Kansas City Power & Light Company
Exhibit 1.1
EXECUTION VERSION
Kansas City Power & Light Company
$400,000,000
7.15% Mortgage Bonds Series, 2009A due 2019
dated March 19, 2009
Banc of America Securities LLC
BNP Paribas Securities Corp.
X.X. Xxxxxx Securities Inc.
BNP Paribas Securities Corp.
X.X. Xxxxxx Securities Inc.
March 19, 2009
BANC OF AMERICA SECURITIES LLC
BNP PARIBAS SECURITIES CORP.
X.X. XXXXXX SECURITIES INC.
BNP PARIBAS SECURITIES CORP.
X.X. XXXXXX SECURITIES INC.
As Representatives of the several Underwriters
c/o Banc of America Securities LLC
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
c/o BNP Paribas Securities Corp.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
and
c/o X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
Kansas City Power & Light Company, a Missouri corporation (the “Company”), proposes to issue
and sell to the several underwriters named in Schedule A (the “Underwriters”), acting severally and
not jointly, the respective amounts set forth in such Schedule A of $400,000,000 aggregate
principal amount of the Company’s 7.15% Mortgage Bonds, Series 2009A due 2019 (the “Mortgage
Bonds”). Banc of America Securities LLC, BNP Paribas Securities Corp., and X.X. Xxxxxx Securities
Inc. have agreed to act as representatives of the several Underwriters (in such capacity, the
“Representatives”) in connection with the offering and sale of the Mortgage Bonds.
The Mortgage Bonds will be issued pursuant to and secured by the General Mortgage Indenture
and Deed of Trust, dated as of December 1, 1986 between the Company and UMB Bank, N.A. (formerly
United Missouri Bank of Kansas City, N.A.), as trustee (the “Trustee”), as amended and supplemented
by eleven indentures supplemental thereto (such Mortgage Indenture and Deed of Trust, as heretofore
amended and supplemented, the “Base Mortgage Indenture”). Certain terms of the Mortgage Bonds will
be established pursuant to the twelfth supplemental indenture dated as of March 1, 2009 (the
“Twelfth Supplemental Indenture” and together with
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the Base Mortgage Indenture, the “Mortgage Indenture”) in accordance with Article Fifteen of
the Base Mortgage Indenture. The Mortgage Bonds will be issued in book-entry form in the name of
Cede & Co., as nominee of The Depository Trust Company (the “Depositary”), pursuant to a Letter of
Representations, to be dated on or before the Closing Date (as defined in Section 2(b) below) (the
“DTC Agreement”), among the Company, the Trustee and the Depositary.
The Company has prepared and filed with the Securities and Exchange Commission (the
“Commission”) a registration statement on Form S-3 (File No. 333-148136), to be used in connection
with the public offering and sale of debt securities, including the Mortgage Bonds, of the Company.
Such registration statement, including the financial statements, exhibits and schedules thereto,
in the form in which it became effective under the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder (collectively, the “Securities Act”), including any
required information deemed to be a part of the registration statement at the time of effectiveness
pursuant to Rule 430B under the Securities Act, is called the “Registration Statement”. The term
“Base Prospectus” shall mean the base prospectus dated March 5, 2008 relating to the Mortgage
Bonds. The term “Preliminary Prospectus” shall mean any preliminary prospectus supplement relating
to the Mortgage Bonds, together with the Base Prospectus, that is first filed with the Commission
pursuant to Rule 424(b). The term “Prospectus” shall mean the final prospectus supplement relating
to the Mortgage Bonds, together with the Base Prospectus, that is first filed pursuant to Rule
424(b) after the date and time that this Agreement is executed (the “Execution Time”) and delivered
by the parties hereto. Any reference herein to the Registration Statement, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include the documents that are or are
deemed to be incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities
Act prior to 3:00 p.m. (Eastern time) on March 19, 2009 (the “Initial Sale Time”). All references
in this Agreement to the Registration Statement, any Preliminary Prospectus, the Prospectus, or any
amendments or supplements to any of the foregoing, shall include any copy thereof filed with the
Commission pursuant to its Electronic Data Gathering, Analysis and Retrieval System (“XXXXX”).
All references in this Agreement to financial statements and schedules and other information
which is “contained,” “included” or “stated” (or other references of like import) in the
Registration Statement, the Prospectus or any Preliminary Prospectus shall be deemed to mean and
include all such financial statements and schedules and other information which is or is deemed to
be incorporated by reference in the Registration Statement, the Prospectus or any Preliminary
Prospectus, as the case may be, prior to the Initial Sale Time; and all references in this
Agreement to amendments or supplements to the Registration Statement, the Prospectus or any
Preliminary Prospectus shall be deemed to include the filing of any document under the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder
(collectively, the “Exchange Act”), which is or is deemed to be incorporated by reference in the
Registration Statement, the Prospectus or any Preliminary Prospectus, as the case may be, after the
Initial Sale Time.
The Company hereby confirms its agreements with the Underwriters as follows:
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Section 1. Representations and Warranties of the Company.
The Company hereby represents, warrants and covenants to each Underwriter as of the date hereof, as
of the Initial Sale Time and as of the Closing Date (as defined herein) (in each case, a
“Representation Date”), as follows:
(a) Compliance with Registration Requirements. The Company meets the requirements for use of
Form S-3 under the Securities Act. The Registration Statement has become effective under the
Securities Act and no stop order suspending the effectiveness of the Registration Statement has
been issued under the Securities Act and no proceedings for that purpose have been instituted or
are pending or, to the knowledge of the Company, are contemplated or threatened by the Commission,
and any request on the part of the Commission for additional information has been complied with.
In addition, the Mortgage Indenture has been duly qualified under the Trust Indenture Act of 1939,
as amended, and the rules and regulations promulgated thereunder (the “Trust Indenture Act”).
At the respective times the Registration Statement and any post-effective amendments thereto
became effective and at each Representation Date, the Registration Statement and any amendments
thereto (i) complied and will comply in all material respects with the requirements of the
Securities Act and the Trust Indenture Act, and (ii) did not and will not contain an untrue
statement of a material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. Neither the Prospectus nor any amendments
or supplements thereto, at the time the Prospectus or any such amendment or supplement was issued
and at the Closing Date, included or will include an untrue statement of a material fact or omitted
or will omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading. Notwithstanding the
foregoing, the representations and warranties in this subsection shall not apply to (i) that part
of the Registration Statement which constitutes the Statement of Eligibility on Form T-1 of the
Trustee under the Trust Indenture Act or (ii) statements in or omissions from the Registration
Statement or any post-effective amendment or the Prospectus or any amendments or supplements
thereto made in reliance upon and in conformity with information furnished to the Company in
writing by any of the Underwriters through the Representatives expressly for use therein, it being
understood and agreed that the only such information furnished by any Underwriter consists of the
information described as such in Section 6(b) hereof.
Each Preliminary Prospectus and the Prospectus, at the time each was filed with the
Commission, complied in all material respects with the Securities Act, and each Preliminary
Prospectus and the Prospectus delivered to the Underwriters for use in connection with the offering
of the Mortgage Bonds will, at the time of such delivery, be identical to any electronically
transmitted copies thereof filed with the Commission pursuant to XXXXX, except to the extent
permitted by Regulation S-T.
(b) Disclosure Package. The term “Disclosure Package” shall mean (i) the Preliminary
Prospectus dated March 19, 2009 (ii) each issuer free writing prospectus as defined in Rule 433 of
the Securities Act, if any, identified in Annex I hereto (each, an “Issuer Free Writing
Prospectus”) and (iii) any other free writing prospectus that the parties hereto shall hereafter
expressly agree in writing to treat as part of the Disclosure Package. At the Initial Sale
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Time, the Disclosure Package did not include any untrue statement of a material fact or omit
to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. The 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 6(b) hereof.
(c) Incorporated Documents. The documents incorporated or deemed to be incorporated by
reference in the Registration Statement, any Preliminary Prospectus and the Prospectus (i) at the
time they were or hereafter are filed with the Commission, complied or will comply in all material
respects with the requirements of the Exchange Act and (ii) when read together with the other
information in the Disclosure Package, at the Initial Sale Time, and when read together with the
other information in the Prospectus, at the date of the Prospectus and at the Closing Date, did not
or will not include an untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.
(d) Not an Ineligible Issuer. (i) At the earliest time after the filing of the Registration
Statement that the Company or another offering participant makes a bona fide offer (within the
meaning of Rule 164(h)(2) of the Securities Act) of the Mortgage Bonds 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 or is not an Ineligible Issuer (as defined in Rule 405 of the Securities Act),
without taking account of any determination by the Commission pursuant to Rule 405 of the
Securities Act that it is not necessary that the Company be considered an Ineligible Issuer.
(e) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its issue
date and at all subsequent times through the completion of the public offering and sale of Mortgage
Bonds or until any earlier date that the Company notified or notifies the Representatives as
described in the next sentence, did not, does not and will not include any information that
conflicted, conflicts or will conflict with the information contained in the Registration
Statement, any Preliminary Prospectus or the Prospectus. If at any time following issuance of an
Issuer Free Writing Prospectus there occurred or occurs an event or development as a result of
which such Issuer Free Writing Prospectus conflicted or would conflict with the information
contained in the Registration Statement, any Preliminary Prospectus or the Prospectus, the Company
has promptly notified or will promptly notify the Representatives and has promptly amended or
supplemented or will promptly amend or supplement, at its own expense, such Issuer Free Writing
Prospectus to eliminate or correct such conflict. The foregoing two sentences do not apply to
statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity
with written information furnished to the Company by any Underwriter through the Representatives
specifically for use therein, it being understood and agreed that the only such information
furnished by any Underwriter consists of the information described as such in Section 6(b) hereof.
No electronic roadshow has been prepared or used by the Company in connection with the offering of
the Mortgage Bonds.
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(f) No Applicable Registration or Other Similar Rights. There are no persons with
registration or other similar rights to have any equity or debt securities registered for sale
under the Registration Statement or included in the offering contemplated by this Agreement, except
for such rights as have been duly waived.
(g) Due Incorporation and Qualification. The Company has been duly incorporated and is
validly existing as a corporation in good standing under the laws of the state of Missouri with
corporate power and authority to own, lease and operate its properties and to conduct its business
as described in the Disclosure Package and the Prospectus and to enter into and perform its
obligations under this Agreement, the Twelfth Supplemental Indenture and the Mortgage Bonds and to
perform its obligations under the Mortgage Indenture; and the Company 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 to so qualify and be in good standing would not result in a
Material Adverse Change (as defined herein).
(h) Subsidiaries. Each wholly-owned subsidiary of the Company (each, a “Subsidiary” and,
together, the “Subsidiaries”) has been duly incorporated and is validly existing as a corporation
in good standing under the laws of its jurisdiction of incorporation, has corporate power and
authority to own, lease and operate its properties and to conduct its business as described in the
Disclosure Package and the Prospectus and 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 Material Adverse Change;
except as otherwise disclosed in the Disclosure Package and the Prospectus, all of the issued and
outstanding shares of capital stock owned directly or indirectly by the Company of each such
Subsidiary have been duly authorized and validly issued, are fully paid and non-assessable and are
owned by the Company, directly or through subsidiaries, free and clear of any security interest,
mortgage, pledge, lien, encumbrance, claim or equity; and none of the outstanding shares of capital
stock of any Subsidiary was issued in violation of the preemptive or similar rights of any
securityholder of such Subsidiary. The Company has no significant subsidiaries, as “significant
subsidiaries” is defined in Rule 405 of Regulation C under the Securities Act.
