Brigham Exploration Company PURCHASE AGREEMENT
Exhibit 10.34
$300,000,000
Xxxxxxx Exploration Company
6 7/8% Senior Notes due 2019
May 16, 2011
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Credit Suisse Securities (USA) LLC,
As Representatives of the Several Purchasers,
c/o Merrill Lynch, Pierce, Xxxxxx & Xxxxx, Incorporated
Credit Suisse Securities (USA) LLC,
As Representatives of the Several Purchasers,
c/o Merrill Lynch, Pierce, Xxxxxx & Xxxxx, Incorporated
Xxx Xxxxxx Xxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
1. Introductory. Xxxxxxx Exploration Company, a Delaware corporation (the “Company”), agrees
with Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated (“Xxxxxxx Xxxxx”) and Credit Suisse
Securities (USA) LLC (“Credit Suisse”), as representatives (the “Representatives”) of the several
initial purchasers named on Schedule A hereto (the “Purchasers”) subject to the terms and
conditions stated herein, to issue and sell to the Purchasers U.S. $300,000,000 aggregate principal
amount of its 6 7/8% Senior Notes due 2019 (“Offered Securities”) to be issued under an indenture
(the “Indenture”) to be dated as of the Closing Date (as defined herein) by and among the Company,
the Guarantors (as defined herein) and Xxxxx Fargo Bank, N.A., as Trustee (herein so called). The
Offered Securities will be unconditionally guaranteed as to the payment of principal and interest
(the “Guarantees”) by Xxxxxxx, Inc., a Nevada corporation, and Xxxxxxx Oil & Gas, L.P., a Delaware
limited partnership (each a “Guarantor” and, together, the “Guarantors”).
The holders of the Offered Securities will be entitled to the benefits of a Registration
Rights Agreement to be dated as of the Closing Date by and among the Company, the Guarantors and
the Purchasers (the “Registration Rights Agreement”), pursuant to which the Company and the
Guarantors will agree to file with the Commission (a) a registration statement under the Securities
Act (as defined herein) relating to a new series of notes and related guarantees (collectively, the
“Exchange Securities”), which shall be substantially identical to the Offered Securities and the
Guarantees (except that the Exchange Securities shall have been registered pursuant to such
registration statement and will not be subject to restrictions on transfer or contain additional
interest provisions), to be offered in exchange for the Offered Securities and the Guarantees (such
offer to exchange being referred to as the “Exchange Offer”), and/or (b) under certain
circumstances, a shelf registration statement pursuant to Rule 415 under the Securities Act (the
“Shelf Registration Statement”) relating to the resale by certain holders of the Offered
Securities. If the Company or the Guarantors fail to satisfy their obligations under the
Registration Rights Agreement, they will be required to pay additional interest to the holders of
the Offered Securities under certain circumstances, as described therein.
Each of the Company and the Guarantors hereby agrees with the Purchasers as follows:
2. Representations and Warranties of the Company and the Guarantors. Each of the Company and
the Guarantors represents and warrants to, and agrees with, the Purchasers that:
(a) Offering Memorandums; Certain Defined Terms. The Company has prepared or will
prepare a Preliminary Offering Memorandum and a Final Offering Memorandum.
For purposes of this Agreement:
“Applicable Time” means 4:00 p.m. (New York time) on the date of this Agreement.
“Closing Date” has the meaning set forth in Section 3 hereof.
“Commission” means the U.S. Securities and Exchange Commission.
“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended, including
the Rules and Regulations promulgated thereunder.
“Final Offering Memorandum” means the final offering memorandum relating to
the Offered Securities prepared by or on behalf of the Company for use by the Purchasers
that discloses the offering price and other final terms of the Offered Securities and is
dated as of the date of this Agreement (even if finalized and issued subsequent to the date
of this Agreement).
“Free Writing Communication” means a written communication (as such term is defined in
Rule 405) that constitutes an offer to sell or a solicitation of an offer to buy the
Offered Securities and is made by means other than the Preliminary Offering Memorandum or
the Final Offering Memorandum.
“General Disclosure Package” means the Preliminary Offering Memorandum together with
any Issuer Free Writing Communication existing at the Applicable Time and the information
in which is intended for general distribution to prospective investors, as evidenced by its
being specified on Schedule B hereto.
“Issuer Free Writing Communication” means a Free Writing Communication prepared by or
on behalf of the Company for use by the Purchasers, used or referred to by the Company or
containing a description of the final terms of the Offered Securities or of their offering,
in the form retained in the Company’s records.
“Preliminary Offering Memorandum” means the preliminary offering memorandum relating
to the Offered Securities prepared by or on behalf of the Company for use by the Purchasers
and dated May 16, 2011.
“Rules and Regulations” means the rules and regulations of the Commission.
“Securities Act” means the U.S. Securities Act of 1933, as amended, including the
Rules and Regulations promulgated thereunder.
“Securities Laws” means, collectively, the Xxxxxxxx-Xxxxx Act of 2002
(“Xxxxxxxx-Xxxxx”), the Securities Act, the Exchange Act, the Rules and Regulations, the
auditing principles, rules, standards and practices applicable to auditors of “issuers” (as
defined in Xxxxxxxx-Xxxxx) promulgated or approved by the Public Company Accounting
Oversight Board and, as applicable, the rules of the New York Stock Exchange and the NASDAQ
Stock Market (“Exchange Rules”).
“Supplemental Marketing Material” means any Issuer Free Writing Communication other
than any Issuer Free Writing Communication specified on Schedule B hereto.
Supplemental Marketing Materials include, but are not limited to, the electronic
Bloomberg roadshow slides and the accompanying audio recording.
“Trust Indenture Act of 1939” means the U.S. Trust Indenture Act of 1939, as amended,
including the Rules and Regulations promulgated thereunder.
Unless otherwise specified, a reference to a “rule” is to the indicated rule under the
Securities Act.
Unless otherwise specified, all references herein to the terms “General Disclosure
Package” and “Final Offering Memorandum” shall be deemed to mean and include all
information filed under the Exchange Act prior to the Applicable Time and incorporated by
reference in the General Disclosure Package (including the Preliminary Offering Memorandum)
or the Final Offering Memorandum, as the case may be, and all references herein to the
terms “amend,” “amendment” or “supplement” with respect to the Final Offering Memorandum
shall be deemed to mean and include all information filed under the Exchange Act after the
Applicable Time and incorporated by reference in the Final Offering Memorandum.
(b) Disclosure. As of the date of this Agreement, the Final Offering Memorandum does
not, and as of the Closing Date, the Final Offering Memorandum will not, include any untrue
statement of a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading. At the Applicable Time, and as of the Closing Date, neither (i) the General
Disclosure Package, nor (ii) any individual Supplemental Marketing Material, when
considered together with the General Disclosure Package, included, or will include, any
untrue statement of a material fact or omitted, or will omit, to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading. The preceding two sentences do not apply to
statements in or omissions from the Preliminary or Final Offering Memorandum, the General
Disclosure Package or any Supplemental Marketing Material based upon written information
furnished to the Company by the Purchasers specifically for use therein, it being
understood and agreed that the only such information is that described as such in Section
8(b) hereof. Except as disclosed in the General Disclosure Package, on the date of this
Agreement, the Company’s Annual Report on Form 10-K most recently filed with the Commission
and all subsequent reports (collectively, the “Exchange Act Reports”) which have been filed
by the Company with the Commission or sent to stockholders pursuant to the Exchange Act and
incorporated by reference in the Preliminary or Final Offering Memorandum do not include
any untrue statement of a material fact or omit to state any material fact necessary to
make the statements therein, in the light of the circumstances under which they were made,
not misleading. Such documents, when they were filed with the Commission, conformed in all
material respects to the requirements of the Exchange Act and the Rules and Regulations.
(c) Good Standing of the Company. The Company has been duly incorporated and is
existing and in good standing under the laws of the State of Delaware, with power and
authority (corporate and other) to own its properties and conduct its business as described
in the General Disclosure Package; and the Company is duly qualified to do business as a
foreign corporation in good standing in all other jurisdictions in which its ownership or
lease of property or the conduct of its business requires such qualification, except for
any jurisdiction where the failure to be so qualified would not, individually or in the
aggregate, have a material adverse effect on the condition (financial or other), business,
properties, prospects or results of operations of the Company and its subsidiaries taken as
a whole (“Material Adverse Effect”).
(d) Subsidiaries. Each subsidiary of the Company has been duly incorporated or
organized and is existing and in good standing under the laws of the jurisdiction of its
incorporation or formation, with power and authority (corporate and other) to own its
properties and conduct its business as described in the General Disclosure Package; and
each subsidiary of the Company is duly qualified to do business as a foreign corporation or
limited partnership in good standing in all other jurisdictions in which its ownership or
lease of property or the conduct of its business requires such qualification, except for
any such jurisdiction where the failure to be so qualified would not have a Material
Adverse Effect; all of the issued and outstanding equity interests of each subsidiary of
the Company have been duly authorized and validly issued and are fully paid and
nonassessable; and the capital stock or other equity securities of each subsidiary owned by
the Company, directly or through subsidiaries, is owned free from liens, encumbrances
and defects, except as disclosed in the General Disclosure Package or pledged in connection
with the Company’s senior credit agreement. The Company has no subsidiaries other than the
Guarantors.
