Exhibit 1.1
TECH DATA CORPORATION
$325,000,000
[ ·
] % Convertible Senior Debentures
due 2026*
Underwriting Agreement
New York, New York
December [ ·
], 2006
Banc of America Securities
LLC
As Representatives of the several
Underwriters
c/o Banc of America Securities LLC
9 West 57 th Street
New York, New York 10019
Ladies and Gentlemen:
Tech Data Corporation, a corporation
organized under the laws of Florida (the “ Company
”), proposes to issue and sell to the several underwriters
named in Schedule I hereto (the “ Underwriters
”), for whom you (the “ Representatives ”)
are acting as representatives, $325,000,000 in aggregate
principal amount of its [ ·
]% Convertible Senior Debentures due
2026 (the “ Firm Securities ”). The Company also
proposes to grant to the Underwriters an option to purchase up to
an additional $25,000,000 in aggregate principal amount of such
Convertible Senior Debentures to cover over-allotments, if any (the
“ Option Securities ” and, together with the
Firm Securities, the “ Securities ”). To the
extent there are no additional parties listed on Schedule I other
than you, the term Representatives as used herein shall mean you as
the Underwriters, and the terms Representatives and Underwriters
shall mean either the singular or plural as the context requires.
The use of the neuter in this Agreement shall include the feminine
and masculine wherever appropriate. Certain terms used herein are
defined in Section 18 hereof.
The Securities are to be issued
under an indenture (the “ Indenture ”), to be
dated as of December [ ·
], 2006, between the Company and
U.S. Bank National Association, as trustee (the “
Trustee ”). The Securities will be convertible into
fully paid, non-assessable shares of common stock, par value
$0.0015 per share, of the Company (the “ Common Stock
”). The Securities will be convertible initially at a
conversion rate of [ ·
] shares per $1,000 principal amount
of the Securities, on the terms, and subject to the conditions, set
forth in the Indenture.
1. Representations and
Warranties . The Company represents and warrants to each
Underwriter as set forth below in this Section 1.
|
*
|
Plus an option
to purchase up to $25,000,000 additional principal amount of such
Convertible Senior Debentures from the Company to cover
over-allotments.
|
(a) The Company has prepared and
filed with the Securities and Exchange Commission (the “
Commission ”) a registration statement on Form S-3
(File No. 333 [ ·
]), which contains a form of
prospectus to be used in connection with the public offering and
sale of the Securities. Such registration statement, as amended,
including the financial statements, exhibits and schedules thereto,
in the form in which it was declared effective by the Commission
under the Securities Act of 1933 and the rules and regulations
promulgated thereunder (collectively, the “ Securities
Act ”), including any required information deemed to be a
part thereof at the time of effectiveness pursuant to Rule 430B
under the Securities Act or the Securities Exchange Act of 1934 and
the rules and regulations promulgated thereunder (collectively, the
“ Exchange Act ”), is called the “
Registration Statement ”. Any preliminary prospectus
included in the Registration Statement is hereinafter called a
“preliminary prospectus.” The term “
Prospectus ” shall mean the final prospectus relating
to the Securities that is first filed pursuant to Rule 424(b) after
the date and time that this Agreement is executed and delivered by
the parties hereto (the “ Execution Time ”). Any
reference herein to the Registration Statement, any preliminary
prospectus or the Prospectus shall be deemed to refer to and
include the documents incorporated by reference therein pursuant to
Item 12 of Form S-3 under the Securities Act; any reference to
any amendment or supplement to any preliminary prospectus or the
Prospectus shall be deemed to refer to and include any documents
filed after the date of such preliminary prospectus or Prospectus,
as the case may be, under the Exchange Act, and incorporated by
reference in such preliminary prospectus or Prospectus, as the case
may be; and any reference to any amendment to the Registration
Statement shall be deemed to refer to and include any annual report
of the Company filed pursuant to Section 13(a) or 15(d) of the
Exchange Act after the effective date of the Registration Statement
that is incorporated by reference in the Registration
Statement.
