Exhibit 1.1
UST INC.
5.75% Senior Notes due 2018
UNDERWRITING AGREEMENT
February 26, 2008
February 26, 2008
To the
Managers named in Schedule I hereto
for the Underwriters named in Schedule II hereto
Ladies
and Gentlemen:
UST Inc., a Delaware corporation (the
“ Company ”), proposes to issue and sell to the
several underwriters named in Schedule II hereto (the “
Underwriters ”), for whom you are acting as managers
(the “ Managers ”), the principal amount of its
debt securities identified in Schedule I hereto (the “
Securities ”), to be issued under the indenture
specified in Schedule I hereto (the “ Base
Indenture ”), as supplemented by the supplemental
indenture specified in Schedule I hereto (the “
Supplemental Indenture ” and, together with the Base
Indenture, the “ Indenture ”), between the
Company and the Trustee identified in such Schedule (the “
Trustee ”). If the firm or firms listed in
Schedule II hereto include only the Managers listed in
Schedule I hereto, then the terms “Underwriters”
and “Managers” as used herein shall each be deemed to
refer to such firm or firms. The terms “you” and
“your” as used herein shall be deemed to refer to the
Managers.
The Company has filed with the
Securities and Exchange Commission (the “ Commission
”) a registration statement, including a prospectus, (the
file number of which is set forth in Schedule I hereto) on Form
S-3, relating to securities (the “ Shelf Securities
”), including the Securities, to be issued from time to time
by the Company. The registration statement as amended to the date
of this Agreement, including the information (if any) deemed to be
part of the registration statement at the time of effectiveness
pursuant to Rule 430A or Rule 430B under the Securities
Act of 1933, as amended (the “ Securities Act
”), is hereinafter referred to as the “ Registration
Statement, ” and the related prospectus covering the
Shelf Securities dated February 26, 2008 in the form first
used to confirm sales of the Securities (or in the form first made
available to the Underwriters by the Company to meet requests of
purchasers pursuant to Rule 173 under the Securities Act) is
hereinafter referred to as the “ Basic Prospectus
.” The Basic Prospectus, as supplemented by the prospectus
supplement specifically relating to the Securities in the form
first used to confirm sales of the Securities (or in the form first
made available to the Underwriters by the Company to meet requests
of purchasers pursuant to Rule 173 under the Securities Act)
is hereinafter referred to as the “ Prospectus
,” and the term “ preliminary prospectus ”
means any preliminary form of the Prospectus. For purposes of this
Agreement, “ free writing prospectus ” has the
meaning set forth in Rule 405 under the Securities Act,
“ Time of Sale Prospectus ” means the Basic
Prospectus together with each preliminary prospectus and each free
writing prospectus, if any, each identified in Schedule I
hereto, and “ broadly available road show ”
means a “bona fide electronic road show” as defined in
Rule 433(h)(5) under the Securities Act that has been made
available without restriction to any person. As used herein, the
terms “Registration Statement,” “Basic
Prospectus,” “preliminary
prospectus,” “Time of Sale Prospectus” and
“Prospectus” shall include the documents, if any,
incorporated by reference therein. The terms “
supplement ,” “ amendment ,” and
“ amend ” as used herein with respect to the
Registration Statement, the Basic Prospectus, the Time of Sale
Prospectus, the Prospectus or any preliminary prospectus or free
writing prospectus shall include all documents subsequently filed
by the Company with the Commission pursuant to the Securities
Exchange Act of 1934, as amended (the “ Exchange Act
”), that are deemed to be incorporated by reference
therein.
1. Representations and
Warranties . The Company represents and warrants to and agrees
with each of the Underwriters that:
(a) The Registration Statement
has become effective; no stop order suspending the effectiveness of
the Registration Statement is in effect, and no proceedings for
such purpose are pending before or, to the knowledge of the
Company, threatened by the Commission. The Company is a well-known
seasoned issuer (as defined in Rule 405 under the Securities
Act) eligible to use the Registration Statement as an automatic
shelf registration statement and the Company has not received
notice that the Commission objects to the use of the Registration
Statement as an automatic shelf registration statement.
