Exhibit 4.1
BOSTON PROPERTIES LIMITED
PARTNERSHIP
ISSUER
to
THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A.
TRUSTEE
Supplemental Indenture
No. 8
Dated as of October 9,
2009
$700,000,000
of
5.875 % Senior Notes due
2019
TABLE OF CONTENTS
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Page
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ARTICLE ONE RELATION TO SENIOR INDENTURE;
DEFINITIONS
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2
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SECTION 1.1.
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Relation to
Senior Indenture .
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2
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SECTION 1.2.
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Definitions .
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2
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ARTICLE TWO THE NOTES
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10
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SECTION 2.1.
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Title of the
Securities .
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10
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SECTION 2.2.
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Limitation
on Initial Aggregate Principal Amount; Further Issuances
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10
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SECTION 2.3.
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Interest and
Interest Rates; Maturity Date of Notes .
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11
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SECTION 2.4.
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Limitations
on Incurrence of Debt .
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12
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SECTION 2.5.
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Optional
Redemption .
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13
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SECTION 2.6.
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Places of
Payment .
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13
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SECTION 2.7.
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Method of
Payment .
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13
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SECTION 2.8.
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Currency .
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14
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SECTION 2.9.
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Global
Form .
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14
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SECTION 2.10.
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Form of
Notes and Execution .
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14
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SECTION 2.11.
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Transfer and
Exchange .
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14
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SECTION 2.12.
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General
Provisions Relating to Transfers and Exchanges
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16
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SECTION 2.13.
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Registrar
and Paying Agent .
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16
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SECTION 2.14.
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Defeasance .
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16
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SECTION 2.15.
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Provision of
Financial Information .
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16
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SECTION 2.16.
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Waiver of
Certain Covenants .
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17
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SECTION 2.17.
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No Sinking
Fund .
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17
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SECTION 2.18.
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No Repayment
at Option of Holders .
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17
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SECTION 2.19.
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Designation
of CBD Properties .
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18
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ARTICLE THREE MISCELLANEOUS
PROVISIONS
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18
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SECTION 3.1.
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Ratification
of Senior Indenture .
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18
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SECTION 3.2.
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Governing
Law .
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18
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SECTION 3.3.
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Counterparts .
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18
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SECTION 3.4.
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Trustee .
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18
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SCHEDULE A
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CBD Properties
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SC-A-1
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SCHEDULE B
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CBD
Markets
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SC-B-1
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EXHIBIT A
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Form of
Note
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A-1
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EXHIBIT B
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Form of
Officer’s Certificate
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B-1
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THIS SUPPLEMENTAL INDENTURE NO. 8,
dated as of October 9, 2009 (the “ Eighth
Supplemental Indenture ”), between BOSTON PROPERTIES
LIMITED PARTNERSHIP, a Delaware limited partnership (the “
Company ”), and THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A., a national banking association, as trustee (herein
called the “ Trustee ”).
WITNESSETH:
WHEREAS, the Company has heretofore
delivered to the Trustee an Indenture dated as of December 13,
2002 (the “ Senior Indenture ”), providing for
the issuance by the Company from time to time of its senior debt
securities evidencing its unsecured and unsubordinated indebtedness
(the “ Securities ”).
WHEREAS, Section 3.01 of the
Senior Indenture provides for various matters with respect to any
series of Securities issued under the Senior Indenture to be
established in an indenture supplemental to the Senior
Indenture.
WHEREAS, Section 9.01(7) of the
Senior Indenture provides for the Company and the Trustee to enter
into an indenture supplemental to the Senior Indenture to establish
the form or terms of Securities of any series as provided by
Sections 2.01 and 3.01 of the Senior Indenture.
