REGENCY ENERGY PARTNERS LP REGENCY ENERGY FINANCE CORP. UNDERWRITING AGREEMENT dated October 13, 2010 Banc of America Securities LLC RBS Securities Inc. Citigroup Global Markets Inc. Credit Suisse Securities (USA) LLC Morgan Stanley & Co. Incorporated...
Exhibit 1.1
Execution Version
REGENCY ENERGY FINANCE CORP.
dated October 13, 0000
Xxxx xx Xxxxxxx Securities LLC
RBS Securities Inc.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxx Fargo Securities, LLC
Deutsche Bank Securities Inc.
SunTrust Xxxxxxxx Xxxxxxxx, Inc.
RBS Securities Inc.
Citigroup Global Markets Inc.
Credit Suisse Securities (USA) LLC
Xxxxxx Xxxxxxx & Co. Incorporated
Xxxxx Fargo Securities, LLC
Deutsche Bank Securities Inc.
SunTrust Xxxxxxxx Xxxxxxxx, Inc.
October 13, 0000
XXXX XX XXXXXXX SECURITIES LLC
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
As Representative of the several Underwriters
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
As Representative of the several Underwriters
Ladies and Gentlemen:
Introductory. Regency Energy Partners LP, a Delaware limited partnership (the “Partnership”),
and Regency Energy Finance Corp., a Delaware corporation (“Finance Corp.” and, together with the
Partnership, the “Issuers”), propose to issue and sell to the several underwriters named in
Schedule A hereto (the “Underwriters”), for whom you (the “Representative”) are acting as
representative, $600,000,000 principal amount of its 6 7/8% Senior Notes due 2018 (the “Notes”).
The Notes will be guaranteed (collectively, the “Guarantees”) by each of the subsidiary guarantors
named in Schedule B hereto (the “Guarantors”). The Notes and the Guarantees are
collectively referred to herein as the “Securities.” The Securities will be issued pursuant to an
indenture to be dated as of the Closing Date (as defined in Section 4 hereof) (the “Base
Indenture”), among the Issuers, the Guarantors and U.S. Bank National Association, as trustee (the
“Trustee”). Certain terms of the Securities will be established pursuant to a supplemental
indenture to be dated as of the Closing Date (the “Supplemental Indenture”) to the Base Indenture
(together with the Base Indenture, the “Indenture”). The use of the neuter in this Underwriting
Agreement (the “Agreement”) shall include the feminine and masculine wherever appropriate.
Regency GP LP, a Delaware limited partnership (the “General Partner”), serves as the general
partner of the Partnership and Regency GP LLC, a Delaware limited liability company (“GP LLC”),
serves as the general partner of the General Partner. The Partnership is the sole limited partner
of Regency Gas Services LP, a Delaware limited partnership (the “Operating Partnership”), and the
sole member of Regency OLP GP LLC, a Delaware limited liability company (the “Operating Partnership
GP”), which serves as the general partner of the Operating Partnership. ETE GP Acquirer LLC (“ETE
Acquirer”), a Delaware limited liability company and a wholly owned subsidiary of Energy Transfer
Equity, L.P., a Delaware limited partnership (“ETE”), is the sole owner of all of the membership
interests in GP LLC and is the sole limited partner of the General Partner. Each of Finance Corp.,
Regency Liquids Pipeline LLC, a Delaware limited liability company, Regency Field Services LLC, a
Delaware limited liability company, Gulf States Transmission Corporation, a Louisiana corporation,
Regency Gas Marketing LLC, a Delaware limited liability company, Regency Gas Utility LLC, a
Delaware limited liability company, Pueblo Holdings Inc., a Delaware corporation, FrontStreet
Hugoton, LLC, a Delaware limited liability company, CDM Resource Management LLC, a Delaware limited
liability company, Xxxxxxx Joint Venture, a Texas general partnership, Pueblo Midstream Gas
Corporation, a Texas corporation, WGP-KHC LLC, a Delaware limited liability company, Xxxxxxx Lime
Gathering LLC, a Texas limited liability company (“Xxxxxxx Lime Gathering”), Regency Haynesville
Intrastate Gas LLC, a Delaware limited liability company, RIGS Haynesville
Partnership Co., a Delaware general partnership (“RIGS HPC”), RIGS GP LLC, a Delaware limited
liability company (“RIGS GP”), Regency Intrastate Gas LP, a Delaware limited partnership (“Regency
Intrastate LP”), Regency Midcontinent Express LLC, a Delaware limited liability company, Regency
Midcontinent Express Pipeline I LLC, a Delaware limited liability company, Midcontinent Express
Pipeline LLC, a Delaware limited liability company (“MEP”), and Regency Zephyr LLC, a Delaware
limited liability, is sometimes referred to herein individually as a “Subsidiary” and collectively
as the “Subsidiaries.”
The Partnership, the General Partner and GP LLC are sometimes referred to herein collectively
as the “Regency Entities.” The Partnership, the General Partner, GP LLC, the Operating Partnership
and the Operating Partnership GP are sometimes referred to herein collectively as the “Regency
Parties.” The Partnership, the General Partner, GP LLC, the Operating Partnership, the Operating
Partnership GP and the Subsidiaries are sometimes referred to herein collectively as the
“Partnership Entities.”
1. Representations and Warranties. The Issuers and each Guarantor, jointly and
severally, represent and warrant to, and agree with, each of the Underwriters as of the date hereof
that:
(a) The Issuers have prepared and filed with the Securities and Exchange Commission
(the “Commission”) a registration statement on Form S-3 (File No. 333-169901), which
contains a base prospectus (the “Base Prospectus”), to be used in connection with the public
offering and sale of the Securities. Such registration statement, as amended, including the
financial statements, exhibits and schedules thereto, at each time of effectiveness 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
thereof at the time of effectiveness pursuant to Rule 430B or 430C under the Securities Act
or the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder (collectively, the “Exchange Act”), is called the “Registration
Statement.” Any preliminary prospectus supplement relating to the Securities that is filed
with the Commission pursuant to Rule 424(b), together with the Base Prospectus, is hereafter
called a “Preliminary Prospectus.” The term “Prospectus” shall mean the final prospectus
supplement relating to the Securities that is first filed pursuant to Rule 424(b) after the
date and time that this Agreement is executed and delivered by the parties hereto, including
the Base Prospectus. Any reference herein to the Registration Statement, any Preliminary
Prospectus or the Prospectus shall be deemed to refer to and include the documents
incorporated by reference therein pursuant to Item 12 of Form S-3 under the Securities Act;
any reference to any amendment or supplement to any Preliminary Prospectus or the Prospectus
shall be deemed to refer to and include any documents filed after the date of such
Preliminary Prospectus or Prospectus, as the case may be, under the Exchange Act, and
incorporated by reference in such Preliminary Prospectus or Prospectus, as the case may be;
and any reference to any amendment to the Registration Statement shall be deemed to refer to
and include any annual report of the Partnership filed pursuant to Section 13(a) or 15(d) of
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the Exchange Act after the effective date of the Registration Statement that is
incorporated by reference in the Registration Statement.
(b) Compliance with Registration Requirements. The Issuers meet the requirements for
use of Form S-3 under the Securities Act. The Registration Statement has become effective
upon filing with the Commission under the Securities Act. No stop order suspending the
effectiveness of the Registration Statement is in effect, the Commission has not issued any
order or notice preventing or suspending the use of the Registration Statement, any
Preliminary Prospectus or the Prospectus and no proceedings for such purpose or pursuant to
Section 8A of the Securities Act have been instituted or are pending or, to the best
knowledge of the Issuers and the Guarantors, are contemplated or threatened by the
Commission.
Each of the Preliminary Prospectus and the Prospectus when filed complied in all
material respects with the Securities Act. Each of the Registration Statement and any
post-effective amendment thereto, at each time of effectiveness, at the date hereof and at
the Closing Date, complied and will comply in all material respects with the Securities Act
and did not and will not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary in order to make the statements
therein not misleading. The Prospectus, as amended or supplemented, as of its date, at the
time of any filing pursuant to Rule 424(b) and, at the Closing Date, did not and will not
contain any untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they
were made, not misleading. The representations and warranties set forth in the two
immediately preceding sentences do not apply to statements in or omissions from the
Registration Statement or any post-effective amendment thereto, or the Preliminary
Prospectus or the Prospectus, or any amendments or supplements thereto, made in reliance
upon and in conformity with information relating to any Underwriter furnished to the Issuers
in writing by the Representative expressly for use therein, it being understood and agreed
that the only such information furnished by the Representative consists of the information
described as such in Section 8(b) hereof.
The documents incorporated by reference in the Registration Statement, the Disclosure
Package (as defined herein) and the Prospectus, when they were filed with the Commission
conformed in all material respects to the requirements of the Exchange Act. Any further
documents so filed and incorporated by reference in the Registration Statement, the
Disclosure Package and the Prospectus or any further amendment or supplement thereto, when
such documents are filed with the Commission will conform in all material respects to the
requirements of the Exchange Act. All documents incorporated or deemed to be incorporated
by reference in the Registration Statement, the Disclosure Package and the Prospectus, as of
their respective dates, when taken together with the other information in the Disclosure
Package, at the Applicable Time and, when taken together with the other information in the
Prospectus, 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
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in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.
(c) Well-Known Seasoned Issuer. (i) At the time of filing the Registration Statement,
(ii) at the time of the most recent amendment thereto for the purposes of complying with
Section 10(a)(3) of the Securities Act (whether such amendment was by post-effective
amendment, incorporated report filed pursuant to Section 13 or 15(d) of the Exchange Act or
form of prospectus), (iii) at the time the Partnership or any person acting on its behalf
(within the meaning, for this clause only, of Rule 163(c) of the Securities Act) made any
offer relating to the Securities in reliance on the exemption of Rule 163 of the Securities
Act, and (iv) at the Applicable Time (with such date and time being used as the
determination date for purposes of this clause (iv)), the Partnership was and is a
“well-known seasoned issuer” as defined in Rule 405 of the Securities Act. The Registration
Statement is an “automatic shelf registration statement,” as defined in Rule 405 of the
Securities Act that has been filed with the Commission not earlier than three years prior to
the Closing Date; the Partnership has not received from the Commission any notice pursuant
to Rule 401(g)(2) of the Securities Act objecting to use of the automatic shelf registration
statement form; and the Partnership has not otherwise ceased to be eligible to use the
automatic shelf registration form.
(d) Disclosure Package. The term “Disclosure Package” shall mean (i) the Base
Prospectus, including any Preliminary Prospectus, if any, as amended or supplemented, (ii)
the issuer free writing prospectuses as defined in Rule 433 of the Securities Act (each, an
“Issuer Free Writing Prospectus”), if any, identified in Schedule C hereto, (iii)
any other free writing prospectus that the parties hereto shall hereafter expressly agree in
writing to treat as part of the Disclosure Package and (iv) the Final Term Sheet (as defined
herein), which also shall be identified in Schedule C hereto. As of 4:30 p.m.
(Eastern time) on the date of this Agreement (the “Applicable Time”), the Disclosure Package
did not contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The preceding sentence does not apply to statements
in or omissions from the Disclosure Package based upon and in conformity with written
information furnished to the Issuers by any Underwriter through the Representative
specifically for use therein, it being understood and agreed that the only such information
furnished by or on behalf of any Underwriter consists of the information described as such
in Section 8(b) hereof.
(e) Issuers Not Ineligible Issuers. (i) At the earliest time after the filing of the
Registration Statement relating to the Securities that the Issuers or another offering
participant made a bona fide offer (within the meaning of Rule 164(h)(2) of the Securities
Act and (ii) as of the Applicable Time (with such date being used as the determination date
for purposes of this clause (ii)), neither of the Issuers was 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
either of the Issuers be considered an “ineligible issuer.”
