Teleflex Incorporated $350,000,000 3.875% Convertible Senior Subordinated Notes Due 2017 Underwriting Agreement
Exhibit
1.1
Teleflex Incorporated
$350,000,000 3.875% Convertible Senior Subordinated Notes Due 2017
August 3, 2010
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co.
▇▇▇▇▇▇▇▇▇ & Company, Inc.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated,
▇.▇. ▇▇▇▇▇▇ Securities Inc.
▇▇▇▇▇▇▇▇▇ & Company, Inc.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated,
▇.▇. ▇▇▇▇▇▇ Securities Inc.
c/o Goldman, ▇▇▇▇▇ & Co.
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇,
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇
Ladies and Gentlemen:
Teleflex Incorporated, a Delaware corporation (the “Company”), proposes, subject to the terms
and conditions stated in this Underwriting Agreement (this “Agreement”), to issue and sell to the
Underwriters named in Schedule I hereto (the “Underwriters”) an aggregate of $350,000,000 principal
amount (the “Firm Securities”) of its Convertible Senior Subordinated Notes due 2017 (the “Notes”),
which are convertible into shares of the Company’s common stock, $1 par value (“Stock”), and, at
the election of the Underwriters, up to an aggregate of $50,000,000 in additional aggregate
principal amount of Notes (the “Optional Securities”) (the Firm Securities and the Optional
Securities which the Underwriters elect to purchase pursuant to Section 2 hereof are herein
collectively called the “Securities”). The Securities will be issued pursuant to an indenture,
dated as of August 2, 2010 (the “Base Indenture”) by and between the Company and ▇▇▇▇▇ Fargo Bank,
N.A., as trustee (the “Trustee”), as supplemented by the first supplemental indenture, dated as of
the Time of Delivery, by and between the Company and the Trustee (together with the Base Indenture,
the “Indenture”).
The Company and the Underwriters, in accordance with the requirements of Conduct Rule 2720
(“Rule 2720”) of the Financial Industry Regulatory Authority, formerly National Association of
Securities Dealers, Inc. (“FINRA”) and subject to the terms and conditions stated herein, also
hereby confirm the engagement of the services of ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. (the “Independent
Underwriter”), as a “qualified independent
1
underwriter” within the meaning of Section (f)(12) of Rule 2720 in connection with the
offering and sale of the Securities.
Concurrently with the issue and sale of the Securities, the Company will (i) enter into an
amendment (the “Credit Facility Amendment”) to the Company’s $1.8 billion senior secured credit
facilities (the “Existing Credit Facilities”) and (ii) enter into the convertible note hedge
transactions and warrant transactions (collectively, the “Hedge Transactions”).
The Securities are being offered and sold in connection with a partial repayment of borrowings
under the Company’s Existing Credit Facilities and the prepayment of the Company’s outstanding
7.62% Series A Senior Notes due 2012, 7.94% Series B Senior Notes due 2014 and Floating Rate Series
C Senior Notes due 2012 (the “2007 Existing Senior Notes”) (collectively, the “Refinancing”). The
proceeds from the sale of the Securities, together with the proceeds from the sale of the warrant
transaction, available cash and borrowings under the Company’s revolving credit facility, will be
used to fund the Refinancing and to pay the fees, expenses and other costs relating to the offer
and sale of the Securities, the entry into the Credit Facility Amendment and the entry into the
Hedge Transactions.
This Agreement, the Securities and the Indenture are collectively referred to herein as the
“Note Documents.”
1. The Company represents and warrants to, and agrees with, each of the Underwriters
and the Independent Underwriter that:
(a) An “automatic shelf registration statement” as defined under Rule 405
under the Securities Act of 1933, as amended (the “Act”) on Form S-3 (File No. 333-168464)
in respect of the Securities and shares of Stock issuable upon conversion thereof has been
filed with the Securities and Exchange Commission (the “Commission”) not earlier than three
years prior to the date hereof; such registration statement, and any post-effective
amendment thereto, became effective on filing; and no stop order suspending the
effectiveness of such registration statement or any part thereof has been issued and no
proceeding for that purpose has been initiated or, to the knowledge of the Company,
threatened by the Commission, and no notice of objection of the Commission to the use of
such registration statement or any post-effective amendment thereto pursuant to Rule
401(g)(2) under the Act has been received by the Company (the base prospectus filed as part
of such registration statement, in the form in which it has most recently been filed with
the Commission on or prior to the date of this Agreement, is hereinafter called the “Basic
Prospectus”; any preliminary prospectus (including any preliminary prospectus supplement)
relating to the Securities filed with the Commission pursuant to Rule 424(b) under the Act
is hereinafter called a “Preliminary Prospectus”; the various parts of such registration
statement, including all exhibits thereto but excluding Form T-1 and including any
prospectus supplement relating to the Securities that is filed with the Commission and
deemed by virtue of Rule 430B to be part of such
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registration statement, each as amended at the time such part of the registration
statement became effective, are hereinafter collectively called the “Registration
Statement”; the Basic Prospectus, as amended and supplemented immediately prior to the
Applicable Time (as defined in Section 1(c) hereof), is hereinafter called the “Pricing
Prospectus”; the form of the final prospectus relating to the Securities filed with the
Commission pursuant to Rule 424(b) under the Act in accordance with Section 5(a) hereof is
hereinafter called the “Prospectus”; any reference herein to the Basic Prospectus, the
Pricing Prospectus, 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 Act, as of the date of such prospectus; any reference to any amendment or
supplement to the Basic Prospectus, any Preliminary Prospectus or the Prospectus shall be
deemed to refer to and include any post-effective amendment to the Registration Statement,
any prospectus supplement relating to the Securities filed with the Commission pursuant to
Rule 424(b) under the Act and any documents filed under the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), and incorporated therein, in each case after the date of
the Basic Prospectus, such Preliminary Prospectus, or the Prospectus, as the case may be;
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; and any “issuer free writing prospectus” as defined
in Rule 433 under the Act relating to the Securities is hereinafter called an “Issuer Free
Writing Prospectus”);
(b) No order preventing or suspending the use of any Preliminary Prospectus
or any Issuer Free Writing Prospectus has been issued by the Commission, and each
Preliminary Prospectus, at the time of filing thereof, conformed in all material respects to
the requirements of the Act and the Trust Indenture Act of 1939, as amended (the “Trust
Indenture Act”) and the rules and regulations of the Commission thereunder, and did not
contain an 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, in the light of the
circumstances under which they were made, not misleading; provided, however, that this
representation and warranty shall not apply to any statements or omissions made in reliance
upon and in conformity with information furnished in writing to the Company by an
Underwriter through ▇▇▇▇▇▇▇, Sachs & Co. expressly for use therein;
(c) For the purposes of this Agreement, the “Applicable Time” is 5:30 pm
(Eastern time) on the date of this Agreement; the Pricing Prospectus as supplemented by the
final term sheet in the form attached as Schedule III hereto prepared and filed pursuant to
Section 5(a) hereof, taken together (collectively, the “Pricing Disclosure Package”) as of
the Applicable Time, did not include 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
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which they were made, not misleading; and each Issuer Free Writing Prospectus listed on
Schedule II(a) hereto does not conflict with the information contained in the Registration
Statement, the Pricing Prospectus or the Prospectus and each such Issuer Free Writing
Prospectus, as supplemented by and taken together with the Pricing Disclosure Package as of
the Applicable Time, did not include 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; provided, however, that this
representation and warranty shall not apply to statements or omissions made in an Issuer
Free Writing Prospectus in reliance upon and in conformity with information furnished in
writing to the Company by an Underwriter through ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. expressly for use
therein;
(d) The documents incorporated by reference in the Pricing Prospectus and 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 Act or the Exchange Act,
as applicable, and the rules and regulations of the Commission thereunder, and none of such
documents contained an untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary to make the statements therein not
misleading; any further documents so filed and incorporated by reference in the Prospectus
or any further amendment or supplement thereto, when such documents become effective or are
filed with the Commission, as the case may be, will conform in all material respects to the
requirements of the Act or the Exchange Act, as applicable, and the rules and regulations of
the Commission thereunder and will not contain an 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; provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance upon and in conformity with
information furnished in writing to the Company by an Underwriter through ▇▇▇▇▇▇▇, Sachs &
Co. expressly for use therein; and no such documents were filed with the Commission since
the Commission’s close of business on the business day immediately prior to the date of this
Agreement and prior to the execution of this Agreement, except as set forth on Schedule
II(b) hereto;
(e) The Registration Statement conforms, and the Prospectus and any further
amendments or supplements to the Registration Statement and the Prospectus will conform, in
all material respects to the requirements of the Act and the Trust Indenture Act and the
rules and regulations of the Commission thereunder and do not and will not, as of the
applicable effective date as to each part of the Registration Statement and as of the
applicable filing date as to the Prospectus and any amendment or supplement thereto, contain
an 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; provided,
however, that this representation and warranty shall not apply to any statements or
omissions made in reliance upon and in conformity with information furnished
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in writing to the Company by an Underwriter through ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. expressly for
use therein;
(f) Neither the Company nor any of its subsidiaries has sustained since the
date of the latest audited financial statements included or incorporated by reference in the
Pricing Prospectus any material 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, otherwise than as set forth or contemplated
in the Pricing Prospectus; and, since the respective dates as of which information is given
in the Registration Statement and the Pricing Prospectus, there has not been any change in
the capital stock or long term debt of the Company or any of its subsidiaries (other than
changes due to (i) issuances of the Company’s common stock under the Company’s employee
benefit plans and the Company’s dividend reinvestment plan, (ii) any shares purchased under
the Company’s existing stock repurchase program or (iii) any scheduled repayment of the
Company’s existing debt) or any material adverse change, or any development involving a
prospective material adverse change, in or affecting the general affairs, management,
financial position, stockholders’ equity or results of operations of the Company and its
subsidiaries, taken as a whole, otherwise than as set forth or contemplated in the Pricing
Prospectus;
(g) Each of the Company and its “significant subsidiaries” (as such term is
defined in Rule 1-02(w) of Regulation S-X under the Act; each a “Subsidiary” and together
the “Subsidiaries”) have good and marketable title in fee simple to all real property and
good and marketable title to all personal property owned by it, in each case free and clear
of all liens, encumbrances and defects (other than pledges of shares of certain of the
Company’s domestic and foreign subsidiaries created pursuant to the Existing Credit
Facilities and the Company’s existing 7.66% Series 2004-1 Tranche A Notes due 2011, 8.14%
Series ▇▇▇▇-▇ ▇▇▇▇▇▇▇ ▇ Notes due 2014 and 8.46% Series 2004-1 Tranche C Notes due 2016
(collectively, the “2004 Existing Senior Notes” and, together with the 2007 Existing Senior
Notes, the “Existing Senior Notes”)) except such as are described in the Pricing Prospectus
or such as do not materially affect the value of such property and do not materially
interfere with the use made and proposed to be made of such property by the Company and its
Subsidiaries; and any real property and buildings held under lease by the Company and its
Subsidiaries are held by them under valid, subsisting and enforceable leases with such
exceptions as are not material to, and do not materially interfere with the use made and
proposed to be made of such property and buildings by, the Company and its Subsidiaries;
(h) The Company has been duly incorporated or otherwise formed and is validly
existing as a corporation, limited liability company, partnership or other legal entity in
good standing under the laws of its jurisdiction of incorporation or formation and each of
them has the power and authority (corporate and other) to own, lease and operate its
properties and to conduct its business as described in
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the Pricing Prospectus. The Company 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, or is subject to no material liability or disability by reason of the
failure to be so qualified in any such jurisdiction, except as would not be reasonably
expected to have a material adverse effect on the business, condition (financial or
otherwise), results of operations, properties or prospects of the Company and its
subsidiaries, taken as a whole (a “Material Adverse Effect”); and each Subsidiary of the
