Washington Gas Light
Company
Medium-Term Notes,
Series I
June 3, 2009
New York, New York
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BB&T
Capital Markets, a division of Scott &
Stringfellow, LLC
909 East Main Street, 8 th Floor South
Richmond, Virginia 23219
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J.P. Morgan
Securities Inc.
270 Park Avenue
New York, New York 10017
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Mitsubishi UFJ
Securities (USA), Inc.
1633 Broadway, 29 th Floor
New York, New York 10019-6708
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Wachovia
Capital Markets, LLC
One Wachovia Center
301 South College Street
Charlotte, North Carolina 28288
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The Williams
Capital Group, L.P.
650 Fifth Avenue
10 th
Floor
New York, New York 10019
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Washington Gas
Light Company, a District of Columbia and Virginia corporation (the
“ Company ”), confirms its agreement with each
of you with respect to the issue and sale by the Company of up to
$450,000,000 aggregate principal amount of its Medium-Term Notes,
Series I (the “ Notes ”). The Company
proposes to issue the Notes under its Indenture, as supplemented
(the “ Indenture ”), dated as of
September 1, 1991 to The Bank of New York Mellon, as trustee
(the “ Indenture Trustee ”).
The Notes will be
issued in minimum denominations of $1,000 and in denominations that
are integral multiples thereof (unless otherwise specified by the
Company), will be issued only in fully registered form and will
have the annual interest rates, maturities and, if appropriate,
other terms set forth in a supplement or supplements to the
Prospectus referred to below. The Notes will be issued, and the
terms thereof established, in accordance with the Indenture and, in
the case of Notes sold pursuant to Section 2(a), the
Administrative Procedures attached hereto as Exhibit A (the
“ Procedures ”). The Procedures may only be
amended by written agreement of
the Company and
you after notice to, and with the approval of, the Indenture
Trustee. For the purposes of this Agreement, the term
“Agent” shall refer to any of you acting solely
in the capacity as agent for the Company pursuant to Section 2(a)
and not as principal (together, the “ Agents ”),
the term “Purchaser” shall refer to any of you
acting solely as principal pursuant to Section 2(b) and not as
agent, and the term “you” shall refer to you together
whether at any time any of you is acting in both such capacities or
in either such capacity.
1.
Representations and Warranties . The Company represents and
warrants to, and agrees with, you as set forth below in this
Section 1. Certain terms used in this Section 1 are
defined in paragraph (c) hereof.
(a) The
Company meets the requirements for use of Form S-3 under the
Securities Act of 1933, as amended (the “ Act
”), and has filed with the Securities and Exchange Commission
(the “ Commission ”) a registration statement on
such Form (File Number: 333-159243), including a base prospectus,
which has become effective, for the registration under the Act of
up to $450,000,000 aggregate principal amount of Notes. Such
registration statement, as amended at the date of this Agreement,
meets the requirements set forth in Rule 415(a)(1)(ix) or
(x) under the Act and complies in all other material respects
with said Rule. In connection with the sale of Notes, the Company
proposes to file with the Commission pursuant to the applicable
paragraph of Rule 424 under the Act supplements to the
prospectus included in registration statement No. 333-159243
providing for the specification of the interest rates, maturity
dates, issuance prices, redemption terms and prices, and, if
appropriate, other terms of the Notes sold pursuant hereto or the
offering thereof (any such supplement being hereinafter called a
“ Pricing Supplement ”).
(b)
(1) At each of the following times: (i) as of the
Execution Time and (ii) on the Effective Date and each deemed
effective date pursuant to Rule 430B of the Act, (A) the
Registration Statement, as amended as of any such time, and the
Indenture, as amended or supplemented as of any such time, complied
or will comply in all material respects with any applicable
requirements of the Act, the Trust Indenture Act of 1939, as
amended (the “ Trust Indenture Act ”), and the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”), and the respective rules and
regulations thereunder; and (B) the Registration Statement, as
amended as of any such time, did not or will not contain any untrue
statement of a material fact or omit to state any material fact
required to be stated therein or necessary in order to make the
statements therein not misleading; and
(2) At
each of the following times: (i) as of the Execution Time,
(ii) on the Effective Date and each deemed effective date
pursuant to Rule 430B of the Act, (iii) when any
supplement to the Prospectus is filed with the Commission,
(iv) as of the time of each acceptance by the Company of an
offer for the Purchase of Notes (whether to such Agent as principal
or through such Agent as agent) (each such time being an “
Applicable Time ”) and (v) at the date of
delivery by the Company of any Notes sold hereunder (a “
Closing Date ”), the Prospectus and any applicable
Permitted Free Writing Prospectuses, as supplemented as of such
time, will not include any untrue statement of a material fact or
omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which
they were made, not misleading; provided , however ,
that the Company makes no representations or warranties under this
paragraph (b) as to (A) that part of any Registration
Statement which shall constitute
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the Statement
of Eligibility (Form T-1) under the Trust Indenture Act of the
Indenture Trustee or (B) the information contained in or
omitted from any Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus (or any supplement thereto) in
reliance upon and in conformity with information furnished in
writing to the Company by any of you specifically for use in
connection with the preparation of any Registration Statement, the
Prospectus or any Permitted Free Writing Prospectus (or any
supplement thereto).
