ALLEGHENY TECHNOLOGIES
INCORPORATED
THE BANK OF NEW YORK MELLON,
as Trustee
FIRST SUPPLEMENTAL
INDENTURE
$350,000,000 principal amount of
9.375% Senior Notes due 2019
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2
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SECTION 1.01. Capitalized Terms
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2
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2
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SECTION 1.03. Definitions
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2
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GENERAL TERMS AND CONDITIONS OF THE
NOTES
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SECTION 2.01. Designation and Principal
Amount
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SECTION 2.03. Form and Payment
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SECTION 3.01. Limitation on Liens
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SECTION 3.02. Limitation on Sale and Leaseback
Transactions
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SECTION 3.03. Limitation on
Guarantees
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7
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SECTION 4.01. Optional Redemption
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SECTION 4.02. Purchase of Notes Upon a Change of
Control Repurchase Event
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9
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12
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SECTION 6.01. Ratification of Base
Indenture
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12
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SECTION 6.02. Trust Indenture Act
Controls
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12
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SECTION 6.03. Conflict with Indenture
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SECTION 6.04. Governing Law
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SECTION 6.06. Counterparts
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13
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SECTION 6.07. Trustee Disclaimer
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ii
FIRST SUPPLEMENTAL
INDENTURE
FIRST SUPPLEMENTAL
INDENTURE, dated as of June 1, 2009 (the “
Supplemental Indenture ”), to the Base Indenture
(defined below) between Allegheny Technologies Incorporated, a
corporation duly organized and existing under the laws of Delaware
(herein called the “ Company ”), and The Bank of
New York Mellon, a New York banking corporation, as Trustee under
the Indenture (herein called the “ Trustee
”).
WHEREAS,
the Company has heretofore executed and delivered to the Trustee an
Indenture, dated as of June 1, 2009 (the “ Base
Indenture ”), providing for the issuance from time to
time of its Securities (as defined in the Base Indenture), to be
issued in one or more series as therein provided;
WHEREAS,
Sections 2.01, 3.01 and 9.01 of the Base Indenture provide
that the Company, when authorized by an Establishment Action (as
defined in the Base Indenture), and the Trustee may, without the
consent of the Holders (as defined in the Base Indenture) of
Securities, enter into one or more supplemental indentures, in form
satisfactory to the Trustee, to establish the form or terms of
Securities of any series permitted by the Base
Indenture;
WHEREAS,
pursuant to the terms of the Base Indenture, the Company desires to
provide for the establishment of a new series of its Securities to
be known as its 9.375% Senior Notes due 2019 (the “
Notes ”), the form and substance of such Notes and the
terms, provisions and conditions thereof to be set forth as
provided in the Base Indenture and this Supplemental Indenture
(together, the “ Indenture ”);
WHEREAS,
the Company has duly authorized the creation and issuance of such
Notes under the Base Indenture, and has duly authorized the
execution and delivery of this Supplemental Indenture to modify the
Base Indenture and to provide certain additional provisions as
hereinafter described; and
WHEREAS,
the Company has requested that the Trustee execute and deliver this
Supplemental Indenture, and all requirements necessary to make this
Supplemental Indenture a valid instrument in accordance with its
terms, and to make the Notes, when executed by the Company and
authenticated and delivered by the Trustee, the valid and legally
binding obligations of the Company, and all acts and things
necessary have been done and performed to make this Supplemental
Indenture enforceable in accordance with its terms, and the
execution and delivery of this Supplemental Indenture has been duly
authorized in all respects.
NOW,
THEREFORE, for and in consideration of the premises contained
herein, each party agrees for the benefit of each other party and
for the equal and ratable benefit of the Holders of the Notes, as
follows:
SECTION
1.01. Capitalized Terms. Capitalized terms used but not
defined in this Supplemental Indenture shall have the meanings
ascribed to them in the Base Indenture.