Company is listed on Schedule IV hereto, has been duly incorporated or organized and is
validly existing as a corporation or limited liability company, as the case may be, in good
standing under the laws of its jurisdiction of incorporation or formation, as the case may
be; and each of the subsidiaries of the Company, other than the Subsidiaries, has been duly
incorporated or organized and is validly existing as a corporation or limited liability
company, as the case may be, in good standing under the laws of its jurisdiction of
incorporation or formation, as the case may be, except where the failure to be in good
standing would not have a Material Adverse Effect;
(i) The Company has all requisite corporate power and authority to execute
and deliver this Agreement and the other Note Documents to which it is a party, and to
perform its obligations hereunder and thereunder and to consummate the transactions herein
and therein contemplated. This Agreement has been duly authorized, executed and delivered
by the Company;
(j) The Company has an authorized capitalization as set forth in the Pricing
Prospectus and all of the issued shares of capital stock of the Company have been duly and
validly authorized and issued and are fully paid and non-assessable; the shares of Stock
initially issuable upon conversion of the Securities have been duly and validly authorized
and reserved for issuance and, when issued and delivered in accordance with the provisions
of the Securities and the Indenture referred to below, will be duly and validly issued,
fully paid and non-assessable and will conform to the description of the Stock contained in
the Pricing Disclosure Package and the Prospectus; and all of the issued shares of capital
stock of each subsidiary of the Company have been duly and validly authorized and issued,
are fully paid and non-assessable and (except for directors’ qualifying shares and except as
otherwise set forth in the Pricing Prospectus) are owned directly or indirectly by the
Company, free and clear of all liens, encumbrances, equities or claims (other than pledges
of shares of certain of the Company’s domestic and foreign subsidiaries created pursuant to
the Existing Credit Facilities and the Existing Senior Notes);
(k) The Securities have been duly authorized and, when issued and delivered
by the Company pursuant to this Agreement and authenticated in the manner provided in the
Indenture and delivered against payment of the purchase price therefor, will have been duly
executed, authenticated, issued and delivered and will constitute valid and legally binding
obligations of the Company entitled to the benefits provided by the Indenture, which is
substantially in the form filed as
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an exhibit to the Registration Statement; the Indenture has been duly authorized and
duly qualified under the Trust Indenture Act and, when executed and delivered by the Company
and the Trustee, will constitute a valid and legally binding instrument, enforceable against
the Company in accordance with its terms, subject, in the case of each of the Securities and
the Indenture, as to enforcement, to bankruptcy, insolvency, reorganization and other laws
of general applicability relating to or affecting creditors’ rights and to general equity
principles; the Securities and the Indenture will conform in all material respects to the
descriptions thereof in the Pricing Disclosure Package and the Prospectus; and the Indenture
will conform in all material respects to the requirements of the Trust Indenture Act and the
regulations of the Commission applicable to an indenture that is qualified thereunder;
(l) The issue and sale of the Securities and the compliance by the Company with all of
the provisions of the Note Documents to which each is a party and the consummation of the
transactions herein and therein contemplated will not (i) 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 Subsidiaries is a party or by which the Company or any of its
Subsidiaries is bound or to which any of the property or assets of the Company or any of its
subsidiaries is subject, except where such breach or violation would not, individually or in
the aggregate, result in a Material Adverse Effect or have a material adverse effect on the
ability of the Company and its subsidiaries to perform their obligations in accordance with
the terms of the Note Documents, (ii) result in any violation of the provisions of the
Certificate of Incorporation or By-laws or similar organizational documents of the Company
or any of its Subsidiaries, or (iii) result in any violations of the provisions of 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
where such violation would not, individually or in the aggregate, result in a Material
Adverse Effect or have a material adverse effect on the ability of the Company and its
subsidiaries to perform their obligations in accordance with the terms of the Note
Documents; 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) such as have been obtained under the Act and the Trust
Indenture Act and (ii) such consents, approvals, authorizations, registrations or
qualifications as may be required under state securities or Blue Sky laws in connection with
the purchase and distribution of the Securities by the Underwriters;
(m) Neither the Company nor any of its Subsidiaries is (i) in violation of its
Certificate of Incorporation or By-laws or similar organizational document or (ii) in
default in the performance or observance of any obligation, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement,
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lease or other agreement or instrument to which it is a party or by which it or any of its
properties may be bound, except, in the case of clause (ii), for any such default or
violation that would not, individually or in the aggregate, result in a Material Adverse
Effect;
(n) The statements set forth in the Pricing Prospectus and the Prospectus under the
caption “Description of Notes” and “Description of Capital Stock”, insofar as they purport
to constitute a summary of the terms of the Securities and the Stock, under the caption
“Certain United States Federal Income and Estate Tax Consequences to Non-U.S. Holders” and
under the caption “Underwriting”, insofar as they purport to describe the provisions of the
laws and documents referred to therein, are accurate summaries in all material respects;
(o) Other than as set forth in the Pricing 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, reasonably be expected to result in a Material Adverse Effect; and, other
than as set forth in the Pricing Prospectus, to the Company’s knowledge, no such proceedings
are threatened by governmental authorities or others;
(p) The Company is not and, after giving effect to the offering and sale of the
Securities and the application of the proceeds thereof, will not be an “investment company,”
as such term is defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”);
(q) (A) (i) At the time of filing the Registration Statement, (ii) 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 (iii) at the time the
Company or any person acting on its behalf (within the meaning, for this clause only, of
Rule 163(c) under the Act) made any offer relating to the Securities in reliance on the
exemption of Rule 163 under the Act, the Company was a “well-known seasoned issuer” as
defined in Rule 405 under the Act; and (B) 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) under the Act) of the Securities, the Company
was not an “ineligible issuer” as defined in Rule 405 under the Act;
(r) PricewaterhouseCoopers LLP, who has audited certain financial statements of the
Company and its subsidiaries, and has audited the Company’s internal control over financial
reporting and management’s assessment thereof are independent public accountants as required
by the Act and the rules and regulations of the Commission thereunder;
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(s) The Company maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) under the Exchange Act) that complies with the
requirements of the Exchange Act and has been designed by the Company’s principal executive
officer and principal financial officer, or under their supervision, to provide reasonable
assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting
principles. The Company’s internal control over financial reporting is effective and the
Company is not aware of any material weaknesses in its internal control over financial
reporting;
(t) Since the date of the latest audited financial statements included or incorporated
by reference in the Pricing Prospectus, there has been no change in the Company’s internal
control over financial reporting that has materially affected, or is reasonably likely to
materially affect, the Company’s internal control over financial reporting;
(u) The Company maintains disclosure controls and procedures (as such term is defined
in Rule 13a-15(e) under the Exchange Act) that comply with the requirements of the Exchange
Act; such disclosure controls and procedures have been designed to ensure that material
information relating to the Company and its subsidiaries is made known to the Company’s
principal executive officer and principal financial officer by others within those entities;
and such disclosure controls and procedures are effective;
(v) The financial statements of the Company, including the notes thereto, and
any supporting schedules included in the Pricing Prospectus and Prospectus present fairly,
in all material respects, the consolidated financial position of the Company and its
consolidated subsidiaries as of the dates indicated and the cash flows and results of
operations for the periods specified by the Company and its consolidated subsidiaries; such
financial statements have been prepared in all material respects in conformity with United
States generally accepted accounting principles applied on a consistent basis throughout the
periods involved; and any supporting schedules included in the Pricing Prospectus and the
Prospectus present fairly, in all material respects, the information required to be stated
therein;
(w) Except as would not, individually or in the aggregate, result in a
Material Adverse Effect or except as disclosed in the Pricing Prospectus and the Prospectus:
(i) neither the Company nor any of its subsidiaries is, to the Company’s knowledge, or has
been, in violation of any U.S. federal, state, local or foreign law (including common law),
regulation, rule, requirement, decision or order relating to pollution or protection of
worker health, the environment (including, without limitation, ambient air, surface water,
groundwater, land surface or subsurface strata), natural resources, or wildlife, including,
without limitation, laws and regulations relating to emissions, discharges, releases or
threatened releases of pollutants, contaminants, wastes, toxic substances,
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hazardous substances, petroleum and petroleum products (collectively, “Materials of
Environmental Concern”), or otherwise relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport, or handling of, or exposure to, Materials of
Environmental Concern (collectively, “Environmental Laws”), which violation includes,
without limitation, noncompliance with any permits or other governmental authorizations
required for the operation of the business of the Company or its subsidiaries under
applicable Environmental Laws, nor has the Company or any of its subsidiaries received any
written communication, whether from a governmental authority, citizens group, employee or
otherwise, that alleges that the Company or any of its subsidiaries is in violation of any
Environmental Law, (ii) there is no claim or action with respect to which the Company or any
of its subsidiaries has received written notice, and no written notice by any person or
entity alleging potential liability for investigatory costs, cleanup costs, governmental
response costs, natural resources damages, property damages, personal injuries, attorneys’
fees or penalties arising out of, based on or resulting from the presence, or release into
the environment, of any Material of Environmental Concern at any location owned, leased or
operated by the Company or any of its subsidiaries, now or in the past (collectively,
“Environmental Claims”) pending or, to the knowledge of the Company, threatened in writing
against the Company or any of its subsidiaries or any person or entity whose liability for
any Environmental Claim the Company or any of its subsidiaries has retained or assumed
either contractually or by operation of law and (iii) to the knowledge of the Company, there
are no past or present actions, activities, circumstances, conditions, events or incidents,
including, without limitation, the release, emission, discharge, presence or disposal of any
Material of Environmental Concern, that would be reasonably expected to result in a
violation of any Environmental Law or form the basis of a potential Environmental Claim
against the Company or any of its subsidiaries or any person or entity whose liability for
any Environmental Claim the Company or any of its subsidiaries has retained or assumed
either contractually or by operation of law;
(x) The Company and each of its Subsidiaries own, are licensed to use, or
possess all intellectual property and proprietary rights, including, without limitation,
trademarks, trademark licenses, service marks, trade names, patents, patent licenses,
copyrights, copyright licenses, works of authorship, all applications and registrations for
the foregoing, approvals, trade secrets, domain names, technology, know-how and processes
and all other similar rights (collectively, the “Intellectual Property Rights”) necessary to
conduct their respective businesses, free and clear of liens. To the best knowledge of the
Company, (i) no third party is violating or infringing the Intellectual Property Rights of
the Company or any of its Subsidiaries and (ii) the conduct of the business of the Company
and its Subsidiaries does not violate or infringe the Intellectual Property Rights of
others, except as would not reasonably be expected to result in a Material Adverse Effect;
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(y) Except as would not result, individually or in the aggregate, in a
Material Adverse Effect or except as disclosed in the Pricing Prospectus, neither the
Company, nor the Company’s business operations, is in violation of any Health Care Laws. For
purposes of this Agreement, “Health Care Laws” means (i) all federal and state fraud and
abuse laws, including, but not limited to, the federal Anti-Kickback Statute (42 U.S.C.
