WISCONSIN ELECTRIC POWER COMPANY DEBT SECURITIES UNDERWRITING AGREEMENT
Exhibit 1.1
DEBT SECURITIES
To the Underwriters set forth
on Schedule A hereto
on Schedule A hereto
Ladies and Gentlemen:
Wisconsin Electric Power Company, a Wisconsin corporation (the “Company”), proposes to
issue and sell to one or more underwriters (the “Underwriters”) named in Schedule A to this
underwriting agreement (this “Agreement”) the aggregate principal amount of one or more new
series of its debt securities (the “Securities”) with the terms set forth in Schedule B
hereto. The Securities will be issued under an indenture, dated as of December 1, 1995 (the
“Indenture”), between the Company and U.S. Bank National Association (as successor to
Firstar Trust Company), as Trustee (the “Trustee”), in one or more series, which series may
vary as to interest rates, maturities, redemption provisions, selling prices and other terms, with
all such terms for any particular series of the Securities being determined at the time of sale.
The Company understands that the Underwriters propose to make a public offering of the
Securities as soon as their representative or representatives identified on Schedule A hereto (the
“Representatives”) deem advisable after this Agreement has been executed and delivered.
SECTION 1. Representations and Warranties.
(a) Representations and Warranties by the Company. The Company represents and
warrants to each Underwriter and agrees with each Underwriter, as follows:
(i) Compliance with Registration Requirements. The Company meets the
requirements for use of Form S-3 under the Securities Act of 1933, as amended (the
“1933 Act”). The Company has filed with the Securities and Exchange Commission
(the “Commission”) a registration statement on such Form (having the number(s)
set forth on Schedule B hereto), which has become effective (including information (if
any) deemed to be part of the registration statement at the time of effectiveness
pursuant to Rule 430A under the 1933 Act), for the registration under the 1933 Act of the
Securities; and no stop order suspending its effectiveness has been issued and no
proceeding for that purpose or pursuant to Section 8A of the 1933 Act against the Company
or related to the offering has been initiated or, to the best knowledge of the Company,
threatened by the Commission. Such registration statement meets the
requirements set forth in Rule 415(a)(1)(x) under the 1933 Act and complies in all
other material respects with said Rule, and as amended at the date of this Agreement,
including the exhibits thereto, and the information deemed a part thereof pursuant to
Rule 430B(f)(1) under the 1933 Act on the date of such registration statement’s
effectiveness for purposes of Section 11 of the 1933 Act, as such section applies to the
Company and the Underwriters for the Securities pursuant to Rule 430B(f)(2) under the
1933 Act (the “Effective Date”), is hereinafter called the “Registration
Statement.” The form of prospectus included in such Registration Statement is
hereinafter called the “Basic Prospectus,” and the Basic Prospectus, as supplemented by
the preliminary prospectus supplement dated September 25, 2008 relating to the
Securities, in the form filed with the Commission pursuant to Rule 424(b) under the 1933
Act (the “Preliminary Prospectus Supplement”), is hereinafter referred to as the
“Preliminary Prospectus.” The Basic Prospectus, as amended or supplemented in final
form, including by a prospectus supplement relating to the Securities in the form in
which it is filed with the Commission pursuant to Rule 424(b) under the 1933 Act (the
“Prospectus Supplement”), is hereinafter referred to as the “Prospectus.” The
Company will file with the Commission the Prospectus Supplement in accordance with Rule
424(b). As filed, the Prospectus Supplement, together with the Basic Prospectus, shall
contain all information required by the 1933 Act and the rules thereunder, and, except to
the extent the Representatives shall agree in writing to a modification, the Prospectus
Supplement shall be in all substantive respects in the form furnished to the
Representatives prior to the Execution Time (as defined below) or, to the extent not
completed at the Execution Time, shall contain only such specific additional information
and other changes (beyond that contained in the Basic Prospectus and any Preliminary
Prospectus) as the Company has advised the Representatives, prior to the Execution Time,
will be included or made therein. Any reference herein to the Registration Statement,
the Basic Prospectus, any Preliminary Prospectus or the Prospectus shall be deemed to
refer to and include the documents incorporated by reference therein pursuant to Item 12
of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the
“1934 Act”), on or before the date of this Agreement, or the issue date of the
Basic Prospectus, any Preliminary Prospectus or the Prospectus, as the case may be; and
any reference herein to the terms “amend,” “amendment” or “supplement” with respect to
the Registration Statement, the Basic Prospectus, any Preliminary Prospectus or the
Prospectus shall be deemed to refer to and include the filing of any document under the
1934 Act after the date of this Agreement, or the issue date of the Basic Prospectus, any
Preliminary Prospectus or the Prospectus, as the case may be, deemed to be incorporated
therein by reference.
“Execution Time” shall mean the date and time that this Agreement is executed and
delivered by the parties hereto.
(ii) No Misstatements or Omissions. (i) As of the Effective Date and as of
the applicable effective date of any subsequent amendment to the Registration Statement
(including the filing of any document incorporated by reference in the Registration
Statement) that becomes effective prior to the Closing Time (as defined in Section 2(b)),
the Registration Statement, as then amended as of any such time, and the Indenture,
complied or will comply, as the case may be, in all material respects with
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the applicable requirements of the 1933 Act, the Trust Indenture Act of 1939, as
amended (the “1939 Act”), and the 1934 Act and the respective rules thereunder,
(ii) as of the date hereof, and as of the date of any further supplement to the
Prospectus, the Prospectus, as then amended or supplemented as of any such time, will
comply in all material respects with the applicable requirements of the 1933 Act, the
1939 Act and the 1934 Act and the respective rules thereunder, (iii) as of the Effective
Date and as of the applicable effective date of any subsequent amendment to the
Registration Statement that becomes effective prior to the Closing Time, the Registration
Statement, as then amended as of such time, did not or will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary in order to make the statements therein not misleading, (iv) the
Disclosure Package does not, and at the Execution Time and at the Closing Time, will not
contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading and (v) as of the date hereof, as of the date
of any further supplement to the Prospectus and as of the Closing Time, the Prospectus,
as then amended or supplemented as of such time, did not or will not contain any untrue
statement of 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; provided, however, that the Company makes no representations or warranties as
to (i) that part of the Registration Statement which shall constitute the Statement of
Eligibility on Form T-1 under the 1939 Act of the Trustee (the “Form T-1”) or
(ii) the information contained in or omitted from the Registration Statement or the
Prospectus or any amendment thereof or supplement thereto in reliance upon and in
conformity with information furnished in writing to the Company by or on behalf of any
Underwriter through the Representatives specifically for use in the Registration
Statement and the Prospectus.
“Disclosure Package” shall mean (i) the Basic Prospectus, (ii) the Preliminary
Prospectus used most recently prior to the Execution Time, (iii) the Issuer Free Writing
Prospectuses, if any, identified in Schedule C hereto, including the final term sheet as attached
hereto as Schedule B, and (iv) any other Free Writing Prospectus that the parties hereto shall
hereafter expressly agree in writing to treat as part of the Disclosure Package.
“Free Writing Prospectus” shall mean a free writing prospectus, as defined in Rule
405.
“Issuer Free Writing Prospectus” shall mean an issuer free writing prospectus, as
defined in Rule 433.
(iii) Free Writing Prospectuses. At the determination date for purposes of
the Securities within the meaning of Rule 164(h) under the 1933 Act, the Company was not
an “ineligible issuer” as defined in Rule 405 under the 1933 Act. Any Free Writing
Prospectus that the Company is required to file pursuant to Rule 433(d) under the 1933
Act has been, or will be, filed with the Commission in accordance with the requirements
of the 1933 Act and the applicable rules and regulations of the Commission thereunder.
Each Free Writing Prospectus that the Company has filed, or
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is required to file, pursuant to Rule 433(d) under the 1933 Act or that was prepared
by or on behalf of or used or referred to by the Company complies or will comply in all
material respects with the requirements of the 1933 Act and the applicable rules and
regulations of the Commission thereunder and does not and will not include anything that
conflicts with the information contained or incorporated by reference in the Registration
Statement, the Preliminary Prospectus or the Prospectus. Except for the Free Writing
Prospectuses, if any, identified in Schedule C hereto, the Company has not prepared, used
or referred to, and will not, without the Representatives’ prior consent, prepare, use or
refer to, any Free Writing Prospectus.
