Exhibit 10.1
REGISTRATION RIGHTS AGREEMENT
by
and among
METROPCS WIRELESS, INC.
THE GUARANTORS PARTY HERETO
and
BEAR, STEARNS & CO. INC.
June 6, 2007
This
Registration Rights Agreement (this “ Agreement
”) is made and entered into as of June 6, 2007 by and
among MetroPCS Wireless, Inc., a Delaware corporation (the “
Company ”), and each of the guarantors listed
on Schedule I hereto (the “ Guarantors
”) and Bear, Stearns & Co. Inc. (the “
Initial Purchaser ”). The Initial Purchaser has
agreed to purchase $500,000,000 aggregate principal amount of the
Company’s 9 1/4% Senior Notes due
November 1, 2014 (the “ Notes ”)
pursuant to the Purchase Agreement (as defined below).
This
Agreement is made pursuant to the Purchase Agreement, dated
May 31, 2007, (the “ Purchase Agreement
”), by and among the Company, the Guarantors, and the Initial
Purchaser. In order to induce the Initial Purchaser to purchase the
Notes, the Company and the Guarantors have agreed to provide the
registration rights set forth in this Agreement. The execution and
delivery of this Agreement is a condition to the obligations of the
Initial Purchaser set forth in Section 10(j) of the Purchase
Agreement. Capitalized terms used herein and not otherwise defined
shall have the meaning assigned to them in the Indenture (the
“ Indenture ”), dated November 3,
2006, among the Company, the Guarantors and The Bank of New York,
as Trustee, relating to the Notes and the Exchange Notes (as
defined below).
The
parties hereby agree as follows:
As used
in this Agreement, the following capitalized terms shall have the
following meanings:
Agreement . As defined in the first paragraph
hereof.
Affiliate : As defined in Rule 144 of the
Securities Act.
Broker-Dealer : Any broker or dealer registered under
the Exchange Act.
Capital Stock : As defined in the Purchase
Agreement.
Certificated Securities : Definitive Notes, as
defined in the Indenture.
Closing Date : The date hereof.
Commission : The United States Securities and
Exchange Commission.
Company . As defined in the first paragraph of this
Agreement.
Consummate : An Exchange Offer shall be deemed
“Consummated” for purposes of this Agreement upon the
occurrence of (i) the filing and effectiveness under the
Securities Act of the Exchange Offer Registration Statement
relating to the Exchange Notes to be issued in the Exchange Offer,
(ii) the maintenance of such Exchange Offer Registration
Statement continuously effective and the keeping of the Exchange
Offer open for a period not less than the period required pursuant
to Section 3(b) hereof and (iii) the delivery by the Company
to the Registrar under the Indenture of Exchange Notes in the same
aggregate principal amount as the
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aggregate principal amount of Notes tendered by Holders thereof
pursuant to the Exchange Offer.
Consummation Deadline : As defined in Section 3(b)
hereof.
Effectiveness Deadline : As defined in Sections 3(a)
and 4(a) hereof.
Exchange Act : The United States Securities Exchange
Act of 1934, as amended.
Exchange Notes : The Company’s 9 1/4% Senior
Notes due 2014 and the related guarantees to be issued pursuant to
the Indenture: (i) in the Exchange Offer or (ii) as
contemplated by Section 4 hereof.
Exchange Offer : The exchange and issuance by the
Company of a principal amount of Exchange Notes (which shall be
registered pursuant to the Exchange Offer Registration Statement)
equal to the outstanding principal amount of Notes that are
tendered by such Holders in connection with such exchange and
issuance, and evidencing the same continuing Indebtedness.
Exchange Offer Registration Statement : As defined in
Section 3(a) hereof.
Exempt Resales : The transactions in which the
Initial Purchaser propose to sell the Notes to certain
“qualified institutional buyers,” as such term is
defined in Rule 144A under the Securities Act and pursuant to
Regulation S under the Securities Act.
