5.7) | |||
23.8 | Consent of Baker & McKenzie Luxembourg (contained in Exhibit 5.8) | |||
23.9 | Consent of Shoosmiths (contained in Exhibit 5.9) |
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Exhibit 4
SIXTH SUPPLEMENTAL INDENTURE
SIXTH SUPPLEMENTAL INDENTURE, dated as of May 31, 2013 (this Supplemental Indenture), to the Indenture, dated as of April 1, 1998, as supplemented by a First Supplemental Indenture, dated as of July 7, 2000, a Second Supplemental Indenture, dated as of July 6, 2004, a Third Supplemental Indenture, dated as of June 23, 2006, a Fourth Supplemental Indenture, dated as of March 3, 2010, and a Fifth Supplemental Indenture, dated as of May 23, 2013, between Meritor, Inc., an Indiana corporation (Meritor or the Company) (successor to Meritor Automotive, Inc.), having its principal office at 2135 West Maple Road, Troy, Michigan 48084-7186, and The Bank of New York Mellon Trust Company, N.A., formerly known as The Bank of New York Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), a national association, as Trustee (the Trustee), having its corporate trust office at 2 N. LaSalle Street, Suite 1020, Chicago, Illinois 60602 (as so supplemented, the Indenture).
WHEREAS, pursuant to Section 3.01 of the Indenture, Meritor may establish, at its option, the form, terms and provisions of a series of Securities to be issued under the Indenture in one or more supplemental indentures to the Indenture; and
WHEREAS, Meritor intends to issue $275,000,000 aggregate principal amount of a new series of Securities under the Indenture designated as 6-3/4% Notes due 2021 (such 6-3/4% Notes due 2021 are herein referred to as the Notes) and desires to establish the form, terms and provisions of such series herein, including certain redemption and repurchase rights and certain covenants of the Company; and
WHEREAS, pursuant to that certain Amended and Restated Credit Agreement dated as of April 23, 2012 (as amended, extended, replaced or refinanced from time to time, or any subsequent credit facility of Meritor, the Senior Credit Agreement), among Meritor, the financial institutions from time to time parties thereto (the Senior Lenders) and the administrative agent and other parties from time to time party thereto, Meritor has agreed for the benefit of such Senior Lenders to provide guarantees (the Senior Credit Agreement Guarantees) by certain of its subsidiaries (the Subsidiary Guarantors) of its obligations thereunder; and
WHEREAS, Meritor desires that the Subsidiary Guarantors (other than Arvinyl West, Inc.) provide guarantees, on the same terms as the Senior Credit Agreement Guarantees provided to such Senior Lenders, for the benefit of the Trustee and the Holders of the Notes (and not for the benefit of Holders of any other series of Securities except as otherwise provided in the Indenture); and
WHEREAS, in connection with the issuance of the Notes, the Subsidiary Guarantors (other than Arvinyl West, Inc.) are executing and delivering the Subsidiary Guaranty dated as of May 31, 2013 (as amended from time to time by the addition of additional Subsidiary Guarantors, the Subsidiary Guaranty) for the benefit of the Trustee and the Holders of the Notes (and not for the benefit of Holders of any other series of Securities), in the form attached hereto as Exhibit A ;
NOW, THEREFORE, THIS SIXTH SUPPLEMENTAL INDENTURE WITNESSETH:
ARTICLE 1
DEFINITIONS
SECTION 1.01. Defined Terms; References . Unless otherwise specifically defined herein, each term used herein that is defined in the Indenture has the meaning assigned to such term in the Indenture. Each reference to hereof, hereunder, herein and hereby and each other similar reference and each reference to this Indenture and each other similar reference contained in the Indenture shall, after this Supplemental Indenture becomes effective, refer to the Indenture as amended hereby.
ARTICLE 2
THE NOTES
SECTION 2.01. The Notes . The Indenture is hereby supplemented to incorporate the form, terms and provisions of the series of Notes designated as the 6-3/4% Notes due 2021 of Meritor to be issued under the Indenture, which form, terms and provisions are set forth in the form of the Notes attached hereto as Exhibit B and in this Supplemental Indenture. Notwithstanding anything to the contrary in the Indenture, Meritor shall not issue any additional notes of the series of Notes designated as the 6-3/4% Notes due 2021 unless the additional notes are fungible with the outstanding notes of such series for U.S. Federal income tax purposes.
ARTICLE 3
SUBSIDIARY GUARANTEES
SECTION 3.01. Subsidiary Guarantees .
(a) The Indenture is hereby supplemented to incorporate the terms of the Subsidiary Guaranty for the benefit of the Trustee and the Holders of the Notes (and not for the benefit of Holders of any other series of Securities).
(b) Meritor will cause each Subsidiary Guarantor (other than Arvinyl West, Inc.) to execute and deliver the Subsidiary Guaranty.
SECTION 3.02. Amendment of Guaranty .
(a) The Subsidiary Guaranty may be amended or supplemented (and shall be supplemented when required by subsection (b) of this Section 3.02) to include additional subsidiaries of Meritor or to add new Securities covered thereby, in each case during the term of the Subsidiary Guaranty and in accordance with the terms and conditions of the Subsidiary Guaranty, and the terms of any such amendment or supplement shall be deemed to be incorporated herein.
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(b) If after the date hereof any subsidiary of Meritor that is not already a Subsidiary Guarantor guarantees any obligations of Meritor under the Senior Credit Agreement, Meritor shall simultaneously cause such subsidiary to execute and deliver a counterpart of the Subsidiary Guaranty and such subsidiary shall thereupon be considered a Subsidiary Guarantor for all purposes under the Subsidiary Guaranty and this Supplemental Indenture.
ARTICLE 4
REDEMPTION, REPURCHASE AND DEFEASANCE
SECTION 4.01. Optional Redemption . The Indenture is hereby supplemented to incorporate the following rights of redemption solely with respect to the Notes (and not with respect to any other series of Securities):
The Notes are redeemable, at the Companys option, from time to time, through any one or more of the methods set forth below. Notes called for redemption will become due on the date fixed for redemption. Unless the Company defaults in payment of the Redemption Price, on and after the Redemption Date, interest will cease to accrue on the Notes or any portion of the Notes called for redemption. On or before any Redemption Date, the Company will deposit with a Paying Agent (or the Trustee) money sufficient to pay the Redemption Price (including, in the case of clause (a) below, the Applicable Premium, and in the case of clauses (b) and (c) below, any premiums described therein) of and accrued and unpaid interest, if any, on the Notes to be redeemed.
If the Company is redeeming less than all the Notes at any time, the Trustee will select the Notes to be redeemed using a method consistent with DTC procedures. The Company will redeem Notes in increments of $1,000. The Company will cause notices of any redemption to be mailed by first-class mail at least 30 but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at its registered address.
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 thereof to be redeemed. The Company will issue a Note in principal amount equal to the unredeemed portion of the original Note in the name of the Holder thereof upon cancellation of the original Note.
(a) Make-whole redemption . Prior to June 15, 2016, the Company may redeem, at its option, from time to time, the Notes, in whole or in part, at a Redemption Price calculated by the Company equal to the sum of (i) 100% of the principal amount of the Notes to be redeemed, plus (ii) the Applicable Premium as of the Redemption Date on the Notes to be redeemed, plus (iii) accrued and unpaid interest, if any, to, but not including, the Redemption Date (subject to the right of Holders of record of the Notes on the relevant Regular Record Date to receive interest due on an Interest Payment Date that is on or prior to the Redemption Date) on the Notes to be redeemed.
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Solely for purposes of this Section 4.01(a), the following definitions will apply:
Applicable Premium means, with respect to a Note at any Redemption Date, the greater of (i) 1.0% of the principal amount of such Note and (ii) the excess of (A) the present value at such Redemption Date of (1) the Redemption Price of such Note at June 15, 2016 as set forth below in Section 4.01(c) (Redemption after June 15, 2016), plus (2) all remaining required interest payments due on such Note through June 15, 2016 (excluding accrued and unpaid interest, if any, to the Redemption Date), computed using a discount rate equal to the Treasury Rate plus 50 basis points, over (B) 100% of the principal amount of such Note.
Treasury Rate means, with respect to any Redemption Date, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the Redemption Date. The Treasury Rate shall be calculated by the Independent Investment Banker on the third Business Day preceding the Redemption Date.
Comparable Treasury Issue means the United States Treasury security selected by the Independent Investment Banker and having an actual or interpolated maturity comparable to the remaining term through June 15, 2016 of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term through June 15, 2016 of those Notes.
Comparable Treasury Price means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than four Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.
Independent Investment Banker means Citigroup Global Markets Inc. and any successor thereto or, if that firm is unwilling or unable to select the Comparable Treasury Issue, an independent investment banking institution of national standing appointed by the Company.
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Reference Treasury Dealer means (i) Citigroup Global Markets Inc. or any successor thereto, J.P. Morgan Securities LLC or any successor thereto, Merrill Lynch, Pierce, Fenner & Smith Incorporated or any successor thereto, RBS Securities Inc. or any successor thereto, UBS Securities LLC or any successor thereto and two additional Primary Treasury Dealers selected by the Company or their respective successors; provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in the United States (a Primary Treasury Dealer), the Company shall substitute another Primary Treasury Dealer and (ii) any other Primary Treasury Dealers selected by the Company after consultation with the Independent Investment Banker.
Reference Treasury Dealer Quotations means, with respect to each Reference Treasury Dealer and any Redemption Date, the average, as determined by the Independent Investment Banker, 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 Independent Investment Banker at 5:00 p.m., New York City time, on the third Business Day preceding that Redemption Date.
(b) Equity clawback . Prior to June 15, 2016, the Company may redeem, at its option, from time to time, up to 35% of the aggregate principal amount of the Notes issued on May 31, 2013 with the net cash proceeds of one or more public sales of the Companys common stock at a Redemption Price calculated by the Company equal to 106.75% of the principal amount of the Notes to be redeemed, plus accrued and unpaid interest, if any, to, but not including, the Redemption Date (subject to the right of Holders of record of the Notes on the relevant Regular Record Date to receive interest due on an Interest Payment Date that is on or prior to the Redemption Date) on the Notes to be redeemed; provided that at least 65% of the aggregate principal amount of Notes originally issued on May 31, 2013 remains Outstanding after each such redemption and notice of any such redemption is mailed within 90 days of any such sale of common stock.
(c) Redemption after June 15, 2016 . On or after June 15, 2016, the Company may redeem, at its option, from time to time, the Notes, in whole or in part, at the Redemption Prices calculated by the Company (expressed as percentages of the principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest, if any, to, but not including, the Redemption Date (subject to the right of Holders of record of the Notes on the relevant Regular Record Date to receive interest due on an Interest Payment Date that is on or prior to the Redemption Date) on the Notes to be redeemed, if redeemed during the 12-month period beginning on June 15 of the years indicated below:
Year | Redemption Price | |||
2016 | 105.063 | % | ||
2017 | 103.375 | % | ||
2018 | 101.688 | % | ||
2019 and thereafter | 100.000 | % |
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SECTION 4.02. Repurchase of Notes Upon a Change of Control . The Indenture is hereby supplemented to incorporate the following rights of repurchase upon a Change of Control solely with respect to the Notes (and not with respect to any other series of Securities):
The Company must commence, within 30 days of the occurrence of a Change of Control, and thereafter consummate, an Offer to Purchase all of the Notes then Outstanding, at a purchase price calculated by the Company equal to 101% of their principal amount, plus accrued and unpaid interest, if any, on the Notes to be purchased to, but not including, the Change of Control Payment Date (subject to the right of Holders of record of the Notes on the relevant Regular Record Date to receive interest due on an Interest Payment Date that is on or prior to the Change of Control Payment Date).
However, the Company shall not be required to make an Offer to Purchase upon a Change of Control if (i) a third party makes an Offer to Purchase in the manner, at the times and otherwise in compliance with the requirements for an Offer to Purchase to be made by the Company upon a Change of Control, and purchases all Notes properly tendered and not withdrawn under the Offer to Purchase upon a Change of Control, or (ii) a notice of redemption has been given as described above under Section 4.01, Optional Redemption, to redeem all Outstanding Notes that would otherwise be subject to the Offer to Purchase, unless and until there is a default in payment of the applicable Redemption Price. An Offer to Purchase upon the occurrence of a Change of Control may be made by either the Company or a third party in advance of a Change of Control if a definitive agreement to effect the Change of Control has been fully executed at the time such Offer to Purchase is made and the Offer to Purchase is consummated upon or after the consummation of the Change of Control, and such Offer to Purchase will be conditional on the Change of Control. In addition, the Company will not purchase any Notes if there has occurred and is continuing on the Change of Control Payment Date an Event of Default under the Notes, other than a default in the payment of the purchase price payable in connection with an Offer to Purchase upon a Change of Control.
