As filed with the Securities and Exchange Commission on November 1, 2002
Registration No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
| UnumProvident Corporation (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 62-1598430 (I.R.S. Employer Identification Number) 1 Fountain Square Chattanooga, Tennessee 37402 (423) 755-1011 (Address, including zip code, and telephone number, including area code, of the registrant’s principal executive
offices) |
UnumProvident Financing Trust II UnumProvident Financing Trust III (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 62-6377773 62-6377772 (I.R.S. Employer Identification Number) 1 Fountain Square Chattanooga, Tennessee 37402 (423) 755-1011 (Address, including zip code, and telephone number, including area code, of the registrant’s principal executive offices) |
Susan N. Roth
Vice President, Corporate Secretary and Assistant General Counsel
UnumProvident Corporation
1 Fountain Square, Chattanooga, Tennessee 37402
(423)
755-1011
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Copies to:
| David E. Brown, Jr. Alston &
Bird LLP North Building, 10th Floor 601
Pennsylvania Avenue, N.W. Washington, D.C. 20004-2601 Phone:
(202) 756-3300 Facsimile: (202) 756-3333 |
William G. Farrar Sullivan &
Cromwell 125 Broad Street New York, New York
10004-2498 Phone: (212) 558-4000 Facsimile: (212)
558-3588 |
Approximate date of commencement of proposed sale to public: From time to time after this registration statement becomes effective as determined by market conditions and other factors.
If the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please check the following
box. ¨
If any of the securities
being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, please check the
following box. þ
If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under
the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨
If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration
statement number of the earlier effective registration statement for the same offering. ¨
If delivery of the prospectus is expected to be
made pursuant to Rule 434, please check the following box. ¨
CALCULATION OF REGISTRATION FEE
| Title of Shares To Be
Registered |
Amount To Be Registered (7)(8) |
Proposed Maximum Offering Price Per Unit (9)(10) |
Proposed Maximum Aggregate Offering Price (5)(7)(8)(10)(11) |
Amount of Registration Fee (12) | |||||
| Senior Debt Securities of UnumProvident Corporation |
(1)(2)(5) |
||||||||
| Subordinated Debt Securities of UnumProvident Corporation |
(1)(2)(5) |
||||||||
| Preferred Stock, $.10 par value, of UnumProvident Corporation |
(1)(2)(5) |
||||||||
| Depositary Shares of UnumProvident Corporation |
(1)(2)(5) |
||||||||
| Common Stock, $.10 par value, of UnumProvident Corporation |
(1)(2)(5) |
||||||||
| Warrants of UnumProvident Corporation |
(1)(3) |
||||||||
| Stock Purchase Contracts of UnumProvident Corporation |
(1)(4) |
||||||||
| Units of UnumProvident Corporation |
(1)(4) |
||||||||
| Preferred Securities of UnumProvident Financing Trust II and UnumProvident Financing Trust III |
(1)(6) |
||||||||
| UnumProvident Corporation Guarantees of Preferred Securities of UnumProvident Financing Trust II and UnumProvident
Financing Trust III |
(1)(6) |
||||||||
| TOTAL |
$1,475,000,000 |
100 |
% |
$1,475,000,000 |
$135,700 | ||||
(1) |
Such indeterminate number, principal amount or liquidation amount of Senior Debt Securities, Subordinated Debt Securities, Preferred Stock,
Depositary Shares, Common Stock, Warrants, Stock Purchase Contracts, and Units of UnumProvident Corporation and of Preferred Securities of UnumProvident Financing Trust II and UnumProvident Financing Trust III and the related Guarantees of
UnumProvident Corporation as may from time to time be issued at indeterminate prices. This Registration Statement also covers delayed delivery contracts that may be issued by the Registrant under which the party purchasing such contracts may be
required to purchase Senior Debt Securities, Subordinated Debt Securities, Preferred Shares, Depositary Shares, Common Stock or Preferred Securities. Such contracts may be issued together with the specific securities to which they relate. In
addition, securities registered hereunder may be sold either separately or as units consisting of more than one type of security registered hereunder. The securities registered hereunder shall not have an aggregate offering price which exceeds
$1,475,000,000 in United States dollars or the equivalent in any other currency. |
(2) |
Also includes such indeterminate number of Senior Debt Securities, Subordinated Debt Securities and shares of Common Stock and Preferred Stock, and Depositary
Shares as may be issued upon conversion or exchange of any Senior Debt Securities, Subordinated Debt Securities, Preferred Stock or Depositary Shares that provide for conversion or exchange into other securities or upon exercise of Warrants for such
securities. |
(3) |
Warrants may be sold separately or with Senior Debt Securities, Subordinated Debt Securities, Preferred Stock, Depositary Shares or Common Stock.
|
(4) |
Includes an indeterminable number of shares of Common Stock and Preferred Stock to be issuable by UnumProvident Corporation upon settlement of Stock Purchase
Contracts. |
(5) |
No separate consideration will be received for the Senior Debt Securities, Subordinated Debt Securities, or shares of Preferred Stock or Common Stock or
Depositary Shares issuable upon conversion of or in exchange for Senior Debt Securities, Subordinated Debt Securities, Preferred Stock or Depositary Shares. |
(6) |
Includes the rights of holders of the Preferred Securities under the Guarantees of Preferred Securities and back-up undertakings, consisting of obligations by
UnumProvident Corporation, as set forth in the Amended and Restated Declarations of Trust, the Subordinated Debt Securities Indenture and any Supplemental Indenture thereto, in each case as further described in the Registration Statement. No
separate consideration will be received for any Guarantee or any back-up undertakings. |
(7) |
In United States dollars or the equivalent thereof in any other currency, currency unit or units, or composite currency or currencies.
|
(8) |
Such amount represents the principal amount of any Senior Debt Securities, Subordinated Debt Securities or Preferred Securities issued at their principal or
liquidation amount, the issue price rather than the principal or liquidation amount of any Senior Debt Securities, Subordinated Debt Securities or Preferred Securities issued at an original issue discount, the liquidation preference of any Preferred
Stock or Depositary Shares, the amount computed pursuant to Rule 457(c) for any Common Stock, the issue price of any Stock Purchase Contracts, Units and Warrants and the exercise price of any securities issuable upon exercise of Warrants.
|
(9) |
Estimated solely for the purpose of computing the registration fee. |
(10) |
Exclusive of accrued interest and distributions, if any. |
(11) |
Pursuant to Rule 429 under the Securities Act of 1933, as amended, the prospectus contained herein relates to an aggregate of $1,500,000,000 amount of
securities, consisting of $1,475,000,000 amount of securities being registered hereby and $25,000,000 amount of yet unsold securities that were previously registered under the registrant’s registration statement no. 333-43808 on Form S-3,
which was declared effective on September 1, 2000, and for which a filing fee of $264,000 has previously been paid. |
(12) |
Calculated pursuant to Rule 457(o) of the rules and regulations under the Securities Act. |
Pursuant to Rule 429 under the Securities Act of
1933, as amended, this registration statement contains a combined prospectus that also relates to registration statement no. 333-43808 on Form S-3 previously filed by the registrant and declared effective on September 1, 2000.
The registrant hereby amends this registration statement on such date or dates
as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of
1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
PROSPECTUS
$1,500,000,000
UNUMPROVIDENT CORPORATION
SENIOR DEBT SECURITIES
SUBORDINATED
DEBT SECURITIES
PREFERRED STOCK
DEPOSITARY SHARES
COMMON STOCK
WARRANTS
STOCK PURCHASE CONTRACTS
AND
UNITS
UNUMPROVIDENT FINANCING TRUST II
UNUMPROVIDENT FINANCING TRUST III
PREFERRED SECURITIES
AS FULLY AND
UNCONDITIONALLY GUARANTEED
BY UNUMPROVIDENT CORPORATION
We will provide you with more specific terms of these securities in supplements to this prospectus. You should read this prospectus and the applicable prospectus supplement carefully before you invest.
We may offer these securities from time to time in amounts, at prices and on other terms to be determined at the
time of offering. The total offering price of the securities offered to the public will be limited to $1,500,000,000.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The
date of this Prospectus is , 2002.
TABLE OF CONTENTS
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Notice to North Carolina residents: the Commissioner of
Insurance for the State of North Carolina has not approved or disapproved these securities, nor has the Commissioner ruled upon the accuracy or adequacy of this document.
The laws of the various states prohibit any person or entity from directly or indirectly acquiring 10% or more (5% or more in Alabama and Florida) of the voting control
of any domestic insurance holding company without approval of the states’ Commissioner of Insurance.
-i-
This document is called a prospectus and is part of a
registration statement that we filed with the SEC using a “shelf” registration or continuous offering process. Under this shelf registration or continuous offering process, we may from time to time offer any combination of the securities
described in this prospectus in one or more offerings up to a total dollar amount of $1,500,000,000.
This
prospectus provides you with a general description of the securities we may offer. Each time we sell securities, we will provide a prospectus supplement containing specific information about the terms of the securities being offered. A prospectus
supplement may include a discussion of any risk factors or other special considerations applicable to those securities or to us. A prospectus supplement may also add, update or change information in this prospectus. If there is any inconsistency
between the information in this prospectus and the applicable prospectus supplement, you should rely on the information in the prospectus supplement. You should read both this prospectus and any prospectus supplement together with additional
information described under the heading “WHERE YOU CAN FIND MORE INFORMATION” on page 1.
The
registration statement containing this prospectus, including exhibits to the registration statement, provides additional information about us and the securities offered under this prospectus. The registration statement can be read at the SEC web
site or at the SEC public reference room mentioned under the heading “WHERE YOU CAN FIND MORE INFORMATION” on page 1.
When acquiring any securities discussed in this prospectus, you should rely only on the information we have provided in this prospectus and in the applicable prospectus supplement, including the information incorporated by reference.
Neither we, nor any underwriters or agents, have authorized anyone to provide you with different information. We are not offering the securities in any state where the offer is prohibited. You should not assume that the information in this
prospectus, any prospectus supplement, or any document incorporated by reference, is truthful or complete at any date other than the date of the particular document.
We may sell securities to underwriters who will sell the securities to the public on terms fixed at the time of sale. In addition, the securities may be sold by us directly
or through dealers or agents designated from time to time. If we, directly or through agents, solicit offers to purchase the securities, we reserve the sole right to accept and, together with any agents, to reject, in whole or in part, any of those
offers.
Any prospectus supplement will contain the names of the underwriters, dealers or agents, if any, together
with the terms of offering, the compensation of those underwriters and the net proceeds to us. Any underwriters, dealers or agents participating in the offering may be deemed “underwriters” within the meaning of the Securities Act of 1933.
Unless otherwise mentioned or unless the context requires otherwise, all references in this prospectus to
“we,” “us,” “our,” or similar references mean UnumProvident Corporation and its subsidiaries.
Unless otherwise stated, currency amounts in this prospectus and any prospectus supplement are stated in United States dollars (“$”).
We file annual, quarterly and current reports,
proxy statements and other information with the SEC. You may read and copy any document we file at the SEC’s public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information
on the public reference room. Our SEC filings are also available to the public at the SEC’s web site at http://www.sec.gov. The address of the SEC’s web site is provided for the information of prospective investors and not as an active
link. You can
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also inspect reports, proxy statements and other information about us at the offices of the New York Stock Exchange, 20 Broad Street, New York, New York.
The SEC allows us to “incorporate by reference” into this prospectus the information in documents we file with the SEC, which
means that we can disclose important information to you by referring you to those documents. The information incorporated by reference is considered to be a part of this prospectus and should be read with the same care. When we update the
information contained in documents that have been incorporated by reference, by making future filings with the SEC, the information incorporated by reference in this prospectus is considered to be automatically updated and superceded. In other
words, in all cases, if you are considering whether to rely on information contained in this prospectus or information incorporated by reference into this prospectus, you should rely on the information contained in the document that was filed later.
We incorporate by reference the documents listed below and any additional documents we file with the SEC in the future under Sections 13(a), 13(c), 14, or 15(d) of the Securities Exchange Act of 1934 until our offering is completed:
• |
Annual Report on Form 10-K for the year ended December 31, 2001; |
• |
Quarterly Reports on Form 10-Q for the periods ending March 31, 2002, and June 30, 2002; |
• |
Current Reports on Form 8-K filed on February 12, 2002, May 7, 2002, May 15, 2002, June 21, 2002, June 25, 2002, and July 18, 2002; and
|
• |
The description of our common stock set forth in our registration statement filed with the SEC pursuant to Section 12 of the Securities Exchange Act of 1934 and
any amendment or report filed for the purpose of updating any such description. |
You may
request a copy of these filings, at no cost, by writing to or telephoning us at the following address:
Corporate
Relations
UnumProvident Corporation
1 Fountain Square
Chattanooga, Tennessee 37402
(423) 755-8996
We have not included or incorporated by reference in this prospectus any separate financial statements of UnumProvident Financing Trust II
or UnumProvident Financing Trust III, which we will refer to as the trusts. We do not believe that these financial statements would provide holders of preferred securities with any important information for the following reasons:
• |
we will own all of the voting securities of the trusts; |
• |
the trusts do not and will not have any independent operations other than to issue securities and to purchase and hold our junior subordinated debt securities;
and |
• |
we are fully and unconditionally guaranteeing the obligations of the trusts as described in this prospectus. |
We do not expect that the trusts will be required to file any information with the SEC for as long as we continue to file our information with the SEC.
This prospectus and accompanying prospectus supplements
contain or incorporate statements that are “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements can be identified by the use of forward-looking language such as “may,”
“should,” “believes,” “expects,” “anticipates,”“estimates,” “intends,” “projects,” “goals,” “objectives,” or other similar expressions. Our actual
2
results, performance or achievements could be significantly different from the results expressed in, or implied by, those forward-looking statements. Those statements are subject to certain risks
and uncertainties, including but not limited to, certain risks described in the prospectus supplement or supplements accompanying this prospectus or other documents incorporated by reference. When considering those forward-looking statements, you
should keep in mind these risks, uncertainties and other cautionary statements made in this prospectus and the prospectus supplements. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. You
should refer to our periodic and current reports filed with the SEC for specific risks which could cause actual results to be significantly different from those expressed or implied by those forward-looking statements.
We are the surviving corporation in the merger on June 30,
1999 of Provident Companies Inc., the leading individual disability insurance provider in North America, with Unum Corporation, the leading group disability insurance provider. We are the parent holding company for a group of insurance and
non-insurance companies that collectively operate throughout North America and in the United Kingdom and Japan. Our principal operating subsidiaries are Unum Life Insurance Company of America (Unum America), Provident Life and Accident Insurance
Company (Accident), The Paul Revere Life Insurance Company (Paul Revere Life), and Colonial Life & Accident Insurance Company (Colonial). We, through our subsidiaries, are the largest provider of group and individual disability insurance in
North America and the United Kingdom. We also provide a complementary portfolio of life insurance products, including long-term care insurance, life insurance, employer- and employee-paid group benefits, and related services.
Each of UnumProvident Financing Trust II and UnumProvident
Financing Trust III is a Delaware statutory trust and was created by the certificate of trust that we filed with the Secretary of State of Delaware on August 14, 2000. A statutory trust is a separate legal entity that can be formed for the
purpose of holding property. For tax purposes, UnumProvident Financing Trust II and UnumProvident Financing Trust III are both grantor trusts. A grantor trust is a trust that does not pay federal income tax if it is formed solely to
facilitate direct investment in the assets of the trust and the trustee cannot change the investment. We created each of UnumProvident Financing Trust II and UnumProvident Financing Trust III for the limited purpose of:
• |
issuing preferred securities and common securities, which we collectively refer to as the trust securities and which represent undivided beneficial interests in
the assets of the trust; |
• |
investing the gross proceeds that each trust receives from its issuance of its preferred securities and common securities in a liquidation amount equal to the
principal amount of junior subordinated debt securities issued by us; |
• |
distributing the interest the trust receives from us on our junior subordinated debt securities that the trust owns to the holders of the trust securities; and
|
• |
carrying out any other activities that are necessary for or incidental to issuing the preferred securities and common securities and investing in our junior
subordinated debt securities. |
The purchasers of the preferred securities that UnumProvident
Financing Trust II and UnumProvident Financing Trust III may issue will own all of the trusts’ preferred securities. We will own all of the common securities. Each trust is subject to the terms of its declaration of trust that we have executed
as the depositor of the trust and which has also been executed by trustees of the trust. At the time a trust issues any preferred securities, the applicable declaration of trust will be amended and restated to set the terms of the preferred
securities, which we will refer to as the amended declaration. The common securities will represent an aggregate
3
liquidation amount equal to at least 3% of each trust’s total capitalization. The preferred securities will represent the remaining approximate 97% of each trust’s total capitalization.
The terms of the common securities will also be contained in the amended declaration and the common securities will rank equally, and payments will be made ratably, with the preferred securities. However, if there are certain continuing payment
events of default under the subordinated indenture and any supplemental indenture which contains the terms of the junior subordinated debt securities, our rights as holder of the common securities to distributions, liquidation, redemption and other
payments from the trust will be subordinated to the rights to those payments of the holders of the preferred securities. Each trust will use the proceeds of the sale of the preferred securities and the common securities to invest in junior
subordinated debt securities that we will issue to the trust. The preferred securities will be guaranteed by us in the manner described later in this prospectus.
The junior subordinated debt securities and the interest we pay to UnumProvident Financing Trust II and UnumProvident Financing Trust III on the junior subordinated debt securities will be the
trusts’ only assets and the interest we pay to the UnumProvident Financing Trust II and UnumProvident Financing Trust III on our junior subordinated debt securities will be the only revenue of the trusts. Unless stated otherwise in the
applicable prospectus supplement, the amended declarations will not permit the trusts to acquire any assets other than the junior subordinated debt securities or to issue any securities other than the trust preferred securities and the common
securities or to incur any other indebtedness.
Each trust has a term of approximately 45 years but may be
dissolved earlier under the terms of its amended declaration. The trustees of each trust will conduct the business and affairs of the trust. As holder of the common securities, we are entitled to appoint, remove, replace or increase or reduce the
number of trustees. The amended declarations will govern the duties of the trustees. Most of the trustees will be employees, officers or affiliates of ours and will be referred to as administrative trustees. One trustee of each trust, the property
trustee, will be a financial institution that is not affiliated with us and that has a minimum of combined capital and surplus of at least $50 million. The property trustee will act as indenture trustee for the purpose of compliance with the
provisions of the Trust Indenture Act of 1939. Unless the property trustee has a principal place of business in the State of Delaware, and meets other legal requirements, we will appoint another trustee for each trust who meets these requirements to
serve as the Delaware trustee.
We or any subsequent holder of the common securities will pay all fees and
expenses related to the trusts and the offering of the preferred securities and will pay all ongoing costs and expenses of the trusts.
The property trustee of each trust is JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), 450 West 33rd Street, 15th Floor, New York, New York 10001. The Delaware trustee is Chase Manhattan Bank USA, National
Association and its address in the State of Delaware is 500 Stanton Christiana Road, OP4, 3rd Floor,
Newark, Delaware 19713. The principal place of business of each trust is c/o UnumProvident Corporation, 1 Fountain Square, Chattanooga, Tennessee 37402. The telephone number for each trust at that address is (423) 755-1011.
