Exhibit 1.01
TERMS AGREEMENT
April 11, 2002
Xxxxxxx Xxxxx Xxxxxx Holdings Inc.
000 Xxxxxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Treasurer
Dear Sirs:
We understand that Xxxxxxx Xxxxx Barney Holdings Inc., a New York
corporation (the "Company"), proposes to issue and sell $73,000,000 aggregate
principal amount of its Equity Linked Securities (ELKS(SM)) (7,300,000 ELKS)
based upon the common stock of Intel Corporation due April 17, 2003 (the
"Securities"). Subject to the terms and conditions set forth herein or
incorporated by reference herein, Xxxxxxx Xxxxx Xxxxxx Inc. (the "Underwriter")
offers to purchase 7,300,000 Securities in the principal amount of $73,000,000
at 97.5% of the principal amount. The Closing Date shall be April 16, 2002 at
9:00 a.m. at the offices of Cleary, Gottlieb, Xxxxx & Xxxxxxxx, Xxx Xxxxxxx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000.
The Securities shall have the following terms:
Title: Equity Linked Securities (ELKS(SM)) based upon the Common Stock
of Intel Corporation due April 17, 2003
Maturity: April 17, 2003
Coupon: Each ELKS will pay a total coupon of $1.0028 in cash in two
separate semi-annual installments payable in part on each of
two separate Interest Payment Dates. The first coupon of
$0.5000 will be composed of $0.1304 of interest and a partial
payment of an option premium in the amount of
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$0.3696. The second coupon of $0.5028 will be composed of
$0.1311 of interest and a partial payment of an option premium
in the amount of $0.3717.
Maturity Payment: Holders of the ELKS will be entitled to receive at maturity
the Maturity Payment (as defined in the Prospectus Supplement
dated April 11, 2002 relating to the Securities)
Interest Payment Dates: October 16, 2002 and April 17, 2003
Regular Record Dates: October 15, 2002 and April 16, 2003
Initial Price To Public: 100% of the principal amount thereof, plus accrued interest
from April 16, 2002 to date of payment and delivery
Redemption Provisions: The Securities are not redeemable by the Company prior to
maturity.
Trustee: The Bank of New York
Indenture: Indenture, dated as of October 27, 1993, as amended from time
to time
All the provisions contained in the document entitled "Xxxxxxx Xxxxx
Xxxxxx Holdings Inc. - Debt Securities - Underwriting Agreement Basic
Provisions" and dated December 1, 1997 (the "Basic Provisions"), a copy of which
you have previously received, are, except as indicated below, herein
incorporated by reference in their entirety and shall be deemed to be a part of
this Terms Agreement to the same extent as if the Basic Provisions had been set
forth in full herein. Terms defined in the Basic Provisions are used herein as
therein defined.
Basic Provisions varied with respect to this Terms Agreement:
(A) Notwithstanding the provisions set forth in Section 3 of the Basic
Provisions, the Company and the Underwriter hereby agree that the
Securities will be in the form of Book-Entry Notes and shall be
delivered on April 16, 2002 against payment of the purchase price to
the Company by wire transfer in immediately
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available funds to such accounts with such financial institutions as
the Company may direct.
(B) Paragraph 4(j) of the Basic Provisions shall be amended and restated as
follows: "The Company will not, without the consent of Xxxxxxx Xxxxx
Barney Inc., offer, sell, contract to offer or sell or otherwise
dispose of any securities, including any backup undertaking for such
securities, of the Company, in each case that are substantially similar
to the Securities or any security convertible into or exchangeable for
the ELKS or such substantially similar securities, during the period
beginning the date of the Terms Agreement and ending the Closing Date."
(C) Paragraph 5(g) of the Basic Provisions shall be amended and restated as
follows: "You shall have received on the Closing Date letters from
PricewaterhouseCoopers LLP and KPMG LLP covering the matters set forth
in Exhibit II hereto, with respect to the Registration Statement and
the Prospectus at the time of the Terms Agreement."
The Underwriter hereby agrees in connection with the underwriting of
the Securities to comply with the requirements set forth in any applicable
sections of Section 2720 to the By-Laws of the National Association of
Securities Dealers, Inc.
Xxxxx Xxxxx, Esq., is counsel to the Company. Cleary, Gottlieb, Xxxxx &
Xxxxxxxx is counsel to the Underwriter. Cleary, Gottlieb, Xxxxx & Xxxxxxxx is
special tax counsel to the Company.
Please accept this offer no later than 9:00 p.m. on April 11, 2002, by
signing a copy of this Terms Agreement in the space set forth below and
returning the signed copy to us, or by sending us a written acceptance in the
following form:
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"We hereby accept your offer, set forth in the Terms Agreement, dated
April 11, 2002, to purchase the Securities on the terms set forth therein."
Very truly yours,
XXXXXXX XXXXX BARNEY INC.
By: /s/ Xxxxxx X. Xxxxx
----------------------------------------
Name: Xxxxxx X. Xxxxx
Title: Managing Director
ACCEPTED:
XXXXXXX XXXXX XXXXXX HOLDINGS INC.
By: /s/ Xxxx Xxxxxxxx
----------------------------
Name: Xxxx Xxxxxxxx
Title: Executive Vice President and Treasurer
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