(c) The
terms that follow, when used in this Agreement, shall have the
meanings indicated. The term “Effective Date”
shall mean the later of (i) each date that the Registration
Statement and any post-effective amendment or amendments thereto
became or become effective or (ii) the time and date of the
filing of the Company’s most recent Annual Report on Form
10-K. “Execution Time” shall mean the date and
time that this Agreement is executed and delivered by the parties
hereto. “Prospectus” shall mean the form of
prospectus relating to the Securities contained in registration
statement No. 333-159243 at the Effective Date (unless such
prospectus has been amended or supplemented by the Company
subsequent to the Effective Date, in which case
“Prospectus” shall mean the form of prospectus as so
amended or supplemented). “Registration
Statement” shall mean the registration statement referred
to in paragraph (a) above, including incorporated documents,
exhibits and financial statements, as it may be amended at the
particular time referred to. “Rule 415” and
“Rule 424” refer to such rules under the
Act. Any reference herein to any Registration Statement, the
Prospectus or any Permitted Free Writing Prospectus shall be deemed
to refer to and include the documents incorporated by reference
therein pursuant to Item 12 of Form S-3 which were filed under
the Exchange Act on or before the Effective Date of the
Registration Statement or the issue date of the Prospectus or any
then applicable Permitted Free Writing Prospectus, as the case may
be; and any reference herein to the terms “amend”,
“amended”, “amendment” or
“supplement” with respect to the Registration Statement
or the Prospectus shall be deemed to refer to and include the
filing of any document under the Exchange Act after the Effective
Date of the Registration Statement or the issue date of the
Prospectus, as the case may be, deemed to be incorporated therein
by reference.
(d) Since
the Effective Date of the Registration Statement and prior to the
applicable Closing Date, the Company has been in compliance with
Section 3(b). Each Permitted Free Writing Prospectus (as
defined below) complies in all material respects with the Act, has
been filed in accordance with the Act (to the extent required
thereby) and, when taken together with the Prospectus filed prior
to the first use of such Permitted Free Writing Prospectus, did
not, and at each of the dates specified in Section 1(b)(2) the
Permitted Free Writing Prospectus taken together with the then
current Prospectus will not, contain any untrue statement of a
material fact or omit to state a material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that
the Company makes no representation and warranty with respect to
any statements or omissions made in each such Permitted Free
Writing Prospectus in reliance upon and in conformity with
information relating to any Agent furnished to the Company in
writing by such Agent expressly for use in such Permitted Free
Writing Prospectus.
(e) The
Company has not sustained since the date of the latest audited
financial statements included or incorporated by reference in the
Registration Statement and the Prospectus, any material loss or
interference with its business from fire, explosion, flood or
other
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calamity,
whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree, otherwise than as
set forth or contemplated in the Registration Statement, the
Prospectus and any then applicable Permitted Free Writing
Prospectus; and, since the respective dates as of which information
is given in the Registration Statement, the Prospectus and any then
applicable Permitted Free Writing Prospectus, there has not been
any change in the capital stock (other than the effect of
stock-based compensation) or long-term debt (other than any
redemptions or purchases of First Mortgage Bonds or Medium Term
Notes, normal amortization of debt premium and discount, repayments
of bank or finance company borrowings and repurchases of commercial
paper) of the Company or any material adverse change, or any
development involving a prospective material adverse change, in or
affecting the general affairs, management, financial position,
stockholder’s equity or results of operations of the Company,
otherwise than as set forth or contemplated in the Registration
Statement, the Prospectus and any then applicable Permitted Free
Writing Prospectus.
(f) The
Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of the District of
Columbia and Virginia, with power and authority (corporate and
other) to own its properties and conduct its business as described
in the Prospectus and any then applicable Permitted Free Writing
Prospectus and is duly qualified to do business in each
jurisdiction in which it owns or leases real property or in which
the conduct of its business requires such qualification except
where the failure to be so qualified, considering all such cases in
the aggregate, does not involve a material risk to the business,
properties, financial position or results of operations of the
Company.
(g) The
creation, issuance and sale of the Notes have been duly and validly
authorized by the Company and, when executed and authenticated in
accordance with the provisions of the Indenture, the Notes will
constitute valid and legally binding obligations of the Company
entitled to the benefits provided by the Indenture, which will be
substantially in the form filed as an exhibit to the Registration
Statement; the Indenture and this Agreement have each been duly
authorized, executed and delivered by the Company and each
constitutes a valid and legally binding instrument, enforceable in
accordance with its terms, subject, as to enforcement, to
bankruptcy, insolvency, reorganization and other laws of general
applicability relating to or affecting creditors’ rights and
to general equity principles and to any principles of public or
Commission policy limiting the right to indemnification provided
for in this Agreement; the Indenture has been qualified under the
Trust Indenture Act; any Terms Agreement will, when authorized,
executed and delivered in accordance herewith, constitute a valid
and legally binding instrument, enforceable in accordance with its
terms, subject, as to enforcement, to bankruptcy, insolvency,
reorganization and other laws of general applicability relating to
or affecting creditors’ rights and to general equity
principles and to any principles of public or Commission policy
limiting the right to indemnification provided for therein; and the
Notes and the Indenture conform to the descriptions thereof in the
Prospectus.
(h) The
issue and sale of the Notes and the compliance by the Company with
all of the provisions of the Notes, the Indenture, this Agreement
and any Terms Agreement, and the consummation of the transactions
herein and therein contemplated will not conflict with or result in
a breach of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company is
a party or by which the Company is bound or to which any of the
property or assets
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of the Company
is subject, nor will such action result in any violation of the
provisions of the Company’s charter, as amended, or the
bylaws of the Company or any statute or any order, rule or
regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its property or assets; and
no consent, approval, authorization, order, registration or
qualification of or with any such court or governmental agency or
body is required for the issue and sale of the Notes or the
consummation by the Company of the other transactions contemplated
by this Agreement or any Terms Agreement or the Indenture, except
such as have been prior to the Execution Time, obtained under the
Act and the Trust Indenture Act, and except for filings with and
the orders from the Public Service Commission of the District of
Columbia, the Public Service Commission of Maryland and the State
Corporation Commission of Virginia and such other applicable
filings and orders required by any other governmental entity having
jurisdiction over the Company authorizing the issuance and sale by
the Company of the Notes all of which orders have been obtained and
are in full force and effect.
