WESCO Distribution/WESCO International S-1
As filed with the Securities and Exchange Commission on
April 20, 2006
Registration
No. 333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form S-1
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
WESCO INTERNATIONAL, INC.
(exact name of registrant as specified in its charter)
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Delaware |
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5063 |
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25-1723342 |
(state or other jurisdiction of
incorporation or organization) |
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(Primary Standard Industrial
Classification Code) |
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(I.R.S. employer
identification no.) |
WESCO DISTRIBUTION, INC.
(exact name of registrant as specified in its charter)
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Delaware |
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5063 |
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25-1723345 |
(state or other jurisdiction of
incorporation or organization) |
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(Primary Standard Industrial
Classification Code) |
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(I.R.S. employer
identification no.) |
225 West Station Square Drive
Suite 700
Pittsburgh, Pennsylvania 15219
(412) 454-2200
(Address, including zip code, and telephone number, including
area code, of registrants principal executive offices)
Stephen A. Van Oss
Senior Vice President and
Chief Financial and Administrative Officer
WESCO International, Inc.
225 West Station Square Drive
Suite 700
Pittsburgh, Pennsylvania 15219
(412) 454-2200
(Name, address, including zip code, and telephone number,
including area code, of agent for service)
With a Copy to:
Michael C. McLean
Kirkpatrick & Lockhart Nicholson Graham LLP
Henry W. Oliver Building
535 Smithfield Street
Pittsburgh, Pennsylvania 15222
(412) 355-6500
Approximate date of commencement of proposed sale to the
public: As soon as practicable after this registration
statement becomes effective.
If any of the securities being registered on this Form are to be
offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act, check the following
box: þ
If this Form is filed to register additional securities for an
offering pursuant to Rule 462(b) under the Securities Act,
check the following box and list the Securities Act registration
statement number of the earlier effective registration statement
for the same
offering. o
If this Form is a post-effective amendment filed pursuant to
Rule 462(c) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering. o
If this Form is a post-effective amendment filed pursuant to
Rule 462(d) under the Securities Act, check the following
box and list the Securities Act registration statement number of
the earlier effective registration statement for the same
offering. o
CALCULATION OF REGISTRATION FEE
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Proposed Maximum |
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Proposed Maximum |
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Amount of |
Title of Each Class of |
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Amount to be |
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Aggregate Price |
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Aggregate Offering |
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Registration |
Securities to be Registered |
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Registered |
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Per Unit(1) |
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Price(1) |
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Fee |
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2.625% Convertible Senior Debentures due 2025
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$150,000,000 |
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100% |
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$150,000,000 |
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$16,050 |
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Guarantee(2)
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(3) |
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(3) |
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(3) |
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(3) |
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Common stock, $.01 per share(4)
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(5) |
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(5) |
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(5) |
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(5) |
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(1) |
Estimated solely for the purpose of calculating the registration
fee pursuant to Rule 457 under the Securities Act of 1933,
as amended, based on 100% of the aggregate principal amount of
the 2.625% Convertible Senior Debentures due 2025. |
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(2) |
Guarantee by WESCO Distribution, Inc. of WESCO International,
Inc.s 2.625% Convertible Senior Debentures due 2025. |
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(3) |
No separate registration fee is payable for the guarantee of
WESCO Distribution, Inc. pursuant to Rule 457(n) under the
Securities Act. |
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(4) |
Includes 3,583,080 shares of common stock of WESCO
International, Inc. issuable upon conversion of the
2.625% Convertible Senior Debentures due 2025 at the
initial conversion rate of 23.8872 shares per $1,000
principal amount of the 2.625% Convertible Senior
Debentures due 2025. Under Rule 416 under the Securities
Act, the number of shares of common stock registered includes an
indeterminate number of shares of common stock that may be
issued in connection with stock splits, stock dividends,
reorganizations or similar events. |
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(5) |
No separate registration fee is payable for the common stock of
WESCO International, Inc. pursuant to Rule 457(i) under the
Securities Act. |
The Registrants hereby amend this Registration Statement on such
date or dates as may be necessary to delay its effective date
until the Registrants shall file a further amendment that
specifically states that this Registration Statement shall
thereafter become effective in accordance with Section 8(a)
of the Securities Act of 1933 or until the Registration
Statement shall become effective on such date as the Commission,
acting pursuant to said Section 8(a), may determine.
The information in this prospectus is not
complete and may be changed. A registration statement relating
to these securities has been filed with the Securities and
Exchange Commission. These securities may not be sold nor may
offers to buy be accepted prior to the time the registration
statement becomes effective. This prospectus is not an offer to
sell these securities nor a solicitation of an offer to buy
these securities in any jurisdiction where the offer or sale is
not permitted.
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SUBJECT TO COMPLETION, DATED
APRIL 20, 2006
PRELIMINARY PROSPECTUS
WESCO International, Inc.
2.625% Senior Convertible Debentures due 2025
On September 27, 2005, WESCO International, Inc. issued
$150.0 million aggregate principal amount of
2.625% Convertible Senior Debentures due 2025 in a private
offering. Payment of all principal and interest (including
contingent interest or additional interest, if any) payable on
the Debentures is unconditionally guaranteed by WESCO
Internationals subsidiary, WESCO Distribution, Inc. The
Debentures are senior unsecured obligations of WESCO
International, and the guarantee is an unsecured senior
subordinated obligation of WESCO Distribution. This prospectus
covers resales from time to time by selling securityholders of
any or all of their Debentures, including the related guarantee,
and shares of common stock of WESCO International into which the
Debentures are convertible. We will not receive any proceeds
from the resale by the selling securityholders of the Debentures
or the shares of common stock hereunder.
The Debentures are convertible, at your option, into cash and
shares of our common stock initially based on a conversion rate
of 23.8872 shares (equivalent to an initial conversion
price of approximately $41.86 per share), subject to
adjustment as described in this prospectus, at any time on or
prior to the close of business on the trading day immediately
preceding the maturity date, only under the circumstances
described in this prospectus.
Upon conversion, we will pay cash and shares of our common
stock, if any, based on a daily conversion value (as described
herein) calculated on a proportionate basis for each day of the
20 trading-day cash settlement averaging period. See
Description of the Debentures Conversion
Rights Settlement Upon Conversion. In the
event of certain types of fundamental changes, we will increase
the number of shares issuable upon conversion or, in lieu
thereof, we may elect to adjust the conversion obligation and
conversion rate so that the Debentures are convertible into
shares of the acquiring or surviving company, in each case as
described in this prospectus.
The Debentures bear interest at a rate of 2.625% per year.
Beginning with the six-month period commencing October 15,
2010, we will also pay contingent interest during any six-month
interest period in which the trading price of the Debentures,
measured over a specified number of trading days preceding the
applicable six-month interest period, is 120% or more of the
principal amount of the Debentures. Interest on the Debentures
is payable on April 15 and October 15 of each year, beginning on
April 15, 2006. The Debentures will mature on
October 15, 2025.
The Debentures are subject to special U.S. federal income
tax rules. For a discussion of the special tax regulations
governing contingent payment debt instruments, see Certain
U.S. Federal Income and Estate Tax Considerations.
We may redeem some or all of the Debentures on or after
October 15, 2010, for cash at a redemption price equal to
100% of the principal amount plus accrued and unpaid interest
(including contingent interest or additional interest, if any).
You may require us to repurchase all or a portion of your
Debentures on October 15, 2010, October 15, 2015 and
October 15, 2020 at a cash repurchase price equal to 100%
of the principal amount plus accrued and unpaid interest
(including contingent interest or additional interest, if any).
In addition, you may require us to repurchase all or a portion
of your Debentures upon a fundamental change at a cash
repurchase price equal to 100% of the principal amount plus
accrued and unpaid interest (including contingent interest or
additional interest, if any).
Our common stock is listed on The New York Stock Exchange under
the ticker symbol WCC. The last reported sale price
of our common stock on April 19, 2006 was $74.97 per
share.
We do not intend to apply for listing of the Debentures on any
securities exchange or for inclusion of the Debentures in any
automated quotation system. The Debentures originally issued in
the private offering are eligible for trading on The
PORTALsm
Market of the National Association of Securities Dealers, Inc.
However, the Debentures sold pursuant to this prospectus will no
longer be eligible for trading in The
PORTALsm
Market of the National Association of Securities Dealers, Inc.
The Debentures, including the related guarantee, and the common
stock may be sold from time to time by the selling
securityholders named in this prospectus through public or
private transactions, at prevailing market prices or at
privately negotiated prices, either directly or through agents
or broker-dealers acting as principal or agent. The selling
securityholders may engage underwriters, brokers, dealers or
agents, who may receive commissions or discounts from the
selling securityholders. We will pay substantially all of the
expenses incident to the registration of the Debentures,
including the related guarantee, and shares of our common stock,
except for the selling commissions, if any. See Plan of
Distribution.
Investing in the Debentures or our common stock involves
risks. See Risk Factors beginning on
page 3.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE
SECURITIES OR DETERMINED THAT THIS PROSPECTUS IS TRUTHFUL OR
COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
THE DATE OF THIS PROSPECTUS
IS ,
2006.
TABLE OF CONTENTS
WESCO International, Inc. and WESCO Distribution, Inc., a wholly
owned subsidiary of WESCO International, each are a Delaware
corporations incorporated in 1993. The principal executive
offices of WESCO International and WESCO Distribution are each
located at 225 West Station Square Drive, Suite 700,
Pittsburgh, Pennsylvania 15219, and the telephone number at that
address is (412) 454-2200. Our website is located at
www.wesco.com. The information in our website is not part of
this prospectus.
We currently have trademarks and service marks registered with
the U.S. Patent and Trademark Office. The registered
trademarks and service marks include:
WESCO®,
our corporate logo, the running man logo, the running man in box
logo and The Extra Effort
People®.
In 2005, two trademarks, CB Only the Best is Good
Enough and LADD, were added as a result of the
acquisition of Carlton-Bates Company. Certain of these and other
trademark and service mark registration applications have been
filed in various foreign jurisdictions, including Canada,
Mexico, the United Kingdom, Singapore and the European Community.
Neither WESCO Distribution, WESCO International nor any of their
respective representatives are making any representation to you
regarding the legality of an investment by you under applicable
laws. You should consult with your own advisors as to legal,
tax, business, financial and related aspects of an investment in
the Debentures or our common stock.
In making an investment decision, you must rely on your own
examination of our business and the terms of the exchange offer,
including the merits and risks involved. No person has been
authorized to give any information or any representation
concerning us, the Debentures, including the related guarantee,
or our common stock (other than as contained in this
prospectus), and, if given or made, that other information or
representation should not be relied upon as having been
authorized by us. Neither WESCO International, WESCO
Distribution nor any of their respective representatives are
making an offer to sell these securities in any jurisdiction
where the offer is not permitted. You should not assume that the
information contained in this prospectus is accurate as of any
date other than the date on the front cover of this prospectus.
i
FORWARD-LOOKING INFORMATION
This prospectus contains various forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements involve certain
unknown risks and uncertainties, including, among others, those
contained in our Annual Report on
Form 10-K for our
fiscal year ended December 31, 2005, which is incorporated
by reference in this prospectus, under Item 1,
Business, Item 1A, Risk Factors,
and Item 7, Managements Discussion and Analysis
of Financial Condition and Results of Operations. When
used in this prospectus, the words anticipates,
plans, believes, estimates,
intends, expects, projects,
will and similar expressions may identify
forward-looking statements, although not all forward-looking
statements contain such words. Such statements, including, but
not limited to, our statements regarding business strategy,
growth strategy, productivity and profitability enhancement,
competition, new product and service introductions and liquidity
and capital resources are based on managements beliefs, as
well as on assumptions made by and information currently
available to, management, and involve various risks and
uncertainties, some of which are beyond our control. Our actual
results could differ materially from those expressed in any
forward-looking statement made by or on our behalf. In light of
these risks and uncertainties, there can be no assurance that
the forward-looking information will in fact prove to be
accurate. We have undertaken no obligation to publicly update or
revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
WESCO INTERNATIONAL, INC.
With sales of $4.4 billion in 2005, we are a leading North
American provider of electrical construction products and
electrical and industrial maintenance, repair and operating
supplies, commonly referred to as MRO. We believe we
are the largest distributor in terms of sales in the estimated
$74 billion*
U.S. electrical wholesale distribution industry based upon
published industry sources and our assessment of peer company
2005 sales. We believe we are also the largest provider of
integrated supply services for MRO goods and services in the
United States.
Our distribution capability combined with integrated supply
solutions and outsourcing services are designed to fulfill a
customers MRO procurement needs. We have more than 370
full service branches and eight distribution centers located in
the United States, Canada, Mexico, Puerto Rico, Guam, the
United Kingdom, Nigeria, United Arab Emirates and
Singapore. We serve approximately 100,000 customers worldwide,
offering more than 1,000,000 products from more than 24,000
suppliers utilizing a highly automated, proprietary electronic
procurement and inventory replenishment system. Our diverse
customer base includes a wide variety of industrial companies;
contractors for industrial, commercial and residential projects;
utility companies; and commercial, institutional and
governmental customers. Our top ten customers accounted for
approximately 14% of our sales in 2005. Our leading market
positions, experienced workforce, extensive geographic reach,
broad product and service offerings and acquisition program have
enabled us to grow our market position.
* Source: Electrical wholesale estimated industry sales per
Electrical Wholesaling (November, 2005) based upon
revised U.S. Census Bureau Survey segregating electrical
wholesale vs. electrical retail sales. Electrical
Wholesalings 2004 estimated industry sales of
$83 billion had aggregated $67 billion wholesale
and $16 billion retail sales.
ii
SUMMARY CONSOLIDATED FINANCIAL DATA
The table below sets forth certain of our historical
consolidated financial data as of and for each of the periods
indicated. The financial information for the years ended
December 31, 2003, 2004 and 2005, and as of
December 31, 2004 and 2005, is derived from our audited
consolidated financial statements, which are incorporated by
reference in this prospectus. The financial information as of
December 31, 2003 is derived from our audited consolidated
financial statements, which do not appear and are not
incorporated by reference in this prospectus. The data below
should be read in conjunction with Managements
Discussion and Analysis of Financial Condition and Results of
Operations and our audited consolidated financial
statements and the notes thereto, which are incorporated by
reference in this prospectus.
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Year Ended December 31, | |
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2003 | |
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2004 | |
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2005 | |
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(In millions, except share and per share data) | |
Income Statement Data:
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Net sales
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$ |
3,286.8 |
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$ |
3,741.3 |
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$ |
4,421.1 |
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Gross profit(1)
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610.1 |
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712.1 |
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840.7 |
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Selling, general and administrative expenses
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501.5 |
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544.5 |
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612.8 |
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Depreciation and amortization
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22.5 |
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18.1 |
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18.6 |
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Income from operations
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86.1 |
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149.5 |
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209.3 |
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Interest expense, net
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42.3 |
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40.8 |
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30.2 |
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Loss on debt extinguishment(2)
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0.2 |
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2.6 |
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14.9 |
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Other expenses(3)
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4.5 |
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6.6 |
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13.3 |
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Income before income taxes
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39.1 |
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99.5 |
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150.9 |
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Provision for income taxes(4)
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9.1 |
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34.6 |
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47.4 |
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Net income
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$ |
30.0 |
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$ |
64.9 |
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$ |
103.5 |
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Earnings per common share
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Basic
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$ |
0.67 |
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$ |
1.55 |
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$ |
2.20 |
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Diluted
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0.65 |
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1.47 |
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2.10 |
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Weighted average common shares outstanding
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Basic
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44,631,459 |
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41,838,034 |
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47,085,524 |
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Diluted
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46,349,082 |
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44,109,153 |
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49,238,436 |
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Other Financial Data:
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Capital expenditures
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$ |
8.4 |
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$ |
12.1 |
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$ |
14.2 |
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Net cash provided by operating activities
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35.8 |
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21.9 |
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295.1 |
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Net cash used by investing activities
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(9.2 |
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(46.3 |
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(291.0 |
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Net cash provided (used) by financing activities
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(22.3 |
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30.7 |
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(17.0 |
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Balance Sheet Data:
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Total assets
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$ |
1,161.2 |
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$ |
1,356.9 |
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$ |
1,651.2 |
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Total long-term debt (including current portion)
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422.2 |
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417.6 |
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403.6 |
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Long-term obligations(5)
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53.0 |
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2.0 |
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4.3 |
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Stockholders equity
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167.7 |
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353.6 |
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491.5 |
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(1) |
Excludes depreciation and amortization. |
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(2) |
Represents charges relating to the write-off of unamortized debt
issuance and other costs associated with the early
extinguishment of debt. |
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(3) |
Represents costs relating to the sale of accounts receivable
pursuant to our accounts receivable securitization facility (the
Receivables Facility). See Note 4 to our
audited consolidated financial statements incorporated by
reference in this prospectus. |
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(4) |
Benefits of $2.6 million in 2003 from the resolution of
prior year tax contingencies resulted in an unusually low
provision for income taxes. |
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(5) |
Includes amounts due under earnout agreements for past
acquisitions. |
RECENT DEVELOPMENTS
Earnings for Three Months Ended March 31, 2006
On April 20, 2006, we announced our financial results for
the fiscal quarter ended March 31, 2006. Consolidated net
sales for the first quarter 2006 were $1,265.5 million
compared with $990.9 million in 2005, an increase of 27.7%.
Sales from the two acquisitions completed in the third quarter
of 2005 were approximately $107 million. Gross margin for the
quarter improved to 20.0% versus 18.7% reported last year.
Operating income for the quarter totaled $76.9 million, an
increase of 99% over the $38.6 million earned in the first
quarter of 2005. Depreciation and amortization included in
operating income was $6.3 million in 2006 compared to
$3.9 million in 2005. Net income in the first quarter was
$44.5 million in 2006 versus $11.3 million in the
comparable 2005 quarter. First quarter 2006 earnings included a
charge net of income taxes of $2.7 million for the write
down of receivables from a major customer, which filed for
bankruptcy protection during the quarter. First quarter 2005
earnings included an after tax charge of $6.5 million
associated with the repurchase of $123.8 million of WESCO
Distributions
91/8
% Senior Subordinated Notes due 2008. Diluted
earnings per share in the current quarter were $0.86 per
share compared with $0.23 per share in 2005.
RATIOS OF EARNINGS TO FIXED CHARGES
Our consolidated ratios of earnings to fixed charges for the
years ended December 31, 2001, 2002, 2003, 2004 and 2005
are as follows:
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Year Ended December 31, | |
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2001 | |
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2002 | |
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2003 | |
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2004 | |
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2005 | |
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Ratios of earnings to fixed charges(1):
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1.6x |
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1.5x |
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1.7x |
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2.9x |
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4.7x |
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(1) |
For purposes of calculating the ratio of earnings to fixed
charges, earnings represents income before income
taxes plus fixed charges. Fixed charges consist of
interest expense, including amortization of debt issuance costs
and the portion of rental expense that management believes is
representative of the interest component of rental expense. |
2
RISK FACTORS
Before investing in Debentures or our common stock, you should
carefully consider the following risk factors in conjunction
with the risk factors set forth in Item 1A of our Annual
Report on
Form 10-K for our
fiscal year ended December 31, 2005 and the other
information contained or incorporated by reference in this
prospectus, including our historical financial statements and
the related notes thereto. These factors, among others, could
cause actual results to differ materially from those currently
anticipated and presented from time to time in the future by our
management. See Special Note on Forward Looking
Statements.
Risks Relating to the Debentures and Our Common Stock
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We have outstanding consolidated indebtedness of
approximately $403.6 million as of December 31, 2005.
This amount of indebtedness could adversely affect our business,
financial condition and results of operations and our ability to
meet our payment obligations under the notes and our other
debt. |
As of December 31, 2005, we had approximately
$403.6 million of outstanding consolidated debt. This level
of our debt and the related debt service requirements could have
significant consequences on our future operations, including:
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making it more difficult for us to meet our payment and other
obligations under the Debentures and our other outstanding debt; |
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resulting in an event of default if we fail to comply with the
financial and other restrictive covenants contained in our debt
agreements, which event of default could result in all of our
debt becoming immediately due and payable; |
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reducing the availability of our cash flow to fund working
capital, capital expenditures, acquisitions and other general
corporate purposes, and limiting our ability to obtain
additional financing for these purposes; |
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subjecting us to the risk of increased sensitivity to interest
rate increases on our indebtedness with variable interest rates,
including borrowings under our credit facilities; |
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limiting our flexibility in planning for, or reacting to, and
increasing our vulnerability to, changes in our business, the
industry in which we operate and the general economy; and |
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placing us at a competitive disadvantage compared to our
competitors that have less debt or are less leveraged. |
Any of the above-listed factors could have an adverse effect on
our business, financial condition and results of operations and
our ability to meet our payment obligations under the Debentures
and our other debt.
As a holding company, our ability to meet our payment and other
obligations under our debt instruments depends on our and our
subsidiaries ability to generate significant cash flow in
the future. This, to some extent, is subject to general
economic, financial, competitive, legislative and regulatory
factors as well as other factors that are beyond our control. We
cannot assure you that our business will generate cash flow from
operations, or that future borrowings will be available to us
under our credit facilities or otherwise, in an amount
sufficient to enable us to meet our payment obligations under
the Debentures, WESCO Distributions senior subordinated
indebtedness and our other debt and to fund other liquidity
needs. If we or our subsidiaries are not able to generate
sufficient cash flow to service our debt obligations, we may
need to refinance or restructure our debt, including the
Debentures, sell assets, reduce or delay capital investments, or
seek to raise additional capital. If we or our subsidiaries are
unable to implement one or more of these alternatives, we may
not be able to meet our payment obligations under the Debentures
and our other debt.
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Despite our current levels of indebtedness, we may incur
substantially more debt, which could further exacerbate the
risks associated with our substantial indebtedness. |
Although our credit facilities and the indenture regarding WESCO
Distributions senior subordinated indebtedness contains
restrictions on the incurrence of additional indebtedness, these
restrictions are subject to a number of qualifications and
exceptions, and the indebtedness incurred in compliance with
these restrictions could be substantial. Also, these
restrictions do not prevent us from incurring obligations that
do not constitute indebtedness as defined in the
relevant agreement. If new debt is added to our current debt
levels, the related risks that we now face could intensify. At
December 31, 2005, WESCO Distribution had approximately
$228 million in available borrowing capacity under its
credit facilities. All borrowings under its credit facilities
are senior to WESCO Distributions guarantee of the
Debentures.
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Our debt agreements contain covenant restrictions that may
limit our ability to operate our business. |
Our credit facilities and the indenture relating to WESCO
Distributions senior subordinated indebtedness contains,
and any of our other future debt agreements may contain,
covenant restrictions that limit our ability to operate our
business, including restrictions on our ability to:
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incur additional debt or issue guarantees; |
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create liens; |
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make certain investments; |
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enter into transactions with our affiliates; |
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sell certain assets; |
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redeem capital stock or make other restricted payments; |
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declare or pay dividends or make other distributions to
stockholders; and |
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merge or consolidate with any person. |
Our credit facilities also require us to maintain specific
earnings to fixed expenses and debt to earnings ratios and to
meet minimum net worth requirements. In addition, our credit
facilities contain additional affirmative and negative covenants
that are more restrictive than those contained in the indenture
governing the Debentures. Our ability to comply with these
covenants is dependent on our future performance, which will be
subject to many factors, some of which are beyond our control,
including prevailing economic conditions.
As a result of these covenants, our ability to respond to
changes in business and economic conditions and to obtain
additional financing, if needed, may be significantly
restricted, and we may be prevented from engaging in
transactions that might otherwise be beneficial to us. In
addition, our failure to comply with these covenants could
result in a default under the Debentures, WESCO
Distributions senior subordinated indebtedness and our
other debt, which could permit the holders to accelerate such
debt. If any of our debt is accelerated, we may not have
sufficient funds available to repay such debt.