(iv) Authorization of Agreement. This Agreement has been duly authorized,
executed and delivered by the Company.
(v) Authorization of the Indenture. The Indenture has been duly authorized,
executed and delivered by the Company and duly qualified under the 1939 Act and
constitutes a valid and binding agreement of the Company, enforceable against the Company
in accordance with its terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent
transfers), reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally, general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law) or an implied covenant of
good faith and fair dealing.
(vi) Authorization of the Securities. The Securities have been duly
authorized and, at the Closing Time, will have been duly executed by the Company and,
when authenticated, issued and delivered in the manner provided for in the Indenture and
delivered against payment of the purchase price therefor as provided in this Agreement,
will constitute valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms, except as the enforcement thereof may be limited
by bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent
transfers), reorganization, moratorium or similar laws affecting enforcement of
creditors’ rights generally, general principles of equity (regardless of whether
enforcement is considered in a proceeding in equity or at law) or an implied covenant of
good faith and fair dealing, and will be in the form contemplated by, and entitled to the
benefits of, the Indenture.
(vii) Description of the Securities and the Indenture. The Securities and
the Indenture will conform in all material respects to the respective statements relating
thereto contained in the Disclosure Package and the Prospectus and will be in
substantially the respective forms filed or incorporated by reference, as the case may
be, as exhibits to the Registration Statement.
(viii) Absence of Defaults and Conflicts. The Company is not in violation
of its charter or by-laws or in default in the performance or observance of any
obligation, agreement, covenant or condition contained in any contract, indenture,
mortgage, deed of trust, loan or credit agreement, note, lease or other agreement or
instrument to which the Company is a party or by which it may be bound or to which
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any of the property or assets of the Company is subject (collectively,
“Agreements and Instruments”) except for such defaults as would not have a
material adverse effect on the condition, financial or otherwise, or on the earnings,
business affairs or business prospects of the Company and its consolidated subsidiaries,
if any, considered as one enterprise, whether or not arising in the ordinary course of
business (a “Material Adverse Effect”); and the execution, delivery and
performance of this Agreement and the consummation of the transactions contemplated
herein and in the Registration Statement (including the issuance and sale of the
Securities and the use of the proceeds from the sale of the Securities as described in
the Disclosure Package and the Prospectus under the caption “Use of Proceeds”) and
compliance by the Company with its obligations hereunder have been duly authorized by all
necessary corporate action and do not and will not, whether with or without the giving of
notice or passage of time or both, conflict with or constitute a breach of, or default or
Repayment Event (as defined below) under, or result in the creation or imposition of any
lien, charge or encumbrance upon any property or assets of the Company pursuant to, the
Agreements and Instruments (except for such conflicts, breaches, Repayment Events or
defaults or liens, charges or encumbrances that would not result in a Material Adverse
Effect), nor will such action result in any violation of the provisions of the charter or
by-laws of the Company or any applicable law, statute, rule, regulation, judgment, order,
writ or decree of any government, government instrumentality or court, domestic or
foreign, having jurisdiction over the Company or any of its assets, properties or
operations. As used herein, a “Repayment Event” means any event or condition which gives
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
(through acceleration or otherwise), in each case prior to its stated maturity, of all or
a portion of such indebtedness by the Company.
(ix) Absence of Further Requirements. No filing with, or authorization,
approval, consent, license, order, registration, qualification or decree of, any court or
governmental authority or agency is necessary or required for the performance by the
Company of its obligations hereunder, in connection with the offering, issuance or sale
of the Securities hereunder or the consummation of the transactions contemplated by this
Agreement, except such as have been already obtained or as may be required under the 1933
Act or the rules and regulations of the Commission thereunder (the “1933 Act
Regulations”) or state securities laws.
(x) Investment Company Act. The Company is not, and upon the issuance and
sale of the Securities as herein contemplated and the application of the net proceeds
therefrom as described in the Disclosure Package and the Prospectus will not be, an
“investment company” or an entity “controlled” by an “investment company” as such terms
are defined in the Investment Company Act of 1940, as amended (the “1940 Act”).
(xi) Independent Public Accountants. The registered public accounting firm
that certified the audited financial statements of the Company included in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2007, which are incorporated
by reference in the Registration Statement, Disclosure Package
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and Prospectus, is an independent registered public accounting firm as required by
the 1933 Act and the 1933 Act Regulations.
(xii) State Regulatory Approvals. The Company has obtained all requisite
approvals of the Public Service Commission of Wisconsin (the “PSCW”) and the
Michigan Public Service Commission (the “MPSC”), if any, for the issuance and
sale by the Company of the Securities to the Underwriters under this Agreement.
(b) Officer’s Certificates. Any certificate signed by any officer of the Company
delivered to the Representatives or to counsel for the Underwriters shall be deemed a
representation and warranty by the Company to each Underwriter as to the matters covered thereby.
SECTION 2. Sale and Delivery to Underwriters; Closing.
(a) Securities. On the basis of the representations and warranties herein contained
and subject to the terms and conditions herein set forth, the Company agrees to sell to each
Underwriter, severally and not jointly, and each Underwriter, severally and not jointly, agrees to
purchase from the Company, at a price equal to 99.206% of the principal amount thereof, the
aggregate principal amount of Securities set forth in Schedule A opposite the name of such
Underwriter, plus any additional amount of Securities which such Underwriter may become obligated
to purchase pursuant to the provisions of Section 10 hereof.
(b) Payment. Payment of the purchase price for, and delivery of certificates
representing, the Securities shall be made at the Company’s principal business office, 000 Xxxx
Xxxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxxxx 00000, or at such other place as shall be agreed upon by the
Representatives and the Company at 8:00 A.M. (Central Time) (unless postponed in accordance with
the provisions of Section 10), or such other time not later than ten business days after such date
as shall be agreed upon by the Representatives and the Company (such time and date of payment and
delivery being herein called “Closing Time”).
Payment shall be made to the Company by wire transfer of immediately available or next day
funds as set forth in Schedule A to a bank account(s) designated by the Company against delivery
(to or for the account of the Representatives for the respective accounts of the Underwriters) of
certificates representing the Securities to be purchased by them. It is understood that each
Underwriter has authorized the Representatives, for its account, to accept delivery of, receipt
for, and make payment of the purchase price for, the Securities which it has agreed to purchase.
(c) Denominations; Registration. Certificates representing the Securities shall be in
such principal amounts and registered in such names as the Representatives may request in writing
at least one full business day before the Closing Time. The certificates representing the
Securities will be made available for examination by the Representatives not later than 10:00 A.M.
(Central Time) on the business day prior to the Closing Time.
(d) Free Writing Prospectuses. Each Underwriter, severally and not jointly, agrees
that, except for the information contained in the Free Writing Prospectuses identified in Schedule
C hereto, including the final term sheet attached hereto as Schedule B, or any free
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writing prospectus that is not required to be filed by the Company pursuant to Rule 433 under
the 1933 Act, such Underwriter has not prepared, used or referred to, and will not, without the
Company’s prior consent, prepare, use or refer to, any Free Writing Prospectus.
SECTION 3. Covenants of the Company. The Company covenants with each Underwriter as
follows:
(a) Compliance with Securities Regulations and Commission Requests. The Company,
subject to Section 3(c), will prepare the Prospectus in a form approved by the Representatives and
file such Prospectus pursuant to Rule 424(b) within the time prescribed under Rule 424(b) (or Rule
430A, as the case may be) and will notify the Representatives immediately, and confirm the notice
in writing, (i) when any post-effective amendment to the Registration Statement shall become
effective, or any supplement to the Prospectus or any amended Prospectus shall have been filed,
(ii) of the receipt of any comments from the Commission, (iii) of any request by the Commission for
any amendment to the Registration Statement or any amendment or supplement to the Prospectus or for
additional information, and (iv) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or any notice objecting to its use that has been
received by the Company or of any order preventing or suspending the use of any preliminary
prospectus, or of the suspension of the qualification of the Securities for offering or sale in any
jurisdiction, or of the initiation or threatening of any proceedings for any of such purposes or
pursuant to Section 8A of the 1933 Act against the Company or related to the offering. The Company
will promptly effect the filings necessary pursuant to Rule 424(b) (or Rule 430A, as the case may
be) and will take such steps as it deems necessary to ascertain promptly whether the form of
prospectus transmitted for filing under Rule 424(b) (or Rule 430A, as the case may be) was received
for filing by the Commission and, in the event that it was not, it will promptly file such
prospectus. The Company will make every reasonable effort to prevent the issuance of any stop
order and, if any stop order is issued or any notice objecting to the use of the Registration
Statement is issued, to obtain the lifting thereof at the earliest possible moment. The Company
will prepare a final term sheet, substantially in the form of Schedule B hereto and approved by the
Representatives, and will file such pricing term sheet pursuant to Rule 433(d) under the 1933 Act
within the time period prescribed by such Rule.