(e) Indenture; Security Interests. Each of the Indenture and the Offered Securities
has been duly authorized; and, when the Offered Securities are delivered and paid for
pursuant to this Agreement on the Closing Date, (i) the Indenture will have been duly
executed and delivered, (ii) such Offered Securities will have been duly executed,
authenticated, issued and delivered, (iii) the Indenture and such Offered Securities will
conform to the information in the General Disclosure Package relating thereto and such
Offered Securities will conform to the description of the Offered Securities contained in
the Final Offering Memorandum and the Indenture, (iv) the Indenture will
constitute valid and legally binding obligations of the Company and the Guarantors,
enforceable against the Company and the Guarantors in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general equity
principles; and (v) the Offered Securities will constitute valid and legally binding
obligations of the Company, enforceable in accordance with their terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general equity
principles, and entitled to the benefits and security provided by the Indenture.
(f) Trust Indenture Act. On the Closing Date, the Indenture will conform in all
material respects to the requirements of the Trust Indenture Act, and the Rules and
Regulations applicable to an indenture which is qualified thereunder.
(g) No Finder’s Fee. Except as disclosed in the General Disclosure Package, there
are no contracts, agreements or understandings between the Company and any person that
would give rise to a valid claim against the Company or any Purchaser for a brokerage
commission, finder’s fee or other like payment.
(h) Registration Rights Agreement. The Registration Rights Agreement has been duly
authorized by the Company and the Guarantors; and, when the Offered Securities are
delivered and paid for pursuant to this Agreement on the Closing Date, the Registration
Rights Agreement will have been duly executed and delivered by, and will constitute valid
and legally binding obligations of, the Company and the Guarantors, enforceable in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating to or
affecting creditors’ rights and to general equity principles.
(i) Exchange Securities. On the Closing Date, the Exchange Securities will have been
duly authorized by the Company and the Guarantors; and when the Exchange Securities are
issued, executed and authenticated in accordance with the terms of the Exchange Offer and
the Indenture, the Exchange Securities will be entitled to the benefits of the Indenture
and will constitute valid and legally binding obligations of the Company and the
Guarantors, enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.
(j) Guarantee. The Guarantee to be endorsed on the Offered Securities by each
Guarantor has been duly authorized by such Guarantor; and, when the Offered Securities are
delivered and paid for pursuant to this Agreement on the Closing Date and issued, executed
and authenticated in accordance with the terms of the Indenture, the Guarantee of each
Guarantor endorsed thereon will have been duly executed and delivered by each such
Guarantor, will conform to the description thereof contained in the Final Offering
Memorandum and will constitute valid and legally binding obligations of such Guarantor,
enforceable in accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights and to
general equity principles. The Guarantee to be endorsed on the Exchange Securities by each
Guarantor has been duly authorized by such Guarantor; and, when issued, will have been duly
executed and delivered by each such Guarantor and will conform to the description thereof
contained in the Final Offering Memorandum. When the Exchange Securities have been issued,
executed and authenticated in accordance with the terms of the Exchange Offer and the
Indenture, the Guarantee of each Guarantor endorsed thereon will constitute valid and
legally binding obligations of such Guarantor, enforceable in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’ rights and to
general equity principles.
(k) No Registration Rights. Other than the Registration Rights Agreement, there are
no contracts, agreements or understandings between the Company or any Guarantor and any
person granting such person the right to require the Company or such Guarantor to file a
registration statement under the Securities Act with respect to any securities of the
Company or such Guarantor or to require the Company or such Guarantor to include such
securities with the Securities and Guarantees registered pursuant to any Registration
Statement (collectively, “registration rights”).
(l) Absence of Further Requirements. No consent, approval, authorization, or order
of, or filing or registration with, any person (including any governmental agency or body
or any court) is required for the consummation of the transactions contemplated by this
Agreement, the Indenture and the Registration Rights Agreement in connection with the
offering, issuance and sale of the Offered Securities and the Guarantees by the Company and
the Guarantors except for (i) such as have been obtained, (ii) the effective registration
required under the Exchange Offer Registration Statement or, if required, the Shelf
Registration Statement, or (iii) the qualification of the Indenture under the Trust
Indenture Act, in connection with any registered issuance of the Exchange Notes.
(m) Title to Property. Except as disclosed in the General Disclosure Package, the
Company and its subsidiaries have (i) defensible title to all their interests in the oil
and gas properties described in the General Disclosure Package as being owned or leased by
them, title investigations having been carried out by the Company in accordance with
customary practice in the oil and gas industry, and (ii) good and marketable title to all
other real property and all personal property described in the General Disclosure Package
as being owned by them, in each case (except as encumbered under the Company’s senior
credit agreement) free and clear of any security interests, mortgages, liens, encumbrances,
equities, claims and other title defects, except such as do not materially and adversely
affect the value of such property and do not materially interfere with the use made or
proposed to be made of such property by the Company or its subsidiaries. Except as
disclosed in the General Disclosure Package, the Company and its subsidiaries do not hold
any leased real or personal property under valid and enforceable leases with terms or
provisions that would materially interfere with the use made or to be made thereof by them.
(n) Absence of Defaults and Conflicts Resulting from Transaction. The execution,
delivery and performance of the Indenture, this Agreement and the Registration Rights
Agreement, and the issuance and sale of the Offered Securities and Guarantees and
compliance with the terms and provisions thereof will not result in a breach or violation
of any of the terms and provisions of, or constitute a default or a Debt Repayment
Triggering Event (as defined below) under, or result in the imposition of any lien, charge
or encumbrance upon any property or assets of the Company or the Guarantors pursuant to (i)
the charter or by-laws of the Company or the Guarantors,(ii) any statute, any rule,
regulation or order of any governmental agency or body or any court, domestic or foreign,
having jurisdiction over the Company or the Guarantors or any of their properties, or (iii)
any agreement or instrument to which the Company or the Guarantors is a party or by which
the Company or the Guarantors is bound or to which any of the properties of the Company or
the Guarantors is subject, except (in the case of (ii) and (iii)) for breaches or
violations which would not have a Material Adverse Effect; a “Debt Repayment Triggering
Event” means any event or condition that gives, or with the giving of notice or lapse of
time would give, the holder of any note, debenture, or other evidence of indebtedness (or
any person acting on such holder’s behalf) the right to require the repurchase, redemption
or repayment of all or a portion of such indebtedness by the Company or the Guarantors.
(o) Absence of Existing Defaults and Conflicts. None of the Company or the
Guarantors is in violation of its respective charter or by-laws or in default (or with the
giving of notice or lapse of time would be in default) under any existing obligation
agreement, covenant or condition contained in any indenture, loan agreement, mortgage,
lease or other agreement or instrument to which any of them is a party or by which any of
them is bound or to which any of the properties of any of them is subject, except such
defaults that would not, individually or in the aggregate, result in a Material Adverse
Effect.
(p) Authorization of Agreement. This Agreement has been duly authorized, executed
and delivered by the Company and the Guarantors.
(q) Possession of Licenses and Permits. The Company and the Guarantors possess, and
are in compliance with the terms of, all adequate certificates, authorizations, franchises,
licenses and permits (“Licenses”) necessary or material to the conduct of the business now
conducted or proposed in the General Disclosure Package to be conducted by them and have
not received any notice of proceedings relating to the revocation or modification of any
Licenses that, if determined adversely to the Company or the Guarantors, would individually
or in the aggregate have a Material Adverse Effect.
(r) Absence of Labor Dispute. No labor dispute with the employees of the Company or
the Guarantors exists or, to the knowledge of the Company or the Guarantors, is imminent
that could have a Material Adverse Effect.
(s) Possession of Intellectual Property. The Company and the Guarantors own, possess
or can acquire on reasonable terms, adequate trademarks, trade names and other rights to
inventions, know how, patents, copyrights, confidential information and other intellectual
property (collectively, “intellectual property rights”) necessary to conduct the business
now operated by them, or presently employed by them, and have not received any notice of
infringement of or conflict with asserted rights of others with respect to any intellectual
property rights that, if determined adversely to the Company or the Guarantors, would
individually or in the aggregate have a Material Adverse Effect.
(t) Environmental Laws. Except as disclosed in the General Disclosure Package, none
of the Company or the Guarantors is in violation of any statute, any rule, regulation,
decision or order of any governmental agency or body or any court, domestic or foreign,
relating to the use, disposal or release of hazardous or toxic substances or relating to
the protection or restoration of the environment or human exposure to hazardous or toxic
substances (collectively, “environmental laws”), owns or operates any real property
contaminated with any substance that is subject to any environmental laws, is liable for
any off site disposal or contamination pursuant to any environmental laws, or is subject to
any claim relating to any environmental laws, which violation, contamination, liability or
claim would individually or in the aggregate have a Material Adverse Effect; and the
Company is not aware of any pending investigation which might lead to such a claim.
(u) Accurate Disclosure. The statements in the General Disclosure Package and the
Final Offering Memorandum under the headings “Certain United States Federal Income Tax
Considerations,” “Description of the Notes” and “Description of other Indebtedness” insofar
as such statements summarize legal matters, agreements, documents or proceedings discussed
therein, are accurate and fair summaries of such legal matters, agreements, documents or
proceedings and present the information required to be shown.
(v) Absence of Manipulation. None of the Company, the Guarantors and their respective
affiliates has, either alone or with one or more other persons, bid for or purchased for
any account in which it or any of its affiliates had a beneficial interest in any Offered
Securities or attempted to induce any person to purchase any Offered Securities.