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The Debentures will be effectively subordinated to any
existing and future secured indebtedness. |
The Debentures will be our general, unsecured obligations and
will rank equally in right of payment with all of our existing
and future unsubordinated, unsecured indebtedness. As a result,
the Debentures are effectively subordinated to existing and
future secured indebtedness we may have to the extent of the
value of the assets securing such indebtedness and structurally
subordinated to any existing and future liabilities and other
indebtedness of our subsidiaries, other than the senior
subordinated indebtedness of WESCO Distribution, including the
Notes, if issued, and any subordinated indebtedness of WESCO
Distribution. These liabilities may include indebtedness, trade
payables, guarantees, lease obligations and letter of credit
obligations. The Debentures do not restrict us or our
subsidiaries from incurring indebtedness, including
4
senior secured indebtedness in the future, nor do they limit the
amount of indebtedness we can issue that is equal in right of
payment.
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Our assets and the assets of our subsidiaries remain
subject to a first priority pledge under our revolving credit
facility. |
Our obligations and the obligations of WESCO Distribution under
our revolving credit facility are secured by a first priority
pledge of and security interest in substantially all of our
assets and the assets of our subsidiaries, except for real
property. If either we or WESCO Distribution become insolvent or
are liquidated, or if payment under our revolving credit
facility or any other secured indebtedness is accelerated, the
lenders under the revolving credit facility or any such other
future secured indebtedness will be entitled to exercise the
remedies available to a secured lender under applicable law (in
addition to any remedies that may be available under the
instruments pertaining to the credit facility or such other
secured indebtedness). Neither the Debentures nor the guarantee
are secured. Accordingly, holders of such secured indebtedness
will have a prior claim with respect to the assets securing such
indebtedness. See Description of the Notes and Other
Indebtedness.
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Our holding company structure may adversely affect our
ability to meet our debt service obligations under the
Debentures. |
Substantially all of our consolidated assets are held by our
subsidiaries. Accordingly, our ability to service our debt,
including the Debentures, depends on the results of operations
of our subsidiaries and upon the ability of such subsidiaries to
provide us with cash, whether in the form of management fees,
dividends, loans or otherwise, and to pay amounts due on our
obligations, including the Debentures. Our subsidiaries are
separate and distinct legal entities and, apart from the
guarantee of WESCO Distribution, have no obligation, contingent
or otherwise, to make payments on the Debentures or to make any
funds available for that purpose. In addition, dividends, loans
or other distributions to us from such subsidiaries may be
subject to contractual and other restrictions and are subject to
other business considerations.
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The guarantee of the Debentures by WESCO Distribution is
subordinated to all of its existing and future senior
indebtedness, which may inhibit your ability to be repaid
pursuant to the guarantee. |
The guarantee of the Debentures is contractually subordinated in
right of payment to the existing and future senior indebtedness
of WESCO Distribution. At December 31, 2005, WESCO
Distribution and its subsidiaries had approximately
$103 million of senior debt, and had the ability to borrow
up to an additional $228 million under our credit
facilities, all of which, if borrowed or drawn upon, would be
senior debt. Any incurrence of additional indebtedness by us or
WESCO Distribution may materially adversely impact our ability
to service our debt, including the Debentures. Due to the
subordination provisions of the senior subordinated indebtedness
of WESCO Distribution, including the Debentures, in the event of
our insolvency, funds of WESCO Distribution that would otherwise
be used to pay the holders of the Debentures and other senior
subordinated indebtedness of WESCO Distribution will be used to
pay the holders of senior indebtedness to the extent necessary
to pay the senior indebtedness in full. As a result of these
payments, general creditors may recover less, ratably, than the
holders of senior indebtedness of WESCO Distribution and the
general creditors may recover more, ratably, than the holders of
the Debentures or other subordinated indebtedness of WESCO
Distribution. In addition, the holders of senior indebtedness of
WESCO Distribution may, under certain circumstances, restrict or
prohibit WESCO Distribution from making payments on the
Debentures.
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The guarantee may be unenforceable due to fraudulent
conveyance statutes, and, accordingly, you could have no claim
against WESCO Distribution. |
Although laws differ among various jurisdictions, a court could,
under fraudulent conveyance laws, further subordinate or avoid
the guarantees if it found that the guarantees were incurred
with actual intent to
5
hinder, delay or defraud creditors, or WESCO Distribution did
not receive fair consideration or reasonably equivalent value
for the guarantee and that WESCO Distribution was any of the
following:
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insolvent or rendered insolvent because of the guarantee; |
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engaged in a business or transaction for which its remaining
assets constituted unreasonably small capital; or |
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intended to incur, or believed that it would incur, debts beyond
its ability to pay at maturity. |
If a court voided the guarantee of WESCO Distribution as the
result of a fraudulent conveyance, or held it unenforceable for
any other reason, holders of the Debentures would cease to have
a claim against WESCO Distribution based on the guarantee and
would solely be creditors of WESCO International.
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Not all of our subsidiaries are guarantors, and your
claims will be subordinated to all of the creditors of the
non-guarantor subsidiaries. |
Only WESCO Distribution guarantees the Debentures. In the
event of a bankruptcy, liquidation or reorganization of any of
the non-guarantor subsidiaries, holders of their indebtedness
and their trade creditors will generally be entitled to payment
of their claims from the assets of those non-guarantor
subsidiaries before any assets of the non-guarantor subsidiaries
are made available for distribution to WESCO International or
WESCO Distribution. As of December 31, 2005, the Debentures
were effectively junior to $212 million of indebtedness and
other liabilities (including trade payables) of these
non-guarantor subsidiaries. The nonguarantor subsidiaries
generated $756 million of our net sales for the year ended
December 31, 2005 and held approximately $1 billion of
our consolidated assets at December 31, 2005.
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The terms of the Debentures do not contain restrictive
covenants and provide only limited protection in the event of a
change of control. |
The indenture under which the Debentures were issued does not
contain restrictive covenants that would protect you from
several kinds of transactions that may adversely affect you. In
particular, the indenture does not contain covenants that will
limit our ability to pay dividends or make distributions on or
redeem our capital stock or limit our ability to incur
additional indebtedness and, therefore, may not protect you in
the event of a highly leveraged transaction or other similar
transaction. The requirement that we offer to repurchase the
Debentures upon a change of control is limited to the
transactions specified in the definition of a fundamental
change under Description of the
Debentures Repurchase at the Option of the
Holder Fundamental Change Put. Similarly, the
circumstances under which we are required to adjust the
conversion rate upon the occurrence of a non-stock change
of control are limited to circumstances where a Debenture
is converted in connection with such a transaction as set forth
under Description of the Debentures Conversion
Rights Adjustment to Conversion Rate Upon a
Non-Stock Change of Control. Accordingly, subject to
restrictions contained in our other debt agreements, we could
enter into certain transactions, such as acquisitions,
refinancings or recapitalizations, that could affect our capital
structure and the value of the Debentures and common stock but
would not constitute a fundamental change under the Debentures.
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We may be unable to repurchase the Debentures for cash
when required by the holders, including following a fundamental
change. |
Holders of the Debentures have the right to require us to
repurchase the Debentures on specified dates or upon the
occurrence of a fundamental change prior to maturity as
described under Description of the Debentures
Repurchase at the Option of the Holder Optional
Put and Fundamental Change Put.
The occurrence of a change of control would also constitute an
event of default under our credit facilities, requiring
repayment of amounts outstanding thereunder and the occurrence
of a change of control would also enable holders of WESCO
Distributions senior subordinated notes to require WESCO
Distribution to repurchase such notes at a price equal to 101%
of the principal amount thereof, plus accrued and unpaid
interest and additional interest, if any. Any of our future debt
agreements may contain similar provisions. We
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may not have sufficient funds to make the required repayments
and repurchases at such time or the ability to arrange necessary
financing on acceptable terms. In addition, our ability to
repurchase the Debentures in cash may be limited by law or the
terms of other agreements relating to our debt outstanding at
the time, including our credit facilities, which will limit our
ability to purchase the Debentures for cash in certain
circumstances. If we fail to repurchase the Debentures in cash
as required by the indenture, it would constitute an event of
default under the indenture governing the Debentures, which, in
turn, would constitute an event of default under our credit
facilities and the indenture related to WESCO
Distributions senior subordinated notes, if the Notes.
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Some significant restructuring transactions may not
constitute a fundamental change, in which case we would not be
obligated to offer to repurchase the Debentures. |
Upon the occurrence of a fundamental change, you have the right
to require us to repurchase Debentures. However, the fundamental
change provisions will not afford protection to holders of the
Debentures in the event of certain transactions. For example,
transactions such as leveraged recapitalizations, refinancings,
restructurings or acquisitions initiated by us would not
constitute a fundamental change requiring us to repurchase the
Debentures. In the event of any such transaction, the holders
would not have the right to require us to repurchase the
Debentures, even though each of these transactions could
increase the amount of our indebtedness, or otherwise adversely
affect our capital structure or any credit ratings, thereby
adversely affecting the holders of the Debentures.
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Provisions of the Debentures could discourage an
acquisition of us by a third party. |
Certain provisions of the Debentures could make it more
difficult or more expensive for a third party to acquire us.
Upon the occurrence of certain transactions constituting a
fundamental change, holders of the Debentures have the right, at
their option, to require us to repurchase all of their
Debentures or any portion of the principal amount of such
Debentures in integral multiples of $1,000. In addition, the
occurrence of certain change of control transactions may result
in the Debentures becoming convertible for additional shares or
result in antidilution adjustments which may have the effect of
making an acquisition of us less attractive. We may also be
required to issue additional shares upon conversion or provide
for conversion into the acquirers capital stock in the
event of certain fundamental changes.
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The adjustment to the conversion rate upon the occurrence
of certain types of fundamental changes may not adequately
compensate you for the lost option time value of your Debentures
as a result of such fundamental change. |
If certain types of fundamental changes occur on or prior to the
date when the Debentures may be redeemed, we may adjust the
conversion rate of the Debentures to increase the number of
shares issuable upon conversion. The number of additional shares
to be issued will be determined based on the date on which the
fundamental change becomes effective and the price paid per
share of our common stock in the fundamental change as described
under Description of the Debentures Conversion
Rights Adjustment to Conversion Price Upon Certain
Fundamental Changes. Although this adjustment is designed
to compensate you for the lost option value of your Debentures
as a result of certain types of fundamental changes, the
adjustment is only an approximation of such lost value based
upon assumptions made on the date of this prospectus and may not
adequately compensate you for such loss. In addition, if the
price paid per share of our common stock in the fundamental
change is less than $31.01 or more than $80.00 (subject to
adjustment), there will be no such adjustment.
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There is currently no public market for the Debentures,
and an active trading market may not develop for the Debentures.
The failure of a market to develop for the Debentures could
adversely affect the liquidity and value of your
Debentures. |
We originally sold the Debentures to a limited number of
investors in a private offering in reliance on an exemption from
registration under U.S. federal and applicable state
securities laws, and we are now registering the Debentures, the
related guarantee and the common stock issuable upon conversion
of the
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Debentures for resale by the selling securityholders. There is
no public market for the Debentures. We do not intend to apply
for listing of the Debentures on any securities exchange or for
quotation of the Debentures on any automated dealer quotation
system. Although the Debentures originally issued in the private
offering are eligible for trading in The
PORTALsm
Market, the Debentures sold pursuant to this prospectus will no
longer be eligible for trading in The
PORTALsm
Market. Despite our registering the Debentures for resale under
the Securities Act, a market may not develop for the Debentures,
and there can be no assurance as to the liquidity of any market
that may develop for the Debentures once the securityholders are
able to freely resell the Debentures. If an active, liquid
market does not develop for the Debentures, the market price and
liquidity of the Debentures may be adversely affected. If any of
the Debentures are traded, they may trade at a discount from
their initial offering price.
The liquidity of the trading market, if any, and future trading
prices of the Debentures will depend on many factors, including,
among other things, the market price of our common stock,
prevailing interest rates, our operating results, financial
performance and prospects, the market for similar securities and
the overall securities market, and may be adversely affected by
unfavorable changes in these factors. Historically, the market
for convertible debt securities has been subject to disruptions
that have caused volatility in prices. It is possible that the
market for the Debentures will be subject to disruptions which
may have a negative effect on the holders of the Debentures,
regardless of our operating results, financial performance or
prospects.
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The conditional conversion feature of the Debentures could
result in your receiving less than the value of the common stock
into which a Debenture is convertible. |
The Debentures are convertible into shares of our common stock
only if specified conditions are met. If these conditions are
not met, you will not be able to convert your Debentures, and
you may not be able to receive the value of the common stock
into which the Debentures would otherwise be convertible.
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The price of our common stock, and therefore of the
Debentures, may fluctuate significantly. |
Stock markets have experienced significant price and trading
volume fluctuations, and the market prices of companies in our
industry have been volatile. It is impossible to predict whether
the price of our common stock will rise or fall. Trading prices
of our common stock will be influenced by our operating results
and prospects and by economic, financial and other factors. In
addition, general market conditions, including the level of, and
fluctuations in, the trading prices of stocks generally, and
sales of substantial amounts of common stock by us, or the
perception that such sales could occur, could affect the price
of our common stock and make it more difficult for us to raise
funds through future offerings of equity securities. In
addition, because the Debentures are convertible into our common
stock, volatility or depressed prices for our common stock could
have a similar effect on the trading price of the Debentures.
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If you hold Debentures, you will not be entitled to any
rights with respect to our common stock, but you will be subject
to all changes made with respect to our common stock. |
If you hold Debentures, you will not be entitled to any rights
with respect to our common stock (including, without limitation,
voting rights and rights to receive any dividends or other
distributions on our common stock), but you will be subject to
all changes affecting the common stock. You will only be
entitled to rights on the common stock if and when we deliver
shares of our common stock to you upon conversion of your
Debentures. For example, in the event that an amendment is
proposed to our charter or bylaws requiring stockholder approval
and the record date for determining the stockholders of record
entitled to vote on the amendment occurs prior to your
conversion of Debentures, you will not be entitled to vote on
the amendment, although you will nevertheless be subject to any
changes in the powers, preferences or special rights of our
common stock or other classes of capital stock.
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Future sales of our common stock in the public market or
the issuance of securities senior to our common stock could
adversely affect the trading price of our common stock and the
value of the Debentures and our ability to raise funds in new
stock offerings. |
Future sales of substantial amounts of our common stock or
equity-related securities in the public market, or the
perception that such sales could occur, could adversely affect
prevailing trading prices of our common stock and the value of
the Debentures and could impair our ability to raise capital
through future offerings of equity or equity-related securities.
No prediction can be made as to the effect, if any, that future
sales of shares of common stock or the availability of shares of
common stock for future sale, will have on the trading price of
our common stock or the value of the Debentures.
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The trading price of our common stock may decline due to
future issuances of shares. |
As of March 31, 2006, there were 48,213,677 shares of
our common stock outstanding. In addition, there were:
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options to purchase 5,644,026 shares of common stock
outstanding; |
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4,691,643 shares of common stock reserved for issuance for
future awards under our equity compensation plans; and |
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3,583,080 shares of common stock reserved for issuance upon
conversion of outstanding Debentures. |
The issuance or expected issuance, including upon conversion of
the Debentures, of a large number of shares of our common stock
or sales or expected sales of a large number of our shares of
common stock, including sales by the selling securityholders, at
any time after the date of this prospectus could negatively
affect the trading price of our common stock.
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Upon conversion of the Debentures, we will generally pay
cash in lieu of issuing shares of our common stock with respect
to an amount up to the principal amount of Debentures converted
and shares of our common stock with respect to the conversion
value in excess thereof. Therefore, holders of the Debentures
may receive no shares of our common stock. |
Upon conversion, we will pay cash and shares of our common
stock, if any, based on a daily conversion value (as described
herein) calculated on a proportionate basis for each day of the
20 consecutive trading days during the cash settlement averaging
period. See Description of the Debentures
Conversion Rights Settlement Upon Conversion.
Accordingly, upon conversion of a Debenture, holders may not
receive any shares of our common stock. Further, our liquidity
may be reduced upon conversion of the Debentures. In addition,
in the event of our bankruptcy, insolvency or certain similar
proceedings during the cash settlement averaging period, there
is a risk that a bankruptcy court may decide a holders
claim to receive such cash and shares could be subordinated to
the claims of our creditors as a result of such holders
claim being treated as an equity claim in bankruptcy.
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The conversion rate of the Debentures may not be adjusted
for all dilutive events that may adversely affect the trading
price of the Debentures or the common stock issuable upon
conversion of the Debentures. |
The conversion rate of the Debentures is subject to adjustment
upon certain events, including the issuance of stock dividends
on our common stock, the issuance of rights or warrants,
subdivisions, combinations, distributions of capital stock,
indebtedness or assets, cash dividends and issuer tender or
exchange offers as described under Description of the
Debentures Conversion Rights Conversion
Rate Adjustments. The conversion rate will not be adjusted
for certain other events that may adversely affect the trading
price of the Debentures or the common stock issuable upon
conversion of the Debentures.
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Anti-takeover provisions could negatively impact our
stockholders. |
Provisions of Delaware law and of our certificate of
incorporation and bylaws could make it more difficult for a
third-party to acquire control of us. For example, we are
subject to Section 203 of the Delaware General Corporation
Law, which would make it more difficult for another party to
acquire us without the approval of our Board of Directors. Our
Board of Directors is divided into three classes, with each
class serving a three-year term. Additionally, our Restated
Certificate of Incorporation authorizes our Board of Directors
to issue preferred stock without requiring any stockholder
approval, and preferred stock could be issued as a defensive
measure in response to a takeover proposal. These provisions
could make it more difficult for a third-party to acquire us
even if an acquisition might be in the best interest of our
stockholders.
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You will be required to report taxable income for
U.S. federal income purposes, perhaps in significant
amounts, prior to your receipt of cash. |
We and each holder will be bound by the indenture to treat the
Debentures as contingent payment debt instruments
subject to the contingent payment debt regulations. As a result,
you will be required to include amounts in income, as original
issue discount, in advance of cash you receive on the
Debentures, and to accrue interest on a constant yield to
maturity basis at a rate comparable to the rate at which we
would borrow in a fixed-rate, noncontingent, nonconvertible
borrowing (which we have determined to be 7.98%, compounded
semi-annually), even though the Debentures will have a lower
yield to maturity. You will recognize taxable income
significantly in excess of cash received while the Debentures
are outstanding. In addition, you will recognize ordinary
income, if any, upon a sale, exchange, conversion or redemption
of the Debentures at a gain. You are urged to consult your own
tax advisors as to the U.S. federal, state and other tax
consequences of acquiring, owning and disposing of the
Debentures and shares of common stock. See Certain
U.S. Federal Income and Estate Tax Considerations.
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If we pay a cash dividend on our common stock, you may be
deemed to have received a taxable dividend without the receipt
of any cash. |
If we pay a cash dividend on our common stock, an adjustment to
the conversion rate will result, and you may be deemed to have
received a taxable dividend subject to U.S. federal income
tax without the receipt of any cash. If you are a
non-U.S. holder
(as defined in Certain U.S. Federal Income and Estate
Tax Considerations), such deemed dividend may be subject
to U.S. federal withholding tax at a 30% rate or such lower
rate as may be specified by an applicable treaty. See
Certain U.S. Federal Income and Estate Tax
Considerations.
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USE OF PROCEEDS
We will not receive any proceeds from any sale by any selling
securityholder of the Debentures, including the related
guarantee, or the shares of common stock issuable upon
conversion of the Debentures that are covered by this prospectus.
DESCRIPTION OF OTHER INDEBTEDNESS
WESCO Distribution is party to a revolving credit facility, an
accounts receivable securitization facility, a mortgage
financing facility, a note payable to Bruckner Supply Company,
Inc. and a note payable to Fastec Industrial Corp. The principal
terms of these financing arrangements are summarized under
Managements Discussion and Analysis of Financial
Condition and Results of Operations Liquidity and
Capital Resources in our Annual Report on
Form 10-K for our
fiscal year ended December 31, 2005, which is incorporated
herein by reference.
In addition, WESCO Distributions senior subordinated notes
are guaranteed on an unsecured senior basis by us. The guarantee
of the Debentures is subordinated in right of payment to all of
our existing and future senior debt. The notes are not
guaranteed by any of our direct or indirect subsidiaries. The
principal terms of the WESCO Distributions senior
subordinated notes are summarized under Managements
Discussion and Analysis of Financial Condition and Results of
Operations Liquidity and Capital Resources in
our Annual Report on
Form 10-K for our
fiscal year ended December 31, 2005, which is incorporated
herein by reference.
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DESCRIPTION OF THE DEBENTURES
On September 27, 2005, we issued $150.0 million
aggregate principal amount of Debentures in a private offering.
As of the date of this prospectus, the aggregate principal
amount of Debentures outstanding is $150.0 million. The
Debentures were issued under an indenture dated as of
September 27, 2005, among us, as issuer, WESCO
Distribution, as guarantor, and J.P. Morgan Trust Company,
National Association, as trustee. The terms of the Debentures
include those provided in the indenture and those provided in
the registration rights agreement dated as of September 27,
2005, among us, WESCO Distribution and the initial purchasers.
The following description is only a summary of the material
provisions of the Debentures, the indenture and the registration
rights agreement. We urge you to read the indenture and the
registration rights agreement in their entirety because they,
and not this description, define your rights as a holder of the
Debentures. The indenture and the registration rights agreement
have been filed as exhibits to the registration statement of
which this prospectus is a part, and you may request copies of
these documents as set forth under the caption Where You
Can Find More Information.
When we refer to WESCO International,
we, our or us in this
section, we refer only to WESCO International, Inc. and not its
subsidiaries.
Brief Description of the Debentures
The Debentures:
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are limited to $150.0 million aggregate principal amount; |
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bear interest at a rate of 2.625% per year, payable
semi-annually in arrears, on April 15 and October 15 of each
year, commencing on April 15, 2006; |
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beginning with the six-month interest period commencing
October 15, 2010, bear contingent interest in the
circumstances described under Contingent
Interest; |
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are general unsecured obligations, ranking equally with all of
our other unsecured senior indebtedness and senior in right of
payment to any subordinated indebtedness; |
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are unconditionally guaranteed, on a senior subordinated basis,
by our subsidiary WESCO Distribution; |
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are convertible by you at any time on or prior to the close of
business on the trading day preceding the maturity date, only
upon satisfaction of one of the conditions for conversion, as
described under Conversion Rights, into
cash and, under certain circumstances, shares of our common
stock, initially at a conversion rate of 23.8872 shares of
our common stock per $1,000 in principal amount of Debentures,
which represents an initial conversion price of approximately
$41.86 per share. Upon conversion, we will pay cash and
shares of our common stock, if any, based on a daily conversion
value (as defined below) calculated on a proportionate basis for
each day of the 20 consecutive trading days during the cash
settlement averaging period (as defined below), all as set forth
below under Settlement Upon Conversion.
In the event of certain types of fundamental changes, we will
increase the conversion rate or, in lieu thereof, we may elect
to adjust the conversion obligation and conversion rate so that
the Debentures are convertible into shares of the acquiring or
surviving company, in each case as described herein; |
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are subject to redemption for cash by us at any time on or after
October 15, 2010, in whole or in part, at a redemption
price equal to 100% of the principal amount of the Debentures
plus accrued and unpaid interest (including contingent interest
or additional interest, if any) to, but not including, the
redemption date; |
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are subject to repurchase by us, at your option, on
October 15, 2010, October 15, 2015 and
October 15, 2020, at a cash repurchase price equal to 100%
of the principal amount of the Debentures, plus accrued and
unpaid interest (including contingent interest or additional
interest, if |
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any) to, but not including, the repurchase date, as set forth
under Repurchase at the Option of the
Holder Optional Put; |
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are subject to repurchase by us at your option if a fundamental
change occurs, at a cash repurchase price equal to 100% of the
principal amount of the Debentures, plus accrued and unpaid
interest (including contingent interest or additional interest,
if any) to, but not including, the repurchase date, as set forth
under Repurchase at the Option of the
Holder Fundamental Change Put; and |
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are due on October 15, 2025, unless earlier converted,
redeemed by us at our option or repurchased by us at your option. |
Neither we nor any of our subsidiaries are subject to any
financial covenants under the indenture. In addition, neither we
nor any of our subsidiaries are restricted under the indenture
from paying dividends, incurring debt or issuing or repurchasing
our securities. You are not afforded protection under the
indenture in the event of a highly leveraged transaction or a
change in control of us, except to the extent described below
under Conversion Rights and
Repurchase at Option of the Holder
Fundamental Change Put.