Existing Exchange Offer Registration Statement . The
registration statement on Form S-4 related to an exchange offer for
the Existing Notes filed by the Company and the Guarantors with the
Commission on May 15, 2007.
Existing Notes . The $1,000,000,000 aggregate
principal amount of the Company’s 9 1 / 4 % Senior Notes due November 1, 2014
issued by the Company on November 3, 2006.
Filing Deadline : As defined in Sections 3(a) and
4(a) hereof.
Guarantors . As defined in the first paragraph of
this Agreement.
Holders : As defined in Section 2 hereof.
Indemnified Party . As defined in Section 8(c)
hereof.
Indemnifying Party . As defined in Section 8(c)
hereof.
Indenture . As defined in the second paragraph of
this Agreement.
Initial Purchaser . As defined in the first paragraph
of this Agreement.
Notes . As defined in the first paragraph of this
Agreement.
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Prospectus : The prospectus included in a
Registration Statement at the time such Registration Statement is
declared effective, as amended or supplemented by any prospectus
supplement and by all other amendments thereto, including
post-effective amendments, and all material incorporated by
reference into such Prospectus.
Purchase Agreement . As defined in the second
paragraph of this Agreement.
Recommencement Date : As defined in Section 6(d)
hereof.
Registration Default : As defined in Section 5
hereof.
Registration Statement : Any registration statement
of the Company and the Guarantors relating to (a) an offering
of Exchange Notes pursuant to an Exchange Offer or (b) the
registration for resale of Transfer Restricted Securities pursuant
to the Shelf Registration Statement, in each case, (i) that is
filed pursuant to the provisions of this Agreement and
(ii) including the Prospectus included therein, all amendments
and supplements thereto (including post-effective amendments) and
all exhibits and material incorporated by reference therein.
Regulation S : Regulation S promulgated
under the Securities Act.
Rule 144 : Rule 144 promulgated under the
Securities Act.
Securities Act : The United States Securities Act of
1933, as amended.
Shelf Registration Statement : As defined in
Section 4 hereof.
Suspension Notice : As defined in Section 6(d)
hereof.
TIA : The Trust Indenture Act of 1939 (15 U.S.C.
Section 77aaa-77bbbb) as in effect on the date of the
Indenture.
Transfer Restricted Securities : Each (A) Note,
until the earliest to occur of (i) the date on which such Note
is exchanged in the Exchange Offer for an Exchange Note which is
entitled to be resold to the public by the Holder thereof without
complying with the prospectus delivery requirements of the
Securities Act, (ii) the date on which such Note has been
disposed of in accordance with a Shelf Registration Statement (and
the purchasers thereof have been issued Exchange Notes), or
(iii) the date on which such Note is distributed to the public
pursuant to Rule 144 under the Securities Act and each
(B) Exchange Note held by a Broker Dealer until the date on
which such Exchange Note is disposed of by a Broker-Dealer pursuant
to the “Plan of Distribution” contemplated by the
Exchange Offer Registration Statement (including the delivery of
the Prospectus contained therein).
A
Person is deemed to be a holder of Transfer Restricted Securities
(each, a “ Holder ”) whenever such Person
owns Transfer Restricted Securities.