(i) Other
than as set forth or contemplated in the Prospectus and any then
applicable Permitted Free Writing Prospectus, there are no legal or
governmental proceedings pending to which the Company is a party or
of which any property of the Company is the subject which, if
determined adversely to the Company, would individually or in the
aggregate have a material adverse effect on the financial position,
stockholder’s equity or results of operations of the Company;
and, to the best of the Company’s knowledge, no such
proceedings are threatened or contemplated by governmental
authorities or threatened by others.
(j) There
are no contracts or documents of the Company that are required to
be described in the Registration Statement or the Prospectus or to
be filed as exhibits to the Registration Statement by the Act or by
the rules and regulations thereunder that have not been so
described or filed.
(k) The
issue and sale of the Notes are solely for the purpose of financing
the business of the Company as described under “Use of
Proceeds” in the Registration Statement and the Prospectus
and the proceeds thereof will not be used for any other
purpose.
(l) As
of the Execution Time, the Medium Term Note program under which the
Notes are issued is rated A2 by Moody’s Investor Service,
Inc., AA- by Standard & Poor’s Ratings Services, and AA-
by Fitch Ratings. The Company has no other credit ratings on its
Medium Term Notes from a “nationally recognized statistical
rating organization.”
(m) The
Company is not in violation of its charter or bylaws or in default
in the performance or observance of any obligation, agreement,
covenant or condition contained in any contract, indenture,
mortgage, loan agreement, note, lease or other instrument to which
the Company is a party or by which it may be bound, or to which any
of the property or assets of the Company is subject, which
violation or default would materially adversely affect the business
or financial condition of the Company; and the execution, delivery
and performance of this Agreement and any Terms Agreement and the
consummation of the transactions contemplated herein and therein
will not conflict with, or constitute a breach of, or default
under, or result in the creation or imposition of any lien, charge
or encumbrance upon any property or assets of the Company pursuant
to, any material contract, indenture, mortgage, loan agreement,
note, lease or other instrument to which the Company is a party or
by which it may be bound, or to which any
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of the property
or assets of the Company is subject, nor will such action result in
any violation of the provisions of the charter or bylaws of the
Company or, to the best knowledge of the Company, any law,
administrative regulation or administrative or court decree, and no
consent, approval, authorization, order or decree of any court or
governmental agency or body of the United States (other than those
referenced in Section 1(h) of this Agreement) is required for the
consummation by the Company of the transactions contemplated by
this Agreement, any Terms Agreement or the Indenture, except such
as may be required under the Act or the Trust Indenture Act or the
regulations promulgated under either thereof or as may be required
by state securities or Blue Sky laws.
(n) The
financial statements and any supporting schedules of the Company
included or incorporated by reference in the Registration
Statement, the prospectus and any then applicable Permitted Free
Writing prospectus present fairly the consolidated financial
position of the Company as of the dates indicated and the
consolidated results of its operations for the periods specified;
and, except as stated therein, said financial statements have been
prepared in conformity with generally accepted accounting
principles in the Unites States applied on a consistent basis; and
any supporting schedules included or incorporated by reference in
the Registration Statement present fairly the information required
to be stated therein.
2.
Appointment of Agents; Solicitation by the Agents of Offers to
Purchase; Sales of Notes to a Purchaser . (a) Subject to
the terms and conditions set forth herein, the Company hereby
authorizes each of the Agents to act as its agent to solicit offers
for the purchase of all or part of the Notes from the Company. On
the basis of the representations and warranties, and subject to the
terms and conditions set forth herein, each of the Agents agrees,
as agent of the Company, to use its reasonable best efforts to
solicit offers to purchase the Notes from the Company upon the
terms and conditions set forth in the Prospectus and any then
applicable Permitted Free Writing Prospectus (and any supplement
thereto) and in the Procedures. The appointment of the Agents
hereunder is not exclusive and the Company may from time to time
offer Notes for sale otherwise than to or through an Agent;
provided, however, that so long as this Agreement is in effect, the
Company will not appoint any other agent for the purpose of
soliciting purchases of the Notes on a continuous basis. It is
understood, however, that if from time to time the Company is
approached by a prospective agent offering to solicit a specific
purchase of Notes, the Company may engage such agent with respect
to such specific purchase, provided that (i) such agent is
engaged on terms substantially similar (including the same
commission schedule) to the applicable terms of this Agreement and
(ii) the Agents are given notice of such purchase promptly
after it is agreed to. Each such Agent is acting in connection with
the Notes individually and not collectively or jointly.
The
Company reserves the right, in its sole discretion, to reject any
offer to purchase Notes, in whole or in part. In addition, the
Company reserves the right, in its sole discretion, to instruct the
Agents to suspend at any time, for any period of time or
permanently, the solicitation of offers to purchase the Notes. Upon
receipt of instructions from the Company, the Agents will forthwith
suspend solicitations of offers to purchase Notes from the Company
until such time as the Company has advised them that such
solicitation may be resumed.