No sinking fund is provided for the Debentures, and the
Debentures are not subject to defeasance.
The Debentures initially were issued in book-entry form only in
denominations of $1,000 principal amount and whole multiples
thereof. Beneficial interests in the Debentures are shown on,
and transfers of beneficial interests in the Debentures are
effected only through, records maintained by The Depository
Trust Company, or DTC, or its nominee, and any such interests
may not be exchanged for certificated Debentures except in
limited circumstances. For information regarding conversion,
registration of transfer and exchange of global Debentures held
in DTC, see Form, Denomination and
Registration Global Debentures, Book-Entry
Form.
If certificated Debentures are issued, you may present them for
conversion, registration of transfer and exchange, without
service charge, at our office or agency in New York City, which
will initially be the office or agency of the trustee in New
York City.
Payment at Maturity
On the maturity date, each holder will be entitled to receive on
such date $1,000 in cash for each $1,000 in principal amount of
Debentures, together with premium, if any, and accrued and
unpaid interest (including contingent interest and additional
interest, if any) to, but not including, the maturity date. With
respect to global Debentures, principal and interest (including
contingent interest and additional interest, if any) will be
paid to DTC in immediately available funds. With respect to any
certificated Debentures, principal, premium, if any, and
interest (including contingent interest and additional interest,
if any) will be payable at our office or agency in New York
City, which initially will be the office or agency of the
trustee in New York City.
Interest
The Debentures bear interest at a rate of 2.625% per year.
Interest will accrue from September 27, 2005, or from the
most recent date to which interest has been paid or duly
provided for. Beginning with the six-month interest period
commencing October 15, 2010, we will pay contingent
interest under certain circumstances as described under
Contingent Interest. We will pay
interest (including contingent interest and additional interest,
if any) semi-annually, in arrears on April 15 and October 15 of
each year, commencing on April 15, 2006, to holders of
record at 5:00 p.m., New York City time, on the preceding
April 1 and October 1, respectively. However, there
are two exceptions to the preceding sentence:
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we will not pay in cash accrued interest (including contingent
interest or additional interest, if any, but excluding any
additional interest) on any Debentures when they are converted,
except as described under Conversion
Rights; and |
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we will pay accrued and unpaid interest (including contingent
interest and additional interest, if any) to a person other than
the holder of record on the record date on the maturity date. On
such date, we will pay accrued and unpaid interest only to the
person to whom we pay the principal amount. |
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Similarly, the interest payable upon redemption or repurchase
following a fundamental change will be payable to the person to
whom principal is payable upon maturity or pursuant to such
redemption or repurchase following a fundamental change (unless
the redemption date or the fundamental change repurchase date,
as the case may be, is after a record date and on or prior to
the corresponding interest payment date, in which case the
semi-annual payment of interest becoming due on such interest
payment date shall be payable to the holder of such Debentures
registered as such on the applicable record date). |
We will pay interest on:
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global Debentures to DTC in immediately available funds; |
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any certificated Debentures having a principal amount of less
than $2,000,000, by check mailed to the holders of those
Debentures; provided, however, at maturity, interest will be
payable as described under Payment at
Maturity; and |
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any certificated Debentures having a principal amount of
$2,000,000 or more, by wire transfer in immediately available
funds at the election of the holders of these Debentures duly
delivered to the trustee at least five business days prior to
the relevant interest payment date; provided, however, at
maturity, interest will be payable as described under
Payment at Maturity. |
Interest will be calculated on the basis of a
360-day year consisting
of twelve 30-day
months. If a payment date is not a business day, payment will be
made on the next succeeding business day, and no additional
interest will accrue thereon.
To the extent lawful, payments of principal, premium or interest
(including contingent interest and additional interest, if any)
on the Debentures that are not made when due will accrue
interest at the annual rate of 1% above the then applicable
interest rate from the required payment date.
Contingent Interest
Beginning with the six-month interest period commencing
October 15, 2010, we will pay contingent interest during
any six-month interest period to the holders of the Debentures
if the trading price of the Debentures for each of the five
trading days ending on the second trading day immediately
preceding the first day of the applicable six-month interest
period equals or exceeds 120% of the principal amount of the
Debentures.
During any six-month period when contingent interest shall be
payable, the contingent interest payable per $1,000 principal
amount of the Debentures will equal 0.25% of the average trading
price of $1,000 principal amount of Debentures during the five
trading days ending on the second trading day immediately
preceding the first day of the applicable six-month interest
period.
Trading price for purposes of determining contingent
interest shall have the meaning set forth under
Conversion Rights Conversion Upon
Satisfaction of Trading Price Condition, except that, for
purposes of determining the trading price for the contingent
interest provisions only, if the trustee cannot reasonably
obtain at least one bid for $5,000,000 principal amount of the
Debentures from a nationally recognized securities dealer, then
the trading price per $1,000 principal amount of the Debentures
will be deemed to equal the product of:
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the conversion rate then in effect; and |
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the average closing sale price of our common stock over the five
trading-day period ending on such determination date. |
We will notify holders by issuing a press release prior to the
beginning of any six-month interest period that they will be
entitled to receive contingent interest during such six-month
interest period.
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Subsidiary Guarantee
WESCO Distribution, as primary obligor and not merely as surety,
has irrevocably and unconditionally guaranteed on an unsecured
senior subordinated basis the performance and full and punctual
payment when due, whether at stated maturity, by acceleration or
otherwise, of all obligations of WESCO International under the
indenture and the Debentures, whether for payment of principal
of or interest on (including contingent interest or additional
interest, if any) the Debentures, expenses, indemnification or
otherwise (all such obligations guaranteed by WESCO Distribution
are referred to herein as the guaranteed
obligations). WESCO Distribution has agreed to pay, in
addition to the amount stated above, any and all costs and
expenses (including reasonable counsel fees and expenses)
incurred by the trustee or the Debenture holders in enforcing
any rights under the WESCO Distribution guarantee. The WESCO
Distribution guarantee is limited in amount to an amount not to
exceed the maximum amount that can be guaranteed by WESCO
Distribution without rendering the indenture, as it relates to
WESCO Distribution, voidable under applicable law relating to
fraudulent conveyance or fraudulent transfer or similar laws
affecting the rights of creditors generally. See Risk
Factors The guarantees may be unenforceable due to
fraudulent conveyance statutes, and accordingly you could have
no claim against the guarantors.
The guarantor may, without the consent of the holders of
Debentures, consolidate with, merge with or into or transfer all
or substantially all of their assets to any other person
organized under the laws of the United States or any of its
political subdivisions provided that:
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the surviving person assumes all of the guarantors
obligations under the indenture; |
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at the time of such transaction, no event of default, and no
event which, after notice or lapse of time, would become an
event of default, shall have happened and be continuing; and |
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certain other conditions are met. |
The guarantee of the payment of principal of, premium and
additional interest, if any, and interest (including contingent
interest and additional interest, if any) on the Debentures is
subordinated in right of payment, as set forth in the indenture,
to all existing and future Senior Indebtedness of WESCO
Distribution, ranks pari passu in right of payment with
all existing and future Senior Subordinated Indebtedness of
WESCO Distribution and is senior in right of payment to all
existing and future Subordinated Obligations of WESCO
Distribution. The Debentures also are effectively subordinated
to any Secured Indebtedness of WESCO Distribution and its
subsidiaries to the extent of the value of the assets securing
such indebtedness and are effectively subordinated to all other
obligations of the subsidiaries of WESCO Distribution.
We conduct certain of our operations through subsidiaries of
WESCO Distribution. Claims of creditors of such subsidiaries,
including trade creditors, and claims of preferred stockholders
(if any) of such subsidiaries generally have priority with
respect to the assets and earnings of such subsidiaries over the
claims of creditors of WESCO Distribution, including the holders
of Debentures by virtue of the guarantee of WESCO Distribution.
The Debentures, therefore, are effectively subordinated to
creditors (including trade creditors) and preferred stockholders
(if any) of subsidiaries of WESCO Distribution. As of
December 31, 2005 on an as adjusted basis, the subsidiaries
of WESCO Distribution had $212 million of Indebtedness,
excluding guarantees of indebtedness under the revolving credit
facility, but had trade payables and other liabilities incurred
in the ordinary course of business. The indenture does not limit
the incurrence of indebtedness by and the issuance of preferred
stock by any of WESCO Distributions subsidiaries.
As of December 31, 2005:
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the outstanding Senior Indebtedness of WESCO Distribution was
$103 million, $80 of which was Secured Indebtedness
(exclusive of unused commitments under the credit
facilities); and |
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WESCO Distribution had no outstanding Senior Subordinated
Indebtedness other than its senior subordinated notes and no
outstanding Indebtedness that is subordinate or junior in right
of repayment to the guarantee. |
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The indenture does not limit the incurrence of indebtedness by
and the issuance of preferred stock by WESCO Distribution.
With respect to WESCO Distribution, Senior
Indebtedness means the principal of, premium (if any) and
accrued and unpaid interest on (including interest accruing on
or after the filing of any petition in bankruptcy or for
reorganization of WESCO Distribution, regardless of whether or
not a claim for post-filing interest is allowed in such
proceedings), and fees and other amounts owing in respect of,
Bank Indebtedness and all other indebtedness of WESCO
Distribution, whether outstanding on the first closing date or
thereafter Incurred, unless in the instrument creating or
evidencing the same or pursuant to which the same is outstanding
it is provided that such obligations are not superior in right
of payment to the guaranteed obligations; provided, however,
that Senior Indebtedness does not include:
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any obligation of WESCO Distribution to any subsidiary; |
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any liability for federal, state, local or other taxes owed or
owing by WESCO Distribution; |
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any accounts payable or other liability to trade creditors
arising in the ordinary course of business (including guarantees
thereof or instruments evidencing such liabilities); |
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any indebtedness or obligation of WESCO Distribution (and any
accrued and unpaid interest in respect thereof) that by its
terms is subordinate or junior in any respect to any other
Indebtedness or obligation of WESCO Distribution, including any
Senior Subordinated Indebtedness of WESCO Distribution and any
Subordinated Obligations of WESCO Distribution; |
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any payment obligations with respect to any capital
stock; or |
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any indebtedness incurred in violation of the anti-layering
provision in the indenture. |
Bank Indebtedness means any and all amounts payable
under or in respect of the Credit Agreement and any Refinancing
Indebtedness with respect thereto, as amended, restated,
supplemented, waived, refinanced, replaced, renewed, extended or
otherwise modified from time to time, including principal,
premium (if any), interest (including interest accruing on or
after the filing of any petition in bankruptcy or for
reorganization relating to WESCO Distribution whether or not a
claim for post-filing interest is allowed in such proceedings),
fees, charges, expenses, reimbursement obligations, Guarantees
and all other amounts payable thereunder or in respect thereof.
Credit Agreement means the amended and restated
credit agreement dated as of June 17, 2005 among WESCO
Distribution, the other Credit Parties (as defined therein)
party thereto, General Electric Capital Corporation, for itself
as lender and as agent for lenders, the CIT Group/ Business
Credit, Inc., as syndication agent and lender and the other
lenders party thereto from time to time, as amended, restated,
supplemented, waived, refinanced, replaced, renewed, extended or
otherwise modified from time to time.
Designated Senior Indebtedness of WESCO Distribution
means (i) the Bank Indebtedness and (ii) any other
Senior Indebtedness of WESCO Distribution that, at the date of
determination, has an aggregate principal amount outstanding of,
or under which, at the date of determination, the holders
thereof are committed to lend up to at least $25.0 million
and is specifically designated by WESCO Distribution in the
instrument evidencing or governing such Senior Indebtedness as
Designated Senior Indebtedness for purposes of the
indenture.
Refinancing Indebtedness means indebtedness that is
incurred to refund, refinance, replace, renew, repay or extend
(including pursuant to any defeasance or discharge mechanism)
any indebtedness of WESCO Distribution or any Restricted
Subsidiary existing on the closing date of this offering or
incurred in compliance with the Note indenture (including
indebtedness of WESCO Distribution that refinances Refinancing
Indebtedness); provided, however, that (i) the Refinancing
Indebtedness has a stated maturity no earlier than the stated
maturity of the indebtedness being refinanced, (ii) the
Refinancing Indebtedness has an average life at the time such
Refinancing Indebtedness is Incurred that is equal to or greater
than the average life of the Indebtedness being refinanced and
(iii) such Refinancing Indebtedness is Incurred in an
aggregate principal amount (or if issued with original issue
discount, an aggregate issue price) that is equal to or less
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than the aggregate principal amount (or if issued with original
issue discount, the aggregate accreted value) then outstanding
of the indebtedness being refinanced (plus any accrued interest
and premium thereon and reasonable expenses incurred in
connection therewith); provided further, however, that
Refinancing Indebtedness shall not include (x) Indebtedness
of a Restricted Subsidiary (as defined in the indenture) that
Refinances Indebtedness of WESCO Distribution or
(y) indebtedness of WESCO Distribution or a Restricted
Subsidiary that refinances indebtedness of an Unrestricted
Subsidiary (as defined in the indenture).
Subordinated Obligation means any indebtedness of
WESCO Distribution (whether outstanding on the closing date or
thereafter incurred) that is subordinate or junior in right of
payment to the WESCO Distribution guarantee pursuant to a
written agreement.
Only indebtedness of WESCO Distribution that is Senior
Indebtedness ranks senior to the guarantee in accordance with
the provisions of the indenture. The guarantee is in all
respects rank pari passu with all other Senior Subordinated
Indebtedness of WESCO Distribution, including WESCO
Distributions senior subordinated notes. WESCO
Distribution has agreed in the indenture that it will not incur,
directly or indirectly, any indebtedness which is subordinate or
junior in ranking in any respect to Senior Indebtedness unless
such Indebtedness is Senior Subordinated Indebtedness or is
expressly subordinated in right of payment to Senior
Subordinated Indebtedness. Unsecured Indebtedness is not deemed
to be subordinate or junior to Secured Indebtedness merely
because it is unsecured.
WESCO Distribution may not pay principal of, premium (if any) or
interest (including contingent interest and additional interest,
if any) in respect of the guarantee of the Debentures, and may
not otherwise repurchase, redeem or otherwise retire any
Debentures (collectively, pay its guarantee) if:
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any Designated Senior Indebtedness is not paid in cash or cash
equivalents when due; or |
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any other default on Designated Senior Indebtedness occurs and
the maturity of such Designated Senior Indebtedness is
accelerated in accordance with its terms unless, in either case
the default has been cured or waived and any such acceleration
has been rescinded or such Designated Senior Indebtedness has
been paid in full in cash or cash equivalents. |
However, WESCO Distribution may make payment in respect of its
guarantee without regard to the foregoing, if WESCO Distribution
and the trustee receive written notice approving such payment
from the representative of the Designated Senior Indebtedness
with respect to which either of the events set forth above has
occurred and is continuing. During the continuance of any
default (other than a default described in the preceding
paragraph) with respect to any Designated Senior Indebtedness
pursuant to which the maturity thereof may be accelerated
immediately without further notice (except such notice as may be
required to effect such acceleration) or the expiration of any
applicable grace periods, WESCO Distribution may not pay its
guarantee for a period, referred to as Payment Blockage
Period, commencing upon the receipt by the trustee (with a
copy to WESCO Distribution) of written notice, or Blockage
Notice, of such default from the representative of such
Designated Senior Indebtedness specifying an election to effect
a Payment Blockage Period and ending 179 days thereafter
(or earlier if such Payment Blockage Period is terminated by
written notice to the Trustee and WESCO Distribution from the
Person or Persons who gave such Blockage Notice, by repayment in
full in cash or cash equivalents of such Designated Senior
Indebtedness or because the default giving rise to such Blockage
Notice is no longer continuing). Notwithstanding the provisions
described in the immediately preceding sentence (but subject to
the provisions contained in the first sentence of this
paragraph), unless the holders of such Designated Senior
Indebtedness or the Representative of such holders have
accelerated the maturity of such Designated Senior Indebtedness,
WESCO Distribution may resume payments on its guarantee after
the end of such Payment Blockage Period. Not more than one
Blockage Notice may be given in any consecutive
360-day period,
irrespective of the number of defaults with respect to
Designated Senior Indebtedness during such period. However, if
any Blockage Notice within such
360-day period is given
by or on behalf of any holders of Designated Senior Indebtedness
other than the Bank Indebtedness, the representative of the Bank
Indebtedness may give another Blockage Notice within such
period. In no event, however, may the total number of days
during which any Payment Blockage Period or Periods is in effect
exceed 179 days in the aggregate during any 360 consecutive
day period. For purposes of this paragraph, no default or event
of default that existed or was continuing on the date of the
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commencement of any Payment Blockage Period with respect to the
Designated Senior Indebtedness initiating such Payment Blockage
Period shall be, or be made, the basis of the commencement of a
subsequent Payment Blockage Period by the Representative of such
Designated Senior Indebtedness, whether or not within a period
of 360 consecutive days, unless such default or event of default
has been cured or waived for a period of not less than 90
consecutive days.
Upon any payment or distribution of the assets of WESCO
Distribution to creditors upon a total or partial liquidation or
a total or partial dissolution of WESCO Distribution or in a
bankruptcy, reorganization, insolvency, receivership or similar
proceeding relating to WESCO Distribution or its property,
(1) the holders of Senior Indebtedness of WESCO
Distribution will be entitled to receive payment in full in cash
or cash equivalents of such Senior Indebtedness before the
holders of the Debentures, pursuant to the guarantee, are
entitled to receive any payment of principal of, premium (if
any) or interest (including contingent interest and additional
interest, if any) in respect of the guarantee of the Debentures
and (2) until such Senior Indebtedness is paid in full in
cash or cash equivalents, any payment or distribution to which
holders of the Debentures would be entitled in relation to the
guarantee but for the subordination provisions of the indenture
will be made to holders of such Senior Indebtedness as their
interests may appear. If a distribution is made to holders of
the Debentures that due to the subordination provisions of the
indenture should not have been made to them, such holders are
required to hold it in trust for the holders of Senior
Indebtedness of WESCO Distribution and pay it over to them as
their interests may appear.
If payment of the Debentures is accelerated because of an Event
of Default, WESCO Distribution or the trustee shall promptly
notify the holders of the Designated Senior Indebtedness (or
their Representative) of the acceleration. If any Designated
Senior Indebtedness is outstanding, WESCO Distribution may not
pay the Debentures until five Business Days after such holders
or the Representative of the Designated Senior Indebtedness
receive notice of such acceleration and, thereafter, may pay the
Debentures only if the subordination provisions of the indenture
otherwise permit payment at that time.
By reason of these subordination provisions contained in the
indenture in relation to the guarantee, in the event of
insolvency, creditors of WESCO Distribution who are holders of
Senior Indebtedness of WESCO Distribution may recover more,
ratably, than the holders of the Debentures, and creditors of
WESCO Distribution who are not holders of Senior Indebtedness of
WESCO Distribution or who are holders of Senior Subordinated
Indebtedness of WESCO Distribution (including the Debentures by
virtue of the guarantee of WESCO Distribution) may recover less,
ratably, than holders of Senior Indebtedness of WESCO
Distribution.
Conversion Rights
Holders may convert their Debentures prior to the close of
business on the trading day immediately preceding the maturity
date based on an initial conversion rate of 23.8872 shares
of common stock per $1,000 principal amount of Debentures
(equivalent to an initial conversion price of approximately
$41.86 per share), only if the conditions for conversion
described below are satisfied. The conversion rate is subject to
adjustment as described below. As described under
Conversion Procedures Settlement
Upon Conversion, upon conversion of Debentures, we will
pay cash and shares of our common stock, if any, based on a
daily conversion value calculated on a proportionate basis for
each day of the 20 trading-day cash settlement averaging period.
Unless we have previously redeemed or purchased the Debentures,
you will have the right to convert any portion of the principal
amount of any Debentures that is an integral multiple of $1,000
at any time on or prior to the close of business on the trading
day immediately preceding the maturity date only under the
following circumstances:
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(1) prior to October 15, 2023, on any date during any
fiscal quarter beginning after December 31, 2005 (and only
during such fiscal quarter) if the closing sale price of our
common stock was more than 120% of the then current conversion
price for at least 20 trading days in the period of the 30
consecutive trading days ending on the last trading day of the
previous fiscal quarter; |
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(2) at any time on or after October 15, 2023; |
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(3) with respect to any Debentures called for redemption,
until the close of business on the business day prior to the
redemption date; |
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(4) if we distribute to all or substantially all holders of
our common stock rights, options or warrants entitling them to
purchase, for a period of 45 calendar days or less, shares of
our common stock at a price less than the average closing sale
price for the ten trading days preceding the declaration date
for such distribution, as described below in more detail under
Conversion Upon Specified Corporate
Transactions; |
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(5) if we distribute to all or substantially all holders of
our common stock, cash or other assets, debt securities or
rights to purchase our securities, which distribution has a per
share value exceeding 5% of the closing sale price of our common
stock on the trading day preceding the declaration date for such
distribution, as described below in more detail under
Conversion Upon Specified Corporate
Transactions; |
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(6) during a specified period if a fundamental change
occurs, as described in more detail below under
Conversion Upon a Fundamental
Change; or |
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(7) during the five consecutive trading-day period
following any five consecutive trading-day period in which the
average trading price for the Debentures was less than 98% of
the product of the closing sale price of our common stock and
the then current conversion rate for each day of such five
trading-day period, as described in more detail below under
Conversion Upon Satisfaction of Trading Price
Condition; we refer to this condition as the trading
price condition. |
In the case of clauses (4) and (5) immediately above,
we will notify you at least 20 calendar days prior to the
ex-dividend date for such distribution; once we have given such
notice, you may surrender your Debentures for conversion at any
time until the earlier of 5:00 p.m., New York City time, on
the business day preceding the ex-dividend date and any
announcement by us that such distribution will not take place;
in the case of a distribution identified in clauses (4) and
(5) immediately above, you may not convert your Debentures
if you will otherwise participate in the distribution without
conversion as a result of holding the Debentures.
The closing sale price of any share of our common
stock on any trading date means the closing sale price of such
security (or if no closing sale price is reported, the average
of the closing bid and closing ask prices or, if more than one
in either case, the average of the average closing bid and the
average closing ask prices) on such date as reported in
composite transactions for the principal U.S. securities
exchange on which our common stock is traded or, if our common
stock is not listed on a U.S. national or regional
securities exchange, as reported by the Nasdaq System or by Pink
Sheets LLC. In the absence of such a quotation, the closing sale
price by a nationally recognized securities dealer retained by
us for that purpose. The closing sale price will be determined
without reference to extended or after hours trading. The
conversion price on any day will equal $1,000
divided by the conversion rate in effect on that day.
Except as provided in the next paragraph, upon conversion, you
will not receive any separate cash payment of accrued and unpaid
interest (including contingent interest or additional interest,
if any, but excluding any additional interest) on the
Debentures. Accrued and unpaid interest (including contingent
interest or additional interest, if any, but excluding any
additional interest) and accrued tax original issue discount, if
any, to the conversion date is deemed to be paid in full with
the shares of our common stock issued or cash paid upon
conversion rather than cancelled, extinguished or forfeited.
If you convert after the record date for an interest payment but
prior to the corresponding interest payment date, you will
receive on the corresponding interest payment date the interest
(including contingent interest and additional interest, if any)
accrued and unpaid on your Debentures, notwithstanding your
conversion of those Debentures prior to the interest payment
date, assuming you were the holder of record on the
corresponding record date. However, except as provided in the
next sentence, at the time you surrender your Debentures for
conversion, you must pay us an amount equal to the interest
(including contingent
19
interest, if any, but excluding any additional interest) that
has accrued and will be paid on the Debentures being converted
on the corresponding interest payment date. You are not required
to make such payment:
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if you convert your Debentures in connection with a redemption
and we have specified a redemption date that is after a record
date and on or prior to the corresponding interest payment date; |
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if you convert your Debentures in connection with a fundamental
change and we have specified a fundamental change repurchase
date that is after a record date and on or prior to the
corresponding interest payment date; or |
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to the extent of any overdue interest (including overdue
contingent interest or additional interest, if any), if overdue
interest (or overdue contingent interest) exists at the time of
conversion with respect to your Debentures. |
Except as described under Conversion Rate
Adjustments, we will not make any payment or other
adjustment for dividends on any common stock issued upon
conversion of the Debentures.
