Hasbro, Inc. Underwriting Agreement
$350,000,000
Hasbro, Inc.
6.30% Notes due 0000
Xxxxxxxxxxxx Xxxxxxxxx
Xxx Xxxx, Xxx Xxxx
September 12, 0000
September 12, 0000
Xxxx xx Xxxxxxx Securities LLC
Citigroup Global Markets Inc.
As representatives of the several
underwriters named in Schedule I hereto
c/o Banc of America Securities LLC
0 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Citigroup Global Markets Inc.
As representatives of the several
underwriters named in Schedule I hereto
c/o Banc of America Securities LLC
0 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
Hasbro, Inc., a corporation organized under the laws of the State of Rhode Island (the
“Company”), proposes to sell to the several underwriters named in Schedule I hereto (the
“Underwriters”), for whom you (the “Representatives”) are acting as representatives, $350,000,000
aggregate principal amount of its 6.30% Notes due 2017 (the “Securities”), to be issued under an
indenture, dated as of March 15, 2000 (the “Base Indenture”), between the Company and The Bank of
Nova Scotia Trust Company of New York, as trustee (the “Trustee”), as supplemented by a
supplemental indenture, to be dated the Closing Date (as defined below) (the “Supplemental
Indenture,” and, together with the Base Indenture, the “Indenture”).
Any reference herein to the Registration Statement, the Base Prospectus, any Preliminary
Prospectus or the Final Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein pursuant to Item 12 of Form S-3, which were filed under the
Exchange Act on or before the Effective Date of the Registration Statement or the issue date of the
Base Prospectus, any Preliminary Prospectus or the Final Prospectus, as the case may be; and any
reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration
Statement, the Base Prospectus, any Preliminary Prospectus or the Final Prospectus shall be deemed
to refer to and include the filing of any document under the Exchange Act after the Effective Date
of the Registration Statement or the issue date of the Base Prospectus, any Preliminary Prospectus
or the Final Prospectus, as the case may be, deemed to be incorporated therein by reference.
Certain terms used herein are defined in Section 20 hereof.
1. Representations and Warranties. The Company represents and warrants to, and agrees
with, each Underwriter as set forth below in this Section 1.
(a) The Company meets the requirements for use of Form S-3 under the Act and has
prepared and filed with the Commission an automatic shelf registration statement, as defined
in Rule 405 on Form S-3 (File No. 333-145947), including a related
Base Prospectus, for registration under the Act of the offering and sale of the
Securities. Such Registration Statement, including any amendments thereto filed prior to
the Execution Time, became effective upon filing and no notice of objection of the
Commission to the use of such registration statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Act has been received by the Company. No order
suspending the effectiveness of the Registration Statement has been issued by the Commission
and no proceeding for that purpose or pursuant to Section 8A of the Act against the Company
or related to the offering has been initiated or, to the Company’s knowledge, threatened by
the Commission. The Company may have filed with the Commission, as part of an amendment to
the Registration Statement or pursuant to Rule 424(b), one or more preliminary prospectus
supplements relating to the Securities, each of which has previously been furnished to you.
The Company will file with the Commission a final prospectus supplement relating to the
Securities in accordance with Rule 424(b). As filed, such final prospectus supplement shall
contain all information required by the Act and the rules thereunder, and shall be in all
substantive respects in the form furnished to you prior to the Execution Time or, to the
extent not completed at the Execution Time, shall contain only such specific additional
information and other changes (beyond that contained in the Base Prospectus and any
Preliminary Prospectus) as the Company has advised you, prior to the Execution Time, will be
included or made therein. The Registration Statement, at the Execution Time, meets the
requirements set forth in Rule 415(a)(1)(x).
(b) On each Effective Date, the Registration Statement did, and when the Final
Prospectus is first filed in accordance with Rule 424(b) and on the Closing Date (as defined
herein), the Final Prospectus (and any supplement thereto) will, comply in all material
respects with the applicable requirements of the Act, the Exchange Act and the Trust
Indenture Act and the respective rules thereunder; on each Effective Date and at the
Execution Time, the Registration Statement did not and will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated therein or
necessary in order to make the statements therein not misleading; on the Effective Date and
on the Closing Date the Indenture did or will comply in all material respects with the
applicable requirements of the Trust Indenture Act and the rules thereunder; and on the date
of any filing pursuant to Rule 424(b) and on the Closing Date, the Final Prospectus
(together with any supplement thereto) will not include any untrue statement of a material
fact or omit to state a material fact necessary in order to make the statements therein, in
the light of the circumstances under which they were made, not misleading; provided,
however, that the Company makes no representations or warranties as to (i) that part
of the Registration Statement which shall constitute the Statement of Eligibility (Form T-1)
under the Trust Indenture Act of the Trustee or (ii) the information contained in or omitted
from the Registration Statement or the Final Prospectus (or any supplement thereto) in
reliance upon and in conformity with information furnished in writing to the Company by or
on behalf of any Underwriter through the Representatives specifically for inclusion in the
Registration Statement or the Final Prospectus (or any supplement thereto), it being
understood and agreed that the only such information furnished by or on behalf of any
Underwriter consists of the information described as such in Section 8 hereof.
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(c) (i) The Disclosure Package and (ii) each electronic road show, when taken together
as a whole with the Disclosure Package, did not, as of the Execution Time contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading. The preceding sentence does not apply to statements in or omissions from the
Disclosure Package based upon and in conformity with written information furnished to the
Company by any Underwriter through the Representatives specifically for use therein, it
being understood and agreed that the only such information furnished by or on behalf of any
Underwriter consists of the information described as such in Section 8 hereof.
(d) (i) At the time of filing the Registration Statement, (ii) at the time of the most
recent amendment thereto for the purposes of complying with Section 10(a)(3) of the Act
(whether such amendment was by post-effective amendment, incorporated report filed pursuant
to Sections 13 or 15(d) of the Exchange Act or form of prospectus), (iii) at the time the
Company or any person acting on its behalf (within the meaning, for this clause only, of
Rule 163(c)) made any offer relating to the Securities in reliance on the exemption in Rule
163, and (iv) at the Execution Time (with such date being used as the determination date for
purposes of this clause (iv)), the Company was or is (as the case may be) a “well-known
seasoned issuer” as defined in Rule 405. The Company agrees to pay the fees required by the
Commission relating to the Securities within the time required by Rule 456(b)(1) without
regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r).
(e) (i) At the earliest time after the filing of the Registration Statement that the
Company or another offering participant made a bona fide offer (within the meaning of Rule
164(h)(2)) of the Securities and (ii) as of the Execution Time (with such date being used as
the determination date for purposes of this clause (ii)), the Company was not and is not an
Ineligible Issuer (as defined in Rule 405), without taking account of any determination by
the Commission pursuant to Rule 405 that it is not necessary that the Company be considered
an Ineligible Issuer.
(f) Each Issuer Free Writing Prospectus and the final term sheet prepared and filed
pursuant to Section 5(b) hereto does not include any information that conflicts with the
information contained in the Registration Statement, including any document incorporated
therein by reference and any prospectus supplement deemed to be a part thereof that has not
been superseded or modified. The foregoing sentence does not apply to statements in or
omissions from any Issuer Free Writing Prospectus based upon and in conformity with written
information furnished to the Company by any Underwriter through the Representatives
specifically for use therein, it being understood and agreed that the only such information
furnished by or on behalf of any Underwriter consists of the information described as such
in Section 8 hereof.
(g) The documents incorporated by reference in the Disclosure Package and the Final
Prospectus, when they became effective or were filed with the Commission, as the case may
be, conformed in all material respects to the requirements of the Act or the Exchange Act
and the rules and regulations of the Commission thereunder, and none of
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such documents contained an untrue statement of a material fact or omitted to state a
material fact required to be stated therein or necessary to make the statements therein not
misleading; and any further documents so filed and incorporated by reference in the
Registration Statement and the Final Prospectus, when such documents become effective or are
filed with the Commission, as the case may be, will conform in all material respects to the
requirements of the Act or the Exchange Act, as applicable, and the rules and regulations of
the Commission thereunder then in effect and will not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
(h) The statements in the Preliminary Prospectus and the Final Prospectus under the
heading “Material United States Federal Income Tax Consequences” insofar as such statements
summarize legal matters, agreements, documents or proceedings discussed therein, are
accurate and fair summaries of such legal matters, agreements, documents or proceedings.
