Unless this
certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation
(“DTC”), to the Company (as defined below) or its agent
for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or
such other name as is requested by an authorized representative of
DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL, since the registered owner hereof, Cede
& Co., has an interest herein.
This Security is a
global Security within the meaning of the Indenture (as defined
below) and is registered in the name of the Depositary or a nominee
of the Depositary. This Security is exchangeable for Securities
registered in the name of a person other than the Depositary or its
nominee only in the limited circumstances described in the
Indenture. Unless and until this certificate is exchanged in whole
or in part for Securities in definitive registered form in
accordance with the provisions of the Indenture applicable to such
exchange, this certificate may not be transferred except as a whole
by the Depositary to a nominee of the Depositary or by a nominee of
the Depositary to the Depositary or another nominee of the
Depositary or by the Depositary or any such nominee to a successor
Depositary or a nominee of such successor Depositary.
8.875% Senior Notes due
2019
Unconditionally guaranteed as to
payment of
principal of and interest by
CBS OPERATIONS INC.
(a wholly owned subsidiary of CBS Corporation)
CBS
Corporation, a Delaware corporation (herein called the “
Company ”, which term includes any successor Person
under the Indenture hereinafter referred to), for value received,
hereby promises to pay to Cede & Co., or registered assigns,
the principal sum of
$[ ]
on May 15, 2019 at the office or agency of the Company
referred to below, and to pay interest thereon on November 15,
2009 and semiannually in arrears thereafter, on May 15 and
November 15 of each year (each, an “ Interest Payment
Date ”), from May 13, 2009, or from the most recent
Interest Payment Date to which interest has been paid or duly
provided for, at the rate of 8.875% per annum, until the principal
hereof is paid or duly provided for.
The
interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be
paid, in immediately available funds, to the Person in whose name
this Security (or one or more Predecessor Securities) is registered
at the close of business on the Regular Record Date for such
interest, which shall be the May 1 or November 1, as the case
may be, preceding such Interest Payment Date. Any such interest not
so punctually paid or duly provided for shall forthwith cease to be
payable to the Holder on such Regular Record Date, and such
Defaulted Interest, may be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered at
the close of business on a Special Record Date for the payment of
such Defaulted Interest to be fixed by the Trustee, notice whereof
shall be given to Holders of Securities not less than 10 days
prior to such Special Record Date, or may be paid at any time in
any other lawful manner, all as more fully provided in said
Indenture.
Payment
of the principal of and interest on this Security will be made at
the Corporate Trust Office of the Trustee or such other office or
agency of the Company as may be designated for such purpose, in
such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private
debts; provided however , that each installment of interest
and principal on this Security may at the Company’s option be
paid by check to the payee or in immediately available funds by
transfer to an account maintained by the payee located in the
United States.
Any
payment of principal or interest required to be made on a day that
is not a Business Day need not be made on such day, but may be made
on the next succeeding Business Day and no interest shall accrue as
a result of such delayed payment. For purposes of this Security,
“Business Day” means any day that is not a Saturday or
Sunday and that, in The City of
New York, is
not a day on which banking institutions are generally authorized or
obligated by law or executive order to close.
General . This Security is one of a duly authorized issue of
securities of the Company (herein called the “
Securities ”), unlimited in aggregate principal
amount, issued and to be issued in one or more series under an
amended and restated indenture dated as of November 3, 2008
among the Company, CBS Operations Inc., as guarantor (the “
Guarantor ”) and The Bank of New York Mellon, as
trustee (herein called the “ Trustee ”, which
term includes any successor trustee under the Indenture) (the
“ Indenture ”), to which Indenture and the
respective resolutions of the Company’s board of directors or
resolutions pursuant to the authority of the board of directors, an
Officer’s Certificate and/or indentures supplemental thereto,
as the case may be, reference is hereby made for a statement of the
respective rights, limitations of rights, duties, obligations and
immunities thereunder of the Company, the Trustee and the Holders
of the Securities, and of the terms upon which the Securities are,
and are to be, authenticated and delivered. This Security is one of
a series designated as 8.875% Senior Notes due 2019, initially
limited in aggregate principal amount to $350,000,000. This
Security is a global Security representing
$[ ]
of the Securities.
Authorized Denominations . The Securities of this series are
issuable only in registered form without coupons in denominations
of $2,000 and in integral multiples of $1,000.
Book-Entry Security . This Security is a
“book-entry” Security and is being registered in the
name of Cede & Co., as nominee of The Depository Trust Company
(“DTC”). Subject to the terms of the Indenture, this
Security will be held by DTC or its nominee, and beneficial
interests will be held by beneficial owners through the book-entry
facilities of DTC or its nominee in minimum denominations of $2,000
and in integral multiples of $1,000. As long as this Security is
registered in the name of DTC or its nominee, the Trustee will make
payments of principal of and interest on this Security by wire
transfer of immediately available funds to DTC or its nominee.
Notwithstanding the above, upon the maturity of this Security, the
principal, together with accrued interest thereon, will be paid in
immediately available funds upon surrender of this Security at the
Corporate Trust Office of the Trustee or such other offices or
agencies appointed by the Trustee for that purpose or such other
locations provided in the Indenture.
Event of Default . If an Event of Default with respect to
Securities of this series shall occur and be continuing, the
principal of the Securities of this series may be declared due and
payable in the manner and with the effect provided in the
Indenture.
Interest Rate Adjustment . The interest rate payable on the
Securities of this series will be subject to adjustment from time
to time if either Moody’s or S&P or, in either case, any
Substitute rating agency (as defined below) downgrades (or
downgrades and subsequently upgrades) the debt rating assigned to
the Securities of this series, in the manner described
below.