§1320a-7(b)), the ▇▇▇▇▇ Law (42 U.S.C. §1395nn and §1395(q)), the Anti-Inducement Law (42
U.S.C. § 1320a-7a(a)(5)), the civil False Claims Act (31 ▇.▇.▇. §▇▇▇▇ et seq.), the
administrative False Claims Law (42 U.S.C. § 1320a-7b(a)), the exclusion laws (42 U.S.C. §
1320a-7), the civil monetary penalty laws (42 U.S.C. § 1320a-7a) and the regulations
promulgated pursuant to such statutes, (ii) the Health Insurance Portability and
Accountability Act of 1996 (Pub. L. No. 104-191) and the Health Information Technology for
Economic and Clinical Health Act of 2009, and the regulations promulgated thereunder and
comparable state privacy and security laws, (iii) Medicare (Title XVIII of the Social
Security Act) and the regulations promulgated thereunder, (iv) Medicaid (Title XIX of the
Social Security Act) and the regulations promulgated thereunder, (v) the federal Food, Drug,
and Cosmetic Act (21 U.S.C. § 301 et seq.) and the regulations promulgated pursuant thereto,
(vi) quality, safety and accreditation standards and requirements of all applicable state
laws or regulatory bodies and (vii) any and all other applicable health care laws,
regulations, manual provisions, policies and administrative guidance, each of (i) through
(vii) as may be amended from time to time. Except as disclosed in the Pricing Prospectus,
the Company has not received notice of any claim, action, suit, proceeding, hearing,
enforcement, investigation, arbitration or other action from any governmental authority
alleging that any product, operation or activity is in violation of any applicable Health
Care Law or permit and has no knowledge that any such governmental authority is considering
any such claim, litigation, arbitration, action, suit, investigation or proceeding; and the
Company has not received notice, either verbally or in writing, that any governmental
authority has taken, is taking or intends to take action to limit, suspend, modify or revoke
any permits and has no knowledge that any such governmental authority is considering such
action, except for any of the foregoing that would not reasonably be expected to result in a
Material Adverse Effect;
(z) The Company and each of its Subsidiaries possess such permits, licenses,
franchises, certificates, orders and other approvals or authorizations issued by
governmental or regulatory authorities (“Permits”) as are necessary under applicable law to
conduct their businesses in the manner described in the Pricing Prospectus, except for any
of the foregoing that would not, individually or in the aggregate, result in a Material
Adverse Effect or except as disclosed in the Pricing Prospectus. The Company and its
Subsidiaries have each fulfilled and performed all of their respective obligations with
respect to the Permits, and no event has occurred that allows, or after notice or lapse of
time would allow, revocation or termination thereof or result in any other impairment of the
rights of the holder of any such Permits, except for any of the foregoing that would not,
individually or in the aggregate, result in a Material Adverse Effect. Neither the Company
nor any of its Subsidiaries has received notice of any revocation or
-11-
modification of any such Permits or has any reason to believe that any such Permits
will not be renewed in the ordinary course, except that would not, individually or in the
aggregate, result in a Material Adverse Effect;
(aa) The Company holds, and is operating in material compliance with, such
registrations, licenses, approvals, authorizations and clearances of the United States Food
and Drug Administration (“FDA”) required for the conduct of its business as currently
conducted (collectively, the “FDA Authorizations”), except where the failure to hold or
operate in material compliance with the FDA Authorizations would not result in a Material
Adverse Effect, and all such FDA Authorizations are in full force and effect. The Company
has fulfilled and performed all of its material obligations with respect to the FDA
Authorizations, and no event has occurred which allows, or after notice or lapse of time
would allow, revocation or termination thereof or results in any other material impairment
of the rights of the holder of any FDA Authorization, except where the failure to so fulfill
or perform, or the occurrence of such event, would not result in a Material Adverse Effect.
Except as disclosed in the Pricing Prospectus, the Company has operated and currently is in
compliance in all material respects with applicable statutes and implementing regulations
administered or enforced by the FDA, except where the failure to so comply would not result
in a Material Adverse Effect. Except as disclosed in the Pricing Prospectus, the Company has
not received notice of any pending or threatened claim, suit, proceeding, hearing,
enforcement, audit, investigation, arbitration or other action from the FDA or applicable
foreign regulatory agency alleging that any operation or activity of the Company is in
violation of any applicable law, rule or regulation;
(bb) Except as disclosed in the Pricing Prospectus, since January 1, 2007,
the Company has not had any product or manufacturing site (whether Company-owned or that of
a contract manufacturer for the Company’s products) subject to a governmental authority
(including FDA) shutdown or import or export prohibition, nor received any FDA Form 483 or
other governmental authority notice of inspectional observations, “Warning Letters,”
“untitled letters” or requests or requirements to make changes to the Company’s products
that if not complied with would reasonably be expected to result in a Material Adverse
Effect on the Company, or similar correspondence or notice from the FDA or other
governmental authority in respect of the Company business and alleging or asserting
noncompliance with any applicable law, Permit or such requests or requirements of a
governmental authority, and, to the knowledge of the Company, neither the FDA nor any
governmental authority is considering such action;
(cc) Except as would not result in a Material Adverse Effect, there are no
recalls, field notifications, field corrections, market withdrawals or replacements, safety
alerts or other notice of action relating to an alleged lack of safety, efficacy or
regulatory compliance of the Company’s products, or, to the Company’s knowledge, material
product complaints with respect to the Company’s products, and to the Company’s knowledge,
there are no notices or pending or threatened action by FDA that would be reasonably likely
to result in
-12-
(i) a material recall, field notification, field correction, market withdrawal or
replacement, safety alert or other notice of action relating to an alleged lack of safety,
efficacy, or regulatory compliance of the Company’s products with respect to the Company’s
products, (ii) a material change in labeling of any the Company’s products, or (iii) a
termination or suspension of marketing or testing of any the Company’s products;
(dd) The Company and each of its Subsidiaries have filed all necessary U.S.
federal, state and foreign income and franchise tax returns or have properly requested
extensions thereof, and have paid all taxes required to be paid by any of them and, if due
and payable, any related or similar assessment, fine or penalty levied against any of them
except as may be being contested in good faith and by appropriate proceedings or have been
accrued for on the consolidated financial statements of the Company, except where the
failure to file such tax returns or pay such taxes, assessments, fines and penalties
individually or in the aggregate would not result in a Material Adverse Effect. The Company
has made adequate charges, accruals and reserves in its consolidated financial statements
contained in the Pricing Prospectus in respect of all U.S. federal, state and foreign income
and franchise taxes for all periods as to which the tax liabilities of the Company or any of
its subsidiaries has not been finally determined, except to the extent that the failure to
do so would not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect;
(ee) No labor dispute with the employees of the Company or any of its
subsidiaries exists or, to the Company’s knowledge, is imminent that would result in a
Material Adverse Effect;
(ff) The Company and each of its Subsidiaries are insured by recognized and,
to the Company’s knowledge, financially sound institutions with policies in such amounts and
with such deductibles and covering such risks as are generally deemed reasonably adequate
for the conduct of their respective businesses, including, without limitation, policies
covering real and personal property owned, leased or operated by them against theft, damage,
destruction or acts of vandalism, and all such insurance is in full force and effect.
Neither the Company nor any of its Subsidiaries has any reason to believe that it will not
be able to (i) renew its existing insurance coverage as and when such policies expire or
(ii) obtain comparable coverage from similar institutions as may be reasonably necessary or
appropriate to conduct the business of the Company
and its Subsidiaries as now conducted and at a cost that would not reasonably be
expected to result in a Material Adverse Effect;
(gg) No relationship, direct or indirect, that would be required to be
described pursuant to Item 404 of Regulation S-K under the Act in an annual report on Form
10-K filed by the Company exists between or among the Company or any of its subsidiaries, on
the one hand, and the directors, officers, stockholders, customers or suppliers of the
Company or any of its subsidiaries,
-13-
on the other hand, that has not been described in the Pricing Prospectus and the
Prospectus;
(hh) Each “employee benefit plan” (as defined under Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder
(collectively, “ERISA”)) which is subject to Title IV of ERISA (each, a “Plan”) and is
maintained by the Company or any of its subsidiaries, is in compliance in all material
respects with ERISA to the extent subject thereto. “ERISA Affiliate” means, with respect to
the Company, any member of any group of organizations described in Sections 414(b), (c), (m)
or (o) of the Internal Revenue Code of 1986, as amended, and the regulations and published
interpretations thereunder (the “Code”) of which the Company is a member. Except as would
not, individually or in the aggregate, reasonably be expected to result in a Material
Adverse Effect: (a) no “reportable event” (as defined under Section 4043(c) of ERISA other
than those events for which the 30 day notice period has been waived) has occurred respect
to any Plan which is maintained by the Company or any of its ERISA Affiliates, (b) neither
the Company nor any of its ERISA Affiliates has incurred any unsatisfied liability under (i)
Title IV of ERISA with respect to termination of, or withdrawal from, any Plan or (ii)
Sections 412, or 4972 of the Code and (c) each Plan established or maintained by the Company
that is intended to be qualified under Section 401 of the Code has received a determination
letter from the Internal Revenue Service stating that it is so qualified, and to the
Company’s knowledge nothing has occurred, whether by action or failure to act, which would
cause the loss of such qualification;
(ii) Neither the Company nor any of its subsidiaries is a party to any
contract, agreement or understanding with any person (other than this Agreement) that would
give rise to a valid claim against any of them or the Underwriters for a brokerage
commission, finder’s fee or like payment in connection with the offering and sale of the
Securities;
(jj) There is and has been no failure on the part of the Company or any of
its directors or officers, in their capacities as directors or officers, to comply with any
provision of the ▇▇▇▇▇▇▇▇-▇▇▇▇▇ Act of 2002 and the rules and regulations promulgated in
connection therewith;
(kk) None of the transactions contemplated by this Agreement will violate or
result in a violation of Section 7 of the Exchange Act, or any regulation promulgated
thereunder, including, without limitation, Regulations T, U, and X of the Board of Governors
of the Federal Reserve System;
(ll) Neither the Company nor any of its subsidiaries, nor, to the knowledge
of the Company, any director, officer, agent, employee or other representative acting on
behalf of the Company or any of its subsidiaries, has taken any action in furtherance of an
offer, payment, promise to pay, or authorization or approval of the payment or giving of
money, property, gifts or
-14-
anything else of value, directly or indirectly, to any government official or employee
to influence official action or secure an improper advantage that would constitute a
violation of the Foreign Corrupt Practices Act of 1977;
(mm) The operations of the Company and its subsidiaries are and have been
conducted at all times in compliance with (i) applicable financial recordkeeping and
reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as
amended, except that would not reasonably be expected to result in a Material Adverse
Effect, (ii) the applicable money laundering statutes of jurisdictions where the Company and
its subsidiaries conduct business, (iii) the rules and regulations thereunder and any
related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Money Laundering Laws”) and (iv) 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 with respect to the Money
Laundering Laws is pending or, to the knowledge of the Company, threatened;
(nn) Neither the Company nor any of its subsidiaries nor, to the knowledge of
the Company, any director, officer, agent, employee or affiliate of the Company or any of
its subsidiaries: (i) is currently subject to any U.S. sanctions administered and/or
enforced by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”) or
(ii) appears on the Specially Designated Nationals and Blocked Persons list maintained by
OFAC or the Annex to Executive Order 13224 issued by the President of the United States,
each as amended from time to time. The Company will not directly or indirectly use the
proceeds of the offering contemplated hereby, or lend, contribute or otherwise make
available such proceeds to any subsidiary, joint venture partner or other person or entity,
for the purpose of financing the activities of any person currently subject to any U.S.
trade and economic sanctions administered by OFAC nor provide such proceeds to any
destination, entity or person prohibited from receiving them by the laws or regulations of
the United States or will otherwise fail to comply with those United States laws and
regulations;
(oo) The Company is subject to and in compliance with the reporting
requirements of Section 13 or 15(d) of the Exchange Act;
(pp) Prior to the date hereof, neither the Company nor any of its affiliates
has taken any action which is designed to or which has constituted or which might reasonably
have been expected to cause or result in stabilization or manipulation of the price of any
security of the Company in connection with the offering of the Securities.