(b) The Registration Statement has
been declared effective by the Commission under the Securities Act.
The Company has complied to the Commission’s satisfaction
with all requests of the Commission for additional or supplemental
information. No stop order suspending the effectiveness of the
Registration Statement is in effect, the Commission has not issued
any order or notice preventing or suspending the use of the
Registration Statement, any preliminary prospectus or the
Prospectus and no proceedings for such purpose have been instituted
or are pending or, to the best knowledge of the Company, are
contemplated or threatened by the Commission.
Each preliminary prospectus and the
Prospectus when filed complied in all material respects with the
Securities Act and the rules thereunder. Each of the Registration
Statement and any post-effective amendment thereto, at the time it
became effective and at the date hereof, complied and will comply
in all material respects with the Securities Act and did not and
will not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading. The
Prospectus, as amended or supplemented, as of its date, at the date
hereof, at the time of any filing pursuant to Rule 424(b), at the
Closing Date (as defined herein) and at any subsequent Closing Date
in respect of the Option Securities, did not and will not contain
any untrue statement of a material fact or
2
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. The
representations and warranties set forth in the two immediately
preceding sentences do not apply to statements in or omissions from
the Registration Statement or any post-effective amendment thereto,
or the Prospectus, or any amendments or supplements thereto, made
in reliance upon and in conformity with information relating to any
Underwriter furnished to the Company in writing by the
Representatives expressly for use therein, it being understood and
agreed that the only such information furnished by the
Representatives consists of the information described as such in
Section 8(b) hereof. There is no contract or other document
required to be described in the Prospectus or to be filed as an
exhibit to the Registration Statement that has not been described
or filed as required.
The documents incorporated by
reference in the Prospectus, when they became effective or were
filed with the Commission, as the case may be, conformed in all
material respects to the requirements of the Securities Act or the
Exchange Act, as applicable.
(c) The term “ Disclosure
Package ” shall mean (i) the preliminary prospectus,
if any, as amended or supplemented, (ii) the issuer free
writing prospectuses as defined in Rule 433 of the Securities Act
(each, an “ Issuer Free Writing Prospectus ”),
if any, identified in Schedule II hereto, and (iii) any other
free writing prospectus that the parties hereto shall hereafter
expressly agree in writing to treat as part of the Disclosure
Package. As of :00 [a/p]m (Eastern
time) on the date of execution and delivery of this Agreement (the
“ Applicable Time ”), the Disclosure Package did
not contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were
made, not misleading. The preceding sentence does not apply to
statements in or omissions from the Disclosure Package based upon
and in conformity with written information furnished to the Company
by any Underwriter through the Representatives specifically for use
therein, it being understood and agreed that the only such
information furnished by or on behalf of any Underwriter consists
of the information described as such in Section 8(b)
hereof.
(d) (i) At the time of filing the
Registration Statement, (ii) at the time the Company or any
person acting on its behalf (within the meaning, for this clause
only, of Rule 163(c) of the Securities Act) made any offer relating
to the Securities in reliance on the exemption of Rule 163 of the
Securities Act, and (iv) at the Execution Time of this
Agreement (with such date being used as the determination date for
purposes of this clause (iv)), the Company was and is a “well
known seasoned issuer” as defined in Rule 405 of the
Securities Act. The Registration Statement is an “automatic
shelf registration statement”, as defined in Rule 405 of the
Securities Act, and the Company has not received from the
Commission any notice pursuant to Rule 401(g)(2) of the Securities
Act objecting to use of the automatic shelf registration statement
form.
3
(e) (i) At the earliest time after
the filing of the Registration Statement relating to the Securities
that the Company or another offering participant made a bona fide
offer (within the meaning of Rule 164(h)(2)) of the Securities Act
and (ii) as of the date of the execution and delivery of this
Agreement (with such date being used as the determination date for
purposes of this clause (ii)), the Company was not and is not an
Ineligible Issuer (as defined in Rule 405 of the Securities Act),
without taking account of any determination by the Commission
pursuant to Rule 405 of the Securities Act that it is not necessary
that the Company be considered an Ineligible Issuer.