The
Company agrees to pay each Agent a commission on the Closing Date
with respect to each sale of Notes by the Company as a result of a
solicitation made by such Agent, in
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an amount equal
to that percentage specified in Schedule I hereto of the
aggregate principal amount of the Notes sold by the Company. Such
commission shall be payable as specified in the
Procedures.
Subject
to the provisions of this Section 2 and to the Procedures,
offers for the purchase of Notes may be solicited by an Agent as
agent for the Company at such times and in such amounts as such
Agent deems advisable.
(b) Subject
to the terms and conditions stated herein, whenever the Company and
any of you determines that the Company shall sell Notes directly to
any of you as principal, each such sale of Notes shall be made in
accordance with the terms of this Agreement and a supplemental
agreement relating to such sale. Each such supplemental agreement
(which may be either an oral or written agreement) is herein
referred to as a “Terms Agreement”. Each Terms
Agreement shall describe the Notes to be purchased by the Purchaser
pursuant thereto and shall specify the aggregate principal amount
of such Notes, the price to be paid to the Company for such Notes,
the maturity date of such Notes, the rate at which interest will be
paid on such Notes, the dates on which interest will be paid on
such Notes and the record date with respect to each such payment of
interest, the Closing Date for the purchase of such Notes, the
place of delivery of the Notes and payment therefor, the method of
payment and any requirements for the delivery of opinions of
counsel, certificates from the Company or its officers or a letter
from the Company’s independent registered public accounting
firm as described in Section 6(b). Any such Terms Agreement
may also specify the period of time referred to in
Section 4(m). Any written Terms Agreement may be in the form
attached hereto as Exhibit B. The Purchaser’s commitment
to purchase Notes shall be deemed to have been made on the basis of
the representations and warranties of the Company herein contained
and shall be subject to the terms and conditions herein set
forth.
Delivery
of the certificates for Notes sold to the Purchaser pursuant to a
Terms Agreement shall be made not later than the Closing Date
agreed to in such Terms Agreement, against payment of funds to the
Company in the net amount due to the Company for such Notes by the
method and in the form set forth in the Procedures unless otherwise
agreed to between the Company and the Purchaser in such Terms
Agreement.
Unless
otherwise agreed to between the Company and the Purchaser in a
Terms Agreement, any Note sold to a Purchaser (i) shall be
purchased by such Purchaser at a price equal to 100% of the
principal amount thereof less a percentage equal to the commission
applicable to an agency sale of a Note of identical maturity and
(ii) may be resold by such Purchaser at varying prices from
time to time or, if set forth in the applicable Terms Agreement and
Pricing Supplement, at a fixed public offering price. In connection
with any resale of Notes purchased, a Purchaser may use a selling
or dealer group and may reallow to any broker or dealer any portion
of the discount or commission payable pursuant hereto.
If
two or more Agents enter into such an agreement to purchase Notes
from the Company as principal and one or more of such Agents shall
fail at the Closing Date to purchase the Notes which it or they are
obligated to purchase (the “ Defaulted Notes ”),
then the nondefaulting Agent(s) shall have the right, within 24
hours thereafter, to make arrangements for one of them or one or
more other Agents or underwriters to purchase all, but not less
than all, of
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the Defaulted
Notes in such amounts as may be agreed upon and upon the terms
herein set forth; provided, however, that if such arrangements
shall not have been completed within such 24-hour period,
then:
(i) If the
aggregate principal amount of Defaulted Notes does not exceed 10%
of the aggregate principal amount of Notes to be so purchased by
all of such Agents on the Closing Date, the nondefaulting Agent(s)
shall be obligated, severally and not jointly, to purchase the full
amount thereof in the proportions that their respective initial
underwriting obligations bear to the underwriting obligations of
all nondefaulting Agents; or
(ii) If the
aggregate principal amount of Defaulted Notes exceeds 10% of the
aggregate principal amount of Notes to be so purchased by all of
such Agents on the Closing Date, such agreement shall terminate
without liability on the part of any nondefaulting
Agent.
No action taken
pursuant to this paragraph shall relieve any defaulting Agent from
liability in respect of its default. In the event of any such
default which does not result in a termination of such agreement,
either the nondefaulting Agent(s) or the Company shall have the
right to postpone the Closing Date for a period not exceeding seven
days in order to effect any required changes in the Registration
Statement or the Prospectus or in any other documents or
arrangements.
3.
Offering and Sale of Notes .
(a) Each
Agent and the Company agree to perform the respective duties and
obligations specifically provided to be performed by them in the
Procedures.
(b) The
Company agrees that, unless it has obtained or will obtain the
prior written consent of the Agents, and each Agent, severally and
not jointly, agrees with the Company that, unless it has obtained
or will obtain, as the case may be, the prior written consent of
the Company, it has not made and will not make any offer relating
to the Notes that would constitute a “free writing
prospectus” (as defined in Rule 405) required to be
filed by the Company with the Commission or retained by the Company
under Rule 433, other than the information contained in the
Pricing Supplement prepared and filed pursuant to
Section 5(a). Any such free writing prospectus consented to by
the Agents or the Company is hereinafter referred to as a “
Permitted Free Writing Prospectus .” The Company
agrees that (i) it has treated and will treat, as the case may
be, each Permitted Free Writing Prospectus as an issuer free
writing prospectus (as defined in Rule 433) and (ii) it
has complied and will comply, as the case may be, with the
requirements of Rules 164 and 433 applicable to any Permitted
Free Writing Prospectus, including in respect of timely filing with
the Commission, legending and record keeping.
4.
