Exhibit 1
$250,000,000
Black Hills
Corporation
9% Senior Notes due
2014
UNDERWRITING
AGREEMENT
May 11, 2009
CREDIT SUISSE SECURITIES (USA) LLC
RBS SECURITIES INC.,
As Representatives (the “
Representatives ”) of the Several
Underwriters,
|
c/o
|
Credit Suisse Securities (USA) LLC
|
|
|
Eleven Madison Avenue,
|
|
|
New York, N.Y. 10010-3629
|
Dear Sirs:
1.
Introductory . Black Hills Corporation, a
South Dakota corporation (the “ Company ”), agrees with the
several Underwriters named in Schedule A hereto (the
“ Underwriters
”) to issue
and sell to the several Underwriters $250,000,000 principal amount
of its 9% Senior Notes due 2014 (the “ Offered Securities ”) to be issued under
an indenture dated as of May 21, 2003, between the Company and
Wells Fargo Bank, National Association (as successor to LaSalle
Bank National Association), as Trustee, as supplemented by a first
supplemental indenture dated as of May 21, 2003, between the
Company and Wells Fargo Bank, National Association (as successor to
LaSalle Bank National Association), as Trustee, and a second
supplemental indenture to be dated as of May 14, 2009, between
the Company and Wells Fargo Bank, National Association, as Trustee
with respect to the Offered Securities (as so supplemented, the
“ Indenture
”).
2.
Representations and Warranties of the Company . The
Company represents and warrants to, and agrees with, the several
Underwriters that:
(a)
Filing and Effectiveness of Registration Statement; Certain
Defined Terms . The Company has filed with the Commission
a registration statement on Form S-3 (No. 333-150669),
including a related prospectus or prospectuses, covering the
registration of the Offered Securities under the Act, which has
become effective. “ Registration Statement ” at any particular
time means such registration statement in the form then filed with
the Commission, including any amendment thereto, any document
incorporated by reference therein and all 430B Information and all
430C Information with respect to such registration statement, that
in any case has not been superseded or modified.
“ Registration
Statement ” without reference to
a time means the Registration Statement as of the Effective
Time. For purposes of this definition, 430B Information shall
be considered to be included in the Registration Statement as of
the time specified in Rule 430B.
For purposes of
this Agreement:
“
430B Information ” means information
included in a prospectus then deemed to be a part of the
Registration Statement pursuant to Rule 430B(e) or
retroactively deemed to be a part of the Registration Statement
pursuant to Rule 430B(f).
“
430C Information ” means information
included in a prospectus then deemed to be a part of the
Registration Statement pursuant to Rule 430C.
“
Act ” means the Securities
Act of 1933, as amended.
“
Applicable Time ” means approximately
5:00 p.m. (Eastern time) on the date of this
Agreement.
“
Closing Date ” has the meaning
defined in Section 3 hereof.
“
Commission ” means the Securities
and Exchange Commission.
“
Effective Time ” of the Registration
Statement relating to the Offered Securities means the time of the
first contract of sale for the Offered Securities.
“
Energy Policy Act
” means the
Energy Policy Act of 2005, as amended.
“
Exchange Act ” means the Securities
Exchange Act of 1934, as amended.
“
Federal Power Act
” means the
Federal Power Act, as amended.
“
Final Prospectus ” means the Statutory
Prospectus that discloses the public offering price, other 430B
Information and other final terms of the Offered Securities and
otherwise satisfies Section 10(a) of the Act.
“
General Use Issuer Free Writing
Prospectus ” means any Issuer
Free Writing Prospectus that is intended for general distribution
to prospective investors, as evidenced by its being so specified in
Schedule B to this Agreement.
“
Issuer Free Writing
Prospectus ” means any
“issuer free writing prospectus”, as defined in
Rule 433, relating to the Offered Securities in the form filed
or required to be filed with the Commission or, if not required to
be filed, in the form retained in the Company’s records
pursuant to Rule 433(g).
“
Limited Use Issuer Free Writing
Prospectus ” means any Issuer
Free Writing Prospectus that is not a General Use Issuer Free
Writing Prospectus.
“
Rules and Regulations
” means the
rules and regulations of the Commission.
