SECOND SUPPLEMENTAL INDENTURE
Exhibit
(d)(4)
THIS
SECOND SUPPLEMENTAL INDENTURE (this "Second
Supplemental Indenture"),
dated
as of May __, 2007, by and among RCN Corporation, a Delaware
corporation (the "Company"),
and
HSBC Bank USA, National Association, as Indenture Trustee
(the "Trustee"),
pursuant to the Indenture by and among the Company and the Trustee dated
as of
December 21, 2004, and as amended by the First
Supplemental Indenture, dated as of May 30, 2006
(as so
amended, the "Indenture").
W I T N E S S E T H: |
WHEREAS,
Section 11.2 of the Indenture provides, among other things, that subject to
certain restrictions, the Company, when authorized by a Board Resolution,
may
amend or supplement the Notes, the Security Documents or the Indenture with
the
consent (evidenced as provided in Article IX of the Indenture) of the
holders of not less than a majority in aggregate principal amount of the
Notes
at the time outstanding;
WHEREAS,
the holders of not less than a majority in aggregate principal amount of
the
Notes outstanding have duly consented to the proposed amendments to the
Indenture set forth in this Second Supplemental Indenture, in accordance
with
the provisions of Article IX and Section 11.2 of the
Indenture;
WHEREAS,
in accordance with Section 11.5 of the Indenture, the Company has
heretofore delivered or is delivering contemporaneously herewith to the Trustee
an Officers' Certificate and an Opinion of Counsel, with respect to the
execution and delivery by the Trustee of this Second Supplemental Indenture;
and
WHEREAS,
all conditions necessary to authorize the execution and delivery of this
Second
Supplemental Indenture and to make this Second Supplemental Indenture valid
and
binding have been complied with or have been done or performed;
NOW,
THEREFORE, in consideration of the foregoing, the parties hereto, intending
to
be legally bound hereby, agree as follows:
ARTICLE
I
DEFINITIONS
Section
1.1 Definitions.
All
capitalized terms used herein and not otherwise defined herein shall have
the
respective meanings assigned to them in the Indenture.
ARTICLE
II
AMENDMENTS
Section
2.1 Release
of Collateral; Effective Time.
(a) Immediately
upon the Effective Time (as defined below), (i) all of the Collateral
securing the Notes (as described in each of the Security Documents) shall
be
released and the Junior Liens shall be discharged, (ii) the Indenture shall
be
amended to reflect such release and discharge and (iii) (A) the
Security Agreement shall terminate in accordance with the terms of the Amendment
to Security Agreement, dated as of the date hereof, by and among the Company,
certain subsidiaries of the Company and the Collateral Agent, (B) the
Pledge Agreement shall terminate in accordance with the terms of the Amendment
to Pledge Agreement, dated as of the date hereof, by and among the Company,
certain subsidiaries of the Company and the Collateral Agent, (C) the
Guarantee Agreement shall be amended in accordance with the terms of the
Amendment to Subsidiaries Guaranty, dated as of the date hereof, by and among
the Company, certain subsidiaries of the Company and the Collateral Agent,
and
(D) the Intercreditor Agreement shall terminate in accordance with the
terms of the Amendment to Intercreditor Agreement, dated as of the date hereof,
by and among the Company, certain subsidiaries of the Company, the First-Lien
Collateral Agent, the Trustee, and the Collateral Agent.
(b) This
Second Supplemental Indenture is effective immediately upon receipt by the
Trustee and the Collateral Agent of a written notice from the Company
stating that (i) the Company has accepted for purchase all Notes
validly tendered and not validly withdrawn pursuant to the terms and conditions
of the Offer to Purchase and Consent Solicitation Statement, dated
April 27, 2007 (the "Offer
to Purchase")
and
the related Consent and Letter of Transmittal (which, together with the Offer
to
Purchase, constitute the "Offer")
and
(ii) the Company has deposited cash in immediately available
funds and has delivered certificates representing the Warrants (as
defined in the Offer) as payment for such purchase sufficient to pay the
purchase price for the Notes accepted for purchase with the Depositary (as
defined in the Offer) (the "Effective
Time").
Section
2.2 Amendments
to Section 1.1 of the Indenture.
(a) The
following definitions shall be deleted in their entirety:
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"144A
Global Note";
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"Acquired
Indebtedness";
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"Asset
Acquisition";
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"Calculation
Period";
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"Close
of Business";
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"Consolidated
EBITDA";
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"Consolidated
Interest Coverage Ratio";
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"Consolidated
Interest Expense";
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"Consolidated
Net Income";
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"Conversion
Shares";
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"Disinterested
Director";
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"Domestic
Subsidiary Guarantor";
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"Excess
Cash Flow";
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"Independent
Financial Advisor";
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"Institutional
Accredited Investor";
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"Material
Asset Sale";
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"Megacable
Entities";
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"New
Jersey Property";
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"Non-U.S.