Solely for purposes of this Section 4.02, Change of Control means the occurrence of any of the following:
(1) the direct or indirect sale, 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 properties or 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 Securities Exchange Act of 1934, as amended (the Exchange Act)) other than the Company or any of its Subsidiaries;
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(2) a person or group (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) other than one of the Companys Subsidiaries becomes the ultimate beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of more than 50% of the total voting power of the Companys Voting Stock on a fully diluted basis;
(3) the adoption of a plan relating to the liquidation or dissolution of the Company;
(4) individuals who on May 31, 2013 constitute the board of directors of the Company (together with any new directors whose election by the board of directors of the Company or whose nomination by the board of directors of the Company for election by the stockholders of the Company was approved by a vote of at least a majority of the members of the board of directors of the Company then in office who either were members of the board of directors of the Company on May 31, 2013 or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority of the members of the board of directors of the Company then in office; or
(5) the Company consolidates with, or merges with or into, any Person, or any Person consolidates with, or merges with or into the Company, in any such event pursuant to a transaction in which the Companys outstanding Voting Stock is converted into or exchanged for cash, securities or other property, other than any such transaction where (a) the Companys Voting Stock outstanding immediately prior to such transaction constitutes or is converted into or exchanged for a majority of the outstanding shares of Voting Stock of the surviving Person or any direct or indirect parent company of the surviving Person (immediately after giving effect to such issuance) and (b) immediately after such transaction, no person or group (as such terms are used in Section 13(d) and 14(d) of the Exchange Act) becomes, directly or indirectly, the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of 50% or more of the voting power of the Voting Stock of the surviving Person.
Notwithstanding the foregoing, a transaction will not be deemed to involve a Change of Control if (1) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (2)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of the Companys Voting Stock immediately prior to that transaction or (B) immediately following that transaction no Person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company.
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Solely for purposes of this Section 4.02, Offer to Purchase means an offer to purchase the Notes then Outstanding by the Company from the Holders thereof commenced by mailing a notice to the Trustee and each Holder thereof stating:
(1) that all Notes validly tendered pursuant to the Offer to Purchase will be accepted for payment;
(2) the purchase price and the date of purchase (which shall be a Business Day no earlier than 30 days nor later than 60 days from the date such notice is mailed) (the Change of Control Payment Date);
(3) that any Note not tendered will continue to accrue interest pursuant to its terms;
(4) that, unless the Company defaults in the payment of the purchase price, any Note accepted for payment pursuant to the Offer to Purchase shall cease to accrue interest on and after the Change of Control Payment Date;
(5) that Holders of Notes electing to have a Note purchased pursuant to the Offer to Purchase will be required to surrender the Note, together with a completed form pursuant to which the Holder elects to require the Company to purchase the Note, to the Paying Agent at the address specified in the notice prior to the close of business on the Business Day immediately preceding the Change of Control Payment Date;
(6) that Holders of Notes will be entitled to withdraw their election if the Paying Agent receives, not later than the close of business on the third Business Day immediately preceding the Change of Control Payment Date, a facsimile transmission or letter setting forth the name of such Holder, the principal amount of Notes delivered for purchase and a statement that such Holder is withdrawing his election to have such Notes purchased; and
(7) that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered; provided that each Note purchased and each new Note issued shall be in a principal amount of $1,000 or integral multiples of $1,000 in excess thereof.
On the Change of Control Payment Date, the Company shall (1) accept for payment Notes or portions thereof validly tendered pursuant to an Offer to Purchase; (2) deposit with the Paying Agent money sufficient to pay the purchase price of all Notes or portions thereof so accepted (which deposit shall be made at least one Business Day prior to the Change of Control Payment Date); and (3) deliver, or cause to be delivered, to the Trustee all Notes or portions thereof so accepted together with an Officers Certificate specifying the Notes or portions thereof accepted for payment by the Company. The Company will instruct the Paying Agent to promptly mail to the Holders of Notes so accepted payment in an amount equal to the purchase price therefor, and the Company will instruct the Trustee pursuant to a Company Order to authenticate to promptly authenticate and mail to such Holders a new Note (which the Company shall execute) equal in principal amount to any unpurchased portion of the Note surrendered; provided that each Note purchased and each new Note issued shall be in a principal amount of $1,000 or integral multiples of $1,000 in excess thereof. The Company will publicly announce the results of an Offer to Purchase as soon as practicable after the Change of Control Payment Date. The Trustee shall act as the Paying Agent for an Offer to Purchase. The Company will comply with 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 the event that the Company is required to repurchase Notes pursuant to an Offer to Purchase. To the extent that the provisions of any securities laws or regulations conflict with this Section 4.02, the Company will comply with those securities laws and regulations and will not be deemed to have breached the Companys obligations under this Section 4.02 by virtue of any such conflict.
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Solely for purposes of this Section 4.02, Voting Stock means, with respect to any specified Person as of any date, the capital stock of the Person then outstanding that is at the time entitled to vote generally in the election of the board of directors or similar governing body of such Person.
SECTION 4.03. Defeasance . The provisions of Section 4.03 and Section 10.09 of the Indenture with respect to defeasance shall be applicable to the Notes, provided that references in Sections 4.03(a)(4) and 10.09(5) to Holders shall mean the beneficial owners for U.S. Federal income tax purposes.
ARTICLE 5
ADDITIONAL COVENANTS
SECTION 5.01. Reports by Company . The Indenture is hereby supplemented by amending Section 7.04 of the Indenture solely with respect to the Notes (and not with respect to any other series of Securities) by (i) deleting is required to file in paragraph (1) of such Section and replacing it with files and (ii) inserting the following text immediately following the word Commission in paragraph (3) of such Section:
; provided, however, that any document or report required to be filed with the Trustee or transmitted to Holders of Securities pursuant to this Section 7.04 that the Company files with the Commission via the Commissions EDGAR system shall be deemed to be filed with the Trustee and transmitted to Holders of Securities for purposes of this Section 7.04 at the time such documents are filed via the EDGAR system.
SECTION 5.02. Limitation on Liens . The Indenture is hereby supplemented by amending Section 10.05 of the Indenture solely with respect to the Notes (and not with respect to any other series of Securities) by inserting the following text immediately following the word exceed in the last sentence of such section:
the greater of (x) $250 million and (y).
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SECTION 5.03. Limitation on Restricted Payments . The Indenture is hereby supplemented to incorporate the following additional covenant solely with respect to the Notes (and not with respect to any other series of Securities):
The Company will not, and will not permit any of its Subsidiaries to, directly or indirectly, make any Restricted Payment if at the time of such Restricted Payment:
(a) a default (used in this Section 5.03 as defined in Section 6.02 of the Indenture) with respect to the Notes shall have occurred and be continuing or shall occur as a consequence thereof;
(b) after giving effect to such Restricted Payment (including, without limitation, the incurrence of any Indebtedness to finance such Restricted Payment), the Consolidated Interest Coverage Ratio would be less than 2:00 to 1:00; or
(c) the amount of such Restricted Payment, when added to the aggregate amount of all other Restricted Payments made after May 31, 2013 (other than Restricted Payments made pursuant to clauses (b), (c), (d) or (e) of the next paragraph), exceeds the sum (the Restricted Payments Basket) of (without duplication):
(i) 50% of Consolidated Net Income of the Company and all of its Subsidiaries determined in accordance with GAAP for the period (taken as one accounting period) commencing on the first day of the first full fiscal quarter commencing after May 31, 2013 to and including the last day of the fiscal quarter ended immediately prior to the date of such calculation for which consolidated financial statements are available (or, if such Consolidated Net Income shall be a loss, minus 100% of such aggregate loss), plus
(ii) 100% of the aggregate net cash proceeds received by the Company from the issuance and sale of Qualified Equity Interests of the Company on or after May 31, 2013 except as set forth herein, other than any such proceeds, property or assets received from the Companys Subsidiaries, plus
(iii) the aggregate amount by which Indebtedness (other than any subordinated Indebtedness) incurred by the Company or any Subsidiary subsequent to May 31, 2013 is reduced on the Companys balance sheet upon the conversion or exchange (other than by the Companys Subsidiaries) into Qualified Equity Interests of the Company (less the amount of any cash, or the fair value of assets, distributed by the Company or any Subsidiary upon such conversion or exchange to the holders (in their capacities as such) of Equity Interests of the Company).
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The foregoing provisions will not prohibit:
(a) the payment by the Company of any dividend within 60 days after the date of declaration thereof, if on the date of declaration the payment would have complied with the provisions of the Indenture;
(b) the repurchase or redemption of any Equity Interests of the Company in exchange for, or out of the proceeds of the substantially concurrent issuance and sale (or an issuance or sale that occurs within 60 days of such repurchase or redemption) of, Qualified Equity Interests;
(c) payments by the Company to repurchase or redeem Equity Interests of the Company held by officers, directors or employees or former officers, directors or employees (or their transferees, estates or beneficiaries under their estates) of the Company or its Subsidiaries; provided that the aggregate cash consideration paid for all such repurchases or redemptions shall not exceed (A) $10 million per fiscal year since May 31, 2013, plus (B) the amount of any net cash proceeds received by the Company from the issuance and sale after May 31, 2013 of Qualified Equity Interests of the Company to officers, directors or employees of the Company or its Subsidiaries that have not been applied to the payment of Restricted Payments pursuant to this clause (c), plus (C) the net cash proceeds of any key-man life insurance policies that have not been applied to the payment of Restricted Payments pursuant to this clause (c);
(d) repurchases of Equity Interests in connection with vesting of equity-based awards issued to employees in order to satisfy tax withholding obligations;
(e) repurchases of Equity Interests held by officers, directors or employees or former officers, directors or employees (or their transferees, estates or beneficiaries under their estates) of the Company or its Subsidiaries deemed to occur upon the exercise of stock options or warrants if the Equity Interests represent all or a portion of the exercise price thereof; provided that the aggregate cash consideration paid for all such repurchases shall not exceed $10 million in any fiscal year;
(f) Restricted Payments to the extent not otherwise permitted by the immediately preceding paragraph or any other clause of this paragraph in an amount not to exceed $60 million in any fiscal year; provided that if any portion of that $60 million is not used to make Restricted Payments pursuant to this clause during any fiscal year, such amount may be carried over to the next succeeding fiscal year; provided, further, that any amount carried over into the next succeeding fiscal year may not be carried forward again into any subsequent fiscal years and if Restricted Payments in the amount of $60 million or more are made in any fiscal year pursuant to this clause (f), no amount may be carried over from such fiscal year to the next succeeding fiscal year; and
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(g) other Restricted Payments if, at the time of the making of such payments, and after giving effect thereto (including, without limitation, the incurrence of any Indebtedness to finance such payment), the Total Leverage Ratio would not exceed 4.00 to 1.00;
provided that (i) in the case of any Restricted Payment pursuant to clause (c), (f) or (g) above, no default with respect to the Notes shall have occurred and be continuing or shall occur as a consequence thereof and (ii) the issuance and sale of Qualified Equity Interests shall not increase the Restricted Payments Basket to the extent the proceeds of such issuance and sale are used to make a Restricted Payment pursuant to clauses (b) or (c)(B) above.
The following definitions shall apply solely for purposes of this Section 5.03.
Attributable Indebtedness, when used with respect to any Sale and Lease-Back Transaction, means, as at the time of determination, the present value (discounted at a rate borne by the Notes, compounded on a semi-annual basis) of the total obligations of the lessee for rental payments during the remaining term of the lease included in any such Sale and Lease-Back Transaction.
Capitalized Lease Obligations of any Person means the obligations of such Person to pay rent or other amounts under a lease required to be capitalized for financial reporting purposes in accordance with GAAP, and the amount of such obligation shall be the capitalized amount thereof determined in accordance with GAAP.
Consolidated Cash Flow Available for Fixed Charges means, with respect to any Person for any period:
(1) the sum of, without duplication, the amounts for such period, taken as a single accounting period, of:
(a) Consolidated Net Income;
(b) Consolidated Non-Cash Charges;
(c) Consolidated Interest Expense; and
(d) Consolidated Income Tax Expense (other than income tax expense (either positive or negative) attributable to extraordinary gains or losses);
(2) less non-cash items increasing Consolidated Net Income for such period, other than (a) the accrual of revenue consistent with past practice, and (b) reversals of prior accruals or reserves for cash items previously excluded in the calculation of Consolidated Non-Cash Charges.
In calculating Consolidated Cash Flow Available for Fixed Charges for any period, if any asset sale or asset acquisition (whether pursuant to a stock or an asset transaction) shall have occurred since the first day of any four fiscal quarter period for which the Consolidated Cash Flow Available for Fixed Charges is being calculated, such calculation shall give pro forma effect to such asset sale or asset acquisition.
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For the purposes of calculating Consolidated Cash Flow Available for Fixed Charges asset acquisition means any acquisition of property or series of related acquisitions of property that constitutes all or substantially all of the assets of a business, unit or division of a Person or constitutes all or substantially all of the common stock (or equivalent) of a Person; and asset sale means any disposition of property or series of related dispositions of property that involves all or substantially all of the assets of a business, unit or division of a Person or constitutes all or substantially all of the common stock (or equivalent) of a subsidiary.
Consolidated Fixed Charges for any period means the sum, without duplication, of (a) Consolidated Interest Expense of the Company and its Subsidiaries for such period, plus (b) the product of (a) all dividend payments on any series of Disqualified Equity Interests of the Company or any Subsidiary or any Preferred Stock of any Subsidiary (other than any such Disqualified Equity Interests or any Preferred Stock held by the Company or a Subsidiary or to the extent paid in Qualified Equity Interests) for such period, multiplied by (b) a fraction, the numerator of which is one and the denominator of which is one minus the then current combined federal, state and local statutory tax rate of the Company and its Subsidiaries, expressed as a decimal.