“
Securities Laws ” means, collectively,
the Sarbanes-Oxley Act of 2002 (“ Sarbanes-Oxley ”), the Act, the
Exchange Act, the Trust Indenture Act, the Rules and
Regulations, the auditing principles, rules, standards and
practices applicable to auditors of “issuers” (as
defined in Sarbanes-Oxley) promulgated or approved by the Public
Company Accounting Oversight Board and, as applicable, the
rules of the New York Stock Exchange and the NASDAQ Stock
Market (“ Exchange
Rules ”).
“
Statutory Prospectus
” with
reference to any particular time means the prospectus relating to
the Offered Securities that is included in the Registration
Statement immediately prior to that time, including all
430B Information and all 430C Information with respect to
the Registration Statement. For purposes of the foregoing
definition, 430B Information shall be considered to be
included in the Statutory Prospectus only as of the actual time
that form of prospectus (including a prospectus supplement) is
filed with the Commission pursuant to Rule 424(b) and not
retroactively.
“
Trust Indenture Act
” means the
Trust Indenture Act of 1939, as amended.
2
Unless otherwise
specified, a reference to a “rule” is to the indicated
rule under the Act.
(b)
Compliance with Securities Act Requirements .
(i) (A) At the time the Registration Statement initially
became effective, (B) at the time of each amendment thereto
for the purposes of complying with Section 10(a)(3) of
the Act (whether by post-effective amendment, incorporated report
or form of prospectus), (C) at the Effective Time relating to
the Offered Securities and (D) on the Closing Date, the
Registration Statement conformed and will conform in all material
respects to the requirements of the Act, the Trust Indenture Act
and the Rules and Regulations and did not and will not include
any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make
the statements therein not misleading and (ii) (A) on its
date, (B) at the time of filing the Final Prospectus pursuant
to Rule 424(b) and (C) on the Closing Date, the
Final Prospectus will conform in all material respects to the
requirements of the Act, the Trust Indenture Act and the
Rules and Regulations, and will not include any untrue
statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements
therein not misleading. The preceding sentence does not apply
to statements in or omissions from any such document based upon
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 is that
described as such in Section 8(b) hereof.
(c)
Automatic Shelf Registration Statement . (i)
Well-Known Seasoned Issuer Status . (A) At the
time of initial filing of the Registration Statement, (B) at
the time of the most recent amendment thereto for the purposes of
complying with Section 10(a)(3) of the Act (whether such
amendment was by post-effective amendment, incorporated report
filed pursuant to Section 13 or 15(d) of the Exchange Act
or form of prospectus), and (C) at the time the Company or any
person acting on its behalf (within the meaning, for this clause
only, of Rule 163(c)) made any offer relating to the Offered
Securities in reliance on the exemption of Rule 163, the
Company was a “well known seasoned issuer” as defined
in Rule 405, including not having been an “ineligible
issuer” as defined in Rule 405.
(ii)
Effectiveness of Automatic Shelf Registration Statement
. The Registration Statement is an “automatic shelf
registration statement”, as defined in Rule 405, that
initially became effective within three years of the date of this
Agreement. If immediately prior to the Renewal Deadline (as
hereinafter defined), any of the Offered Securities remain unsold
by the Underwriters, the Company will prior to the Renewal Deadline
file, if it has not already done so and is eligible to do so, a new
automatic shelf registration statement relating to the Offered
Securities, in a form reasonably satisfactory to Credit Suisse
Securities (USA) LLC (“ Credit Suisse ”). If the
Company is no longer eligible to file an automatic shelf
registration statement, the Company will prior to the Renewal
Deadline, if it has not already done so, file a new shelf
registration statement relating to the Offered Securities, in a
form reasonably satisfactory to Credit Suisse, and will use its
best efforts to cause such registration statement to be declared
effective within 180 days after the Renewal Deadline.
The Company will take all other action necessary or appropriate to
permit the public offering and sale of the Offered Securities to
continue as contemplated in the expired registration statement
relating to the Offered Securities. References herein to the
Registration Statement shall include such new automatic shelf
registration statement or such new shelf registration statement, as
the case may be. “ Renewal Deadline ” means the third
anniversary of the initial effective time of the Registration
Statement.