(i) Capitalization. The authorized, issued and outstanding capital stock of the Company is as
set forth in the Disclosure Package and the Prospectus in the column entitled “Actual” under the
caption “Capitalization and Short-Term Debt.” The shares of issued and outstanding capital stock
of the Company have been duly authorized and validly issued and are fully paid and non-assessable;
none of the outstanding shares of capital stock of the Company was issued in violation of the
preemptive or other similar rights of any securityholder of the Company.
(j) Accountants. The accountants who issued their reports on the financial statements of the
Company included or incorporated by reference in the Disclosure Package and the Prospectus are an
independent registered public accounting firm within the meaning of the Securities Act.
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(k) Financial Statements. The financial statements and any supporting schedules of the
Company included or incorporated by reference in the Registration Statement, the Disclosure Package
and the Prospectus present fairly, in all material respects, the financial position of the Company
as of the dates indicated and the results of its operations and cash flows for the periods
specified; except as stated therein, said financial statements have been prepared in conformity
with generally accepted accounting principles in the United States (“GAAP”) applied on a consistent
basis; and any supporting schedules included in the Registration Statement present fairly, in all
material respects, the information required to be stated therein. The selected financial data and
the summary financial information included or incorporated by reference in the Disclosure Package
and the Prospectus present fairly, in accordance with GAAP, the information shown therein and have
been compiled on a basis consistent with that of the audited financial statements included or
incorporated by reference in the Registration Statement, the Disclosure Package and the Prospectus.
(l) Authorization of the Underwriting Agreement. This Agreement has been duly authorized,
executed and delivered by the Company.
(m) Authorization of the Mortgage Indenture. The Mortgage Indenture has been duly qualified
under the Trust Indenture Act and has been duly authorized, executed and delivered by the Company
and constitutes a valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws relating to or affecting enforcement of
creditors’ rights generally and except as enforcement thereof is subject to general principles of
equity (regardless of whether enforcement is considered in a proceeding in equity or at law);
provided, however, that certain remedial provisions of the Mortgage Indenture may not be
enforceable, but such unenforceability will not render the Mortgage Indenture invalid as a whole or
affect the judicial enforcement of (i) the obligation of the Company to repay the principal,
together with the interest thereon, as provided in the Mortgage Bonds, (ii) the acceleration of the
obligation of the Company to repay such principal, together with such interest, based upon a
material default by the Company in the payment of such principal or interest or (iii) the right of
the Trustee to exercise its right to foreclose under the Mortgage Indenture.
(n) Authorization of the Mortgage Bonds. The Mortgage Bonds to be purchased by the
Underwriters from the Company are in the form contemplated by the Mortgage Indenture, have been
duly authorized for issuance and sale pursuant to this Agreement and the Mortgage Indenture and, at
the Closing Date, will have been duly executed by the Company and, when authenticated in the manner
provided for in the Mortgage Indenture and delivered against payment of the purchase price
therefor, will constitute valid and binding obligations of the Company, enforceable in accordance
with their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting enforcement of creditors’
rights generally and except as enforcement thereof is subject to general principles of equity
(regardless of whether enforcement is considered in a proceeding in equity or at law) and will be
entitled to the benefits of the Mortgage Indenture.
(o) Recordation of the Mortgage Indenture. The Mortgage Indenture (not including the Twelfth
Supplemental Indenture) has been duly filed for recordation and otherwise filed,
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indexed or cross-indexed in such manner and in such places as is required by law in order to
give constructive notice of, establish, preserve and protect the lien of the Mortgage Indenture on
the Mortgaged Property (as such term is defined in the Mortgage Indenture), and all taxes payable
to any state or subdivision thereof in connection with the execution, delivery or recordation of
the Mortgage Indenture or the execution, authentication, issuance and delivery of the Mortgage
Bonds and outstanding mortgage bonds have been paid.
(p) Title to Property. Except as to property acquired subsequent to the execution and
delivery of the Twelfth Supplemental Indenture, the Company has good and sufficient title to, or a
satisfactory easement in, the Mortgaged Property (except such property as may have been disposed of
and/or released from the lien thereof in accordance with the terms thereof), subject only to (i)
the lien of the Mortgage Indenture, (ii) exceptions and reservations specifically set forth
therein, (iii) “Permissible Encumbrances” as defined in the Mortgage Indenture, (iv) leases and
minor liens of judgments not prior to the lien of the Mortgage Indenture, which do not interfere
with the Company’s business, (v) defects, irregularities and deficiencies in titles of properties
and rights-of-way which do not materially impair the use of such property and rights-of-way for the
purposes for which they are held by the Company and (vi) matters specified in the Disclosure
Package and the Prospectus under the caption “Description of Bonds—Security and Priority”.
(q) Lien of Mortgage. The Mortgage Indenture, subject only to the qualifications set forth in
Section 1(p) hereof and to such other matters as do not materially affect the security for the
Mortgage Bonds, constitutes a valid, direct first mortgage lien upon the Mortgaged Property, which
includes substantially all of the fixed property of the Company and the franchises and permits of
the Company pertaining to the operation of said property; all property (to the extent such property
constitutes Mortgaged Property) acquired by the Company after the execution and delivery of the
Twelfth Supplemental Indenture will, upon such acquisition, become subject to the lien of the
Mortgage Indenture to the extent provided therein, subject, however, to “Permissible Encumbrances,”
to liens, if any, existing or placed thereon at the time of the acquisition thereof by the Company
and to any rights or equities of others attaching under applicable local law in the absence of
notice of the lien of the Mortgage Indenture by filing, recordation or otherwise.
(r) Description of the Mortgage Bonds and the Mortgage Indenture. The Mortgage Bonds and the
Mortgage Indenture conform in all material respects to the descriptions thereof contained in the
Disclosure Package and the Prospectus.
(s) Material Changes or Material Transactions. Since the respective dates as of which
information is given in the Registration Statement, the Disclosure Package and the Prospectus,
except as may otherwise be stated therein or contemplated thereby, (a) there has been no material
adverse change in the condition, financial or otherwise, or in the earnings, business affairs or
business prospects of the Company and its subsidiaries considered as one enterprise, whether or not
arising in the ordinary course of business (a “Material Adverse Change”) and (b) there have been no
transactions entered into by the Company and its subsidiaries considered as one enterprise other
than those in the ordinary course of business which are material with respect to the Company and
its subsidiaries considered as one enterprise.
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(t) No Defaults. Neither the Company nor any of the Subsidiaries is in violation of its
Articles of Incorporation, charter or by-laws. Except as would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Change, neither the Company nor
any of the Subsidiaries is in default in the performance or observance of any obligation,
agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement,
note, lease or other instrument to which the Company or any of the Subsidiaries is a party or by
which it or any of them may be bound, or to which any of the property or assets of the Company or
any of the Subsidiaries is subject (each, an “Agreement or Instrument” and, collectively, the
“Agreements and Instruments”). The execution and delivery of this Agreement, the Twelfth
Supplemental Indenture and the Mortgage Bonds and the consummation of the transactions contemplated
herein, therein and in the Mortgage Indenture have been duly authorized by all necessary corporate
action and do not and will not conflict with or constitute a breach of, or default under, or result
in the creation or imposition of any lien, charge or encumbrance (except pursuant to the terms of
the Mortgage Indenture) upon any property or assets of the Company or any Subsidiary pursuant to,
any material Agreements and Instruments, nor will such action result in any violation of the
provisions of the Articles of Incorporation or by-laws, of the Company or any of the Subsidiaries
or any applicable law, administrative regulation or administrative or court order or decree.
(u) Regulatory Approvals. The Company has made all necessary filings and obtained all
necessary consents, orders or approvals in connection with the issuance and sale of the Mortgage
Bonds or will have done so by the time the Mortgage Bonds shall be issued and sold, and no consent,
approval, authorization, order or decree of any other court or governmental agency or body is
required for the consummation by the Company of the transactions contemplated by this Agreement,
except such as may be required under state securities laws.
(v) Legal Proceedings; Contracts. Except as may be set forth, incorporated or deemed
incorporated by reference in the Disclosure Package and the Prospectus, there is no action, suit or
proceeding before or by any court or governmental agency or body, domestic or foreign, now pending,
or, to the knowledge of the Company, threatened against or affecting, the Company or its
subsidiaries which would reasonably be expected to result in any Material Adverse Change, or might
materially and adversely affect its properties or assets or would reasonably be expected to
materially and adversely affect the consummation of the transactions contemplated by this
Agreement; and there are no contracts or documents which are required to be filed as exhibits to
the Registration Statement by the Securities Act which have not been so filed.
(w) Franchises. The Company holds, to the extent required, valid and subsisting franchises,
licenses and permits authorizing it to carry on the regulated utility businesses in which it is
engaged in the territories from which substantially all of the Company’s consolidated gross
operating revenue is derived, except where the failure to hold such franchises, licenses and
permits would not result in a Material Adverse Change.
(x) Environmental Laws. Except as described, incorporated or deemed incorporated by reference
in the Disclosure Package and the Prospectus, and except as would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Change, (A) neither the Company
nor any of the Subsidiaries is in violation of any federal, state, local or foreign
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statute, law, rule, regulation, ordinance, code, policy or rule of common law or any judicial
or administrative interpretation thereof, including any judicial or administrative order, consent,
decree or judgment, relating to pollution or protection of human health, the environment
(including, without limitation, ambient air, surface water, groundwater, land surface or subsurface
strata) or wildlife, including, without limitation, laws and regulations relating to the release or
threatened release of chemicals, pollutants, contaminants, wastes, toxic substances, hazardous
substances, petroleum or petroleum products, asbestos-containing materials or mold (collectively,
“Hazardous Materials”) or to the manufacture, processing, distribution, use, treatment, storage,
disposal, transport or handling of Hazardous Materials (collectively, “Environmental Laws”),
(B) the Company and the Subsidiaries have all permits, authorizations and approvals required under
any applicable Environmental Laws and are each in compliance with their requirements, (C) there are
no pending or, to the knowledge of the Company, threatened administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, notices of noncompliance or violation,
investigation or proceedings relating to any Environmental Law against the Company or any of the
Subsidiaries and (D) there are no events or circumstances that would reasonably be expected to form
the basis of an order for clean-up or remediation, or an action, suit or proceeding by any private
party or governmental body or agency, against or affecting the Company or any of the Subsidiaries
relating to Hazardous Materials or any Environmental Laws.
(y) Investment Company Act. The Company is not and, upon the issuance and sale of the
Mortgage Bonds as contemplated herein and the application of the net proceeds thereof as described
in the Disclosure Package and the Prospectus, will not be, required to register as an “investment
company” under the Investment Company Act of 1940, as amended.
(z) ERISA. The Company and the Subsidiaries are in compliance in all material respects with
all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published interpretations thereunder (“ERISA”); no
“reportable event” (as defined in ERISA) has occurred with respect to any “pension plan” (as
defined in ERISA) for which the Company or any of the Subsidiaries would have any material
liability; the Company and the Subsidiaries have not incurred and do not expect to incur any
material liability under (i) Title IV of ERISA with respect to the termination of, or withdrawal
from, any “pension plan” or (ii) Section 412 or 4971 of the Internal Revenue Code of 1986, as
amended, including the regulations and published interpretations thereunder (the “Code”); and each
“pension plan” for which the Company or any of the Subsidiaries would have any liability that is
intended to be qualified under Section 401(a) of the Code is so qualified in all material respects
and nothing has occurred, whether by action or by failure to act, which would cause the loss of
such qualification.
(aa) Insurance. The Company and each of the Subsidiaries carry, or are covered by, insurance
in such amounts and covering such risks as is adequate for the conduct of their respective
businesses and the value of their respective properties.