(w) Statistical and Market-Related Data. Any third-party statistical and
market-related data included in a Preliminary Offering Memorandum, a Final Offering
Memorandum, or any Issuer Free Writing Communication are based on or derived from sources
that the Company and the Guarantors believe to be reliable and accurate.
(x) Internal Controls and Compliance with the Xxxxxxxx-Xxxxx Act. Except as set
forth in the General Disclosure Package, the Company and the Guarantors and the Company’s
Board of Directors (the “Board”) are in compliance with Xxxxxxxx-Xxxxx and all applicable
Exchange Rules. The Company and each Guarantor maintains a system of internal controls,
including, but not limited to, disclosure controls and procedures, internal controls over
accounting matters and financial reporting, and legal and regulatory compliance controls
(collectively, “Internal Controls”), that comply with the Securities Laws and are
sufficient to provide reasonable assurances that (i) transactions are executed in
accordance with management’s general or specific authorizations, (ii) transactions are
recorded as necessary to permit preparation of financial statements in conformity with U.S.
Generally Accepted Accounting Principles and to maintain accountability for assets, (iii)
access to assets is permitted only in accordance with management’s general or specific
authorization and (iv) the recorded accountability for assets is compared with the existing
assets at reasonable intervals and appropriate action is taken with respect to any
differences. The Internal Controls are, or, upon consummation of the offering of the
Offered Securities will be, overseen by the Audit Committee (the “Audit Committee”) of the
Board in accordance with Exchange Rules. Neither the Company nor the Guarantors have
publicly disclosed or reported to the Audit Committee or the Board, and within the next 90
days neither the Company nor the Guarantors reasonably expect to publicly disclose or
report to the Audit Committee or the Board, a significant deficiency, material weakness,
change in Internal Controls or fraud involving management or other employees who have a
significant role in Internal Controls (each, an “Internal Control Event”), any violation
of, or failure to comply with, the Securities Laws, or any matter which, if determined
adversely, would have a Material Adverse Effect.
(y) Disclosure Controls and Procedures. The Company maintains disclosure controls
and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) that
comply with the requirements of the Exchange Act; such disclosure controls and procedures
have been designed to ensure that material information relating to the Company and its
subsidiaries is made known to the Company’s principal executive officer and principal
financial officer by others within those entities; and such disclosure controls and
procedures are effective.
(z) Absence of Accounting Issues. Except as set forth in the General Disclosure
Package, the Audit Committee is not reviewing or investigating, and neither the Company’s
independent auditors nor its internal auditors have recommended that the Audit Committee
review or investigate, (i) adding to, deleting, changing the application of, or changing
the Company’s disclosure with respect to, any of the Company’s material accounting
policies; (ii) any matter which could result in a restatement of the Company’s financial
statements for any annual or interim period during the current or prior three fiscal years;
or (iii) any Internal Control Event.
(aa) Litigation. Except as disclosed in the General Disclosure Package, there are no
pending actions, suits or proceedings (including any inquiries or investigations by any
court or governmental agency or body, domestic or foreign) against or affecting the
Company, the Guarantors, or any of their respective properties that, if determined
adversely to the Company or the Guarantors, would individually or in the aggregate have a
Material Adverse Effect, or would materially and adversely affect the ability of the
Company or the Guarantors to perform their
obligations under the Indenture, this Agreement, or the Registration Rights Agreement, or
which are otherwise material in the context of the sale of the Offered Securities and the
Guarantees; and no such actions, suits or proceedings (including any inquiries or
investigations by any court or governmental agency or body, domestic or foreign) are
threatened or, to the Company’s or the Guarantors’ knowledge, contemplated.
(bb) Financial Statements. The financial statements included in the General
Disclosure Package present fairly in all material respects the financial position of the
Company and its consolidated subsidiaries as of the dates shown and their results of
operations and cash flows for the periods shown, and such financial statements have been
prepared in conformity with the generally accepted accounting principles in the United
States applied on a consistent basis.
(cc) No Material Adverse Change in Business. Except as disclosed in the General
Disclosure Package, since the end of the period covered by the latest audited financial
statements included in the General Disclosure Package (i) there has been no change, nor any
development or event involving a prospective change, in the condition (financial or
otherwise), results of operations, business, properties or prospects of the Company and the
Guarantors, taken as a whole, that is material and adverse; (ii) except as
disclosed in or contemplated by the General Disclosure Package, there has been no dividend
or distribution of any kind declared, paid or made by the Company or the Guarantors on any
class of their capital stock and (iii) except as disclosed in or contemplated by the
General Disclosure Package, there has been no material adverse change in the capital stock,
short-term indebtedness, long-term indebtedness, net current assets or net assets of the
Company and the Guarantors.
(dd) Reserve Engineers. Xxxxxx, Xxxxxxxxx & Associates, a petroleum engineering firm
from whose reserve reports information (the “Reserve Information”) is set forth in the
General Disclosure Package, are independent petroleum engineers with respect to the
Company. Other than (i) the production of reserves in the ordinary course of business (ii)
intervening price fluctuations or (iii) as described in the General Disclosure Package, the
Company is not aware of any facts or circumstances that would result in a material adverse
change in its proved reserves in the aggregate, or the aggregate present value of estimated
future net revenues of the Company or the standardized measure of discounted future net
cash flows therefrom, as described in the General Disclosure Package and reflected in the
Reserve Information as of the respective dates such information is given. Estimates of the
proved reserves and the present value of the estimated future net revenues and the
discounted future net cash flows derived therefrom as described in the General Disclosure
Package and reflected in the Reserve Information comply in all material respects to the
applicable requirements of the Act.
(ee) Solvency. All indebtedness represented by the Offered Securities is being
incurred for the purposes set forth in the General Disclosure Package under the heading
“Use of Proceeds.” On the Closing Date, the Company will be solvent. As used in this
paragraph, “solvent” means, with respect to a particular date, that on such date (i) the
present fair market value (present fair saleable value) of the assets of the Company and
each of its subsidiaries is not less than the total amount required to pay the probable
liabilities of the Company and each of such subsidiaries on its total existing debts and
liabilities (including contingent liabilities) as they become absolute and matured, (ii)
the Company and each of its subsidiaries are able to realize upon their assets and pay
their debts and other liabilities, contingent obligations and commitments as they mature
and become due in the normal course of business, (iii) assuming the sale of the Offered
Securities as contemplated by this Agreement and the General Disclosure Package, each of
the Company and the subsidiaries is not incurring debts or liabilities beyond its ability
to pay such debts and liabilities as they mature, and (iv) each of the Company and its
subsidiaries is not engaged in any business or transaction, and is not about to engage in
any business or transaction, for which its property would constitute unreasonably small
capital after giving due consideration to the prevailing practice in the industry in which
each of the Company and such subsidiaries is engaged. In computing the amount of such
contingent liabilities at any time, it is intended that such liabilities will be computed
at the amount that, in the light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become
an actual or matured liability.
(ff) Investment Company Act.— Neither the Company nor any Guarantor is and, after
giving effect to the offering and sale of the Offered Securities and the application of the
proceeds thereof as described in the General Disclosure Package, will not be an “investment
company” as defined in the Investment Company Act of 1940 (the “Investment Company Act”).
(gg) Ratings. No “nationally recognized statistical rating organization” as such
term is defined for purposes of Rule 436(g)(2) (i) has imposed (or has informed the Company
or any Guarantor that it is considering imposing) any condition (financial or otherwise) on
the Company’s or any Guarantor’s retaining any rating assigned to the Company or any
Guarantor or any securities of the Company or any Guarantor or (ii) has indicated to the
Company or any Guarantor that it is considering any of the actions described in Section
7(b)(ii) hereof.
(hh) Regulations T, U, X. Neither the Company nor any Guarantor nor any agent
thereof acting on their behalf has taken, and none of them will take, any action that might
cause this Agreement or the issuance or sale of the Offered Securities to violate
Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve
System.
(ii) Class of Securities Not Listed. The Offered Securities are eligible for resale
pursuant to Rule 144A under the Securities Act (“Rule 144A”), and no securities of the same
class (within the meaning of Rule 144A(d)(3)) as the Offered Securities are listed on any
national securities exchange registered under Section 6 of the Exchange Act or quoted in a
U.S. automated inter-dealer quotation system.
(jj) No Registration. The offer and sale of the Offered Securities in the manner
contemplated by this Agreement will be exempt from the registration requirements of the
Securities Act by reason of Section 4(2) thereof, Regulation D (“Regulation D”) thereunder
and Regulation S (“Regulation S”) thereunder; and it is not necessary to qualify the
Indenture under the Trust Indenture Act.
(kk) No General Solicitation; No Directed Selling Efforts. Neither the Company, nor
any Guarantor, nor any of their respective affiliates, nor any person acting on its or
their behalf (i) has, within the six-month period prior to the date hereof, offered or sold
in the United States or to any U.S. person (as such terms are defined in Regulation S) the
Offered Securities or any security of the same class or series as the Offered Securities or
(ii) has offered or will offer or sell the Offered Securities (A) in the United States by
means of any form of general solicitation or general advertising within the meaning of Rule
502(c) or (B) with respect to any such securities sold in reliance on Rule 903 of
Regulation S, by means of any directed selling efforts within the meaning of Rule 902(c) of
Regulation S. The Company, the Guarantors, their respective affiliates and any person
acting on its or their behalf have complied and will comply with the offering restrictions
requirement of Regulation S. Neither the Company nor any Guarantor has entered and neither
the Company nor any Guarantor will enter into any contractual arrangement with respect to
the distribution of the Offered Securities except for this Agreement.