(iii)
Eligibility to Use Automatic Shelf Registration Form .
The Company has not received from the Commission any notice
pursuant to Rule 401(g)(2) objecting to use of the
automatic shelf registration statement form. If at any time
when Offered Securities remain unsold by the Underwriters the
Company receives from the Commission a notice
3
pursuant to
Rule 401(g)(2) or otherwise ceases to be eligible to use
the automatic shelf registration statement form, the Company will
(A) promptly notify Credit Suisse, (B) promptly file a
new registration statement or post-effective amendment on the
proper form relating to the Offered Securities, in a form
reasonably satisfactory to Credit Suisse, (C) use its best
efforts to cause such registration statement or post-effective
amendment to be declared effective as soon as practicable, and
(D) promptly notify Credit Suisse of such effectiveness.
The Company will take all other action necessary or appropriate to
permit the public offering and sale of the Offered Securities to
continue as contemplated in the registration statement that was the
subject of the Rule 401(g)(2) notice or for which the
Company has otherwise become ineligible. References herein to
the Registration Statement shall include such new registration
statement or post-effective amendment, as the case may
be.
(iv)
Filing Fees . The Company has paid or shall pay the
required Commission filing fees relating to the Offered Securities
within the time required by Rule 456(b)(1) without regard
to the proviso therein and otherwise in accordance with
Rules 456(b) and 457(r).
(d)
Ineligible Issuer Status . (i) At the earliest
time after the filing of the Registration Statement that the
Company or another offering participant made a bona fide offer
(within the meaning of Rule 164(h)(2)) of the Offered
Securities and (ii) at the date of this Agreement, the Company
was not and is not an “ineligible issuer”, as defined
in Rule 405, including (A) the Company or any subsidiary
of the Company in the preceding three years not having been
convicted of a felony or misdemeanor or having been made the
subject of a judicial or administrative decree or order as
described in Rule 405 and (B) the Company in the
preceding three years not having been the subject of a bankruptcy
petition or insolvency or similar proceeding, not having had a
registration statement be the subject of a proceeding under
Section 8 of the Act and not being the subject of a proceeding
under Section 8A of the Act in connection with the offering of
the Securities, all as described in Rule 405.
(e)
General Disclosure Package . As of the Applicable
Time, neither (i) the General Use Issuer Free Writing
Prospectus(es) issued at or prior to the Applicable Time and the
preliminary prospectus supplement, dated May 11, 2009,
including the base prospectus, dated May 6, 2008 (which is the
most recent Statutory Prospectus distributed to investors
generally), and the other information, if
any, stated in Schedule B to this Agreement to be included in
the General Disclosure Package, all considered together
(collectively, the “ General Disclosure Package ”), nor (ii) any
individual Limited Use Issuer Free Writing Prospectus, when
considered together with the General Disclosure Package, included
any untrue statement of a material fact or omitted 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 any Statutory Prospectus or any
Issuer Free Writing Prospectus in reliance 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.
(f)
Issuer Free Writing Prospectuses . Each Issuer Free
Writing Prospectus, as of its issue date and at all subsequent
times through the completion of the public offer and sale of the
Offered Securities or until any earlier date that the Company
notified or notifies Credit Suisse 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
then 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
4
such Issuer Free
Writing Prospectus conflicted or would conflict with the
information then contained in the Registration Statement or as a
result of which such Issuer Free Writing Prospectus, if republished
immediately following such event or development, would include an
untrue statement of a material fact or omitted or would 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, (i) the Company has promptly notified or
will promptly notify Credit Suisse and (ii) the Company has
promptly amended or will promptly amend or supplement such Issuer
Free Writing Prospectus to eliminate or correct such conflict,
untrue statement or omission.
(g)
Good Standing of the Company . The Company has been
duly incorporated and is existing and in good standing under the
laws of the State of South Dakota, with power and authority
(corporate and other) to own its properties and conduct its
business as described in the General Disclosure Package; and the
Company is duly qualified to do business as a foreign corporation
in good standing in all other jurisdictions in which its ownership
or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified and in
good standing would not, individually or in the aggregate, result
in a material adverse effect on the condition (financial or
otherwise), results of operations, business, properties or
prospects of the Company and its subsidiaries taken as a whole
(“ Material Adverse
Effect ”).