Consolidated Interest Coverage Ratio means the ratio of Consolidated Cash Flow Available for Fixed Charges of the Company and its Subsidiaries during the most recent four consecutive full fiscal quarters for which financial statements are available (the four-quarter period) ending on or prior to the date of the transaction giving rise to the need to calculate the Consolidated Interest Coverage Ratio (the transaction date) to Consolidated Fixed Charges of the Company and its Subsidiaries for the four-quarter period. Notwithstanding anything to the contrary set forth in the definitions of Consolidated Cash Flow Available for Fixed Charges and Consolidated Interest Expense (and all component definitions referenced in such definitions), for purposes of determining the Consolidated Interest Coverage Ratio, such definitions (and all component definitions referenced in such definitions) shall be calculated with respect to the Company and all of its Subsidiaries, notwithstanding the use of the term Restricted Subsidiaries in such definitions, and otherwise in accordance with such definitions.
For purposes of this definition, Consolidated Cash Flow Available for Fixed Charges and Consolidated Fixed Charges shall be calculated after giving effect on a pro forma basis for the period of such calculation to the incurrence of any Indebtedness or the issuance of any Preferred Stock of the Company or any Subsidiary (and the application of the proceeds thereof) and any repayment of other Indebtedness or redemption of other Preferred Stock (and the application of the proceeds therefrom) (other than the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes pursuant to any revolving credit arrangement) occurring during the four-quarter period or at any time subsequent to the last day of the four-quarter period and on or prior to the transaction date, as if such incurrence, repayment, issuance or redemption, as the case may be (and the application of the proceeds thereof), occurred on the first day of the four-quarter period.
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In calculating Consolidated Fixed Charges for purposes of determining the denominator (but not the numerator) of this Consolidated Interest Coverage Ratio:
(a) interest on outstanding Indebtedness determined on a fluctuating basis as of the transaction date and which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate per annum equal to the rate of interest on such Indebtedness in effect on the transaction date;
(b) if interest on any Indebtedness actually incurred on the transaction date may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the transaction date will be deemed to have been in effect during the four-quarter period; and
(c) notwithstanding clause (a) or (b) above, interest on Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to hedging obligations, shall be deemed to accrue at the rate per annum resulting after giving effect to the operation of these agreements.
Consolidated Income Tax Expenses means, with respect to any Person for any period the provision for federal, state, local and foreign income taxes of such Person and its Restricted Subsidiaries for such period as determined on a consolidated basis in accordance with GAAP.
Consolidated Interest Expense means, with respect to any Person for any period, without duplication, the sum of:
(1) the interest expense of such Person and its Restricted Subsidiaries for such period as determined on a consolidated basis in accordance with GAAP; and
(2) the interest component of capital lease obligations paid, accrued and/or scheduled to be paid or accrued by such Person and its Restricted Subsidiaries during such period determined on a consolidated basis in accordance with GAAP.
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Consolidated Net Income means, with respect to any Person, for any period, the consolidated net income (or loss) of such Person and its Restricted Subsidiaries for such period as determined in accordance with GAAP, adjusted, to the extent included in calculating such net income, by excluding, without duplication:
(1) all extraordinary gains or losses (net of fees and expenses relating to the transaction giving rise thereto);
(2) the portion of net income of such Person and its Restricted Subsidiaries allocable to minority interests in unconsolidated Persons to the extent that cash dividends or distributions have not actually been received by such Person or one of its Restricted Subsidiaries;
(3) gains or losses in respect of any sales of capital stock or asset sales outside the ordinary course of business by such Person or one of its Restricted Subsidiaries (net of fees and expenses relating to the transaction giving rise thereto), on an after-tax basis;
(4) any gain or loss realized as a result of the cumulative effect of a change in accounting principles;
(5) any fees and expenses paid in connection with the issuance of the debt securities or other Indebtedness;
(6) nonrecurring or unusual gains or losses;
(7) the net after-tax effects of adjustments in the inventory, property and equipment, goodwill and intangible assets line items in such Persons consolidated financial statements pursuant to GAAP resulting from the application of purchase accounting or the amortization or write-off of any amounts thereof;
(8) any fees and expenses incurred during such period, or any amortization thereof for such period, in connection with any acquisition, investment, asset sale, issuance or repayment of Indebtedness, issuance of stock, stock options or other equity-based awards, refinancing transaction or amendment or modification of any debt instrument (including without limitation any such transaction undertaken but not completed);
(9) any gain or loss recorded in connection with the designation of a discontinued operation (exclusive of its operating income or loss);
(10) any non-cash compensation or other non-cash expenses or charges arising from the grant of or issuance or repricing of stock, stock options or other equity-based awards or any amendment, modification, substitution or change of any such stock, stock options or other equity-based awards; and
(11) any non-cash impairment, restructuring or special charge or asset write-off or write-down, and the amortization or write-off of intangibles.
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Consolidated Non-Cash Charges means, with respect to any Person for any period, the aggregate depreciation, amortization (including amortization of goodwill and other intangibles) and other non-cash expenses (including stock option expenses and any goodwill impairment charges) of such Person and its Restricted Subsidiaries reducing Consolidated Net Income of such Person and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP (excluding any such charges which require an accrual of or a reserve for cash charges for any future period).
Disqualified Equity Interests of any Person means any class of Equity Interests of such Person that, by its terms, or by the terms of any related agreement or of any security into which it is convertible, puttable or exchangeable, is, or upon the happening of any event or the passage of time would be, required to be redeemed by such Person, whether or not at the option of the holder thereof, or matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, in whole or in part, on or prior to the date which is 91 days after the final maturity date of the Notes; provided, however, that any class of Equity Interests of such Person that, by its terms, authorizes such Person to satisfy in full its obligations with respect to the payment of dividends or upon maturity, redemption (pursuant to a sinking fund or otherwise) or repurchase thereof or otherwise by the delivery of Equity Interests that are not Disqualified Equity Interests, and that is not convertible, puttable or exchangeable for Disqualified Equity Interests or Indebtedness, will not be deemed to be Disqualified Equity Interests so long as such Person satisfies its obligations with respect thereto solely by the delivery of Equity Interests that are not Disqualified Equity Interests; provided, further, however, that any Equity Interests that would not constitute Disqualified Equity Interests but for provisions thereof giving holders thereof (or the holders of any security into or for which such Equity Interests are convertible, exchangeable or exercisable) the right to require the Company to redeem such Equity Interests upon the occurrence of a change in control occurring prior to the 91st day after the final maturity date of the Notes shall not constitute Disqualified Equity Interests if the change of control applicable to such Equity Interests are no more favorable to such holders than the provisions described above under Section 4.02, Repurchase of Notes Upon a Change of Control and such Equity Interests specifically provide that the Company will not redeem any such Equity Interests pursuant to such provisions prior to the Companys purchase of the Notes as required pursuant to the provisions described above under Section 4.02, Repurchase of Notes Upon a Change of Control.
Equity Interests of any Person means (i) any and all shares or other equity interests (including common stock, Preferred Stock, limited liability company interests and partnership interests) in such Person and (ii) all rights to purchase, warrants or options (whether or not currently exercisable), participations or other equivalents of or interests in (however designated) such shares or other equity interests in such Person, but excluding any debt securities that are convertible into such shares or other interests in such Person. For the avoidance of doubt, any payments or distributions in respect of or upon conversion of such convertible debt securities do not constitute Restricted Payments.
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GAAP means generally accepted accounting principles in the United States of America as in effect from time to time.
Indebtedness of any Person at any date means, without duplication:
(a) all liabilities, contingent or otherwise, of such Person for borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof);
(b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;
(c) all reimbursement obligations of such Person in respect of letters of credit, letters of guaranty, bankers acceptances and similar credit transactions;
(d) all obligations of such Person to pay the deferred and unpaid purchase price of property or services, except trade payables and accrued expenses incurred by such Person in the ordinary course of business in connection with obtaining goods, materials or services;
(e) the maximum fixed redemption or repurchase price of all Disqualified Equity Interests of such Person;
(f) all Capitalized Lease Obligations of such Person;
(g) all Indebtedness of others secured by a mortgage, pledge, lien, encumbrance, or other security interest (each, a security interest) which secures payment or performance of an obligation, on any asset of such Person, whether or not such Indebtedness is assumed by such Person;
(h) all Indebtedness of others guaranteed by such Person to the extent of such guarantee; provided that Indebtedness of the Company or its Subsidiaries that is guaranteed by the Company or its Subsidiaries shall only be counted once in the calculation of the amount of Indebtedness of the Company and its Subsidiaries on a consolidated basis;
(i) all Attributable Indebtedness with respect to any Sale and Lease Back Transaction;
(j) to the extent not otherwise included in this definition, all obligations of such Person under swap, cap, collar, forward purchase or similar agreements or arrangements dealing with interest rates, currency exchange rates or commodity prices, either generally or under specific contingencies (collectively, hedging obligations); and
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(k) all obligations of such Person under conditional sale or other title retention agreements relating to assets purchased by such Person.
The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described above, the maximum liability of such Person for any such contingent obligations at such date and, in the case of clause (g), the lesser of (i) the fair market value of any asset subject to a security interest securing the Indebtedness of others on the date that the security interest attaches and (ii) the amount of the Indebtedness secured. For purposes of clause (e), the maximum fixed redemption or repurchase price of any Disqualified Equity Interests that do not have a fixed redemption or repurchase price shall be calculated in accordance with the terms of such Disqualified Equity Interests as if such Disqualified Equity Interests were redeemed or repurchased on any date on which an amount of Indebtedness outstanding shall be required to be determined pursuant to the Indenture.
Preferred Stock means, with respect to any Person, any and all preferred or preference stock or other preferred Equity Interests (however designated) of such Person whether outstanding on or issued after May 31, 2013.
Qualified Equity Interests of any Person means Equity Interests of such Person other than Disqualified Equity Interests; provided that such Equity Interests shall not be deemed Qualified Equity Interests to the extent sold to a subsidiary of such Person or financed, directly or indirectly, using funds (i) borrowed from such Person or any subsidiary of such Person until and to the extent such borrowing is repaid or (ii) contributed, extended, guaranteed or advanced by such Person or any subsidiary of such Person (including, without limitation, in respect of any employee stock ownership or benefit plan). Unless otherwise specified, Qualified Equity Interests refer to Qualified Equity Interests of Meritor, Inc.
Restricted Payment means any of the following:
(a) the declaration or payment of any dividend or any other distribution on Equity Interests of the Company or any payment made to the direct or indirect holders (in their capacities as such) of Equity Interests of the Company, including, without limitation, any payment to the direct or indirect holders (in their capacities as such) of Equity Interests of the Company in connection with any merger or consolidation involving the Company, but excluding dividends or distributions payable solely in Qualified Equity Interests of the Company or through accretion or accumulation of such dividends on such Equity Interests; or
(b) the repurchase or redemption of any Equity Interests of the Company, including, without limitation, any payment to the direct or indirect holders (in their capacities as such) of Equity Interests of the Company in connection with any merger or consolidation involving the Company.
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Total Debt means, at any date of determination, the aggregate amount of all outstanding Indebtedness of the Company and its Subsidiaries determined on a consolidated basis in accordance with GAAP.
Total Leverage Ratio means, as of the date of determination, the ratio of (a) the Total Debt of the Company and its Subsidiaries to (b) Consolidated Cash Flow Available for Fixed Charges of the Company and its Subsidiaries for the most recently ended four fiscal quarter period ending immediately prior to such date for which financial statements are available. Notwithstanding anything to the contrary set forth in the definition of Consolidated Cash Flow Available for Fixed Charges (and all component definitions referenced in such definitions), for purposes of determining the Total Leverage Ratio, such definition (and all component definitions referenced in such definition) shall be calculated with respect to all of the Company and its Subsidiaries, notwithstanding the use of the term Restricted Subsidiaries in such definitions, and otherwise in accordance with such definitions.
In the event that the Company or any Subsidiary incurs, redeems, retires or extinguishes any Total Debt (other than the incurrence or repayment of Indebtedness in the ordinary course of business for working capital purposes pursuant to any revolving credit arrangement) subsequent to the commencement of the period for which the Total Leverage Ratio is being calculated but prior to or simultaneously with the event for which the calculation of the Total Leverage Ratio is made, then the Total Leverage Ratio shall be calculated giving pro forma effect to such incurrence, redemption, retirement or extinguishment of Total Debt as if the same had occurred at the beginning of the applicable four-quarter period.
ARTICLE 6
MISCELLANEOUS PROVISIONS
Section 6.01. Concerning the Trustee . The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture. The recitals and statements herein are deemed to be those of Meritor and not of the Trustee. For the avoidance of doubt, the Trustee shall have no responsibility for any of the calculations described in this Supplemental Indenture.
Section 6.02. Governing Law . This Supplemental Indenture shall be governed by and construed in accordance with the internal laws of the State of New York, without regard to its conflicts of law principles.
Section 6.03. Separability . In case any provision in this Supplemental Indenture shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.
Section 6.04. Counterparts . This Supplemental Indenture may be executed in any number of counterparts, each of which will be deemed to be an original, but all such counterparts together will constitute one and the same instrument.