We will not issue fractional shares of our common stock upon
conversion of the Debentures. Instead, we will pay cash in lieu
of fractional shares based on the closing sale price of our
common stock on the trading day immediately preceding the
conversion date.
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Conversion Upon Specified Corporate Transactions |
You will have the right to convert your Debentures if we:
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distribute to all or substantially all holders of our common
stock rights, options or warrants (other than pursuant to a
rights plan) entitling them to purchase, for a period of 45
calendar days or less, shares of our common stock at a price
less than the average closing sale price for the ten trading
days preceding the declaration date for such
distribution; or |
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distribute to all or substantially all holders of our common
stock, cash or other assets, debt securities or rights to
purchase our securities (other than pursuant to a rights plan),
which distribution has a per share value exceeding 5% of the
closing sale price of our common stock on the trading day
preceding the declaration date for such distribution. |
We will notify you at least 20 calendar days prior to the
ex-dividend date for such distribution. Once we have given such
notice, you may surrender your Debentures for conversion at any
time until the earlier of 5:00 p.m., New York City time, on
the business day preceding the ex-dividend date or any
announcement by us that such distribution will not take place.
You may not convert any of your Debentures based on this
conversion contingency if you will otherwise participate in the
distribution without conversion as a result of holding the
Debentures.
You will also have the right to convert your Debentures if we
are a party to a consolidation, merger, binding share exchange
or sale or conveyance of all or substantially all of our
property and assets not constituting a fundamental change, in
each case pursuant to which our common stock would be converted
into cash, securities and/or other property. In such event, you
will have the right to convert your Debentures at any time
beginning 15 calendar days prior to the date announced by us as
the anticipated effective date of the transaction and until and
including the date which is 15 calendar days after the date that
is the actual effective date of such transaction. If you do not
convert your Debentures during this period, you will generally
be entitled to receive, upon subsequent conversion, if any, the
kind and amount of cash, securities and other property that you
would have received if you had converted your Debentures
immediately prior to the transaction.
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Conversion Upon a Fundamental Change |
If a fundamental change (as defined under
Repurchase at Option of the Holder
Fundamental Change Put) occurs, you will have the right to
convert your Debentures at any time beginning on the business
day following the effective date of the fundamental change until
5:00 p.m., New York City time, on
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the business day preceding the repurchase date relating to such
fundamental change. We will notify you of the anticipated
effective date of any fundamental change at least 10 calendar
days prior to such date. If you convert your Debentures in
connection with a fundamental change, you will receive:
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(1) cash equal to the lesser of (i) the principal
amount of the Debentures converted and (ii) the conversion
value and (2) if the conversion value exceeds the principal
amount of the Debentures converted, an amount of cash,
securities and other assets or property equal to such excess
based on the consideration that you would have received if you
had held a number of shares of common stock based on the
conversion rate immediately prior to the transaction, with the
conversion value based on the consideration received in such
transaction; and |
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under certain circumstances, the transaction consideration with
respect to additional shares of common stock, which will be in
an amount determined as set forth under
Adjustment to Conversion Rate Upon a Non-Stock
Change of Control and which will be payable following
certain types of fundamental change. |
If you have submitted any or all of your Debentures for
repurchase, unless you have withdrawn such Debentures in a
timely fashion, your conversion rights on the Debentures so
subject to repurchase will expire at 5:00 p.m., New York
City time, on the business day preceding the repurchase date,
unless we default in the payment of the repurchase price. If you
have submitted any Debentures for repurchase, such Debentures
may be converted only if you submit a withdrawal notice, and if
the Debentures are evidenced by global Debentures, you comply
with appropriate DTC procedures.
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Conversion Upon Satisfaction of Trading Price
Condition |
You may surrender your Debentures for conversion prior to
maturity during the five trading-day period following any five
consecutive trading-day period in which the trading
price per $1,000 principal amount of Debentures, as
determined following a request by a holder of Debentures in
accordance with the procedures described below, for each trading
day of such five trading-day period was less than 98% of the
product of the closing sale price of our common stock and the
then current conversion rate for each day of such five-day
trading period.
The trading price of the Debentures on any date of
determination means the average of the secondary market bid
quotations per $1,000 principal amount of Debentures obtained by
the trustee for $5,000,000 principal amount of the Debentures at
approximately 3:30 p.m., New York City time, on such
determination date from two independent nationally recognized
securities dealers we select, which may include one or more of
the initial purchasers, provided that if at least two such bids
cannot reasonably be obtained by the trustee, but one such bid
can reasonably be obtained by the trustee, this one bid will be
used. If the trustee cannot reasonably obtain at least one bid
for $5,000,000 principal amount of the Debentures from a
nationally recognized securities dealer, then, for purposes of
the trading price condition only, the trading price of the
Debentures will be deemed to be less than 98% of the applicable
conversion rate of the Debentures multiplied by the closing sale
price of our common stock on such determination date.
The trustee will determine the trading price of the Debentures
upon our request. We will have no obligation to make that
request unless a holder of Debentures requests that we do so. If
a holder provides such request, we will instruct the trustee to
determine the trading price of the Debentures for the applicable
period.
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Procedures to be Followed by a Holder |
If you hold a beneficial interest in global Debentures, to
convert you must deliver to DTC the appropriate instruction form
for conversion pursuant to DTCs conversion program and, if
required, pay funds equal to interest payable (including
contingent interest or additional interest, if any, but
excluding any additional interest) on the next interest payment
date to which you are not entitled and, if required, pay all
taxes or duties, if any.
21
If you hold certificated Debentures, to convert you must:
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complete and manually sign the conversion notice on the back of
the Debentures or a facsimile of the conversion notice; |
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deliver the completed conversion notice and the Debentures to be
converted to the conversion agent; |
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if required, furnish appropriate endorsements and transfer
documents; |
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if required, pay funds equal to interest (including contingent
interest or additional interest, if any, but excluding any
additional interest) payable on the next interest payment date
to which you are not entitled; and |
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if required, pay all transfer or similar taxes, if any. |
The conversion date will be the date on which you have satisfied
all of the foregoing requirements. The Debentures will be deemed
to have been converted immediately prior to 5:00 p.m., New
York City time, on the conversion date.
You will not be required to pay any taxes or duties relating to
the issuance or delivery of our common stock if you exercise
your conversion rights, but you will be required to pay any tax
or duty that may be payable relating to any transfer involved in
the issuance or delivery of the common stock in a name other
than your own. Certificates representing common stock will be
issued and delivered only after all applicable taxes and duties,
if any, payable by you have been paid in full.
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Settlement Upon Conversion |
Upon conversion, we will deliver to holders in respect of each
$1,000 principal amount of Debentures being converted a
settlement amount equal to the sum of the daily
settlement amounts (as defined below) for each of the twenty
trading days during the cash settlement averaging period.
The cash settlement averaging period with respect to
any Debentures means the 20 consecutive trading-day period
beginning on and including the second trading day after you
deliver your conversion notice to the conversion agent, except
that with respect to any notice of conversion received after the
date of issuance of a notice of redemption as described under
Optional redemption, the cash
settlement averaging period means the 20 consecutive
trading days beginning on and including the twenty-third
scheduled trading day prior to the applicable redemption date
and except that with respect to any conversion arising solely by
reason of the occurrence of a fundamental change, the cash
settlement averaging period means the 20 consecutive
trading days beginning on and including the twenty-third
scheduled trading day prior to the fundamental change repurchase
date.
Daily settlement amount, for each $1,000 principal
amount of Debentures, for each of the twenty trading days during
the cash settlement averaging period, shall consist of:
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cash equal to the lesser of $50 and the daily conversion
value; and |
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to the extent the daily conversion value exceeds $50, a number
of shares equal to, (A) the difference between the daily
conversion value and $50, divided by (B) the closing sale
price of our common stock for such day. |
Daily conversion value means, for each of the 20
consecutive trading days during the cash settlement averaging
period, one-twentieth (1/20) of the product of (1) the
applicable conversion rate and (2) the closing sale price
of our common stock (or the consideration into which our common
stock has been converted in connection with certain corporate
transactions) on such day.
Trading day means a day during which
(i) trading in our common stock generally occurs,
(ii) there is no market disruption event and (iii) a
closing sale price for our common stock is provided on the New
York Stock Exchange or, if our common stock is not listed on the
New York Stock Exchange, on the principal other
U.S. national or regional securities exchange on which our
common stock is then listed or, if our
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common stock is not listed on a U.S. national or regional
securities exchange, on the principal other market on which our
common stock is then traded.
Market disruption event means the occurrence or
existence during the one-half hour period ending on the
scheduled close of trading on any trading day for our common
stock of any material suspension or limitation imposed on
trading (by reason of movements in price exceeding limits
permitted by the stock exchange or otherwise) in our common
stock or in any options, contracts or future contracts relating
to our common stock.
We will deliver the settlement amount to converting holders on
the third business day immediately following the last day of the
applicable cash settlement averaging period.
We will deliver cash in lieu of any fractional shares of common
stock issuable in connection with payment of the settlement
amount.
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Conversion Rate Adjustments |
We will adjust the conversion rate for certain events, including:
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(1) issuances of our common stock as a dividend or
distribution on our common stock; |
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(2) certain subdivisions, combinations or reclassifications
of our common stock; |
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(3) issuances to all or substantially all holders of our
common stock of certain rights or warrants to purchase, for a
period of up to 45 days, our common stock at less than the
then-current market price of our common stock, provided that the
conversion rate will be readjusted to the extent that any of the
rights or warrants are not exercised prior to their expiration; |
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(4) distributions to all or substantially all holders of
our common stock, shares of our capital stock (other than our
common stock), evidences of our indebtedness or assets,
including securities, but excluding: |
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the rights and warrants referred to in clause (3) above; |
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any dividends and distributions in connection with a
reclassification, change, consolidation, merger, combination,
sale or conveyance resulting in a change in the conversion
consideration pursuant to the sixth succeeding paragraph below; |
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any dividends or distributions paid exclusively in cash; or |
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any dividends or distributions referred to in the
clause (1) above; |
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(5) dividends or other distributions consisting exclusively
of cash to all or substantially all holders of our common stock
(other than dividends or distributions made in connection with
our liquidation, dissolution or
winding-up or upon a
merger or consolidation), in which event the conversion rate
will be adjusted by multiplying: |
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the conversion rate by, a fraction, |
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the numerator of which will be the current market price of our
common stock and the denominator of which will be the current
market price of our common stock minus the amount per share of
such dividend or distribution. |
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(6) purchases of our common stock pursuant to a tender
offer or exchange offer made by us or any of our subsidiaries to
the extent that the cash and value of any other consideration
included in the payment per share of common stock exceeds the
closing sale price per share of our common stock on the trading
day next succeeding the last date on which tenders or exchanges
may be made pursuant to such tender or exchange offer; and |
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(7) purchases of our common stock pursuant to a tender
offer or exchange offer by a person other than us or any or our
subsidiaries in which, as of the closing date of the offer, our
board of directors is |
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not recommending rejection of the offer. The adjustment referred
to in this provision will only be made if: |
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the tender offer or exchange offer is for an amount that
increases the offerors ownership of WESCO International
common stock to more than 25% of the total shares of common
stock outstanding; and |
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if the cash and value of any other consideration included in
such payment per share exceeds the current market price per
share on the business day immediately following the last date on
which tenders or exchanges may be made pursuant to such tender
or exchange offer. |
However, the adjustment referred to in this clause (7) will
generally not be made if, as of the closing of the offer, the
offering documents disclose a plan or an intention to cause us
to engage in a consolidation or merger or sale of all or
substantially all of our assets.
For purposes of clause (3) and (5) above,
current market price means the average closing sale
price of our common stock for the 10 consecutive trading days
immediately prior to the record date for the distribution
requiring such computation.
To the extent that any future rights plan adopted by us is in
effect upon conversion of the Debentures into common stock only
or a combination of cash and common stock, you will receive, in
addition to the common stock, the rights under the applicable
rights agreement unless the rights have separated from our
common stock at the time of conversion of the Debentures, in
which case, the conversion rate will be adjusted as if we
distributed to all holders of our common stock shares of our
capital stock, evidences of indebtedness or assets as described
above in clause (4), subject to readjustment in the event
of the expiration, termination or redemption of such rights.
We will not make any adjustment if holders may participate in
the transaction or in certain other cases. In cases where the
fair market value of assets, debt securities or certain rights,
warrants or options to purchase our securities, applicable to
one share of common stock, distributed to stockholders:
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equals or exceeds the average closing price of the common stock
over the ten consecutive trading day period ending on the record
date for such distribution, or |
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such average closing price exceeds the fair market value of such
assets, debt securities or rights, warrants or options so
distributed by less than $1.00, |
rather than being entitled to an adjustment in the conversion
price, the holder of a Debenture will be entitled to receive
upon conversion, in addition to the shares of common stock, the
kind and amount of assets, debt securities or rights, warrants
or options comprising the distribution that such holder would
have received if such holder had converted such Debentures
solely into common stock immediately prior to the record date
for determining the stockholders entitled to receive the
distribution.
Except as stated above, we will not adjust the conversion rate
for the issuance of our common stock or any securities
convertible into or exchangeable for our common stock or
carrying the right to purchase any of the foregoing.
In the event that we distribute shares of capital stock of a
subsidiary of ours pursuant to clause (4) above, the
conversion rate will be adjusted, if at all, based on the market
value of the subsidiary stock so distributed relative to the
market value of our common stock, in each case over a
measurement period following the distribution.
If we:
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reclassify or change our common stock (other than changes
resulting from a subdivision or combination), or |
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consolidate or merge with or into any person or sell, lease,
transfer, convey or otherwise dispose of all or substantially
all of our assets and those of our subsidiaries taken as a whole
to another person, |
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and the holders of our common stock receive stock, other
securities or other property or assets (including cash or any
combination thereof) with respect to or in exchange for their
common stock, each outstanding Debenture will, without the
consent of any holders of the Debentures, become convertible
only into the cash and other consideration the holders of the
Debentures would have received if they had converted their
Debentures immediately prior to such reclassification, change,
consolidation, merger, sale, lease, transfer, conveyance or
other disposition (assuming such holder of common stock received
proportionately the same consideration received by all common
stock holders in the aggregate), except in the limited case of a
public acquirer change of control where we elect to have the
Debentures convertible into public acquirer common stock as
described below under Conversion After a
Public Acquirer Change of Control and except that the
provisions above under Settlement Upon
Conversion relating to the satisfaction of the conversion
obligation shall continue to apply with the daily conversion
value calculated based on the consideration received in such
transaction. We may not become a party to any such transaction
unless its terms are consistent with the foregoing.
If a taxable distribution to holders of our common stock or
other transaction occurs that results in any adjustment of the
conversion rate (including an adjustment at our option), you
may, in certain circumstances, be deemed to have received a
distribution subject to U.S. income tax as a dividend. In
certain other circumstances, the absence of an adjustment may
result in a taxable dividend to the holders of our common stock.
See Certain U.S. Federal Income and Estate Tax
Considerations.
We may from time to time, to the extent permitted by law,
increase the conversion rate of the Debentures by any amount for
any period of at least 20 business days. In that case, we will
give at least 15 days prior notice of such increase. We may
make such increases in the conversion rate, in addition to those
set forth above, as our board of directors deems advisable to
avoid or diminish any income tax to holders of our common stock
resulting from any dividend or distribution of stock (or rights
to acquire stock) or from any event treated as such for income
tax purposes.
We will not be required to make an adjustment in the conversion
rate unless the adjustment would require a change of at least 1%
in the conversion rate. However, we will carry forward any
adjustment that is less than 1% of the conversion rate, take
such carried-forward adjustments into account in any subsequent
adjustment, and make such carried-forward adjustments,
regardless of whether the aggregate adjustment is less than 1%,
(a) annually on the anniversary of the first date of issue
of the Debentures and (b) otherwise (1) five business
days prior to the maturity of the Debentures (whether at stated
maturity or otherwise) or (2) prior to the redemption date
or repurchase date, unless such adjustment has already been made.
If we adjust the conversion rate pursuant to the above
provisions, we will issue a press release through Business Wire
containing the relevant information and make this information
available on our website or through another public medium as we
may use at that time.
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Adjustment to Conversion Rate Upon a Non-Stock Change of
Control |
Prior to October 15, 2010, if and only to the extent you
elect to convert your Debentures in connection with a
transaction described under clause (1) or clause (4)
under the definition of a fundamental change described below
under Repurchase at Option of the
Holder Fundamental Change Put pursuant to
which 10% or more of the consideration for our common stock
(other than cash payments for fractional shares and cash
payments made in respect of dissenters appraisal rights)
in such fundamental change transaction consists of cash or
securities (or other property) that are not shares of common
stock, depositary receipts or other certificates representing
common equity interests traded or scheduled to be traded
immediately following such transaction on a U.S. national
securities exchange or The Nasdaq National Market, which we
refer to as a non-stock change of control, we will
increase the conversion rate as described below. The number of
additional shares by which the conversion rate is increased (the
additional shares) will be determined by reference
to the table below, based on the date on which the non- stock
change of control becomes effective (the effective
date) and the price (the stock price) paid per
share for our common stock in such non-stock change of control.
If holders of our common stock receive only cash in such
transaction, the price paid per share will be the cash amount
paid per share. Otherwise, the price paid
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per share will be the average of the closing sale prices of our
common stock on the five trading days prior to but not including
the effective date of such non-stock change of control. We will
notify you of the anticipated effective date of any fundamental
change at least 20 calendar days prior to such date.
A conversion of the Debentures by a holder will be deemed for
these purposes to be in connection with a non-stock
change of control if the conversion notice is received by the
conversion agent following the effective date of the non-stock
change of control but before 5:00 p.m., New York City time,
on the business day immediately preceding the related repurchase
date (as specified in the repurchase notice described under
Repurchase at the Option of the
Holder Fundamental Change Put).
The number of additional shares will be adjusted in the same
manner as and as of any date on which the conversion rate of the
Debentures is adjusted as described above under
Conversion Rate Adjustments. The stock
prices set forth in the first row of the table below (i.e., the
column headers) will be simultaneously adjusted to equal the
stock prices immediately prior to such adjustment, multiplied by
a fraction, the numerator of which is the conversion rate
immediately prior to the adjustment and the denominator of which
is the conversion rate as so adjusted.
The following table sets forth the number of additional shares
by which the conversion rate shall be adjusted:
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Stock Price | |
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Effective Date |
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$31.01 | |
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$40.00 | |
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$45.00 | |
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$50.00 | |
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$55.00 | |
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$60.00 | |
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$65.00 | |
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$70.00 | |
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$75.00 | |
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$80.00 | |
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September 27, 2005
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8.36 |
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4.90 |
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3.78 |
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2.99 |
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2.41 |
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1.98 |
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1.65 |
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1.39 |
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1.19 |
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1.02 |
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October 15, 2006
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8.23 |
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4.59 |
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3.45 |
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2.66 |
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2.10 |
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1.69 |
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1.39 |
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1.15 |
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0.97 |
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0.83 |
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October 15, 2007
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8.10 |
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4.22 |
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3.05 |
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2.27 |
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1.73 |
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1.35 |
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1.08 |
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0.88 |
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0.73 |
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0.61 |
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October 15, 2008
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7.94 |
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3.70 |
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2.50 |
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1.73 |
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1.24 |
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0.91 |
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0.70 |
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0.55 |
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0.44 |
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0.37 |
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October 15, 2009
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7.80 |
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2.92 |
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1.66 |
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0.96 |
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0.57 |
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0.35 |
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0.24 |
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0.17 |
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0.13 |
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0.11 |
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October 15, 2010
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0.00 |
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0.00 |
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0.00 |
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0.00 |
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0.00 |
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0.00 |
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0.00 |
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0.00 |
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0.00 |
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0.00 |
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The exact stock price and effective dates may not be set forth
on the table, in which case, if the stock price is:
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between two stock price amounts on the table or the effective
date is between two dates on the table, the number of additional
shares will be determined by straight-line interpolation between
the number of additional shares set forth for the higher and
lower stock price amounts and the two dates, as applicable,
based on a 360-day year; |
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in excess of $80.00 per share (subject to adjustment), no
additional shares will be issued upon conversion; |
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less than $31.01 per share (subject to adjustment), no
additional shares will be issued upon conversion. |
Notwithstanding the foregoing, in no event will the total number
of shares of common stock issuable upon conversion exceed
32.2476 per $1,000 principal amount of the Debentures,
subject to adjustments in the same manner as the conversion rate.
Any conversion that entitles the converting holder to an
adjustment to the conversion rate as described in this section
shall be settled as described under Settlement
Upon Conversion above.
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Conversion After a Public Acquirer Change of
Control |
Notwithstanding the foregoing, in the case of a non-stock change
of control constituting a public acquirer change of control (as
defined below), we may, in lieu of issuing additional shares
upon conversion as described in Adjustment to
Conversion Rate Upon a Non-Stock Change of Control above,
elect to adjust our conversion obligation and the conversion
rate such that from and after the effective date of such public
acquirer change of control, holders of the Debentures will be
entitled to convert their Debentures
26
(subject to the satisfaction of certain conditions) into cash
and shares of public acquirer common stock (as defined below),
and the conversion rate in effect immediately before the public
acquirer change of control will be adjusted by multiplying it by
a fraction:
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the numerator of which will be (i) in the case of a share
exchange, consolidation, merger or binding share exchange,
pursuant to which our common stock is converted into cash,
securities or other property, the average value of all cash and
any other consideration (as determined by our board of
directors) paid or payable per share of common stock or
(ii) in the case of any other public acquirer change of
control, the average of the closing sale prices of our common
stock for the five consecutive trading days prior to but
excluding the effective date of such public acquirer change of
control, and |
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the denominator of which will be the average of the closing sale
prices of the public acquirer common stock for the five
consecutive trading days commencing on the trading day next
succeeding the effective date of such public acquirer change of
control. |
A public acquirer change of control means a
non-stock change of control in which the acquirer has a class of
common stock traded on a U.S. national securities exchange
or quoted on the Nasdaq National Market or that will be so
traded or quoted when issued or exchanged in connection with
such non-stock change of control (the public acquirer
common stock). If an acquirer does not itself have a class
of common stock satisfying the foregoing requirement, it will be
deemed to have public acquirer common stock if a
corporation that directly or indirectly owns at least a majority
of the acquirer has a class of common stock satisfying the
foregoing requirement, provided that such corporation fully and
unconditionally guarantees the Debentures, in which case all
references to public acquirer common stock will refer to such
class of common stock. Majority owned for these purposes means
having beneficial ownership (as defined in
Rule 13d-3 under
the Securities Exchange Act of 1934, as amended (the
Exchange Act) of more than 50% of the total voting
power of all shares of the respective entitys capital
stock that are entitled to vote generally in the election of
directors.
Upon a public acquirer change of control, if we so elect,
holders may convert their Debentures (subject to the
satisfaction of the conditions to conversion described under
Conversion Procedures Procedures
to be Followed by a Holder above) for cash and public
acquirer common stock at the adjusted conversion rate described
in the second preceding paragraph but will not be entitled to
receive additional shares upon conversion as described under
Adjustment to Conversion Rate Upon a Non-Stock
Change of Control. We are required to notify holders of
our election in our notice to holders of such transaction.
Following any such election, the provisions set forth herein,
including those set forth under Settlement
Upon Conversion shall continue to apply except that
reference to our common stock shall be deemed to refer to the
public acquirer common stock. In addition, upon a public
acquirer change of control, in lieu of converting the
Debentures, the holder can, subject to certain conditions,
require us to repurchase all or a portion of the Debentures
owned by the holder as described below under
Repurchase at Option of the
Holders Fundamental Change Put.
At any time on or after October 15, 2010, we may redeem all
or a part of the Debentures at a redemption price equal to 100%
of the principal amount of the Debentures. In addition, we will
pay interest (including contingent interest and additional
interest, if any), on the Debentures being redeemed. This
interest (including contingent interest and additional interest,
if any), will include such interest accrued and unpaid to, but
excluding, the redemption date. However, if the redemption date
is after a record date and on or prior to the corresponding
interest payment date, the interest (including contingent
interest or additional interest, if any) and additional
interest, if any, will be paid on the redemption date to the
holder of record on the record date.