(bb) Taxes. The Company and each of the Subsidiaries has filed all federal, state and local
income and franchise tax returns required to be filed through the date hereof and has paid all
taxes due thereon, except such as are being contested in good faith by appropriate proceedings, and
no tax deficiency has been determined adversely to the Company or any of the
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Subsidiaries which has had, nor does the Company have any knowledge of any tax deficiency
which, if determined adversely to the Company or any of the Subsidiaries, would reasonably be
expected to result in, a Material Adverse Change.
(cc) Internal Controls. Each of the Company and the Subsidiaries (A) make and keep accurate
books and records and (B) maintain internal accounting controls which provide reasonable assurance
that (i) transactions are executed in accordance with management’s authorization, (ii) transactions
are recorded as necessary to permit preparation of its financial statements and to maintain
accountability for its assets, (iii) access to its assets is permitted only in accordance with
management’s authorization and (iv) the reported accountability for its assets is compared with
existing assets at reasonable intervals. Except as described in the Disclosure Package and the
Prospectus, since the end of the Company’s most recent audited fiscal year, there has been (I) no
material weakness in the Company’s internal control over financial reporting (whether or not
remediated) and (II) no change in the Company’s internal control over financial reporting that has
materially affected, or is reasonably likely to materially affect, the Company’s internal control
over financial reporting.
(dd) Xxxxxxxx-Xxxxx. The Company is in compliance, in all material respects, with all
applicable provisions of the Xxxxxxxx-Xxxxx Act of 2002 and the rules and regulations promulgated
in connection therewith, including Section 402 related to loans, and the requirement that the
Company and its consolidated subsidiaries maintain the following, among other, controls and
procedures:
(i) a system of “internal accounting controls” as contemplated in
Section 13(b)(2)(B) of the Exchange Act;
(ii) “disclosure controls and procedures” as such term is defined in
Rule 13a-15(e) under the Exchange Act; and
(iii) “internal control over financial reporting” as such term is defined in
Rule 13a-15(f) under the Exchange Act.
(ee) Pending Proceedings and Examinations. The Registration Statement is not the subject of a
pending proceeding or examination under Section 8(d) or 8(e) of the Securities Act, and the Company
is not the subject of a pending proceeding under Section 8A of the Securities Act in connection
with the offering of the Mortgage Bonds.
(ff) Ratings. The Mortgage Bonds are rated A3 (Negative Outlook) by Xxxxx’x Investors
Services and BBB+ (Negative Outlook) by Standard & Poor’s Ratings Group.
Any certificate signed by any director or officer of the Company and delivered to the
Underwriters or to counsel for the Underwriters shall be deemed a representation and warranty by
the Company to the Underwriters as to the matters covered thereby on the date of such certificate
and, unless subsequently amended or supplemented, at each Representation Date subsequent thereto.
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(a) The Mortgage Bonds. The Company agrees to issue and sell to the several Underwriters,
severally and not jointly, all of the Mortgage Bonds upon the terms herein set forth. On the basis
of the representations, warranties and agreements herein contained, and upon the terms but subject
to the conditions herein set forth, the Underwriters agree, severally and not jointly, to purchase
from the Company the aggregate principal amount of Mortgage Bonds set forth opposite their names on
Schedule A, plus any additional principal amount of Mortgage Bonds which such Underwriter may
become obligated to purchase pursuant to Section 8 hereof, at a purchase price of 99.242% of the
principal amount of the Mortgage Bonds, payable on the Closing Date.
(b) The Closing Date. Delivery of certificates for the Mortgage Bonds in global form to be
purchased by the Underwriters and payment therefor shall be made at the offices of Xxxxx Xxxx &
Xxxxxxxx, 0000 Xx Xxxxxx Xxxx, Xxxxx Xxxx, Xxxxxxxxxx (or such other place as may be agreed to by
the Company and the Representatives) at 9:00 a.m., New York City time, on March 24, 2009, or such
other time and date as the Underwriters and the Company shall mutually agree (the time and date of
such closing are called the “Closing Date”).
(c) Public Offering of the Mortgage Bonds. The Representatives hereby advise the Company that
the Underwriters intend to offer for sale to the public, as described in the Disclosure Package and
the Prospectus, their respective portions of the Mortgage Bonds as soon after this Agreement has
been executed as the Representatives, in their sole judgment, have determined is advisable and
practicable.
(d) Payment for the Mortgage Bonds. Payment for the Mortgage Bonds shall be made at the
Closing Date by wire transfer of immediately available funds to the order of the Company.
It is understood that the Representatives have been authorized, for their own accounts and for
the accounts of the several Underwriters, to accept delivery of and receipt for, and make payment
of the purchase price for, the Mortgage Bonds that the Underwriters have agreed to purchase. The
Representatives may (but shall not be obligated to) make payment for any Mortgage Bonds to be
purchased by any Underwriter whose funds shall not have been received by the Representatives by the
Closing Date for the account of such Underwriter, but any such payment shall not relieve such
Underwriter from any of its obligations under this Agreement.
(e) Delivery of the Mortgage Bonds. The Company shall deliver, or cause to be delivered, to
the Representatives for the accounts of the several Underwriters through the facilities of the
Depositary certificates for the Mortgage Bonds at the Closing Date, against the irrevocable release
of a wire transfer of immediately available funds for the amount of the purchase price therefor.
The certificates for the Mortgage Bonds shall be definitive global certificates in book entry form
for clearance through the Depositary. Time shall be of the essence, and delivery at the time and
place specified in this Agreement is a further condition to the obligations of the Underwriters.
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Section 3. Covenants of the Company.
The Company covenants and agrees with each Underwriter as follows:
(a) Compliance with Securities Regulations and Commission Requests. The Company, subject to
Section 3(b) hereof, will comply with the requirements of Rule 430B under the Securities Act, and
will promptly notify the Representatives, and confirm the notice in writing, of (i) the
effectiveness during the Prospectus Delivery Period (as defined below) of any post-effective
amendment to the Registration Statement or the filing of any supplement or amendment to any
Preliminary Prospectus or the Prospectus, (ii) the receipt of any comments from the Commission
during the Prospectus Delivery Period, (iii) any request by the Commission for any amendment to the
Registration Statement or any amendment or supplement to any Preliminary Prospectus or the
Prospectus or for additional information, and (iv) the issuance by the Commission of any stop order
suspending the effectiveness of the Registration Statement or of any order preventing or suspending
the use of any Preliminary Prospectus or the Prospectus, or of the suspension of the qualification
of the Mortgage Bonds for offering or sale in any jurisdiction, or of the initiation or threatening
of any proceedings for any of such purposes. The Company will promptly effect the filings
necessary pursuant to Rule 424 and will take such steps as it deems necessary to ascertain promptly
whether any Preliminary Prospectus and the Prospectus transmitted for filing under Rule 424 was
received for filing by the Commission and, in the event that it was not, it will promptly file such
document. The Company will use every reasonable effort to prevent the issuance of any stop order
and, if any stop order is issued, to obtain the lifting thereof at the earliest possible moment.
(b) Representatives’ Review of Proposed Amendments and Supplements. During the period
beginning on the date of this Agreement and ending on the later of the Closing Date or such date,
as in the opinion of counsel for the Underwriters, a prospectus relating to the Mortgage Bonds is
no longer required by law to be delivered in connection with sales of the Mortgage Bonds by an
Underwriter or dealer, including in circumstances where such requirement may be satisfied pursuant
to Rule 172 under the Securities Act (the “Prospectus Delivery Period”), prior to amending or
supplementing the Registration Statement, the Disclosure Package or the Prospectus (including any
amendment or supplement through incorporation by reference of any report filed under the Exchange
Act), the Company shall furnish, within a reasonable time prior to filing such amendment or
supplement, to the Representatives for review a copy of each such proposed amendment or supplement,
and the Company shall not file or use any such proposed amendment or supplement (except for any
amendment or supplement filed under the Exchange Act after the Closing Date) to which the
Representatives or counsel for the Underwriters shall reasonably object.
(c) Delivery of Registration Statements. If requested, the Company will furnish or deliver to
the Representatives and counsel for the Underwriters, without charge, copies of the Registration
Statement as originally filed and of each amendment thereto (including exhibits filed therewith or
incorporated by reference therein and documents incorporated or deemed to be incorporated by
reference therein) and copies of all consents and certificates of experts, and will also deliver to
the Representatives, without charge, a conformed copy of the Registration Statement as originally
filed and of each amendment thereto (without exhibits) for each of the Underwriters. The
Registration Statement and each amendment thereto furnished to the
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Underwriters will be identical to any electronically transmitted copies thereof filed with the
Commission pursuant to XXXXX, except to the extent permitted by Regulation S-T.
(d) Delivery of Prospectuses. The Company will deliver to each Underwriter, without charge,
as many copies of each Preliminary Prospectus as such Underwriter may reasonably request, and the
Company hereby consents to the use of such copies for purposes permitted by the Securities Act.
The Company will furnish to each Underwriter, without charge, during the Prospectus Delivery
Period, such number of copies of the Prospectus as such Underwriter may reasonably request. Each
Preliminary Prospectus and the Prospectus and any amendments or supplements thereto furnished to
the Underwriters will be identical to any electronically transmitted copies thereof filed with the
Commission pursuant to XXXXX, except to the extent permitted by Regulation S-T.
(e) Continued Compliance with Securities Laws. The Company will comply with the Securities
Act and the Exchange Act so as to permit the completion of the distribution of the Mortgage Bonds
as contemplated in this Agreement and the Prospectus. If, at any time during the Prospectus
Delivery Period, any event shall occur or condition shall exist as a result of which it is
necessary to amend the Registration Statement in order that the Registration Statement will not
contain an untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading or to amend or supplement
the Disclosure Package or the Prospectus in order that the Disclosure Package or the Prospectus, as
the case may be, will not include an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances
existing at the Initial Sale Time or at the time it is delivered or conveyed to a purchaser, not
misleading, or if it shall be necessary at any such time to amend the Registration Statement or
amend or supplement the Disclosure Package or the Prospectus in order to comply with the
requirements of the Securities Act, the Company will (1) notify the Representatives of any such
event, development or condition, (2) promptly prepare and file with the Commission, subject to
Section 3(b) hereof, such amendment or supplement as may be necessary to correct such statement or
omission or to make the Registration Statement, the Disclosure Package or the Prospectus comply
with such requirements, and (3) the Company will furnish to the Underwriters, without charge, such
number of copies of such amendment or supplement to the Disclosure Package or the Prospectus as the
Underwriters may reasonably request.
(f) Blue Sky Compliance. The Company shall cooperate with the Representatives and counsel for
the Underwriters to qualify or register the Mortgage Bonds for sale under (or obtain exemptions
from the application of) the state securities or blue sky laws of those jurisdictions designated by
the Representatives, shall comply with such laws and shall continue such qualifications,
registrations and exemptions in effect so long as required for the distribution of the Mortgage
Bonds. The Company shall not be required to qualify to transact business or to take any action
that would subject it to general service of process in any such jurisdiction where it is not
presently qualified or where it would be subject to taxation as a foreign business. The Company
will advise the Representatives promptly of the suspension of the qualification or registration of
(or any such exemption relating to) the Mortgage Bonds for offering, sale or trading in any
jurisdiction or any initiation or threat of any proceeding for any such purpose, and in the event
of the issuance of any order suspending such qualification, registration or exemption,
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the Company shall use every reasonable effort to obtain the withdrawal thereof at the earliest
possible moment.
(g) Use of Proceeds. The Company shall apply the net proceeds from the sale of the Mortgage
Bonds sold by it in the manner described under the caption “Use of Proceeds” in each of the
Disclosure Package and the Prospectus.
(h) Depositary. The Company will cooperate with the Underwriters and use every reasonable
effort to permit the Mortgage Bonds to be eligible for clearance and settlement through the
facilities of the Depositary.