Unless otherwise specified in the applicable prospectus supplement for
any offering of securities, the net proceeds we receive from the sale of these securities will be used for general corporate purposes, which may include:
• |
reducing or refinancing debt; |
• |
funding investments in, or extensions of credit to, our subsidiaries; |
• |
financing possible acquisitions; |
• |
working capital; and |
• |
redeeming outstanding securities. |
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Pending such use, we may temporarily invest net proceeds. We do not have any
present plans, and are not engaged in any negotiations, for the use of any such proceeds, or the issuance of common stock, in any future acquisition. We will disclose any proposal to use the net proceeds from any offering of securities in connection
with an acquisition in the prospectus supplement relating to such offering.
TO FIXED CHARGES AND EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Our
consolidated ratio of earnings to fixed charges including our consolidated subsidiaries is computed by dividing earnings by fixed charges. The ratio of earnings to fixed charges for the periods prior to December 31, 1999 have been restated to give
retroactive effect to the merger of Unum Corporation and Provident Companies, Inc. on June 30, 1999. The following table sets forth our consolidated ratios of earnings to fixed charges and ratios of earnings to combined fixed charges and preferred
stock dividends for the periods shown:
| For the Year Ended December 31, |
For the Six Months Ended June 30, 2002 |
|||||||||||||||||
| Earnings to Fixed Charges |
1997 |
1998 |
1999(2) |
2000 |
2001 |
|||||||||||||
| Excluding Preference Dividends(1) |
10.1 |
x |
7.7 |
x |
(0.1 |
)x |
5.4 |
x |
5.4 |
x |
3.9 |
x | ||||||
| Including Preference Dividends(3) |
8.4 |
|
7.5 |
|
(0.1 |
) |
5.4 |
|
5.4 |
|
3.9 |
| ||||||
(1) |
For purposes of computing the ratio of earnings to fixed charges, earnings as adjusted consist of income (loss) before income taxes plus fixed charges. Fixed
charges consist of interest and debt expense, amortization of deferred debt costs, and the estimated interest portion of rent expense. |
(2) |
Earnings were inadequate to cover fixed charges. The coverage deficiency totaled $165.5 million. |
(3) |
For purposes of computing the ratio of earnings to fixed charges, earnings as adjusted consist of income (loss) before income taxes plus fixed charges. Fixed
charges consist of interest and debt expense, amortization of deferred debt costs, the estimated interest portion of rent expense and preferred stock dividends. |
General
Unless stated otherwise in the applicable prospectus supplement, the following summary outlines the material terms of the senior debt securities and the subordinated debt
securities (including our junior subordinated debt securities), which we collectively refer to as the debt securities, that we may offer from time to time. The specific terms of any debt securities we may offer and the extent, if any, to which these
general terms and provisions may or may not apply to the debt securities will be described in the prospectus supplement relating to the particular series of debt securities.
We will issue the senior debt securities under an indenture, which we have entered into with JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), as trustee.
We will issue the subordinated debt securities under an indenture, which we will enter into with JPMorgan Chase Bank, as trustee. Except for the subordination provisions included in the subordinated indenture, the indentures are substantially
identical. The indentures are subject to and governed by the Trust Indenture Act, and we may supplement the indentures from time to time after we execute them. The following description of the debt securities may not be complete and is subject to
and qualified in its entirety by reference to the form of either the senior or the subordinated indenture relating to the particular series of debt securities, each of which is an exhibit to the registration statement that
5
contains this prospectus. Capitalized terms used but not defined in this description will have the meanings given to them in the indentures. Wherever we refer to particular sections or defined
terms of the indentures, it is our intent that those sections or defined terms will be incorporated by reference in this prospectus.
Terms
The debt securities will be our direct, unsecured obligations. The indebtedness
represented by the senior debt securities will rank equally with all our other unsecured and unsubordinated debt, but will be subordinated to all of our existing and future secured indebtedness, if any. The indebtedness represented by the
subordinated debt securities will rank junior in right of payment, under the terms contained in the subordinated indenture, and will be subject to our prior payment in full of our senior debt all as described under “—Subordination.”
The amount of debt securities we offer will be limited to the amount described on the cover of this prospectus.
We may issue the debt securities, in one or more series from time to time, as our board of directors may establish by resolution or as we may establish in one or more supplemental indentures. We may issue debt securities with terms different from
those of debt securities we previously issued. We may issue debt securities of the same series at more than one time and, unless prohibited by the terms of the series, we may reopen a series for issuances of additional debt securities, without the
consent of the holders of the outstanding debt securities of that series. The debt securities may be denominated and payable in foreign currencies or units based on or related to foreign currencies. Special United States federal income tax
considerations applicable to any debt securities denominated in foreign currencies will be described in the applicable prospectus supplement.
Each indenture provides that there may be more than one trustee under the indenture, each with respect to one or more series of the debt securities. Any trustee under an indenture may resign or be
removed with respect to one or more series of the debt securities, and a successor trustee may be appointed to act with respect to that series. Upon prior written notice, a trustee may be removed by act of the holders of a majority in principal
amount of the outstanding debt securities of the series with respect to which the trustee acts as trustee. If two or more persons are acting as trustee with respect to different series of debt securities, each trustee will be a trustee of a trust
under the applicable indenture unrelated to the trust administered by any other trustee. Except as otherwise stated in this prospectus, any action described in this prospectus to be taken by each trustee may only be taken by the trustee with respect
to the one or more series of debt securities for which it is trustee under the applicable indenture.
You should
refer to the applicable prospectus supplement relating to a particular series of debt securities for the specific terms of the debt securities, including, but not limited to:
• |
the title of the debt securities of the series and whether the debt securities are senior debt securities or subordinated debt securities and, in the case of
subordinated debt securities, whether they are junior subordinated debt securities; |
• |
the total principal amount of the debt securities of the series and any limit on the total principal amount; |
• |
the price (expressed as a percentage of the principal amount of the debt securities) at which we will issue the debt securities of the series;
|
• |
the terms, if any, by which holders may convert or exchange the debt securities of the series into or for common stock or other of our securities or property;
|
• |
if the debt securities of the series are convertible or exchangeable, any limitations on the ownership or transferability of the securities or property into
which holders may convert or exchange the debt securities; |
• |
the date or dates, or the method for determining the date or dates, on which we will be obligated to pay the principal of the debt securities of the series and
the amount of principal we will be obligated to pay; |
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• |
the rate or rates, which may be fixed or variable, at which the debt securities of the series will bear interest, if any, or the method by which the rate or
rates will be determined; |
• |
the date or dates, or the method for determining the date or dates, from which any interest will accrue on the debt securities of the series, the dates on which
we will be obligated to pay any such interest, the regular record dates if any, for the interest payments, or the method by which the dates shall be determined, the persons to whom we will be obligated to pay interest, and the basis upon which
interest shall be calculated if other than that of a 360-day year consisting of twelve 30-day months; |
• |
the place or places where the principal of, and any premium, Make-Whole Amount (as defined in the indentures), interest or Additional Amounts (as defined in the
indentures) on, the debt securities of the series will be payable, where the holders of the debt securities may surrender debt securities for conversion, transfer or exchange, and where notices or demands to or upon us in respect of the debt
securities and the indenture may be served; |
• |
if other than the trustee, the identity of each security registrar and/or paying agent for debt securities of the series; |
• |
the period or periods during which, the price or prices (including any premium or Make-Whole Amount) at which, the currency or currencies in which, and the
other terms and conditions upon which, we may redeem the debt securities of the series, at our option, if we have such an option; |
• |
any obligation of ours to redeem, repay or purchase debt securities pursuant to any sinking fund or analogous provision or at the option of a holder of debt
securities, and the terms and conditions upon which we will redeem, repay or purchase all or a portion of the debt securities of the series pursuant to that obligation; |
• |
the currency or currencies in which we will sell the debt securities and in which the debt securities of the series will be denominated and payable;
|
• |
whether the amount of payment of principal of, and any premium, Make-Whole Amount, or interest on, the debt securities of the series may be determined with
reference to an index, formula or other method and the manner in which the amounts will be determined; |
• |
whether the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on, the debt securities of the series are to be payable, at our
election or at the election of the holder of the debt securities, in a currency or currencies other than that in which the debt securities are denominated or stated to be payable, the period or periods during which, and the terms and conditions upon
which, this election may be made, and the time and manner of, and identity of the exchange rate agent with responsibility for, determining the exchange rate between the currency or currencies in which the debt securities are denominated or stated to
be payable and the currency or currencies in which the debt securities will be payable; |
• |
any provisions granting special rights to the holders of the debt securities of the series at the occurrence of certain events; |
• |
any additions to, modifications of or deletions from the terms of the debt securities with respect to the events of default or covenants contained in the
applicable indenture; |
• |
whether the debt securities of the series will be issued in certificated or book-entry form and the related terms and conditions;
|
• |
whether the debt securities of the series will be in registered or bearer form and the terms and conditions relating to the applicable form, and if in
registered form, the denomination in which we will issue the debt securities if other than $1,000 or a multiple of $1,000 and, if in bearer form, the denominations in which we will issue the debt securities if other than $5,000 or a multiple of
$5,000; |
• |
the applicability, if any, of the defeasance or covenant defeasance provisions described below under “—Discharge, Defeasance and Covenant
Defeasance”; |
7
• |
any applicable United States federal income tax consequences, including whether and under what circumstances we will pay any Additional Amounts as contemplated
in the applicable indenture on the debt securities, to any holder who is not a United States person in respect of any tax, assessment or governmental charge withheld or deducted and, if we will pay Additional Amounts, whether we will have the
option, and on what terms to redeem the debt securities instead of paying the Additional Amounts; |
• |
whether we may extend the interest payment periods and, if so, the terms of any extension; |
• |
if the principal amount payable on any maturity date will not be determinable on any one or more dates prior to the maturity date, the amount which will be
deemed to be the principal amount as of any date for any purpose, including the principal amount which will be due and payable upon any maturity other than the maturity date, or the manner of determining that amount; |
• |
any other covenant or warranty included for the benefit of the debt securities of the series; |
• |
any proposed listing of the debt securities of the series on any securities exchange; and |
• |
any other terms of such debt securities not inconsistent with the provisions of the applicable indenture. |
The debt securities of a series may provide for less than their entire principal amount to be payable if we accelerate the maturity of the
debt securities as a result of the occurrence and continuation of an event of default. If this is the case, the debt securities would have what is referred to as “original issue discount.” Any special United States federal income tax,
accounting and other considerations applicable to original issue discount securities will be described in the applicable prospectus supplement.
We may issue debt securities of a series from time to time, with the principal amount payable on any principal payment date, or the amount of interest payable on any interest payment date, to be
determined by reference to one or more currency exchange rates, commodity prices, equity indices or other factors. Holders of these debt securities may receive a principal amount on any principal payment date, or a payment of interest on any
interest payment date, that is greater than or less than the amount of principal or interest otherwise payable on such dates, depending upon the value on the applicable dates of the applicable currency, commodity, equity index or other factors.
Information as to the methods for determining the amount of principal or interest payable on any date, the
currencies, commodities, equity indices or other factors to which the amount payable on such date is linked and certain additional tax considerations will be described in the applicable prospectus supplement.
The indentures do not contain any provisions that afford holders of the debt securities protection in the event we engage in a transaction
in which we incur or acquire a large amount of additional debt.
Denominations, Interest, Registration and Transfer
Unless the applicable prospectus supplement states otherwise, debt securities we issue in registered form of any series will be
issued in denominations of $1,000 and multiples of $1,000. Unless the applicable prospectus supplement states otherwise, debt securities we issue in bearer form will be issued in denominations of $5,000 and multiples of $5,000.
Unless the applicable prospectus supplement states otherwise, the principal of, and any premium, Make-Whole Amount, or interest
on, any series of debt securities will be payable in the currency designated in the prospectus supplement at the corporate trust office of the trustee, initially located at JPMorgan Chase Bank, Institutional Trust Services, 15th Floor,
450 West 33rd Street, New York, New York 10001. At our option, however, payment of interest may be made by check mailed to the address of the person entitled to the interest payment as it appears in the security register for
the series or by wire transfer of funds to that person at an account maintained within the United States. We may at any time designate additional paying agents, remove any
8
paying agents, or approve a change in the office through which any paying agent acts, except that we will be required to maintain a paying agent in each place of payment for any series. All
monies we pay to a paying agent for the payment of principal of, or any premium, Make-Whole Amount, interest or Additional Amounts on, any debt security which remains unclaimed at the end of two years after the principal, premium or interest has
become due and payable will be repaid to us, subject to any applicable law. After this time, the holder of the debt security will be able to look only to us for payment.
Any interest we do not punctually pay on any interest payment date with respect to a debt security will be defaulted interest and will cease to be payable to the holder on
the original regular record date and may either:
• |
be paid to the holder at the close of business on a special record date for the payment of defaulted interest to be fixed by the applicable trustee; or
|
• |
may be paid at any time in any other lawful manner, all as more completely described in the applicable indenture. |
If the defaulted interest is to be paid on a special record date, notice of the special record date will be mailed to each holder of such
debt security not less than ten days before the special record date.
Subject to certain limitations imposed on
debt securities issued in book-entry form, debt securities of any series will be exchangeable for other debt securities of the same series and with the same total principal amount and authorized denomination upon surrender of the debt securities at
the corporate trust office of the applicable trustee. In addition, subject to certain limitations imposed upon debt securities issued in book-entry form, the debt securities of any series may be surrendered for conversion, transfer or exchange at
the corporate trust office of the applicable trustee. Every debt security surrendered for conversion, transfer or exchange will be duly endorsed or accompanied by a written instrument of transfer. There will be no service charge on any transfer or
exchange of debt securities, but we may require payment by holders to cover any tax or other governmental charge payable in connection with the transfer or exchange.
If the applicable prospectus supplement refers to us designating a transfer agent (in addition to the applicable trustee) for any series of debt securities, we may at any
time remove the transfer agent or approve a change in the location at which the transfer agent acts, except that we will be required to maintain a transfer agent in each place of payment for any series of debt securities. We may at any time
designate additional transfer agents with respect to any series of debt securities.
Neither we nor any trustee
will be required to do any of the following:
• |
issue, register the transfer of or exchange debt securities of any series during a period beginning at the opening of business 15 days before there is a
selection of debt securities of that series to be redeemed and ending at the close of business on the day of mailing or publication of the relevant notice of redemption; |
• |
register the transfer of or exchange any debt security, or portion thereof, called for redemption, except the unredeemed portion of any debt security being only
partially redeemed; |
• |
exchange any debt security in bearer form that is selected for redemption, except a debt security in bearer form may be exchanged for a debt security in
registered form of that series and like denomination, provided that the debt security in registered form shall be simultaneously surrendered for redemption or exchange; or |
• |
issue, register the transfer of or exchange any debt security that has been surrendered for repayment at the option of the holder, except the portion, if any,
of the debt security that is not to be repaid. |
Global Securities
The debt securities in registered form of a series may be issued in the form of one or more fully registered global securities that will
be deposited with a depositary or with a nominee for a depositary identified in the
9
applicable prospectus supplement relating to the series and registered in the name of the depositary or its nominee. In this case, one or more registered global securities will be issued in a
denomination or total denominations equal to the portion of the total principal amount of outstanding registered debt securities of the series to be represented by the registered global securities or securities. Unless and until it is wholly
exchanged for debt securities in definitive registered form, a registered global security may not be transferred except as a whole by the depositary to its nominee or by a nominee to the depositary or another nominee, or by the depositary or its
nominee to a successor of the depositary or the successor depositary’s nominee.
The specific terms of the
depositary arrangement with respect to any portion of a series of debt securities to be represented by a registered global security will be described in the applicable prospectus supplement. We anticipate that the following provisions will apply to
all depositary arrangements.
Ownership of beneficial interests in a registered global security will be limited to
persons that have accounts with, or are participants of, the depositary for the registered global security or persons that may hold interests through participants. When we issue a registered global security, the depositary will credit, on its
book-entry registration and transfer system, the participants’ accounts with the respective principal amounts of the debt securities represented by the registered global security owned by those participants. The accounts to be credited will be
designated by any dealers, underwriters or agents participating in the distribution of the debt securities. Ownership of participants in a registered global security will be shown on, and the transfer of such ownership interests will be effected
only through, records maintained by the depositary and ownership of persons who hold debt securities through participants will be reflected on the records of participants. Participants include securities brokers and dealers, banks and trust
companies, clearing corporations and certain other organizations. Access to the depositary’s system is also available to others, such as banks, brokers, dealers and trust companies, that clear through or maintain a custodial relationship with a
participant, either directly or indirectly, which we refer to as indirect participants. Persons who are not participants or indirect participants may beneficially own registered global securities held by the depositary only through participants or
indirect participants. The laws of some states may require that certain purchasers of securities take physical delivery of such securities in definitive form. These laws may impair a person’s ability to own, transfer or pledge beneficial
interests in a registered global security.
So long as the depositary, or its nominee, is the registered owner of
the global security, the depositary or such nominee, as the case may be, will be considered the sole owner or holder of the debt securities represented by the registered global security for all purposes under the applicable indenture. Except as set
forth below, owners of beneficial interests in a registered global security will not be entitled to have the debt securities represented by the registered global security registered in their names, will not receive or be entitled to receive physical
delivery of the debt securities in definitive form, and will not be considered the owners or holders thereof under the applicable indenture. Accordingly, each person owning a beneficial interest in a registered global security must rely on the
procedures of the depositary and, if such person is not a participant, on the procedures of the participant and, if applicable, the indirect participant through which such person owns its interest, to exercise any rights of a holder under the
applicable indenture. We understand that under existing industry practices, if we request any action of holders or if an owner of a beneficial interest in a registered global security desires to give or take any action which a holder is entitled to
give or take under the applicable indenture, the depositary would authorize the participants holding the relevant beneficial interests to give or take the action, and the participants and, if applicable, indirect participants would authorize
beneficial owners owning through the participants and, if applicable, indirect participants to give or take such action or would otherwise act upon the instructions of beneficial owners holding through them.
Payments of principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on, debt securities represented by a
registered global security will be made to the depositary or its nominee, as the case may be, as the registered owner of the registered global security. None of us, the trustee or any other agent of ours or agent of the trustee will have any
responsibility or liability for any aspect of the records relating to, or payments made on account of, beneficial ownership interests in the registered global security or for maintaining, supervising or reviewing any records relating to the
beneficial ownership interests.
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We expect that once the depositary receives any payment of principal of, and any
premium, Make-Whole Amount, interest or Additional Amounts on, a registered global security, the depositary will immediately credit participants’ accounts with payments in amounts proportionate to their respective beneficial interests in the
registered global security as shown on the records of the depositary. We also expect that payments by participants or, if applicable, indirect participants to owners of beneficial interests in the registered global security held through the
participants or, if applicable, indirect participants will be governed by standing customer instructions and customary practices, as is now the case with the securities held for the accounts of customers in bearer form or registered in “street
name,” and will be the responsibility of the participants or indirect participants as the case may be.