2. Subject to the terms and conditions herein set forth, (a) the Company agrees to
issue and sell to each of the Underwriters, and each of the Underwriters agrees, severally and not
jointly, to purchase from the Company, at a purchase price of 97.25% of the principal amount
thereof, the principal amount of Securities set forth
-15-
opposite the name of such Underwriter in Schedule I hereto, and (b) in the event and to the
extent that the Underwriters shall exercise the election to purchase Optional Securities as
provided below, the Company agrees to issue and sell to each of the Underwriters, and each of the
Underwriters agrees, severally and not jointly, to purchase from the Company, at the same purchase
price set forth in clause (a) of this Section 2, that portion of the aggregate principal amount of
the Optional Securities as to which such election shall have been exercised (to be adjusted by you
so as to eliminate fractions of $1,000) determined by multiplying such aggregate principal amount
of Optional Securities by a fraction, the numerator of which is the maximum aggregate principal
amount of Optional Securities which such Underwriter is entitled to purchase as set forth opposite
the name of such Underwriter in Schedule I hereto and the denominator of which is the maximum
aggregate principal amount of Optional Securities which all of the Underwriters are entitled to
purchase hereunder.
The Company hereby grants to the Underwriters the right to purchase at their election up to
$50,000,000 in aggregate principal amount of Optional Securities, at the purchase price set forth
in clause (a) of the first paragraph of this Section 2, for the sole purpose of covering sales of
securities in excess of the aggregate principal amount of Firm Securities. Any such election to
purchase Optional Securities may be exercised by written notice from you to the Company, given
within a period of 13 calendar days after the First Time of Delivery (as defined in Section 4
hereof), setting forth the aggregate principal amount of Optional Securities to be purchased and
the date on which such Optional Securities are to be delivered, as determined by you but in no
event earlier than the First Time of Delivery (as defined in Section 4 hereof) and in no event
later than five Business Days following such written notice.
3. Upon the authorization by you of the release of the Securities, the several
Underwriters propose to offer the Securities for sale upon the terms and conditions set forth in
the Prospectus.
4. (a) The Securities to be purchased by each Underwriter hereunder will be
represented by one or more definitive global Securities in book-entry form which will be deposited
by or on behalf of the Company with The Depository Trust Company (“DTC”) or its designated
custodian. The Company will deliver the Securities to ▇▇▇▇▇▇▇, Sachs & Co., for the account of
each Underwriter, against payment by or on behalf of such Underwriter of the purchase price
therefor by wire transfer in Federal (same day) funds, by causing DTC to credit the Securities to
the account of ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. at DTC. The Company will cause the certificates representing
the Securities to be made available to ▇▇▇▇▇▇▇, Sachs & Co. for checking at least twenty-four hours
prior to the Time of Delivery (as defined below) at the office of ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇ LLP, ▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇-▇▇▇▇ (the “Closing Location”). The time and date of such
delivery and payment shall be, with respect to the Firm Securities, 9:30 a.m., New York City time,
on August 9, 2010, or such other time and date as ▇▇▇▇▇▇▇, Sachs & Co. and the Company may agree
upon in writing, and, with respect to the Optional Securities, 9:30 a.m., New York City time, on
the date specified by ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. in the written notice given by the Underwriters of the
Underwriters’ election to purchase the Optional Securities, or at such other time and
-16-
date as ▇▇▇▇▇▇▇, Sachs & Co. and the Company may agree upon in writing. Such time and date
for delivery of the Firm Securities is herein called the “First Time of Delivery”, any time and
date for delivery of Optional Securities is herein called an “Optional Time of Delivery”, and each
such time and date for delivery of Securities is herein called a “Time of Delivery”.
(b) The documents to be delivered at the Time of Delivery by or on behalf of the
parties hereto pursuant to Section 8 hereof, including the cross-receipt for the Securities and any
additional documents requested by the Underwriters pursuant to Section 8(k) hereof, will be
delivered at such time and date at the Closing Location, and the Securities will be delivered at
DTC or its designated custodian, all at each Time of Delivery. A meeting will be held at the
Closing Location at 5:00 p.m., New York City time, on the New York Business Day next preceding such
Time of Delivery, at which meeting the final drafts of the documents to be delivered pursuant to
the preceding sentence will be available for review by the parties hereto. For the purposes of
this Section 4, “New York Business Day” shall mean each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in New York are generally authorized or
obligated by law or executive order to close.
5. The Company agrees with each of the Underwriters and the Independent Underwriter:
(a) To prepare the Prospectus in a form approved by you and to file such Prospectus
pursuant to Rule 424(b) under the Act not later than the Commission’s close of business on the
second business day following the date of this Agreement; to make no further amendment or any
supplement to the Registration Statement, the Basic Prospectus or the Prospectus prior to the Time
of Delivery which shall be disapproved by you promptly after reasonable notice thereof; to advise
you, promptly after it receives notice thereof, of the time when any amendment to the Registration
Statement has been filed or becomes effective or any amendment or supplement to the Prospectus has
been filed and to furnish you with copies thereof; to prepare a final term sheet, containing solely
a description of the Securities, in a form approved by you and to file such term sheet pursuant to
Rule 433(d) under the Act within the time required by such Rule; to file promptly all other
material required to be filed by the Company with the Commission pursuant to Rule 433(d) under the
Act; to file promptly all reports and any definitive proxy or information statements required to be
filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the
Exchange Act subsequent to the date of the Prospectus and for so long as the delivery of a
prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) is required in
connection with the offering or sale of the Securities; to advise you, promptly after it receives
notice thereof, of the issuance by the Commission of any stop order or of any order preventing or
suspending the use of any Preliminary Prospectus or other prospectus in respect of the Securities,
of any notice of objection of the Commission to the use of the Registration Statement or any
post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act, of the suspension of the
qualification of the Securities or the shares of Stock issuable upon conversion of the Securities
for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for
any such purpose,
-17-
or of any request by the Commission for the amending or supplementing of the Registration
Statement or the Prospectus or for additional information; and, in the event of the issuance of any
stop order or of any order preventing or suspending the use of any Preliminary Prospectus or other
prospectus or suspending any such qualification, to promptly use its best efforts to obtain the
withdrawal of such order; and in the event of any such issuance of a notice of objection, promptly
to take such steps including, without limitation, amending the Registration Statement or filing a
new registration statement, at its own expense, as may be necessary to permit offers and sales of
the Securities by the Underwriters (references herein to the Registration Statement shall include
any such amendment or new registration statement);
(b) If required by Rule 430B(h) under the Act, to prepare a form of prospectus in a
form approved by you and to file such form of prospectus pursuant to Rule 424(b) under the Act not
later than may be required by Rule 424(b) under the Act; and to make no further amendment or
supplement to such form of prospectus which shall be disapproved by you promptly after reasonable
notice thereof;
(c) If by the third anniversary (the “Renewal Deadline”) of the initial effective
date of the Registration Statement, any of the Securities remain unsold by the Underwriters, the
Company will file, if it has not already done so and is eligible to do so, a new automatic shelf
registration statement relating to the Securities, in a form satisfactory to you. If at the
Renewal Deadline the Company is no longer eligible to file an automatic shelf registration
statement, the Company will, if it has not already done so, file a new shelf registration statement
relating to the Securities, in a form satisfactory to you 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 Securities to continue as contemplated in the expired registration statement relating
to the 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;
(d) Promptly from time to time to take such action as you may reasonably request to
qualify the Securities and the shares of Stock issuable upon conversion of the Securities for
offering and sale under the securities laws of such jurisdictions as you may reasonably request and
to comply with such laws so as to permit the continuance of sales and dealings therein in such
jurisdictions for as long as may be necessary to complete the distribution of the Securities,
provided that in connection therewith the Company shall not be required to qualify as a foreign
corporation or to file a general consent to service of process in any jurisdiction or to subject
itself to taxation in any such jurisdiction where it is not then so subject;
(e) Prior to 10:00 a.m., New York City time, on the New York Business Day next
succeeding the date of this Agreement and from time to time, to furnish the Underwriters with
written and electronic copies of the Prospectus in New York City in such quantities as you may
reasonably request, and, if the delivery of a prospectus (or in lieu thereof, the notice referred
to in Rule 173(a) under the Act) is required at any time prior to the expiration of nine months
after the time of issue of the Prospectus in
-18-
connection with the offering or sale of the Securities and the shares of Stock issuable upon
conversion of the Securities and if at such time any event shall have occurred as a result of which
the Prospectus as then amended or supplemented would include an 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 when such Prospectus (or in lieu thereof, the
notice referred to in Rule 173(a) under the Act) is delivered, not misleading, or, if for any other
reason it shall be necessary during such same period to amend or supplement the Prospectus or to
file under the Exchange Act any document incorporated by reference in the Prospectus in order to
comply with the Act, the Exchange Act or the Trust Indenture Act, to notify you and upon your
request to file such document and to prepare and furnish without charge to each Underwriter and to
any dealer in securities as many written and electronic copies as you may from time to time
reasonably request of an amended Prospectus or a supplement to the Prospectus which will correct
such statement or omission or effect such compliance; and in case any Underwriter is required to
deliver a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) under the Act) in
connection with sales of any of the Securities and the shares of Stock issuable upon conversion of
the Securities at any time nine months or more after the time of issue of the Prospectus, upon your
request but at the expense of such Underwriter, to prepare and deliver to such Underwriter as many
written and electronic copies as you may request of an amended or supplemented Prospectus complying
with Section 10(a)(3) of the Act;
(f) To make generally available to its securityholders as soon as practicable, but
in any event not later than sixteen months after the effective date of the Registration Statement
(as defined in Rule 158(c) under the Act), an earnings statement of the Company and its
subsidiaries (which need not be audited) complying with Section 11(a) of the Act and the rules and
regulations of the Commission thereunder (including, at the option of the Company, Rule 158);
(g) During the period beginning from the date hereof and continuing to, and
including, the date that is 90 days after the date of the Prospectus, not to offer, sell, contract
to sell, pledge, grant any option to purchase, make any short sale or otherwise dispose, except as
provided hereunder of, any securities of the Company that are substantially similar to the
Securities or the Stock, including but not limited to any options or warrants to purchase shares of
Stock or any securities that are convertible into or exchangeable for, or that represent the right
to receive, Stock or any such substantially similar securities (other than (i) pursuant to the
Securities, (ii) pursuant to the warrant transactions under the Hedge Transactions, (iii) upon the
exercise of outstanding options or vesting of outstanding restricted stock awards pursuant to our
existing employee or director stock compensation option or stock incentive plans, (iv) the shares
of Stock to be distributed from the Company’s existing deferred compensation plan, (v) the shares
of Stock the Company is obligated to issue to its existing 401K retirement savings plans, (vi) a
proposed acquisition or an acquisition pursuant to which the Company agrees to issue or issues
shares of Stock; provided that the aggregate market value of such shares of Stock may not exceed
10% of the market capitalization of the Company as of the date hereof and the recipients of such
shares of Stock agree to be bound by the restrictions contained in this paragraph for 90 days after
-19-
the date hereof, and (vi) upon the conversion, exchange or exercise of convertible,
exchangeable or exercise of securities outstanding as of the date of this Agreement), without the
prior written consent of ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co.;
(h) To pay the required Commission filing fees relating to the Securities within the
time required by Rule 456(b)(1) under the Act without regard to the proviso therein and otherwise
in accordance with Rules 456(b) and 457(r) under the Act;
(i) To use the net proceeds received by it from the sale of the Securities pursuant
to this Agreement in the manner specified in the Pricing Prospectus under the caption “Use of
Proceeds;”
(j) To reserve and keep available at all times, free of preemptive rights, shares of
Stock for the purpose of enabling the Company to satisfy any obligation to issue shares of its
Stock upon conversion of the Securities; and
(k) To list, subject to notice of issuance, the shares of Stock issuable upon
conversion of the Securities on the New York Stock Exchange (the “Exchange”).
6.
