THE TRAVELERS COMPANIES, INC. $500,000,000 5.800% SENIOR NOTES DUE 2018 Underwriting Agreement
Exhibit 99.1
$500,000,000 5.800% SENIOR NOTES DUE 2018
Underwriting Agreement
May 8, 2008
Xxxxxxx, Xxxxx & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
As Representatives of the
several Underwriters listed
in Schedule 1 hereto
several Underwriters listed
in Schedule 1 hereto
c/o Goldman, Sachs & Co.
00 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Xxx Xxxx, Xxx Xxxx 00000
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
4 World Financial Center
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Incorporated
4 World Financial Center
000 Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Ladies and Gentlemen:
The Travelers Companies, Inc., a Minnesota corporation (the “Company”), proposes to issue and
sell to the several Underwriters listed in Schedule 1 hereto (the “Underwriters”), for whom you are
acting as representatives (the “Representatives”), $500,000,000 aggregate principal amount of its
5.800% Senior Notes due 2018 (the “Securities”), having the terms set forth in Schedule 3 hereto.
The Securities will be issued pursuant to an Indenture dated as of March 12, 2002 (the “Indenture”)
between the Company (formerly known as The St. Xxxx Companies, Inc.) and The Bank of New York Trust
Company, N.A. (as successor to JPMorgan Chase Bank), as trustee (the “Trustee”).
1. Registration Statement. The Company has prepared and filed with the Securities and
Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended, and the rules
and regulations of the Commission thereunder (collectively, the “Securities Act”), an “automatic
shelf registration statement” (as defined in Rule 405 under the Securities Act) on Form S-3 (File
No. 333-130323), as amended by the Post-Effective Amendment No. 1 to the Registration Statement.
For purposes of this Agreement, the following terms have the specified meanings:
“Applicable Time” means 2:00 pm (New York City time) on the date of this Agreement;
“Base Prospectus” means the base prospectus filed as part of the Registration Statement, in
the form in which it has most recently been amended on or prior to the date hereof, relating to the
Securities;
“Disclosure Package” means, as of the Applicable Time, the most recent Preliminary Prospectus,
together with each Issuer Free Writing Prospectus filed or used by the Company on or before the
Applicable Time and identified on Schedule 2 hereto, other than a road show that is an Issuer Free
Writing Prospectus under Rule 433 of the Securities Act;
“Effective Date” means any date as of which any part of the Registration Statement or any
post-effective amendment thereto relating to the Securities became, or is deemed to have become,
effective under the Securities Act (including pursuant to Rule 430B of the Securities Act);
“Final Term Sheet” means the term sheet prepared pursuant to Section 4(a) of the Agreement and
substantially in the form attached in Schedule 3 hereto;
“Issuer Free Writing Prospectus” means each “free writing prospectus” (as defined in Rule 405
of the Securities Act) prepared by or on behalf of the Company or used or referred to by the
Company in connection with the offering of the Securities, including the Final Term Sheet;
“Preliminary Prospectus” means any preliminary prospectus relating to the Securities,
including the Base Prospectus and any preliminary prospectus supplement thereto, included in the
Registration Statement or as filed with the Commission pursuant to Rule 424(b) of the Securities
Act and provided to the Representatives for use by the Underwriters;
“Prospectus” means the final prospectus relating to the Securities, including the Base
Prospectus and the final prospectus supplement thereto relating to the Securities, as filed with
the Commission pursuant to Rule 424(b) of the Securities Act and provided to the Representatives
for use by the Underwriters; and
“Registration Statement” means, collectively, the various parts of the above-referenced
registration statement, each as amended as of the Effective Date for such part, including any
Preliminary Prospectus or the Prospectus and all exhibits to such registration statement.
Any reference to the “most recent Preliminary Prospectus” will be deemed to refer to the
latest Preliminary Prospectus included in the Registration Statement or filed pursuant to Rule
424(b) of the Securities Act prior to or on the date hereof (including, for purposes of this
Agreement, any documents incorporated by reference therein prior to or on the date of this
Agreement). Any reference to any
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Registration Statement, Preliminary Prospectus or the Prospectus will be deemed to refer to and
include any documents incorporated by reference therein pursuant to Form S-3 under the Securities
Act as of the date when such Registration Statement became effective or the date of such
Preliminary Prospectus or the Prospectus, as the case may be. Any reference to any amendment or
supplement to any Preliminary Prospectus or the Prospectus will be deemed to refer to and include
any document filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
after the date of such Preliminary Prospectus or the Prospectus, as the case may be, and
incorporated by reference in such Preliminary Prospectus or the Prospectus, as the case may be; and
any reference to any amendment to the Registration Statement will be deemed to include any annual
report of the Company on Form 10-K filed with the Commission pursuant to Section 13(a) or 15(d) of
the Exchange Act after the Effective Date that is incorporated by reference in the Registration
Statement.
2. Purchase of the Securities by the Underwriters. (a) The Company agrees to issue
and sell the Securities to the several Underwriters as provided in this Agreement, and each
Underwriter, on the basis of the representations, warranties and agreements set forth herein and
subject to the conditions set forth herein, agrees, severally and not jointly, to purchase from the
Company the respective principal amounts of Securities set forth opposite such Underwriter’s name
in Schedule 1 hereto at a price equal to 99.409% of the principal amount thereof for the
Securities, plus accrued interest, if any, from May 13, 2008 to the Closing Date (as defined
below). The Company will not be obligated to deliver any of the Securities except upon payment for
all the Securities to be purchased as provided herein.
(b) The Company understands that the Underwriters intend to make a public offering of
the Securities as soon after the effectiveness of this Agreement as in the judgment of the
Representatives is advisable, and initially to offer the Securities on the terms set forth
in the Disclosure Package and the Prospectus. The Company acknowledges and agrees that
the Underwriters may offer and sell Securities to or through any affiliate of an
Underwriter and that any such affiliate may offer and sell Securities purchased by it to
or through any Underwriter.
(c) Payment for and delivery of the Securities shall be made at the offices of Xxxxx
Xxxx & Xxxxxxxx at 10:00 A.M., New York City time, on May 13, 2008 (the “Closing Date”),
or at such other time or place on the same or such other date, not later than the fifth
business day thereafter, as the Representatives and the Company may agree upon in writing.
(d) Payment for the Securities shall be made by wire transfer in immediately
available funds to the account(s) specified by the Company to the Representatives against
delivery to the nominee of The Depository Trust Company, for the account of the
Underwriters, of one or more global notes representing the Securities (each a “Global
Security”), with any
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transfer taxes payable in connection with the sale of the Securities duly paid by the
Company.
3. Representations and Warranties of the Company. The Company represents, warrants
and agrees (i) on and as of the date hereof, and (ii) on the Closing Date, that:
(a) An “automatic shelf registration statement” (as defined in Rule 405 of under the
Securities Act) on Form S-3 in respect of the Securities (File No. 333-130323) (i) has
been prepared by the Company in conformity with the requirements of the Securities Act,
(ii) has been filed with the Commission under the Securities Act not earlier than the date
that is three years prior to the Closing Date and (iii) upon its filing with the
Commission, automatically became and is effective under the Securities Act. Copies of
such registration statement and any amendment thereto (excluding exhibits to such
registration statement but including all documents incorporated by reference in each
prospectus contained therein) have been made available by the Company to the
Representatives.
(b) The Commission has not issued any order preventing or suspending the
effectiveness of the Registration Statement or preventing or suspending the use of any
Preliminary Prospectus, any Issuer Free Writing Prospectus or the Prospectus; and no
proceeding for any such purpose has been instituted or threatened by the Commission. The
Commission has not notified the Company of any objection to the use of the form of the
Registration Statement.
(c) The Company has been since the time of the initial filing of the Registration
Statement, and continues to be, a “well-known seasoned issuer” (as defined in Rule 405
under the Securities Act) and has not been, and continues not to be, an “ineligible
issuer” (as defined in Rule 405 under the Securities Act), in each case at all times
relevant under the Securities Act in connection with the offering of the Securities.
(d) The Registration Statement conformed on the Effective Date and conforms, and any
amendment to the Registration Statement filed after the date hereof and prior to the
completion of the distribution of the Securities, will, when it becomes effective,
conform, in all material respects to the requirements of the Securities Act. The most
recent Preliminary Prospectus conforms on the date hereof, and the Prospectus, and any
amendment or supplement thereto filed after the date hereof and prior to the completion of
the distribution of the Securities, will, when they become effective or are filed with the
Commission, as the case may be, conform, in all material respects to the requirements of
the Securities Act. The documents incorporated by reference in the most recent
Preliminary Prospectus or the Prospectus, when they became effective or were filed with
the Commission, as the case may be, conformed in all
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material respects, to the requirements of the Securities Act or the Exchange Act, as
applicable, and no such documents have been filed with the Commission since the close of
business of the Commission on the business day immediately prior to the date hereof except
for such documents which the Company has shared with the Representatives and to which the
Representatives have not reasonably objected.
(e) The Registration Statement did not, as of the Effective Date, contain any untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein not misleading; provided, however,
that no representation or warranty is made as to information contained in or omitted from
the Registration Statement in reliance upon and in conformity with written information
furnished to the Company through the Representatives by or on behalf of any Underwriter
specifically for inclusion therein.