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Section 6.05. Ratification of Indenture . This Supplemental Indenture shall form a part of the Indenture, and the parties hereto agree that, except as supplemented and amended herein, the Indenture is in all respects ratified and confirmed and shall remain in full force and effect.
Section 6.06. Waiver of Jury Trial . EACH OF THE COMPANY AND THE TRUSTEE 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 SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.
Section 6.07. Force Majeure and Consequential Damages . In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.
In no event shall the Trustee be responsible or liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.
Section 6.08. Notices . The Trustee agrees to accept and act upon notice, instructions or directions pursuant to the Indenture sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustees reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The party providing electronic instructions agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk of interception and misuse by third parties.
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IN WITNESS WHEREOF, the parties hereto have caused this Sixth Supplemental Indenture to be duly executed as of the day and year first above written.
MERITOR, INC. |
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By: | /s/ Carl D. Anderson, II | ||
Name: | Carl D. Anderson, II | ||
Title: | Vice President and Treasurer |
THE BANK OF NEW YORK MELLON |
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TRUST COMPANY, N.A., | |||
as Trustee | |||
By: | /s/ Lawrence M. Kusch | ||
Name: | Lawrence M. Kusch | ||
Title: | Vice President |
Exhibit 5.1
|
30
Rockfeller Plaza, New York, NY 10112
tel
212-408-5100 fax 212-541-5369
|
May 31, 2013
Meritor, Inc.
2135 West Maple
Road
Troy, Michigan 48084-7186
Ladies and Gentlemen:
We have acted as counsel to Meritor, Inc., an Indiana corporation (the "Company"), in connection with the execution, delivery, issuance and sale of the Company's $275,000,000 aggregate principal amount of 6.75% Notes due 2021 (the Notes) pursuant to an Underwriting Agreement, dated as of May 28, 2013, by and among the Company, the guarantors party thereto and the underwriters named therein (the Underwriting Agreement), and the Companys Registration Statement on Form S-3 (Registration Statement No. 333-179405), as amended (the Registration Statement), filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended (the Securities Act).
The Notes are to be issued under an indenture, dated as of April 1, 1998, as supplemented by the supplemental indentures dated as of July 7, 2000, July 6, 2004, June 23, 2006, March 3, 2010, May 23, 2013 and May 31, 2013 (as so supplemented, the Indenture), between the Company and The Bank of New York Mellon Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as trustee (the Trustee). The Notes will be guaranteed (collectively, the Guarantees) by certain subsidiaries of the Company (collectively, the Guarantors).
As your counsel, we have reviewed (i) the Registration Statement, (ii) the Indenture, (iii) the Notes and (iv) the Guarantees. We have also examined originals, or copies certified or otherwise authenticated to our satisfaction, of such corporate records, instruments, certificates of public officials and representatives of the Company, and other documents as we have deemed necessary as a basis for the opinions hereinafter expressed. In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with the originals of all documents submitted to us as copies. As to questions of fact material to this opinion, we have, when relevant facts were not independently established, relied upon certificates of officers and representatives of the Company and the Delaware Guarantors (as defined below) and appropriate public officials.
In our review of the Notes, the Guarantees, the Indenture and the Underwriting Agreement (collectively, the Documents), we have assumed that (i) the Company and the Guarantors have the corporate or limited liability company authority to execute and deliver the Documents to which they are parties (other than the corporate or limited liability company authority of the Guarantors incorporated or formed in the State of Delaware (the Delaware Guarantors) to enter into their respective Guarantees), (ii) each of the documents to which they are parties has been duly authorized, executed and delivered by the Company and the Guarantors (other than the Delaware Guarantors) and (iii) each of the Documents constitutes valid and binding obligations of the parties thereto other than the Company and the Guarantors, enforceable against each of them in accordance with their respective terms.
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Meritor, Inc. | -2- | May 31, 2013 |
On the basis of the foregoing, and having regard for such legal considerations as we deem relevant, we hereby advise you that, in our opinion, when the Notes and Guarantees have been executed, authenticated and delivered against payment therefor in accordance with the Indenture and the Underwriting Agreement, the Notes and Guarantees will be validly issued and will constitute valid and binding obligations of the Company and each Guarantor, respectively, except as the same may be limited by bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other similar laws now or hereafter in effect relating to or affecting the enforcement of creditors rights in general and general principles of equity, including principles of materiality, commercial reasonableness, good faith and fair dealing (regardless of whether considered in a proceeding in equity or at law).
We do not express any opinion herein with respect to the laws of any jurisdiction other than, in each case subject to the limitations and assumptions contained herein, the laws of the State of New York and, solely with respect to the corporate or limited liability company authority of the Delaware Guarantors to enter into the Guarantees and the due authorization, execution and delivery of the Guarantees by the Delaware Guarantors, the General Corporation Law of the State of Delaware and the Delaware Limited Liability Company Act (which, in each case, includes those statutory provisions and all applicable provisions of the Delaware Constitution and the reported judicial decisions interpreting such laws).
We hereby consent to the filing of this opinion as an Exhibit to a Current Report on Form 8-K to be filed by the Company. We also hereby consent to the reference to this firm under the caption Legal Matters in the prospectus which is part of the Registration Statement and the related prospectus supplement. In giving such consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations promulgated thereunder.
Very truly yours, |
/s/ Chadbourne & Parke LLP |
Exhibit 5.2
Faegre Baker Daniels
LLP
600 East 96
th
Street Suite 600
Indianapolis Indiana 46240-3789
Phone
+1 317 569 9600
Fax
+1 317 569
4800
May 31, 2013
Meritor, Inc.
2135 West Maple Road
Troy, MI 48084
Ladies and Gentlemen:
We have acted as Indiana counsel for Meritor, Inc., an Indiana corporation (the "Company"), in connection with the issuance and sale by the Company of $275,000,000 aggregate principal amount of its 6-3/4% Notes due 2021 (the "Notes"). In that capacity we have reviewed:
(a) The Registration Statement on Form S-3, Registration Nos. 333-179405 (the "Registration Statement"), of the Company and the Prospectus constituting a part thereof, dated November 29, 2012, relating to the issuance from time to time of debt and equity securities of the Company pursuant to Rule 415 promulgated under the Securities Act of 1933, as amended (the "1933 Act");
(b) The Prospectus Supplement, dated May 28, 2013, to the above-mentioned Prospectus relating to the Notes and filed with the Securities and Exchange Commission (the "Commission") pursuant to Rule 424 promulgated under the 1933 Act (the "Prospectus Supplement"); and
(c) The Sixth Supplemental Indenture, dated as of May 31, 2013, between the Corporation and The Bank of New York Mellon Trust Company, as trustee, including the form of Notes attached thereto (the "Supplemental Indenture").
For purposes of this opinion letter, we have examined originals or copies, identified to our satisfaction, of such documents, corporate records, instruments and other relevant materials as we deemed advisable and have made such examination of statutes and decisions and reviewed such questions of law as we have considered necessary or appropriate. In our examination, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as copies and the authenticity of the originals of such copies. As to facts material to this opinion letter, we have relied upon certificates, statements or representations of public officials, of officers and representatives of the Company and of others, without any independent verification thereof.
Meritor, Inc. | -2- | May 31, 2013 |
On the basis of and subject to the foregoing, we are of the opinion that the Company has the corporate authority under Indiana law to execute and deliver the Supplemental Indenture and the Notes.
We consent to the filing of this opinion as an exhibit to a Current Report on Form 8-K to be filed by the Company and to the reference to us under the heading "Legal Matters" in the Prospectus Supplement. In giving such consent, we do not admit that we come within the category of persons whose consent is required under Section 7 of the 1933 Act or the rules or regulations of the Commission thereunder.
Yours very truly, |
/s/ FAEGRE BAKER DANIELS LLP |
Exhibit 5.3
Founded in 1852
by Sidney Davy Miller |
|
michigan:
Ann
Arbor
|
Kalamazoo Lansing Troy | ||
florida:
Tampa
|
||
canada:
Toronto
Windsor
|
||
May 31, 2013 |
Meritor, Inc.
2135 West Maple Road
Troy, Michigan 48084-7186
Ladies and Gentlemen:
We have acted as special Michigan counsel to Arvin Technologies, Inc., a Michigan corporation (the Guarantor), in connection with a guarantee by the Guarantor dated as of May 31, 2013 (the Guarantee) of $275,000,000 aggregate principal amount of notes due 2021 (the Notes) of Meritor, Inc. (the Company) in an underwritten public offering of the Notes, together with the Guarantee and other guarantees of the Notes by other direct and indirect subsidiaries of the Company pursuant to an Underwriting Agreement dated as of May 28, 2013 among the Company, the Guarantor, such other subsidiary guarantors and the underwriters named therein and the Companys Registration Statement on Form S-3 (Registration Statement No. 333-179405), as amended, filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended.
In rendering the opinions expressed below, we have examined the following agreements, instruments and other documents:
(a) the form of Guarantee;
(b) a copy of the Articles of Incorporation of the Guarantor certified by the Michigan Department of Licensing and Regulatory Affairs as of May 30, 2013 in the form attached to the Guarantor Certificate (as defined below) (the Articles );
(c) a copy of the Bylaws of the Guarantor in the form attached to the Guarantor Certificate (as defined below) (the Bylaws );
(d) a copy of the Unanimous Written Consent of the Board of Directors of the Guarantor dated as of May 28, 2013 in the form attached to the Guarantor Certificate (as defined below);
(e) a copy of the Consent in Lieu of Special Meeting of Shareholders of the Guarantor dated as of May 30, 2013 in the form attached to the Guarantor Certificate (as defined below).
(f) a certificate, dated as of the date hereof, executed by the President and Secretary of the Guarantor (the Guarantor Certificate ).
MILLER, CANFIELD, PADDOCK and STONE, p.l.c.
-2- | May 31, 2013 |
I. Assumptions and Limitations . In our examination, we have assumed the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of all documents submitted to us as originals and the conformity with authentic original documents of all documents submitted to us as copies and that each document submitted to us for review is accurate and complete. In rendering the opinions set forth in this opinion letter, we have relied as to certain factual matters on statements of public officials and upon representations made in or pursuant to the Guarantee and the certificates of appropriate representatives of the Guarantor including, but not limited to, the Guarantor Certificate. We have not undertaken any independent investigations to determine the accuracy of the foregoing, and no inference that we have any knowledge of any matters pertaining to such statement should be drawn from our representation of the Guarantor for the purpose of rendering the opinions contained herein. All assumptions and statements of reliance herein have been made without any independent investigation or verification on our part except to the extent otherwise expressly set forth herein, and we express no opinion with respect to the subject matter or accuracy of such assumptions or items relied upon.
The opinions herein contained are further based upon and subject to the following assumptions:
(i) | There has not been any mutual mistake of fact or misunderstanding, fraud, duress or undue influence. | |
(ii) | There are no agreements or understandings between the parties, written or oral, and there is no usage of trade or course of prior dealing between the parties, that would, in either case, define, supplement, or qualify the terms of the Guarantee. | |
(iii) | All applicable rates of interest, including all those amounts that may be deemed interest under Michigan law, will not exceed the rate of 25% per annum simple interest. | |
(iv) | The execution, delivery and performance of the obligations of the Guarantor evidenced by the Guarantee are supported by adequate and valid consideration. | |
(v) | Where the Guarantee provides that it shall be governed by the laws of any state other than Michigan or where the laws of any state other than Michigan would apply in any way to the matters addressed herein, we have assumed that the laws of such other state are identical to those of the State of Michigan. | |
(vi) | The conduct of the parties to the Guarantee has complied with any requirement of good faith, fair dealing, and conscionability. |
MILLER, CANFIELD, PADDOCK and STONE, p.l.c.
-3- | May 31, 2013 |
(vii) | The execution, delivery, performance and incurrence of the obligations of the Guarantor under the Guarantee are necessary or convenient to the conduct, promotion or attainment of the business of the entities described in and as contemplated by MCLA Section 450.1261. | |
(viii) | The execution, delivery and performance of the obligations of the Guarantor under the Guarantee are of direct benefit to the Guarantor, in furtherance of the corporate purposes of the Guarantor and necessary or convenient to affect any purpose for which the Guarantor was formed. |
The law covered by the opinions expressed in this letter is limited to the law of the State of Michigan.
II. Opinions .
Based on and subject to the foregoing and to the qualifications and limitations set forth below, we are of the opinion that the Guarantor has the corporate authority to execute and deliver the Guarantee and the execution and delivery by the Guarantor of the Guarantee has been duly authorized by all necessary corporate action on the part of the Guarantor.
III. Exceptions and Limitations .
The foregoing opinions are subject to the following qualifications and limitations:
A. Our opinions do not extend to any action or conduct of the Guarantor that the Guarantee may permit but does not require.
B. Our opinions deal only with the specific legal issues explicitly addressed in the opinion set forth in Section II herein and do not address any other documents, instruments or matters and no opinions as to any such documents, instruments or matters should be implied from any opinion contained in this opinion letter. Without limiting the generality of the foregoing, we express no opinion as to the enforceability of any provisions of the Guarantee or any document or instrument referenced therein.