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(f) Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus, as of its
issue date and at all subsequent times through the completion of the offering of Securities
under this Agreement or until any earlier date that the Issuers notified or notify the
Representative 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, the Disclosure Package 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, the Disclosure
Package or the Prospectus, the Issuers have promptly notified or will promptly notify the
Representative and have promptly amended or supplemented or will promptly amend or
supplement, at their own expense, such Issuer Free Writing Prospectus to eliminate or
correct such conflict. Any Issuer Free Writing Prospectus not identified on Schedule
C, when taken together with the Disclosure Package, did not, and at the Closing Date
will not, contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The foregoing three 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 Issuers by any Underwriter through the
Representative 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 8(b) hereof.
(g) Distribution of Offering Material by the Issuers and the Guarantors. Neither the
Issuers nor any Guarantor has distributed or will distribute, prior to the later of the
Closing Date and the completion of the Underwriters’ distribution of the Securities, any
offering material in connection with the offering and sale of the Securities other than the
Preliminary Prospectus, the Prospectus and any Issuer Free Writing Prospectus reviewed and
consented to by the Representative.
(h) 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.
(i) No Material Adverse Change. Except as otherwise disclosed in the Disclosure
Package and the Prospectus (exclusive of any amendment or supplement thereto), (i) there has
been no material adverse change, or any development that could reasonably be expected to
result in a material adverse change in the condition (financial or otherwise), earnings,
business, properties, operations or prospects, whether or not arising from transactions in
the ordinary course of business, of the Partnership and its subsidiaries, considered as one
entity (any such change is called a “Material Adverse Change”); (ii) the Partnership and its
subsidiaries, considered as one entity, have not incurred any liability or obligation,
indirect, direct or contingent, nor entered into any material transaction or agreement, in
each case, that is material to the Partnership and its subsidiaries taken as
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a whole; and (iii) there has been no dividend or distribution of any kind declared,
paid or made by the Partnership or, except for dividends paid to the Partnership or other
subsidiaries, any of its subsidiaries on any class of capital stock or repurchase or
redemption by the Partnership or any of its subsidiaries of any class of capital stock.
(j) Incorporation and Good Standing of the Partnership and Its Subsidiaries.
(i) Each of the Regency Parties and Regency Finance has been duly formed and is
validly existing as a limited partnership, limited liability company or corporation,
as the case may be, is in good standing under the laws of its jurisdiction of
formation or incorporation, with full limited partnership, limited liability company
or corporate power and authority, as applicable, to own, lease and operate its
properties and conduct its business as described in the Registration Statement,
Preliminary Prospectus and the Prospectus.
(ii) Each of the Regency Parties and Regency Finance is duly registered or
qualified to do business and is in good standing as a foreign limited partnership,
limited liability company or corporation, as the case may be, in each jurisdiction
where the ownership or leasing of its properties or the conduct of its business
requires such qualification, except where the failure to be so registered or
qualified and in good standing would not, individually or in the aggregate, (i) have
a material adverse effect on the business, properties, financial condition, results
of operations or prospects of the Partnership Entities taken as a whole (a “Material
Adverse Effect”) or (ii) subject the limited partners of the Partnership to any
material liability or disability.
(k) Capitalization. The authorized, issued and outstanding capitalization of the
Partnership is as set forth in the Disclosure Package and the Prospectus under the caption
“Capitalization” (other than for subsequent issuances, if any, pursuant to employee benefit
plans described in the Disclosure Package and the Prospectus or upon exercise of outstanding
options or warrants described in the Disclosure Package and the Prospectus, as the case may
be).
(l) Ownership of the General Partner Interest in the Partnership. The General Partner
is the sole general partner of the Partnership, with a 2.0% general partner interest in the
Partnership; such general partner interest is duly authorized and validly issued in
accordance with the limited partnership agreement of the Partnership (as the same may be
amended at or prior to the Closing Date, if applicable, the “Partnership Agreement”); and
the General Partner owns such general partner interest free and clear of all liens,
encumbrances (except for restrictions on transferability contained in Section 4.8 of the
Partnership Agreement and as otherwise described in the Registration Statement, Preliminary
Prospectus and the Prospectus), security interests, equities, charges or claims.
(m) Ownership of Certain Partnership Interests in the Partnership. The limited
partners of the Partnership own 137,166,378 common units of the Partnership, representing an
approximate 98% limited partner interest in the Partnership (the “Common
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Units”), and 4,371,586 Series A Cumulative Convertible Preferred Units (“Series A
Units”), which Series A Units are convertible into Common Units at an initial conversion
price of $18.30 per unit, subject to adjustment.
(n) Ownership of the Subsidiaries. At the Closing Date, other than Xxxxxxx Lime
Gathering, of which the Partnership owns 60% of the outstanding limited liability company
interests, RIGS HPC, of which the Partnership indirectly owns 49.99% of the outstanding
partnership interests, RIGS GP and Regency Intrastate LP, which are wholly owned, directly
or indirectly, by RIGS HPC, and MEP, of which the Partnership owns, directly or indirectly,
49.9% of the outstanding limited liability company interests, the Partnership owns 100% of
the outstanding partnership interests, limited liability company interests or capital stock,
as the case may be, in the Operating Partnership, the Operating Partnership GP and each of
the Subsidiaries (collectively, the “Operating Subsidiaries”) free and clear of all liens,
encumbrances, security interests, equities, charges and claims, except for liens created
pursuant to the Fifth Amended and Restated Credit Agreement, effective as of March 4, 2010
(as amended), by and among the Operating Partnership, as Borrower, the Partnership and the
other guarantors named therein and the lenders party thereto (the “Credit Agreement”). At
the Closing Date, such ownership interests will be duly authorized and validly issued in
accordance with the organizational documents of the respective Operating Subsidiaries, and
will be fully paid (to the extent required under their respective organizational documents)
and nonassessable (except as such nonassessability may be affected by Section 18-607 and
18-804 of the Delaware Limited Liability Company Act (the “Delaware LLC Act”), in the case
of a Delaware limited liability company, or Sections 17-303, 17-607 and 17-804 of the
Delaware LP Act in the case of a Delaware limited partnership). At the Closing Date, in the
case of an Operating Subsidiary that is a limited partnership, the general partner interests
therein will be duly authorized and validly issued in accordance with the limited
partnership agreements of the respective Operating Subsidiaries.
(o) Ownership of Partnership Interests in the General Partner. At the Closing Date,
GP LLC will own .001% of the outstanding general partner interests in the General Partner
and ETE Acquirer will own 99.999% of the outstanding limited partner interests in the
General Partner; at the Closing Date, all of such interests in the General Partner will be
duly authorized and validly issued in accordance with the partnership agreement of the
General Partner (as the same may be amended at or prior to the Closing Date, the “General
Partner LP Agreement”) and will be fully paid (to the extent required under the General
Partner LP Agreement) and nonassessable (except as such nonassessability may be affected by
Sections 17-303,17-607 and 17-804 of the Delaware LP Act); and at the Closing Date, GP LLC
and ETE Acquirer will own such partnership interests free and clear of all liens,
encumbrances, security interests, equities, charges or claims, except for liens created
pursuant to the Credit Agreement dated as of September 20, 2010 among ETE, Credit Suisse AG,
as the administrative agent, and the lenders party thereto (the “ETE Credit Agreement”).
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(p) Ownership of Limited Liability Company Interests in GP LLC. At the Closing Date,
ETE Acquirer will own 100% of the outstanding limited liability company interests in GP LLC;
at the Closing Date, all of such interests will be duly authorized and validly issued in
accordance with the limited liability company agreement of GP LLC (as the same may be
amended at or prior to the Closing Date, the “GP LLC Agreement”) and will be fully paid (to
the extent required under the GP LLC Agreement) and nonassessable (except as such
nonassessability may be affected by Section 18-607 and 18-804 of the Delaware LLC Act); and
at the Closing Date, ETE Acquirer will own such limited liability company interests free and
clear of all liens, encumbrances, security interests, equities, charges or claims except for
liens created pursuant to the ETE Credit Agreement.
(q) No Other Subsidiaries. Other than its direct or indirect ownership interests in
the Operating Subsidiaries, the Partnership does not own, and at the Closing Date will not
own, directly or indirectly, any equity or long-term debt securities of any corporation,
partnership, limited liability company, joint venture, association or other entity.
(r) The Securities. The Notes to be purchased by the Underwriters from the Issuers are
in the form contemplated by the Indenture, have been duly authorized by the Issuers for
issuance and sale pursuant to this Agreement and the Indenture and, at the Closing Date,
will have been duly executed by the Issuers and, when authenticated in the manner provided
for in the Indenture and delivered against payment of the purchase price therefor, will
constitute valid and binding obligations of the Issuers, enforceable in accordance with
their terms, except as the enforcement thereof may be limited by bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium or other similar laws relating to or
affecting the rights and remedies of creditors or by general equitable principles and will
be entitled to the benefits of the Indenture. The Guarantees are in the respective forms
contemplated by the Indenture, have been duly authorized by the Guarantors for issuance and
sale pursuant to this Agreement and the Indenture and, at the Closing Date, will have been
duly executed by each of the Guarantors and, when the Notes have been authenticated in the
manner provided for in the Indenture and delivered against payment of the purchase price
therefor, will constitute valid and binding obligations of the Guarantors, enforceable in
accordance with their terms, except as the enforcement thereof may be limited by bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating
to or affecting the rights and remedies of creditors or by general equitable principles, and
will be entitled to the benefits of the Indenture.
(s) The Indenture. The Indenture has been duly qualified under the Trust Indenture Act
of 1939, as amended. The Indenture has been duly authorized by the Issuers and the
Guarantors and, at the Closing Date, will have been duly executed and delivered by the
Issuers and the Guarantors and will constitute a valid and binding agreement of the Issuers
and the Guarantors, enforceable in accordance with its terms, except as the enforcement
thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or other similar laws relating to or affecting the rights and remedies of
creditors or by general equitable principles.
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(t) Description of Documents. The Securities and the Indenture will conform in all
material respects to the descriptions thereof in the Disclosure Package and the Prospectus
under the captions “Description of the Notes” and “Description of Our Debt Securities.”
(u) Regulations T, U and X. None of the transactions contemplated by this Agreement
(including, without limitation, the use of the proceeds from the sale of the Securities)
will violate or result in a violation of Section 7 of the Exchange Act, or any regulation
promulgated thereunder, including, without limitation, Regulations T, U and X of the Board
of Governors of the Federal Reserve System.
(v) Non-Violation of Existing Instruments. No Partnership Entity is (i) in violation
of its formation, governing or other organizational documents, or (ii) in breach or in
violation of or in default under (nor has any event occurred which with notice, lapse of
time or both, would result in any breach or violation of, constitute a default under) or
give the holder of any indebtedness (or a person acting on such holder’s behalf) the right
to require the repurchase, redemption or repayment of all or a part of such indebtedness
under) any indenture, mortgage, deed of trust, bank loan or credit agreement or other
evidence of indebtedness, or any license, lease, contract or other agreement or instrument
to which it is a party or by which it or any of its properties may be bound or affected,
except as disclosed in the Registration Statement, the Preliminary Prospectus and the
Prospectus and, in the case of clause (ii) above, for any such breach, violation, default or
acceleration that would not have a Material Adverse Effect. The execution, delivery and
performance of this Agreement by the Issuers and the Guarantors and the consummation of the
transactions contemplated hereby will not (A) conflict with, result in any breach or
violation of or constitute a default under (nor constitute any event which with notice,
lapse of time or both, would result in any breach or violation of or constitute a default
under) the organizational documents of any of the Partnership Entities, or any federal,
state, local or foreign law, regulation or rule or any decree, judgment or order applicable
to the any of the Partnership Entities, except as disclosed in the Registration Statement,
the Preliminary Prospectus, the Prospectus and any Permitted Free Writing Prospectus or (B)
conflict with, result in any breach or violation of or constitute a default under (nor
constitute any event which with notice, lapse of time or both, would result in any breach or
violation of or constitute a default under or give the holder of any indebtedness (or a
person acting on such holder’s behalf) the right to require the repurchase, redemption or
repayment of all or a part of such indebtedness under) any indenture, mortgage, deed of
trust, bank loan or credit agreement or other evidence of indebtedness, or any license,
lease, contract or other agreement or instrument to which any Partnership Entity is a party
or by which any of them or any of their respective properties may be bound or affected,
except as disclosed in the Registration Statement, the Preliminary Prospectus and the
Prospectus and for any such breach, violation or default that would not have a Material
Adverse Effect.