(i) Periodic Reporting Obligations. During the Prospectus Delivery Period and subject to
Section 3(b) hereof, the Company shall file, on a timely basis, with the Commission all reports and
documents required to be filed under the Exchange Act.
(j) Agreement Not to Offer or Sell Additional Securities. During the period commencing on the
date hereof and ending on the Closing Date, and other than as disclosed in the Prospectus under the
caption “Description of the Bonds-Concurrent Issuances”, the Company will not, without the prior
written consent of the Representatives (which consent may be withheld at the sole discretion of the
Representatives), directly or indirectly, sell, offer, contract or grant any option to sell,
transfer or establish an open “put equivalent position” within the meaning of Rule 16a-1(h) under
the Exchange Act, or otherwise dispose of or transfer, or announce the offering of, or file any
registration statement under the Securities Act in respect of, any debt securities of the Company
similar to the Mortgage Bonds or securities exchangeable for or convertible into debt securities
similar to the Mortgage Bonds, other than as contemplated by this Agreement with respect to the
Mortgage Bonds.
(k) Final Term Sheet. The Company will prepare a final term sheet containing only a
description of the Mortgage Bonds, in substantially the form attached hereto as Exhibit B, and will
file such term sheet pursuant to Rule 433(d) under the Securities Act within the time required by
such rule (such term sheet, the “Final Term Sheet”). The Final Term Sheet is an Issuer Free
Writing Prospectus for purposes of this Agreement.
(l) Permitted Free Writing Prospectuses. The Company represents that it has not made, and
agrees that, unless it obtains the prior written consent of the Representatives, and each
Underwriter, severally and not jointly, represents that it has not made, and agrees with the
Company that, unless it obtains the prior written consent of the Company, it will not make, any
offer relating to the Mortgage Bonds that would constitute an “issuer free writing prospectus” or
that would otherwise constitute a “free writing prospectus” (as those terms are defined in Rule 405
of the Securities Act) required to be filed by the Company with the Commission or retained by the
Company under Rule 433 of the Securities Act; provided that the prior written consent of the
Representatives shall be deemed to have been given in respect of the Issuer Free Writing
Prospectuses included in Annex I hereto. Any such free writing prospectus consented to by the
Representatives is hereinafter referred to as a “Permitted Free Writing Prospectus”. The Company
agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing
Prospectus as an Issuer Free Writing Prospectus, and (ii) has complied and will comply, as the case
may be, with the requirements of Rules 164 and 433 of the Securities Act applicable
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to any Permitted Free Writing Prospectus, including in respect of timely filing with the
Commission, legending and record keeping.
(m) Filing Fees. The Company agrees to pay the required Commission filing fees relating to
the Mortgage Bonds within the time required by Rule 456(b)(1) of the Securities Act without regard
to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r) of the Securities
Act.
(n) No Manipulation of Price. The Company will not take, directly or indirectly, any action
designed to cause or result in, or that has constituted or might reasonably be expected to
constitute, under the Exchange Act or otherwise, the stabilization or manipulation of the price of
any securities of the Company to facilitate the sale or resale of the Mortgage Bonds.
(o) Earning Statement. The Company will make generally available to the Company’s security
holders and to the Representatives as soon as practicable an earning statement covering a period of
at least twelve months beginning with the first fiscal quarter of the Company occurring after the
date of this Agreement that will satisfy the provisions of Section 11(a) of the Securities Act.
The Representatives, on behalf of the several Underwriters, may, in their sole discretion,
waive in writing the performance by the Company of any one or more of the foregoing covenants or
extend the time for their performance.
Section 4. Payment of Expenses. The Company agrees to pay all costs, fees
and expenses incurred in connection with the performance of its obligations hereunder and in
connection with the transactions contemplated hereby, including without limitation (i) all expenses
incident to the issuance and delivery of the Mortgage Bonds (including all printing and engraving
costs), (ii) all necessary issue, transfer and other stamp taxes in connection with the issuance
and sale of the Mortgage Bonds to the Underwriters, (iii) all fees and expenses of the Company’s
counsel, independent public or certified public accountants and other advisors to the Company, (iv)
all costs and expenses incurred in connection with the preparation, printing, filing, shipping and
distribution of the Registration Statement (including financial statements, exhibits, schedules,
consents and certificates of experts), each Issuer Free Writing Prospectus, each Preliminary
Prospectus and the Prospectus, and all amendments and supplements thereto, and this Agreement, the
Mortgage Indenture, the DTC Agreement and the Mortgage Bonds, (v) all filing fees, reasonable
attorneys’ fees and expenses incurred by the Company or the Underwriters in connection with
qualifying or registering (or obtaining exemptions from the qualification or registration of) all
or any part of the Mortgage Bonds for offer and sale under the state securities or blue sky laws,
and, if requested by the Representatives, preparing a “Blue Sky Survey” or memorandum, and any
supplements thereto, advising the Underwriters of such qualifications, registrations and
exemptions, (vi) the filing fees incident to, and the reasonable fees and disbursements of counsel
to the Underwriters in connection with, the review, if any, by the Financial Industry Regulatory
Authority (“FINRA”) of the terms of the sale of the Mortgage Bonds, (vii) the fees and expenses of
the Trustee, including the reasonable fees and disbursements of counsel for the Trustee in
connection with the Mortgage Indenture and the Mortgage Bonds, (viii) any fees payable in
connection with the rating of the Mortgage Bonds with the ratings agencies, (ix) all fees and
expenses (including reasonable fees and expenses of
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counsel) of the Company in connection with approval of the Mortgage Bonds by the Depositary
for “book-entry” transfer, (x) all other fees, costs and expenses referred to in Item 14 of Part II
of the Registration Statement, (xi) all reasonable out-of-pocket expenses by the Representatives
with respect to any roadshow, including expenses relating to slide production, internet roadshow
taping and travel, and (xii) all other fees, costs and expenses incurred in connection with the
performance of its obligations hereunder for which provision is not otherwise made in this Section
4. Except as provided in this Section 4, Section 6 and Section 7 hereof, the Underwriters shall
pay their own expenses, including the fees and disbursements of their counsel.
Section 5. Conditions of the Obligations of the Underwriters. The
obligations of the several Underwriters to purchase and pay for the Mortgage Bonds as provided
herein on the Closing Date shall be subject to the accuracy of the representations and warranties
on the part of the Company set forth in Section 1 hereof as of each Representation Date as though
then made and to the timely performance by the Company of its covenants and other obligations
hereunder, and to each of the following additional conditions:
(a) Effectiveness of Registration Statement. The Registration Statement shall remain
effective under the Securities Act and no stop order suspending the effectiveness of the
Registration Statement shall have been issued under the Securities Act and no proceedings for that
purpose shall have been instituted or be pending or threatened by the Commission, any request on
the part of the Commission for additional information shall have been complied with to the
reasonable satisfaction of counsel to the Underwriters.
(b) Filings under Rule 424 and Rule 433. For the period from the Execution Time to the Closing
Date:
(i) the Company shall have filed any Preliminary Prospectus not previously
filed and the Prospectus with the Commission (including the information required by
Rule 430B under the Securities Act) in the manner and within the time period
required by Rule 424(b) under the Securities Act; or the Company shall have filed a
post-effective amendment to the Registration Statement containing the information
required by such Rule 430B, and such post-effective amendment shall have become
effective; and
(ii) the Final Term Sheet, and any other material required to be filed by the
Company pursuant to Rule 433(d) under the Securities Act, shall have been filed with
the Commission within the applicable time periods prescribed for such filings under
such Rule 433.
(c) Accountants’ Comfort Letter. On the date hereof, the Representatives shall have received
from Deloitte & Touche LLP, independent public or certified public accountants for the Company, a
letter dated the date hereof addressed to the Underwriters, in form and substance satisfactory to
the Representatives with respect to the audited and unaudited consolidated financial statements and
certain financial information of the Company included or incorporated in the Registration
Statement, any Preliminary Prospectus and the Prospectus.
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(d) Bring-down Comfort Letter. On the Closing Date, the Representatives shall have received
from Deloitte & Touche LLP, independent public or certified public accountants for the Company, a
letter dated such date, in form and substance satisfactory to the Representatives, to the effect
that they reaffirm the statements made in the letter furnished by them pursuant to subsection (c)
of this Section 5, except that the specified date referred to therein for the carrying out of
procedures shall be no more than three business days prior to the Closing Date.
(e) No Material Adverse Change or Ratings Agency Change. For the period from the Execution
Time to the Closing Date:
(i) in the reasonable judgment of the Representatives, there shall not have occurred
any Material Adverse Change, except as reflected in or contemplated by the Disclosure
Package; and
(ii) there shall not have occurred any downgrading, nor shall any notice have been
given of any intended or potential downgrading or of any review for a possible change that
does not indicate the direction of the possible change, in the rating accorded any
securities of the Company or any of the Subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436(g)(2)
under the Securities Act.
(f) Opinion of Counsel for the Company. On the Closing Date, the Representatives shall have
received the favorable opinions of (i) Xxxxx & XxXxxxx LLP, counsel for the Company, dated as of
such Closing Date, the form of which is attached as Exhibit A-1, and (ii) Xxxx Xxxxxxx, the
Assistant General Counsel of the Company, dated as of such Closing Date, the form of which is
attached as Exhibit A-2.
(g) Opinion of Counsel for the Underwriters. On the Closing Date, the Representatives shall
have received the favorable opinion of Xxxxx Xxxx & Xxxxxxxx, counsel for the Underwriters, dated
as of such Closing Date, with respect to such matters as may be reasonably requested by the
Underwriters.
(h) Officers’ Certificate. On the Closing Date, the Representatives shall have received a
written certificate executed by the Chief Executive Officer, President or a Vice President of the
Company and the Chief Financial Officer or Chief Accounting Officer of the Company, dated as of
such Closing Date, to the effect that, to the best of their knowledge after reasonable
investigation:
(i) the Company has received no stop order suspending the effectiveness of the
Registration Statement, and no proceedings for such purpose have been instituted or
threatened by the Commission;
(ii) there has not occurred any downgrading, and the Company has not received any
notice of any intended or potential downgrading or of any review for a possible change that
does not indicate the direction of the possible change, in the rating accorded any
securities of the Company or any of the Subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule 436(g)(2)
under the Securities Act;
17
(iii) for the period from the Execution Time to the Closing Date, there has not
occurred any Material Adverse Change;
(iv) the representations, warranties and covenants of the Company set forth in Section
1 of this Agreement are true and correct with the same force and effect as though expressly
made on and as of such Closing Date; and
(v) the Company has complied with all the agreements hereunder and satisfied all the
conditions on its part to be performed or satisfied hereunder at or prior to such Closing
Date.
(i) Recordation of the Twelfth Supplemental Indenture. The Company shall have caused the
Twelfth Supplemental Indenture to be recorded in offices of the Secretary of State in the States of
Kansas and Missouri and in the office of the Register of Deeds for the County of Franklin, Kansas,
which are the only recordations required in order to give constructive notice of, establish,
preserve and protect the lien of the Mortgage Indenture on all properties of the Company of every
kind described in and purported to be conveyed by the Mortgage Indenture.
(j) Additional Documents. On or before the Closing Date, the Representatives and counsel for
the Underwriters shall have received such information, documents and opinions as they may
reasonably require for the purposes of enabling them to pass upon the issuance and sale of the
Mortgage Bonds as contemplated herein, or in order to evidence the accuracy of any of the
representations and warranties, or the satisfaction of any of the conditions or agreements, herein
contained.
If any condition specified in this Section 5 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Representatives by notice to the Company at any
time on or prior to the Closing Date, which termination shall be without liability on the part of
any party to any other party, except that Section 4, Section 6, Section 7 and Section 15 hereof
shall at all times be effective and shall survive such termination.