(i) Since the date as of which information is given in the Disclosure Package and the
Final Prospectus, there has not been (i) any material change in the capital stock (other
than changes pursuant to open market or repurchase plans or employee benefit plans or
changes resulting from the conversion or redemption of outstanding shares of preferred stock
or convertible debt) or long-term debt of the Company and its subsidiaries considered as a
whole, or (ii) any material adverse change, or any development known to the Company that is
reasonably likely to result in a material adverse change, in or affecting the business,
financial condition or results of operations of the Company and its subsidiaries considered
as a whole, otherwise than as set forth or contemplated in the Disclosure Package and the
Final Prospectus.
(j) The Company has been duly organized and is validly existing as a corporation in
good standing under the laws of the State of Rhode Island, with power and authority to own,
lease and operate its properties and conduct its business as described in the Disclosure
Package and the Final Prospectus; the Company is duly qualified as a foreign corporation to
transact business and is in good standing in each other jurisdiction in which such
qualification is required, whether by reason of the ownership or leasing of property or the
conduct of business, except where the failure so to qualify or to be in good standing would
not have a material adverse effect on the business, financial condition or results of
operations of the Company and its subsidiaries considered as a whole (a “Material Adverse
Effect”); each of the Company’s subsidiaries that qualifies as a “significant subsidiary”
under Section 1-02(w) of Regulation S-X (each a “Significant Subsidiary” and, collectively,
the “Significant Subsidiaries”) has been duly organized and is validly existing as a
corporation in good standing under the laws of the jurisdiction of its incorporation, with
power and authority to own, lease and operate its properties and conduct its business as
described in the Disclosure Package and the Final Prospectus; each Significant Subsidiary is
duly qualified as a foreign corporation to transact business and is in good standing in each
jurisdiction in which such qualification is required, whether by reason of the ownership or
leasing of property or the conduct of business, except where the failure so to qualify or to
be in good standing would not result in a
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Material Adverse Effect; except as otherwise disclosed in the Disclosure Package and
the Final Prospectus, all of the issued and outstanding capital stock of each Significant
Subsidiary has been duly authorized and validly issued, is fully paid and non-assessable and
(except for shares necessary to qualify directors or to maintain any minimum number of
shareholders required by law) is owned by the Company, directly or through subsidiaries,
free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or
equity.
(k) The Company has outstanding capital stock as set forth in the Disclosure Package
and the Final Prospectus (except for subsequent issuances pursuant to employee benefit plans
or pursuant to the exercise of convertible securities or options and except for repurchases
in connection with open market or repurchase plans or redemptions of shares of preferred
stock), and all of the issued shares of capital stock of the Company have been duly and
validly authorized and issued and are fully paid and non-assessable.
(l) This Agreement has been duly authorized, executed and delivered by the Company.
(m) The Securities have been duly authorized, and, when issued and delivered pursuant
to this Agreement, the Securities will have been duly executed, issued and delivered and
(assuming the due authentication thereof by the Trustee) will constitute valid and legally
binding obligations of the Company, will be entitled to the benefits provided by the
Indenture and will be enforceable in accordance with their terms except as the same may be
limited by bankruptcy, insolvency, reorganization or other laws of general applicability
relating to or affecting the enforcement of creditors’ rights and to general equity
principles.
(n) The Base Indenture has been duly authorized, executed and delivered by the Company
and (assuming due authorization, execution and delivery by the Trustee) constitutes a valid
and legally binding agreement of the Company, enforceable in accordance with its terms
except as the same may be limited by bankruptcy, insolvency, reorganization or other laws of
general applicability relating to or affecting the enforcement of creditors’ rights and to
general equity principles; the Base Indenture has been duly qualified under the Trust
Indenture Act.
(o) The Supplemental Indenture has been duly authorized by the Company and (assuming
due authorization, execution and delivery by the Trustee) at the Closing Date, will have
been duly executed and delivered by the Company and will constitute a valid and legally
binding agreement of the Company, enforceable in accordance with its terms except as the
same may be limited by bankruptcy, insolvency, reorganization or other laws of general
applicability relating to or affecting the enforcement of creditors’ rights and to general
equity principles;
(p) The Indenture conforms, and the Securities will conform, in all material respects
to the descriptions thereof contained in the Disclosure Package and the Final Prospectus.
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(q) The issuance and sale of the Securities and the compliance by the Company with all
of the provisions of the Securities, the Indenture and this Agreement and the consummation
of the transactions herein and therein contemplated, will not result in a breach or
violation of any of the terms or provisions of, or constitute a default under, or result in
the creation or imposition of any lien, charge or encumbrance upon any of the property or
assets of the Company or any of its Significant Subsidiaries pursuant to the terms of, any
material indenture, mortgage, deed of trust, loan agreement or other agreement or instrument
to which the Company or any of its Significant Subsidiaries is a party or by which the
Company or any of its Significant Subsidiaries is bound or to which any material property or
assets of the Company or any of its Significant Subsidiaries is subject; nor will such
action result in any violation of the provisions of the Articles of Incorporation, as
amended, or the By-Laws of the Company; nor will such action result in a violation of any
statute or any order, rule or regulation of any court or governmental agency or body in the
United States having jurisdiction over the Company or any of its Significant Subsidiaries or
any of their properties.
(r) No consent, approval, authorization, order, registration or qualification of or
with any court or any such regulatory authority or other governmental body in the United
States having jurisdiction over the Company is required for the issuance and sale of the
Securities or the consummation by the Company of the other transactions contemplated by this
Agreement or the Indenture, except such consents, approvals, authorizations, orders,
registrations or qualifications as may be required by the securities or Blue Sky laws of the
various states, the Act, the Trust Indenture Act and the securities laws of any jurisdiction
outside the United States in which the Securities are offered.
(s) No action, suit or proceeding by or before any court or governmental agency,
authority or body or any arbitrator involving the Company or any of its subsidiaries or its
or their property is pending or, to the best knowledge of the Company, threatened that (i)
could reasonably be expected to have a material adverse effect on the performance of this
Agreement or the consummation of any of the transactions contemplated hereby or (ii) could
reasonably be expected to have a Material Adverse Effect.
(t) Neither the Company nor any subsidiary is in violation or default of (i) any
provision of its charter or bylaws, (ii) the terms of any indenture, contract, lease,
mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation,
condition, covenant or instrument to which it is a party or bound or to which its property
is subject, except for such violations or defaults as would not, singly or in the aggregate,
have a Material Adverse Effect on the Company; or (iii) any statute, law, rule, regulation,
judgment, order or decree applicable to the Company or any of its subsidiaries of any court,
regulatory body, administrative agency, governmental body, arbitrator or other authority
having jurisdiction over the Company or any of its subsidiaries or any of their respective
properties, as applicable, except for such violations as would not, singly or in the
aggregate, have a Material Adverse Effect on the Company.
(u) The accountants who have certified certain financial statements of the Company and
its consolidated subsidiaries and delivered their report with respect to the
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audited consolidated financial statements and schedules included in the Disclosure
Package and the Final Prospectus, are independent registered public accountants with respect
to the Company within the meaning of the Act and the applicable published rules and
regulations thereunder.
(v) The consolidated historical financial statements and schedules of the Company and
its consolidated subsidiaries included in the Preliminary Prospectus, the Final Prospectus
and the Registration Statement present fairly in all material respects the financial
condition, results of operations and cash flows of the Company as of the dates and for the
periods indicated, comply as to form in all material respects with the applicable accounting
requirements of the Act and have been prepared in conformity with generally accepted
accounting principles in the United States applied on a consistent basis throughout the
periods involved (except as otherwise noted therein). The summary financial data set forth
under the caption “Prospectus Supplement Summary — Summary Financial Information” in the
Preliminary Prospectus and the Final Prospectus fairly present, on the basis stated in the
Preliminary Prospectus and the Final Prospectus, the information included therein.
(w) The Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof as described in the Disclosure
Package and the Final Prospectus, will not be an “investment company” as defined in the
Investment Company Act of 1940, as amended.
(x) No labor problem or dispute with the employees of the Company or any of its
subsidiaries exists or is threatened or imminent, and the Company is not aware of any
existing or imminent labor disturbance by the employees of any of its or its subsidiaries’
principal suppliers, contractors or customers, that could have a Material Adverse Effect.
(y) The Company maintains a system of internal accounting control over financial
reporting with respect to itself and its consolidated subsidiaries sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with management’s
general or specific authorizations; (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally accepted accounting
principles in the United States and to maintain asset accountability; (iii) access to assets
is permitted only in accordance with management’s general or specific authorization; and
(iv) the recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any differences. The
Company’s internal control over financial reporting was effective as of December 31, 2006
and the Company is not aware of any material weakness in its internal control over financial
reporting.
(z) The Company maintains “disclosure controls and procedures” (as such term is defined
in Rule 13a-15(e) under the Exchange Act); based on the evaluation of these disclosure
controls and procedures, the Company’s Chief Executive Officer and Chief Financial Officer
concluded that the Company’s disclosure controls and procedures were effective as of July 1,
2007.