(w) No Further Authorizations or Approvals Required. Except for any approvals,
authorizations, consents, orders or filings that, if not obtained or made, would
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not have a
Material Adverse Effect, no approval, authorization, consent or order of or filing
with any federal, state, local or foreign governmental or regulatory commission,
board, body, authority or agency is required in connection with the Issuers’ or any
Guarantor’s execution, delivery and performance of this Agreement and consummation of the
transactions contemplated hereby, other than registration of the offer and sale of the
Securities under the Securities Act, which has been or will be effected, and any necessary
qualification under applicable securities or blue sky laws or under the rules and
regulations of the Financial Industry Regulatory Authority, formerly known as the National
Association of Securities Dealers, Inc. (“FINRA”).
(x) No Material Actions or Proceedings. Except as described in the Registration
Statement, the Preliminary Prospectus and the Prospectus, there are no actions, suits,
claims, investigations or proceedings pending or, to the knowledge of the management of GP
LLC after due inquiry, threatened, to which any of the Partnership Entities or of which any
of their respective properties is or would be subject at law or in equity, before or by any
federal, state, local or foreign governmental or regulatory commission, board, body,
authority or agency, except any such actions, suits, claims, investigations or proceedings
that would not result in any judgments, decrees or orders having, individually or in the
aggregate, a Material Adverse Effect or preventing consummation of the transactions
contemplated hereby.
(y) Independent Accountants. (i) KPMG LLP, whose reports on the consolidated
financial statements of the Partnership and the General Partner are included or incorporated
by reference in the Registration Statement, the Preliminary Prospectus, the Prospectus or
the Permitted Free Writing Prospectuses, if any, containing an audit report, are independent
registered public accountants as required by the Securities Act and by the rules of the
Public Company Accounting Oversight Board (“PCAOB”); and (ii) PricewaterhouseCoopers, whose
reports on the consolidated financial statements of MEP are included or incorporated by
reference in the Registration Statement, the Preliminary Prospectus, the Prospectus or the
Permitted Free Writing Prospectuses, if any, containing an audit report, are independent
registered public accountants as required by the Securities Act and by the rules of the
PCAOB.
(z) Preparation of Financial Statements. The financial statements included or
incorporated by reference in the Registration Statement, the Preliminary Prospectus, the
Prospectus and the Permitted Free Writing Prospectuses, if any, together with the related
notes and schedules, present fairly the consolidated financial positions of the entities
purported to be shown thereby as of the dates indicated and the consolidated results of
operations, cash flows and changes in partners’ equity of such entities for the periods
specified and have been prepared in all material respects in compliance with the
requirements of the Securities Act and Exchange Act and in conformity with U.S. generally
accepted accounting principles applied on a consistent basis during the periods involved,
except to the extent disclosed therein; all pro forma financial statements or data included
or incorporated by reference in the Registration Statement, the Preliminary Prospectus, the
Prospectus and the Permitted Free Writing Prospectuses, if any, comply in all material
respects
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with the requirements of the Securities Act (including, without limitation, Regulation S-X under the Securities Act) and the Exchange Act (including, without limitation,
Regulation G under the Securities Act), Item 10 under Regulation S-K and Financial
Accounting Standards Board Interpretation No. 46, and the assumptions used in the
preparation of such pro forma financial statements and data are, in the judgment of the
management of GP LLC, reasonable, the pro forma adjustments used therein are appropriate to
give effect to the transactions or circumstances described therein and the pro forma
adjustments have been properly applied to the historical amounts in the compilation of those
statements and data; the other financial and statistical data contained or incorporated by
reference in the Registration Statement, the Preliminary Prospectus, the Prospectus and the
Permitted Free Writing Prospectuses, if any, are accurately and fairly presented and
prepared on a basis consistent with the financial statements and books and records of the
Partnership Entities; there are no financial statements (historical or pro forma) that are
required to be included or incorporated by reference in the Registration Statement, the
Preliminary Prospectus or the Prospectus that are not included or incorporated by reference
as required.
(aa) Authorization of Agreement. This Agreement has been duly authorized, executed and
delivered by the Issuers and each Guarantor.
(bb) Intellectual Property Rights. The Partnership Entities own, or have obtained
valid and enforceable licenses for, or other rights to use, the inventions, patent
applications, patents, trademarks (both registered and unregistered), trade names, service
names, copyrights, trade secrets and other proprietary information described in the
Registration Statement, the Preliminary Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any, as being owned or licensed by them or which are necessary for
the conduct of their respective businesses, except where the failure to own, license or have
such rights would not, individually or in the aggregate, have a Material Adverse Effect.
(cc) All Necessary Permits, etc. Each of the Partnership Entities has, or at the
Closing Date will have, all licenses, authorizations, consents and approvals of governmental
or regulatory authorities (“permits”) as are necessary to own or lease its properties and to
conduct its business in the manner described in the Registration Statement, the Preliminary
Prospectus, the Prospectus and any Permitted Free Writing Prospectus, subject to such
qualifications as may be set forth in the Registration Statement, the Preliminary Prospectus
and the Prospectus and except for such permits that, if not obtained, would not have a
Material Adverse Effect; none of the Partnership Entities is in violation of, or in default
under, or has received notice of any proceedings relating to revocation or modification of,
any such permits, except where such violation, default, revocation or modification would
not, individually or in the aggregate, have a Material Adverse Effect.
(dd) Title to Properties. At the Closing Date, each Operating Subsidiary will have
good and indefeasible title to all real property (excluding easements or rights-of-way) and
good and marketable title to all personal property described in the Registration Statement,
the Preliminary Prospectus, the Prospectus and the Permitted Free Writing
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Prospectuses, if
any, as being owned by each of them, which real and personal property
shall be free and clear of all liens, encumbrances, security interests, equities,
charges or claims, except (i) as described, and subject to the limitations contained, in the
Registration Statement, the Preliminary Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any, (ii) that arise under or are expressly permitted by the Credit
Agreement, or (iii) as do not materially interfere with the use of such properties taken as
a whole as they have been used in the past and are proposed to be used in the future as
described in the Registration Statement, the Preliminary Prospectus, the Prospectus and the
Permitted Free Writing Prospectuses, if any. All the real and personal property described in
the Registration Statement, the Preliminary Prospectus, the Prospectus and the Permitted
Free Writing Prospectuses, if any, as being held under lease by any of the Partnership
Entities is held thereby under valid, subsisting and enforceable leases and with such
exceptions as do not materially interfere with the use of such properties in the manner in
which such properties are used in the business of the Partnership as described in the
Registration Statement, the Preliminary Prospectus, the Prospectus and the Permitted Free
Writing Prospectuses, if any.
(ee) Rights-of-Way. At the Closing Date, each of the Partnership Entities will have
such consents, easements, rights-of-way, permits or licenses from each person (collectively,
“rights-of-way”) as are necessary to conduct its business in the manner described, and
subject to the limitations contained, in the Registration Statement, the Preliminary
Prospectus, the Prospectus and the Permitted Free Writing Prospectuses, if any, except for
(i) qualifications, reservations and encumbrances as may be set forth in the Prospectus or
that would not have a Material Adverse Effect and (ii) such rights-of-way that, if not
obtained, would not have, individually or in the aggregate, a Material Adverse Effect; other
than as set forth, and subject to the limitations contained, in the Registration Statement,
the Preliminary Prospectus, the Prospectus and the Permitted Free Writing Prospectuses, if
any, each of the Partnership Entities has, or at the Closing Date, following consummation of
the transactions contemplated hereby will have, fulfilled and performed, in all material
respects, its obligations with respect to such rights-of-way and no event has occurred that
allows, or after notice or lapse of time would allow, revocation or termination thereof or
would result in any impairment of the rights of the holder of any such rights-of-way, except
for such revocations, terminations and impairments, individually or in the aggregate, that
would not have a Material Adverse Effect; and, except as described in the Registration
Statement, the Preliminary Prospectus, the Prospectus and the Permitted Free Writing
Prospectuses, if any, none of such rights-of-way contains any restriction that is materially
burdensome to the Partnership Entities, taken as a whole.
(ff) Tax Law Compliance. All material tax returns required to be filed by the
Partnership Entities have been filed, and all taxes and other assessments of a similar
nature (whether imposed directly or through withholding) including any interest, additions
to tax or penalties applicable thereto due or claimed to be due from such entities have been
paid, other than those (i) that are being contested in good faith and for which adequate
reserves have been provided or (ii) that, if not paid, would not have a Material Adverse
Effect.
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(gg) Partnership Not an “Investment Company.” None of the Partnership Entities is, or
after receipt of payment for the Securities and the application of the proceeds thereof as
contemplated under the caption “Use of Proceeds” in each of the Preliminary Prospectus and
the Prospectus will be, an “investment company” or an entity “controlled” by an “investment
company,” as such terms are defined in the Investment Company Act of 1940, as amended (the
“Investment Company Act”).
(hh) Insurance. The Partnership Entities maintain insurance covering their properties,
operations, personnel and businesses as the Partnership deems reasonably adequate; such
insurance insures against such losses and risks to an extent which is reasonably adequate in
accordance with customary industry practice to protect the Partnership Entities and their
businesses. All such insurance is fully in force on the date hereof and will be fully in
force at the Closing Date.
(ii) Contracts and Agreements. Except as disclosed in the Registration Statement, the
Preliminary Prospectus and the Prospectus, the Partnership Entities have not sent or
received any communication regarding termination of, or intent not to renew, any of the
contracts or agreements referred to or described in, or filed as an exhibit to, the
Registration Statement or any Incorporated Documents, the Preliminary Prospectus, the
Prospectus or the Permitted Free Writing Prospectuses, if any, and no such termination or
non-renewal has been threatened by the Partnership Entities or, to the knowledge of any
Partnership Entity, any other party to any such contract or agreement.
(jj) No Restrictions on Dividends. No Subsidiary is currently prohibited, directly or
indirectly, from paying any dividends to the Partnership, from making any other distribution
on such Subsidiary’s shares of capital stock or other ownership interests, from repaying to
the Partnership any loans or advances to such Subsidiary from the Partnership or from
transferring any of such Subsidiary’s property or assets to the Partnership or any other
Subsidiary of the Partnership, except as described in or contemplated by the Disclosure
Package and the Prospectus.
(kk) Solvency. The Issuers and the Guarantors taken as a whole are, and immediately
after the Closing Date will be, Solvent. As used herein, the term “Solvent” means, with
respect to any person on a particular date, that on such date (i) the fair market value of
the assets of such person is greater than the total amount of liabilities (including
contingent liabilities) of such person, (ii) the present fair salable value of the assets of
such person is greater than the amount that will be required to pay the probable liabilities
of such person on its debts as they become absolute and matured, (iii) such person is able
to realize upon its assets and pay its debts and other liabilities, including contingent
obligations, as they mature and (iv) such person does not have unreasonably small capital.
