EL PASO PIPELINE PARTNERS, L.P. 11,000,000 COMMON UNITS REPRESENTING LIMITED PARTNER INTERESTS UNDERWRITING AGREEMENT June 9, 2009
EXHIBIT 1.1
EXECUTION VERSION
11,000,000 COMMON UNITS
REPRESENTING LIMITED PARTNER INTERESTS
UNDERWRITING AGREEMENT
June 9, 2009
June 9, 2009
Xxxxxx Xxxxxxx & Co. Incorporated
Barclays Capital Inc.
Citigroup Global Markets Inc.
UBS Securities LLC
Barclays Capital Inc.
Citigroup Global Markets Inc.
UBS Securities LLC
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
El Paso Pipeline Partners, L.P., a Delaware limited partnership (the “Partnership”), proposes
to issue and sell to the several Underwriters named in Schedule II hereto (the “Underwriters”) the
number of common units representing limited partner interests set forth in Schedule I hereto (the
“Firm Units”). The Partnership also proposes to issue and sell to the several Underwriters not
more than the number of additional common units set forth in Schedule I hereto (the “Additional
Units”) if and to the extent that you, as Managers of the offering, shall have determined to
exercise, on behalf of the Underwriters, the right to purchase such common units granted to the
Underwriters in Section 2 hereof. The Firm Units and the Additional Units are hereinafter
collectively referred to as the “Units.” The common units representing limited partner interests of
the Partnership to be outstanding after giving effect to the sales contemplated hereby are
hereinafter referred to as the “Common Units.”
The Partnership and El Paso Pipeline GP Company, L.L.C., a Delaware limited liability company
(“MLP GP”) are hereinafter collectively referred to as the “Partnership Parties.”
El Paso Pipeline Partners Operating Company, L.L.C., a Delaware limited liability company
(“OLLC”), WIC Holdings Company, L.L.C., a Delaware limited liability company (“WIC Holdings”), El
Paso Wyoming Gas Supply Company, L.L.C., a Delaware limited liability company (“EP WGSC”), Wyoming
Interstate Company, Ltd., a Colorado limited partnership (“WIC”), EPPP SNG GP Holdings, L.L.C., a
Delaware limited liability company (“EPPP SNG”) and EPPP CIG GP Holdings, L.L.C., a Delaware
limited liability company (“EPPP CIG”) are hereinafter collectively referred to as the
“Subsidiaries.”
Southern Natural Gas Company, a Delaware general partnership (“SNG”), Southern Gas Storage
Company, L.L.C., a Delaware limited liability company
(“SGSC”), Bear Creek Storage Company, a
Louisiana joint venture (“Bear
Creek”), SNG Finance Company, L.L.C., a Delaware limited liability company (“SNG Finance”),
SNG Funding Company, L.L.C., a Delaware limited liability company (“SNG Funding”), Southern Natural
Issuing Corporation, a Delaware corporation (“SNG Issuing”), Colorado Interstate Gas Company, a
Delaware general partnership (“CIG”), WYCO Holding Company, L.L.C., a Delaware limited liability
company (“WYCO Holding”), WYCO Development LLC, a Colorado limited liability company (“WYCO
Development”), CIG Finance Company, L.L.C., a Delaware limited liability company (“CIG Finance”),
CIG Funding Company, L.L.C., a Delaware limited liability company (“CIG Funding”) and Colorado
Interstate Issuing Corporation, a Delaware corporation (“CIG Issuing”) are hereinafter collectively
referred to as the “Unconsolidated Affiliates.”
The Partnership Parties, the Unconsolidated Affiliates and the Subsidiaries are hereinafter
collectively referred to as the “Partnership Entities.”
The Partnership Entities, El Paso Pipeline Holding Company, L.L.C., a Delaware limited
liability company (“El Paso LLC”), El Paso Pipeline LP Holdings, L.L.C., a Delaware limited
liability company (“Holdings”) and El Paso Corporation, a Delaware corporation (“El Paso”) are
hereinafter collectively referred to as the “El Paso Entities.”
The Partnership has filed with the Securities and Exchange Commission (the “Commission”) a
registration statement (File No. 333-156978), including a prospectus, on Form S-3 relating to the
securities (the “Shelf Securities”), including the Units, to be issued from time to time by the
Partnership. The registration statement as amended to the date of this Agreement, including the
information (if any) deemed to be part of the registration statement at the time of effectiveness
pursuant to Rule 430A or Rule 430B under the Securities Act of 1933 (the “Securities Act”), is
hereinafter referred to as the “Registration Statement,” and the related prospectus covering the
Shelf Securities dated March 24, 2009 in the form first used to confirm sales of the Units (or in
the form first made available to the Underwriters by the Partnership to meet requests of purchasers
pursuant to Rule 173 under Securities Act) is hereinafter referred to as the “Basic Prospectus.”
The Basic Prospectus, as supplemented by the prospectus supplement specifically relating to the
Units in the form first used to confirm sales of the Units (or in the form first made available to
the Underwriters by the Partnership to meet requests of purchasers pursuant to Rule 173 under the
Securities Act) is hereinafter referred to as the “Prospectus,” and the term “preliminary
prospectus” means any preliminary form of the Prospectus. For purposes of this Agreement, “Issuer
Free Writing Prospectus” means each “free writing prospectus” (as defined in Rule 405 under the
Securities Act) prepared by or on behalf of the Partnership or used or referred to by the
Partnership in connection with the offering of the Units and “broadly available road show”
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means a
“bona fide electronic road show” as defined in Rule 433(h)(5) under the Securities Act that has
been made available without restriction to any person.
At or prior to the time when sales of the Units were first made (the “Time of Sale”), the
Partnership had prepared the following information (collectively, the “Time of Sale Prospectus”):
the preliminary prospectus together with the free writing prospectuses, if any, each identified in
Schedule I hereto.
As used herein, the terms “Registration Statement,” “preliminary prospectus,” “Time of Sale
Prospectus,” “Basic Prospectus” and “Prospectus” shall include the documents, if any, incorporated
by reference therein. The terms “supplement,” “amendment” and “amend” as used herein with respect
to the Registration Statement, the Basic Prospectus, the Time of Sale Prospectus or any free
writing prospectus shall include all documents subsequently filed by the Partnership with the
Commission pursuant to the Securities Exchange Act of 1934 (the “Exchange Act”), that are deemed to
be incorporated by reference therein.
1. Representations and Warranties. The Partnership Parties, jointly and severally, represent
and warrant to and agree with each of the Underwriters that:
(a) Registration Statement. (i) The Registration Statement has been declared effective under
the Securities Act; (ii) no stop order of the Commission preventing or suspending the use of any
preliminary prospectus or the effectiveness of the Registration Statement has been issued and no
proceedings for such purpose have been instituted or, to the Partnership’s knowledge, are
threatened by the Commission; (iii) the Registration Statement complied when it became effective,
complies and will comply, at the Closing Date (as defined in Section 4) and any Optional Closing
Date (as defined in Section 4), in all material respects with the requirements of the Securities
Act and the applicable rules and regulations of the Commission thereunder (the “Rules and
Regulations”); (iv) each preliminary prospectus filed as part of the registration statement as
originally filed or as part of any amendment thereto, or filed pursuant to Rule 424 under the
Securities Act, complied when so filed in all material respects with the Securities Act and Rules
and Regulations; (v) the Prospectus will comply, as of its date and at the Closing and any Optional
Closing Date, in all material respects with the requirements of the Securities Act and the Rules
and Regulations; (vi) each document filed or to be filed pursuant to the Exchange Act and
incorporated by reference in the Time of Sale Prospectus or the Prospectus complied or will comply
when so filed in all material respects with the Exchange Act and the Rules and Regulations; (vii)
any statutes, regulations, contracts or other documents that are required to be described in the
Registration Statement or the Prospectus or to be filed as exhibits to the Registration Statement
have been and will be so described or filed; (viii) the Registration Statement did not when it
became effective, does not and will not, at the Closing Date and any Optional Closing
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Date contain
an untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein not misleading; (ix) the Time of Sale
Prospectus does not and will not, at the Time of Sale when the Prospectus is not yet available to
prospective purchasers, at the
Closing Date and any Optional Closing Date, the Time of Sale Prospectus as then amended or
supplemented by the Partnership, if applicable, will not contain an untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein not misleading, in
light of the circumstances under which they were made; (x) each Issuer Free Writing Prospectus,
when considered together with the Time of Sale Prospectus at the Time of Sale, did not contain an
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein not misleading, in light of the circumstances under which they were made; and
(xi) the Prospectus will not, as of its date and at the Closing Date and any Optional Closing,
contain an untrue statement of a material fact or omit to state a material fact necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading;
provided, however, that the Partnership makes no representation or warranty with respect to any
statement contained in any preliminary prospectus, the Registration Statement, the Time of Sale
Prospectus, the Prospectus, any free writing prospectus or any broadly available road show
materials in reliance upon and in conformity with information furnished in writing by or on behalf
of an Underwriter through you to the Partnership expressly for use in such preliminary prospectus,
the Registration Statement, the Time of Sale Prospectus or the Prospectus.
(b) Issuer Free Writing Prospectuses Conform to the Requirements of the Securities Act. The
Partnership is not an “ineligible issuer” in connection with the offering pursuant to Rules 164,
405 and 433 under the Securities Act. Each Issuer Free Writing Prospectus conformed or will
conform in all material respects to the requirements of the Securities Act and the Rules and
Regulations on the date of first use, and the Partnership has complied with all prospectus delivery
requirements, any filing requirements and any record keeping requirements applicable to such Issuer
Free Writing Prospectus pursuant to the Rules and Regulations. The Partnership has not made any
offer relating to the Units that would constitute an Issuer Free Writing Prospectus without the
prior written consent of the Managers. The Partnership has retained in accordance with the Rules
and Regulations all Issuer Free Writing Prospectuses that were not required to be filed with the
Commission pursuant to the Rules and Regulations. The Partnership has taken all actions necessary
so that any “road show” (as defined in Rule 433 of the Rules and Regulations) in connection with
the offering of the Units will not be required to be filed pursuant to the Rules and Regulations.