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(aa) The Company has not taken, directly or indirectly, any action designed to or that
would constitute or that might reasonably be expected to cause or result in, under the
Exchange Act or otherwise, stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Securities.
(bb) Except as would not otherwise reasonably be expected to have a Material Adverse
Effect and except as otherwise set forth in or contemplated in the Disclosure Package and
the Final Prospectus (exclusive of any amendment or supplement thereto), the Company and its
subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and
local laws and regulations relating to the protection of human health and safety, the
environment or hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”), (ii) have received all permits, licenses or other approvals required
of them under applicable Environmental Laws to conduct their respective businesses, (iii)
are in compliance with all terms and conditions of any such permit, license or approval, and
(iv) are not subject to any claims or liabilities arising out of the release of or exposure
to wastes, pollutants or contaminants and are not aware of any facts or circumstances which
would form a reasonable basis for any such claim.
(cc) In the ordinary course of its business, the Company periodically reviews the
effect of Environmental Laws on the business, operations and properties of the Company and
its subsidiaries, in the course of which it identifies and evaluates associated costs and
liabilities (including, without limitation, any capital or operating expenditures required
for clean-up, closure of properties or compliance with Environmental Laws, or any permit,
license or approval, any related constraints on operating activities and any potential
liabilities to third parties). To the Company’s knowledge, no such associated costs and
liabilities would, singly or in the aggregate, have a Material Adverse Effect, except as set
forth in or contemplated in the Disclosure Package and the Final Prospectus (exclusive of
any amendment or supplement thereto).
(dd) Except as set forth in or contemplated in the Disclosure Package and the Final
Prospectus (exclusive of any amendment or supplement thereto), to the Company’s knowledge,
the Company or its subsidiaries own or possess the right to use all patents, trademarks,
service marks, trade names, copyrights, patentable inventions, trade secrets and know-how
used by the Company or its subsidiaries in, and material to, the conduct of the Company’s
and its subsidiaries’ business taken as a whole as now conducted or as proposed in the
Disclosure Package and the Final Prospectus to be conducted (collectively, the “Intellectual
Property”). Except as would not otherwise reasonably be expected to have a Material Adverse
Effect and except as set forth in or contemplated in the Disclosure Package and the Final
Prospectus (exclusive of any amendment or supplement thereto), there are no legal or
governmental actions, suits, proceedings or claims pending or, to the Company’s knowledge,
threatened, against the Company (i) challenging the Company’s rights in or to any
Intellectual Property, (ii) challenging the validity or scope of any Intellectual Property
owned by the Company, or (iii) alleging that the operation of the Company’s business as now
conducted infringes or otherwise violates any patent, trademark, copyright, trade secret or
other proprietary rights of a third party.
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(ee) There is and has been no failure on the part of the Company and any of the
Company’s directors or officers, in their capacities as such, to comply with any provision
of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated in connection
therewith (the “Xxxxxxxx-Xxxxx Act”), including Section 402 relating to loans and Sections
302 and 906 relating to certifications.
(ff) Neither the Company nor any of its subsidiaries nor, to the knowledge of the
Company, any director, officer, agent, employee or affiliate of the Company or any of its
subsidiaries is aware of or has taken any action, directly or indirectly, that would
reasonably be expected to result in a material violation by such persons of the Foreign
Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the
“FCPA”), including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA; and the
Company, its subsidiaries and to the knowledge of the Company, its affiliates conduct their
businesses in compliance in all material respects with the FCPA and have instituted and
maintain policies and procedures designed to ensure, and which are reasonably expected to
continue to ensure, continued compliance therewith.
(gg) Except as disclosed in the Registration Statement, the Disclosure Package and the
Final Prospectus, the Company (i) does not have any material lending or other relationship
with any bank or lending affiliate of any of the Underwriters and (ii) does not intend to
use any of the proceeds from the sale of the Securities hereunder to repay any outstanding
debt owed to any affiliate of any of the Underwriters.
Any certificate signed by any officer of the Company and delivered to the Representatives or
counsel for the Underwriters in connection with the offering of the Securities shall be deemed a
representation and warranty by the Company, as to matters covered thereby, to each Underwriter.
2. Purchase and Sale. Subject to the terms and conditions and in reliance upon the
representations and warranties herein set forth, the Company agrees to sell to each Underwriter,
and each Underwriter agrees, severally and not jointly, to purchase from the Company, at 99.021% of
the principal amount thereof, the principal amount of the Securities set forth opposite such
Underwriter’s name in Schedule I hereto.
3. Delivery and Payment. Delivery of and payment for the Securities shall be made at
9:00 a.m., New York City time, on September 17, 2007 or at such time on such later date not more
than three Business Days after the foregoing date as the Representatives shall designate, which
date and time may be postponed by agreement between the Representatives and the Company or as
provided in Section 9 hereof (such date and time of delivery and payment for the Securities being
herein called the “Closing Date”). Delivery of the Securities shall be made to the Representatives
for the respective accounts of the several Underwriters against payment by the several Underwriters
through the Representatives of the purchase price thereof to or upon
the
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order of the Company by wire transfer payable in same-day funds to an account specified by the
Company. Delivery of the Securities shall be made through the facilities of The Depository Trust
Company unless the Representatives shall otherwise instruct. Certificates for the Securities shall
be registered in such names and in such denominations as the Representatives may request not less
than two Business Days in advance of the Closing Date.
The Company agrees to have the Securities available for inspection, checking and packaging by
the Representative in New York, New York, not later than 1:00 PM on the Business Day prior to the
Closing Date.
4. Offering by Underwriters. It is understood that the several Underwriters propose
to offer the Securities for sale to the public as set forth in the Disclosure Package.
5. Agreements. The Company agrees with the several Underwriters that:
(a) Prior to the termination of the offering of the Securities, the Company will not
file any amendment of the Registration Statement or supplement (including the Final
Prospectus or any Preliminary Prospectus) to the Base Prospectus unless the Company has
furnished you a copy for your review prior to filing and will not file any such proposed
amendment or supplement to which you reasonably object promptly after receipt of such
amendment or supplement. The Company will cause the Final Prospectus, properly completed,
and any supplement thereto to be filed in a form approved by the Representatives with the
Commission pursuant to the applicable paragraph of Rule 424(b) within the time period
prescribed and will provide evidence satisfactory to the Representatives of such timely
filing. The Company will promptly advise the Representatives (i) when the Final Prospectus,
and any supplement thereto, shall have been filed (if required) with the Commission pursuant
to Rule 424(b), (ii) when, prior to termination of the offering of the Securities, any
amendment to the Registration Statement shall have been filed or become effective, (iii) of
any request by the Commission or its staff for any amendment of the Registration Statement
or for any supplement to the Final Prospectus or for any additional information, (iv) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of any notice objecting to its use or the institution or
threatening of any proceeding for that purpose or pursuant to Section 8A of the Act, (v) of
the receipt by the Company of any notification with respect to the suspension of the
qualification of the Securities for sale in any jurisdiction or the institution or
threatening of any proceeding for such purpose and (vi) of the receipt by the Company of any
notice of objection of the Commission to the use of the Registration Statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act. The Company will
use its reasonable efforts to prevent the issuance of any such stop order or the occurrence
of any such suspension or objection to the use of the Registration Statement and, upon such
issuance, occurrence or notice of objection, to obtain as soon as possible the withdrawal of
such stop order or relief from such occurrence or objection, including, if necessary, by
filing an amendment to the Registration Statement or a new registration statement and using
its best efforts to have such amendment or new registration statement declared effective as
soon as practicable.
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(b) It will prepare a final term sheet, containing solely a description of final terms
of the Securities and the offering thereof, in the form approved by you and attached as
Schedule III hereto and to file such term sheet pursuant to Rule 433(d) within the time
required by such Rule.
(c) If, at any time prior to the filing of the Final Prospectus pursuant to Rule
424(b), any event occurs as a result of which the Disclosure Package would include any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they are being made, not
misleading, the Company will (i) notify promptly the Representatives so that any use of the
Disclosure Package may cease until it is amended or supplemented; (ii) amend or supplement
the Disclosure Package to correct such statement or omission; and (iii) supply any amendment
or supplement to you in such quantities as you may reasonably request.