(ll) No Price Stabilization or Manipulation. No Regency Party has taken, directly or
indirectly, any action designed, or which has constituted or might reasonably be expected to
cause or result in, under the Exchange Act or otherwise, the stabilization or manipulation
of the price of any security of the Partnership to facilitate the sale or resale of the
Securities.
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(mm) Disclosure of Certain Items. All legal or governmental proceedings, affiliate
transactions, off-balance sheet transactions, contracts, licenses, agreements, leases or
documents of a character required to be described in the Registration Statement, the
Preliminary Prospectus and the Prospectus or to be filed as an exhibit to the Registration
Statement have been so described or filed as required.
(nn) Xxxxxxxx-Xxxxx Compliance; Disclosure Controls. The Partnership has taken all
necessary actions to ensure that the Partnership Entities and their respective officers and
directors, in their capacities as such, are in compliance in all material respects with the
applicable provisions of the Xxxxxxxx-Xxxxx Act of 2002 (the “Xxxxxxxx-Xxxxx Act”) and the
rules and regulations of the Commission and the NASDAQ promulgated thereunder, including,
but not limited to, establishing and maintaining and evaluating “disclosure controls and
procedures” (as such term is defined in Rule 13a-15 and 15d-15 under the Exchange Act) and
“internal control over financial reporting” (as such term is defined in Rule 13a-15 and
15d-15 under the Exchange Act); such disclosure controls and procedures are designed to
ensure that material information relating to the Partnership is made known to the President
and Chief Executive Officer of GP LLC and its Chief Financial Officer by others within the
Partnership, the General Partner and GP LLC, and such disclosure controls and procedures are
effective to perform the functions for which they were established.
(oo) Internal Controls and Procedures. The Partnership Entities maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management’s general or specific authorization;
(ii) transactions are recorded as necessary to permit preparation of financial statements in
conformity with accounting principles generally accepted in the United States and to
maintain accountability for assets; (iii) access to assets is permitted only in accordance
with management’s general or specific authorization; and (iv) the recorded accountability
for assets is compared with existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.
(pp) No Unlawful Contributions or Other Payments. Neither the Partnership nor any of
its Subsidiaries nor, to the knowledge of the Issuers and the Guarantors, any director,
officer, agent, employee or affiliate of the Partnership or any of its Subsidiaries is aware
of or has taken any action, directly or indirectly, that would result in a violation by such
persons of the FCPA, including, without limitation, making use of the mails or any means or
instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay or authorization of the payment of any money, or other property, gift,
promise to give, or authorization of the giving of anything of value to any “foreign
official” (as such term is defined in the FCPA) or any foreign political party or official
thereof or any candidate for foreign political office, in contravention of the FCPA, and the
Partnership, its Subsidiaries and, to the knowledge of the Issuers and the Guarantors, its
affiliates have conducted their businesses in compliance with the FCPA and have instituted
and maintain policies and procedures designed to ensure, and which are reasonably expected
to continue to ensure, continued compliance therewith. “FCPA” means
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the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations
thereunder.
(qq) No Conflict with Money Laundering Laws. The operations of the Partnership and its
Subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements of the Currency and Foreign Transactions
Reporting Act of 1970, as amended, the money laundering statutes of all applicable
jurisdictions, the rules and regulations thereunder and any related or similar rules,
regulations or guidelines issued, administered or enforced by any governmental agency
(collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before
any court or governmental agency, authority or body or any arbitrator involving the
Partnership or any of its Subsidiaries with respect to the Money Laundering Laws is pending
or, to the best knowledge of the Issuers and the Guarantors, threatened.
(rr) No Conflict with OFAC Laws.
(i) None of the Partnership Entities, nor any director, officer or employee
thereof, nor, to the knowledge of the Regency Parties, any agent, affiliate or
representative of the Partnership Entities, is an individual or entity (“Person”)
that is, or is owned or controlled by a Person that is:
(a) the subject of any sanctions (“Sanctions”) administered or
enforced by the U.S. Department of Treasury’s Office of Foreign Assets
Control, nor
(b) located, organized or resident in a country or territory that is
the subject of Sanctions (including, without limitation, Burma/Myanmar,
Cuba, Iran, North Korea, Sudan and Syria).
(ii) The Partnership Entities will not, directly or indirectly, use the
proceeds of the offering, or lend, contribute or otherwise make available such
proceeds to any subsidiary, joint venture partner or other Person:
(a) to fund or facilitate any activities or business of or with any
Person or in any country or territory that, at the time of such funding or
facilitation, is the subject of Sanctions; or
(b) in any other manner that will result in a violation of Sanctions by
any Person (including any Person participating in the offering, whether as
underwriter, advisor, investor or otherwise).
(iii) For the past 5 years, the Partnership Entities have not knowingly engaged
in, are not now knowingly engaged in, and will not engage in, any dealings or
transactions with any Person, or in any country or territory, that at the time of
the dealing or transaction is or was the subject of Sanctions.
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(ss) Compliance with and Liability Under Environmental Laws. Except as described in
the Registration Statement, the Preliminary Prospectus and the Prospectus, each of the
Partnership Entities and its properties, assets and operations are in compliance with, and
hold all permits, authorizations and approvals required under, Environmental Laws (as
defined herein), except to the extent that failure to so comply or to hold such permits,
authorizations or approvals would not, individually or in the aggregate, have a Material
Adverse Effect; except as disclosed in the Registration Statement, the Preliminary
Prospectus and the Prospectus, there are no past, present or, to the Issuers’ knowledge,
reasonably anticipated future events, conditions, circumstances, activities, practices,
actions, omissions or plans that could reasonably be expected to give rise to any costs or
liabilities to any Partnership Entity under any Environmental Law or any actual or alleged
release or threatened release or clean up at any location of any Hazardous Materials, except
as would not, individually or in the aggregate, have a Material Adverse Effect; except as
disclosed in the Registration Statement, the Preliminary Prospectus and the Prospectus and
except as would not, individually or in the aggregate, have a Material Adverse Effect, no
Partnership Entity (i) is the subject of any investigation, (ii) has received any notice or
claim, (iii) is a party to or affected by any pending or, to the knowledge of any
Partnership Entity, threatened action, suit or proceeding, (iv) is bound by any judgment,
decree or order or (v) has entered into any agreement, in each case relating to any alleged
violation of any Environmental Law or any actual or alleged release or threatened release or
cleanup at any location of any Hazardous Materials. As used herein, “Environmental Law”
means any federal, state or local laws or regulations relating to the protection of human
health and safety and the environment, including those imposing liability or standards of
conduct concerning any Hazardous Materials, and “Hazardous Materials” means (A) any
“hazardous substance” as defined in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, (B) any “hazardous waste” as defined in the Resource
Conservation and Recovery Act, as amended, (C) any petroleum or petroleum product, (D) any
polychlorinated biphenyl and (E) any pollutant or contaminant or hazardous, dangerous or
toxic chemical, material, waste or substance regulated under or within the meaning of any
other Environmental Law.
(tt) Periodic Review of Costs of Environmental Compliance. In the ordinary course of
its business, the Partnership Entities conduct a periodic review of the effect of the
Environmental Laws on their business, operations and properties, in the course of which they
identify and evaluate associated costs and liabilities (including, without limitation, any
capital or operating expenditures required for cleanup, closure of properties or compliance
with the Environmental Laws or any permit, license or approval, any related constraints on
operating activities and any potential liabilities to third parties).
(uu) ERISA Compliance and Labor Matters. Except for matters that would not,
individually or in the aggregate, have a Material Adverse Effect on the Partnership Entities
taken as a whole, (i) there is (A) no unfair labor practice complaint pending or, to the
Issuers’ knowledge, threatened against any of the Partnership Entities, and no grievance or
arbitration proceeding arising out of or under collective bargaining agreements is
- 16 -
pending or, to the Issuers’ knowledge, threatened, (B) no strike, labor dispute,
slowdown or stoppage pending or, to the Issuers’ knowledge, threatened against any of the
Partnership Entities, (C) no union representation dispute currently existing concerning the
employees of any of the Partnership Entities, (D) no current or past violation of any
federal, state, local or foreign law relating to discrimination in the hiring, promotion or
pay of employees, any applicable wage or hour laws or any provision of the Employee
Retirement Income Security Act of 1974 (“ERISA”) or the rules and regulations promulgated
thereunder concerning the employees of any of the Partnership Entities and (E) to the
Issuers’ knowledge, no union organizing activities are currently taking place concerning the
employees of any of the Partnership Entities.
(vv) Brokers. Other than the underwriting discount pursuant to Section 2 of this
Agreement, there is no broker, finder or other party that is entitled to receive from the
Issuers any brokerage or finder’s fee or other fee or commission as a result of any
transactions contemplated by this Agreement.
(ww) No Outstanding Loans or Other Indebtedness. None of the Partnership, the General
Partner or GP LLC has, directly, or indirectly through any subsidiary, extended credit,
arranged to extend credit or renewed any extension of credit, in the form of a personal
loan, to or for any director or executive officer of GP LLC, or to or for any family member
or affiliate of any director or executive officer of GP LLC.
(xx) Ratings. Except as otherwise disclosed in the Disclosure Package, no “nationally
recognized statistical rating organization” as such term is defined for purposes of Rule
436(g)(2) under the Securities Act as in effect July 20, 2010 (i) has imposed (or has
informed the Issuers that it is considering imposing) any condition (financial or otherwise)
on the Issuers’ retaining any rating assigned to the Issuers, any securities of the Issuers
or (ii) has indicated to the Issuers that it is considering (a) the downgrading, suspension,
or withdrawal of, or any review for a possible change that does not indicate the direction
of the possible change in, any rating so assigned or (b) any change in the outlook for any
rating of the Issuers or any securities of the Issuers.
(yy) Lending Relationship. Except as disclosed in the Disclosure Package and the
Prospectus, the Issuers (i) do not have any material lending or other relationship with any
bank or lending affiliate of any Underwriter and (ii) do not intend to use any of the
proceeds from the sale of the Securities hereunder to repay any outstanding debt owed to any
affiliate of any Underwriter.
(zz) Statistical and Market Related Data. Any statistical and market-related data
included or incorporated by reference in the Registration Statement, the Preliminary
Prospectus, the Prospectus or the Permitted Free Writing Prospectuses, if any, are based on
or derived from sources that the management of GP LLC believes to be reliable and accurate,
and the Issuers have obtained the written consent to the use of such data from such sources
to the extent required.
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In addition, any certificate signed by any officer of the Regency Parties and delivered to the
Underwriters or counsel for the Underwriters pursuant to this Agreement shall be deemed to be a
representation and warranty by the Regency Parties, as the case may be, as to matters covered
thereby, to each Underwriter.
2. Purchase and Sale. The Issuers agree to issue and sell to the several Underwriters
the Notes upon the terms herein set forth and, on the basis of the representations, warranties and
agreements and upon the terms but subject to the conditions herein set forth, the Underwriters
agree, severally and not jointly, to purchase from the Issuers the respective aggregate principal
amount of Notes set forth opposite their names on Schedule A. The purchase price per Note
to be paid by the several Underwriters to the Issuers shall be equal to 98.25% of the principal
amount thereof.
3. Delivery and Payment; Representations and Warranties and Covenants of the
Underwriters.
(a) Delivery of certificates for the Notes to be purchased by the Underwriters and payment
therefor shall be made at the offices of Xxxxx Xxxxx LLP, 000 Xxxxxxxxx Xxxxxx, Xxxxx 0000,
Xxxxxxx, Xxxxx 00000 (or such other place as may be agreed to by the Partnership and the
Representative) at 9:00 a.m. New York time, on October 27, 2010, or such other time and date not
later than 1:30 p.m. New York time, on November 1, 2010, as the Representative shall designate by
notice to the Issuers (the time and date of such closing are called the “Closing Date”). Delivery
of the Securities shall be made through the facilities of The Depository Trust Company (“DTC”)
unless the Representative shall otherwise instruct.