Section 6. Indemnification.
(a) Indemnification of the Underwriters. The Company agrees to indemnify and hold harmless
each Underwriter, its directors, officers, employees and agents, and each person, if any, who
controls any Underwriter within the meaning of the Securities Act and the Exchange Act against any
loss, claim, damage, liability or expense, as incurred, to which such Underwriter, director,
officer, employee, agent or controlling person may become subject, insofar as such loss, claim,
damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or
is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement, or any amendment or supplement thereto, including any information
deemed to be a part thereof pursuant to Rule 430B under the Securities Act, or the omission or
alleged omission therefrom of a material fact required to be stated therein or necessary to make
the statements therein not misleading; or (ii) any untrue statement or alleged untrue statement of
a material fact included in any Preliminary Prospectus, any Issuer Free Writing Prospectus or the
Prospectus (or any amendment or supplement thereto), or the omission or alleged omission therefrom
of a material fact necessary in order to make the statements
18
therein, in the light of the circumstances under which they were made, not misleading; and to
reimburse each Underwriter, its officers, directors, employees, agents and controlling persons for
any and all expenses (including the reasonable fees and disbursements of counsel chosen by the
Representatives) as such expenses are reasonably incurred by such Underwriter, officer, director,
employee, agent or controlling person in connection with investigating, defending, settling,
compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage,
liability or expense to the extent, but only to the extent, arising out of or based upon any untrue
statement or alleged untrue statement or omission or alleged omission made in reliance upon and in
conformity with written information furnished to the Company by any Underwriter through the
Representatives expressly for use in the Registration Statement, any Preliminary Prospectus, any
Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto). The
indemnity agreement set forth in this Section 6(a) shall be in addition to any liabilities that the
Company may otherwise have.
(b) Indemnification of the Company, its Directors and Officers. Each Underwriter agrees,
severally and not jointly, to indemnify and hold harmless the Company, its directors, its officers
who signed the Registration Statement and each person, if any, who controls the Company within the
meaning of the Securities Act or the Exchange Act, against any loss, claim, damage, liability or
expense, as incurred, to which the Company, or any such director, officer or controlling person may
become subject, insofar as such loss, claim, damage, liability or expense (or actions in respect
thereof as contemplated below) arises out of or is based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in the Registration Statement, or any amendment or
supplement thereto, or the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading; or (ii) any untrue
statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus,
any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement thereto), or
the omission or alleged omission therefrom of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading,
in each case to the extent, and only to the extent, that such untrue statement or alleged untrue
statement or omission or alleged omission was made in the Registration Statement, such Preliminary
Prospectus, such Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement
thereto), in reliance upon and in conformity with written information furnished to the Company by
any Underwriter through the Representatives expressly for use therein; and to reimburse the
Company, such director, officer or controlling person for any and all expenses (including the
reasonable fees and disbursements of counsel chosen by the Company) as such expenses are reasonably
incurred by the Company, such director, officer or controlling person in connection with
investigating, defending, settling, compromising or paying any such loss, claim, damage, liability,
expense or action. The Company hereby acknowledges that the only information that the Underwriters
have furnished to the Company expressly for use in the Registration Statement, any Preliminary
Prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement
thereto) are the statements set forth in the third paragraph, the third sentence of the sixth
paragraph and the seventh paragraph under the caption “Underwriting” in the Prospectus. The
indemnity agreement set forth in this Section 6(b) shall be in addition to any liabilities that
each Underwriter may otherwise have.
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(c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 6 of notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against an indemnifying party
under this Section 6, notify the indemnifying party in writing of the commencement thereof; but the
failure to so 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
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 liability other than the
indemnification obligation provided in paragraph (a) or (b) above. In case any such action is
brought against any indemnified party and such indemnified party seeks or intends to seek indemnity
from an indemnifying party, the indemnifying party will be entitled to participate in, and, to the
extent that it shall elect, jointly with all other indemnifying parties similarly notified, by
written notice delivered to the indemnified party promptly after receiving the aforesaid notice
from such indemnified party, to assume the defense thereof with counsel satisfactory to such
indemnified party; provided, however, such indemnified party shall have the right to employ its own
counsel in any such action and to participate in the defense thereof, but the fees and expenses of
such counsel shall be at the expense of such indemnified party, unless: (i) the employment of such
counsel has been specifically authorized by the indemnifying party; (ii) the indemnifying party has
failed promptly to assume the defense and employ counsel reasonably satisfactory to the indemnified
party; or (iii) the named parties to any such action (including any impleaded parties) include both
such indemnified party and the indemnifying party or any affiliate of the indemnifying party, and
such indemnified party shall have reasonably concluded that either (x) there may be one or more
legal defenses available to it which are different from or additional to those available to the
indemnifying party or such affiliate of the indemnifying party or (y) a conflict may exist between
such indemnified party and the indemnifying party or such affiliate of the indemnifying party (it
being understood, however, that the indemnifying party shall not, in connection with any one such
action or separate but substantially similar or related actions in the same jurisdiction arising
out of the same general allegations or circumstances, be liable for the fees and expenses of more
than one separate firm of attorneys (in addition to a single firm of local counsel) for all such
indemnified parties, which firm shall be designated in writing by (i) the Representatives, in the
case of indemnification pursuant to Section 6(a) hereof, or (ii) the Company, in the case of
indemnification pursuant to Section 6(b) hereof, and that all such reasonable fees and expenses
shall be reimbursed as they are incurred).
(d) Settlements. The indemnifying party under this Section 6 shall not be liable for any
settlement of any proceeding effected without its written consent, but if settled with such consent
or if there is a final judgment for the plaintiff, the indemnifying party agrees to indemnify the
indemnified party against any loss, claim, damage, liability or expense by reason of such
settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel as contemplated by Section 6(c) hereof, the indemnifying party agrees that it
shall be liable for any settlement of any proceeding effected without its written consent if (i)
such settlement is entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed the indemnified party in accordance with such request prior to the
date of such settlement. No indemnifying party shall, without the prior written consent of the
20
indemnified party, effect any settlement, compromise or consent to the entry of judgment in
any pending or threatened action, suit or proceeding in respect of which any indemnified party is
or could have been a party and indemnity was or could have been sought hereunder by such
indemnified party, unless such settlement, compromise or consent (i) includes an unconditional
release of such indemnified party from all liability on claims that are the subject matter of such
action, suit or proceeding and (ii) does not include a statement as to or an admission of fault,
culpability or a failure to act, by or on behalf of any indemnified party.
Section 7. Contribution. If the indemnification provided for in Section 6
hereof is for any reason unavailable to or otherwise insufficient to hold harmless an indemnified
party in respect of any losses, claims, damages, liabilities or expenses referred to therein, then
each indemnifying party shall contribute to the aggregate amount paid or payable by such
indemnified party, as incurred, as a result of any losses, claims, damages, liabilities or expenses
referred to therein (i) in such proportion as is appropriate to reflect the relative benefits
received by the Company, on the one hand, and the Underwriters, on the other hand, from the
offering of the Mortgage Bonds pursuant to this Agreement or (ii) if the allocation provided by
clause (i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the relative fault
of the Company, on the one hand, and the Underwriters, on the other hand, in connection with the
statements or omissions which resulted in such losses, claims, damages, liabilities or expenses, as
well as any other relevant equitable considerations. The relative benefits received by the
Company, on the one hand, and the Underwriters, on the other hand, in connection with the offering
of the Mortgage Bonds pursuant to this Agreement shall be deemed to be in the same respective
proportions as the total net proceeds from the offering of the Mortgage Bonds pursuant to this
Agreement (before deducting expenses) received by the Company, and the total underwriting discount
received by the Underwriters, in each case as set forth on the front cover page of the Prospectus
bear to the aggregate initial public offering price of the Mortgage Bonds as set forth on such
cover. The relative fault of the Company, on the one hand, and the Underwriters, on the other
hand, shall be determined by reference to, among other things, whether any such untrue or alleged
untrue statement of a material fact or omission or alleged omission to state a material fact
relates to information supplied by the Company, on the one hand, or the Underwriters, on the other
hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission.
The amount paid or payable by a party as a result of the losses, claims, damages, liabilities
and expenses referred to above shall be deemed to include, subject to the limitations set forth in
Section 6(c) hereof, any legal or other fees or expenses reasonably incurred by such party in
connection with investigating or defending any action or claim. The provisions set forth in
Section 6(c) hereof with respect to notice of commencement of any action shall apply if a claim for
contribution is to be made under this Section 7; provided, however, that no additional notice shall
be required with respect to any action for which notice has been given under Section 6(c) hereof
for purposes of indemnification.
The Company and the Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 7 were determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to in this Section 7.
21
Notwithstanding the provisions of this Section 7, no Underwriter shall be required to
contribute any amount in excess of the underwriting discount received by such Underwriter in
connection with the Mortgage Bonds underwritten by it and distributed to the public. No person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation. The Underwriters’ obligations to contribute pursuant to this Section 7 are
several, and not joint, in proportion to their respective underwriting commitments as set forth
opposite their names in Schedule A. For purposes of this Section 7, each director, officer,
employee and agent of an Underwriter and each person, if any, who controls an Underwriter within
the meaning of the Securities Act and the Exchange Act shall have the same rights to contribution
as such Underwriter, and each director of the Company, each officer of the Company who signed the
Registration Statement and each person, if any, who controls the Company within the meaning of the
Securities Act and the Exchange Act shall have the same rights to contribution as the Company.
Section 8. Default of One or More of the Several Underwriters. If, on the
Closing Date, any one or more of the several Underwriters shall fail or refuse to purchase Mortgage
Bonds that it or they have agreed to purchase hereunder on such date, and the aggregate principal
amount of Mortgage Bonds, which such defaulting Underwriter or Underwriters agreed but failed or
refused to purchase does not exceed 10% of the aggregate principal amount of the Mortgage Bonds, to
be purchased on such date, the other Underwriters shall be obligated, severally, in the proportion
to the aggregate principal amounts of such Mortgage Bonds set forth opposite their respective names
on Schedule A bears to the aggregate principal amount of such Mortgage Bonds set forth opposite the
names of all such non-defaulting Underwriters, or in such other proportions as may be specified by
the Representatives with the consent of the non-defaulting Underwriters, to purchase such Mortgage
Bonds which such defaulting Underwriter or Underwriters agreed but failed or refused to purchase on
such date. If, on the Closing Date, any one or more of the Underwriters shall fail or refuse to
purchase such Mortgage Bonds and the aggregate principal amount of such Mortgage Bonds with respect
to which such default occurs exceeds 10% of the aggregate principal amount of Mortgage Bonds to be
purchased on such date, and arrangements satisfactory to the Representatives and the Company for
the purchase of such Mortgage Bonds are not made within 48 hours after such default, this Agreement
shall terminate without liability of any party to any other party except that the provisions of
Section 4, Section 6, Section 7 and Section 15 hereof shall at all times be effective and shall
survive such termination. In any such case, either the Representatives or the Company shall have
the right to postpone the Closing Date, but in no event for longer than seven days in order that
the required changes, if any, to the Registration Statement, each Issuer Free Writing Prospectus,
each Preliminary Prospectus or the Prospectus or any other documents or arrangements may be
effected.
As used in this Agreement, the term “Underwriter” shall be deemed to include any person
substituted for a defaulting Underwriter under this Section 8. Any action taken under this Section
8 shall not relieve any defaulting Underwriter from liability in respect of any default of such
Underwriter under this Agreement.