(h)
Subsidiaries . Each subsidiary of the Company has been
duly incorporated or organized, as the case may be, and is existing
and in good standing under the laws of the jurisdiction of its
incorporation or organization, as the case may be, with power and
authority (corporate and other) to own its properties and conduct
its business as described in the General Disclosure Package; and
each subsidiary of the Company is duly qualified to do business as
a foreign corporation, limited partnership, general partnership or
limited liability company, as the case may be, in good standing in
all other jurisdictions in which its ownership or lease of property
or the conduct of its business requires such qualification, except
where the failure to be so qualified and in good standing would
not, individually or in the aggregate, result in a Material Adverse
Effect; all of the issued and outstanding capital stock or
partnership or limited liability company interests, as the case may
be, of each subsidiary of the Company has been duly authorized and
validly issued and is fully paid and nonassessable; and the capital
stock or partnership or limited liability company interests, as the
case may be, of each subsidiary owned by the Company, directly or
through subsidiaries, is owned free from liens, encumbrances and
defects.
(i)
Execution and Delivery of Indenture . The Indenture
has been duly authorized and has been duly qualified under the
Trust Indenture Act; the Offered Securities have been duly
authorized and, when the Offered Securities are delivered and paid
for pursuant to this Agreement on each Closing Date, the Indenture
will have been duly executed and delivered, such Offered Securities
will have been duly executed, authenticated, issued and delivered,
will conform to the information in the General Disclosure Package
and to the description of such Offered Securities contained in the
Final Prospectus and the Indenture and such Offered Securities will
constitute valid and legally binding obligations of the Company,
enforceable in accordance with their terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting
creditors’ rights and to general equity
principles.
(j) No
Finder’s Fee . Except as disclosed in the General
Disclosure Package, there are no contracts, agreements or
understandings between the Company and any person that would give
rise to a valid claim against the Company or any Underwriter for a
brokerage commission, finder’s fee or other like payment in
connection with this offering.
(k)
Registration Rights . Except as disclosed in the
General Disclosure Package, there are no contracts, agreements or
understandings between the Company and any person granting such
person the right to require the Company to file a registration
statement under the Act with respect to any securities of the
Company owned or to be owned by such person or to require the
Company to include such securities in the securities registered
pursuant to a Registration Statement or in any
5
securities being
registered pursuant to any other registration statement filed by
the Company under the Act (collectively, “
registration rights
”), and any
person to whom the Company has granted registration rights has
agreed, if necessary, not to exercise such rights until after the
expiration of the Lock-Up Period referred to in Section 5
hereof.
(l)
Absence of Further Requirements . No consent,
approval, authorization, or order of, or filing or registration
with, any person (including any governmental agency or body or any
court) is required for the consummation of the transactions
contemplated by this Agreement or the Indenture in connection with
the offering, issuance and sale of the Offered Securities by the
Company, except such as have been obtained or made and such as may
be required under state securities laws.
(m)
Title to Property . Except as disclosed in the General
Disclosure Package, the Company and its subsidiaries have good and
defensible title to all interests in oil and gas properties owned
by them and good and marketable title to all other real properties
and all other properties and assets owned by them that are material
to the Company and its subsidiaries taken as a whole, in each case
free from liens, charges, encumbrances and defects that would
materially affect the value thereof or materially interfere with
the use made or to be made thereof by them and, except as disclosed
in the General Disclosure Package, the Company and its subsidiaries
hold any leased real or personal property that is material to the
Company and its subsidiaries taken as a whole under valid and
enforceable leases with no terms or provisions that would
materially interfere with the use made or to be made thereof by
them.