27
We will give notice of redemption not less than 30 nor more than
60 days prior to the redemption date to all record holders
of Debentures at their addresses set forth in the register of
the registrar. This notice will state, among other things:
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that you have a right to convert the Debentures called for
redemption, and the conversion rate then in effect; |
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the date on which your right to convert the Debentures called
for redemption will expire; and |
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the date on which the conversion and cash settlement averaging
period will begin. |
If we do not redeem all of the Debentures, the trustee will
select the Debentures to be redeemed in principal amounts of
$1,000 or integral multiples of $1,000 by lot, pro rata or by
another method the trustee considers fair and appropriate. If
any Debentures are to be redeemed in part only, we will issue a
new Debenture in principal amount equal to the unredeemed
principal portion thereof. If a portion of your Debentures is
selected for partial redemption and you convert a portion of
your Debentures, the converted portion will be deemed to be
taken from the portion selected for redemption.
Additionally, we will not be required to:
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issue, register the transfer of, or exchange any Debentures
during the period of 15 days before the mailing of the
notice of redemption, or |
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register the transfer of or exchange any Debentures so selected
for redemption, in whole or in part, except the unredeemed
portion of any Debentures being redeemed in part. |
We may not redeem the Debentures if we have failed to pay
interest on the Debentures and such failure to pay is continuing.
Repurchase at the Option of the Holder
On October 15, 2010, October 15, 2015 and
October 15, 2020, you will have the right to require us to
repurchase, at the repurchase price described below, all or part
of your Debentures for which you have properly delivered and not
withdrawn a written repurchase notice. The Debentures submitted
for repurchase must be $1,000 in principal amount or whole
multiples thereof.
The repurchase price will be payable in cash and will equal 100%
of the principal amount of the Debentures being repurchased,
plus accrued and unpaid interest (including contingent interest
and additional interest, if any) to, but excluding, the
repurchase date. However, if the repurchase date is after a
record date and on or prior to the corresponding interest
payment date, the interest (including contingent interest and
additional interest, if any) will be paid on the repurchase date
to the holder of record on the record date.
We may be unable to repurchase your Debentures upon your
exercise of your repurchase right. Our ability to repurchase
Debentures in cash in the future may be limited by the terms of
our then-existing borrowing agreements. Accordingly, we cannot
assure you that we would have the financial resources, or would
be able to arrange financing, to pay the repurchase price in
cash.
We will give notice at least 20 business days prior to each
repurchase date to all record holders at their addresses shown
in the register of the registrar and to beneficial owners as
required by applicable law. This notice will state, among other
things, the procedures that you must follow to require us to
repurchase your Debentures.
To exercise your repurchase right, you must deliver at any time
from 9:00 a.m., New York City time, on the date that is 20
business days prior to the applicable repurchase date to
5:00 p.m., New York City time, on the applicable repurchase
date, a written notice to the paying agent of your exercise of
your repurchase right (together with the Debentures to be
repurchased, if certificated Debentures have been issued). The
repurchase notice must state:
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if you hold a beneficial interest in a global Debenture, your
repurchase notice must comply with appropriate DTC procedures;
if you hold certificated Debentures, the Debentures certificate
numbers; |
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the portion of the principal amount of your Debentures to be
repurchased, which must be in $1,000 multiples; and |
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that the Debentures are to be repurchased by us pursuant to the
applicable provisions of the Debentures and the indenture. |
You may withdraw your repurchase notice at any time prior to
5:00 p.m., New York City time, on the business day
immediately preceding the applicable repurchase date, by
delivering a written notice of withdrawal to the paying agent.
If a repurchase notice is given and withdrawn during that
period, we will not be obligated to repurchase the Debentures
listed in the repurchase notice. The withdrawal notice must
state:
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if you hold a beneficial interest in a global Debenture, your
withdrawal notice must comply with appropriate DTC procedures;
if you hold certificated Debentures, the certificate numbers of
the withdrawn Debentures; |
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the principal amount of the withdrawn Debentures; and |
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the principal amount, if any, which remains subject to the
repurchase notice. |
Payment of the repurchase price for a Debenture for which a
repurchase notice has been delivered and not withdrawn is
conditioned upon book-entry transfer or delivery of the
Debentures, together with necessary endorsements, to the paying
agent, as the case may be. Payment of the repurchase price for
the Debentures will be made promptly following the later of the
repurchase date and the time of book-entry transfer or delivery
of the Debentures, as the case may be.
If the paying agent holds on the repurchase date cash sufficient
to pay the repurchase price of the Debentures that holders have
elected to require us to repurchase, then, as of the repurchase
date:
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those Debentures will cease to be outstanding and interest
(including contingent interest and additional interest, if any)
will cease to accrue, whether or not book-entry transfer of the
Debentures has been made or the Debentures have been delivered
to the paying agent, as the case may be; and |
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all other rights of the Debenture holders will terminate, other
than the right to receive the repurchase price upon delivery or
transfer of the Debentures. |
In connection with any repurchase, we will, to the extent
applicable:
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comply with the provisions of
Rule 13e-4 and any
other tender offer rules under the Exchange Act that may be
applicable at the time of the offer to repurchase the Debentures; |
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file a Schedule TO or any other schedule required in
connection with any offer by us to repurchase the
Debentures; and |
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comply with all other federal and state securities laws in
connection with any offer by us to repurchase the Debentures. |
If a fundamental change (as defined below) occurs at any time
prior to the maturity of the Debentures, you will have the right
to require us to repurchase, at the repurchase price described
below, all or part of your Debentures for which you have
properly delivered and not withdrawn a written repurchase
notice. The Debentures submitted for repurchase must be $1,000
in principal amount or whole multiples thereof.
The repurchase price will be payable in cash and will equal 100%
of the principal amount of the Debentures being repurchased,
plus accrued and unpaid interest (including contingent interest
and additional interest, if any) to, but excluding, the
repurchase date. However, if the repurchase date is after a
record date and on or prior to the corresponding interest
payment date, the interest (including contingent interest and
additional interest, if any) will be paid on the repurchase date
to the holder of record on the record date.
29
We may be unable to repurchase your Debentures in cash upon a
fundamental change. Our ability to repurchase the Debentures
with cash in the future may be limited by the terms of our
then-existing borrowing agreements. In addition, the occurrence
of a fundamental change could cause an event of default under
the terms of our then-existing borrowing agreements. We cannot
assure you that we would have the financial resources, or would
be able to arrange financing, to pay the repurchase price in
cash.
A fundamental change will be deemed to have occurred
when any of the following has occurred:
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(1) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is
that any person becomes the beneficial
owner (as these terms are defined in
Rule 13d-3 and
Rule 13d-5 under
the Exchange Act), directly or indirectly, of more than 50% of
our capital stock that is at the time entitled to vote by the
holder thereof in the election of our board of directors (or
comparable body); |
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(2) the first day on which a majority of the members of our
board of directors are not continuing directors; |
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(3) the adoption of a plan relating to our liquidation or
dissolution; |
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(4) the consolidation or merger of us with or into any
other person (as this term is used in Section 13(d)(3) of
the Exchange Act), or the sale, lease, transfer, conveyance or
other disposition, in one or a series of related transactions,
of all or substantially all of our assets and those of our
subsidiaries taken as a whole to any person (as this
term is used in Section 13(d)(3) of the Exchange Act),
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that does not result in any reclassification, conversion,
exchange or cancellation of outstanding shares of our capital
stock; and |
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pursuant to which the holders of 50% or more of the total voting
power of all shares of our capital stock entitled to vote
generally in elections of directors immediately prior to such
transaction have the right to exercise, directly or indirectly,
50% or more of the total voting power of all shares of our
capital stock entitled to vote generally in elections of
directors of the continuing or surviving person immediately
after giving effect to such transaction; or |
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(b) any merger primarily for the purpose of changing our
jurisdiction of incorporation and resulting in a
reclassification, conversion or exchange of outstanding shares
of common stock solely into shares of common stock of the
surviving entity. |
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(5) the termination of trading of our common stock, which
will be deemed to have occurred if our common stock or other
common stock into which the Debentures are convertible is
neither listed for trading on a United States national
securities exchange nor approved for listing on The Nasdaq
National Market or any similar United States system of automated
dissemination of quotations of securities prices, and no
American Depositary Shares or similar instruments for such
common stock are so listed or approved for listing in the United
States. |
However, a fundamental change will be deemed not to have
occurred if more than 90% of the consideration in the
transaction or transactions (other than cash payments for
fractional shares and cash payments made in respect of
dissenters appraisal rights) which otherwise would
constitute a fundamental change under clause (1) or
(4) above consists of shares of common stock, depositary
receipts or other certificates representing common equity
interests traded or to be traded immediately following such
transaction on a national securities exchange or quoted on the
Nasdaq National Market and, as a result of the transaction or
transactions, the Debentures become convertible solely into such
common stock, depositary receipts or other certificates
representing common equity interests (and any rights attached
thereto).
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Continuing directors means, as of any date of
determination, any member of the board of directors of WESCO
International who:
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was a member of the board of directors on the date of the
indenture; or |
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was nominated for election or elected to the board of directors
with the approval of a majority of the continuing directors who
were members of the board at the time of new directors
nomination or election. |
The definition of fundamental change includes a
phrase relating to the sale, lease, transfer, conveyance or
other disposition, in one or a series of related transactions,
of all or substantially all of our assets and those of our
subsidiaries taken as a whole. Although there is a developing
body of case law interpreting the phrase substantially
all, there is no precise established definition of the
phrase under applicable law. Accordingly, the ability of a
holder of Debentures to require us to repurchase Debentures as a
result of a sale, lease, transfer, conveyance or other
disposition of less than all of our assets and those of our
subsidiaries taken as a whole to another person or group may be
uncertain.
On or before the fifth calendar day after the occurrence of a
fundamental change, we will provide to all record holders of the
Debentures on the date of the fundamental change at their
addresses shown in the register of the registrar and to
beneficial owners to the extent required by applicable law, the
trustee and the paying agent, a written notice of the occurrence
of the fundamental change and the resulting repurchase right.
Such notice shall state, among other things, the event causing
the fundamental change and the procedures you must follow to
require us to repurchase your Debentures.
The repurchase date will be a date specified by us in the notice
of a fundamental change that is not less than 20 nor more than
35 calendar days after the date of the notice of a fundamental
change.
To exercise your repurchase right, you must deliver, prior to
5:00 p.m., New York City time, on the repurchase date, a
written notice to the paying agent of your exercise of your
repurchase right (together with the Debentures to be
repurchased, if certificated Debentures have been issued). The
repurchase notice must state:
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if you hold a beneficial interest in a global Debenture, your
repurchase notice must comply with appropriate DTC procedures;
if you hold certificated Debentures, the Debentures certificate
numbers; |
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the portion of the principal amount of the Debentures to be
repurchased, which must be $1,000 or whole multiples
thereof; and |
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that the Debentures are to be repurchased by us pursuant to the
applicable provisions of the Debentures and the indenture. |
You may withdraw your repurchase notice at any time prior to
5:00 p.m., New York City time, on the business day
immediately preceding repurchase date by delivering a written
notice of withdrawal to the paying agent. If a repurchase notice
is given and withdrawn during that period, we will not be
obligated to repurchase the Debentures listed in the repurchase
notice. The withdrawal notice must state:
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if you hold a beneficial interest in a global Debenture, your
withdrawal notice must comply with appropriate DTC procedures;
if you hold certificated Debentures, the certificate numbers of
the withdrawn Debentures; |
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the principal amount of the withdrawn Debentures; and |
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the principal amount, if any, which remains subject to the
repurchase notice. |
Payment of the repurchase price for a Debenture for which a
repurchase notice has been delivered and not withdrawn is
conditioned upon book-entry transfer or delivery of the
Debentures, together with necessary endorsements, to the paying
agent, as the case may be. Payment of the repurchase price for
the Debentures will be made promptly following the later of the
repurchase date and the time of book-entry transfer or delivery
of the Debentures, as the case may be.
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If the paying agent holds on the repurchase date cash sufficient
to pay the repurchase price of the Debentures that holders have
elected to require us to repurchase, then, as of the repurchase
date:
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the Debentures will cease to be outstanding and interest
(including contingent interest and additional interest, if any)
will cease to accrue, whether or not book-entry transfer of the
Debentures has been made or the Debentures have been delivered
to the paying agent, as the case may be; and |
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all other rights of the holders of Debentures will terminate,
other than the right to receive the repurchase price upon
delivery or transfer of the Debentures. |
In connection with any repurchase, we will, to the extent
applicable:
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comply with the provisions of
Rule 13e-4 and any
other tender offer rules under the Exchange Act that may be
applicable at the time of the offer to repurchase the Debentures; |
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file a Schedule TO or any other schedule required in
connection with any offer by us to repurchase the
Debentures; and |
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comply with all other federal and state securities laws in
connection with any offer by us to repurchase the Debentures. |
This fundamental change repurchase right could discourage a
potential acquirer of WESCO International. However, this
fundamental change repurchase feature is not the result of
managements knowledge of any specific effort to obtain
control of us by means of a merger, tender offer, solicitation
or otherwise, or part of a plan by management to adopt a series
of anti-takeover provisions.
Our obligation to repurchase the Debentures upon a fundamental
change would not necessarily afford you protection in the event
of a highly leveraged or other transaction involving us that may
adversely affect holders. We also could, in the future, enter
into certain transactions, including certain recapitalizations,
that would not constitute a fundamental change but would
increase the amount of our (or our subsidiaries)
outstanding debt. The incurrence of significant amounts of
additional debt could adversely affect our ability to service
our then existing debt, including the Debentures.
Consolidation, Merger and Sale of Assets by WESCO
International
The indenture will provide that we will not consolidate with or
merge with or into, or sell, convey, transfer or lease all or
substantially all its assets to, any person, unless:
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either (a) we are the continuing corporation or
(b) the resulting, surviving or transferee person (if other
than us) is a corporation or limited liability company organized
and existing under the laws of the United States, any state
thereof or the District of Columbia and such person assumes, by
a supplemental indenture in a form reasonably satisfactory to
the trustee, and a supplemental agreement, all of our
obligations under the Debentures, the indenture and the
registration rights agreement; |
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immediately after giving effect to such transaction, no default
or event of default has occurred and is continuing; |
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if as a result of such transaction the Debentures become
convertible into common stock or other securities issued by a
third party, such third party fully and unconditionally
guarantees all obligations of us or such successor under the
Debentures, the indenture and the registration rights
agreement; and |
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we have delivered to the trustee certain certificates and
opinions of counsel if so requested by the trustee. |
In the event of any transaction described in and complying with
the conditions listed in the immediately preceding paragraph in
which WESCO International is not the continuing corporation, the
successor person formed or remaining shall succeed, and be
substituted for, and may exercise every right and power of,
WESCO International, and WESCO International shall be discharged
from its obligations, under the Debentures, the indenture and
the registration rights agreement.
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This covenant includes a phrase relating to the sale,
conveyance, transfer and lease of all or substantially
all of the assets of WESCO International. There is no
precise, established definition of the phrase all or
substantially all under New York law, which governs the
indenture and the Debentures, or under the laws of Delaware,
WESCO Internationals state of incorporation. Accordingly,
the ability of a holder of the Debentures to require us to
repurchase the Debentures as a result of a sale, conveyance,
transfer or lease of less than all of the assets of WESCO
International may be uncertain.
An assumption by any person of WESCO Internationals
obligations under the Debentures and the indenture might be
deemed for U.S. federal income tax purposes to be an
exchange of the Debentures for new Debentures by the holders
thereof, resulting in recognition of gain or loss for such
purposes and possibly other adverse tax consequences to the
holders. Holders should consult their own tax advisors regarding
the tax consequences of such an assumption.
Events of Default; Notice and Waiver
An Event of Default is defined in the Debentures indenture as:
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(i) a default in any payment of interest (including
contingent interest and additional interest, if any) on any
Debentures when due and payable and such default continues for
30 days; |
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(ii) a default in the payment of principal of, or premium,
if any, on, any Debentures when due and payable at its stated
maturity, upon redemption or required repurchase, upon
declaration or otherwise; |
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(iii) the failure by WESCO International to comply with its
obligations under the covenant described under
Consolidation, Merger and Sale of Assets by
WESCO International; |
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(iv) the failure to deliver our common stock (including any
additional shares), or cash in lieu thereof, or a combination of
the foregoing, as applicable upon the conversion of any
Debentures and such failure continues for five days following
the scheduled settlement date for such conversion; |
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(v) the failure to provide notice of the anticipated
effective date or actual effective date of a fundamental change
on a timely basis as required in the indenture; |
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(vi) the failure by WESCO International to comply for
60 days after notice with any other agreements contained in
the Debentures or the indenture; |
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(vii) the failure by WESCO International or any of its
significant subsidiaries to pay any indebtedness within any
applicable grace period after final maturity or the acceleration
of any such indebtedness by the holders thereof because of a
default if the total amount of such indebtedness unpaid or
accelerated exceeds $35 million or its foreign currency
equivalent (the cross acceleration provision) and
such failure continues for 10 days after receipt of the
notice specified in the indenture; |
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(viii) certain events of bankruptcy, insolvency or
reorganization of WESCO International or any of its significant
subsidiaries (the bankruptcy provisions); |
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(ix) the rendering of any judgment or decree for the
payment of money in excess of $35 million or its foreign
currency equivalent against WESCO International or any of its
significant subsidiaries if (A) an enforcement proceeding
thereon is commenced by any creditor or (B) such judgment
or decree remains outstanding for a period of 60 days
following such judgment and is not discharged, waived or stayed
within 10 days after notice (the judgment default
provision); or |
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(x) the guarantee shall be held in any judicial proceeding
to be unenforceable or invalid. |
For the purposes of the foregoing provisions, the term
significant subsidiary means any subsidiary that
would be a significant subsidiary of WESCO
International within the meaning of Rule 1-02 under
Regulation S-X
promulgated by the SEC, but shall in no event include a
Receivables Financing Entity, as such term is defined in the
indenture.
The foregoing will constitute Events of Default whatever the
reason for any such Event of Default and whether it is voluntary
or involuntary or is effected by operation of law or pursuant to
any judgment, decree
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or order of any court or any order, rule or regulation of any
administrative or governmental body. However, a default under
clauses (vi), (vii) or (ix) will not constitute
an Event of Default until the trustee or the holders of at least
25% in principal amount of the outstanding Debentures notify
WESCO International of the default and WESCO International does
not cure such default within the time specified in
clauses (vi), (vii) or (ix) hereof after receipt
of such notice.
If an Event of Default (other than an Event of Default relating
to certain events of bankruptcy, insolvency or reorganization of
WESCO International) occurs and is continuing, the trustee or
the holders of at least 25% in principal amount of the
outstanding Debentures by notice to WESCO International may
declare the principal of and accrued but unpaid interest on all
the Debentures to be due and payable. Upon such a declaration,
such principal and interest will be due and payable immediately.
If an Event of Default relating to certain events of bankruptcy,
insolvency or reorganization of WESCO International occurs, the
principal of and interest on all the Debentures will become
immediately due and payable without any declaration or other act
on the part of the trustee or any holders of Debentures. Under
certain circumstances, the holders of a majority in principal
amount of the outstanding Debentures may rescind any such
acceleration with respect to the Debentures and its consequences.
Subject to the provisions of the indenture relating to the
duties of the trustee, in case an Event of Default occurs and is
continuing, the trustee will be under no obligation to exercise
any of the rights or powers under the indenture at the request
or direction of any of the holders of Debentures unless such
holders have offered to the trustee reasonable indemnity or
security against any loss, liability or expense. Except to
enforce the right to receive payment of principal, premium (if
any) or interest when due, no holder of Debentures may pursue
any remedy with respect to the indenture or the Debentures
unless (i) such holder has previously given the trustee
notice that an Event of Default is continuing, (ii) holders
of at least 25% in principal amount of the outstanding
Debentures have requested the trustee in writing to pursue the
remedy, (iii) such holders have offered the trustee
reasonable security or indemnity against any loss, liability or
expense, (iv) the trustee has not complied with such
request within 60 days after the receipt of the request and
the offer of security or indemnity and (v) the holders of a
majority in principal amount of the outstanding Debentures have
not given the trustee a direction inconsistent with such request
within such 60-day
period. Subject to certain restrictions, the holders of a
majority in principal amount of the outstanding Debentures are
given the right to direct the time, method and place of
conducting any proceeding for any remedy available to the
trustee or of exercising any trust or power conferred on the
trustee. The trustee, however, may refuse to follow any
direction that conflicts with law or the indenture or that the
trustee determines is unduly prejudicial to the rights of any
other holder or that would involve the trustee in personal
liability. Prior to taking any action under the indenture, the
trustee will be entitled to indemnification satisfactory to it
in its sole discretion against all losses and expenses caused by
taking or not taking such action.
The indenture provides that if a Default occurs and is
continuing and is known to the trustee, the trustee must mail to
each holder of Debentures notice of the Default within the
earlier of 90 days after it occurs or 30 days after it
is known to a trust officer or written notice of it is received
by the trustee. Except in the case of a Default in the payment
of principal of, premium (if any) or interest (including
contingent interest and additional interest, if any) on any
Debentures (including payments pursuant to the redemption
provisions of such Debentures), the trustee may withhold notice
if and so long as a committee of its trust officers in good
faith determines that withholding notice is in the interests of
the holders of Debentures. In addition, WESCO International is
required to deliver to the trustee, within 120 days after
the end of each fiscal year of WESCO International, a
certificate indicating whether the signers thereof know of any
Default that occurred during the previous year. WESCO
International also is required to deliver to the trustee, within
30 days after the occurrence thereof, written notice of any
event which would constitute certain Events of Default, their
status and what action WESCO International is taking or proposes
to take in respect thereof.
Amendments and Waivers
Subject to certain exceptions, the indenture or the Debentures
may be amended with the written consent of the holders of at
least a majority in principal amount of the Debentures then
outstanding and any past
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default or compliance with any provisions may be waived with the
consent of the holders of a majority in principal amount of the
Debentures then outstanding. However, without the consent of
each holder of an outstanding Debentures affected, no amendment
may, among other things, (i) reduce the principal amount of
Debentures whose holders must consent to an amendment,
(ii) reduce the rate of or extend the time for payment of
interest, contingent interest or additional interest on any
Debentures, (iii) reduce the principal of or extend the
stated maturity of any Debentures, (iv) reduce the amount
payable in relation to the repurchase of any Debentures or
change the time at which any Debentures may be put by holders
for repurchase by WESCO International as described under
Repurchase At the Option of the Holder,
(v) reduce any premium payable upon the redemption of any
Debentures or change the time at which any Debentures may be
redeemed as described under Optional
Redemption, (vi) make any Debentures payable in money
other than that stated in the Debentures, (vii) make any
change affecting the ranking of the Debentures or the guarantee,
(viii) impair the right of a holder to institute suit for
payment of any Debentures, (ix) adversely affect the right
of a holder to convert any Debentures into cash and, if
applicable, shares of our common stock (or the extent otherwise
applicable, other property receivable upon conversion pursuant
to the terms of the indenture) or reduce the conversion rate,
except as permitted pursuant to the indenture, (x) make any
change adversely affecting the rights of holders of Debentures
with respect to the guarantee or (xi) make any change in
the amendment provisions which require each holders
consent or in the waiver provisions.
Without the consent of any holder, WESCO International and the
trustee may amend the indenture to cure any ambiguity, omission,
defect or inconsistency, to provide for the assumption by a
successor corporation of the obligations of WESCO International
under the indenture, to provide for uncertificated Debentures in
addition to or in place of certificated Debentures (provided
that the uncertificated Debentures are issued in registered form
for purposes of Section 163(f) of the Code, or in a manner
such that the uncertificated Debentures are described in
Section 163(f)(2)(B) of the Code), to make any change in
the subordination provisions of the indenture that would limit
or terminate the benefits available to any holder of Senior
Indebtedness of WESCO Distribution (or any representative
thereof) under such subordination provisions, to add additional
guarantees with respect to the Debentures, to secure the
Debentures, to add to the covenants of WESCO International for
the benefit of the holders of Debentures or to surrender any
right or power conferred upon WESCO International, to make any
change that does not adversely affect the rights of any holder
of Debentures, subject to the provisions of the indenture, or to
provide for a successor trustee, make any changes or
modifications necessary in connection with the registration of
the Debentures under the Securities Act as contemplated in the
registration rights agreement; provided that such change or
modification does not adversely affect the interests of the
holders of the Debentures in any material respect, or to comply
with any requirement of the SEC in connection with the
qualification of the indenture under the Trust Indenture Act.