WHEREAS, the Board of Directors of
Boston Properties, Inc. (“ Boston Properties ”),
the general partner of the Company, has duly adopted resolutions
authorizing the Company to execute and deliver this Eighth
Supplemental Indenture; and
WHEREAS, all of the conditions and
requirements necessary to make this Eighth Supplemental Indenture,
when duly executed and delivered, a valid and binding agreement in
accordance with its terms and for the purposes herein expressed,
have been performed and fulfilled.
NOW, THEREFORE, THIS EIGHTH
SUPPLEMENTAL INDENTURE WITNESSETH:
For and in consideration of the
premises and the purchase of the series of Securities provided for
herein by the Holders thereof, it is mutually covenanted and
agreed, for the equal and proportionate benefit of all Holders of
Securities of such series, as follows:
1
ARTICLE ONE
RELATION TO SENIOR INDENTURE;
DEFINITIONS
SECTION 1.1. Relation to Senior
Indenture .
This Eighth Supplemental Indenture
constitutes an integral part of the Senior Indenture.
SECTION 1.2. Definitions
.
For all purposes of this Eighth
Supplemental Indenture, except as otherwise expressly provided for
or unless the context otherwise requires:
(1) Capitalized terms used but not
defined herein shall have the respective meanings assigned to them
in the Senior Indenture; and
(2) All references herein to
Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Eighth Supplemental
Indenture.
“ Annualized Consolidated
EBITDA ” means, for any quarter, the product of
Consolidated EBITDA for such period of time multiplied by four (4),
provided that any non-recurring item that is an expense
shall be added back to net income in determining such Consolidated
EBITDA before such multiplication and deducted once from such
product, and further provided that any non-recurring
item that is income shall be added to such product once and shall
not be multiplied by four.
“ Annualized Interest
Expense ” means, for any quarter, the Interest Expense
for that quarter multiplied by four (4).
“ Another Person’s
Share ” means, in connection with the defined term
“Contingent Liabilities of Boston Properties Limited
Partnership and Subsidiaries”, (1) the aggregate direct
and indirect interests of each Person other than the Company or any
of its Subsidiaries in the equity capital of the applicable
Partially-Owned Entity, calculated by subtracting from 100% the
Percentage Interest with respect to such Partially-Owned Entity, or
(2) in the case of reimbursement owed to the Company or any of
its Subsidiaries by a third party in respect of payment made under
a guaranty, the amount to be reimbursed to the Company or any of
its Subsidiaries by such third party.
“ Applicable Procedures
” means, with respect to any transfer or exchange of
beneficial interests in any Global Note, the rules and procedures
of the Depositary that apply to such transfer or
exchange.
“ Capitalization Rate
” means: (i) 9.0% for properties other than the CBD
Properties, and (ii) 8.0% for properties which are CBD
Properties.
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“ Capitalized Property
Value ” means, as of any date, the sum of (1) with
respect to CBD Properties and non-CBD Properties, in each case that
are not hotel properties, the aggregate sum of all Property EBITDA
for each such CBD Property and non-CBD Property for the Latest
Completed Quarter prior to such date, annualized (i.e., multiplied
by four (4)), and capitalized at the applicable Capitalization Rate
plus (2) with respect to CBD Properties and non-CBD
Properties, in each case that are hotel properties, the aggregate
sum of all Property EBITDA for each such CBD Property and non-CBD
Property for the most recent four (4) consecutive completed
fiscal quarters, capitalized at the applicable Capitalization Rate;
provided , however , that if the value of a
particular property calculated pursuant to clause (1) or
(2) above, as applicable, is less than the undepreciated book
value of such property, as determined in accordance with GAAP, such
undepreciated book value shall be used in lieu thereof with respect
to such property.
“ CBD Properties
” means each of the properties set forth on Schedule A
attached hereto, together with each additional property which is,
from time to time, determined in good faith by the Company to be
located within the central business district of a CBD Market and
designated by the Company as a CBD Property in accordance with
Section 2.19 hereof.
“ CBD Markets ”
means each of the markets set forth on Schedule B attached
hereto.