(b) (i) Each document, if
any, filed or to be filed pursuant to the Exchange Act and
incorporated by reference in the Time of Sale Prospectus or the
Prospectus complied or will comply when so filed in all material
respects with the Exchange Act and the applicable rules and
regulations of the Commission thereunder, (ii) each part of
the Registration Statement, when such part became effective, did
not contain, and each such part, as amended or supplemented, if
applicable, will not contain any untrue statement of a material
fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading,
(iii) the Registration Statement as of the date hereof does
not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading, (iv) the
Registration Statement and the Prospectus comply, and as amended or
supplemented, if applicable, will comply in all material respects
with the Securities Act and the applicable rules and regulations of
the Commission thereunder, (v) the Time of Sale Prospectus
does not, and at the time of each sale of the Securities in
connection with the offering when the Prospectus is not yet
available to prospective purchasers and at the Closing Date (as
defined in Section 4), the Time of Sale Prospectus, as then
amended or supplemented by the Company, if applicable, will not,
contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the
light of the circumstances under which they were made, not
misleading, (vi) each broadly available road show, if any,
when considered together with the Time of Sale Prospectus, does not
contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the
light of the
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circumstances under which they were made, not misleading and
(vii) the Prospectus does not contain and, as amended or
supplemented, if applicable, will not contain any untrue statement
of a material fact or omit to state a material fact necessary to
make the statements therein, in the light of the circumstances
under which they were made, not misleading, except that the
representations and warranties set forth in this paragraph do not
apply to (A) statements or omissions in the Registration
Statement, the Time of Sale Prospectus or the Prospectus, each as
amended or supplemented, based upon information relating to any
Underwriter furnished to the Company in writing by such Underwriter
through the Managers expressly for use therein or (B) that
part of the Registration Statement that constitutes the Statement
of Eligibility (Form T-1) under the Trust Indenture Act of 1939, as
amended (the “ Trust Indenture Act ”), of the
Trustee.
(c) The Company is not an
“ineligible issuer” in connection with the offering
pursuant to Rules 164, 405 and 433 under the Securities Act.
Any free writing prospectus that the Company is required to file
pursuant to Rule 433(d) under the Securities Act has been, or will
be, filed with the Commission in accordance with the requirements
of the Securities Act and the applicable rules and regulations of
the Commission thereunder. Each free writing prospectus that the
Company has filed, or is required to file, pursuant to Rule 433(d)
under the Securities Act or that was prepared by or on behalf of or
used or referred to by the Company complies or will comply in all
material respects with the requirements of the Securities Act and
the applicable rules and regulations of the Commission thereunder.
Except for the free writing prospectuses, if any, identified in
Schedule I hereto, and electronic road shows, if any, each
furnished to you before first use, the Company has not prepared,
used or referred to, and will not, without your prior consent,
prepare, use or refer to, any free writing prospectus.
(d) Neither the Company nor any
of its “Significant Subsidiaries” (as such term is
defined in Rule 1-02 of Regulation S-X) has sustained
since the date of the latest audited financial statements included
in the Time of Sale Prospectus any loss or interference with its
business from fire, explosion, flood or other calamity, whether or
not covered by insurance, or from any labor dispute or court or
governmental action, order or decree which would have individually
or in the aggregate, a material adverse effect or prospective
material adverse effect on the financial condition, results of
operations or business of the Company and its subsidiaries taken as
a whole (a “ Material Adverse Effect ”),
otherwise than as set forth or contemplated in the Time of Sale
Prospectus; and, since the respective dates as of which information
is given in the Time of Sale Prospectus, there has not been any
change in the capital stock or long-term debt of the Company or any
of its subsidiaries or any change, or any development involving a
prospective change, in or affecting the general affairs,
management, financial position, stockholders’ equity or
results of operations of the Company and its subsidiaries,
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which
would have a Material Adverse Effect other than as set forth or
contemplated in the Time of Sale Prospectus;
(e) The Company has been duly
incorporated and is validly existing as a corporation in good
standing under the laws of Delaware, with power and authority
(corporate and other) to own its properties and conduct its
business as described in the Time of Sale Prospectus, and has been
duly qualified as a foreign corporation for the transaction of
business and is in good standing under the laws of each other
jurisdiction in which it owns or leases properties or conducts any
business so as to require such qualification, except where the
failure to be so qualified in any such jurisdiction would not have
a Material Adverse Effect; and each Significant Subsidiary of the
Company has been duly incorporated and is validly existing as a