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| SECTION 3. |
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REGISTERED EXCHANGE OFFER |
(a) Unless
the Exchange Offer shall not be permitted by applicable law (after
the procedures set forth in Section 6(a)(i) below have been
complied with) or Commission policy, the Company and the Guarantors
shall (i) cause an amendment to the Existing Exchange Offer
Registration Statement covering the Exchange Offer for the Notes
(the Existing Exchange Offer Registration Statement (including the
related Prospectus) as so amended, the “ Exchange Offer
Registration Statement ”) to be filed with the
Commission on or prior to 120 days after the Closing Date
(such date being the “ Filing Deadline
”), (ii) use all commercially reasonable efforts to
cause such Exchange Offer Registration Statement to be declared
effective by the Commission on or prior to 180 days after the
filing of the Existing Exchange Offer Registration Statement (such
day being the “ Effectiveness Deadline
”), (iii) in connection with the foregoing,
(A) file all pre-effective amendments to such Exchange Offer
Registration Statement as may be necessary in order to cause the
Exchange Offer Registration Statement to be declared effective,
(B) file, if applicable, a post-effective amendment to such
Exchange Offer Registration Statement pursuant to Rule 430A
under the Securities Act and (C) cause all necessary filings,
if any, in connection with the registration and qualification of
the Exchange Notes to be made under the Blue Sky laws of such
jurisdictions as are necessary to permit Consummation of the
Exchange Offer, and (iv) as soon as practicable following the
effectiveness of such Exchange Offer Registration Statement,
commence and Consummate the Exchange Offer. The Exchange Offer
shall be on the appropriate form permitting (i) registration of the
Exchange Notes to be offered in exchange for the Notes that are
Transfer Restricted Securities and (ii) resales of Exchange
Notes by Broker-Dealers that tendered into the Exchange Offer Notes
that such Broker-Dealer acquired for its own account as a result of
market making activities or other trading activities (other than
Notes acquired directly from the Company or any of its Affiliates)
as contemplated by Section 3(c) below.
(b) The
Company and the Guarantors shall use their respective commercially
reasonable efforts to cause the Exchange Offer Registration
Statement to be effective continuously, and shall keep the Exchange
Offer open for a period of not less than the minimum period
required under applicable federal and state securities laws to
Consummate the Exchange Offer; provided, however, that in no
event shall such period be less than 20 business days. The Company
and the Guarantors shall cause the Exchange Offer to comply with
all applicable federal and state securities laws. No securities
other than the Exchange Notes shall be included in the Exchange
Offer Registration Statement. The Company and the Guarantors shall
use all commercially reasonable efforts to cause the Exchange Offer
to be Consummated on the earliest practicable date after the
Exchange Offer Registration Statement has become effective, but in
no event later than 30 business days thereafter, or longer, if
required by the federal securities laws (the last day of such
period being the “ Consummation Deadline
”).
(c) The
Company shall include a “Plan of Distribution” section
in the Prospectus contained in the Exchange Offer Registration
Statement and indicate therein that any Broker-Dealer who holds
Transfer Restricted Securities that were acquired for the account
of such Broker-Dealer as a result of market-making activities or
other trading activities (other than Notes acquired directly from
the Company or any Affiliate of the Company), may exchange such
Transfer Restricted Securities pursuant to the Exchange Offer. Such
“Plan of Distribution” section shall also contain all
other information with respect to such sales by such Broker-Dealers
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that the
Commission may require in order to permit such sales pursuant
thereto, but such “Plan of Distribution” shall not name
any such Broker-Dealer or disclose the amount of Transfer
Restricted Securities held by any such Broker-Dealer, except to the
extent required by the Commission as a result of a change in
policy, rules or regulations after the date of this Agreement. See
the Shearman & Sterling no-action letter (available
July 2, 1993).
Because
such Broker-Dealer may be deemed to be an “underwriter”
within the meaning of the Securities Act and must, therefore,
deliver a prospectus meeting the requirements of the Securities Act
in connection with its initial sale of any Exchange Notes received
by such Broker-Dealer in the Exchange Offer, the Company and the
Guarantors shall permit the use of the Prospectus contained in the
Exchange Offer Registration Statement by such Broker-Dealer to
satisfy such prospectus delivery requirement. To the extent
necessary to ensure that the prospectus contained in the Exchange
Offer Registration Statement is available for sales of Exchange
Notes by Broker-Dealers, the Company and the Guarantors agree to
use their respective commercially reasonable efforts to keep the
Exchange Offer Registration Statement continuously effective,
supplemented, amended and current as required by and subject to the
provisions of Section 6(a) and (c) hereof and in conformity
with the requirements of this Agreement, the Securities Act and the
policies, rules and regulations of the Commission as announced from
time to time, for a period of 180 days from the Consummation
Deadline or such shorter period as will terminate when all Transfer
Restricted Securities covered by such Registration Statement have
been sold pursuant thereto. The Company and the Guarantors shall
provide sufficient copies of the latest version of such Prospectus
to such Broker-Dealers, promptly upon request, and in no event
later than two business days after such request, at any time during
such period.