(ll) Compliance with Anti-Bribery Laws, Anti-Money Laundering Laws and Laws and
Regulations Imposing U.S. Economic Sanctions. Each of the Company and the Guarantors and
their affiliates and their respective officers, directors, supervisors, managers, agents,
or employees, have not violated, the Company’s participation in the offering will not
violate, and the Company has instituted and maintains policies and procedures designed to
ensure continued compliance with: (i) any applicable anti-bribery laws, rules or
regulations of any locality, including, but not limited to, any law, rule, or regulation
promulgated to implement the OECD Convention on Combating Bribery of Foreign Public
Officials in International Business Transactions, signed December 17, 1997, the U.S.
Foreign Corrupt Practices Act of
1977 or any other law, rule or regulation of similar purpose and scope; (ii)
applicable federal, state, international, foreign or other anti-money laundering laws,
regulations or government guidance regarding anti-money laundering, including, but not
limited to, Title 18 U.S. Code section 1956 and 1957, the Patriot Act, the Bank Secrecy
Act, and international anti-money laundering principals or procedures by an
intergovernmental group or organization, such as the Financial Action Task Force on Money
Laundering, of which the United States is a member and with which designation the United
States representative to the group or organization continues to concur, all as amended, and
any Executive Order, directive, or regulation pursuant to the authority of any of the
foregoing, or any orders or licenses issued thereunder; or (iii) laws and regulations
imposing U.S. economic sanctions measures, including, but not limited to, the International
Emergency Economic Powers Act, the Trading with the Enemy Act, the United Nations
Participation Act, and the Syria Accountability and Lebanese Sovereignty Act, all as
amended, and any Executive Order, directive, or regulation pursuant to the authority of any
of the foregoing, including the regulations of the U.S. Treasury Department set forth under
31 CFR, Subtitle B, Chapter V, as amended, or any orders or licenses issued thereunder.
3. Purchase, Sale and Delivery of Offered Securities. On the basis of the representations,
warranties and agreements and subject to the terms and conditions set forth herein, the Company
agrees to sell to the several Purchasers and each of the Purchasers agrees, severally and not
jointly, to purchase from the Company, at a purchase price of 98.125% of the principal amount
thereof, the respective principal amounts of Offered Securities set forth opposite the names of the
several Purchasers on Schedule A hereto.
The Company will deliver against payment of the purchase price the Offered Securities to be
offered and sold by the Purchasers in reliance on Regulation S (the “Regulation S Securities”) in
the form of one or more permanent global notes in registered form without interest coupons (the
“Offered Regulation S Global securities”) which will be deposited with the Trustee as custodian for
The Depository Trust Company (“DTC”) for the respective accounts of the DTC participants for Xxxxxx
Guaranty Trust Company of New York, Brussels office, as operator of the Euroclear System
(“Euroclear”), and Clearstream Banking, société anonyme (“Clearstream, Luxembourg”) and registered
in the name of Cede & Co., as nominee for DTC. The Company will deliver against payment of the
purchase price the Offered Securities to be purchased by each Purchaser hereunder and to be offered
and sold by each Purchaser in reliance on Rule 144A (the “144A Securities”) in the form of one or
more permanent global notes in definitive form without interest coupons (the “Restricted Global
Securities”) deposited with the Trustee as custodian for DTC and registered in the name of Cede &
Co., as nominee for DTC. The Regulation S Global Securities and the Restricted Global Securities
shall be assigned separate CUSIP numbers. The Restricted Global Securities shall include the legend
regarding restrictions on transfer set forth under “Transfer Restrictions” in the Final Offering
Memorandum. Until the termination of the distribution compliance period (as defined in Regulation
S) with respect to the offering of the Offered Securities, interests in the Regulation S Global
Securities may only be held by the DTC participants for Euroclear and Clearstream, Luxembourg.
Interests in any permanent global notes will be held only in book-entry form through Euroclear,
Clearstream, Luxembourg or DTC, as the case may be, except in the limited circumstances described
in the Final Offering Memorandum.
Payment for the Regulation S Securities and the 144A Securities shall be made by the
Purchasers in Federal (same day) funds by wire transfer to the account specified in writing by the
Company two days prior to the Closing Date at the office of Xxxxxx & Xxxxxx, L.L.P., 2500 First
City Tower, 0000 Xxxxxx Xxxxxx, Xxxxxxx, Xxxxx 00000 at 10:00 A.M., (New York time), on May 19,
2011 or at such other time thereafter as the Representatives and the Company determine, such time
being herein referred to as the “Closing Date,” against delivery to the Trustee as custodian for
DTC of (i) the Regulation S Global Securities representing all of the Regulation S Securities for
the respective accounts of the DTC participants for Euroclear and Clearstream, Luxembourg and (ii)
the Restricted Global Securities representing all of the Offered 144A Securities. The Regulation S
Global Securities and the Restricted Global Securities will be made available for checking at the
above office of Xxxxxx & Xxxxxx, LLP at least 24 hours prior to the Closing Date.
4. Representations by Purchasers; Resale by Purchasers.
(a) Each Purchaser severally represents and warrants to the Company and the
Guarantors that it is a “qualified institutional buyer” (a “QIB”) within the meaning of
Rule 144A and an “accredited investor” within the meaning of Regulation D.
(b) Each Purchaser severally acknowledges that the Offered Securities have not been
registered under the Securities Act and may not be offered or sold within the United States
or to, or for the account or benefit of, U.S. persons except in accordance with Regulation
S or pursuant to an exemption from the registration requirements of the Securities Act.
Each Purchaser severally represents and agrees that it has offered and sold the Offered
Securities, and will offer and sell the Offered Securities (i) as part of its distribution
at any time and (ii) otherwise until 40 days after the later of the commencement of the
offering and the Closing Date, only in accordance with Rule 903 or Rule 144A. Accordingly,
neither such Purchaser nor its affiliates, nor any persons acting on its or their behalf,
have engaged or will engage in any directed selling efforts with respect to the Offered
Securities, and such Purchaser, its affiliates and all persons acting on its or their
behalf have complied and will comply with the offering restrictions requirement of
Regulation S. Each Purchaser severally agrees that, at or prior to confirmation of sale of
the Offered Securities, other than a sale pursuant to Rule 144A, such Purchaser will have
sent to each distributor, dealer or person receiving a selling concession, fee or other
remuneration that purchases the Offered Securities from it during the restricted period a
confirmation or notice to substantially the following effect:
“The Securities covered hereby have not been registered under the U.S.
Securities Act of 1933 (the “Securities Act”) and may not be offered or
sold within the United States or to, or for the account or benefit of,
U.S. persons (i) as part of their distribution at any time or (ii)
otherwise until 40 days after the later of the date of the commencement of
the offering and the closing date, except in either case in accordance
with Regulation S (or Rule 144A if available) under the Securities Act.
Terms used above have the meanings given to them by Regulation S.”
Terms used in this subsection (b) have the meanings given to them by Regulation S.
(c) Each Purchaser severally agrees that it and each of its affiliates has not
entered and will not enter into any contractual arrangement with respect to the
distribution of the Offered Securities except for any such arrangements with the other
Purchasers or affiliates of the other Purchasers or with the prior written consent of the
Company.
(d) Each Purchaser severally agrees that it and each of its affiliates will not
offer or sell the Offered Securities in the United States by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c), including, but not
limited to (i) any advertisement, article, notice or other communication published in any
newspaper, magazine or similar media or broadcast over television or radio, or (ii) any
seminar or meeting whose attendees have been invited by any general solicitation or general
advertising. Each Purchaser severally agrees, with respect to resales made in reliance on
Rule 144A of any of the Offered Securities, to deliver either with the confirmation of such
resale or otherwise prior to settlement of such resale a notice to the effect that the
resale of such Offered Securities has been made in reliance upon the exemption from the
registration requirements of the Securities Act provided by Rule 144A.
(e) In relation to each Member State of the European Economic Area which
has implemented the Prospectus Directive (each, a “Relevant Member State”), each of the
Purchasers severally represents and agrees that with effect from and including the date on
which the Prospectus Directive is implemented in that Relevant Member State (the “Relevant
Implementation Date”) it has not made and will not make an offer of Offered Securities to
the public in that Relevant Member State prior to the publication of a prospectus in
relation to the Offered Securities which has been approved by the competent authority in
that Relevant Member
State or, where appropriate, approved in another Relevant Member State and notified to the
competent authority in that Relevant Member State, all in accordance with the Prospectus
Directive, except that it may, with effect from and including the Relevant Implementation
Date, make an offer of Offered Securities to the public in that Relevant Member State at
any time:
(i) to legal entities which are authorized or regulated to operate in the
financial markets or, if not so authorized or regulated, whose corporate purpose is
solely to invest in securities;
(ii) to any legal entity which has two or more of (A) an average of at least
250 employees during the last financial year; (B) a total balance sheet of more
than €43,000,000 and (C) an annual net turnover of more than €50,000,000, as shown
in its last annual or consolidated accounts; or
(iii) in any other circumstances which do not require the publication by the
Company of a prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an “offer of Offered Securities to
the public” in relation to any Offered Securities in any Relevant Member State means the
communication in any form and by any means of sufficient information on the terms of the
offer and the Offered Securities to be offered so as to enable an investor to decide to
purchase or subscribe the Offered Securities, as the same may be varied in that Member
State by any measure implementing the Prospectus Directive in that Member State and the
expression “Prospectus Directive” means Directive 2003/71/EC and includes any relevant
implementing measure in each Relevant Member State.