(n)
Absence of Defaults and Conflicts Resulting from Transaction
. The execution, delivery and performance of the Indenture
and this Agreement, and the issuance and sale of the Offered
Securities and compliance with the terms and provisions thereof,
will not result in a breach or violation of any of the terms and
provisions of, or constitute a default or a Debt Repayment
Triggering Event (as defined below) under, or result in the
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 by-laws or other organizational documents
of the Company or any of its subsidiaries, (ii) any statute,
rule, regulation or order of any governmental agency or body or any
court, domestic or foreign, having jurisdiction over the Company or
any of its subsidiaries or any of their properties, or
(iii) any agreement or instrument to which the Company or any
of its subsidiaries is a party or by which the Company or any of
its subsidiaries is bound or to which any of the properties of the
Company or any of its subsidiaries is subject, except, in the case
of clauses (ii) and (iii), as would not, individually or in
the aggregate, result in a Material Adverse Effect. A
“ Debt Repayment
Triggering Event ” means any event or
condition that gives, or with the giving of notice or lapse of time
would give, the holder of any note, debenture, or other evidence of
indebtedness (or any person acting on such holder’s behalf)
the right to require the repurchase, redemption or repayment of all
or a portion of such indebtedness by the Company or any of its
subsidiaries.
(o)
Absence of Existing Defaults and Conflicts . Neither
the Company nor any of its subsidiaries is in violation of its
respective charter, by-laws or organizational documents or in
default (or with the giving of notice or lapse of time would be in
default) under any existing obligation, agreement, covenant or
condition contained in any indenture, loan agreement, mortgage,
lease or other agreement or instrument to which any of them is a
party or by which any of them is bound or to which any of the
properties of any of them is subject, except such defaults that
would not, individually or in the aggregate, result in a Material
Adverse Effect.
(p)
Authorization of Agreement . This Agreement has been
duly authorized, executed and delivered by the Company.
(q)
Possession of Licenses . The Company and its
subsidiaries possess, and are in compliance with the terms of, all
adequate certificates, authorizations, franchises, licenses and
permits
6
(“
Licenses ”) necessary or
material to the conduct of the business now conducted or proposed
in the General Disclosure Package to be conducted by them and have
not received any notice of proceedings relating to the revocation
or modification of any Licenses that, if determined adversely to
the Company or any of its subsidiaries, would individually or in
the aggregate have a Material Adverse Effect.
(r)
Absence of Labor Dispute . No labor dispute with the
employees of the Company or any of its subsidiaries exists or, to
the knowledge of the Company, is imminent that could have a
Material Adverse Effect.
(s)
Possession of Intellectual Property . The Company and
its subsidiaries own, possess or can acquire on reasonable terms,
adequate trademarks, trade names and other rights to inventions,
know-how, patents, copyrights, confidential information and other
intellectual property (collectively, “ intellectual property rights ”) necessary to
conduct the business now operated by them, or presently employed by
them, and have not received any notice of infringement of or
conflict with asserted rights of others with respect to any
intellectual property rights that, if determined adversely to the
Company or any of its subsidiaries, would individually or in the
aggregate have a Material Adverse Effect.
(t)
Environmental Laws . Except as disclosed in the
General Disclosure Package, neither the Company nor any of its
subsidiaries is in violation of any statute, any rule, regulation,
decision or order of any governmental agency or body or any court,
domestic or foreign, relating to the use, disposal or release of
hazardous or toxic substances or relating to the protection or
restoration of the environment or human exposure to hazardous or
toxic substances (collectively, “ environmental laws ”), owns or operates
any real property contaminated with any substance that is subject
to any environmental laws, is liable for any off-site disposal or
contamination pursuant to any environmental laws, or is subject to
any claim relating to any environmental laws, which violation,
contamination, liability or claim would individually or in the
aggregate have a Material Adverse Effect; and the Company is not
aware of any pending investigation which might lead to such a
claim.
(u)
Accurate Disclosure . The statements in the
Registration Statement, General Disclosure Package and the Final
Prospectus under the headings “Description of the
Notes”, “Description of Senior Debt Securities”,
“Description of Subordinated Debt Securities”,
“Description of Capital Stock”, “Description of
Warrants”, “Description of Purchase Contracts”,
“Description of Units”, “Material United States
Federal Income Tax Considerations” and
“Underwriting”, insofar as such statements summarize
legal matters, agreements, documents or proceedings discussed
therein, are accurate and fair summaries of such legal matters,
agreements, documents or proceedings in all material respects and
present the information required to be shown.
(v)
Absence of Manipulation . The Company has not taken,
directly or indirectly, any action that is designed to or that has
constituted or that would reasonably be expected to cause or result
in the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of the Offered
Securities.