C. Our opinions do not address any of the following legal issues:
(1) federal and state banking, truth-in-lending, insurance, usury or other credit laws or regulations which may be applicable to this transaction;
(2) federal and state securities laws and regulations;
(3) federal and state antitrust and unfair competition laws and regulations;
(4) compliance with fiduciary duty requirements;
MILLER, CANFIELD, PADDOCK and STONE, p.l.c.
-4- | May 31, 2013 |
(5) the statutes and ordinances, the administrative decisions, and the rules and regulations of counties, cities, municipalities, and political subdivisions, and judicial decisions to the extent that they deal with any of the foregoing;
(6) fraudulent transfer and fraudulent conveyance laws or the applicability of, or the Guarantors compliance with, the Michigan Business Corporation Act provisions governing distributions (as defined in that Act);
(7) federal and state tax laws and regulations; and
(8) federal and state laws, regulations, and policies concerning (a) national and local emergency or (b) possible judicial deference to acts of sovereign states.
D. This letter does not address and contains no United States federal tax advice and may not be used or relied upon for purposes of avoiding United States federal tax penalties.
E. This letter speaks only as of its date. We undertake no obligation to advise you (or any third party) of changes of law or fact that occur after the date of this lettereven though the change may affect the legal conclusions stated in this letter.
F. We are not providing you with any legal or other analysis beyond that expressly set forth in this letter, such as the broader guidance and counsel that we might provide to our own client.
G. Our opinions do not extend to federal or state law (other than Michigan law) and are subject to the effect thereof.
H. No one other than you is entitled to rely on opinions and confirmations contained in this letter, and you may rely on them only for the purpose contemplated by the Guarantee. Without our prior written consent, this letter may not be used or relied on by you or any other person for any other purpose whatsoever.
We hereby consent to the filing of this opinion as an exhibit to the Current Report on Form 8-K to be filed by the Company on the date hereof. In giving this consent, we do not thereby admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.
Very truly yours, | |
/s/ Miller, Canfield, Paddock & Stone P.L.C. | |
Miller, Canfield, Paddock & Stone P.L.C. |
Exhibit 5.4
|
Boundary Hall
|
May 31 ,2013 |
Meritor, Inc.
2135 We
s
t Maple Ro
a
d
Troy, Michigan 48084-7186
Ladies a n d Gentlem e n:
Re: | Subsidiary Guaranty made as of May 31, 2013 by Arvin Cayman Islands, Ltd., and Meritor Cayman Islands, Ltd., as Initial Guarantors, in favour of The Bank of New York Mellon Trust Company, N.A., as Trustee |
We are Cayman I slands cou n sel to Arvi n Cayman Islands, Ltd. a nd Merito r Cayman Is l ands Ltd., ea c h an exem p ted compa ny incorpor a ted in the Cayman Isl ands (toget h er the Ca y man Islands G uarantors ) , and we a re deliveri ng this opi n ion in co n nection wit h the Subs i diary Guarant y dated as o f May 31, 2013, executed by eac h of the Ca y man Islan d s Guarant o rs in favour o f The Bank of New Y o rk Mellon Trust Com p any, N.A., as Trustee (the Subsidiary Guarant y ), in con n ection wit h the execution, delive ry , issuance and sale o f US$275,0 0 0,000 aggrega t e principal amount of 6 3/4% N otes due 2 021 (the " N otes") of M eritor, Inc . (the " Compa ny ") in an u nderwritte n public offering of t h e Notes p u rsuant to a n Underw r iting Agreem e nt dated a s of May 2 8 , 2013 amo ng the Co m pany, the C ayman Isl a nds Guara n tors, such ot h er subsidi a ry guarant o rs and th e underwri t ers named therein (t h e " Underw r iting Agreem e nt ") and the Compan y 's Registrat i on Stateme nt on For m S-3 (Regis t ration Stat e ment No. 333-179405), as amended, f iled with t h e Securitie s and Exch a nge Com m ission und e r the Securities Act of 193 3 , as amend e d.
I n that conne c tion, we ha v e examine d the origina l s, or copies c ertified to o ur satisfacti o n, of the follo w ing docum e nts:
(a) | The Underwriting Agreement; | ||
(b) | the Subsidiary Guaranty; | ||
(c) | the certificate of incorporation, the memorandum of association and the articles of association of each of the Cayman Islands Guarantors; | ||
(d) | a certificate of good standing of each of the Cayman Islands Guarantors issued by the Cayman Islands Registrar of Companies; and | ||
(e) | t h e resolutio n s of the b oard of di r ectors of e a ch of the Cayman Is l ands Guar a ntors authorising t h e execution of the Subsidiary Guaranty, as certi f ied by the A ssistant Sec r etary of each of t he Cayma n Islands G uarantors, dated Ma y 28, 2013 (the Secretarys C ertificate ); |
A s to questi o ns of fact m aterial, we have, whe n relevant f a cts were not indepen d ently establish e d by us, rel i ed upon th e Secretarys Certificates.
PAGET-BROWN | 2 |
The following opinions are given only as to circumstances existing on the date hereof and known to us and as to the laws of the Cayman Islands as the same are in force at the date hereof. In giving this opinion we have relied upon the accuracy of the Secretarys Certificates without further verification and have relied on the following assumptions, which we have not independently verified:
(1) | The due authorisation, execution and delivery of the Underwriting Agreement and Subsidiary Guaranty by all parties other than the Cayman Islands Guarantors; | |
(2) | that the Underwriting Agreement and the Subsidiary Guaranty constitutes the legal, valid, binding and enforceable obligations against all relevant parties in accordance with the terms under the governing law provision, namely the laws of New York, United States of America; | |
(3) | that the Subsidiary Guaranty is entered into for bona fide commercial reasons by each of the parties thereto with a valid rationale and without the purpose of defrauding any third parties or governmental authority or to circumvent the laws or regulations of any jurisdiction. | |
(4) | that the choice of the laws of New York and the submission by the parties to the non-exclusive jurisdiction of any United States Federal or New York State Court sitting in New York, New York, has been made in good faith and not with the intent to avoid the mandatory provision of some other law having a closer connection to the transactions and would be regarded as a valid and binding selection and submission which will be upheld as a matter of the laws of New York; | |
(5) | the genuineness of all documents, the authenticity of the signatures and the conformity of all copies submitted to me with the originals thereof; | |
(6) | the power, authority and legal right of all parties under all relevant laws and regulations (other than the Cayman Islands Guarantors and other than the laws and regulations of the Cayman Islands) to enter into, execute and perform their respective obligations under the Subsidiary Guaranty; | |
(7) | that there are no agreements or arrangements between any of the parties to the Underwriting Agreement and the Subsidiary Guaranty or any third parties which modify or supersede the terms of the Underwriting Agreement and the Subsidiary Guaranty and that the Subsidiary Guaranty represents and contains the entirety of the transactions entered into by the parties to the Subsidiary Guaranty in or in connection with the transactions contemplated thereby; | |
(8) | that there are no other agreement, undertaking, understandings, representation or warranty (oral or written) and on other arrangement (whether legal binding or not) between or among any of the parties to the Underwriting Agreement or Subsidiary Guarantee or third parties that would modify, release, terminate, subordinate the terms of the Underwriting Agreement or the Subsidiary Guaranty; and |
(9) | that there is nothing under any law, other than the laws of the Cayman Islands, which would or might affect the opinions hereinafter appearing; specifically we have made no independent investigation of the laws of New York. |
PAGET-BROWN | 3 |
Based upon the foregoing, we are of the following opinion: Each of the Cayman Islands Guarantors has the power, authority and legal right (a) to execute and deliver the Subsidiary Guaranty and any other documentation relating to the Subsidiary Guaranty that it is required by the Subsidiary Guaranty to deliver; (b) to perform its obligations under the Subsidiary Guaranty; and (c) has taken all necessary actions to authorize such execution, delivery and performance.
Except as specifically stated herein, we make no comment with regard to any warranties or representations made by either of the Cayman Islands Guarantors in the Subsidiary Guaranty or otherwise or with regard to the financial or commercial terms of transactions evidenced by the Subsidiary Guaranty.
This opinion is solely limited to those matters of Cayman Islands law stated herein and we assume no responsibility to update this opinion. We express no opinion on any laws other than the laws of the Cayman Islands. We have not reviewed either of the Cayman Islands Guarantors financial statements and this opinion does not constitute any representation, express or implied, regarding the financial condition of either of the Cayman Islands Guarantors.
We hereby consent to the filing of this opinion as an Exhibit to a Current Report on Form 8K to be filed by the Company.
PAGET-BROWN | ||
/s/ Ian Paget-Brown | ||
By Ian Paget-Brown ( Director) |
Exhibit 5.5
|
|
1201 MAIN STREET, 22
ND
FLOOR (29201-3226)
|
May 31, 2013
Meritor, Inc.
2135 West Maple Road
Troy, Michigan 48084-7186
Ladies and Gentlemen:
We have acted as South Carolina counsel to AVM, Inc., a South Carolina corporation (the Guarantor), in connection with the execution, delivery, issuance and sale of a guarantee by the Guarantor (the Guarantee) of $275,000,000 aggregate principal amount of 6.75% Notes due 2021 (the Notes) of Meritor, Inc. (the Company) in an underwritten public offering of the Notes, together with the Guarantee and other guarantees of the Notes by other direct and indirect subsidiaries of the Company, pursuant to an Underwriting Agreement dated as of May 28, 2013 among the Company, the Guarantor, such other subsidiary guarantors and the underwriters named therein and the Companys Registration Statement on Form S-3 (Registration Statement No. 333-179405), as amended, filed with the Securities and Exchange Commission under the Securities Act of 1933, as amended.
As counsel for the Guarantor, we are familiar with the organizational documents of the Guarantor, each as amended to the date hereof, and we have reviewed (i) the Guarantee, (ii) resolutions of the Guarantor authorizing and approving the Guarantee, (iii) Articles of Incorporation for the Guarantor filed with the Office of the South Carolina Secretary of State, (iv) Bylaws of the Guarantor in effect as of the date hereof, and (v) a Certificate of Existence issued by the Office of the South Carolina Secretary of State on May 8, 2013 (items ii through v being the Organizational Documents). We have also examined originals, or copies certified or otherwise authenticated to our satisfaction, of such corporate records of the Guarantor and other instruments, certificates of public officials and representatives of the Company or the Guarantor, and other documents as we have deemed necessary as a basis for the opinions hereinafter expressed. In such examination, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals and the conformity with the originals of all documents submitted to us as copies. As to questions of fact material to this opinion, we have, when relevant facts were not independently established, relied upon certificates of officers of the Company or the Guarantor and appropriate public officials. We assume there has been no change in the corporate standing of the Company since the date the Certificate of Existence was issued by the office of the South Carolina Secretary of State.
|
Meritor, Inc.
May 31, 2013
Page 2
Based on the foregoing, we are of the opinion that, based solely on the Organizational Documents, the Guarantor has the corporate authority to execute and deliver its Guarantee and the Guarantee has been duly executed by the Guarantor.
We do not express any opinion herein with respect to the laws of any jurisdiction other than the laws of South Carolina. We assume no obligation to update or supplement our opinion to reflect any facts or circumstances which may hereafter come to our attention or changes in law which may hereafter occur.
We hereby consent to the filing of this opinion as an Exhibit to a Current Report on Form 8-K to be filed by the Company.
Very truly yours, | ||
/s/ Haynsworth Sinkler Boyd, P.A. | ||
Haynsworth Sinkler Boyd, P.A. |
Exhibit 5.6
Merit o r, Inc. | |
2135 W est Maple R o ad | |
Troy, Michigan 480 8 4-7186 | Stoc k holm, 31 Ma y 2013 |
Ref. 1 0048- 003/S G |
Ladies and Gentlemen:
Arvinmeritor Sweden AB Subsidiary Guarantee
We have acted as Swedish co u nsel to Arvi n Meritor Sw e den AB (the Guarantor ), a limited liability com p any incorpo r ated under the laws of S weden, in connection w ith the exec u tion, delive r y and issua n ce of a gua r antee dated 31 May 201 3 (the Guarantee ) by the Guarantor in relation t o up to $27 5 ,000,000 ag g regate prin c ipal amount of 6.75% n o tes due 2021 (the Notes ) of Merit o r, Inc. (the Company ) in an under w ritten publi c offering of t he Notes, t o gether with t he Guarant e e and othe r guarantees of the Note s by other direct and ind i rect subsidi a ries of the C ompany, pu r suant to an underwritin g agreement dated as of 28 May 201 3 among the Company, t h e Guaranto r , such othe r subsidiary g uarantors a n d the underwriters nam e d therein (t h e Underwriting Agreement ) and t he Compan y s Registrati o n Statemen t on Form S-3 (Registrati o n Stateme n t No. 333-179405) as a m ended, file d with the Securities and Exchange C o mmission u n der the Sec u rities Act of 1933, as amended
1. | We have examined: | |||
( a ) | The Guar a ntee; | |||
( b ) | The Und e rwriting Agr e ement; | |||
( c ) | A copy of the share re g ister of the Guarantor; | |||
( d ) | A copy of the register e d articles of association o f the Guara n tor, adopte d on 27 March 2006; | |||
( e ) | A copy of the certificate of incorporation of the Guarantor, dated 16 May 2013, issued by the Companies Registrations Office, together with any filings with the Companies Registration Office by the Guarantor that have entered into force but have not yet been registered; | |||
( f ) | A copy of the minutes from an extraordinary meeting of the shareholders in the Guarantor held on 28 May 2013, where the shareholder resolved to enter into, and approving the terms and conditions of, the Guarantee and the Underwriting Agreement; | |||
( g ) | A copy of the minutes from a meeting of the board of directors of the Guarantor held on 28 May 2013, where the board resolved to enter into and approving the terms and conditions of, the Guarantee and the Underwriting Agreement; |
ADVOKATFIRMAN TöRNGREN MAGNELL KB |
Västra Trädgårdsgatan 8 | SE-111 53 Stockholm | Phone +46 8 400 283 00 |
www.torngrenmagnell.com | Reg. no: 969715-1687 | Reg. Office: Stockholm Sweden |
We have not examined any other documents or records than those explicitly set out herein. The Guarantee and the Underwriting Agreement are here after referred to as the Transaction Documents .