(f) Each Issuer Free Writing
Prospectus, as of its issue date and at all subsequent times
through the completion of the offering of Securities under this
Agreement or until any earlier date that the Company notified or
notifies the Representatives as described in the next sentence, did
not, does not and will not include any information that conflicted,
conflicts or will conflict with the information contained in the
Registration Statement. If at any time following issuance of an
Issuer Free Writing Prospectus there occurred or occurs an event or
development as a result of which such Issuer Free Writing
Prospectus conflicted or would conflict with the information
contained in the Registration Statement, the Company has promptly
notified or will promptly notify the Representatives and has
promptly amended or supplemented or will promptly amend or
supplement, at its own expense, such Issuer Free Writing Prospectus
to eliminate or correct such conflict. The foregoing two sentences
do not apply to statements in or omissions from any Issuer Free
Writing Prospectus based upon and in conformity with written
information furnished to the Company by any Underwriter through the
Representatives specifically for use therein, it being understood
and agreed that the only such information furnished by any
Underwriter consists of the information described as such in
Section 8(b) hereof.
(g) The Company is not, and after
giving effect to the offering and sale of the Securities and the
application of the proceeds thereof as described in the preliminary
prospectus and the Prospectus will not be, an “investment
company” within the meaning of the Investment Company
Act.
(h) The Company is subject to and in
full compliance with the reporting requirements of Section 13
or Section 15(d) of the Exchange Act.
(i) The Company has not taken,
directly or indirectly, any action designed to cause or which has
constituted or which might reasonably be expected to cause or
result in, under the Exchange Act or otherwise, the stabilization
or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.
(j) The Company has been duly
incorporated and is validly existing as a corporation in good
standing under the laws of the jurisdiction in which it is
chartered or organized with full corporate power and authority to
own or lease, as the case may be, and to operate its properties and
conduct its business as described in the preliminary prospectus and
the Prospectus, and is duly qualified to do business as a foreign
corporation and is in good standing under the laws of each
jurisdiction which requires such qualification.
4
(k) Each of the Company’s
subsidiaries has been duly incorporated and is validly existing as
a corporation in good standing under the laws of the jurisdiction
in which it is chartered or organized with full corporate power and
authority to own or lease, as the case may be, and to operate its
properties and conduct its business as described in the preliminary
prospectus and the Prospectus, and is duly qualified to do business
as a foreign corporation and is in good standing under the laws of
each jurisdiction which requires such qualification, except for
such failure that would not, individually or in the aggregate, have
a material adverse effect on the condition (financial or
otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not
arising from transactions in the ordinary course of
business.
(l) All the outstanding shares of
capital stock of each subsidiary of the Company have been duly and
validly authorized and issued and are fully paid and nonassessable,
and, except as otherwise set forth in the preliminary
prospectus and the Prospectus, all outstanding shares of capital
stock of the subsidiaries are owned by the Company either directly
or through one or more wholly owned subsidiaries free and clear of
any perfected security interest or any other security interests,
claims, liens or encumbrances, except for such failure that would
not, individually or in the aggregate, have a material adverse
effect on the condition (financial or otherwise), prospects,
earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business.
(m) The Company’s authorized
equity capitalization is as set forth in the preliminary prospectus
and the Prospectus, and the capital stock of the Company conforms
in all material respects to the description thereof contained in
the preliminary prospectus and the Prospectus; the outstanding
shares of Common Stock have been duly and validly authorized and
are fully paid and non-assessable; the shares of Common Stock
initially issuable upon conversion of the Securities have been duly
and validly authorized and, when issued upon conversion against
payment of the conversion price and in accordance with the terms of
the Indenture, will be validly issued, fully paid and
nonassessable; the Board of Directors of the Company has duly and
validly adopted resolutions reserving such shares of Common Stock
for issuance upon conversion; the holders of the outstanding shares
of capital stock of the Company are not entitled to any preemptive
or other rights to subscribe for the Securities or the shares of
Common Stock issuable upon conversion thereof; and, except as set
forth in the preliminary prospectus and the Prospectus, no options,
warrants or other rights to purchase, agreements or other
obligations to issue, or rights to convert any obligations into or
exchange any securities for, shares of capital stock of or
ownership interests in the Company are outstanding.