(w)
Internal Controls and Compliance with the Sarbanes-Oxley Act
. Except as set forth in the General Disclosure Package, the
Company, its subsidiaries and the Company’s Board of
Directors (the “ Board ”) are in compliance in
all material respects with Sarbanes-Oxley and all applicable
Exchange Rules. The Company maintains a system of internal
controls, including, but not limited to, disclosure controls and
procedures, internal controls over accounting matters and financial
reporting, an internal audit function and legal and regulatory
compliance controls (collectively, “ Internal Controls ”) that comply in all
material respects with the Securities Laws and are sufficient to
provide reasonable assurances 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
generally accepted accounting
7
principles in the
United States 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. The Internal
Controls are, or upon consummation of the offering of the Offered
Securities will be, overseen by the Audit Committee (the
“ Audit
Committee ”) of the Board in
accordance with Exchange Rules. Since the date of the filing
of the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2008, the Company has not
publicly disclosed or reported to the Audit Committee or the Board,
and within the next 90 days the Company does not reasonably
expect to publicly disclose or report to the Audit Committee or the
Board, (i) any significant deficiency in the design or
operation of Internal Controls that could adversely affect the
Company’s ability to record, process, summarize and report
financial data, any material weakness in Internal Controls, any
material change in Internal Controls or any fraud involving
management or other employees who have a significant role in
Internal Controls (each, an “ Internal Control Event ”) or (ii) any
material violation of, or failure to comply with, the Securities
Laws.
(x)
Absence of Accounting Issues . A member of the Audit
Committee has confirmed to the Chief Executive Officer, Chief
Financial Officer or General Counsel of the Company that, except as
set forth in the General Disclosure Package, the Audit Committee is
not reviewing or investigating, and neither the Company’s
independent auditors nor its internal auditors have recommended
that the Audit Committee review or investigate, (i) adding to,
deleting, changing the application of, or changing the
Company’s disclosure with respect to, any of the
Company’s material accounting policies; (ii) any matter
which could result in a restatement of the Company’s
financial statements for any annual or interim period during the
current or prior three fiscal years; or (iii) any Internal
Control Event.
(y)
Litigation . Except as disclosed in the General
Disclosure Package, there are no pending actions, suits or
proceedings (including any inquiries or investigations by any court
or governmental agency or body, domestic or foreign) against or
affecting the Company, any of its subsidiaries or any of their
respective properties that, if determined adversely to the Company
or any of its subsidiaries, would individually or in the aggregate
have a Material Adverse Effect, or would materially and adversely
affect the ability of the Company to perform its obligations under
the Indenture or this Agreement, or which are otherwise material in
the context of the sale of the Offered Securities; and no such
actions, suits or proceedings (including any inquiries or
investigations by any court or governmental agency or body,
domestic or foreign) are, to the Company’s knowledge,
threatened or contemplated.
(z)
Financial Statements . The financial statements
included in the Registration Statement and the General Disclosure
Package present fairly the financial position of the Company and
its consolidated subsidiaries as of the dates shown and their
results of operations and cash flows for the periods shown, and
such financial statements have been prepared in conformity with the
generally accepted accounting principles in the United States
applied on a consistent basis; the schedules included in the
Registration Statement present fairly the information required to
be stated therein; and the assumptions used in preparing the pro
forma financial statements included in the Registration Statement
and the General Disclosure Package provide a reasonable basis for
presenting the significant effects directly attributable to the
transactions or events described therein, the related pro forma
adjustments give appropriate effect to those assumptions, and the
pro forma columns therein reflect the proper application of those
adjustments to the corresponding historical financial statement
amounts.
(aa) No
Material Adverse Change in Business . Except as disclosed
in the General Disclosure Package, since the end of the period
covered by the latest audited financial statements included in the
General Disclosure Package (i) there has been no change, nor
any development or event involving a prospective change, in the
condition (financial or otherwise), results of
operations,
8
business,
properties or prospects of the Company and its subsidiaries, taken
as a whole that is material and adverse, (ii) except as
disclosed in or contemplated by the General Disclosure Package,
there has been no dividend or distribution of any kind declared,
paid or made by the Company on any class of its capital stock
(other than regular quarterly cash dividends of not more than
$0.355 per share in respect of the Company’s common stock)
and (iii) except as disclosed in or contemplated by the
General Disclosure Package, there has been no material adverse
change in the capital stock, short-term indebtedness, long-term
indebtedness, net current assets or net assets of the Company and
its subsidiaries.