(f) The Disclosure Package did not, as of the Applicable Time, contain any untrue
statement of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided, however, that no representation or
warranty is made as to information contained in or omitted from the Disclosure Package in
reliance upon and in conformity with written information furnished to the Company through
the Representatives by or on behalf of any Underwriter specifically for inclusion therein.
(g) The Prospectus, and any amendment or supplement thereto, will not, as of its date
and on the Closing Date, contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided, however, that no representation or warranty is made as to information contained
in or omitted from the Prospectus in reliance upon and in conformity with written
information furnished to the Company through the Representatives by or on behalf of any
Underwriter specifically for inclusion therein.
(h) The documents incorporated by reference in any Preliminary Prospectus or the
Prospectus did not, and any further documents incorporated by reference therein will not,
when filed with the Commission, contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading.
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(i) Neither the Company nor any of its Significant Subsidiaries (as such term is
defined under Rule 1-02 of Regulation S-X) has sustained since the date of the latest
financial statements included or incorporated by reference in the Registration Statement,
the most recent Preliminary Prospectus and the Prospectus any loss or interference with
its business from fire, explosion, flood or other calamity, whether or not covered by
insurance, or from any labor dispute or court or governmental action, order or decree,
which is material to the Company and its Significant Subsidiaries taken as a whole,
otherwise than as set forth or contemplated in the Disclosure Package and the Prospectus;
and, since the respective dates as of which information is given in the Registration
Statement, the most recent Preliminary Prospectus and the Prospectus, there has not been
any change in the capital stock (other than issuances of common stock upon the exercise of
stock options outstanding on the date hereof or pursuant to existing employee compensation
plans or other than repurchases or redemptions of shares of capital stock of the Company
pursuant to the Company’s existing share repurchase program) or long-term debt of the
Company and its Significant Subsidiaries taken as a whole, or any material adverse change,
or any development involving a prospective material adverse change, in or affecting the
general affairs, business, management, financial position, shareholders’ equity or results
of operations of the Company and its subsidiaries taken as a whole, otherwise than as set
forth or contemplated in the Disclosure Package and the Prospectus;
(j) Each of the Company and its Significant Subsidiaries has good and marketable
title in fee simple to all material real property and good and marketable title to all
material personal property owned by it, in each case free and clear of all liens,
encumbrances and defects, except such as are described in the Disclosure Package and the
Prospectus or such as would not materially interfere with the use made or proposed to be
made of such property by the Company and its Significant Subsidiaries; and any material
real property and material buildings held under lease by the Company or any of its
Significant Subsidiaries are held by them under valid, subsisting and enforceable leases
with such exceptions as are not material and do not interfere with the use made and
currently proposed to be made of such property and buildings by the Company and its
Significant Subsidiaries;
(k) The Company has been duly incorporated and is validly existing as a corporation
in good standing under the laws of the State of Minnesota, with full corporate power and
authority to own or lease, as the case may be, its properties and conduct its business as
described in the Disclosure Package and the Prospectus, and has been duly qualified as a
foreign corporation for the transaction of business and is in good standing under the laws
of each other jurisdiction which requires such qualification, except where the failure to
be so qualified or be in good standing would
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not, individually or in the aggregate, have a material adverse effect on the general
affairs, business, prospects, management, financial position, shareholders’ equity or
results of operations of the Company and its subsidiaries taken as a whole, whether or not
arising from transactions in the ordinary course of business (a “Material Adverse
Effect”); and each Significant Subsidiary of the Company has been duly incorporated and is
validly existing as a corporation in good standing under the laws of its jurisdiction of
incorporation and 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 which requires
such qualification, except where the failure to be so qualified or be in good standing
would not, individually or in the aggregate, have a Material Adverse Effect; none of the
Company’s subsidiaries other than those listed on Annex I hereto are Significant
Subsidiaries;
(l) The Company has an authorized capitalization as set forth in the Disclosure
Package and the 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;
and all of the issued shares of capital stock of each Significant Subsidiary of the
Company have been duly and validly authorized and issued, are fully paid and non
assessable and (except as otherwise set forth in the Disclosure Package and the
Prospectus) are owned directly or indirectly by the Company, free and clear of all liens,
encumbrances, equities or claims;
(m) This Agreement has been duly authorized, executed and delivered by the Company
and this Agreement conforms in all material respects to the description thereof contained
in the Disclosure Package and the Prospectus;
(n) The Indenture has been duly authorized, executed and delivered by the Company and
duly qualified under the Trust Indenture Act, and constitutes a valid and legally binding
obligation of the Company, enforceable against the Company in accordance with its terms,
subject, as to enforcement, to bankruptcy, insolvency, reorganization or other laws of
general applicability relating or affecting creditors’ rights and to general equity
principles; and the Indenture conforms in all material respects to the description thereof
contained in the Disclosure Package and the Prospectus;
(o) The Securities have been duly authorized by the Company for issuance and sale to
the Underwriters and, when issued pursuant to the terms of the Indenture, and
authenticated by the Trustee and delivered by the Company against payment therefor, will
constitute valid and legally binding obligations of the Company, enforceable against the
Company in accordance with their terms, subject, as to enforcement, to bankruptcy,
insolvency, reorganization or other laws of general applicability relating or
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affecting creditors’ rights and to general equity principles, and entitled to the
benefits provided by the Indenture; the Securities conform in all material respects to the
descriptions thereof contained in the Disclosure Package and the Prospectus; the holders
of outstanding shares of capital stock of the Company are not entitled to preemptive or
other rights to subscribe for the Securities;
(p) The issuance and sale of the Securities and the compliance by the Company with
all of the provisions of the Securities, the Indenture and this Agreement and the
consummation of the transactions herein and therein contemplated will not conflict with or
result in (i) a breach or violation of any of the terms or provisions of, or constitute a
default under, any indenture, mortgage, deed of trust, loan agreement or other agreement
or instrument to which the Company or any of its Significant Subsidiaries is a party or by
which the Company or any of its Significant Subsidiaries is bound or to which any of the
property or assets of the Company or any of its Significant Subsidiaries is subject, (ii)
any violation of the provisions of the Restated Articles of Incorporation, as amended, or
By-laws of the Company or (iii) any violation of any law, statute or any order, rule or
regulation of any court or governmental agency or body having jurisdiction over the
Company or any of its subsidiaries or any of their properties, except, in the case of
clauses (i) and (iii), as would not, individually or in the aggregate, result in a
Material Adverse Effect, or materially and adversely affect the Company’s ability to
perform its obligations under the Securities, the Indenture or this Agreement; and no
consent, approval, authorization, order, registration or qualification of or with any such
court or governmental agency or body is required for the issuance and sale of the
Securities or the consummation by the Company of the transactions contemplated by this
Agreement, except such as have been obtained under the Securities Act and the Trust
Indenture Act and 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;
(q) Neither the Company nor any of its subsidiaries is in violation of its
organizational documents or in default in the performance or observance of any material
obligation, covenant or condition contained in any indenture, mortgage, deed of trust,
loan agreement, lease or other agreement or instrument to which it is a party or by which
it or any of its properties is or may be bound, which violation or default might
reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Effect;
(r) The statements set forth in the most recent Preliminary Prospectus as
supplemented by the Final Term Sheet, and the Prospectus under the captions “Description
of the Senior Notes” and “Description of Debt Securities We May Offer”, insofar as they
purport to constitute a
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summary of the terms of the Securities, and under the captions “Underwriting” (other
than the last seven paragraphs thereunder) and “Plan of Distribution”, insofar as they
purport to describe the provisions of the laws and documents referred to therein, are
accurate and complete in all material respects; the statements set forth in the Annual
Report on Form 10-K for the fiscal year ended December 31, 2007 incorporated by reference
into the Prospectus under the captions “Item 1. Business – Regulation”, “Item 3. Legal
Proceedings” (as updated in the Quarterly Report on Form 10-Q for the fiscal quarter ended
March 31, 2008) and in the Registration Statement under Item 15, insofar as they purport
to describe the provisions of the laws and documents referred to therein and the Company’s
Restated Articles of Incorporation and By-laws, are accurate and complete in all material
respects;
(s) Other than as set forth in the Disclosure Package and the 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 or which could reasonably be expected to individually or in
the aggregate have a Material Adverse Effect; and, to the best of the Company’s knowledge,
no such proceedings are threatened or contemplated by governmental authorities or
threatened by others;
(t) The Company is not and, after giving effect to the offering and sale of the
Securities as herein contemplated or as described in the Disclosure Package and the
Prospectus and the application of the proceeds thereof as described in the Disclosure
Package and the Prospectus, will not be an “investment company”, as such term is defined
in the Investment Company Act of 1940, as amended (the “Investment Company Act”);
(u) KPMG LLP, which has certified certain financial statements of the Company and its
subsidiaries, and has reviewed the Company’s internal control over financial reporting, is
an independent registered public accounting firm as required by the Securities Act;
(v) The financial statements of the Company, together with the related schedules,
notes and supplemental information set forth or incorporated by reference in the most
recent Preliminary Prospectus and the Prospectus comply in all material respects with the
requirements of the Securities Act and the Exchange Act and interpretations thereof and
present fairly in all material respects the financial position, the results of operations
and the changes in cash flows of such entities in conformity with accounting principles
generally accepted in the United States (“U.S. GAAP”) at the respective dates or for the
respective periods to which they apply; such statements and related schedules, notes and
supplemental information have been prepared in accordance with U.S. GAAP consistently
applied throughout the periods involved except for any
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normal year-end adjustments and except as described therein; the pro forma financial
statements of the Company and its consolidated subsidiaries, if any, and the related notes
thereto incorporated by reference in the most recent Preliminary Prospectus and the
Prospectus present fairly in all material respects the information contained therein,
comply as to form in all material respects with the applicable accounting requirements of
the Securities Act and the published rules and regulations thereunder and are based on
assumptions that the Company believes are reasonable and the adjustments used therein are
appropriate to give effect to the transactions and circumstances referred to therein;
(w) The Company maintains a system of internal control over financial reporting (as
such term is defined in Rule 13a-15(f) of 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 U.S. GAAP; 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;
(x) Since the date of the latest financial statements included or incorporated by
reference in the most recent Preliminary Prospectus and the 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;
(y) The Company maintains disclosure controls and procedures (as such term is defined
in Rule 13a-15(e) of 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; such disclosure controls and procedures are effective;
(z) There are no contracts or other documents required to be described in the
Registration Statement, any Preliminary Prospectus or the Prospectus or to be filed as an
exhibit to the Registration Statement which are not described or filed as required by the
Securities Act; and
(aa) The Company possesses such permits, licenses, approvals, consents and other
authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal,
state, local or foreign regulatory agencies or bodies necessary to conduct in all material
respects the
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business now operated by it, except where the failure to possess such Governmental
Licenses would not, individually or in the aggregate, have a Material Adverse Effect; the
Company is in compliance with the terms and conditions of all such Governmental Licenses,
except where the failure so to comply would not, individually or in the aggregate, result
in a Material Adverse Effect; all of the Governmental Licenses are valid and in full force
and effect, except where the failure to have such Governmental Licenses in full force and
effect would not, individually or in the aggregate, result in a Material Adverse Effect;
and the Company has not received any notice of proceedings relating to the revocation or
modification of any such Governmental Licenses which, singly or in the aggregate, if the
subject of an unfavorable decision, ruling or finding, would have a Material Adverse
Effect.