(n) The statements in the
preliminary prospectus and the Prospectus under the headings
“Certain United States Federal Income Tax
Considerations” and “Description of Debentures”
fairly summarize the matters therein described.
5
(o) This Agreement has been duly
authorized, executed and delivered by the Company; the Indenture
has been duly authorized by the Company and, assuming due
authorization, execution and delivery thereof by the Trustee, when
executed and delivered by the Company, will have been duly executed
and delivered by the Company and will constitute a legal, valid and
binding instrument of the Company enforceable against the Company
in accordance with its terms (subject, as to the enforcement of
remedies, to applicable bankruptcy, reorganization, insolvency,
moratorium or other laws affecting creditors’ rights
generally from time to time in effect and to general principles of
equity); the Securities have been duly authorized by the Company
and, when executed and authenticated in accordance with the
provisions of the Indenture and delivered to and paid for by the
Underwriters, will have been duly executed and delivered by the
Company and will constitute the legal, valid and binding
obligations of the Company enforceable against the Company in
accordance with their terms and entitled to the benefits of the
Indenture (subject, as to the enforcement of remedies, to
applicable bankruptcy, reorganization, insolvency, moratorium or
other laws affecting creditors’ rights generally from time to
time in effect and to general principles of equity) and will be
convertible into Common Stock in accordance with their
terms.
(p) No consent, approval,
authorization, filing with or order of any court or governmental
agency or body is required in connection with the transactions
contemplated herein or in the Indenture, except such as will be
obtained under the Securities Act and the Trust Indenture Act and
such as may be required under the blue sky laws of any jurisdiction
in connection with the purchase and distribution of the Securities
by the Underwriters in the manner contemplated herein and in the
preliminary prospectus and the Prospectus.
(q) Neither the execution and
delivery of the Indenture or this Agreement, the issue and sale of
the Securities, nor the consummation of any other of the
transactions herein or therein contemplated, nor the fulfillment of
the terms hereof or thereof will conflict with, or result in a
breach or violation of or imposition of, any lien, charge or
encumbrance upon any property or assets of the Company or any of
its subsidiaries pursuant to, (i) the charter or bylaws of the
Company or any of its subsidiaries; (ii) the terms of any
indenture, contract, lease, mortgage, deed of trust, note
agreement, loan agreement or other agreement, obligation,
condition, covenant or instrument to which the Company or any of
its subsidiaries is a party or bound or to which its or their
property is subject, except for such conflicts, breaches,
violations or impositions which (x) could not be expected to
have a material adverse effect on the performance of this Agreement
or the Indenture or the consummation of any of the transactions
contemplated hereby or thereby; or (y) would not have a
material adverse effect on the Underwriters and which would not,
individually or in the aggregate, have a material adverse effect on
the condition (financial or otherwise), prospects, earnings,
business or properties of the Company and its subsidiaries, taken
as a whole, whether or not arising from transactions in the
ordinary course of business; or (iii) any statute, law, rule,
regulation, judgment, order or decree applicable to the Company or
any of its subsidiaries of any court, regulatory body,
administrative agency, governmental body, arbitrator or other
authority having
6
jurisdiction over the Company or any
of its subsidiaries or any of its or their properties, except for
such conflicts, breaches, violations or impositions which
(x) could not be expected to have a material adverse effect on
the performance of this Agreement or the Indenture or the
consummation of any of the transactions contemplated hereby or
thereby; or (y) would not have a material adverse effect on
the Underwriters and which would not, individually or in the
aggregate, have a material adverse effect on the condition
(financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business.