Neither us, the trustee, any paying agent, nor the security registrar for the debt securities will have any responsibility or liability for any aspect of the records relating to, or payments made on account of, beneficial ownership
interests in the registered global security for such debt securities or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.
If the depositary is at any time unwilling or unable to continue as depositary or ceases to be a clearing agency registered under the Securities Exchange Act of 1934, and
we do not appoint a successor depositary registered as a clearing agency under the Exchange Act within 90 days after we become aware of the unwillingness, inability or ineligibility, we will issue debt securities in definitive form in exchange for
the registered global security. In addition, we may at any time and in our sole discretion determine not to have any of the debt securities of a series represented by one or more registered global securities and, in such event, will issue debt
securities of such series in a definitive form in exchange for all of the registered global security or securities representing the debt securities. Any debt securities issued in definitive form in exchange for a registered global security will be
registered in such name or names as the depositary shall instruct the trustee. It is expected that such instructions will be based upon directions received by the depositary from participants with respect to ownership of beneficial interests in the
registered global security.
Debt securities in bearer form of a series may also be issued in the form of one or
more global securities that will be deposited with a common depositary for the Euroclear System and Clearstream Banking, société anonyme Luxembourg (formerly known as Cedelbank), or with a nominee for such depositary identified in the
applicable prospectus supplement. The specific terms and procedures, including the specific terms of the depositary arrangement and any specific procedures for the issuance of debt securities in definitive form in exchange for a bearer form global
security, with respect to any portion of a series of debt securities to be represented by a bearer form global security will be described in the applicable prospectus supplement.
Merger, Consolidation or Sale
We may consolidate with, or
sell, lease or otherwise transfer all or substantially all of our assets to, or merge with or into, any other corporation or trust or entity provided that:
• |
we are the survivor in the merger, or the survivor, if not us, is an entity organized under the laws of the United States or a state of the United States and
expressly assumes by supplemental indenture the due and punctual payment of the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on, all of the outstanding debt securities and the due and punctual performance and
observance of all of the covenants and conditions contained in each indenture; |
• |
immediately after giving effect to the transaction and treating any indebtedness that becomes an obligation of ours or one of our subsidiaries as a result of
the transaction, as having been incurred by us or the subsidiary at the time of the transaction, there is no event of default under the indenture, and no event which, after notice or the lapse of time, or both, would become an event of default;
|
• |
if, as a result of the transaction, our property or assets would be subject to an encumbrance that would not be permitted under the indenture, we shall take
steps to secure the debt securities equally and ratably with all indebtedness secured in the transaction; and |
11
• |
certain other conditions that are described in the indentures are met. |
Upon any such consolidation, merger, or sale, the successor corporation formed, or into which we are merged or to which we are sold, shall succeed to, and be substituted
for, us under the indentures.
This covenant would not apply to any recapitalization transaction, change of
control of us or a transaction in which we incur a large amount of additional debt unless the transactions or change of control included a merger or consolidation or transfer of substantially all of our assets. Except as may be described in the
applicable prospectus supplement, there are no covenants or other provisions in the indentures providing for a put or increased interest or that would otherwise afford holders of debt securities additional protection in the event of a
recapitalization transaction, a change of control of us or a transaction in which we incur or acquire a large amount of additional debt.
Certain Covenants
Existence. Except as permitted under “—Merger, Consolidation or Sale” above we will do or cause to be done all things necessary to preserve and
keep our legal existence, rights and franchises in full force and effect; provided, however, that we will not be required to preserve any right or franchise if we determine that the preservation of that right or franchise is no longer desirable in
the conduct of our business and that its loss is not disadvantageous in any material respect to the holders of any debt securities.
Maintenance of Properties. We will cause all of our material properties used or useful in the conduct of our business or the business of any of our subsidiaries to be
maintained and kept in good condition, repair and working order and supplied with all necessary equipment and we will cause to be made all necessary repairs, renewals, replacements, betterments and improvements for those properties, as we in our
judgment believe is necessary so that we may carry on the business related to those properties properly and advantageously at all times; provided, however, that we will not be prevented from selling or otherwise disposing of our properties or the
properties of our subsidiaries in the ordinary course of business.
Payment of Taxes and Other
Claims. We will pay or discharge, or cause to be paid or discharged, before they become delinquent,
• |
all taxes, assessments and governmental charges levied or imposed upon us or any subsidiary of ours or upon our income, profits or property or that of any
subsidiary of ours, and |
• |
all lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien upon our property or any subsidiary of ours;
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provided, however, that we will not be required to pay or discharge or cause to be paid or discharged any tax, assessment, charge
or claim the amount, applicability or validity of which is being contested in good faith by appropriate proceedings.
Provision of Financial Information. Whether or not we are subject to Section 13 or 15(d) of the Exchange Act, we will, within 15 days of each of the respective dates by which we are
or would be required to file annual reports, quarterly reports and other documents with the SEC pursuant to such Section 13 and 15(d):
• |
file with the applicable trustee copies of the annual reports, quarterly reports and other documents that we are or would be required to file with the SEC
pursuant to Section 13 or 15(d) of the Exchange Act; and |
• |
promptly upon written request and payment of the reasonable cost of duplication and delivery, supply copies of those documents to any prospective holder.
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Waiver of Certain Covenants. We may choose
not to comply with any term, provision or condition of the foregoing covenants, or with certain other terms, provisions or conditions with respect to the debt securities of a
12
series (except any such term, provision or condition which could not be amended without the consent of all holders of such series), if before or after the time for compliance with the covenant,
term, provision or condition, the holders of at least a majority in principal amount of all outstanding debt securities of the series either waive compliance in that instance or generally waive compliance with that covenant or condition. Unless the
holders expressly waive compliance with a covenant and the waiver has become effective, our obligations and the duties of the trustee in respect of the term, provision, or condition will remain in full force and effect.
Covenants Relating to Junior Subordinated Debt Securities. In any subordinated
indenture that governs the terms of the junior subordinated debt securities we issue to a trust, in connection with the issuance of trust securities, we will covenant that, so long as any preferred securities of the trust remain outstanding, if
there has occurred any event that would constitute an event of default under the applicable trust guarantee or amended declaration or if we have extended the interest payment periods of the junior subordinated debt securities, we will not do any of
the following:
• |
declare or pay any dividend on, make any distributions with respect to, or redeem, purchase, acquire or make a liquidation payment with respect to, any of our
capital stock, except for: |
• |
purchases or acquisitions of shares of common stock in connection with the satisfaction of our obligations under any employee benefit plans or the satisfaction
of our obligations pursuant to any contract or security outstanding on the date of the event, which requires us to purchase shares of our common stock, |
• |
as a result of a reclassification of our capital stock or the exchange or conversion of one class or series of our capital stock for another class or series of
our capital stock, or |
• |
the purchase of fractional interests in shares of our capital stock pursuant to the conversion or exchange provisions of the capital stock or the security being
converted or exchanged; |
• |
make any payment of interest, principal or premium on, or repay, repurchase or redeem, any debt securities (including guarantees) we have issued which rank
equally with or junior to the subordinated debt securities held by the applicable trust; or |
• |
make any guarantee payments on any obligations ranking equally with or junior to the subordinated debt securities held by the trust, except under the applicable
trust guarantee. |
Additional Covenants. Any
additional covenants with respect to any series of debt securities will be described in the applicable prospectus supplement.
Events
of Default, Notice and Waiver
Except as otherwise described in the applicable prospectus supplement, each of
the following “Events of Default” set forth in the indentures will be applicable to each series of debt securities we may issue under those indentures:
(1) |
we fail for 30 days to pay any installment of interest or any Additional Amounts payable on any debt security of that series; |
(2) |
we fail to pay the principal of, or any premium or Make-Whole Amount on, any debt security of that series when due, either at maturity, redemption or otherwise;
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(3) |
we fail to make any sinking fund payment when due as required for any debt security of that series; |
(4) |
we default in the performance or breach of any other covenant or agreement we made in the indenture other than a covenant added to the indenture solely for the
benefit of another series of debt securities, which has continued for 60 days after written notice as provided for in accordance with the applicable indenture by the applicable trustee or the holders of at least 25% in principal amount of the
outstanding debt securities of the affected series; |
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(5) |
we default under a bond, debenture, note or other evidence of indebtedness for money borrowed by us or any subsidiary of ours that we have guaranteed that has a
principal amount outstanding that is more than $10,000,000 (other than non-recourse indebtedness), which default has caused the indebtedness to become due and payable earlier than it would otherwise have become due and payable, and the acceleration
has not been rescinded or annulled within 30 days after written notice was provided to us in accordance with the indenture; |
(6) |
certain events of bankruptcy, insolvency or reorganization occur; and |
(7) |
any other event of default specified in the applicable prospectus supplement occurs. |
If there is a continuing event of default under an indenture with respect to outstanding debt securities of a series, then the applicable trustee or the holders of not
less than 25% of the total principal amount of the outstanding debt securities of that series, voting as a single class, may declare immediately due and payable the principal amount or other amount as may be specified in the terms of the debt
securities of and any premium or Make-Whole Amount on, all of the debt securities of that series. However, at any time after a declaration of acceleration with respect to any or all debt securities of a series then outstanding has been made, but
before a judgment or decree for payment of the money due has been obtained by the applicable trustee, the holders of not less than a majority in principal amount of the outstanding debt securities of that series may cancel the acceleration if:
• |
we deposit with the applicable trustee all required payments of the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on, the
applicable debt securities, plus certain fees, expenses, disbursements and advances of the applicable trustee; and |
• |
all events of default, other than the nonpayment of accelerated principal, premium, Make-Whole Amount or other amounts or interest, with respect to the
applicable debt securities have been cured or waived as provided in the indenture. |
Each
indenture also provides that the holders of not less than a majority in principal amount of the applicable outstanding debt securities of any series may waive any past default with respect to those debt securities and its consequences, except a
default consisting of:
• |
our failure to pay the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on, any debt security; or
|
• |
a default relating to a covenant or provision contained in the applicable indenture that cannot be modified or amended without the consent of the holders of
each outstanding debt security affected by the default. |
The trustee is generally required to
give notice to the holders of the debt securities of each affected series within 90 days of a default of which the trustee has actual knowledge under the applicable indenture unless the default has been cured or waived. The trustee may withhold a
notice of default unless the default relates to:
• |
our failure to pay the principal of, or any premium, Make-Whole Amount, interest or Additional Amounts on, a debt security of that series; or
|
• |
any sinking fund installment for any debt security of that series, if the responsible officers of the trustee consider it to be in the interest of the holders.
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Each indenture provides that no holder of debt securities of any series may institute a
proceeding with respect to the indenture or for any remedy under the indenture, unless the applicable trustee fails to act, for 60 days, after:
• |
it has received a written request to institute proceedings in respect of an event of default from the holders of not less than 25% in principal amount of the
outstanding debt securities of the series, as well as an offer of indemnity reasonably satisfactory to the trustee; and |
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• |
no direction inconsistent with such written request has been given to the trustee during that 60-day period by the holders of a majority in principal amount of
the outstanding debt securities of the series. |
This provision will not prevent, however, any holder of debt
securities from instituting suit for the enforcement of payment of the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on, debt securities at their respective due dates.
Subject to provisions in each indenture relating to the trustee’s duties in case of default, the trustee is not under an obligation
to exercise any of its rights or powers under any indenture at the request or direction of any holders of any series of debt securities then outstanding, unless the holders have offered to the trustee security or indemnity satisfactory to it.
Subject to these provisions for the indemnification of the trustee, the holders of not less than a majority in principal amount of the applicable outstanding debt securities will have the right to direct the time, method and place of conducting any
proceeding for any remedy available to the applicable trustee, or of exercising any trust or power conferred upon the trustee. However, the trustee may refuse to follow any direction which is in conflict with any law or the applicable indenture,
which may involve the trustee in personal liability or which may be unduly prejudicial to the holders of debt securities of the applicable series not joining in the direction.
Within 120 days after the close of each fiscal year, we must deliver to each trustee a certificate, signed by one of several specified officers, stating such officer’s
knowledge of our compliance with all the conditions and covenants under the applicable indenture and, in the event of any noncompliance, specifying such noncompliance and the nature and status of the noncompliance.
Modification of the Indenture
Modification and amendment of an indenture may be made only with the consent of the holders of not less than a majority in principal amount of all outstanding debt securities issued under the indenture which are affected by the
modification or amendment. However, no modification or amendment may, without the consent of the holder of each debt security affected, do any of the following:
• |
change the stated maturity of the principal of, or any premium, Make-Whole Amount, installment of principal of, interest or Additional Amounts payable on, any
debt security; |
• |
reduce the principal amount of, or the rate or amount of interest on, any premium, Make-Whole Amount payable on redemption of or any Additional Amounts payable
with respect to, any debt security; |
• |
reduce the amount of principal of an original issue discount security, indexed security or any Make-Whole Amount that would be due and payable upon declaration
of acceleration of the maturity of an original issue discount security or indexed security, or would be provable in bankruptcy, or adversely affect any right of repayment of the holder of any debt security; |
• |
change the place of payment or the currency or currencies of payment of the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on,
any debt security; |
• |
impair the right to institute suit for the enforcement of any payment on or with respect to any debt security; |
• |
reduce the percentage of the holders of outstanding debt securities of any series necessary to modify or amend the applicable indenture, to waive compliance
with certain provisions thereof or certain defaults and consequences thereunder, or to reduce the quorum or voting requirements contained in the applicable indenture; |
• |
make any change that adversely affects the right to convert or exchange any security or decrease the conversion or exchange rate or increase the conversion or
exchange price of any security; or |
15
• |
modify any of the foregoing provisions or any of the provisions relating to the waiver of certain past defaults or certain covenants, except to increase the
required percentage to effect such action or to provide that certain other provisions may not be modified or waived without the consent of the holder of the debt security. |
We and the relevant trustee may modify or amend an indenture, without the consent of any holder of debt securities, for any of the following purposes:
• |
to evidence the succession of another person to us as obligor under the indenture; |
• |
to add to the covenants for the benefit of the holders of all or any series of debt securities or to surrender any right or power conferred upon us in the
indenture; |
• |
to add events of default for the benefit of the holders of all or any series of debt securities; |
• |
to add or change any provisions of an indenture to facilitate the issuance of, or to liberalize certain terms of, debt securities in bearer form, or to permit
or facilitate the issuance of debt securities in uncertificated form, provided that such action shall not adversely affect the interests of the holders of the debt securities of any series in any material respect; |
• |
to add, change or eliminate any provisions of an indenture, provided that any such addition, change or elimination shall |
• |
become effective only when there are no outstanding debt securities of any series created prior to the change or elimination which are entitled to the benefit
of the applicable provision, or |
• |
not apply to any outstanding debt securities created prior to the change or elimination; |
• |
to secure the debt securities; |
• |
to establish the form or terms of debt securities of any series, including the provisions and procedures, if applicable, for the conversion of the debt
securities into our common stock or other securities or property of ours; |
• |
to provide for the acceptance or appointment of a successor trustee or facilitate the administration of the trusts under an indenture by more than one trustee;
|
• |
to cure any ambiguity, defect or inconsistency in an indenture; |
• |
to close an indenture with respect to the authentication and delivery of additional series of debt securities or to qualify, or maintain qualification of, an
indenture under the Trust Indenture Act; |
• |
to supplement any of the provisions of an indenture to the extent necessary to permit or facilitate defeasance and discharge of any series of the debt
securities; or |
• |
to make any provisions with respect to the conversion or exchange rights of the holders of any debt securities, including providing for the conversion or
exchange of any debt securities into any of our securities or property; |
provided that, in each case above, the action
does not adversely affect the interests of the holders of the debt securities of any series issued under the indenture in any material respect.
Subordination
Unless otherwise indicated in the applicable prospectus supplement for a
particular series of subordinated debt securities, the following subordinated provisions will apply to the subordinated debt securities.
The subordinated debt securities, including any junior subordinated debt securities we issue in connection with the issuance of any trust preferred securities by a trust, will be unsecured and subordinated in right of
16
payment to all of our existing and future secured and senior indebtedness. As a result, upon any distribution to our creditors in a liquidation, dissolution, bankruptcy, insolvency or
reorganization, the payment of the principal of and interest on the subordinated debt securities will be subordinated to the extent provided in the subordinated indenture in right of payment to the prior payment in full of all our senior debt and
our secured debt. Our obligation to make payments of the principal of and interest on the subordinated debt securities will not otherwise be affected.
We may not make payments of principal or interest on the subordinated debt securities at any time we are in default on any payment with respect to our senior debt, or we have defaulted on any of our
senior debt resulting in the acceleration of the maturity of the senior debt, or if there is a judicial proceeding pending with respect to our default on our senior debt and we have received notice of the default. We may resume payments on the
subordinated debt securities when the default is cured or waived if the subordination provisions of the subordinated indenture will permit us to do so at that time. After we have paid all of our senior debt in full, holders of subordinated debt
securities will still be subrogated to the rights of holders of our senior debt for the amount of distributions otherwise payable to holders of the subordinated debt securities until the subordinated debt securities are paid in full.
If payment or distribution on account of the subordinated debt securities of any character or security, whether in cash,
securities or other property, is received by a holder of any subordinated debt securities, including any applicable trustee, in contravention of any of the terms of the applicable indenture and before all our senior debt has been paid in full, that
payment or distribution or security will be received in trust for the benefit of, and must be paid over or delivered and transferred to, holders of our senior debt at the time outstanding in accordance with the priorities then existing among those
holders for application to the payment of all senior debt remaining unpaid to the extent necessary to pay all senior debt in full.
Upon payment or distribution of assets to creditors upon insolvency, receivership, conservatorship, reorganization, readjustment of debt, marshalling of assets and liabilities or similar proceedings or any liquidation or
winding up of or relating to our company as a whole, whether voluntary or involuntary, the holders of all senior debt securities will first be entitled to receive payment in full before holders of the outstanding subordinated debt securities will be
entitled to receive any payment in respect of the principal of, or premium, if any, or interest on, the outstanding subordinated debt securities.
After we have paid in full all sums we owe on our senior debt, the holders of the subordinated debt securities, if so issued, together with the holders of our obligations ranking on a parity with the
subordinated debt securities, will be entitled to be paid from our remaining assets the amounts at the time due and owing on the subordinated debt securities and the other obligations. After we have paid in full all sums we owe on the subordinated
debt securities, the holders of the junior subordinated debt securities, together with the holders of our obligations ranking on a parity with the junior subordinated debt securities, will be entitled to be paid from our remaining assets the amounts
at the time due and owing on the junior subordinated debt securities and the other obligations. We will make payment on the junior subordinated debt securities before we make any payment or other distribution, whether in cash, property or otherwise,
on account of any capital stock or obligations ranking junior to our junior subordinated debt securities.
By
reason of this subordination, if we become insolvent, holders of senior debt, as well as certain of our general creditors, may receive more, and holders of subordinated debt securities (including junior subordinated debt securities) may receive
less, than our other creditors, including holders of any of our senior debt securities. This subordination will not prevent the occurrence of any event of default on the subordinated debt securities.