(d) If, at any time when a prospectus relating to the Securities is required to be
delivered under the Act (including in circumstances where such requirement may be satisfied
pursuant to Rule 172), any event occurs as a result of which the Final Prospectus as then
supplemented would include any untrue statement of a material fact or omit to state any
material fact necessary to make the statements therein in the light of the circumstances
under which they were made at such time not misleading, or if it shall be necessary to amend
the Registration Statement, file a new registration statement or supplement the Final
Prospectus to comply with the Act or the Exchange Act or the respective rules thereunder,
including in connection with use or delivery of the Final Prospectus, the Company promptly
will (i) notify the Representatives of any such event, (ii) prepare and file with the
Commission, subject to the second sentence of paragraph (a) of this Section 5, an amendment
or supplement or new registration statement which will correct such statement or omission or
effect such compliance, (iii) use its reasonable efforts to have any amendment to the
Registration Statement or new registration statement declared effective as soon as
practicable in order to avoid any disruption in use of the Final Prospectus and (iv) supply
any supplemented Final Prospectus to you in such quantities as you may reasonably request.
(e) As soon as practicable, the Company will make generally available to its security
holders and to the Representatives an earning statement or statements of the Company and its
subsidiaries which will satisfy the provisions of Section 11(a) of the Act and Rule 158.
(f) The Company will furnish to the Representatives and counsel for the Underwriters,
without charge, signed copies of the Registration Statement (including exhibits thereto) and
to each other Underwriter a copy of the Registration Statement (without exhibits thereto)
and, so long as delivery of a prospectus by an Underwriter or dealer may be required by the
Act (including in circumstances where such requirement may be satisfied pursuant to Rule
172), as many copies of each Preliminary Prospectus, the Final Prospectus and each Issuer
Free Writing Prospectus and any supplement thereto as the Representatives may reasonably
request. The Company will pay the expenses of printing or other production of all documents
relating to the offering.
11
(g) The Company will arrange, if necessary, for the qualification of the Securities for
sale under the laws of such jurisdictions as the Representatives may designate and will
maintain such qualifications in effect so long as required for the distribution of the
Securities; provided that in no event shall the Company be obligated to qualify to do
business in any jurisdiction where it is not now so qualified or to take any action that
would subject it to service of process in suits, other than those arising out of the
offering or sale of the Securities, in any jurisdiction where it is not now so subject.
(h) The Company agrees that, unless it has or shall have obtained the prior written
consent of the Representatives, and each Underwriter, severally and not jointly, agrees with
the Company that, unless it has or shall have obtained, as the case may be, the prior
written consent of the Company, it has not made and will not make any offer relating to the
Securities that would constitute an Issuer Free Writing Prospectus or that would otherwise
constitute a “free writing prospectus” (as defined in Rule 405) required to be filed by the
Company or the Underwriters with the Commission or retained by the Company or the
Underwriters under Rule 433, other than a free writing prospectus containing the information
contained in the final term sheet prepared and filed pursuant to Section 5(b) hereto;
provided that the prior written consent of the parties hereto shall be deemed to have been
given in respect of the Free Writing Prospectuses included in Schedule III hereto and any
electronic road show. Any such free writing prospectus consented to by the Representatives
or the Company is hereinafter referred to as a “Permitted Free Writing Prospectus.” The
Company agrees that (x) it has treated and will treat, as the case may be, each Permitted
Free Writing Prospectus as an Issuer Free Writing Prospectus and (y) it has complied and
will comply, as the case may be, with the requirements of Rules 164 and 433 applicable to
any Permitted Free Writing Prospectus, including in respect of timely filing with the
Commission, legending and, pursuant to reasonable procedures developed in good faith, record
keeping.
(i) The Company will not, without the prior written consent of the Representatives,
offer, sell, contract to sell, pledge, or otherwise dispose of (or enter into any
transaction which is designed to, or might reasonably be expected to, result in the
disposition (whether by actual disposition or effective economic disposition due to cash
settlement or otherwise) by the Company or any affiliate of the Company or any person in
privity with the Company or any affiliate of the Company), directly or indirectly, including
the filing (or participation in the filing) of a registration statement with the Commission
in respect of, or establish or increase a put equivalent position or liquidate or decrease a
call equivalent position within the meaning of Section 16 of the Exchange Act, on any debt
securities issued or guaranteed by the Company (other than the Securities) or publicly
announce an intention to effect any such transaction, until the Business Day following the
Closing Date.
(j) The Company will not take, directly or indirectly, any action designed to or that
would constitute or that might reasonably be expected to cause or result in, under the
Exchange Act or otherwise, stabilization or manipulation of the price of any security of the
Company to facilitate the sale or resale of the Securities.
12
(k) The Company agrees to pay the costs and expenses relating to the following matters:
(i) the preparation, printing or reproduction and filing with the Commission of the
Registration Statement (including financial statements and exhibits thereto), each
Preliminary Prospectus, the Final Prospectus and each Issuer Free Writing Prospectus, and
each amendment or supplement to any of them; (ii) the printing (or reproduction) and
delivery (including postage, air freight charges and charges for counting and packaging) of
such copies of the Registration Statement, each Preliminary Prospectus, the Final Prospectus
and each Issuer Free Writing Prospectus, and all amendments or supplements to any of them,
as may, in each case, be reasonably requested for use in connection with the offering and
sale of the Securities; (iii) the preparation, printing, authentication, issuance and
delivery of certificates for the Securities, including any stamp or transfer taxes in
connection with the original issuance and sale of the Securities; (iv) the printing (or
reproduction) and delivery of this Agreement, any blue sky memorandum and all other
agreements or documents printed (or reproduced) and delivered in connection with the
offering of the Securities; (v) any registration or qualification of the Securities for
offer and sale under the securities or blue sky laws of the several states (including filing
fees and the reasonable fees and expenses of counsel for the Underwriters relating to such
registration and qualification); (vi) any filings required to be made with the NASD, Inc.
(including filing fees and the reasonable fees and expenses of counsel for the Underwriters
relating to such filings); (vii) the transportation and other expenses incurred by or on
behalf of Company representatives in connection with presentations to prospective purchasers
of the Securities; (viii) the fees and expenses of the Company’s accountants and the fees
and expenses of counsel (including local and special counsel) for the Company; (ix) the fees
and expenses of the Trustee and the fees and expenses of its counsel; (x) any fees payable
in connection with the rating of the Securities with the ratings agencies and (xi) all other
costs and expenses incident to the performance by the Company of its obligations hereunder.
6. Conditions to the Obligations of the Underwriters. The obligations of the
Underwriters to purchase the Securities shall be subject to the accuracy of the representations and
warranties on the part of the Company contained herein as of the Execution Time and the Closing
Date, to the accuracy of the statements of the Company made in any certificates pursuant to the
provisions hereof, to the performance by the Company of its obligations hereunder and to the
following additional conditions:
(a) The Final Prospectus, and any supplement thereto, have been filed in the manner and
within the time period required by Rule 424(b); the final term sheet contemplated by Section
5(b) hereto, and any other material required to be filed by the Company pursuant to Rule
433(d) under the Act, shall have been filed with the Commission within the applicable time
periods prescribed for such filings by Rule 433; and no stop order suspending the
effectiveness of the Registration Statement or any notice objecting to its use shall have
been issued and no proceedings for that purpose or pursuant to Rule 401(g)(2) or pursuant to
Section 8A under the Act shall have been instituted or threatened.
(b) The Company shall have requested and caused Ropes & Xxxx LLP, counsel for the
Company, to have furnished to the Representatives their opinion, dated
13
the Closing Date and addressed to the Representatives in the form attached hereto as
Exhibit A.
(c) The Representatives shall have received from Xxxxx Xxxxx LLP, counsel for the
Underwriters, such opinion or opinions, dated the Closing Date and addressed to the
Representatives, with respect to the issuance and sale of the Securities, the Indenture, the
Registration Statement, the Disclosure Package, the Final Prospectus (together with any
supplement thereto) and other related matters as the Representatives may reasonably require,
and the Company shall have furnished to such counsel such documents as they request for the
purpose of enabling them to pass upon such matters.
(d) The Company shall have furnished to the Representatives a certificate of the
Company, signed by the Chief Executive Officer or the President and the principal financial
or accounting officer of the Company, dated the Closing Date, to the effect that the signers
of such certificate have carefully examined the Registration Statement, the Disclosure
Package, the Final Prospectus and any supplements or amendments thereto, as well as each
electronic road show used in connection with the offering of the Securities, and this
Agreement and that:
(i) the representations and warranties of the Company in this Agreement are
true and correct on and as of the Closing Date with the same effect as if made on
the Closing Date and the Company has complied with all the agreements and satisfied
all the conditions on its part to be performed or satisfied at or prior to the
Closing Date;
(ii) no stop order suspending the effectiveness of the Registration Statement
or any notice objecting to its use has been issued and no proceedings for that
purpose have been instituted or, to the Company’s knowledge, threatened; and
(iii) since the date of the most recent financial statements included in the
Disclosure Package and the Final Prospectus (exclusive of any supplement thereto),
there has been no Material Adverse Effect, except as set forth in or contemplated in
the Disclosure Package and the Final Prospectus (exclusive of any supplement
thereto).