(r) The consolidated historical
financial statements and related notes and schedules of the Company
and its consolidated subsidiaries included in the preliminary
prospectus and the Prospectus present fairly in all material
respects the financial condition, results of operations and cash
flows of the Company as of the dates and for the periods indicated,
comply as to form with the applicable accounting requirements of
the Securities Act and have been prepared in conformity with
generally accepted accounting principles applied on a consistent
basis throughout the periods involved (except as otherwise noted
therein); the selected financial data set forth under the caption
“Selected Consolidated Financial Data” in the
preliminary prospectus and the Prospectus fairly present, on the
basis stated in the preliminary prospectus and the Prospectus, the
information included therein.
(s) No action, suit or proceeding by
or before any court or governmental agency, authority or body or
any arbitrator involving the Company or any of its subsidiaries or
its or their property is pending or, to the best knowledge of the
Company, threatened that (i) could be expected to have a
material adverse effect on the performance of this Agreement or the
Indenture or the consummation of any of the transactions
contemplated hereby or thereby; or (ii) could reasonably be
expected to have a material adverse effect on the condition
(financial or otherwise), prospects, earnings, business or
properties of the Company and its subsidiaries, taken as a whole,
whether or not arising from transactions in the ordinary course of
business, except as set forth in or contemplated in the preliminary
prospectus and the Prospectus (exclusive of any amendment or
supplement thereto).
(t) Each of the Company and its
subsidiaries owns or leases all such properties as are necessary to
the conduct of its operations as presently conducted, except for
such failure that would not, individually or in the aggregate, have
a material adverse effect on the condition (financial or
otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not
arising from transactions in the ordinary course of
business.
(u) Neither the Company nor any
subsidiary is in violation or default of (i) any provision of
its charter or bylaws; (ii) the terms of any indenture,
contract, lease, mortgage, deed of trust, note agreement, loan
agreement or other agreement, obligation, condition, covenant or
instrument to which it is a party or bound or to which its
property
7
is subject, except for such
violations or defaults which (x) could not be expected to have
a material adverse effect on the performance of this Agreement or
the Indenture or the consummation of any of the transactions
contemplated hereby or thereby; or (y) would not, individually
or in the aggregate, have a material adverse effect on the
condition (financial or otherwise), prospects, earnings, business
or properties of the Company and its subsidiaries, taken as a
whole, whether or not arising from transactions in the ordinary
course of business; or (iii) any statute, law, rule,
regulation, judgment, order or decree applicable to the Company or
any of its subsidiaries of any court, regulatory body,
administrative agency, governmental body, arbitrator or other
authority having jurisdiction over the Company or any of its
subsidiaries or any of their respective properties, as applicable,
except for such violations or defaults which (x) could not be
expected to have a material adverse effect on the performance of
this Agreement or the Indenture or the consummation of any of the
transactions contemplated hereby or thereby; or (y) would not,
individually or in the aggregate, have a material adverse effect on
the condition (financial or otherwise), prospects, earnings,
business or properties of the Company and its subsidiaries, taken
as a whole, whether or not arising from transactions in the
ordinary course of business.
(v) To the best of the
Company’s knowledge, Ernst & Young LLP, who have
expressed their opinion with respect to the financial statements
(which term as used in this Agreement includes the related notes
thereto) of the Company and its consolidated subsidiaries filed
with the Commission as part of the Registration Statement and
included in the preliminary prospectus and the Prospectus, are
registered independent public accountants with respect to the
Company as required by the Securities Act and the Exchange Act and
the applicable published rules and regulations
thereunder.