(b) Disclosure Package. If, at any time prior to the filing of the Prospectus
pursuant to Rule 424(b), any event occurs as a result of which the Disclosure Package would 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 or the
circumstances then prevailing not misleading, the Company will (i) notify promptly the
Representatives so that any use of the Disclosure Package may cease until it is amended or
supplemented; (ii) amend or supplement the Disclosure Package to correct such statement or
omission; and (iii) supply any amendment or supplement to you in such quantities as the
Representatives may reasonably request.
(c) Filing of Amendments. At any time when a prospectus is required to be delivered
in connection with sales of Securities under the 1933 Act (including in circumstances where such
requirement may be satisfied pursuant to Rule 172), the Company will give the Representatives
notice of its intention to file or prepare any amendment to the Registration
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Statement or any amendment, supplement or revision to the Prospectus, whether pursuant to the
1933 Act, the 1934 Act or otherwise, will furnish the Representatives with copies of any such
documents a reasonable amount of time prior to such proposed filing or use, as the case may be, and
will not file or use any such document to which the Representatives or counsel for the Underwriters
shall reasonably object.
(d) Delivery of Registration Statements. The Company has furnished or will deliver to
the Representatives and counsel for the Underwriters, without charge, two reproduced copies of an
original signed copy of the Registration Statement as originally filed and of each amendment
thereto (including exhibits filed therewith or incorporated by reference therein and documents
incorporated or deemed to be incorporated by reference therein) and one reproduced copy of an
original signed copy of all consents and certificates of experts, and will also deliver to the
Representatives, without charge, a conformed copy of the Registration Statement as originally filed
and of each amendment thereto (without exhibits) for each of the Underwriters. The copies of the
Registration Statement and each amendment thereto furnished to the Representatives will be
identical to the electronically transmitted copies thereof filed with the Commission pursuant to
its Electronic Data Gathering, Analysis and Retrieval System (“XXXXX”) except to the extent
permitted by Regulation S-T under the 1933 Act.
(e) Delivery of Prospectuses. The Company has delivered to each Underwriter, without
charge, as many copies of any Preliminary Prospectus relating to the Securities as such Underwriter
reasonably requested, and the Company hereby consents to the use of such copies for purposes
permitted by the 1933 Act. The Company will furnish to each Underwriter, without charge, during
the period when the Prospectus is required to be delivered under the 1933 Act (including in
circumstances where such requirement may be satisfied pursuant to Rule 172), such number of copies
of the Prospectus (as amended or supplemented) as such Underwriter may reasonably request. The
Prospectus and any amendments or supplements thereto furnished to the Underwriters will be
identical to the electronically transmitted copies thereof filed with the Commission pursuant to
XXXXX, except to the extent permitted by Regulation S-T under the 1933 Act.
(f) Continued Compliance with Securities Laws. The Company will comply with the 1933
Act and the 1933 Act Regulations and the 1934 Act and the rules and regulations of the Commission
thereunder (the “1934 Act Regulations”) so as to permit the completion of the distribution of the
Securities as contemplated in this Agreement and in the Prospectus. If at any time when a
prospectus is required by the 1933 Act to be delivered in connection with sales of the Securities
(including in circumstances where such requirement may be satisfied pursuant to Rule 172), any
event shall occur or condition shall exist as a result of which it is necessary, in the reasonable
opinion of counsel for the Underwriters or for the Company, to amend the Registration Statement or
amend or supplement the Prospectus in order that the Prospectus will not include any untrue
statement of a material fact or omit to state a material fact necessary in order to make the
statements therein not misleading in the light of the circumstances existing at the time it is
delivered to a purchaser, or if it shall be necessary, in the reasonable opinion of such counsel,
at any such time to amend the Registration Statement or amend or supplement the Prospectus in order
to comply with the requirements of the 1933 Act or the 1933 Act Regulations, the Company will
promptly prepare and file with the Commission, subject to Section 3(c), such amendment or
supplement as may be necessary to correct such statement or
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omission or to make the Registration Statement or the Prospectus comply with such
requirements, and the Company will furnish to the Underwriters such number of copies of such
amendment or supplement as the Underwriters may reasonably request.
(g) Blue Sky Qualifications. The Company will use its reasonable best efforts, in
cooperation with the Underwriters, to qualify the Securities for offering and sale under the
applicable securities laws of such states and other jurisdictions (domestic or foreign) as the
Representatives may reasonably designate and to maintain such qualifications in effect for a period
of not less than one year from the date of this Agreement; provided, however, that the Company
shall not be obligated to file any general consent to service of process or to qualify as a foreign
corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to
subject itself to taxation in respect of doing business in any jurisdiction in which it is not
otherwise so subject. In each jurisdiction in which the Securities have been so qualified, the
Company will file such statements and reports as may be required by the laws of such jurisdiction
to continue such qualification in effect for a period of not less than one year from the date of
this Agreement.
(h) Rule 158. The Company will timely file such reports pursuant to the 1934 Act as
are necessary in order to make generally available to its securityholders as soon as practicable an
earnings statement for the purposes of, and to provide the benefits contemplated by, the last
paragraph of Section 11(a) of the 1933 Act.
(i) Use of Proceeds. The Company will use the net proceeds received by it from the
sale of the Securities in the manner specified in the Prospectus under “Use of Proceeds.”
(j) Restriction on Sale of Securities. Until the business day following the Closing
Time, the Company will not, without the prior written consent of the Representatives, sell or
contract to sell or announce the offering of, any debt securities of the Company with
characteristics and terms similar to those of the Securities.
(k) Reporting Requirements. The Company, during the period when the Prospectus is
required to be delivered under the 1933 Act, will file all documents required to be filed with the
Commission pursuant to the 1934 Act within the time periods required by the 1934 Act and the 1934
Act Regulations.
SECTION 4. Payment of Expenses.
(a) Expenses. The Company will pay or cause to be paid all expenses incident to the
performance of its obligations under this Agreement, including (i) the preparation, printing and
filing of the Registration Statement (including financial statements and exhibits and the Form T-1)
as originally filed and of each amendment thereto, (ii) the preparation, printing, reproduction and
delivery to the Underwriters of this Agreement, any Agreement among Underwriters, the Indenture and
such other documents as may be required in connection with the offering, purchase, sale, issuance
or delivery of the Securities, (iii) the preparation, issuance and delivery of the certificates
representing the Securities to the Underwriters, including any transfer taxes and any stamp or
other duties payable upon the sale, issuance or delivery of the Securities
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to the Underwriters, (iv) the fees and disbursements of the Company’s counsel, other advisors
and registered public accountants, (v) the qualification of the Securities under securities laws in
accordance with the provisions of Section 3(g) hereof, including filing fees and the reasonable
fees and disbursements of counsel for the Underwriters in connection therewith and in connection
with the preparation, reproduction and delivery to the Underwriters of any blue sky or legal
investment survey (provided that such fees and disbursements shall not exceed $3,000), (vi) the
printing and delivery to the Underwriters of copies of each Preliminary Prospectus, each Issuer
Free Writing Prospectus and of the Prospectus and any amendments or supplements thereto, (vii) the
fees and expenses of the Trustee, including the fees and disbursements of counsel for the Trustee
in connection with the Indenture and the Securities, (viii) any fees payable in connection with the
rating of the Securities and (ix) the fees and expenses incurred in connection with the listing, if
applicable, of the Securities on any such exchange or exchanges as are listed on Schedule B hereto.