“ Comparable Treasury
Issue ” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Notes that would 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
Notes.
“ Comparable Treasury
Price ” means, with respect to any Redemption Date,
(a) the bid price for the Comparable Treasury Issue (expressed
as a percentage of its principal amount) at 4:00 P.M. on the third
business day preceding such Redemption Date, as set forth on
“Reuters Page 500” (or such other page as may replace
Reuters Page 500), or (b) if such page (or any successor page)
is not displayed or does not contain such bid prices at such time
(i) the average of the Reference Treasury Dealer Quotations
obtained by the Trustee for such Redemption Date, after excluding
the highest and lowest of four such Reference Treasury Dealer
Quotations, or (ii) if the Trustee is unable to obtain at
least four such Reference Treasury Dealers Quotations, the average
of all Reference Treasury Dealer Quotations obtained by the
Trustee.
“ Consolidated EBITDA
” means, for any period of time, without duplication
(1) net income (loss), excluding net derivative gains and
gains (losses) on dispositions of real estate, before deductions
for (i) Interest Expense, (ii) taxes,
(iii) depreciation, amortization, net derivative losses and
all other non-cash items, as determined in good faith by the
Company, deducted in arriving at net income (loss),
(iv) extraordinary items, (v) non-recurring items, as
determined in good faith by the Company (including prepayment
penalties), and (vi) noncontrolling interest, of the Company
and its Subsidiaries; plus (2) the product of
(A) net income (loss), excluding net derivative
gains
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and gains (losses) on dispositions of real
estate, before deductions for (i) interest expense,
(ii) taxes, (iii) depreciation, amortization, net
derivative losses and all other non-cash items, as determined in
good faith by the Company, deducted in arriving at net income
(loss), (iv) extraordinary items, and (v) non-recurring
items, as determined in good faith by the Company (including
prepayment penalties), of Partially-Owned Entities, multiplied by
(B) the Company’s and its Subsidiaries’ percentage
share of such Partially-Owned Entities; minus (3) the
Company’s income (loss) from Partially-Owned Entities. In
each of cases (1), (2) and (3) for such period, amounts
shall be as reasonably determined by the Company in accordance with
GAAP, except to the extent GAAP is not applicable with respect to
the determination of all non-cash and non-recurring items.
Consolidated EBITDA shall be adjusted, without duplication, to give
pro forma effect: (x) in the case of any assets having been
placed-in-service or removed from service since the beginning of
the period and on or prior to the date of determination, to include
or exclude, as the case may be, any Consolidated EBITDA earned or
eliminated as a result of the placement of such assets in service
or removal of such assets from service as if the placement of such
assets in service or removal of such assets from service occurred
at the beginning of the period; and (y) in the case of any
acquisition or disposition of any asset or group of assets since
the beginning of the period and on or prior to the date of
determination, including, without limitation, by merger, or stock
or asset purchase or sale, to include or exclude, as the case may
be, any Consolidated EBITDA earned or eliminated as a result of the
acquisition or disposition of those assets as if the acquisition or
disposition occurred at the beginning of the period.
“ Consolidated Financial
Statements ” means, with respect to any Person,
collectively, the consolidated financial statements and notes to
those financial statements, of that Person and its subsidiaries
prepared in accordance with GAAP. For purposes of this definition,
if as of any date or for any period actual consolidated financial
statements of any Person have not been prepared, then this term
shall include the books and records of that Person ordinarily used
in the preparation of such financial statements.
“ Contingent Liabilities of
Boston Properties Limited Partnership and Subsidiaries ”
means, as of any date, without duplication, those liabilities of
the Company or any of its Subsidiaries consisting of indebtedness
for borrowed money, as determined in accordance with GAAP, that are
or would be stated and quantified as contingent liabilities in the
notes to the Consolidated Financial Statements of the Company as of
that date; provided , however , that Contingent
Liabilities of Boston Properties Limited Partnership and
Subsidiaries shall exclude Another Person’s Share of
Duplicated Obligations.