Senior debt is defined in the subordinated indenture as the principal, premium, if any, unpaid interest (including interest accruing on or
after the filing of any petition in bankruptcy or for reorganization relating to us whether or not a claim for post-filing interest is allowed in such proceeding), fees, charges, expenses,
17
reimbursement and indemnification obligations, and all other amounts payable under or in respect of the types of debt generally described below:
(1) |
debt for money we have borrowed; |
(2) |
debt evidenced by a bond, note, debenture, or similar instrument (including purchase money obligations) whether or not given in connection with the acquisition
of any business, property or assets, whether by purchase, merger, consolidation or otherwise, but not any account payable or other obligation created or assumed in the ordinary course of business in connection with the obtaining of materials or
services; |
(3) |
debt which is a direct or indirect obligation which arises as a result of banker’s acceptances or bank letters of credit issued to secure our obligations,
or to secure the payment of revenue bonds issued for our benefit, whether contingent or otherwise; |
(4) |
any debt of others described in the preceding clauses (1) through (3) which we have guaranteed or for which we are otherwise liable;
|
(5) |
debt secured by any mortgage, pledge, lien, charge, encumbrance or any security interest existing on our property; |
(6) |
our obligation as lessee under any lease of property which is reflected on our balance sheet as a capitalized lease; |
(7) |
any deferral, amendment, renewal, extension, supplement or refunding of any liability of the kind described in any of the preceding clauses (1) through (6); and
|
(8) |
our obligations to make payments under the terms of financial instruments such as securities contracts and foreign currency exchange contracts, derivative
instruments and other similar financial instruments; |
provided, however, that, in computing our debt, any particular
debt will be excluded if:
• |
upon or prior to the maturity thereof, we have deposited in trust with a depositary, money (or evidence of indebtedness if permitted by the instrument creating
such indebtedness) in the necessary amount to pay, redeem or satisfy that debt as it becomes due, and the amount so deposited will not be included in any computation of our assets; and |
• |
we have delivered an officers’ certificate to the trustee that certifies that we have deposited in trust with the depositary the sufficient amount.
|
Senior debt will exclude the following:
• |
any debt referred to in paragraphs (1) through (6) above as to which, in the instrument creating or evidencing the debt or under which the debt is outstanding,
it is provided that the debt is not superior in right of payment to our subordinated debt securities, or ranks equal with the subordinated debt securities; |
• |
our subordinated debt securities; |
• |
any debt of ours which when incurred and without respect to any election under Section 1111(b) of the United States Bankruptcy Code of 1978, as amended, was
without recourse to us; |
• |
debt to any employee of ours; and |
• |
all other junior subordinated debentures issued by us from time to time and sold to subsidiaries of ours, including any limited liability companies,
partnerships or trust established or to be established by us, in each case where the subsidiary is similar in purpose to one of the trusts. |
There is no limit on the amount of senior debt or other debt that we may incur in the subordinated indenture. At June 30, 2002, our senior debt aggregated approximately $1.97 billion.
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Discharge, Defeasance and Covenant Defeasance
Unless the terms of a series of debt securities provides otherwise, under each indenture, we may discharge certain obligations to holders
of any series of debt securities that have not already been delivered to the applicable trustee for cancellation and that either have become due and payable or will become due and payable within one year (or are scheduled for redemption within one
year). We can discharge these obligations by irrevocably depositing with the applicable trustee funds in such currency or currencies in which the debt securities are payable in an amount sufficient to pay the entire indebtedness on the debt
securities including the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts payable on, the debt securities to the date of the deposit, if the debt securities have become due and payable or to the stated maturity or
redemption date, as the case may be.
In addition, if the terms of the debt securities of a series permit us to do
so, we may elect either of the following:
• |
to be defeased and be discharged from any and all obligations with respect to the debt securities of that series; except our obligations to
|
• |
pay any Additional Amounts upon the occurrence of certain tax and other events, |
• |
register the transfer or exchange of the debt securities, |
• |
replace temporary or mutilated, destroyed, lost or stolen debt securities, |
• |
maintain an office or agency for the debt securities, and |
• |
to hold moneys for payment in trust; or |
• |
to be defeased and discharged from our obligations with respect to the debt securities of that series described under “—Certain Covenants” or, if
the terms of the debt securities of that series permit, our obligations with respect to any other covenant. |
If we choose to defease and discharge our obligations under the covenants, any failure to comply with the obligations imposed on us by the covenants will not constitute a default or an event of default with respect to the debt
securities of that series. However, to make either election we must irrevocably deposit with the applicable trustee, in trust, an amount, in the currency or currencies in which the debt securities are payable, or in government obligations, or both,
that will provide sufficient funds to pay the principal of, and any premium, Make-Whole Amount, interest or Additional Amounts on, the debt securities, and any mandatory sinking fund or analogous payments on the debt securities, on the relevant
scheduled due dates or upon redemption.
We may defease and discharge our obligations as described in the
preceding paragraphs only if, among other things:
• |
we have delivered to the applicable trustee an opinion of counsel to the effect that the holders of the debt securities will not recognize income, gain or loss
for United States federal income tax purposes as a result of the defeasance or covenant defeasance described in the previous paragraphs and will be subject to United States federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if the defeasance or covenant defeasance had not occurred. In the case of defeasance the opinion of counsel must refer to and be based upon a ruling of the Internal Revenue Service or a change in applicable United
States federal income tax laws occurring after the date of the indenture; |
• |
any defeasance does not result in, or constitute, a breach or violation of an indenture or any other material agreement which we are a party to or obligated
under; and |
• |
no event of default, or event that with notice will be an event of default, has occurred and is continuing with respect to any securities subject to a
defeasance. |
19
Unless otherwise provided in the applicable prospectus supplement, if, after we
have deposited funds and/or government obligations to effect defeasance or covenant defeasance with respect to debt securities of any series:
• |
the holder of a debt security of such series elects to receive payment in a currency in which the deposit was made in respect of the debt security; or
|
• |
a conversion event (as defined below) occurs in respect of the currency in which the deposit was made, |
the indebtedness represented by the debt security shall be deemed to have been, and will be, fully discharged and satisfied through the payment of the principal
of, and any premium, Make-Whole Amount, interest or Additional Amounts on, the debt security, as they become due, out of the proceeds yielded by converting the amount so deposited in respect of the debt security into the currency in which the debt
security becomes payable as a result of the election or such cessation of usage based on the applicable market exchange rate.
Unless otherwise defined in the applicable prospectus supplement, “conversion event” means the cessation of use of:
• |
a currency, currency unit or composite currency issued by the government of one or more countries other than the United States both by the government of the
country that issued such currency and for the settlement of transactions by a central bank or other public institutions of or within the international banking community; or |
• |
any currency unit or composite currency for the purposes for which it was established. |
Unless otherwise described in the applicable prospectus supplement, all payments of principal of, and any premium, Make-Whole Amount, interest or Additional Amounts
on, any debt security that is payable in a foreign currency that ceases to be used by its government of issuance will be made in United States dollars.
In the event we effect covenant defeasance with respect to any series of debt securities and the debt securities are declared due and payable because of the occurrence of any event of default other
than:
• |
the event of default described in clause (4) of the first paragraph under “—Events of Default, Notice and Waiver,” which would no longer be
applicable to the debt securities of that series, or |
• |
the event of default described in clause (7) of the first paragraph under “—Events of Default, Notice and Waiver” with respect to a covenant as
to which there has been covenant defeasance, |
then the amount on deposit with the trustee will still be sufficient to
pay amounts due on the debt securities at the time of their stated maturity but may not be sufficient to pay amounts due on the debt securities at the time of the acceleration resulting from the event of default. In this case, we would remain liable
to make payment of such amounts due at the time of acceleration.
The applicable prospectus supplement may
describe further provisions, if any, permitting defeasance or covenant defeasance, including any modifications to the provisions described above, with respect to a particular series of debt securities.
Conversion and Exchange Rights
The terms on which debt securities of any series are convertible into or exchangeable for our common stock or other securities or property of ours will be set forth in the applicable prospectus supplement. These terms will include:
• |
the conversion or exchange price, or manner for calculating a price; |
• |
the exchange or conversion period; and |
• |
whether the conversion or exchange is mandatory, at the option of the holder, or at our option. |
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The terms may also include calculations pursuant to which the number of shares of
our common stock or other securities or property to be received by the holders of debt securities would be determined according to the market price of our common stock or other securities or property of ours as of a time stated in the prospectus
supplement. The conversion exchange price of any debt securities of any series that is convertible into our common stock may be adjusted for any stock dividends, stock splits, reclassification, combinations or similar transactions, as described in
the applicable prospectus supplement.
Redemption of Debt Securities
If so specified in the applicable prospectus supplement, debt securities of any series may be wholly or partially redeemed at our option, at any time. The debt securities
may also be subject to optional or mandatory redemption on terms and conditions described in the applicable prospectus supplement.
From and after the time that notice has been given as provided in the indenture, if funds for the redemption of any debt securities called for redemption have been made available on the redemption date, the debt securities
will cease to bear interest on the date fixed for redemption specified in the notice, and the only right of the holders of the debt securities will be to receive payment of the redemption price.
Governing Law
The indentures are governed by,
and will be construed in accordance with, the laws of the State of New York.
Concerning the Trustee
JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank) is one of a number of banks with which we maintain banking relationships
in the ordinary course of business. Our banking relationship with JPMorgan Chase Bank includes providing custodial services in connection with our bond and stock portfolios, serving as trustee under the indentures involving our existing debt
securities, and providing us with general banking services. Upon the occurrence of an event of default or an event which, after notice or lapse of time or both, would become an event of default under a series of senior debt securities or
subordinated debt securities, or upon the occurrence of a default under another indenture under which JPMorgan Chase Bank serves as trustee, the trustee may be deemed to have a conflicting interest with respect to the other debt securities as to
which we are not in default for purposes of the Trust Indenture Act and, accordingly, may be required to resign as trustee under the applicable indenture. In that event, we would be required to appoint a successor trustee.
The following outlines some of the provisions of the
preferred stock that we may offer from time to time. The specific terms of a series of preferred stock will be described in the applicable prospectus supplement relating to that series of preferred stock. The following description of the preferred
stock and any description of preferred stock in a prospectus supplement may not be complete and is subject to and qualified in its entirety by reference to the certificate of designations relating to the particular series of preferred stock, which
we will file with the SEC at or prior to the time of sale of the preferred stock.
General
Under our restated certificate of incorporation, our board of directors is authorized, without stockholder approval, to adopt resolutions
providing for the issuance of up to 25,000,000 shares of preferred stock, par value $.10 per share, in one or more series.
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For each series of preferred stock the board of directors may fix the voting
powers, designations, preferences and rights, and qualifications, limitations or restrictions of the series. The board will fix these terms by resolution adopted before we issue any shares of the series of preferred stock.
In addition, as described under “DESCRIPTION OF DEPOSITARY SHARES,” we may, instead of offering full shares of any series of
preferred stock, offer depositary shares evidenced by depositary receipts, each representing a fraction of a share of the particular series of preferred stock issued and deposited with a depositary. The fraction of a share of preferred stock which
each depositary share represents will be set forth in the prospectus supplement relating to the depositary shares.
The prospectus supplement relating to the particular series of preferred stock will contain a description of the specific terms of that series as fixed by the board of directors, including, as applicable:
• |
the offering price at which we will issue the preferred stock; |
• |
the title, designation of number of shares and stated value of the preferred stock; |
• |
the dividend rate or method of calculation, the payment dates for dividends and the place or places where the dividends will be paid, whether dividends will be
cumulative or noncumulative, and, if cumulative, the dates from which dividends will begin to cumulate; |
• |
any conversion or exchange rights; |
• |
whether the preferred stock will be subject to redemption and the redemption price and other terms and conditions relative to the redemption rights;
|
• |
any liquidation rights; |
• |
any sinking fund provisions; |
• |
any voting rights; and |
• |
any other rights, preferences, privileges, limitations and restrictions that are not inconsistent with the terms of our restated certificate of incorporation.
|
When we issue and receive payment for shares of preferred stock, the shares will be fully paid
and nonassessable, and for each share issued, a sum equal to the stated value will be credited to our preferred stock account. Unless otherwise specified in the prospectus supplement relating to a particular series of preferred stock, holders of
preferred stock will not have any preemptive or subscription rights to acquire more of our stock and each series of preferred stock will rank on a parity in all respects with each other series of preferred stock and prior to our common stock as to
dividends and any distribution of our assets.
The rights of holders of the preferred stock offered may be
adversely affected by the rights of holders of any shares of preferred stock that may be issued in the future. Our board of directors may cause shares of preferred stock to be issued in public or private transactions for any proper corporate
purposes and may include issuances to obtain additional financing in connection with acquisitions, and issuances to officers, directors and employees pursuant to benefit plans. Our board of directors’ ability to issue shares of preferred stock
may discourage attempts by others to acquire control of us without negotiation with our board of directors, as it may make it difficult for a person to complete an acquisition of us without negotiating with our board.
Redemption
If so
specified in the applicable prospectus supplement, a series of preferred stock may be redeemable at any time, in whole or in part, at our option or the holder’s, and may be mandatorily redeemed.
Any restriction on the repurchase or redemption by us of our preferred stock while we are in arrears in the payment of dividends will be
described in the applicable prospectus supplement.
22
Any partial redemptions of preferred stock will be made in a way that our board
of directors decides is equitable.
Unless we default in the payment of the redemption price, dividends will cease
to accrue after the redemption date of shares of preferred stock called for redemption and all rights of holders of these shares will terminate except for the right to receive the redemption price.
Dividends
Holders
of each series of preferred stock will be entitled to receive cash dividends when, as and if declared by our board of directors out of funds legally available for dividends. The rates and dates of payment of dividends will be set forth in the
applicable prospectus supplement relating to each series of preferred stock. Dividends will be payable to holders of record of preferred stock as they appear on our books on the record dates fixed by the board of directors. Dividends on any series
of preferred stock may be cumulative or noncumulative.
We may not declare, pay or set apart funds for payment of
dividends on a particular series of preferred stock unless full dividends on any other series of preferred stock that ranks equally with or senior to the series of preferred stock have been paid or sufficient funds have been set apart for payment
for either of the following:
• |
all prior dividend periods of the other series of preferred stock that pay dividends on a cumulative basis; or |
• |
the immediately preceding dividend period of the other series of preferred stockthat pay dividends on a noncumulative basis. |
Partial dividends declared on shares of any series of preferred stock and other series of preferred stock ranking on an equal
basis as to dividends will be declared pro rata. A pro rata declaration means that the ratio of dividends declared per share to accrued dividends per share will be the same for both series of preferred stock.
Liquidation Preference
In the event of our liquidation, dissolution or winding-up, holders of each series of our preferred stock will have the right to receive distributions upon liquidation in the amount described in the applicable prospectus supplement
relating to each series of preferred stock, plus an amount equal to any accrued and unpaid dividends. These distributions will be made before any distribution is made on the common stock or on any securities ranking junior to the preferred stock
upon liquidation, dissolution or winding-up.
If the liquidation amounts payable relating to the preferred stock
of any series and any other securities ranking on a parity regarding liquidation rights are not paid in full, the holders of the preferred stock of these series and other securities will have the right to a ratable portion of our available assets,
up to the full liquidation preference. Holders of these series of preferred stock or other securities will not be entitled to any other amounts from us after they have received their full liquidation preference.
Voting Rights
The
holders of shares of preferred stock will have no voting rights, except:
• |
as otherwise stated in the applicable prospectus supplement; |
• |
as otherwise stated in the certificate of designations establishing the series; or |
• |
as required by applicable law. |
Transfer Agent and Registrar
The transfer agent, registrar and dividend disbursement agent
for the preferred stock will be stated in the applicable prospectus supplement. The registrar for shares of preferred stock will send notices to shareholders of
23
any meetings at which holders of the preferred stock have the right to elect directors or to vote on any other matter.
The following briefly summarizes the provisions of
the depositary shares and depositary receipts that we may issue from time to time and which would be important to holders of depositary receipts, other than pricing and related terms which will be disclosed in the applicable prospectus supplement.
The prospectus supplement will also state whether any of the generalized provisions summarized below do not apply to the depositary shares or depositary receipts being offered. The following description and any description in a prospectus supplement
may not be complete and is subject to, and qualified in its entirety by reference to the terms and provisions of the deposit agreement which we will file with the SEC in connection with an issuance of depositary shares.
Description of Depositary Shares
We may offer depositary shares evidenced by depositary receipts. Each depositary receipt represents a fraction of a share of the particular series of preferred stock issued and deposited with a depositary. The fraction of a share of
preferred stock which each depositary share represents will be set forth in the applicable prospectus supplement.
We will deposit the shares of any series of preferred stock represented by depositary shares according to the provisions of a deposit agreement to be entered into between us and a bank or trust company which we will select as our
preferred stock depositary. The depositary must have its principal office in the United States and have a combined capital and surplus of at least $50,000,000. We will name the depositary in the applicable prospectus supplement. Each owner of a
depositary share will be entitled to all the rights and preferences of the underlying preferred stock in proportion to the applicable fraction of a share of preferred stock represented by the depositary share. These rights include dividend, voting,
redemption, conversion and liquidation rights. The depositary will send the holders of depositary shares all reports and communications that we deliver to the depositary and which we are required to furnish to the holders of depositary shares.
Depositary Receipts
The depositary shares will be evidenced by depositary receipts issued pursuant to the deposit agreement. Depositary receipts will be distributed to anyone who is buying the fractional shares of
preferred stock in accordance with the terms of the applicable prospectus supplement.
While definitive engraved
depositary receipts (certificates) are being prepared, we may instruct the depositary to issue temporary depositary receipts, which will entitle holders to all the rights of the definitive depositary receipts and be substantially in the same form.
The depositary will prepare definitive depositary receipts without unreasonable delay, and we will pay for the exchange of your temporary depositary receipts for definitive depositary receipts.
Withdrawal of Preferred Stock
A holder of
depositary shares may receive the number of whole shares of the series of preferred stock and any money or other property represented by the holder’s depositary receipts after surrendering the depositary receipts at the corporate trust office
of the depositary. Partial shares of preferred stock will not be issued. If the surrendered depositary shares exceed the number of depositary shares that represent the number of whole shares of preferred stock the holder wishes to withdraw, then the
depositary will deliver to the holder at the same time a new depositary receipt evidencing the excess number of depositary shares. Once the holder has withdrawn the preferred stock, the holder will not be entitled to re-deposit that preferred stock
under the deposit agreement or to
24
receive depositary shares in exchange for such preferred stock. We do not expect that there will be any public trading market for withdrawn shares of preferred stock.
Dividends and Other Distributions
The depositary will pay to holders of depositary shares the cash dividends or other cash distributions it receives on preferred stock, after deducting its fees and expenses. Each holder will receive these distributions in proportion
to the number of depositary shares owned by the holder. The depositary will distribute only whole United States dollars and cents. The depositary will add any fractional cents not distributed to the next sum received for distribution to record
holders of depositary shares.