No Issuer Free Writing Prospectus includes any information that conflicts with the information
contained in the Time of Sale Prospectus as of the Time of Sale.
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(c) Incorporated Documents. The documents incorporated or deemed to be incorporated by
reference in the Prospectus at the time they were or hereafter are filed with the Commission
complied and will comply in all material respects with the requirements of the Securities Act or
the Exchange Act, as applicable, and the Rules and Regulations.
(d) Formation and Qualification. Each of the Partnership Entities has been duly formed or
incorporated, as the case may be, is validly existing and is in good standing under the laws of its
respective jurisdiction of formation or incorporation, as applicable, with all corporate, limited
liability company or partnership, as the case may be, power and authority necessary to own or hold
its properties and to conduct the businesses in which it is engaged and, in the case of MLP GP, to
act as the general partner of the Partnership, in each case in all material respects as described
in the Registration Statement, the Time of Sale Prospectus and the Prospectus. Each of the
Partnership Entities is duly registered or qualified to do business in and is in good standing as a
foreign limited partnership, general partnership, limited liability company or corporation, as
applicable, in each jurisdiction in which its ownership or lease of property or the conduct of its
business requires such qualification or registration, except where the failure to be so qualified
or registered could not, individually or in the aggregate, have a material adverse effect on the
financial condition, securityholders’ equity, results of operations, properties, business or
prospects of the Partnership Entities taken as a whole (a “Material Adverse Effect”), or subject
the limited partners of the Partnership to any material liability or disability.
(e) Ownership of El Paso LLC. El Paso directly owns 99% of the issued and outstanding limited
liability company interests in El Paso LLC and indirectly, through a wholly-owned subsidiary, owns
1% of the issued and outstanding limited liability company interests in El Paso LLC; such limited
liability company interests are duly authorized and validly issued in accordance with El Paso LLC’s
LLC agreement (the “El Paso LLC LLC Agreement”) and fully paid (to the extent required by the El
Paso LLC LLC Agreement) and non-assessable (except as such nonassessability may be affected by
Sections 18-607 and 18-804 of the Delaware Limited Liability Company Act (the “Delaware LLC Act”));
and El Paso will own such limited liability company interests free and clear of all liens,
encumbrances, security interests, charges or claims (“Liens”), other than restrictions on transfers
arising under applicable securities laws or the El Paso LLC LLC Agreement.
(f) Ownership of MLP GP. El Paso LLC owns 100% of the issued and outstanding limited
liability company interests in MLP GP; such limited liability company interests is duly authorized
and validly issued in accordance with MLP GP’s LLC agreement the (“MLP GP LLC Agreement”) and fully
paid (to the extent required by the MLP GP LLC Agreement) and non-assessable (except as such
nonassessability may be affected by Sections 18-607 and 18-804
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of the Delaware Limited Liability
Company Act); and El Paso LLC owns such limited liability company interests free and clear of all
Liens, other than restrictions on transfers arising under applicable securities laws or the MLP GP
LLC Agreement.
(g) Ownership of the General Partner Interest in the Partnership. MLP GP 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 Partnership Agreement; and MLP GP owns such general partner interest
free and clear of all Liens, other than restrictions on transfers arising under applicable
securities laws or the Partnership Agreement.
(h) Ownership of Holdings. El Paso LLC owns 100% of the issued and outstanding limited
liability company interests in Holdings; such limited liability company interests are duly
authorized and validly issued in accordance with the Holdings Limited Liability Company Agreement
(the “Holdings LLC Agreement”) and fully paid (to the extent required by the Holdings LLC
Agreement) and non-assessable (except as such nonassessability may be affected by Sections 18-607
and 18-804 of the Delaware LLC Act); and El Paso LLC owns such limited liability company interests
free and clear of all Liens, other than restrictions on transfers arising under applicable
securities laws or the Holdings LLC Agreement.
(i) Ownership of the El Paso Units and the Incentive Distribution Rights. Holdings owns
55,326,397 Common Units (the “El Paso Common Units”) and 27,727,411 subordinated units (as defined
in the Partnership Agreement, the “Subordinated Units” and, together with the El Paso Common Units,
the “El Paso Units”) and MLP GP owns 100% of the Incentive Distribution Rights; the El Paso Units
and the Incentive Distribution Rights and the limited partner interests represented thereby have
been duly authorized and validly issued in accordance with the Partnership Agreement and are fully
paid (to the extent required under the Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by Sections 17-607 and 17-804 of the Delaware Revised Uniform
Limited Partnership Act (the “Delaware LP Act”)); and Holdings owns the El Paso Units and MLP GP
owns the Incentive Distribution Rights, in each case free and clear of all Liens, other than
restrictions on transfers arising under applicable securities laws or the Partnership Agreement and
other than the Lock-Up Agreement referred to in Section 6(j).
(j) Valid Issuance of the Units. The Units and the limited partner interests represented
thereby, are duly authorized in accordance with the Partnership Agreement and, when issued and
delivered to the Underwriters against payment therefor in accordance with this Agreement, will be
duly and validly issued, fully paid (to the extent required under the Partnership Agreement)
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and
nonassessable (except as such nonassessability may be affected by Sections 17-607 and 17-804 of the
Delaware LP Act).
(k) Capitalization. After giving effect to the offering of the Firm Units as contemplated by
this Agreement and the concurrent capital contribution to the Partnership by MLP GP, there will be
2,524,354 General Partner Units issued and outstanding, the issued and outstanding Units of the
Partnership will consist of 95,965,923 Common Units and 27,727,411 Subordinated Units.
(l) Ownership of OLLC. The Partnership owns 100% of the issued and outstanding limited
liability company interests in OLLC; such limited liability company interests have been duly
authorized and validly issued in accordance with the OLLC Limited Liability Company Agreement and
are fully paid (to the extent required under the OLLC Limited Liability Company Agreement) and
non-assessable (except as such nonassessability may be affected by Sections 18-607 and 18-804 of
the Delaware LLC Act); and the Partnership owns such limited liability company interests free and
clear of all Liens (except for restrictions on transfer arising under applicable securities laws or
the OLLC Limited Liability Company Agreement, or described in the Time of Sale Prospectus,
including under the Credit Facility).
(m) Ownership of the Subsidiaries. All of the equity interests in each of the Subsidiaries
and Unconsolidated Affiliates are owned as set forth on Exhibit A hereto; all of such
equity interests are duly and validly authorized and issued in accordance with the general
partnership, limited partnership or limited liability company agreements of each such Subsidiaries
and Unconsolidated Affiliates (the “Organizational Agreements”), are fully paid (to the extent
required by the Organizational Agreements) and nonassessable (except as such nonassessability may
be affected by (i) Sections 18-607 and 18-804 of the Delaware LLC Act, (ii) Sections 17-607 and
17-804 of the Delaware LP Act or (iii) Sections 15-309 and 15-807 of the Delaware Revised Uniform
Partnership Act (the “Delaware GP Act”) or, in the case of the general partner interests in SNG and
CIG, as set forth in the partnership agreement of SNG and CIG, respectively); and such equity
interests are owned as set forth on Exhibit A free and clear of all Liens (except for
restrictions on transfer arising under applicable Organizational Agreements or described in the
Time of Sale Prospectus, including under the Credit Facility).
(n) No Other Subsidiaries. Other than its direct or indirect ownership interests in the
Subsidiaries and the Unconsolidated Affiliates and the 10% non-economic voting interest in Xxxx
Express Company, LLC, the Partnership does 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, other than notes receivable held by CIG and SNG under the El Paso cash
management program and a note receivable from El Paso.
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(o) No Preemptive Rights, Registration Rights or Options. Except as identified in the Time of
Sale Prospectus, there are no (i) preemptive rights or other rights to subscribe for or to
purchase, nor any restriction upon the voting or transfer of, any equity interests in of any of the
Partnership Entities or (ii) outstanding options or warrants to purchase any securities of any of
the Partnership Entities. Except for such rights that have been waived or complied with, none of
the filing of the Registration Statement, the consummation of the transactions contemplated by this
Agreement, nor the offering or sale of the Units as contemplated by this Agreement gives rise to
any rights for or relating to the
registration of any Common Units or other securities of any of the Partnership Entities.
(p) Authority and Authorization. The Partnership has all requisite partnership power and
authority to issue, sell and deliver the Units, in accordance with and upon the terms and
conditions set forth in this Agreement, the Partnership Agreement, the Registration Statement and
the Time of Sale Prospectus. Each of MLP GP and the Partnership has all requisite right, power and
authority to execute and deliver this Agreement and to perform its respective obligations
thereunder. All corporate, partnership and limited liability company action, as the case may be,
required to be taken by Partnership Entities or any of their security holders, members or partners
for the authorization, issuance, sale and delivery of the Units and the consummation of the
transactions contemplated by this Agreement shall have been validly taken.
(q) Authorization, Execution and Delivery of this Agreement. This Agreement has been duly
authorized and validly executed and delivered by each of MLP GP and the Partnership.