(f) Each of the Purchasers severally represents and agrees that:
(i) it has only communicated or caused to be communicated and will only
communicate or cause to be communicated an invitation or inducement to engage in
investment activity (within the meaning of Section 21 of the Financial Services and
Markets Xxx 0000 (the “FSMA”)) to persons who have professional experience in
matters relating to investments falling within Article 19(5) of the FSMA or in
circumstances in which Section 21(1) of the FSMA does not apply to the Company or
the Guarantors; and
(ii) it has complied and will comply with all applicable provisions of the
FSMA with respect to anything done by it in relation to the Offered Securities in,
from or otherwise involving the United Kingdom.
5. Certain Agreements of the Company and each Guarantor. The Company and each Guarantor
agree with the several Purchasers that:
(a) Amendments and Supplements to Offering Memorandums. The Company and the
Guarantors will promptly advise the Representatives of any proposal to amend or supplement
the Preliminary or Final Offering Memorandum and will not effect such amendment or
supplementation without the Representatives’ consent. If, at any time prior to the
completion of the resale of the Offered Securities by the Purchasers, there occurs an event
or development as a result of which any document included in the Preliminary or Final
Offering Memorandum, the General Disclosure Package or any Supplemental Marketing Material,
if republished immediately following such event or development, included or would include
an untrue statement of a material fact or omitted or would omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, the Company and the Guarantors promptly will notify
the Representatives of such event and promptly will prepare and furnish, at its own
expense, to the Purchasers and the dealers and to any other dealers at the request of the
Representatives, an amendment or supplement which will correct such
statement or omission. Neither the Representatives’ consent to, nor its delivery to
offerees or investors of, any such amendment or supplement shall constitute a waiver of any
of the conditions set forth in Section 7.
(b) Furnishing of Offering Memorandums. The Company and the Guarantors will furnish
to the Representatives copies of the Preliminary Offering Memorandum, each other document
comprising a part of the General Disclosure Package, the Final Offering Memorandum, all
amendments and supplements to such documents and each item of Supplemental Marketing
Material, in each case as soon as available and in such quantities as the Representatives
request. At any time when the Company is not subject to Section 13 or 15(d), the Company
and the Guarantors will promptly furnish or cause to be furnished to the Representatives
(and, upon request, to each of the other Purchasers) and, upon request of holders and
prospective purchasers of the Offered Securities, to such holders and purchasers, copies of
the information required to be delivered to holders and prospective purchasers of the
Offered Securities pursuant to Rule 144A(d)(4) (or any successor provision thereto) in
order to permit compliance with Rule 144A in connection with resales by such holders of the
Offered Securities. The Company will pay the expenses of printing and distributing to the
Purchasers all such documents.
(c) Blue Sky Qualifications. The Company and the Guarantors will arrange for the
qualification of the Offered Securities for sale and the determination of their eligibility
for investment under the laws of such jurisdictions in the United States and
Canada as the Representatives designate and will continue such qualifications in effect so
long as required for the resale of the Offered Securities by the Purchasers, provided that
the Company will not be required to qualify as a foreign corporation or to file a general
consent to service of process in any such state.
(d) Reporting Requirements. For so long as the Offered Securities remain
outstanding, the Company will furnish to the Representatives and, upon request, to each of
the other Purchasers, as soon as practicable after the end of each fiscal year, a copy of
the Company’s annual report to stockholders for such year; and the Company will furnish to
the Representatives and, upon request, to each of the other Purchasers (i) as soon as
available, a copy of each report and any definitive proxy statement of the Company filed
with the Commission under the Exchange Act or mailed to stockholders, and (ii) from time to
time, such other information concerning the Company and the Guarantors as the
Representatives may reasonably request. However, so long as the Company is subject to the
reporting requirements of either Section 13 or Section 15(d) of the Exchange Act and is
timely filing reports with the Commission on its Electronic Data Gathering, Analysis and
Retrieval system (“XXXXX”), it is not required to furnish such reports or statements to the
Purchasers.
(e) Transfer Restrictions. During the period of one year after the Closing Date, the
Company will, upon request, furnish to the Representatives, each of the other Purchasers
and any holder of Offered Securities a copy of the restrictions on transfer applicable to
the Offered Securities.
(f) No General Solicitation. The Company and the Guarantors will not engage and will
cause its other affiliates and any person acting on their behalf (other than, in any case,
the Purchasers and any of their affiliates, as to whom the Company and the Guarantors make
no covenant) not to engage, in any form of general solicitation or general advertising
(within the meaning of Regulation D) in connection with any offer or sale of the Offered
Securities in the United States.
(g) No Directed Selling. The Company and the Guarantors will not engage and will
cause its other affiliates and any person acting on their behalf (other than, in any case,
the Purchasers and any of their affiliates, as to whom the Company and the Guarantors make
no covenant) not to engage, in any directed selling effort with respect to the Offered
Securities, and will comply, and will cause its other affiliates and any person acting on
their
behalf (other than, in any case, the Purchasers and any of their affiliates, as to
whom the Company and the Guarantors make no covenant) to comply, with the offering
restrictions requirement of Regulation S. Terms used in this Section 5(g) have the
meanings given to them by Regulation S.
(h) No Resales by Affiliates. During the period of one year after the Closing Date,
the Company will not, and will not permit any of its affiliates (as defined in Rule 144)
to, resell any of the Offered Securities that have been reacquired by any of them.
(i) Investment Company. During the period of one year after the Closing Date,
neither the Company nor any Guarantor will be or become, an open-end investment company,
unit investment trust or face-amount certificate company that is or is required to be
registered under Section 8 of the Investment Company Act.
(j) Payment of Expenses. The Company and the Guarantors will pay all expenses
incidental to the performance of their respective obligations under this Agreement, the
Indenture and the Registration Rights Agreement, including but not limited to (i) the fees
and expenses of the Trustee and its professional advisers; (ii) all expenses in connection
with the execution, issue, authentication, packaging and initial delivery of the Offered
Securities and, as applicable, the Exchange Securities, the preparation and printing of
this Agreement, the Registration Rights Agreement, the Offered Securities, the Indenture,
the Preliminary Offering Memorandum, any other documents comprising any part of the General
Disclosure Package, the Final Offering Memorandum, all amendments and supplements thereto,
each item of Supplemental Marketing Material and any other document relating to the
issuance, offer, sale and delivery of the Offered Securities and as applicable, the
Exchange Securities; (iii) all fees and expenses (including fees and expenses of counsel)
of the Company in connection with approval of the Offered Securities by DTC for
“book-entry” transfer; (iv) any expenses (including fees and disbursements of counsel to
the Purchasers) incurred in connection with qualification of the Offered Securities or the
Exchange Securities for sale under the laws of such jurisdictions in the United States and
Canada as the Representatives designate and the preparation and printing of memoranda
relating thereto (v) any fees charged by investment rating agencies for the rating of the
Securities or the Exchange Securities, and (vi) expenses incurred in distributing the
Preliminary Offering Memorandum, any other documents comprising any part of the General
Disclosure Package, the Final Offering Memorandum (including any amendments and supplements
thereto) and any Supplemental Marketing Material to the Purchasers. The Company and the
Guarantors will also pay or reimburse the Purchasers (to the extent incurred by them) for
costs and expenses of the Company’s officers and employees and any other expenses of the
Company and the Guarantors relating to investor presentations on any “road show” in
connection with the offering and sale of the Offered Securities including, without
limitation, any travel expenses of the Company’s and the Guarantors’ officers and employees
and any other expenses of the Company and the Guarantors; provided that, except as provided
in this Section 5(j) and in Sections 8 and 10 hereof, the Purchasers shall pay their own
costs and expenses, including the costs and expenses of their counsel.
(k) Use of Proceeds. The Company will use the net proceeds received in connection
with this offering in the manner described in the “Use of Proceeds” section of the General
Disclosure Package and, except as disclosed in the General Disclosure Package, the Company
does not intend to use any of the proceeds from the sale of the Offered Securities
hereunder to repay any outstanding debt owed to any affiliate of any Purchaser.
(l) Absence of Manipulation. In connection with the offering, until Xxxxxxx Xxxxx
shall have notified the Company and the other Purchasers of the completion of the resale of
the Offered Securities, neither the Company, the Guarantors, nor any of their affiliates
will, either alone or with one or more other persons, bid for or purchase for any account
in which it or any of its affiliates has a beneficial interest any Offered Securities or
attempt to induce any person to purchase any Offered Securities; and neither it nor any of
their affiliates will make bids or purchases for the purpose of creating actual, or
apparent, active trading in, or of raising the price
of, the Offered Securities.