(a) (i) The Company represents and agrees that, other than the final term sheet in the
form attached as Schedule III hereto prepared and filed pursuant to Section 5(a) hereof, without
the prior consent of ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co., the Company has not made and will not make any offer
relating to the Securities that would constitute a “free writing prospectus” as defined in Rule 405
under the Act;
(ii) each Underwriter represents and agrees that, without the prior consent of the Company and
▇▇▇▇▇▇▇, Sachs & Co., other than one or more term sheets relating to the Securities containing
customary information and conveyed to purchasers of Securities, it has not made and will not make
any offer relating to the Securities that would constitute a free writing prospectus; and
(iii) any such free writing prospectus the use of which has been consented to by the Company
and ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. (including the final term sheet in the form attached as Schedule III
hereto prepared and filed pursuant to Section 5(a) hereof) is listed on Schedule II(a) hereto (or,
in the case of the final term sheet, on Schedule III hereto);
(b) The Company has complied and will comply with the requirements of Rule 433 under
the Act applicable to any Issuer Free Writing Prospectus, including timely filing with the
Commission or retention where required and legending; and
(c) The Company agrees that if at any time following issuance of an Issuer Free
Writing Prospectus any event occurred or occurs as a result of which such Issuer Free Writing
Prospectus would conflict with the information in the Registration Statement, the Pricing
Prospectus or the Prospectus or would include an untrue statement of a material fact or omit to
state any material fact necessary in order to make
-20-
the statements therein, in the light of the circumstances then prevailing, not misleading, the
Company will give prompt notice thereof to ▇▇▇▇▇▇▇, Sachs & Co. and, if requested by ▇▇▇▇▇▇▇, ▇▇▇▇▇
& Co., will prepare and furnish without charge to each Underwriter an Issuer Free Writing
Prospectus or other document which will correct such conflict, statement or omission; provided,
however, that this representation and warranty shall not apply to any statements or omissions in an
Issuer Free Writing Prospectus made in reliance upon and in conformity with information furnished
in writing to the Company by an Underwriter through ▇▇▇▇▇▇▇, Sachs & Co. expressly for use therein.
7. The Company covenants and agrees with the several Underwriters and Independent
Underwriter that the Company will pay or cause to be paid the following: (i) the fees,
disbursements and expenses of the Company’s counsel and accountants in connection with the
registration of the Securities and the shares of Stock issuable upon conversion of the Securities
under the Act and all other expenses in connection with the preparation, printing, reproduction and
filing of the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, any Issuer
Free Writing Prospectus and the Prospectus and amendments and supplements thereto and the mailing
and delivering of copies thereof to the Underwriters and dealers; (ii) the cost of printing or
producing any Agreement among Underwriters (including any agreement with the Independent
Underwriter), this Agreement, the Indenture, the Blue Sky Memorandum, closing documents (including
any compilations thereof) and any other documents in connection with the offering, purchase, sale
and delivery of the Securities; (iii) all expenses in connection with the qualification of the
Securities and the shares of Stock issuable upon conversion of the Securities for offering and sale
under state securities laws as provided in Section 5(d) hereof, including the reasonable fees and
disbursements of counsel for the Underwriters and the Independent Underwriter in connection with
such qualification and in connection with the Blue Sky survey; (iv) any fees charged by securities
rating services for rating the Securities; (v) the filing fees incident to, and the fees and
disbursements of counsel for the Underwriters in connection with, any required review by FINRA of
the terms of the sale of the Securities; (vi) all fees and expenses in connection with listing the
shares of Stock issuable upon conversion of the Securities on the Exchange; (vii) the cost of
preparing the Securities; (viii) the fees and expenses of the Trustee and any agent of the Trustee
and the fees and disbursements of counsel for the Trustee in connection with the Indenture and the
Securities; and (ix) all other reasonable costs and expenses incident to the performance of its
obligations hereunder which are not otherwise specifically provided for in this Section. It is
understood, however, that, except as provided in this Section, and Sections 9 and 12 hereof, the
Underwriters and the Independent Underwriter will pay all of their own costs and expenses,
including the fees of their counsel, transfer taxes on resale of any of the Securities by them, and
any advertising expenses connected with any offers they may make.
8. The obligations of the Underwriters hereunder shall be subject, in their
discretion, to the condition that all representations and warranties and other statements of the
Company herein are, at and as of the Time of Delivery, true and correct, the condition that the
Company shall have performed all of its obligations hereunder theretofore to be performed, and the
following additional conditions:
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(a) The Prospectus shall have been filed with the Commission pursuant to Rule 424(b)
under the Act within the applicable time period prescribed for such filing by the rules and
regulations under the Act and in accordance with Section 5(a) hereof; the final term sheet
contemplated by Section 5(a) hereof, and any other material required to be filed by the Company
pursuant to Rule 433(d) under the Act, shall have been filed with the Commission within the
applicable time periods prescribed for such filings by Rule 433; no stop order suspending the
effectiveness of the Registration Statement or any part thereof shall have been issued and no
proceeding for that purpose shall have been initiated or threatened by the Commission and no notice
of objection of the Commission to the use of the Registration Statement or any post-effective
amendment thereto pursuant to Rule 401(g)(2) under the Act shall have been received; no stop order
suspending or preventing the use of the Prospectus or any Issuer Free Writing Prospectus shall have
been initiated or threatened by the Commission; and all requests for additional information on the
part of the Commission shall have been complied with to your reasonable satisfaction;
(b) ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇ LLP, counsel for the Underwriters, shall have furnished to you
such written opinion or opinions, dated each Time of Delivery, in form and substance reasonably
satisfactory to the Underwriters, and such counsel shall have received such papers and information
as they may reasonably request to enable them to pass upon such matters;
(c) ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ LLP, counsel for the Company, shall have furnished to
you their written opinion and negative assurance statement substantially in the form attached as
Annex II(a) hereto, dated each Time of Delivery;
(d) ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, as general counsel to the Company, shall have furnished to
you his written opinion substantially in the form attached as Annex II(b) hereto, dated each Time
of Delivery;
(e) ▇▇▇▇▇, ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇ PC, as special healthcare regulatory counsel to the
Company, shall have furnished to you their written opinion substantially in the form attached as
Annex II(c) hereto, dated each Time of Delivery;
(f) On the date of the Prospectus at a time prior to the execution of this
Agreement, at 9:30 a.m., New York City time, on the effective date of any post effective amendment
to the Registration Statement filed subsequent to the date of this Agreement and also at each Time
of Delivery, PricewaterhouseCoopers LLP shall have furnished to you a letter or letters, dated the
respective dates of delivery thereof, in form and substance satisfactory to you, to the effect set
forth in Annex I hereto;
(g) (i) Neither the Company nor any of its subsidiaries shall have sustained since
the date of the latest audited financial statements included or incorporated by reference in the
Pricing 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, otherwise than as set forth or contemplated in the Pricing Prospectus, and
(ii) since the
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respective dates as of which information is given in the Pricing Prospectus there shall not
have been any change in the capital stock or long term debt of the Company or any of its
subsidiaries (other than changes due to (i) issuances of the Company’s common stock under the
Company’s employee benefit plans and the Company’s dividend reinvestment plan, (ii) any shares
purchased under the Company’s existing stock repurchase program or (iii) any scheduled repayment of
the Company’s existing debt) 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, otherwise than as set forth or contemplated in
the Pricing Prospectus, the effect of which, in any such case described in clause (i) or (ii), is
in the judgment of ▇▇▇▇▇▇▇, Sachs & Co. so material and adverse as to make it impracticable or
inadvisable to proceed with the public offering or the delivery of the Securities on the terms and
in the manner contemplated in the Prospectus;
(h) On or after the Applicable Time (i) no downgrading shall have occurred in the
rating accorded the Company’s debt securities by any “nationally recognized statistical rating
organization”, as that term is defined by the Commission for purposes of Rule 436(g)(2) under the
Act, and (ii) no such organization shall have publicly announced that it has under surveillance or
review, with possible negative implications, its rating of any of the Company’s debt securities;
(i) On or after the Applicable Time there shall not have occurred any of the
following: (i) a suspension or material limitation in trading in securities generally on the
Exchange; (ii) a suspension or material limitation in trading in the Company’s securities on the
Exchange; (iii) a general moratorium on commercial banking activities declared by either Federal or
New York, State authorities or a material disruption in commercial banking or securities settlement
or clearance services in the United States; (iv) the outbreak or escalation of hostilities
involving the United States or the declaration by the United States of a national emergency or war
or (v) the occurrence of any other calamity or crisis or any change in financial, political or
economic conditions in the United States or elsewhere, if the effect of any such event specified in
clause (iv) or (v) in the judgment of ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. makes it impracticable or inadvisable to
proceed with the public offering or the delivery of the Securities on the terms and in the manner
contemplated in the Prospectus;
(j) The shares of Stock issuable upon conversion of the Securities shall have been
duly listed, subject to notice of issuance, on the Exchange;
(k) The Company shall have furnished or caused to be furnished to you at the Time of Delivery
certificates of officers of the Company satisfactory to you as to the accuracy of the
representations and warranties of the Company herein at and as of such time, as to the performance
by the Company of all of its obligations hereunder to be performed at or prior to such time, as to
the matters set forth in subsections (a), (f) and (g) of this Section and as to such other matters
as you may reasonably request; and
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(l) The Company shall have obtained and delivered to the Underwriters executed copies of an
agreement from all holders of the Company listed in Schedule V hereto, substantially to the effect
set forth in Annex III hereof.
9. (a) The Company will indemnify and hold harmless each Underwriter against any
losses, claims, damages or liabilities, joint or several, to which such Underwriter may become
subject, under the Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in the Registration Statement, the Basic Prospectus, any
Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement
thereto, any Issuer Free Writing Prospectus or any “issuer information” filed or required to be
filed pursuant to Rule 433(d) under the Act, or arise out of or are based upon the omission or
alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and will reimburse each Underwriter for any legal or
other expenses reasonably incurred by such Underwriter in connection with investigating or
defending any such action or claim as such expenses are incurred; provided, however, that none of
the Company shall be liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in the Registration Statement, the Basic Prospectus, any
Preliminary Prospectus, the Pricing Prospectus or the Prospectus, or any amendment or supplement
thereto, or any Issuer Free Writing Prospectus, in reliance upon and in conformity with written
information furnished to the Company by any Underwriter through ▇▇▇▇▇▇▇, Sachs & Co. expressly for
use therein.
(b) Each Underwriter will indemnify and hold harmless the Company against any
losses, claims, damages or liabilities to which the Company may become subject, under the Act or
otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon an untrue statement or alleged untrue statement of a material fact
contained in the Registration Statement, the Basic Prospectus, any Preliminary Prospectus, the
Pricing Prospectus or the Prospectus, or any amendment or supplement thereto, or any Issuer Free
Writing Prospectus, or arise out of or are based upon the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading, in each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in the Registration Statement,
the Basic Prospectus, any Preliminary Prospectus, the Pricing Prospectus or the Prospectus or any
such amendment or supplement thereto, or any Issuer Free Writing Prospectus, in reliance upon and
in conformity with written information furnished to the Company by such Underwriter through
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. expressly for use therein; and will reimburse the Company for any legal or
other expenses reasonably incurred by the Company in connection with investigating or defending any
such action or claim as such expenses are incurred.
(c) The Company will indemnify and hold harmless ▇▇▇▇▇▇▇, Sachs & Co., in its
capacity as Independent Underwriter, against any losses, claims, damages or
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liabilities, joint or several, to which the Independent Underwriter may become subject, under
the Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a
material fact contained in any Preliminary Prospectus, the Registration Statement or the
Prospectus, or any amendment or supplement thereto, (ii) the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein
not misleading or (iii) any act or omission to act or any alleged act or omission to act by
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. as Independent Underwriter in connection with any transaction contemplated by
this Agreement or undertaken in preparing for the purchase, sale and delivery of the Shares, except
as to this clause (iii) to the extent that any such loss, claim, damage or liability results from
the gross negligence or bad faith of ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. in performing the services as Independent
Underwriter, and will reimburse the Independent Underwriter for any legal or other expenses
reasonably incurred by the Independent Underwriter in connection with investigating or defending
any such action or claim as such expenses are incurred.