(r) No Conflicts. None of (i) the offering, issuance and sale by the Partnership of the Units
and the application of the proceeds from the sale of the Units as described under “Use of Proceeds”
in Time of Sale Prospectus, (ii) the execution, delivery and performance of this Agreement by the
Partnership Entities party hereto or (iii) the consummation of the transactions contemplated hereby
(A) conflicts or will conflict with or constitutes or will constitute a violation of the
partnership agreement, limited liability company agreement, certificate of formation or conversion,
certificate or articles of incorporation, bylaws or other constituent document of any of the
Partnership Entities, (B) conflicts or will conflict with or constitutes or will constitute a
breach or violation of, or a default (or an event that, with notice or lapse of time or both, would
constitute such a default) under any indenture, mortgage, deed of trust, loan agreement, lease or
other agreement or instrument to which any of the Partnership Entities is a party or by which any
of them or any of their respective properties may be bound, (C) violates or will violate any
statute, law or regulation or any order, judgment, decree or injunction of any court or
governmental agency or body directed to any of the Partnership Entities or any of their properties
in a proceeding to which any
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of them or their property is a party or (D) results or will result in
the creation or imposition of any Lien upon any property or assets of any of the Partnership
Entities (other than Liens created pursuant to the Credit Facility), which conflicts, breaches,
violations, defaults or Liens, in the case of clauses (B), (C) or (D), would, individually or in
the aggregate have a Material Adverse Effect or materially impair the ability of the Partnership
Entities to perform their obligations under this Agreement.
(s) No Consents. No permit, consent, approval, authorization, order, registration, filing or
qualification of or with any court, governmental agency or
body having jurisdiction over any of the Partnership Entities is required in connection with
(i) the offering, issuance or sale by the Partnership of the Units, (ii) the application of the
proceeds therefrom as described under “Use of Proceeds” in the Time of Sale Prospectus, (iii) the
execution and delivery of this Agreement by the Partnership Entities party hereto and consummation
by such Partnership Entities of the transactions contemplated hereby, except for (A) such permits,
consents, approvals and similar authorizations as may be required under the Securities Act or the
Exchange Act and (B) for such consents that, if not obtained, would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect or materially impair the
ability of the Partnership Entities to consummate the transactions provided for in this Agreement.
(t) No Defaults. None of the Partnership Entities (i) is in violation of its certificate of
limited partnership, agreement of limited partnership, limited liability company agreement,
certificate of incorporation or bylaws or other organizational documents, (ii) is in violation of
any law, statute, ordinance, administrative or governmental rule or regulation applicable to it or
of any decree of any court or governmental agency or body having jurisdiction over it, or (iii) is
in breach, default (or an event which, with notice or lapse of time or both, would constitute such
an event) or violation in the performance of any obligation, agreement or condition contained in
any bond, debenture, note or any other evidence of indebtedness or in any agreement, indenture,
lease or other instrument to which it is a party or by which it or any of its properties may be
bound, which breach, default or violation, in the case of clauses (ii) or (iii), would,
individually or in the aggregate, have a Material Adverse Effect or materially impair the ability
of the Partnership Entities to consummate the transactions provided for in this Agreement.
(u) Conformity of Units to Description in the Time of Sale Prospectus and Prospectus. The
Units, when issued and delivered in accordance with the terms of the Partnership Agreement and this
Agreement against payment therefor as provided therein and herein, will conform in all material
respects to the description thereof contained in the Registration Statement, the Time of Sale
Prospectus and the Prospectus.
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(v) No Material Adverse Change. None of the Partnership Entities has sustained, since the
date of the latest audited financial statements included in the Time of Sale Prospectus, any loss
or interference with its business from fire, explosion, flood or other calamity, whether or not
covered by insurance, or from any labor dispute or court or governmental action, order or decree,
and since such date, there has not been any change in the capitalization or increase in the
long-term debt of any of the Partnership Entities or any adverse change in or affecting the
condition (financial or otherwise), results of operations, securityholders’ equity, properties,
management, prospects or business of the Partnership Entities, taken as a whole, in each case
except as could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.
(w) Conduct of Business. Except as disclosed in or contemplated by the Registration Statement
and Time of Sale Prospectus, since the date as of which information is given in the Time of Sale
Prospectus, none of the Partnership Entities has (i) incurred any liability or obligation, direct
or contingent, that, individually or in the aggregate, is material to the Partnership Entities
taken as a whole, other than liabilities and obligations that were incurred in the ordinary course
of business, (ii) entered into any transaction not in the ordinary course of business that,
individually or in the aggregate, is material to the Partnership Entities taken as a whole, or
(iii) declared, paid or made any dividend or distribution on any class of security.
(x) Financial Statements. The historical financial statements (including the related notes
and supporting schedules) included in the Registration Statement and Time of Sale Prospectus (i)
comply in all material respects with the applicable requirements under the Securities Act and the
Exchange Act, (ii) present fairly in all material respects the financial condition, results of
operations and cash flows of the entities purported to be shown thereby on the basis shown therein
at the dates or for the periods indicated, and (iii) have been prepared in accordance with
accounting principles generally accepted in the United States consistently applied throughout the
periods involved except for changes in accounting principles as described therein. The summary
historical financial data included in the Time of Sale Prospectus under the captions
“Summary—Summary Historical Financial Data” and “Summary—Results of Operations” are fairly
presented in all material respects and prepared on a basis consistent with the audited and
unaudited historical financial statements from which they have been derived.
(y) Statistical and Market-Related Data. The statistical and market-related data included in
the Time of Sale Prospectus are based on or derived from sources that the Partnership Entities
believe to be reliable and accurate in all material respects.
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(z) Independent Registered Public Accounting Firm. Ernst & Young LLP, who has audited the
audited financial statements contained in the Registration Statement and the Time of Sale
Prospectus, whose report appears in the Time of Sale Prospectus and the Prospectus and who has
delivered the initial letter referred to in Section 5(e) hereof, is, and was during the periods
covered by the financial statements covered by such reports, an independent registered public
accounting firm within the meaning of the Securities Act and the applicable rules and regulations
thereunder adopted by the Commission and the Public Company Accounting Oversight Board (United
States) (the “PCAOB”).
(aa) Title to Properties. Each Partnership Entity has good and indefeasible title to all its
interests in real property, other than real property held under lease, subject to recordation of
individual conveyances and assignments, and good title to all its personal property (excluding
easements or rights-of-way),
in each case free and clear of all Liens except (i) as described, and subject to the
limitations contained, in the Time of Sale Prospectus, (ii) for Liens that arise under the Credit
Facility, or (iii) such 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 or the Time of Sale Prospectus; and all assets held under lease by the
Partnership Entities are held by them under valid, subsisting and enforceable leases, with such
exceptions as do not materially interfere with the use made and proposed to be made of such assets
by the Partnership Entities.
(bb) Rights-of-Way. Each of the Partnership Entities has such consents, easements,
rights-of-way or licenses from any person (collectively, “rights-of-way”) as are necessary to
conduct its business in the manner described in and subject to the limitations contained in the
Time of Sale Prospectus, except for (i) qualifications, reservations and encumbrances that would
not have, individually or in the aggregate, 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 Time of Sale Prospectus,
at the Time of Sale, each Partnership Entity has fulfilled and performed all its material
obligations with respect to such rights-of-way required to be fulfilled or performed and no event
has occurred which 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 that would not have a Material Adverse
Effect; and except as described in the Time of Sale Prospectus, and none of such rights-of-way will
contain any restriction that is materially burdensome to the Partnership Entities, taken as a
whole.
(cc) Permits. Each of the Partnership Entities has such permits, consents, licenses,
franchises, certificates and authorizations of governmental or regulatory authorities (“permits”)
as are necessary to own or lease its properties
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and to conduct its business in the manner described
in the Time of Sale Prospectus, subject to such qualifications as may be set forth in the Time of
Sale Prospectus and except for such permits, consents, franchises, certificates and authorizations
which if not obtained, would not have, individually or in the aggregate, a Material Adverse Effect;
each of the Partnership Entities has fulfilled and performed in all material respects all its
obligations with respect to such permits in the manner described, and subject to the limitations
contained in the Time of Sale Prospectus, and to the knowledge of the Partnership Entities no event
has occurred that would prevent the permits from being renewed or reissued or that allows, or after
notice or lapse of time would allow, revocation or termination thereof or results or would result
in any impairment of the rights of the holder of any such permit. None of the Partnership Entities
has received written notification of any revocation or modification of any such permit.
(dd) Environmental Compliance. Except as described in the Time of Sale Prospectus or for which
adequate reserves have been established in accordance with generally accepted accounting
principles, each of the Partnership Entities, with respect to the assets owned or leased by the
Partnership Entities at the Time of Sale, (i) is, and at all times prior hereto was, in compliance
with any and all applicable federal, state and local laws and regulations relating to the
protection of human health and safety and the environment or imposing liability or standards of
conduct concerning any Hazardous Materials (as defined below) (“Environmental Laws”), (ii) has
received all permits required of them under applicable Environmental Laws to conduct their
respective businesses, (iii) is in compliance with all terms and conditions of any such permits and
(iv) has not received written notice, or to the knowledge of the Partnership Entities, oral
notification of any actual or alleged violation of Environmental Law, except where such
noncompliance with Environmental Laws, failure to receive required permits, failure to comply with
the terms and conditions of such permits could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. The term “Hazardous Material” 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.
(ee) Insurance. The Partnership Entities carry or are entitled to the benefits of insurance
relating to the assets owned or leased by the Partnership Entities at the Time of Sale in such
amounts and covering such risks as is commercially reasonable, and all insurance is in full force
and effect. None of the Partnership Entities believe that they will not be able (i) to renew their
existing insurance coverage relating to the assets owned or leased by the Partnership
12
Entities at
the Time of Sale as and when such policies expire or (ii) to obtain comparable coverage relating to
the assets owned or leased by the Partnership Entities at the Time of Sale from similar
institutions as may be necessary or appropriate to conduct such business as now conducted and at a
cost that would not reasonably be expected to have a Material Adverse Effect.
