Exhibit 4.1
EXECUTION COPY
TYCO ELECTRONICS GROUP
S.A.,
as Issuer
AND
TYCO ELECTRONICS
LTD.,
as Guarantor
AND
DEUTSCHE BANK TRUST
COMPANY AMERICAS,
as Trustee
FOURTH
SUPPLEMENTAL INDENTURE
Dated as of July 14, 2008
$300,000,000 of 5.950%
Senior Notes due 2014
THIS FOURTH
SUPPLEMENTAL INDENTURE is dated as of July 14, 2008 among TYCO
ELECTRONICS GROUP S.A., a Luxembourg company (the “
Company ”), TYCO ELECTRONICS LTD., a Bermuda company
(“ Parent ”), and DEUTSCHE BANK TRUST COMPANY
AMERICAS, a New York banking corporation (the “
Trustee ”).
RECITALS
A.
Parent, the Company and the Trustee executed and delivered an
Indenture, dated as of September 25, 2007, (the “
Base Indenture ”), to provide for the issuance by the
Company from time to time of unsubordinated debt securities
evidencing its unsecured indebtedness.
B.
Pursuant to Board Resolution, the Company has authorized the
issuance of the $300,000,000 principal amount of 5.950% Senior
Notes due 2014 (the “ Offered Securities ”).
C.
The entry into this Fourth Supplemental Indenture by the parties
hereto is in all respects authorized by the provisions of the Base
Indenture.
D.
Parent and the Company desire to enter into this Fourth
Supplemental Indenture pursuant to Section 9.01 of the Base
Indenture to establish the terms of the Offered Securities in
accordance with Section 2.01 of the Base Indenture and to
establish the form of the Offered Securities in accordance with
Section 2.02 of the Base Indenture.
E.
All things necessary to make this Fourth Supplemental Indenture a
valid indenture and agreement according to its terms have been
done.
NOW, THEREFORE,
for and in consideration of the foregoing premises, Parent, the
Company and the Trustee mutually covenant and agree for the equal
and proportionate benefit of the respective holders from time to
time of the Offered Securities as follows:
ARTICLE I
Section 1.1.
Terms of Offered Securities
.
The following
terms relate to the Offered Securities:
(1)
The Offered Securities constitute a series of securities having the
title “5.950% Senior Notes due 2014”.
(2)
The initial aggregate principal amount of the Offered Securities
that may be authenticated and delivered under the Base Indenture
(except for Offered Securities authenticated and delivered upon
registration of, transfer of, or in exchange for, or in lieu of,
other Offered Securities pursuant to Section 2.05, 2.06, 2.07,
2.11, or 3.03) is $300,000,000.
(3)
The entire Outstanding principal of the Offered Securities shall be
payable on January 15, 2014.
(4)
(A)
The rate at which the Offered Securities shall bear interest
initially shall be 5.950% per year (the “ Original
Interest Rate ”) payable as set forth in the Offered
Securities, and shall be subject to adjustments as provided in
Section 1.1(4)(B). The date from which interest shall
accrue on the Offered Securities shall be July 14, 2008, or
the most recent Interest Payment Date to which interest has been
paid or provided for. The Interest Payment Dates for the
Offered Securities shall be January 15 and July 15 of
each year, beginning January 15, 2009. Interest shall be
payable on each Interest Payment Date to the holders of record at
the close of business on the January 1 and July 1 prior
to each Interest Payment Date (a “ regular record date
”). The basis upon which interest shall be calculated
shall be that of a 360-day year consisting of twelve 30-day
months.