(b) Termination of Agreement. If this Agreement is terminated by the Representatives
in accordance with the provisions of Section 5 or Section 9(a)(i) hereof, the Company shall
reimburse the Underwriters for all of their out-of-pocket expenses, including the reasonable fees
and disbursements of counsel for the Underwriters.
SECTION 5. Conditions of Underwriters’ Obligations. The obligations of the several
Underwriters hereunder are subject to the accuracy of the representations and warranties of the
Company contained in Section 1(a) hereof or in certificates of any officer of the Company delivered
pursuant to the provisions hereof, to the performance by the Company of its covenants and other
obligations hereunder, and to the following further conditions:
(a) Effectiveness of Registration Statement. The Prospectus shall have been filed
with the Commission pursuant to Rule 424(b) within the applicable time period prescribed for such
filing by the 1933 Act Regulations and in accordance with Section 3(a) hereof; and no stop order
suspending the effectiveness of the Registration Statement or any part thereof shall have been
issued and no proceeding for that purpose or pursuant to Section 8A of the 1933 Act against the
Company or related to the offering shall have been initiated or threatened by the Commission. The
pricing term sheet contemplated by Section 3(a) hereto, and any other material required to be filed
by the Company pursuant to Rule 433(d) under the 1933 Act, shall have been filed by the Company
with the Commission within the applicable time period prescribed for such filing by Rule 433 under
the 1933 Act.
(b) Opinion of Counsel for Company. At Closing Time, the Representatives shall have
received the favorable opinion, dated as of Closing Time, of (i) Xxxxxxxx Xxxxxxx LLP, counsel for
the Company, to the effect set forth in Exhibit A-1 hereto and (ii) Xxxxx X. Xxxxxxx, Esq., or
Xxxxxx X. Xxxxxxxx, Esq., counsel for the Company, to the effect set forth in Exhibit A-2 hereto,
each in form and substance satisfactory to the Representatives and to counsel for the Underwriters,
together with signed or reproduced copies of such letter for each of the other Underwriters and
addressed to the Underwriters and to such further effect as the Representatives and counsel to the
Underwriters may reasonably request. In giving such opinion, Xxxxxxxx Xxxxxxx LLP may rely, as to
all matters governed by the laws of jurisdictions other than the law of the State of New York and
the federal law of the United States, upon the opinions of counsel satisfactory to the
Representatives. In giving such opinion, Xxxxx X. Xxxxxxx
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or Xxxxxx X. Xxxxxxxx may rely, as to all matters governed by the laws of jurisdictions other
than the law of the State of Wisconsin and the federal law of the United States, upon the opinions
of counsel satisfactory to the Representatives. Such counsel may also state that, insofar as such
opinion involves factual matters, they have relied, to the extent they deem proper, upon
certificates of officers of the Company, the Trustee and public officials. Such counsel may also
state that, insofar as such opinion involves matters of Michigan law relating to the authority to
do business and the regulatory approval for the Securities in Michigan, they have relied upon the
opinion of Miller, Canfield, Paddock and Stone, P.L.C., Michigan counsel to the Company.
(c) Opinion of Michigan Counsel for Company. At Closing Time, the Representatives
shall have received the favorable opinion, dated as of Closing Time, of Miller, Canfield, Paddock
and Stone, P.L.C., Michigan counsel for the Company, to the effect set forth in Exhibit A-3 hereto,
in form and substance satisfactory to the Representatives and to counsel for the Underwriters,
together with signed or reproduced copies of such letter for each of the other Underwriters and
addressed to the Underwriters and to such further effect as the Representatives and counsel to the
Underwriters may reasonably request.
(d) Opinion of Counsel for Underwriters. At Closing Time, the Representatives shall
have received the favorable opinion, dated as of Closing Time, of Xxxxx & XxXxxxx LLP, the counsel
for the Underwriters, together with signed or reproduced copies of such letter for each of the
other Underwriters and addressed to the Underwriters with respect to such matters as the
Representatives may reasonably request. In giving such opinion such counsel may rely, as to all
matters governed by the laws of jurisdictions other than the law of the State of New York and the
federal law of the United States, upon the opinions of counsel for the Company, including such
counsel referred to above in Sections 5(b) and 5(c) hereof, or other counsel satisfactory to the
Representatives. Such counsel may also state that, insofar as such opinion involves factual
matters, they have relied, to the extent they deem proper, upon certificates of officers of the
Company, and certificates of the Trustee and public officials.
In addition, such counsel shall state that they have participated in conferences with officers
and other representatives of the Company, representatives of the Underwriters and representatives
of the independent public accountants for the Company at which conferences the contents of the
Prospectus, the Registration Statement and the Disclosure Package and related matters were
discussed, and that given the limitations inherent in the role of outside counsel and the character
of determinations involved in the preparation of such documents, such counsel are not passing upon
and do not assume any responsibility for the accuracy, completeness or fairness of the statements
contained in the Registration Statement, the Disclosure Package or the Prospectus and have made no
independent check or verification thereof (except as otherwise indicated in such letter). Such
counsel shall further state that, on the basis of the foregoing, no facts have come to their
attention that lead them to believe that the Registration Statement, as of the date of the
Underwriting Agreement, or any subsequent amendment thereto, at the time such amendment became
effective, contained an untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not misleading, that the
Prospectus, as of its date or as of the Closing Time, contained or contains an untrue statement of
a material fact or omitted or omits to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading or
the Disclosure Package, taken together as a whole, as of the Execution Time,
- 11 -
contained an untrue statement of a material fact or omitted to state a material fact necessary
in order to make the statements therein, in the light of the circumstances under which they were
made, not misleading (it being understood that such counsel express no comment with respect to the
Form T-1 or the financial statements, including the notes thereto, or any other financial or
statistical data set forth or referred to in the Registration Statement, the Prospectus or the
Disclosure Package).
(e) Officers’ Certificate. At Closing Time, there shall not have been, since the date
hereof or since the respective dates as of which information is given in the Prospectus or the
Disclosure Package, any material adverse change in the condition, financial or otherwise, or in the
earnings, business affairs or business prospects of the Company and its consolidated subsidiary,
considered as one enterprise, whether or not arising in the ordinary course of business, from that
set forth in the Prospectus and the Disclosure Package (a “Material Adverse Change”), and
the Representatives shall have received a certificate of the President or a Vice President of the
Company and of the chief financial officer, chief accounting officer or treasurer of the Company,
dated as of Closing Time, to the effect that (i) there has been no such Material Adverse Change,
(ii) the representations and warranties in Section 1(a) hereof are true and correct in all material
respects, with the same force and effect as though expressly made at and as of Closing Time, (iii)
the Company has complied with all agreements and satisfied all conditions on its part to be
performed or satisfied at or prior to Closing Time, and (iv) no stop order suspending the
effectiveness of the Registration Statement has been issued and no proceedings for that purpose or
pursuant to Section 8A of the 1933 Act against the Company or related to the offering have been
instituted or are pending or are, to the knowledge of such officers, contemplated by the
Commission.
(f) Accountant’s Comfort Letter. At the Execution Time, the Representatives shall
have received letter(s) dated such date from the Company’s independent public accountants for the
periods covered by their respective reports included or incorporated by reference in the
Registration Statement, the Preliminary Prospectus and the Prospectus (and the applicable interim
periods), in form and substance satisfactory to the Representatives and to counsel for the
Underwriters together with signed or reproduced copies of such letters for each of the other
Underwriters and addressed to the Underwriters containing statements and information of the type
ordinarily included in accountants’ “comfort letters” to underwriters with respect to the financial
statements and certain financial information contained in the Registration Statement, the
Preliminary Prospectus and the Prospectus.
(g) Bring-down Comfort Letter. At Closing Time, the Representatives shall have
received from the Company’s independent public accountants referred to in subsection (f) of this
Section, letters dated as of the Closing Time, together with signed or reproduced copies of such
letters for each of the other Underwriters and addressed to the Underwriters, to the effect that
they reaffirm the statements made in the letter furnished pursuant to subsection (f) of this
Section, except that the specified date referred to shall be a date not more than three business
days prior to Closing Time.