In the event of a non-cash distribution, the depositary will distribute property to
the record holders of depositary shares, unless the depositary determines that it is not feasible to make such a distribution. If this occurs, the depositary may, with our approval, sell the property and distribute the net proceeds from the sale to
the holders.
Redemption of Depositary Shares
If the series of preferred stock represented by depositary shares is subject to redemption, then we will give the necessary proceeds to the depositary. The depositary will
then redeem the depositary shares using the funds they received from us for the preferred stock. The depositary will notify the record holders of the depositary shares to be redeemed not less than 30 nor more than 60 days before the date fixed for
redemption at the holders’ addresses appearing in the depositary’s books. The redemption price per depositary share will be equal to the redemption price payable per share for the applicable series of the preferred stock and any other
amounts per share payable with respect to the preferred stock multiplied by the fraction of a share of preferred stock represented by one depositary share. Whenever we redeem shares of preferred stock held by the depositary, the depositary will
redeem the depositary shares representing the shares of preferred stock on the same day. If fewer than all the depositary shares of a series are to be redeemed, the depositary shares will be selected by lot or ratably as the depositary will decide.
After the date fixed for redemption, the depositary shares called for redemption will no longer be considered
outstanding. Therefore, all rights of holders of the depositary shares will cease, except that the holders will still be entitled to receive any cash payable upon the redemption and any money or other property to which the holder was entitled at the
time of redemption.
Voting the Preferred Stock
Upon receipt of notice of any meeting at which the holders of preferred stock are entitled to vote, the depositary will notify holders of depositary shares of the upcoming
vote and arrange to deliver our voting materials to the holders. The record date for determining holders of depositary shares that are entitled to vote will be the same as the record date for the preferred stock. The materials the holders will
receive will (1) describe the matters to be voted on and (2) explain how the holders, on a certain date, may instruct the depositary to vote the shares of preferred stock underlying the depositary shares. For instructions to be valid, the depositary
must receive them on or before the date specified. The depositary will try, as far as practical, to vote the shares as instructed by the holder. We will do anything the depositary asks us to do in order to enable it to vote as a holder has
instructed. If any holder does not instruct the depositary how to vote the holder’s shares, the depositary will abstain from voting those shares.
Conversion or Exchange
The depositary will convert or exchange all depositary shares on
the same day that the preferred stock underlying the depositary shares is converted or exchanged. In order for the depositary to do so, we will need to
25
deposit the other preferred stock, common stock or other securities into which the preferred stock is to be converted or for which it will be exchanged.
The exchange or conversion rate per depositary share will be equal to:
• |
the exchange or conversion rate per share of preferred stock, multiplied by the fraction of a share of preferred stock represented by one depositary share;
|
• |
plus all money and any other property represented by one depositary share; and |
• |
including all amounts per depositary share paid by us for dividends that have accrued on the preferred stock on the exchange or conversion date and that have
not yet been paid. |
The depositary shares, as such, cannot be converted or exchanged into other
preferred stock, common stock, securities of another issuer or any other securities or property of us. Nevertheless, if so specified in the applicable prospectus supplement, a holder of depositary shares may be able to surrender the depositary
receipts to the depositary with written instructions asking the depositary to instruct us to convert or exchange the preferred stock represented by the depositary shares into other shares of our preferred stock or common stock or to exchange the
preferred stock for securities of another issuer. If the depositary shares carry this right, we would agree that, upon the payment of any applicable fees, we will cause the conversion or exchange of the preferred stock using the same procedures as
we use for the delivery of preferred stock. If a holder is only converting part of the depositary shares represented by a depositary receipt, new depositary receipts will be issued for any depositary shares that are not converted or exchanged.
Amendment and Termination of the Deposit Agreement
We may agree with the depositary to amend the deposit agreement and the form of depositary receipt without consent of the holder at any time. However, if the amendment adds
or increases fees or charges or prejudices an important right of holders, it will only become effective with the approval of holders of at least a majority of the affected depositary shares then outstanding. If an amendment becomes effective,
holders are deemed to agree to the amendment and to be bound by the amended deposit agreement if they continue to hold their depositary receipts.
The deposit agreement automatically terminates if:
• |
all outstanding depositary shares have been redeemed; |
• |
each share of preferred stock has been converted into or exchanged for common stock; or |
• |
a final distribution in respect of the preferred stock has been made to the holders of depositary receipts in connection with our liquidation, dissolution or
winding-up. |
We may also terminate the deposit agreement at any time we wish. If we do so, the
depositary will give notice of termination to the holders not less than 30 days before the termination date. Once depositary receipts are surrendered to the depositary, it will send to each holder the number of whole or fractional shares of the
series of preferred stock underlying that holder’s depositary receipts.
Charges of Depositary and Expenses
We will pay all transfer and other taxes and governmental charges in connection with the existence of the depositary
arrangements. We will pay charges of the depositary for the initial deposit of the preferred stock and any redemption of the preferred stock. Holders of depositary shares will pay other transfer and other taxes and governmental charges and the
charges that are expressly provided in the deposit agreement to be for the holder’s account.
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Limitations on Our Obligations and Liability to Holders of Depositary Receipts
The deposit agreement will limit our obligations and the obligations of the depositary. It will also limit our liability and
the liability of the depositary as follows:
• |
we and the depositary will only be obligated to take the actions specifically set forth in the deposit agreement in good faith; |
• |
we and the depositary will not be liable if either of us is prevented or delayed by law or circumstances beyond our control from performing our obligations
under the deposit agreement; |
• |
we and the depositary will not be liable if either of us exercises discretion permitted under the deposit agreement; |
• |
we and the depositary will have no obligation to become involved in any legal or other proceeding related to the depositary receipts or the deposit agreement on
your behalf or on behalf of any other party, unless you provide us with satisfactory indemnity; and |
• |
we and the depositary will be permitted to rely upon any written advice of counsel or accountants and on any documents we believe in good faith to be genuine
and to have been signed or presented by the proper party. |
In the deposit agreement, we and the
depositary will agree to indemnify each other under certain circumstances.
Resignation and Removal of Depositary
The depositary may resign at any time by notifying us of its election to do so. In addition, we may remove the depositary at
any time. The resignation or removal will take effect when we appoint a successor depositary and it accepts the appointment. We must appoint the successor depositary within 60 days after delivery of the notice of resignation or removal and the new
depositary must be a bank or trust company having its principal office in the United States and having a combined capital and surplus of at least $50,000,000.
The following briefly summarizes the provisions of our
restated certificate of incorporation and amended and restated bylaws that would be important to holders of our common stock. The following description may not be complete and is subject to, and qualified in its entirety by reference to, the terms
and provisions of our restated certificate of incorporation and amended and restated bylaws which are exhibits to the registration statement which contains this prospectus.
General
Under our restated certificate of incorporation,
we are authorized to issue a total of 725,000,000 shares of common stock having a par value of $.10 per share. As of June 30, 2002, 241,387,655 shares of common stock were outstanding. All outstanding shares of common stock are fully paid and
nonassessable. The common stock is listed on The New York Stock Exchange.
Holders of common stock do not have any
conversion, redemption, preemptive or cumulative voting rights. In the event of our dissolution, liquidation or winding-up, common stockholders will share ratably in any assets remaining after all creditors are paid in full, including holders of our
debt securities, and after the liquidation preference of holders of preferred stock has been satisfied.
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Dividends
Holders of common stock are entitled to participate equally in dividends when the board of directors declares dividends on shares of common stock out of funds legally available for dividends. The
rights of holders of common stock to receive dividends are subject to the preferences of holders of preferred stock.
Voting Rights
Holders of common stock are entitled to one vote for each share held of record on all matters voted on by
stockholders, including the election of directors.
Liquidation Rights
In the event of our liquidation, dissolution or winding-up, holders of common stock have the right to a ratable portion of assets remaining after satisfaction in full of
the prior rights of our creditors, all liabilities, and the total liquidation preferences of any outstanding shares of preferred stock.
Certain Provisions That May Have an Anti-Takeover Effect
Our restated certificate of
incorporation and amended and restated bylaws and certain portions of Delaware law, contain certain provisions that may have an anti-takeover effect.
Board of Directors Classification. We have a staggered or classified board of directors. Our board of directors is divided into three classes with the
members of each class serving a three-year term. The members of only one class of directors are elected at any annual meeting of our stockholders. It therefore takes at least two years to elect a majority of our directors.
Business Combination. We cannot enter into business combinations with a person who is
an “interested stockholder” unless the business combination transaction is approved by a vote of not less than 80% of the votes entitled to be cast on the transaction, including a majority of the votes that are not the votes of the
interested stockholder.
An “interested stockholder” is generally any person that owns, or has owned in
the two-year period prior to the date in question, shares of our voting stock that represent 15% or more of the votes entitled to be cast by the holders of the shares of our outstanding voting stock.
A “business combination” is generally a merger or consolidation involving a company, a disposition of a substantial part of the
assets or securities of a company, a liquidation or dissolution of a company, or a certain type of reclassification of securities of a company.
The supermajority vote requirements described above will not apply to business combinations with interested stockholders if the transaction has been approved by a majority of our directors (or their
successors) who are not affiliates of the interested stockholder and were our directors before the interested stockholder became an interested stockholder.
We are also subject to restrictions imposed by Delaware law on transactions with interested stockholders. These restrictions are similar to the restrictions contained in our restated certificate of
incorporation described above. In order to engage in any transaction that is subject to the provisions of our restated certificate of incorporation or the provisions of Delaware law, the requirements of both the restated certificate of incorporation
and Delaware law must be satisfied.
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Special Meetings of
Stockholders. Only our Chairman of the Board, our Chief Executive Officer or our President may call a special meeting of our stockholders and these meetings are to be called by any such officer at the request of
a majority of the board of directors.
Action of Stockholders Without a
Meeting. Any action of our stockholders may be taken at a meeting only and may not be taken by written consent.
Amendment of Certificate of Incorporation. For us to amend our restated certificate of incorporation, Delaware law requires that our board of
directors adopt a resolution setting forth any amendment, declare the advisability of the amendment and call a stockholders’ meeting to adopt the amendment. Generally, amendments to our restated certificate of incorporation require the
affirmative vote of majority of our outstanding stock. As described below, however, certain amendments to our restated certificate of incorporation may require a supermajority vote.
The vote of the holders of not less than 80% of the votes entitled to be cast is required to adopt any amendment to our restated certificate of incorporation that relates
to the provisions of our restated certificate of incorporation that govern the following matters:
• |
management of our business by the directors and classification of our board of directors; |
• |
the ability of our stockholders to act by written consent; and |
• |
the power of the board of directors and the stockholders to amend the bylaws. |
The vote of the holders of not less than 80% of the votes entitled to be cast, including the majority of the votes that are not the votes of an interested stockholder, is
required to adopt any amendment to our restated certificate of incorporation that relates to the provisions of our restated certificate of incorporation that govern the following matters:
• |
the provisions regarding “business combinations” with interested stockholders; and |
• |
the provisions setting forth the supermajority vote requirements for amending the restated certificate of incorporation. |
These supermajority vote provisions for amending the restated certificate of incorporation do not apply if the amendment is
recommended by a majority of our directors (or their successors) who are not affiliates of an interested stockholder and were our directors before the interested stockholder became an interested stockholder.
The provisions described above may discourage attempts by others to acquire control of us without negotiation with our board of directors.
This enhances our board of directors’ ability to attempt to promote the interests of all of our stockholders. However, to the extent that these provisions make us a less attractive takeover candidate, they may not always be in our best
interests or in the best interests of our stockholders. None of these provisions is the result of any specific effort by a third party to accumulate our securities or to obtain control of us by means of merger, tender offer, solicitation in
opposition to management or otherwise.
Transfer Agent and Registrar
The transfer agent and registrar for shares of the common stock is Equiserve Trust Company N.A.
General
We may issue warrants to purchase senior debt securities, subordinated debt securities, preferred stock, depositary shares, common stock or any combination of these
securities and these warrants may be issued
29
independently or together with any underlying securities and may be attached or separate from the underlying securities. We will issue each series of warrants under a separate warrant agreement
to be entered into between us and a warrant agent. The warrant agent will act solely as our agent in connection with the warrants of such series and will not assume any obligation or relationship of agency for or with holders or beneficial owners of
warrants. The following outlines some of the general terms and provisions of the warrants. Further terms of the warrants and the applicable warrant agreement will be stated in the applicable prospectus supplement. The following description and any
description of the warrants in a prospectus supplement may not be complete and is subject to and qualified in its entirety by reference to the terms and provisions of the warrant agreement which we will file with the SEC in connection with an
issuance of the warrants.
The applicable prospectus supplement will describe the terms of any warrants, including
the following:
• |
the title of the warrants; |
• |
the total number of warrants; |
• |
the price or prices at which we will issue the warrants; |
• |
the currency or currencies investors may use to pay for the warrants; |
• |
the designation and terms of the underlying securities purchasable upon exercise of the warrants; |
• |
the price at which and the currency or currencies, including composite currencies, in which investors may purchase the underlying securities purchasable upon
exercise of the warrants; |
• |
the date on which the right to exercise the warrants will commence and the date on which the right will expire; |
• |
whether we will issue the warrants in registered form or bearer form; |
• |
information with respect to book-entry procedures, if any; |
• |
if applicable, the minimum or maximum amount of warrants which may be exercised at any one time; |
• |
if applicable, the designation and terms of the underlying securities with which the warrants are issued and the number of warrants issued with each underlying
security; |
• |
if applicable, the date on and after which the warrants and the related underlying securities will be separately transferable; |
• |
if applicable, a discussion of material United States federal income tax considerations; |
• |
the identity of the warrant agent; |
• |
the procedures and conditions relating to the exercise of the warrants; and |
• |
any other terms of the warrants, including terms, procedures and limitations relating to the exchange and exercise of the warrants.
|
Warrant certificates may be exchanged for new warrant certificates of different denominations, and warrants
may be exercised at the warrant agent’s corporate trust office or any other office indicated in the applicable prospectus supplement. Prior to the exercise of their warrants, holders of warrants exercisable for debt securities will not have any
of the rights of holders of the debt securities purchasable upon such exercise and will not be entitled to payments of principal (or premium, if any) or interest, if any, on the debt securities purchasable upon such exercise. Prior to the exercise
of their warrants, holders of warrants exercisable for shares of preferred stock or common stock or for depositary shares will not have any rights of holders of the preferred stock, common stock or depositary shares purchasable upon such exercise
and will not be entitled to dividend payments, if any, or voting rights of the preferred stock, common stock or depositary shares purchasable upon such exercise.
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Exercise of Warrants
A warrant will entitle the holder to purchase for cash an amount of securities at an exercise price that will be stated in, or that will be determinable as described in,
the applicable prospectus supplement. Warrants may be exercised at any time up to the close of business on the expiration date set forth in the applicable prospectus supplement. After the close of business on the expiration date, unexercised
warrants will become void.
Warrants may be exercised as set forth in the applicable prospectus supplement. Upon
receipt of payment and the warrant certificate properly completed and duly executed at the corporate trust office of the warrant agent or any other office indicated in the prospectus supplement, we will, as soon as practicable, forward the
securities purchasable upon such exercise. If less than all of the warrants represented by such warrant certificate are exercised, a new warrant certificate will be issued for the remaining warrants.
Enforceability of Rights; Governing Law
The holders of warrants, without the consent of the warrant agent, may, on their own behalf and for their own benefit, enforce, and may institute and maintain any suit, action or proceeding against us to enforce their rights
to exercise and receive the securities purchasable upon exercise of their warrants. Unless otherwise stated in the applicable prospectus supplement, each issue of warrants and the applicable warrant agreement will be governed by the laws of the
State of New York.
We may issue stock purchase contracts,
representing contracts obligating holders to purchase from or sell to us, and obligating us to purchase from or sell to the holders, a specified number of shares of our capital stock at a future date or dates. The price per share of capital stock
may be fixed at the time the stock purchase contracts are issued or may be determined by reference to a specific formula contained in the stock purchase contracts. We may issue the stock purchase contracts in such amounts and in as many distinct
series as we wish. The stock purchase contracts may be issued separately or as a part of units consisting of a stock purchase contract and senior debt securities, subordinated debt securities or preferred securities or debt obligations of third
parties, including U.S. Treasury securities, securing the holders’ obligations to purchase the common stock under the stock purchase contracts.
The applicable prospectus supplement may contain, where applicable, the following information about the stock purchase contracts issued under it:
• |
whether the stock purchase contracts obligate the holder to purchase or sell, or both purchase and sell, our common stock or preferred stock, as applicable, and
the nature and amount of each of those securities, or the method of determining those amounts; |
• |
whether the stock purchase contracts are to be prepaid or not; |
• |
whether the stock purchase contracts are to be settled by delivery, or by reference or linkage to the value, performance or level of our common stock or
preferred stock; |
• |
any acceleration, cancellation, termination or other provisions relating to the settlement of the stock purchase contracts; and |
• |
whether the stock purchase contracts will be issued in fully registered or global form. |
The applicable prospectus supplement will describe the terms of any stock purchase contracts. The preceding description and any description of stock purchase contracts
in the applicable prospectus supplement does not purport to be complete and is subject to and is qualified in its entirety by reference to the stock purchase contract agreement and, if applicable, collateral arrangements and depositary arrangements
relating to such stock purchase contracts.
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We may issue units comprising one or more of the other securities
described in this prospectus in any combination. Each unit will be issued so that the holder of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations of a holder of each
included security. The unit agreement under which a unit is issued may provide that the securities included in the unit may not be held or transferred separately at any time or at any time before a specified date.
The applicable prospectus supplement may describe:
• |
the designation and terms of the units and of the securities composing the units, including whether and under what circumstances those securities may be held or
transferred separately; |
• |
any provisions for the issuance, payment, settlement, transfer or exchange of the units or of the securities comprising the units; and
|
• |
whether the units will be issued in fully registered or global form. |
The applicable prospectus supplement will describe the terms of any units. The preceding description and any description of units in the applicable prospectus supplement
does not purport to be complete and is subject to and is qualified in its entirety by reference to the unit agreement and, if applicable, collateral arrangements and depositary arrangements relating to such units.
General
The following summary outlines the material terms and provisions of the preferred securities that the trusts may offer. The particular
terms of any preferred securities a trust offers and the extent if any to which these general terms and provisions may or may not apply to the preferred securities will be described in the applicable prospectus supplement.
Each trust will issue the preferred securities under an amended declaration, which we will enter into with the trustees. The amended
declaration for each trust is subject to and governed by the Trust Indenture Act of 1939 and JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), an independent trustee, will act as property trustee under each amended declaration for
the purposes of compliance with the provisions of the Trust Indenture Act. The terms of the preferred securities will be those contained in the applicable amended declaration and those made part of the amended declaration by the Trust Indenture Act.
The following summary may not be complete and is subject to and qualified in its entirety by reference to the form of amended declaration, which is an exhibit to the registration statement which contains this prospectus, and the Trust Indenture Act.