(m) Restriction on Sale of Securities. For a period of 120 days after the date
hereof, neither the Company nor any Guarantor will, directly or indirectly, take any of the
following actions with respect to any U.S. dollar-denominated debt securities issued or
guaranteed by the Company or such Guarantor and having a maturity of more than one year
from the date of issue or any securities convertible into or exchangeable or exercisable
for any of its Securities (“Lock-Up Securities”): (i) offer, sell, issue, contract or grant
any option, right or warrant to sell, pledge, transfer or otherwise dispose of Lock-Up
Securities, (ii) offer, sell, issue, contract or grant any option to sell, contract or
grant any option, right or warrant to purchase Lock-Up Securities, (iii) enter into any
swap, hedge, open “put equivalent position” within the meaning of Rule 16a-1 under the
Exchange Act or any other agreement that transfers, in whole or in part, the economic
consequences of ownership of Lock-Up Securities, (iv) establish or increase a put
equivalent position or liquidate or decrease a call equivalent position in Lock-Up
Securities within the meaning of Section 16 of the Exchange Act or (v) announce the
offering of, or file with the Commission a registration statement under the Securities Act
relating to Lock-Up Securities or publicly disclose the intention to take any such action,
without the prior written consent of Xxxxxxx Xxxxx and Credit Suisse (which consent may be
withheld at the sole discretion of Xxxxxxx Xxxxx and Credit Suisse). Neither the Company
nor any Guarantor will at any time directly or indirectly, take any action referred to in
clauses (i) through (v) above with respect to any securities under circumstances where such
offer, sale, pledge, contract or disposition would cause the exemption afforded by Section
4(2) of the Securities Act or the safe harbor of Regulation S thereunder to cease to be
applicable to the offer and sale of the Offered Securities.
6. Free Writing Communications.
(a) Issuer Free Writing Communications. The Company and each Guarantor represents
and agrees that, unless it obtains the prior consent of the Representatives, and each
Purchaser represents and agrees that, unless it obtains the prior consent of the Company
and the Representatives, it has not made and will not make any offer relating to the
Offered Securities that would constitute an Issuer Free Writing Communication.
(b) Term Sheets. The Company consents to the use by any Purchaser of a Free Writing
Communication that (i) contains only (A) information describing the preliminary terms of
the Offered Securities or their offering or (B) information that describes the final terms
of the Offered Securities or their offering and that is included in or is subsequently
included in the Final Offering Memorandum, including by means of a pricing term sheet in
the form of Exhibit 1 to Schedule B hereto, or (ii) does not contain any
material information about the Company or any Guarantor or their securities that was
provided by or on behalf of the Company or any Guarantor, it being understood and agreed
that the Company and each Guarantor shall not be responsible to any Purchaser for liability
arising from any inaccuracy in such Free Writing Communications referred to in clause (i)
or (ii) as compared with the information in the Preliminary Offering Memorandum, the Final
Offering Memorandum or the General Disclosure Package.
7. Conditions of the Obligations of the Purchasers. The obligations of the several
Purchasers to purchase and pay for the Offered Securities will be subject to the accuracy of the
representations and warranties of the Company and the Guarantors herein (as though made on the
Closing Date), to the accuracy of the statements of officers of the Company and the Guarantors made
pursuant to the provisions hereof, to the performance by the Company and the Guarantors of their
obligations hereunder and to the following additional conditions precedent:
(a) Accountants’ Comfort Letter. The Purchasers shall have received a “comfort
letter” from KPMG LLP dated the date hereof on the General Disclosure Package in form and
substance satisfactory to the Purchasers concerning certain financial and accounting
information set forth in the General Disclosure Package. In addition, the Purchasers shall
have received a “bring down comfort letter” from KPMG LLP dated as of the Closing Date,
addressing the matters in the
“comfort letter” delivered on the date hereof pursuant to the preceding sentence, except
that (i) each “bring-down comfort letter” shall cover the financial and accounting
information in the Final Offering Memorandum and any amendment or supplement thereto and
(ii) procedures shall be brought down to a date no more than 2 days prior to the Closing
Date, and otherwise in form and substance satisfactory to the Purchasers.
(b) Reserve Engineer Comfort Letter. The Purchasers shall have received letters,
dated the date hereof, of Xxxxxx, Xxxxxxxxx & Associates, an independent petroleum
engineers firm for the Company, and in form and substance satisfactory to the
Representatives and the Representatives’ counsel, with respect to the estimated quantities
of the Company’s reserves, the future net revenues from those reserves and their present
value as set forth in the General Disclosure Package and the Final Offering Memorandum and
such related matters as the Representatives shall reasonably request.
(c) No Material Adverse Change. Subsequent to the execution and delivery of this
Agreement, there shall not have occurred (i) any change, or any development or event
involving a prospective change, in the condition (financial or otherwise), results of
operations, business, properties or prospects of the Company and the Guarantors taken as a
whole which, in the judgment of the Representatives, is material and adverse and makes it
impractical or inadvisable to market the Offered Securities; (ii) any downgrading in the
rating of any debt securities of the Company by any “nationally recognized statistical
rating organization” (as defined for purposes of Rule 436(g)), or any public announcement
that any such organization has under surveillance or review its rating of any debt
securities of the Company other than an announcement with positive implications of a
possible upgrading, and no implication of a possible downgrading, of such rating) or any
announcement that the Company has been placed on negative outlook; (iii) any change in U.S.
or international financial, political or economic conditions or currency exchange rates or
exchange controls the effect of which is such as to make it, in the judgment of the
Representatives, impractical to market or to enforce contracts for the sale of the Offered
Securities, whether in the primary market or in respect of dealings in the secondary
market, (iv) any suspension or material limitation of trading in securities generally on
the New York Stock Exchange, or any setting of minimum or maximum prices for trading on
such exchange; (v) any suspension of trading of any securities of the Company on any
exchange or in the over-the-counter market; (vi) any banking moratorium declared by any
U.S. federal or New York authorities; (vii) any major disruption of settlements of
securities, payment, or clearance services in the United States or any other country where
such securities are listed or (viii) any attack on, outbreak or escalation of hostilities
or act of terrorism involving the United States, any declaration of war by Congress or any
other national or international calamity or emergency if, in the judgment of the
Representatives, the effect of any such attack, outbreak, escalation, act, declaration,
calamity or emergency is such as to make it in the judgment of the Representatives
impractical or inadvisable to market the Offered Securities or to enforce contracts for the
sale of the Offered Securities.
(d) Opinion of Counsel for Company. The Representatives shall have received an
opinion, dated such Closing Date, of Xxxxxxxx & Knight LLP, counsel for the Company, with
respect to such matters as the Representatives may require.
(e) Opinion of General Counsel of the Company. The General Counsel of the Company
shall have furnished to the Representative her written opinion, as counsel to the Company,
dated the Closing Date with respect to such matters as the Representatives may require.
(f) Opinion of Counsel for Purchasers. The Purchasers shall have received from
Xxxxxx & Xxxxxx LLP, counsel for the Purchasers, such opinion or opinions, dated the
Closing Date with respect to such matters as the Representatives may require, and the
Company and the Guarantors shall have furnished to such counsel such documents as they
request for the purpose of enabling them to pass upon such matters.
(g) Officers’ Certificate. The Purchasers shall have received certificates, dated the
Closing Date, of an executive officer of the Company and the Guarantors and a principal
financial or accounting officer of the Company and the Guarantors in which such officers
shall state that the representations and warranties of the Company and the Guarantors in
this Agreement are true and correct as of the Closing Date, that the Company and the
Guarantors have complied with all agreements and satisfied all conditions on their part to
be performed or satisfied hereunder at or prior to the Closing Date, and that, subsequent
to the date of the most recent financial statements in the General Disclosure Package there
has been no material adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or otherwise), results of operations,
business, properties or prospects of the Company, the Guarantors and their respective
subsidiaries taken as a whole except as set forth in the General Disclosure Package or as
described in such certificate.
The Company and the Guarantors will furnish the Purchasers with such conformed copies of such
opinions, certificates, letters and documents as the Purchasers reasonably request. Xxxxxxx Xxxxx
may in its sole discretion waive on behalf of the Purchasers compliance with any conditions to the
obligations of the Purchasers hereunder, whether in respect of an Optional Closing Date or
otherwise.
8. Indemnification and Contribution.
(a) Indemnification of Purchasers. The Company and the Guarantors will indemnify and
hold harmless each Purchaser, its officers, employees, agents, partners, members, directors
and its affiliates and each person, if any, who controls such Purchaser within the meaning
of Section 15 of the Securities Act or Section 20 of the Exchange Act (each, an
“Indemnified Party”), against any and all losses, claims, damages or liabilities, joint or
several, to which such Indemnified Party may become subject, under the Securities Act, the
Exchange Act, other Federal or state statutory law or regulation or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact
contained in the Preliminary Offering Memorandum or the Final Offering Memorandum, in each
case as amended or supplemented, or any Issuer Free Writing Communication (including with
limitation, any Supplemental Marketing Material), or the Exchange Act Reports, or arise out
of or are based upon the omission or alleged omission of a material fact necessary in order
to make the statements therein, in the light of the circumstances under which they were
made, not misleading; and will reimburse each Indemnified Party for any legal or other
expenses reasonably incurred by such Indemnified Party in connection with investigating,
preparing or defending against any loss, claim, damage, liability, action, litigation,
investigation or proceeding whatsoever (whether or not such Indemnified Party is a party
thereto) whether threatened or commenced and in connection with the enforcement of this
provision with respect to any of the above as such expenses are incurred; provided,
however, that the Company and the Guarantors will not be liable in any such case, to the
extent that any such loss, claim, damage or liability arises out of or is based upon an
untrue statement or alleged untrue statement in or omission or alleged omission from any of
such documents in reliance upon and in conformity with written information furnished to the
Company by any Purchaser through the Representatives specifically for use therein, it being
understood and agreed that the only such information consists of the information described
as such in subsection (b) below.