“ Debt ” means,
as of any date, without duplication, (1) in the case of the
Company, all indebtedness and liabilities for borrowed money,
secured or unsecured, of the Company, including the Notes to the
extent outstanding from time to time; (2) in the case of the
Company’s Subsidiaries, all indebtedness and liabilities for
borrowed money, secured or unsecured, of the Subsidiaries,
including in each of cases (1) and (2) mortgage and other
notes payable, but excluding in each of cases (1) and
(2) any indebtedness, including mortgages and other notes
payable, which is secured by cash, cash equivalents or marketable
securities or defeased (it being understood that cash collateral
shall be
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deemed to include cash deposited with a trustee
with respect to third party indebtedness; provided that such
trustee holds such cash for not more than 60 days from the date of
deposit); and (3) all Contingent Liabilities of Boston
Properties Limited Partnership and Subsidiaries. It is understood
that Debt shall not include any redeemable equity interest in the
Company.
“ Defaulted Interest
” has the meaning specified in Section 2.3
hereof.
“ Definitive Note
” means a certificated Note in the form of Exhibit A
hereto, registered in the name of the Holder thereof and issued in
accordance with Section 2.11 hereof, except that such Note
shall not bear the Global Note Legend.
“ Depositary ”
has the meaning assigned to it in Section 2.9(a)
hereof.
“ Duplicated
Obligations ” means, as of any date, collectively, all
those payment guaranties in respect of indebtedness and other
liabilities, secured or unsecured, of Partially-Owned Entities,
including mortgage and other notes payable, for which (1) the
Company or any of its Subsidiaries, on the one hand, and another
Person or Persons, on the other hand, are jointly and severally
liable or (2) the Company or any of its Subsidiaries are
entitled to reimbursement in respect of payment under such
guaranties from another Person or Persons.
“ GAAP ” means
generally accepted accounting principles in the United States,
consistently applied, as in effect from time to time.
“ Global Notes ”
means, individually or collectively, any of the Notes issued as
Global Securities under the Senior Indenture.
“ Global Note Legend
” means the legend set forth in Section 2.03 of the
Senior Indenture, which is required to be placed on all Global
Notes issued under the Senior Indenture.
“ Holders ” has
the meaning specified in Section 2.3 hereof.
“ Incur ” means,
with respect to any Debt or other obligation of any Person, to
create, assume, guarantee or otherwise become liable in respect of
the Debt or other obligation, and “ Incurrence ”
and “ Incurred ” have the meanings correlative
to the foregoing.
“ Independent Investment
Banker ” means such independent investment banking
institution of national standing appointed by the Company from time
to time.
“ Indirect Participant
” means a Person who holds a beneficial interest in a Global
Note through a Participant.
“ Intercompany Debt
” means, as of any date, Debt to which the only parties are
Boston Properties, the Company, any Subsidiary of either of them as
of that date or any Partially-Owned Entity.
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“ Interest Expense
” means, for any period of time, the aggregate amount of
interest recorded in accordance with GAAP for such period of time
by the Company and its Subsidiaries, but excluding:
(i) interest reserves funded from the proceeds of any loan and
(ii) amortization of deferred financing costs; and
including, without duplication: (A) effective interest
in respect of original issue discount as determined in accordance
with GAAP; and (B) without limitation or duplication, the
interest expense (determined as provided above) of Partially-Owned
Entities, multiplied by the Company’s Percentage Interest of
the Partially-Owned Entity Outstanding Debt in such Partially-Owned
Entities, in all cases as reflected in the applicable Consolidated
Financial Statements.
“ Interest Payment Date
” has the meaning specified in Section 2.3
hereof.