2. | In our examination we have assumed: | |||
( a ) | that all signatures on all documents supplied to us as originals or as copies of originals are genuine and that all documents submitted to us are true, authentic and complete and that where a document has been examined by us in draft form, it will be or has been executed in the form of that draft, and where a number of drafts of a document have been examined by us all changes to them have been marked or otherwise drawn to our attention; | |||
( b ) | the accuracy and completeness of all documents reviewed by us and of any other information set out in public registers or that has otherwise been supplied or disclosed to us (and we have therefore not made any independent investigation thereof); | |||
( c ) | that all documents, authorisations, powers and authorities produced to us remain in full force and effect and have not been amended or affected by any subsequent action not disclosed to us; | |||
( d ) | that there is no provision of the law of any jurisdiction, other than Sweden, which would have any implication in relation to the opinions expressed below; | |||
( e ) | that all necessary consents, authorisations and approvals whatsoever and howsoever described required in any relevant jurisdiction (other than Sweden) for the due execution and delivery of the Transaction Documents by each of the parties thereto have been, or will be, obtained; and that all necessary notices, filings, registrations and recordings required in any applicable jurisdiction (other than Sweden) in respect of the Transaction Documents have been, or will be, given or effected in accordance with the laws and regulations of every such jurisdiction; and | |||
( f ) | that as to questions of fact material to this opinion, we have, when relevant facts were not independently established, relied upon certificates of officers of the Company or the Guarantor and appropriate public officials. | |||
3. | On the basis of the foregoing and subject to the qualifications and reservations hereinafter set forth, we are of the opinion that: | |||
(a) | The G u arantor is a company d u ly incorpor a ted and vali d ly existing a s a limited liability comp a ny under th e laws of Sw e den. | |||
(b) | The Guarantor has the power, authority and legal right to execute and deliver the Guarantee, and has taken all necessary actions to authorize such execution and delivery. | |||
4. | The opinion in 3 (b) above is subject to the following qualifications and reservations: | |||
(a) | Anyth i ng containe d in this opin i on is subjec t to all limita t ions resulting from substantive bankr u ptcy, insolv e ncy, liquida t ion, reorga n isation and s imilar laws a ffecting the rights of cre d itors gener a lly. | |||
(b) | To the extent that a guarantee by a Swedish limited liability company as security for the obligations of a third party, a parent or sister company exceeds the distributable reserves of the relevant guarantor at the time when the guarantee is given, the validity of such guarantee is subject to the condition that the guarantor receive consideration on market terms for its undertakings or that otherwise sufficient corporate benefit accrues to it . |
ADVOKATFIRMAN TöRNGREN MAGNELL KB |
Västra Trädgårdsgatan 8 | SE-111 53 Stockholm | Phone +46 8 400 283 00 |
www.torngrenmagnell.com | Reg. no: 969715-1687 | Reg. Office: Stockholm Sweden |
(c) | Subject to certain exceptions, a Swedish limited liability company may not provide guarantees to any person that owns shares in the company or any subsidiary of that company. This means that as noted in the corporate resolutions of the Guarantor mentioned under 1 (f) and (g) above - the Guarantee may not cover the obligations of its shareholder or companies over which its shareholder has a controlling interest. | |||
(d) | This o p inion is limi t ed to matte r s of Swedis h law as pres e ntly in force and as enac t ed by Swedi s h legislative authorities a nd no opinion is expres s ed as to th e laws of any other jurisdiction. | |||
(e) | This opinion is strictly limited to matters stated herein and is not to be read as extending by implication to any other matters in connection with the Transaction Documents. | |||
(f) | This o pinion is given on the basis that i t will be g o verned by and constr u ed in accor d ance with S wedish law. | |||
5. | Consent and limitations: |
We hereby conse n t to the fili n g of this opi n ion as an E x hibit to a Current Report on Form 8- K to be filed b y the Comp a ny.
We assume no o b ligation to a dvise you of any chang e s in the for e going subs e quent to th e date set f o rth in the b e ginning of t his opinion a nd this opi n ion speaks o nly as of th a t date.
Very t ruly yours,
Advokatfirman T ö rngren Ma g nell KB
/s/ S a ra Göthlin | / s/ Cecilia R u dels | |||
Sara G öthlin | Cecilia Rude l s |
ADVOKATFIRMAN TöRNGREN MAGNELL KB |
Västra Trädgårdsgatan 8 | SE-111 53 Stockholm | Phone +46 8 400 283 00 |
www.torngrenmagnell.com | Reg. no: 969715-1687 | Reg. Office: Stockholm Sweden |
Exhibit 5.7
HANDLED BY | Vincent Bettonville | |||
TO | Meritor, Inc. | Attorney at Law / Partner | ||
2135 West Maple Road | PHONE | +31 88 253 5210 | ||
Troy, Michigan 48084-7186 | FAX | +31 88 253 5260 | ||
United States of America | vbettonville@akd.nl | |||
VISITORS ADDRESS | Orlyplein 10 | |||
1043 DP Amsterdam | ||||
POSTAL ADDRESS | P.O. Box 59280 | |||
1040 KG Amsterdam | ||||
the Netherlands | ||||
INTERNET | www.akd.nl | |||
DATE | 31 May 2013 | |
SUBJECT |
Meritor Netherlands B.V., Arvin Holdings Netherlands B.V. and Meritor Holdings Netherlands B.V. - legal opinion subsidiary guarantee |
|
OUR REFERENCE | VB/JVH/250582 | |
DATE | 31 May 2013 | |
PAGE | 2 of 9 | |
(c) | an e-mail copy of a true copy of the notarial deed of incorporation of Meritor Holdings dated 22 September 1999 (the Meritor Holdings Deed of Incorporation ), containing the continuous text of the articles of association of Meritor Holdings (the Meritor Holdings Articles ); | ||
(d) | an e-mail copy of a deed of amendment of the articles of association of Meritor Netherlands dated 20 April 2011 (the Meritor Netherlands Deed of Amendment ), containing the continuous text of the articles of association of Meritor Netherlands, as lastly amended by the Meritor Netherlands Deed of Amendment (the Meritor Netherlands Articles ); | ||
(e) | a certified electronic copy of an extract dated 31 May 2013, file number 34114018, from the trade register ( Handelsregister ) of the Chamber of Commerce ( Kamer van Koophandel ) for Amsterdam (the Chamber of Commerce ) with information concerning Meritor Netherlands (the Meritor Netherlands Extract ); | ||
(f) | a certified electronic copy of an extract dated 31 May 2013, file number 34306316, from the trade register of the Chamber of Commerce with information concerning Arvin Holdings (the Arvin Holdings Extract ); | ||
(g) | a certified electronic copy of an extract dated 31 May 2013, file number 34121370, from the trade register of the Chamber of Commerce with information concerning Meritor Holdings (the Meritor Holdings Extract ); | ||
(h) | an e-mail copy of the signed written resolutions of the board of managing directors ( bestuur ) of Meritor Netherlands (the Meritor Netherlands Board ) dated 28 May 2013 (the Meritor Netherlands Board Resolution ); | ||
(i) | an e-mail copy of the signed written resolutions of the board of managing directors of Arvin Holdings (the Arvin Holdings Board ) dated 28 May 2013 (the Arvin Holdings Board Resolution ); | ||
(j) | an e-mail copy of the signed written resolutions of the board of managing directors of Meritor Holdings (the Meritor Holdings Board ) dated 28 May 2013 (the Meritor Holdings Board Resolution ); | ||
(k) | an e-mail copy of the signed written resolutions adopted outside of a meeting by the sole shareholder of Meritor Netherlands (the Meritor Netherlands General Meeting ) dated 28 May 2013 (the Meritor Netherlands Shareholders Resolution ); |
DATE | 31 May 2013 | |
PAGE | 3 of 9 | |
(l) | an e-mail copy of the signed written resolutions adopted outside of a meeting by the sole shareholder of Arvin Holdings (the Arvin Holdings General Meeting ) dated 28 May 2013 (the Arvin Holdings Shareholders Resolution ); | |||
(m) | an e-mail copy of the signed written resolutions adopted outside of a meeting by the shareholders of Meritor Holdings (the Meritor Holdings General Meeting ) dated 28 May 2013 (the Meritor Holdings Shareholders Resolution ); | |||
(n) | an e-mail copy of an executed copy of an indenture dated 1 April 1998 between Meritor, Inc. (successor to Meritor Automotive, Inc.) as the Company and The Bank of New York Mellon Trust Company, N.A., formerly known as The Bank of New York Trust Company, N.A. (successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as Trustee, as supplemented by a first supplemental indenture dated 7 July 2000, a second supplemental indenture dated 6 July 2004, a third supplemental indenture dated 23 June 2006, a fourth supplemental indenture dated 3 March 2010, a fifth supplemental indenture dated 23 May 2013 and a sixth supplemental indenture dated 31 May 2013 (the Indenture ); and | |||
(o) | an e-mail copy of an executed copy of a subsidiary guarantee entered into by, among others, the respective Companies as Initial Guarantors in favour of The Bank of New York Mellon Trust Company, N.A., as Trustee under the Indenture, dated 31 May 2013 (the Opinion Document ). | |||
The Meritor Netherlands Board Resolution, the Arvin Holdings Board Resolution, the Meritor Holdings Board Resolution, the Meritor Netherlands Shareholders Resolution, the Arvin Holdings Shareholders Resolution and the Meritor Holdings Shareholders Resolution are hereafter collectively referred to as the Resolutions and, each individually, as a Resolution . The Meritor Netherlands Deed of Incorporation, the Arvin Holdings Deed of Incorporation and the Meritor Holdings Deed of Incorporation are hereinafter collectively referred to as the Deeds of Incorporation and, each individually, as a Deed of Incorporation . The Meritor Netherlands Articles, the Arvin Holdings Articles and the Meritor Holdings Articles are hereinafter collectively referred to as the Articles . The Meritor Netherlands Extract, the Arvin Holdings Extract and the Meritor Holdings Extract are hereinafter collectively referred to as the Extracts .