4. Further Agreements of the Company. The Company agrees with the Underwriters:
(a) to prepare the Final Term Sheet, substantially in the form of Schedule 3 hereto
and approved by the Representatives and file the Final Term Sheet pursuant to Rule 433(d)
of the Securities Act within the time period prescribed by such Rule; to prepare the
Prospectus, as amended or supplemented, in relation to the Securities in a form approved
by the Underwriters and to file or cause to be filed with the Commission such Prospectus,
pursuant to Rule 424(b) under the Securities Act, within the time period prescribed by
such Rule; to make no further amendment or any supplement to the Registration Statement or
Prospectus as amended or supplemented after the date of this Agreement and prior to the
Closing Date which shall be disapproved by the Underwriters promptly after reasonable
notice thereof; to advise the Underwriters promptly of any such amendment or supplement
after such Closing Date and furnish the Underwriters with copies thereof and to file
promptly all reports and any definitive proxy or information statements required to be
filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14 or 15(d) of
the Exchange Act for so long as the delivery of a prospectus is required in connection
with the offering or sale of such Securities, and during such same period to advise the
Underwriters, promptly after it receives notice thereof, of the time when any amendment to
the Registration Statement has been filed or any supplement to the most recent Preliminary
Prospectus and the Prospectus or any amended Prospectus has been filed with the
Commission, of the issuance by the Commission of any stop order or of any order preventing
or suspending the use of any prospectus relating to the Securities or any Issuer Free
Writing Prospectus, of the suspension of the qualification of such Securities for offering
or sale in any jurisdiction, of the initiation or threatening of any proceeding for any
such purpose, or of any request by the Commission for the amending or supplementing of the
Registration Statement, any Preliminary Prospectus, the Prospectus or any Issuer Free
Writing Prospectus or for
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additional information; and, in the event of the issuance of any such stop order or
of any such order preventing or suspending the use of any prospectus relating to the
Securities or suspending any such qualification, to promptly use its best efforts to
obtain the withdrawal of such order;
(b) promptly from time to time to take such action as the Underwriters may reasonably
request to qualify the Securities for offer and sale under the securities laws of such
jurisdictions as the Underwriters 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 issuance and sale of the Securities, provided
that in connection therewith the Company shall not be required to qualify as a foreign
corporation, to file a general consent to service of process in any jurisdiction or to
become subject to taxation in any jurisdiction in which it is not otherwise subject;
(c) to furnish to the Underwriters such number of conformed copies of the
Registration Statement, as originally filed and each amendment thereto (excluding exhibits
other than this Agreement), any Preliminary Prospectus, the Final Term Sheet and any other
Issuer Free Writing Prospectus, the Prospectus and all amendments and supplements to any
of such documents (including any document filed under the Exchange Act and deemed to be
incorporated by reference in the Registration Statement, any Preliminary Prospectus or the
Prospectus), in each case as soon as available and in such quantities as the
Representatives may from time to time reasonably request;
(d) during the period in which the Prospectus relating to the Securities (or in lieu
thereof, the notice referred to in Rule 173(a) of the Securities Act) is required to be
delivered under the Securities Act, to comply with all requirements imposed upon it by the
Securities Act, as from time to time in force, so far as is necessary to permit the
continuance of sales of or dealings in the Securities as contemplated by the provisions of
this Agreement and by the most recent Preliminary Prospectus and the Prospectus. If
during such period any event occurs as a result of which the Disclosure Package or the
Prospectus as then amended or supplemented would include an untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the
light of the circumstances then existing, not misleading, or if during such period it is
necessary to amend the Registration Statement or amend or supplement the Disclosure
Package or the Prospectus or file any document to comply with the Securities Act, to
promptly notify the Representatives and, subject to Section 4(a) hereof, amend the
Registration Statement, amend or supplement the Disclosure Package or the Prospectus, as
the case may be, or file any document (in each case, at the expense of the Company) so as
to correct such statement or omission or to effect such compliance, and to furnish without
charge to each Underwriter as many written and
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electronic copies of any such amendment or supplement as the Representatives may from
time to time reasonably request;
(e) to make generally available to security-holders of the Company as soon as
practicable, but in any event not later than eighteen months after the effective date of
the Registration Statement (as defined in Rule 158(c) under the Securities Act), an
earnings statement of the Company and its subsidiaries (which need not be audited)
complying with Section 11(a) of the Securities Act (including, at the option of the
Company, Rule 158 thereunder);
(f) for a period of 30 days after the date of this Agreement, neither the Company,
nor any of its subsidiaries or other affiliates over which it exercises management or
voting control, nor any person acting on their behalf will, without the prior written
consent of the Representatives, offer, sell, contract to sell or otherwise dispose of any
securities that are substantially similar to the Securities.
(g) to pay the required Commission filing fees related to the Securities within the
time period required by Rule 456(b)(1) under the Securities Act without regard to the
proviso therein and otherwise in accordance with Rules 456(b) and 457(r) under the
Securities Act;
(h) to apply the net proceeds from the sale of the Securities as described in the
Disclosure Package and the Prospectus under the heading “Use of Proceeds”; and
(i) not to take, directly or indirectly, any action designed to or that could
reasonably be expected to cause or result in any stabilization or manipulation of the
price of the Securities.
5. Free Writing Prospectuses.
(a) The Company represents and warrants to, and agrees with, each Underwriter that
(i) the Company has not made, and will not, make any offer relating to the Securities that
would constitute an Issuer Free Writing Prospectus without the prior consent of the
Representatives (which consent being deemed to have been given with respect to (A) the
Final Term Sheet prepared and filed pursuant to Section 4(a) hereof and (B) any other
Issuer Free Writing Prospectus identified on Schedule 2 hereto); (ii) each Issuer Free
Writing Prospectus conformed or will conform in all material respects to the requirements
of the Securities Act on the date of first use, and the Company has complied with any
filing requirements applicable to such Issuer Free Writing Prospectus pursuant to Rule 433
under the Securities Act; (iii) each Issuer Free Writing Prospectus will not, as of its
issue date and through the time the Securities are delivered pursuant to Section 2 hereof,
include any information that
13
conflicts with the information contained in the Registration Statement, the most
recent Preliminary Prospectus and the Prospectus; and (iv) each Issuer Free Writing
Prospectus, when considered together with the information contained in the most recent
Preliminary Prospectus, did not, as of the Applicable Time, does not, as of the date
hereof, and will not, as of the Closing Date, contain any untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, 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 in an Issuer Free Writing Prospectus made in reliance upon and
in conformity with information furnished to the Company by an Underwriter through the
Representatives for use therein.
(b) Each Underwriter represents and warrants to, and agrees with, the Company and
each other Underwriter that it 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 Securities Act) required to be filed with the Commission, other than the information
contained in the Final Term Sheet, without the prior consent of the Company and the
Representatives.
(c) The Company agrees that if, at any time following issuance of an Issuer Free
Writing Prospectus and prior to the completion of the distribution of the Securities, 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 most recent Preliminary
Prospectus or the Prospectus or would 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 then prevailing, not misleading, the Company will give prompt
notice thereof to the Representatives and, if requested by the Representatives, 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.