SECTION
1.02. References. References in this Supplemental Indenture
to article and section numbers shall be deemed to be references to
article and section numbers of this Supplemental Indenture unless
otherwise specified.
SECTION
1.03. Definitions. For purposes of this Supplemental
Indenture, the following terms have the meanings ascribed to them
as follows:
“
Attributable Debt ” in respect of a Sale and Leaseback
Transaction means, as of any particular time, the present value
(discounted at the rate of interest implicit in the terms of the
lease involved in such Sale and Leaseback Transaction, as
determined by the Company in good faith) of the obligation of the
lessee thereunder for net rental payments (excluding, however, any
amounts required to be paid by the lessee, whether or not
designated as rent or additional rent, on account of maintenance
and repairs, services, insurance, taxes, assessments, water rates
or similar charges and any amounts required to be paid by the
lessee thereunder contingent upon monetary inflation or the amount
of sales, maintenance and repairs, insurance, taxes, assessments,
water rates or similar charges) during the remaining term of that
lease (including any period for which that lease has been extended
or may, at the option of the lessor, be extended).
“
Base Indenture ” has the meaning provided in the
recitals.
“
Change of Control ” has the meaning provided in
Section 4.02.
“
Change of Control Repurchase Event ” has the meaning
provided in Section 4.02.
“
Comparable Treasury Issue ” has the meaning provided
in Section 4.01.
“
Comparable Treasury Price ” has the meaning provided
in Section 4.01.
“
Consolidated Net Tangible Assets ” means the total of
all the assets appearing on the consolidated balance sheet of the
Company and its Subsidiaries, less the following: (A) current
liabilities; (B) intangible assets such as goodwill,
trademarks, trade names, patents and unamortized debt discount and
expense; and (C) appropriate adjustments on account of
minority interests of other Persons holding stock in any Subsidiary
of the Company.
“
Debt ” means indebtedness for money
borrowed.
“
Depositary ” has the meaning provided in
Section 2.03.
“
Domestic Subsidiary ” means a Subsidiary formed under
the laws of, or conducting its principal operations within, the
United States or any State or territory thereof.
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“
Guarantee ” means any obligation, contingent or
otherwise, of any Person directly or indirectly guaranteeing any
Debt or other obligation of any other Person and, without limiting
the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt or other obligation of such other Person
(whether arising by virtue of partnership arrangements, or by
agreement to keep-well, to purchase assets, goods, securities or
services, to take-or-pay, or to maintain financial statement
conditions or otherwise) or (ii) entered into for purposes of
assuring in any other manner the obligee of such Debt or other
obligation of the payment thereof or to protect such obligee
against loss in respect thereof, in whole or in part;
provided that the term “Guarantee” does not
include endorsements for collection or deposit in the ordinary
course of business. The term “Guarantee” used as a verb
has a corresponding meaning.
“
Independent Investment Banker ” has the meaning
provided in Section 4.01.
“
Indenture ” has the meaning provided in the
recitals.
“
Interest Payment Date ” has the meaning provided in
Section 2.04.
“
Investment Grade ” has the meaning provided in
Section 4.02.
“
Lien ” means any mortgage, pledge, lien, encumbrance,
charge or security interest of any kind, excluding certain liens
relating to taxes, easements and similar liens arising in the
ordinary course of business.
“
Moody’s ” has the meaning provided in
Section 4.02.
“
Notes ” has the meaning provided in the
recitals.
“
Primary Treasury Dealer ” has the meaning provided in
Section 4.01.
“
Principal Property ” means any manufacturing plant or
other similar facility owned by the Company or any Domestic
Subsidiary, the book value of the real property, plant and
equipment of which (as shown, without deduction of any depreciation
reserves, on the books of the owner or owners) is not less than two
percent of Consolidated Net Tangible Assets except (A) any
such plant or facility which the Board of Directors determines is
not of material importance to the total business conducted, or
assets owned, by the Company and its Domestic Subsidiaries as an
entirety or (B) any portion of any such plant or facility
which the Board of Directors determines not to be of material
importance to the use or operation thereof.