(b) Indemnification of Company. Each Purchaser will severally and not jointly
indemnify and hold harmless each of the Company, the Guarantors, each of their respective
directors and each of their respective officers and each person, if any, who controls the
Company or such Guarantor within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act (each, a “Purchaser Indemnified Party”), against any losses,
claims, damages or liabilities to which such Purchaser Indemnified Party may become
subject, under the Securities Act, the Exchange Act, other Federal or state statutory law
or regulation or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in the Preliminary Offering Memorandum or
the Final Offering Memorandum, in each case as amended or supplemented, or any Issuer Free
Writing
Communication or arise out of or are based upon the omission or the alleged omission of a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not
misleading, in each case to the extent, but only to the extent, that such untrue statement
or alleged untrue statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to the Company by such Purchaser through
the Representatives specifically for use therein, and will reimburse any legal or other
expenses reasonably incurred by such Purchaser Indemnified Party in connection with
investigating, preparing or defending against any such loss, claim, damage, liability,
action, litigation, investigation or proceeding whatsoever (whether or not such Purchaser
Indemnified Party is a party thereto) whether threatened or commenced based upon any such
untrue statement or omission, or any such alleged untrue statement or omission as such
expenses are incurred, it being understood and agreed that the only such information
furnished by any Purchaser consists of the following information in the Preliminary and
Final Offering Memorandum: the information under the sub-headings “Commissions and
Discounts” and “Short Positions” under the caption “Plan of Distribution;” provided,
however, that the Purchasers shall not be liable for any losses, claims, damages or
liabilities arising out of or based upon the Company’s failure to perform its obligations
under Section 5(a) of this Agreement.
(c) Actions against Parties; Notification. Promptly after receipt by an indemnified
party under this Section 8 of notice of the commencement of any action, such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party
under subsection (a) or (b) above, notify the indemnifying party of the commencement
thereof; but the failure to notify the indemnifying party shall not relieve it from any
liability that it may have under subsection (a) or (b) above except to the extent that it
has been materially prejudiced (through the forfeiture of substantive rights or defenses)
by such failure; and provided further that the failure to notify the indemnifying party
shall not relieve it from any liability that it may have to an indemnified party otherwise
than under subsection (a) or (b) above. In case any such action is brought against any
indemnified party and it notifies the indemnifying party of the commencement thereof, the
indemnifying party will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to assume the defense
thereof, with counsel satisfactory to such indemnified party (who shall not, except with
the consent of the indemnified party, be counsel to the indemnifying party), and after
notice from the indemnifying party to such indemnified party of its election so to assume
the defense thereof, the indemnifying party will not be liable to such indemnified party
under this Section 8 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the prior written consent of the
indemnified party, effect any settlement of any pending or threatened action 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 (i) an
unconditional release of such indemnified party from all liability on any claims that are
the subject matter of such action and (ii) does not include a statement as to or an
admission of fault, culpability or failure to act by or on behalf of any indemnified party.
(d) Contribution. If the indemnification provided for in this Section 8 is
unavailable or insufficient to hold harmless an indemnified party under subsection (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of the losses, claims, damages or liabilities referred
to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and the Purchasers on the other
from the offering of the Offered Securities or (ii) if the allocation provided by clause
(i) above is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) above but also the
relative fault of the Company and the Guarantors on the one hand and the Purchasers on the
other in connection with the statements or omissions which resulted in such losses, claims,
damages or liabilities as well as any other relevant equitable considerations. The relative
benefits received by the Company and the Guarantors on the one hand and the Purchasers on
the other shall be deemed to be in the same proportion as the total net proceeds from the
offering (before deducting
expenses) received by the Company bear to the total discounts and commissions received by
the Purchasers from the Company under this Agreement. The relative fault 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 Company and the Guarantors or the Purchasers and the
parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such untrue statement or omission. The amount paid by an indemnified party as a
result of the losses, claims, damages or liabilities referred to in the first sentence of
this subsection (d) shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any action
or claim which is the subject of this subsection (d). Notwithstanding the provisions of
this subsection (d), no Purchaser shall be required to contribute any amount in excess of
the amount by which the total price at which the Offered Securities purchased by it were
resold exceeds the amount of any damages which such Purchaser has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. The Purchasers’ obligations in this subsection (d) to contribute are several in
proportion to their respective purchase obligations and not joint. The Company, the
Guarantors and the Purchasers agree that it would not be just and equitable if contribution
pursuant to this Section 8(d) were determined by pro rata allocation (even if the
Purchasers were treated as one entity for such purpose) or by any other method of
allocation which does not take account of the equitable considerations referred to in this
Section 8(d).
9. Default of Purchasers. If any Purchaser or Purchasers default in their obligations to
purchase Offered Securities hereunder and the aggregate principal amount of Offered Securities that
such defaulting Purchaser or Purchasers agreed but failed to purchase does not exceed 10% of the
total principal amount of Offered Securities, Xxxxxxx Xxxxx may make arrangements satisfactory to
the Company for the purchase of such Offered Securities by other persons, including any of the
Purchasers, but if no such arrangements are made by the Closing Date, the non-defaulting Purchasers
shall be obligated severally, in proportion to their respective commitments hereunder, to purchase
the Offered Securities that such defaulting Purchasers agreed but failed to purchase. If any
Purchaser or Purchasers so default and the aggregate principal amount of Offered Securities with
respect to which such default or defaults occur exceeds 10% of the total principal amount of
Offered Securities and arrangements satisfactory to Xxxxxxx Xxxxx and the Company for the purchase
of such Offered Securities by other persons are not made within 36 hours after such default, this
Agreement will terminate without liability on the part of any non-defaulting Purchaser or the
Company, except as provided in Section 10. As used in this Agreement, the term “Purchaser” includes
any person substituted for a Purchaser under this Section 9. Nothing herein will relieve a
defaulting Purchaser from liability for its default.
10. Survival of Certain Representations and Obligations. The respective indemnities,
agreements, representations, warranties and other statements of the Company, the Guarantors or
their respective officers and of the several Purchasers set forth in or made pursuant to this
Agreement will remain in full force and effect, regardless of any investigation, or statement as to
the results thereof, made by or on behalf of any Purchaser, the Company, the Guarantors or any of
their respective representatives, officers or directors or any controlling person, and will survive
delivery of and payment for the Offered Securities. If this Agreement is terminated pursuant to
Section 9 or if for any reason the purchase of the Offered Securities by the Purchasers is not
consummated, the Company and the Guarantors shall remain responsible for the expenses to be paid or
reimbursed by it pursuant to Section 5 and the respective obligations of the Company, the
Guarantors and the Purchasers pursuant to Section 8 shall remain in effect. If the purchase of the
Offered Securities by the Purchasers is not consummated for any reason other than solely because of
the termination of this Agreement pursuant to Section 9 or the occurrence of any event specified in
clause (iii), (iv), (vi), (vii) or (viii) of Section 7(b), the Company and the Guarantors will
reimburse the Purchasers for all out-of-pocket expenses (including fees and disbursements of
counsel) reasonably incurred by them in connection with the offering of the Offered Securities.
11. Notices. All communications hereunder will be in writing and, if sent to the Purchasers
will be mailed, delivered or telegraphed and confirmed to the Purchasers c/o Merrill Lynch, Pierce,
Xxxxxx & Xxxxx Incorporated, Xxx Xxxxxx Xxxx, Xxx Xxxx, Xxx Xxxx 00000, Facsimile: (000) 000-0000,
Attention:
Legal Department; or, if sent to the Company or the Guarantors, will be mailed, delivered or
telegraphed and confirmed to it at Xxxxxxx Exploration Company, 0000 Xxxxxx Xxxxx Xxxxxxx, Xxxxxxxx
0, Xxxxx 000, Xxxxxx, Xxxxx 00000, Attention: Xxxx Xxxxx, General Counsel; provided, however, that
any notice to a Purchaser pursuant to Section 8 will be mailed, delivered or telegraphed and
confirmed to such Purchaser.
12. Successors. This Agreement will inure to the benefit of and be binding upon the parties
hereto and their respective successors and the controlling persons referred to in Section 8, and no
other person will have any right or obligation hereunder, except that holders of Offered Securities
shall be entitled to enforce the agreements for their benefit contained in the second and third
sentences of Section 5(b) hereof against the Company as if such holders were parties thereto.
13. Representation of Purchasers. You will act for the several Purchasers in connection with
this purchase, and any action under this Agreement taken by you jointly or by Xxxxxxx Xxxxx will be
binding upon all the Purchasers.
14. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all such counterparts shall together constitute one
and the same Agreement.