6. Conditions of Underwriters’ Obligations. The respective obligations of the
Underwriters hereunder shall be subject, in the discretion of the Underwriters, to the condition
that all representations and warranties and other statements by the Company herein are, and as of
the Closing Date will be, true and correct, and to the condition that the Company shall have
performed all of its obligations hereunder theretofore to be performed, and the following
additional conditions:
(a) The Prospectus shall have been filed with the Commission in a timely fashion in
accordance with Section 4(a) hereof; all filings (including, without limitation, the
filing of the Final Term Sheet) required
14
by Rule 424(b) or Rule 433 of the Securities Act shall have been made within the time
periods prescribed by such rule; no stop order suspending the effectiveness of the
Registration Statement or any amendment or supplement thereto or preventing or suspending
the use of any Preliminary Prospectus, any Issuer Free Writing Prospectus or the
Prospectus shall have been issued and no proceeding for that purpose 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 the Underwriters’ reasonable
satisfaction;
(b) No Underwriter shall have been advised by the Company, or shall have discovered
and disclosed to the Company, that the Registration Statement, the most recent Preliminary
Prospectus, the Prospectus, any Issuer Free Writing Prospectus or any amendment or
supplement thereto contains an untrue statement of fact which, in the opinion of the
Representatives or of counsel to the Underwriters, is material, or omits to state any fact
which, in the opinion of the Representatives or of counsel to the Underwriters, is
material and is required to be stated therein or is necessary to make the statements
therein not misleading.
(c) Xxxxx Xxxx & Xxxxxxxx, counsel for the Underwriters, shall have furnished to the
Underwriters a written opinion and a letter, dated the Closing Date, with respect to the
Registration Statement, the Disclosure Package and the Prospectus, and such other related
matters as the Underwriters may reasonably request, and such counsel shall have received
such papers and information as they may reasonably request to enable them to pass upon
such matters;
(d) Xxxxxxx Xxxxxxx & Xxxxxxxx LLP, outside counsel for the Company, shall have
furnished to the Underwriters a written opinion to the effect set forth in Exhibit A-1
hereto, and the letter related to certain matters to the effect set forth in Exhibit A-2
hereto, each dated the Closing Date.
(e) Xxxxx X. Xxxxxxxx, Esq., Senior Vice President and Corporate Secretary of the
Company, shall have furnished to the Underwriters his written opinion to the effect set
forth in Exhibit B hereto, dated as of the Closing Date.
(f) On the date hereof and on the Closing Date, KPMG LLP shall have furnished to the
Underwriters letters, dated such respective dates, in form and substance satisfactory to
the Underwriters, containing statements and information of the type customarily included
in accountants “comfort letters” to Underwriters with respect to the financial statements
and schedules and certain financial information contained or incorporated by reference in
the Registration Statement, the Disclosure
15
Package or the Prospectus; provided that the letter delivered on the Closing Date, as
the case may be, shall use a “cut-off” date no more than three business days prior to such
Closing Date;
(g) (i) Neither the Company nor any of its Significant Subsidiaries shall have
sustained since the date of the latest financial statements included or incorporated by
reference in the most recent Preliminary Prospectus and the 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 Disclosure Package or the
Prospectus, and (ii) since the respective dates as of which information is given in the
most recent Preliminary Prospectus and the Prospectus, there shall not have been any
change in the capital stock (other than issuances of common stock upon the exercise of
stock options outstanding on the date hereof or pursuant to existing employee compensation
plans or other than repurchases or redemptions of shares of capital stock of the Company
pursuant to the Company’s existing share repurchase program) or long term debt of the
Company or any of its Significant Subsidiaries taken as a whole, or any change, or any
development involving a prospective change, in or affecting the general affairs, business,
management, financial position, shareholders’ equity or results of operations of the
Company and its subsidiaries taken as a whole, otherwise than as set forth or contemplated
in the Disclosure Package and the Prospectus, the effect of which, in any such case
described in clause (i) or (ii), is in the judgment of the Underwriters so material and
adverse as to make it impracticable or inadvisable to proceed with the offering, sale or
delivery of the Securities on the terms and in the manner contemplated in the Disclosure
Package and the Prospectus;
(h) On or after the Applicable Time, (i) no downgrading shall have occurred in the
rating accorded any debt security of the Company or the financial strength or claims
paying ability of the Company or any Significant Subsidiary by any “nationally recognized
statistical rating organization”, as that term is defined by the Commission for purposes
of Rule 436(g)(2) under the Securities Act, and (ii) no such organization shall have
publicly announced or otherwise given notice to the Company that it has under
surveillance, review or watch, with possible negative implications, its rating of any debt
security or the financial strength or the claims paying ability of the Company or any
Significant Subsidiary, or of any review for a possible change therein that does not
indicate the direction of the possible change;
(i) On or after the date hereof there shall not have occurred any of the following:
(i) a suspension or material limitation in trading in securities generally on the New York
Stock Exchange; (ii) a suspension or material limitation in trading in the Company’s
securities on the
16
New York Stock 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 the Representatives makes it impracticable or inadvisable
to proceed with the offering, sale or delivery of the Securities on the terms and in the
manner contemplated in the Disclosure Package, the Prospectus and this Agreement;
(j) The Company shall have complied with the provisions of Section 4(a) hereof with
respect to the filing of the Prospectus and the Final Term Sheet;
(k) No injunction, judgment, order, decree or other legal or governmental action
prohibiting the consummation of the transactions contemplated hereby shall have been
issued and remain in effect or shall have been publicly announced by any court or
announced, or threatened in writing, by a regulatory agency or other governmental body;
and
(l) The Company shall have furnished or caused to be furnished to the Underwriters on
the Closing Date certificates of officers of the Company satisfactory to the Underwriters
as to the accuracy of the representations and warranties of the Company herein at such
Closing Date, as to the performance by the Company of all of its respective obligations
hereunder to be performed at or prior to such Closing Date, as to the matters set forth in
subsections (a), (g) and (h) of this Section and as to such other matters as the
Underwriters may reasonably request.
7. Agreement of the Underwriters. Each Underwriter agrees to the selling restrictions
set forth in Schedule 4 hereto.
8. Indemnification and Contribution.
(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 Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon the failure to
have an effective Registration Statement relating to the Securities or the failure to
satisfy the prospectus delivery requirements of the Securities Act because the Company
failed to provide the Underwriters with a Prospectus for delivery, or arise out of or are
based upon an untrue statement or alleged untrue statement of a material fact contained in
any
17
Preliminary Prospectus, the Registration Statement, the Disclosure Package 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) of the
Securities 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, or arise out of or are based upon the engagement of the
Underwriters pursuant to, or the performance of the Underwriters of their respective
services (including any such services performed on or prior to the date hereof)
contemplated by, this Agreement, 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
the Company shall not 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 any Preliminary Prospectus, the
Disclosure Package, the Registration Statement or the Prospectus or any such amendment or
supplement in reliance upon and in conformity with written information furnished to the
Company by any Underwriter expressly for use therein. The Underwriters shall incur no
liability to and shall be indemnified and held harmless by the Company for, or in respect
of, any actions taken, omitted to be taken or suffered to be taken in the absence of bad
faith, gross negligence or willful misconduct by the Underwriters in reasonable reliance
upon the advice of counsel satisfactory to it or instructions from the Trustee (pursuant
to the Indenture) or the Company.
(b) Each Underwriter, severally and not jointly, will indemnify and hold harmless the
Company against any losses, claims, damages or liabilities to which the Company may become
subject, under the Securities 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 any Preliminary
Prospectus, the Registration Statement, the Disclosure Package 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 Preliminary Prospectus, the
Registration Statement, the Disclosure Package or the Prospectus or any such amendment or
supplement in reliance upon and in conformity with written information furnished to the
Company by such Underwriter expressly for use therein; and will reimburse the Company for
any legal or other expenses reasonably
18
incurred by the Company in connection with investigating or defending any such action
or claim as such expenses are incurred.
(c) Promptly after receipt by an indemnified party under subsection (a) or (b) 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 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. 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 (or
such other release of the indemnified party as shall be satisfactory to 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.
(d) If the indemnification provided for in this Section 8 is unavailable to or
insufficient to hold harmless an indemnified party under subsection (a) or (b) 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
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 (c) above, then each
indemnifying party
19
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 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 on the other hand in connection with the offering of the Securities shall be
deemed to be in the same respective proportions as the net proceeds (before deducting
expenses) received by the Company from the sale of the Securities and the total
underwriting discounts and commissions received by the Underwriters with respect to the
offering of the Securities, bear to the aggregate offering price of the Securities. 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
and the Underwriters agree that it would not be just and equitable if contributions
pursuant to this subsection (d) 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 (d). 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 (d) 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 (d),
no Underwriter shall be required to contribute any amount in excess of the amount by which
the total underwriting discounts and commissions received by such Underwriter with respect
to the offering of the Securities 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 Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. The Underwriters’
obligations in this subsection (d) to contribute are several and not joint.
(e) The obligations of the Company under this Section 8 shall be in addition to any
liability which the Company may otherwise have and shall extend, upon the same terms and
conditions, to each director and officer of each Underwriter and each person, if any, who
controls an Underwriter within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act, and shall be binding upon and inure to
20
the benefit of any successors, assigns, heirs and personal representatives of the
Underwriters; and the obligations of the Underwriters under this Section 8 shall be in
addition to any liability which the respective Underwriters may otherwise have and shall
extend, upon the same terms and conditions, to each officer and director of the Company
and to each person, if any, who controls the Company within the meaning of Section 15 of
the Securities Act or Section 20 of the Exchange Act.