Terms
Each amended declaration will provide that a trust may issue, from time to time, only one series of preferred securities and one series of common securities. The preferred securities will be offered to investors and the common
securities will be held by us. The terms of the preferred securities, as a general matter, will mirror the terms of the junior subordinated debt securities that we will issue to a trust in exchange for the proceeds of the sales of the preferred and
common securities. If we fail to make a payment on the junior subordinated debt securities, the trust holding those securities will not have sufficient funds to make related payments, including distributions, on its preferred securities.
You should refer to the applicable prospectus supplement relating to the preferred securities for specific terms
of the preferred securities, including, but not limited to:
• |
the distinctive designation of the preferred securities; |
32
• |
the total and per security liquidation amount of the preferred securities; |
• |
the annual distribution rate, or method of determining the rate at which the trust issuing the securities will pay distributions, on the preferred securities
and the date or dates from which distributions will accrue; |
• |
the date or dates on which the distributions will be payable and any corresponding record dates; |
• |
whether distributions on preferred securities will be cumulative, and, in the case of preferred securities having cumulative distribution rights, the date or
dates or method of determining the date or dates from which distributions on preferred securities will be cumulative; |
• |
the right, if any, to defer distributions on the preferred securities upon extension of the interest payment period of the related junior subordinated debt
securities; |
• |
whether the preferred securities are to be issued in book-entry form and represented by one or more global certificates and, if so, the depositary for the
global certificates and the specific terms of the depositary arrangement; |
• |
the amount or amounts which will be paid out of the assets of the trust issuing the securities to the holders of preferred securities upon voluntary or
involuntary dissolution, winding-up or termination of the trust issuing the securities; |
• |
any obligation of the trust issuing the securities to purchase or redeem preferred securities and the terms and conditions relating to any redemption
obligation; |
• |
any voting rights of the preferred securities; |
• |
any terms and conditions upon which the junior subordinated debt securities held by the trust issuing the securities may be distributed to holders of preferred
securities; |
• |
any securities exchange on which the preferred securities will be listed; and |
• |
any other relevant rights, preferences, privileges, limitations or restrictions of the preferred securities not inconsistent with the amended declaration or
with applicable law. |
We will guarantee the preferred securities to the extent described below
under “DESCRIPTION OF TRUST GUARANTEES.” Our guarantee, when taken together with our obligations under the junior subordinated debt securities and the related subordinated indenture, and our obligations under the amended declaration, would
provide a full and unconditional guarantee of amounts due on any preferred securities. Certain United States federal income tax considerations applicable to any offering of preferred securities will be described in the applicable prospectus
supplement.
Liquidation Distribution Upon Dissolution
Unless otherwise specified in an applicable prospectus supplement, each amended declaration states that each trust will be dissolved:
• |
on the expiration of the term of that trust; |
• |
upon our bankruptcy, dissolution or liquidation; |
• |
upon our written direction to the property trustee to dissolve the trust and distribute the related junior subordinated debt securities directly to the holders
of the trust securities; |
• |
upon the redemption of all of the preferred securities in connection with the redemption of all of the related junior subordinated debt securities; or
|
• |
upon entry of a court order for the dissolution of the trust. |
33
Unless otherwise specified in an applicable prospectus supplement, in the event
of a dissolution as described above other than in connection with redemption, after a trust satisfies all liabilities to its creditors as provided by applicable law, each holder of the preferred or common securities issued by that trust will be
entitled to receive:
• |
the related junior subordinated debt securities in an aggregate principal amount equal to the aggregate liquidation amount of the preferred or common securities
held by the holder; or |
• |
if any distribution of the related junior subordinated debt securities is determined by the property trustee not to be practical, cash equal to the aggregate
liquidation amount of the preferred or common securities held by the holder, plus accumulated and unpaid distributions to the date of payment. |
If a trust cannot pay the full amount due on its preferred and common securities because it has insufficient assets available for payment, then the amounts payable by that trust on its preferred and
common securities will be paid on a pro rata basis. However, if certain payment events of default under the subordinated indenture have occurred and are continuing with respect to any series of related junior subordinated debt securities, the total
amounts due on the preferred securities will be paid before any distribution on the common securities.
Events of Default
The following will be events of default under each amended declaration:
• |
an event of default under the subordinated indenture occurs with respect to any related series of junior subordinated debt securities; or
|
• |
any other event of default specified in the applicable prospectus supplement occurs. |
If an event of default with respect to a related series of junior subordinated debt securities occurs and is continuing under the subordinated indenture, and the
subordinated indenture trustee or the holders of not less than 25% in principal amount of the related junior subordinated debt securities outstanding fail to declare the principal amount of all of such junior subordinated debt securities to be
immediately due and payable, the holders of at least 25% in aggregate liquidation amount of the outstanding preferred securities of the trust holding the junior subordinated debt securities, will have the right to declare such principal amount
immediately due and payable by providing written notice to us, the applicable property trustee and the subordinated indenture trustee.
At any time after a declaration of acceleration has been made with respect to a related series of junior subordinated debt securities and before a judgment or decree for payment of the money due has been obtained, the
holders of a majority in liquidation amount of the affected preferred securities may rescind any declaration of acceleration with respect to the related junior subordinated debt securities and its consequences:
• |
if we deposit with the subordinated indenture trustee funds sufficient to pay all overdue principal of and premium and interest on the related junior
subordinated debt securities and other amounts due to the subordinated indenture trustee and the property trustee; and |
• |
if all existing events of default with respect to the related junior subordinated debt securities have been cured or waived except non-payment of principal on
the related junior subordinated debt securities that has become due solely because of the acceleration. |
The holders of a majority in liquidation amount of the affected preferred securities may waive any past default under the subordinated debenture indenture with respect to related junior subordinated debt securities, other than a
default in the payment of principal of, or any premium or interest on, any related junior subordinated debenture or a default with respect to a covenant or provision that cannot be amended or modified without the consent of the holder of each
affected outstanding related junior subordinated debenture. In addition, the holders of at least a majority in liquidation amount of the affected preferred securities may waive any past default under the amended declaration.
34
The holders of a majority in liquidation amount of the affected preferred
securities shall have the right to direct the time, method and place of conducting any proceedings for any remedy available to the property trustee or to direct the exercise of any trust or power conferred on the property trustee under the amended
declaration.
A holder of preferred securities may institute a legal proceeding directly against us, without first
instituting a legal proceeding against the property trustee or anyone else, for enforcement of payment to the holder of principal and any premium or interest on the related series of junior subordinated debt securities having a principal amount
equal to the aggregate liquidation amount of the preferred securities of the holder, if we fail to pay principal and any premium or interest on the related series of junior subordinated debt securities when payable.
We are required to furnish annually, to the property trustee for each trust, officers’ certificates to the effect that, to the best
knowledge of the individuals providing the certificates, we and each trust are not in default under the applicable amended declaration or, if there has been a default, specifying the default and its status.
Consolidation, Merger or Amalgamation of the Trust
No trust may merge with or into, amalgamate, consolidate, or be replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to, any entity, except as described
below or as described in “—Liquidation Distribution Upon Dissolution.” A trust may, with the consent of the administrative trustees but without the consent of the holders of the outstanding preferred securities or the other trustees
of that trust, merge with or into, amalgamate, consolidate, or be replaced by, or convey, transfer or lease its properties and assets substantially as an entirety to, a trust organized under the laws of any state if:
• |
the successor entity either: |
• |
expressly assumes all of the obligations of the trust relating to its preferred securities, or |
• |
substitutes for the trust’s preferred securities other securities having substantially the same terms as the preferred securities, so long as the
substituted successor securities rank the same as the preferred securities for distributions and payments upon liquidation, redemption and otherwise; |
• |
we appoint a trustee of the successor entity who has substantially the same powers and duties as the property trustee of the trust;
|
• |
the successor securities are listed or traded, or any substituted successor securities will be listed upon notice of issuance, on the same national securities
exchange or other organization on which the preferred securities are then listed or traded; |
• |
the merger event does not cause the preferred securities or any substituted successor securities to be downgraded by any national rating agency;
|
• |
the merger event does not adversely affect the rights, preferences and privileges of the holders of the preferred securities or any substituted successor
securities in any material respect; |
• |
the successor entity has a purpose substantially identical to that of the trust that issued the securities; |
• |
prior to the merger event, we shall provide to the property trustee an opinion of counsel from a nationally recognized law firm stating that:
|
• |
the merger event does not adversely affect the rights, preferences and privileges of the holders of the trust’s preferred securities in any material
respect, and |
• |
following the merger event, neither the trust nor the successor entity will be required to register as an investment company under the Investment Company Act of
1940; and |
• |
we own or our permitted transferee owns, all of the common securities of the successor entity and we guarantee or our permitted transferee guarantees the
obligations of the successor entity under the
|
35
substituted successor securities at least to the extent provided under the applicable preferred securities guarantee. |
In addition, unless all of the holders of the preferred securities approve otherwise, no trust may consolidate, amalgamate or merge with or into, or be replaced by, or
convey, transfer or lease its properties and assets substantially as an entirety to, any other entity, or permit any other entity to consolidate, amalgamate, merge with or into or replace it if the transaction would cause that trust or the successor
entity to be taxable as a corporation or classified other than as a grantor trust for United States federal income tax purposes.
Voting Rights
Unless otherwise specified in the applicable prospectus supplement, the
holders of the preferred securities will have no voting rights except as discussed below and under “—Amendment to an Amended Declaration” and “DESCRIPTION OF TRUST GUARANTEES—Modification of the Trust Guarantee;
Assignment” and as otherwise required by law.
If any proposed amendment to an amended declaration provides
for, or the trustees of a trust otherwise propose to effect:
• |
any action that would adversely affect the powers, preferences or special rights of the preferred securities in any material respect, whether by way of
amendment to the amended declaration or otherwise; or |
• |
the dissolution, winding-up or termination of a trust other than pursuant to the terms of the amended declaration, |
then the holders of the affected preferred securities as a class will be entitled to vote on the amendment or proposal. In that case, the amendment or proposal
will be effective only if approved by the holders of at least a majority in aggregate liquidation amount of the affected preferred securities.
Without obtaining the prior approval of the holders of a majority in aggregate liquidation amount of the preferred securities issued by a trust, the trustees of that trust may not:
• |
direct the time, method and place of conducting any proceeding for any remedy available to the subordinated indenture trustee for any related junior
subordinated debt securities or direct the exercise of any trust or power conferred on the property trustee with respect to the related junior subordinated debt securities; |
• |
waive any default that is waivable under the subordinated indenture with respect to any related junior subordinated debt securities;
|
• |
cancel an acceleration of the principal of the related junior subordinated debt securities; or |
• |
consent to any amendment, modification or termination of the subordinated indenture or any related junior subordinated debt securities where consent is
required. |
However, if a consent under the subordinated indenture requires the consent of each
affected holder of the related junior subordinated debt securities, then the property trustee must obtain the prior consent of each holder of the preferred securities of the trust that holds the related junior subordinated debt securities. In
addition, before taking any of the foregoing actions, we will provide to the property trustee an opinion of counsel experienced in such matters to the effect that, as a result of such actions, the trust will not be taxable as a corporation or
classified as other than a grantor trust for United States federal income tax purposes.
The property trustee will
notify all preferred securities holders of a trust of any notice of default received from the subordinated indenture trustee with respect to the junior subordinated debt securities held by that trust.
Any required approval of the holders of preferred securities may be given at a meeting of the holders of the preferred securities convened
for the purpose or pursuant to written consent. The applicable property trustee will
36
cause a notice of any meeting at which holders of securities are entitled to vote to be given to each holder of record of the preferred securities at the holder’s registered address at least
15 days and not more than 90 days before the meeting.
No vote or consent of the holders of the trust securities
will be required for a trust to redeem and cancel its trust securities in accordance with its amended declaration.
Notwithstanding that holders of the preferred securities are entitled to vote or consent under any of the circumstances described above, any of the preferred securities that are owned by us, any trustee or any affiliate of a trustee
or ours will, for purposes of any vote or consent, be treated as if they were not outstanding. Preferred securities held by us or any of our affiliates may be exchanged for related junior subordinated debt securities at the election of the holder.
Amendment to an Amended Declaration
An amended declaration may be amended from time to time by us and the property trustee and the administrative trustees of each trust without the consent of the holders of the preferred securities of
that trust to:
• |
cure any ambiguity or correct or supplement any provision which may be inconsistent with any other provisions with respect to matters or questions arising under
the amended declaration, in each case to the extent that the amendment does not adversely affect the interests of any holder of the preferred securities in any material respect; or |
• |
modify, eliminate or add to any provisions to the extent necessary to ensure that the trust will not be taxable as a corporation or classified as other than a
grantor trust for United States federal income tax purposes, to ensure that the junior subordinated debt securities held by the trust are treated as indebtedness for United States federal income tax purposes or to ensure that the trust will not be
required to register as an investment company under the Investment Company Act of 1940. |
Other
amendments to an amended declaration may be made by us and the trustees of that trust upon approval of the holders of a majority in aggregate liquidation amount of the outstanding preferred securities of that trust and receipt by the trustees of an
opinion of counsel to the effect that the amendment will not cause the trust to be taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes, affect the treatment of the junior subordinated
debt securities held by the trust as indebtedness for United States federal income tax purposes or affect the trust’s exemption from the Investment Company Act of 1940.
Notwithstanding the foregoing, without the consent of each affected holder of common or preferred securities of each trust, an amended declaration may not be amended to:
• |
change the amount or timing of any distribution on the common or preferred securities of a trust or otherwise adversely affect the amount of any distribution
required to be made in respect of the securities as of a specified date; or |
• |
restrict the right of a holder of any securities to institute suit for the enforcement of any payment on or after the distribution date.
|
In addition, no amendment may be made to an amended declaration if the amendment would:
• |
cause a trust to be taxable as a corporation or characterized as other than a grantor trust for United States federal income tax purposes;
|
• |
cause the junior subordinated debt securities held by a trust to not be treated as indebtedness for United States federal income tax purposes;
|
37
• |
cause a trust to be deemed to be an investment company required to be registered under the Investment Company Act of 1940; or |
• |
impose any additional obligation on us without our consent. |
Removal and Replacement of Trustees
The holder of a
trust’s common securities may, upon prior written notice, remove or replace any of the administrative trustees and, unless an event of default has occurred and is continuing under the subordinated indenture, the property and Delaware trustee of
the trust. If an event of default has occurred and is continuing under the subordinated indenture, only the holders of a majority in liquidation amount of the trust’s preferred securities may remove or replace the property trustee and Delaware
trustee. The resignation or removal of any trustee will be effective only upon the acceptance of appointment by the successor trustee in accordance with the provisions of the applicable amended declaration.
Merger or Consolidation of Trustees
Any entity into which a property trustee or the Delaware trustee may be merged or converted or with which it may be consolidated, or any entity resulting from any merger, conversion or consolidation to which the trustee
shall be a party, or any entity succeeding to all or substantially all of the corporate trust business of the trustee, shall be the successor of the trustee under the applicable amended declaration; provided, however, that the entity shall be
otherwise qualified and eligible.
Information Concerning the Property Trustee
For matters relating to compliance with the Trust Indenture Act of 1939, the property trustee for each trust will have all of the duties
and responsibilities of an indenture trustee under the Trust Indenture Act of 1939. The property trustee, other than during the occurrence and continuance of a default under an amended declaration, undertakes to perform only the duties as are
specifically set forth in the amended declaration and, after a default, must use the same degree of care and skill as a prudent person would exercise or use in the conduct of his or her own affairs. The property trustee is under no obligation to
exercise any of the powers given it by an amended declaration at the request of any holder of the preferred securities unless it is offered security or indemnity satisfactory to it against the costs, expenses and liabilities that it might incur. If
the property trustee is required to decide between alternative courses of action, construe ambiguous provisions in an amended declaration or is unsure of the application of any provision of the amended declaration, and the matter is not one on which
the holders of the preferred securities are entitled to vote, then the property trustee will deliver notice to us requesting written instructions as to the course of action to be taken and the property trustee will take or refrain from taking that
action as instructed. If we do not provide these instructions within ten business days, then the property trustee will take such action as it deems advisable and in the best interests of the holders of the preferred and common securities. In this
event, the property trustee will have no liability except for its own bad faith, negligence or willful misconduct.
JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), which is the property trustee for each trust, also serves as the senior indenture trustee, the subordinated indenture trustee and the guarantee trustee under each
trust guarantee described below. We and certain of our affiliates maintain banking relationships with JPMorgan Chase Bank, which are described above under “DESCRIPTION OF DEBT SECURITIES—Concerning the Trustee.”
Miscellaneous
The administrative trustees of each trust are authorized and directed to conduct the affairs of and to operate each trust in such a way so that:
• |
each trust will not be taxable as a corporation or classified as other than a grantor trust for United States federal income tax purposes;
|
38
• |
the junior subordinated debt securities held by each trust will be treated as indebtedness of ours for United States federal income tax purposes; and
|
• |
each trust will not be deemed to be an investment company required to be registered under the Investment Company Act of 1940. |
We and the trustees of each trust are authorized to take any action, so long as it is consistent with applicable law, the
certificate of trust or amended declaration, that we and the trustees determine to be necessary or desirable for the above purposes.
Registered holders of the preferred securities have no preemptive or similar rights.
A
trust may not incur indebtedness or place a lien on any of its assets.
Governing Law
Each amended declaration and the preferred securities will be governed by, and construed in accordance with, the laws of the State of
Delaware, without regard to the conflict of laws provisions thereof.
Description of the Expense Agreement
We will execute an expense agreement at the same time that a trust issues the preferred securities. Under the expense
agreement, we will irrevocably and unconditionally guarantee to each creditor of each trust the full amount of that trust’s costs, expenses and liabilities, other than the amounts owed to holders of its preferred and common securities pursuant
to the terms of those securities. Third parties will be entitled to enforce the expense agreement. The expense agreement, once executed, will be filed with the SEC on Form 8-K or by a post-effective amendment to the registration statement of which
this prospectus is a part.
Our obligation under an expense agreement will be subordinated in right of payment to
the same extent as the trust guarantees. The expense agreement will contain provisions regarding amendment, termination, assignment, succession and governing law similar to those contained in the trust guarantees.
The following describes certain general terms and
provisions of the trust guarantees which we will execute and deliver for the benefit of the holders from time to time of preferred securities. Each trust guarantee will be qualified as an indenture under the Trust Indenture Act of 1939, and JPMorgan
Chase Bank (formerly known as The Chase Manhattan Bank), an independent trustee, will act as indenture trustee under each trust guarantee for the purposes of compliance with the provisions of the Trust Indenture Act of 1939. The terms of each trust
guarantee will be those contained in each trust guarantee and those made part of each trust guarantee by the Trust Indenture Act of 1939. The following summary may not be complete and is subject to and qualified in its entirety by reference to the
form of trust guarantee, which is an exhibit to the registration statement which contains this prospectus, and the Trust Indenture Act of 1939. Each trust guarantee will be held by the guarantee trustee of each trust for the benefit of the holders
of the preferred securities.