(b) Public Offering of the Notes. The Representative hereby advises the Issuers 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 Notes as soon after this Agreement has been executed
by the Representative, which, in their sole judgment, they have determined is advisable and
practicable.
(c) Payment for the Notes. Payment for the Notes shall be made on the Closing Date by wire
transfer of immediately available funds to the order of the Issuers.
It is understood that the Representative has been authorized, for its own account and the
accounts of the several Underwriters, to accept delivery of and receipt for, and make payment of
the purchase price for, the Notes. BAS, individually and not as the Representative of the
Underwriters, may (but shall not be obligated to) make payment for any Notes to be purchased by any
Underwriter whose funds shall not have been received by the Representative 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.
(d) Delivery of the Notes. Delivery of the Notes shall be made through the facilities of DTC
unless the Representative shall otherwise instruct. 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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(e) Delivery of Prospectus to the Underwriters. Not later than 10:00 a.m. on the second
business day following the date the Notes are first released by the Underwriters for sale to the
public, the Issuers shall deliver or cause to be delivered, copies of the Prospectus in such
quantities and at such places as the Representative shall reasonably request.
4. Covenants. The Issuers and the Guarantors, jointly and severally, covenant and
agree with each of the Underwriters as follows:
(a) Representative Review of Proposed Amendments and Supplements. During the period
beginning at the Applicable Time and ending on the later of the Closing Date or such date,
as in the opinion of counsel for the Underwriters, the Prospectus is no longer required by
law to be delivered in connection with sales by an Underwriter or dealer, including in
circumstances where such requirement may be satisfied pursuant to Rule 172 (the “Prospectus
Delivery Period”), prior to amending or supplementing the Registration Statement, the
Disclosure Package or the Prospectus, the Issuers shall furnish to the Representative for
review a copy of each such proposed amendment or supplement, and the Issuers shall not file
or use any such proposed amendment or supplement to which the Representative reasonably
objects.
(b) Securities Act Compliance. After the date of this Agreement and during the
Prospectus Delivery Period, the Issuers shall promptly advise the Representative in writing
(i) when the Registration Statement, if not effective at the Applicable Time, shall have
become effective, (ii) of the receipt of any comments of, or requests for additional or
supplemental information from, the Commission, (iii) of the time and date of any filing of
any post-effective amendment to the Registration Statement or any amendment or supplement to
any Preliminary Prospectus or the Prospectus, (iv) of the time and date that any
post-effective amendment to the Registration Statement becomes effective, and (v) of the
issuance by the Commission of any stop order suspending the effectiveness of the
Registration Statement or of any order or notice preventing or suspending the use of the
Registration Statement, any Preliminary Prospectus or the Prospectus, or of any receipt by
the Issuers of any notification with respect to the suspension of the qualification of the
Notes for sale in any jurisdiction or of the threatening or initiation of any proceedings
for any of such purposes (including any notice or order pursuant to Section 8A or Rule
401(g)(2) of the Securities Act). The Issuers shall use commercially reasonable efforts to
prevent the issuance of any such stop order or notice of prevention or suspension of such
use. If the Commission shall enter any such stop order or issue any such notice at any
time, the Issuers will use commercially reasonable efforts to obtain the lifting or reversal
of such order or notice at the earliest possible moment, or, subject to Section 4(a), will
file an amendment to the Registration Statement or will file a new registration statement
and use its best efforts to have such amendment or new registration statement declared
effective as soon as practicable. Additionally, the Issuers agree that they shall comply
with the provisions of Rules 424(b) and 430B, as applicable, under the Securities Act,
including with respect to the timely filing of documents thereunder, and will use
commercially reasonable efforts to confirm that any filings made by the Issuers under such
Rule 424(b) were received in a timely manner by the Commission.
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(c) Exchange Act Compliance. During the Prospectus Delivery Period, the Issuers will
file all documents required to be filed with the Commission and the Nasdaq Stock Market,
Inc. pursuant to Section 13, 14 or 15 of the Exchange Act in the manner and within the time
periods required by the Exchange Act.
(d) Final Term Sheet. The Issuers will prepare a final term sheet in a form approved
by the Representative, 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”).
(e) Permitted Free Writing Prospectuses. The Issuers represent that they have not
made, and agree that, unless they obtain the prior written consent of the Representative,
they will not make, any offer relating to the Notes that constitutes or would constitute an
Issuer Free Writing Prospectus or that otherwise constitutes or would constitute a “free
writing prospectus” (as defined in Rule 405 of the Securities Act) or a portion thereof
required to be filed by the Issuers with the Commission or retained by the Issuers under
Rule 433 of the Securities Act; provided that the prior written consent of the
Representative hereto shall be deemed to have been given in respect of the free writing
prospectuses included in Schedule C hereto and any electronic road show. Any such free
writing prospectus consented to by the Representative is hereinafter referred to as a
“Permitted Free Writing Prospectus.” The Issuers agree that they (i) have treated and will
treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing
Prospectus, and (ii) have complied and will comply, as the case may be, with the
requirements of Rules 164 and 433 of the Securities Act applicable to any Permitted Free
Writing Prospectus, including in respect of timely filing with the Commission, legending and
record keeping. The Issuers consent to the use by any Underwriter of a free writing
prospectus that (a) is not an “issuer free writing prospectus” as defined in Rule 433, or
(b) contains only (1) information describing the preliminary terms of the Securities or
their offering, (2) information that describes the final terms of the Securities or their
offering and that is included in the Final Term Sheet of the Partnership contemplated in
Section 1(d) or (3) information permitted under Rule 134 under the Securities Act; provided
that each Underwriter severally covenants with the Issuers not to take any action without
the Issuers’ consent, which consent shall be confirmed in writing, that would result in the
Issuers being required to file with the Commission under Rule 433(d) under the Securities
Act a free writing prospectus prepared by or on behalf of such Underwriter that otherwise
would not be required to be filed by the Issuers thereunder, but for the action of the
Underwriter.
(f) Amendments and Supplements to the Registration Statement, Disclosure Package and
Prospectus and Other Securities Act Matters. If, during the Prospectus Delivery Period, any
event or development shall occur or condition exist as a result of which the Disclosure
Package or the Prospectus as then amended or supplemented would 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 or then
prevailing, as the case may be, not misleading, or if it shall be
- 20 -
necessary to amend or supplement the Disclosure Package or the Prospectus, or to file under
the Exchange Act any document incorporated by reference in the Disclosure Package or the
Prospectus, in order to make the statements therein, in the light of the circumstances under
which they were made or then prevailing, as the case may be, not misleading, or if in the
opinion of the Representative it is otherwise necessary to amend or supplement the
Registration Statement, the Disclosure Package or the Prospectus, or to file under the
Exchange Act any document incorporated by reference in the Disclosure Package or the
Prospectus, or to file a new registration statement containing the Prospectus, in order to
comply with law, including in connection with the delivery of the Prospectus, the Issuers
agree to (i) notify the Representative of any such event or condition and (ii) promptly
prepare (subject to Section 4(a) and 4(e) hereof), file with the Commission (and use their
best efforts to have any amendment to the Registration Statement or any new registration
statement to be declared effective) and furnish at their own expense to the Underwriters and
to dealers, amendments or supplements to the Registration Statement, the Disclosure Package
or the Prospectus, or any new registration statement, necessary in order to make the
statements in the Disclosure Package or the Prospectus as so amended or supplemented, in the
light of the circumstances under which they were made or then prevailing, as the case may
be, not misleading or so that the Registration Statement, the Disclosure Package or the
Prospectus, as amended or supplemented, will comply with law.
(g) Copies of Any Amendments and Supplements to the Prospectus. The Issuers agree to
furnish to the Representative, without charge, during the Prospectus Delivery Period, as
many copies of the Prospectus and any amendments and supplements thereto (including any
documents incorporated or deemed incorporated by reference therein) and the Disclosure
Package as the Representative may reasonably request.
(h) Copies of the Registration Statements and the Prospectus. The Issuers will furnish
to the Representative and counsel for the Underwriters signed copies of the Registration
Statement 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, during the Prospectus Delivery Period, as many copies of each Preliminary
Prospectus, the Prospectus and any supplement thereto and the Disclosure Package as the
Representative may reasonably request.
(i) Blue Sky Compliance. The Issuers and the Guarantors shall cooperate with the
Representative and counsel for the Underwriters to qualify or register the Securities for
sale under (or obtain exemptions from the application of) the state securities or blue sky
laws or Canadian provincial securities laws or other foreign laws of those jurisdictions
designated by the Representative and consented to by the Issuers, and the Issuers and the
Guarantors shall comply in all material respects with such laws and shall continue such
qualifications, registrations and exemptions in effect so long as required for the
distribution of the Securities. Neither the Issuers nor any Guarantor shall be required to
(i) qualify as a foreign corporation or other entity or as a dealer in securities in any
such jurisdiction where it would not otherwise be required to so qualify, (ii) file any
general consent to service of process in any such jurisdiction or (iii) subject itself to
taxation in any
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such jurisdiction if it is not otherwise so subject. The Issuers and the Guarantors
will advise the Representative promptly of the suspension of the qualification or
registration of (or any such exemption relating to) the Securities 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, the Issuers and the Guarantors shall use their best efforts to
obtain the withdrawal thereof at the earliest possible moment.
(j) Use of Proceeds. The Issuers shall apply the net proceeds from the sale of the
Securities sold by it in the manner described under the caption “Use of Proceeds” in each of
the Disclosure Package and the Prospectus.
(k) Agreement Not to Offer to Sell Additional Securities. During the period of 30 days
following the date of this Agreement, the Issuers will not, without the prior written
consent of Banc of America Securities LLC (which consent may be withheld at the sole
discretion of Banc of America Securities LLC), directly or indirectly, sell, offer, contract
or grant any option to sell, pledge, transfer or establish an open “put equivalent position”
within the meaning of Rule 16a-1 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 Issuers or securities exchangeable
for or convertible into debt securities of the Issuers (other than as contemplated by this
Agreement).
(l) DTC. The Issuers shall use commercially reasonable efforts to obtain the approval
of DTC to permit the Notes to be eligible for “book-entry” transfer and settlement through
the facilities of DTC, and agree to comply with all of their agreements set forth in the
representation letters of the Issuers to DTC relating to the approval of the Notes by DTC
for “book-entry” transfer.
(m) Earnings Statement. As soon as practicable, the Issuers will make generally
available to its security holders and to the Representative an earnings statement (which
need not be audited) covering a period of at least twelve months beginning with the first
fiscal quarter of the Partnership occurring after the “effective date” (as defined in Rule
158 under the Securities Act) of the Registration Statement.
(n) Periodic Reporting Obligations. During the Prospectus Delivery Period the
Partnership shall file, on a timely basis, with the Commission and the Nasdaq Stock Market,
Inc. all reports and documents required to be filed under the Exchange Act.
(o) Filing Fees. The Issuers agree to pay the required Commission filing fees relating
to the Securities 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.
(p) Compliance with Xxxxxxxx-Xxxxx Act. During the Prospectus Delivery Period, the
Issuers will comply with all applicable securities and other laws, rules and
- 22 -
regulations, including, without limitation, the Xxxxxxxx-Xxxxx Act, and use their best
efforts to cause the Issuers’ directors and officers, in their capacities as such, to comply
with such laws, rules and regulations, including, without limitation, the provisions of the
Xxxxxxxx-Xxxxx Act.