9. Termination. This Agreement may be terminated in the absolute discretion of the
Representatives, by notice to the Company, if after the execution and delivery of this Agreement
and prior to the Closing Date (i) trading generally shall have been suspended or materially limited
on the New York Stock Exchange or the over-the-counter market; (ii) trading of any securities
issued or guaranteed by the Company shall have been suspended on any exchange or in any
over-the-counter market; (iii) a general moratorium on commercial banking activities shall have
been declared by federal or New York State authorities; or (iv) there shall have occurred any
outbreak or escalation of hostilities or any change in financial markets or any calamity or crisis,
either within or outside the United States, that, in the judgment of the Representatives, is
material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale
or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the
Disclosure Package and the Prospectus.
10. Defaulting Underwriter. (a) If, on the Closing Date, any Underwriter defaults on
its obligation to purchase the Securities that it has agreed to purchase hereunder, the
non-defaulting Underwriters may in their discretion arrange for the purchase of such Securities by
other persons satisfactory to the Company on the terms contained in this Agreement. If, within 36
hours after any such default by any Underwriter, the non-defaulting Underwriters do not arrange for
the purchase of such Securities, then the Company shall be entitled to a further period of 36 hours
within which to procure other persons satisfactory to the non-defaulting Underwriters to purchase
such Securities on such terms. If other persons become obligated or agree to purchase the
Securities of a defaulting Underwriter, either the non-defaulting Underwriters or the Company may
postpone the Closing Date for up to five full business days in order to effect any changes that in
the opinion of counsel for the Company or counsel for the Underwriters may be necessary in the
Registration Statement, the Disclosure Package and the Prospectus or in any other document or
arrangement, and the Company agrees to promptly prepare any amendment or supplement to the
Registration Statement, the Disclosure Package and the Prospectus that effects any such changes.
As used in this Agreement, the term “Underwriter” includes, for all purposes of this Agreement,
unless the context otherwise requires, any person not listed in this Agreement that, pursuant to
this Section 10, purchases Securities that a defaulting Underwriter agreed but failed to purchase.
(b) If, after giving effect to any arrangements for the purchase of the Securities of
a defaulting Underwriter or Underwriters by the non-
21
defaulting Underwriters and the Company as provided in paragraph (a) above, the
aggregate principal amount of such Securities that 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 that such Underwriter agreed to purchase hereunder plus such
Underwriter’s pro rata share (based on the principal amount of Securities
that such Underwriter agreed to purchase hereunder) of the Securities of such defaulting
Underwriter or Underwriters for which such arrangements have not been made.
(c) If, after giving effect to any arrangements for the purchase of the Securities of
a defaulting Underwriter or Underwriters by the non-defaulting Underwriters and the
Company as provided in paragraph (a) above, the aggregate principal amount of such
Securities that 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
paragraph (b) above, then this Agreement shall terminate without liability on the part of
the non-defaulting Underwriters. Any termination of this Agreement pursuant to this
Section 10 shall be without liability on the part of the Company, except that the Company
will continue to be liable for the payment of expenses as set forth in Section 11 hereof
and except that the provisions of Section 8 hereof shall not terminate and shall remain in
effect.
(d) Nothing contained herein shall relieve a defaulting Underwriter of any liability
it may have to the Company or any non-defaulting Underwriter for damages caused by its
default.
11. Payment of Expenses. (a) The Company covenants and agrees with the Underwriters
that, whether or not the transactions contemplated herein are consummated, 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 preparation, printing and filing of 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; (ii) the cost of
printing or producing this Agreement, any Blue Sky Memorandum, closing documents (including
compilations thereof) and any other documents in connection with the issuance and sale of the
Securities, including the reasonable fees and expenses of counsel to the Underwriters preparing
such Blue Sky Memorandum; (iii) all expenses in connection with the qualification of the Securities
for offering and sale under state securities laws and insurance securities laws as provided in
Section 4(b) hereof; (iv) the filing fees in connection with securing any required review by the
NASD of the terms of the issuance and sale of the Securities; (v) the cost of preparing the
Securities; (vi) fees, expenses and disbursements of the Trustee, any transfer agent or registrar,
any agent of or counsel to any of the foregoing, in connection
22
with the Securities or this Agreement; (vii) any travel expenses of the Company’s officers and
employees and any other expenses of the Company in connection with attending or hosting meetings
with prospective purchasers of the Securities; and (viii) all other costs and expenses incident to
the performance of the obligations of the Company hereunder which are not otherwise specifically
provided for in this Section. It is understood, however, that, except as provided in this Section
and Section 8 hereof, the Underwriters will pay all of their own costs and expenses, including the
fees, disbursements and expenses of counsel for the Underwriters other than fees and expenses to be
borne by the Company as specified in subsection (ii) above.
(b) If (i) this Agreement is terminated pursuant to Section 9, (ii) the Company for
any reason fails to tender the Securities for delivery to the Underwriters or (iii) the
Underwriters decline to purchase the Securities for any reason permitted under this
Agreement, the Company agrees to reimburse the Underwriters for all out-of-pocket costs
and expenses (including the reasonable fees and expenses of their counsel) reasonably
incurred by the Underwriters in connection with this Agreement and the offering
contemplated hereby.
12. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the
benefit of and be binding upon the parties hereto and their respective successors and the officers
and directors and any controlling persons referred to herein, and the affiliates of each
Underwriter referred to in Section 8 hereof. Nothing in this Agreement is intended or shall be
construed to give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. No purchaser of Securities from any
Underwriter shall be deemed to be a successor merely by reason of such purchase.
13. Survival. The respective indemnities, rights of contribution, representations,
warranties and agreements of the Company and the Underwriters contained in this Agreement or made
by or on behalf of the Company or the Underwriters pursuant to this Agreement or any certificate
delivered pursuant hereto shall survive the delivery of and payment for the Securities and shall
remain in full force and effect, regardless of any termination of this Agreement or any
investigation made by or on behalf of the Company or the Underwriters.
14. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise
expressly provided, the term “affiliate” has the meaning set forth in Rule 405 under the Securities
Act; (b) the term “business day” means any day other than a day on which banks are permitted or
required to be closed in New York City; and (c) the term “subsidiary” has the meaning set forth in
Rule 405 under the Securities Act.
15. No Fiduciary Duty. The Company acknowledges and agrees that the Underwriters are
acting solely in the capacity of an arm’s length contractual
23
counterparty to the Company with respect to the offering of Securities contemplated hereby
(including in connection with determining the terms of the offering) and not as a financial advisor
or a fiduciary to, or an agent of, the Company or any other person. Additionally, neither the
Representatives nor any other Underwriter is advising the Company or any other person as to any
legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Company shall
consult with its own advisors concerning such matters and shall be responsible for making their own
independent investigation and appraisal of the transactions contemplated hereby, and the
Underwriters shall have no responsibility or liability to the Company with respect thereto. Any
review by the Underwriters of the Company, the transactions contemplated hereby or other matters
relating to such transactions will be performed solely for the benefit of the Underwriters and
shall not be on behalf of the Company.
16. Miscellaneous. (a) Authority of the Representatives. Any action by the
Underwriters hereunder may be taken by the Representatives on behalf of the Underwriters, and any
such action taken by the Representatives shall be binding upon the Underwriters.
(b) Notices. All notices and other communications hereunder shall be in writing and
shall be deemed to have been duly given if mailed or transmitted and confirmed by any
standard form of telecommunication. Notices to the Underwriters shall be given to the
Representatives at the addresses set forth in this Agreement. Notices to the Company
shall be given to it at 000 Xxxxxxxxxx Xxxxxx, Xx. Xxxx, Xxxxxxxxx 00000, (fax: (000)
000-0000); Attention: General Counsel.
(c) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.
(d) Amendments or Waivers. No amendment or waiver of any provision of this
Agreement, nor any consent or approval to any departure therefrom, shall in any event be
effective unless the same shall be in writing and signed by the parties hereto.
(e) Headings. The headings herein are included for convenience of reference only and
are not intended to be part of, or to affect the meaning or interpretation of, this
Agreement.
24
If the foregoing correctly sets forth the agreement among the Company, and the
Underwriters, please indicate your acceptance in the space provided for that purpose
below.
THE TRAVELERS COMPANIES, INC. | ||||
By: | /s/ Xxx X. Xxxxx | |||
Name: | Xxx X. Xxxxx | |||
Title: | Vice Chairman and Chief Financial Officer |
|||
Accepted:
XXXXXXX, SACHS & CO. | ||||
By: |
/s/ Xxxxxxx Xxxxx & Co. | |||
XXXXXXX LYNCH, PIERCE, XXXXXX
& XXXXX INCORPORATED |
||||
By: |
/s/ Xxxxxxx Xxxxx | |||
For themselves and as
Representatives of the Underwriters
Representatives of the Underwriters
Schedule 1
Principal | ||||
Amount of 2018 | ||||
Underwriters | Notes | |||
Xxxxxxx, Sachs & Co. |
$ | 200,000,000 | ||
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated |
200,000,000 | |||
BB&T Capital Markets, a division of Xxxxx &
Xxxxxxxxxxxx, Inc. |
16,666,667 | |||
Greenwich Capital Markets, Inc. |
16,666,667 | |||
HSBC Securities (USA) Inc. |
16,666,667 | |||
Xxxxxx Xxxxxxx & Co., Inc. |
16,666,667 | |||
UBS Securities LLC |
16,666,666 | |||
Xxxxx Fargo Securities, LLC |
16,666,666 | |||
Total |
$ | 500,000,000 | ||
Schedule 2
ISSUER FREE WRITING PROSPECTUSES
Final Term Sheet, dated May 8, 2008, relating to the Securities, as filed pursuant to Rule 433
under the Securities Act and attached as Schedule 3 hereto.