(ff) Litigation. Except as described in the Time of Sale Prospectus, there is (i) no action,
suit or proceeding before or by any court, arbitrator or governmental agency, body or official,
domestic or foreign, now pending or, to the knowledge of any of the Partnership Entities,
threatened, to which any of the Partnership Entities is or may be a party or to which the business
or property of any of the Partnership Entities is or may be subject, (ii) no statute, rule,
regulation or order that has been enacted, adopted or issued by any governmental agency and (iii)
no injunction, restraining order or order of any nature issued by a federal or state court or
foreign court of competent jurisdiction to which any of the
Partnership Entities is or may be subject, that, in the case of clauses (i), (ii) and (iii)
above, is reasonably expected to (A) individually or in the aggregate be expected to have a
Material Adverse Effect, (B) prevent or result in the suspension of the offering and issuance of
the Units, or (C) in any manner draw into question the validity of this Agreement.
(gg) Related Party Transactions. No relationship, direct or indirect, exists between or among
the El Paso Entities on the one hand, and the directors, officers, partners, customers or suppliers
of MLP GP and its affiliates (other than the Partnership Entities) on the other hand, which is
required to be described in the Time of Sale Prospectus or the Prospectus and which is not so
described.
(hh) No Labor Disputes. No labor dispute with the employees that are engaged in the business
of the Partnership Entities exists or, to the knowledge of the Partnership Entities, is imminent or
threatened. None of the Partnership Entities is in violation of or has received notice of any
violation with respect to any federal or state law relating to discrimination in the hiring,
promotion or pay of employees, nor any applicable federal or state wage and hour laws, nor any
state law precluding the denial of credit due to the neighborhood in which a property is situated,
the violation of any of which could reasonably be expected to have a Material Adverse Effect.
(ii) Tax Returns. Each of the Partnership Entities has filed (or has obtained extensions with
respect to) all material federal, state, local and foreign income and franchise tax returns
required to be filed through the date hereof, which returns are complete and correct in all
material respects, and has timely paid all taxes due thereon, other than those which are being
contested in good faith and for which adequate reserves have been established in accordance with
generally accepted accounting principles.
13
(jj) No Omitted Descriptions; Legal Proceedings. There are no legal or governmental
proceedings pending or contracts or other documents of a character required to be described in the
Registration Statement or the Time of Sale Prospectus or, in the case of documents, to be filed as
exhibits to the Registration Statement, that are not described and filed as required. None of the
Partnership Entities has knowledge that any other party to any such contract, agreement or
arrangement has any intention not to render full performance as contemplated by the terms thereof
except, in each case, as would not reasonably be expected to have a Material Adverse Effect; and
that statements made in the Time of Sale Prospectus under the captions “Conflicts of Interest and
Fiduciary Duties,” “Provisions of Our Partnership Agreement Relating to Cash Distributions,”
“Material Provisions of Our Partnership Agreement,” “Certain Relationships and Related Party
Transactions,” “Description of the Common Units,” “Underwriting,” and “Material Tax Considerations”
insofar as they purport to constitute summaries of the terms of statutes, rules or regulations,
legal
or governmental proceedings or contracts and other documents, constitute accurate summaries of
the terms of such statutes, rules and regulations, legal and governmental proceedings and contracts
and other documents in all material respects.
(kk) Books and Records. The Partnership Entities (i) make and keep accurate books and records
and (ii) maintain and has maintained a system of internal accounting controls sufficient to provide
reasonable assurance that (A) transactions are executed in accordance with management’s general or
specific authorization, (B) transactions are recorded as necessary to permit preparation of the
Partnership Entities’ financial statements in conformity with accounting principles generally
accepted in the United States and to maintain accountability for its assets, (C) access to the
assets of the Partnership Entities is permitted only in accordance with management’s general or
specific authorization and (D) the recorded accountability for the assets of the Partnership
Entities is compared with existing assets at reasonable intervals and appropriate action is taken
with respect to any differences.
(ll) Disclosure Controls and Procedures. (i) The Partnership Entities have established and
maintain disclosure controls and procedures (as such term is defined in Rule 13a-15 under the
Exchange Act), (ii) such disclosure controls and procedures are designed to ensure that the
information required to be disclosed by the Partnership Entities in the reports they file or submit
under the Exchange Act is accumulated and communicated to their respective management, including
their respective principal executive officers and principal financial officers, as appropriate, to
allow timely decisions regarding required disclosure to be made and (iii) such disclosure controls
and procedures are effective in all material respects to perform the functions for which they were
established.
14
(mm) No Changes in Internal Controls. Since the date of the most recent balance sheet of the
Partnership reviewed or audited by Ernst & Young LLP, (i) none of the Partnership Entities has been
advised of (A) any significant deficiencies in the design or operation of internal controls that
could adversely affect the ability of any of the Partnership Entities to record, process, summarize
and report financial data, or any material weaknesses in internal controls and (B) any fraud,
whether or not material, that involves management or other employees who have a significant role in
the internal controls of the Partnership Entities, and (ii) since that date, there have been no
significant changes in internal controls or in other factors that could significantly affect
internal controls, including any corrective actions with regard to significant deficiencies and
material weaknesses.
(nn) Xxxxxxxx-Xxxxx Act of 2002. There is and has been no failure on the part of the
Partnership and any of MLP GP’s directors or officers, in their capacities as such, to comply with
the applicable provisions of the Xxxxxxxx-
Xxxxx Act of 2002 and the rules and regulations promulgated in connection therewith.
(oo) No Distribution of Other Offering Materials. None of the Partnership Entities has
distributed nor, prior to the later to occur of the Closing Date and completion of the distribution
of the Units, will distribute any offering material in connection with the offering and sale of the
Units other than any Preliminary Prospectus, the Prospectus, any free writing prospectus to which
the Managers have consented in accordance with Section 1(b) or 6(c), any other materials, if any,
permitted by the Securities Act, including Rule 134.
(pp) Market Stabilization. None of MLP GP, the Partnership or any of their affiliates has
taken, directly or indirectly, any action designed to or which has constituted or which would
reasonably be expected to cause or result, under the Exchange Act or otherwise, in stabilization or
manipulation of the price of any securities of the Partnership or to facilitate the sale or resale
of the Units.
(qq) Listing on the New York Stock Exchange. The Units have been approved for listing on the
New York Stock Exchange, subject to official notice of issuance.
(rr) Investment Company. None of the Partnership Entities is now, or after sale of the Units
to be sold by the Partnership hereunder and application of the net proceeds from such sale as
described in the Time of Sale Prospectus under the caption “Use of Proceeds” will be, an
“investment company” or a company “controlled by” an “investment company” within the meaning of the
Investment Company Act of 1940, as amended (the “Investment Company Act”), and the rules and
regulations of the Commission thereunder.
15
(ss) No Foreign Operations. None of the Partnership Entities conducts business operations
outside the United States.
(tt) ERISA. Each Partnership Entity is in compliance in all material respects with all
presently applicable provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”);
no “reportable event” (as defined in ERISA) has occurred with respect to any “pension plan” (as
defined in ERISA) for which any Partnership Entity would have any liability, excluding any
reportable event for which a waiver could apply; no Partnership Entity expects to incur liability
under Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the
regulations and published interpretations thereunder (the “Code”); and each “pension plan” for
which any Partnership Entity would have any liability that is intended to be qualified under
Section 401(a) of the Code has been determined by the Internal Revenue Service to be so qualified
and nothing has occurred, whether by action or by failure to act, which could reasonably be
expected to cause the loss of such qualification.
(uu) Foreign Corrupt Practices Act. None of the Partnership Entities, nor, to the knowledge
of the Partnership Entities, any director, officer, agent, employee or other person associated with
or acting on behalf of any of the Partnership Entities, has (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity; or (ii) violated or is in violation of any provision of the U.S. Foreign Corrupt
Practices Act of 1977.
(vv) Money Laundering Laws. The operations of the Partnership Entities 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 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 any of the
Partnership Entities with respect to the Money Laundering Laws is pending or, to the knowledge of
the Partnership Entities, threatened, except, in each case, as would not reasonably be expected to
have a Material Adverse Effect.
(ww) Office of Foreign Assets Control. None of the Partnership Entities nor, to the knowledge
of the Partnership Entities, any director, officer, agent, employee or affiliate of the any of the
Partnership Entities is currently the subject of any sanctions administered by the Office of
Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Partnership 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 or
16
entity, for the purpose of financing the activities of any person or
entity that, at the time of such funding, is
the subject of any sanctions administered by OFAC.
2. Agreements to Sell and Purchase. The Partnership hereby agrees to sell to the several
Underwriters, and each Underwriter, upon the basis of the representations and warranties herein
contained, but subject to the conditions hereinafter stated, agrees, severally and not jointly, to
purchase from the Partnership the respective numbers of Firm Units set forth in Schedule I hereto
opposite its name at the purchase price set forth in Schedule I hereto (the “Purchase Price”).
On the basis of the representations and warranties contained in this Agreement, and subject to
its terms and conditions, the Partnership agrees to sell to the Underwriters the Additional Units,
and the Underwriters shall have the right to purchase, severally and not jointly, up to the number
of Additional Units set forth in Schedule I hereto at the Purchase Price. The Managers identified
in Schedule I may exercise this right on behalf of the Underwriters in whole or from time to time
in part by giving written notice not later than 30 days after the date of
this Agreement. Any exercise notice shall specify the number of Additional Units to be
purchased by the Underwriters and the date on which such units are to be purchased. Each purchase
date must be at least one business day after the written notice is given and may not be earlier
than the closing date for the Firm Units nor later than ten business days after the date of such
notice. Additional Units may be purchased as provided in
Section 4 hereof solely for the purpose
of covering over-allotments made in connection with the offering of the Firm Units. On each day,
if any, that Additional Units are to be purchased (an “Option Closing Date”), each Underwriter
agrees, severally and not jointly, to purchase the number of Additional Units (subject to such
adjustments to eliminate fractional Units as you may determine) that bears the same proportion to
the total number of Additional Units to be purchased on such Option Closing Date as the number of
Firm Units set forth in Schedule II hereto opposite the name of such Underwriter bears to the total
number of Firm Units.