(q) Future Reports to the Representative. During the period of two years hereafter the
Issuers will furnish to the Representative (i) to the extent not available on the
Commission’s Next-Generation XXXXX filing system, as soon as practicable after the end of
each fiscal year, copies of the Annual Report of the Partnership containing the balance
sheet of the Partnership as of the close of such fiscal year and statements of income,
stockholders’ equity and cash flows for the year then ended and the opinion thereon of the
Partnership’s independent public or certified public accountants; and (ii) to the extent not
available on the Commission’s Next-Generation XXXXX filing system, as soon as practicable
after the filing thereof, copies of each proxy statement, Annual Report on Form 10-K,
Quarterly Report on Form 10-Q, Current Report on Form 8-K or other report filed by the
Partnership with the Commission, FINRA or any securities exchange.
(r) No Manipulation of Price. The Issuers 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 Partnership to facilitate the sale or
resale of the Securities.
(s) Investment Limitation. The Issuers shall not invest, or otherwise use the proceeds
received by the Issuers from their sale of the Notes in such a manner as would require the
Partnership or any of its subsidiaries to register as an investment company under the
Investment Company Act.
(t) Notice of Inability to Use Automatic Shelf Registration Statement Form. If at any
time during the Prospectus Delivery Period, the Issuers receive from the Commission a notice
pursuant to Rule 401(g)(2) or otherwise ceases to be eligible to use the automatic shelf
registration statement form, the Issuers will (i) promptly notify the Representative,
(ii) promptly file a new registration statement or post-effective amendment on the proper
form relating to the Notes, in a form satisfactory to the Representative, (iii) use their
best efforts to cause such registration statement or post-effective amendment to be declared
effective and (iv) promptly notify the Representative of such effectiveness. The Issuers
will take all other action necessary or appropriate to permit the public offering and sale
of the Notes to continue as contemplated in the registration statement that was the subject
of the Rule 401(g)(2) notice or for which the Issuers have otherwise become ineligible.
References herein to the Registration Statement shall include such new registration
statement or post-effective amendment, as the case may be.
5. Payment of Expenses. The Issuers and the Guarantors, jointly and severally, agree
to pay all costs, fees and expenses incurred in connection with the performance of their
obligations hereunder and in connection with the transactions contemplated hereby, including
without limitation (i) all expenses incident to the issuance and delivery of the Securities
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(including all printing and engraving costs), (ii) all necessary issue, transfer and other stamp
taxes in connection with the issuance and sale of the Securities to the Underwriters, (iii) all
fees and expenses of the Issuers’ and the Guarantors’ counsel, independent public or certified
public accountants and other advisors, (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 the mailing and delivering of copies thereof to the Underwriters and
dealers, this Agreement, the Indenture, the DTC Agreement and the Securities, (v) all filing fees,
attorneys’ fees and expenses incurred by the Issuers, the Guarantors or the Underwriters in
connection with qualifying or registering (or obtaining exemptions from the qualification or
registration of) all or any part of the Securities for offer and sale under the securities laws of
the several states of the United States, the provinces of Canada or other jurisdictions designated
by the Underwriters (including, without limitation, the cost of preparing, printing and mailing
preliminary and final blue sky or legal investment memoranda, (vi) the fees and expenses of the
Trustee, including the fees and disbursements of counsel for the Trustee in connection with the
Indenture and the Securities, (vii) any fees payable in connection with the rating of the
Securities with the ratings agencies, (viii) the filing fees for FINRA’s review of the offering of
the Securities, and the reasonable fees and disbursements of counsel to the Underwriters in
connection with compliance with FINRA’s rules and regulations, if any, (ix) all fees and expenses
(including reasonable fees and expenses of counsel) of the Issuers and the Guarantors in connection
with approval of the Securities by DTC for “book-entry” transfer, (x) all expenses incident to the
“road show” for the offering of the Securities, including the cost of any chartered airplane or
other transportation, (xi) all other fees, costs and expenses referred to in Item 14 of Part II of
the Registration Statement and (xii) all other costs and expenses incident to the performance of
their obligations hereunder which are not otherwise specifically provided for in this Section 5.
It is understood, however, that, except as provided in this Section 5, Section 7, Section 8 and
Section 11 hereof, the Underwriters will pay all of their own costs and expenses, including the
fees and expenses of their counsel.
6. Conditions to the Obligations of the Underwriters. The obligations of the
Underwriters hereunder shall be subject, in their discretion, to the condition that all
representations and warranties of the Issuers and each Guarantor herein are true and correct at and
as of the date hereof and the Closing Date, the condition that the Issuers and each Guarantor shall
have performed all of their respective obligations hereunder theretofore to be performed, and the
following additional conditions:
(a) Accountants’ Comfort Letters. On the date hereof, the Underwriters shall have
received from each of KPMG LLP and PricewaterhouseCoopers, independent public accountants, a
letter dated the date hereof addressed to the Underwriters, in form and substance
satisfactory to the Representative, covering certain financial information included in or
incorporated by reference in the Disclosure Package and other customary information.
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(b) Compliance with Registration Requirements; No Stop Order; No Objection from FINRA.
For the period from and after effectiveness of this Agreement and prior to the Closing Date
and, with respect to the Securities:
(i) the Issuers shall have filed the Prospectus with the Commission (including
the information required by Rules 430A, 430B and 430C under the Securities Act) in
the manner and within the time period required by Rule 424(b) under the Securities
Act;
(ii) the Final Term Sheet, and any other material required to be filed by the
Issuers 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;
(iii) no stop order suspending the effectiveness of the Registration Statement,
or any post-effective amendment to the Registration Statement, shall be in effect
and no proceedings for such purpose or pursuant to Section 8A of the Securities Act
shall have been instituted or threatened by the Commission; and the Partnership
shall not have received from the Commission any notice pursuant to Rule 401(g)(2) of
the Securities Act objecting to use of the automatic shelf registration statement
form; and
(iv) FINRA shall have advised the Representative in writing that it has no
objection to the underwriting and other terms and arrangements related to the
offering of the Securities, if applicable.
(c) No Material Adverse Change or Ratings Agency Change. For the period from and after
the date of this Agreement and prior to the Closing Date:
(i) in the judgment of the Representative there shall not have occurred any
Material Adverse Change;
(ii) there shall not have been any change or decrease specified in the letter
or letters referred to in paragraph (a) of this Section 6 which is, in the sole
judgment of the Representative, so material and adverse as to make it impractical or
inadvisable to proceed with the offering, sale or delivery of the Securities as
contemplated by this Agreement, the Disclosure Package and the Prospectus; and
(iii) 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 the Partnership or any of its subsidiaries by any “nationally recognized
statistical rating organization” as such term is defined for purposes of Rule
436(g)(2) under the Securities Act as in effect July 20, 2010, and no such
organization shall have publicly announced that it has under surveillance or review,
with possible negative implications, any such rating.
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(d) Opinion of Counsel for the Partnership. On the Closing Date, the Underwriters
shall have received the favorable opinion of Xxxxxx & Xxxxxxx LLP, counsel for the Issuers,
dated as of such Closing Date, the form of which is attached as Exhibit A.
(e) Opinion of Counsel for the Underwriters. On the Closing Date, the Underwriters
shall have received the favorable opinion of Xxxxx Xxxxx LLP, counsel for the Underwriters,
dated as of such Closing Date, in form and substance satisfactory to, and addressed to, the
Underwriters, with respect to the issuance and sale of the Notes, the Registration
Statement, the Prospectus (together with any supplement thereto), the Disclosure Package and
other related matters as the Representative may reasonably require, and the Issuers shall
have furnished to such counsel such documents as they reasonably request for the purpose of
enabling them to pass upon such matters.
(f) Officers’ Certificate. On the Closing Date, the Representative shall have received
a written certificate executed by the Chief Executive Officer or President of each of the
Issuers and the Chief Financial Officer or Chief Accounting Officer of each of the Issuers,
dated as of the Closing Date, to the effect that the signers of such certificate have
carefully examined the Registration Statement, the Disclosure Package, the Prospectus and
any amendment or supplement thereto, any Issuer Free Writing Prospectus and any amendment or
supplement thereto and this Agreement, to the effect set forth in subsections (b) and
(c)(iii) of this Section 6, and further to the effect that:
(i) for the period from and after the date of this Agreement and prior to the
Closing Date, there has not occurred any Material Adverse Change;
(ii) the representations and warranties of the Issuers set forth in this
Agreement are true and correct on and as of the Closing Date with the same force and
effect as though expressly made on and as of the Closing Date; and
(iii) the Issuers have complied with all the agreements hereunder and satisfied
all the conditions on its part to be performed or satisfied hereunder at or prior to
the Closing Date.
(g) Bring-down Comfort Letters. On the Closing Date, the Underwriters shall have
received from each of KPMG LLP and PricewaterhouseCoopers, independent public accountants, a
letter dated such date, in form and substance satisfactory to the Representative, to the
effect that they reaffirm the statements made in the letter furnished by them pursuant to
subsection (a) of this Section 6, except that (i) it shall cover certain financial
information included in or incorporated by reference to the Prospectus and any amendment or
supplement thereto and (ii) 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, as the case
may be.
(h) Form of Securities and Indenture. The Securities and the Indenture shall be
executed by the Issuers, or the Guarantors, as the case may be, in form and substance
reasonably satisfactory to the Representative and the Trustee.
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(i) Closing Documents. At the Closing Date, the Issuers and the Guarantors shall have
furnished counsel for the Issuers, the Guarantors or the Underwriters, as the case may be,
such documents as they reasonably require for the purpose of enabling them to pass upon the
issuance and sale of the Securities as herein contemplated, or in order to evidence the
accuracy of any of the representations or warranties or fulfillment of any of the conditions
herein contained.
If any condition specified in this Section 6 is not satisfied when and as required to be
satisfied, this Agreement may be terminated by the Representative by notice to the Issuers 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 5, Section 7, Section 8, Section 9, Section 13
and Section 17 shall at all times be effective and shall survive such termination.
7. Reimbursement of Underwriters’ Expenses.
(a) Other than for those reasons set forth in Section 11(a)(ii), (iii) or (v), if this
Agreement shall be terminated by the Representative pursuant to Section 6, Section 10 or Section
11, or if the sale to the Underwriters of the Notes on the Closing Date is not consummated because
of any refusal, inability or failure on the part of the Issuers or any Guarantor to perform any
agreement herein or to comply with any provision hereof, the Issuers and the Guarantors, jointly
and severally, agree to reimburse the Representative and the other Underwriters (or such
Underwriters as have terminated this Agreement with respect to themselves), severally, upon demand
for all out-of-pocket expenses that shall have been reasonably incurred by the Representative and
the Underwriters in connection with the proposed purchase and the offering and sale of the
Securities, including but not limited to fees and disbursements of counsel, printing expenses,
travel expenses, postage, facsimile and telephone charges.
8. Indemnification.
(a) Indemnification of the Underwriters. The Issuers and the Guarantors agree, jointly and
severally, to indemnify and hold harmless each Underwriter, its directors, officers, employees,
agents and affiliates, 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 or such 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 (i) upon any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement, or any amendment thereto, including any information
deemed to be a part thereof pursuant to Rule 430B or 430C 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) upon any untrue statement or alleged untrue
statement of a material fact contained in any Issuer Free Writing Prospectus, any Preliminary
Prospectus or the Prospectus (or any amendment or supplement thereto), or the omission or alleged
omission therefrom of a material fact, in each case, necessary in order to make the statements
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 each such controlling
person for any and all expenses (including, subject
- 27 -
to Section 8(c), the fees and disbursements of counsel chosen by Banc of America Securities
LLC) as such expenses are reasonably incurred by such Underwriter, or its officers, directors,
employees and agents or such 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 Partnership by the Representative
expressly for use in the Registration Statement, any Issuer Free Writing Prospectus, any
Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto). The indemnity
agreement set forth in this Section 8(a) shall be in addition to any liabilities that the Issuers
may otherwise have.