(bb)
Investment Company Act . The Company is not and, after
giving effect to the offering and sale of the Offered Securities
and the application of the proceeds thereof as described in the
General Disclosure Package, will not be an “investment
company” as defined in the Investment Company Act of 1940
(the “ Investment
Company Act ”).
(cc)
Ratings . No “nationally recognized statistical
rating organization” as such term is defined for purposes of
Rule 436(g)(2) (i) has imposed (or has informed the
Company that it is considering imposing) any condition (financial
or otherwise) on the Company’s retaining any rating assigned
to the Company or any securities of the Company or (ii) has
indicated to the Company that it is considering any of the actions
described in Section 7(f)(ii) hereof.
(dd)
Reserve Report Data . The oil and gas reserve
estimates of the Company and its subsidiaries for the fiscal years
ended December 31, 2006, December 31, 2007, and
December 31, 2008, contained in the General Disclosure Package
are derived from reports that have been prepared by Ralph E. Davis
Associates, Inc., in the case of the fiscal year ended
December 31, 2006, and Cawley, Gillespie &
Associates, Inc., in the case of the fiscal years ended
December 31, 2007, and December 31, 2008, as set forth
therein, such reserve estimates fairly reflect the estimated oil
and gas reserves of the Company and its subsidiaries at the dates
indicated therein and are in accordance with the Commission
guidelines applicable thereto applied on a consistent basis
throughout the periods involved.
(ee)
Independent Reserve Engineers. Each of Cawley,
Gillespie & Associates, Inc., and Ralph E. Davis
Associates, Inc., have represented to the Company that they
are, and the Company believes each of them to be, independent
reserve engineers with respect to the Company and its subsidiaries
and for the periods set forth in the General Disclosure
Package.
3.
Purchase, Sale and Delivery of Offered Securities . On
the basis of the representations, warranties and agreements and
subject to the terms and conditions set forth herein, the Company
agrees to sell to the several Underwriters, and each of the
Underwriters agrees, severally and not jointly, to purchase from
the Company, at a purchase price of 99.4% of the principal amount
thereof plus accrued interest from May 14, 2009, to the
Closing Date (as hereinafter defined), the respective principal
amounts of Offered Securities set forth opposite the names of the
Underwriters in Schedule A hereto.
The Company will deliver the Offered
Securities to or as instructed by the Representatives for the
accounts of the several Underwriters in a form reasonably
acceptable to the Representatives against payment of the purchase
price by the Underwriters in Federal (same day) funds by wire
transfer to an account at a bank acceptable to Credit Suisse drawn
to the order of the Company at the office of Cravath,
Swaine & Moore LLP, 825 Eighth Avenue, New York, NY
10019-7416 at 9:00 a.m., New York time, on May 14,
2009, or at such other time not later than seven full business days
thereafter as Credit Suisse and the Company determine, such time
being herein referred to as the “ Closing Date
”. For purposes of Rule 15c6-1 under the Exchange
Act, the Closing Date (if later than the otherwise applicable
settlement date) shall be the settlement date for payment of funds
and delivery of securities for all the Offered Securities sold
pursuant to the offering. The Offered Securities so to be
delivered or evidence of their issuance will be made available for
checking at the above office of Cravath, Swaine & Moore
LLP at least 24 hours prior to the Closing Date.
9
4.
Offering by Underwriters . It is understood that the
several Underwriters propose to offer the Offered Securities for
sale to the public as set forth in the Final
Prospectus.
5.
Certain Agreements of the Company . The Company agrees
with the several Underwriters that:
(a)
Filing of Prospectuses. The Company has filed or will
file each Statutory Prospectus (including the Final Prospectus)
pursuant to and in accordance with Rule 424(b)(2) (or, if
applicable and consented to by Credit Suisse,
subparagraph (5), such consent not to be unreasonably withheld
or delayed) not later than the second business day
followin
|