Section 9. Termination of this Agreement. Prior to the Closing Date, this
Agreement may be terminated by the Representatives by notice given to the Company if at any time
(i)
22
trading or quotation in any of the Company’s securities shall have been suspended or
materially limited by the New York Stock Exchange or the Commission, or trading in securities
generally on the NASDAQ Global Market or the New York Stock Exchange shall have been suspended or
materially limited, or minimum or maximum prices shall have been generally established on either of
such stock exchanges by the Commission or FINRA; (ii) a general banking moratorium shall have been
declared by any of federal or New York authorities; (iii) there shall have occurred any outbreak or
escalation of national or international hostilities or any crisis or calamity, or any material
adverse change in the United States or international financial markets, or any change or
development involving a prospective substantial change in United States’ or international
political, financial or economic conditions, as in the judgment of the Representatives makes it
impracticable or inadvisable to proceed with the offering, sale or delivery of the Mortgage Bonds
in the manner and on the terms described in the Disclosure Package or the Prospectus or to enforce
contracts for the sale of securities; (iv) in the reasonable judgment of the Representatives, there
shall have occurred any Material Adverse Change; or (v) there shall have occurred a material
disruption in commercial banking or securities settlement or clearance services in the United
States. Any termination pursuant to this Section 9 shall be without liability on the part of (a)
the Company to any Underwriter, except that the Company shall be obligated to reimburse the
expenses of the Representatives and the Underwriters pursuant to Section 4 hereof, (b) any
Underwriter to the Company, or (c) any party hereto to any other party except that the provisions
of Section 6, Section 7 and Section 15 hereof shall at all times be effective and shall survive
such termination.
Section 10. No Fiduciary Duty. No Advisory or Fiduciary Responsibility.
The Company acknowledges and agrees that: (i) the purchase and sale of the Mortgage Bonds pursuant
to this Agreement, including the determination of the public offering price of the Mortgage Bonds
and any related discounts and commissions, is an arm’s-length commercial transaction between the
Company, on the one hand, and the several Underwriters, on the other hand; (ii) in connection with
the offering contemplated hereby and the process leading to such transaction each Underwriter is
and has been acting solely as a principal and is not the financial advisor, agent or fiduciary of
the Company or its affiliates, stockholders, creditors or employees or any other party; (iii) no
Underwriter has assumed or will assume an advisory, agency or fiduciary responsibility in favor of
the Company with respect to the offering contemplated hereby or the process leading thereto
(irrespective of whether such Underwriter has advised or is currently advising the Company on other
matters) and no Underwriter has any obligation to the Company with respect to the offering
contemplated hereby except the obligations expressly set forth in this Agreement; (iv) the several
Underwriters and their respective affiliates may be engaged in a broad range of transactions that
involve interests that differ from those of the Company; and (v) the Underwriters have not provided
any legal, accounting, regulatory or tax advice with respect to the offering contemplated hereby
and the Company has consulted its own legal, accounting, regulatory and tax advisors to the extent
it deemed appropriate.
The Company hereby waives and releases, to the fullest extent permitted by law, any claims
that the Company may have against the several Underwriters with respect to any breach or alleged
breach of agency or fiduciary duty.
Section 11. Representations and Indemnities to Survive Delivery. The
respective indemnities, agreements, representations, warranties and other statements of the
Company, of its
23
officers and of the several Underwriters set forth in or made pursuant to this Agreement (i)
will remain operative and in full force and effect, regardless of (A) any investigation, or
statement as to the results thereof, made by or on behalf of any Underwriter, the officers or
employees of any Underwriter, or any person controlling the Underwriter, or the Company, the
officers or employees of the Company, or any person controlling the Company, as the case may be or
(B) acceptance of the Mortgage Bonds and payment for them hereunder and (ii) will survive delivery
of and payment for the Mortgage Bonds sold hereunder and any termination of this Agreement.
Section 12. Notices. All communications hereunder shall be in writing and
shall be mailed, hand delivered or faxed and confirmed to the parties hereto as follows:
If to the Representatives:
Banc of America Securities LLC
Xxx Xxxxxx Xxxx
XX0-100-18-03
New York, NY 10036
Facsimile: (000) 000-0000
Attention: High Grade Transaction Management/Legal;
Xxx Xxxxxx Xxxx
XX0-100-18-03
New York, NY 10036
Facsimile: (000) 000-0000
Attention: High Grade Transaction Management/Legal;
BNP Paribas Securities Corp.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Syndicate Desk
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Syndicate Desk
and
X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Investment Grade Syndicate Desk
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Investment Grade Syndicate Desk
with a copy to:
Xxxxx Xxxx & Xxxxxxxx
0000 Xx Xxxxxx Xxxx
Xxxxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxx Xxxxxx
0000 Xx Xxxxxx Xxxx
Xxxxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxx Xxxxxx
24
If to the Company:
Kansas City Power & Light Company
0000 Xxxxxx Xxxxxx
Xxxxxx Xxxx, Xxxxxxxx 00000-0000
Facsimile: (000) 000-0000
Attention: Xxxx Xxxxxxx
0000 Xxxxxx Xxxxxx
Xxxxxx Xxxx, Xxxxxxxx 00000-0000
Facsimile: (000) 000-0000
Attention: Xxxx Xxxxxxx
with a copy to:
Xxxxx & XxXxxxx LLP
0000 Xxxxxx xx Xxxxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxx X’Xxxxx
0000 Xxxxxx xx Xxxxxxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxxxx X’Xxxxx
Any party hereto may change the address for receipt of communications by giving written notice
to the others.
Section 13. Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto, including any substitute Underwriters pursuant to Section 8
hereof, and to the benefit of the directors, officers, employees, agents and controlling persons
referred to in Sections 6 and 7 hereof, and in each case their respective successors and assigns,
and no other person will have any right or obligation hereunder. The term “successors and assigns”
shall not include any purchaser of the Mortgage Bonds as such from any of the Underwriters merely
by reason of such purchase.
Section 14. Partial Unenforceability. The invalidity or unenforceability of
any Section, paragraph or provision of this Agreement shall not affect the validity or
enforceability of any other Section, paragraph or provision hereof. If any Section, paragraph or
provision of this Agreement is for any reason determined to be invalid or unenforceable, there
shall be deemed to be made such minor changes (and only such minor changes) as are necessary to
make it valid and enforceable.
Section 15. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY,
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE.
Section 16. General Provisions. This Agreement constitutes the entire
agreement of the parties to this Agreement and supersedes all prior written or oral and all
contemporaneous oral agreements, understandings and negotiations with respect to the subject matter
hereof. This Agreement may be executed in two or more counterparts, each one of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same
instrument. This Agreement may not be amended or modified unless in writing by all of the parties
hereto, and no condition herein (express or implied) may be waived unless waived in writing by each
party
25
whom the condition is meant to benefit. The Section headings herein are for the convenience
of the parties only and shall not affect the construction or interpretation of this Agreement.
Each of the parties hereto acknowledges that it is a sophisticated business person who was
adequately represented by counsel during negotiations regarding the provisions hereof, including,
without limitation, the indemnification provisions of Section 6 hereof and the contribution
provisions of Section 7 hereof, and is fully informed regarding said provisions. Each of the
parties hereto further acknowledges that the provisions of Sections 6 and 7 hereof fairly allocate
the risks in light of the ability of the parties to investigate the Company, its affairs and its
business in order to assure that adequate disclosure has been made in the Registration Statement,
the Disclosure Package and the Prospectus (and any amendments and supplements thereto), as required
by the Securities Act and the Exchange Act.
26
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Company the enclosed copies hereof, whereupon this instrument, along with all
counterparts hereof, shall become a binding agreement in accordance with its terms.
Very truly yours, KANSAS CITY POWER & LIGHT COMPANY |
||||
By: | /s/ Xxxxx Xxxxxxx | |||
Xxxxx Xxxxxxx | ||||
Executive Vice President - Finance and Strategic Development and Chief Financial Officer |
27
The foregoing Underwriting Agreement is hereby confirmed and accepted by the Representatives
as of the date first above written.
BANC OF AMERICA SECURITIES LLC
BNP PARIBAS SECURITIES CORP.
X.X. XXXXXX SECURITIES INC.
BNP PARIBAS SECURITIES CORP.
X.X. XXXXXX SECURITIES INC.
Acting as Representatives of the
several Underwriters named in
the attached Schedule A.
several Underwriters named in
the attached Schedule A.
By:
|
Banc of America Securities LLC | |||
By:
|
/s/ Xxxxx X. Xxxxxxx
Title: Vice President |
|||
By:
|
BNP Paribas Securities Corp. | |||
By:
|
/s/ Xxx Xxxxxx
|
|||
Title: Managing Director | ||||
By:
|
X.X. Xxxxxx Securities Inc. | |||
By:
|
/s/ Xxxxxx Xxxxxxxxx | |||
Name: Xxxxxx Xxxxxxxxx Title: Vice President |
28
SCHEDULE A
Aggregate | ||||
Principal | ||||
Amount of | ||||
Mortgage | ||||
Bonds to be | ||||
Underwriters | Purchased | |||
Banc of America Securities LLC |
$ | 104,667,000 | ||
BNP Paribas Securities Corp. |
$ | 104,667,000 | ||
X.X. Xxxxxx Securities Inc. |
$ | 104,666,000 | ||
Mitsubishi UFJ Securities (USA), Inc. |
$ | 44,000,000 | ||
BNY Mellon Capital Markets, LLC |
$ | 21,000,000 | ||
Wachovia Capital Markets, LLC |
$ | 21,000,000 | ||
Total |
$ | 400,000,000 |
Schedule A
ANNEX I
LIST OF ISSUER FREE WRITING PROSPECTUSES
1. | Final Term Sheet dated March 19, 2009 |
ANNEX I
EXHIBIT A-1
FORM OF OPINION OF ISSUER’S COUNSEL
March __, 2009
Banc of America Securities LLC
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000;
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000;
BNP Paribas Securities Corp.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
As Representatives of the several Underwriters
KANSAS CITY POWER & LIGHT COMPANY
7.15% Mortgage Bonds, Series 2009A due 2019
7.15% Mortgage Bonds, Series 2009A due 2019
Ladies and Gentlemen:
We have served as special counsel for Kansas City Power & Light Company, a Missouri
corporation (the “Company”) in connection with (i) the issuance and sale by the Company of
$400,000,000 aggregate principal amount of its 7.15% Mortgage Bonds, Series 2009A due 2019 (the
“Mortgage Bonds”) pursuant to and secured by the General Mortgage Indenture and Deed of Trust dated
as of December 1, 1986 between the Company and UMB Bank, N.A. (formerly United Missouri Bank of
Kansas City, N.A.), as trustee (the “Trustee”), as amended and supplemented by eleven indentures
supplemental thereto (such Mortgage and Deed of Trust, as heretofore amended and supplemented, the
“Base Mortgage Indenture”) and as amended and supplemented by a twelfth supplemental indenture
thereto, dated as of March 1, 2009 between the Company and the Trustee (the “Twelfth Supplemental
Indenture”, together with the Base Mortgage Indenture, the “Mortgage Indenture”); and (ii) the
purchase by the Underwriters (as defined herein) of the Mortgage Bonds pursuant to the terms of an
Underwriting Agreement dated March 19, 2009 (the “Underwriting Agreement”), among the Company and
the Underwriters named in Schedule A thereto (the “Underwriters”) for whom you are acting as
representatives (the “Representatives”). This opinion is being delivered to you as Representatives
pursuant to Section 5(f)(i) thereof.
All capitalized terms not otherwise defined herein shall have the meanings set forth in the
Underwriting Agreement.