Schedule 3
$500,000,000 5.800% Senior Notes due 2018
TERM SHEET
May 8, 2008
May 8, 2008
Issuer: |
The Travelers Companies, Inc. | |
Securities: |
5.800% Senior Notes due 2018 | |
Principal Amount: |
$500,000,000 | |
CUSIP: |
89417E AE9 | |
Maturity Date: |
May 15, 2018 | |
Public Offering Price: |
99.909% Per Note | |
Gross Proceeds: |
$499,545,000 | |
Coupon: |
5.800% | |
Benchmark Treasury: |
3.500% UST due February, 2018 | |
Benchmark Treasury Yield: |
3.812% | |
Spread to Treasury: |
+ 200 bps | |
Concession Not in Excess of: |
5.812% | |
Interest Payment Dates: |
Semi-annually in arrears on May 15 and | |
November 15, commencing November 15, 2008 | ||
Make Whole Call: |
T+30 bps |
Ratings1 |
||
• Xxxxx’x |
A3/positive | |
• S&P |
A-/stable | |
• Fitch |
A/stable | |
• A.M. Best |
a-/stable | |
Day Count Convention: |
30/360 | |
Security Type: |
Senior Unsecured Notes | |
Legal Format: |
SEC Registered | |
Specified Currency: |
U.S. Dollars | |
Trade Date: |
May 8, 2008 | |
Settlement Date (T+3): |
May 13, 2008 |
Authorized Denominations: |
$2,000 and integral multiples of $1,000 in | |
excess thereof |
Book-Running Managers: |
Xxxxxxx, Xxxxx & Co. |
|
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx |
||
Incorporated | ||
Co-managers: |
BB&T Capital Markets, a division of Xxxxx & |
|
Xxxxxxxxxxxx, Inc. |
||
HSBC Securities (USA) Inc. |
||
Greenwich Capital Markets, Inc. |
||
Xxxxxx Xxxxxxx & Co., Inc. |
||
UBS Securities LLC |
||
Xxxxx Fargo Securities, LLC |
1. Agency ratings are not a recommendation to buy, sell or hold any security, and they may be
revised or withdrawn at any time by the rating organization. Each agency’s rating should be
evaluated independently of any other agency’s rating. The system and the number of rating
categories can vary widely from rating agency to rating agency.
The issuer has filed a registration statement (including a prospectus) with the SEC for the
offering to which this communication relates. Before you invest, you should read the prospectus in
that registration statement and other documents the issuer has filed with the SEC for more complete
information about the issuer and this offering. You may get these documents for free by visiting
XXXXX on the SEC Web site at xxx.xxx.xxx. Alternatively, the issuer, any underwriter or any dealer
participating in the offering will arrange to send you the prospectus if you request it by calling
Xxxxxxx, Xxxxx & Co. toll-free at 0-000-000-0000 or by calling Xxxxxxx Lynch, Pierce, Xxxxxx &
Xxxxx Incorporated toll-free at 0-000-000-0000.
Schedule 4
In relation to each Member State of the European Economic Area which has implemented the
Prospectus Directive (each, a “Relevant Member State”), each Underwriter has represented and agreed
that, with effect from and including the date on which the Prospectus Directive is implemented in
that Relevant Member State (the “Relevant Implementation Date”), it has not made and will not make
an offer of the Securities to the public in that Relevant Member State prior to the publication of
a prospectus in relation to the Securities which has been approved by the competent authority in
that Relevant Member State or, where appropriate, approved in another Relevant Member State and
notified to the competent authority in that Relevant Member State, all in accordance with the
Prospectus Directive, except that it may, with effect from and including the Relevant
Implementation Date, make an offer of the Securities to the public in that Relevant Member State at
any time: (a) to legal entities which are authorized or regulated to operate in the financial
markets or, if not so authorized or regulated, whose corporate purpose is solely to invest in
securities; (b) to any legal entity which has two or more of (1) an average of at least 250
employees during the last financial year, (2) a total balance sheet of more than €43,000,000 and
(3) an annual net turnover of more than €50,000,000, as shown in its last annual or consolidated
accounts; (c) to investors with the minimum total consideration per investor of €50,000; (d) to
fewer than 100 natural or legal persons (other than qualified investors as defined in the
Prospectus Directive) subject to obtaining the prior consent of the representatives for any such
offer; or (e) in any other circumstances which do not require the publication by the issuer of a
prospectus pursuant to Article 3 of the Prospectus Directive.
For the purposes of this provision, the expression an “offer of the Securities to the public”
in relation to any Securities in any Relevant Member State means the communication in any form and
by any means of sufficient information on the terms of the offer and the Securities to be offered
so as to enable an investor to decide to purchase or subscribe for the Securities, as the same may
be varied in that Relevant Member State by any measure implementing the Prospectus Directive in
that Relevant Member State, and the expression “Prospectus Directive” means Directive 2003/71/EC
and includes any relevant implementing measure in each Relevant Member State.
Each Underwriter has represented and agreed that: (a) it has only communicated or caused to be
communicated and will only communicate or cause to be communicated an invitation or inducement to
engage in investment activity (within the meaning of Section 21 of the Financial Services and
Markets Act (the “FSMA”)) received by it in connection with the issue or sale of the Securities in
circumstances in which Section 21(1) of the FSMA does not apply to the issuer; and (b) it has
complied and will comply with all applicable provisions of the FSMA with respect to anything done
by it in relation to the Securities in, from or otherwise involving the United Kingdom.
The Securities may not be offered or sold by means of any document other than (i) in
circumstances which do not constitute an offer to the public within the meaning of the Companies
Ordinance (Cap.32, Laws of Hong Kong), or (ii) to “professional investors” within the meaning of
the Securities and Futures Ordinance (Cap.571, Laws of Hong Kong) and any rules made thereunder, or
(iii) in other circumstances which do not result in the document being
a “prospectus” within the meaning of the Companies Ordinance (Cap.32, Laws of Hong Kong), and no
advertisement, invitation or document relating to the Securities may be issued or may be in the
possession of any person for the purpose of issue (in each case whether in Hong Kong or elsewhere),
which is directed at, or the contents of which are likely to be accessed or read by, the public in
Hong Kong (except if permitted to do so under the laws of Hong Kong) other than with respect to
Securities which are or are intended to be disposed of only to persons outside Hong Kong or only to
“professional investors” within the meaning of the Securities and Futures Ordinance (Cap. 571, Laws
of Hong Kong) and any rules made thereunder.
The Securities have not been and will not be registered under the Securities and Exchange Law
of Japan (the Securities and Exchange Law) and each Underwriter has agreed that it will not offer
or sell any securities, directly or indirectly, in Japan or to, or for the benefit of, any resident
of Japan (which term as used herein means any person resident in Japan, including any corporation
or other entity organized under the laws of Japan), or to others for re-offering or resale,
directly or indirectly, in Japan or to a resident of Japan, except pursuant to an exemption from
the registration requirements of, and otherwise in compliance with, the Securities and Exchange Law
and any other applicable laws, regulations and ministerial guidelines of Japan.
Neither the Preliminary Prospectus nor the Prospectus has been registered as a prospectus with
the Monetary Authority of Singapore. Accordingly, the Preliminary Prospectus, the Prospectus and
any other document or material in connection with the offer or sale, or invitation for subscription
or purchase, of the Securities may not be circulated or distributed, nor may the Securities be
offered or sold, or be made the subject of an invitation for subscription or purchase, whether
directly or indirectly, to persons in Singapore other than (i) to an institutional investor under
Section 274 of the Securities and Futures Act, Chapter 289 of Singapore (the “SFA”), (ii) to a
relevant person, or any person pursuant to Section 275(1A), and in accordance with the conditions,
specified in Section 275 of the SFA or (iii) otherwise pursuant to, and in accordance with the
conditions of, any other applicable provision of the SFA.
Where the Securities are subscribed or purchased under Section 275 by a relevant person which
is: (a) a corporation (which is not an accredited investor) the sole business of which is to hold
investments and the entire share capital of which is owned by one or more individuals, each of whom
is an accredited investor; or (b) a trust (where the trustee is not an accredited investor) whose
sole purpose is to hold investments and each beneficiary is an accredited investor, shares,
debentures and units of shares and debentures of that corporation or the beneficiaries’ rights and
interest in that trust shall not be transferable for 6 months after that corporation or that trust
has acquired the notes under Section 275 except: (1) to an institutional investor under Section 274
of the SFA or to a relevant person, or any person pursuant to Section 275(1A), and in accordance
with the conditions, specified in Section 275 of the SFA; (2) where no consideration is given for
the transfer; or (3) by operation of law.