(h) Maintenance of Rating. At Closing Time, the Securities shall be rated by each of
Xxxxx’x Investors Service Inc. and Standard & Poor’s Ratings Services, a division of XxXxxx-Xxxx,
Inc., as set forth in Schedule B hereto. Since the Execution Time, there (i) shall
- 12 -
not have occurred a downgrading in the rating assigned to the Securities or any of the
Company’s other debt securities by any “nationally recognized statistical rating agency,” as that
term is defined by the Commission for purposes of Rule 436(g)(2) under the 1933 Act, and (ii) no
such organization shall have publicly announced that it has under surveillance or review, with
possible negative implications, its rating of the Securities or any of the Company’s other debt
securities.
(i) Additional Documents. At Closing Time, counsel for the Underwriters shall have
been furnished with such documents and opinions as they reasonably may require for the purpose of
enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in
order to evidence the accuracy of any of the representations or warranties, or the fulfillment of
any of the conditions, herein contained; and all proceedings taken by the Company in connection
with the issuance and sale of the Securities as herein contemplated shall be satisfactory in form
and substance to the Representatives and counsel for the Underwriters.
(j) Termination of Agreement. If any condition specified in this Section shall not
have been fulfilled when and as required to be fulfilled, this Agreement may be terminated by the
Representatives by notice to the Company at any time at or prior to Closing Time and such
termination shall be without liability of any party to any other party except as provided in
Section 4 and except that Sections 6 and 7 shall survive any such termination and remain in full
force and effect.
SECTION 6. Indemnification.
(a) Indemnification of Underwriters. The Company agrees to indemnify and hold
harmless each Underwriter and each person, if any, who controls any Underwriter within the meaning
of Section 15 of the 1933 Act or Section 20 of the 1934 Act as follows:
(i) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, arising out of any untrue statement or alleged untrue statement of a material
fact contained in the Registration Statement (or any amendment thereto), or the omission
or alleged omission therefrom of a material fact required to be stated therein or
necessary to make the statements therein not misleading or arising out of any untrue
statement or alleged untrue statement of a material fact included in any Preliminary
Prospectus, the Disclosure Package, the Prospectus or any Issuer Free Writing Prospectus
(or any amendment or supplement thereto), or the omission or alleged omission therefrom
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;
(ii) against any and all loss, liability, claim, damage and expense whatsoever, as
incurred, to the extent of the aggregate amount paid in settlement of any litigation, or
any investigation or proceeding by any governmental agency or body, commenced or
threatened, or of any claim whatsoever based upon any such untrue statement or omission;
provided that (subject to Section 6(d) below) any such settlement is effected with the
written consent of the Company; and
- 13 -
(iii) against any and all expense whatsoever, as incurred (including the reasonable
fees and disbursements of counsel chosen by the Representatives), reasonably incurred in
investigating, preparing or defending against any litigation, or any investigation or
proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue statement or omission, to the extent that any such
expense is not paid under (i) or (ii) above;
provided, however, that this indemnity agreement shall not apply to any loss, liability, claim,
damage or expense to the extent arising out of any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with written information furnished to
the Company by any Underwriter through the Representatives expressly for use in the Registration
Statement (or any amendment thereto) or any Preliminary Prospectus, the Prospectus or any Issuer
Free Writing Prospectus (or any amendment or supplement thereto); and provided, further,
that the indemnity agreement in this paragraph (a) with respect to the Preliminary Prospectus and
other information included in the Disclosure Package shall not inure to the benefit of any
Underwriter from whom the person asserting any such losses, claims, damages or other liabilities
purchased Securities, or any person controlling such Underwriter, to the extent that (i) prior to
the Execution Time the Company shall have notified such Underwriter that the Preliminary Prospectus
or other information included in the Disclosure Package contains an untrue statement of material
fact or omits to state therein a material fact required to be stated therein in order to make the
statements therein not misleading, (ii) such untrue statement or omission of a material fact was
corrected in an amended or supplemented Preliminary Prospectus or, where permitted by law, an
Issuer Free Writing Prospectus and such corrected Preliminary Prospectus or Issuer Free Writing
Prospectus was provided to such Underwriter and filed with the Commission far enough in advance of
the Execution Time so that such corrected Preliminary Prospectus or Issuer Free Writing Prospectus
could have been conveyed to such person prior to the Execution Time, (iii) such corrected
Preliminary Prospectus or Issuer Free Writing Prospectus (excluding any document then incorporated
or deemed incorporated therein by reference) was not conveyed to such person at or prior to the
Execution Time, and (iv) such loss, claim, damage or liability would not have occurred had the
corrected Preliminary Prospectus or Issuer Free Writing Prospectus (excluding any document then
incorporated or deemed incorporated therein by reference) been conveyed to such person prior to the
Execution Time. This indemnity agreement will be in addition to any liability which the Company
may otherwise have.
(b) Indemnification of Company, Directors and Officers. Each Underwriter severally
and not jointly agrees to indemnify and hold harmless the Company, its directors, each of its
officers who signed the Registration Statement, and each person, if any, who controls the Company
within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all
loss, liability, claim, damage and expense described in the indemnity contained in subsection (a)
of this Section, as incurred, but only with respect to untrue statements or omissions, or alleged
untrue statements or omissions, made in the Registration Statement, or any amendment thereto, or
any Preliminary Prospectus, the Disclosure Package, the Prospectus or any Issuer Free Writing
Prospectus (or any amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company by such Underwriter through the Representatives expressly for
use in the Registration Statement (or any amendment
- 14 -
thereto) or such Preliminary Prospectus, the Disclosure Package, the Prospectus or any Issuer
Free Writing Prospectus (or any amendment or supplement thereto).
(c) Actions Against Parties; Notification. Promptly after receipt by an indemnified
party under this Section 6 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 this Section
6, notify the indemnifying party in writing within a reasonable period of time of the commencement
thereof; but the omission so to notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party otherwise than under this Section 6. 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 elect by written notice delivered to the indemnified party promptly after
receiving the aforesaid notice from such indemnified party, to assume the defense thereof, with
counsel satisfactory to such indemnified party; provided, however, that if the defendants
(including impleaded parties) in any such action include both the indemnified party and the
indemnifying party and the indemnified party shall have reasonably concluded that there may be
legal defenses available to it which are different from or additional to those available to the
indemnifying party, the indemnified party or parties shall have the right to select separate
counsel to assert such legal defenses and to otherwise participate in the defense of such action on
behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to
such indemnified party of its election so to assume the defense of such action and approval by the
indemnified party of counsel, the indemnifying party will not be liable to such indemnified party
under this Section 6 for any legal or other expenses subsequently incurred by such indemnified
party in connection with the defense thereof unless (i) the indemnified party shall have employed
separate counsel in connection with the assertion of legal defenses in accordance with the proviso
to the next preceding sentence (it being understood, however, that the indemnifying party shall not
be liable for the expenses of more than one separate counsel (in addition to local counsel)
representing the indemnified parties), (ii) the indemnifying party shall not have employed counsel
satisfactory to the indemnified party to represent the indemnified party within a reasonable time
after notice of commencement of the action or (iii) the indemnifying party has authorized the
employment of counsel for the indemnified party at the expense of the indemnifying party.
(d) Settlement Without Consent if Failure to Reimburse. If at any time an indemnified
party shall have requested an indemnifying party to reimburse the indemnified party for fees and
expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement of
the nature contemplated by Section 6(a)(ii) effected without its written consent if (i) such
settlement is entered into more than 45 days after receipt by such indemnifying party of the
aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such
settlement at least 30 days prior to such settlement being entered into and (iii) such indemnifying
party shall not have reimbursed such indemnified party in accordance with such request prior to the
date of such settlement.