A-1-1
In rendering the opinions expressed below, we have examined the registration statement on Form
S-3 (File No. 333-148136) pertaining to the Mortgage Bonds and certain other securities filed by
the Company under the Securities Act of 1933, as amended (the “Act”), including the Annual Report
on Form 10-K of the Company for the fiscal year ended December 31, 2008 and the Current Reports on
Form 8-K of the Company dated February 10, 2009 (as to Item 8.01), March 6, 2009 and March 18, 2009
(as to Item 8.01) (such reports, collectively, the “Incorporated Documents”), each as filed under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and incorporated by reference
in the registration statement (the “Registration Statement”); the Company’s prospectus dated March
5, 2008 (the “Base Prospectus”) as supplemented by a preliminary prospectus supplement dated March
19, 2009 (collectively, the “Preliminary Prospectus”), filed by the Company pursuant to Rule 424(b)
of the rules and regulations of the Securities and Exchange Commission (the “Commission”) under the
Act, which, pursuant to Form S-3, incorporates by reference the Incorporated Documents, and a
prospectus supplement dated March ___, 2009 (together with the Base Prospectus, the “Prospectus”),
filed by the Company pursuant to Rule 424(b) of the rules and regulations of the Commission under
the Act, which, pursuant to Form S-3, incorporates by reference the Incorporated Documents; and the
Mortgage Indenture. We have also examined the free writing prospectus prepared by the Company and
filed with the Commission on March 19, 2009 pursuant to Rule 433 of the Act (the “Final Term
Sheet”).
We have assumed that the agreements and instruments referred to in this opinion have been duly
authorized, executed and delivered by the parties thereto. In addition, we have examined, and have
relied as to matters of fact upon, the documents delivered to you at the closing (except the
certificate representing the Mortgage Bonds, of which we have examined a specimen), and we have
made such other and further investigations as we deemed necessary to express the opinions
hereinafter set forth. As to various questions of fact relevant to the opinions set forth below,
we have relied upon certificates of public officials and officers of the Company, representations
of the Company in the Underwriting Agreement and other oral and written assurances by the officers
or other employees of the Company. In such examination, we have assumed the genuineness of all
signatures, the legal capacity of natural persons, the authenticity of all documents submitted to
us as originals, the conformity to original documents of all documents submitted to us as certified
or photostatic copies and the authenticity of the originals of such latter documents.
In rendering the opinion set forth in numbered paragraph 8 below, we have relied as to all
factual matters exclusively on a certificate, dated the date of this letter, of Xxxxx Xxxxxxx,
Executive Vice President—Finance and Strategic Development and Chief Financial Officer of the
Company, and assumed that the certifications contained therein will be true and correct as of the
time of the application of the proceeds of the Mortgage Bonds.
Based upon the foregoing, and subject to the qualifications and limitations stated herein, we
are of the opinion that:
1. The Registration Statement has become effective under the Act; each of the Preliminary
Prospectus and the Prospectus has been filed pursuant to Rule 424(b) in accordance with Rule
424(b); the Final Term Sheet has been filed pursuant to Rule 433 in accordance with Rule 433; and,
to our knowledge, no stop order suspending the effectiveness of the Registration
A-1-2
Statement is in effect nor are any proceedings for such purpose pending before or threatened
by the Commission.
2. The Registration Statement (other than the financial statements, financial data,
statistical data and supporting schedules included therein or omitted therefrom and other than the
documents incorporated by reference therein, as to none of which we express any opinion pursuant to
this paragraph 2), as of the date of the Underwriting Agreement, and the Preliminary Prospectus
(other than the financial statements, financial data, statistical data and supporting schedules
included therein or omitted therefrom and other than the documents incorporated by reference
therein, as to none of which we express any opinion pursuant to this paragraph 2), at the Initial
Sale Time, and the Prospectus (other than the financial statements, financial data, statistical
data and supporting schedules included therein or omitted therefrom and other than the documents
incorporated by reference therein, as to none of which we express any opinion pursuant to this
paragraph 2), as of the date of the Prospectus Supplement and as of the date hereof, appear on
their face to have complied as to form in all material respects with the requirements of the Trust
Indenture Act of 1939, as amended (the “Trust Indenture Act”), the Act and the rules and
regulations of the Commission promulgated thereunder.
3. The documents incorporated by reference in the Preliminary Prospectus and the Prospectus
(other than the financial statements, financial data, statistical data and supporting schedules
included therein or omitted therefrom, as to which we express no opinion), at the respective times
such documents were filed with the Commission, appear on their face to have complied as to form in
all material respects with the applicable requirements of the Exchange Act and the rules and
regulations of the Commission promulgated thereunder.
4. The Mortgage Indenture has been duly qualified under the Trust Indenture Act.
5. The execution, delivery and performance by the Company of the Underwriting Agreement, the
Mortgage Indenture and the Mortgage Bonds and the consummation by the Company of the transactions
contemplated thereby (including the issuance and sale of the Mortgage Bonds and the use of the
proceeds from the sale of the Mortgage Bonds as described in the Disclosure Package and in the
Prospectus under the caption “Use of Proceeds”) and compliance by the Company with its obligations
under the Underwriting Agreement, the Mortgage Indenture and the Mortgage Bonds do not and will not
violate any current provision of New York law that in our experience and without independent
investigation, is normally applicable to transactions of the type contemplated by the Underwriting
Agreement and the Mortgage Indenture (provided no opinion is expressed with respect to state
securities or blue sky laws).
6. No consent, approval, authorization or order of, or registration or filing with, any court
or other governmental or regulatory authority or agency is required under Applicable Laws for the
execution and delivery by the Company of, or the performance of the Company’s obligations under,
the Underwriting Agreement or the Mortgage Indenture, or for the issue and sale of the Mortgage
Bonds. As used in this paragraph 7, the term “Applicable Laws” means the laws of the State of New
York and the federal laws of the United States of America that, in our experience and without
independent investigation, are normally applicable to transactions of the type contemplated by the
Underwriting Agreement and the Mortgage Indenture (provided that
A-1-3
the term “Applicable Laws” shall not include federal or state securities or blue sky laws,
including, without limitation, the Act, the Exchange Act, the Trust Indenture Act and the
Investment Company Act of 1940, as amended (the “Investment Company Act”), and respective rules and
regulations thereunder).
7. The statements set forth in the Disclosure Package and the Prospectus under the headings
“Description of General Mortgage Bonds,” and “Description of the Mortgage Bonds” (insofar as such
statements purport to summarize certain provisions of the Mortgage Bonds and the Mortgage
Indenture) constitute, in all material respects, accurate summaries of the matters therein
described.
8. The Company is not, and after receipt of payment for the Mortgage Bonds and application of
the proceeds therefrom as described in the Prospectus, will not be, required to register as an
“investment company” within the meaning of the Investment Company Act.
We have not independently verified the accuracy, completeness or fairness of the statements made or
included in the Registration Statement, the Disclosure Package, the Prospectus or the Incorporated
Documents and take no responsibility therefor, except as and to the extent set forth in paragraph 8
above. We have not generally participated in the preparation of the Incorporated Documents;
however, we have reviewed such documents. In the course of the preparation by the Company of the
Registration Statement, the Disclosure Package and the Prospectus, we participated in conferences
with certain officers and employees of the Company, with representatives of the Company’s
independent registered public accountants, with representatives of the Underwriters and with
counsel to the Underwriters. Based upon our examination of the Registration Statement, the
Disclosure Package, the Prospectus and the Incorporated Documents, our investigations made in
connection with the preparation of the Registration Statement, the Disclosure Package and the
Prospectus and our participation in the conferences referred to above, our review of the records
and documents as described above and our understanding of the U.S. federal securities laws, nothing
came to our attention which gives us reason to believe (i) that any part of the Registration
Statement, as of the date of the Underwriting Agreement, contained any untrue statement of a
material fact or omitted to state any material fact required to be stated therein or necessary to
make the statements therein not misleading, (ii) that the Disclosure Package, as of the Initial
Sale Time, contained any untrue statement of a material fact or omitted 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, or (iii) that the Prospectus contained, as of the date of the
Underwriting Agreement, or contains, on the date hereof, any untrue statement of a material fact or
omitted, as of the date of the Underwriting Agreement, or omits, on the date hereof, 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, except that in each case we express no opinion or
belief with respect to the financial statements, financial data, statistical data and supporting
schedules included or incorporated or deemed to be incorporated by reference therein or omitted
therefrom.
We are members of the State Bar of New York and we do not express any opinion herein concerning any
law other than the law of the State of New York and the federal law of the United States. We do
not pass upon matters relating to the lien of the Mortgage Indenture on property now owned or
hereafter acquired by the Company, the recordation or filing of the
A-1-4
Mortgage Indenture or related financing statements or the title of the Company to its properties.
As to such matters, there is being furnished to you the above-mentioned opinions of Xxxx Xxxxxxx,
Esq.
This opinion is rendered solely to you in connection with the above matter. This opinion may not
be relied upon by you for any other purpose or relied upon by or furnished to any other person
without our prior written consent.
Very truly yours,
XXXXX & XXXXXXX LLP
A-1-5
ANNEX A
DISCLOSURE PACKAGE
1. The Preliminary Prospectus.
For purposes of determining the “Disclosure Package,” the information contained in the
foregoing documents shall be considered together.
A-1
EXHIBIT A-2
FORM OF OPINION OF COMPANY’S GENERAL COUNSEL
March ___, 2009
BANC OF AMERICA SECURITIES LLC
BNP PARIBAS SECURITIES CORP.
X.X. XXXXXX SECURITIES INC.
BNP PARIBAS SECURITIES CORP.
X.X. XXXXXX SECURITIES INC.
As Representatives of the several Underwriters
c/o Banc of America Securities LLC
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
BNP Paribas Securities Corp.
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxxxxx Xxxxxx
Xxx Xxxx, XX 00000
and
X.X. Xxxxxx Securities Inc.
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Re: | Kansas City Power & Light Company | |||
7.15% Mortgage Bonds, Series 2009A due 2019 |
Ladies and Gentlemen:
I am Assistant General Counsel and Assistant Secretary of Kansas City Power & Light Company
(the “Company”). I address this letter to you individually and as the representatives of
the several Underwriters (the “Underwriters”) named in Schedule A to the Underwriting
Agreement dated March 19, 2009 (the “Underwriting Agreement”) between you, as
representatives of the Underwriters, and the Company, with respect to the issuance and sale
pursuant thereto of $400,000,000 aggregate principal amount of the Company’s 7.15% Mortgage Bonds,
Series 2009A due 2019 (the “Mortgage Bonds”). The Mortgage Bonds are being issued
under and secured by the General Mortgage and Deed of Trust, dated as of December 1, 1986 between
the Company and UMB Bank, N.A. (formerly United Missouri Bank of Kansas City, N.A.), as trustee
(the “Trustee”), as amended and supplemented by eleven indentures supplemental thereto
(such General Mortgage and Deed of Trust, as heretofore amended and supplemented, the “Base
Mortgage Indenture”) and as amended and supplemented by a twelfth
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supplemental indenture thereto, dated as of March 1, 2009 between the Company and the Trustee
(the “Twelfth Supplemental Indenture”, together with the Base Mortgage Indenture, the
“Mortgage Indenture”).
As Assistant General Counsel and Assistant Secretary to the Company, I am generally acquainted
with the corporate organization, history and proceedings of the Company and the circumstances
surrounding the issuance of its securities from time to time, the various legislative enactments,
records, documents and regulatory actions relating thereto, the Company’s bylaws, its franchises,
permits, licenses, certificates, and powers and authorities under which it carries on its
businesses, the nature and state of its interest in its properties and its titles and rights with
respect thereto. Capitalized terms not otherwise defined herein are defined as set forth in the
Underwriting Agreement.
I am familiar with the various actions, transactions and proceedings incident to the issuance
of the Mortgage Bonds and the offering and sale thereof under the Underwriting Agreement. I have
examined, among other things: the Underwriting Agreement, the Mortgage Indenture, a specimen of the
Mortgage Bonds, the Registration Statement, the Disclosure Package and the Prospectus.