Person";
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Ø
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"Plan
of Reorganization";
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"Pro
Forma Basis";
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"Redemption
Date";
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"Restricted
Payment";
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"Special
Default";
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"Starpower
Group";
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"Test
Period";
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"Third-Lien
Administrative Agent"; and
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"Transaction".
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(b) The
definitions below shall be added into Section
1.1
of the
Indenture. These definitions were either previously included in the Indenture
in
sections that are being deleted by this Second Supplemental Indenture or
are
being amended and restated in their entirety to account for the effects of
this
Second Supplemental Indenture:
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"144A
Global Note" means a permanent global note in registered form representing
the aggregate principal amount of Notes sold in reliance on Rule
144A
under the Securities Act.
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"Bankruptcy
Code" means Title 11 of the United States Code entitled "Bankruptcy,"
as
now or hereafter in effect, or any successor
thereto.
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"Designation"
means the designation of a Subsidiary of the Company (other than
a newly
created Subsidiary in which no Investment has previously been made)
as an
"Unrestricted Subsidiary" under this
Indenture.
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"Disqualified
Stock" means, with respect to any Person, any Capital Stock which,
by its
terms (or by the terms of any security into which it is convertible
or for
which it is exchangeable), or upon the happening of any event,
matures or
becomes mandatorily redeemable, pursuant to a sinking fund obligation
or
otherwise, or becomes exchangeable for Indebtedness at the option
of the
holder thereof, or becomes redeemable at the option of the holder
thereof,
in whole or in part, on or prior to the final maturity date of
the Notes;
provided such Capital Stock shall only constitute Disqualified
Stock to
the extent it so matures or becomes so redeemable or exchangeable
on or
prior to the final maturity date of the Notes; provided, further,
that any
Capital Stock that would not constitute Disqualified Stock but
for
provisions thereof giving holders thereof the right to require
such Person
to repurchase or redeem such Capital Stock upon the occurrence
of an
"asset sale" or "change of control" occurring prior to the final
maturity
date of the Notes shall not constitute Disqualified Stock if the
"asset
sale" or "change of control" provisions applicable to such Capital
Stock
are no more favorable to the holders of such Capital Stock than
the
provisions contained in Section 5.15 and Section 5.10 hereof and
such
Capital Stock specifically provides that such Person will not repurchase
or redeem any such stock pursuant to such provision prior to the
Company's
repurchase of such Notes as are required to be repurchased pursuant
to
Section 5.15 and Section 5.10 hereof.
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"First-Lien
Collateral Agent" has the meaning set forth in the First-Lien Credit
Agreement.
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"First-Lien
Credit Agreement" means the First-Lien Credit Agreement, dated
May ___, 2007, between RCN, various lenders party thereto, Deutsche
Bank Trust Company Americas, as Administrative Agent, Deutsche
Bank
Securities, Inc., as Sole Lead Arranger, Deutsche Bank Securities,
Inc.
and Citigroup Global Markets, Inc., as Joint Book Running Managers,
Citicorp USA, Inc. as Syndication Agent, Societe Generale and General
Electric Capital Corporation, as Co-Documentation Agent (incorporated
by
reference to Exhibit __ of the Current Report on Form 8-K filed with
the SEC on May __, 2007).
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"First-Lien
Credit Documents" means the First-Lien Credit Agreement and the
Credit
Documents (as defined in the First-Lien Credit Agreement) and each
of the
other agreements, documents and instruments providing for or evidencing
any other First-Lien Obligation and any other document or instrument
executed or delivered at any time in connection with any First-Lien
Obligation (including any intercreditor or joinder agreement among
holders
of First-Lien Obligations but excluding Interest Rate Protection
Agreements (as defined in the First-Lien Credit Agreement)), to
the extent
such are effective at the relevant time, as each may be amended,
modified,
restated, supplemented, replaced and/or Refinanced (as defined
in the
First-Lien Credit Agreement) from time to time; provided that no
such
modification of the First-Lien Credit Agreement shall increase
the maximum
aggregate principal amount of Loans and stated amount of Letters
of Credit
(as defined in the First-Lien Credit) thereunder to amount in excess
of
the Maximum First-Lien Credit Documents Principal Amount (as defined
in
the First-Lien Credit Agreement) as then in
effect.
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"First-Lien
Obligations" means all obligations outstanding under the First-Lien
Credit
Agreement and the other First-Lien Credit Documents. "Guarantee
Agreement"
means the Subsidiaries Guaranty, dated as of December 21, 2004,
among the
Guarantors and the Collateral Agent, as the same may be modified,
supplemented or amended from time to
time.