3. Terms of Public Offering. The Partnership is advised by you that the Underwriters propose
to make a public offering of their respective portions of the Units as soon after the Registration
Statement and this Agreement have become effective as in your judgment is advisable. The
Partnership is further advised by you that the Units are to be offered to the public upon the terms
set forth in the Prospectus.
4. Payment and Delivery. Payment for the Firm Units shall be made to the Partnership in
Federal or other funds immediately available in New York City against delivery of such Firm Units
for the respective accounts of the several Underwriters at 10:00 a.m., New York City time, on the
closing date set forth in Schedule I hereto, or at such other time on the same or such other date,
not later
17
than the fifth business day thereafter, as shall be designated in writing by you. The
time and date of such payment are hereinafter referred to as the “Closing Date.”
Payment for any Additional Units shall be made to the Partnership in Federal or other funds
immediately available in New York City against delivery of such Additional Units for the respective
accounts of the several Underwriters at 10:00 a.m., New York City time, on the date specified in
the corresponding notice described in Section 2 or at such other time on the same or on such other
date, in any event not later than the tenth business day thereafter, as shall be designated in
writing by you.
The Firm Units and Additional Units shall be registered in such names and in such
denominations as you shall request in writing not later than one full business day prior to the
Closing Date or the applicable Option Closing Date, as the case may be. The Firm Units and
Additional Units shall be delivered to you in book entry form through the facilities of The
Depository Trust Company on the Closing Date or an Option Closing Date, as the case may be, for the
respective accounts of the several Underwriters, with any transfer taxes payable in
connection with the transfer of the Units to the Underwriters duly paid, against payment of
the Purchase Price therefor.
5. Conditions to the Underwriters’ Obligations. The several obligations of the Underwriters
are subject to the following conditions:
(a) Subsequent to the execution and delivery of this Agreement and prior to the Closing Date:
(i) there shall not have occurred any downgrading, nor shall any notice have been
given of any intended or potential downgrading or of any review for a possible change that
does not indicate the direction of the possible change, in the rating accorded any of the
securities of the Partnership Entities by any “nationally recognized statistical rating
organization,” as such term is defined for purposes of Rule 436(g)(2) under the Securities
Act; and
(ii) except as set forth in or contemplated by the Time of Sale Prospectus, as of the
date of this Agreement, there shall not have occurred any change, or any development
involving a prospective change, in the condition, financial or otherwise, or in the
earnings, business or operations of the Partnership Entities, taken as a whole, from that
set forth in the Time of Sale Prospectus as of the date of this Agreement that, in your
judgment, is material and adverse and that makes it, in your judgment, impracticable to
market the Units on the terms and in the manner contemplated in the Time of Sale
Prospectus.
18
(b) The Underwriters shall have received on the Closing Date a certificate, dated the Closing
Date and signed by the Chief Executive Officer and Chief Financial Officer of the General Partner
stating that:
(i) the representations, warranties and agreements of the Partnership
Parties in Section 1 of this Agreement are true and correct on and as of the
Closing Date, and the Partnership Parties have satisfied all the conditions on
their part to be performed or satisfied hereunder at or prior to the Closing
Date;
(ii) no stop order suspending the effectiveness of the Registration
Statement has been issued; and no proceedings or examination for that purpose
have been instituted or, to the knowledge of such officers, threatened;
(iii) since the date of the most recent financial statements included in
the Time of Sale Prospectus, there has been no Material Adverse Effect; and
(iv) they have carefully examined the Registration Statement, the Time of
Sale Prospectus and the Prospectus, and, in their opinion, (A) (1) the
Registration Statement, as of its effective date and as of the Closing Date, (2)
the Time of Sale Prospectus, as of the Time of Sale, and (3) the Prospectus, as
of the date of the Prospectus and as of the Closing Date, did not and do not
contain any untrue statement of a material fact and did not and do not omit to
state a material fact required to be stated therein or necessary to make the
statements therein (except in the case of the Registration Statement, in the
light of the circumstances under which they were made) not misleading, and (B)
since the Registration Statement’s effective date, no event has occurred that
should have been set forth in a supplement or amendment to the Registration
Statement, the Prospectus or any free writing prospectus that has not been so
set forth.
(c) The Underwriters shall have received on the Closing Date an opinion of Xxxxxxx Xxxxx LLP,
outside counsel for the Partnership, dated the Closing Date, substantially in the form attached
hereto as Exhibit B;
(d) The Underwriters shall have received on the Closing Date an opinion of Xxxxxx & Xxxxxx
L.L.P., counsel for the Underwriters, dated the Closing Date, covering the such matters with
respect to the issuance and sale of the Units, the Registration Statement, the Time of Sale
Prospectus and the Prospectus and other related matters as the Managers may reasonably require, and
19
the Partnership Entities shall have furnished to such counsel such documents as they may request
for the purpose of enabling them to pass upon such matters.
(e) The Underwriters shall have received, on each of the date hereof and the Closing Date, a
letter dated the date hereof or the Closing Date, as the case may be, in form and substance
satisfactory to the Underwriters, from Ernst & Young LLP, independent public accountants,
containing statements and information of the type ordinarily included in accountants’ “comfort
letters” to underwriters with respect to the financial statements and certain financial information
contained in the Registration Statement, the Time of Sale Prospectus and the Prospectus; provided
that the letter delivered on the Closing Date shall use a “cut-off date” not earlier than the date
hereof.
(f) The “lock-up” agreements, each substantially in the form of Exhibit C hereto,
between you and El Paso, El Paso LLC, Holdings, MLP GP and each officer and director of MLP GP
relating to sales and certain other dispositions of Units of Common Units or certain other
securities, delivered to you on or before the date hereof, shall be in full force and effect on the
Closing Date.
The several obligations of the Underwriters to purchase Additional Units hereunder are subject
to the delivery to you on the applicable Option Closing Date of such documents as you may
reasonably request with respect to the good standing of the Partnership Entities, the due
authorization and issuance of the Additional Units to be sold on such Option Closing Date and other
matters related to the issuance of such Additional Units.
6. Covenants of the Partnership Parties. The Partnership Parties covenant with each
Underwriter as follows:
(a) To furnish to you, without charge, a signed copy of the Registration Statement (including
exhibits thereto and documents incorporated by reference) and to deliver to each of the
Underwriters during the period mentioned in Section 6(e) or 6(f) below, as many copies of the Time
of Sale Prospectus, the Prospectus, any documents incorporated by reference therein and any
supplements and amendments thereto or to the Registration Statement as you may reasonably request.
(b) Before amending or supplementing the Registration Statement, the Time of Sale Prospectus
or the Prospectus, to furnish to you a copy of each such proposed amendment or supplement and not
to file any such proposed amendment or supplement to which you reasonably object.
(c) To furnish to you a copy of each proposed free writing prospectus to be prepared by or on
behalf of, used by, or referred to by the Partnership and
20
not to use or refer to any proposed free
writing prospectus to which you reasonably object.
(d) Not to take any action that would result in an Underwriter or the Partnership being
required to file with the Commission pursuant to Rule 433(d) under the Securities Act a free
writing prospectus prepared by or on behalf of the Underwriter that the Underwriter otherwise would
not have been required to file thereunder.
(e) If the Time of Sale Prospectus is being used to solicit offers to buy the Units at a time
when the Prospectus is not yet available to prospective purchasers and any event shall occur or
condition exist as a result of which it is necessary to amend or supplement the Time of Sale
Prospectus in order to make the statements therein, in the light of the circumstances, not
misleading, or if any event shall occur or condition exist as a result of which the Time of Sale
Prospectus conflicts with the information contained in the Registration Statement then on file, or
if, in the opinion of counsel for the Underwriters, it is necessary to amend or supplement the Time
of Sale Prospectus to comply with applicable law, forthwith to prepare, file with the Commission
and furnish, at its own expense, to the Underwriters and to any dealer upon request, either
amendments or supplements to the Time of Sale Prospectus so that the statements in the Time of Sale
Prospectus as so amended or supplemented will not, in the light of the circumstances when the Time
of Sale Prospectus is delivered to a prospective purchaser, be misleading or so that the Time of
Sale Prospectus, as amended or supplemented, will no longer conflict with the Registration
Statement, or so that the Time of Sale Prospectus, as amended or supplemented, will comply with
applicable law.
(f) If, during such period after the first date of the public offering of the Units as in the
opinion of counsel for the Underwriters the Prospectus (or in lieu thereof the notice referred to
in Rule 173(a) of the Securities Act) is required by law to be delivered in connection with sales
by an Underwriter or dealer, any event shall occur or condition exist as a result of which it is
necessary to amend or supplement the Prospectus in order to make the statements therein, in the
light of the circumstances when the Prospectus (or in lieu thereof the notice referred to in Rule
173(a) of the Securities Act) is delivered to a purchaser, not misleading, or if, in the opinion of
counsel for the Underwriters, it is necessary to amend or supplement the Prospectus to comply with
applicable law, forthwith to prepare, file with the Commission and furnish, at its own expense, to
the Underwriters and to the dealers (whose names and addresses you will furnish to the Partnership)
to which Units may have been sold by you on behalf of the Underwriters and to any other dealers
upon request, either amendments or supplements to the Prospectus so that the statements in the
Prospectus as so amended or supplemented will not, in the light of the circumstances when the
Prospectus (or in lieu thereof the notice referred to in Rule 173(a) of the Securities Act) is
delivered to a purchaser, be
21
misleading or so that the Prospectus, as amended or supplemented, will
comply with applicable law.