“
Purchase Price ” has the meaning provided in
Section 4.02.
“
Rating Agency ” has the meaning provided in
Section 4.02.
“
Rating Category ” has the meaning provided in
Section 4.02.
“
Rating Date ” has the meaning provided in
Section 4.02.
3
“
Ratings Event ” has the meaning provided in
Section 4.02.
“
Redemption Date ” has the meaning provided in
Section 4.02.
“
Reference Treasury Dealer ” has the meaning provided
in Section 4.01.
“
Reference Treasury Dealer Quotations ” has the meaning
provided in Section 4.01.
“
Regular Record Date ” has the meaning provided in
Section 2.04.
“
Remaining Life ” has the meaning provided in
Section 4.01.
“
S&P ” has the meaning provided in
Section 4.02.
“
Sale and Leaseback Transaction ” means any arrangement
with any Person providing for the leasing to the Company or any
Domestic Subsidiary of any Principal Property or portion thereof
(except for temporary leases for a term, including any renewal
thereof, of not more than 36 months and except for leases
between the Company and a Subsidiary or between Subsidiaries),
which Principal Property (or portion thereof) has been or is to be
sold or transferred by the Company or such Domestic Subsidiary to
such Person.
“
Subsidiary ” means with respect to any Person, any
corporation, association or other business entity of which more
than 50% of the outstanding voting stock is owned, directly or
indirectly, by such Person and one or more Subsidiaries of such
Person (or combination thereof). Unless otherwise specified,
“Subsidiary” means a Subsidiary of the
Company.
“
Supplemental Indenture ” has the meaning provided in
the preamble.
“
Treasury Rate ” has the meaning provided in
Section 4.01.
“
Voting Stock ” has the meaning provided in
Section 4.02.
GENERAL TERMS AND CONDITIONS OF
THE NOTES
SECTION
2.01. Designation and Principal Amount. The Notes are hereby
authorized and are designated the 9.375% Senior Notes due 2019,
initially limited in aggregate principal amount to $350,000,000.
The Notes issued on the date hereof pursuant to the terms of this
Indenture shall be in an aggregate principal amount of
$350,000,000, which amount shall be set forth in the Company Order
for the authentication and delivery of the Notes pursuant to
Section 3.03 of the Base Indenture. In addition, the Company
may issue, from time to time in accordance with the provisions of
this Indenture, additional Notes having the same terms and
conditions as the Notes issued on the date hereof in all respects
(except for the payment of interest accruing prior to the issue
date of such additional Notes), so that such additional
Notes
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shall be
consolidated and form a single series with the Notes issued on the
date hereof and shall be governed by the terms of the
Indenture.
SECTION
2.02. Maturity. The principal amount of the Notes shall be
due and payable on June 1, 2019.
SECTION
2.03. Form and Payment. The Notes shall be issued in
substantially the form set forth on Exhibit A hereto and shall
have the terms set forth in such form and shall initially be Global
Securities for purposes of the Base Indenture. The Notes shall be
issued in fully registered book-entry form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess
thereof.
The
Depositary in respect of the Notes represented by Global Securities
shall be The Depository Trust Company. The Global Securities
representing the Notes shall be deposited with, or on behalf of,
the Depositary and shall be registered in the name of its nominee,
Cede & Co. Except as otherwise set forth in Section 3.05
of the Base Indenture, the Global Securities may be transferred, in
whole and not in part, only to another nominee of the Depositary or
to a successor of the Depositary or its nominee.
The
Trustee shall act as Paying Agent for the Notes. The Company may
choose to pay interest by mailing checks or making wire transfers.
All money paid by the Company to any Paying Agent that remains
unclaimed at the end of two years after the amount is due to
Holders shall be repaid to the Company, subject to any applicable
abandoned property laws. After such two-year period, Holders may
look only to the Company for payment and not to the Trustee, any
other Paying Agent or anyone else. The Company may also arrange for
additional payment offices, and may cancel or change these offices,
including any use of the Trustee’s Corporate Trust Office.