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| SECTION 4. |
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SHELF REGISTRATION |
(a)
Shelf Registration . If (i) the Company and the
Guarantors are not (A) required to file the Exchange Offer
Registration Statement or (B) permitted to Consummate the
Exchange Offer because the Exchange Offer is not permitted by
applicable law (after the Company and the Guarantors have complied
with the procedures set forth in Section 6(a)(i) below) or
Commission policy or (ii) if any Holder of Transfer Restricted
Securities shall notify the Company within 20 business days
following the consummation of the Exchange Offer that (A) such
Holder was prohibited by law or Commission policy from
participating in the Exchange Offer; (B) such Holder may not
resell the Exchange Notes acquired by it in the Exchange Offer to
the public without delivering a prospectus and the Prospectus
contained in the Exchange Offer Registration Statement is not
appropriate or available for such resales by such Holder; or
(C) such Holder is a Broker-Dealer and holds Notes acquired
directly from the Company or any of its Affiliates, then the
Company and the Guarantors shall use all commercially reasonable
efforts to file with the Commission a Shelf Registration Statement
(as defined below) to cover resales of the Notes by Holders of the
Notes who satisfy certain conditions relating to the provision of
information in connection with the Shelf Registration Statement. If
obligated to file a Shelf Registration Statement, the Company and
the Guarantors shall use all commercially reasonable efforts
to:
(x) file, on or prior to
30 days after the earlier of (i) the date on which the
Company determines that the Exchange Offer Registration Statement
cannot be filed as a result of clause (a)(i) above and
(ii) the date on which the Company receives the notice
specified in clause (a)(ii)
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above,
(such earlier date, the “ Filing Deadline
”), a shelf registration statement pursuant to Rule 415
under the Securities Act (which may be an amendment to the Exchange
Offer Registration Statement (the “ Shelf Registration
Statement ”)), relating to all Transfer Restricted
Securities, and
(y) cause such Shelf
Registration Statement to be declared effective by the Commission
on or prior to 180 days after the Filing Deadline for the
Shelf Registration Statement (such 180th day the “
Effectiveness Deadline ”).
If,
after the Company and the Guarantors have filed an Exchange Offer
Registration Statement that satisfies the requirements of Section
3(a) above, the Company and the Guarantors are required to file and
make effective a Shelf Registration Statement solely because the
Exchange Offer is not permitted under applicable federal law (i.e.,
clause (a)(i) above), then the filing of the Exchange Offer
Registration Statement shall be deemed to satisfy the requirements
of clause (x) above; provided that, in such event, the
Company and the Guarantors shall remain obligated to meet the
Effectiveness Deadline set forth in clause (y).
To the
extent necessary to ensure that the Shelf Registration Statement is
available for sales of Transfer Restricted Securities by the
Holders thereof entitled to the benefit of this Section 4(a) and
the other securities required to be registered therein pursuant to
Section 6(b)(ii) hereof, the Company and the Guarantors shall
use their respective commercially reasonable efforts to keep any
Shelf Registration Statement required by this Section 4(a)
continuously effective, supplemented, amended and current as
required by and subject to the provisions of Sections 6(b) and
(c) hereof and in conformity with the requirements of this
Agreement, the Securities Act and the policies, rules and
regulations of the Commission as announced from time to time, for a
period of at least two years (as extended pursuant to
Section 6(c)(i) hereof) following the Closing Date, or such
shorter period as will terminate at such time there are no longer
any Transfer Restricted Securities that are covered by the Shelf
Registration Statement outstanding.