(g) To endeavor to qualify the Units for offer and sale under the securities or Blue Sky laws
of such jurisdictions as you shall reasonably request,
provided that, none of the Partnership Parties shall be required to qualify as a foreign
entity or to take any action that would subject any of the Partnership Parties to service of
process in any such jurisdiction where any such entity is not presently qualified or where any such
entity would be subject to taxation as a foreign entity.
(h) To make generally available to the Partnership’s security holders and to you as soon as
practicable an earning statement covering a period of at least twelve months beginning with the
first fiscal quarter of the Partnership occurring after the date of this Agreement which shall
satisfy the provisions of Section 11(a) of the Securities Act and the rules and regulations of the
Commission thereunder.
(i) Whether or not the transactions contemplated in this Agreement are consummated or this
Agreement is terminated, to pay or cause to be paid all expenses incident to the performance of its
obligations under this Agreement, including: (i) the fees, disbursements and expenses of the
Partnership’s counsel and the Partnership’s accountants in connection with the registration and
delivery of the Units under the Securities Act and all other fees or expenses in connection with
the preparation and filing of the Registration Statement, any preliminary prospectus, the Time of
Sale Prospectus, the Prospectus, any free writing prospectus prepared by or on behalf of, used by,
or referred to by the Partnership and amendments and supplements to any of the foregoing, including
all printing costs associated therewith, and the mailing and delivering of copies thereof to the
Underwriters and dealers, in the quantities hereinabove specified, (ii) all costs and expenses
related to the transfer and delivery of the Units to the Underwriters, including any transfer or
other taxes payable thereon, (iii) the cost of printing or producing any Blue Sky or Legal
Investment memorandum in connection with the offer and sale of the Units under state securities
laws and all expenses in connection with the qualification of the Units for offer and sale under
state securities laws as provided in Section 6(g) hereof, including filing fees and the reasonable
fees and disbursements of counsel for the Underwriters in connection with such qualification and in
connection with the Blue Sky or Legal Investment memorandum, (iv) all filing fees and the
reasonable fees and disbursements of counsel to the Underwriters incurred in connection with the
review and qualification of the offering of the Units by the Financial Industry Regulatory
Authority, (v) all costs and expenses incident to listing the Units on the NYSE,
(vi) the cost of printing certificates representing the Units, (vii) the costs and charges of
any transfer agent, registrar or depositary, (viii) the costs and expenses of the Partnership
relating to investor presentations on any “road show”
22
undertaken in connection with the marketing
of the offering of the Units, including, without limitation, expenses associated with the
preparation or dissemination of any electronic road show, expenses associated with the production
of road show slides and graphics, fees and expenses of any consultants engaged in connection with
the road show presentations with the prior approval of the Partnership, travel and lodging expenses
of the representatives and officers of the Partnership and any such consultants, and the cost of
any aircraft chartered in
connection with the road show, (ix) the document production charges and expenses associated
with printing this Agreement and (x) all other costs and expenses incident to the performance of
the obligations of the Partnership hereunder for which provision is not otherwise made in this
Section. It is understood, however, that except as provided in this Section, Section 8 entitled
“Indemnity and Contribution” and the last paragraph of Section 10 below, the Underwriters will pay
all of their costs and expenses, including fees and disbursements of their counsel, stock transfer
taxes payable on resale of any of the Units by them and any advertising expenses connected with any
offers they may make.
(j) Not to, without the prior written consent of Xxxxxx Xxxxxxx & Co. Incorporated on behalf
of the Underwriters, during the period ending 90 days after the date of the Prospectus (the
“Lock-up Period”), (a) offer, pledge, sell, contract to sell, sell any option or contract to
purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase,
lend, or otherwise transfer or dispose of, directly or indirectly, any Common Units or any
securities convertible into or exercisable or exchangeable for Common Units, or (b) enter into any
swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of the Common Units, whether any such transaction described in clause (a)
or (b) above is to be settled by delivery of Common Units or such other securities, in cash or
otherwise or (c) file any registration statement with the Commission relating to the offering of
any Units of Common Units or any securities convertible into or exercisable or exchangeable for
Common Units (other than any registration statement on Form S-8 or Form S-4). The foregoing
sentence shall not apply to (a) the Common Units to be sold hereunder, (b) the issuance by the
Partnership of Common Units or any securities convertible into or exercisable or exchangeable for
Common Units pursuant to the El Paso Pipeline GP Company, L.L.C. Long-Term Incentive Plan, (c)
issuances of Common Units, or securities convertible into or exercisable or exchangeable for Common
Units, pursuant to a Form S-4 in connection with a business combination or acquisition, provided
that, such issuances not exceed 5% of the total number of outstanding common units and the
recipient agrees to hold the balance of any Common Units sold pursuant to a Form S-4 for the
remainder of the Lock-up Period, (d) issuances of Common Units or other rights to acquire Common
Units in private transactions in connection with future acquisitions by the Partnership, provided
that the persons receiving Common Units or other rights to acquire Common Units shall have agreed
in writing to be bound by the terms of
23
these lock-up provisions for the remainder of the Lock-up
Period, or (e) the establishment of a trading plan pursuant to Rule 10b5-1 under the Exchange Act
for the transfer of Common Units, provided that such plan does not provide for the transfer of
Common Units during the 90 day restricted period.
7. Covenants of the Underwriters. Each Underwriter severally covenants with the Partnership
not to take any action that would result in the Partnership being required to file with the
Commission under Rule 433(d) a free writing prospectus prepared by or on behalf of such Underwriter
that otherwise
would not be required to be filed by the Partnership thereunder, but for the action of the
Underwriter.
8. Indemnity and Contribution.
(a) Each of the Partnership Parties agrees, jointly and severally, to indemnify and hold
harmless each Underwriter, each person, if any, who controls any Underwriter within the meaning of
either Section 15 of the Securities Act or Section 20 of the Exchange Act and each affiliate of any
Underwriter within the meaning of Rule 405 under the Securities Act from and against any and all
losses, claims, damages and liabilities (including, without limitation, any legal or other expenses
reasonably incurred in connection with defending or investigating any such action or claim) caused
by any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement or any amendment thereof, any preliminary prospectus, the Time of Sale
Prospectus, any issuer free writing prospectus as defined in Rule 433(h) under the Securities Act,
any Partnership information that the Partnership has filed, or is required to file, pursuant to
Rule 433(d) under the Securities Act, or the Prospectus or any amendment or supplement thereto, or
caused by any omission or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, except insofar as such losses,
claims, damages or liabilities are caused by any such untrue statement or omission or alleged
untrue statement or omission based upon information relating to any Underwriter furnished to the
Partnership in writing by such Underwriter through you expressly for use therein.
(b) Each Underwriter agrees, severally and not jointly, to indemnify and hold harmless each of
the Partnership Parties and each of their directors, each of their officers who sign the
Registration Statement and each person, if any, who controls the Partnership Parties within the
meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act to the same
extent as the foregoing indemnity from the Partnership to such Underwriter, but only with reference
to information relating to such Underwriter furnished to the Partnership in writing by such
Underwriter through you expressly for use in the Registration Statement, any preliminary
prospectus, the Time of Sale Prospectus, any issuer
24
free writing prospectus or the Prospectus or
any amendment or supplement thereto.
(c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to Section 8(a) or 8(b),
such person (the “indemnified party”) shall promptly notify the person against whom such indemnity
may be sought (the “indemnifying party”) in writing and the indemnifying party, upon request of the
indemnified party, shall retain counsel reasonably satisfactory to the indemnified party to
represent the indemnified party and any others the indemnifying party may designate in such
proceeding and shall pay the fees and disbursements of such counsel related to such proceeding. In
any such proceeding, any indemnified
party shall have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such indemnified party unless (i) the indemnifying party and the
indemnified party shall have mutually agreed to the retention of such counsel or (ii) the named
parties to any such proceeding (including any impleaded parties) include both the indemnifying
party and the indemnified party and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them. It is understood that
the indemnifying party shall not, in respect of the legal expenses of any indemnified party in
connection with any proceeding or related proceedings in the same jurisdiction, be liable for the
fees and expenses of more than one separate firm (in addition to any local counsel) for all such
indemnified parties and that all such fees and expenses shall be reimbursed as they are incurred.
Such firm shall be designated in writing by Xxxxxx Xxxxxxx & Co. Incorporated, in the case of
parties indemnified pursuant to Section 8(a), and by the Partnership, in the case of parties
indemnified pursuant to Section 8(b). The indemnifying party shall not be liable for any
settlement of any proceeding effected without its written consent, 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 from and against any loss or liability 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 the second and third sentences of this paragraph, 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 the date of such settlement. No indemnifying party
shall, without the prior written consent of the indemnified party, effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or could have been a
party and indemnity could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of
25
such indemnified party from all liability on claims
that are the subject matter of such proceeding.