General
We will irrevocably and unconditionally agree to pay the following payments or distributions with respect to preferred securities, in full, to the holders of the preferred securities, as and when they
become due regardless of any defense, right of set-off or counterclaim that a trust may have except for the defense of payment:
• |
any accrued and unpaid distributions which are required to be paid on the preferred securities, to the extent the trust that issued the securities does not make
such payments or distributions but has sufficient funds available to do so; |
39
• |
the redemption price and all accrued and unpaid distributions to the date of redemption with respect to any preferred securities called for redemption, to the
extent the trust that issued the securities does not make such payments or distributions but has sufficient funds available to do so; and |
• |
upon a voluntary or involuntary dissolution, winding-up or termination of the trust that issued the securities (other than in connection with the distribution
of junior subordinated debt securities to the holders of preferred securities or the redemption of all of the preferred securities), the lesser of |
• |
the total liquidation amount and all accrued and unpaid distributions on the preferred securities to the date of payment, to the extent the trust that issued
the securities does not make such payments or distributions but has sufficient funds available to do so, and |
• |
the amount of assets of the trust that issued the securities remaining available for distribution to holders of such preferred securities in liquidation of the
trust. |
Our obligation to make a payment under a trust guarantee may be satisfied by our direct
payment of the required amounts to the holders of preferred securities to which the trust guarantee relates or by causing the applicable trust to pay the amounts to the holders.
Modification of the Trust Guarantee; Assignment
Except
with respect to any changes which do not adversely affect the rights of holders of preferred securities in any material respect (in which case no vote will be required), each trust guarantee may be amended only with the prior approval of the holders
of not less than a majority in liquidation amount of the outstanding preferred securities to which the trust guarantee relates. The manner of obtaining the approval of holders of the preferred securities will be described in an accompanying
prospectus supplement. All guarantees and agreements contained in each trust guarantee will bind our successors, assigns, receivers, trustees and representatives and will be for the benefit of the holders of the outstanding preferred securities to
which the trust guarantee relates.
Termination
Each trust guarantee will terminate when any of the following has occurred:
• |
all preferred securities to which the trust guarantee relates have been paid in full or redeemed in full by us, the trust that issued the securities or both;
|
• |
the junior subordinated debt securities held by the trust that issued the securities have been distributed to the holders of the preferred securities; or
|
• |
the amounts payable in accordance with the applicable amended declaration upon liquidation of the trust that issued the securities have been paid in full.
|
Each trust guarantee will continue to be effective or will be reinstated, as the case may be,
if at any time any holder of preferred securities to which the trust guarantee relates must restore payment of any amounts paid on the preferred securities or under the trust guarantee.
Events of Default
An event of default under a
trust guarantee will occur if we fail to perform any of our payment obligations under a trust guarantee or we fail to perform any other obligation under a trust guarantee and the failure to perform such other obligation continues for 60 days.
Each trust guarantee will constitute a guarantee of payment and not of collection. The holders of a majority in
liquidation amount of the preferred securities to which the trust guarantee relates have the right to direct the time, method and place of conducting any proceeding for any remedy available to the guarantee trustee in respect
40
of the trust guarantee or to direct the exercise of any trust or power conferred upon the guarantee trustee under the trust guarantee. If the guarantee trustee fails to enforce the trust
guarantee, any holder of preferred securities to which the trust guarantee relates may institute a legal proceeding directly against us to enforce the holder’s rights under the trust guarantee, without first instituting a legal proceeding
against the trust, the guarantee trustee or any one else. If we do not make a guarantee payment, a holder of preferred securities may directly institute a proceeding against us for enforcement of the trust guarantee for such payment.
Status of the Trust Guarantees
Each trust guarantee will be our general unsecured obligation and will rank subordinate and junior in right of payment, and will be subject to our prior payment in full of our senior debt as described under “DESCRIPTION
OF DEBT SECURITIES—Subordination.”
The terms of the preferred securities provide that each holder of
preferred securities by acceptance of the preferred securities agrees to the subordination provisions and other terms of the trust guarantee relating to the subordination. As of June 30, 2002, we had approximately $1.97 billion of indebtedness that
would rank senior to a trust guarantee.
Information Concerning the Guarantee Trustee
The guarantee trustee, prior to the occurrence of a default with respect to a trust guarantee, undertakes to perform only those duties as
are specifically contained in the trust guarantee and, after default, shall exercise the same degree of care as a prudent individual would exercise in the conduct of his or her own affairs. The guarantee trustee is under no obligation to exercise
any of the powers vested in it by the applicable trust guarantee at the request of any holder of preferred securities to which the trust guarantee relates, unless it is offered indemnity satisfactory to it against the costs, expenses and liabilities
which it might incur by exercising these powers; however the guarantee trustee will not be, upon the occurrence of an event of default under the applicable trust guarantee, relieved from exercising the rights and powers vested in it by such trust
guarantee.
Governing Law
The trust guarantees will be governed by, and construed in accordance with, the laws of the State of New York.
SUBORDINATED DEBT SECURITIES AND THE TRUST GUARANTEES
As long as we may make payments of interest and any other payments when they are due on the junior subordinated debt securities held by a
particular trust, those payments will be sufficient to cover distributions and any other payments due on the trust securities issued by that trust because of the following factors:
• |
the total principal amount of the junior subordinated debt securities held by the trust will be equal to the total stated liquidation amount of the trust
securities issued by the trust; |
• |
the interest rate and the interest payment dates and other payment dates on the junior subordinated debt securities held by the trust will match the
distribution rate and distribution payment dates and other payment dates for the trust securities issued by the trust; |
• |
we will pay, and the trust will not be obligated to pay, directly or indirectly, all costs, expenses, debt, and obligations of the trust (other than obligations
under the trust securities); and |
• |
each amended declaration will further provide that the trustees shall not take or cause or permit the trust to engage in any activity that is not consistent
with the purposes of the trust, which consist solely of
|
41
issuing the trust securities, investing in the junior subordinated debt securities and anything necessary or incident to those activities. |
We will guarantee payments of distributions, to the extent the trust obligated to pay those distributions has sufficient funds available
to make the payments due on the preferred securities, to the extent described under “DESCRIPTION OF TRUST GUARANTEES.” If we do not make interest payments on the junior subordinated debt securities held by a trust, that trust will not have
sufficient funds to pay distributions on the preferred securities. Each trust guarantee covers the payment of distributions and other payments on the preferred securities only if and to the extent that we have made a payment of interest or principal
on the junior subordinated debt securities held by the trust as its sole asset. However, we believe that the trust guarantees, when taken together with our obligations under the junior subordinated debt securities and the subordinated indenture and
our obligations under the amended declarations, including our obligations to pay the costs, expenses, debts and liabilities of the trusts, provide a full and unconditional guarantee of payment on the preferred securities.
A holder of preferred securities may sue us to enforce its rights under the trust guarantee which relates to the holder’s preferred
securities without first suing the guarantee trustee, the trust or any other person or entity.
We and the trusts may offer and sell the securities to or through
underwriters or dealers, and also may offer and sell the securities directly to other purchasers or through designated agents. Any underwriter or agent involved in the offer and sale of the securities will be named in the applicable prospectus
supplement.
Distribution of the securities may be effected from time to time in one or more transactions at a
fixed price or prices, which may be changed, or at market prices prevailing at the time of sale, at prices related to such prevailing market prices or at negotiated prices. We and the trusts also may, from time to time, authorize underwriters acting
as our agents to offer and sell the securities upon the terms and conditions set forth in any prospectus supplement.
In connection with the sale of securities, underwriters may receive compensation from us or a trust or from purchasers of the securities, for whom they may act as agents, in the form of discounts, concessions or commissions.
Underwriters may sell the securities to or through dealers, and such dealers may receive compensation in the form of discounts, concessions or commissions from the underwriters and/or commissions from the purchasers for whom they may act as agents.
Underwriters, dealers and agents that participate in the distribution of the securities may be deemed to be underwriters, and any discounts or commissions they receive from us or a trust, and any profit on the resale of the securities they realize
may be deemed to be underwriting discounts and commissions under the Securities Act. Any such underwriter, dealer or agent will be identified, and any such compensation received will be described in the applicable prospectus supplement.
Unless otherwise specified in the related prospectus supplement, each series of the securities will be a new
issue with no established trading market, other than the common stock. Any common stock sold pursuant to a prospectus supplement will be listed on the NYSE, subject to official notice of issuance. We and the trusts may elect to list any of the other
securities on an exchange, but are not obligated to do so. It is possible that one or more underwriters may make a market in a series of the securities, but will not be obligated to do so and may discontinue any market making at any time without
notice. Therefore, no assurance can be given as to the liquidity of the trading market for the securities.
If
dealers are utilized in the sale of the securities, we and the trusts will sell the securities to the dealers as principals. The dealers may then resell the securities to the public at varying prices to be determined by such dealers at the time of
resale. The names of the dealers and the terms of the transaction will be set forth in the applicable prospectus supplement.
42
We and the trusts may enter into agreements with underwriters, dealers and agents
who participate in the distribution of the securities which may entitle these persons to indemnification by us and the trusts against certain liabilities, including liabilities under the Securities Act, or to contribution with respect to payments
which such underwriters, dealers or agents may be required to make in respect thereof. Any agreement in which we agree to indemnify underwriters, dealers and agents against civil liabilities will be described in the applicable prospectus supplement.
Underwriters, dealers and agents may engage in transactions with, or perform services for, or be customers of
ours in the ordinary course of business.
If so indicated in the applicable prospectus supplement, we will
authorize underwriters or other persons acting as our agents to solicit offers by certain purchasers to purchase the securities from us at the public offering price stated in the prospectus supplement pursuant to delayed delivery contracts providing
for payment and delivery on a future date. These contracts will be subject to only those conditions stated in the prospectus supplement, and the prospectus supplement will state the commission payable to the solicitor of such offers.
Unless otherwise indicated in the applicable prospectus supplement, the
validity of the securities will be passed upon for us by Alston & Bird LLP, Washington, D.C., and for the underwriters by Sullivan & Cromwell, New York, New York. Certain United States federal income taxation matters will be passed upon for
us by Alston & Bird LLP, Washington, D.C. Certain matters of Delaware law relating to the validity of the preferred securities will be passed upon for the trust and us by Richards, Layton & Finger, P.A., Wilmington, Delaware.
The consolidated financial statements of UnumProvident Corporation appearing
in our Annual Report on Form 10-K for the year ended December 31, 2001, have been audited by Ernst & Young LLP, independent auditors, as set forth in their report thereon included therein and incorporated herein by reference. Such consolidated
financial statements are incorporated herein by reference in reliance upon such report given upon the authority of such firm as experts in accounting and auditing.
With respect to the unaudited condensed consolidated interim financial information for the three-month and six-month periods ended March 31 and June 30 of 2002 and 2001,
incorporated by reference in this document, Ernst & Young LLP have reported that they have applied limited procedures in accordance with professional standards for a review of such information. However, their separate reports, included in
UnumProvident Corporation’s quarterly reports on Form 10-Q for the quarters ended March 31 and June 30, 2002, and incorporated herein by reference, state that they did not audit and they do not express an opinion on that interim financial
information. Accordingly, the degree of reliance on their report on such information should be restricted considering the limited nature of the review procedures applied. The independent auditors are not subject to the liability provisions of
Section 11 of the Securities Act of 1933 for their reports on the unaudited interim financial information because those reports are not a “report” or a “part” of the registration statement prepared or certified by the auditors
within the meaning of Sections 7 and 11 of the Securities Act.
43
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM
14. OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.
The expenses in connection with the
distribution of the securities are set forth in the following table. All amounts, except the Securities and Exchange Commission registration fee, are estimated.
| SEC Registration Fee |
$ |
135,700 | |
| NYSE Listing Fee |
|
25,000 | |
| Blue Sky Fees and Expenses |
|
5,000 | |
| Printing and Engraving Costs |
|
50,000 | |
| Rating Agencies’ Fees |
|
50,000 | |
| Accounting Fees and Expenses |
|
25,000 | |
| Legal Fees and Expenses |
|
200,000 | |
| Trustee and Registrar Fees |
|
5,000 | |
| Miscellaneous |
|
12,300 | |
| |
| ||
| Total |
$ |
508,000 | |
| |
|
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify directors and officers, as well
as other employees and individuals, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement in connection with specified actions, suits or proceedings, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the corporation—a “derivative action”), if they acted in good faith and in a manner they reasonably believed to be in or not opposed to the best interests of the corporation,
and, with respect to any criminal action or proceeding, had no reasonable cause to believe their conduct was unlawful. A similar standard is applicable in the case of derivative actions, except that indemnification only extends to expenses
(including attorneys’ fees) actually and reasonably incurred in connection with the defense or settlement of such action, and the statute requires court approval before there can be any indemnification where the person seeking indemnification
has been found liable to the corporation. The statute provides that it is not exclusive of other rights to which those seeking indemnification may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise.
Article VIII of UnumProvident’s Amended and Restated Bylaws provides for the indemnification of
UnumProvident’s directors and officers as set forth below:
ARTICLE VIII: INDEMNIFICATION
SECTION 1. INDEMNIFICATION IN ACTIONS, SUITS, OR PROCEEDINGS OTHER THAN THOSE BY OR IN
THE RIGHT OF THE CORPORATION. Subject to Section 3 of this Article VIII, the Corporation shall indemnify each person who is or was, or is threatened to be made, a party to or witness in any threatened, pending or completed
action, suit, proceeding or claim, whether civil, criminal, administrative or investigative (other than one by or in the right of the Corporation), by reason of the fact that he is or was a director, officer or employee of the Corporation or of
Union Mutual Life Insurance Company, a Maine mutual insurance company (the “Mutual Company”), or is or was serving at the request of the Corporation or the Mutual Company as a director, officer, employee or trustee of another corporation,
partnership, joint venture, trust, employee benefit plan or other enterprise, against expenses (including attorney’s fees and expenses), judgments, fines, penalties, and amounts paid in settlement, incurred by him in connection with defending,
investigating, preparing to defend, or being or preparing to be a witness in, such action, suit, proceeding or claim, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation,
and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.
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SECTION 2. INDEMNIFICATION IN ACTIONS, SUITS OR
PROCEEDINGS BY OR IN THE RIGHT OF THE CORPORATION. Subject to Section 3 of this Article VIII, the Corporation shall indemnify each person who is or was, or is threatened to be made, a party to or witness in any threatened,
pending or completed action, suit, proceeding or claim by or in the right of the Corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer or employee of the Corporation or of the Mutual Company or is
or was serving at the request of the Corporation or the Mutual Company as a director, officer, employee or trustee of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, against expenses (including
attorney’s fees and expenses), and, if and to the extent permitted by applicable law, judgments, penalties and amounts paid in settlement, incurred by him in connection with defending, investigating, preparing to defend, or being or preparing
to be a witness in, such action, suit, proceeding or claim, if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation; provided, however, that no indemnification shall be made
in respect of any such claim or any issue or matter in any such action, suit or proceeding as to which such person shall have been adjudged to be liable to the Corporation unless (and only to the extent that) the Court of Chancery or the court in
which such claim, action, suit or proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnification
for such expenses and amounts which the Court of Chancery or such other court shall deem proper.
SECTION
3. AUTHORIZATION OF INDEMNIFICATION.
(a) Any indemnification under this Article
VIII (unless ordered by a court) shall be made by the Corporation only as authorized in the specific case upon a determination that indemnification of the person seeking indemnification is proper in the circumstances because he has met the
applicable standard of conduct set forth in Section 1 or 2 of this Article VIII, as the case may be. Such determination (and determinations under Sections 5 and 6 of this Article VIII) shall be made (i) by the Board of Directors by a majority vote
of a quorum consisting of directors who were not parties to the action, suit, proceeding or claim with respect to which indemnification is sought (“disinterested directors”), or (ii) if such a quorum is not obtainable, or if a quorum of
disinterested directors so directs, in a written opinion of independent legal counsel chosen by the Board of Directors, or (iii) by the stockholders; provided, however, that if a Change in Control (as defined in this Section 3) has occurred and
the person seeking indemnification so requests, such determination (and determination under Sections 5 and 6 of this Article VIII) shall be made in a written opinion rendered by independent legal counsel chosen by the person seeking indemnification
and not reasonably objected to by the Board of Directors (whose fees and expenses shall be paid by the Corporation). To the extent, however, that a director, officer, employee or trustee or former director, officer, employee or trustee has been
successful on the merits or otherwise in defense of any action, suit, proceeding or claim described above, or in defense of any claim, issue or matter therein, he shall be indemnified against expenses (including attorney’s fees and expenses)
incurred by him in connection therewith, without the necessity of authorization in the specific case.
(b) For purposes of the proviso to the second sentence of Section 3(a), “independent legal counsel” shall mean legal counsel other than an attorney, or a firm having associated with it an attorney, who has been
retained by or who has performed services for the Corporation, the Mutual Company or the person seeking indemnification within the previous three years.
(c) A “Change in Control” shall mean a change in control of the Corporation of a nature that would be required to be reported in response to Item 5(f) of Schedule 14A of Regulation
14A promulgated under the Act, whether or not the Corporation is then subject to such reporting requirement; provided that, without limitation, such a change in control shall be deemed to have occurred if (i) any “person” (as such term is
used in sections 13(d) and 14(d) of the Act) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Act), directly or indirectly, of securities of the Corporation representing 35% or more of the combined voting power of
the Corporation’s then outstanding securities without the prior approval of at least two-thirds of the members of the Board of Directors in office immediately prior to such acquisition, or (ii) the Corporation is a party to a merger,
consolidation, sale of assets or other reorganization, or proxy contest, as a consequence of which
II-2
members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of Directors thereafter, or (iii) during any period of two
consecutive years, individuals who at the beginning of such period constituted the Board of Directors (including for this purpose any new director whose election or nomination for election by the Corporation’s stockholders was approved by a
vote of at least two-thirds of the directors then still in office who were directors at the beginning of the period) cease for any reason to constitute at least a majority of the Board of Directors.
SECTION 4. GOOD FAITH DEFINED, ETC.
(a) For purposes of any determination under Section 3 of this Article VIII, a person shall be deemed to have acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of the Corporation, or, with respect to any criminal action or proceeding, to have had no reasonable cause to believe his conduct was unlawful, if such person relied on the records or books of
account of the Corporation, the Mutual Company or another enterprise, or on information supplied to him by the officers of the Corporation, the Mutual Company or another enterprise, or on information or records given or reports made to the
Corporation, the Mutual Company or another enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Corporation, the Mutual Company or another enterprise. The term “another
enterprise” as used in this Section 4(a) shall mean any other corporation or any partnership, joint venture, trust, employee benefit plan or other enterprise of which such person is or was serving at the request of the Corporation or the Mutual
Company as a director, officer, employee or trustee.
(b) The termination of any action, suit,
proceeding or claim by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to
be in or not opposed to the best interests of the Corporation, or, with respect to any criminal action or proceeding, that he had no reasonable cause to believe that his conduct was unlawful.