corporation in good standing under the laws of its jurisdiction of
incorporation; and all of the issued shares of capital stock of
each Significant Subsidiary of the Company have been duly and
validly authorized and issued, are fully paid and non-assessable
and (except for directors’ qualifying shares) are owned
directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims;
(f) This Agreement has been duly
authorized, executed and delivered by the Company;
(g) The Base Indenture has been
duly qualified under the Trust Indenture Act and has been duly
authorized, executed and delivered by the Company, and is a valid
and binding agreement of the Company, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency,
reorganization and similar laws affecting creditors’ rights
generally and equitable principles of general applicability; the
Supplemental Indenture has been duly authorized by the Company and,
when duly executed and delivered by the Company, the Supplemental
Indenture will be a valid and binding agreement of the Company,
enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization and similar laws affecting
creditors’ rights generally and equitable principles of
general applicability;
(h) The Securities have been
duly authorized and, when executed and authenticated in accordance
with the provisions of the Indenture and delivered to and paid for
by the Underwriters in accordance with the terms of this Agreement,
will be valid and binding obligations of the Company, in each case
enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization and similar laws
affecting creditors’ rights generally and equitable
principles of general applicability, and will be entitled to the
benefits of the Indenture;
(i) The issue and sale of the
Securities and the compliance by the Company with all of the
provisions of the Securities, the Indenture and this
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Agreement and the consummation of the transactions herein and
therein contemplated will not conflict with or result in a breach
or violation of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan
agreement or other agreement or instrument to which the Company or
any of its Significant Subsidiaries is a party or by which the
Company or any of its Significant Subsidiaries is bound or to which
any of the property or assets of the Company or any of its
Significant Subsidiaries is subject except for such conflict,
breach, violation or default which would not have a Material
Adverse Effect, nor will such action result in any violation of the
provisions of (i) the Certificate of Incorporation or By-laws
of the Company or (ii) any statute or any order, rule or
regulation of any court or governmental agency or body having
jurisdiction over the Company or any of its subsidiaries or any of
their properties except, in the case of clause (ii) above,
such violation which would not have a Material Adverse Effect; and
no consent, approval, authorization, order, registration or
qualification of or with any such court or governmental agency or
body is required for the issue and sale of the Securities or the
consummation by the Company of the transactions contemplated by
this Agreement or the Indenture, except (i) for such consents,
approvals, authorizations, orders, registrations or qualifications
that have been obtained or where failure to do so would not have a
Material Adverse Effect, and would not affect the validity or
enforceability of this Agreement, the Securities, or the Indenture,
and (ii) for the registration of the Securities under the
Securities Act, the qualification of the Indenture under the Trust
Indenture Act and such as may be required by the securities or Blue
Sky laws of the various states or the laws of any foreign
jurisdictions in connection with the offer and sale of the
Securities;
(j) Other than as set forth or
contemplated in the Time of Sale Prospectus, there are no legal or
governmental proceedings pending to which the Company or any of its
subsidiaries is a party or of which any property of the Company or
any of its subsidiaries is the subject which, if determined
adversely to the Company or any of its subsidiaries, would
individually or in the aggregate, have a Material Adverse Effect;
and, to the best of the Company’s knowledge, no such
proceedings are threatened or contemplated by governmental
authorities or threatened by others; and there are no statutes,
regulations, contracts or other documents that are required to be
described in the Registration Statement or the Prospectus or to be
filed as exhibits to the Registration Statement that are not
described or filed or incorporated by reference as required;
(k) Each preliminary prospectus
filed pursuant to Rule 424 under the Securities Act, complied
when so filed in all material respects with the Securities Act and
the applicable rules and regulations of the Commission
thereunder;
(l) 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
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Prospectus, will not be, an “investment company” as
such term is defined in the Investment Company Act of 1940, as
amended;
(m) Other than as set forth or
contemplated in the Time of Sale Prospectus, the Company has not
incurred any costs or liabilities associated with any applicable
foreign, federal, state and local laws and regulations relating to
the protection of human health and safety, the environment or
hazardous or toxic substances or wastes, pollutants or contaminants
(“Environmental Laws”) (including, without limitation,
any capital or operating expenditures required for clean-up,
closure of properties or compliance with Environmental Laws or any
permit, license or approval, any related constraints on operating
activities and any potential liabilities to third parties) which