(w) The Company and each of its
subsidiaries possess all licenses, certificates, permits and other
authorizations issued by the appropriate federal, state or foreign
regulatory authorities necessary to conduct their respective
businesses, and neither the Company nor any such subsidiary has
received any notice of proceedings relating to the revocation or
modification of any such certificate, authorization or permit
which, singly or in the aggregate, if the subject of an unfavorable
decision, ruling or finding, would have a material adverse effect
on the condition (financial or otherwise), prospects, earnings,
business or properties of the Company and its subsidiaries, taken
as a whole, whether or not arising from transactions in the
ordinary course of business, except as set forth in or contemplated
in the preliminary prospectus and the Prospectus (exclusive of any
amendment or supplement thereto).
(x) There are no persons or entities
with registration or other similar rights to require the Company to
include any securities in any registration statement filed pursuant
to a registration agreement or in any offering made pursuant to any
such registration statement.
(y) There are no stamp or other
issuance or transfer taxes or duties or other similar fees or
charges required to be paid in connection with the issuance of the
Common Stock upon conversion thereof.
8
(z) The Company and its subsidiaries
have filed all foreign, federal, state and local tax returns that
are required to be filed or has requested extensions thereof
(except in any case in which the failure so to file would not have
a material adverse effect on the condition (financial or
otherwise), prospects, earnings, business or properties of the
Company and its subsidiaries, taken as a whole, whether or not
arising from transactions in the ordinary course of business,
except as set forth in or contemplated in the preliminary
prospectus and the Prospectus (exclusive of any amendment or
supplement thereto)) and have paid all taxes required to be paid by
them and any other assessment, fine or penalty levied against them,
to the extent that any of the foregoing is due and payable, except
for any such assessment, fine or penalty that is currently being
contested in good faith or as would not have a material adverse
effect on the condition (financial or otherwise), prospects,
earnings, business or properties of the Company and its
subsidiaries, taken as a whole, whether or not arising from
transactions in the ordinary course of business, except as set
forth in or contemplated in the preliminary prospectus and the
Prospectus (exclusive of any amendment or supplement
thereto).
(aa) Except as set forth in the
Second Amended and Restated Credit Agreement, dated as of
March 7, 2005, among the Company, Bank of America, N.A., and
the other lenders party thereto, no subsidiary of the Company is
currently prohibited, directly or indirectly, from paying any
dividends to the Company, from making any other distribution on
such subsidiary’s capital stock to the Company or to another
subsidiary of the Company, from repaying to the Company any loans
or advances to such subsidiary from the Company or from
transferring any of such subsidiary’s property or assets to
the Company or any other subsidiary of the Company, except as
described in or contemplated by the preliminary prospectus and the
Prospectus (exclusive of any amendment or supplement
thereto)
(bb) Each of the Company and its
subsidiaries has fulfilled its obligations, if any, under the
minimum funding standards of Section 302 of the United States
Employee Retirement Income Security Act of 1974, as amended
(“ ERISA” ), and the regulations and published
interpretations thereunder with respect to each “plan”
(as defined in Section 3(3) of ERISA and such regulations and
published interpretations) in which employees of the Company and
its subsidiaries are eligible to participate and each such plan is
in compliance in all material respects with the presently
applicable provisions of ERISA and such regulations and published
interpretations; the Company and its subsidiaries have not incurred
any unpaid liability to the Pension Benefit Guaranty Corporation
(other than for the payment of premiums in the ordinary course) or
to any such plan under Title IV of ERISA.
(cc) The Company maintains
(i) effective internal control over financial reporting as
defined in Rule 15d-15 under the Securities Exchange Act of 1934,
as amended, and (ii) a system of internal accounting controls
sufficient to provide reasonable assurance that
(A) transactions are executed in accordance with
management’s
9
general or specific authorizations;
(B) transactions are recorded as necessary to permit
preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset
accountability; (C) access to assets is permitted only in
accordance with management’s general or specific
authorization; and (D) the recorded accountability for assets
is compared with the existing assets at reasonable intervals and
appropriate action is taken with respect to any
differences.
(dd) Except as disclosed in the
preliminary prospectus and the Prospectus, or in any document
incorporated by reference therein, since the