“
Moody’s ” means Moody’s Investors Service,
Inc., a subsidiary of Moody’s Corporation, and its
successors.
“
S&P ” means Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc., and its
successors.
“
Substitute rating agency ” means a “nationally
recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act
selected by the Company (as certified by a resolution of the
Company’s board of directors or a committee designated by the
Company’s board of directors) as a replacement agency for
Moody’s or S&P, or both of them, as the case may
be.
If
the rating from Moody’s (or any Substitute rating agency) of
the Securities of this series is decreased to a rating set forth in
the immediately following table, the interest rate on the
Securities of this series will increase such that it will equal the
interest rate payable on the Securities of this series on the date
of their issuance plus the percentage set forth opposite the
ratings from the table below:
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Moody’s
Rating*
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Percentage Points
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0.25
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0.50
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|
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0.75
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1.00
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*
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Including the
equivalent rating of any Substitute rating agency.
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If
the rating from S&P (or any Substitute rating agency) of the
Securities of this series is decreased to a rating set forth in the
immediately following table, the interest rate on the Securities of
this series will increase such that it will equal the interest rate
payable on the Securities of this series on the date of their
issuance plus the percentage set forth opposite the ratings from
the table below:
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S&P’s
Rating*
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Percentage Points
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0.25
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|
|
|
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0.50
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|
|
|
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0.75
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1.00
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*
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Including the
equivalent rating of any Substitute rating agency.
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If
at any time the interest rate on the Securities of this series has
been adjusted upward as a result of a decrease in a rating by
either Moody’s or S&P (or, in either case, a Substitute
rating agency), as the case may be, and subsequently such rating
agency increases its rating of the Securities of this series to any
of the threshold ratings set forth above, the interest rate on the
Securities of this series will be decreased such that the interest
rate for the Securities of this series will equal the interest rate
payable on the Securities of this series on the date of their
issuance plus the percentages set forth opposite the ratings from
the tables above in effect immediately following the increase in
rating. If the rating by Moody’s (or any Substitute rating
agency) of the Securities of this series is or becomes Baa3 (or its
equivalent, in the case of a Substitute rating agency) or higher,
and the rating by S&P (or any Substitute rating agency thereof)
is or becomes BBB- (or its equivalent, in the case of a Substitute
rating agency) or higher, the interest rate on the Securities of
this series will be decreased to the interest rate
payable on the
Securities of this series on the date of their issuance. In
addition, the interest rates on the Securities of this series will
permanently cease to be subject to any adjustment described above
(notwithstanding any subsequent decrease in the ratings by either
or both rating agencies) if the Securities of this series become
rated A3 and A- (or the equivalent of either such rating, in the
case of a Substitute rating agency) or higher by Moody’s and
S&P (or, in either case, a Substitute rating agency thereof),
respectively (or one of these ratings if the Securities of this
series are only rated by one rating agency).
Each
adjustment required by any decrease or increase in a rating set
forth above, whether occasioned by the action of Moody’s or
S&P (or, in either case, a Substitute rating agency), shall be
made independent of (and in addition to) any and all other
adjustments. In no event shall (a) the interest rate for the
Securities of this series be reduced to below the interest rate
payable on the Securities of this series on the date of their
issuance or (b) the total increase in the interest rate on the
Securities of this series exceed 2.00% above the interest rate
payable on the Securities of this series on the date of their
issuance.
No
adjustments in the interest rate of the Securities of this series
shall be made solely as a result of a rating agency ceasing to
provide a rating of the Securities of this series. If at any time
Moody’s or S&P ceases to provide a rating of the
Securities of this series, the Company will use its commercially
reasonable efforts to obtain a rating of the Securities of this
series from a Substitute rating agency, to the extent one exists,
and if a Substitute rating agency exists, for purposes of
determining any increase or decrease in the interest rate on the
Securities of this series pursuant to the tables above
(a) such Substitute rating agency will be substituted for the
last rating agency to provide a rating of the Securities of this
series but which has since ceased to provide such rating,
(b) the relative rating scale used by such Substitute rating
agency to assign ratings to senior unsecured debt will be
determined in good faith by an independent investment banking
institution of national standing appointed by the Company and, for
purposes of determining the applicable ratings included in the
applicable table above with respect to such Substitute rating
agency, such ratings will be deemed to be the equivalent ratings
used by Moody’s or S&P, as applicable, in such table and
(c) the interest rate on the Securities of this series will
increase or decrease, as the case may be, such that the interest
rate equals the interest rate payable on the Securities of this
series on the date of their issuance plus the appropriate
percentage, if any, set forth opposite the rating from such
Substitute rating agency in the applicable table above (taking into
account the provisions of clause (b) above) (plus any
applicable percentage resulting from a decreased rating by the
other rating agency). For so long as only one of Moody’s or
S&P provides a rating of the Securities of this series and no
Substitute rating agency is offered to replace the other rating
agency, any subsequent increase or decrease in the interest rate of
the Securities of this series necessitated by a reduction or
increase in the rating by the agency providing the rating shall be
twice the percentage set forth in the applicable table above. For
so long as none of Moody’s, S&P or a Substitute rating
agency provides a rating of the Securities of this series, the
interest rate on the Securities of this series will increase to, or
remain at, as the case may be, 2.00% above the interest rate
payable on the Securities of this series on the date of their
issuance.
Any
interest rate increase or decrease described above will take effect
on the next Business Day after the rating change has
occurred.
If
the interest rate payable on the Securities of this series is
increased as described in this “Interest Rate
Adjustment” Section, the term “interest,” as used
with respect to the Securities of this series, will be deemed to
include any such additional interest unless the context otherwise
requires.
Redemption and Maturity . The Securities of this
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