(d) Promptly after receipt by an indemnified party under subsection (a), (b) or (c)
above of notice of the commencement of any action, such indemnified party shall, if a claim in
respect thereof is to be made against the indemnifying party under such subsection, notify the
indemnifying party in writing of the commencement thereof; but the omission so to notify the
indemnifying party shall not relieve it from any liability which it may have to any indemnified
party (except to the extent that such failure to notify results in any material prejudice against
the indemnifying party with respect to such action) otherwise than under such subsection. In case
any such action shall be brought against any indemnified party and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to participate therein
and, to the extent that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the indemnifying party),
and, after notice from the indemnifying party to such indemnified party of its election so to
assume the defense thereof, the indemnifying party shall not be liable to such indemnified party
under such subsection for any legal expenses of other counsel or any other expenses, in each case
subsequently incurred by such indemnified party, in connection with the defense thereof other than
reasonable costs of investigation; provided, that in case any such action shall be brought against
any indemnified party and such indemnifying party notifies such indemnified party of its election
so to assume the defense thereof, any indemnified party shall have the right to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of such indemnified
party unless (i) the indemnifying party and the indemnified party shall have mutually agreed to the
contrary; (ii) the indemnifying party has failed within a reasonable time to retain counsel
satisfactory to the indemnified party; (iii) the indemnified party shall have reasonably
concluded that there may be legal defenses available to it that are different from or in addition
to those available to the indemnifying party; or (iv) the named parties in any such action
(including any impleaded parties) include both the indemnifying party and the indemnified party and
representation of both parties by the same counsel would be inappropriate due to actual or
potential differing
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interests between them. No indemnifying party shall, without the written consent of the
indemnified party, effect the settlement or compromise of, or consent to the entry of any judgment
with respect to, any pending or threatened action or claim in respect of which indemnification or
contribution may be sought hereunder (whether or not the indemnified party is an actual or
potential party to such action or claim) unless such settlement, compromise or judgment (i)
includes an unconditional release of the indemnified party from all liability arising out of such
action or claim and (ii) does not include a statement as to or an admission of fault, culpability
or a failure to act, by or on behalf of any indemnified party.
(e) If the indemnification provided for in this Section 9 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a), (b) or (c) above in
respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to
therein, then each indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect
thereof) in such proportion as is appropriate to reflect the relative benefits received by the
Company on the one hand and the Underwriters or Independent Underwriter, as applicable, on the
other from the offering of the Securities. If, however, the allocation provided by the immediately
preceding sentence is not permitted by applicable law or if the indemnified party failed to give
the notice required under subsection (d) above, then each indemnifying party shall contribute to
such amount paid or payable by such indemnified party in such proportion as is appropriate to
reflect not only such relative benefits but also the relative fault of the Company on the one hand
and the Underwriters or Independent Underwriter, as applicable, on the other in connection with the
statements or omissions which resulted in such losses, claims, damages or liabilities (or actions
in respect thereof), as well as any other relevant equitable considerations. The relative benefits
received by the Company on the one hand and the Underwriters or the Independent Underwriter, as
applicable, on the other shall be deemed to be in the same proportion as the total net proceeds
from the offering (before deducting expenses) received by the Company bear to the total
underwriting discounts and commissions received by the Underwriters or the Independent Underwriter,
as applicable, in each case as set forth in the table on the cover page of the Prospectus. The
relative fault shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Company on the one hand or the Underwriters on the
other and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission. The Company, the Underwriters and the Independent
Underwriter agree that it would not be just and equitable if contribution pursuant to this
subsection (e) were determined by pro rata allocation (even if the Underwriters were treated as one
entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to above in this subsection (e). The amount paid or payable by
an indemnified party as a result of the losses, claims, damages or liabilities (or actions in
respect thereof) referred to above in this subsection (e) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim. Notwithstanding the provisions of this subsection (e), no
Underwriter shall be required to
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contribute any amount in excess of the amount by which the total price at which the Securities
underwritten by it and distributed to the public were offered to the public exceeds the amount of
any damages which such Underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent misrepresentation. The
Underwriters’ obligations in this subsection (e) to contribute are several in proportion to their
respective underwriting obligations and not joint.
(f) The obligations of the Company under this Section 9 shall be in addition to any
liability which the Company may otherwise have and shall extend, upon the same terms and
conditions, to each person, if any, who controls any Underwriter or Independent Underwriter within
the meaning of the Act and each broker-dealer affiliate of any Underwriter; and the obligations of
the Underwriters or Independent Underwriter under this Section 9 shall be in addition to any
liability which the respective Underwriters or Independent Underwriter may otherwise have and shall
extend, upon the same terms and conditions, to each officer and director of the Company (including
any person who, with his or her consent, is named in the Registration Statement as about to become
a director of the Company) and to each person, if any, who controls the Company within the meaning
of the Act.
10. (a) If any Underwriter shall default in its obligation to purchase the
Securities which it has agreed to purchase hereunder, you may in your discretion arrange for you or
another party or other parties to purchase such Securities on the terms contained herein. If
within thirty six hours after such default by any Underwriter you do not arrange for the purchase
of such Securities, then the Company shall be entitled to a further period of thirty six hours
within which to procure another party or other parties satisfactory to you to purchase such
Securities on such terms. In the event that, within the respective prescribed periods, you notify
the Company that you have so arranged for the purchase of such Securities, or the Company notifies
you that it has so arranged for the purchase of such Securities, you or the Company shall have the
right to postpone the Time of Delivery for a period of not more than seven days, in order to effect
whatever changes may thereby be made necessary in the Registration Statement or the Prospectus, or
in any other documents or arrangements, and the Company agrees to file promptly any amendments or
supplements to the Registration Statement or the Prospectus which in your opinion may thereby be
made necessary. The term “Underwriter” as used in this Agreement shall include any person
substituted under this Section with like effect as if such person had originally been a party to
this Agreement with respect to such Securities.
(b) If, after giving effect to any arrangements for the purchase of the Securities
of a defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a)
above, the aggregate principal amount of such Securities which remains unpurchased does not exceed
one eleventh of the aggregate principal amount of all the Securities, then the Company shall have
the right to require each non-defaulting Underwriter to purchase the principal amount of Securities
which such
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Underwriter agreed to purchase hereunder and, in addition, to require each non-defaulting
Underwriter to purchase its pro rata share (based on the principal amount of Securities which such
Underwriter agreed to purchase hereunder) of the Securities of such defaulting Underwriter or
Underwriters for which such arrangements have not been made; but nothing herein shall relieve a
defaulting Underwriter from liability for its default.
(c) If, after giving effect to any arrangements for the purchase of the Securities
of a defaulting Underwriter or Underwriters by you and the Company as provided in subsection (a)
above, the aggregate principal amount of Securities which remains unpurchased exceeds one eleventh
of the aggregate principal amount of all the Securities, or if the Company shall not exercise the
right described in subsection (b) above to require non-defaulting Underwriters to purchase
Securities of a defaulting Underwriter or Underwriters, then this Agreement shall thereupon
terminate, without liability on the part of any non-defaulting Underwriter or the Company, except
for the expenses to be borne by the Company and the Underwriters as provided in Section 7 hereof
and the indemnity and contribution agreements in Section 9 hereof; but nothing herein shall relieve
a defaulting Underwriter from liability for its default.
11. The respective indemnities, agreements, representations, warranties and other
statements of the Company, the several Underwriters and the Independent Underwriter, as set forth
in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement, shall
remain in full force and effect, regardless of any investigation (or any statement as to the
results thereof) made by or on behalf of any Underwriter or the Independent Underwriter or any
controlling person of any Underwriter or the Independent Underwriter, or the Company, or any
officer or director or controlling person of the Company, and shall survive delivery of and payment
for the Securities.
12. If this Agreement shall be terminated pursuant to Section 10 hereof, the Company
shall not then be under any liability to any Underwriter or Independent Underwriter except as
provided in Sections 7 and 9 hereof; but, if for any other reason, the Securities are not delivered
by or on behalf of the Company as provided herein, the Company will reimburse the Underwriters and
the Independent Underwriter, through you, for all out of pocket expenses approved in writing by
you, including fees and disbursements of counsel, reasonably incurred by the Underwriters and
Independent Underwriter in making preparations for the purchase, sale and delivery of the
Securities, but the Company shall not then be under further liability to any Underwriter and
Independent Underwriter except as provided in Sections 7 and 9 hereof.
13. In all dealings hereunder, you shall act on behalf of each of the Underwriters,
and the parties hereto shall be entitled to act and rely upon any statement, request, notice or
agreement on behalf of any Underwriter made or given by you.
All statements, requests, notices and agreements hereunder shall be in writing, and if to the
(i) Underwriters shall be delivered or sent by mail, telex or facsimile
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transmission to ▇▇▇▇▇▇▇, Sachs & Co. at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇-▇▇▇▇,
Attention: Registration Department, (ii) Independent Underwriter, shall be delivered or sent by
mail, telex or facsimile transmission to ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇ ▇▇▇▇▇-▇▇▇▇, Attention: Registration Department and (iii) Company shall be delivered or sent by
mail, telex or facsimile transmission to the address of the Company set forth in the Registration
Statement, Attention: Secretary; provided, however, that any notice to an Underwriter or
Independent Underwriter pursuant to Section 9(d) hereof shall be delivered or sent by mail, telex
or facsimile transmission to such Underwriter or Independent Underwriter at its address set forth
in its Underwriters’ Questionnaire, or telex constituting such Questionnaire, which address will be
supplied to the Company by you upon request. Any such statements, requests, notices or agreements
shall take effect upon receipt thereof.
In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record
information that identifies their respective clients, including the Company, which information may
include the name and address of their respective clients, as well as other information that will
allow the Underwriters to properly identify their respective clients.
14. This Agreement shall be binding upon, and inure solely to the benefit of, the
Underwriters, Independent Underwriter, the Company and, to the extent provided in Sections 9 and 11
hereof, the officers and directors of the Company and each person who controls the Company, any
Underwriter or Independent Underwriter, and their respective heirs, executors, administrators,
successors and assigns, and no other person shall acquire or have any right under or by virtue of
this Agreement. No purchaser of any of the Securities from any Underwriter shall be deemed a
successor or assign by reason merely of such purchase.
15. Time shall be of the essence of this Agreement. As used herein, the term
“business day” shall mean any day when the Commission’s office in Washington, D.C. is open for
business.
16. (a) The Company hereby confirms its engagement of the services of the
Independent Underwriter as, and the Independent Underwriter hereby confirms its agreement with the
Company to render services as, a “qualified independent underwriter” within the meaning of Section
(f)(12) of Rule 2720 with respect to the offering and sale of the Securities.
(b) The Independent Underwriter hereby represents and warrants to, and agrees with, the
Company and the Underwriters that with respect to the offering and sale of the Securities as
described in the Prospectus:
| (i) | The Independent Underwriter constitutes a “qualified independent underwriter” within the meaning of Section (f)(12) of Rule 2720; |
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| (ii) | The Independent Underwriter has participated in the preparation of the Registration Statement and the Prospectus and has exercised the usual standards of “due diligence” in respect thereto; and | ||
| (iii) | The Independent Underwriter has undertaken the legal responsibilities and liabilities of an underwriter under the Act specifically including those inherent in Section 11 thereof. |
(c) The Independent Underwriter hereby agrees with the Company and the Underwriters that, as
part of its services hereunder, in the event of any amendment or supplement to the Prospectus, the
Independent Underwriter will render services as a “qualified independent underwriter” within the
meaning of Section (f)(12) of Rule 2720 with respect to the offering and sale of the Securities as
described in the Prospectus as so amended or supplemented that are substantially the same as those
services being rendered with respect to the offering and sale of the Securities as described in the
Prospectus (including those described in subsection (b) above).