However, no amendment may be made to the subordination
provisions of the indenture that adversely affects the rights of
any holder of Senior Indebtedness of WESCO Distribution then
outstanding unless the holders of such Senior Indebtedness (or
any group or representative thereof authorized to give a
consent) consent to such change.
The consent of the holders is not necessary under the indenture
to approve the particular form of any proposed amendment. It is
sufficient if such consent approves the substance of the
proposed amendment.
After an amendment under the indenture becomes effective, WESCO
Distribution is required to mail to holders of Debentures a
notice briefly describing such amendment. However, the failure
to give such notice to all holders, or any defect therein, will
not impair or affect the validity of the amendment.
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Debentures Not Entitled to Consent |
Any Debentures held by us or by any person directly or
indirectly controlling or controlled by or under direct or
indirect common control with us shall be disregarded (from both
the numerator and the denominator) for purposes of determining
whether the holders of the requisite aggregate principal amount
of the outstanding Debentures have consented to a modification,
amendment or waiver of the terms of the indenture.
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Repurchase and Cancellation
We may, to the extent permitted by law, repurchase any
Debentures in the open market or by tender offer at any price or
by private agreement. Any Debentures repurchased by us may, at
our option, be surrendered to the trustee for cancellation, but
may not be reissued or resold by us. Any Debentures surrendered
for cancellation may not be reissued or resold and will be
promptly cancelled.
Rule 144A Information
We will furnish to the holders or beneficial holders of the
Debentures or the common stock issued upon conversion and
prospective purchasers, upon their request, the information, if
any, required under Rule 144A(d)(4) under the Securities
Act until such time as such securities are no longer
restricted securities within the meaning of
Rule 144 under the Securities Act, assuming these
securities have not been owned by an affiliate of WESCO
International.
Information Concerning the Trustee and Common Stock Transfer
Agent and Registrar
We have appointed J.P. Morgan Trust Company, National
Association, the trustee under the indenture, as paying agent,
conversion agent, Debentures registrar and custodian for the
Debentures. The trustee or its affiliates may also provide other
services to us in the ordinary course of their business. The
indenture contains certain limitations on the rights of the
trustee, if it or any of its affiliates is then our creditor, to
obtain payment of claims in certain cases or to realize on
certain property received on any claim as security or otherwise.
The trustee and its affiliates will be permitted to engage in
other transactions with us. However, if the trustee or any
affiliate continues to have any conflicting interest and a
default occurs with respect to the Debentures, the trustee must
eliminate such conflict or resign.
Mellon Investor Services LLC is the transfer agent and registrar
for our common stock.
Governing Law
The Debentures and the indenture shall be governed by, and
construed in accordance with, the laws of the State of New York.
Calculations in Respect of the Debentures
Except as otherwise provided herein, we will be responsible for
making all calculations called for under the Debentures. These
calculations include, but are not limited to, determinations of
the sale price of our common stock, accrued interest payable on
the Debentures and the conversion rate and conversion price. We
or our agents will make all these calculations in good faith
and, absent manifest error, such calculations will be final and
binding on holders of the Debentures. We will provide a schedule
of these calculations to each of the trustee and the conversion
agent, and each of the trustee and conversion agent is entitled
to rely upon the accuracy of our calculations without
independent verification. The trustee will forward these
calculations to any holder of the Debentures upon the request of
that holder.
Form, Denomination and Registration
The Debentures will be issued:
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in fully registered form; |
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without interest coupons; and |
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in denominations of $1,000 principal amount and integral
multiples of $1,000. |
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Global Debentures, Book-Entry Form |
The Debentures are evidenced by one or more global Debentures.
We have deposited the global Debentures with DTC and registered
the global Debentures in the name of Cede & Co. as
DTCs nominee.
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Except as set forth below, a global Debentures may be
transferred, in whole or in part, only to another nominee of DTC
or to a successor of DTC or its nominee.
Beneficial interests in a global Debentures may be held through
organizations that are participants in DTC (called
participants). Transfers between participants will
be effected in the ordinary way in accordance with DTC rules and
will be settled in clearing house funds. The laws of some states
require that certain persons take physical delivery of
securities in definitive form. As a result, the ability to
transfer beneficial interests in the global Debentures to such
persons may be limited.
Beneficial interests in a global Debentures held by DTC may be
held only through participants, or certain banks, brokers,
dealers, trust companies and other parties that clear through or
maintain a custodial relationship with a participant, either
directly or indirectly (called indirect
participants). So long as Cede & Co., as the
nominee of DTC, is the registered owner of a global Debentures,
Cede & Co. for all purposes will be considered the sole
holder of such global Debentures. Except as provided below,
owners of beneficial interests in a global Debentures will:
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not be entitled to have certificates registered in their names; |
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not receive physical delivery of certificates in definitive
registered form; and |
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not be considered holders of the global Debentures. |
We will pay principal of, premium, if any, and interest
(including contingent interest and additional interest, if any)
on, and the redemption price and the repurchase price of, a
global Debentures to Cede & Co., as the registered
owner of the global Debentures, by wire transfer of immediately
available funds on the maturity date, each interest payment date
or the redemption or repurchase date, as the case may be.
Neither we, the trustee nor any paying agent will be responsible
or liable:
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for any aspect of the records relating to, or payments made on
account of, beneficial ownership interests in a global
Debentures; or |
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for maintaining, supervising or reviewing any records relating
to the beneficial ownership interests. |
DTC has advised us that it will take any action permitted to be
taken by a holder of the Debentures, including the presentation
of the Debentures for conversion, only at the direction of one
or more participants to whose account with DTC interests in the
global Debentures are credited, and only in respect of the
principal amount of the Debentures represented by the global
Debentures as to which the participant or participants has or
have given such direction.
DTC has advised us that it is:
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a limited purpose trust company organized under the laws of the
State of New York, and a member of the Federal Reserve System; |
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a clearing corporation within the meaning of the
Uniform Commercial Code; and |
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a clearing agency registered pursuant to the
provisions of Section 17A of the Exchange Act. |
DTC was created to hold securities for its participants and to
facilitate the clearance and settlement of securities
transactions between participants through electronic book-entry
changes to the accounts of its participants. Participants
include securities brokers, dealers, banks, trust companies and
clearing corporations and other organizations. Some of the
participants or their representatives, together with other
entities, own DTC. Indirect access to the DTC system is
available to others such as banks, brokers, dealers and trust
companies that clear through or maintain a custodial
relationship with a participant, either directly or indirectly.
DTC has agreed to the foregoing procedures to facilitate
transfers of interests in global Debentures among participants.
However, DTC is under no obligation to perform or continue to
perform these procedures, and may discontinue these procedures
at any time. We will issue the Debentures in definitive
certificated form if DTC notifies us that it is unwilling or
unable to continue as depositary or DTC ceases to
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be a clearing agency registered under the U.S. Securities
Exchange Act of 1934, as amended and a successor depositary is
not appointed by us within 90 days. In addition, beneficial
interests in global Debentures may be exchanged for definitive
certificated Debentures upon request by or on behalf of DTC in
accordance with customary procedures following the request of a
beneficial owner seeking to enforce its rights under such
Debentures or the indenture. The indenture permits us to
determine at any time and in our sole discretion that Debentures
shall no longer be represented by global Debentures. DTC has
advised us that, under its current practices, it would notify
its participants of our request, but will only withdraw
beneficial interests from the global note at the request of each
DTC participant. We would issue definitive certificates in
exchange for any such beneficial interests withdrawn.
Neither we, the trustee, registrar, paying agent nor conversion
agent will have any responsibility or liability for the
performance by DTC or its participants or indirect participants
of their respective obligations under the rules and procedures
governing their operations.
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Restrictions on Transfer, Legends |
The Debentures and shares of common stock that are issued upon
conversion will be subject to certain restrictions on transfer,
as described below under Notice to Investors. The
Debentures and share certificates will bear a legend regarding
such transfer restrictions.
Registration Rights
Upon the closing of the private offering, we and the guarantor
entered into a resale registration rights agreement with the
initial purchasers of the Debentures for the benefit of the
holders of the Debentures. Pursuant to the agreement, we and the
guarantor agreed, at our expense to use reasonable best efforts
to keep the registration statement of which this prospectus is a
part effective until the earliest of:
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(1) the date when the holders of transfer restricted
Debentures and shares of common stock issued upon conversion of
the Debentures are able to sell all such securities immediately
without restriction under Rule 144(k) under the Securities
Act; |
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(2) the date when all transfer restricted Debentures and
shares of common stock issued upon conversion of the Debentures
are registered under the registration statement of which this
prospectus is a part and sold pursuant thereto; or |
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(3) the date when all transfer restricted Debentures and
shares of common stock issued upon conversion of the Debentures
have ceased to be outstanding (whether as a result of repurchase
and cancellation, conversion or otherwise). |
Each holder who sells securities pursuant to the registration
statement of which this prospectus is a part generally will be:
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required to be named as a selling securityholder in this
prospectus; |
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required to deliver a prospectus to each purchaser; |
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subject to certain of the civil liability provisions under the
Securities Act in connection with the holders
sales; and |
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bound by the provisions of the registration rights agreement
that are applicable to the holder (including certain
indemnification rights and obligations). |
We may suspend the holders use of the prospectus for a
period not to exceed 45 days in any
90-day period, and not
to exceed an aggregate of 90 days in any
360-day period, if:
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an event occurs and is continuing as a result of which the shelf
registration statement would, in our reasonable judgment,
contain an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to
make the statements therein not misleading; and |
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we reasonably determine that the disclosure of such event at
such time would have a material adverse effect on the business
of WESCO International and our subsidiaries, taken as a whole. |
However, if the disclosure relates to a previously undisclosed
proposed or pending material business transaction or agreement,
the disclosure of which would impede our ability to consummate
such transaction or agreement, we may extend the suspension
period from 45 days to 60 days.
If,
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except for permitted suspension periods described above, at any
time after the effectiveness target date, the shelf registration
statement ceases to be effective or fails to be usable and we do
not cure the shelf registration statement within five business
days by a post-effective amendment, a supplement to the
prospectus or a report filed pursuant to the Exchange
Act; or |
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we do not terminate the suspension period, described above, by
the 45th or 60th day, as the case may be, or the
suspension periods exceed an aggregate of 90 days in any
360-day period |
(each, a registration default), then additional
interest will accrue on the Debentures, from and including the
day following the registration default to but excluding the day
on which the registration default has been cured. Additional
interest, if any, will be paid semiannually in arrears, in cash,
on each April 15 and October 15, and will accrue at a rate
per year equal to:
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0.25% of the principal amount of Debentures to and including the
90th day following such registration default; and |
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0.50% of the principal amount of Debentures from and after the
91st day following such registration default. |
In no event will additional interest accrue at a rate per year
exceeding 0.50%. Once you convert your Debentures, you will
cease to be entitled to receive any additional interest except
as otherwise provided by the terms of the Debentures and the
indenture.
If the registration statement of which this prospectus is a part
is not effective, the Debentures may not be sold or otherwise
transferred except in accordance with the registration
requirements of the Securities Act and any other applicable
securities laws, or pursuant to an exemption from registration
under the Securities Act and any other applicable securities
laws, or in a transaction not subject to such laws.
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DESCRIPTION OF CAPITAL STOCK
The following summary of certain provisions of our capital stock
is not complete and may not contain all the information you
should consider before investing in the Debentures or our common
stock. We encourage you to read our Restated Certificate of
Incorporation because such document, and not this summary,
defines the rights of holders of our preferred stock and common
stock. Our Restated Certificate of Incorporation has been filed
as an exhibit to the registration statement of which this
prospectus is a part, and you may obtain a copy of our Restated
Certificate of Incorporation by the means described under
Where You Can Find More Information.
Common Stock
We may issue, either separately or together with other
securities, shares of our common stock. Under our Restated
Certificate of Incorporation, we are authorized to issue up to
210,000,000 shares of our common stock, $.01 par
value. As of March 31, 2006, we had 48,213,677 shares
of common stock issued and outstanding. Under our Restated
Certificate of Incorporation, we also are authorized to issue up
to 20,000,000 shares of Class B nonvoting convertible
common stock, $.01 par value. As of March 31, 2006, we
had no shares of Class B common stock outstanding.
Voting Rights. Each holder of shares of common stock is
entitled to one vote per share on all matters to be voted on by
stockholders. Holders of common stock are not entitled to
cumulative votes in the election of directors.
Dividend Rights. The holders of common stock are entitled
to dividends and other distributions if, as and when declared by
our Board of Directors out of assets legally available
therefore, subject to the rights of any holder of preferred
stock, restrictions set forth in our credit facilities and
restrictions, if any, imposed by other indebtedness outstanding
from time to time. The holders of common stock and Class B
common stock are entitled to equivalent per share dividends and
distributions.
Other Rights. Upon our liquidation, dissolution or
winding up, the holders of shares of common stock would be
entitled to share pro rata (on an equal basis with the holders
of the Class B common stock) in the distribution of all of
our assets remaining available for distribution after
satisfaction of all its liabilities and the payment of the
liquidation preference of any outstanding preferred stock. The
holders of common stock have no preemptive or other subscription
rights to purchase shares of our common stock, nor are they
entitled to the benefits of any sinking fund provisions.
Class B Common Stock
Our Class B common stock is identical to our common stock
in all respects except that the holders of Class B common
stock will have no right to vote, except as required by law.
Shares of Class B common stock automatically convert into
the same number of shares of common stock upon the sale or
transfer by the holder thereof to a non-affiliate of ours. To
the extent permitted by law, each holder of Class B common
stock is entitled to convert any or all shares of Class B
common stock held into the same number of shares of common stock
at any time.
Preferred Stock
We may elect to issue shares of our preferred stock,
$.01 par value, from time to time in one or more series.
Shares of our preferred stock may have dividend, redemption,
voting and liquidation rights taking priority over our common
stock and Class B common stock, and shares of preferred
stock may be convertible into our common stock. The issuance of
shares of preferred stock could decrease the amount of earnings
and assets available for distribution to holders of shares of
common stock and Class B common stock and could adversely
affect the rights and powers, including voting rights, of
holders of shares of common stock and Class B common stock.
The existence of authorized and undesignated shares of preferred
stock may also have an adverse effect on the market price of our
common stock. In addition, the issuance of any shares of
preferred stock could have the effect of delaying, deferring or
preventing a change of control.
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Our Board of Directors is authorized, subject to any limitations
prescribed by law, to provide for the issuance of shares of
preferred stock in one or more series without any approval of
our stockholders. Our Board of Directors determines the rights,
qualifications, restrictions and limitations relating to each
series of our preferred stock at the time of issuance, and such
rights, qualifications, restrictions and limitations may differ
with respect to those of shares of preferred stock of a
different series. Our Restated Certificate of Incorporation
authorizes our Board of Directors, without further stockholder
action, to provide for the issuance of up to
20,000,000 shares of preferred stock, in one or more
series. As of March 31, 2006, no shares of preferred stock
were designated or were issued and outstanding. We may amend
from time to time our Restated Certificate of Incorporation to
increase the number of authorized shares of preferred stock.
For a complete description of any series of preferred stock
issued by us, you should refer to the applicable Certificate of
Amendment to our Restated Certificate of Incorporation or the
applicable certificate of designations, as the case may be,
establishing a particular series of preferred stock, in either
case which will be filed with the Secretary of State of the
State of Delaware.
The preferred stock will, when issued, be fully paid and
nonassessable.
Dividend Rights. The preferred stock will be preferred
over our common stock and Class B common stock as to
payment of dividends. Before any dividends or distributions
(other than dividends or distributions payable in common stock)
on our common stock will be declared and set apart for payment
or paid, the holders of shares of each series of preferred stock
will be entitled to receive dividends when, as and if declared
by our Board of Directors. We will pay those dividends either in
cash, shares of common stock or preferred stock or otherwise, at
the rate and on the date or dates set forth in the applicable
terms of the series of preferred stock. With respect to each
series of preferred stock, the dividends on each share of the
series will be cumulative from the date of issue of the share
unless another date is set forth in the applicable terms of the
series of preferred stock. Accruals of dividends will not bear
interest.
Rights Upon Liquidation. The preferred stock will be
preferred over our common stock and Class B common stock as
to assets so that the holders of each series of preferred stock
will be entitled to be paid, upon our voluntary or involuntary
liquidation, dissolution or winding up and before any
distribution is made to the holders of common stock, the amount
set forth in the applicable terms of the series of preferred
stock. However, in this case the holders of preferred stock will
not be entitled to any other or further payment. If upon any
liquidation, dissolution or winding up our net assets are
insufficient to permit the payment in full of the respective
amounts to which the holders of all outstanding preferred stock
are entitled, our entire remaining net assets will be
distributed among the holders of each series of preferred stock
in amounts proportional to the full amounts to which the holders
of each series are entitled.
Redemption. All shares of any series of preferred stock
will be redeemable to the extent set forth in the applicable
terms of the series of preferred stock. All shares of any series
of preferred stock will be convertible into shares of our common
stock or into shares of any other series of preferred stock to
the extent set forth in the applicable terms of the series of
preferred stock.
Voting Rights. Except as indicated in the applicable
terms of the series of preferred stock, the holders of preferred
stock will be entitled to one vote for each share of preferred
stock held by them on all matters properly presented to
stockholders. The holders of common stock, Class B common
stock and the holders of all series of preferred stock will vote
together as one class.
Certain Provisions of Our Restated Certificate of
Incorporation
Our Restated Certificate of Incorporation provides for a
classified Board of Directors in which directors are divided
into three classes, each class being elected for a term of three
years expiring at successive yearly intervals. In addition, our
Restated Certificate of Incorporation requires a vote of a
majority of the remaining Board of Directors to fill a vacancy
on our Board of Directors and does not permit vacancies to be
filled by a vote of our stockholders. Our Restated Certificate
of Incorporation provides that vacancies filled by our Board of
Directors will be filled for the remainder of the term of the
class in which the vacancy occurs. Our
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Restated Certificate of Incorporation further states that a
decrease in the number of directors will not shorten the term of
any incumbent.
Section 203 of the Delaware General Corporation Law
We are a Delaware corporation subject to Section 203 of the
DGCL. Section 203 provides in general that an interested
stockholder acquiring more than 15% of the outstanding voting
stock of a corporation subject to Section 203 but less than
85% of such stock may not engage in certain business
combinations (as defined in Section 203) with the
corporation for a period of three years subsequent to the date
on which the stockholder became an interested stockholder unless:
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prior to such date the corporations board of directors
approve either the business combination or the transaction in
which the stockholder became an interested stockholder; or |
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the business combination is approved by the corporations
board of directors and authorized by a vote of at least
662/3
% of the outstanding voting stock of the corporation not
owned by the interested stockholder. |
A business combination includes mergers, asset sales
and other transactions resulting in financial benefit to a
stockholder. Section 203 could prohibit or delay mergers or
other takeover or change of control attempts with respect to us
and, accordingly, may discourage attempts that might result in a
premium over the market price for the shares held by
stockholders.
Transfer Agent and Registrar
The Transfer Agent and Registrar for our common stock is Mellon
Investor Services LLC.
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SELLING SECURITYHOLDERS
The Debentures were originally issued by us in an offering
exempt from the registration requirements of the Securities Act
to initial purchasers who represented to us that they were
qualified institutional buyers. Each initial purchaser and
institution that purchased the Debentures from the initial
purchaser and who has provided us with a completed questionnaire
setting forth the information specified below, and that selling
securityholders transferees, pledgees, donees and other
successors which we refer to collectively as the selling
securityholders, may from time to time offer and sell
pursuant to this prospectus or any applicable prospectus
supplement, any or all of the Debentures held by that selling
securityholder, including the related guarantee, and common
stock into which the Debentures are convertible.
The following table sets forth, to our knowledge, information as
of ,
2006, with respect to the selling securityholders and the
principal amounts of Debentures beneficially owned by each
selling securityholder that may be offered under this
prospectus. This information is based on information provided by
or on behalf of the selling securityholders pursuant to the
questionnaires referred to above. No holder of the Debentures
may sell the Debentures, including the related guarantee, or
shares of common stock without furnishing to us a questionnaire
setting forth the information specified below. However, as of
the date of this prospectus, not every holder has provided to us
a questionnaire. Therefore, the heading Other in the
Name of Selling Securityholder column below
represents the Debentures and shares of common stock held by
holders who have not yet returned to us their questionnaire.
The selling securityholders may offer all, some or none of the
Debentures or common stock into which the Debentures are
convertible. In addition, the selling securityholders may have
sold, transferred or otherwise disposed of all or a portion of
their Debentures since the date on which they provided the
information regarding their Debentures in transactions exempt
from the registration requirements of the Securities Act. No
selling securityholder beneficially owns one percent or more of
the Debentures or of our common stock, assuming conversion of
the selling securityholders Debentures, and no selling
securityholder has had any material relationship with us or our
affiliates within the past three years, except as otherwise
indicated in the table below.
Information concerning the selling securityholders may change
from time to time and any changed information will be set forth
in supplements to this prospectus if and when necessary. In
addition, the conversion rate and, therefore, the number of
shares of common stock issuable upon conversion of the
Debentures, is subject to adjustment in the event of stock
splits, stock dividends, reorganizations and similar events
described in this prospectus.
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Principal Amount of | |
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Percentage of | |
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Debentures | |
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Percentage of | |
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Number of Shares of | |
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Common | |
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Beneficially Owned | |
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Debentures | |
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Common Stock That | |
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Stock | |
Name of Selling Securityholder |
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That May Be Sold | |
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Outstanding | |
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May Be Sold(1) | |
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Outstanding(2) | |
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** |
The maximum principal amount of Debentures, including the
related guarantee, and underlying shares of common stock that
may be sold by selling securityholders pursuant to this
prospectus may not exceed $150,000,000 and 3,583,080 shares
of common stock issuable upon conversion of the Debentures. The
sum of the principal amount of Debentures beneficially owned by
selling securityholders that are included in this prospectus may
actually be more than $150,000,000 because certain of the
selling securityholders may have transferred their Debentures in
transactions exempt from the registration requirements of the
Securities Act, or otherwise reduced their position prior to
selling pursuant to this prospectus, and as a result, we have
received beneficial ownership information from additional
selling securityholders with respect to the same Debentures or
shares of underlying common stock. |
43
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(1) |
Assumes conversion of all of the holders Debentures at the
initial conversion rate of 23.8872 shares of common stock
per $1,000 principal amount of the Debentures. However, the
conversion rate will be subject to adjustment as described under
Description of the Debentures Conversion
Rights. As a result, the amount of Class A Common
issuable upon conversion of the Debentures may increase or
decrease in the future. |
|
(2) |
Calculated based
on shares
of common stock outstanding as
of ,
2006. In calculating these percentages for each holder of
Debentures, we also treated as outstanding that number of shares
of common stock issuable upon conversion of the holders
Debentures. However, we did not assume the conversion of any
other securities held by a holder. Certain holders have
indicated that they are holders of common stock in addition to
the common stock issuable upon conversion of the Debentures,
which shares were included for purposes of calculating the
percentage in this column. See
footnotes and . |
44
PLAN OF DISTRIBUTION
We will not receive any of the proceeds of the sale of the
Debentures, including the related guarantee, and the common
stock issuable upon conversion of the Debentures offered by this
prospectus. The Debentures, including the related guarantee, and
the underlying common stock may be sold from time to time to
purchasers:
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directly by the selling securityholders; or |
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through underwriters, broker-dealers or agents who may receive
compensation in the form of discounts, concessions or
commissions from the selling securityholders or the purchasers
of the Debentures and the underlying common stock. |
The selling securityholders and any underwriters, broker-dealers
or agents who participate in the distribution of the Debentures
and the common stock issuable upon conversion of the Debentures
may be deemed to be underwriters within the meaning
of the Securities Act. As a result, any profits on the sale of
the underlying common stock by the selling securityholders and
any discounts, commissions or concessions received by any such
broker-dealers or agents may be deemed to be underwriting
discounts and commissions under the Securities Act. If the
selling securityholders were deemed to be underwriters, the
selling securityholders may be subject to liabilities including,
but not limited to, those of Sections 11, 12 and 17 of the
Securities Act and
Rule 10b-5 under
the Exchange Act.