(e) At the date hereof and at the Closing Date, the Company shall have requested and
caused KPMG LLP to furnish to the Underwriters letters, dated respectively as of the date
hereof and as of the Closing Date, in form and substance satisfactory to the Underwriters of
the type described in AICPA Statement on Auditing Standards No. 72.
(f) Subsequent to the Execution Time or, if earlier, the dates as of which information
is given in the Registration Statement (exclusive of any amendment thereof) and the Final
Prospectus (exclusive of any amendment or supplement thereto), there shall not have been (i)
any change or decrease specified in the letter or letters referred to in paragraph (e) of
this Section 6 or (ii) any change, or any development reasonably likely
14
to result in a change, in or affecting the condition (financial or otherwise),
earnings, business or properties of the Company and its subsidiaries taken as a whole,
whether or not arising from transactions in the ordinary course of business, except as set
forth in or contemplated in the Disclosure Package and the Final Prospectus (exclusive of
any amendment or supplement thereto) the effect of which, in any case referred to in clause
(i) or (ii) above, is, in the sole judgment of the Representatives, so material and adverse
as to make it impractical or inadvisable to proceed with the offering or delivery of the
Securities as contemplated by the Registration Statement (exclusive of any amendment
thereof), the Disclosure Package and the Final Prospectus (exclusive of any amendment or
supplement thereto).
(g) Subsequent to the Execution Time, there shall not have been any decrease in the
rating of any of the Company’s debt securities by any “nationally recognized statistical
rating organization” (as defined for purposes of Rule 436(g) under the Act) or any notice
given of any intended or potential decrease in any such rating or of a possible change in
any such rating that does not indicate the direction of the possible change.
(h) Prior to the Closing Date, the Company shall have furnished to the Representatives
such further information, certificates and documents as the Representatives may reasonably
request.
If any of the conditions specified in this Section 6 shall not have been fulfilled when and as
provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere
in this Agreement shall not be reasonably satisfactory in form and substance to the Representatives
and counsel for the Underwriters, this Agreement and all obligations of the Underwriters hereunder
may be canceled at, or at any time prior to, the Closing Date by the Representatives. Notice of
such cancellation shall be given to the Company in writing or by telephone or facsimile confirmed
in writing.
The documents required to be delivered by this Section 6 shall be delivered at the office of
Xxxxx Xxxxx LLP, counsel for the Underwriters, at 0000 Xxxxxxxx, Xxx Xxxx, Xxx Xxxx 00000, on the
Closing Date.
7. Reimbursement of Underwriters’ Expenses. If the sale of the Securities provided
for herein is not consummated because any condition to the obligations of the Underwriters set
forth in Section 6 hereof is not satisfied, because of any termination pursuant to Section 10
hereof or because of any refusal, inability or failure on the part of the Company to perform any
agreement herein or comply with any provision hereof other than by reason of a default by any of
the Underwriters, the Company will reimburse the Underwriters severally through the Representatives
on demand for all expenses (including reasonable fees and disbursements of counsel) that shall have
been incurred by them in connection with the proposed purchase and sale of the Securities.
8. Indemnification and Contribution.
(a) The Company agrees to indemnify and hold harmless each Underwriter, the directors,
officers, employees and agents of each Underwriter and each person who
15
controls any Underwriter within the meaning of either the Act or the Exchange Act
against any and all losses, claims, damages or liabilities, joint or several, to which they
or any of them may become subject under the Act, the Exchange Act or other Federal or state
statutory law or regulation, at common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in the
registration statement for the registration of the Securities as originally filed or in any
amendment thereof, or in the Base Prospectus, any Preliminary Prospectus or any other
preliminary prospectus supplement relating to the Securities, the Final Prospectus, the
Disclosure Package, any Issuer Free Writing Prospectus or the information contained in the
final term sheet required to be prepared and filed pursuant to Section 5(b) hereto, or in
any amendment thereof or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and agrees to reimburse each such
indemnified party, as incurred, for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the Company will not be liable in any such
case to the extent that any such loss, claim, damage or liability arises out of or is based
upon any such untrue statement or alleged untrue statement or omission or alleged omission
made therein in reliance upon and in conformity with written information furnished to the
Company by or on behalf of any Underwriter through the Representatives specifically for
inclusion therein. This indemnity agreement will be in addition to any liability which the
Company may otherwise have.
(b) Each Underwriter severally and not jointly agrees to indemnify and hold harmless
the Company, each of its directors, each of its officers who signs the Registration
Statement, and each person who controls the Company within the meaning of either the Act or
the Exchange Act, to the same extent as the foregoing indemnity from the Company to each
Underwriter, but only with reference to written information relating to such Underwriter
furnished to the Company by or on behalf of such Underwriter through the Representatives
specifically for inclusion in the documents referred to in the foregoing indemnity. This
indemnity agreement will be in addition to any liability which any Underwriter may otherwise
have. The Company acknowledges that the (i) the list of Underwriters and their respective
participation in the sale of the Securities under the heading “Underwriting,” (ii) the
sentences related to concessions and reallowances under the heading “Underwriting” and (iii)
the paragraphs under the heading “Underwriting” related to stabilization, syndicate covering
transactions and penalty bids in the any Preliminary Prospectus and the Final Prospectus
constitute the only information furnished in writing by or on behalf of the several
Underwriters for inclusion in any Preliminary Prospectus, the Final Prospectus or any Issuer
Free Writing Prospectus.
(c) Promptly after receipt by an indemnified party under this Section 8 of notice of
the commencement of any action, such indemnified party will, if a claim in respect thereof
is to be made against the indemnifying party under this Section 8, notify the indemnifying
party in writing of the commencement thereof; but the failure so to notify the indemnifying
party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to
the extent it did not otherwise learn of such action and such
16
failure results in the forfeiture by the indemnifying party of substantial rights and
defenses and (ii) will not, in any event, relieve the indemnifying party from any
obligations to any indemnified party other than the indemnification obligation provided in
paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of
the indemnifying party’s choice at the indemnifying party’s expense to represent the
indemnified party in any action for which indemnification is sought (in which case the
indemnifying party shall not thereafter be responsible for the fees and expenses of any
separate counsel retained by the indemnified party or parties except as set forth below);
provided, however, that such counsel shall be reasonably satisfactory to the
indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to
represent the indemnified party in an action, the indemnified party shall have the right to
employ separate counsel (including local counsel), and the indemnifying party shall bear the
reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel
chosen by the indemnifying party to represent the indemnified party would present such
counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets
of, any such action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal defenses available
to it and/or other indemnified parties which are different from or additional to those
available to the indemnifying party, (iii) the indemnifying party shall not have employed
counsel satisfactory to the indemnified party to represent the indemnified party within a
reasonable time after notice of the institution of such action or (iv) the indemnifying
party shall authorize the indemnified party to employ separate counsel at the expense of the
indemnifying party. An indemnifying party will not, without the prior written consent of
the indemnified parties, settle or compromise or consent to the entry of any judgment with
respect to any pending or threatened claim, action, suit or proceeding in respect of which
indemnification or contribution may be sought hereunder (whether or not the indemnified
parties are actual or potential parties to such claim or action) unless such settlement,
compromise or consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.
(d) In the event that the indemnity provided in paragraph (a), (b) or (c) of this
Section 8 is unavailable to or insufficient to hold harmless an indemnified party for any
reason, the Company and the Underwriters severally agree to contribute to the aggregate
losses, claims, damages and liabilities (including legal or other expenses reasonably
incurred in connection with investigating or defending the same) (collectively “Losses”) to
which the Company and one or more of the Underwriters may be subject in such proportion as
is appropriate to reflect the relative benefits received by the Company on the one hand and
by the Underwriters on the other from the offering of the Securities; provided,
however, that in no case shall any Underwriter (except as may be provided in any
agreement among underwriters relating to the offering of the Securities) be responsible for
any amount in excess of the underwriting discount or commission applicable to the Securities
purchased by such Underwriter hereunder. If the allocation provided by the immediately
preceding sentence is unavailable for any reason, the Company and the Underwriters severally
shall contribute in such proportion as is appropriate to reflect not only such relative
benefits but also the relative fault of the Company on the one hand and of the Underwriters
on the other in connection with the statements or omissions which resulted in such Losses as
well as any other relevant
17
equitable considerations. Benefits received by the Company shall be deemed to be equal
to the total net proceeds from the offering (before deducting expenses) received by it, and
benefits received by the Underwriters shall be deemed to be equal to the total underwriting
discounts and commissions, in each case as set forth on the cover page of the Final
Prospectus. Relative fault shall be determined by reference to, among other things, whether
any untrue or any alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact relates to information provided by the Company on the one
hand or the Underwriters on the other, the intent of the parties and their relative
knowledge, access to information and opportunity to correct or prevent such untrue statement
or omission. The Company and the Underwriters agree that it would not be just and equitable
if contribution were determined by pro rata allocation or any other method of allocation
which does not take account of the equitable considerations referred to above.
Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. For
purposes of this Section 8, each person who controls an Underwriter within the meaning of
either the Act or the Exchange Act and each director, officer, employee and agent of an
Underwriter shall have the same rights to contribution as such Underwriter, and each person
who controls the Company within the meaning of either the Act or the Exchange Act, each
officer of the Company who shall have signed the Registration Statement and each director of
the Company shall have the same rights to contribution as the Company, subject in each case
to the applicable terms and conditions of this paragraph (d).
9. Default by an Underwriter. If any one or more Underwriters shall fail to purchase
and pay for any of the Securities agreed to be purchased by such Underwriter or Underwriters
hereunder and such failure to purchase shall constitute a default in the performance of its or
their obligations under this Agreement, the remaining Underwriters shall be obligated severally to
take up and pay for (in the respective proportions which the principal amount of Securities set
forth opposite their names in Schedule I hereto bears to the aggregate principal amount of
Securities set forth opposite the names of all the remaining Underwriters) the Securities which the
defaulting Underwriter or Underwriters agreed but failed to purchase; provided,
however, that in the event that the aggregate principal amount of Securities which the
defaulting Underwriter or Underwriters agreed but failed to purchase shall exceed 10% of the
aggregate principal amount of the Securities set forth in Schedule I hereto, the remaining
Underwriters shall have the right to purchase all, but shall not be under any obligation to
purchase any, of the Securities, and if such nondefaulting Underwriters do not purchase all the
Securities, this Agreement will terminate without liability to any nondefaulting Underwriter or the
Company. In the event of a default by any Underwriter as set forth in this Section 9, the Closing
Date shall be postponed for such period, not exceeding five Business Days, as the Representatives
shall determine in order that the required changes in the Registration Statement and the Final
Prospectus or in any other documents or arrangements may be effected. Nothing contained in this
Agreement shall relieve any defaulting Underwriter of its liability, if any, to the Company and any
nondefaulting Underwriter for damages occasioned by its default hereunder.
10. Termination. This Agreement shall be subject to termination in the absolute
discretion of the Representatives, by notice given to the Company prior to delivery of
18
and payment for the Securities, if at any time prior to such delivery and payment (i) trading
in the Company’s Common Stock shall have been suspended by the Commission or the New York Stock
Exchange or trading in securities generally on the New York Stock Exchange shall have been
suspended or limited or minimum prices shall have been established on such exchange, (ii) a banking
moratorium shall have been declared either by Federal or New York State authorities or (iii) there
shall have occurred any outbreak or escalation of hostilities, declaration by the United States of
a national emergency or war, or other calamity or crisis the effect of which on financial markets
is such as to make it, in the sole judgment of the Representatives, impractical or inadvisable to
proceed with the offering or delivery of the Securities as contemplated by the Disclosure Package
and the Final Prospectus (exclusive of any amendment or supplement thereto).
11. Representations and Indemnities to Survive. The respective agreements,
representations, warranties, indemnities and other statements of the Company or its officers and of
the Underwriters set forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation made by or on behalf of any Underwriter or the Company or
any of the officers, directors, employees, agents or controlling persons referred to in Section 8
hereof, and will survive delivery of and payment for the Securities. The provisions of Sections 7
and 8 hereof shall survive the termination or cancellation of this Agreement.
12. Notices. All communications hereunder will be in writing and effective only on
receipt, and, if sent to the Representatives, will be mailed, delivered or telefaxed to Banc of
America Securities, LLC, Attention: High Grade Capital Markets Transaction Management (fax no.:
000-000-0000) and confirmed to, Banc of America Securities, LLC, at 00 Xxxx 00xx Xxxxxx,
Xxx Xxxx, Xxx Xxxx 00000, Attention: High Grade Capital Markets Transaction Management and to
Citigroup Global Markets Inc. General Counsel (fax no.: (000) 000-0000) and confirmed to, Citigroup
Global Markets Inc., at 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx, 00000, Attention: General Counsel
and if sent to the Company, will be mailed, delivered or telefaxed to (fax no.: (000) 000-0000) and
confirmed to 0000 Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxx Xxxxxx 00000, Attention: Xxxxx Xxxxxx, Senior
Vice President and General Counsel.
13. Successors. This Agreement will inure to the benefit of and be binding upon the
parties hereto and their respective successors and the officers, directors, employees, agents and
controlling persons referred to in Section 8 hereof, and no other person will have any right or
obligation hereunder.
14. No Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale
of the Securities pursuant to this Agreement is an arm’s-length commercial transaction between the
Company, on the one hand, and the Underwriters and any affiliate through which it may be acting, on
the other, (b) the Underwriters are acting as principal and not as an agent or fiduciary of the
Company and (c) the Company’s engagement of the
Underwriters in connection with the
offering and the process leading up to the offering is as independent contractors and not in any
other capacity. Furthermore, the Company agrees that it is solely responsible for making its own
judgments in connection with the offering (irrespective of whether any of the Underwriters has
advised or is currently advising the Company on related or other matters). The Company agrees that
it will not claim that the Underwriters have rendered
19
advisory services of any nature or respect, or owe an agency, fiduciary or similar duty to the
Company, in connection with such transaction or the process leading thereto.
15. Integration. This Agreement supersedes all prior agreements and understandings
(whether written or oral) between the Company and the Underwriters, or any of them, with respect to
the subject matter hereof.
16. Applicable Law. This Agreement will be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed within the
State of New York.
17. Waiver of Jury Trial. The Company hereby irrevocably waives, to the fullest
extent permitted by applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby.
18. Counterparts. This Agreement may be signed in one or more counterparts, each of
which shall constitute an original and all of which together shall constitute one and the same
agreement.
19. Headings. The section headings used herein are for convenience only and shall not
affect the construction hereof.
20. Definitions. The terms that follow, when used in this Agreement, shall have the
meanings indicated.
“Act” shall mean the Securities Act of 1933, as amended and the rules and regulations
of the Commission promulgated thereunder.
“Base Prospectus” shall mean the base prospectus referred to in paragraph 1(a) above
contained in the Registration Statement at the Execution Time.
“Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or
a day on which banking institutions or trust companies are authorized or obligated by law to
close in New York City.
“Commission” shall mean the Securities and Exchange Commission.
“Disclosure Package” shall mean (i) the Base Prospectus, (ii) the Preliminary
Prospectus used most recently prior to the Execution Time, (iii) the Issuer Free Writing
Prospectuses, if any, identified in Schedule II hereto, (iv) the final term sheet prepared
and filed pursuant to Section 5(b) hereto, if any, and (v) any other Free Writing Prospectus
that the parties hereto shall hereafter expressly agree in writing to treat as part of the
Disclosure Package.
“Effective Date” shall mean each date and time that the Registration Statement and any
post-effective amendment or amendments thereto became or becomes effective.
20
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission promulgated thereunder.
“Execution Time” shall mean the date and time that this Agreement is executed and
delivered by the parties hereto.
“Final Prospectus” shall mean the prospectus supplement relating to the Securities that
was first filed pursuant to Rule 424(b) after the Execution Time, together with the Base
Prospectus.
“Free Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405.
“Issuer Free Writing Prospectus” shall mean an issuer free writing prospectus, as
defined in Rule 433.
“Preliminary Prospectus” shall mean any preliminary prospectus supplement to the Base
Prospectus referred to in paragraph 1(a) above which is used prior to the filing of the
Final Prospectus, together with the Base Prospectus.
“Registration Statement” shall mean the registration statement referred to in paragraph
1(a) above, including exhibits and financial statements and any prospectus supplement
relating to the Securities that is filed with the Commission pursuant to Rule 424(b) and
deemed part of such registration statement pursuant to Rule 430B, as amended on each
Effective Date and, in the event any post-effective amendment thereto becomes effective
prior to the Closing Date, shall also mean such registration statement as so amended.
“Rule 158”, “Rule 163”, “Rule 164”, “Rule 172”, “Rule 405”, “Rule 415”, “Rule 424”,
“Rule 430B” and “Rule 433” refer to such rules under the Act.