Agreements . The Company agrees with you that:
(a) Prior
to the termination of the offering of the Notes, the Company will
not issue any Permitted Free Writing Prospectus or file any
amendment of any Registration Statement or supplement to the
Prospectus (except for (i) periodic or current reports filed
under the Exchange Act, (ii) a Pricing Supplement or
(iii) a supplement relating to an offering of debt
8
securities
other than the Notes) unless the Company has furnished each of you
a copy for your review prior to filing and given each of you a
reasonable opportunity to comment on any such proposed amendment or
supplement. Subject to the foregoing sentence, the Company will
cause each supplement to the Prospectus to be filed with the
Commission pursuant to the applicable paragraph of Rule 424
within the time period prescribed. Except for periodic or current
reports filed under the Exchange Act and pricing or other
supplements relating to the offerings of debt securities other than
the Notes, the Company will promptly advise each of you
(i) when the Prospectus or any Permitted Free Writing
Prospectus, and any supplement thereto, shall have been filed with
the Commission pursuant to Rule 424, (ii) when, prior to
the termination of the offering of the Notes, any amendment of any
Registration Statement shall have been filed or become effective,
(iii) of any request by the Commission for any amendment of
any Registration Statement or supplement to the Prospectus or for
any additional information, (iv) of the issuance by the
Commission of any stop order suspending the effectiveness of any
Registration Statement or of any notice objecting to its use or of
the institution or threatening of any proceeding for that purpose
and (v) of the receipt by the Company of any notification with
respect to the initiation or threatening of any proceeding relating
to the Notes in any jurisdiction. The Company will use its best
efforts to prevent the issuance of any such stop order or the
occurrence of any such suspension or objection to the use of the
Registration Statements and, upon such issuance, occurrence or
notice of objection, to obtain as soon as possible the withdrawal
of such stop order or relief from such occurrence or
objection.
(b) Except
as otherwise provided in paragraph (n) of this Section 4,
if, at any time when a prospectus relating to the Notes is required
to be delivered under the Act (including in circumstances where
such requirement may be satisfied pursuant to Rule 172), any
event occurs as a result of which the Prospectus or any then
applicable Permitted Free Writing Prospectus as then supplemented
would include any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein,
in the light of the circumstances under which they were made, not
misleading, or if it shall be necessary to amend any Registration
Statement or to supplement the Prospectus or any then applicable
Permitted Free Writing Prospectus to comply with the Act or the
Exchange Act or the respective rules thereunder, the Company
promptly will (i) notify each of you to suspend solicitation of
offers to purchase Notes (and, if so notified by the Company, each
of you shall forthwith suspend such solicitation and cease using
the Prospectus as then supplemented), (ii) prepare and file
with the Commission, subject to the first sentence of paragraph
(a) of this Section 4, an amendment or supplement which
will correct such statement or omission or effect such compliance,
(iii) use its reasonable best efforts to have any amendment to
the Registration Statement declared effective as soon as
practicable in order to avoid any disruption in use of the
Prospectus and (iv) supply any supplemented Prospectus or any
then applicable Permitted Free Writing Prospectus to each of you in
such quantities as you may reasonably request; provided, however,
that should any such event relate solely to activities of any
Agent, then such Agent shall assume the expense of preparing and
furnishing any such amendment or supplement. If such amendment or
supplement, and any documents, certificates and opinions furnished
to each of you pursuant to paragraph (g) of this
Section 4 in connection with the preparation of filing of such
amendment or supplement are satisfactory in all respects to you,
you will, upon the filing of such amendment or supplement with the
Commission and upon the effectiveness of an amendment to any
Registration Statement, if such an amendment is required, resume
your obligation to solicit offers to purchase Notes
hereunder.
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(c) During
the term of this Agreement, the Company will timely file all
documents required to be filed with the Commission pursuant to
Section 13(a), 13(c), 14 or 15(d) of the Exchange Act and will
inform each of you if the Company does not meet its filing
deadlines. The Company will notify each of you of any downgrading
in the rating of the Notes or any other debt securities of the
Company, or any public announcement of placement of the Notes or
any other debt securities of the Company on what is commonly termed
a “watch list” for possible downgrading, or any notice
of a possible change in any such rating that does not indicate the
direction of the possible change, in each case by any
“nationally recognized statistical rating organization”
(as defined for purposes of Rule 436(g) under the Act), promptly
after the Company learns of any such downgrading or public
announcement.
(d) As
soon as practicable, the Company will make generally available to
its security holders and to each of you an earnings statement or
statements of the Company which will satisfy the provisions of
Section 11(a) of the Act and Rule 158 under the
Act.
(e) The
Company will furnish to each of you and your counsel, without
charge (except as otherwise provided herein), copies of each
Registration Statement (including exhibits thereto) and, so long as
delivery of a prospectus may be required by the Act (including in
circumstances where such requirement may be satisfied pursuant to
Rule 172), as many copies of the Prospectus, each Permitted
Free Writing Prospectus, and any supplement thereto as you may
reasonably request.
(f) The
Company will, at the request of the Agents, arrange for the
determination of the legality of the Notes for purchase by
institutional investors.
(g) During
the term of this Agreement, the Company shall make available at
www.wglholdings.com (i) all annual, quarterly and other
reports furnished to stockholders of the Company or of WGL
Holdings, Inc., and (ii) all annual, quarterly and current
reports of the Company filed with the Commission under the Exchange
Act. The Company shall furnish to each of you other information
that you may reasonably request from time to time concerning the
Company or WGL Holdings, Inc.