EXHIBIT A-1
Form of Xxxxxxx Xxxxxxx corporate opinion
May 13, 2008
Xxxxxxx, Sachs & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
As Representatives of the several
Underwriters listed in Schedule 1
to the Underwriting Agreement
referred to below
Underwriters listed in Schedule 1
to the Underwriting Agreement
referred to below
c/o Goldman, Sachs & Co.
0 Xxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
0 Xxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Incorporated
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
We have acted as counsel to The Travelers Companies, Inc., a Minnesota corporation (the
“Company”), in connection with the purchase by you of $500,000,000 aggregate principal amount of
5.800% Senior Notes due 2018 (the “Notes”) issued by the Company pursuant to the Underwriting
Agreement dated May 8, 2008 between the Company and you (the “Underwriting Agreement”).
We have examined the Registration Statement on Form S-3 (File No. 333-130323) (the
“Registration Statement”) filed by the Company under the Securities Act of 1933, as amended (the
“Securities Act”), as it became effective under the Securities Act; Post-Effective Amendment No. 1
to the Registration Statement filed by the Company under the Securities Act, as it became effective
under the Securities Act (“Post-Effective Amendment No. 1”); the Company’s prospectus dated March
5, 2007 (the “Base Prospectus”), as supplemented by the
prospectus supplement dated May 8, 2008 (the “Prospectus Supplement” and, together with the
Base Prospectus, the “Prospectus”), filed by the Company pursuant to Rule 424(b) of the rules and
regulations of the Securities and Exchange Commission (the “Commission”) under the Securities Act,
which pursuant to Form S-3 incorporates by reference or is deemed to incorporate by reference the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and the Company’s
Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008 (collectively, the
“Exchange Act Documents”), each as filed under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”); the Company’s preliminary prospectus supplement dated May 8, 2008 (the
“Preliminary Prospectus Supplement” and, together with the Base Prospectus, the “Preliminary
Prospectus”), filed by the Company pursuant to Rule 424(b) of the rules and regulations of the
Commission under the Securities Act, which pursuant to Form S-3 incorporates by reference or is
deemed to incorporate by reference the Exchange Act Documents; the final term sheet dated May 8,
2008 and filed on May 8, 2008, by the Company pursuant to Rule 433 of the rules and regulations of
the Commission under the Securities Act (the “Final Term Sheet”, and, together with the Preliminary
Prospectus, the “Pricing Disclosure Package”); the Indenture dated as of March 12, 2002 (the
“Indenture”) between the Company and The Bank of New York Trust Company, N.A. (as successor to
JPMorgan Chase Bank), as trustee (the “Trustee”), relating to the Notes; copies of the global notes
representing the Notes; and the Underwriting Agreement. In addition, we have examined, and have
relied as to matters of fact upon, the documents delivered to you at the closing and upon
originals, or duplicates or certified or conformed copies, of such corporate records, agreements,
documents and other instruments and such certificates or comparable documents of public officials
and of officers and representatives of the Company and have made such other investigations, as we
have deemed relevant and necessary in connection with the opinions hereinafter set forth.
In such examination, we have assumed the genuineness of all signatures, the legal capacity of
natural persons, the authenticity of all documents submitted to us as originals, the conformity to
original documents of all documents submitted to us as duplicates or certified or conformed copies
and the authenticity of the originals of such latter documents.
Based upon the foregoing, and subject to the qualifications, assumptions and limitations
stated herein, we are of the opinion that:
1. The Underwriting Agreement has been duly authorized, executed and delivered by the
Company.
2. The Indenture has been duly authorized, executed and delivered by the Company and
duly qualified under the Trust Indenture Act and, assuming that the Indenture is the valid
and legally binding obligation of the Trustee, the Indenture constitutes a valid and legally
binding obligation of the Company enforceable against the Company in accordance with its
terms.
3. The Notes have been duly authorized, executed and issued by the Company and,
assuming due authentication thereof by the Trustee and upon payment and delivery in
accordance with the Underwriting Agreement, will constitute valid and legally binding
obligations of the Company enforceable against the Company in accordance with their terms
and entitled to the benefits of the Indenture.
4. The statements made in the Pricing Disclosure Package and in the Prospectus in each
case under the captions “Description of the Senior Notes”, “Underwriting” and “Description
of Debt Securities We May Offer”, insofar as they purport to constitute summaries of certain
terms of documents referred to therein, constitute accurate summaries of the terms of such
documents in all material respects.
5. Subject to the qualifications, assumptions and limitations set forth therein, the
statements made in the Preliminary Prospectus Supplement and in the Prospectus Supplement in
each case under the caption “Certain U.S. Federal Income Tax Consequences,” insofar as they
purport to constitute summaries of matters of United States federal tax law and regulations
or legal conclusions with respect thereto, constitute accurate summaries of the matters
described therein in all material respects.
6. Subject to the qualifications, assumptions and limitations set forth therein, the
statements made in the Preliminary Prospectus Supplement and in the Prospectus Supplement in
each case under the caption “Certain ERISA Considerations,” insofar as they purport to
constitute summaries of matters of United States federal law and regulations or legal
conclusions with respect thereto, constitute accurate summaries of the matters described
therein in all material respects.
7. The issue and sale of the Notes by the Company and the execution, delivery and
performance by the Company of the Underwriting Agreement will not breach or result in a
default under any indenture, mortgage, deed of trust, loan agreement or other agreement or
instrument filed or incorporated by reference as an exhibit to the Exchange Act Documents,
nor will such action violate any federal or New York State statute or any rule or regulation
that has been issued pursuant to any federal or New York State statute or any order known to
us issued pursuant to any federal or New York State statute by any court or governmental
agency or body having jurisdiction over the Company or any of its Significant Subsidiaries
listed in the schedule attached hereto or any of their properties.
8. No consent, approval, authorization, order, registration or qualification of or with
any federal or New York governmental agency or body or, to our knowledge, any federal or New
York court is required for the issue and sale of the Notes by the Company, and the
compliance by the Company with all of the provisions of the Underwriting Agreement and the
Indenture, except for the registration under the Securities Act of the Notes, and 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 Notes by you.
9. Post-Effective Amendment No. 1 has become effective under the Securities Act, the
Final Term Sheet was filed on May 8, 2008 pursuant to Rule 433 of the rules and regulations
of the Commission under the Securities Act and the Prospectus was filed on May 8, 2008
pursuant to Rule 424(b) of the rules and regulations of the Commission under the Securities
Act and, to our knowledge, no stop order suspending the effectiveness of Post-Effective
Amendment No. 1 has been issued or proceeding for that purpose has been instituted or
threatened by the Commission.
10. The Company is not and, after the application of the proceeds of the offering as
described under “Use of Proceeds” in the Pricing Disclosure Package and the Prospectus, will
not be, an “investment company” within the meaning of and subject to regulation under the
Investment Company Act of 1940, as amended.
Our opinions set forth in paragraphs 2 and 3 above are subject to (i) the effects of
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, (ii) general equitable principles (whether
considered in a proceeding in equity or at law) and (iii) an implied covenant of good faith and
fair dealing. In addition, we express no opinion with respect to any matters subject to any
insurance laws of the State of New York or the rules and regulations promulgated thereunder; or the
validity, legally binding effect or enforceability of Section 110 of the Indenture relating to the
separability of provisions of the Indenture.
Insofar as the opinions expressed herein relate to or are dependent upon matters governed by
the law of the State of Minnesota, we have relied upon the opinion letter, dated the date hereof,
of Xxxxx X. Xxxxxxxx, Esq., Senior Vice President and Corporate Secretary of the Company, rendered
to you.
We do not express any opinion herein concerning any law other than the law of the State of New
York, the federal law of the United States and, to the extent set forth herein, the law of the
State of Minnesota.
This opinion letter is rendered to you in connection with the above-described transaction.
This opinion letter may not be relied upon by you for any other purpose, or relied upon by, or
furnished to, any other person, firm or corporation without our prior written consent, except that
Xxxxx X. Xxxxxxxx, Esq. may rely on this opinion letter for purposes of his above-referenced
opinion dated the date hereof and the Trustee may rely on paragraphs 2 and 3 of this opinion
subject to the qualifications, assumptions and limitations relating thereto.
Very truly yours,
XXXXXXX XXXXXXX & XXXXXXXX LLP
Schedule
Significant Subsidiaries
St. Xxxx Fire and Marine Insurance Company (MN)
The Travelers Indemnity Company (CT)
Travelers Casualty and Surety Company (CT)
Travelers Insurance Group Holdings Inc. (DE)
Travelers Property Casualty Corp. (CT)
EXHIBIT A-2
Form of Xxxxxxx Xxxxxxx 10b-5 letter
May 13, 2008
Xxxxxxx, Sachs & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
As Representatives of the several
Underwriters listed in Schedule 1
to the Underwriting Agreement
referred to below
Underwriters listed in Schedule 1
to the Underwriting Agreement
referred to below
c/o Goldman, Sachs & Co.
0 Xxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
0 Xxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Incorporated
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
We have acted as counsel to The Travelers Companies, Inc., a Minnesota corporation (the
“Company”), in connection with the purchase by you of $500,000,000 aggregate principal amount of
5.800% Senior Notes due 2018 (the “Notes”) issued by the Company pursuant to the Underwriting
Agreement dated May 8, 2008 between the Company and you (the “Underwriting Agreement”).