“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended and the
rules and regulations of the Commission promulgated thereunder.
“Well-Known Seasoned Issuer” shall mean a well-known seasoned issuer, as defined in Rule
405.
21
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a binding agreement among the Company and the several Underwriters.
Very truly yours, HASBRO, INC. |
||||
By: | /s/ Xxxxx X. X. Xxxxxxxxxx | |||
Name: | Xxxxx X.X. Xxxxxxxxxx | |||
Title: Executive Vice President, Finance and Global Operations and Chief Financial Officer |
||||
The foregoing Agreement is
hereby confirmed and accepted
as of the date specified in
Schedule I hereto.
hereby confirmed and accepted
as of the date specified in
Schedule I hereto.
BANC OF AMERICA SECURITIES LLC
CITIGROUP GLOBAL MARKETS INC.
CITIGROUP GLOBAL MARKETS INC.
BY:
|
BANC OF AMERICA SECURITIES LLC | |||
By:
|
/s/ Xxxx Xxxxx | |||
Name: Xxxx Xxxxx | ||||
Title: Principal | ||||
BY:
|
CITIGROUP GLOBAL MARKETS INC. | |||
By:
|
/s/ xxxxx xxxxxxxxx | |||
Name: Xxxxx Xxxxxxxxx | ||||
Title: Director |
For themselves and the other several Underwriters, if any,
named in Schedule I to the foregoing Agreement.
named in Schedule I to the foregoing Agreement.
SCHEDULE I
Principal | ||||
Amount | ||||
of Notes due | ||||
2017 to | ||||
Underwriters | be Purchased | |||
Banc of America Securities LLC |
$ | 141,312,500 | ||
Citigroup Global Markets Inc |
141,312,500 | |||
Greenwich Capital Markets Inc |
17,500,000 | |||
Xxxxxx
Xxxxxxx & Co. Incorporated |
17,500,000 | |||
BNP PARIBAS Securities Corp |
7,000,000 | |||
Commerzbank Capital Markets Corp |
7,000,000 | |||
Barclays Capital Inc |
6,125,000 | |||
BNY Capital Markets Inc |
6,125,000 | |||
Scotia Capital (USA) Inc |
6,125,000 | |||
Total |
$ | 350,000,000 | ||
S-I-1
SCHEDULE II
Schedule of Free Writing Prospectuses included in the Disclosure Package
Free Writing Prospectus, dated September 11, 2007
S-II-1
SCHEDULE III
Filed Pursuant to Rule 433
Registration No. 333-145947
September 12, 2007
Registration No. 333-145947
September 12, 2007
Hasbro, Inc.
$350,000,000 6.30% Notes due 2017
$350,000,000 6.30% Notes due 2017
Pricing Term Sheet
6.30% Notes due 2017 | ||
Issuer:
|
Hasbro, Inc. | |
Security:
|
6.30% Notes due 2017 | |
Size:
|
$350,000,000 | |
Maturity Date:
|
September 15, 2017 | |
Coupon:
|
6.30% | |
Interest Rate Adjustment:
|
If the rating on the notes from Xxxxx’x Investors Service, Inc. (“Moody’s”), Standard & Poor’s Ratings Services, a division of XxXxxx-Xxxx, Inc. (“S&P”), or Fitch Ratings (“Fitch”) is a rating set forth in the immediately following table, the per annum interest rate on the notes will increase from that set forth on the cover page of this prospectus supplement by the percentage set forth opposite that rating: |
Rating | Rating Agency | |||||||||
Levels | Xxxxx’x | S&P | Fitch | Percentage | ||||||
1 |
Ba1 | BB+ | BB+ | 0.25% | ||||||
2 |
Ba2 | BB | BB | 0.50% | ||||||
3 |
Ba3 | BB- | BB- | 0.75% | ||||||
4 |
B1 or below | B or below | B or below | 1.00% |
If any of Moody’s, S&P or Fitch subsequently increases its rating with respect to the notes to any of the threshold ratings set forth above, the per annum interest rate on such notes will be decreased such that the per annum interest rate equals the interest rate set forth on the cover page of this prospectus supplement plus the percentages applicable to the lowest two ratings levels of Xxxxx’x, S&P and Fitch in effect immediately following the increase. In determining the increase or decrease, if any, the percentage applicable to the lowest two ratings levels of Moody’s , |
S-III-1
S&P and Fitch shall be used. Each adjustment required by any decrease or increase in a rating set forth above, whether occasioned by the action of Moody’s, S&P or Fitch, shall be made independent of any and all other adjustments. In no event shall (1) the per annum interest rate on a series of notes be reduced below the interest rate set forth on the cover page of this prospectus supplement, and (2) the total increase in the per annum interest rate on a series of notes exceed 2.00% above the interest rate set forth on the cover page of this prospectus supplement. | ||
If any of two of Moody’s, S&P or Fitch ceases to provide a rating of the notes, any subsequent increase or decrease in the interest rate of the notes necessitated by a reduction or increase in the rating by the agency continuing to provide the rating shall be twice the percentage set forth in the applicable table above. | ||
No adjustments in the interest rate of the notes shall be made solely as a result of Moody’s, S&P or Fitch ceasing to provide a rating. If all of Xxxxx’x, S&P and Fitch cease to provide a rating of the notes, the interest rate on the notes will increase to, or remain at, as the case may be, 2.00% above the interest rate payable on the notes on the date of their issuance. | ||
Any interest rate increase or decrease described above will take effect from the first day of the interest period during which a rating change requires an adjustment in the interest rate. | ||
The interest rates on a series of notes will permanently cease to be subject to any adjustment described above (notwithstanding any subsequent decrease in the ratings by either or both rating agencies) if the series of notes becomes rated A3, A- or A- or higher by any two of Xxxxx’x, S&P and Fitch, respectively (or one of these ratings if only rated by one rating agency), with a stable or positive outlook by both such rating agencies. | ||
Interest Payment Dates:
|
March 15 and September 15, commencing March 15, 2008 | |
Price to Public:
|
99.671% | |
Benchmark Treasury:
|
UST 4.75% due August 15, 2017 | |
Benchmark Treasury Yield:
|
4.345% | |
Spread to Benchmark
Treasury:
|
+ 200 bps |
S-III-2
Yield:
|
6.345% | |
Make-Whole Call:
|
T + 30 bps | |
Expected Settlement Date:
|
September 17, 2007 | |
CUSIP:
|
418056 AP 2 | |
Anticipated Ratings:
|
Baa2 (Stable) by Xxxxx’x Investors Service, Inc. BBB (Stable) by Standard & Poor’s Ratings Services BBB (Stable) by Fitch Ratings | |
Joint Book-Running Managers:
|
Banc of America Securities LLC Citigroup Global Markets Inc. | |
Co-Managers:
|
Greenwich Capital Markets Inc. Xxxxxx Xxxxxxx & Co. Incorporated BNP PARIBAS Securities Corp. Commerzbank Capital Markets Corp. Barclays Capital Inc. Mellon Securities LLC Scotia Capital (USA) Inc. |
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be
subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering.
You may get these documents for free by visiting XXXXX on the SEC Web site at xxx.xxx.xxx.
Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange
to send you the prospectus if you request it by calling Banc of America Securities LLC toll-free at
(000) 000-0000 or Citigroup Global Markets Inc. toll free at 1-877-858-5407.
S-III-3
Exhibit A-1
Form of Ropes & Xxxx LLP Opinion
September 17, 0000
Xxxx xx Xxxxxxx Securities LLC
Citigroup Global Markets Inc.
As representatives of the several
underwriters named in Schedule I
to the Underwriting Agreement
c/o Banc of America Securities LLC
0 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Citigroup Global Markets Inc.
As representatives of the several
underwriters named in Schedule I
to the Underwriting Agreement
c/o Banc of America Securities LLC
0 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: Hasbro, Inc. – 6.30% Notes due 2017
Ladies and Gentlemen:
We have acted as counsel for Hasbro, Inc., a Rhode Island corporation (the “Company”), in
connection with the purchase today by the Underwriters pursuant to the underwriting agreement dated
September 12, 2007 (the “Underwriting Agreement”) among the Company and you, as representatives of
the several underwriters named in Schedule I of the Underwriting Agreement (the “Underwriters”), of
$350,000,000 aggregate principal amount of the Company’s 6.30% Notes due 2017 (the “Securities”),
issued pursuant to the indenture dated as of March 15, 2000, as supplemented by a supplemental
indenture dated as of September 17, 2007 (the “Indenture”) between the Company and The Bank of Nova
Scotia Trust Company of New York, as trustee (the “Trustee”). This opinion is being furnished to
you pursuant to Section 6(b) of the Underwriting Agreement. Capitalized terms defined in the
Underwriting Agreement and not otherwise defined herein are used herein with the meanings so
defined.