(d) The Company, the Underwriters and the Independent Underwriter agree to comply in all
material respects with all of the requirements of Rule 2720 applicable to them in connection with
the offering and sale of the Securities. The Company agrees to cooperate with the Underwriters and
the Independent Underwriter to enable the Underwriters to comply with Rule 2720 and the Independent
Underwriter to perform the services contemplated by this Agreement.
(e) The Company and the Independent Underwriter agree that the Independent Underwriter will
provide its services in its capacity as Independent Underwriter hereunder without compensation
other than such compensation that the Independent Underwriter may receive as an Underwriter
hereunder.
(f) The Independent Underwriter hereby consents to the references to it as set forth under the
caption “Underwriting” in the Prospectus and in any amendment or supplement thereto made in
accordance with Section 5 hereof.
17. The Company acknowledges and agrees that (i) the purchase and sale of the
Securities pursuant to this Agreement is an arm’s-length commercial transaction between the
Company, on the one hand, and the several Underwriters, on the other, (ii) in connection therewith
and with the process leading to such transaction each Underwriter is acting solely as a principal
and not the agent or fiduciary of the Company, (iii) no Underwriter has assumed an advisory or
fiduciary responsibility in favor of the Company with respect to the offering contemplated hereby
or the process leading thereto (irrespective of whether such Underwriter has advised or is
currently advising the Company on other matters) or any other obligation to the Company except the
obligations expressly set forth in this Agreement and (iv) the Company has consulted its own legal
and financial advisors to the extent it deemed appropriate. The Company agrees that it will not
claim that the Underwriters, or any of them, has rendered advisory services of any nature or
respect, or owes a fiduciary or similar duty to the Company, in connection with such transaction or
the process leading thereto.
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18. This Agreement supersedes all prior agreements and understandings (whether
written or oral) among the Company, the Underwriters and the Independent Underwriter, or any of
them, with respect to the subject matter hereof.
19. THIS AGREEMENT AND ANY MATTERS RELATED TO THIS TRANSACTION SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF
CONFLICT OF LAWS THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAWS OF THE STATE
OF NEW YORK. The Company agrees that any suit or proceeding arising in respect of this agreement
or our engagement will be tried exclusively in the U.S. District Court for the Southern District of
New York or, if that court does not have subject matter jurisdiction, in any state court located in
The City and County of New York and the Company agrees to submit to the jurisdiction of, and to
venue in, such courts.
20. The Company, each of the Underwriters and the Independent Underwriter hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial
by jury in any legal proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby.
21. This Agreement may be executed by any one or more of the parties hereto in any
number of counterparts, each of which shall be deemed to be an original, but all such respective
counterparts shall together constitute one and the same instrument.
22. Notwithstanding anything herein to the contrary, the Company is authorized to
disclose to any persons the U.S. federal and state income tax treatment and tax structure of the
potential transaction and all materials of any kind (including tax opinions and other tax analyses)
provided to the Company relating to that treatment and structure, without the Underwriters or
Independent Underwriter, imposing any limitation of any kind. However, any information relating to
the tax treatment and tax structure shall remain confidential (and the foregoing sentence shall not
apply) to the extent necessary to enable any person to comply with securities laws. For this
purpose, “tax structure” is limited to any facts that may be relevant to that treatment.
-31-
If the foregoing is in accordance with your understanding, please sign and return to us
counterparts hereof, and upon the acceptance hereof by you, on behalf of each of the Underwriters,
and the Independent Underwriter, this letter and such acceptance hereof shall constitute a binding
agreement between each of the Underwriters, the Independent Underwriter and the Company. It is
understood that your acceptance of this letter on behalf of each of the Underwriters is pursuant to
the authority set forth in a form of Agreement among Underwriters, the form of which shall be
submitted to the Company for examination upon request, but without warranty on your part as to the
authority of the signers thereof.
| Very truly yours, Teleflex Incorporated |
||||
| By: | /s/ C. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ | |||
| Name: | C. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ | |||
| Title: | Treasurer | |||
-32-
Accepted as of the date hereof:
| ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. | ||||
By
|
/s/ ▇▇▇▇▇▇▇, Sachs & Co.
|
|||
| ▇▇▇▇▇▇▇▇▇ & Company Inc. | ||||
By
|
/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
|
|||
| Title: Managing Director | ||||
| ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated | ||||
By
|
/s/ ▇▇▇ ▇▇▇▇▇▇▇
|
|||
| Title: Executive Director | ||||
| ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated | ||||
By
|
/s/ ▇▇▇▇▇▇▇▇ ▇▇▇-▇▇▇▇▇
|
|||
| Title: Managing Director | ||||
| ▇.▇. ▇▇▇▇▇▇ Securities Inc. | ||||
By
|
/s/ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇
|
|||
| Title: Managing Director | ||||
-33-
| ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co. as Qualified Independent Underwriter |
||||
By
|
/s/ ▇▇▇▇▇▇▇, Sachs & Co.
|
|||
-34-
SCHEDULE I
| Aggregate | ||||||||
| Principal | ||||||||
| Amount of | ||||||||
| Optional | ||||||||
| Securities to | ||||||||
| be | ||||||||
| Principal | Purchased if | |||||||
| Amount of | Maximum | |||||||
| Securities to be | Option | |||||||
| Underwriter | Purchased | Exercised | ||||||
▇▇▇▇▇▇▇, Sachs & Co. |
$ | 105,000,000 | $ | 15,000,000 | ||||
▇▇▇▇▇▇▇▇▇ & Company Inc. |
$ | 70,000,000 | $ | 10,000,000 | ||||
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated |
$ | 70,000,000 | $ | 10,000,000 | ||||
▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated |
$ | 52,500,000 | $ | 7,500,000 | ||||
▇.▇. ▇▇▇▇▇▇ Securities Inc. |
$ | 52,500,000 | $ | 7,500,000 | ||||
Total |
$ | 350,000,000 | $ | 50,000,000 | ||||
-1-
SCHEDULE II
(a) Issuer Free Writing Prospectuses not included in the Pricing Disclosure Package:
None.
(b) Additional Documents Incorporated by Reference: None.
-2-
SCHEDULE III
Filed pursuant to Rule 433 under the Securities Act of 1933
Issuer Free Writing Prospectus dated August 3, 2010
Relating to Preliminary Prospectus Supplement dated August 2, 2010
Registration Statement No. 333-168464
Issuer Free Writing Prospectus dated August 3, 2010
Relating to Preliminary Prospectus Supplement dated August 2, 2010
Registration Statement No. 333-168464
PRICING TERM SHEET
Dated August 3, 2010 to the
Preliminary Prospectus Supplement Referred to Below
Preliminary Prospectus Supplement Referred to Below
Teleflex Incorporated
Offering of
$350,000,000 principal amount of
3.875% Convertible Senior Subordinated Notes due 2017
$350,000,000 principal amount of
3.875% Convertible Senior Subordinated Notes due 2017
The information in this pricing term sheet relates only to the Convertible Senior Subordinated
Notes offering and should be read together with (i) the preliminary prospectus supplement dated
August 2, 2010 relating to the Convertible Senior Subordinated Notes offering, including the
documents incorporated by reference therein, and (ii) the accompanying prospectus dated August 2,
2010, each filed with the Securities and Exchange Commission (the “SEC”).
Issuer:
|
Teleflex Incorporated, a Delaware corporation. | |
Ticker/Exchange for Common
Stock:
|
TFX/The New York Stock Exchange (“NYSE”) | |
Securities Offered:
|
3.875% Convertible Senior Subordinated Notes due 2017 (the “Notes”). | |
Aggregate Principal Amount
Offered:
|
$350,000,000 aggregate principal amount of Notes. | |
Underwriters’ Option to
Purchase Additional Notes:
|
Up to $50,000,000 principal amount of additional Notes. | |
Net Proceeds of the Offering:
|
Approximately $338.6 million (or approximately $387.2 million if the underwriters exercise their option to purchase additional notes in full), after deducting the underwriters’ discounts and commissions and estimated offering expenses payable by the Issuer. | |
Convertible Note Hedge
Transactions and Warrant
Transactions:
|
Approximately $25.0 million of the net proceeds from the offering will be used to pay the cost of the convertible note hedge transactions (after such cost is partially offset by the proceeds to us from the sale of the warrants). If the underwriters exercise their option to purchase additional notes, the notional size of the convertible note hedge transactions and the warrant transactions will be automatically increased in a manner proportionate to the increase in the principal amount of the notes being sold in the offering. In such event, the Issuer intends to use a proportionate portion of the net proceeds from the sale of such additional Notes (together with proceeds to the Issuer from the increase in the size of the warrant transactions) to fund the additional cost of the |
-1-
| increased convertible note hedge transactions. The strike price of the warrant transactions is $74.648 (subject to customary anti-dilution adjustments), which represents a 40% premium over the Closing Stock Price. | ||
Maturity Date:
|
August 1, 2017, unless earlier converted or repurchased by the Issuer at the holder’s option upon a fundamental change. | |
Annual Interest Rate:
|
3.875% per annum, accruing from the Settlement Date. | |
Interest Payment Dates:
|
Each February 1 and August 1, beginning on February 1, 2011. | |
Interest Payment Record Dates:
|
January 15 and July 15. | |
Public Offering Price:
|
100% | |
Closing Stock Price:
|
$53.32 per share of the Issuer’s common stock on the NYSE as of August 3, 2010. | |
Conversion Premium:
|
Approximately 15% above the Closing Stock Price. | |
Conversion Price:
|
Approximately $61.32 per share of the Issuer’s common stock, subject to adjustment. | |
Conversion Rate:
|
16.3084 shares of the Issuer’s common stock per $1,000 principal amount of the Notes, subject to adjustment. | |
Joint Book-Running Managers:
|
▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co., ▇▇▇▇▇▇▇▇▇ & Company, Inc., ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated, ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇ Incorporated and ▇.▇. ▇▇▇▇▇▇ Securities Inc. | |
Pricing Date:
|
August 3, 2010 | |
Expected Settlement Date:
|
August 9, 2010 | |
CUSIP/ISIN Number:
|
▇▇▇▇▇▇▇▇▇ / US879369AA42 | |
Pro Forma Ratio of Earnings
to Fixed Charges:
|
Assuming the Refinancing Transactions were completed as of January 1, 2009, the pro forma ratio of earnings to fixed charges for the six months ended June 27, 2010 is 3.1. | |
Borrowing Capacity:
|
As of June 27, 2010, on an as adjusted basis after giving effect to the Refinancing Transactions, the Issuer would have approximately $345.4 million of borrowing capacity, consisting of $311.0 million of aggregate borrowing capacity under the Issuer’s revolving credit facility and $34.4 million of borrowing capacity under the Issuer’s accounts receivable securitization facility. | |
Adjustment to Conversion Rate
Upon Conversion Upon a
Make-Whole Fundamental
Change:
|
The following table sets forth the number of additional shares of the Issuer’s common stock by which the conversion rate will be increased per $1,000 principal amount of Convertible Senior Subordinated Notes for conversions in connection with a make-whole fundamental change based on the stock price and effective date of such make-whole fundamental change: |
-2-
| Effective | Stock Price | |||||||||||||||||||||||||||||||||||||||||||||||
| Date | $53.32 | $55.00 | $60.00 | $65.00 | $70.00 | $80.00 | $90.00 | $100.00 | $120.00 | $140.00 | $160.00 | $180.00 | ||||||||||||||||||||||||||||||||||||
August 9, 2010 |
2.4462 | 2.3988 | 1.8223 | 1.4229 | 1.1561 | 0.7968 | 0.5412 | 0.3503 | 0.1375 | 0.0542 | 0.0248 | 0.0075 | ||||||||||||||||||||||||||||||||||||
August 1, 2011 |
2.4462 | 2.2671 | 1.6831 | 1.2788 | 1.0186 | 0.7023 | 0.4689 | 0.2975 | 0.1053 | 0.0337 | 0.0093 | 0.0000 | ||||||||||||||||||||||||||||||||||||
August 1, 2012 |
2.4186 | 2.1625 | 1.5680 | 1.1563 | 0.8944 | 0.6024 | 0.4000 | 0.2501 | 0.0824 | 0.0237 | 0.0042 | 0.0000 | ||||||||||||||||||||||||||||||||||||
August 1, 2013 |
2.3672 | 2.1010 | 1.4760 | 1.0431 | 0.7621 | 0.5051 | 0.3283 | 0.2038 | 0.0610 | 0.0135 | 0.0000 | 0.0000 | ||||||||||||||||||||||||||||||||||||
August 1, 2014 |
2.3591 | 2.0756 | 1.4063 | 0.9483 | 0.6473 | 0.3811 | 0.2430 | 0.1443 | 0.0353 | 0.0012 | 0.0000 | 0.0000 | ||||||||||||||||||||||||||||||||||||
August 1, 2015 |
2.3794 | 2.0643 | 1.3271 | 0.8247 | 0.4993 | 0.2336 | 0.1322 | 0.0626 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | ||||||||||||||||||||||||||||||||||||
August 1, 2016 |
2.4462 | 2.0944 | 1.2521 | 0.7020 | 0.3644 | 0.1198 | 0.0638 | 0.0228 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | ||||||||||||||||||||||||||||||||||||
August 1, 2017 |
2.4462 | 1.8734 | 0.3582 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | 0.0000 | ||||||||||||||||||||||||||||||||||||
The exact stock prices and effective dates may not be set forth in the table above, in
which case:
| • | if the stock price is between two stock prices in the table or the effective date is between two effective dates in the table, the number of additional shares will be determined by a straight-line interpolation between the number of additional shares set forth for the higher and lower stock prices and the earlier and later effective dates, as applicable, based on a 365-day year; | ||
| • | if the stock price is greater than $180.00 per share (subject to adjustment in the same manner as the stock prices set forth in the column headings of the table above), the conversion rate will not be increased; and | ||
| • | if the stock price is less than $53.32 per share (subject to adjustment in the same manner as the stock prices set forth in the column headings of the table above), the conversion rate will not be increased. |
Notwithstanding the foregoing, in no event will the conversion rate exceed 18.7546 shares per
$1,000 principal amount of notes, subject to adjustments in the same manner as the conversion rate
as set forth under “Description of Notes—Conversion Rights—Conversion Rate Adjustments” in the
preliminary prospectus supplement dated August 2, 2010.