(c) References in this Article VIII to “penalties” include any excise taxes assessed on a person with respect to an employee benefit plan;
references in this Article VIII to “serving at the request of the Corporation or the Mutual Company” include any service as a director, officer or employee or former director, officer or employee of the Corporation or the Mutual Company
which imposes duties on, or involves services by, such person with respect to an employee benefit plan or its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in or not opposed to the
best interests of the participants or beneficiaries of such an employee benefit plan shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Corporation.
(d) The provisions of this Section 4 shall not be deemed to be exclusive or to limit in any way the circumstances in
which a person may be deemed to have met the applicable standard of conduct set forth in Section 1 or 2 of this Article VIII, as the case may be.
SECTION 5. RIGHT TO INDEMNIFICATION UPON APPLICATION; PROCEDURE UPON APPLICATION; ETC. Except as otherwise provided in the proviso to Section 2 of this
Article VIII:
(a) Any indemnification under Section 1 or 2 of this Article VIII shall be made no later
than 45 days after receipt by the Corporation of the written request of the director, officer, employee or trustee or former director, officer, employee or trustee unless a determination is made within said 45-day period in accordance with
Section 3 of this Article VIII that such person has not met the applicable standard of conduct set forth in Section 1 or 2 of this Article VIII.
(b) The right to indemnification under Section 1 or 2 of this Article VIII or advances under Section 6 of this Article VIII shall be enforceable by the director, officer, employee or trustee
or former director, officer, employee or trustee in any court of competent jurisdiction. Following a Change in Control, the burden of proving that indemnification is not appropriate shall be on the Corporation. Neither the absence of any prior
II-3
determination that indemnification is proper in the circumstances, nor a prior determination that indemnification is not proper in the circumstances, shall be a defense to the action or create a
presumption that the director, officer, employee or trustee or former director, officer, employee or trustee has not met the applicable standard of conduct. The expenses (including attorney’s fees and expenses) incurred by the director,
officer, employee or trustee or former director, officer, employee or trustee in connection with successfully establishing his right to indemnification, in whole or in part, in any such action (or in any action or claim brought by him to recover
under any insurance policy or policies referred to in Section 9 of this Article VIII) shall also be indemnified by the Corporation.
(c) If any person is entitled under any provision of this Article VIII to indemnification by the Corporation for some or a portion of expenses, judgments, fines, penalties or amounts paid in settlement incurred by
him, but not, however, for the total amount thereof, the Corporation shall nevertheless indemnify such person for the portion of such expenses, judgments, fines, penalties and amounts to which he is entitled.
SECTION 6. EXPENSES PAYABLE IN ADVANCE. Expenses (including attorney’s fees and
expenses) incurred by a director, officer, employee or trustee or a former director, officer, employee or trustee in defending, investigating, preparing to defend, or being or preparing to be a witness in, a threatened or pending action, suit,
proceeding or claim against him, whether civil or criminal, may be paid by the Corporation in advance of the final disposition of such action, suit, proceeding or claim upon receipt by the Corporation of a written request therefor and a written
undertaking by or on behalf of the director, officer, employee or trustee or former director, officer, employee or trustee to repay such amounts if it shall be determined in accordance with Section 3 of this Article VIII that he is not entitled to
be indemnified by the Corporation; provided, however, that if he seeks to enforce his rights in a court of competent jurisdiction pursuant to Section 5(b) of this Article VIII, said undertaking to repay shall not be applicable or enforceable unless
and until there is a final court determination that he is not entitled to indemnification as to which all rights of approval have been exhausted or have expired.
SECTION 7. CERTAIN PERSONS NOT ENTITLED TO INDEMNIFICATION. Notwithstanding any other provision of this Article VIII, no person shall be entitled to
indemnification under this Article VIII or to advances under Section 6 of this Article VIII with respect to any action, suit, proceeding or claim brought or made by him against the Corporation or the Mutual Company, other than an action, suit,
proceeding or claim seeking, or defending such person’s right to, indemnification and/or expense advances pursuant to this Article VIII or otherwise.
SECTION 8. NON-EXCLUSIVITY AND SURVIVAL OF INDEMNIFICATION. The provisions of this Article VIII shall not be deemed exclusive of any other rights to which
the person seeking indemnification or expense advances may be entitled under any agreement, contract, or vote of stockholders or disinterested directors, or pursuant to the direction (howsoever embodied) of any court of competent jurisdiction, or
otherwise, both as to action in his official capacity and as to action in another capacity while holding such office. Except as otherwise provided in Section 7 of this Article VIII, but notwithstanding any other provision of this Article VIII, it is
the policy of the Corporation that indemnification of and expense advances to the persons specified in Sections 1 and 2 of this Article VIII shall be made to the fullest extent permitted by law, and, accordingly, in the event of any change in law,
by legislation or otherwise, permitting greater indemnification of and/or expense advances to any such person, the provisions of this Article VIII shall be construed so as to require such greater indemnification and/or expense advances. The
provisions of this Article VIII shall not be deemed to preclude the indemnification of any person who is not specified in Section 1 or 2 of this Article VIII but whom the Corporation has the power to indemnify under the provisions of the General
Corporation Law of the State of Delaware or otherwise. The provisions of this Article VIII shall continue as to a person who has ceased to be a director, officer, employee or trustee and shall inure to the benefit of the heirs, executors and
administrators of such person.
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SECTION 9. INSURANCE. The Corporation may purchase and maintain at its
expense insurance on behalf of any person who is or was a director, officer or employee of the Corporation or the Mutual Company or is or was serving at the request of the Corporation or the Mutual Company as a director, officer, employee or trustee
of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise against any liability or expense asserted against or incurred by him in any such capacity, or arising out of his status as such, whether or not the
Corporation would have the power or the obligation to indemnify him against such liability or expense under the provisions of this Article VIII or the provisions of Section 145 of the General Corporation Law of the State of Delaware. The Company
shall not be obligated under this Article VIII to make any payment in connection with any claim made against any person if and to the extent that such person has actually received payment therefor under any insurance policy or policies.
SECTION 10. SUCCESSORS; MEANING OF “CORPORATION.” This
Article VIII shall be binding upon and enforceable against any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business and/or assets of the Corporation. For purposes of this Article
VIII, but subject to the provisions of any agreement relating to any merger or consolidation of the kind referred to in clause (i) below or of any agreement relating to the acquisition of any corporation of the kind referred to in clause (ii) below,
references to “the Corporation” shall include (i) any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger with the Corporation which, if its separate existence had continued, would
have had power and authority to indemnify its directors, officers and employees, so that any person who is or was a director, officer or employee of such constituent corporation, or is or was serving at the request of such constituent corporation as
a director, officer, employee or trustee of another corporation, partnership, joint venture, trust, employee benefit plan or other enterprise, shall stand in the same position under the provisions of this Article VIII with respect to the Corporation
as he would have with respect to such constituent corporation if its separate existence had continued; and (ii) any corporation of which at least a majority of the voting power (as represented by its outstanding stock having voting power generally
in the election of directors) is owned directly or indirectly by the Corporation.
SECTION
11. SEVERABILITY. The provisions of this Article VIII shall be severable in the event that any provision hereof (including any provision within a single section, subsection, clause, paragraph or
sentence) is held invalid, void or otherwise unenforceable on any ground by any court of competent jurisdiction. In the event of any such holding, the remaining provisions of this Article VIII shall continue in effect and be enforceable to the
fullest extent permitted by law.
Insofar as indemnification for liabilities arising under the Securities Act of
1933, as amended, may be permitted to directors, officers or persons controlling the Registrant pursuant to the foregoing provisions, the Registrant has been informed that in the opinion of the Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is therefore unenforceable.
UnumProvident also maintains
insurance on its directors and officers, which covers liabilities under federal securities laws.
UnumProvident
Corporation, as depositor, has agreed in each Declaration of Trust to (i) reimburse the Trustees of each trust for all reasonable expenses (including reasonable fees and expenses of counsel and other experts) and (ii) indemnify, defend and hold
harmless the Trustees and any of the officers, directors, employees and agents of the Trustees (the “Indemnified Persons”) from and against any and all losses, damages, liabilities, claims, actions, suits, costs, expenses, disbursements
(including the reasonable fees and expenses of counsel), taxes and penalties of any kind and nature whatsoever (collectively, “Expenses”), to the extent that such Expenses arise out of, or are imposed upon, or asserted at any time against,
such Indemnified Persons with respect to the performance of the Declaration of Trust, the creation, operation or termination of a trust or the transactions contemplated thereby; provided, however, that UnumProvident Corporation shall not be required
to indemnify any Indemnified Person for any Expenses which are a result of the willful misconduct, bad faith or gross negligence of such Indemnified Person.
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ITEM 16. EXHIBITS
| 1.1 |
Form of Underwriting Agreement for senior debt securities. * | |
| 1.2 |
Form of Underwriting Agreement for subordinated debt securities. * | |
| 1.3 |
Form of Underwriting Agreement for preferred stock. * | |
| 1.4 |
Form of Underwriting Agreement for depositary shares. * | |
| 1.5 |
Form of Underwriting Agreement for common stock. * | |
| 1.6 |
Form of Underwriting Agreement for stock purchase contracts. * | |
| 1.7 |
Form of Underwriting Agreement for units. * | |
| 1.8 |
Form of Underwriting Agreement for warrants. * | |
| 1.9 |
Form of Underwriting Agreement for preferred securities. * | |
| 3.1 |
Restated Certificate of Incorporation (incorporated by reference to Exhibit 3.1 to our Annual Report on Form 10-K
(File No. 1-11834) for the year ended December 31, 2000). | |
| 3.2 |
Amended and Restated Bylaws (incorporated by reference to Exhibit 3.2 to our Annual Report on Form 10-K (File No.
1-11834) for the year ended December 31, 2000). | |
| 4.1 |
Indenture for senior debt securities dated as of March 9, 2001. | |
| 4.2 |
Form of Indenture for subordinated debt securities (incorporated by reference to Exhibit 4.2 to our Registration
Statement on Form S-3 (Registration No. 333-43808) filed on August 15, 2000). | |
| 4.3 |
Form of preferred stock designations. * | |
| 4.4 |
Form of Depositary Agreement. * | |
| 4.5 |
Form of Depositary Receipt. * | |
| 4.6 |
Form of Senior Debt Security. * | |
| 4.7 |
Form of Subordinated Debt Security. * | |
| 4.8 |
Form of Warrant Agreement. * | |
| 4.9 |
Form of Preferred Security (included in Exhibit 4.19). | |
| 4.10 |
Form of Purchase Contract Agreement (including the form of the Security Certificate). * | |
| 4.11 |
Form of Pledge Agreement. * | |
| 4.12 |
Form of Unit Agreement (including form of unit certificate). * | |
| 4.13 |
Certificate of Trust of UnumProvident Financing Trust II (incorporated by reference to Exhibit 4.12 to our
Registration Statement on Form S-3 (Registration No. 333-43808) filed on August 15, 2000). | |
| 4.14 |
Certificate of Trust of UnumProvident Financing Trust III (incorporated by reference to Exhibit 4.13 to our
Registration Statement on Form S-3 (Registration No. 333-43808) filed on August 15, 2000). | |
| 4.15 |
Declaration of Trust of UnumProvident Financing Trust II (incorporated by reference to Exhibit 4.14 to our
Registration Statement on Form S-3 (Registration No. 333-43808) filed on August 15, 2000). | |
| 4.16 |
Amendment No. 1 to Declaration of Trust of UnumProvident Financing Trust II. | |
| 4.17 |
Declaration of Trust of UnumProvident Financing Trust III (incorporated by reference to Exhibit 4.15 to our
Registration Statement on Form S-3 (Registration No. 333-43808) filed on August 15, 2000). | |
| 4.18 |
Amendment No. 1 to Declaration of Trust of UnumProvident Financing Trust III. | |
| 4.19 |
Form of Amended and Restated Declaration of Trust for each of UnumProvident Financing Trust II and UnumProvident
Financing Trust III (incorporated by reference to Exhibit 4.16 to our Registration Statement on Form S-3 (Registration No. 333-43808) filed on August 15, 2000). |
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| 4.20 |
Form of Preferred Securities Guarantee (incorporated by reference to Exhibit 4.17 to our Registration Statement on
Form S-3 (Registration No. 333-43808) filed on August 15, 2000). | |
| 4.21 |
Form of Expense Agreement (included in Exhibit 4.19). | |
| 5.1 |
Opinion of Alston & Bird LLP regarding legality of the securities. | |
| 5.2 |
Opinion of Richards, Layton & Finger, P.A. regarding legality of the Preferred Securities of UnumProvident
Financing Trust II. | |
| 5.3 |
Opinion of Richards, Layton & Finger, P.A. regarding legality of the Preferred Securities of UnumProvident
Financing Trust III. | |
| 8.1 |
Opinion of Alston & Bird LLP regarding certain tax consequences. * | |
| 12.1 |
Statement regarding computation of ratio of earnings to fixed charges (incorporated by reference to Exhibit 12.1 to
our Quarterly Report on Form 10-Q (File No. 1-11834) for the quarter ended June 30, 2002). | |
| 12.2 |
Statement regarding computation of ratios of earnings to combined fixed charges and preferred stock dividends
(incorporated by reference to Exhibit 12.2 to our Quarterly Report on Form 10-Q (File No. 1-11834) for the quarter ended June 30, 2002). | |
| 15.1 |
Letter of Ernst & Young LLP regarding unaudited information. | |
| 23.1 |
Consent of Ernst & Young LLP. | |
| 23.2 |
Consent of Alston & Bird LLP (included in Exhibit 5.1). | |
| 23.3 |
Consent of Alston & Bird LLP (included in Exhibit 8.1). | |
| 23.4 |
Consent of Richards, Layton & Finger, P.A. (included in Exhibits 5.2 and 5.3). | |
| 24.1 |
Powers of Attorney (included on signature page of this Registration Statement). | |
| 25.1 |
Statement of Eligibility and Qualification of Trustee on Form T-1 under the Trust Indenture Act of 1939, as amended,
of JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank) as Trustee for the Senior Indenture for the Senior Debt Securities. | |
| 25.2 |
Statement of Eligibility and Qualification of Trustee on Form T-1 under the Trust Indenture Act of 1939, as amended,
of JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank) as Trustee under the Subordinated Indenture for the Subordinated Debt Securities. | |
| 25.3 |
Statement of Eligibility and Qualification of Trustee on Form T-1 under the Trust Indenture Act of 1939, as amended,
of JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank) as Property Trustee for the Amended and Restated Declaration of Trust of UnumProvident Financing Trust II. | |
| 25.4 |
Statement of Eligibility and Qualification of Trustee on Form T-1 under the Trust Indenture Act of 1939, as amended,
of JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), as Property Trustee for the Amended and Restated Declaration of Trust of UnumProvident Financing Trust III. | |
| 25.5 |
Statement of Eligibility and Qualification of Trustee on Form T-1 under the Trust Indenture Act of 1939, as amended,
of JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), as Guarantee Trustee under the Preferred Securities Guarantee for the benefit of the holders of the Preferred Securities of UnumProvident Financing Trust II. |
|
| 25.6 |
Statement of Eligibility and Qualification of Trustee on Form T-1 under the Trust Indenture Act of 1939, as amended,
of JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), as Guarantee Trustee under the Preferred Securities Guarantee for the benefit of the holders of the Preferred Securities of UnumProvident Financing Trust III. |
* |
To be filed by amendment or as an exhibit to a document to be incorporated by reference herein in connection with an offering of the offered securities.
|
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ITEM 17. UNDERTAKINGS
(a) The undersigned Registrants hereby undertake:
(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:
(i) to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) to reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent
post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in the volume of securities
offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the
Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the
effective Registration Statement;
(iii) to include any material information with
respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement;
provided, however, that paragraphs (a)(1)(i) and (a)(1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports
filed by the Registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the Registration Statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be
a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the
termination of the offering.
(b) The undersigned Registrants hereby undertake that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the Registrant’s annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference in the Registration
Statement shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
(c) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the Registrants pursuant to the foregoing provisions, or otherwise, the Registrants have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed
in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by a Registrant of expenses incurred or paid by a director, officer or controlling person
of a Registrant in the successful defense of any action, suit or proceeding) is asserted against a Registrant by such director, officer or controlling person in connection with the securities being registered, a Registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
(d) The undersigned Registrants hereby undertake to file an
application for the purpose of determining the eligibility of the Trustee to act under subsection (a) of Section 310 of the Trust Indenture Act in accordance with the rules and regulations prescribed by the Securities and Exchange Commission under
Section 305(b)(2) of the Act, if necessary.
II-8
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, each Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for
filing on Form S-3 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Chattanooga, State of Tennessee, on October 31, 2002.
| UNUMPROVIDENT CORPORATION | ||
| By: |
/s/ J. Harold Chandler | |
| J. Harold Chandler Chairman, President
and Chief Executive Officer | ||
| UNUMPROVIDENT FINANCING TRUST II | ||
| By: |
UnumProvident Corporation, as depositor /s/ J. Harold Chandler | |
| J. Harold Chandler Chairman, President
and Chief Executive Officer | ||
| UNUMPROVIDENT FINANCING TRUST III | ||
| By: |
UnumProvident Corporation, as depositor /s/ J. Harold Chandler | |
| J. Harold Chandler Chairman, President
and Chief Executive Officer | ||
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints F. Dean Copeland and Susan N.
Roth, and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any or all amendments
(including post-effective amendments) to this Registration Statement, and to file the same, with all exhibits thereto and other documents in connection therewith, including any Registration Statement filed pursuant to Rule 462(b) of the Securities
Act of 1933, as amended, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or any of them, or their or his or her substitutes, may lawfully do or
cause to be done by virtue hereof.
II-9
Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the capacities indicated as of October 31, 2002.
| Signature |
Title |
Date | ||
| /S/ J. Harold Chandler J. Harold Chandler |
Director, President and Chief Executive Officer |
October 31, 2002 | ||
| /S/ Thomas R. Watjen Thomas R. Watjen |
Vice Chairman and Chief Operating Officer |
October 31, 2002 | ||
| /S/ Robert C. Greving Robert C. Greving |
Senior Vice President and Chief Financial Officer |
October 31, 2002 | ||
| /S/ William L.
Armstrong William L. Armstrong |
Director |
October 31, 2002 | ||
| Jon S. Fossel |
Director |
|||
| /S/ Ronald E. Goldsberry Ronald E. Goldsberry |
Director |
October 31, 2002 | ||
| /S/ Hugh O. Maclellan, Jr. Hugh O. Maclellan, Jr. |
Director |
October 31, 2002 | ||
| /S/ A.S. MacMillan, Jr. A.S. (Pat) MacMillan, Jr. |
Director |
October 31, 2002 | ||
| /S/ George J. Mitchell George J. Mitchell |
Director |
October 31, 2002 | ||
| /S/ Cynthia A. Montgomery Cynthia A. Montgomery |
Director |
October 31, 2002 | ||
| C. William Pollard |
Director |
|||
| /S/ Lawrence R. Pugh Lawrence R. Pugh |
Director |
October 31, 2002 | ||
| /S/ Lois D. Rice Lois Dickson Rice |
Director |
October 31, 2002 | ||
| /S/ John W. Rowe John W. Rowe |
Director |
October 31, 2002 |
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