We have examined signed copies of the registration statement of the Company on Form S-3 (No.
333-145947) filed with the Securities and Exchange Commission (the “Commission”) on September 11,
2007, all documents incorporated therein by reference and all exhibits to said registration
statement; the Prospectus dated September 11, 2007, the Preliminary Prospectus Supplement dated
September 11, 2007 and the Prospectus Supplement dated September 12, 2007 filed pursuant to Rule
424(b) under the Securities Act of 1933, as amended (the “Act”); an executed copy of the
Underwriting Agreement; an executed copy of the Indenture; and the Statement of Eligibility of the
Trustee on Form T-1 filed as an exhibit to the Registration
Ex A-1
Statement. The Underwriting Agreement, the Securities and the Indenture are collectively referred
to herein as the “Company Agreements.”
We have also examined and relied upon the original or copies of (i) the Restated Articles of
Incorporation of the Company, as amended, as certified as of a recent date by the Secretary of the
State of Rhode Island (the “Articles of Incorporation”), (ii) a certificate dated as of a recent
date of the Secretary of State of the State of Rhode Island as to the good standing of the Company
under the laws of the State of Rhode Island, (iii) the Amended and Restated Bylaws of the Company,
(iv) such records of corporate proceedings as we deemed material, and (v) the documents delivered
on the date hereof in connection with the closing of the sale of Securities to you. We have
assumed the genuineness of the signatures on all documents submitted to us as originals and the
conformity to the corresponding originals of all documents submitted to us as copies.
We express no opinion as to the laws of any jurisdiction other than the Rhode Island Business
Corporation Act, the federal laws of the United States of America and, for purposes of our opinion
in paragraphs 4 and 5 below, the laws of the State of New York.
Insofar as this opinion relates to factual matters, information with respect to which is in the
possession of the Company, we have made inquiries to the extent we believe reasonable with respect
to such matters and have relied upon representations made by the Company in the Underwriting
Agreement and representations made to us by one or more officers of the Company.
For purposes of our opinion expressed in paragraph 1, we have relied exclusively on a certificate
of public officials in the State of Rhode Island.
Based upon and subject to the foregoing, we are of the opinion that:
1. The Company is validly existing as a corporation in good standing under the laws of the State of
Rhode Island.
2. The Company has corporate power to own, lease and operate its properties and to conduct its
business as described in the Disclosure Package and the Final Prospectus and to enter into and
perform its obligations under the Company Agreements.
3. The Underwriting Agreement has been duly authorized, executed and delivered by the Company.
4. The Indenture has been duly authorized, executed and delivered by the Company and (assuming the
due authorization, execution and delivery thereof by the Trustee) constitutes a valid and binding
agreement of the Company, enforceable against the Company in accordance with its terms, except as
may be limited by bankruptcy, insolvency or similar laws affecting the rights and remedies of
creditors generally and general principles of equity; and the Indenture has been qualified under
the Trust Indenture Act of 1939, as amended.
5. The Securities have been duly authorized, executed and delivered by the Company and, assuming
that the Securities have been duly authenticated by the Trustee in the manner
Ex A-2
prescribed by the Indenture, are valid and binding obligations of the Company, enforceable against
the Company in accordance with their terms and entitled to the benefits of the Indenture, except as
may be limited by bankruptcy, insolvency or similar laws affecting the rights and remedies of
creditors generally and general principles of equity.
6. All consents, approvals and authorizations of any federal court or governmental authority or
agency or the Rhode Island Business Corporation Act that are required to be obtained in connection
with the offer, issuance, sale and delivery of the Securities have been obtained.
7. The execution, delivery and performance by the Company of the Company Agreements and the
issuance and sale of the Securities will not (i) violate any provision of the Rhode Island Business
Corporation Act, the federal laws of the United States or the Articles of Incorporation or By-Laws
of the Company, (ii) breach or result in a default under any of the agreements identified as
exhibits to the Company’s Annual Report on Form 10-K for the year ended December 31, 2006 or in any
subsequent Form 10-Q or Form 8-K filed with the Commission prior to the date hereof, or (iii) to
our knowledge, violate any judgment, injunction, order or decree of any federal court, arbitrator,
governmental body, agency or official specifically naming the Company.
8. The Company is not, and upon the issuance and sale of the Securities and the application of the
net proceeds therefrom as described in the Disclosure Package and the Final Prospectus will not be,
an “investment company” or an entity “controlled” by an “investment company,” as such terms are
defined in the Investment Company Act of 1940, as amended.
9. The Registration Statement has become effective under the Act; any required filing of the Base
Prospectus, any Preliminary Prospectus and the Final Prospectus required by Rule 424(b) under the
Act has been made in the manner and within the time periods required by Rule 424(b).
This opinion is furnished by us to you solely for your benefit and may not be relied on by any
person other than you.
Very truly yours,
Ropes & Xxxx LLP
Ex A-3
Exhibit A-2
September 17, 0000
Xxxx xx Xxxxxxx Securities LLC
Citigroup Global Markets Inc.
As representatives of the several
Underwriters named in Schedule I
to the Underwriting Agreement
c/o Bank of America Securities LLC
0 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Citigroup Global Markets Inc.
As representatives of the several
Underwriters named in Schedule I
to the Underwriting Agreement
c/o Bank of America Securities LLC
0 Xxxx 00xx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Re: Hasbro, Inc. – 6.30% Notes due 2017
Ladies and Gentlemen:
We refer to the underwriting agreement dated September 12, 2007 (the “Underwriting Agreement”)
among Hasbro, Inc., a Rhode Island corporation (the “Company”) and you as representatives of the
several underwriters named in Schedule I to the Underwriting Agreement. We have acted as counsel
to the Company in connection with the transactions described therein. Capitalized terms defined in
the Underwriting Agreement and not otherwise defined herein are used herein with the meanings so
defined.
In the course of the preparation of the Registration Statement, the Final Prospectus and the
Disclosure Package, as counsel to the Company we participated in conferences with officers and
representatives of the Company, representatives of the independent accountants for the Company and
your representatives and counsel at which conferences the contents of these documents were
discussed. On the basis of information that we have gained in the course of our representation of
the Company and our participation in the discussions referred to above, we confirm to you (i) that
the Registration Statement, as of its effective date, and the Final Prospectus, as of its date,
complied as to form in all material respects with the requirements of the Act and the rules and
regulations of the Commission thereunder and that the documents incorporated by reference into the
Final Prospectus, when they were filed with the Commission, complied as to form in all material
respects with the requirements of the Exchange Act and the rules and regulations of the Commission
thereunder and (ii) we do not know of any legal or governmental proceeding to which the Company or
any of its subsidiaries is a party required to be described in the Disclosure Package or the Final
Prospectus which is not so described or of any contracts, agreements or other documents that the
Company is required to file with the Commission pursuant to the Exchange Act that have not been
filed as required. In addition, based on the information and participation described above, no
facts that have come to our attention have caused us to believe
Ex A-4
that the (i) Registration Statement, as of its Effective Date, contained an untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading, (ii) the Disclosure Package, as of the
Execution Time, contained an untrue statement of a material fact or omitted to state a material
fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, or (iii) the Final Prospectus, as of its date or as of the
date hereof, contained or contains an untrue statement of a material fact or omitted or omits to
state a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, except in each case that we express no
belief with respect to the financial statements, schedules and other financial data included or
incorporated by reference in any of the foregoing.
The purpose of our engagement was not to establish or confirm factual matters set forth in the
Registration Statement, the Final Prospectus, the Disclosure Package or the documents incorporated
by reference therein, and we have not undertaken any obligation to verify independently any of the
factual matters set forth in those documents. Moreover, many of the determinations required to be
made in the preparation of such documents involve matters primarily of a non-legal nature. Because
of the limitations inherent in the independent verification of factual matters and the character of
the determinations involved in such review, we do not assume any responsibility for the accuracy,
completeness or fairness of the statements made or the information contained in the Registration
Statement, the Final Prospectus, the Disclosure Package or the documents incorporated by reference
therein, except for those statements in the Final Prospectus under the captions “Description of the
Notes,” “Description of the Debt Securities,” “Material United States Federal Income Tax
Consequences” and “Underwriting” insofar as they represent descriptions or conclusions of United
States law, descriptions of securities or summaries of documents referred to therein, which fairly
summarize in all material respects such descriptions, conclusions or documents.
This letter is furnished by us to you solely for your benefit and may not be relied on by any
person other than you.
Very truly yours,
Ropes & Xxxx LLP
Ex A-5