(B)
The interest rate payable on the Offered Securities shall be
subject to adjustments from time to time if Moody’s, S&P
or Fitch downgrades (or subsequently upgrades) the debt rating
assigned to the Offered Securities as set forth in this
Section 1.1(4)(B). If the rating from Moody’s,
S&P or Fitch of the Offered Securities is decreased to a rating
set forth in the immediately following table, the interest rate on
the Offered Securities shall increase from the Original Interest
Rate by adding the percentage set forth opposite the rating
applicable to the lowest two rating levels assigned to such Offered
Securities by any of Moody’s, S&P and Fitch:
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Rating Agency
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Moody’s
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S&P
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Fitch
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Percentage
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Ba1
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BB+
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BB+
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0.25
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%
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Ba2
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BB
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BB
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0.50
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%
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Ba3
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BB-
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BB-
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0.75
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%
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B1
or below
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B or below
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B or below
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1.00
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%
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If at any time the
interest rate on the Offered Securities has been adjusted upward
and Moody’s, S&P or Fitch, as the case may be,
subsequently increases its rating of the Offered Securities to any
of the threshold ratings set forth above, the interest rate on the
Offered Securities shall be decreased such that the interest rate
for the Offered Securities equals the Original Interest Rate plus
the percentages set forth opposite the ratings from the tables
above in effect immediately following the increase applicable to
the two lowest rating levels assigned to such Offered Securities by
any of Moody’s, S&P or Fitch. If Moody’s
subsequently increases its rating of the Offered Securities to Baa3
or higher, S&P increases its rating to BBB- or higher and Fitch
increases its rating to BBB- or higher, the interest rate on the
Offered Securities will be decreased to the Original Interest
Rate.
Each adjustment
required by any decrease or increase in a rating set forth above,
whether occasioned by the action of Moody’s, S&P or
Fitch, shall be made independent of any and all other adjustments;
provided that in determining any adjustment, the percentage
applicable to the lowest two rating levels assigned to the Offered
Securities by any of Moody’s, S&P and Fitch shall be
used. In no event shall (1) the interest rate for the
Offered Securities be reduced to below the Original Interest Rate
or (2) the total increase in the interest rate on the Offered
Securities exceed 2.00% above the Original Interest
Rate.
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If any two of
Moody’s, S&P or Fitch cease to provide a rating of the
Offered Securities, any subsequent increase or decrease in the
interest rate of the Offered Securities necessitated by a reduction
or increase in the rating by the agency continuing to provide the
rating shall be twice the percentage set forth in the applicable
table above. No adjustments in the interest rate of the
Offered Securities shall be made solely as a result of
Moody’s, S&P or Fitch ceasing to provide a rating.
If Moody’s, S&P and Fitch all cease to provide a rating
of the Offered Securities, the interest rate on the Offered
Securities shall increase to, or remain at, as the case may be,
2.00% above the Original Interest Rate. References to
Moody’s, S&P and Fitch in this
Section 1.1(4)(B) shall be deemed to include any
successors to Moody’s, S&P and Fitch.
Any interest rate
increase or decrease described above will take effect from the
first day of the interest period during which a rating change
requires an adjustment in the interest rate.
The interest rate
on the Offered Security will permanently cease to be subject to any
adjustments described in this
Section 1.1(4)(B) (notwithstanding any subsequent
decrease in the ratings by any or all of Moody’s, S&P or
Fitch or any or all of Moody’s, S&P or Fitch ceasing to
provide ratings) and shall be set at the Original Interest Rate if
the Offered Securities become rated A3, A- or A- or higher by any
two of Moody’s, S&P and Fitch, respectively (or one of
these ratings if only rated by one of Moody’s, S&P and
Fitch), with a stable or positive outlook by both such rating
agencies.
(5)
The Offered Securities shall be issuable in whole in the form of
one or more registered Restricted Global Securities, and the
Depository for such Restricted Global Securities shall be The
Depository Trust Company, New York, New York. The Offered
Securities shall be substantially in the form attached hereto as
Exhibit A the terms of which are herein incorporated by
reference. The Offered Securities shall be issuable in
denominations of $2,000 or any integral multiple of $1,000 in
excess thereof.