“ Latest Completed
Quarter ” means the most recently ended fiscal quarter of
the Company for which Consolidated Financial Statements of the
Company have been completed, it being understood that at any time
when the Company is subject to the informational requirements of
the Securities Exchange Act of 1934, as amended (the “
Exchange Act ”), and in accordance therewith files
annual and quarterly reports with the Commission, the term
“Latest Completed Quarter” shall be deemed to refer to
the fiscal quarter covered by the Company’s most recently
filed Quarterly Report on Form 10-Q, or, in the case of the last
fiscal quarter of the year, the Company’s Annual Report on
Form 10-K.
“ Lien ” means,
without duplication, any lien, mortgage, trust deed, deed of trust,
deed to secure debt, pledge, security interest, assignment for
collateral purposes, deposit arrangement, or other security
agreement, excluding any right of setoff but including, without
limitation, any conditional sale or other title retention
agreement, any financing lease having substantially the same
economic effect as any of the foregoing, and any other like
agreement granting or conveying a security interest;
provided , that for purposes hereof, “Lien”
shall not include any mortgage that has been defeased by the
Company, any of its Subsidiaries or any of the Partially-Owned
Entities in accordance with the provisions thereof through the
deposit of cash, cash equivalents or marketable securities (it
being understood that cash collateral shall be deemed to include
cash deposited with a trustee with respect to third party
indebtedness).
“ Notes ” has the
meaning specified in Section 2.1 hereof.
“ Partially-Owned
Entity ” means, at any time, any of the partnerships,
associations, corporations, limited liability companies, trusts,
joint ventures or other business entities in which the Company,
directly, or indirectly through full or partial ownership of
another entity, owns an equity interest, but which is not required
in accordance with GAAP to be consolidated with the Company for
financial reporting purposes.
“ Partially-Owned Entity
Outstanding Debt ” means, as of any date, the aggregate
principal amount of all outstanding indebtedness and liabilities
for borrowed money, secured or unsecured, of the applicable
Partially-Owned Entity, including mortgage and other notes payable
but excluding any indebtedness which is secured by cash,
cash
6
equivalents or marketable securities or defeased
(it being understood that cash collateral shall be deemed to
include cash deposited with a trustee with respect to third party
indebtedness), all as reflected in the Consolidated Financial
Statements of such Partially-Owned Entity as of such
date.
“ Participant ”
means, with respect to the Depositary, a Person who has an account
with the Depositary, as the case may be (and, with respect to The
Depository Trust Company, shall include Euroclear and
Clearstream).
“ Percentage Interest
” means, with respect to a Partially-Owned Entity, the
Company’s direct or indirect interest in the equity capital
of such entity without giving effect to any incentive or
performance-based sharing in the entity’s cash flow from
operations or proceeds from capital transactions in excess of such
equity interest.
“ Property EBITDA
” means for any property, CBD Property or non-CBD Property,
for any period of time, without duplication, (1) if the
property is owned by the Company or any of its Subsidiaries, the
net income (loss) derived from such property, excluding net
derivative gains and gains (losses) on dispositions of real estate,
before deductions for (i) Interest Expense, (ii) taxes,
(iii) depreciation, amortization, net derivative losses and
all other non-cash items, as determined in good faith by the
Company, deducted in arriving at net income (loss),
(iv) extraordinary items, (v) non-recurring items, as
determined in good faith by the Company (including prepayment
penalties), and (vi) noncontrolling interest, and (2) if
the property is owned by a Partially-Owned Entity, the product of
(A) net income (loss) derived from such property, excluding
net derivative gains and gains (losses) on dispositions of real
estate, before deductions for (i) interest expense,
(ii) taxes, (iii) depreciation, amortization, net
derivative losses and all other non-cash items, as determined in
good faith by the Company, deducted in arriving at net income
(loss), (iv) extraordinary items, and (v) non-recurring
items, as determined in good faith by the Company (including
prepayment penalties), multiplied by (B) the Company’s
and its Subsidiaries’ percentage share of such
Partially-Owned Entity. In each of cases (1) and (2) for
such period, amounts shall be as reasonably determined by the
Company in accordance with GAAP, except to the extent GAAP is not