Capitalization
The following table sets forth Issuer’s cash and cash equivalents and capitalization as of
June 27, 2010:
| • | on an actual basis; and | ||
| • | on an as adjusted basis to give effect to the Refinancing Transactions. |
This table should be read in conjunction with the information set forth under the “Use of
Proceeds” section and the “Description of Other Indebtedness” section included in the preliminary
prospectus supplement and the Issuer’s consolidated financial statements and the notes thereto
incorporated by reference in the preliminary prospectus supplement and accompanying prospectus.
-3-
| As of June 27, 2010 | ||||||||
| Actual | As Adjusted(1) | |||||||
| (Dollars in thousands) | ||||||||
Cash and cash equivalents |
$ | 287,129 | $ | 171,922 | ||||
Current borrowings: |
||||||||
Accounts receivable securitization facility(2) |
$ | 39,700 | $ | 39,700 | ||||
Other(3) |
$ | 1,764 | $ | 1,764 | ||||
Total current borrowings |
$ | 41,464 | $ | 41,464 | ||||
Long-term debt: |
||||||||
Credit Facilities: |
||||||||
Term loan facility due 2012(4) |
$ | 600,000 | $ | 36,123 | ||||
Term loan facility due 2014(4) |
— | 363,877 | ||||||
Revolving credit facility due 2012 |
— | 843 | ||||||
Revolving credit facility due 2014 |
— | 9,157 | ||||||
Existing 2007 Senior Notes: |
||||||||
7.62% Series A Senior Notes due 2012 |
130,000 | — | ||||||
7.94% Series B Senior Notes due 2014 |
40,000 | — | ||||||
Floating Rate Series C Senior Notes due 2012 |
26,600 | — | ||||||
Existing 2004 Senior Notes(5): |
||||||||
6.66% Series 2004-1 Tranche A Senior Notes due 2011 |
145,000 | 145,000 | ||||||
7.14% Series ▇▇▇▇-▇ ▇▇▇▇▇▇▇ ▇ Senior Notes due 2014 |
96,500 | 96,500 | ||||||
7.46% Series 2004-1 Tranche C Senior Notes due 2016 |
90,100 | 90,100 | ||||||
3.875% Convertible Senior Subordinated Notes due 2017(6) |
— | 350,000 | ||||||
Unamortized discount on 3.875% Convertible Senior Subordinated
Notes due 2017(6) |
— | (73,263 | ) | |||||
Total long-term debt |
$ | 1,128,200 | $ | 1,018,337 | ||||
Total debt |
$ | 1,169,664 | $ | 1,059,801 | ||||
Common shareholders’ equity: |
||||||||
Common shares, $1 par value(7) |
42,191 | 42,191 | ||||||
Additional paid-in capital(6) |
289,319 | 320,047 | ||||||
Retained earnings |
1,502,831 | 1,482,834 | ||||||
Accumulated other comprehensive income |
(121,188 | ) | (121,188 | ) | ||||
Less: Treasury stock, at cost (2,264,190 shares) |
(135,921 | ) | (135,921 | ) | ||||
Total common shareholders’ equity |
$ | 1,577,232 | $ | 1,587,963 | ||||
Total capitalization |
$ | 2,746,896 | $ | 2,647,764 | ||||
| (1) | For purposes of these calculations, the as adjusted information assumes that the prepayment make-whole amount included in the aggregate prepayment purchase price of the Existing 2007 Senior Notes equals approximately $27.6 million, based on applicable interest rates as of August 2, 2010; the actual amount of the prepayment make-whole amount will be calculated using applicable interest rates on the second business day preceding the prepayment date. In addition, the as adjusted information assumes that accrued and unpaid interest equals approximately $4.9 million. | |
| (2) | The unused borrowing capacity under Issuer’s accounts receivable securitization facility was $34.4 million on an actual basis and $34.4 million on an adjusted basis. | |
| (3) | Other current borrowings consist of outstanding indebtedness under a short-term working capital credit facility supporting an operating subsidiary in China. | |
| (4) | Aggregate unused borrowing capacity under Issuer’s revolving credit facility was $297.8 million on an actual basis and $311.0 million on an as adjusted basis. | |
| (5) | The interest rates are effective as of June 28, 2010. |
-4-
| (6) | In accordance with ASC 470-20, the fair value of the feature to convert the debt into common stock is reported as a component of stockholders’ equity. Upon issuance of the notes, the debt will be reported at a discount to the face amount resulting in a decrease in the amount of debt with an increase in equity reported in Issuer’s financial statements. Under GAAP, the amount of debt reported will accrete up to the face amount over the expected term of the debt. The determination of the fair values of the debt and equity components has been estimated but is subject to change based upon the completion of Issuer’s analysis of non-convertible debt interest rates. Issuer currently estimates that the fair value of the feature to convert the debt into common stock which will be reported as unamortized discount on the notes being offered is equal to approximately $73.3 million on a pre-tax basis; this amount will be reported, on an after-tax basis, as an increase to additional paid-in capital on an as adjusted basis. ASC 470-20 does not affect the actual amount that Issuer is required to repay. In addition, additional paid-in capital is reduced as a result of the net cost of the convertible note hedge transactions and warrant transactions, which is approximately $25.0 million on a pre-tax basis; this amount will be reported on an after-tax basis on an as adjusted basis. | |
| (7) | There are 200,000,000 authorized shares of Issuer’s common stock, of which 39,927,082 shares were issued and outstanding as of July 14, 2010 on an actual and as adjusted basis. This amount does not include (i) the shares of Issuer’s common stock issuable upon conversion of the notes being offered hereby if Issuer elects to satisfy its conversion obligation by physical settlement or combination settlement; (ii) the shares of Issuer’s common stock issuable under the warrant transactions being entered into concurrently with this offering; (iii) 2,475,030 shares of Issuer’s common stock issuable upon exercise of outstanding stock options granted under Issuer’s 2000 stock compensation plan (the “2000 Plan”) and Issuer’s 2008 stock incentive plan (the “2008 Plan”); (iv) 421,871 shares of Issuer’s common stock issuable upon vesting of outstanding restricted stock awards under the 2000 Plan; (v) 1,724,910 shares of Issuer’s common stock reserved for issuance under the 2000 Plan and the 2008 Plan; and (vi) approximately 20,000 shares to be distributed from the deferred compensation plan. |
The Issuer has filed a registration statement (including the preliminary prospectus supplement
dated August 2, 2010 and an accompanying prospectus dated August 2, 2010) with the SEC, for the
offering to which this communication relates. Before you invest, you should read the relevant
preliminary prospectus supplement, the accompanying prospectus and the other documents the Issuer
has filed with the SEC for more complete information about the Issuer and the offering. You may get
these documents for free by visiting ▇▇▇▇▇ on the SEC web site at ▇▇▇.▇▇▇.▇▇▇. Alternatively,
copies may be obtained from ▇▇▇▇▇▇▇, Sachs & Co., Attn: Prospectus Department, ▇▇▇▇▇▇▇, ▇▇▇▇▇ & Co.
at ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, (▇▇▇) ▇▇▇-▇▇▇▇ or emailing ▇▇▇▇▇▇▇▇▇▇-▇▇@▇▇.▇▇▇▇▇.▇▇.▇▇▇,
▇▇▇▇▇▇▇▇▇ & Company, Inc. at ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: Equity
Syndicate Prospectus Department (▇▇▇) ▇▇▇-▇▇▇▇ or emailing ▇▇▇▇▇▇▇▇▇▇_▇▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇.▇▇▇,
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ & Co. Incorporated at ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention:
Prospectus Department, (▇▇▇) ▇▇▇-▇▇▇▇ or by emailing ▇▇▇▇▇▇▇▇▇▇@▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇, BofA ▇▇▇▇▇▇▇
▇▇▇▇▇ at ▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: Prospectus Department or emailing
▇▇.▇▇▇▇▇▇▇▇▇▇_▇▇▇▇▇▇▇▇@▇▇▇▇.▇▇▇ or ▇.▇. ▇▇▇▇▇▇ Securities Inc. at ▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇
▇▇▇▇▇, ▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: Prospectus Library.
-5-
SCHEDULE IV
Significant Subsidiaries
Arrow International, Inc. (Pennsylvania)
Arrow International Investment Corp. (Delaware)
Teleflex Holding Company (Canada)
Teleflex Holdings Netherlands B.V. (Netherlands)
Teleflex Medical Europe Limited (Ireland)
Teleflex Medical Incorporated (California)
TFX Equities Incorporated (Delaware)
TFX International Corporation (Delaware)
TFX North America Inc. (Delaware)
-6-
SCHEDULE V
▇▇▇▇▇▇▇ ▇. Black
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ Northfield
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇.
▇▇▇▇▇▇▇ ▇. ▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Sigismundus ▇.▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇ III
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. Zu
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ Northfield
▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇.
▇▇▇▇▇▇▇ ▇. ▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇
Sigismundus ▇.▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇ III
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
▇▇▇▇▇ ▇. Zu
-7-