(b)
Provision by Holders of Certain Information in Connection with
the Shelf Registration Statement . No Holder of Transfer
Restricted Securities may include any of its Transfer Restricted
Securities in any Shelf Registration Statement pursuant to this
Agreement unless and until such Holder furnishes to the Company in
writing, within 20 days after receipt of a request therefor,
the information specified in Item 507 or Item 508 of
Regulation S-K, as applicable, of the Securities Act for use
in connection with any Shelf Registration Statement or Prospectus
or preliminary Prospectus included therein. No Holder of Transfer
Restricted Securities shall be entitled to liquidated damages
pursuant to Section 5 hereof unless such Holder shall have
provided all such information in the required times. Each selling
Holder agrees to promptly furnish additional information required
to be disclosed in order to make the information previously
furnished to the Company by such Holder not materially
misleading.
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| SECTION 5. |
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LIQUIDATED DAMAGES |
If
(i) any Registration Statement required by this Agreement is
not filed with the Commission by the applicable Filing Deadline,
(ii) any such Registration Statement has not been declared
effective by the Commission by the applicable Effectiveness
Deadline, (iii) the
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Exchange
Offer has not been Consummated by the Consummation Deadline or
(iv) any Registration Statement required by this Agreement is
filed and declared effective but shall thereafter cease to be
effective or fail to be usable for its intended purpose without
being succeeded immediately by a post-effective amendment to such
Registration Statement that cures such failure and that is itself
declared effective within 5 days of filing such post-effective
amendment to such Registration Statement (each such event referred
to in clauses (i) through (iv), a " Registration
Default " ), then the Company and the Guarantors
hereby jointly and severally agree to pay to each Holder of
Transfer Restricted Securities affected thereby liquidated damages
in an amount equal to $0.05 per week per $1,000 in principal amount
of Transfer Restricted Securities held by such Holder for each week
or portion thereof that the Registration Default continues for the
first 90-day period immediately following the occurrence of such
Registration Default. The amount of the liquidated damages shall
increase by an additional $0.05 per week per $1,000 in principal
amount of Transfer Restricted Securities with respect to each
subsequent 90-day period until all Registration Defaults have been
cured, up to a maximum amount of liquidated damages of $0.20 per
week per $1,000 in principal amount of Transfer Restricted
Securities; provided that the Company and the Guarantors
shall in no event be required to pay liquidated damages for more
than one Registration Default at any given time. Notwithstanding
anything to the contrary set forth herein, (1) upon filing of
the Exchange Offer Registration Statement (and/or, if applicable,
the Shelf Registration Statement), in the case of (i) above,
(2) upon the effectiveness of the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration
Statement), in the case of (ii) above, (3) upon
Consummation of the Exchange Offer, in the case of
(iii) above, or (4) upon the filing of a post-effective
amendment to the Registration Statement or an additional
Registration Statement that causes the Exchange Offer Registration
Statement (and/or, if applicable, the Shelf Registration Statement)
to again be declared effective or made usable in the case of
(iv) above, the liquidated damages payable with respect to the
Transfer Restricted Securities as a result of such clause (i),
(ii), (iii) or (iv), as applicable, shall cease.
All
accrued liquidated damages shall be paid to the Holders entitled
thereto, in the manner provided for the payment of interest in the
Indenture, on each Interest Payment Date, as more fully set forth
in the Indenture and the Notes. Notwithstanding the fact that any
securities for which liquidated damages are due cease to be
Transfer Restricted Securities, all obligations of the Company and
the Guarantors to pay liquidated damages with respect to securities
shall survive until such time as such obligations with respect to
such securities shall have been satisfied in full. Notwithstanding
anything contained herein or in the Indenture to the contrary, the
payment of liquidated damages shall be the only remedy available to
holders of Notes for any Registration Default.