Pursuant to Section 5f(ii) of the Underwriting Agreement, this will advise you that in the
opinion of the undersigned:
(a) The Company is a validly organized and existing corporation in good standing under the
laws of the State of Missouri and is duly qualified as a foreign corporation to do business in the
State of Kansas with corporate power and authority to own, lease and operate its properties and to
conduct its business as set forth in the Disclosure Package and the Prospectus and to enter into
and perform its obligations under the Underwriting Agreement.
(b) The Underwriting Agreement has been duly authorized, executed and delivered by the
Company.
(c) The Mortgage Indenture is in due and proper form, has been duly and validly authorized by
all necessary corporate action, has been duly and validly executed and delivered, and is a valid
instrument legally binding on the Company enforceable in accordance with its terms, except as
enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting enforcement of
mortgagees’ or other creditors’ rights generally and by the effect of general principles of equity
(regardless of whether enforceability is considered in a proceeding in equity or at law); provided,
however, that certain remedial provisions of the Mortgage Indenture may not be enforceable, but
such unenforceability will not render the Mortgage Indenture invalid as a whole or affect the
judicial enforcement of (i) the obligation of the Company to repay the principal, together with the
interest thereon, as provided in the Mortgage Bonds, (ii) the acceleration of the obligation of the
Company to repay such principal, together with such interest, based upon a material default by the
Company in the payment of such principal or interest or (iii) the right of the Trustee to exercise
its right to foreclose under the Mortgage Indenture.
(d) The Mortgage Bonds are in due and proper form; the issue and sale of the
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Mortgage Bonds by the Company in accordance with the terms of the Underwriting Agreement have
been duly and validly approved by the necessary corporate action of the Company; the Mortgage Bonds
have been duly authorized, executed and delivered by the Company and, when authenticated by the
Trustee in accordance with the terms of the Mortgage Indenture and delivered against payment
therefore pursuant to the terms of the Underwriting Agreement, will constitute legal, valid and
binding obligations of the Company enforceable in accordance with their terms, secured by the lien
of and entitled to the benefits provided by the Mortgage Indenture , except as enforcement thereof
may be limited by bankruptcy, insolvency or other laws affecting enforcement of mortgagees’ or
other creditors’ rights generally and by the effect of general principles of equity (regardless of
whether enforceability is considered in a proceeding in equity or at law).
(e) Except as to property acquired subsequent to the execution and delivery of the Twelfth
Supplemental Indenture, the Company has good and sufficient title to, or a satisfactory easement
in, the Mortgaged Property, as such term is defined in the Mortgage Indenture (except such property
as may have been disposed of and/or released from the lien of the Mortgage Indenture in accordance
with the terms thereof), subject only to (i) the lien of the Mortgage Indenture, (ii) exceptions
and reservations specifically set forth therein, (iii) “Permissible Encumbrances” as therein
defined, (iv) leases and minor liens of judgments not prior to the lien of the Mortgage Indenture,
which, in my opinion, do not interfere with the Company’s business, (v) defects, irregularities and
deficiencies in titles of properties and rights-of-way which, in my opinion, do not materially
impair the use of such property and rights-of-way for the purposes for which they are held by the
Company and (vi) matters specified in the Disclosure Package and the Prospectus under “Description
of Bonds—Security and Priority”; the description in the Mortgage Indenture of said property is
adequate to constitute the mortgage lien thereon; the Mortgage Indenture, subject only to the
qualifications set forth in this paragraph (e) and to such other matters as do not materially
affect the security for the Mortgage Bonds, constitutes a valid, direct first mortgage lien on the
Mortgaged Property, which includes substantially all of the fixed property of the Company, and the
franchises and permits of the Company pertaining to the operation of said property; all property
(to the extent such property constitutes Mortgaged Property) acquired by the Company after the
execution and delivery of the Twelfth Supplemental Indenture will, upon such acquisition, become
subject to the lien of the Mortgage Indenture to the extent provided therein, subject, however, to
“Permissible Encumbrances,” to liens, if any, existing or placed thereon at the time of the
acquisition thereof by the Company and to any rights or equities of others attaching under
applicable local law in the absence of notice of the lien of the Mortgage Indenture by filing,
recordation or otherwise.
(f) The Mortgage Indenture has been duly filed for recordation and otherwise filed, indexed or
cross-indexed in such manner and in such places as is required by law in order to give constructive
notice of, establish, preserve and protect the lien of the Mortgage Indenture on the Mortgaged
Property, and all taxes payable to any state or subdivision thereof in connection with the
execution, delivery or recordation of the Mortgage Indenture or the execution, authentication,
issuance and delivery of the Mortgage Bonds and outstanding mortgage bonds have been paid.
(g) Each Subsidiary has been duly organized or formed and is validly existing as a corporation
in good standing under the laws of the jurisdiction of its incorporation, has the corporate power
and authority to own, lease and operate its properties and to conduct its business
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as described in the Disclosure Package and the Prospectus and 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
Material Adverse Change; except as otherwise disclosed in the Disclosure Package and the
Prospectus, all of the issued and outstanding shares of capital stock owned directly or indirectly
by the Company of each Subsidiary have been duly authorized and validly issued, are fully paid and
non-assessable and, to the best of my knowledge, such shares of capital stock owned by the Company,
are owned by the Company, directly or through subsidiaries, free and clear of any security
interest, mortgage, pledge, lien, encumbrance or claim; and none of the outstanding shares of
capital stock of any Subsidiary was issued in violation of preemptive or similar rights of any
securityholder of such Subsidiary.
(h) The order of the Missouri Public Service Commission authorizing the issuance of the
Mortgage Bonds by the Company and the sale of the Mortgage Bonds as contemplated by the
Underwriting Agreement has been duly entered and is still in force and effect, and no further
approval, authorization, consent, certificate or order of any state or federal commission or
regulatory authority is necessary with respect to the foregoing transactions (other than as may be
required under securities or blue sky laws of the various states, as to which I express no
opinion).
(i) The Company holds, to the extent required, valid and subsisting franchises, licenses and
permits authorizing it to carry on the regulated utility businesses in which it is engaged, in the
territories from which substantially all of the Company’s consolidated gross operating revenue is
derived, except where the failure to hold such franchises, licenses and permits would not
reasonably be expected to result in a Material Adverse Change.
(j) To the best of my knowledge, there are no legal or governmental proceedings pending or
threatened which are required to be disclosed in the Disclosure Package and the Prospectus, other
than those disclosed therein, and all pending legal or governmental proceedings to which the
Company or any of its subsidiaries is a party or of which any of their property is the subject
which are not described in the Disclosure Package and the Prospectus, including ordinary routine
litigation incidental to the business of the Company, are, considered in the aggregate, not
material to the consolidated financial condition of the Company and its subsidiaries, taken as a
whole.
(k) To the best of my knowledge, the Company is not in violation of its Restated Articles of
Consolidation, as amended, or in default in the performance or observance of any material
obligation, agreement, covenant or condition contained in any material Agreement or Instrument.
(l) The execution, delivery and performance of the Underwriting Agreement, the Mortgage
Indenture and the Mortgage Bonds and the consummation of the transactions contemplated therein
(including the issuance and sale of the Mortgage Bonds and the use of the proceeds received by the
Company from the sale of the Mortgage Bonds as described in the Disclosure Package and the
Prospectus under the caption “Use of Proceeds”) and compliance by the Company with its obligations
under the Underwriting Agreement, the Mortgage Indenture and the Mortgage Bonds do not and will not
conflict with or constitute a breach of, or default
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under, or result in the creation or imposition of any lien, charge or encumbrance (other than
the lien of the Mortgage Indenture) upon any property or assets of the Company or any Subsidiary
pursuant to any material Agreement or Instrument, or any law, administrative regulation or
administrative or court order or decree known to me to be applicable to the Company of any court or
governmental agency, authority or body or any arbitrator having jurisdiction over the Company; nor
will such action result in any violation of the provisions of the Restated Articles of
Consolidation, as amended, or by-laws of the Company.
(m) To the best of my knowledge, there are no contracts, indentures, mortgages, loan
agreements, notes, leases or other instruments or documents required to be described or referred to
in the Disclosure Package or the Prospectus or to be filed as exhibits to the Registration
Statement other than those described or referred to therein or filed or incorporated by reference
as exhibits to the Registration Statement, the descriptions thereof or references thereto are
correct in all material respects, and no default exists in the due performance or observance of any
material obligation, agreement, covenant or condition contained in any Agreement or Instrument
described, referred to, filed or incorporated by reference therein.
This opinion letter is limited to the laws of the States of Missouri and Kansas and the
federal laws of the United States of America. This opinion letter is based on the law in effect,
and the facts and circumstances existing, on the date of this letter. I assume no obligation to
update or supplement this opinion letter to reflect any facts or circumstances which may hereafter
come to my attention with respect to the opinions and statements expressed above, including any
changes in applicable law which may hereafter occur.
This opinion letter is being rendered and delivered solely to and for the benefit of the
persons to whom it is addressed; accordingly, it may not be delivered to or relied upon by any
other person, quoted or filed with any governmental authority or other regulatory agency or
otherwise circulated or utilized for any other purpose without my prior written consent.
Very truly yours, Xxxx X. English Assistant General Counsel and Assistant Secretary |
||||
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EXHIBIT B
Final Term Sheet
Kansas City Power & Light Company
7.15% Mortgage Bonds, Series 2009A due 2019
7.15% Mortgage Bonds, Series 2009A due 2019
March 19,
2009
Issuer:
|
Kansas City Power & Light Company | |
Principal Amount:
|
$400,000,000 | |
Title of Securities:
|
7.15% Mortgage Bonds, Series 2009A due 2019 | |
Maturity:
|
April 1, 2019 | |
Coupon (Interest Rate):
|
7.15% | |
Yield to Maturity:
|
7.165% | |
Benchmark Treasury:
|
2.750% due February 15, 2019 | |
Spread to Benchmark
Treasury:
|
+460 basis points | |
Benchmark Treasury Yield:
|
2.565% | |
Interest Payment Dates:
|
Semi-annually on April 1 and October 1, commencing on October 1, 2009 | |
Record Dates:
|
March 15 and September 15 | |
Price to Public:
|
99.892% of the principal amount, plus accrued interest, if any, from March 24, 2009 | |
Redemption Provision:
|
Callable at any time at a make-whole price of the greater of (i) 100% of the principal amount or (ii) discounted present value at Treasury Rate plus 50 basis points | |
Settlement Date:
|
March 24, 2009 | |
CUSIP Number:
|
485134 BL3 | |
Ratings:
|
Xxxxx’x Investor Services: A3 (Negative Outlook) | |
Standard & Poor’s Ratings Group: BBB+ (Negative Outlook) | ||
Joint Book-Running Managers:
|
Banc of America Securities LLC | |
BNP Paribas Securities Corp. | ||
X.X. Xxxxxx Securities Inc. | ||
Senior Co-Manager:
|
Mitsubishi UFJ Securities (USA), Inc. | |
Co-Managers:
|
BNY Mellon Capital Markets, LLC | |
Wachovia Capital Markets, LLC |
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, Banc of America Securities LLC, BNP
Paribas Securities Corp or X.X. Xxxxxx Securities Inc. can arrange to send you the prospectus if
you request it by calling or emailing Banc of America Securities LLC at 0-000-000-0000 or
xx.xxxxxxxxxx_xxxxxxxxxxxx@xxxxxxxxxxxxxx.xxx, by calling BNP Paribas Securities Corp. at
0-000-000-0000, or by calling X.X. Xxxxxx Securities Inc., collect, at 0-000-000-0000.
B-1