(h) The
Company shall, whether or not any sale of the Notes is consummated,
(i) pay all expenses incident to the performance of its
obligations under this Agreement, including the fees and
disbursements of its accountants and counsel, the cost of printing
or other production and delivery of the Registration Statement, the
Prospectus, all amendments thereof and supplements thereto, the
Indenture, this Agreement and all other documents relating to the
offering, the cost of preparing, printing, packaging and delivering
the Notes, the fees and disbursements, including fees of counsel,
incurred in compliance with Section 4(f), the fees and
disbursements of the Indenture Trustee and the fees of any ratings
agency that rates the Notes, (ii) reimburse each of you on a
monthly basis for all reasonable out-of-pocket expenses (including,
but not limited to, advertising expenses), in the aggregate not to
exceed two thousand five hundred dollars per Agent, incurred by you
in connection with this Agreement and (iii) pay the reasonable
fees and expenses of your counsel incurred in connection with this
Agreement.
(i) Each
acceptance by the Company of an offer to purchase Notes will be
deemed to be a reconfirmation to you of the representations and
warranties of the Company in
10
Section 1
(except that such representations and warranties shall be deemed to
relate solely to the Registration Statement as then amended and to
the Prospectus or any Permitted Free Writing Prospectus, as then
amended and supplemented to relate to such Notes).
(j) Except
as otherwise provided in paragraph (n) of this Section 4,
each time that any Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus is amended or supplemented (other
than by (i) an amendment or supplement relating to any
offering of debt securities other than the Notes or (ii) a
Pricing Supplement) the Company will deliver or cause to be
delivered promptly to each of you a certificate of the Company,
signed by any of the Chairman of the Board, the President, the
Chief Executive Officer, any Vice President having responsibilities
for financial matters, the Chief Accounting Officer or the
Treasurer of the Company, dated the date of the effectiveness of
such amendment or the date of the filing of such supplement, in
form reasonably satisfactory to you, of the same tenor as the
certificate referred to in Section 5(d) but modified to relate to
the last day of the fiscal quarter for which financial statements
of the Company were last filed with the Commission and to such
Registration Statement and the Prospectus as amended and
supplemented to the time of the effectiveness of such amendment or
the filing of such supplement.
(k) Except
as otherwise provided in paragraph (n) of this Section 4,
each time that any Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus is amended or supplemented (other
than by (i) an amendment or supplement relating to any
offering of debt securities other than the Notes or (ii) a
Pricing Supplement), the Company shall furnish or cause to be
furnished promptly to each of you a written opinion of Beverly J.
Burke, Esq., counsel for the Company, satisfactory to each of you,
dated the date of the effectiveness of such amendment or the date
of the filing of such supplement, in form satisfactory to each of
you, of the same tenor as the opinion referred to in
Section 5(b), but modified to relate to such Registration
Statement and the Prospectus as amended and supplemented to the
time of the effectiveness of such amendment or the filing of such
supplement or, in lieu of such opinion, such counsel may furnish
each of you with a letter to the effect that you may rely on such
counsel’s last opinion to the same extent as though it were
dated the date of such letter authorizing reliance (except that
statements in such last opinion will be deemed to relate to such
Registration Statement, the Prospectus and any Permitted Free
Writing Prospectus as amended and supplemented to the time of the
effectiveness of such amendment or the filing of such
supplement).
(l) Except
as otherwise provided in paragraph (n) of this Section 4,
each time that the Registration Statement, the Prospectus or any
Permitted Free Writing Prospectus is amended or supplemented (other
than by (i) an amendment or supplement relating to any
offering of debt securities other than the Notes or (ii) a
Pricing Supplement) to set forth amended or supplemental financial
information, the Company shall cause its independent registered
public accounting firm promptly to furnish each of you a letter,
dated the date of the effectiveness of such amendment or the date
of the filing of such supplement, in form satisfactory to each of
you, of the same tenor as the letter referred to in Section 5(e)
with such changes as may be necessary to reflect the amended and
supplemental financial information included or incorporated by
reference in such Registration Statement, the Prospectus and any
Permitted Free Writing Prospectus, as amended or supplemented to
the date of such letter.
11
(m) During
the period, if any, specified in any Terms Agreement, the Company
shall not, without the prior consent of the Purchaser thereunder,
issue or announce the proposed issuance of any of its debt
securities, including the Notes, with maturities or other terms
substantially similar to the Notes being purchased pursuant to such
Terms Agreement.
(n) The
Company shall not be required to comply with the provisions of
paragraphs (b), (j), (k) and (l) of this Section 4
during any period (which may occur from time to time during the
term of this Agreement) for which the Company has instructed the
Agents to suspend the solicitation of offers to purchase Notes;
provided that, during any such period, any Purchaser does not then
hold any Notes purchased pursuant to a Terms Agreement. The Company
shall be required to comply with the provisions of paragraphs (b),
(j), (k) and (l) of this Section 4 prior to
instructing the Agents to resume the solicitation of offers to
purchase Notes or prior to entering into a Terms
Agreement.
5.
Conditions to the Obligations of the Agents . The
obligations of each Agent to solicit offers to purchase the Notes
shall be subject to (i) the accuracy of the representations
and warranties on the part of the Company contained herein as of
the Execution Time, on the Effective Date and when any supplement
to the Prospectus is filed with the Commission, (ii) the
accuracy of the statements of the Company made in any certificates
pursuant to the provisions hereof, (iii) the performance by
the Company of its obligations hereunder and (iv) the
following additional conditions:
(a) If
filing of the Prospectus or any Permitted Free Writing Prospectus
or any supplement thereto, is required pursuant to Rule 424,
the Prospectus and any Permitted Free Writing Prospectus and any
such supplement, shall have been filed in the manner and within the
time period required by Rule 424; and no stop order suspending
the effectiveness of the Registration Statement nor any notice
objecting to its use shall have been issued and no proceedings for
that purpose shall have been instituted or threatened.