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"Guarantors"
means initially each Subsidiary of the Company which has executed
and
delivered the Guarantee Agreement and such other Subsidiaries of
the
Company which have entered into the Guarantee
Agreement.
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"incur"
means to directly or indirectly, create, incur, assume, issue,
guarantee
or in any manner become directly or indirectly liable for or with
respect
to, contingently or otherwise, the payment
of.
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"Institutional
Accredited Investor" means an institutional "accredited investor"
as such
term is defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act or any entity in which all of the equity owners are accredited
investors within the meaning of Rule 501(a)(1), (2), (3), (5),
(6) or (7)
under the Securities Act.
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"Maximum
First-Lien Credit Documents Principal Amount" shall have the meaning
set
forth in First-Lien Credit Agreement.
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"Permitted
Business" any business other than the businesses engaged in by
the Company
and its Restricted Subsidiaries as of the Issue Date and reasonable
extensions thereof and businesses ancillary or complementary
thereto.
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"Restricted
Subsidiary" means any Subsidiary of the Company that has not been
designated by the Board of Directors, by a Board Resolution delivered
to
the Trustee, as an Unrestricted Subsidiary. Any such designation
may be
revoked by a Board Resolution delivered to the Trustee, if (a)
no Default
shall have occurred and be continuing at the time of and after
giving
effect to such revocation; and (b) all Liens and Indebtedness of
such
Unrestricted Subsidiary outstanding immediately following such
revocation
would, if incurred at such time, have been permitted to be incurred
for
all purposes of this Indenture.
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"Unrestricted
Subsidiary" means any Subsidiary of the Company designated under
this
Indenture as such. The Company shall not designate any Subsidiary
of the
Company (other than a newly created Subsidiary in which no Investment
has
previously been made) as an "Unrestricted Subsidiary" under this
Indenture
(a "Designation") unless:
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(a)
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no
Default shall have occurred and be continuing at the time of or
after
giving effect to such Designation;
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(b)
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the
Company would be able to incur $1.00 of Indebtedness (other than
Permitted
Indebtedness); and
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(c)
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the
Company would not be prohibited under this Indenture from making
an
Investment at the time of Designation (assuming the effectiveness
of such
Designation) in an amount (the "Designation Amount") equal to the
Fair
Market Value of the net Investment of the Company or any other
Restricted
Subsidiary in such Restricted Subsidiary on such
date.
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Any
such
designation may be revoked by a Board Resolution delivered to the Trustee,
if
(a) no Default shall have occurred and be continuing at the time of and after
giving effect to such revocation; and (b) all Liens and Indebtedness of such
Unrestricted Subsidiary outstanding immediately following such revocation
would,
if incurred at such time, have been permitted to be incurred for all purposes
of
this Indenture.
(c) Any
reference to "Section 5.11" in clause (i) of the definition of "Permitted
Indebtedness"
is
hereby deleted.
Section
2.3 Amendments
to Article IV of the Indenture.
(a) The
title
of Article
IV
is
hereby amended and restated to read as follows:
"GUARANTEES"
(b) Section
4.1
is
hereby amended and restated in its entirety to read as follows:
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"Guarantee
Agreement.
In
order to secure the due and punctual payment of the Notes and the other
Obligations, the Guarantors have entered into the Guarantee Agreement.
(a)
Each
Holder of a Note, by accepting such Note, agrees to all the terms and provisions
of this Indenture and the Guarantee Agreement.
(b)
The
Collateral Agent is hereby authorized and directed by the Company and by
each
Holder by acceptance of a Note to enter into the Guarantee Agreement, and
to
execute such agreement as attorney-in-fact on behalf of, and to bind, the
holders, and take any and all actions required or permitted by the terms
hereof
and thereof.
(c) Section
4.2
is
hereby amended and restated in its entirety to read as follows:
"Application
of Proceeds of Guarantee Payments.
Upon
any receipt of any payments under the Guarantee Agreement, the proceeds thereof
shall be applied in accordance with the terms of the Guarantee Agreement
and the
terms hereof."
(d) Sections
4.3
through
4.13
are
hereby deleted in their entirety.
(e) Section
4.14
is
hereby amended and restated in its entirety to read as follows:
"Liability
of the Collateral Agent.
(a)
[intentionally omitted.]
(b)
The
Collateral Agent is authorized and directed to (i) enter into the Guarantee
Agreement, (ii) bind the Holders on the terms as set forth therein and (iii)
perform and observe its obligations under the Guarantee Agreement."
Section
2.4 Amendments
to Article V of the Indenture.
(a) Sections 5.6
through
5.21
(other
than Sections 5.9,
5.10, 5.12
and
5.15)
are
hereby deleted in their entirety.