SECTION 7. Contribution. If the indemnification provided for in Section 6 hereof is
for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of
any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying
party shall contribute to the aggregate amount of such losses, liabilities, claims,
- 15 -
damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company on the one hand and the
Underwriters on the other hand from the offering of the Securities pursuant to this Agreement or
(ii) if the allocation provided by clause (i) 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 on the one hand and of the Underwriters on the
other hand in connection with the statements or omissions which resulted in such losses,
liabilities, claims, damages or expenses, as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and the Underwriters on the
other hand in connection with the offering of the Securities pursuant to this Agreement shall be
deemed to be in the same respective proportions as the total net proceeds from the offering of the
Securities pursuant to this Agreement (before deducting expenses) received by the Company and the
total underwriting discount received by the Underwriters, in each case as set forth on the cover of
the Prospectus, bear to the aggregate initial public offering price of the Securities as set forth
on such cover.
The relative fault of the Company on the one hand and the Underwriters on the other hand shall
be determined by reference to, among other things, whether any such untrue or alleged untrue
statement of a material fact or omission or alleged omission to state a material fact relates to
information supplied by the Company or by an Underwriter in writing through the Representatives and
the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.
The Company and the Underwriters agree that it would not be just and equitable if contribution
pursuant to this Section 7 were determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Section 7. The aggregate amount
of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred
to above in this Section 7 shall be deemed to include any legal or other expenses reasonably
incurred by such indemnified party in investigating, preparing or defending against any litigation,
or any investigation or proceeding by any governmental agency or body, commenced or threatened, or
any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged
omission.
Notwithstanding the provisions of this Section 7, no Underwriter shall be required to
contribute any amount in excess of the amount by which the total price at which the Securities
underwritten by it and distributed to the public were offered to the public exceeds the amount of
any damages which such Underwriter has otherwise been required to pay by reason of any such untrue
or alleged untrue statement or omission or alleged omission.
No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
0000 Xxx) shall be entitled to contribution from any person who was not guilty of such fraudulent
misrepresentation.
For purposes of this Section 7, each person, if any, who controls an Underwriter within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall have the
- 16 -
same rights to contribution as such Underwriter, and each director of the Company, each
officer of the Company who signed the Registration Statement, and each person, if any, who controls
the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act shall
have the same rights to contribution as the Company. The Underwriters’ respective obligations to
contribute pursuant to this Section 7 are several in proportion to the principal amount of
Securities set forth opposite their respective names in Schedule A hereto and not joint.
SECTION 8. Representations, Warranties and Agreements to Survive Delivery. All
representations, warranties and agreements contained in this Agreement or in certificates of
officers of the Company submitted pursuant hereto shall remain operative and in full force and
effect, regardless of any investigation made by or on behalf of any Underwriter or controlling
person, or by or on behalf of the Company, and shall survive delivery of the Securities to the
Underwriters.
SECTION 9. Termination of Agreement.
(a) Termination; General. The Representatives may terminate this Agreement, by notice
to the Company, at any time at or prior to Closing Time (i) if there has been any Material Adverse
Change, or (ii) if there has occurred any material adverse change in the financial markets in the
United States or the international financial markets, any outbreak of hostilities or escalation
thereof or other calamity or crisis (including any terrorist activity), the effect of which is such
as to make it, in the judgment of the Representatives, impracticable to market the Securities or to
enforce contracts for the sale of the Securities, or (iii) if trading in any securities of the
Company has been suspended or materially limited by the Commission or the New York Stock Exchange,
or if trading generally on the American Stock Exchange or the New York Stock Exchange or in the
Nasdaq National Market has been suspended or materially limited (other than to provide for an
orderly market), or minimum or maximum prices for trading have been fixed, or maximum ranges for
prices have been required, by any of said exchanges or by such system or by order of the
Commission, the Financial Industry Regulatory Authority, Inc. or any other governmental authority,
or (iv) if a banking moratorium has been declared by either Federal or New York authorities or a
material disruption in commercial banking or securities settlement or clearance services shall have
occurred.
(b) Liabilities. If this Agreement is terminated pursuant to this Section, such
termination shall be without liability of any party to any other party except as provided in
Section 4 hereof; and provided further that Sections 6 and 7 shall survive such termination and
remain in full force and effect.
SECTION 10. Default by One or More of the Underwriters. If one or more of the
Underwriters shall fail at Closing Time to purchase the Securities which it or they are obligated
to purchase under this Agreement (the “Defaulted Securities”), the Representatives shall
have the right, within 24 hours thereafter, to make arrangements for one or more of the
non-defaulting Underwriters, or any other underwriters reasonably acceptable to the Company, to
purchase all, but not less than all, of the Defaulted Securities in such principal amounts as may
be agreed upon and upon the terms herein set forth; if, however, the Representatives shall not have
completed such arrangements within such 24-hour period, then:
- 17 -
(a) if the aggregate principal amount of the Defaulted Securities does not exceed 10% of the
aggregate principal amount of the Securities to be purchased on such date, each of the
non-defaulting Underwriters shall be obligated, severally and not jointly, to purchase the full
amount thereof in the proportion that its respective underwriting obligation hereunder bears to the
underwriting obligations of all non-defaulting Underwriters, or
(b) if the aggregate principal amount of the Defaulted Securities exceeds 10% of the aggregate
principal amount of the Securities to be purchased on such date, this Agreement shall terminate
without liability on the part of any non-defaulting Underwriter.
No action taken pursuant to this Section shall relieve any defaulting Underwriter from
liability in respect of its default.
In the event of any such default which does not result in a termination of this Agreement
either (i) the Representatives or (ii) the Company shall have the right to postpone Closing Time
for a period not exceeding seven days in order to effect any required changes in the Registration
Statement or Prospectus or in any other documents or arrangements. As used in this Agreement, the
term “Underwriter” includes any person substituted for an Underwriter under this Section 10.
SECTION 11. Notices. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Underwriters shall be directed to the Representatives at
Citigroup Global Markets Inc., 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: General
Counsel and Wachovia Capital Markets, LLC, One Wachovia Center, 000 Xxxxx Xxxxxxx Xxxxxx,
Xxxxxxxxx, Xxxxx Xxxxxxxx 00000, Attention: Transaction Management Department, Facsimile:
000-000-0000; notices to the Company shall be directed to it at 000 Xxxx Xxxxxxxx Xxxxxx, X.X. Xxx
0000, Xxxxxxxxx, Xxxxxxxxx 00000, attention of Treasurer.
SECTION 12. Parties. This Agreement shall inure to the benefit of and be binding upon
the Underwriters, the Company and their respective successors. Nothing expressed or mentioned in
this Agreement is intended or shall be construed to give any person, firm or corporation, other
than the Underwriters, the Company and their respective successors and the controlling persons and
officers and directors referred to in Sections 6 and 7 and their heirs and legal representatives,
any legal or equitable right, remedy or claim under or in respect of this Agreement or any
provision herein contained. This Agreement and all conditions and provisions hereof are intended
to be for the sole and exclusive benefit of the Underwriters, the Company and their respective
successors, and said controlling persons and officers and directors and their heirs and legal
representatives, and for the benefit of no other person, firm or corporation. No purchaser of
Securities from any Underwriter shall be deemed to be a successor by reason merely of such
purchase.
SECTION 13. Governing Law and Time. This agreement shall be governed by and construed
in accordance with the laws of the State of New York. Except as otherwise set forth herein,
specified times of day refer to New York City time.
- 18 -
SECTION 14. Effect of Headings. The Section headings herein are for convenience only
and shall not affect the construction hereof.
SECTION 15. Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which together shall constitute one and the
same instrument.
SECTION 16. Nature of Underwriters’ Obligations. The Company acknowledges that in
connection with the offering of the Securities: (a) the Underwriters have acted at arms length, are
not agents of, and owe no fiduciary duties to, the Company or any other person, (b) the
Underwriters owe the Company only those duties and obligations set forth in this Agreement and (c)
the Underwriters may have interests that differ from those of the Company. The Company waives to
the full extent permitted by applicable law any claims it may have against the Underwriters arising
from an alleged breach of fiduciary duty in connection with the offering of the Securities.