15. Absence of Fiduciary Relationship. The Company and the Guarantors acknowledge and agree
that:
(a) No Other Relationship. The Representatives have been retained solely to act as
initial purchasers in connection with the initial purchase, offering and resale of the
Offered Securities and that no fiduciary, advisory or agency relationship between the
Company or the Guarantors and the Representatives has been created in respect of any of the
transactions contemplated by this Agreement or the Preliminary or Final Offering
Memorandum, irrespective of whether the Representatives have advised or is advising the
Company or the Guarantors on other matters;
(b) Arm’s-Length Negotiations. The purchase price of the Offered Securities set
forth in this Agreement was established by the Company and the Guarantors following
discussions and arms-length negotiations with the Representatives and the Company and the
Guarantors are capable of evaluating and understanding and understand and accept the terms,
risks and conditions of the transactions contemplated by this Agreement;
(c) Absence of Obligation to Disclose. The Company has and the Guarantors have been
advised that the Representatives and their affiliates are engaged in a broad range of
transactions which may involve interests that differ from those of the Company or the
Guarantors and that the Representatives have no obligation to disclose such interests and
transactions to Company or the Guarantors by virtue of any fiduciary, advisory or agency
relationship; and
(d) Waiver. The Company and the Guarantors waive, to the fullest extent permitted by
law, any claims it may have against the Representatives for breach of fiduciary duty or
alleged breach of fiduciary duty and agree that the Representatives shall have no liability
(whether direct or indirect) to the Company or the Guarantors in respect of such a
fiduciary duty claim or to any person asserting a fiduciary duty claim on behalf of or in
right of the Company, including stockholders, employees or creditors of the Company or the
Guarantors.
16. Applicable Law. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York.
The Company and the Guarantors hereby submit to the non-exclusive jurisdiction of the Federal
and state courts in the Borough of Manhattan in The City of New York in any suit or proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby. The Company
and the Guarantors irrevocably and unconditionally waive any objection to the laying of venue of
any suit or proceeding
arising out of or relating to this Agreement or the transactions contemplated hereby in Federal and
state courts in the Borough of Manhattan in The City of New York and irrevocably and
unconditionally waive and agree not to plead or claim in any such court that any such suit or
proceeding in any such court has been brought in an inconvenient forum.
[Remainder of Page Left Intentionally Blank — Signature Pages Follow]
Exhibit 10.34
If the foregoing is in accordance with the Purchasers’ understanding of our agreement, kindly
sign and return to us one of the counterparts hereof, whereupon it will become a binding agreement
between the Company, the Guarantors and the several Purchasers in accordance with its terms.
Very truly yours, Xxxxxxx Exploration Company |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx, Xx. | |||
Name: | Xxxxxx X. Xxxxxxxx, Xx. | |||
Title: | Chief Financial Officer and Executive Vice President |
Xxxxxxx, Inc. |
||||
By: | /s/ Xxxxxx X. Xxxxxxxx, Xx. | |||
Name: | Xxxxxx X. Xxxxxxxx, Xx. | |||
Title: | Chief Financial Officer and Executive Vice President |
Xxxxxxx Oil & Gas, L.P. | ||||
By: | Xxxxxxx, Inc., its general partner | |||
By: | /s/ Xxxxxx X. Xxxxxxxx, Xx. | |||
Name: | Xxxxxx X. Xxxxxxxx, Xx. | |||
Title: | Chief Financial Officer and Executive Vice President |
Signature Page to Purchase Agreement
Xxxxxxx Exploration Company Senior Notes due 2019
Xxxxxxx Exploration Company Senior Notes due 2019
The foregoing Purchase Agreement is hereby confirmed
and accepted as of the date first above written.
and accepted as of the date first above written.
Acting on behalf of themselves and as the Representatives
of the several Purchasers.
of the several Purchasers.
By
|
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx | |||
Incorporated | ||||
By:
|
/s/ J. Xxx Xxxxxxxx | |||
Title: Managing Director | ||||
By
|
Credit Suisse Securities (USA) LLC | |||
By:
|
/s/ Xxxxxx Xxxxxxxxx | |||
Title: Director |
Signature Page to Purchase Agreement
Xxxxxxx Exploration Company Senior Notes due 2019
Xxxxxxx Exploration Company Senior Notes due 2019
Exhibit 10.34
SCHEDULE A
Principal Amount of |
||||
Initial Purchasers | Offered Securities | |||
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated |
$ | 90,000,000 | ||
Credit Suisse Securities (USA) LLC |
90,000,000 | |||
RBC Capital Markets, LLC |
24,000,000 | |||
BNP Paribas Securities Corp. |
15,750,000 | |||
Capital One Southcoast, Inc. |
15,750,000 | |||
Natixis Securities North America Inc. |
15,750,000 | |||
RBS Securities Inc. |
15,750,000 | |||
Banco Bilbao Vizcaya Agentaria, S.A. |
6,600,000 | |||
Comerica Securities, Inc. |
6,600,000 | |||
Lloyds Securities Inc. |
6,600,000 | |||
Mitsubishi UFJ Securities (USA), Inc. |
6,600,000 | |||
U.S. Bancorp Investments, Inc. |
6,600,000 | |||
Total |
$ | 300,000,000 | ||
Schedule A-1
SCHEDULE B
Issuer Free Writing Communications (included in the General Disclosure Package)
1. | Final term sheet, dated May 16, 2011, a copy of which is attached hereto as Exhibit 1. |
Exhibit 1
BRIGHAM EXPLORATION COMPANY LOGO)"/>
Pricing Supplement dated May 16, 2011 to the Preliminary Offering Memorandum dated May 16, 2011 of
Xxxxxxx Exploration Company. This Pricing Supplement is qualified in its entirety by reference to
the Preliminary Offering Memorandum. The information in this Pricing Supplement supplements the
Preliminary Offering Memorandum and supersedes the information in the Preliminary Offering
Memorandum to the extent it is inconsistent with the information in the Preliminary Offering
Memorandum. Capitalized terms used in this Pricing Supplement but not defined have the meanings
given them in the Preliminary Offering Memorandum.
Pricing Term Sheet
Issuer:
|
Xxxxxxx Exploration Company | |
Guarantors:
|
The notes will be guaranteed on a senior unsecured basis by the Issuer’s existing and future subsidiaries, subject to certain exceptions. | |
Security Description:
|
6 7/8% Senior Notes due 2019 | |
Face:
|
$300,000,000 | |
Maturity:
|
June 1, 2019 | |
Coupon:
|
6.875% | |
Offering Price:
|
100.000% | |
Yield to Maturity:
|
6.875% | |
Interest Payment Dates:
|
June 1 and December 1 of each year | |
First Payment Date:
|
December 1, 2011 | |
Record Dates:
|
May 15 and November 15 | |
Gross Proceeds:
|
$300,000,000 | |
Equity Clawback
|
Up to 35% at 106.875% prior to June 1, 2014 | |
Optional Redemption:
|
On or after June 1, 2015, at the following redemption prices (expressed as a percentage of principal amount), plus accrued and unpaid interest, if any, on the Notes redeemed during the twelve-month period indicated beginning on June 1 of the years indicated below: |
Year | Price | |||
2015 |
103.438 | % | ||
2016 |
101.719 | % | ||
2017 and thereafter |
100.000 | % |
If certain transactions that would constitute a Change of Control occur prior to June 1, 2012, we may redeem all, but not less than all, of the notes at a redemption price equal to 110% of principal amount plus accrued and unpaid interest. | ||
Make-Whole:
|
Make-whole redemption at Treasury Rate + 50 bps prior to June 1, 2015 | |
Change of Control:
|
Put at 101% of principal plus accrued interest | |
Trade Date:
|
May 16, 2011 | |
Settlement Date:
|
May 19, 2011 | |
CUSIP / ISIN:
|
Rule 144A: 109178 AF0 / US109178AF08 Regulation S: U6224K AD1 / USU6224KAD10 |
|
Increments:
|
Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof | |
Joint Book-Running Managers:
|
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx Incorporated Credit Suisse Securities (USA) LLC | |
Co-Managers:
|
RBC Capital Markets, LLC BNP Paribas Securities Corp. Capital One Southcoast, Inc. Natixis Securities North America Inc. RBS Securities Inc. Banco Bilbao Vizcaya Agentaria, S.A. Comerica Securities, Inc. Lloyds Securities Inc. Mitsubishi UFJ Securities (USA), Inc. U.S. Bancorp Investments, Inc. |
|
Use of Proceeds:
|
The Issuer estimates that the net proceeds from this offering will be approximately $293.9 million after deducting the initial purchasers’ discounts and commissions and estimated offering expenses. The Issuer intends to use the net proceeds from this offering to fund portions of its 2011 and 2012 capital budgets and for general corporate purposes. Pending these uses, the Issuer intends to pay down outstanding borrowings under its senior credit facility. Certain of the initial purchasers or their affiliates are lenders under the senior credit facility and accordingly may receive a portion of the proceeds to the extent used to pay down outstanding borrowings. |
This material is strictly confidential and has been prepared by the Issuer solely for use in
connection with the proposed offering of the securities described in the Preliminary Offering
Memorandum. This material is personal to each offeree and does not constitute an offer to any other
person or the public generally to subscribe for or otherwise acquire the securities. Please refer
to the Preliminary Offering Memorandum for a complete description.
The securities have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), and are being offered only to (1) “qualified institutional buyers” as defined in
Rule 144A under the Securities Act and (2) outside the United States to non-U.S. persons in
compliance with Regulation S under the Securities Act, and this communication is only being
distributed to such persons.
This communication is not an offer to sell the securities and it is not a solicitation of an offer
to buy the securities in any jurisdiction to any person to whom it is unlawful to make such offer
or soliciation in such jurisdiction.
Any disclaimer or other notice that may appear below is not applicable to this communication and
should be disregarded. Such disclaimer or notice was automatically generated as a result of this
communication being sent by Bloomberg or another email system.