would, singly or in the aggregate, have a Material Adverse
Effect;
(n) Neither the Company nor any
of its Significant Subsidiaries is (i) in default in the
performance or observance of any material obligation, covenant or
condition contained in any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which it is a
party or by which it or any of its properties may be bound other
than any violations or defaults which in the aggregate would not
have a Material Adverse Effect or (ii) in violation of its
Certificate of Incorporation or By-laws;
(o) The financial statements and
the notes thereto included or incorporated by reference in the Time
of Sale Prospectus present fairly in all material respects the
financial condition, results of operations and cash flows of the
entities purported to be shown thereby at the dates and for the
periods indicated and have been prepared in accordance with
generally accepted accounting principles (“ GAAP
”) applied on a consistent basis throughout the periods
indicated and comply as to form in all material respects with the
requirements of the Securities Act and the rules and regulations of
the Commission thereunder, except as otherwise noted therein;
(p) Ernst & Young, LLP, who
have certified certain financial statements of the Company and its
subsidiaries, is an independent registered public accounting firm
as required by the Securities Act and the rules and regulations
thereunder adopted by the Commission and the Public Company
Accounting Oversight Board (United States);
(q) To the best of the knowledge
of the Company, there is, and has been, no failure on the part of
the Company or any of the Company’s directors or officers, in
their capacities as such, to comply with the provisions of the
Sarbanes Oxley Act of 2002 and the rules and regulations
promulgated in connection therewith;
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(r) Each of the Company and its
Significant Subsidiaries maintains a system of internal control
over financial reporting (as such term is defined in
Rule 13a-15(f) under the Exchange Act) sufficient to provide
reasonable assurance that (i) transactions are executed in
accordance with management’s general or specific
authorizations, (ii) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP
and to maintain accountability for assets, (iii) access to
assets is permitted only in accordance with management’s
general or specific authorization and (iv) the recorded
accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect
to any differences. Except as set forth or contemplated in the Time
of Sale Prospectus, since December 31, 2007, there has been no
change in the Company’s internal control over financial
reporting that has adversely affected, or is reasonably likely to
adversely affect, the Company’s internal control over
financial reporting; and
(s) The Company maintains
disclosure controls and procedures (as such term is defined in Rule
13a-15(e) under the Exchange Act); such disclosure controls and
procedures were effective as of December 31, 2007; and since
December 31, 2007, the Company has not become aware of any
deficiency in its disclosure controls and procedures.
2. Agreements to Sell and
Purchase . The Company hereby agrees to sell to the several
Underwriters, and each Underwriter, upon the basis of the
representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees, severally and not jointly,
to purchase from the Company the respective principal amounts of
Securities set forth in Schedule II hereto opposite its name
at the purchase price set forth in Schedule I hereto.
3. Public Offering . The
Company is advised by you that the Underwriters propose to make a
public offering of their respective portions of the Securities as
soon after the Registration Statement and this Agreement have
become effective as in your judgment is advisable. The Company is
further advised by you that the Securities are to be offered to the
public upon the terms set forth in the Time of Sale
Prospectus.
4. Payment and Delivery
. Payment for the Securities shall be made to the Company by wire
transfer in Federal or other funds immediately available in New
York City on the closing date and at the time set forth in
Schedule I hereto, or at such other time on the same or such
other date, not later than the fifth business day thereafter, as
may be designated in writing by you. The time and date of such
payment are hereinafter referred to as the “ Closing
Date .”
Payment for the Securities shall be
made against delivery to you on the Closing Date for the respective
accounts of the several Underwriters of the Securities registered
in such names and in such denominations as you shall
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request
in writing not less than two full business days prior to the
Closing Date, with any transfer taxes payable in connection with
the transfer of the Securities to the Underwriters duly paid.
5. Conditions to the
Underwriters’ Obligations . The several obligations of
the Underwriters are subject to the following conditions:
(a) Subsequent to the execution
and delivery of this Agreement and prior to the Closing Date:
(i) there shall not have occurred any
downgrading, nor shall any notice have been given of any intended
or potential downgrading or of any review for a possible change
that does not indicate the direction of the possible change, in the
rating accorded the Company or any of the securities of the Company
or any of its subsidiaries or in the rating outlook for the Company
by any “nationally recognized statistical rating
organization,” as such term is defined for purposes of
Rule 436(g)(2) under the Securities Act; and
(ii) there shall not have occurred
any change, or any development involving a prosp
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