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| SECTION 6. |
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REGISTRATION PROCEDURES |
(a)
Exchange Offer Registration Statement . In connection with
the Exchange Offer, the Company and the Guarantors shall
(x) comply with all applicable provisions of Section 6(c)
below, (y) use their respective commercially reasonable
efforts to effect such exchange and to permit the resale of
Exchange Notes by Broker-Dealers that tendered in the Exchange
Offer Notes that such Broker-Dealer acquired for its own account as
a result of its market making activities or other trading
activities (other than Notes acquired directly from the Company or
any
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of its
Affiliates) being sold in accordance with the intended method or
methods of distribution thereof, and (z) comply with all of
the following provisions:
(i) If, following the date hereof
there has been announced a change in Commission policy with respect
to exchange offers such as the Exchange Offer, that in the
reasonable opinion of counsel to the Company raises a substantial
question as to whether the Exchange Offer is permitted by
applicable federal law, the Company and the Guarantors hereby agree
to use commercially reasonable efforts to seek a no-action letter
or other favorable decision from the Commission allowing the
Company and the Guarantors to Consummate an Exchange Offer for such
Transfer Restricted Securities. The Company and the Guarantors
hereby agree to pursue the issuance of such a decision to the
Commission staff level. In connection with the foregoing, the
Company and the Guarantors hereby agree to take all such other
commercially reasonable actions as may be requested by the
Commission or otherwise required in connection with the issuance of
such decision, including without limitation (A) participating in
telephonic conferences with the Commission, (B) delivering to
the Commission staff an analysis prepared by counsel to the Company
setting forth the legal bases, if any, upon which such counsel has
concluded that such an Exchange Offer should be permitted and
(C) diligently pursuing a resolution (which need not be
favorable) by the Commission staff.
(ii) As a condition to its
participation in the Exchange Offer, each Holder of Transfer
Restricted Securities (including, without limitation, any Holder
who is a Broker Dealer) shall furnish, upon the request of the
Company, prior to the Consummation of the Exchange Offer, a written
representation to the Company and the Guarantors (which may be
contained in the letter of transmittal contemplated by the Exchange
Offer Registration Statement) to the effect that (A) it is not
an Affiliate of the Company, (B) it is not engaged in, and
does not intend to engage in, and has no arrangement or
understanding with any person to participate in, a distribution of
the Exchange Notes to be issued in the Exchange Offer and
(C) it is acquiring the Exchange Notes in its ordinary course
of business. As a condition to its participation in the Exchange
Offer each Holder using the Exchange Offer to participate in a
distribution of the Exchange Notes shall acknowledge and agree
that, if the resales are of Exchange Notes obtained by such Holder
in exchange for Notes acquired directly from the Company or an
Affiliate thereof, it (1) could not, under Commission policy
as in effect on the date of this Agreement, rely on the position of
the Commission enunciated in Morgan Stanley and Co., Inc.
(available June 5, 1991) and Exxon Capital Holdings
Corporation (available May 13, 1988), as interpreted in
the Commission’s letter to Shearman & Sterling
dated July 2, 1993, and similar no-action letters (including,
if applicable, any no-action letter obtained pursuant to clause (i)
above), and (2) must comply with the registration and
prospectus delivery requirements of the Securities Act in
connection with a secondary resale transaction and that such a
secondary resale transaction must be covered by an effective
registration statement containing the selling security holder
information required by Item 507 or 508, as applicable, of
Regulation S-K.
(iii) Prior to effectiveness of the
Exchange Offer Registration Statement, the Company and the
Guarantors shall provide a supplemental letter to the Commission
(A) stating that the Company and the Guarantors are
registering the Exchange Offer in
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reliance on the
position of the Commission enunciated in Exxon Capital Holdings
Corporation (available May 13, 1988), Morgan Stanley
and Co., Inc. (available June 5, 1991) as interpreted in
the
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