(6)
(A)
The Offered Securities will be subject to redemption at the option
of the Company on any date (a “ Redemption Date
”) prior to the maturity date, in whole or from time to time
in part, in $1,000 increments ( provided that any remaining
principal amount thereof shall be at least the minimum authorized
denomination thereof), at a redemption price equal to the greater
of (i) 100% of the principal amount of the Offered Securities
to be redeemed and (ii) as determined by the Quotation Agent
and delivered to the Trustee, the sum of the present values of the
remaining scheduled payments of principal and interest thereon due
on any date after the Redemption Date (based on the Original
Interest Rate and excluding the portion of interest that will be
accrued and unpaid to and including the Redemption Date) discounted
from their scheduled date of payment to the Redemption Date
(assuming a 360-day year consisting of twelve 30-day months) at the
Adjusted Redemption Treasury Rate plus 45 basis points (such
greater amount is referred to herein as the “ Redemption
Price ”), plus accrued and unpaid interest and Special
Interest, if any, thereon to the Redemption Date.
(B)
As used herein:
“
Adjusted Redemption Treasury Rate ”, with respect to
any Redemption Date, means the rate equal to the semiannual
equivalent yield to maturity or interpolated (on a 30/360 day count
basis) yield to maturity of the Comparable Redemption Treasury
Issue, assuming a
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price for the
Comparable Redemption Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Redemption Treasury
Price for such Redemption Date.
“
Comparable Redemption Treasury Issue ” means the
United States Treasury security selected by the Quotation Agent as
having a maturity comparable to the remaining term of the Offered
Securities to be redeemed that will be utilized at the time of
selection and in accordance with customary financial practice in
pricing new issues of corporate debt securities of comparable
maturity to the remaining term of such Offered
Securities.
“
Comparable Redemption Treasury Price ”, with respect
to any Redemption Date, means (i) the average of the
Redemption Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest such Redemption
Reference Treasury Dealer Quotations (unless there is more than one
highest or lowest quotation, in which case only one such highest
and/or lowest quotation shall be excluded), or (ii) if the
Quotation Agent obtains fewer than four such Redemption Reference
Treasury Dealer Quotations, the average of all such Redemption
Reference Treasury Dealer Quotations.
“
Quotation Agent ” means a Redemption Reference
Treasury Dealer appointed as such agent by the Company.
“
Redemption Reference Treasury Dealer ” means four
primary U.S. Government securities dealers in the United
States selected by the Company.
“
Redemption Reference Treasury Dealer Quotations ”,
with respect to each Redemption Reference Treasury Dealer and any
Redemption Date, means the average, as determined by the Quotation
Agent, of the bid and offer prices at 11:00 a.m. New York City
time for the Comparable Redemption Treasury Issue (expressed in
each case as a percentage of its principal amount) for settlement
on the Redemption Date quoted in writing to the Quotation Agent by
such Redemption Reference Treasury Dealer on the third Business Day
preceding such Redemption Date.
(7)
The Offered Securities will not have the benefit of any sinking
fund.
(8)
Except as provided herein, the holders of the Offered Securities
shall have no special rights in addition to those provided in the
Base Indenture upon the occurrence of any particular events.
(9)
The Offered Securities will be general unsecured and unsubordinated
obligations of the Company and will be ranked equally among
themselves.
(10)
The Offered Securities are not convertible into shares of common
stock or other securities of the Company.
(11)
The additional Event of Default and restrictive covenants set forth
in Sections 1.3 and 1.4 shall be applicable to the Offered
Securities.
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Section 1.2
Additional Defined Terms
.
As used herein,
the following defined terms shall have the following meanings with
respect to the Offered Securities only:
“
Accounts Receivable ” of any Person means the accounts
receivable of such Person generated by the sale of inventory to
third-party customers in the ordinary course of
business.
“
Attributable Debt ”, in connection with a Sale and
Lease-Back Transaction, as of any particular time, means the
aggregate of present values (discounted at a rate that, at the
inception of the lease, represents the effective interest rate that
the lessee would have incurred to borrow over a similar term the
funds necessary to purchase the leased assets) of the obligations
of the Company or any Restricted Subsidiary for net rental payments
during the remaining term of the applicable lease, including any
period for which such lease has been extended or, at the option of
the lessor, may be extended. The term “net rental
payments” under any lease of any period shall mean the sum of
the rental and other payments required to be paid in such period by
the lessee thereunder, not including any amounts required to be
paid by such lessee, whether or not designated as rental or
additional rental, on account of maintenance and repairs,
reconstruction, insurance, taxes, assessments, water rates or
similar charges required to be paid by such lessee thereunder or
any amounts required to be paid by such lessee thereunder
contingent upon the amount of sales, maintenance and repairs,
reconstruction, insurance, taxes, assessments, water rates or
similar charges.