(d) To the extent the indemnification provided for in Section 8(a) or 8(b) is unavailable to
an indemnified party or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each indemnifying party under such paragraph, in lieu of indemnifying
such indemnified party thereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (i) in such proportion
as is appropriate to reflect the relative benefits received by the Partnership Parties on the one
hand and the Underwriters on the other hand from the offering of the Units or (ii) if the
allocation provided by clause 8(d)(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 8(d)(i) above but
also the relative fault of the Partnership Parties on the one hand and of the Underwriters on the
other hand in
connection with the statements or omissions that resulted in such losses, claims, damages or
liabilities, as well as any other relevant equitable considerations. The relative benefits
received by the Partnership Parties on the one hand and the Underwriters on the other hand in
connection with the offering of the Units shall be deemed to be in the same respective proportions
as the net proceeds from the offering of the Units (before deducting expenses) received by the
Partnership Parties and the total underwriting discounts and commissions received by the
Underwriters bear to the aggregate initial public offering price of the Units set forth in the
Prospectus. The relative fault of the Partnership Parties on the one hand and the Underwriters on
the other hand shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Partnership Parties or by the Underwriters and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The Underwriters’ respective obligations to contribute pursuant to
this Section 8 are several in proportion to the respective number of Units they have purchased
hereunder, and not joint.
(e) The Partnership Parties and the Underwriters agree that it would not be just or equitable
if contribution pursuant to this Section 8 were determined by pro rata allocation (even if the
Underwriters were treated as one entity for such purpose) or by any other method of allocation that
does not take account of the equitable considerations referred to in Section 8(d). The amount paid
or payable by an indemnified party as a result of the losses, claims, damages and liabilities
referred to in Section 8(d) shall be deemed to include, subject to the limitations set forth above,
any legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 8, no Underwriter shall be required to contribute any amount in excess of the amount by
which the total price at which the Units underwritten by it and distributed to the public were
26
offered to the public exceeds the amount of any damages that such Underwriter has otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. 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 remedies provided for in this Section 8 are not exclusive and
shall not limit any rights or remedies which may otherwise be available to any indemnified party at
law or in equity.
(f) The indemnity and contribution provisions contained in this Section 8 and the
representations, warranties and other statements of the Partnership Parties contained in this
Agreement shall remain operative and in full force and effect regardless of (i) any termination of
this Agreement, (ii) any investigation made by or on behalf of any Underwriter, any person
controlling any Underwriter or any affiliate of any Underwriter or by or on behalf of the
Partnership Parties, each of their officers or directors or any person controlling the Partnership
Parties and (iii) acceptance of and payment for any of the Units.
9. Termination. The Underwriters may terminate this Agreement by notice given by the Managers
identified in Schedule I to the Partnership, if after the execution and delivery of this Agreement
and prior to the Closing Date (i) trading generally shall have been suspended or materially limited
on, or by, as the case may be, any of the New York Stock Exchange, the American Stock Exchange, the
NASDAQ Global Market, the Chicago Board of Options Exchange, the Chicago Mercantile Exchange or the
Chicago Board of Trade, (ii) trading of any securities of the Partnership shall have been suspended
on any exchange or in any over-the-counter market, (iii) a material disruption in securities
settlement, payment or clearance services in the United States shall have occurred, (iv) any
moratorium on commercial banking activities shall have been declared by Federal or New York State
authorities or (v) there shall have occurred any outbreak or escalation of hostilities, or any
change in financial markets or any calamity or crisis that, in your judgment, is material and
adverse and which, singly or together with any other event specified in this clause (v), makes it,
in your judgment, impracticable or inadvisable to proceed with the offer, sale or delivery of the
Units on the terms and in the manner contemplated in the Time of Sale Prospectus or the Prospectus.
10. Effectiveness; Defaulting Underwriters. This Agreement shall become effective upon the
execution and delivery hereof by the parties hereto.
If, on the Closing Date or an Option Closing Date, as the case may be, any one or more of the
Underwriters shall fail or refuse to purchase Units that it has or they have agreed to purchase
hereunder on such date, and the aggregate number of Units which such defaulting Underwriter or
Underwriters agreed but failed or refused to purchase is not more than one-tenth of the aggregate
number of the
27
Units to be purchased on such date, the other Underwriters shall be obligated
severally in the proportions that the number of Firm Units set forth opposite their respective
names in Schedule II bears to the aggregate number of Firm Units set forth opposite the names of
all such non-defaulting Underwriters, or in such other proportions as you may specify, to purchase
the Units which such defaulting Underwriter or Underwriters agreed but failed or refused to
purchase on such date; provided that in no event shall the number of Units that any Underwriter has
agreed to purchase pursuant to this Agreement be increased pursuant to this Section 10 by an amount
in excess of one-ninth of such number of Units without the written consent of such Underwriter.
If, on the Closing Date, any Underwriter or Underwriters shall fail or refuse to purchase Firm
Units and the aggregate number of Firm Units with respect to which such default occurs is more than
one-tenth of the aggregate number of Firm Units to be purchased on such date, and arrangements
satisfactory to you and the Partnership for the purchase of such Firm Units are not made within 36
hours after such default, this Agreement shall terminate without liability on the part of any
non-defaulting Underwriter or the Partnership. In any such case either you or the Partnership
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, in the Registration Statement, in the Time of Sale
Prospectus, in the Prospectus or in any other documents or arrangements
may be effected. If, on an Option Closing Date, any Underwriter or Underwriters shall fail or
refuse to purchase Additional Units and the aggregate number of Additional Units with respect to
which such default occurs is more than one-tenth of the aggregate number of Additional Units to be
purchased on such Option Closing Date, the non-defaulting Underwriters shall have the option to (i)
terminate their obligation hereunder to purchase the Additional Units to be sold on such Option
Closing Date or (ii) purchase not less than the number of Additional Units that such non-defaulting
Underwriters would have been obligated to purchase in the absence of such default. Any action
taken under this paragraph shall not relieve any defaulting Underwriter from liability in respect
of any default of such Underwriter under this Agreement.
If the Partnership shall fail to tender the Units for delivery to the Underwriters by reason
of any failure, refusal or inability on the part of any of the Partnership Entities to perform any
agreement on its part to be performed, or because any other condition to the Underwriters’
obligations hereunder required to be fulfilled by the Partnership Entities is not fulfilled for any
reason or (b) the Underwriters shall decline to purchase the Units for any reason permitted under
this Agreement, then, except as specified in the following sentence, the Partnership Entities will
reimburse the Underwriters for all reasonable out-of-pocket expenses (including fees and
disbursements of counsel) incurred by Underwriters in connection with this Agreement and the
proposed purchase of the Units, and upon demand the Partnership Entities shall pay the full amount
thereof to the Representatives. If this Agreement is terminated (i) pursuant to Section 9 because
of the occurrence of any event specified in Section 9 (other than as
28
specified in Sections 9(ii)),
the Partnership Entities shall not be obligated to reimburse the Underwriters for any expenses
specified in the immediately preceding sentence or (ii) pursuant to this Section 10 by reason of
the default of one or more Underwriters, the Partnership Entities shall not be obligated to
reimburse any defaulting Underwriter on account of those expenses.
11. Entire Agreement.
(a) This Agreement, together with any contemporaneous written agreements and any prior written
agreements (to the extent not superseded by this Agreement) that relate to the offering of the
Units, represents the entire agreement between the Partnership and the Underwriters with respect to
the preparation of any preliminary prospectus, the Time of Sale Prospectus, the Prospectus, the
conduct of the offering, and the purchase and sale of the Units.
(b) The Partnership acknowledges that in connection with the offering of the Units: (i) the
Underwriters have acted at arms length, are not agents of, and owe no fiduciary duties to, the
Partnership or any other person, (ii) the Underwriters owe the Partnership only those duties and
obligations set forth in this Agreement and prior written agreements (to the extent not superseded
by this Agreement), if any, and (iii) the Underwriters may have interests that differ from those of
the Partnership. The Partnership waives to the full extent permitted by
applicable law any claims it may have against the Underwriters arising from an alleged breach
of fiduciary duty in connection with the offering of the Units.
12. Counterparts. This Agreement may be signed in two or more counterparts, each of which
shall be an original, with the same effect as if the signatures thereto and hereto were upon the
same instrument.
13. Applicable Law. This Agreement shall be governed by and construed in accordance with the
internal laws of the State of New York.
14. Headings. The headings of the sections of this Agreement have been inserted for
convenience of reference only and shall not be deemed a part of this Agreement.
15. Notices. All communications hereunder shall be in writing and effective only upon receipt
and if to the Underwriters shall be delivered, mailed or sent to you at the address set forth in
Schedule I hereto; and if to the Partnership shall be delivered, mailed or sent to the address of
the Partnership set forth in the Registration Statement, Attention: Xxxxxx X. Xxxxx (Fax:
000.000.0000).