Assumptions
Original and genuine documentation |
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(i) | the genuineness of all signatures on original documents of the persons purporting to have signed the same and the authenticity of all documents submitted to us as originals and the conformity to the originals of all documents submitted to us as true, photo, e-mail, facsimile, conformed or certified copies; | |||
(ii) | that the Opinion Document and the Indenture have not been amended, supplemented, terminated, rescinded, nullified or declared null and void; |
DATE | 31 May 2013 | |
PAGE | 4 of 9 | |
Due incorporation and valid existence |
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(iii) | that (a) the Deeds of Incorporation are valid notarial deeds ( authentieke akten ), (b) the contents thereof are correct and complete, and (c) there were no defects in the incorporation process (not appearing on the face of the Deeds of Incorporation) for which a court might dissolve a Company; | ||||
(iv) | that none of the Companies has (a) been dissolved ( ontbonden ); (b) ceased to exist as a result of a legal merger ( juridische fusie ) or division ( splitsing ) with a Company as the disappearing entity; (c) been granted a suspension of payments ( surseance van betaling ); (d) been declared bankrupt ( failliet verklaard ) ; (e) been subjected to any other insolvency proceedings listed in Annex A or winding up proceedings listed in Annex B of Council Regulation (EC) No. 1346/2000 of 29 May 2000 on Insolvency Proceedings (the EU Insolvency Regulation ); and/or (f) been subjected to any winding up proceedings as mentioned in Section 2:20 paragraph 1 and 2 of the Dutch Civil Code ( Burgerlijk Wetboek ). Although not constituting conclusive evidence thereof, the matters referred to under (a) through (d) of this assumption are supported by the contents of the Extracts, investigations made by telephone on the date hereof with the bankruptcy registrars of the court of first instance ( rechtbank ) of Amsterdam, the Netherlands, and with the Chamber of Commerce; | ||||
Corporate documents |
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(v) | that the Articles are in full force and effect on the date of the Opinion Document, on the date of the Resolutions and on the date hereof; | ||||
(vi) | that the information recorded in the Extracts is true, accurate and complete on the date of the Opinion Document, on the date of the Resolutions and on the date hereof; | ||||
(vii) | that the Resolutions (a) correctly reflect the resolutions made by the Meritor Netherlands Board, the Arvin Holdings Board, the Meritor Holdings Board, the Meritor Netherlands General Meeting, the Arvin Holdings General Meeting and the Meritor Holdings General Meeting respectively, regarding the transactions contemplated by the Opinion Document, (b) have not been amended, nullified, revoked or declared null and void, and (c) are in full force and effect and that the factual statements and confirmations contained therein are correct and complete on the date of the Opinion Document, on the date of the Resolutions and on the date hereof; |
DATE | 31 May 2013 | |
PAGE | 5 of 9 | |
Power and authority |
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(viii) | that the entering by each Company into the Opinion Document and the performance by each Company of its obligations thereunder is (a) in the interest of such Company and its enterprise ( in het belang van de vennootschap en de met haar verbonden onderneming ) and (b) not prejudicial to its present and future creditors; | ||
Due authorization |
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(ix) | that there are no persons with meeting rights ( vergadergerechtigden ) other than the persons who have signed the Meritor Netherlands Shareholders Resolution, the Arvin Holdings Shareholders Resolution and the Meritor Holdings Shareholders Resolution; | ||
(x) | that none of the managing directors of a Company has a (potential) conflict of interest ( tegenstrijdig belang ) with the respective Companies in connection with the Opinion Document; | ||
(xi) | that the Meritor Holdings Shareholders Resolution, has been validly executed by the shareholders of Meritor Holdings and that the Arvin Holdings Shareholders Resolution has been validly executed by the sole shareholder of Arvin Holdings; | ||
(xii) | that (a) there is no works council ( ondernemingsraad ) within the meaning of the Dutch Works Councils Act ( Wet op de ondernemingsraden ) or the European Works Councils Act ( Wet op de Europese ondernemingsraden ) which has any authority with respect to the Companies or their respective enterprise ( onderneming , as defined in the Dutch Works Councils Act), and (b) the Companies are not in the process of establishing and are not under the obligation to establish such works council; | ||
Third parties and foreign laws |
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(xiii) | that each party to the Opinion Document (other than the Companies) (a) is duly incorporated and organized, validly existing and in good standing (where such concept is legally relevant) under the laws of its jurisdiction of incorporation and of the jurisdiction of its place of business, (b) has all requisite power (corporate or otherwise) and capacity to sign, execute and deliver (where legally relevant), and to perform its obligations under, the Opinion Document, and (c) has duly authorized, signed, executed and delivered (where legally relevant) the Opinion Document; | ||
(xiv) | that under any applicable law (other than the laws of the Netherlands) the Opinion Document constitutes legal, valid and binding obligations of all parties thereto (including the Company), enforceable against such parties in accordance with its terms; and |
DATE | 31 May 2013 | |
PAGE | 6 of 9 | |
Choice of law |
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(xv) | that the choice of the laws of the State of New York, as the law expressed to be governing the Opinion Document, is valid and binding under the laws of the State of New York and will be recognized and given effect to by the courts of the State of New York. | ||
Scope of Opinion and
Limitations
In this legal opinion Dutch legal concepts are expressed in English terms and not in their original Dutch terms. Where indicated in underlined italics, Dutch equivalents of these English terms have been given. The Dutch legal concepts may not be identical to the concepts described by the same English terms as they exist under the laws of other jurisdictions. Terms and expressions of law and of legal concepts as used in this legal opinion have the meaning attributed to them under Dutch law and this legal opinion should be read and understood accordingly. This legal opinion may only be relied upon in connection with the filing of a current report on form 8-K (the 'Current Report' ) to be filed by the Company with the United States Securities and Exchange Commission under the Securities Act of 1933, as amended (the ' United States Securities Act ') under the express conditions that (a) any disputes in connection with this legal opinion will exclusively be governed by Dutch law; (b) the competent court of Rotterdam, the Netherlands, shall have exclusive jurisdiction with respect to any disputes in connection with this legal opinion; and (c) the total collective liability of AKD N.V. shall in all circumstances be limited to the amount which is paid out under the firms professional liability policy in the matter concerned. The maximum total amount of coverage under the firms professional liability policy amounts to EUR 250,000,000. At the date hereof AKD N.V. is in compliance with its payment obligations under aforementioned policy. |
DATE | 31 May 2013 | |
PAGE | 7 of 9 | |
We express no opinion as to any laws other than Dutch law (unpublished case law not included) in force as it currently stands and no opinion is given that the future or continued performance of any of the Companies obligations or the consummation of the transactions contemplated by the Opinion Document will not contravene these laws, application or interpretation, as changed from time to time. We do not give any opinion on any matters of fact (including but not limited to statements, covenants and representations and warranties as made by any of the Companies in or contained in any of the documents reviewed by us), tax law or other levies, treaties or international law (including the laws of the European Union, except if and when such treaties and/or the laws of the European Union have direct effect in the Netherlands on the date hereof, and except to the extent as specifically stated otherwise), on the business merits of the transactions contemplated by the Opinion Document, on financial assistance rules or on anti-trust law and competition law. Where an assumption is made, we have not investigated the matters that are the subject of such assumption, except to the extent expressly stated otherwise. The opinions contained in this letter are strictly limited to the matters stated below under the heading Opinions and do not extend by implication or otherwise to any other matter not specifically referred to. These opinions are rendered on date hereof only and we are under no obligation to update our opinions for events, transactions, circumstances or changes in any of the facts, assumptions or representations occurring after the date hereof or for any other reason.
Opinions
1. Due incorporation and valid existence Each Company has been duly incorporated and is validly existing under the laws of the Netherlands as a legal entity in the form of a private company with limited liability ( besloten vennootschap met beperkte aansprakelijkheid ). 2. Power and authority Each Company has the corporate power and authority to enter into the Opinion Document and to perform its contractual obligations ( verbintenisrechtelijke verplichtingen ) thereunder. |
DATE | 31 May 2013 | |
PAGE | 8 of 9 | |
DATE | 31 May 2013 | |
PAGE | 9 of 9 | |
This opinion letter is addressed to you and is issued in connection with the Opinion Document and for the purpose of the filing of the Current Report to be filed by the Company with the United States Securities and Exchange Commission under the United States Securities Act. We hereby consent to the filing of this opinion as an exhibit to the Current Report. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the United States Securities Act or the rules and regulations of the United States Securities and Exchange Commission promulgated thereunder. Yours faithfully, |
|
/s/ AKD N.V. | |
AKD N.V. |
Exhibit 5.8
Baker & McKenzie Luxembourg | |
12, rue Eugène Ruppert | |
L-2453 Luxembourg | |
Tel: +352 26 18 44 1 | |
Fax: +352 26 18 44 99 |
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LEGAL OPINION
To the attention of: | |
Meritor, Inc | |
2135 West Maple Road | |
Troy, Michigan 48084-7186 | |
(the Addressee ) | |
31 May 2013 |
Re.: Meritor Luxembourg S.à r.l. - subsidiary guaranty
Dear Sirs,
I. Introduction
We have been appointed as legal counsel in the Grand-Duchy of Luxembourg ( Luxembourg ) by Meritor Luxembourg S.à r.l., a Luxembourg société à responsibilité limitée , having its registered office at 5, rue Guillaume Kroll, L-1882 Luxembourg, registered with the Luxembourg Trade and Companies Register under number B 72.248 (the Company ) in order to provide you with this legal opinion under Luxembourg law in connection with the execution, delivery, issuance and sale of a guarantee by the Company of USD 275,000,000 aggregate principal amount of 6-3/4% notes due 2021 (the " Notes ") of Meritor, Inc. (" Meritor ") in an underwritten public offering of the Notes, together with other guarantees of the Notes by the other direct and indirect subsidiaries of Meritor.
Unless otherwise specified in this legal opinion, capitalized terms used but not defined have the meaning given in Schedule 1 hereto, which forms an integral part of this legal opinion.
Baker & McKenzie Luxembourg is a member of Baker & McKenzie International.
II. Scope of the legal opinion
1. | This legal opinion is strictly confined to the specific matters of Luxembourg law and has been prepared without considering the implications of any laws of any jurisdictions other than Luxembourg and, accordingly, we express no opinion with regard to any systems of law other than the laws of the Grand-Duchy of Luxembourg. | |
2. | This legal opinion is strictly limited to the matters stated herein and may not be read as extending by implication to any matters not specifically referred to. Where an assumption is stated to be made in this legal opinion, we have not made an investigation with respect to the matters that are the subject of such assumption. | |
3. | We have, for the purpose of this legal opinion, solely examined the documents (final draft, originals, copies, translations or facsimile or electronic copies) that are listed in Schedule 1 hereto and referred to as the Examined Documents . | |
4. | We express no opinion herein with respect to any matter relating to any contractual obligations binding the Company and which may result from any contract, agreement, deed, undertaking or document or any matter in connection therewith of a contractual or legal nature, which is simply referred to in the Examined Documents. | |
5. | We have not relied upon any documentation other than the Examined Documents and, other than having examined the Examined Documents, we have not made any inquiries or investigations other than those stated in this legal opinion and such other inquiries and investigations as we have deemed relevant necessary to provide the opinions set forth herein. | |
6. | The declarations made in this legal opinion are stated and are only valid as at the date hereof. | |
7. | Other than inquiries and investigations stated in this legal opinion as we have deemed relevant and necessary to provide the opinions set forth herein, we are not responsible for (a) investigating and verifying the accuracy of the statements of fact and the reasonableness of (i) any statements of opinion, (ii) intention, and (iii) representations and warranties contained in the Examined Documents, (b) verifying that no material facts or contractual provisions have been omitted and (c) verifying whether the parties thereto (which for the avoidance of doubt, includes the Company) or any of them have complied, or will comply with them and with the terms and conditions of any obligations binding upon them. |
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8. | We shall have no duty to inform the Addressee of any changes in Luxembourg law, in the legal status of the Company or any other circumstance, occurring after the date of this legal opinion and which affect the matters addressed herein. | |
9. | In this legal opinion, unless otherwise specified, the terms law, Laws legislation and regulation and all other similar terms refer to all laws and regulations that are applicable within the territory of the Grand Duchy of Luxembourg. | |
10. | We do not give any opinion with respect to accountancy and to the compliance of the Company with Luxembourg tax law or any tax consequences of the execution and performance of the Transaction Document. |
III. Statements of legal opinion
On the basis of and subject to the assumptions and qualifications set out below and to any matters not disclosed to us, we are of the opinion that:
1. | The Company has full capacity, power and authority to enter into and execute the Transaction Document and to perform all relevant obligations under the Transaction Document. | |
2. | The Company has taken all necessary corporate action to authorize the execution, delivery and the performance of the Transaction Document. |
IV. Assumptions
In rendering this legal opinion, we have, without verification or other enquiry, assumed:
1. | The genuineness of all signatures, the authenticity, completeness and accuracy of all the Examined Documents as originals, and the conformity with original documents of all Examined Documents submitted to us as copies, electronic or facsimile copies hereof. | |
2. | That the persons purported to sign the Examined Documents have signed them. | |
3. | The legal capacity of the individuals, and the authority of the individuals (other than those acting on behalf of the Company) who have executed any of the Examined Documents (either on their behalf or as representative of another person or entity). | |
4. | That all the necessary corporate and other actions have been taken in order to allow each of the parties to the Transaction Document (other than the Company) to validly execute and deliver the Transaction Document and to perform its respective obligations thereunder. |
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5. | That there is no provision of the laws of any jurisdiction (other than the laws of Luxembourg) which would or might have any implication in relation to the opinions expressed herein. | |
6. | That there is no contractual or other prohibition (other than any arising under the laws of the Luxembourg) prohibiting the Company from entering into and performing its obligations under the Transaction Document; and that each of the parties to the Transaction Document (other than the Company) is not or will not be, by reason of the performance of the Transaction Document, in breach of any of its obligations under any previous contractual arrangements. | |
7. | That each of the parties to the Transaction Document (other than the Company) is a validly existing entity with the capacity and power and authority to enter into, execute, deliver and perform the Transaction Document and all obligations thereunder, in compliance with all requisite corporate action and documents governing such entity. | |
8. | That the Transaction Document contains all relevant information which is material for the purposes of this legal opinion and there is no other agreement, undertaking, representation or warranty (oral or written) and no other arrangement (whether legally binding or not) or any other matter which renders such information inaccurate, incomplete or misleading or which affects the opinions stated in this legal opinion. | |
9. | That the Transaction Document has been validly executed and delivered by all the parties thereto (other than the Company). | |
10. | That the manner of execution of the Transaction Document is valid and effective under the laws of the State of New York, and under any other law which may have been applicable according to the place of execution (other than Luxembourg law). | |
11. | That all contractual obligations created under or pursuant to the Transaction Document are executed and will be performed in good faith by the parties thereto (which, for the avoidance of doubt, includes the Company) and without committing any fraud or cheating. | |
12. | That none of the Examined Documents has been amended, supplemented, replaced or varied, nor has been revoked as at the date hereof. | |
13. | That any consents, approvals, registrations, licenses or other actions by or with any governmental authority required to be obtained or made by the parties in any such jurisdiction other than by the Company in Luxembourg in order to execute, deliver or perform such Examined Documents have been or will be obtained or made at the appropriate times. |
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14. | That since the effective date of the Certificate of Non-Inscription of a Judicial Decision, no petition has been filed with a Court for the opening of winding-up (in the meaning of voluntary or not liquidation and dissolution), bankruptcy, suspension of payments or similar proceedings against the Company; and the Company has not been granted a suspension of payments or declared bankrupt or been subject to any similar procedure (which includes, without however limitation, controlled management ( gestion contrôlée ), moratorium of payments ( sursis de paiement ) and composition procedures ( concordat préventif de faillite ) and since effective date of the Certificate of Non- Inscription of a Judicial Decision, the Company has not been subject to any of the above proceedings. | |
15. | That the information contained in the Extract, the Certificate of Non-Inscription of a Judicial Decision is complete, correct and accurate at the date hereof. | |
16. | That the obligations created under or pursuant to the Transaction Document constitute legal, valid, binding obligations of each of the parties enforceable against the respective parties thereto in accordance with their terms, under all applicable laws. | |
17. | That no proceedings have been instituted or injunction granted against the Company, which might restrain it from performing any of its obligations under the Transaction Document. | |
18. | That the Transaction Document is in the best interest of the Company, are not disproportionate to the Company financial means and are entered into at arm's length terms ( conditions commerciales normales ). |
V. Qualifications
This legal opinion is subject to the following qualifications:
1. | In this legal opinion, some Luxembourg legal concepts are expressed in English terms and not in their original French terms. Terms and expressions of law and of legal concepts as used in this legal opinion have the meaning attributed to them under the laws of Luxembourg and this legal opinion should be read and understood accordingly. The concepts concerned may not be identical to the concepts described by the same English terms as they exist under the laws of other jurisdictions. This legal opinion may, therefore, only be relied upon under the express condition that any issue of interpretation or liability arising hereunder will be governed by Luxembourg law and be brought before a Luxembourg Court. |
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2. | Translation into French or German language from all or from part of the Examined Documents may be required by a Luxembourg Court in any proceedings where the Examined Documents might be produced. | |
3. | Luxembourg Courts as well as a Luxembourg autorité constituée may require the prior registration of the Transaction Document with the Administration de lEnregistrement et des Domaines in Luxembourg, or any other document, if they were to be produced in a Luxembourg Court action or presented either directly or by way of reference to a Luxembourg autorité constituée , as the case may be, in which case one of the two following rates, i.e. a nominal registration duty of EUR 12 (twelve Euro) or an ad valorem duty of 0.24 (zero point twenty-four) per cent (calculated on the basis of the payment obligation contained in the document concerned), depending on the nature of the document submitted to registration, would become payable. | |
4. | For the purpose of statement of opinion 1 of section III., validly existing under the laws of Luxembourg does not mean a wealthy financial situation. | |
5. | The terms "ancillary", "necessary", "required", "useful", "desirable" or "appropriate" are terms which are not legally defined and may therefore be subject to the appreciation of a judge. | |
6. | The Extract and the Certificate of Non-Inscription of a Judicial Decision are not conclusively capable of revealing whether or not (i) winding-up (in the meaning of dissolution) has been made or a resolution passed for the dissolution of the Company or (ii) an order for the bankruptcy (faillite) or a judicial liquidation (liquidation judiciaire) has been made or (iii) if controlled management (gestion contrôlée), moratorium of payments (sursis de paiement) and composition procedures (concordat préventif de faillite) were granted to the Company. The registration with the Luxembourg Trade and Companies Register of an excerpt of one of the above procedures or judicial decisions, as the case may be, has to be done within one month from the date of the resolution or of the judicial decision, so that it is not possible to determine whether a corporate decision in relation to item (i) or a judicial decision in relation to items (ii) and (iii) has been taken but is not yet filed with the L Luxembourg Trade and Companies Register, or whether the excerpt of the corporate decision or of the judicial decision, as the case may be, has been properly filed with the Luxembourg Trade and Companies Register in accordance with the Luxembourg law on the trade and companies register and the annual accounts dated 19 December 2002 (as amended). |
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VI. Consent
This legal opinion is delivered to the Addressee in such capacity attributed to it under the Transaction Document and is only for its use. We hereby consent to the filing of this legal opinion as an Exhibit to a Current Report on Form 8-K ( pursuant to Section 13 OR 15(d) of the US securities exchange act of 1934) to be filed by Meritor.