(b) The
last
sentence of Section 5.12
is
hereby deleted.
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Section
2.5 Amendments
to Section 7.1 of the Indenture.
Clauses
(e), (f), (g) and (i) of Section
7.1
are
hereby amended and restated in their entirety to read as follows:
"[intentionally omitted.]"
Section
2.6 Amendments
to Section 8.6 of the Indenture.
The
second paragraph of Section 8.6
is
hereby amended and restated in its entirety to read as follows:
"When
the
Trustee and its agents and any authenticating agent incur expenses or render
services in the event of a "bankruptcy event", the expenses and the compensation
for the services are intended to constitute expenses of administration under
any
bankruptcy, insolvency or similar laws. For purposes hereof, "bankruptcy
event"
shall mean a voluntary case concerning the Company or any of its Significant
Restricted Subsidiaries is commenced under the Bankruptcy Code; or an
involuntary case is commenced against the Company or any of its Significant
Restricted Subsidiaries, and the petition is not controverted within 10 days,
or
is not dismissed within 60 days, after commencement of the case; or a custodian
(as defined in the Bankruptcy Code) is appointed for, or takes charge of,
all or
substantially all of the property of the Company or any of its Significant
Restricted Subsidiaries, or the Company or any of its Significant Restricted
Subsidiaries commences any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of debtors, dissolution, insolvency
or
liquidation or similar law of any jurisdiction whether now or hereafter in
effect relating to the Company or any of its Significant Restricted
Subsidiaries, or there is commenced against the Company or any of its
Significant Restricted Subsidiaries any such proceeding which remains
undismissed for a period of 60 days, or the Company or any of its Significant
Restricted Subsidiaries is adjudicated insolvent or bankrupt; or any order
of
relief or other order approving any such case or proceeding is entered; or
the
Company or any of its Significant Restricted Subsidiaries suffers any
appointment of any custodian or the like for it or any substantial part of
its
property to continue undischarged or unstayed for a period of 60 days; or
the
Company or any of its Significant Restricted Subsidiaries makes a general
assignment for the benefit of creditors; or any corporate, limited liability
company or similar action is taken by the Company or any of its Significant
Restricted Subsidiaries for the purpose of effecting any of the
foregoing;
Section
2.7 Amendments
to Section 12.1 of the Indenture.
Clause
(c) of Section 12.1
is
hereby amended and restated in its entirety to read as follows: "[intentionally
omitted.]"
Section
2.8 Amendments
to Section 15.6 of the Indenture.
(a) Clause
(e) of Section 15.6
is
hereby amended and restated in its entirety to read as follows: "[intentionally
omitted.]"
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(b) The
words: "Except for an adjustment pursuant to Section 15.6(e)," are hereby
deleted from clause (i) of Section 15.6.
(c) The
words: "Subject to the requirements of Section 15.6(e);" are hereby deleted
from clause (j) of Section 15.6.
Section
2.9 Amendments
to Section 17.4 of the Indenture.
Clause
(2) of Section
17.4
is
hereby amended and restated to read as follows:
"(2)
No
Default with respect to the Outstanding Notes shall have occurred and be
continuing on the date of such deposit."
Section
2.10 Conversion
Price.
The
Conversion Price shall be $25.16, and the form of Note attached as Exhibit
A to
the Indenture shall reflect as much.
ARTICLE
III
MISCELLANEOUS
Section
3.1 Except
as
amended hereby, all of the terms of the Indenture shall remain and continue
in
full force and effect and are hereby confirmed in all respects.
Section
3.2. This
Second Supplemental Indenture and each and every provision hereof shall be
deemed to be a contract made under the laws of the State of New York and
for all
purposes shall be construed in accordance with the laws of such
State.
Section
3.3 This
Second Supplemental Indenture may be executed in any number of counterparts,
each of which shall be an original; but such counterparts shall constitute
but
one and the same instrument.
Section
3.4 In
entering into this Second Supplemental Indenture, the Trustee shall be entitled
to the benefit of every provision of the Indenture relating to the conduct
or
affecting the liability of or affording protection to the Trustee, whether
or
not elsewhere herein so provided.
Section
3.5 The
recitals contained herein shall be taken as the statement of the Company,
and
the Trustee assumes no responsibility for their correctness. The Trustee
makes
no representations as to the validity or sufficiency of this Second Supplemental
Indenture.
[Signature
page follows]
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IN
WITNESS WHEREOF, the parties hereto have caused this Second Supplemental
Indenture to be duly signed as of the date first written above.
RCN
CORPORATION
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By:
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Name:
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Title:
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HSBC
BANK USA, NATIONAL ASSOCIATION, as Trustee
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By:
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Name:
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Title:
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