[Signature page follows]
29
Very truly yours, | ||||||
EL PASO PIPELINE PARTNERS, L.P. | ||||||
By: El Paso Pipeline GP Company, L.L.C., its general partner | ||||||
By: | /s/ Xxxxxx X. Xxxxx
|
|||||
Title: Executive Vice President and
General Counsel |
||||||
EL PASO PIPELINE GP COMPANY, L.L.C. | ||||||
By: | /s/ Xxxxxx X. Xxxxx
|
|||||
Title: Executive Vice President and
General Counsel |
30
Accepted as of the date hereof | ||
Xxxxxx Xxxxxxx & Co. Incorporated | ||
Barclays Capital Inc. | ||
Citigroup Global Markets Inc. | ||
UBS Securities LLC | ||
Acting severally on behalf of themselves and the
several Underwriters named in Schedule II hereto. |
||
By:
|
Xxxxxx Xxxxxxx & Co. Incorporated | |
By:
|
/s/ Xxxxx X. Xxxxxx | |
Name: Xxxxx X. Xxxxxx | ||
Title: Executive Director | ||
By:
|
Barclays Capital Inc. | |
By:
|
/s/ Xxxxxxxx Xxxx | |
Name: Xxxxxxxx Xxxx | ||
Title: Vice President | ||
By:
|
Citigroup Global Markets Inc. | |
By:
|
/s/ Xxx Xxxxx | |
Name: Xxx Xxxxx | ||
Title: Managing Director | ||
By:
|
UBS Securities LLC | |
By:
|
/s/ Xxxxx Xxxxx | |
Name: Xxxxx Xxxxx | ||
Title: Executive Director | ||
By:
|
/s/ Xxxxxxx Xxxx | |
Name: Xxxxxxx Xxxx | ||
Title: Director |
31
SCHEDULE I
Managers authorized to exercise
right to purchase Additional Units
under Section 2:
|
Xxxxxx Xxxxxxx & Co. Incorporated Barclays Capital Inc. Citigroup Global Markets Inc. UBS Securities LLC |
|
Managers authorized to deliver
notice of termination under Section 9: |
Xxxxxx Xxxxxxx & Co. Incorporated Barclays Capital Inc. Citigroup Global Markets Inc. UBS Securities LLC |
|
Time of Sale Prospectus:
|
1. The preliminary prospectus supplement dated June 8, 2009 relating to the Units. | |
2. Free writing prospectus dated June 9, 2009 filed by the Partnership under Rule 433(d) of the Securities Act. | ||
Title of Units to be Purchased:
|
Common Units Representing Limited Partner Interests |
|
Number of Firm Units:
|
11,000,000 | |
Number of Additional Units:
|
1,650,000 | |
Purchase Price:
|
$16.80 | |
Initial Public Offering Price:
|
$17.50 | |
Selling Concession:
|
$0.42 | |
Closing Date and Time:
|
10:00 a.m., New York City time, June 15, 2009 | |
Closing Location:
|
Xxxxxxx Xxxxx LLP | |
000 Xxxxxx | ||
Xxxxxxx, XX 00000 | ||
Address for Notices to Underwriters:
|
Xxxxxx Xxxxxxx & Co. Incorporated | |
0000 Xxxxxxxx | ||
Xxx Xxxx, XX 00000 | ||
Barclays Capital Inc. | ||
Attention: Syndicate Registration |
I-1
000 Xxxxxxx Xxxxxx | ||
Xxx Xxxx, XX 00000 | ||
with a copy, in case of notice pursuant to Section 8 hereof, to: | ||
Barclays Capital Inc. | ||
Attention: Director of Litigation, Office of the General Counsel | ||
000 Xxxxxxx Xxxxxx | ||
Xxx Xxxx, XX 00000 | ||
Citigroup Global Markets Inc. | ||
Attention: General Counsel | ||
000 Xxxxxxxxx Xxxxxx | ||
Xxx Xxxx, XX 00000 | ||
UBS Securities LLC | ||
Attention: Legal Department | ||
000 Xxxx Xxxxxx | ||
Xxx Xxxx, XX 00000 |
2
SCHEDULE II
Number of Firm Units | ||||
Underwriter | To Be Purchased | |||
Xxxxxx Xxxxxxx & Co. Incorporated. |
2,200,001 | |||
Barclays Capital Inc. |
2,200,000 | |||
Citigroup Global Markets Inc. |
2,200,000 | |||
UBS Securities LLC |
2,200,000 | |||
Credit Suisse Securities (USA) LLC |
733,333 | |||
Xxxxxxx, Sachs & Co. |
733,333 | |||
Xxxxxxx Xxxxx & Associates, Inc. |
733,333 | |||
Total: |
11,000,000 | |||
II-1
EXHIBIT A
OWNERSHIP BY THE PARTNERSHIP
OF SUBSIDIARIES AND UNCONSOLIDATED AFFILIATES
OF SUBSIDIARIES AND UNCONSOLIDATED AFFILIATES
Ownership of Subsidiaries:
Entity | Equity Owned by Identified Partnership Entity | |
OLLC
|
100% of limited liability company interests owned by the Partnership | |
EPPP SNG
|
100% of limited liability company interests owned by OLLC | |
EPPP CIG
|
100% of limited liability company interests owned by OLLC | |
WIC Holdings
|
100% of limited liability company interests owned by OLLC | |
EP WGSC
|
100% of limited liability company interests owned by OLLC | |
WIC
|
50% general partner interest owned by WIC Holdings | |
50% limited partner interest owned by EP WGSC |
Ownership of Unconsolidated Affiliates:
Entity | Equity Owned by Identified Partnership Entity | |
SNG
|
25% general partner interest owned by EPPP SNG 75% general partner interest owned by El Paso SNG Holding Company, L.L.C. |
|
SGSC
|
100% of limited liability company interests owned by SNG | |
Bear Creek
|
50% of the outstanding capital stock owned by SGSC | |
50% of the outstanding capital stock owned by Tennessee Storage Co. | ||
SNG Finance
|
100% of limited liability company interests owned by SNG | |
SNG Funding
|
100% of limited liability company interests owned by SNG Finance | |
SNG Issuing
|
100% of capital stock owned by SNG | |
CIG
|
40% general partner interest owned by EPPP CIG | |
60% general partner interest owned by El Paso Noric Investments III, L.L.C. | ||
WYCO Holding
|
100% of limited liability company interests owned by CIG | |
WYCO Development
|
50% of limited liability company interests owned by WYCO | |
CIG Finance
|
50% of limited liability company interests owned by an
affiliate of Public Service Co. of Colorado
100% of limited liability company interests owned by CIG |
|
CIG Funding
|
100% of limited liability company interests owned by CIG Finance | |
CIG Issuing
|
100% of capital stock owned by CIG |
EXHIBIT C
[FORM OF LOCK-UP LETTER]
, 200_
Xxxxxx Xxxxxxx & Co. Incorporated
[NAMES OF OTHER CO-MANAGERS]
c/o Morgan Xxxxxxx & Co. Incorporated
[NAMES OF OTHER CO-MANAGERS]
c/o Morgan Xxxxxxx & Co. Incorporated
0000 Xxxxxxxx
Xxx Xxxx, XX 00000
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
The undersigned understands that Xxxxxx Xxxxxxx & Co. Incorporated (“Xxxxxx Xxxxxxx”) proposes
to enter into an Underwriting Agreement (the “Underwriting Agreement”) with El Paso Pipeline
Partners, L.P., a Delaware limited partnership (the “Partnership”), providing for the public
offering (the “Public Offering”) by the several Underwriters, including Xxxxxx Xxxxxxx (the
“Underwriters”), of 11,000,000 common units representing limited partner interests in the
Partnership (the “Common Units”).
To induce the Underwriters that may participate in the Public Offering to continue their
efforts in connection with the Public Offering, the undersigned hereby agrees that, without the
prior written consent of Xxxxxx Xxxxxxx on behalf of the Underwriters, it will not, during the
period commencing on the date hereof and ending 90 days after the date of the final prospectus
relating to the Public Offering (the “Prospectus”), (1) offer, pledge, sell, contract to sell, sell
any option or contract to purchase, purchase any option or contract to sell, grant any option,
right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly,
any Common Units or any securities convertible into or exercisable or exchangeable for Common Units
or (2) enter into any swap or other arrangement that transfers to another, in whole or in part, any
of the economic consequences of ownership of the Common Units, whether any such transaction
described in clause (1) or (2) above is to be settled by delivery of Common Units or such other
securities, in cash or otherwise. The foregoing sentence shall not apply to (a) transactions
relating to Common Units or other securities acquired in open market transactions after the
completion of the Public Offering, provided that no filing under Section 16(a) of the Securities
Exchange Act of 1934 (the “Exchange Act”), shall be required or shall be voluntarily made in
connection with subsequent sales of Common Units or other securities acquired in such open market
transactions, (b) transfers of Common Units or any security convertible into Common Units as a bona
fide gift, or (c) distributions of Common Units or
any security convertible into Common Units to limited partners or stockholders of the
undersigned; provided that in the case of any transfer or distribution pursuant to clause (b) or
(c), (i) each donee or distributee shall sign and deliver a lock-up letter substantially in the
form of this letter and (ii) no filing under Section 16(a) of the Exchange Act, reporting a
reduction in beneficial ownership of Common Units, shall be required or shall be voluntarily made
during the restricted period referred to in the foregoing sentence, or (d) the establishment of a
trading plan pursuant to Rule 10b5-1 under the Exchange Act for the transfer of Common Units,
provided that such plan does not provide for the transfer of Common Units during the restricted
period. In addition, the undersigned agrees that, without the prior written consent of Xxxxxx
Xxxxxxx on behalf of the Underwriters, it will not, during the period commencing on the date hereof
and ending 90 days after the date of the Prospectus, make any demand for or exercise any right with
respect to, the registration of any Common Units or any security convertible into or exercisable or
exchangeable for Common Units. The undersigned also agrees and consents to the entry of stop
transfer instructions with the Partnership’s transfer agent and registrar against the transfer of
the undersigned’s shares of Common Units except in compliance with the foregoing restrictions.
The undersigned understands that the Partnership and the Underwriters are relying upon this
agreement in proceeding toward consummation of the Public Offering. The undersigned further
understands that this agreement is irrevocable and shall be binding upon the undersigned’s heirs,
legal representatives, successors and assigns.
Whether or not the Public Offering actually occurs depends on a number of factors, including
market conditions. Any Public Offering will only be made pursuant to an Underwriting Agreement,
the terms of which are subject to negotiation between the Partnership and the Underwriters.
It is understood that, if the Partnership notifies Xxxxxx Xxxxxxx that it does not intend to
proceed with the Offering, if the Underwriting Agreement does not become effective, or if the
Underwriting Agreement (other than the provisions thereof which survive termination) shall
terminate or be terminated prior to payment for and delivery of the Common Units, the undersigned
will be released from its obligations under this lock-up letter agreement.
Facsimile transmission of any signed original agreement shall be the same as delivery of an
original signed agreement.
[Signature page follows]
2
Very truly yours, | ||||
3