(b) The
Company shall have furnished to each Agent the opinion of Beverly
J. Burke, Esq., counsel for the Company, dated the Execution Time,
to the effect that:
(i) The Company
has been duly incorporated and is validly existing as a corporation
in good standing under the laws of the jurisdiction of its
incorporation, with power and authority (corporate and other) to
own its properties and conduct its business as described in the
Prospectus as amended or supplemented, and is duly qualified to do
business in each jurisdiction in which it owns or leases real
property or in which the conduct of its business requires such
qualification except where the failure to be so qualified,
considering all such cases in the aggregate, does not involve a
material risk to the business, properties, financial position or
results of operations of the Company.
(ii) To the best
of such counsel’s knowledge and other than as set forth or
contemplated in the Prospectus, there are no legal or governmental
proceedings pending to which the Company is a party or of which any
property of the Company is the subject which, if determined
adversely to the Company, would individually or in the aggregate
have a material adverse effect on the financial
12
position,
stockholder’s equity or results of operations of the Company;
and, to the best of such counsel’s knowledge, no such
proceedings are threatened or contemplated by governmental
authorities or threatened by others.
(iii) This
Agreement has been duly authorized, executed and delivered by the
Company.
(iv) The creation,
issuance and sale of the Notes has been duly and validly authorized
and, when issued within the limitations set forth in the orders
from the Public Service Commission of the District of Columbia, the
Public Service Commission of Maryland and the State Corporation
Commission of Virginia and such other applicable governmental
entities referred to in paragraph (vii) below and executed and
authenticated in accordance with the provisions of the Indenture
and delivered to and paid for by the purchasers thereof in
accordance with this Agreement, the Notes will constitute valid and
legally binding obligations of the Company entitled to the benefit
provided by the Indenture; and the Notes and the Indenture conform
to the descriptions thereof in the Prospectus.
(v) The Indenture
has been duly authorized, executed and delivered by the parties
thereto and constitutes a valid and legally binding instrument,
enforceable in accordance with its terms, subject as to
enforcement, to bankruptcy, insolvency, reorganization and other
laws of general applicability relating to or affecting
creditors’ rights and to general equity principles; and the
Indenture has been duly qualified under the Trust Indenture
Act.
(vi) The issue and
sale of the Notes and the compliance by the Company with all of the
provisions of the Notes, the Indenture and this Agreement and the
consummation of the transactions therein and herein contemplated
will not conflict with or result in a breach of any of the terms or
provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other agreement or
instrument known to such counsel to which the Company is a party or
by which the Company is bound or to which any of the property or
assets of the Company is subject, nor will such action result in
any violation of the provisions of the Company’s Charter, as
amended, or Bylaws or any statute or any order, rule or regulation
known to such counsel of any court or governmental agency or body
having jurisdiction over the Company or any of its
properties.
(vii) No consent,
approval, authorization, order, registration or qualification of or
with any court or governmental agency or body having jurisdiction
over the Company or any of its properties, is required for the
issue and sale of the Notes or the consummation by the Company of
the other transactions contemplated by this Agreement or the
Indenture, except such as have been obtained under the Act and the
Trust Indenture Act, and except for filings with and the orders
from the Public Service Commission of the District of Columbia, the
Public Service Commission of Maryland and the State
Corporation
13
Commission of
Virginia and such other applicable filings and orders required by
any other governmental entity having jurisdiction over the Company
authorizing the issuance and sale by the Company of the Notes, all
of which orders have been obtained and are in full force and
effect.
(viii) The
Registration Statement and the Prospectus (except as to the
financial statements and other financial data contained or
incorporated by reference therein as to which such counsel need
express no opinion) comply as to form in all material respects with
all applicable requirements of the Act, the Exchange Act and the
applicable instructions, rules and regulations of the Commission
thereunder; the Registration Statement has become effective under
the Act, and, to the best knowledge of such counsel, no proceedings
for a stop order with respect thereto nor any notices objecting to
its use have been instituted or are pending or threatened under
Section 8 of the Act; and such counsel has no reason to
believe that the Registration Statement, at its Effective Date,
contained an untrue statement of a material fact or omitted to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading, or that the Prospectus,
as of the date of such opinion, includes an untrue statement of a
material fact or omits to state a material fact necessary in order
to make the statements therein, in the light of the circumstances
under which they were made, not misleading.
(ix) The
Company’s gas distribution activities are exempt from the
Natural Gas Act.
(x) The Public
Service Commission of the District of Columbia, the Public Service
Commission of Maryland, the State Corporation Commission of
Virginia and such other governmental entities having jurisdiction
over the Company with respect to the issue and sale of the Notes
have issued appropriate orders with respect to the issuance and
sale of the Notes in accordance with this Agreement; such orders
are still in full force and effect; the issuance and sale of the
Notes in accordance with this Agreement conform with the terms of
such orders.
(c) Each
Agent shall have received from Hunton & Williams LLP, counsel
for the Agents, an opinion, dated the Execution Time, with respect
to the issuance and sale of the Notes, the Indenture, the
Registration Statements, the Prospectus (together with any
supplement thereto), and other related matters as the Agents may
reasonably require, and the Company shall have furnished to such
counsel such documents as they reasonably request for the purpose
of enabling them to pass upon such matters.