If the Debentures and the common stock issuable upon conversion
of the Debentures are sold through underwriters or
broker-dealers, the selling securityholders will be responsible
for underwriting discounts or commissions or agents
commissions.
The Debentures and the common stock issuable upon conversion of
the Debentures may be sold in one or more transactions at:
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fixed prices; |
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prevailing market prices at the time of sale; |
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varying prices determined at the time of sale; or |
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negotiated prices. |
These sales may be effected in transactions:
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on any national securities exchange or quotation service on
which the Debentures and underlying common stock may be listed
or quoted at the time of sale, including the New York Stock
Exchange in the case of the underlying common stock; |
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in the over-the-counter
market; |
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in transactions otherwise than on such exchanges or services or
in the over-the-counter
market; or |
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through the writing of options. |
These transactions may include block transactions or crosses.
Crosses are transactions in which the same broker acts as an
agent on both sides of the transaction.
In connection with the sales of the Debentures and the common
stock issuable upon conversion of the Debentures or otherwise,
the selling securityholders may enter into hedging transactions
with broker-dealers. These broker-dealers may in turn engage in
short sales of the Debentures and the underlying common stock in
the course of hedging their positions. The selling
securityholders may also sell the Debentures and the underlying
common stock short and deliver the Debentures and the underlying
common stock to close out
45
short positions, or loan or pledge Debentures and the underlying
common stock to broker-dealers that, in turn, may sell the
Debentures and the underlying common stock.
To our knowledge, there are currently no plans, arrangements or
understandings between any selling securityholders and any
underwriter, broker-dealer or agent regarding the sale of the
Debentures and the common stock issuable upon conversion of the
Debentures by the selling securityholders. The selling
securityholders may decide not to sell all or a portion of the
Debentures and the underlying common stock offered by them
pursuant to this prospectus or may decide not to sell Debentures
or the underlying common stock under this prospectus. In
addition, any selling securityholder may transfer, devise or
give the Debentures and the underlying common stock by other
means not described in this prospectus. Any Debentures or
underlying common stock covered by this prospectus that qualify
for sale pursuant to Rule 144 or Rule 144A of the
Securities Act, or Regulation S under the Securities Act,
may be sold under Rule 144 or Rule 144A or
Regulation S rather than pursuant to this prospectus.
Our common stock is traded is currently traded on the New York
Stock Exchange under the ticker symbol WCC. We do
not intend to apply for listing of the Debentures on any
securities exchange or for inclusion of the Debentures in any
automated quotation system. The Debentures originally issued in
the private offering are eligible for trading on The
PORTALsm
Market of the National Association of Securities Dealers, Inc.
However, Debentures sold pursuant to this prospectus will no
longer be eligible for trading on The
PORTALsm
Market. Accordingly, no assurance can be given as to the
development of liquidity or any trading market for the
Debentures.
The selling securityholders and any other persons participating
in the distribution of the Debentures or the common stock
issuable upon conversion of the Debentures will be subject to
the Exchange Act. The Exchange Act rules include, without
limitation, Regulation M, which may limit the timing of
purchases and sales of any of the Debentures and the underlying
common stock by the selling securityholders and any such other
person. In addition, Regulation M of the Exchange Act may
restrict the ability of any person engaged in the distribution
of the Debentures and the underlying common stock to engage in
market-making activities with respect to the particular
Debentures and underlying common stock being distributed for a
period of up to five business days prior to the commencement of
such distribution. This may affect the marketability of the
Debentures and the underlying common stock and the ability to
engage in market-making activities with respect to the
Debentures and the underlying common stock.
Under the registration rights agreement entered into with the
initial purchasers of the Debentures issued in the private
offering, we agreed to, at our expense, use commercially
reasonable efforts to keep the registration statement of which
this prospectus is a part effective until the earliest of:
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the date when the holders of transfer restricted Debentures and
shares of common stock issuable upon conversion of the
Debentures are able to sell all such securities immediately
without restriction under Rule 144(k) under the Securities
Act; |
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the date when all transfer restricted Debentures and shares of
common stock issuable upon conversion of the Debentures are
registered under the registration statement of which this
prospectus is a part and sold pursuant to such registration
statement; and |
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the date when all transfer restricted Debentures and shares of
common stock issuable upon conversion of the Debentures have
ceased to be outstanding (whether as a result of repurchase and
cancellation, conversion or otherwise). |
We may suspend the holders use of the prospectus for a
period not to exceed 45 days in any
90-day period, and not
to exceed an aggregate of 90 days in any
360-day period, if
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the prospectus would, in our reasonable judgment, contain a
material misstatement or omission as a result of an event that
has occurred and is continuing, and |
46
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we reasonably determine that the disclosure of this material
non-public information would have a material adverse effect on
us and our subsidiaries taken as a whole. |
However, if the disclosure relates to a previously undisclosed
proposed or pending material business transaction, the
disclosure of which would impede our ability to consummate such
transaction, we may extend the suspension period from
45 days to 60 days. Each holder, by its acceptance of
the Debentures, agrees to hold any communication by us in
confidence.
Under the registration rights agreement, we and the selling
securityholders will each indemnify the other against certain
liabilities, including certain liabilities under the Securities
Act, or will be entitled to contribution in connection with
these liabilities.
We also agreed to pay liquidated damages to certain holders of
the Debentures and the shares of common stock issuable upon
conversion of the Debentures if the prospectus is unavailable
for periods in excess of those permitted.
We have agreed to pay substantially all of the expense
incidental to the registration, offering and sale of the
Convertible Debentures and the common stock issuable upon
conversion of the Debentures to the public, other than
commissions, fees and discounts of underwriters, brokers,
dealers and agents.
47
LEGAL MATTERS
The validity of the issuance of the Debentures, including the
related guarantee, and the common stock issuable upon conversion
of the Debentures will be passed upon for us by
Kirkpatrick & Lockhart Nicholson Graham LLP,
Pittsburgh, Pennsylvania.
EXPERTS
The financial statements and managements assessment of the
effectiveness of internal control over financial reporting
(which is included in Managements Report on Internal
Control over Financial Reporting) incorporated in this
Prospectus by reference to the Annual Report on
Form 10-K for the
year ended December 31, 2005 have been so incorporated in
reliance on the report (which contains an explanatory paragraph
relating to managements exclusion of Carlton-Bates Company
and Fastec Industrial Corp. from its assessment of internal
control over financial reporting as of December 31, 2005
because they were acquired by the Company in purchase business
combinations during 2005) of PricewaterhouseCoopers LLP, an
independent registered public accounting firm, given on the
authority of said firm as experts in auditing and accounting.
The valuation of intangible assets referred to in our Annual
Report on
Form 10-K for our
fiscal year ended December 31, 2005, incorporated by
reference in this prospectus, was conducted by American
Appraisal Associates, Inc., an independent appraiser.
WHERE YOU CAN FIND MORE INFORMATION
We file reports, proxy statements and other information with the
SEC. These reports, proxy statements and other information that
we file with the SEC can be read and copied at the SECs
Public Reference Room at 100 F Street, N.E.,
Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 to
obtain further information on the operation of the Public
Reference Room. The SEC maintains an Internet site that contains
reports, proxy and information statements and other information
regarding issuers that file electronically with the SEC,
including us. The SECs Internet address is
www.sec.gov. In addition, our common stock, $.01 par
value, is listed on the New York Stock Exchange under the ticker
symbol WCC, and our reports and other information
can be inspected at the offices of the NYSE, 20 Broad
Street, New York, New York 10005. Our reports and other
information also can be accessed at our Internet site. Our
Internet address is www.wesco.com. The information on our
Internet site is not a part of this prospectus.
INCORPORATION BY REFERENCE
The SEC allows us to incorporate by reference
information that we file with it. This means that we can
disclose important information to you by referring you to other
documents. Any information we incorporate in this manner is
considered part of this prospectus except to the extent updated
and superseded by information contained in this prospectus.
We incorporate by reference the following documents that we have
filed with the SEC under Section 13(a), 13(c), 14 or 15(d)
of the Exchange Act:
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Our SEC Filings File No. 001-14989 |
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Period for or Date of Filing |
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Annual Report on Form 10-K
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Year ended December 31, 2005 |
Current Report on Form 8-K
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March 3 and April 13, 2006 |
Statements contained in this prospectus as to the contents of
any contract or other document referred to in this prospectus do
not purport to be complete, and where reference is made to the
particular provisions of that contract or other document, those
references are qualified in all respects by reference to all of
the
48
provisions contained in that contract or other document. Any
statement contained in a document incorporated by reference, or
deemed to be incorporated by reference, into this prospectus
will be deemed to be modified or superseded for purposes of this
prospectus to the extent that a statement contained herein
modifies or supersedes that statement. Any such statement so
modified or superseded will not be deemed, except as so modified
or superseded, to constitute a part of this prospectus.
We will provide without charge, upon written or oral request, a
copy of any or all of the documents that are incorporated by
reference into this prospectus and a copy of any or all other
contracts or documents which are referred to in this prospectus.
Requests should be directed to: WESCO International, Inc.,
Attention: Corporate Secretary, 225 West Station Square
Drive, Suite 700, Pittsburgh, Pennsylvania 15219, telephone
number: (412) 454-2200. You also may review a copy of the
registration statement and its exhibits at the SECs Public
Reference Room in Washington, D.C., as well as through the
SECs Internet site and our Internet site.
49
PART II
INFORMATION NOT REQUIRED IN DOCUMENT
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Item 13. |
Other Expenses of Issuance and Distribution |
The following table sets forth the costs and expenses payable by
the registrant in connection with the sale of the Debentures and
shares of common stock being registered. All amounts are
estimates except for the SEC registration fee:
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SEC registration fee
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$ |
16,050 |
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Printing
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50,000 |
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Legal fees and expenses
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100,000 |
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Accounting fees and expenses
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20,000 |
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Miscellaneous
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13,950 |
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Total
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$ |
200,000 |
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Item 14. |
Indemnification Of Officers And Directors |
Section 102(b)(7) of the Delaware General Corporation Law
(the DGCL) permits a corporation, in its certificate
of incorporation, to limit or eliminate, subject to certain
statutory limitations, the liability of directors to the
corporation or its stockholders for monetary damages for
breaches of fiduciary duty, except for liability (a) for
any breach of the directors duty of loyalty to the
corporation or its stockholders, (b) for acts or omissions
not in good faith or which involve intentional misconduct or a
knowing violation of law, (c) under Section 174 of the
DGCL or (d) for any transaction from which the director
derived an improper personal benefit. Our restated certificate
of incorporation provides, among other things, that the personal
liability of our directors is so eliminated.
Under Section 145 of the DGCL, a corporation has the power
to indemnify directors and officers under certain prescribed
circumstances and subject to certain limitations against certain
costs and expenses, including attorneys fees actually and
reasonably incurred in connection with any action, suit or
proceeding, whether civil, criminal, administrative or
investigative, to which any of them is a party by reason of his
being a director or officer of the corporation if it is
determined that he acted in accordance with the applicable
standard of conduct set forth in such statutory provision.
The By-laws of WESCO International, Inc. and WESCO Distribution,
Inc. each provide that it will indemnify any person who was or
is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative, by
reason of the fact that the person is or was or has agreed to
become a director or officer of WESCO International, Inc. or
WESCO Distribution, Inc., as the case may be, or is or was
serving or has agreed to serve at the request of WESCO
International, Inc. or WESCO Distribution, Inc., as the case may
be, as a director or officer, of another corporation,
partnership, joint venture, trust or other enterprise, or by
reason of any action alleged to have been taken or omitted in
such capacity. WESCO International and WESCO Distribution each
may indemnify any person who was or is a party or is threatened
to be made a party to such an action, suit or proceeding by
reason of the fact that the person is or was or has agreed to
become an employee or agent of WESCO International, Inc. or
WESCO Distribution, as the case may be, or is or serving or has
agreed to serve at the request of WESCO International, Inc. or
WESCO Distribution, Inc., as the case may be, as an employee or
agent of another corporation, partnership, joint venture, trust
or other enterprise, against expenses (including attorneys
fees), judgments, fines and amounts paid in settlement actually
and reasonably incurred by him or on his behalf in connection
with such action, suit, or proceeding and any appeal therefrom,
if the person acted in good faith and in a manner the person
reasonably believed to be in or not opposed to the best
interests of WESCO International, Inc. or WESCO Distribution,
Inc., as the case may be, and, with respect to any criminal
action or proceeding, had no reasonable cause to believe the
persons conduct was unlawful; except that in the case of
an action or suit by or in the right of WESCO International,
Inc. or WESCO Distribution, Inc., as the case may be, to procure
a judgment in its favor (1) such indemnification will be
II-1
limited to expenses (including attorneys fees) actually
and reasonably incurred by such person in the defense or
settlement of such action or suit, and (2) no
indemnification will be made in respect of any claim, issue or
matter as to which such person will have been adjudged to be
liable to WESCO International, Inc. or WESCO Distribution, as
the case may be, unless and only to the extent that the Delaware
Court of Chancery or the court in which such action or suit was
brought determines upon application that, despite the
adjudication of liability but in view of all the circumstances
of the case, such person is fairly and reasonably entitled to
indemnity for such expenses which the Delaware Court of Chancery
or such other court deems proper.
WESCO International, Inc. and WESCO Distribution each are also
authorized to purchase and maintain insurance on behalf of any
person who is or was or has agreed to become a director or
officer, or is or was serving at its request as a director or
officer of any other corporation, partnership, joint venture,
trust or other enterprise against any liability asserted against
such person and incurred by such person in any such capacity or
arising out of such persons status as such, whether or not
WESCO International, Inc. or WESCO Distribution, Inc., as the
case may be, would have the power to indemnify such person
against such liability under the DGCL, provided that such
insurance is available on acceptable terms, which determination
will be made by a vote of a majority of the entire Board of
Directors of WESCO International, Inc. or WESCO Distribution,
Inc., as the case may be.
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Item 15. |
Recent Sales of Unregistered Securities |
In the past three years, the registrants have issued
unregistered securities in connection with the following
transactions:
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(1) On September 27, 2005, WESCO Distribution, Inc.
sold $150.0 million aggregate principal amount of
7.50% Senior Subordinated Notes due 2017 to Goldman,
Sachs & Co., Lehman Brothers Inc., UBS Securities LLC,
Banc of America Securities LLC and Credit Suisse First Boston
LLC, acting as initial purchasers, for resale to qualified
institutional buyers pursuant to Rule 144A under the
Securities Act and to
non-U.S. persons
outside the United States pursuant to Regulation S under
the Securities Act. The notes are unconditionally guaranteed by
WESCO International, Inc. on an unsecured senior basis. The
aggregate offering price was $150.0 million, and the
aggregate discounts and commissions were $3.0 million. |
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(2) On September 27, 2005, WESCO International, Inc.
sold $150.0 million aggregate principal amount of
2.625% Convertible Senior Debentures due 2025 to Lehman
Brothers Inc., Goldman, Sachs & Co.,
UBS Securities LLC, Banc of America Securities LLC and
Credit Suisse First Boston LLC, acting as initial purchasers,
for resale to qualified institutional buyers pursuant to
Rule 144A under the Securities Act. The debentures are
unconditionally guaranteed by WESCO Distribution, Inc. on an
unsecured senior basis. The aggregate offering price was
$150.0 million, and the aggregate discounts and commissions
were $3.8 million. |
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Item 16. |
Exhibits And Financial Statement Schedules |
(a) Exhibits. The following exhibits are filed as part of
this Registration Statement:
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Exhibit No. |
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Description of Exhibit |
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Prior Filing |
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2 |
.1 |
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Recapitalization Agreement, dated as of March 27, 1998,
among Thor Acquisitions L.L.C., WESCO International, Inc.
(formerly known as CDW Holding Corporation) and certain security
holders of WESCO International, Inc. |
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Incorporated by reference to Exhibit 2.1 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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3 |
.1 |
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Restated Certificate of Incorporation of WESCO International,
Inc. |
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Incorporated by reference to Exhibit 3.1 to WESCOs
Registration Statement on Form S-4 (No. 333-70404) |
II-2
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Exhibit No. |
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Description of Exhibit |
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Prior Filing |
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3 |
.2 |
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By-laws of WESCO International, Inc. |
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Incorporated by reference to Exhibit 3.2 to WESCOs
Registration Statement on Form S-4 (No. 333-70404) |
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3 |
.3 |
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Certificate of Incorporation of WESCO Distribution, Inc. |
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Incorporated by reference to Exhibit 3.3 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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3 |
.4 |
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By-laws of WESCO Distribution, Inc. |
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Incorporated by reference to Exhibit 3.4 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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4 |
.1 |
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Indenture, dated as of September 22, 2005, by and among
WESCO International, Inc., WESCO Distribution, Inc. and
J.P. Morgan Trust Company, National Association, as Trustee. |
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Incorporated by reference to Exhibit 4.1 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
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4 |
.2 |
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Form of 2.625% Convertible Senior Debenture due 2025
(included in Exhibit 4.1). |
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Incorporated by reference to Exhibit 4.3 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
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4 |
.3 |
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Indenture, dated as of September 22, 2005, by and among
WESCO International, Inc., WESCO Distribution, Inc. and
J.P. Morgan Trust Company, National Association, as Trustee. |
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Incorporated by reference to Exhibit 4.4 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
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4 |
.4 |
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Form of 7.50% Senior Subordinated Note due 2017, (included
in Exhibit 4.3). |
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Incorporated by reference to Exhibit 4.6 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
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5 |
.1 |
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Opinion of Kirkpatrick & Lockhart Nicholson Graham LLP. |
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Filed herewith. |
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10 |
.1 |
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CDW Holding Corporation Stock Purchase Plan. |
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Incorporated by reference to Exhibit 10.1 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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10 |
.2 |
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Form of Stock Subscription Agreement. |
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Incorporated by reference to Exhibit 10.2 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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10 |
.3 |
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CDW Holding Corporation Stock Option Plan. |
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Incorporated by reference to Exhibit 10.3 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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10 |
.4 |
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Amendment to CDW Holding Corporation Stock Option Plan |
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Incorporated by reference to Exhibit 10.1 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
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10 |
.5 |
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Form of Stock Option Agreement. |
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Incorporated by reference to Exhibit 10.4 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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10 |
.6 |
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Form of Amendment to Stock Option Agreement. |
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Incorporated by reference to Exhibit 10.2 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
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10 |
.7 |
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CDW Holding Corporation Stock Option Plan for Branch Employees. |
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Incorporated by reference to Exhibit 10.5 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
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10 |
.8 |
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Amendment to CDW Holding Corporation Stock Option Plan for
Branch Employees. |
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Incorporated by reference to Exhibit 10.3 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
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10 |
.9 |
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Form of Branch Stock Option Agreement. |
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Incorporated by reference to Exhibit 10.6 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
II-3
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Exhibit No. |
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Description of Exhibit |
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Prior Filing |
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10 |
.10 |
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Form of Amendment to Branch Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.4 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
|
|
10 |
.11 |
|
WESCO International, Inc. 1998 Stock Option Plan. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 1998 |
|
|
10 |
.12 |
|
Amendment to WESCO International, Inc. 1998 Stock Option Plan. |
|
Incorporated by reference to Exhibit 10.5 to WESCOs
Current Report on Form 8-K dated March 2, 2006 |
|
|
10 |
.13 |
|
Form of Management Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.2 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 1998 |
|
|
10 |
.14 |
|
Form of Amendment to Management Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.6 to WESCOs
Current Report on Form 8-K dated March 2, 2006 |
|
|
10 |
.15 |
|
1999 Deferred Compensation Plan for Non- Employee Directors. |
|
Incorporated by reference to Exhibit 10.22 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 1998 |
|
|
10 |
.16 |
|
1999 Long-Term Incentive Plan. |
|
Incorporated by reference to Exhibit 10.22 to WESCOs
Registration Statement on Form S-1 (No. 333-73299) |
|
|
10 |
.17 |
|
Office Lease Agreement, dated as of May 24, 1995, by and
between Commerce Court Property Holding Trust, as Landlord, and
WESCO Distribution, Inc., as Tenant, as amended by First
Amendment to Lease, dated as of June 1995 and by Second
Amendment to Lease, dated as of December 29, 1995. |
|
Incorporated by reference to Exhibit 10.10 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.18 |
|
Lease, dated as of April 1, 1992, by and between The E.T.
Hermann and Jane D. Hermann 1978 Living Trust and Westinghouse
Electric Corporation, as renewed by the renewal letter, dated as
of December 13, 1996, from WESCO Distribution, Inc., as
successor in interest to Westinghouse Electric Corporation, to
Utah State Retirement Fund, as successor in interest to The E.T.
Hermann and Jane D. Hermann 1978 Living Trust. |
|
Incorporated by reference to Exhibit 10.11 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.19 |
|
Third Amendment to Lease, dated as of December 22, 2004, by
and between US Institutional Real Estate Equities, L.P., as
successor in interest to Utah State Retirement Fund and The E.T.