We have not independently verified the accuracy, completeness or fairness of the statements
made or included in the Registration Statement on Form S-3 (File No. 333-130323) (the “Registration
Statement”) filed by the Company under the Securities Act of 1933, as amended (the “Securities
Act”), Post-Effective Amendment No. 1 to the Registration Statement (“Post-Effective Amendment No.
1”) filed by the Company under the Securities Act, the
Company’s prospectus dated March 5, 2007 (the “Base Prospectus”), as supplemented by the
prospectus supplement dated May 8, 2008 (the “Final Prospectus Supplement” and, together with the
Base Prospectus, the “Prospectus”), filed by the Company pursuant to Rule 424(b) of the rules and
regulations of the Securities and Exchange Commission (the “Commission”) under the Securities Act,
the Company’s preliminary prospectus supplement dated May 8, 2008 (the “Preliminary Prospectus
Supplement” and, together with the Base Prospectus, the “Preliminary Prospectus”), filed by the
Company pursuant to Rule 424(b) of the rules and regulations of the Commission under the Securities
Act, the final term sheet dated May 8, 2008 and filed on May 8, 2008, by the Company pursuant to
Rule 433 of the rules and regulations of the Commission under the Securities Act (such final term
sheet, together with the Preliminary Prospectus, the “Pricing Disclosure Package”), or in the
Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 or the Company’s
Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008 (collectively, the
“Exchange Act Documents”), each as filed under the Securities Exchange Act of 1934, as amended, and
incorporated or deemed incorporated by reference in Post-Effective Amendment No. 1, the Preliminary
Prospectus and the Prospectus, and we take no responsibility therefor, except as and to the extent
set forth in numbered paragraphs 4, 5 and 6 of our opinion letter to you dated the date hereof.
In connection with, and under the circumstances applicable to, the offering of the Notes, we
participated in conferences with certain officers and employees of the Company, representatives of
KPMG LLP, your representatives and your counsel in the course of the preparation by the Company of
the Registration Statement, Post-Effective Amendment No. 1, the Prospectus and the documents
comprising the Pricing Disclosure Package and also reviewed certain corporate and other records and
documents furnished to us by the Company, as well as
the documents delivered to you at the closing. We also reviewed the Exchange Act Documents
prior to their filing with the Commission. Based upon our review of the Registration Statement,
Post-Effective Amendment No. 1, the Prospectus, the Pricing Disclosure Package and the Exchange Act
Documents, our participation in the conferences referred to above, our review of the corporate and
other records and documents as described above, as well as our understanding of the U.S. federal
securities laws and the experience we have gained in our practice thereunder:
(i) | we advise you that each of Post-Effective Amendment No. 1, as of the date it first became effective under the Securities Act, and the Prospectus, as of May 8, 2008, appeared, on its face, to be appropriately responsive, in all material respects, to the requirements of the Securities Act and the applicable rules and regulations of the Commission thereunder, except that in each case we express no view with respect to the financial statements or other financial data contained in, incorporated or deemed incorporated by reference in, or omitted from Post-Effective Amendment No. 1, the Prospectus or the Exchange Act Documents; and | ||
(ii) | nothing has come to our attention that causes us to believe that (a) Post-Effective Amendment No. 1 (including the Exchange Act Documents and the Prospectus deemed to be a part thereof), as of May 8, 2008, contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading, (b) the Pricing Disclosure Package (including the Exchange Act Documents incorporated or deemed incorporated by reference therein), as of the Applicable Time (as defined in the Underwriting Agreement), contained any untrue statement of a material fact or omitted to state any material fact necessary in order to make the |
statements therein, in the light of the circumstances under which they were made, not misleading, or (c) the Prospectus (including the Exchange Act Documents incorporated or deemed incorporated by reference therein), as of May 8, 2008 or as of the date hereof, contained or contains any untrue statement of a material fact or omitted or omits 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, except that we express no belief in any of clauses (a), (b) or (c) above with respect to the financial statements or other financial data contained in, incorporated or deemed incorporated by reference in, or omitted from Post-Effective Amendment No. 1, the Pricing Disclosure Package, the Prospectus or the Exchange Act Documents. |
This letter is delivered to you in connection with the above-described transaction. This
letter may not be relied upon by you for any other purpose, or relied upon by, or furnished to, any
other person, firm or corporation.
Very truly yours,
XXXXXXX XXXXXXX & XXXXXXXX LLP
EXHIBIT B
Form of Xxxxx Xxxxxxxx’x corporate opinion
May 13, 2008
Xxxxxxx, Xxxxx & Co.
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
As Representatives of the several
Underwriters listed in Schedule 1
to the Underwriting Agreement
referred to below
Underwriters listed in Schedule 1
to the Underwriting Agreement
referred to below
c/o Goldman, Sachs & Co.
0 Xxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
0 Xxx Xxxx Xxxxx
Xxx Xxxx, XX 00000
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated
Incorporated
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
I have acted as counsel to The Travelers Companies, Inc., a Minnesota corporation (the
“Company”), in connection with the purchase by you of $500,000,000 aggregate principal
amount of 5.800% Senior Notes due 2018 (the “Notes”) issued by the Company pursuant to the
Underwriting Agreement dated May 8, 2008 between the Company and you (the “Underwriting
Agreement”).
The Company has filed a Registration Statement on Form S-3 (File No. 333-130323) (the
“Registration Statement”) and Post-Effective Amendment No. 1 to the Registration Statement
under the Securities Act of 1933, as amended (“Post-Effective Amendment No. 1”), including
a prospectus dated March 5, 2007 (the “Base Prospectus”), as supplemented by the
preliminary prospectus supplement dated May 8, 2008 (together with the Base Prospectus, the
“Preliminary Prospectus”) and the final prospectus supplement dated May 8, 2008 (together
with the Base Prospectus, the “Prospectus”). The Notes are being issued pursuant to an
Indenture dated as of March 12, 2002 (the “Indenture”) between the Company and The Bank of
New York Trust Company, N.A. (as successor to JPMorgan Chase Bank), as trustee.
In connection with this opinion, I, or lawyers on the Company’s legal staff working under my
supervision, have (i) investigated such questions of law, (ii) examined such corporate documents
and records of the Company, certificates of public officials and other documents, and (iii)
received such information from officers and representatives of the Company as I have deemed
necessary for the purpose of this opinion. I have made no independent investigation as to the
information contained in such documents, records and certificates. In rendering my opinion, I have
assumed the authenticity of all documents submitted to me as originals and the conformity to
original documents of all documents submitted to me as copies.
In such examination, I have assumed but have not verified (a) the genuineness of the
signatures of persons signing all documents and instruments in connection with which this opinion
is rendered other than on behalf of the Company; (b) the legal capacity of natural persons; (c) the
authenticity of all documents submitted to me as originals; (d) the conformity to original
documents of all documents submitted to me as duplicates or certified or conformed copies; (e) the
authenticity of the originals of such latter documents; (f) the authority of such persons signing
all documents on behalf of the parties thereto other than the Company; and (g) the due
authorization, execution and delivery of all documents by the parties thereto other than the
Company.
Based upon the foregoing, and subject to the qualifications, assumptions and limitations
stated herein, it is my opinion that:
11. The Company has been duly incorporated and is a validly existing corporation in
good standing as a corporation under the laws of the State of Minnesota and has full
corporate power and authority to own, lease and operate its properties and to conduct its
business as described in the Preliminary Prospectus and the Prospectus.
2. The Underwriting Agreement has been duly authorized, executed and delivered by the
Company.
3. The issue and sale of the Notes and the execution, delivery and performance by the
Company of the Underwriting Agreement will not violate the Articles of Incorporation or
By-laws of the Company or any Minnesota statute or any rule or regulation known to me that
has been issued pursuant to any Minnesota statute or any order known to me issued pursuant
to any Minnesota statute by any court or governmental agency or body having jurisdiction
over the Company or any of the
Significant Subsidiaries of the Company, listed in a schedule attached hereto, or any
of their properties.
4. The Indenture has been duly authorized, executed and delivered by the Company.
5. The Notes have been duly authorized, executed and delivered by the Company.
6. No consent, approval, authorization, order, registration or qualification of or with
any Minnesota governmental agency or body or, to my knowledge, any Minnesota court is
required for the issue and sale of the Notes by the Company, and the compliance by the
Company with all of the provisions of the Underwriting Agreement and the Indenture, except
for 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 Notes by you.
I am a member of the Bar of the State of Minnesota, and do not express any opinion herein
concerning any law other than the law of the State of Minnesota and the federal law of the United
States.
This opinion is being rendered to you pursuant to Section 6(e) of the Underwriting Agreement
and may not be relied upon by you for any other purpose, or relied upon by, or furnished to, any
other person, firm or corporation without my prior written consent, except that Xxxxxxx Xxxxxxx &
Xxxxxxxx LLP may rely on this opinion for purposes of its opinion furnished to you pursuant to the
Underwriting Agreement subject to the qualifications, assumptions and limitations relating thereto.
Very truly yours,
Xxxxx X. Xxxxxxxx
Senior Vice President
and Corporate Secretary
Senior Vice President
and Corporate Secretary
Schedule
Significant Subsidiaries
St. Xxxx Fire and Marine Insurance Company (MN)
The Travelers Indemnity Company (CT)
Travelers Casualty and Surety Company (CT)
Travelers Insurance Group Holdings Inc. (DE)
Travelers Property Casualty Corp. (CT)