“ Below
Investment Grade Rating Event ” means the Offered
Securities are rated below an Investment Grade Rating by at least
two of the Rating Agencies on any date from the date of the public
notice of an arrangement that could result in a Change of Control
until the end of the 60-day period following public notice of the
occurrence of the Change of Control (which 60-day period shall be
extended so long as the rating of the Offered Securities is under
publicly announced consideration for possible downgrade by any of
the Rating Agencies); provided that a Below Investment Grade Rating
Event otherwise arising by virtue of a particular reduction in
rating shall be deemed not to have occurred in respect of a
particular Change of Control (and thus shall be deemed not to be a
Below Investment Grade Rating Event for purposes of the definition
of Change of Control Triggering Event) if the rating agencies
making the reduction in rating to which this definition would
otherwise apply do not publicly announce or publicly confirm or
inform the Trustee in writing at its request that the reduction was
the result, in whole or in part, of any event or circumstance
comprised of or arising as a result of, or in respect of, the
applicable Change of Control (whether or not the applicable Change
of Control shall have occurred at the time of the Below Investment
Grade Rating Event).
“ Change
of Control Triggering Event ” means the occurrence of
both a Change of Control and a Below Investment Grade Rating
Event.
“ Change
of Control ” means the occurrence of any of (1) the
direct or indirect sale, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series
of related transactions, of all or substantially all of the assets
of Parent and its subsidiaries taken as a whole to any person or
group of persons for purposes of Section 13(d) of the
Exchange Act other than Parent or one of its subsidiaries or a
person controlled by Parent or
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one of its
subsidiaries; (2) consummation of any transaction (including
any merger or consolidation) the result of which is that any
“person” (as that term is used in
Section 13(d)(3) of the Exchange Act) other than
Parent’s or its subsidiaries’ employee benefit plans,
becomes the beneficial owner (as defined in
Rules 13(d)(3) and 13(d)(5) under the Exchange Act),
directly or indirectly, of more than 50% of the outstanding voting
stock of Parent, measured by voting power rather than number of
shares; or (3) the replacement of a majority of the board of
directors of Parent over a two-year period from the directors who
constituted the board of directors of Parent at the beginning of
such period, and such replacement shall not have been approved by
at least a majority of the board of directors of Parent then still
in office (either by a specific vote or by approval of a proxy
statement in which such member was named as a nominee for election
as a director, without objection to such nomination) who either
were members of such board of directors at the beginning of such
period or whose election as a member of such board of directors was
previously so approved; provided, that, a transaction effected to
create a holding company for Parent will not be deemed to involve a
Change of Control if: (1) pursuant to such transaction Parent
becomes a direct or indirect wholly-owned subsidiary of such
holding company and (2) the direct or indirect holders of the
voting stock of such holding company immediately following that
transaction are substantially the same as the holders of
Parent’s voting stock immediately prior to that
transaction. Following any such transaction, references in
this definition to Parent shall be deemed to refer to such holding
company. For purposes of this definition, “voting
stock” of any specified “person” (as that
term is used in Section 13(d)(3) of the Exchange Act) as
of any date means the capital stock of such person that is at the
time entitled to vote generally in the election of the board of
directors of such person.
“
Consolidated Net Worth ” at any date means total
assets less total liabilities, in each case appearing on the most
recently prepared consolidated balance sheet of Parent and its
subsidiaries as of the end of a fiscal quarter of Parent, prepared
in accordance with United States generally accepted accounting
principles as in effect on the date of the consolidated balance
sheet.
“
Consolidated Tangible Assets ” at any date means total
assets less all intangible assets appearing on the most recently
prepared consolidated balance sheet of Parent and its subsidiaries
as of the end of a fiscal quarter of Parent, prepared in accordance
with United States generally accepted accounting principles as in
effect on the date of the consolidated balance sheet.