The Company may appoint and change the Paying Agent without prior
notice to the Holders.
SECTION
2.04. Interest. Interest on the Notes shall accrue at the
rate of 9.375% per annum. Interest on the Notes shall accrue from
June 1, 2009 or the most recent Interest Payment Date to which
interest was paid or duly provided for. Interest on the Notes shall
be payable semiannually in arrears on June 1 and December 1,
commencing on December 1, 2009 (each an “ Interest
Payment Date ”), to the Holders in whose names the Notes
are registered at the close of business on the May 15 and
November 15 immediately preceding such Interest Payment Date
(each a “ Regular Record Date ”). Interest on
the Notes shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.
SECTION
2.05. No Sinking Fund . The provisions of Article XII
of the Base Indenture shall not be applicable to the
Notes.
5
In
addition to the covenants set forth in Article X of the Base
Indenture, the Company also covenants and agrees for the benefit of
Notes, but not Securities of any other series, as
follows:
SECTION
3.01. Limitation on Liens. The Company shall not, and will
not permit any of its Domestic Subsidiaries, directly or
indirectly, to issue, assume or guarantee any Debt if that Debt is
secured by any Lien upon any Principal Property (or portion
thereof) of the Company or of any Domestic Subsidiary of the
Company or any shares of stock or Debt of any of its Domestic
Subsidiaries, whether owned on June 1, 2009 or thereafter
acquired, without effectively securing the Notes equally and
ratably with that Debt, so long as such Debt is so secured. The
foregoing restriction does not apply to:
(i) Liens on any
property acquired, constructed or improved by the Company or any
Domestic Subsidiary of the Company after June 1, 2009, which
are created or assumed contemporaneously with or within three years
after its acquisition, or completion of construction or improvement
(or within six months thereafter pursuant to a firm commitment for
financing arrangements entered into within that three-year period)
to secure or provide for the payment of the Purchase Price or cost
thereof, or Liens existing on any property at the time of its
acquisition;
(ii) Liens
existing on any property, shares of stock or indebtedness acquired
from a Person merged with or into the Company or a Domestic
Subsidiary of the Company after June 1, 2009;
(iii) with respect
to any corporation that becomes a Domestic Subsidiary of the
Company after June 1, 2009, Liens on property of, or shares of
stock or indebtedness issued by, any such corporation existing at
the time it becomes a Domestic Subsidiary and not incurred in
connection with or in anticipation of such corporation becoming a
Domestic Subsidiary;
(iv) Liens to
secure Debt of a Domestic Subsidiary owed to the Company or Debt of
one of the Domestic Subsidiaries of the Company owed to another
Domestic Subsidiary of the Company;
(v) Liens in favor
of governmental bodies to secure partial, progress, advance or
other payments pursuant to any contract or statute;
(vi) any Lien
existing on June 1, 2009; or
(vii) Liens for
the sole purpose of extending, renewing or replacing Debt, in whole
or in part, secured by any Lien referred to in the foregoing
clauses (i) to (vi), inclusive; provided ,
however , that the principal amount of Debt secured by that
Lien shall not exceed the principal amount of Debt so secured at
the time of such extension, renewal or
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replacement,
and that such extension, renewal or replacement shall be limited to
the property that secured the Lien so extended, renewed or replaced
(plus improvements on such property).
The
limitation on Liens described in this Section 3.01 shall not
apply to the issuance, assumption or guarantee by the Company or
any Domestic Subsidiary of the Company of Debt secured by a Lien
which would otherwise be subject to the foregoing restrictions up
to an aggregate amount which, together with all other Debt of the
Company and of the Domestic Subsidiaries of the Company secured by
Liens (not including Liens permitted under the foregoing
exceptions) and the Attributable Debt with respect to Sale and
Leaseback Transactions existing at that time (other than Sale and
Leaseback Tran
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