EXHIBIT 1.2
THE TIMES MIRROR COMPANY
$435,000,000 LIQUID YIELD OPTION/TM/ NOTES DUE 2017
(ZERO COUPON--SUBORDINATED)
PRICING AGREEMENT
April 9, 1997
XXXXXXX XXXXX & CO.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Xxxxxxx Xxxxx World Headquarters
North Tower
World Financial Center
000 Xxxxx Xxxxxx
Xxx Xxxx, X.X. 10281-1209
Dear Sirs:
Reference is made to the Purchase Agreement dated April 9, 1997 (the
"Purchase Agreement") relating to the purchase by Xxxxxxx Xxxxx & Co., Xxxxxxx
Lynch, Xxxxxx, Xxxxxx & Xxxxx Incorporated (the "Initial Purchaser") of the
above Liquid Yield Option/tm/ Notes due 2017 (Zero Coupon -- Subordinated) (the
"Securities") of The Times Mirror Company (the "Company").
Pursuant to Section 2 of the Purchase Agreement, the Company agrees
with the Initial Purchaser as follows:
1. The initial offering price per $1,000 principal amount at maturity
of the Securities, determined as provided in such Section 2, shall be
$391.06, which represents a yield to maturity of 4.75% per annum (computed
on a semi-annual bond equivalent basis).
2. The initial conversion rate of the Securities shall be 5.828
shares of the Company's Series A Common Stock, par value $1.00 per share,
per $1,000 principal amount at maturity of the Securities.
3. Prior to April 15, 2002, the Securities will not be redeemable.
/TM/ Trademark of Xxxxxxx Xxxxx & Co., Inc.
4. The purchase price per $1,000 principal amount at maturity of the
Securities to be paid by the Initial Purchaser shall be $381.2835 being an
amount equal to the initial offering price set forth above, less $9.7765
per $1,000 principal amount at maturity of the Securities.
5. The redemption prices to be supplied on page 21 of the Offering
Memorandum (and correspondingly in the Indenture) shall be:
Accrued Original
LYON Issue Issue Discount
Redemption Date Price at 4.75% Redemption Price
--------------- ---------- ----------------- ----------------
April 15, 2002.......................... $391.06 $103.46 $ 494.52
April 15, 2003.......................... 391.06 127.23 518.29
April 15, 2004.......................... 391.06 152.14 543.20
April 15, 2005.......................... 391.06 178.25 569.31
April 15, 2006.......................... 391.06 205.61 596.67
April 15, 2007.......................... 391.06 234.29 625.35
April 15, 2008.......................... 391.06 264.34 655.40
April 15, 2009.......................... 391.06 295.85 686.91
April 15, 2010.......................... 391.06 328.86 719.92
April 15, 2011.......................... 391.06 363.46 754.52
April 15, 2012.......................... 391.06 399.73 790.79
April 15, 2013.......................... 391.06 437.74 828.80
April 15, 2014.......................... 391.06 477.57 868.63
April 15, 2015.......................... 391.06 519.32 910.38
April 15, 2016.......................... 391.06 563.08 954.14
At Maturity............................. 391.06 608.94 1,000.00
6. The Purchase Dates and Purchase Prices to be inserted on the cover
page of the Offering Memorandum shall be:
Purchase Date Purchase Price
--------------- --------------
April 15, 2002 $494.52
April 15, 2007 625.35
April 15, 2012 790.79
7. The prices referred to in paragraphs 5 and 6 above are subject to
adjustment upon the occurrence of a Tax Event and the subsequent conversion
of the Securities to semiannual coupon notes in the manner specified in the
Offering Memorandum.
The Company represents and warrants to the Initial Purchaser that the
representations and warranties of the Company set forth in Section 1 of the
Purchase Agreement are accurate as though expressly made at and as of the date
hereof.
This Agreement shall be governed by the laws of the State of New York.
If the foregoing is in accordance with your understanding of our
agreement, please sign and return to the Company a counterpart hereof, whereupon
this instrument, along with all counterparts, will become a binding agreement
between the Initial Purchaser and the Company in accordance with its terms.
Very truly yours,
THE TIMES MIRROR COMPANY
By:
------------------------
Xxxxxxxx X. XxXxxxxxxx
Vice President, General
Counsel and Secretary
CONFIRMED AND ACCEPTED,
as of the date first above written:
XXXXXXX LYNCH, XXXXXX, XXXXXX & XXXXX
INCORPORATED
By:
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