“Intangible assets” means the amount (if any) stated
under the heading “Intangible assets, net” or under any
other heading of intangible assets separately listed, in each case
on the face of such consolidated balance sheet.
“
Fitch ” means Fitch Ratings Ltd.
“ Funded
Indebtedness ” means any Indebtedness maturing by its
terms more than one year from the date of the determination
thereof, including any Indebtedness renewable or extendible at the
option of the obligor to a date later than one year from the date
of the determination thereof.
“
Indebtedness ” means, without duplication, the
principal amount (such amount being the face amount or, with
respect to original issue discount bonds or zero coupon notes,
bonds or debentures or similar securities, determined based on the
accreted amount as of the date of the
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most recently
prepared consolidated balance sheet of Parent and its Subsidiaries
as of the end of a fiscal quarter of Parent prepared in accordance
with United States generally accepted accounting principles as in
effect on the date of such consolidated balance sheet) of
(i) all obligations for borrowed money, (ii) all
obligations evidenced by debentures, notes or other similar
instruments, (iii) all obligations in respect of letters of
credit or bankers acceptances or similar instruments or
reimbursement obligations with respect thereto (such instruments to
constitute Indebtedness only to the extent that the outstanding
reimbursement obligations in respect thereof are collateralized by
cash or cash equivalents reflected as assets on a balance sheet
prepared in accordance with United States generally accepted
accounting principles), (iv) all obligations to pay the
deferred purchase price of property or services, except
(A) trade and similar accounts payable and accrued expenses,
(B) employee compensation, deferred compensation and pension
obligations, and other obligations arising from employee benefit
programs and agreements or other similar employment arrangements,
(C) obligations in respect of customer advances received and
(D) obligations in connection with earnout and holdback
agreements, in each case in the ordinary course of business,
(v) all obligations as lessee to the extent capitalized in
accordance with United States generally accepted accounting
principles and (vi) all Indebtedness of others consolidated in
such balance sheet that is guaranteed by the Company or any of its
Subsidiaries or for which the Company or any of its Subsidiaries is
legally responsible or liable (whether by agreement to purchase
indebtedness of, or to supply funds or to invest in,
others).
“
Investment Grade Rating ” means a rating equal to or
higher than BBB- (or the equivalent) by Fitch, Baa3 (or the
equivalent) by Moody’s and BBB- (or the equivalent) by
S&P.
“
Moody’s ” means Moody’s Investor Services
Inc.
“
Non-Recourse Indebtedness ” means Indebtedness upon
the enforcement of which recourse may be had by the
holder(s) thereof only to identified assets of Parent or the
Company or any Subsidiary of Parent or the Company and not to
Parent or the Company or any Subsidiary of Parent or the Company
personally (subject to, for the avoidance of doubt, customary
exceptions contained in non-recourse financings to the non-recourse
nature of the obligations thereunder).
“
Principal Property ” means any U.S. manufacturing,
processing or assembly plant or any U.S. warehouse or distribution
facility of the Parent or any of its Subsidiaries that is used by
any U.S. Subsidiary of the Company and (A) is owned by the
Parent or any Subsidiary of the Parent on the date hereof,
(B) the initial construction of which has been completed after
the date hereof, or (C) is acquired after the date hereof, in
each case, other than any such plants, facilities, warehouses or
portions thereof, that in the opinion of the Board of Directors of
the Company, are not collectively of material importance to the
total business conducted by the Parent and its subsidiaries as an
entirety, or that has a net book value (excluding any capitalized
interest expense), on the date hereof in the case of clause
(A) of this definition, on the date of completion of the
initial construction in the case of clause (B) of this
definition or on the date of acquisition in the case of clause
(C) of this definition, of less than the greater of
$50,000,000 and 0.5% of Consolidated Tangible Assets on the
consolidated balance sheet of Parent and its subsidiaries as of the
applicable date.