Hermann and Jane D. Hermann 1978 Living Trust, and WESCO
Distribution, Inc., as successor in interest to Westinghouse
Electric Corporation. |
|
Incorporated by reference to Exhibit 10.19 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
|
|
10 |
.20 |
|
Agreement of Lease, dated as of September 3, 1998, by and
between Atlantic Construction, Inc., as landlord, and WESCO
Distribution-Canada, Inc., as tenant, as renewed by the Renewal
Agreement, dated April 14, 2004, by and between Atlantic
Construction, Inc., as landlord, and WESCO
Distribution-Canada, Inc., as tenant. |
|
Incorporated by reference to Exhibit 10.20 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
II-4
|
|
|
|
|
|
|
Exhibit No. |
|
Description of Exhibit |
|
Prior Filing |
|
|
|
|
|
|
|
10 |
.21 |
|
Lease dated December 13, 2002 between WESCO Distribution,
Inc. and WESCO Real Estate IV, LLC. |
|
Incorporated by reference to Exhibit 10.27 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.22 |
|
Lease Guaranty dated December 13, 2002 by WESCO
International, Inc. in favor of WESCO Real Estate IV, LLC. |
|
Incorporated by reference to Exhibit 10.28 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.23 |
|
Amended and Restated Registration and Participation Agreement,
dated as of June 5, 1998, among WESCO International, Inc.
and certain security holders of WESCO International, Inc. named
therein. |
|
Incorporated by reference to Exhibit 10.19 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.24 |
|
Employment Agreement, dated as of June 5, 1998, between
WESCO Distribution, Inc. and Roy W. Haley. |
|
Incorporated by reference to Exhibit 10.20 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.25 |
|
Employment Agreement, dated as of July 29, 2004, between
WESCO International, Inc. and John Engel. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2004 |
|
|
10 |
.26 |
|
Employment Agreement, dated as of December 15, 2005,
between WESCO International, Inc. and Stephen A. Van Oss. |
|
Incorporated by reference to Exhibit 10.26 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
|
|
10 |
.27 |
|
Amended and Restated Credit Agreement, dated as of
September 28, 2005, by and among WESCO Distribution, Inc.,
the other credit parties signatory thereto from time to time,
General Electric Capital Corporation, as Agent and
U.S. Lender, GECC Capital Markets Group, as Lead Arranger,
GE Canada Finance Holding Company, as Canadian Agent and a
Canadian Lender, Bank of America, N.A., as Syndication Agent,
and The CIT Group/Business Credit, Inc. and Citizens Bank of
Pennsylvania, as Co-Documentation Agents. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Current Report on Form 8-K, September 28, 2005 |
|
|
10 |
.28 |
|
Intercreditor Agreement, dated as of March 19, 2002, among
PNC Bank, National Association, General Electric Capital
Corporation, WESCO Receivables Corp., WESCO Distribution, Inc.,
Fifth Third Bank, N.A., Mellon Bank, N.A., The Bank of Nova
Scotia, Herning Enterprises, Inc. and WESCO Equity Corporation. |
|
Incorporated by reference to Exhibit 10.21 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2001 |
|
|
10 |
.29 |
|
Second Amended and Restated Receivables Purchase Agreement dated
as of September 2, 2003 among WESCO Receivables Corp.,
WESCO Distribution, Inc., and the Lenders identified therein. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2003 |
|
|
10 |
.30 |
|
Second Amendment to Second Amended and Restated Receivables
Purchase Agreement and Waiver, dated August 31, 2004. |
|
Incorporated by reference to Exhibit 10.4 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2004 |
|
|
10 |
.31 |
|
Third Amendment to Second Amended and Restated Receivables
Purchase Agreement, dated September 23, 2004. |
|
Incorporated by reference to Exhibit 10.5 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2004 |
|
|
10 |
.32 |
|
Sixth Amendment to Second Amended and Restated Receivables
Purchase Agreement, dated October 4, 2005. |
|
Incorporated by reference to Exhibit 10.2 to WESCOs
Current Report on Form 8-K, September 28, 2005 |
II-5
|
|
|
|
|
|
|
Exhibit No. |
|
Description of Exhibit |
|
Prior Filing |
|
|
|
|
|
|
|
10 |
.33 |
|
Loan Agreement between Bear Stearns Commercial Mortgage, Inc.
and WESCO Real Estate IV, LLC, dated December 13, 2002. |
|
Incorporated by reference to Exhibit 10.26 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.34 |
|
Guaranty of Non-Recourse Exceptions Agreement dated
December 13, 2002 by WESCO International, Inc. in favor of
Bear Stearns Commercial Mortgage, Inc. |
|
Incorporated by reference to Exhibit 10.29 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.35 |
|
Environmental Indemnity Agreement dated December 13, 2002
made by WESCO Real Estate IV, Inc. and WESCO International, Inc.
in favor of Bear Stearns Commercial Mortgage, Inc. |
|
Incorporated by reference to Exhibit 10.30 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.36 |
|
Asset Purchase Agreement, dated as of September 11, 1998,
among Bruckner Supply Company, Inc. and WESCO Distribution, Inc. |
|
Incorporated by reference to Exhibit 2.01 to WESCOs
Current Report on Form 8-K, dated September 11, 1998 |
|
|
10 |
.37 |
|
Amendment dated March 29, 2002 to Asset Purchase Agreement,
dated as of September 11, 1998, among Bruckner Supply
Company, Inc. and WESCO Distribution, Inc. |
|
Incorporated by reference to Exhibit 10.25 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.38 |
|
Agreement and Plan of Merger, dated August 16, 2005, by and
among Carlton-Bates Company, the shareholders of Carlton-Bates
Company signatory thereto, the Company Representative (as
defined therein), WESCO Distribution, Inc. and C-B WESCO, Inc. |
|
Incorporated by reference to Exhibit 10.3 to WESCOs
Current Report on Form 8-K, dated September 28, 2005 |
|
|
10 |
.39 |
|
Registration Rights Agreement, dated September 27, 2005, by
and among WESCO International, Inc., WESCO Distribution, Inc.
and Lehman Brothers Inc. and Goldman Sachs & Co., as
representatives of the initial purchasers named therein. |
|
Incorporated by reference to Exhibit 4.2 to WESCOs
Current Report on Form 8-K, September 21, 2005 |
|
|
10 |
.40 |
|
Exchange and Registration Rights Agreement, dated
September 27, 2005, by and among WESCO International, Inc.,
WESCO Distribution, Inc. and Goldman Sachs & Co. and
Lehman Brothers Inc., as representatives of the initial
purchasers named therein. |
|
Incorporated by reference to Exhibit 4.5 to WESCOs
Current Report on Form 8-K, September 21, 2005 |
|
|
12 |
.1 |
|
Statement re computation of ratios. |
|
Filed herewith |
|
|
21 |
.1 |
|
Subsidiaries of WESCO. |
|
Incorporated by reference to Exhibit 21.1 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
|
|
23 |
.1 |
|
Consent of PricewaterhouseCoopers LLP. |
|
Filed herewith |
|
|
23 |
.2 |
|
Consent of American Appraisal Associates, Inc. |
|
Filed herewith |
|
|
23 |
.3 |
|
Consent of Kirkpatrick & Lockhart Nicholson Graham LLP. |
|
Included in Exhibit 5.1 |
|
|
24 |
.1 |
|
Powers of Attorney with respect to WESCO International, Inc. |
|
Included on signature page |
|
|
24 |
.2 |
|
Power of Attorney with respect to WESCO Distribution, Inc. |
|
Included on signature page |
|
|
25 |
.1 |
|
Form T-1 of J.P. Morgan Trust Company, National
Association, under the Trust Indenture Act of 1939. |
|
Filed herewith |
II-6
The registrants hereby agree to furnish supplementally to the
SEC, upon request, a copy of any omitted schedule to any of the
agreements contained herein.
(b) Financial Statement Schedules. Schedules are omitted
because the information required to be submitted has been
included in the Consolidated Financial Statements of WESCO
International, Inc., or the required information is not
applicable.
The undersigned registrants hereby undertake:
|
|
|
(1) To file, during any period in which offers or sales are
being made, a post-effective amendment to this registration
statement: |
|
|
|
(a) To include any prospectus required by
section 10(a)(3) of the Securities Act of 1933; |
|
|
(b) To reflect in the prospectus any facts or events
arising after the effective date of the registration statement
(or the most recent post-effective amendment thereof) which,
individually or in the aggregate, represent a fundamental change
in the information set forth in the registration statement.
Notwithstanding the foregoing, any increase or decrease in
volume of securities offered (if the total dollar value of
securities offered would not exceed that which was registered)
and any deviation from the low or high end of the estimated
maximum offering range may be reflected in the form of
prospectus filed with the Commission pursuant to
Rule 424(b) if, in the aggregate, the changes in volume and
price represent no more than 20% change in the maximum aggregate
offering price set forth in the Calculation of
Registration Fee table in the effective registration
statement; and |
|
|
(c) To include any material information with respect to the
plan of distribution not previously disclosed in the
registration statement or any material change to such
information in the registration statement; and |
|
|
|
(2) That, for the purpose of determining any liability
under the Securities Act of 1933, each such post-effective
amendment shall be deemed to be a new registration statement
relating to the securities offered therein, and the offering of
such securities at that time shall be deemed to be the initial
bona fide offering thereof. |
|
|
(3) To remove from registration by means of a
post-effective amendment any of the securities being registered
which remain unsold at the termination of the offering. |
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers
and controlling persons of the registrants, the registrants have
been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment
by the registrant of expenses incurred or paid by a director,
officer or controlling person of the registrants in the
successful defense of any action, suit or proceeding) is
asserted by such director, officer or controlling person in
connection with the securities being registered, each registrant
will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the Securities Act and will be governed by the final
adjudication of such issue.
II-7
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrants have duly caused this Registration Statement to be
signed on their behalf by the undersigned, thereunto duly
authorized, in the City of Pittsburgh, Commonwealth of
Pennsylvania, on April 20, 2006.
|
|
|
|
WESCO INTERNATIONAL, INC.
|
|
WESCO DISTRIBUTION, INC. |
|
By: /s/ Stephen A. Van Oss
Name: Stephen A. Van Oss
Title: Senior Vice President and Chief Financial
and Administrative Officer
|
|
By: /s/ Stephen A. Van Oss
Name: Stephen A. Van Oss
Title: Senior Vice President and Chief Financial
and Administrative Officer |
POWER OF ATTORNEY
Each of the undersigned directors and officers of WESCO
International, Inc., a Delaware corporation, and WESCO
Distribution, Inc., a Delaware corporation, do hereby constitute
and appoint Roy W. Haley and Stephen A. Van Oss, or either of
them, the undersigneds true and lawful attorneys and
agents, with full power of substitution and resubstitution in
each, to do any and all acts and things in our name and on our
behalf in our respective capacities as directors and officers
and to execute any and all instruments for us and in our names
in the capacities indicated below, which said attorneys and
agents, or either one of them, may deem necessary or advisable
to enable said corporation to comply with the Securities Act, as
amended, and any rules, regulations and requirements of the
Securities and Exchange Commission, in connection with this
registration statement, including specifically, but without
limitation, power and authority to sign for us or any of us in
our names in the capacities indicated below, any and all
amendments (including post-effective amendments, whether
pursuant to Rule 462(b) or otherwise) hereto, and each of
the undersigned does hereby ratify and confirm all that said
attorneys and agents, or either one of them or any substitute,
shall do or cause to be done by virtue hereof. This Power of
Attorney may be executed in any number of counterparts.
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons
in the capacities and on the dates indicated.
|
|
|
|
|
|
|
Signature |
|
Title |
|
Date |
|
|
|
|
|
|
/s/ Roy W. Haley
Roy W. Haley |
|
Chairman and Chief Executive Officer (Principal Executive
Officer) |
|
April 20, 2006 |
|
/s/ Stephen A. Van Oss
Stephen A. Van Oss |
|
Senior Vice President and Chief Financial and Administrative
Officer (Principal Financial and Accounting Officer) |
|
April 20, 2006 |
|
/s/ Sandra Beach Lin
Sandra Beach Lin |
|
Director |
|
April 20, 2006 |
|
/s/ Michael J. Cheshire
Michael J. Cheshire |
|
Director |
|
April 20, 2006 |
|
/s/ George L.
Miles, Jr.
George L. Miles, Jr. |
|
Director |
|
April 20, 2006 |
II-8
|
|
|
|
|
|
|
Signature |
|
Title |
|
Date |
|
|
|
|
|
|
/s/ Steven A. Raymund
Steven A. Raymund |
|
Director |
|
April 20, 2006 |
|
/s/ James L. Singleton
James L. Singleton |
|
Director |
|
April 20, 2006 |
|
/s/ James A. Stern
James A. Stern |
|
Director |
|
April 20, 2006 |
|
/s/ Robert J.
Tarr, Jr.
Robert J. Tarr, Jr. |
|
Director |
|
April 20, 2006 |
|
/s/ Lynn M. Utter
Lynn M. Utter |
|
Director |
|
April 20, 2006 |
|
/s/ William J. Vareschi
William J. Vareschi |
|
Director |
|
April 20, 2006 |
|
/s/ Kenneth L. Way
Kenneth L. Way |
|
Director |
|
April 20, 2006 |
II-9
EXHIBIT INDEX
|
|
|
|
|
|
|
Exhibit No. |
|
Description of Exhibit |
|
Prior Filing |
|
|
|
|
|
|
2 |
.1 |
|
Recapitalization Agreement, dated as of March 27, 1998,
among Thor Acquisitions L.L.C., WESCO International, Inc.
(formerly known as CDW Holding Corporation) and certain security
holders of WESCO International, Inc. |
|
Incorporated by reference to Exhibit 2.1 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
3 |
.1 |
|
Restated Certificate of Incorporation of WESCO International,
Inc. |
|
Incorporated by reference to Exhibit 3.1 to WESCOs
Registration Statement on Form S-4 (No. 333-70404) |
|
|
3 |
.2 |
|
By-laws of WESCO International, Inc. |
|
Incorporated by reference to Exhibit 3.2 to WESCOs
Registration Statement on Form S-4 (No. 333-70404) |
|
|
3 |
.3 |
|
Certificate of Incorporation of WESCO Distribution, Inc. |
|
Incorporated by reference to Exhibit 3.3 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
3 |
.4 |
|
By-laws of WESCO Distribution, Inc. |
|
Incorporated by reference to Exhibit 3.4 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
4 |
.1 |
|
Indenture, dated as of September 22, 2005, by and among
WESCO International, Inc., WESCO Distribution, Inc. and
J.P. Morgan Trust Company, National Association, as Trustee. |
|
Incorporated by reference to Exhibit 4.1 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
|
|
4 |
.2 |
|
Form of 2.625% Convertible Senior Debenture due 2025
(included in Exhibit 4.1). |
|
Incorporated by reference to Exhibit 4.3 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
|
|
4 |
.3 |
|
Indenture, dated as of September 22, 2005, by and among
WESCO International, Inc., WESCO Distribution, Inc. and
J.P. Morgan Trust Company, National Association, as Trustee. |
|
Incorporated by reference to Exhibit 4.4 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
|
|
4 |
.4 |
|
Form of 7.50% Senior Subordinated Note due 2017, (included
in Exhibit 4.3). |
|
Incorporated by reference to Exhibit 4.6 to WESCOs
Current Report on Form 8-K, dated September 21, 2005 |
|
|
5 |
.1 |
|
Opinion of Kirkpatrick & Lockhart Nicholson Graham LLP. |
|
Filed herewith. |
|
|
10 |
.1 |
|
CDW Holding Corporation Stock Purchase Plan. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.2 |
|
Form of Stock Subscription Agreement. |
|
Incorporated by reference to Exhibit 10.2 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.3 |
|
CDW Holding Corporation Stock Option Plan. |
|
Incorporated by reference to Exhibit 10.3 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.4 |
|
Amendment to CDW Holding Corporation Stock Option Plan |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
|
|
10 |
.5 |
|
Form of Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.4 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
II-10
|
|
|
|
|
|
|
Exhibit No. |
|
Description of Exhibit |
|
Prior Filing |
|
|
|
|
|
|
|
10 |
.6 |
|
Form of Amendment to Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.2 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
|
|
10 |
.7 |
|
CDW Holding Corporation Stock Option Plan for Branch Employees. |
|
Incorporated by reference to Exhibit 10.5 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.8 |
|
Amendment to CDW Holding Corporation Stock Option Plan for
Branch Employees. |
|
Incorporated by reference to Exhibit 10.3 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
|
|
10 |
.9 |
|
Form of Branch Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.6 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.10 |
|
Form of Amendment to Branch Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.4 to WESCOs
Current Report on Form 8-K, dated March 2, 2006 |
|
|
10 |
.11 |
|
WESCO International, Inc. 1998 Stock Option Plan. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 1998 |
|
|
10 |
.12 |
|
Amendment to WESCO International, Inc. 1998 Stock Option Plan. |
|
Incorporated by reference to Exhibit 10.5 to WESCOs
Current Report on Form 8-K dated March 2, 2006 |
|
|
10 |
.13 |
|
Form of Management Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.2 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 1998 |
|
|
10 |
.14 |
|
Form of Amendment to Management Stock Option Agreement. |
|
Incorporated by reference to Exhibit 10.6 to WESCOs
Current Report on Form 8-K dated March 2, 2006 |
|
|
10 |
.15 |
|
1999 Deferred Compensation Plan for Non- Employee Directors. |
|
Incorporated by reference to Exhibit 10.22 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 1998 |
|
|
10 |
.16 |
|
1999 Long-Term Incentive Plan. |
|
Incorporated by reference to Exhibit 10.22 to WESCOs
Registration Statement on Form S-1 (No. 333-73299) |
|
|
10 |
.17 |
|
Office Lease Agreement, dated as of May 24, 1995, by and
between Commerce Court Property Holding Trust, as Landlord, and
WESCO Distribution, Inc., as Tenant, as amended by First
Amendment to Lease, dated as of June 1995 and by Second
Amendment to Lease, dated as of December 29, 1995. |
|
Incorporated by reference to Exhibit 10.10 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.18 |
|
Lease, dated as of April 1, 1992, by and between The E.T.
Hermann and Jane D. Hermann 1978 Living Trust and Westinghouse
Electric Corporation, as renewed by the renewal letter, dated as
of December 13, 1996, from WESCO Distribution, Inc., as
successor in interest to Westinghouse Electric Corporation, to
Utah State Retirement Fund, as successor in interest to The E.T.
Hermann and Jane D. Hermann 1978 Living Trust. |
|
Incorporated by reference to Exhibit 10.11 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
II-11
|
|
|
|
|
|
|
Exhibit No. |
|
Description of Exhibit |
|
Prior Filing |
|
|
|
|
|
|
|
10 |
.19 |
|
Third Amendment to Lease, dated as of December 22, 2004, by
and between US Institutional Real Estate Equities, L.P., as
successor in interest to Utah State Retirement Fund and The E.T.
Hermann and Jane D. Hermann 1978 Living Trust, and WESCO
Distribution, Inc., as successor in interest to Westinghouse
Electric Corporation. |
|
Incorporated by reference to Exhibit 10.19 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
|
|
10 |
.20 |
|
Agreement of Lease, dated as of September 3, 1998, by and
between Atlantic Construction, Inc., as landlord, and WESCO
Distribution-Canada, Inc., as tenant, as renewed by the Renewal
Agreement, dated April 14, 2004, by and between Atlantic
Construction, Inc., as landlord, and WESCO Distribution-Canada,
Inc., as tenant. |
|
Incorporated by reference to Exhibit 10.20 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
|
|
10 |
.21 |
|
Lease dated December 13, 2002 between WESCO Distribution,
Inc. and WESCO Real Estate IV, LLC. |
|
Incorporated by reference to Exhibit 10.27 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.22 |
|
Lease Guaranty dated December 13, 2002 by WESCO
International, Inc. in favor of WESCO Real Estate IV, LLC. |
|
Incorporated by reference to Exhibit 10.28 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.23 |
|
Amended and Restated Registration and Participation Agreement,
dated as of June 5, 1998, among WESCO International, Inc.
and certain security holders of WESCO International, Inc. named
therein. |
|
Incorporated by reference to Exhibit 10.19 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.24 |
|
Employment Agreement, dated as of June 5, 1998, between
WESCO Distribution, Inc. and Roy W. Haley. |
|
Incorporated by reference to Exhibit 10.20 to WESCOs
Registration Statement on Form S-4 (No. 333-43225) |
|
|
10 |
.25 |
|
Employment Agreement, dated as of July 29, 2004, between
WESCO International, Inc. and John Engel. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2004 |
|
|
10 |
.26 |
|
Employment Agreement, dated as of December 15, 2005,
between WESCO International, Inc. and Stephen A. Van Oss. |
|
Incorporated by reference to Exhibit 10.26 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
|
|
10 |
.27 |
|
Amended and Restated Credit Agreement, dated as of
September 28, 2005, by and among WESCO Distribution, Inc.,
the other credit parties signatory thereto from time to time,
General Electric Capital Corporation, as Agent and
U.S. Lender, GECC Capital Markets Group, as Lead Arranger,
GE Canada Finance Holding Company, as Canadian Agent and a
Canadian Lender, Bank of America, N.A., as Syndication Agent,
and The CIT Group/Business Credit, Inc. and Citizens Bank of
Pennsylvania, as Co-Documentation Agents. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Current Report on Form 8-K, September 28, 2005 |
II-12
|
|
|
|
|
|
|
Exhibit No. |
|
Description of Exhibit |
|
Prior Filing |
|
|
|
|
|
|
|
10 |
.28 |
|
Intercreditor Agreement, dated as of March 19, 2002, among
PNC Bank, National Association, General Electric Capital
Corporation, WESCO Receivables Corp., WESCO Distribution, Inc.,
Fifth Third Bank, N.A., Mellon Bank, N.A., The Bank of Nova
Scotia, Herning Enterprises, Inc. and WESCO Equity Corporation. |
|
Incorporated by reference to Exhibit 10.21 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2001 |
|
|
10 |
.29 |
|
Second Amended and Restated Receivables Purchase Agreement dated
as of September 2, 2003 among WESCO Receivables Corp.,
WESCO Distribution, Inc., and the Lenders identified therein. |
|
Incorporated by reference to Exhibit 10.1 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2003 |
|
|
10 |
.30 |
|
Second Amendment to Second Amended and Restated Receivables
Purchase Agreement and Waiver, dated August 31, 2004. |
|
Incorporated by reference to Exhibit 10.4 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2004 |
|
|
10 |
.31 |
|
Third Amendment to Second Amended and Restated Receivables
Purchase Agreement, dated September 23, 2004. |
|
Incorporated by reference to Exhibit 10.5 to WESCOs
Quarterly Report on Form 10-Q for the quarter ended
September 30, 2004 |
|
|
10 |
.32 |
|
Sixth Amendment to Second Amended and Restated Receivables
Purchase Agreement, dated October 4, 2005. |
|
Incorporated by reference to Exhibit 10.2 to WESCOs
Current Report on Form 8-K, September 28, 2005 |
|
|
10 |
.33 |
|
Loan Agreement between Bear Stearns Commercial Mortgage, Inc.
and WESCO Real Estate IV, LLC, dated December 13, 2002. |
|
Incorporated by reference to Exhibit 10.26 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.34 |
|
Guaranty of Non-Recourse Exceptions Agreement dated
December 13, 2002 by WESCO International, Inc. in favor of
Bear Stearns Commercial Mortgage, Inc. |
|
Incorporated by reference to Exhibit 10.29 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.35 |
|
Environmental Indemnity Agreement dated December 13, 2002
made by WESCO Real Estate IV, Inc. and WESCO International, Inc.
in favor of Bear Stearns Commercial Mortgage, Inc. |
|
Incorporated by reference to Exhibit 10.30 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.36 |
|
Asset Purchase Agreement, dated as of September 11, 1998,
among Bruckner Supply Company, Inc. and WESCO Distribution, Inc. |
|
Incorporated by reference to Exhibit 2.01 to WESCOs
Current Report on Form 8-K, dated September 11, 1998 |
|
|
10 |
.37 |
|
Amendment dated March 29, 2002 to Asset Purchase Agreement,
dated as of September 11, 1998, among Bruckner Supply
Company, Inc. and WESCO Distribution, Inc. |
|
Incorporated by reference to Exhibit 10.25 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2002 |
|
|
10 |
.38 |
|
Agreement and Plan of Merger, dated August 16, 2005, by and
among Carlton-Bates Company, the shareholders of Carlton-Bates
Company signatory thereto, the Company Representative (as
defined therein), WESCO Distribution, Inc. and C-B WESCO, Inc. |
|
Incorporated by reference to Exhibit 10.3 to WESCOs
Current Report on Form 8-K, dated September 28, 2005 |
|
|
10 |
.39 |
|
Registration Rights Agreement, dated September 27, 2005, by
and among WESCO International, Inc., WESCO Distribution, Inc.
and Lehman Brothers Inc. and Goldman Sachs & Co., as
representatives of the initial purchasers named therein. |
|
Incorporated by reference to Exhibit 4.2 to WESCOs
Current Report on Form 8-K, September 21, 2005 |
II-13
|
|
|
|
|
|
|
Exhibit No. |
|
Description of Exhibit |
|
Prior Filing |
|
|
|
|
|
|
|
10 |
.40 |
|
Exchange and Registration Rights Agreement, dated
September 27, 2005, by and among WESCO International, Inc.,
WESCO Distribution, Inc. and Goldman Sachs & Co. and
Lehman Brothers Inc., as representatives of the initial
purchasers named therein. |
|
Incorporated by reference to Exhibit 4.5 to WESCOs
Current Report on Form 8-K, September 21, 2005 |
|
|
12 |
.1 |
|
Statement re computation of ratios. |
|
Filed herewith |
|
|
21 |
.1 |
|
Subsidiaries of WESCO. |
|
Incorporated by reference to Exhibit 21.1 to WESCOs
Annual Report on Form 10-K for the year ended
December 31, 2005 |
|
|
23 |
.1 |
|
Consent of PricewaterhouseCoopers LLP. |
|
Filed herewith |
|
|
23 |
.2 |
|
Consent of American Appraisal Associates, Inc. |
|
Filed herewith |
|
|
23 |
.3 |
|
Consent of Kirkpatrick & Lockhart Nicholson Graham LLP. |
|
Included in Exhibit 5.1 |
|
|
24 |
.1 |
|
Powers of Attorney with respect to WESCO International, Inc. |
|
Included on signature page |
|
|
24 |
.2 |
|
Power of Attorney with respect to WESCO Distribution, Inc. |
|
Included on signature page |
|
|
25 |
.1 |
|
Form T-1 of J.P. Morgan Trust Company, National
Association, under the Trust Indenture Act of 1939. |
|
Filed herewith |
The registrants hereby agree to furnish supplementally to the
SEC, upon request, a copy of any omitted schedule to any of the
agreements contained herein.
II-14