(b) Indemnification of the Issuers and the Guarantors, Directors and Officers. Each
Underwriter agrees, severally and not jointly, to indemnify and hold harmless the Issuers and the
Guarantors, each of their respective directors and officers and each person, if any, who controls
the Issuers or any of the Guarantors within the meaning of the Securities Act or the Exchange Act,
against any loss, claim, damage, liability or expense, as incurred, to which the Issuers, 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 any untrue or alleged untrue statement of a material fact contained in the
Registration Statement, any Issuer Free Writing Prospectus, any Preliminary Prospectus or the
Prospectus (or any amendment or supplement thereto), or arises out of or is based upon the omission
or alleged omission to state therein a material fact required to be stated therein (in the case of
the Registration Statement) or necessary to make the statements therein 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, any Issuer Free Writing
Prospectus, any Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto),
in reliance upon and in conformity with written information furnished to the Issuers by any
Underwriter through the Representative expressly for use therein; and to reimburse the Issuers and
the Guarantors, or any such director, officer or controlling person for any legal and other expense
reasonably incurred by the Issuers and the Guarantors, or any 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 Issuers and the Guarantors hereby acknowledge that
the only information that the Underwriters have furnished to the Issuers through the Representative
expressly for use in the Registration Statement, any Issuer Free Writing Prospectus, any
Preliminary Prospectus or the Prospectus (or any amendment or supplement thereto) are (i) the
statements regarding the concession and reallowance figures appearing in the third paragraph under
the caption “Underwriting” in the Prospectus and (ii) the information relating to stabilization
appearing in the fifth paragraph under the caption “Underwriting” in the Prospectus. The indemnity
agreement set forth in this Section 8(b) shall be in addition to any liabilities that each
underwriter may otherwise have.
(c) Notifications and Other Indemnification Procedures. Promptly after receipt by an
indemnified party under this Section 8 of notice of the commencement of any action,
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such indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party under this Section 8, 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
obligations to any indemnified party 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,
if the defendants in any such action include both the indemnified party and the indemnifying party
and the indemnified party shall have reasonably concluded that a conflict may arise between the
positions of the indemnifying party and the indemnified party in conducting the defense of any such
action or that there may be legal defenses available to it and/or the other indemnified parties
that are different from or additional to those available to the indemnifying party, the indemnified
party or parties shall have the right to select separate counsel to assume such legal defenses and
to otherwise participate in the defense of such action on behalf of such indemnified party or
parties. Upon receipt of notice from the indemnifying party to such indemnified party of such
indemnifying party’s election so to assume the defense of such action and approval by the
indemnified party of counsel, the indemnifying party will not be liable to such indemnified party
under this Section 8 for any legal or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof unless (i) the indemnified party shall have employed
separate counsel in accordance with the proviso to the preceding sentence (it being understood,
however, that the indemnifying party shall not be liable for the expenses of more than one separate
counsel (other than local counsel), reasonably approved by the indemnifying party (or by Banc of
America Securities LLC in the case of Section 8(b)), representing all indemnified parties who are
parties to such action) or (ii) the indemnifying party shall not have employed counsel satisfactory
to the indemnified party to represent the indemnified party within a reasonable time after notice
of commencement of the action, in each of which cases the fees and expenses of counsel shall be at
the expense of the indemnifying party.
(d) Settlements. The indemnifying party under this Section 8 shall not be liable for any
settlement of any proceeding effected without its written consent, which shall not be withheld
unreasonably, but if settled with such consent or if there be 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 7(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 30 days after
receipt by such indemnifying party of the aforesaid request and (ii) such indemnifying party shall
not have reimbursed the indemnified party in accordance with such request prior to
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the date of such settlement. No indemnifying party shall, without the prior written consent
of the 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.
9. Contribution.
(a) If the indemnification provided for in Section 8 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 Issuers and the Guarantors, on the one
hand, and the Underwriters, on the other hand, from the offering of the Securities 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 Issuers and the Guarantors, on the one hand,
and the Underwriters, on the other hand, in connection with the statements or omissions or
inaccuracies in the representations and warranties herein which resulted in such losses, claims,
damages, liabilities or expenses, as well as any other relevant equitable considerations. The
relative benefits received by the Issuers and the Guarantors, on the one hand, and the
Underwriters, on the other hand, in connection with the offering of the Securities pursuant to this
Agreement shall be deemed to be in the same respective proportions as the total net proceeds from
the offering of the Securities pursuant to this Agreement (before deducting expenses) received by
the Issuers and the Guarantors, 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 Securities as set forth on such cover. The relative fault of the
Issuers and the Guarantors, 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 or any such inaccurate
or alleged inaccurate representation or warranty relates to information supplied by the Issuers and
the Guarantors, 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 8(c), any legal or other fees or disbursements reasonably incurred by such party in
connection with investigating or defending any action or claim.
The Issuers and the Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 9 were determined by pro rata allocation (even if the Un-
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derwriters 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 9.
Notwithstanding the provisions of this Section 9, no Underwriter shall be required to
contribute any amount in excess of the underwriting commissions received by such Underwriter in
connection with the Securities 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 9 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 9, 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 or officer of the Issuers or a Guarantor and
each person, if any, who controls the Issuers or a Guarantor within the meaning of the Securities
Act and the Exchange Act shall have the same rights to contribution as the Issuers and the
Guarantors.
10. Default of One or More of the Several Underwriters.
(a) If, on the Closing Date, any one or more of the several Underwriters shall fail or refuse
to purchase Securities that it or they have agreed to purchase hereunder on such date, and the
aggregate principal amount of Securities which such defaulting Underwriter or Underwriters agreed
but failed or refused to purchase does not exceed 10% of the aggregate principal amount of the
Securities to be purchased on such date, the other Underwriters shall be obligated, severally, in
the proportions that the principal amount of Securities to be purchased set forth opposite their
respective names on Schedule A bears to the aggregate principal amount of Securities set
forth opposite the names of all such non-defaulting Underwriters, or in such other proportions as
may be specified by the Representative with the consent of the non-defaulting Underwriters, to
purchase the Securities 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 Securities and the principal amount of Securities with respect to
which such default occurs exceeds 10% of the principal amount of Securities to be purchased on such
date, and arrangements satisfactory to the Representative and the Issuers for the purchase of such
Securities 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 5, Section 7,
Section 8, Section 9, Section 13 and Section 17 shall at all times be effective and shall survive
such termination. In any such case either the Representative or the Issuers 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, any Issuer Free Writing Prospectus, the 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 10. Any action taken under this Section 10 shall not
relieve any defaulting Underwriter from liability in respect of any default of such Underwriter
under this Agreement.
- 31 -
11. Termination of this Agreement.
(a) Prior to the Closing Date this Agreement may be terminated by the Representative by notice
given to the Issuers if at any time (i) trading or quotation in any of the Partnership’s securities
shall have been suspended or limited by the Commission or by the Nasdaq Stock Market, Inc., (ii)
trading in securities generally on the New York Stock Exchange or the Nasdaq Stock Market, Inc.
shall have been suspended or limited, or minimum or maximum prices shall have been generally
established on any of such stock exchanges by the Commission or the NASD; (iii) a general banking
moratorium shall have been declared by federal or New York authorities or a material disruption in
commercial banking or securities settlement or clearance services in the United States has
occurred; (iv) in the judgment of the Representative there shall have occurred any Material Adverse
Change; or (v) there shall have occurred any outbreak or escalation of national or international
hostilities or any crisis or calamity, or any change in the United States or international
financial markets, or any substantial change or development involving a prospective substantial
change in United States’ or international political, financial or economic conditions, as in the
judgment of the Representative is material and adverse and makes it impracticable or inadvisable to
market the Securities in the manner and on the terms described in the Disclosure Package or the
Prospectus or to enforce contracts for the sale of securities. Any termination pursuant to this
Section 11 shall be without liability on the part of (a) the Issuers or any Guarantor to any
Underwriter, except that the Issuers shall be obligated to reimburse the expenses of the
Representative and the Underwriters pursuant to Sections 5, 7, 8 and 9 hereof or (b) any
Underwriter to the Issuers.
12. No Advisory or Fiduciary Responsibility.
(a) The Issuers and each Guarantor acknowledge and agree that: (i) the purchase and sale of
the Securities pursuant to this Agreement, including the determination of the public offering price
of the Securities and any related discounts and commissions, is an arm’s-length commercial
transaction between the Issuers and such Guarantor, on the one hand, and the several Underwriters,
on the other hand, and the Issuers and such Guarantor are capable of evaluating and understanding
and understand and accept the terms, risks and conditions of the transactions contemplated by this
Agreement; (ii) in connection with each transaction 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 Issuers, the Guarantors or any of their respective
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 Issuers or
such Guarantor with respect to any of the transactions contemplated hereby or the process leading
thereto (irrespective of whether such Underwriter has advised or is currently advising the Issuers
or such Guarantor on other matters) and no Underwriter has any obligation to the Issuers or such
Guarantor 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
Issuers and the Guarantors and that the several Underwriters have no obligation to disclose any of
such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the
Underwriters have not provided any legal, accounting, regulatory or tax advice with respect
- 32 -
to the offering contemplated hereby and the Issuers and the Guarantors have consulted their
own legal, accounting, regulatory and tax advisors to the extent they deemed appropriate.
This Agreement supersedes all prior agreements and understandings (whether written or oral)
between the Issuers, the Guarantors and the several Underwriters, or any of them, with respect to
the subject matter hereof. The Issuers and each Guarantor hereby waive and release, to the fullest
extent permitted by law, any claims that the Issuers or such Guarantor may have against the several
Underwriters with respect to any breach or alleged breach of agency or fiduciary duty.
13. Representations and Indemnities to Survive Delivery. The respective indemnities,
agreements, representations, warranties and other statements of each Issuer, of its officers and of
the several Underwriters set forth in or made pursuant to this Agreement will remain operative and
in full force and effect, regardless of any (A) 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 (B) acceptance of the Securities and payment for them
hereunder. The provisions of Section 5, Section 7, Section 8, Section 9, this Section 13 and
Section 17 hereof shall survive the termination or cancellation of this Agreement.
14. Notices. All communications hereunder shall be in writing and shall be mailed,
hand delivered or telecopied and confirmed to the parties hereto as follows:
If to the Representative:
Banc of America Securities LLC
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Legal Department
Xxx Xxxxxx Xxxx
Xxx Xxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Legal Department
And (which shall not constitute notice):
Xxxxx Xxxxx LLP
000 Xxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxx X. Xxxxxxxx
000 Xxxxxxxxx Xxxxxx, Xxxxx 0000
Xxxxxxx, XX 00000
Facsimile: (000) 000-0000
Attention: Xxx X. Xxxxxxxx
If to the Issuers:
Regency Energy Partners LP
0000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, XX 00000
Facsimile: 000-000-0000
Attention: Chief Legal Officer
0000 Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxx, XX 00000
Facsimile: 000-000-0000
Attention: Chief Legal Officer
- 33 -
Any party hereto may change the address for receipt of communications by giving written notice
to the others.
15. Successors and Assigns. This Agreement will inure to the benefit of and be
binding upon the parties hereto, including any substitute Underwriters pursuant to Section 10
hereof, and to the benefit of (i) the Issuers and the Guarantors, their respective directors and
officers and any person who controls the Issuers or any of the Guarantors within the meaning of the
Securities Act and the Exchange Act, (ii) the Underwriters, the officers, directors, employees and
agents of the Underwriters, and each person, if any, who controls any Underwriter within the
meaning of the Securities Act and the Exchange Act, and (iii) the respective successors and assigns
of any of the above, all as and to the extent provided in this Agreement, and no other person shall
acquire or have any right under or by virtue of this Agreement. The term “successors and assigns”
shall not include a purchaser of any of the Securities from any of the several Underwriters merely
because of such purchase.