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“ Qualifying Subsidiary ”
means a U.S. Subsidiary, the total Accounts Receivable of which
exceeds the greater of $2.5 million and 0.20% of the amount stated
under the heading “Accounts receivable, net of
allowance for doubtful accounts,” or its equivalent,
appearing on the most recently prepared consolidated balance sheet
of Parent and its subsidiaries as of the end of a fiscal quarter of
Parent, prepared in accordance with United States generally
accepted accounting principles.
“
Rating Agencies ” means (1) each of Fitch,
Moody’s and S&P; and (2) if any of Fitch,
Moody’s or S&P ceases to rate the Offered Securities or
fails to make a rating of the Offered Securities publicly available
for reasons outside of the Company’s control, a
“nationally recognized statistical rating organization”
within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the
Exchange Act, selected by the Company (as certified by a resolution
of the Company’s Board of Directors) as a replacement agency
for Fitch, Moody’s or S&P, or all of them, as the case
may be .
“
Restricted Subsidiary ” means any Subsidiary of the
Company that owns or leases a Principal Property.
“ Sale
and Lease-Back Transaction ” means an arrangement with
any Person providing for the leasing by the Company or a Restricted
Subsidiary of any Principal Property whereby such Principal
Property has been or is to be sold or transferred by the Company or
a Restricted Subsidiary to such Person other than Parent, the
Company or any of their respective Subsidiaries; provided, however,
that the foregoing shall not apply to any such arrangement
involving a lease for a term, including renewal rights, for not
more than three years.
“
S&P ” means Standard & Poor’s
Rating Services, a division of The McGraw-Hill
Companies, Inc.
“ U.S.
Subsidiary ” means any Subsidiary organized under the
laws of a jurisdiction of the United States or any political
subdivision thereof.
Section 1.3.
Additional Covenants
.
The following
additional covenants shall apply with respect to the Offered
Securities so long as any of the Offered Securities remain
Outstanding (but subject to defeasance, as provided in the
Indenture):
(1)
Limitation on Liens.
The Company will
not, and will not permit any Restricted Subsidiary to, issue,
assume or guarantee any Indebtedness that is secured by a mortgage,
pledge, security interest, lien or encumbrance (each a “
lien ”) upon any property that at the time of such
issuance, assumption or guarantee constitutes a Principal Property,
and the Company will not, and will not permit any U.S. Subsidiary
that at the time of such issuance, assumption or guarantee is a
Qualifying Subsidiary to, issue, assume or guarantee any
Indebtedness that is secured by a lien upon such Qualifying
Subsidiary’s Accounts Receivables, or any shares of stock of
or Indebtedness issued by any such Restricted Subsidiary or such
Qualifying Subsidiary, whether now owned or
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hereafter
acquired, in each case without effectively providing that, for so
long as such lien shall continue in existence with respect to such
secured Indebtedness, the Offered Securities (together with, if the
Company shall so determine, any other Indebtedness of the Company
ranking equally with the Offered Securities, it being understood
that for purposes hereof, Indebtedness which is secured by a lien
and Indebtedness which is not so secured shall not, solely by
reason of such lien, be deemed to be of different ranking) shall be
equally and ratably secured by a lien ranking ratably with or equal
to (or at the Company’s option prior to) such secured
Indebtedness; provided, however, that the foregoing covenant shall
not apply to:
(a)
liens existing on the date the Offered Securities are first
issued;
(b)
liens on the stock, assets or Indebtedness of a Person existing at
the time such Person becomes a Restricted Subsidiary, unless
created in contemplation of such Person becoming a Restricted
Subsidiary;
(c)
liens on any assets or Indebtedness of a Person existing at the
time such Person is merged with or into or consolidated with or
acquired by the Company or a Restricted Subsidiary or at the time
of a purchase, lease or other acquisition of the assets of a
corporation or firm as an entirety or substantially as an entirety
by the Company or any Restricted Subsidiary;
(d)
liens on any Principal Property existing at the time of acquisition
thereof by the Company or any Restricted Subsidiary, or liens to
secure the payment of the purchase price of such Principal Property
by the Company or any Restricted Subsidiary, or to secure any
Indebtedness incurred
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