- 19 -
If the foregoing is in accordance with your understanding of our agreement, please sign and
return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall
represent a binding agreement between the Company and the Underwriters.
| Very truly yours, | ||||||||
| WISCONSIN ELECTRIC POWER COMPANY | ||||||||
| By: Name: |
/s/ Xxxxxxx Xxxx
|
|||||||
| Title: | Vice President and Treasurer | |||||||
| The foregoing Agreement is hereby | ||||||||
| confirmed and accepted as of the date | ||||||||
| specified in Schedule B. | ||||||||
| CITIGROUP GLOBAL MARKETS INC. | ||||||||
By:
|
/s/ Xxxxx X. Xxxxxxxxx | |||||||
Name:
|
Xxxxx X. Xxxxxxxxx | |||||||
Title:
|
Managing Director | |||||||
| WACHOVIA CAPITAL MARKETS, LLC | ||||||||
By:
|
/s/ Xxxx Xxxxxxxx | |||||||
Name:
|
Xxxx Xxxxxxxx | |||||||
Title:
|
Director | |||||||
For themselves and the other
Underwriters named in Schedule A
to the foregoing Agreement.
Underwriters named in Schedule A
to the foregoing Agreement.
SCHEDULE A
Debt Securities
| Aggregate Principal | ||||
| Underwriter | Amount of Securities | |||
Citigroup Global Markets Inc. |
$ | 125,000,000 | ||
Wachovia Capital Markets, LLC |
125,000,000 | |||
SunTrust Xxxxxxxx Xxxxxxxx, Inc. |
25,000,000 | |||
Xxxxx Fargo Securities, LLC |
25,000,000 | |||
Total |
$ | 300,000,000 | ||
Representatives: Citigroup Global Markets Inc. and Wachovia Capital Markets, LLC
Proceeds to issuer (before offering expenses): $297,618,000
Sch. A-1
SCHEDULE B
Pricing Term Sheet
Filed Pursuant to Rule 433(d)
Registration Statement No. 333-145083
September 25, 2008
Filed Pursuant to Rule 433(d)
Registration Statement No. 333-145083
September 25, 2008
Issuer:
|
Wisconsin Electric Power Company | |
Security:
|
6.00% Debentures due April 1, 2014 | |
Principal Amount:
|
$300,000,000 | |
Maturity:
|
April 1, 2014 | |
Coupon:
|
6.00% | |
Initial Price to Public:
|
99.806% per Debenture | |
Yield to Maturity:
|
6.042% | |
Spread to Benchmark Treasury:
|
+300 bp | |
Benchmark Treasury:
|
3.125% due August 31, 2013 | |
Benchmark Treasury Yield:
|
3.042% | |
Interest Payment Dates:
|
April 1 and October 1, commencing April 1, 2009 | |
Redemption Provisions:
|
The debentures will be redeemable as a whole at any time, or in part from time to time, at our option, at a redemption price equal to the greater of (a) 100% of the principal amount of the debentures being redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 45 basis points, plus accrued interest to the redemption date. | |
Expected Settlement:
|
T+4; October 1, 2008 | |
Ratings*
|
A1/A-/A+ (Xxxxx’x/S&P/Fitch) | |
CUSIP:
|
976656 CA4 | |
Joint Book-Running Managers:
|
Citigroup Global Markets Inc. | |
| Wachovia Capital Markets, LLC | ||
Co-Managers:
|
SunTrust Xxxxxxxx Xxxxxxxx, Inc. | |
| Xxxxx Fargo Securities, LLC |
Sch. B-1
| * | Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
XXXXX on the SEC web site at xxx.xxx.xxx. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
Citigroup Global Markets Inc. toll-free at 1-877-858-5407 or Wachovia Capital Markets, LLC
toll-free at 0-000-000-0000.
Sch. B-2
SCHEDULE C
ISSUER FREE WRITING PROSPECTUSES
1. Pricing Term Sheet dated as of September 25, 2008 and attached hereto as Schedule B.
Sch. C-1
Exhibit A-1
FORM OF OPINION OF COMPANY’S COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
Capitalized terms used herein shall have the same definitions as set forth in the underwriting
agreement (the “Underwriting Agreement”) to which this Exhibit A-1 is attached.
(i) The Securities and the Indenture conform as to legal matters in all material respects to
the descriptions thereof contained in the Disclosure Package and the Prospectus.
(ii) The Registration Statement has been declared effective under the 1933 Act; any required
filing of the Prospectus pursuant to Rule 424(b) has been made in the manner and within the time
period required by Rule 424(b); and, to the best of our knowledge, (a) no stop order suspending the
effectiveness of the Registration Statement has been issued under the 1933 Act and (b) no
proceedings for that purpose or pursuant to Section 8A of the 1933 Act against the Company or
related to the offering have been instituted or are pending or threatened by the Commission.
(iii) The Registration Statement, as of the date of the Underwriting Agreement, any subsequent
amendment thereto, as of its effective date, and the Prospectus, as of its issue date, appeared on
their face to comply as to form in all material respects with the requirements of the 1933 Act and
the 1933 Act Regulations, and the Exchange Act Documents incorporated by reference in the
Prospectus, as of their respective dates of filing with the Commission, appeared on their face to
comply as to form in all material respects with the requirements of the 1933 Act or the 1934 Act,
as applicable, and the rules and regulations of the Commission thereunder, except that in each
case, we express no opinion as to the financial statements or other financial or statistical data
contained or incorporated by reference in the Registration Statement, the Prospectus or the
documents incorporated by reference in the Registration Statement or the Prospectus and we express
no opinion as to the Form T-1.
(iv) The Company is not an “investment company” or an entity “controlled” by an “investment
company,” as such terms are defined in the 1940 Act.
We have participated in conferences with officers and other representatives of the Company,
representatives of and counsel to the Underwriters and representatives of the independent public
accountants for the Company at which conferences the contents of the Prospectus, the Registration
Statement and the Disclosure Package and related matters were discussed. Given the limitations
inherent in the role of outside counsel and the character of determinations involved in the
preparation of such documents, we are not passing upon and do not assume any responsibility for the
accuracy, completeness or fairness of the statements contained in the Registration Statement,
Disclosure Package or the Prospectus and have made no independent check or verification thereof
(except as indicated in paragraph (i) above). On the basis of the foregoing, no facts have come to
our attention that lead us to believe that the Registration Statement, as of the date of the
Underwriting Agreement, or any subsequent amendment thereto, at the time such amendment became
effective, contained an untrue statement
A-1-1
of a material fact or omitted to state a material fact required to be stated therein or
necessary to make the statements therein not misleading, that the Prospectus contained, as of its
date, or contains, as of the date hereof, an untrue statement of a material fact or omitted, as of
its date, or omits, as of the date hereof, to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading or
that the Disclosure Package, taken together as a whole, as of the Execution Time, contained an
untrue statement of a material fact or omitted to state a material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading (it being understood that we have not been asked to comment and express no opinion or
belief with respect to the Form T-1 or the financial statements, including the notes thereto, or
any other financial or statistical set forth or referred to in the Registration Statement, the
Prospectus or the Disclosure Package).
In rendering such opinion, such counsel may rely as to matters of fact (but not as to legal
conclusions), to the extent they deem proper, on certificates of responsible officers of the
Company, representatives of the Trustee and public officials. In giving such opinion such counsel
may rely, as to all matters governed by the laws of jurisdictions other than the law of the State
of New York and the federal law of the United States, upon the opinions of counsel satisfactory to
the Representatives, including in the case of Michigan law, upon the opinion of Miller, Canfield,
Paddock and Stone, P.L.C., Michigan counsel to the Company. Such opinion shall not state that it
is to be governed or qualified by, or that it is otherwise subject to, any treatise, written policy
or other document relating to legal opinions, including, without limitation, the Legal Opinion
Accord of the ABA Section of Business Law (1991).
For purposes of such opinion, “Exchange Act Documents” shall mean the Company’s Annual Report
on Form 10-K for the year ended December 31, 2007, the Company’s Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2008 and June 30, 2008 and the Company’s Current Reports on Form 8-K
filed with the Commission on January 18, 2008, March 14, 2008, April 16, 2008, May 8, 2008, July
11, 2008 and October 1, 2008.
X-0-0
Xxxxxxx X-0
FORM OF OPINION OF COMPANY’S COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
TO BE DELIVERED PURSUANT TO
SECTION 5(b)
Capitalized terms used herein shall have the same definitions as set forth in the underwriting
agreement (the “Underwriting Agreement”) to which this Exhibit A-2 is attached.