16. 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.
17. Governing Law Provisions. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
18. 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. Delivery of
an executed counterpart of a signature page to this Agreement by telecopier, facsimile, email or
other electronic transmission (i.e., “pdf” or “tif”) shall be effective as delivery of a
manually executed counterpart of this Agreement. 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 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 8 and the contribution provisions of
Section 9, and is fully informed regarding said provisions. Each of the parties hereto further
acknowledges that the provisions of Sections 8 and 9 hereto fairly allocate the risks in light of
the ability of the parties to investigate the Issuers, their affairs and their businesses in order
to assure that adequate disclosure has been made in the Registration Statement, the
- 34 -
Disclosure Package and the Prospectus (and any amendments and supplements thereto), as required by
the Securities Act and the Exchange Act.
- 35 -
If the foregoing is in accordance with your understanding of our agreement, kindly sign and
return to the Issuers and the Guarantors 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, REGENCY ENERGY PARTNERS LP |
||||
By: | Regency GP LP, its general partner | |||
By: | Regency GP LLC, its general partner | |||
By: | /s/ Xxxxx X. Xxxxxx | |||
Name: | Xxxxx X. Xxxxxx | |||
Title: | President and Chief Executive Officer | |||
REGENCY ENERGY FINANCE CORP. |
||||
By: | /s/ Xxxxx X. Xxxxxx | |||
Name: | Xxxxx X. Xxxxxx | |||
Title: | President | |||
Guarantors REGENCY GAS SERVICES LP |
||||
By: | Regency OLP GP LLC, its general partner | |||
By: | /s/ Xxxxx X. Xxxxxx | |||
Xxxxx X. Xxxxxx | ||||
President | ||||
GULF STATES TRANSMISSION CORPORATION PUEBLO HOLDINGS, INC. PUEBLO MIDSTREAM GAS CORPORATION |
||||
Signature Page to Underwriting Agreement
By: | /s/ Xxxxx X. Xxxxxx
|
|||||
President | ||||||
CDM RESOURCE MANAGEMENT LLC FRONTSTREET HUGOTON LLC XXXXXXX JOINT VENTURE |
||||||
By: Regency Field Services LLC and Regency Gas Services LP, its venturers | ||||||
REGENCY FIELD SERVICES LLC REGENCY GAS MARKETING LLC REGENCY GAS UTILITY LLC REGENCY HAYNESVILLE INTRASTATE GAS LLC REGENCY LIQUIDS PIPELINE LLC REGENCY MIDCONTINENT EXPRESS PIPELINE I LLC |
||||||
By: Regency Midcontinent Express LLC, its sole member | ||||||
REGENCY MIDCONTINENT EXPRESS LLC REGENCY ZEPHYR LLC WGP-KHC, LLC |
||||||
By: Frontstreet Hugoton LLC, its sole member | ||||||
By: | Regency Gas Services LP, its sole member | |||||
By: | Regency OLP GP LLC, its general partner | |||||
By: | /s/ Xxxxx X. Xxxxxx
|
|||||
President | ||||||
REGENCY OLP GP LLC | ||||||
By: | /s/ Xxxxx X. Xxxxxx
|
|||||
President |
Signature Page to Underwriting Agreement
The foregoing Agreement is hereby confirmed and accepted by the Representative as of the date
first above written.
BANC OF AMERICA SECURITIES LLC | ||||
Acting as Representative of the several Underwriters named in the attached Schedule A. | ||||
By:
|
Banc of America Securities LLC | |||
By:
|
/s/ Xxx Xxxxxxxx
|
|||
Managing Director |
Signature Page to Underwriting Agreement
SCHEDULE A
Principal | ||||
Amount of | ||||
Securities | ||||
To Be | ||||
Underwriters | Purchased | |||
Banc of America Securities LLC |
$ | 150,000,000 | ||
RBS Securities Inc. |
$ | 102,000,000 | ||
Citigroup Global Markets Inc. |
$ | 72,000,000 | ||
Credit Suisse Securities (USA) LLC. |
$ | 72,000,000 | ||
Xxxxxx Xxxxxxx & Co. Incorporated |
$ | 72,000,000 | ||
Xxxxx Fargo Securities, LLC |
$ | 72,000,000 | ||
Deutsche Bank Securities Inc. |
$ | 30,000,000 | ||
SunTrust Xxxxxxxx Xxxxxxxx, Inc. |
$ | 30,000,000 | ||
Total |
$ | 600,000,000 |
SCHEDULE B
Guarantors
I.R.S. Employer | ||||||
State or Other Jurisdiction of | Identification | |||||
Exact Name of Registrant Guarantor(1) | Incorporation or Formation | Number | ||||
CDM Resource Management LLC |
Delaware | 00-0000000 | ||||
FrontStreet Hugoton LLC |
Delaware | 00-0000000 | ||||
Gulf States Transmission Corporation |
Louisiana | 00-0000000 | ||||
Xxxxxxx Joint Venture |
Texas | 00-0000000 | ||||
Pueblo Holdings, Inc. |
Delaware | 00-0000000 | ||||
Pueblo Midstream Gas Corporation |
Texas | 00-0000000 | ||||
Regency Field Services LLC |
Delaware | 00-0000000 | ||||
Regency Gas Marketing LLC |
Delaware | 00-0000000 | ||||
Regency Gas Services LP |
Delaware | 00-0000000 | ||||
Regency Gas Utility LLC |
Delaware | 00-0000000 | ||||
Regency Haynesville Intrastate Gas LLC |
Delaware | 00-0000000 | ||||
Regency Liquids Pipeline LLC |
Delaware | 00-0000000 | ||||
Regency Midcontinent Express LLC |
Delaware | 00-0000000 | ||||
Regency Midcontinent Express Pipeline I LLC |
Delaware | 00-0000000 | ||||
Regency OLP GP LLC |
Delaware | 00-0000000 | ||||
Regency Zephyr LLC |
Delaware | 00-0000000 | ||||
WGP-KHC LLC |
Delaware | 00-0000000 |
SCHEDULE C
Issuer Free Writing Prospectuses
1. | Free Writing Prospectus dated October 13, 2010 and filed with the Securities and Exchange Commission on October 13, 2010. |
Exhibit A
Form of Opinion of Counsel for the Partnership and the Guarantors
Opinion of counsel for the Issuers and the Guarantors to be delivered pursuant to Section 5(d)
of the Underwriting Agreement.
1. Each of the Issuers and the Delaware Guarantors is a corporation, limited liability company
or limited partnership, as applicable, under the laws of the State of Delaware with corporate,
limited liability company or limited partnership power and authority, as applicable, to own its
properties and to conduct its business as described in the Registration Statement, the Preliminary
Prospectus and the Prospectus. With your consent, based solely on certificates from public
officials, we confirm that the each of the Issuers and the Delaware Guarantors is validly existing
and in good standing under the laws of the State of Delaware and is qualified to do business in the
States set forth opposite their respective names on Annex B.
2. The Texas Guarantor is a corporation under the laws of the State of Texas with corporate
power and authority to own its properties and to conduct its business as described in the
Registration Statement, the Preliminary Prospectus and the Prospectus. With your consent, based
solely on certificates from public officials, we confirm that the Texas Guarantor is validly
existing and in good standing under the laws of the State of Texas and is qualified to do business
in the States set forth opposite its names on Annex B.
3. The execution, delivery and performance of the Underwriting Agreement have been duly
authorized by all necessary corporate and limited partnership action, as applicable, of each
Issuer, and the Underwriting Agreement has been duly executed and delivered by the Issuers.
4. The Indenture has been duly authorized by all necessary corporate, limited liability
company and limited partnership action, as applicable, of each Issuer and Specified Guarantor, has
been duly executed and delivered by each Issuer and Specified Guarantor, and is the legally valid
and binding agreement of each Issuer and Specified Guarantor, enforceable against each Issuer and
Guarantor in accordance with its terms.
5. The Notes have been duly authorized by all necessary corporate and limited partnership
action, as applicable, of the Issuers and, when executed, issued and authenticated in accordance
with the terms of the Indenture and delivered and paid for in accordance with the terms of the
Underwriting Agreement, will be legally valid and binding obligations of the Issuers, enforceable
against the Issuers in accordance with their terms.
6. The Guarantees have been duly authorized by all necessary corporate, limited liability
company and limited partnership action, as applicable, of each Specified Guarantor, and, when
executed and issued in accordance with the terms of the Indenture and delivered and paid for in
accordance with the terms of the Underwriting Agreement, will be legally valid and
Exhibit A-1
binding obligations of each Guarantor, enforceable against each Guarantor in accordance with their
terms.
7. The Indenture has been qualified under the Trust Indenture Act of 1939, as amended.
8. The execution and delivery of the Underwriting Agreement, the issuance and sale of the
Notes by the Issuers to you and the other Underwriters pursuant to the Underwriting Agreement do
not on the date hereof:
i. | violate the Governing Documents; or | ||
ii. | result in the breach of or a default under any of the Specified Agreements; or | ||
iii. | violate any federal or New York or Texas statute, rule or regulation applicable to the Issuers and the Specified Guarantors or the DGCL, DLLCA or the DRULPA; or | ||
iv. | require any consents, approvals, or authorizations to be obtained by the Issuers from, or any registrations, declarations or filings to be made by the Issuers with, any governmental authority under any federal, New York or Texas statute, rule or regulation applicable to the Issuers and the Specified Guarantors or the DGCL, DLLCA or DRULPA on or prior to the date hereof that have not been obtained or made. |
9. The Registration Statement has become effective under the Act. With your consent, based
solely on a telephonic confirmation by a member of the Staff of the Commission on October 27, 2010,
we confirm that no stop order suspending the effectiveness of the Registration Statement has been
issued under the Act and no proceedings therefor have been initiated by the Commission. The
Preliminary Prospectus has been filed in accordance with Rule 424(b) under the Act, the Prospectus
has been filed in accordance with Rule 424(b) and 430B under the Act, and each Specified IFWP has
been filed in accordance with Rule 433(d) under the Act.
10. The Registration Statement at October 13, 2010, including the information deemed to be a
part thereof pursuant to Rule 430B under the Act, and the Prospectus, as of its date, each appeared
on their face to be appropriately responsive in all material respects to the applicable form
requirements for registration statements on Form S-3 under the Act and the rules and regulations of
the Commission thereunder; it being understood, however, that we express no view with respect to
the Trustee’s Form T-1 under the Trust Indenture Act, Regulation S T or the financial statements,
schedules, or other financial data, included in, incorporated by reference in, or omitted from, the
Registration Statement or the Prospectus. For purposes of this paragraph, we have assumed that the
statements made in the Registration Statement and the Prospectus are correct and complete.
11. The statements in the Preliminary Prospectus and the Prospectus under the captions
“Description of the Notes,” insofar as they purport to constitute a summary of the terms of
Exhibit A-2
the Notes, the Guarantees or the Indenture, and under the caption “Description of Other
Indebtedness,” insofar as they purport to describe or summarize certain provisions of the documents
referred to therein, are accurate descriptions or summaries in all material respects.
12. Each Issuer is not, and immediately after giving effect to the sale of the Notes in
accordance with the Underwriting Agreement and the application of the proceeds as described in the
Prospectus under the caption “Use of Proceeds,” will not be required to be, registered as an
“investment company” within the meaning of the Investment Company Act of 1940, as amended.
Exhibit A-3