applicable with respect to the determination of all non-cash and
non-recurring items. Property EBITDA shall be adjusted, without
duplication, to give pro forma effect: (x) in the case of any
assets having been placed-in-service or removed from service since
the beginning of the period and on or prior to the date of
determination, to include or exclude, as the case may be, any
Property EBITDA earned or eliminated as a result of the placement
of such assets in service or removal of such assets from service as
if the placement of such assets in service or removal of such
assets from service occurred at the beginning of the period; and
(y) in the case of any acquisition or disposition of any asset
or group of assets since the beginning of the period and on or
prior to the date of determination, including, without limitation,
by merger, or stock or asset purchase or sale, to include or
exclude, as the case may be, any Property EBITDA earned or
eliminated as a result of the acquisition or disposition of those
assets as if the acquisition or disposition occurred at the
beginning of the period. For purposes of this definition, in the
case of (1) and (2) above, Property EBITDA shall exclude
general and administrative expenses as reflected in the
Company’s audited year-end Consolidated Financial
7
Statements or reviewed interim Consolidated
Financial Statements available for the Latest Completed Quarter or
the most recent four (4) consecutive completed fiscal
quarters, as applicable.
“ Reference Treasury
Dealer ” means, as determined by the Company, either
(a) Banc of America Securities LLC, Citigroup Global Markets
Inc. and Deutsche Bank Securities Inc. (or any of their respective
successors) and one other primary U.S. government securities dealer
in New York City (a “ Primary Treasury Dealer ”)
appointed by the Company or (b) one Primary Treasury Dealer
appointed by the Company and three other Primary Treasury Dealers
selected by the Independent Investment Banker; provided ,
however , that if any of the foregoing shall cease to be a
Primary Treasury Dealer, the Company shall substitute therefor
another Primary Treasury Dealer.
“ Reference Treasury Dealer
Quotations ” means, with respect to each Reference
Treasury Dealer and any Redemption Date for the Notes, an average,
as determined by the Trustee, of the bid and asked prices for the
Comparable Treasury Issue for the Notes (expressed in each case as
a percentage of its principal amount) quoted in writing to the
Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third business day preceding such Redemption
Date.
“ Regular Record Date
” has the meaning specified in Section 2.3
hereof.
“ Secured Debt ”
means, as of any date, that portion of Total Outstanding Debt as of
that date that is secured by a Lien on properties or other assets
of the Company, any of its Subsidiaries or any of the
Partially-Owned Entities.
“ Securities Act
” means the Securities Act of 1933, as amended from time to
time.
“ Special Record Date
” has the meaning specified in Section 2.3
hereof.
“ Stated Maturity Date
” has the meaning specified in Section 2.3
hereof.
“ Subsidiary ”
means, with respect to any Person, a corporation, partnership
association, joint venture, trust, limited liability company or
other business entity which is required to be consolidated with the
Company or Boston Properties in accordance with GAAP.
“ Total Assets ”
means, with respect to any Incurrence of Debt or Secured Debt, as
of any date, in each case as determined by the Company without
duplication, the sum of: (1) Capitalized Property Value;
(2) cash, cash equivalents and marketable securities of the
Company and its Subsidiaries, determined in accordance with GAAP;
(3) with respect to notes receivable and mortgages, the lesser
of (i) the aggregate amount of principal under such note or
mortgage that will be due and payable to the Company or its
Subsidiaries and (ii) the purchase price paid by the Company
or its Subsidiaries to acquire such note or mortgage; (4) with
respect to real estate assets which are undeveloped land, the book
value thereof in accordance with GAAP; (5) without
duplication, the cost basis of properties of the Company and its
Subsidiaries that are under development, determined in accordance
with GAAP, as of the end of the quarterly
8
period used for purposes of clause
(1) above; (6) without duplication, the proceeds of the
Debt or Secured Debt or the assets to be acquired in exchange for
such proceeds, as the case may be, other than Intercompany Debt,
Incurred from the end of the Latest Completed Quarter prior to the
Incurrence of the Debt or Secured Debt, as the case may be, to the
date of determination; and (7) the Company’s and its
Subsidiaries’ percentage share of Partially-Owned
Entities’ assets described in clauses (1), (2), (3), (4),
(5) and (6) above.