(i) The Company has been duly incorporated and is validly existing as a corporation in active
status under the laws of the State of Wisconsin.
(ii) The Company has corporate power and authority to own, lease and operate its properties
and to conduct its business as described in the Disclosure Package and the Prospectus and to enter
into and perform its obligations under the Underwriting Agreement.
(iii) The Underwriting Agreement has been duly authorized, executed and delivered by the
Company.
(iv) The Indenture has been duly authorized, executed and delivered by the Company, has been
duly qualified under the 1939 Act and (assuming the due authorization, execution and delivery
thereof by the Trustee) constitutes a valid and binding agreement of the Company, enforceable
against the Company in accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, general equitable principles (whether considered in a proceeding in
equity or at law) and an implied covenant of good faith and fair dealing.
(v) The Securities are in the form contemplated by the Indenture, have been duly authorized by
the Company and, assuming that the Securities have been duly authenticated by the Trustee in the
manner described in its certificate delivered to you today (which fact the Underwriting Agreement
provides I need not determine by an inspection of the Securities), the Securities have been duly
executed, issued and delivered by the Company and constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, subject to the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, general equitable principles (regardless of
whether enforcement is considered in a proceeding in equity or at law) and an implied covenant of
good faith and fair dealing, and are entitled to the benefits of the Indenture.
(vi) To the best of my knowledge, there are no statutes or regulations that are required to be
described in the Disclosure Package or the Prospectus that are not described as required.
(vii) All descriptions in the Registration Statement of written contracts and other documents
to which the Company is a party are accurate in all material respects; to the best of my knowledge,
there are no franchises, contracts, indentures, mortgages, loan agreements, notes, leases or other
instruments required to be described or referred to in the Registration Statement
A-2-1
or to be filed as exhibits thereto other than those described or referred to therein or filed
or incorporated by reference as exhibits thereto, and the descriptions thereof or references
thereto are correct in all material respects.
(viii) To the best of my knowledge, the Company is not in violation of its charter or by-laws
and no default by the Company exists in the due performance or observance of any obligation,
agreement, covenant or condition contained in any contract, indenture, mortgage, loan agreement,
note, lease or other agreement or instrument that is described or referred to in the Registration
Statement, the Disclosure Package or the Prospectus or filed or incorporated by reference as an
exhibit to the Registration Statement, except for any such default that would not have a Material
Adverse Effect.
(ix) All requisite approvals of the PSCW for the issuance and sale by the Company of the
Securities to the Underwriters under the Underwriting Agreement have been obtained; and the
Securities have been issued and sold to the Underwriters by the Company in conformity with the
order of such commission issued with respect thereto. I know of no other approvals of regulatory
authorities required in connection with the foregoing matters, other than approvals which may be
required under state securities laws.
(x) The execution, delivery and performance of the Underwriting Agreement, the Indenture and
the Securities and the consummation of the transactions contemplated in the Underwriting Agreement
and in the Registration Statement, the Disclosure Package and the Prospectus (including the
issuance and sale of the Securities and the use of the proceeds from the sale of the Securities as
described in the Disclosure Package and the Prospectus under the caption “Use of Proceeds”) and
compliance by the Company with its obligations under the Underwriting Agreement, the Indenture and
the Securities do not and will not, whether with or without the giving of notice or lapse of time
or both, conflict with or constitute a breach of or default or similar event under or result in the
creation or imposition of any lien, charge or encumbrance upon any property or assets of the
Company pursuant to any written contract, indenture, mortgage, deed of trust, loan or credit
agreement, note, lease or any other agreement or instrument, known to me, to which the Company is a
party or by which it may be bound, or to which any of the property or assets of the Company is
subject (except for such conflicts, breaches, similar events or defaults or liens, charges or
encumbrances that would not have a Material Adverse Effect), nor will such action result in any
violation of the provisions of the charter or by-laws of the Company, or any applicable law,
statute, rule, regulation, judgment, order, writ or decree, known to me, of any government,
government instrumentality or court, domestic or foreign, having jurisdiction over the Company or
any of its properties, assets or operations.
(xi) The Securities and the Indenture conform as to legal matters in all material respects to
the descriptions thereof contained in the Disclosure Package and the Prospectus.
I, or members of my staff, have participated in conferences with officers and other
representatives of the Company, counsel to and representatives of the Underwriters and
representatives of the independent public accountants for the Company at which conferences the
contents of the Prospectus, the Registration Statement and the Disclosure Package and related
matters were discussed. Given the character of determinations involved in the preparation of
A-2-2
such documents, I am not passing upon and do not assume any responsibility for the accuracy,
completeness or fairness of the statements contained in the Registration Statement, the Disclosure
Package or the Prospectus and have made no independent check or verification thereof (except as
otherwise indicated above). On the basis of the foregoing, no facts have come to my attention that
lead me to believe that the Registration Statement, as of the date of the Underwriting Agreement,
or any subsequent amendment thereto, at the time such amendment became effective, contained an
untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein not misleading, that the Prospectus contained,
as of its date, or contains, as of the date hereof, an untrue statement of a material fact or
omitted, as of its date, or omits, as of the date hereof, to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading or that the Disclosure Package, taken together as a whole, as of the Execution Time,
contained an untrue statement of a material fact or omitted to state a material fact necessary in
order to make the statements therein, in the light of the circumstances under which they were made,
not misleading (it being understood that I have not been asked to comment and express no opinion or
belief with respect to the Form T-1 or the financial statements, including the notes thereto, or
any other financial or statistical data set forth or referred to in the Registration Statement, the
Prospectus or the Disclosure Package).
In rendering such opinion, such counsel may rely as to matters of fact (but not as to legal
conclusions), to the extent such counsel deems proper, on certificates of responsible officers of
the Company, representatives of the Trustee and public officials. In giving such opinion such
counsel may rely, as to all matters governed by the laws of jurisdictions other than the law of the
State of Wisconsin and the federal law of the United States, upon the opinions of counsel
satisfactory to the Representatives, including, in the case of Michigan law, upon the opinion of
Miller, Canfield, Paddock and Stone, P.L.C., Michigan counsel to the Company. Such opinion shall
not state that it is to be governed or qualified by, or that it is otherwise subject to, any
treatise, written policy or other document relating to legal opinions, including, without
limitation, the Legal Opinion Accord of the ABA Section of Business Law (1991).
X-0-0
Xxxxxxx X-0
FORM OF OPINION OF COMPANY’S MICHIGAN COUNSEL
TO BE DELIVERED PURSUANT TO
SECTION 5(c)
TO BE DELIVERED PURSUANT TO
SECTION 5(c)
Capitalized terms used herein have the same definitions as set forth in the underwriting
agreement (the “Underwriting Agreement”) to which this Exhibit A-3 is attached.
(i) No consent, approval or withholding of objection by the Michigan Public Service Commission
(“Commission”) is required for the issuance under the Indenture and sale by the Company of
the Securities to you pursuant to the Underwriting Agreement. Under the Michigan Utility
Securities Xxx 0000 PA 144, as amended; MCL 460.301 et seq.; MSA 22.101 et seq.,
the Company formerly would have been required to file an application with the Commission, and
obtain an order from the Commission approving the issuance and sale of the Securities. The
Michigan Utility Securities Act was repealed in its entirety on December 27, 1995 by 1995 PA 246.
With the repeal of the Michigan Utility Securities Act, no other provision of Michigan law requires
Commission consent, approval or withholding of objection for the issuance of securities. No
approvals of the Commission were required for the execution and delivery of the Indenture under
former or current law.
(ii) The Company was validly authorized on December 6, 1977 to transact business or conduct
affairs in the State of Michigan, and holds a valid certificate of authority to transact business
or conduct affairs in the State of Michigan. As of the date hereof, the Company remains in good
standing and is duly authorized to transact business or conduct affairs in the State of Michigan.
Such opinion shall state that Xxxxx X. Xxxxxxx, Esq. or Xxxxxx X. Xxxxxxxx, Esq.; Xxxxxxxx
Xxxxxxx LLP; and Xxxxx & XxXxxxx LLP may rely upon such opinion as to all matters of Michigan law
addressed therein as fully as if such opinion were addressed to them.
A-3-1