(d) The
Company shall have furnished to each Agent a certificate of the
Company, signed by any of the Chairman of the Board, the President,
the Chief Executive Officer, any Vice President having
responsibilities for financial matters, the Chief Accounting
Officer or the Treasurer of the Company, dated the Execution Time,
to the effect that the signer of such certificate has carefully
examined the Registration Statement, the Prospectus, any supplement
to the Prospectus and this Agreement and that:
14
(i) The
representations and warranties of the Company in this Agreement are
true and correct in all material respects on and as of the date of
such certificate with the same effect as if made at the Execution
Time and the Company has complied with all the agreements and
satisfied all the conditions on its part to be performed or
satisfied as a condition to the obligation of the Agents to solicit
offers to purchase the Notes.
(ii) No stop order
suspending the effectiveness of the Registration Statement or any
notice objecting to its use has been issued and no proceedings for
that purpose have been instituted or, to the Company’s
knowledge, threatened.
(iii)
(1) Since the date of the latest audited financial statements
included or incorporated by reference in the Registration Statement
and the Prospectus, there has not been any material loss or
interference with the Company’s business from fire,
explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental
action, order or decree, otherwise than as set forth or
contemplated in the Registration Statement and the Prospectus and
(2) since the respective dates as of which information is
given in the Registration Statement and the Prospectus, there has
not been any change in the capital stock (other than the effect of
stock-based compensation) or long-term debt (other than any
redemptions or purchases of First Mortgage Bonds or Medium Term
Notes, normal amortization of debt premium and discount, repayments
of bank or finance company borrowings and repurchases of commercial
paper) of the Company or any material change, or any development
involving a prospective material change, in or affecting the
general affairs, management, financial position,
stockholder’s equity, results of operations or properties of
the Company, otherwise than as set forth or contemplated in the
Registration Statement and the Prospectus.
(e) At
the Execution Time, Deloitte & Touche LLP shall have furnished
to each Agent a letter, dated as of the Execution Time, in form and
substance satisfactory to the Agents, confirming that it is an
independent registered public accounting firm within the meaning of
the Act and the rules and regulations of the Public Company
Accounting Oversight Board and the applicable published rules and
regulations thereunder and stating in effect that:
(i) In its opinion
the consolidated financial statements and related supplemental
schedules audited by it and included or incorporated by reference
in the Registration Statement and the Prospectus comply as to form
in all material respects with the applicable accounting
requirements of the Act and the Exchange Act and the published
rules and regulations thereunder.
(ii) On the basis
of a reading of the latest unaudited financial statements made
available by the Company; a reading of the minutes of the meetings
of the Board of Directors of the Company; and inquiries of certain
officials of the Company who have responsibility for financial and
accounting matters of the Company, nothing came to its attention
which caused it to believe that:
15
(1) any unaudited
condensed financial statements included or incorporated by
reference in the Registration Statement and the Prospectus do not
comply in form in all material respects with the applicable
accounting requirements and with the published rules and
regulations of the Commission with respect to financial statements
included or incorporated in Quarterly Reports on Form 10-Q under
the Exchange Act; or that any material modifications should be made
to said unaudited condensed financial statements, for them to be in
conformity with accounting principles generally accepted in the
United States of America;
(2) with respect
to the period subsequent to the date of the most recent financial
statements (other than any capsule information) included or
incorporated by reference in the Registration Statement and the
Prospectus (the “ Latest Date of Financials ”),
(A) there was any increase in long-term debt (other than
normal amortization of debt premium and discount) or decrease in
net assets or (B) there were any changes, at a specified date
not more than five days prior to the date of the letter, in the
common stock or non-redeemable serial preferred stock of the
Company as compared with the amounts shown on the most recent
balance sheet included or incorporated by reference in the
Registration Statement and the Prospectus; except in all instances
for changes or decreases that the Registration Statement and the
Prospectus disclose have occurred or may occur and except as set
forth in such letter;
(3) with respect
to the period subsequent to the Latest Date of Financials to the
date of the most recent available interim financial statements,
there were any decreases in operating revenues or net income
applicable to common stock of the Company, as compared with the
comparable period of the preceding year, except in all instances
for decreases that the Registration Statement and the Prospectus
disclose have occurred or may occur and except as set forth in such
letter; or
(4) the amounts
included in any unaudited “capsule” information
included or incorporated by reference in the Registration Statement
and the Prospectus do not agree with the amounts set forth in the
unaudited financial statements for the same periods or were not
determined on a basis substantially consistent with that of the
corresponding amounts in the audited financial statements included
or incorporated by reference in the Registration Statement and the
Prospectus.
(iii) It has
compared certain dollar amounts (or percentages derived from such
dollar amounts) and other financial information specified by the
Agents (A) which appear in the Prospectus under the caption
“Ratio of Earnings to Fixed Charges”, (B) which appear
or are incorporated by reference in the Company’s Annual
Report on Form 10-K incorporated by reference in the Registration
Statement and the Prospectus under the caption
“Management’s Discussion and
16
Analysis of
Financial Condition and Results of Operations” or
(C) which appear in any of the Company’s Quarterly
Reports on Form 10-Q incorporated by reference in the Registration
Statement and the Prospectus under the captions
“Management’s Discussion and Analysis of Financial
Condition and Results of Operations” and “Ratio of
Earnings to Fixed Charges” (in each case to the extent that
such dollar amounts, percentages and other financial information
are derived from the general accounting records of the Company
subject to the internal controls of the Company’s accounting
system or are derived directly from such records by analysis or
computation) with the results obtained from inquiries
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