“ Total Outstanding
Debt ” means, as of any date, the sum, without
duplication, of (1) the aggregate principal amount of all
outstanding Debt of the Company as of that date; (2) the
aggregate principal amount of all outstanding Debt of the
Company’s Subsidiaries, all as of that date; and (3) the
sum of the aggregate principal amount of all Partially-Owned Entity
Outstanding Debt of each of the Partially-Owned Entities multiplied
by the Company’s respective Percentage Interest in such
Partially-Owned Entity as of that date.
“ Treasury Yield
” means, with respect to any Redemption Date applicable to
the Notes, the rate per annum equal to the semi-annual equivalent
yield to maturity (computed as of the third business day
immediately preceding such Redemption Date) of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the
applicable Comparable Treasury Price for such Redemption
Date.
“ Unencumbered Assets
” means, as of any date, in each case as determined by the
Company without duplication, the sum of: (1) Unencumbered
Capitalized Property Value; (2) cash, cash equivalents and
marketable securities of the Company and its Subsidiaries, other
than restricted cash, cash equivalents and marketable securities
pledged to secure Debt, determined in accordance with GAAP;
(3) with respect to notes receivable and mortgages, the lesser
of (i) the aggregate amount of principal under such note or
mortgage that will be due and payable to the Company or its
Subsidiaries and (ii) the purchase price paid by the Company
or its Subsidiaries to acquire such note or mortgage, except any
notes receivable or mortgages that are serving as collateral for
Secured Debt; (4) with respect to real estate assets which are
undeveloped land, the book value thereof in accordance with GAAP,
except any land that is serving as collateral for Secured Debt;
(5) without duplication, the cost basis of properties of the
Company and its Subsidiaries that are under development, determined
in accordance with GAAP, as of the end of the quarterly period used
for purposes of clause (1) above, except any properties that
are serving as collateral for Secured Debt; (6) without
duplication, the proceeds of the Debt or Secured Debt or the assets
to be acquired in exchange for such proceeds, as the case may be,
other than Intercompany Debt, Incurred from the end of the Latest
Completed Quarter prior to such date to the date of determination,
except in each case any proceeds or assets that are serving as
collateral for Secured Debt; and (7) the Company’s and
its Subsidiaries’ percentage share, of Partially-Owned
Entities’ assets described in clauses (1), (2), (3), (4),
(5) and (6) above. For the avoidance of doubt, cash held
by a “qualified intermediary” in connection with
proposed like-kind exchanges pursuant to Section 1031 of the
Internal Revenue Code of 1986, as amended, which may be classified
as “restricted” for GAAP purposes shall nonetheless be
included in clause
9
(2) above, so long as the Company or any of its
Subsidiaries has the right to (i) direct the qualified
intermediary to return such cash to the Company or such Subsidiary
if and when the Company or such Subsidiary fails to identify or
acquire the proposed like-kind property or at the end of the
180-day replacement period or (ii) direct the qualified
intermediary to use such cash to acquire like-kind
property.