VII. Applicable law and jurisdiction
As stated in paragraph II. 1, this legal opinion herein is exclusively based upon, governed by and shall be construed in accordance with the laws of Luxembourg effective on the date hereof.
Luxembourg Courts shall have exclusive jurisdiction to settle any dispute, proceeding, suit or action that may arise out of or be in connection with this legal opinion.
Yours faithfully,
/s/ Jean-François Findling |
Jean-François Findling |
Avocat à la Cour |
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SCHEDULE 1:
List of Examined Documents
1. | A pdf copy of coordinated articles of association of the Company dated 18 March 2005 (the Articles of Association ); | |
2. | A pdf copy of the resolutions adopted by the sole manager of the Company dated 28 May 2013 (the Resolutions ); | |
3. | A pdf extract of the Luxembourg Trade and Companies Register relating to the Company, dated 30 May 2013 (the Extract ); | |
4. | A pdf certificate of non-inscription of a judicial decision issued by the Luxembourg Trade and Companies Register on 30 May 2013 (the Certificate of Non-Inscription of a Judicial Decision ); and | |
5. | A pdf copy of an executed subsidiary guaranty, as of 31 May 2013, entered into by, among others, the Company as guarantor for the benefit of The Bank of New York Mellon Trust Company N.A. as Trustee and the Holders of Notes (the Transaction Document ). |
The documents listed in items 1. to 5. shall be referred to as the Examined Documents .
8
Exhibit 5.9
Dear Sirs
SUBSIDIARY GUARANTEE DATED 31 MAY 2013 BETWEEN, AMONG OTHERS ARVIN EUROPEAN HOLDINGS (UK) LIMITED (COMPANY NUMBER 03864157) AND ARVINMERITOR LIMITED (COMPANY NUMBER 01037897) (EACH A GUARANTOR AND TOGETHER THE GUARANTORS)
1 | INTRODUCTION |
We have acted as English legal advisers to the Guarantors in connection with the execution and delivery of the Guarantee (as defined below).
We understand that the Guarantee is being issued in connection with (a) the $275,000,000 aggregate principal amount of 6 3/4% notes (the Notes ) due 2021 are to be issued by Meritor, Inc. in an underwritten public offering of the Notes pursuant to an Underwriting Agreement dated 28 May, 2013 between Meritor, Inc., the Guarantors and such other subsidiary guarantors and the underwriters named therein and (b) other guarantees of the Notes by other direct and indirect subsidiaries of Meritor, Inc.
2
3
4
6 | TERMS OF THE OPINION | |
This letter is and the Opinion is given subject to the terms and conditions set out in paragraphs 6.1 to 6.5 below. | ||
6.1 | This letter is governed by the laws of England and Wales. | |
6.2 | The Opinion is given for the sole benefit of Meritor, Inc, and (other than disclosure under paragraph 6.4 below) may not be disclosed to, or relied upon by, any other person or be quoted in any public document or otherwise made public in any way without our prior written consent. | |
6.3 | The Opinion is given in connection with the entering into of the Guarantee by each of the Guarantors and you may not rely on it (or any part of it) for any other purpose. | |
6.4 | We hereby consent to the filing of this Opinion as an exhibit to a Current Report on Form 8-K to be filed by Meritor, Inc. | |
Yours faithfully |
/s/ Shoosmiths LLP |
SHOOSMITHS LLP |
5
Exhibit 5.10
LIONEL SAWYER & COLLINS
ATTORNEYS AT LAW 1700 BANK OF AMERICA PLAZA 300 SOUTH FOURTH STREET LAS VEGAS, NEVADA 89101
(
702) 383-8888
lsc@lionelsawyer.com www.lionelsawyer.com May 31, 2013 |
|||||||||
SAMUEL S. LIONEL
JON R.
COLLINS
RICHARD H. BRYAN
|
ALLEN J. WILT
LYNN S. FULSTONE RORY J. REID DAN C. McGUIRE JOHN E. DAWSON FRED D. PETE GIBSON, III CHARLES H. McCREA JR. GREGORY E. SMITH MALANI L. KOTCHKA LESLIE BRYAN HART CRAIG E. ETEM TODD E. KENNEDY MATTHEW E. WATSON JOHN M. NAYLOR WILLIAM J. McKEAN ELIZABETH BRICKFIELD GREGORY R. GEMIGNANI LINDA M. BULLEN LAURA J. THALACKER DOREEN SPEARS HARTWELL LAURA K. GRANIER MAXIMILIANO D. COUVILLIER III |
MICHAEL D. KNOX
ERIN FLYNN JENNIFER ROBERTS MEREDITH L. MARKWELL DOUGLAS A. CANNON RICHARD T. CUNNINGHAM MATTHEW R. POLICASTRO JENNIFER J. DiMARZIO PEARL L. GALLAGHER CHRISTINE D. SMITH SUSAN L. MYERS BRIAN S. PICK JENNIFER L. BRASTER LUCAS J. TUCKER CHRISTOPHER WALTHER KEVIN J. HEJMANOWSKI |
KETAN D. BHIRUD
LAUREN D. CALVERT-ARNOLD ROBERT W. HERNQUIST CHRISTIAN HALE TIMOTHY R. MULLINER COURTNEY MILLER O'MARA BRIAN H. SCHUSTERMAN MOHAMED A. IQBAL, JR. KELLY R. KICHLINE MARK J. GARDBERG ELIZABETH A. HIGH JAMES B. GIBSON GREG J. CARLSON ABIGAYLE F. DANG JING ZHAO JOHN TENNERT |
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OF COUNSEL
*ADMITTED IN CA ONLY
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WRITERS DIRECT DIAL
NUMBER
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Meritor, Inc.
2135
West Maple Road
Troy, MI 48084
Ladies and Gentlemen:
As special Nevada counsel for Meritor, Inc., a Nevada corporation (the Nevada Guarantor), we have been requested to render an opinion for that certain Underwriting Agreement dated May 28 , 2013 between Meritor, Inc., an Indiana corporation (the Company), and the Guarantors, on the one hand, and Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Merrill Lynch, Prince, Fenner & Smith Incorporated, RBS Securities Inc. and UBS Securities LLC for themselves and as Representatives of the other Underwriters named in Schedule A thereto (together with the Representative, the "Underwriters"), on the other hand (the "Agreement").
The Company is issuing and selling to the Underwriters an aggregate of $275,000,000 aggregate principal amount of its 6-3/4% Notes due 2021 (the "Notes"). The Notes are being issued pursuant to an indenture dated as of April 1, 1998, among the Company and The Bank of New York Mellon Trust Company, N.A., formerly known as The Bank of New York Trust Company, N.A. (as successor to BNY Midwest Trust Company as successor to The Chase Manhattan Bank), as Trustee, as supplemented by a First Supplemental Indenture dated as of July 7, 2000, a Second Supplemental Indenture dated as of July 6, 2004, a Third Supplemental Indenture dated as of June 23, 2006, a Fourth Supplemental Indenture dated as of March 3, 2010, a Fifth Supplemental Indenture, dated as of May 23, 2013 and a Sixth Supplemental Indenture (the Sixth Supplemental Indenture), dated as of May 31, 2013 (as so supplemented, the Indenture). All capitalized terms not defined herein shall have the same definitions as those ascribed to them in the Agreement or, if not defined therein, in the Indenture.
RENO OFFICE: 1100 BANK OF AMERICA PLAZA, 50 WEST LIBERTY STREET RENO, NEVADA 89501 (775) 788-8666 FAX (775) 788-8682
CARSON CITY OFFICE: 410 SOUTH CARSON STREET CARSON CITY, NEVADA 89701 (775) 851-2115 FAX (775) 841-2119
LIONEL SAWYER
&
COLLINS
ATTORNEYS AT LAW
ArvinMeritor, Inc.
May 31, 2013
Page 2
We have examined:
a. | Agreement; | ||
b. | the Indenture; | ||
c. | the Notes; | ||
d. | the form of the Guarantee to be signed by the Nevada Guarantor; | ||
e. | Articles of Incorporation for the Nevada Guarantor certified by the Nevada Secretary of State; | ||
f. | Good Standing Certificate for the Nevada Guarantor from the Nevada Secretary of State; | ||
g. | Resolutions of the Board of Directors of the Nevada Guarantor certified by an officer of the Company; and | ||
h. | Bylaws of the Nevada Guarantor certified by an officer of the Company. |
We have not reviewed, and express no opinion as to, any instrument or agreement referred to or incorporated by reference in the foregoing documents.
We have assumed the authenticity of all documents submitted to us as originals, the genuineness of all signatures, the legal capacity of natural persons and the conformity to originals of all copies of all documents submitted to us. We have relied upon the certificates of all public officials and corporate officers with respect to the accuracy of all matters contained therein.
Based on the foregoing and subject to the following we are of the opinion that the Nevada Guarantor has the corporate authority to execute and deliver its Guarantee.
We express no opinion as to the laws of any jurisdiction other than the State of Nevada.
LIONEL SAWYER
&
COLLINS
ATTORNEYS AT LAW
ArvinMeritor, Inc.
May 31, 2013
Page 3
We hereby consent to the filing of this opinion letter as an Exhibit to a Current Report on Form 8-K to be filed by the Company. In giving this consent, we do not thereby admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission thereunder.
Very truly yours, |
/s/ Lionel Sawyer & Collins |
Lionel Sawyer & Collins |