“ Unencumbered Capitalized
Property Value ” means, as of any date, the sum of
(1) with respect to CBD Properties and non-CBD Properties, in
each case that are not hotel properties, the aggregate of all
Unencumbered Property EBITDA for each such CBD Property and non-CBD
Property for the Latest Completed Quarter prior to such date,
annualized (i.e., multiplied by four (4)), and capitalized at the
applicable Capitalization Rate plus, (2) with respect
to CBD Properties and non-CBD Properties, in each case that are
hotel properties, the aggregate of all Unencumbered Property EBITDA
for each such CBD Property and non-CBD Property for the most recent
four (4) consecutive complete fiscal quarters, capitalized at
the applicable Capitalization Rate; provided ,
however , that if the value of a particular property
calculated pursuant to clause (1) or (2) above, as
applicable, is less than the undepreciated book value of such
property determined in accordance with GAAP, such undepreciated
book value shall be used in lieu thereof with respect to such
property.
“ Unencumbered Consolidated
EBITDA ” means, for any period of time, Consolidated
EBITDA for such period of time less any portion thereof
attributable to assets serving as collateral for Secured
Debt.
“ Unencumbered Property
EBITDA ” means, for any period of time, Property EBITDA
for such period of time less any portion thereof attributable to
assets serving as collateral for Secured Debt.
“ Unsecured Debt
” means, as of any date, that portion of Total Outstanding
Debt as of that date that is neither Secured Debt nor Contingent
Liabilities of Boston Properties Limited Partnership and
Subsidiaries.
ARTICLE TWO
THE NOTES
SECTION 2.1. Title of the
Securities .
There shall be a series of
Securities designated the “5.875% Senior Notes due
2019” (the “ Notes ”).
SECTION 2.2. Limitation on
Initial Aggregate Principal Amount; Further Issuances
.
The aggregate principal amount of
the Notes initially shall be limited to $700,000,000. The Company
may, from time to time, subject to Section 2.4 of
this
10
Eighth Supplemental Indenture and applicable
law, create and issue additional Notes under this Eighth
Supplemental Indenture ranking equally and ratably with the
outstanding Notes in all respects (or in all respects except for
the payment of interest accruing prior to the issue date of such
additional Notes or except for the first payment of interest
following the issue date of such additional Notes) without notice
to or the consent of the Holders of outstanding Notes. The
initially issued Notes and any additional Notes subsequently issued
shall be consolidated and form a single series with the outstanding
Notes for all purposes of this Eighth Supplemental Indenture and
shall have the same terms as to status, redemption or otherwise as
the outstanding Notes. Any such additional Notes referred to in
this Section 2.2 will be issued under a further supplemental
indenture.
Nothing contained in this
Section 2.2 or elsewhere in this Eighth Supplemental
Indenture, or in the Notes, is intended to or shall limit execution
by the Company or authentication or delivery by the Trustee of
Notes under the circumstances contemplated by Sections 3.03, 3.04,
3.05, 3.06, 9.06, 11.07 and 13.05 of the Senior
Indenture.
SECTION 2.3. Interest and
Interest Rates; Maturity Date of Notes .
(a) The Notes shall bear interest at
5.875% per annum from October 9, 2009 or from the
immediately preceding Interest Payment Date (as defined below) to
which interest has been paid, payable semi-annually in arrears on
April 15 and October 15 of each year, commencing
April 15, 2010 (each, an “ Interest Payment Date
”), to the persons (the “ Holders ”) in
whose name the applicable Notes are registered in the Security
Register at the close of business 15 calendar days prior to such
Interest Payment Date ( i.e. , March 31 and
September 30, respectively) (regardless of whether such day is
a Business Day, as defined below), as the case may be (each, a
“ Regular Record Date ”). Interest on the Notes
shall be computed on the basis of a 360-day year of twelve 30-day
months. Interest, if any, not punctually paid or duly provided for
on any Interest Payment Date with respect to a Note (“
Defaulted Interest ”) shall forthwith cease to be
payable to the Holder on the applicable Regular Record Date and may
either be paid to the person in whose name such Note is registered
at the close of business on a special record date (the “
Special Record Date ”) for the payment of such
Defaulted Interest to be fixed by the Trustee, notice of which
shall be given to the Hol